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AGENDA
Council Finance & Audit Committee
February 24, 2020
10:00 am - noon
CIC Room - City Hall
Approval of Minutes from the January 27, 2020 Council Finance Committee meeting.
1. City Give Portfolio Process Review 30 mins. N. Bodenhamer
2. 2019 Re-appropriations 30 mins. L. Pollack
Council Finance Committee
Agenda Planning Calendar 2020
RVSD 02/11/20 mnb
Feb 24P
th
P
City Give Portfolio Process Review 30 min N. Bodenhamer
2019 Re-appropriations 30 min L. Pollack
Mar 16P
th
P
Digital Equity Program Review 30 min N. Bodenhamer
Affordable Housing Support Process (Fees) 20 min S. Beck-Ferkiss
V. Shaw
April 20P
th
P
BFO Assumptions 30 min L. Pollack
Suniga/Turnberry ROW/Design 30 min C. Crager
Utility Rebate Consolidation 20 min J. Poznanovic
May 18P
th
P
B-Dam Alternatives and Recommendation 30 min T. Connor
Future Council Finance Committee Topics:
• Park/Median Design Standards & Maintenance Costs – TBD
• Metro District Policy Update – TBD 2020
• BFO Assumptions Review – July 2020
• Annual Adjustment Ordinance – Sep 2020
Finance Administration
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
Finance Committee Meeting Minutes
January 27, 2020
10 am - noon
CIC Room - City Hall
Council Attendees: Mayor Wade Troxell, Ross Cunniff (via phone), Ken Summers
Staff: Darin Atteberry, Jeff Mihelich, Kelly DiMartino, Mike Beckstead,
Teresa Roche, Lance Smith, Chris Martinez, John Phelan, Dave Lenz, Zack Mozer,
Jo Cech, Sean Carpenter, Blaine Dunn, Theresa Connor, John Duval, Carol Webb,
Claire Turney, Carolyn Koontz
Others: Kevin Jones, Chamber of Commerce
_______________________________________________________________
Meeting called to order at 10:04 am
Approval of Minutes from the December 16, 2019 Council Finance Committee Meeting. Ken Summers moved for
approval of the minutes as presented. Ross Cunniff seconded the motion. Minutes were approved unanimously.
A. Utilities 2019 CIP and Strategic Financial Plan Updates for Water & Wastewater
Lance Smith, Utilities Strategic Financial Director
SUBJECT FOR DISCUSSION – Utilities 2020 Capital Improvement Plans and Strategic Financial Plan Updates for
the Water and Wastewater Utilities
UEXECUTIVE SUMMARY
The purpose of this agenda item is to provide the Council Finance Committee with an overview of the planning
processes underway within Fort Collins Utilities. This agenda item will focus on the Water and Wastewater
Enterprise Funds. The Light & Power and Stormwater Enterprise Funds were presented for discussion last month.
The 2020 Capital Improvement Plans (CIPs) and the 2020 Strategic Financial Plans for each utility are outlined.
The resulting investment projections set the basis for beginning the 2021-22 Budgeting For Outcomes (BFO) cycle.
The overall 10-year rate projections for all four utilities is also presented here along with the forecasted debt
issuance needs for each Enterprise Fund.
The Water Fund has significant infrastructure investments over the coming decade. Through active management
of O&M expenses, modest rate adjustments and the issuance of some debt, the Water Enterprise Fund is expected
to be able to meet its operational objectives through targeted capital investments. Further preliminary design
efforts during the 2021-22 budget cycle will refine project cost forecasts ahead of any debt issuance being
requested.
2
The Wastewater Enterprise Fund is expected to need some rate adjustments along with $25-35M of debt issued
over the next decade as renewal of the collection system increases to a more sustainable level. Operating costs
have been kept under control over the last decade in these Enterprise Funds which has served these utilities’
customers well.
UGENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Does the Council Finance Committee support the Utilities Strategic Financial Plan assumptions ahead of the
2021-22 BFO cycle? In particular, the projected rate increases necessary to meet anticipated revenue
requirements.
UBACKGROUND/DISCUSSION
The financial health of each utility Enterprise Fund depends on active management of ongoing operating and
maintenance expenses as well as planning for large capital expenditures. In some years it is expected that the
capital investment alone may exceed the annual operating revenues for an Enterprise Fund even before
considering operating expenses. Thus, the capital investment required to maintain the current levels of service
provided by each of the four utility services to the community requires a long planning horizon and consistent
reevaluation and prioritization. Additionally, the expected operating and maintenance expenses must be
forecasted and managed so that the financial sustainability of each utility is ensured while continuing to provide
the levels of service expected without large rate increases being necessary in any given year.
UWater Enterprise Fund
The 10-year Capital Improvement Plan (CIP) for the Water Fund consists of projects needed to provide an
adequate water supply, treatment facility improvements and an increase in the renewal of the distribution
system to a more sustainable long-term replacement rate. The Halligan Reservoir project is expected to begin
physical construction in the 2023-24 BFO cycle with cost uncertainty being reduced through additional design
and mitigation refinements.
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030Annual Capital InvestmentWater Fund Capital Improvement Plan
Prior Appropriations Water Distribution Water Production
Water Resources Ave. Capital Investment 2021-2030 Historical Average Spend
3
Water Operations
Operating revenues have grown modestly over the past decade through rate increases while total water
production has remained flat. Based on the projected revenue requirements for O&M and capital investment
revenues are projected to grow at a rate similar to the past decade.
The colored area represents the 95% confidence band around the expected operating expense.
O&M expenses in the Water Fund have increased at a reasonable 2.9% annualized rate over the past decade.
This has been achieved through active management. The rate and debt issuance forecasts in the plan assume
that O&M will increase at a rate closer to the rate of consumer inflation over the coming decade.
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
$50,000,000
Annual Operating RevenuesWater Fund Operating Revenues (2010-2030)
Operating Revenue (2.0% per yr)
Assuming Historical Trend (3.0% per yr)
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
Annual Operating ExpensesWater Fund Operating Expensees (2010-2030)
Operating Expenses (2.1%
per yr)
Assuming Historical Trend
(2.9% per yr)
4
The colored area represents the 95% confidence band around the expected operating expense.
By limiting O&M to modest rate of growth it is expected that the operating margin will decrease over the
coming decade which will require modest rate adjustments to meet the expected increase in debt service
related to significant infrastructure investments.
Water Rate and Debt Forecasts
Rate increases are not anticipated to be significant over the coming decade although any significant change in
the necessary capital investments may require modest rate adjustments to ensure adequate operating revenue
is generated to support the system renewal investments. Some debt will be needed for capital investments over
the next decade including a significant issuance ahead of beginning construction on the Halligan Reservoir.
UWastewater Enterprise Fund
Wastewater CIP
The Capital Improvement Plan for the Wastewater Fund includes capital improvements at the reclamation
facilities as well as a significant increase in asset renewal of the wastewater collection system.
($5,000,000)
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
Water Fund Operating Income (2010 -2030)
OPERATING INCOME
Total Operating Revenue
Total Operating Expenses
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Rate Increase 0%0%2%0-2%0-2%0-2%1-3%1-3%1-3%2-4%2-4%
Debt Issuance $55-65M $30-35M
$209M of capital work is expected to be needed between 2020 and 2030 in addition to the current capital appropriations
5
Wastewater Operations
Operating revenues have grown modestly over the past decade with rate increases often not being fully
realized. Modest rate adjustments will be necessary to increase revenues in this utility service.
The colored area represents the 95% confidence band around the expected operating expense.
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Wastewater Fund Capital Improvement Plan
Wastewater Collection Water Reclamation
Historical Ave Capital 2010-2019 Ave CapitalInvestment 2020-2030
6
Wastewater Operations & Maintenance expenses have increased at 2.5% over the past decade. If this can be
maintained over the coming decade, this Enterprise Fund will be well positioned to meet the anticipated
increase in capital investments.
The colored area represents the 95% confidence band around the expected operating expense.
The combination of operating revenues increasing very modestly and O&M increasing at a slightly faster rate will
over time reduce the operating income being generated for this utility. However, operating income is expected
to remain adequate to meet all debt service needs without significant contributions being required from plant
investment fees.
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
Annual Operating ExpensesWastewater Operating Expenses (2010-2030)
Operating Expenses
(2.5% per yr)
Assuming Historical Trend
(2.5% per yr)
7
Wastewater Rate and Debt Forecasts
As the table below shows, very modest rate adjustments are anticipated along with the issuance of $25-35M of
debt over the coming decade to provide adequate financial resources to complete the anticipated $150-170M of
capital improvements.
UConclusion and Next Steps
Updating the ten- year Capital Improvement Plans ahead of the budget cycle allows for an assessment of potential
rate adjustments and debt issuances that may be necessary in the near future. The Strategic Financial Plan
provides a financial path forward to meet the operational needs of each utility.
The Water Fund has significant infrastructure investments over the coming decade. Through active management
of O&M expenses, modest rate adjustments and the issuance of some debt, the Water Enterprise Fund is expected
to be able to meet its operational objectives through targeted capital investments. Further preliminary design
efforts during the 2021-22 budget cycle will refine project cost forecasts ahead of any debt issuance being
requested.
The Wastewater Enterprise Fund is expected to need some rate adjustments along with $25-35M of debt issued
over the next decade as renewal of the collection system increases to a more sustainable level. Operating costs
have been kept under control over the last decade in both of these Enterprise Funds which has served these
utilities’ customers well.
With the updated Strategic Financial Plans for the Light & Power, Water, Wastewater and Stormwater Enterprise
Funds, the initial revenue projections for the 2021-2022 budget cycle can be developed. No debt issuances are
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
Wastewater Fund Operating Income (2010-2030)
OPERATING INCOME
Total Operating Revenue
Total Operating Expenses
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Rate Increase 0.0%0.0%0.0%0-2%0-2%0-2%0-2%0-3%0-3%0-3%0-3%
Debt Issuance $M $10-15M $15-20M
$150-170M of capital work is expected to be needed between 2020 and 2030 in addition to the current capital appropriations
8
anticipated for this budget cycle. The tables below summarize the proposed rate adjustments and debt issuances
for each Fund.
The colored area represents the 95% confidence band around the expected operating expense.
Stormwater O&M has increased as more infrastructure is built requiring O&M. The financial forecast recognizes
this but assumes that the growth can be managed to increase at the rate of inflation. The largest increases were
seen in engineering and administrative charges.
The colored area represents the 95% confidence band around the expected operating expense.
Rate Adjustments
Enterprise Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
501 - Light & Power 2%2%1-3%1-3%1-3%1-3%1-3%1-3%1-3%1-3%
502 - Water 0%2%0-2%0-2%0-2%1-3%1-3%1-3%2-4%2-4%
503 - Wastewater 0%0%0-2%0-2%0-2%0-2%0-3%0-3%0-3%0-3%
504 - Stormwater 0%0%0-2%0-2%0-2%0-2%0-2%0-2%0-2%0-2%
Debt Issuances
Enterprise Fund 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
501 - Light & Power $10-15M $10-15M
502 - Water $55-65M $30-35M
503 - Wastewater $10-15M $15-20M
504 - Stormwater $35-40M $35-40M $20-25M
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The combination of operating revenues increasing very modestly and O&M increasing at a faster rate will over
time reduce the operating income being generated for this utility. However, operating income is expected to
remain strong over the coming decade as shown in the graph below.
Stormwater Rate and Debt Forecasts
With the strong operating income being generated every year in this utility only providing a fourth of the
anticipated capital investment required to fully build out the infrastructure for the community over the next 25
years it will be necessary to issue significant debt to complete the remaining flood mitigation infrastructure.
Significant rate increases could be implemented rather than, or in conjunction with, issuing debt, however, the
capital needs are not ongoing capital needs. Rates are usually adjusted to fund ongoing operational and capital
needs. There is significant debt capacity in this fund that operates with an operating margin of 40%. Increasing
rates would increase the operating margin but not necessarily allow for the initial infrastructure to be built on an
accelerated schedule because of the relative scale of the capital investment compared to the operating
revenues. The anticipated levelized annual capital investment required to complete the initial build out over the
next 25 years along with minor capital investments required on existing infrastructure is $24M per year or 150%
of the 2019 operating revenue. Infrastructure that is expected to last for at least 50 years into the future could
be financed over that time period with those customers benefiting from the new investment paying for its cost
rather than increasing rates substantially. The table below shows the amount of debt that would need to be
issued over the next decade to establish this 25 year build out schedule while adhering the financial boundary
conditions of gradual, modest rate adjustments, positive operating income and a debt coverage ratio of at least
2.0.
As the table below shows, there will be the need to issue debt for several capital investments over the next
decade. The first such issuance should be done in 2022 so that the funds are available for the 2023-24 BFO
cycle.
10
UConclusion and Next Steps
Updating the ten-year Capital Improvement Plans ahead of the budget cycle allows for an assessment of potential
rate adjustments and debt issuances that may be necessary in the near future. The Strategic Financial Plan
provides a financial path forward to meet the operational needs of each utility.
Through active management of O&M expenses, modest rate adjustments and the issuance of some debt, the
Light & Power Enterprise Fund is expected to be able to meet its operational objectives through targeted capital
investments over the coming decade.
The Stormwater Enterprise Fund has a significant amount of capital investment required to complete the initial
buildout of all the needed infrastructure. Given the high operating ratio (operating income / operating revenue)
and the amount of capital investment needed, this utility will require the issuance of significant debt over the
next 25 years as this initial infrastructure is built. Modest rate adjustments allow for some increase in the debt
capacity of this Fund but not enough to accelerate the build out. Timely debt issuances will allow for rates to
remain close to current rates while completing build out over the next 25 years.
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Rate Increase 2.0%0.0%0.0%0-2%0-2%0-2%0-2%0-2%0-2%0-2%0-2%
Debt Issuance $35-40M $35-40M $20-25M
*$374M of capital work is expected to be needed between 2021 and 2045.
11
Discussion / Next Steps - Water Fund CIP:
2% increase bundled in 2022 for Water Fund – no increase in 2023 and 2024 with modest increases over next
few years.
Ross Cunniff; is 2% over inflationary expenses for energy costs, etc?
Lance Smith; it does include that and we did use future dollars.
Ross Cunniff;
ACTION ITEM: Would like to see how these charts look if we charge for raw water purchases based on what it
would cost to replace it. If somebody buys water rights to develop - they pay us based on a rate of what we
paid for it in the 1970s dollars plus things we prorate in various capital improvements such as Michigan Ditch
Tunnel, Halligan etc. What if, instead of charging 1970s + capital improvements rate – we charge what it would
cost to replace it with whatever Northern or Elco - the rates that they would have to use to find water rights
from ditch companies. If we could extrapolate based on some historical averages, it would be interesting to see
what these charts would look like.
Discussion / Next Steps - Wastewater Fund CIP:
12
Darin Atteberry; is debt in 2024 related to a treatment upgrade?
Lance Smith; it is not one significant project - there are the nutrient removal projects that we are looking at
over the next decade and beyond - More timing - do we have cash available – looking to issue $25-30M of debt
in wastewater fund over next decade.
Potential Debt Issuances - issue some debt in late 22 for next budget cycle
2023 L&P and Wastewater - will be a need to issue debt to get all of the capital investment work we have
planned completed over the next decade.
13
Mayor Troxell; what does average rate mean for L&P with TOU, etc.?
Lance Smith; to some extent this is a hypothetical L&P customer - someone who is using the average amount of
electricity - almost 750kWh per month under the TOU rate and no solar on roof or medical equipment in the
home.
Mayor Troxell; electric and water have been flat - that is captured here too?
Lance Smith; through our conservation efforts, the mindfulness of our community we have levelized the
consumption of the commodities and that is reflected here.
14
UGENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Does the Council Finance Committee support the Utilities Strategic Financial Plan forecast projections ahead of
the 2021-22 BFO cycle? In particular, the projected rate increases necessary to meet anticipated revenue
requirements.
Mayor Troxell; projections - Halligan is a big part of the debt on the water side and we are now waiting for the
final approval - When do we anticipate that?
Carol Webb; we anticipate the final 1 -2 years from now and then a record of decision approximately a year after
that; we have hired a design firm and design is underway/ we will be hiring a contractor in the next couple of
month - so the design and contract work can inform the rest of the permitting process; we entered the
permitting process in 2006 - initial cost projection was approximately $24M and we had appropriated $28M.
Now we are at $120M
Mayor Troxell; What do you attribute the escalated costs to?
Carol Webb; permitting - we have spent roughly $1M per year to date - we still have other permits to acquire
including the State Fish and Wildlife Plan and 401 cert and the 1041 and others - as we learn more about the
mitigation needs - that has increased - we have Improved our estimating process - we are better at integrating
the cost of risk. For example, we have an estimate on the cost of permitting -but then you assign risk so if that
went a year longer or if there was a lawsuit on the record of decision - we have now embedded those costs in
the estimate itself. Halligan has the most dramatic impact of that.
Halligan meets our purpose and need (storage) for the next 50 years. The size has reduced over time- largely
because partners have dropped out of the project - and some conservation benefits over that time.
Caveat - in using the Army Corp of Engineers lens for purpose and need -threre is not a heavy emphasis on
climate change. That is where other tools such as conservation help us meet those future needs.
If we take no action and don’t invest in these projects it is more expensive - we have to acquire over 600 shares
of North Poudre Irrigation Company shares which cost approximately $170K per share today so even just buying
the water rights we need to serve would be over $100M - this is a reflection of the cost of water on our market
today. The cost of other alternatives to Halligan are much more expensive - cost to the community - Halligan is
not the most expensive alternative.
Ken Summers; inflationary costs - looking at another 2 ½ years before it is approved and another year or more
before project starts - construction costs increase –
Carol Webb; at some point if you are interested, we can show you how we do the risk register – the kind of risks
we are counting and monetizing - we will be doing site investigations - to better understand the risks at that site.
Ken Summers; thank you for this work - it is monumental - the overall project let alone the whole process has
been going on for so long
Darin Atteberry; we are close and ready to strike – Carol has been a rock star with this effort. Carrie and CAO
office as well.
15
Carol Webb; I would like to give kudos to the team including Linsey Chalfant and Eileen Dornfest- the risk
register is their work and is setting us up for success in insuring that we recover the costs and minimize those
costs when we can.
Mayor Troxell; using the existing structure -initial engineering is to better understand the current dam and its
material, etc.
Carol Webb; it is pretty amazing - they do all kinds of integrity testing - that is incorporated into the costs we are
talking about today - we will hopefully save a significant amount – it would be more expensive if we had to build
a new dam – to be able to elevate the existing dam 25 feet - there are cost savings in that
Mayor Troxell; there are also risks - structural integrity of the existing dam - materials, good design
Carol Webb; I am really happy with who we have on board and I think they are going to give us a great design.
Ken Summers; thank you for the report - it seems like we are in good shape. Use flat over the last 10 years --
this is an accomplishment in our conservation efforts that we put together. Good work.
Darin Atteberry; I give kudos to past Councils and community leaders for that as well as staff over 2-30 years of
work - that have been operationalizing that vision. The idea of conserving which directly translates to our future
expansion needs - over time we have had to define conservation efforts – time and time again Councils has
invested in that are we are seeing some of the dividends. We were talking about the Halligan expansion when I
became City Manager - I remember Halligan numbers in the $15-18M range - those weren’t detailed engineering
drawings that led to those costs - Carol uses $120M and the last memo I saw had a range $120-150M.
In the last 15 years this project has gone from $15-18M to $120-150M because of permitting, construction
inflation, mitigation - It is a much better project If you take $120M project and put a conservative construction
cost inflation at 5% - that is a $6M growth of that project every year we wait – so if this doesn’t get built in the
next 10 years we are going to see $60M just in construction inflation. We need to be transparent and attentive
to that - we are in a good position and can start talking about design and construction. We are spending over
$1M per year studying as well - we have spent more on that than the original project costs.
Ken Summers; engineering construction - we can’t start that until the project is approved but it is prudent to
make sure that we are ready to get this project going just as soon as possible.
Darin Atteberry; it feels like we are near able to strike - we are getting really close. Carol has been a rock star in
this effort as well - echo what she said - years and years of planning - engineering / City Attorney’s office has
played a huge role in this.
Ross Cunniff; that does not model any service area increases for wastewater?
Lance Smith; this does not model that
Darin Atteberry; one of the things that is becoming clearer and clearer is that we have a responsibility in our
service territory, but we also have a stewardship role with the entire GMA boundary. Some of the challenging
conversations we have had with Boxelder Sanitation over the last 2 years as it relates to Montava - once that
dust settles - it is going to be really important to talk about some of these durable relationships
that we have with PSD, DDA, PFA, CSU, Housing Catalyst and others, but there is a sub tier as well which includes
these utility providers who we are counting on providing these utilities.
16
FUTURE ACTION ITEM: When we have capacity, I think at some point it would be good to talk with Council
Finance about these relationships and providers and to delve into their ability to serve. How do we go about
having those providers coming in to talk about their ability to serve as well and how we are aligning with the city
objectives -they are separate entities. Kevin Gertig’s teams are working very closely with these providers on a
daily basis sometimes but I don’t think we have good alignment on a policy standpoint.
What is Loveland / Fort Collins water district’s 10-year capital plan? What is their financial capacity?
What should we be aware of? There should be a bright light on that
Mayor Troxell; same presentation as we just had.
Ross Cunniff; I think we do have an obligation to understand the other utility districts; their capital plans -
provide for those utilities - I support having that discussion. Policies regarding conservation, energy, river
health, etc.
B. EPIC 15 Year Loan Program
Blaine Dunn, Sr. Treasure Analyst
Sean Carpenter, Climate Economy Advisor
SUBJECT FOR DISCUSSION: Epic Homes 15-Year Capital
EXECUTIVE SUMMARY
This item will provide updated details to Council Finance regarding the proposed Epic Homes 15-year capital
sources. Staff will present on two capital agreements with attractive terms and no associated City financial
policy exceptions. One agreement is for a fixed-interest rate loan up to $2.5M with a Denver-based bank and the
other is for an $800k interest-free loan from the Colorado Energy Office.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Does the Committee support presentation of the proposed 15-year capital agreements to the Electric Utility
Enterprise Board on February 18P
th
P?
BACKGROUND/DISCUSSION
Epic Homes
In October 2018, Fort Collins became a winner of the 2018 Bloomberg Mayors Challenge and the associated
$1M prize. The 2018 Bloomberg Mayors Challenge involved over 300 cities proposing ideas to address important
issues in their community. The City’s proposal, Epic Homes, was selected as a winner for its innovative approach
to providing health and equity benefits to residents, specifically for low-to-moderate income renters, by
improving the energy efficiency of rental homes. Residential property owners can take advantage of Epic
Homes’ easy streamlined steps to make their homes more comfortable, healthy and efficient. Partnering with
Colorado State University, Fort Collins is also establishing a research study which links the health and well-being
indicators of improved indoor environmental quality.
Epic Homes provides non-energy benefits in addition to efficiency, such as increased comfort, health and safety.
In nearly every energy assessment, energy advisors identify a health and safety hazard in need of attention. This
could vary from a back-drafting water heater, to air leakage pollutants entering the home from the garage or
crawlspace, to combustion appliances that need tuning or replacing producing excess carbon monoxide. Loans
17
are available for over 25 different types of efficiency measures, including replacing an old furnace with a new
efficient furnace that has important safety features, such as sealed combustion with intake and exhaust to the
outside.
Epic Loans
Fort Collins’ On-Bill Finance program (previously also known as Home Efficiency Loan Program or HELP, and now
called the Epic Loan Program), a component of the Epic Homes portfolio (Attachment 1), supports a number of
community and City Council priorities, including ambitious goals for energy efficiency and renewables, reduced
greenhouse gas emissions and increased equity and well-being for residents. Meeting these objectives will
require, among other activities, greater numbers of property owners to undertake comprehensive efficiency
improvements in the coming years, particularly for older, less-efficient rental properties which make up a
significant percentage of the City’s housing stock.
The original On-Bill Finance program issued loans from 2013 through 2016 when the maximum outstanding loan
balance funded through Light & Power reserves was reached ($1.6 million). On-Bill Finance was revitalized as the
Epic Loan Program in August 2018 during the Champions Phase of the Bloomberg Mayors Challenge. The City
has been awarded grants from the Colorado Energy Office ($200,000) and from Bloomberg Philanthropies
($688,350) for the Epic Loan Program. The Electric Utility Enterprise has also entered into a $2.5M line of credit
loan agreement with U.S. Bank to provide up to 10-year capital for the Epic Loan Program.
Staff has been working to develop third-party capital agreements to scale impact for owners and renters in Fort
Collins. This has included presentations with the Council Finance Committee to discuss the Request for Proposals
for third-party capital providers, discuss the capital strategy and review proposed capital agreement terms. The
proposed ‘capital stack’ is provided below in Table 1 and the customer interest rates based on third-party capital
terms are provided in Table 2.
An ongoing and attractive financing structure to support energy efficiency retrofits will be a critical element for
success moving forward. Through 2019, Fort Collins Utilities has serviced 211 on-bill loans to support energy
efficiency upgrades in residential homes and overcome financial barriers for making these important upgrades.
Detailed information regarding the Epic Homes program and loan terms can be found at 33TUfcgov.com/epichomesU33T.
Table 1. Epic Loan Capital Stack Summary
Capital
Type
Provider Term Rate Amount
Internal &
Grant
Previously authorized Light &
Power reserves
Ongoing 0% $1,600,000
Bloomberg Philanthropies Grant 0% $688,350
Colorado Energy Office –
Grant
Grant 0% $200,000
Internal Subtotal $2,488,350
External
Market
Colorado Energy Office – Loan 15 year 0% $800,000
18
U. S. Bank 5 & 10
year
76% of Prime
(3.99% Currently)
Up to $2,500,000
Denver Based Bank 15 year 10-year US
Treasury + 2.75%
(4.55% Currently)
Up to $2,500,000
External Subtotal $5,800,000
Total $8,288,350
Table 2. Customer Interest Rate
Loan Term Customer Rate (Effective
Aug. 2019)
3 or 5 years 3.75%
7 or 10 years 4.25%
15 years* 4.75%
*The 15-year loan option is currently paused until external capital is secured.
Council Finance Meetings Review
An overview of Council Finance Committee presentations and discussions related to Epic Homes is provided
below in Table 3.
Table 3. Overview of Council Finance Committee Items Related to Epic Homes
Date Topic Outcomes
November 2018 Program background and issuing
an RFP for third-party capital
sources
• City issued RFP #8842 in December 2018
• Staff pursued conversations and negotiations
with respondents and other potential capital
providers
May 2019 Capital strategy, potential capital
sources and next steps for
bringing capital agreements to
Council
• Staff continued negotiations with potential
capital providers (including a locally
managed national bank, a regional bank,
Colorado Clean Energy Fund, and the CEO)
• Received Legal and Purchasing review of
draft contracts
July 2019 Capital agreement terms • Staff directed to bring two of the three
capital sources to full Council for
consideration (US Bank Loan authorized by
Electric Utility Enterprise Board in Ordinance
007 & 008, 2019)
• Staff directed to provide additional
information on interest rate swaps and 15-
year capital to Council Finance
August 2019 15-year capital and interest rate
swaps
• Staff directed to bring third capital source to
full Council for consideration (Staff reached
impasse in terms with capital provider and is
proposing new 15-year capital sources)
19
Importance of 15-year Capital
During prototyping for the Bloomberg Mayors Challenge, rental property owners reported that no-money-down,
affordable monthly payments are critical considerations, in particular for owners with multiple units. OBF 1.0
(also known as HELP) proved these factors are also important for owner-occupied properties, where many
homeowners preferred longer term loans which often allow for more comprehensive projects and/or solar
installations with affordable monthly payments. In 2016, Fort Collins Utilities implemented the Efficiency Works
Neighborhood pilot, with nearly 60 long term loans issued totaling over $750,000. Additionally, of those that
used a loan during the pilot, 80% of customers stated they would not have done a project without the attractive
on-bill loan option.
Throughout the on-bill financing history (2013-2016 and 2018-2019), 50% of customers have used longer loan
terms to reduce monthly payments and/or undertake more comprehensive energy efficiency projects (Table 4).
As a result, the longer-termed loans account for a larger percentage of the on-bill loan portfolio value, at 60%.
Longer term loans are generally used for bigger, more comprehensive projects that can generate increased
benefits for the people who live in and own those homes, as well as positively impacting overall City goals.
Table 4. Summary of On-Bill Financed Projects by Loan Term
Loan Terms 3 & 5 year 7 & 10 year 15 (& 20) year Total
Projects Using OBF by
Term
41 71 99 211
Percentage of Total 19% 34% 47% 100%
In order to keep monthly payments low and make energy retrofit projects attractive, longer loan terms are
required. The average on-bill long-term loan amount is $13,000, with monthly payments of $101. Heating,
ventilation and cooling (HVAC) projects are an example of higher cost projects where longer loan terms are
more attractive. The average HVAC project loan in Epic Loans is $14,000. With a 10-year loan, the monthly
payment is $143; however, with a 15-year loan, the monthly payment is $109, a 30% lower monthly payment
that is much more attractive and feasible. These attractive monthly payments are critical for overcoming cost
barriers for home and rental property owners considering energy upgrades.
Denver Based Bank Overview
Staff previously presented a 15-year capital source with a Midwest-based commercial bank through the
Colorado Clean Energy Fund, which included some uncommon terms for City loan agreements, such as a
required collateral deposit and variable interest rate resulting in the need for a derivative instrument. After
presentation of this capital source to the Council Finance Committee, staff reached an impasse in terms with the
capital provider as the terms became unfavorable for the City. Staff was able to find a new source for 15-year
capital from an in-state commercial bank with highly desirable terms, including a fixed interest rate at the time
of closing, no collateral requirements, and no debt policy exceptions needed.
Staff has reviewed a draft loan agreement with the Denver Based bank for 15-year capital. The terms include:
• Amount: Up to $2,500,000
• Length: 17-years inclusive of draw period
• Draw period: Up to 2 years, with draw timing and amounts based on program / customer demand
• Fixed rate: 10-year US Treasury + 2.75% (4.55% Currently); Rate set at time of loan closing
20
• Collateral: None
• Pre-pay: City may pre-pay in whole or in part after 2027 with no penalty. No prepayment is allowed
prior to 2025, and between 2025 and 2027 there is a 1% prepayment fee.
• Repayment position: Senior pledge on customer loan repayments and subordinate position on Electric
Utility revenues, after the more senior pledge held by revenue bondholders
Colorado Energy Office Overview
The Colorado Energy Office (CEO) showed support of Epic Loans in 2018 with a $200,000 grant. Staff have also
negotiated a $800,000 loan from CEO. Terms of the agreement include:
• Amount: $800,000
• Length: 15-years
• Draw period: None
• Fixed Rate: 0%
The principal will be due at the end of the 15-year period and any program income may be used for
administrative expenses and/or issuing new loans. Any unused program income will also be due at the time of
principal repayment.
Next Steps
Staff seeks approval from Council Finance to proceed for Electric Utility Enterprise Board consideration of the
proposed 15-year agreements. If supported, staff is scheduled to present the 15-year agreements on February
18, 2020.
Discussion / Next Steps:
Better, cleaner deal / better partner / lower cost - eliminated complexity - no collateral required
These will be through the electric enterprise - we will need to go through the Electric Enterprise Board
Will be able to draw in tranches up to once per quarter in the 2-year period. We will make those decisions
based on the demand. The rate when we close will be the rate for the duration of the loan and will include all
tranches. We will pay Interest only during 2-year draw period – then it will turn into a 15-year loan (principle
and interest)
Mike Beckstead; this is a rate risk question - before we had talked about locking in at stages.
There is a little rate risk - policy change risk went away - much better terms overall
No debt policy exception or interest rate swap instrument needed for this program as was for the previous
program.
21
No draw period - 0% total principle will be due at end of loan - one-time balloon payment
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Does the Committee support presentation of the proposed 15-year capital agreements to the Electric Utility
Enterprise Board on February 18P
th
P?
Results:
Ross Cunniff; yes - this sounds great. Thank you for finding this and bringing it to us. I enthusiastically support
this.
Mayor Troxell and Ken Summers also support going forward.
Good meeting - US Mayor’s Challenge oversite perspective this is viewed as a good project
Sean Carpenter; we are excited to get the financing in place so we can move aggressively into outreach - start
getting projects done.
COUNCIL FINANCE COMMITTEE
AGENDA ITEM SUMMARY
Staff: Nina Bodenhamer, Director, City Give
Date: February 24, 2020
SUBJECT FOR DISCUSSION
City Give Portfolio Selection: How does the City identify and select projects for fundraising?
EXECUTIVE SUMMARY
In 2019, the City of Fort Collins launched City Give, a municipal philanthropic initiative that
creates a formalized structure for charitable giving within our City. The enterprise-wide process
improvements developed over the past year create the groundwork for today’s topic: a strategic
selection process for the City Give portfolio.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Objective: Information and Update Only
BACKGROUND/DISCUSSION
In 2019, the City of Fort Collins launched City Give, a municipal philanthropic initiative that
creates a formalized structure for charitable giving within our City. Over the past year, we’ve
worked to get our “charitable house in order,” and have established a range of financial and
operational practices, including but not limited to:
• Financial Governance Policy of Philanthropic Gifts
• System-wide Financial Accounting and Tracking Protocols for Charitable Gifts
• Gift Acceptance Process
• Gift Agreements for Charitable Gifts $25K and Above
• Identification of Signature Relationships
This “in-house” approach to philanthropy allows Fort Collins to respond to strategic projects and
community needs that fall outside the normal city budget priorities but are well-positioned for
private funding.
The enterprise-wide process improvements, developed in this last year, create the groundwork
for today’s topic: the strategic selection process for the City Give portfolio.
Our 2-step selection process reflects philanthropic best practices, and serve as an innovative
platform to pair charitable giving with civic priorities.
1. City Give will serve as a collection point for potential fundraising projects to establish
fundraising feasibility. Feasibility metrics include factors such as: quality of case
statement, financial proposition, competing fundraising landscape, and community
resources.
2. Strategic operational selection will evaluate alignment with strategic outcomes,
organizational priorities, audiences served, and resource allocation.
ATTACHMENTS (numbered Attachment 1, 2, 3,…)
THE GROUNDWORK: 2019
PHILANTHROPIC ALIGNMENT
An Ecosystem of Giving
Current CoFC Fundraising Process
What Projects do We Say ”Yes” To?
Portfolio Process: Feasibility
Portfolio Process: Quarterly Selection
City Give Portfolio
Questions?
Discussion?
With gratitude, Nina
COUNCIL FINANCE COMMITTEE
AGENDA ITEM SUMMARY
Staff: Lawrence Pollack, Budget Director
Date: February 24, 2020
SUBJECT FOR DISCUSSION
Review of the 2020 Reappropriation Ordinance to appropriate prior year reserves.
EXECUTIVE SUMMARY
The purpose of this item is to reappropriate monies in 2020 that were previously authorized by
City Council for expenditures in 2019 for various purposes. The authorized expenditures were
not spent or could not be encumbered in 2019 because:
• there was not sufficient time to complete bidding in 2019 and therefore, there was no known
vendor or binding contract as required to expend or encumber the monies
• the project for which the dollars were originally appropriated by Council could not be
completed during 2019 and reappropriation of those dollars is necessary for completion of
the project in 2020
• to carry on programs, services, and facility improvements in 2020 with unspent dollars
previously appropriated in 2019 for those specific purposes
In the above circumstances, the unexpended and/or unencumbered monies lapsed into individual
fund balances at the end of 2019 and reflect no change in Council policies.
Monies reappropriated for each City fund by this Ordinance are as follows:
General Fund $258,008
Keep Fort Collins Great Fund 71,097
Cultural Services Fund 171,498
Transportation CEF Fund 1,750,000
Transportation Fund 290,000
Parking Fund 30,000
Data and Communications Fund 476,715
Total $3,047,318
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Does the Council Finance Committee support moving forward with the 2020 Reappropriation
Ordinance on the Consent Agenda at the March 3, 2020 Council meeting?
BACKGROUND/DISCUSSION
The Executive Team has reviewed the Reappropriation requests to ensure alignment with
organization priorities and the Budget staff reviewed the requests to verify that all met qualification
requirements. The 2020 Reappropriation requests are as follows, by fund:
GENERAL FUND
Natural Areas
1) Response to the Northern Integrated Supply Project (NISP) - $24,478
UPurpose for fundsU: The purpose of this offer is to fund legal and consulting services in
support of the City's engagement with the NISP permitting process. Given the broad impact
NISP will have on this community, and the complex layers of permits required, the City has
prioritized engagement with NISP to ensure it maximizes its influence to protect City assets
affected by NISP.
UReason funds not expensed in 2019U: The City expected the permitting process of NISP to
progress more quickly in 2019 than it actually did. Consistent progress and work have
occurred on building collaborations and negotiating to improve outcomes for the City within
the context of NISP. However, the final permitting phase is still not complete. Staff plans to
use these funds to hire external expertise and legal counsel to support various aspects of our
engagement with NISP in 2020. Most specifically in 2020, staff will be focused on the
Adaptive Management framework and governance, integration of technical bases, and
engaging with our community and the permitting authority when the Record of Decision is
released (anticipated early 2020).
City Clerk’s Office
2) Continued Population of Ordinance Repository - $10,000
UPurpose for fundsU: OrdBank is a service available through our codifier, Municipal Code
Corporation (MCC), that allows the City to store, search, and link original ordinances from a
Code section's history note, Supplement History Table, and Code Comparative Table. It
allows browsing of a permanent ordinance repository and affords the City the opportunity to
include historical ordinances in the repository. This provides a "one stop shop" experience
beneficial to public and internal customers and is particularly helpful for research and
development of future Code amendments. Appropriation of these funds will add six more
years (2006 through 2011) of ordinances amending City Code, Land Use Code and Traffic
Code language to be added to the repository.
UReason funds not expensed in 2019U: The City has been adding to the MCC ordinance
repository since 2016 as resources allow. This is typically done near the end of the year
when codification (Code amendment) is winding down and remaining funds are identified.
Due to staffing shortages in the 4th quarter of 2019, this project was delayed.
3) Boards and Commissions Software/Enhancements - $9,000
UPurpose for fundsU: These funds, originally established as ongoing funding for boards and
commissions tracking software, will be used to make enhancements to the chosen product
called Engage. Engage is a custom-built data management platform used to track all City
volunteers, and as such, does not immediately provide all of the functionality specific to
managing boards and commissions membership. Fortunately, additional customization is
readily available through Squarei Technologies, the Engage provider. Desired customization
includes additional data fields, enhanced reporting capabilities, and ability to integrate with
other tools (such as the City event calendar).
UReason funds not expensed in 2019U: The Boards and Commissions Coordinator left her
position in August, which remained vacant until December 30. Although other staff
members met with the Engage developer about desired enhancements, there was not
adequate time or knowledge to adequately scope needs.
City Manager’s Office
4) Emergency Preparedness and Security - $50,000
UPurpose for fundsU: The 2019 offer provided funding to maintain the current level of service
provided by the Office of Emergency Preparedness and Security (EPS), which benefits
residents, visitors and employees of Fort Collins by providing preservation of life, safety,
property conservation and environmental protection in pre-disaster, disaster and post-disaster
periods. EPS is also now responsible for coordinating and providing internal and external
services in the area security, addressing both internal and external security issues and threats.
UReason funds not expensed in 2019U: In 2019 there was a nationwide search for a Director of
Emergency Preparedness and Security which was not completed until July 2019. During the
time of the search there was a concentrated effort by the interim Director to limit the
spending of funds so the new Director could set the strategic direction of the program. Once
the Director was in place, emergency and security programing was initiated in the fourth
quarter and has continued into 2020. This request is to reappropriate $50,000 to fund critical
programming and training that is foundational to daily operations and aligns with the
strategic vision being developed.
Municipal Court
5) Court-Appointed Defense Counsel Funding Request - $18,750
UPurpose for fundsU: In 2019, as required by law, Chief Judge Lane ordered that court-
appointed defense counsel be assigned to represent certain defendants on traffic and non-
traffic misdemeanor cases. Defense counsel was appointed on approximately 330 cases in
2019, several of which are still in progress. The fee paid by the City for such representation
is billed at the rate of $75/hour up to a maximum of $1,675 per case if the case does not go to
trial or $2,480 if the case goes to trial. We are requesting that a portion of the remaining
funds from our 2019 budget be reappropriated into the same expense account for 2020.
UReason funds not expensed in 2019U: Due to the complexity of and circumstances related to
these cases, the Court has 59 outstanding cases with defense counsel appointments that
started in 2019 and have not yet reached final disposition. Therefore, the assigned defense
counsel will not be submitting bills to the Court until the case(s) have been concluded,
sometime in the next few weeks/months.
Social Sustainability
6) Affordable Housing Programs (AHF) - $105,780
UPurpose for fundsU: The Affordable Housing Funds are allocated annually through the
Competitive Process to support critical affordable housing needs in the City of Fort Collins.
Because of the cyclical nature of housing development, funding may be either unallocated or
unexpended during a program year. Pursuant to ordinance No. 28, 1994, any amounts
appropriated by Council and not expended during the fiscal year should lapse into the
Affordable Housing Reserve.
UReason funds not expensed in 2019U: $25,047 represents FY19 funding that was not allocated
to an affordable housing project. $10,434 represents unspent program support costs and
$70,299 represents funding that was previously committed to the Homebuyer Assistance
Program but not yet contracted. The HBA funding cannot be contracted until individual
homeowners make application to program for specific properties under contract. The balance
of funds will be added to the Spring 2020 Competitive Process to be allocated to an eligible
affordable housing project.
Environmental Services
7) CAP Energy Policy - $40,000 (plus an additional $15,000 in Keep Fort Collins Great
Fund (KFCG) totals $55,000 for request)
UPurpose for fundsU: These resources support the development and deployment of Our
Climate Future, a combined update to the Climate Action Plan, Energy Policy and Road to
Zero Waste updates, which include an equity-centered planning process and outcomes. The
funding will support consultants for the technical aspects of the planning process ($40,000
General Fund) as well as additional community partners and plan ambassadors to support
community engagement to be coordinated by the City of Fort Collins Communications &
Public Involvement Office ($15,000 KFCG).
UReason funds not expensed in 2019U: Due to the equity-centered planning process, an
additional phase was added to the planning process (entitled "Understanding Community
Priorities"). This meant the 2019 focus was almost entirely on community engagement
instead of securing the consultants needed to develop and analyze the plan's strategies. There
is an RFP out for the consultant team as well as additional recruitment are all underway. All
funds are anticipated to be expended in 2020.
KEEP FORT COLLINS GREAT FUND
Natural Areas
8) West Nile Virus - Efficacy Study- $20,000
UPurpose for fundsU: The purpose of this offer is to improve understanding of the efficacy of
adult mosquito control efforts in Fort Collins. The West Nile Virus (WNV) Technical
Advisory Committee has identified a need for field studies to show the efficacy of adult
mosquito treatments. Although the WNV program operates a robust trapping network, the
timing of data collection contributes to variability in pre-treatment and post-treatment
efficacy analysis. These funds would decrease the variability and improve understanding of
the causal relation between treatment and vector index reduction.
UReason funds not expensed in 2019U: The Centers for Disease Control initiated preliminary
pro-bono work on developing a treatment efficacy study in 2019. However, due to the
impacts of a rain event on the single 2019 adult mosquito treatment event, the CDC could not
generate sufficient data. If the 2020 CDC budget allows, CDC and the City will continue to
work together to develop a study. If that is not possible, these funds will fund an efficacy
study performed by a consultant.
Economic Health
9) Business Retention and Engagement- $22,500
UPurpose for fundsU: These funds are intended for the Business Engagement Action Plan team
development of Customer Service Training Tools and Innovation After Hours. Piloting a
new Innovation After Hours focusing on workforce and highlighting local companies’ best
practices, as well as innovative ways of doing business.
UReason funds not expensed in 2019U: In 2019, City Manager's Office requested that the
Customer Service initiative be reviewed at the City-organizational level instead of only at the
business stakeholder level. Funds were not expended due to timing of onboarding a new PM.
This approach allows for a holistic approach to customer service.
Environmental Services
10) CAP Energy Policy - $15,000 (plus an additional $40,000 in General Fund totals
$55,000 for request)
Please see description in #7 under General Fund.
11) Road to Zero Waste Plan Update- $13,597
UPurpose for fundsU: These resources allow the Waste Reduction and Recycling program area
to update the Road to Zero Waste (RtZW) plan in 2019/2020 as part of the Our Climate
Future (OCF) planning process. OCF is a combined update to the Climate Action Plan,
Energy Policy and Road to Zero Waste updates, which include an equity-centered planning
process and outcomes. The Road to Zero Waste plan was originally adopted by City Council
in 2013 and has been a foundational, strategic document for the Environmental Services
Department, the organization, and the community. An evolution of the road map, including a
review of interim Zero Waste goals, is needed to adapt priorities and strategies to changes
that have occurred from the local level all the way to the global level.
UReason funds not expensed in 2019U: Due to the equity-centered planning process, an
additional phase was added to the planning process (entitled "Understanding Community
Priorities"). This meant the 2019 focus was almost entirely on community engagement
instead of securing the consultants needed to develop and analyze the plans' strategies. There
is an RFP out for the consultant team as well as additional recruitment are all underway. All
funds are anticipated to be expended in 2020.
CULTURAL SERVICES FUND
Cultural Services
12) Lincoln Center Sustainable Performance Hall Lighting- $171,498
UPurpose for fundsU: This offer will purchase energy-efficient LED lighting for the Lincoln
Center Performance Hall. The new fixtures will reduce energy consumption by 75,000 kWh
each year, reduce utility costs by $12,000 per year, reduce the labor to replace lamps, and
reduce electric greenhouse gas emissions by at least 66 tons each year. This offer replaces the
Performance Hall’s 47 house lights with LED lamps and data distribution and dimming for
those units; and integrates house lights with the emergency lighting system, dramatically
improving safety during any evacuation event. The existing system is inadequate and may
not meet current code. Many existing bulbs in the performance hall are failing and need to be
replaced on a regular basis, making this the ideal time to replace this existing system with a
more cost-effective and environmentally sustainable LED lighting system.
UReason funds not expensed in 2019U: Due to turnover in technical staff, Cultural Services did
not have the expertise to complete the project in a timely and cost-effective manner. This
was communicated to executive management in June, resulting in the decision to postpone
the project until 2020.
TRANSPORATION CAPITAL EXPANSION FEE FUND
Engineering
13) Transportation Capital Expansion Fee Developer Reimbursements- $1,750,000
UPurpose for fundsU: The purpose of this offer is to appropriate Transportation Capital
Expansion Fee (TCEF) funds for the purpose of reimbursing development for the
construction of eligible transportation related improvements. The TCEF Program will
frequently partner with development to construct arterial and collector level roadways
adjacent to the development's frontage. After eligible improvements are accepted by the
City, the TCEF program will reimburse the developer for these improvements. The TCEF
Program anticipates several large reimbursements for 2020, including improvements
associated with the following developments: The Crowne at Old Town North, Northfield,
Waterfield Fourth, Mountains Edge, Taft Place, and the Standard. This offer will ensure the
TCEF Program's ability to reimburse development for eligible improvements constructed in
2020.
UReason funds not expensed in 2019U: The TCEF Program reimburses development for
eligible improvements after they are constructed and accepted by the City. Several of the
above-mentioned developments did not meet their anticipated 2019 completion dates and are
now expecting to be completed in 2020. The TCEF Program is still responsible to reimburse
these developments for eligible improvements. With these projects being delayed, TCEF
funds budgeted for 2019 need to be re-appropriated to 2020 to accommodate the anticipated
reimbursements.
TRANSPORATION FUND
Streets
14) Hickory SMP- $240,000
UPurpose for fundsU: Streets is requesting $240,000 to be re-appropriated from the 2019 SMP
budget to cover the costs of the Hickory Phase 2 project which was scheduled to be
completed in 2019. Phase 2 includes overlay maintenance from the railroad tracks East to
College Avenue.
UReason funds not expensed in 2019U: Hickory Street Phase 2 was postponed because Utilities
needs to complete work prior to the street maintenance work being completed. The utilities
work will be completed in 2020, and the Streets department will be able to complete the
project in 2020.
Traffic
15) Neighborhood Traffic Mitigation Program - $50,000
UPurpose for fundsU: Traffic in neighborhoods can affect the quality of life for residents,
bicycles, pedestrians as well as drivers. The Neighborhood Traffic Mitigation Program is a
collaborative effort between neighborhoods and City staff to implement traffic calming
options. Neighborhoods wanting to install speed bumps are required to complete a petition
before construction can take place. Traffic is requesting $50,000 to be re-appropriated from
the 2019 budget to install speed bumps in several neighborhood.
UReason funds not expensed in 2019U: Prior to speed bumps being installed, neighborhood
consensus with super majority support is required. In the fall of 2019, several neighborhoods
completed petitions, however there was not enough time to schedule and install the bumps
before the asphalt plants closed for the season. The streets are Stanford Road, Wabash
Street, Caribou Drive and Creekwood Drive. That construction is now scheduled for 2020.
PARKING FUND
Parking
16) Replacement Signage for Downtown - Flexible Parking Enforcement Hours -
$30,000
UPurpose for fundsU: Signage in the downtown area regarding timed public parking spaces
needs updated to be consistent with messaging and to improve aesthetics to help improve the
downtown experience. Prior to updating existing signage, Parking Services wanted to ensure
that proper verbiage and messaging was aligned with long-term needs. Existing signage
indicates hours of regulation, and in some signs/areas, days of regulation. By updating the
downtown signage, it will provide the flexibility of enforcement to meet community needs,
which is also supported by the Parking Advisory Board and the Downtown Business
Association. Based on newer parking signs adjacent to the Firehouse Alley Parking Structure,
on Chestnut Street, a similar design would support downtown needs and provide the
flexibility to alter/update as necessary.
UReason funds not expensed in 2019U: The reason the approved budget for the downtown
signage was not spent in 2019 was because Parking Services wanted to ensure that the
updated sign design in the downtown area would meet community needs for the longer-term.
Inground sensors were installed in the downtown parking stalls to capture specific data sets,
including occupancy, duration of stay, and parking space turnover. Parking Services had
intended to use the parking sensor data collected over 2019 to inform a decision of the
appropriate downtown signage. In lieu of data collection, Parking Services has begun
conversations with community partners, the Parking Advisory Board, the Downtown
Business Association, and the Downtown Development Authority. these funds will be spent
in 2020.
DATA & COMMUNICATIONS FUND
Information Technology (IT)
17) Electronic Plan Review - Phase Two - $35,510
UPurpose for fundsU: The purpose of these funds is to continue the development and
implementation of phase two of the Electronic Plan Review system for the Community
Development and Neighborhood Services (CDNS) department as well as Utilities and City
Partners including PFA. The funds will be utilized to support consulting services with True
Point Solutions to assist IT and CDNS with system improvements and increased functionality
to the existing Accela system, which includes configuration, scripting, report design and
development, testing, and support. These improvements are intended to help better track and
manage improved building permit processes. This phase of the project is anticipated to be
completed by Q1 2020.
UReason funds not expensed in 2019U: Phase two of this project was approved by City Council
on October 1, 2019 via Ordinance #112. Per the Agenda Item Summary and Ordinance, this
project was slated to go through Q1 of 2020. Therefore, it was anticipated that these funds
would not be fully expensed by the end of 2019. The City has already encumbered the
majority of the funding authorized by Ord #112 with True Point Solutions. The funds being
requested are for any unanticipated ancillary support costs and/or work order items that may
occur through scope changes as the project progresses.
18) Electronic Record Search - $103,000
UPurpose for fundsU: This request is to fund the purchase and implementation of an Electronic
Record Search solution that will enable organizations across the City to collaborate
effectively and efficiently when Open Records and other searches are requested. Open
records requests are received throughout the City organization and at times require
exhaustive searches of the records of many different departments in a strictly limited period
of time. The primary departments that take the lead in coordinating and assisting with
records searches for requests that touch on multiple departments are the City Clerk's Office,
City Attorney's Office and Information Technology. It is anticipated that this system will
assist departments throughout the City in complying with the statutory mandate to provide
public records upon request by members of the public. This item was a priority at the time it
was initially funded and continues to be critical to addressing an existing gap in the City's
systems for identifying and producing requested records.
UReason funds not expensed in 2019U: The original idea was to bring in a completely new tool
to meet identified electronic search functionality goals and that run concurrently with the
Document Management replacement system. Initially, a tool set within Office 365 was
identified as a potential solution, however after further analysis, the solution would have
required additional resources and process rewrite beyond the scope of the original intent.
Shortly after this discovery, the project stalled due to IT bandwidth capacity issues for
supporting higher priority, large scale projects. Recently in 2019, in light of staffing changes
and further dialogue, the primary departments involved in this project intentionally delayed
pursuing a procurement until early 2020 so that the future Chief Privacy Officer would have
an opportunity to provide additional input in identifying the proper tool needed based on the
Officer's recommended records management processes.
19) Event Log and Performance Monitoring Tool- $139,300
UPurpose for fundsU: This request would fund the procurement of an Event Log and
Performance Monitoring Tool to quickly evaluate the City's IT systems to pinpoint
operational inefficiencies and help detect cyber threats that can inhibit day-to-day City
operations. The tool will also enhance the City's ability to monitor and provide a proactive
response to infrastructure operations and incident resolution, quickly isolate and resolve
issues, and avoid any potential downtime. Funds in this request will also support the need for
professional services to assist in the implementation of this solution.
UReason funds not expensed in 2019U: This project was slated to begin in the 3rd quarter of
2019. However, the Data Management team's resources were consumed with higher level,
priority projects supporting Connexion and Light & Power, and there wasn't available
bandwidth to begin procuring this tool in 2019. These delays were reported in the quarterly
Safe Strategy Map review sessions. The team has had opportunity for continued analysis of
potential solutions and is targeting Q2 of 2020 to procure this tool with full implementation
by Fall of 2020.
20) Network Switch Replacements- $178,615
UPurpose for fundsU: The funds for this reappropriation request will fund the procurement and
professional services needed to replace two core switches along with two other switches that
are reaching their end-of-life cycle in July 2020. This infrastructure equipment is critical in
nature in that it connects to the eight individual fiber rings that supports the City's entire
network system. The professional services needed for this replacement includes the
discovery, configuration, implementation, and testing of the cores as this is projected to be a
three-month replacement project.
UReason funds not expensed in 2019U: In mid-2019, Information Technology staff began the
evaluation of replacing the core switches one year before lifecycle expiration. This included
multiple discussions with professional services and presentations on potential solutions to
replace the switches. During this same timeframe, a transition of City Network
responsibilities from IT to the Connexion team was being identified and determined. The
timing of the final transition did not leave adequate time for Connexion to evaluate IT's
solution proposal to assess if the proposal would fit within Connexion's network architecture
plans. In light of the timing of the lifecycle deadline, critical nature of these switches, and
other competing priorities, professional services funding needs to be carried into 2020 to
complete the replacement of these switches.
21) SharePoint Online - $20,290
UPurpose for fundsU: Funding this offer will enable the continuation of the planning, migration
and implementation of the SharePoint Online collaboration software included with the Office
365 plan which includes Outlook, Word, Excel, PowerPoint, Publisher, OneNote, OneDrive,
MS Teams, and SharePoint Online. Several of the Microsoft products utilize the SharePoint
Online platform for collaboration, task/project management and storage, and in some cases,
cannot function without SharePoint. This tool will enhance and standardize processes to
increase efficiency and reduce costs as expected by City Leaders, staff, and residents.
UReason funds not expensed in 2019U: Through 2019, the internal team responsible for this
project engaged in the planning foundations, contracted with a vendor, analyzed the
infrastructure to help develop standards and templates, priority sites for migration were
identified, and the team deployed MS Teams with accompanying training currently ongoing
into 2020. However, the project experienced intermittent delays over the course of the year
due to higher priority project commitments by team members. These delays were reported in
the quarterly HPG Strategy Map review sessions. Despite these delays, particular elements
and milestones of this project were accomplished. At present, a test migration is scheduled
for mid-February and the project team is targeting Q2 of 2020 for full deployment of the
SharePoint implementation.
FINANCIAL/ECONOMIC IMPACTS
This Ordinance increases 2020 appropriations by $3,047,318. A total of $258,008 is requested
for reappropriation in the General Fund, $71,097 from the Keep Fort Collins Great Fund, and
$2,718,213 is requested from various other City funds. Of those other funds, the majority is
$1,750,000 in the Transportation Capital Expansion Fee Fund. Reappropriation requests
represent amounts budgeted in 2019 that could not be encumbered at year-end. The
appropriations are from 2019 prior year reserves.
ATTACHMENTS
PowerPoint presentation
2020 Reappropriation Ordinance
Lawrence Pollack, Budget DirectorFeb 24, 2020
2020 Reappropriation Summary
2
What qualifies for Reappropriation?
•Funds that were originally appropriated in 2019 for a specific
purpose but were not fully expensed or encumbered by the
end of the fiscal year
•Appropriate the funds from 2019 reserves into the 2020
budget for the same specific uses that were originally
proposed and approved for 2019
•The executive team reviewed the reappropriation requests
and concluded that all 2020 reappropriation items submitted
were still high priorities to be completed
2020 Reappropriation Summary
3
Amount by Fund being requested for Reappropriation:
General Fund $258,008
Keep Fort Collins Great Fund 71,097
Cultural Services Fund 171,498
Transportation CEF Fund 1,750,000
Transportation Fund 290,000
Parking Fund 30,000
Data and Communications Fund 476,715
Total $3,047,318
Reappropriation by Fund
GENERAL FUND:
4
KEEP FORT COLLINS GREAT FUND:
#Department Request Name Amount
1 Natural Areas Response to the Northern Integrated Supply Project (NISP)$24,478
2 City Clerk's Office Continued Population of Ordinance Repository 10,000
3 City Clerk's Office Boards and Commissions Software/Enhancements 9,000
4 City Manager's Office Emergency Preparedness and Security 50,000
5 Municipal Court Municipal Court: Court-Appointed Defense Counsel Funding 18,750
6 Social Sustainability Affordable Housing Programs (AHF)105,780
7 Environmental Services CAP Energy Policy 40,000
GENERAL FUND TOTAL $258,008
#Department Request Name Amount
8 Natural Areas West Nile Virus - Efficacy Study $20,000
9 Economic Health Office BR&E Business Engagament 22,500
10 Environmental Services CAP Energy Policy 15,000
11 Environmental Services Road to Zero Waste Plan Update 13,597
KEEP FORT COLLINS GREAT FUND TOTAL $71,097
OTHER FUNDS:
5
Reappropriation by Fund
#Department Request Name Amount
12 Cultural Services Lincoln Center Sustainable Performance Hall Lighting $171,498
13 Engineering Transportation Capital Expansion Fee Developer Reimbursements $1,750,000
14 Streets Hickory SMP 240,000
15 Traffic Neighborhood Traffic Mitigation Program 50,000
16 Parking Replacement Signage for Downtown- Flexible Parking Enforcement Hours 30,000
17 Information Technology Electronic Plan Review - Phase Two 35,510
18 Information Technology Electronic Record Search 103,000
19 Information Technology Event Log & Performance Monitoring Tool 139,300
20 Information Technology IT Network Switch Replacements 178,615
21 Information Technology SharePoint Online 20,290
OTHER FUNDS TOTAL $2,718,213
GRAND TOTAL $3,047,318
6
Historic Reappropriation Ordinances
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
2015 2016 2017 2018 2019 2020
Total All Funds General Fund
2020 Reappropriation Summary
7
Guidance Requested:
1)CFC feedback on the Reappropriation requests being presented
2)CFC direction on putting Reappropriation on the Consent Agenda
of the March 3rd City Council meeting