Loading...
HomeMy WebLinkAboutCOUNCIL - COMPLETE AGENDA - 04/09/2024 Fort Collins City Council Work Session Agenda 6:00 p.m., Tuesday, April 9, 2024 Council Information Center (CIC), 300 Laporte Avenue, Fort Collins, CO 80521 NOTE: New location for Council work sessions. NOTICE: Work Sessions of the City Council are held on the 2nd and 4th Tuesdays of each month in the Council Information Center (CIC) of the 300 Building. Meetings are conducted in a hybrid format, however there is no public participation permitted in a work session. City Council members may participate in this meeting via electronic means pursuant to their adopted policies and protocol. How to view this Meeting: Meetings are open to the public and can be attended in person by anyone. Meetings are televised live on Channels 14 & 881 on cable television. Meetings are livestreamed on the City's website, fcgov.com/fctv. Upon request, the City of Fort Collins will provide language access services for individuals who have limited English proficiency, or auxiliary aids and services for individuals with disabilities, to access City services, programs and activities. Contact 970.221.6515 (V/TDD: Dial 711 for Relay Colorado) for assistance. Please provide 48 hours’ advance notice when possible. A solicitud, la Ciudad de Fort Collins proporcionará servicios de acceso a idiomas para personas que no dominan el idioma inglés, o ayudas y servicios auxiliares para personas con discapacidad, para que puedan acceder a los servicios, programas y actividades de la Ciudad. Para asistencia, llame al 970.221.6515 (V/TDD: Marque 711 para Relay Colorado). Por favor proporcione 48 horas de aviso previo cuando sea posible. While work sessions do not include public comment, mail comments about any item on the agenda to cityleaders@fcgov.com Meeting agendas, minutes, and archived videos are available on the City's meeting portal at https://fortcollins-co.municodemeetings.com/ City of Fort Collins Page 1 of 2 City Council Work Session Agenda April 9, 2024 at 6:00 PM Jeni Arndt, Mayor Emily Francis, District 6, Mayor Pro Tem Susan Gutowsky, District 1 Julie Pignataro, District 2 Tricia Canonico, District 3 Melanie Potyondy, District 4 Kelly Ohlson, District 5 Council Information Center (CIC) 300 Laporte Avenue, Fort Collins Cablecast on FCTV Channel 14 on Connexion Channel 14 and 881 on Comcast Carrie Daggett Kelly DiMartino Heather Walls City Attorney City Manager Interim City Clerk CITY COUNCIL WORK SESSION 6:00 PM A)CALL MEETING TO ORDER B)ITEMS FOR DISCUSSION 1.Impact Fees Discussion. The purpose of this item is to share with the Council the findings of the Capital Expansion Fee Study, Transportation Capital Expansion Fee Study, and Utility model updates that were completed in Q4 2023. Additionally, the preliminary work from the ongoing Water Utility 2024 updates and City and Front Range Communities’ approaches to fee offsets have been incorporated into the holistic analysis. The fee studies were last updated comprehensively in 2017, with rates implemented over a three-year timeframe from 2018 to 2020. 2.Water Supply Requirements, Excess Water Use Charges, and Non-Residential Allotments. The purpose of this item is to provide Council and the community with an update on the project plan and analysis regarding three related items for Fort Collins Utilities (Utilities) water customers: ● Revisions to the Water Supply Requirement (WSR) fee methodology; ● Revisions to the excess water use surcharge (surcharge); and ● Assignment of annual water allotments (allotments) for non-residential customers, specifically, pre-1984 non-residential accounts (pre-1984 accounts) that currently do not have allotments. The feedback from this Work Session will be considered and addressed at the July 16 Work Session. 3. Discussion of the 2024 Appropriation of the First Year of the 2050 Tax for Parks, Recreation, Transit and Climate (2050 Tax). The purpose of this item is to discuss the items being considered for the 2024 appropriation the first year of the new 2050 Tax. In November 2023, Fort Collins voters approved this 0.5% Sales & Use Tax increase, which is dedicated to the areas of Parks, Recreation, Transit and Climate. This tax begins in 2024 and expires at the end of 2050. Page 1 City of Fort Collins Page 2 of 2 C) ANNOUNCEMENTS D) ADJOURNMENT Upon request, the City of Fort Collins will provide language access services for individuals who have limited English proficiency, or auxiliary aids and services for individuals with disabilities, to access City services, programs and activities. Contact 970.221.6515 (V/TDD: Dial 711 for Relay Colorado) for assistance. Please provide advance notice. Requests for interpretation at a meeting should be made by noon the day before. A solicitud, la Ciudad de Fort Collins proporcionará servicios de acceso a idiomas para personas que no dominan el idioma inglés, o ayudas y servicios auxiliares para personas con discapacidad, para que puedan acceder a los servicios, programas y actividades de la Ciudad. Para asistencia, llame al 970.221.6515 (V/TDD: Marque 711 para Relay Colorado). Por favor proporcione aviso previo. Las solicitudes de interpretación en una reunión deben realizarse antes del mediodía del día anterior. Page 2 City Council Work Session Agenda Item Summary – City of Fort Collins Page 1 of 5 April 9, 2024 WORK SESSION AGENDA ITEM SUMMARY City Council STAFF David Lenz, Director, Financial Planning & Analysis Randy Reuscher, Lead Rate Analyst, Utilities Marc Virata, Engineer III, Planning, Development & Transportation SUBJECT FOR DISCUSSION Impact Fees Discussion. EXECUTIVE SUMMARY The purpose of this item is to share with the Council the findings of the Capital Expansion Fee Study, Transportation Capital Expansion Fee Study, and Utility model updates that were completed in Q4 2023. Additionally, the preliminary work from the ongoing Water Utility 2024 updates and City and Front Range Communities’ approaches to fee offsets have been incorporated into the holistic analysis. The fee studies were last updated comprehensively in 2017, with rates implemented over a three-year timeframe from 2018 to 2020. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Prior to consideration of ordinances updating fees for 2025, what questions do Councilmembers have related to the Fee Studies and Utility model updates? 2. What policy considerations and/or options do Councilmembers want to investigate further? BACKGROUND / DISCUSSION Work to Date: During 2023, staff worked both internally and with external consultants to update the City’s development related impact fees. This resulted in two study updates: the Capital Expansion Fee Study (CEF), covering neighborhood and community parks, fire, police and general governmental services Capital Expansion Fees, and the Transportation Capital Expansion Fee Study (TCEF). Additionally, the City’s utility organizations underwent their biennial internal update of their impact fee models, composed of Plant Investment Fees (PIFs), Electric Capacity Fee (ECF), Water Supply Requirement (WSR), excess water use and allotments. During the August 8, 2023, work session with Council, the WSR and excess water use were discussed, and a decision was made to defer decisions around these two items until more work was undertaken (expected to last throughout 2024). Page 3 Item 1. City Council Work Session Agenda Item Summary – City of Fort Collins Page 2 of 5 During Council Finance Committee meetings on October 5, 2024, and December 14, 2024, the CEF and TCEF Study updates were discussed with the committee. The Utility Water, Wastewater (Sewer), and Stormwater PIFs, and ECF updates were also discussed. Staff presented the background, methodologies, and findings of the external study updates and internal utilities fee model updates. New fee schedules for all impact fees reflecting the study and model updates were presented. After discussion with the committee about the results of the study and fee model updates, the Committee recommended that staff proceed with inflation-only adjustments to the CEF, TCEF, Utility PIFs and ECF for 2024. These inflation updates were adopted by Council on second reading on February 20,2024, and became effective on March 1, 2024. The CEFs increased by 5.6%; the TCEF and Utility fees increased by 7.4%. Study/Model Updates: Transportation Capital Expansion Fee (TCEF) TCEF is a one-time fee collected from development and redevelopment to mitigate impacts to the transportation network. It is used to support growth share related infrastructure improvements which add capacity to the system from both a roadway and multi-modal perspective. Fees cannot be used for improvements which solely benefit adjacent development, existing deficiencies, and/or for maintenance. The City contracted with TischlerBise for the current TCEF study update. The 2023 TCEF study uses a combination of incremental expansion for roadways and plan-based methodologies to provide improvements for Active Modes. For residential development, updated amounts are based on square feet of finished living space. Garages, porches and patios are excluded from the TCEF assessment. For nonresidential development, TCEFs are stated per thousand square feet of floor area, using three categories. The TCEF schedule for nonresidential development is designed to provide a reasonable fee amount for general types of development. There has been further emphasis on active modes and to provide further clarity the maximum supportable fee schedule is broken down by roadway capacity and active modes. Summary fees are highlighted below with a comparison to the 2023 fees and the TCEF Draft Report with full detail is included as Attachment 1. Other Capital Expansion Fees (CEFs) The City has five separate CEFs, related to neighborhood and community parks, and fire, police and general government services. These fees were initially adopted in 1996 based on an internal study by staff. External study updates were completed in 2013 and 2017 by Duncan Associates. The studies relied on Page 4 Item 1. City Council Work Session Agenda Item Summary – City of Fort Collins Page 3 of 5 the standards-based (or incremental expansion) methodology, which bases the fees on the existing levels of service. The new fees were adopted in 2017 and implemented over a three-year time period. In the spring of 2023, the City solicited bids and contracted with Economic & Planning Systems, Inc. (EPS) to update the Capital Expansion Fee Study. The EPS Study Update adheres to the existing standard- based approach to fee calculation, continuing to use construction cost replacement valuations. Almost all fee categories have increased from current 2023 fee levels. The biggest overall impact contributing to higher rates is the significantly higher asset valuations for police and fire services (and to a lesser extent, general governmental) outpacing the service population growth rates. These inflationary impacts have been realized locally in the higher cost of the City’s purchases of goods and services, especially in the post-COVID environment. In this update, the Office and Other Services type has been broken out from Commercial and is aligned with TCEF categories based on differing demand impacts. The study update had differing results for the neighborhood and community parks. The most recent neighborhood park builds (Bucking Horse, Crescent, Traverse) were all significantly more expensive to buildout on $/acre basis than prior facilities, leading to much higher fee calculations than for the community parks. A new maintenance facility also contributed to higher overall costs. The table below summarizes the study fee calculations for residential and non-residential properties compared to the 2023 fees. Full detail is included in the CEF Draft Report in Attachment 2. Utilities Fees Utilities staff updates development fee models every two years. In alternating years, when models are not updated, an inflationary adjustment is applied to utility development fees. Staff use the Engineering News Record (ENR) construction cost index to apply inflationary adjustments. The Utility Water, Wastewater (Sewer), and Stormwater PIFs and ECF were updated. Each model was updated this year to capture current inputs, including current escalation factors and each of the various drivers as such costs, consumption, and future system needs. Utilities have experienced extreme cost pressures, especially on the electric side. Some items such as electric transformers have increased dramatically in price due to supply chain issues and higher material costs. The table below shows the results of the modeling update for each of the development fees by fund. Page 5 Item 1. City Council Work Session Agenda Item Summary – City of Fort Collins Page 4 of 5 The CEF and TCEF study updates and the Utility fee model updates (including a low/high range of 2025 estimates for the ongoing Water Utility work in progress), are combined in the tables below to present a summary of the total fee component of development activity costs for both a multi-unit complex and a detached, single/duplex example. The multi-family example is for a 48,000 square foot development with 55 units. The single-family example is an 1,890 square foot floorplan. 2024 above is presented for both what is currently in force after the inflationary update s were approved and what the study/model updates total. For 2025, the rates presented reflect the 2024 study/model updates plus a projected assumption of 3.5% for inflation during 2024 in addition to the low/high estimate ranges for WSR. Actual Study Lo WSR Hi WSR Lo WSR Hi WSR CEF 448,585$ 460,753$ 469,536$ 509,916$ 538,471$ 587,572$ 608,137$ 608,137$ 11,057$ 11,057$ TCEF 160,512$ 161,403$ 173,366$ 185,675$ 199,415$ 209,865$ 217,210$ 217,210$ 3,949$ 3,949$ Dev Review/Permits/Other 67,695$ 67,846$ 58,850$ 58,850$ 58,850$ 58,850$ 60,910$ 60,910$ 1,107$ 1,107$ Water PIF 62,707$ 64,365$ 71,102$ 77,501$ 83,236$ 81,919$ 84,786$ 84,786$ 1,542$ 1,542$ Water Supply Requirement 245,004$ 252,354$ 196,039$ 196,039$ 196,039$ 196,039$ 172,181$ 334,876$ 3,131$ 6,089$ Wasterwater PIF 142,450$ 146,740$ 151,745$ 165,385$ 177,623$ 172,166$ 178,192$ 178,192$ 3,240$ 3,240$ Stormwater PIF 20,639$ 21,257$ 22,055$ 24,040$ 25,819$ 25,723$ 26,623$ 26,623$ 484$ 484$ Electic Capacity Fee 111,209$ 117,836$ 121,972$ 132,949$ 142,788$ 152,626$ 157,968$ 157,968$ 2,872$ 2,872$ Combined Fees 1,258,801$ 1,292,554$ 1,264,665$ 1,350,356$ 1,422,242$ 1,484,759$ 1,506,006$ 1,668,701$ 27,382$ 30,340$ Percentage Change Baseline 2.7% -2.2% 6.8% 5.3% 10.0% 11.5% 23.6% 11.5% 23.6% vs. 2020 vs. 2021 vs. 2022 2025 - $/Unit City Charged Fees: Multi-Unit Residence Example (48,000 sq. ft. development w/ 55 units) vs. 2023 Type 2020 2021 2022 2023 2024 2025 Actual Study Lo WSR Hi WSR CEF 8,591$ 8,824$ 8,992$ 9,764$ 10,310$ 12,223$ 12,650$ 12,650$ TCEF 6,586$ 6,623$ 7,115$ 7,621$ 8,185$ 8,106$ 8,390$ 8,390$ Dev Review/Permits/Other 2,532$ 3,314$ 2,792$ 2,792$ 2,792$ 2,792$ 2,890$ 2,890$ Water PIF 4,084$ 4,192$ 4,393$ 4,807$ 5,162$ 5,081$ 5,259$ 5,259$ Water Supply Requirement 13,869$ 14,285$ 22,813$ 22,813$ 22,813$ 22,813$ 20,037$ 38,970$ Wasterwater PIF 3,590$ 3,698$ 3,824$ 4,168$ 4,476$ 4,339$ 4,491$ 4,491$ Stormwater PIF 1,119$ 1,153$ 1,197$ 1,305$ 1,402$ 1,397$ 1,446$ 1,446$ Electic Capacity Fee 2,855$ 3,025$ 3,764$ 4,391$ 4,716$ 5,041$ 5,217$ 5,217$ Combined Fees 43,226$ 45,114$ 54,891$ 57,662$ 59,856$ 61,792$ 60,379$ 79,313$ Percentage Change Baseline 4.4% 21.7% 5.0% 3.8% 7.2% 4.7% 37.5% vs. 2020 vs. 2021 vs. 2022 2022 2023 City Charged Fees: Single/Duplex Residence Example (1,890 sq. ft. floorplan) vs. 2023 2024 2025Type20202021 Page 6 Item 1. City Council Work Session Agenda Item Summary – City of Fort Collins Page 5 of 5 Fee Offsets and Credits: In response to feedback from the Council Finance Committee meeting in December 2023, staff have compiled an assessment of the current City approaches to help mitigate cost pressures impacting affordability of local housing as well as a survey of other Front Range communities’ approaches to incentivizing affordable housing through fee reductions. A summary of the approaches is highlighted below. Options that staff are investigating to potentially expand the City’s efforts include waiving all fees for 30% AMI units, waiving some/all fees for a broader income range, and creating a tiered approach that waives fees for some units (e.g., 30 – 50 % AMI) and partially credits others. NEXT STEPS  Evaluate and incorporate Councilmembers’ feedback on fee structures, policy considerations and options.  Continue coordination with Utilities for consolidated approach to 2025 fee updates and schedules. ATTACHMENTS 1. Transportation Capital Expansion Fee Draft Report 2. Capital Expansion Fee Draft Report 3. Presentation Page 7 Item 1. Transportation Capital Expansion Fee Study Submitted to: City of Fort Collins, Colorado October 20, 2023 Prepared by: 4701 Sangamore Road Suite S240 Bethesda, Maryland 20816 800.424.4318 www.tischlerbise.com Page 8 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado [Page Intentionally left blank] Page 9 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado i Transportation Capital Expansion Fee Study City of Fort Collins, Colorado Executive Summary ....................................................................................................................................... 2 Transportation Capital Expansion Fees by Type of Land Use ................................................................... 2 General Impact Fee Requirements ............................................................................................................... 4 Colorado Impact Fee Enabling Legislation ................................................................................................ 4 Additional Legal Guidelines ....................................................................................................................... 4 Impact Fee Methodologies ....................................................................................................................... 6 Transportation Capital Expansion Fee – Roadway Capacity Component ..................................................... 8 Existing Levels of Service for Transportation ............................................................................................ 8 Development Prototypes and Projected Vehicle Miles of Travel ........................................................... 10 Capital Cost per Vehicle Miles of Travel ................................................................................................. 12 Revenue Credit Evaluation ...................................................................................................................... 12 Input Variables for TCEF – Roadway Capacity Component .................................................................... 13 Revenue Projection from Maximum Supportable Fee Amounts ............................................................ 14 Transportation Capital Expansion Fee – Active Modes Component .......................................................... 15 Active Modes Capital Plan ...................................................................................................................... 15 Active Modes Capital Plan Cost Analysis ................................................................................................ 15 Revenue Credit Evaluation ...................................................................................................................... 16 Input Variables for TCEF – Active Modes Component ............................................................................ 17 Revenue Projection from Maximum Supportable Fee Amounts ............................................................ 18 Implementation and Administration .......................................................................................................... 19 Credits and Reimbursements .................................................................................................................. 19 Citywide Service Area.............................................................................................................................. 19 Expenditure Guidelines ........................................................................................................................... 19 Development Categories......................................................................................................................... 20 Appendix A – Land Use Assumptions .......................................................................................................... 21 Base Year Population and Housing Units ................................................................................................ 21 Population and Housing Unit Projections ............................................................................................... 23 Current Employment and Nonresidential Floor Area ............................................................................. 24 Employment and Nonresidential Floor Area Projections ....................................................................... 26 Vehicle Trip Generation .......................................................................................................................... 27 Residential Trip Generation by Housing Unit Size (sq. ft.) ...................................................................... 30 Appendix B – Active Modes Project Lists .................................................................................................... 33 Page 10 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 1 [Page Intentionally left blank] Page 11 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 2 EXECUTIVE SUMMARY The City of Fort Collins currently collects Transportation Capital Expansion Fee (TCEF) based on a 2017 study completed by TischlerBise. The City has retained TischlerBise to update its TCEF program. The 2023 TCEF study uses a combination of incremental expansion and plan-based methodologies to provide improvements for all modes of travel. Figure 1 provides an overview of the methodology and cost components used in the Fort Collins study. Figure 1. TCEF Methods and Cost Components Transportation Capital Expansion Fees by Type of Land Use As documented in this report, the City of Fort Collins has complied with applicable legal precedents and Colorado’s Impact Fee enabling legislation (discussed below). The TCEF schedule is proportionate and reasonably related to the cost of capital improvements needed to accommodate new development. Specific costs have been identified using local data and current dollars. With input from City staff, TischlerBise determined demand indicators for transportation capacity and calculated proportionate share factors to allocate costs by type of development. The TCEF methodology also identifies the extent to which new development is entitled to various types of credits to avoid potential double payment of growth-related capital costs. Figure 2 shows the maximum supportable TCEF schedules. For residential development, updated amounts are based on square feet of finished living space. Garages, porches and patios are excluded from the TCEF assessment. Fees by dwelling size rather than type simplifies administration, improves proportionality, and is consistent with the way other Capital Expansion Fees are collected in Fort Collins. For nonresidential development, TCEFs are stated per thousand square feet of floor area, using three broad categories. The TCEF schedule for nonresidential development is designed to provide a reasonable fee amount for general types of development. For unique developments, the City may allow or require an independent assessment. Active modes improvements and expansions were included in the 2017 analysis. There has been further emphasis on active modes and to provide further clarity the maximum supportable fee schedule is broken down by roadway capacity and active modes. Types of Improvement Cost Allocation Service Area Cost Recovery Incremental Expansion Plan-Based Capacity Roadway Expansion Vehicle Miles of Travel (VMT)Citywide -Roadway Capacity - Active Modes Person and Jobs Citywide -- Bike Lanes, Ped/Bike Intersections, Signals Page 12 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 3 Figure 2. Maximum Supportable TCEF up to 700 11.79 $2,863 0.99 $272 $3,135 $2,703 $432 16% 701 to 1,200 20.54 $4,988 1.77 $487 $5,475 $5,020 $455 9% 1,201 to 1,700 26.20 $6,363 2.27 $625 $6,988 $6,518 $470 7% 1,701 to 2,200 30.39 $7,380 2.64 $726 $8,106 $7,621 $485 6% over 2,200 33.73 $8,191 2.94 $809 $9,000 $8,169 $831 10% Commercial 45.48 $11,045 2.12 $702 $11,747 $9,946 $1,801 18% Office & Other Services 26.56 $6,450 3.26 $1,075 $7,525 $7,327 $198 3% Industrial 11.93 $2,897 2.86 $944 $3,841 $2,365 $1,476 62% Residential (per dwelling unit) Percent Change Maximum Supportable Fee Square Feet of Finished Living Space Percent Change Development Type Nonresidential (per 1,000 square feet) Maximum Supportable Fee Increase/ Decrease Roadway Capacity Fee Roadway Capacity Fee Current Fees VMT per Unit Active Modes Fee Current Fees Increase/ Decrease Persons per Unit Jobs per KSF Active Modes Fee VMT per KSF Page 13 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 4 GENERAL IMPACT FEE REQUIREMENTS Colorado Impact Fee Enabling Legislation For local governments, the first step in evaluating funding options for transportation improvements is to determine basic options and requirements established by state law. Some states have more conservative legal parameters that basically restrict local government to specifically authorized actions. In contrast, “home-rule” states grant local governments broader powers that may or may not be precluded or preempted by state statutes depending on the circumstances and on the state’s particular laws. Home rule municipalities in Colorado, like Fort Collins, have the authority to impose impact fees based on both their home rule power granted in the Colorado Constitution and the impact fee enabling legislation enacted in 2001 by the Colorado General Assembly. Impact fees (also known as capital expansion fees) are one-time payments imposed on new development that must be used solely to fund growth-related capital projects, typically called “system improvements”. An impact fee represents new growth’s proportionate share of capital facility needs. In contrast to project-level improvements, impact fees fund infrastructure that will benefit multiple development projects, or even the entire service area, as long as there is a reasonable relationship between the new development and the need for the growth-related infrastructure. Project-level improvements, typically specified in a development agreement, are usually limited to transportation improvements near a proposed development, such as ingress/egress lanes. According to Colorado Revised Statute Section 29-20-104.5, impact fees must be legislatively adopted at a level no greater than necessary to defray impacts generally applicable to a broad class of property. The purpose of impact fees is to defray capital costs directly related to proposed development. The statutes of other states allow impact fee schedules to include administrative costs related to impact fees and the preparation of capital improvement plans, but this is not specifically authorized in Colorado’s statute. Impact fees do have limitations, and should not be regarded as the total solution for infrastructure funding. Rather, they are one component of a comprehensive portfolio to ensure adequate provision of public facilities. Because system improvements are larger and more costly, they may require bond financing and/or funding from other revenue sources. To be funded by impact fees, Section 29-20-104.5 requires that the capital improvements must have a useful life of at least five years. By law, impact fees can only be used for capital improvements, not operating or maintenance costs. Also, development impact fees cannot be used to repair or correct existing deficiencies in existing infrastructure. Additional Legal Guidelines Both state and federal courts have recognized the imposition of impact fees on development as a legitimate form of land use regulation, provided the fees meet standards intended to protect against regulatory takings. Land use regulations, development exactions, and impact fees are subject to the Fifth Amendment prohibition on taking of private property for public use without just compensation. To comply with the Fifth Amendment, development regulations must be shown to substantially advance a legitimate governmental interest. In the case of impact fees, that interest is the protection of public Page 14 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 5 health, safety, and welfare by ensuring development is not detrimental to the quality of essential public services. The means to this end are also important, requiring both procedural and substantive due process. The process followed to receive community input (i.e., stakeholder meetings, work sessions, and public hearings) provides opportunities for comments and refinements to the impact fees. There is little federal case law specifically dealing with impact fees, although other rulings on other types of exactions (e.g., land dedication requirements) are relevant. In one of the most important exaction cases, the U. S. Supreme Court found that a government agency imposing exactions on development must demonstrate an “essential nexus” between the exaction and the interest being protected (see Nollan v. California Coastal Commission, 1987). In a more recent case (Dolan v. City of Tigard, OR, 1994), the Court ruled that an exaction also must be “roughly proportional” to the burden created by development. There are three reasonable relationship requirements for development impact fees that are closely related to “rational nexus” or “reasonable relationship” requirements enunciated by a number of state courts. Although the term “dual rational nexus” is often used to characterize the standard by which courts evaluate the validity of development impact fees under the U.S. Constitution, TischlerBise prefers a more rigorous formulation that recognizes three elements: “need,” “benefit,” and “proportionality.” The dual rational nexus test explicitly addresses only the first two, although proportionality is reasonably implied, and was specifically mentioned by the U.S. Supreme Court in the Dolan case. Individual elements of the nexus standard are discussed further in the following paragraphs. All new development in a community creates additional demands on some, or all, public facilities provided by local government. If the capacity of facilities is not increased to satisfy that additional demand, the quality or availability of public services for the entire community will deteriorate. Development impact fees may be used to cover the cost of development-related facilities, but only to the extent that the need for facilities is a consequence of development that is subject to the fees. The Nollan decision reinforced the principle that development exactions may be used only to mitigate conditions created by the developments upon which they are imposed. That principle likely applies to impact fees. In this study, the impact of development on infrastructure needs is analyzed in terms of quantifiable relationships between various types of development and the demand for specific facilities, based on applicable level-of-service standards. The requirement that exactions be proportional to the impacts of development was clearly stated by the U.S. Supreme Court in the Dolan case and is logically necessary to establish a proper nexus. Proportionality is established through the procedures used to identify development-related facility costs, and in the methods used to calculate impact fees for various types of facilities and categories of development. The demand for facilities is measured in terms of relevant and measurable attributes of development (e.g., a typical housing unit’s average weekday vehicle trips). A sufficient benefit relationship requires that impact fee revenues be segregated from other funds and expended only on the facilities for which the fees were charged. The calculation of impact fees should also assume that they will be expended in a timely manner and the facilities funded by the fees must serve the development paying the fees. However, nothing in the U.S. Constitution or the state enabling Page 15 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 6 legislation requires that facilities funded with fee revenues be available exclusively to development paying the fees. In other words, benefit may extend to a general area including multiple real estate developments. Procedures for the earmarking and expenditure of fee revenues are discussed near the end of this study. All of these procedural as well as substantive issues are intended to ensure that new development benefits from the impact fees they are required to pay. The authority and procedures to implement impact fees is separate from and complementary to the authority to require improvements as part of subdivision or zoning review. Impact fees must increase the carrying capacity of the transportation system. Capacity projects include, but are not limited to the addition of travel lanes, intersection improvements (i.e., turning lanes, signalization or roundabouts) and widening roads (e.g., adding travel lanes, paved shoulders, and bike lanes). Whenever improvements are made to existing roads, non-impact fee funding is typically required to help pay a portion of the cost. Impact Fee Methodologies In contrast to project-level improvements, impact fees fund growth-related infrastructure that will benefit multiple development projects, or the entire jurisdiction (referred to as system improvements). There are three general methods for calculating one-time charges for public facilities needed to accommodate new development. The choice of a particular method depends primarily on the timing of infrastructure construction (past, concurrent, or future) and service characteristics of the facility type being addressed. Each method has advantages and disadvantages in a particular situation, and can be used simultaneously for different cost components. Reduced to its simplest terms, the process of calculating infrastructure costs for new development involves two main steps: (1) determining the cost of development-related capital improvements and (2) allocating those costs equitably to various types of development. In practice, TCEF calculations can become quite complicated because of many variables involved in defining the relationship between development and the need for facilities within the designated service area. The following sections discuss three basic methods. COST RECOVERY (PAST IMPROVEMENTS) The rationale for recoupment, often called cost recovery, is that new development is paying for its share of the useful life and remaining capacity of facilities already built, or land already purchased, from which new growth will benefit. This methodology is often used for utility systems that must provide adequate capacity before new development can take place. INCREMENTAL EXPANSION (CONCURRENT IMPROVEMENTS) The incremental expansion method documents current level-of-service (LOS) standards for each type of public facility, using both quantitative and qualitative measures. New development is only paying its proportionate share for growth-related infrastructure needed to maintain current standards. Revenue will be used to expand or provide additional facilities, as needed to keep pace with new development. Page 16 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 7 PLAN-BASED (FUTURE IMPROVEMENTS) The plan-based method allocates costs for a specified set of improvements to a specified amount of development. Improvements are typically identified in a capital improvements plan and development potential is identified by land use assumptions. There are two options for determining the cost per service unit: 1) total cost of a public facility can be divided by total service units (average cost), or 2) the growth-share of the capital facility cost can be divided by the net increase in service units over the planning timeframe (marginal cost). CREDITS Regardless of the methodology, a consideration of “credits” is integral to a legally defensible impact fee study. There are two types of “credits” with specific characteristics, both of which should be addressed in studies and ordinances. • First, a revenue credit might be necessary if there is a double payment situation and other revenues are contributing to the capital costs of infrastructure to be funded by TCEF revenue. This type of credit is integrated into the TCEF calculation, thus reducing the gross amount. In contrast to some studies that only provide general costs, with credits at the back-end of the analysis, Fort Collins’s 2023 transportation TCEF update uses growth shares to provide an up- front reduction in total costs. Also, the 2023 update provides TCEF revenue projections to verify that new development will fully fund the growth cost of future infrastructure (i.e., only TCEF revenue will pay for growth costs). • Second, a site-specific credit or developer reimbursement might be necessary for dedication of land or construction of system improvements to be funded by TCEF revenue. This type of credit is addressed in the administration and implementation of the TCEF program. Page 17 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 8 TRANSPORTATION CAPITAL EXPANSION FEE – ROADWAY CAPACITY COMPONENT The City of Fort Collins Transportation Capital Expansion Fees (TCEF) are calculated using an incremental approach for roadway capacity improvements. Transportation improvements that provide additional vehicular capacity, account for approximately 91 percent of the growth-related cost in the analysis while active modes represent 9. The roadway capacity component of the TCEF is derived from custom trip generation rates (see Appendix A), trip rate adjustment factors, and the capital cost per vehicle miles of travel (VMT). The latter is a function of average trip length, trip-length weighting factor by type of development, and the growth cost of transportation improvements. Existing Levels of Service for Transportation There are currently 497 lane miles of arterial streets in the City of Fort Collins. The steps to calculate a current level of service for the City’s arterial street network involve calibrating existing development to the system network. To do so, development units by type are multiplied by adjusted vehicle trip ends per development unit. The factors used to calculate the current level of service expressed in vehicle miles of travel (VMT) are discussed below, and shown in Figure 5 after the discussion. VEHICLE MILES OF TRAVEL VMT is a measurement unit equal to one vehicle traveling one mile1. In the aggregate, VMT is the product of vehicle trips multiplied by the average trip length. For the 2023 TCEF update, the average trip length is calibrated to lane miles of existing City arterials within Fort Collins. TRIP GENERATION RATES The 2023 TCEF update is based on average weekday vehicle trip ends (AWVTE). For residential development, trip rates are customized using demographic data for Fort Collins, as documented in Appendix A. For nonresidential development, trip generation rates are from the reference book Trip Generation published by the Institute of Transportation Engineers (ITE 11th Edition, 2021). A vehicle trip end represents a vehicle either entering or exiting a development (as if a traffic counter were placed across a driveway). To calculate transportation fees, trip generation rates require an adjustment factor to avoid double counting each trip at both the origin and destination points. Therefore, the basic trip adjustment factor is 50 percent for industrial, institutional, and office development. As discussed further below, the TCEF methodology includes additional adjustments to make the fees proportionate to the infrastructure demand for particular types of development. 1 Typical VMT calculations for development-specific traffic studies, along with most transportation models of an entire urban area, are derived from traffic counts on particular road segments multiplied by the length of that road segment. For the purpose of the TCEF study, VMT calculations are based on attraction (inbound) trips to development located in the service area, with trip length limited to the road network considered to be system improvements (arterials and collectors). This refinement eliminates pass-through or external- external trips, and travel on roads that are not system improvements (e.g., state highways). Page 18 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 9 ADJUSTMENT FOR PASS-BY TRIPS For retail development, the trip adjustment factor is less than 50 percent because such development attract vehicles as they pass by on arterial roads. For example, when someone stops at a convenience store on the way home from work, the convenience store is not the primary destination. For the average shopping center, ITE indicates that 25 percent of the vehicles that enter are passing by on their way to some other primary destination. The remaining 75 percent of attraction trips have the commercial site as their primary destination. Because attraction trips are half of all trips, the trip adjustment factor is 75 percent multiplied by 50 percent, or approximately 38 percent of the trip ends. TRIP LENGTH WEIGHTING FACTOR BY TYPE OF LAND USE The transportation fee methodology includes a percentage adjustment, or weighting factor, to account for trip length variation by type of land use. TischlerBise derived the weighting factors using household survey results provided by North Front Range Metropolitan Planning Organization (NRFMPO, 2010). As shown in Figure 3, trips associated with residential development are approximately 110 percent of the average trip length. Conversely, trips associated with commercial development (i.e., retail and restaurants) are approximately 66 percent of the average trip length while other nonresidential development typically accounts for trips that are 100 percent of the average for all trips. Figure 3. Average Trip Length by Trip Purpose in North Front Range Type of Development Trip Purpose Trips Average Miles Per Trip Weighting Factor 1-Residential All other at home activities 4,920 5.30 3.469 1-Residential Dropped off passenger 566 4.36 0.328 1-Residential Picked up passenger 557 3.47 0.257 1-Residential Indoor recreation/entertainment 516 4.80 0.330 1-Residential Change transportation mode 354 9.37 0.441 1-Residential Outdoor recreation/entertainment 254 6.60 0.223 1-Residential Service private vehicle 160 5.44 0.116 1-Residential Working at home 127 4.06 0.069 1-Residential Loop Trip and Other travel related 55 2.71 0.020 1-Residential School at home 7 2.03 0.002 1-Residential Total 7,516 5.255 1.10 2-Retail/Restaurant Routine shopping 1,236 2.76 1.571 2-Retail/Restaurant Eat meal outside home 577 3.10 0.824 2-Retail/Restaurant Other 180 5.37 0.445 2-Retail/Restaurant Major purchase / specialty item 91 6.15 0.258 2-Retail/Restaurant Drive through 88 1.80 0.073 2-Retail/Restaurant Total 2,172 3.170 0.66 3-Other Nonresidential Attend a class 790 2.59 0.756 3-Other Nonresidential Work/business related 618 8.48 1.937 3-Other Nonresidential Errands (bank, dry cleaning, etc.)475 2.34 0.411 3-Other Nonresidential Personal business (attorney, accountant)241 5.50 0.490 3-Other Nonresidential Health care 224 6.39 0.529 3-Other Nonresidential Civic/religious 196 5.13 0.372 3-Other Nonresidential Other activities at school 92 3.72 0.126 3-Other Nonresidential All other activities at work 70 5.82 0.151 3-Other Nonresidential Total 2,706 4.771 1.00 TOTAL 12,394 4.784 Data Source: Table R-27, NFRMPO Household Survey, 2010. Analysis excludes "Visit friends/relatives" because the average distance of 22.43 miles traveled is an outlier, approximately four times the overall average. "Work/job" travel was also excluded because trip origns and destinations can not be allocated between residential and type of nonresidential development. Page 19 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 10 LANE CAPACITY The TCEF roadway capacity component is based on established daily per lane capacities for arterial roads. According to City staff, arterial roads were established to have a daily per lane capacity of 7,700, assuming 12 feet travel lanes, with no additional shoulder width, in an urban area. AVERAGE VEHICLE TRIP LENGTH The City of Fort Collins recently completed a travel diary study which surveyed residents on their daily travel including modes, distance, and purpose. Based on the results of the study, the average vehicle trip length in Fort Collins is 4.90 miles. ORIGIN & DESTINATION TRIP ANALYSIS Lastly, there is a demand on Fort Collins transportation network that is not associated with any development within city limits. Specifically, there are vehicle trips that originate and end outside of Fort Collins. The nature of these trips means there is a demand that is not Fort Collins growth-related thus not eligible for TCEF funding. Therefore, TischlerBise partnered with transportation engineers at Felsburg Holt & Ullevig to identify the thru-trips (external – external) in Fort Collins. Based on analysis of the Fort Collins travel demand model, seven percent of trips were identified as external – external. As a result, a seven percent reduction is included in the demand calculation. Figure 4. Origin & Destination Trip Analysis Development Prototypes and Projected Vehicle Miles of Travel The relationship between the amount of development within Fort Collins and vehicle miles of travel (VMT) is documented in Figure 5. In the table below DU means dwelling unit; KSF means 1,000 square feet of nonresidential development; Institute of Transportation Engineers is abbreviated ITE; VTE means vehicle trip ends. Trip generation rates by bedroom range are documented in Appendix A – Land Use Assumptions. Projected development over the next ten years and the corresponding need for additional lane miles is shown in the lower section of Figure 5. Fort Collins has a current infrastructure standard of 1.62 arterial lane miles per 10,000 VMT. Based on the detailed demand factors and projected growth, VMT is projected to increase from 3.07 million to 3.55 million over the next ten years (or 13 percent). To accommodate projected development over the next ten years, Fort Collins will need 61.9 additional lane miles of complete streets to maintain current levels of service. Origin/Destination Internal External Internal 50% 15% External 28% 7% Source: Felsburg Holt & Ullevig analysis of Fort Collins travel demand model Page 20 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 11 Figure 5. Projected VMT Increase to Development within Fort Collins Development Weekday Development Primary Trip Trip Length Type VTE Unit Adjustment Wtg Factor Residential 0-1 Bedroom 4.26 DU 58%1.10 R1 Residential 2 Bedrooms 6.34 DU 58%1.10 R2 Residential 3 Bedrooms 8.80 DU 58%1.10 R3 Residential 4+ Bedrooms 10.56 DU 58%1.10 R4 Commercial 37.01 KSF 38%0.66 NR1 Office & Other Services 10.84 KSF 50%1.00 NR2 Industrial 4.87 KSF 50%1.00 NR3 Avg Trip Length (miles) [1]4.90 Vehicle Capacity Per Lane 7,700 Base Year 1 2 3 4 5 10 10-Year 2023 2024 2025 2026 2027 2028 2033 Increase Residential 0-1 Bedroom 6,212 6,320 6,429 6,550 6,671 6,792 7,524 1,312 Residential 2 Bedrooms 17,883 18,195 18,507 18,856 19,205 19,554 21,660 3,777 Residential 3 Bedrooms 24,688 25,118 25,549 26,030 26,512 26,993 29,901 5,213 Residential 4+ Bedrooms 23,807 24,222 24,637 25,102 25,566 26,031 28,835 5,028 Commercial KSF 10,024 10,060 10,097 10,135 10,173 10,211 10,393 370 Office & Other Services KSF 21,999 22,215 22,430 22,627 22,823 23,019 23,950 1,951 Industrial KSF 10,944 10,979 11,014 11,049 11,083 11,117 11,378 434 0-1 Bedroom Trips 15,349 15,615 15,885 16,184 16,483 16,782 18,590 3,242 2 Bedroom Trips 65,759 66,907 68,054 69,337 70,621 71,904 79,648 13,889 3 Bedroom Trips 126,008 128,202 130,402 132,857 135,317 137,772 152,615 26,607 4+ Bedroom Trips 145,813 148,355 150,897 153,745 156,587 159,435 176,609 30,795 Commercial Trips 140,970 141,485 142,000 142,535 143,071 143,607 146,169 5,199 Office & Other Services Trips 119,232 120,403 121,573 122,637 123,700 124,764 129,808 10,576 Industrial Trips 26,650 26,735 26,820 26,904 26,987 27,071 27,706 1,057 Total Inbound Vehicle Trips 639,780 647,702 655,631 664,199 672,766 681,334 731,145 91,365 Vehicle Miles of Travel (VMT) 3,073,002 3,113,973 3,154,985 3,199,451 3,243,911 3,288,376 3,548,550 475,548 Arterial Lane Miles 497 502.3 507.6 513.4 519.2 525.0 558.9 61.9 Ten-Year VMT Increase =>13% [1] Source: Fort Collins Travel Diary Study (2022) Fort Collins Travel Model 5-Year Increment Page 21 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 12 Capital Cost per Vehicle Miles of Travel As indicated by the travel demand model above, there is a need for 61.9 new lane miles to continue providing the current level of service to projected future demand. Furthermore, seven percent of the demand on the Fort Collins transportation network is from external – external trips. As a result, 57.6 miles is attributed to future growth in Fort Collins (61.9 lane miles x [1 - 0.07] = 57.6 lane miles). Additionally, Fort Collins staff estimates the construction cost of a new lane mile being $2,000,500. By combining the projected need in lane miles and cost per lane mile results in a growth-related capital cost per $115.5 million. Over the next ten years, there is a projected increase of 475,548 VMT. Comparing the growth-related capital cost and growth in VMT, the study finds a capital cost of $242.85 per VMT ($115,488,00 / 475,548 VMT = $242.85 per VMT, rounded). Figure 6. Capital Cost per VMT Revenue Credit Evaluation A credit for other revenues is only necessary if there is potential double payment for system improvements. In Fort Collins, Road & Bridge Fund property taxes and gas tax revenue will be used for maintenance of existing facilities, correcting existing deficiencies, and for capital projects that are not TCEF system improvements. As shown later in Figure 8, TCEF revenue over the next ten years mitigates the growth-related share of the roadway capacity needs. Thus, there is no potential double payment from other revenues to fund the growth cost of roadway capacity projects. Importantly, seven percent of the future need is attributed to external – external trips which represents $8.6 million. This is not attributed to Fort Collins development, thus, not eligible for TCEF funding. Fort Collins will have to identify other revenues (i.e., grants) to support this external cost. 10-Year Need in Roadway Lane Miles 61.9 Lane Miles Attributed to External - External Trips (7%)4.3 Fort Collins Growth-Related Lane Miles 57.6 Construction Cost per Lane Mile $2,005,000 Fort Collins Growth-Related Construction Cost $115,488,000 10-Year Increase in Vehicle Miles Traveled (VMT)475,548 Capital Cost per VMT $242.85 Page 22 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 13 Input Variables for TCEF – Roadway Capacity Component A summary of inputs for the roadway capacity component of the TCEF program are detailed in Figure 7. Residential fees are based on the square footage of the dwelling unit while there are three nonresidential development types in the fee schedule (consistent with the current Fort Collins TCEF schedule). The roadway capacity TCEF is found by multiply the VMT demand factor and the growth cost per VMT. For example, the fee for a housing unit over 2,200 square feet is $8,191 (33.73 VMT per unit x $242.85 per VMT = $8,191 per unit). The fees represent the highest supportable amount for each type of applicable land use and represents new growth’s fair share of the cost for capital facilities. The City may adopt fees that are less than the amounts shown. However, a reduction in TCEF revenue will necessitate an increase in other revenues, a decrease in planned capital expenditures, and/or a decrease in levels of service. Figure 7. Maximum Supportable TCEF – Roadway Capacity Component Roadway Expansion $242.85 Gross Total $242.85 Net Total $242.85 up to 700 11.79 $2,863 701 to 1,200 20.54 $4,988 1,201 to 1,700 26.20 $6,363 1,701 to 2,200 30.39 $7,380 over 2,200 33.73 $8,191 Commercial 45.48 $11,045 Office & Other Services 26.56 $6,450 Industrial 11.93 $2,897 Development Type VMT per KSF Roadway Capacity Fee Nonresidential (per 1,000 square feet) Square Feet of Finished Living Space VMT per Unit Roadway Capacity Fee Fee Component Cost per VMT Residential (per dwelling unit) Page 23 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 14 Revenue Projection from Maximum Supportable Fee Amounts This section summarizes the potential cash flow to the City of Fort Collin if the TCEF is implemented at the maximum supportable amounts. The cash flow projections are based on the assumptions detailed in this chapter and the development projections discussed in Appendix A – Land Use Assumptions. At the top of Figure 8, the cost of growth over the next ten years is listed. The summary provides an indication of the TCEF revenue generated by new development. The fee for the average sized single family and multifamily units are used in the calculations. Shown at the bottom of the figure, the maximum supportable TCEF is estimated to generate $111.3 million in revenue while there is a growth- related cost of $115.5 million, offsetting about 97 percent of the growth-related costs. The remaining funding gap represents the external – external share of future demand on the transportation network. Figure 8. Projected Revenue from Maximum Supportable TCEF – Roadway Capacity Component Infrastructure Costs for Transportation Facilities Total Cost Growth Cost Roadway Capacity $124,109,500 $115,488,000 Total Expenditures $124,109,500 $115,488,000 Projected Development Impact Fee Revenue Single Family Multifamily Commercial Office Industrial $7,380 $4,988 $11,045 $6,450 $2,897 per unit per unit per KSF per KSF per KSF Year Housing Units Housing Units KSF KSF KSF Base 2023 47,183 25,406 10,024 21,999 10,944 1 2024 47,769 26,087 10,060 22,215 10,979 2 2025 48,354 26,768 10,097 22,430 11,014 3 2026 49,009 27,529 10,135 22,627 11,049 4 2027 49,663 28,291 10,173 22,823 11,083 5 2028 50,318 29,052 10,211 23,019 11,117 6 2029 50,972 29,813 10,249 23,215 11,152 7 2030 51,627 30,575 10,287 23,412 11,186 8 2031 52,508 31,599 10,323 23,591 11,250 9 2032 53,389 32,624 10,358 23,770 11,314 10 2033 54,271 33,649 10,393 23,950 11,378 Ten-Year Increase 7,087 8,243 370 1,951 434 Projected Revenue $52,304,559 $41,115,500 $4,083,218 $12,585,770 $1,257,186 Projected Revenue => $111,346,000 Total Expenditures => $124,109,000 Non-Impact Fee Funding => $12,763,000 Page 24 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 15 TRANSPORTATION CAPITAL EXPANSION FEE – ACTIVE MODES COMPONENT The City of Fort Collins TCEF are calculated using a plan-based approach for active mode expansions. Transportation improvements that provide additional vehicular capacity, account for approximately 91 percent of the growth-related cost in the analysis while active modes represent 9. The active modes component of the TCEF is based on the demand from residential and nonresidential development and allocated based on the percent of commuters who walk or bike to work. Person per housing unit and employee density factors are then applied to find the proportionate demand from the development types. Active Modes Capital Plan The 2022 Active Modes Plan is the guiding document for the capital expansion plans for bike and pedestrian infrastructure in Fort Collins. The Plan identified High, Medium, and Low priority/readiness projects needed in the coming future to address existing demand and future demand from development. Since the TCEF study examines infrastructure need over the next ten years, City staff has advised that the high and medium project lists are a realistic plan over that planning horizon. Between the two lists there are 200 projects ranging from small spot treatments addressing signage and side paths to extensive separated bike lane expansion projects. Pages from the Plan listing the projects are provided in the appendix of this report.2 Overall, the capital plans for active mode expansion totals $87,554,000 over the next ten years. Active Modes Capital Plan Cost Analysis Based on the projected growth in demand on the Fort Collins transportation network, 13 percent ($11.4 million) of the total capital cost of the Active Modes Plan is attributed to development over the next ten years. As shown in Figure 9, the cost is allocated to residential and nonresidential demand based on the data from the Travel Diary Study Report (2022). From the survey, 22 percent of commuters in Fort Collins use active modes to travel to work. This factor is used to allocate the active modes capital cost to nonresidential demand while the remaining 78 percent is allocated to residential demand. The allocated costs are compared to the 10-year projected increase in population and jobs to find capital cost per unit factors. For example, the capital cost per person is $275.18 ($11,382,000 x 78 percent / 32,262 population increase = $275.18 per person). 2 The Active Modes Plan can also be found on the City’s website at https://www.fcgov.com/fcmoves/active- modes-plan. Page 25 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 16 Figure 9. Active Modes Cost Analysis Revenue Credit Evaluation A credit for other revenues is only necessary if there is potential double payment for system improvements. In Fort Collins, there are general revenues and grants for maintenance of existing facilities and addressing existing demand. However, there are no other revenues available to address future demand on active mode infrastructure. As shown later in Figure 11, TCEF revenue over the next ten years mitigates the growth-related share of the active modes plan. Thus, there is no potential double payment from other revenues to fund the growth cost of active modes projects. High and Medium Priority Projects $87,554,000 Growth-Share of Project List 13% Growth-Related Cost of Active Modes Plan $11,382,020 Residential Nonresidential Proportionate Share [1] 78.0% 22.0% Attributed Capital Cost $8,877,976 $2,504,044 10-Year Population/Jobs Increase 32,262 7,580 Capital Cost per Person/Job $275.18 $330.37 [1] Source: Fort Collins Travel Diary Study Report (2022) Page 26 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 17 Input Variables for TCEF – Active Modes Component A summary of inputs for the active modes component of the TCEF program are detailed in Figure 10. Residential fees are based on the square footage of the dwelling unit while there are three nonresidential development types in the fee schedule (consistent with the current Fort Collins TCEF schedule). The active modes TCEF is found by multiply the person/job demand factor and the growth cost per person/job. For example, the fee for a housing unit over 2,200 square feet is $809 (2.94 persons per unit x $275.18 per person = $809 per unit). The fees represent the highest supportable amount for each type of applicable land use and represents new growth’s fair share of the cost for capital facilities. The City may adopt fees that are less than the amounts shown. However, a reduction in TCEF revenue will necessitate an increase in other revenues, a decrease in planned capital expenditures, and/or a decrease in levels of service. Figure 10. Maximum Supportable TCEF – Active Modes Component Fee Component Cost per Person Cost per Job Active Modes $275.18 $330.37 Gross Total $275.18 $330.37 Net Total $275.18 $330.37 up to 700 0.99 $272 701 to 1,200 1.77 $487 1,201 to 1,700 2.27 $625 1,701 to 2,200 2.64 $726 over 2,200 2.94 $809 Commercial 2.12 $702 Office & Other Services 3.26 $1,075 Industrial 2.86 $944 Residential (per dwelling unit) Development Type Jobs per KSF Active Modes Fee Nonresidential (per 1,000 square feet) Square Feet of Finished Living Space Persons per Unit Active Modes Fee Page 27 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 18 Revenue Projection from Maximum Supportable Fee Amounts This section summarizes the potential cash flow to the City of Fort Collins if the TCEF is implemented at the maximum supportable amounts. The cash flow projections are based on the assumptions detailed in this chapter and the development projections discussed in Appendix A – Land Use Assumptions. At the top of Figure 11, the cost of growth over the next ten years is listed. The summary provides an indication of the TCEF revenue generated by new development. The fee for the average sized single family and multifamily units are used in the calculations. Shown at the bottom of the figure, the maximum supportable TCEF is estimated to generate $11.9 million in revenue while there is a growth- related cost of $11.4 million, offsetting all growth-related costs. The remaining funding gap represents the existing demand in Fort Collins and will be funded through other revenues. Figure 11. Projected Revenue from Maximum Supportable TCEF – Active Modes Component Total Cost Growth Cost Active Modes $87,554,000 $11,382,020 Total Expenditures $87,554,000 $11,382,020 Projected Development Impact Fee Revenue Single Family Multifamily Commercial Office Industrial $726 $487 $702 $1,075 $944 per unit per unit per KSF per KSF per KSF Year Housing Units Housing Units KSF KSF KSF Base 2023 47,183 25,406 10,024 21,999 10,944 1 2024 47,769 26,087 10,060 22,215 10,979 2 2025 48,354 26,768 10,097 22,430 11,014 3 2026 49,009 27,529 10,135 22,627 11,049 4 2027 49,663 28,291 10,173 22,823 11,083 5 2028 50,318 29,052 10,211 23,019 11,117 6 2029 50,972 29,813 10,249 23,215 11,152 7 2030 51,627 30,575 10,287 23,412 11,186 8 2031 52,508 31,599 10,323 23,591 11,250 9 2032 53,389 32,624 10,358 23,770 11,314 10 2033 54,271 33,649 10,393 23,950 11,378 Ten-Year Increase 7,087 8,243 370 1,951 434 Projected Revenue $5,145,408 $4,014,284 $259,522 $2,097,628 $409,660 Projected Revenue => $11,927,000 Total Expenditures => $87,554,000 Non-Impact Fee Funding => $75,627,000 Page 28 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 19 IMPLEMENTATION AND ADMINISTRATION Development impact fees (in this case TCEF) should be periodically evaluated and updated to reflect recent data. Fort Collins has consistently annually updated the TCEF schedule based on local inflation data. If cost estimates or demand indicators change significantly, the City should redo the fee calculations. Colorado’s enabling legislation allows local governments to “waive an impact fee or other similar development charge on the development of low- or moderate-income housing, or affordable employee housing, as defined by the local government.” Credits and Reimbursements A general requirement that is common to impact fee methodologies is the evaluation of credits. A revenue credit may be necessary to avoid potential double payment situations arising from one-time impact fees plus on-going payment of other revenues that may also fund growth-related capital improvements. The determination of revenue credits is dependent upon the impact fee methodology used in the cost analysis and local government policies. Policies and procedures related to site-specific credits should be addressed in the resolution or ordinance that establishes the impact fees. Project-level improvements, required as part of the development approval process, are not eligible for credits against impact fees. If a developer constructs a system improvement included in the fee calculations, it will be necessary to either reimburse the developer or provide a credit against the fees due from that particular development. The latter option is more difficult to administer because it creates unique fees for specific geographic areas. Based on national experience, TischlerBise typically recommends reimbursement agreements with developers that construct system improvements. The reimbursement agreement should be limited to a payback period of no more than ten years and the City should not pay interest on the outstanding balance. The developer must provide sufficient documentation of the actual cost incurred for the system improvement. The City should only agree to pay the lesser of the actual construction cost or the estimated cost used in the impact fee analysis. If the City pays more than the cost used in the fee analysis, there will be insufficient fee revenue for other capital improvements. Reimbursement agreements should only obligate the City to reimburse developers annually according to actual fee collections from the applicable Benefit District. Citywide Service Area The TCEF service area is defined as the entire incorporated area within Fort Collins. The infrastructure funded through the TCEF is citywide benefiting and can be attributed to demand throughout the city. Expenditure Guidelines Fort Collins will distinguish system improvements (funded by transportation capital expansion fees) from project-level improvements, such as local streets within a residential subdivision. TischlerBise Page 29 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 20 recommends limiting transportation fee expenditures to arterials and collectors, and should be consistent with Fort Collins City Code. System improvements that are eligible for transportation fee funding could include: • Constructing an arterial or collector street. • A carrying-capacity enhancement to existing arterials or collectors, such reconstruction to add greater street width, including additional vehicular travel lanes, bike lanes, and/or shoulders. • Adding turn lanes, traffic signals, or roundabouts at the intersection of a State Highway with a City arterial or collector, or a City arterial with another City arterial or collector. Development Categories Proposed transportation fees for residential development are by square feet of finished living space, excluding unfinished basement, attic, and garage floor area. Appendix A provides further documentation of demographic data by size threshold. The three general nonresidential development categories in the proposed TCEF schedule can be used for all new construction within the Service Area. Nonresidential development categories represent general groups of land uses that share similar average weekday vehicle trip generation rates, as documented in Appendix A. • “Industrial” includes the processing or production of goods, along with warehousing, transportation, communications, and utilities. • “Commercial” includes retail development and eating/drinking places, along with entertainment uses often located in a shopping center (i.e., movie theater). • “Office & Other Services” includes offices, health care and personal services, business services (i.e., banks) and lodging. Public and quasi-public buildings that provide educational, social assistance, or religious services are also included in this category. An applicant may submit an independent study to document unique demand indicators for a particular development. The independent study must be prepared by a professional engineer or certified planner and use the same type of input variables as those in this transportation capital expansion fee update. For residential development, the fees are based on average weekday vehicle trip ends per housing unit. For nonresidential development, the fees are based on average weekday vehicle trips ends per 1,000 square feet of floor area. The independent fee study will be reviewed by City staff and can be accepted as the basis for a unique fee calculation. If staff determines the independent fee study is not reasonable, the applicant may appeal the administrative decision to City elected officials for their consideration. Page 30 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 21 APPENDIX A – LAND USE ASSUMPTIONS Development-related capital expansion fees often use per capita standards and persons per housing unit or persons per household to derive proportionate share fee amounts. Housing types have varying household sizes and, consequently, a varying demand on City infrastructure and services. Thus, it is important to differentiate between housing types and size. When persons per housing unit (PPHU) is used in the development impact fee calculations, infrastructure standards are derived using year-round population. In contrast, when persons per household (PPHH) is used in the development impact fee calculations, the fee methodology assumes all housing units will be occupied, thus requiring seasonal or peak population to be used when deriving infrastructure standards. Thus, TischlerBise recommends that fees for residential development in Fort Collins be imposed according to persons per housing unit. Based on housing characteristics, TischlerBise recommends using two housing unit categories for the TCEF study: (1) Single Family and (2) Multifamily. Each housing type has different characteristics which results in a different demand on City facilities and services. Figure 12 shows the US Census American Community Survey 2021 5-Year Estimates data for the City of Fort Collins. Single family units have a household size of 2.54 persons and multifamily units have a household size of 1.73 persons Figure 12. Fort Collins Persons per Housing Unit Base Year Population and Housing Units The City of Fort Collins has provided its own 2023 base year household population estimate which is what will be used to calculate base year housing units. Figure 13. Base Year Household Population In 2023, there are an estimated 72,590 housing units in Fort Collins. The housing mix and PPHU factors in Figure 12 are applied to the household population to estimate single family and multifamily units. Overall, single family housing is 65 percent of the total, while multifamily is 35 percent. House-Persons per Housing Persons per Housing Vacancy holds Household Units Housing Unit Mix Rate Single Family 115,988 44,342 2.62 45,625 2.54 65%3% Multifamily 42,457 22,862 1.86 24,496 1.73 35%7% Subtotal 158,445 67,204 2.36 70,121 2.26 4% Group Quarters 8,197 TOTAL 166,642 Source: U.S. Census Bureau, 2021 5-Year Estimate American Community Survey Single unit includes detached and attached (i.e. townhouse) and mobile homes Units in Structure Persons Base Year Fort Collins, CO 2023 Household Population [1]164,053 [1] Source: City of Fort Collins Population Estimate Page 31 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 22 Figure 14. Base Year Housing Units However, recent trends over the last three years show multifamily housing growing at a greater rate than single family at 54 percent vs 46 percent of total housing growth respectively as shown in Figure 15. This is the trend that will be used for housing and population growth projections. Figure 15. Building Permit History In 2023, the household population in Fort Collins is estimated to be 164,053. To estimate the total residents, the group quarters population of 10,392 is applied to the household population. As a result, the 2023 population is estimated at 174,445 residents and will be used for housing and population projections. Figure 16. Base Year Population 2023 Fort Collins, CO Housing Units [1] Single Family 47,183 Multifamily 25,406 Total 72,590 [1] Source: City of Fort Collins Population Estimate; PPHU Factors 2020-2023 Fort Collins, CO Building Permits Single Family 1,104 46% Multifamily 1,284 54% Total 2,388 Source: City of Fort Collins Percent of Total 2023 2023 2023 Fort Collins, CO Household Population Group Quarters Population Total Population Population 164,053 10,392 174,445 Source: City of Fort Collins Population Estimate Page 32 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 23 Population and Housing Unit Projections From the 2023 base year housing unit totals, there is a projected increase of 21 percent in housing stock over the next ten years. Following the trend that there is more multifamily development (54 percent) than single family development (46 percent), there is an estima ted 8,243 multifamily units and 7,087 single family units projected. Population growth is assumed to continue with housing development based on the PPHU factors by housing type. As a result, there is a projected increase of 32,262 residents over the next ten years. This is an 18.5 percent increase from the base year, slightly lower than housing development at 21 percent since there is a shift in multifamily deve lopment and smaller household sizes. Figure 17. Residential Development Projections Base Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Population [1] 174,445 177,109 179,774 182,753 185,733 188,713 191,693 194,673 198,684 202,696 206,707 32,262 1.5% 1.5% 1.7% 1.6% 1.6% 1.6% 1.6% 2.1% 2.0% 2.0% 18.5% Housing Units [2] Single Family 47,183 47,769 48,354 49,009 49,663 50,318 50,972 51,627 52,508 53,389 54,271 7,087 Multifamily 25,406 26,087 26,768 27,529 28,291 29,052 29,813 30,575 31,599 32,624 33,649 8,243 Total 72,590 73,856 75,122 76,538 77,954 79,370 80,786 82,202 84,108 86,014 87,920 15,330 [2] Source: Housing growth is projected based on housing development and PPHU factors [1] Source: City of Fort Collins Population Estimate; Population growth is projected based on housing development and PPHU factors by type of home Total Increase Percent Increase City of Fort Collins, CO Page 33 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 24 Current Employment and Nonresidential Floor Area The impact fee study will include nonresidential development as well. Job estimates are from North Front Range MPO Traffic TAZ database. The model forecasts employment growth for the entire city from 2020 to 2045 in five-year increments. To find the total employment in the base year, 2023, a straight- line approach from 2020 to 2025 was used. Listed in Figure 18, 107,677 jobs are estimated in the City of Fort Collins. Nearly half the employment is in the office industry. However, retail, industrial, and institutional industries have a significant presence as well. Figure 18. Base Year Employment by Industry The base year nonresidential floor area for the industry sectors is calculated with the Institution of Transportation Engineers’ (ITE) square feet per employee averages, Figure 19. For industrial the Light Industrial factors are used; for institutional the Hospital factors are used; for retail the Shopping Center factors are used; for office the General Office factors are used. Figure 19. Institute of Transportation Engineers (ITE) Employment Density Factors By combining the base year job totals and the ITE square feet per employee factors, the nonresidential floor area is calculated in Figure 20. There is an estimated total of 43 million square feet of nonresidential floor area in Fort Collins. The office and industrial industries account for almost two - thirds of the total floor area at 37 percent and 25 percent respectively, while retail accounts for 23 percent and institutional accounts for 14 percent of the total. Base Year 2023 Industrial 17,181 16% Institutional 17,433 16% Retail 21,282 20% Office 51,782 48% Total Jobs 107,677 100% Employment Industries Source: North Front Range MPO TAZ employment database Percent of Total Employment ITE Demand Emp Per Sq Ft Industry Code Land Use Unit Dmd Unit Per Emp Industrial 110 Light Industrial 1,000 Sq Ft 1.57 637 Institutional 610 Hospital 1,000 Sq Ft 2.86 350 Retail 820 Shopping Center 1,000 Sq Ft 2.12 471 Office 710 General Office 1,000 Sq Ft 3.26 307 Source: Trip Generation , Institute of Transportation Engineers, 11th Edition (2021) Page 34 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 25 Figure 20. Base Year Nonresidential Floor Area Base Year Sq. Ft.Base Year Jobs [1]per Job [2]Floor Area (Sq. Ft.) Industrial 17,181 637 10,944,355 Institutional 17,433 350 6,101,592 Retail 21,282 471 10,023,588 Office 51,782 307 15,896,963 Total 107,677 42,966,498 [1] Source: North Front Range MPO TAZ employment database Employment Industries [2] Source: Trip Generation, Institute of Transportation Engineers, 11th Edition (2021) Page 35 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 26 Employment and Nonresidential Floor Area Projections Based on the TAZ employment database, over the ten-year projection period, it is estimated that there will be an increase of 7,580 jobs. The majority of the increase comes from the office sector (58 percent); however, the institutional sector (23 percent) has a significant impact as well. The nonresidential floor area projections are calculated by applying the ITE square feet per employee factors to the job growth. In the next ten years, the nonresidential floor area is projected to increase by 2.8 million square feet, a 6 percent increase from the base year. The office and institutional sectors have the greatest increase. Figure 21. Employment and Nonresidential Floor Area Projections Base Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Jobs [1] Industrial 17,181 17,236 17,291 17,345 17,399 17,453 17,507 17,560 17,661 17,762 17,862 681 Institutional 17,433 17,621 17,809 17,980 18,152 18,323 18,495 18,666 18,832 18,999 19,165 1,732 Retail 21,282 21,359 21,437 21,518 21,599 21,680 21,760 21,841 21,916 21,991 22,066 785 Office 51,782 52,271 52,760 53,204 53,648 54,091 54,535 54,979 55,374 55,768 56,163 4,381 Total Jobs 107,677 108,487 109,297 110,047 110,797 111,547 112,297 113,047 113,784 114,520 115,257 7,580 Industrial 10,944 10,979 11,014 11,049 11,083 11,117 11,152 11,186 11,250 11,314 11,378 434 Institutional 6,102 6,167 6,233 6,293 6,353 6,413 6,473 6,533 6,591 6,650 6,708 606 Retail 10,024 10,060 10,097 10,135 10,173 10,211 10,249 10,287 10,323 10,358 10,393 370 Office 15,897 16,047 16,197 16,334 16,470 16,606 16,742 16,879 17,000 17,121 17,242 1,345 Total Floor Area 42,966 43,254 43,542 43,810 44,079 44,348 44,616 44,885 45,164 45,443 45,721 2,755 City of Fort Collins, CO Total Increase [2] Source: Trip Generation, Institute of Transportation Engineers, 11th Edition (2021) [1] Source: North Front Range MPO TAZ employment database Nonresidential Floor Area (1,000 square feet) [2] Page 36 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 27 Vehicle Trip Generation RESIDENTIAL VEHICLE TRIPS BY HOUSING TYPE A customized trip rate is calculated for the single family and multifamily units in Fort Collins. In Figure 22, the most recent data from the US Census American Community Survey is inputted into equations provided by the ITE to calculate the trip ends per housing unit f actor. A single family unit is estimated to generate 12.70 trip ends and a multifamily unit is estimated to generate 6.00 trip ends on an ave rage weekday. Figure 22. Customized Residential Trip End Rates by Housing Type Owner-occupied 74,579 33,116 2,493 35,609 2.09 Renter-occupied 55,237 11,226 20,369 31,595 1.75 Total 129,816 44,342 22,862 67,204 1.93 Housing Units (3) => 45,625 24,496 70,121 Persons per Housing Unit => 2.54 1.73 2.26 Persons in Trip Vehicles by Trip Average National Trip Difference Households (4) Ends (5) Type of Unit Ends (6) Trip Ends Ends per Unit (7) from ITE Single Family 115,988 323,073 88,984 832,918 577,996 12.70 9.43 35% Multifamily 42,457 97,146 40,832 194,723 145,934 6.00 4.54 32% Total 158,445 420,219 129,816 1,027,640 723,930 10.80 4. Total population in households from Table B25033, 2020 American Community Survey 5-Year Estimates. 7. Trip Generation, Institute of Transportation Engineers, 11th Edition (2021). 2. Households by tenure and units in structure from Table B25032, 2020 American Community Survey 5-Year Estimates. 5. Vehicle trips ends based on persons using formulas from Trip Generation (ITE 2021). For single-family housing (ITE 210), the fitted curve equation is EXP(0.89*LN(persons)+1.72). To approximate the average population of the ITE studies, persons were divided by 12 and the equation result multiplied by 558. For multi-family housing (ITE 221), the fitted curve equation is (2.29*persons)-64.48 (ITE 2017). 6. Vehicle trip ends based on vehicles available using formulas from Trip Generation (ITE 2021). For single-family housing (ITE 210), the fitted curve equation is EXP(0.92*LN(vehicles)+2.68). To approximate the average number of vehicles in the ITE studies, vehicles available were divided by 21 and the equation result multiplied by 256. For multi-family housing (ITE 221), the fitted curve equation is (4.77*vehicles)-46.46 (ITE 2021). Households by Structure Type (2) Single Family 1. Vehicles available by tenure from Table B25046, 2020 American Community Survey 5-Year Estimates. 3. Housing units from Table B25024, 2020 American Community Survey 5-Year Estimates. Tenure by Units in Structure Vehicles Available (2)Multifamily Total Vehicles per HH by Housing Type Local Trip Ends per Unit Page 37 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 28 RESIDENTIAL VEHICLE TRIPS ADJUSTMENT FACTORS A vehicle trip end is the out-bound or in-bound leg of a vehicle trip. As a result, so to not double count trips, a standard 50 percent adjustment is applied to trip ends to calculate a vehicle trip. For example, the out-bound trip from a person’s home to work is attributed to the housing unit and the trip from work back home is attributed to the employer. However, an additional adjustment is necessary to capture City residents’ work bound trips that are outside of the city. The trip adjustment factor includes two components. According to the National Household Travel Survey (2009), home-based work trips are typically 31 percent of out-bound trips (which are 50 percent of all trip ends). Also, utilizing the most recent data from the Census Bureau's web application "OnTheMap”, 51 percent of Fort Collins workers travel outside the city for work. In combination, these factors account for 8 percent of additional production trips (0.31 x 0.50 x 0.51 = 0.08). Shown in Figure 23, the total adjustment factor for residential housing units includes attraction trips (50 percent of trip ends) plus the journey-to-work commuting adjustment (8 percent of production trips) for a total of 58 percent. Figure 23. Residential Trip Adjustment Factor for Commuters NONRESIDENTIAL VEHICLE TRIPS Vehicle trip generation for nonresidential land uses are calculated by using ITE’s average daily trip end rates and adjustment factors found in their recently published 11th edition of Trip Generation. To estimate the trip generation in Fort Colins, the weekday trip end per 1,000 square feet factors highlighted in Figure 24 are used. Figure 24. Institute of Transportation Engineers Nonresidential Factors For nonresidential land uses, the standard 50 percent adjustment is applied to office, industrial, and institutional. A lower vehicle trip adjustment factor is used for retail because this type of development attracts vehicles as they pass-by on arterial and collector roads. For example, when someone stops at a convenience store on their way home from work, the convenience store is not their primary destination. Employed Fort Collins Residents (2019) 73,469 Residents Working in the City (2019) 36,223 Residents Commuting Outside of the City for Work 37,246 Percent Commuting Out of the City 51% Additional Production Trips 8% Standard Trip Adjustment Factor 50% Residential Trip Adjustment Factor 58% Source: U.S. Census, OnTheMap Application, 2019 Employment ITE Demand Wkdy Trip Ends Wkdy Trip Ends Industry Code Land Use Unit Per Dmd Unit Per Employee Industrial 110 Light Industrial 1,000 Sq Ft 4.87 3.10 Institutional 610 Hospital 1,000 Sq Ft 10.77 3.77 Retail 820 Shopping Center 1,000 Sq Ft 37.01 17.42 Office 710 General Office 1,000 Sq Ft 10.84 3.33 Source: Trip Generation , Institute of Transportation Engineers, 11th Edition (2021) Page 38 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 29 In Figure 25, the Institute for Transportation Engineers’ land use code, daily vehicle trip end rate, and trip adjustment factor is listed for each land use. Figure 25. Daily Vehicle Trip Factors Residential (per housing unit) Single Family 210 12.70 58% Multifamily 220 6.00 58% Nonresidential (per 1,000 square feet) Industrial 110 4.87 50% Institutional 610 10.77 50% Retail 820 37.01 38% Office 710 10.84 50% Land Use ITE Codes Daily Vehicle Trip Ends Trip Adj. Factor Source: Trip Generation , Institute of Transportation Engineers, 11th Edition (2021); National Household Travel Survey, 2009 Page 39 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 30 Residential Trip Generation by Housing Unit Size (sq. ft.) As an alternative to simply using average trip generation rates for residential development by housing type, TischlerBise has derived custom trip rates using demographic data for Fort Collins. Key inputs needed for the analysis (i.e., average number of persons and vehicles available per housing unit) are available from the U.S. Census Bureau’s American Community Survey (ACS). FORT COLLINS CONTROL TOTALS As previously shown in Figure 12, Fort Collins averages 2.26 residents per housing unit. Single family includes detached and attached dwellings and manufactured housing. Duplexes and apartments are combined as multifamily. The average number of persons per housing unit in Fort Collins will be compared to national averages derived from traffic studies tabulated by the Institute of Transportation Engineers (ITE). Trip generation rates are also dependent upon the average number of vehicles available per dwelling. Figure 26 indicates vehicles available by housing type within Fort Collins. As expected, single family housing has more vehicles available per dwelling (1.95) than multifamily housing (1.67). Figure 26. Vehicles Available per Housing Unit DEMAND INDICATORS BY DWELLING SIZE Custom tabulations of demographic data by bedroom range can be created from individual survey responses provided by the U.S. Census Bureau, in files known as Public Use Microdata Samples (PUMS). Because PUMS files are available for areas of roughly 100,000 persons, Fort Collins is included in Public Use Microdata Area (PUMA) 103 that covers the northern portion of Larimer County. At the top of Figure 27, cells with yellow shading indicate the survey results, which yield the unadjusted number of persons and vehicles available per dwelling. These multipliers are adjusted to match the control totals for Fort Collins, as documented in Figure 12 and Figure 26. Tenure Vehicles Available [1]Single Family Multifamily Total Vehicles per Household by Tenure Owner-occupied 74,579 33,116 2,493 35,609 2.09 Renter-occupied 55,237 11,226 20,369 31,595 1.75 Total 129,816 44,342 22,862 67,204 1.93 Housing Type Vehicles Available Housing Units [3] Vehicles per Housing Unit Single Family 88,984 45,625 1.95 Multifamily 40,832 24,496 1.67 Total 129,816 70,121 1.85 Households [2] [1] Vehicles available by tenure from Table B25046, American Community Survey, 2017- [3] Housing units from Table B25024, American Community Survey, 2021 [2] Households by tenure and units in structure from Table B25032, American Community Survey, 2021 Page 40 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 31 In comparison to the national averages based on ITE traffic studies, Fort Collins has fewer persons per dwelling, but a greater number of vehicles available per dwelling. Rather than rely on one methodology, the recommended multipliers shown below with grey shading and bold numbers are an average of trip rates based on persons and vehicles available (all types of housing units combined). In Fort Collins, the average housing unit is estimated to yield an 8.40 Average Weekday Vehicle Trip Ends (AWVTE). Figure 27. Average Weekday Vehicle Trips Ends by Bedroom Range To derive average weekday vehicle trip ends by dwelling size, TischlerBise matched trip generation rates and average floor area, by bedroom range, as shown in Figure 28. Floor area averages were calculated with certificate of occupancies issued from 2020 through 2022. The logarithmic trend line formula is derived from the four actual averages in Fort Collins. The trend line is then used to derive estimated trip ends by dwelling size thresholds. In 2017, TischlerBise completed the previous TCEF for Fort Collins. At that time, the average size home (1,701 to 2,200 square feet) was estimate to generate 8.92 daily vehicle trip ends. Compared to the updated average rate of 9.72 vehicle trip ends, the average size home has increased by 8 percent. Bedroom Vehicles Housing Housing Unadjusted Adjusted Unadjusted Adjusted Range Available 1 Units1 Mix Persons/HU Persons/HU2 VehAvl/HU VehAvl/HU2 0-1 457 386 388 8.6%1.18 1.17 0.99 0.97 2 1,885 1,678 1,117 24.6%1.69 1.68 1.50 1.47 3 3,585 3,217 1,542 34.0%2.32 2.30 2.09 2.05 4+4,410 3,630 1,487 32.8%2.97 2.94 2.44 2.39 Total 10,337 8,911 4,534 2.28 2.26 1.97 1.93 National Averages According to ITE (Trip Generation Manual, 11th Edition, 2021) ITE AWVTE per AWVTE per AWVTE per Housing Persons per Veh Avl per Code Person Vehicle Available Household Mix Household Household 221 Apt 1.84 5.10 4.54 35%2.47 0.89 210 SFD 2.65 6.36 9.43 65%3.56 1.48 Wgtd Avg 2.37 5.92 7.72 3.18 1.27 Recommended AWVTE per Dwelling Unit by Bedroom Range AWVTE per AWVTE per HU Based HU Based on on Persons3 Vehicles Available 4 0-1 2.77 5.74 4.26 2 3.98 8.70 6.34 3 5.45 12.14 8.80 4+6.97 14.15 10.56 Total 5.36 11.43 8.40 AWVTE per Dwelling by House Type AWVTE per AWVTE per HU Based HU Based on on Persons3 Vehicles Available 4 221 Apt 4.10 9.89 7.00 1.73 1.67 210 SFD 6.02 11.54 8.78 2.54 1.95 All Types 5.36 11.44 8.40 2.26 1.93 Fort Collins VehAvl/HU Persons1 Bedroom Range AWVTE per Housing Unit5 ITE Code AWVTE per Housing Unit5 Fort Collins Persons/HU Unadjusted VehAvl/HU 1. American Community Survey, Public Use Microdata Sample for CO PUMA 00103 (2017 -2021 5-Year). 2. Adjusted multipliers are scaled to make the average PUMS values match control total s for Fort Collins, based on American Community Survey (2017 -2021 5-Year). 3. Adjusted persons per housing unit multiplied by national weighted average trip rate per person. 4. Adjusted vehicles available per housing unit multiplied by national weighted average trip rate per vehicle available. 5. Average of trip rates based on persons and vehicles available per housing unit. Page 41 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 32 Figure 28. Residential Vehicle Trip Ends by Dwelling Size Bedrooms Square Feet Trip Ends Sq Ft Range Trip Ends 0-1 781 4.26 up to 700 3.77 2 1,162 6.34 701 to 1,200 6.57 3 1,729 8.80 1,201 to 1,700 8.38 4+2,684 10.56 1,701 to 2,200 9.72 over 2,200 10.79 Actual Averages per Hsg Unit Fitted-Curve Values y = 5.1986ln(x) -30.289 R² = 0.9931 0.00 2.00 4.00 6.00 8.00 10.00 12.00 0 500 1,000 1,500 2,000 2,500 3,000 Tr i p E n d s p e r H o u s i n g U n i t Square Feet of Living Area Average Weekday Vehicle Trip Ends by Dwelling Square Footage Unit size ranges are based on current fee schedule and consistent with residential certificates of occupancy issued from 2020 -2022. Average weekday vehicle trip ends per housing unit are derived from 2021 ACS PUMS data for the area that includes Fort Collins. Page 42 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 33 APPENDIX B – ACTIVE MODES PROJECT LISTS Below are pages from the Fort Collins Active Modes Plan (2022) listing the high and medium priority/readiness projects. Page 43 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 34 Figure 29. High Priority/Readiness Projects Page 44 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 35 Figure 30. High Priority/Readiness Projects cont. Page 45 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 36 Figure 31. High Priority/Readiness Projects cont. Page 46 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 37 Figure 32. Medium Priority/Readiness Projects Page 47 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 38 Figure 33. Medium Priority/Readiness Projects cont. Page 48 Item 1. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 39 Figure 34. Medium Priority/Readiness Projects cont. Page 49 Item 1. Draft Report 2023 Capital Expansion Fee Study Prepared for: City of Fort Collins, Colorado Prepared by: Economic & Planning Systems, Inc. November 21, 2023 EPS #233062 DR A F T Page 50 Item 1. Table of Contents 1. Executive Summary ................................................................................ 1 Introduction ................................................................................................. 1 Current Capital Expansion Fee Program ............................................................ 1 Proposed Updated Capital Expansion Fee Program ............................................. 2 Updated Capital Expansion Fees ...................................................................... 3 Legal Standards for Impact Fees ..................................................................... 5 2. Methodology .......................................................................................... 7 Impact Fee Methodologies .............................................................................. 7 Level of Service Definition .............................................................................. 8 Cost Allocations by Land Use Type ................................................................... 8 Service Population ......................................................................................... 9 Residential Occupancy Factors ...................................................................... 10 Nonresidential Occupancy Factors .................................................................. 12 3. Neighborhood and Community Parks Capital Expansion Fees ........................ 13 Level of Service Definition ............................................................................ 13 Residential Capital Expansion Fee Calculation .................................................. 15 4. Police Capital Expansion Fee .................................................................... 16 Level of Service Definition ............................................................................ 16 Residential Capital Expansion Fee Calculation .................................................. 17 Nonresidential Capital Expansion Fee ............................................................. 17 5. Fire Protection Capital Expansion Fee........................................................ 18 Level of Service Definition ............................................................................ 18 Residential Capital Expansion Fee Calculation .................................................. 19 Nonresidential Capital Expansion Fee ............................................................. 20 6. General Government Capital Expansion Fee ............................................... 21 Level of Service Definition ............................................................................ 21 Residential Capital Expansion Fee Calculation .................................................. 22 Nonresidential Impact Fee ............................................................................ 22 DR A F T Page 51 Item 1. List of Tables Table 1. Current Capital Expansion Fees ............................................................... 2 Table 2. Updated Residential and Nonresidential Capital Expansion Fees, 2023 .......... 4 Table 3. Fort Collins Service Population Calculation, 2023 ....................................... 9 Table 4. Fort Collins Residential Service Demand Factor Calculation, 2023 ............... 10 Table 5. Fort Collins Residential Occupancy Factors .............................................. 11 Table 6. Fort Collins Nonresidential Occupancy Factors ......................................... 12 Table 7. Parks Cost per Service Unit, 2023 ......................................................... 13 Table 8. Parks Maintenance Facility per Capita Cost, 2023 ..................................... 14 Table 9. Neighborhood Parks Residential Capital Expansion Fee, 2023 .................... 15 Table 10. Community Parks Residential Capital Expansion Fee, 2023 ........................ 15 Table 11. Police Inventory and Replacement Cost per Capita, 2023 .......................... 16 Table 12. Police Residential Capital Expansion Fee, 2023 ........................................ 17 Table 13. Police Nonresidential Capital Expansion Fee, 2023 ................................... 17 Table 14. Fire Protection Inventory and Replacement Cost per Capita, 2023 .............. 18 Table 15. Fire Protection Asset Cost by Service Area, 2023 ..................................... 19 Table 16. Fire Residential Capital Expansion Fee, 2023 ........................................... 19 Table 17. Fire Protection Nonresidential Capital Expansion Fee, 2023 ....................... 20 Table 18. General Government Inventory and Replacement Cost, 2023 .................... 21 Table 19. General Government Residential Capital Expansion Fee, 2023 ................... 22 Table 20. General Government Nonresidential Capital Expansion Fee, 2023 ............... 22 List of Appendix Tables Table A-1. Comparison of Major Inputs: 2017 vs. 2023 Study ................................... 24 Table A-2. Current Residential Impact Fee Comparisons .......................................... 25 Table A-3. Current Nonresidential Impact Fee Comparisons ...................................... 26 DR A F T Page 52 Item 1. Economic & Planning Systems, Inc. 233062 - Draft Impact Fee Report 11-21-23.docx 1 1. Executive Summary Introduction This Report was prepared by Economic & Planning Systems (EPS) for the City of Fort Collins to update its Capital Expansion Fee (CEF) program. CEFs are the City’s term for what are defined as impact fees under State of Colorado law. The Report documents costs and other supporting data to provide the nexus and proportionality requirements needed to adopt impact fees to comply with State of Colorado law and other case law regarding development charges. Capital Expansion fee calculations are provided for the following fee categories currently levied by the City on new development: • Neighborhood Parks • Community Parks • Police • Fire Protection • General Government Current Capital Expansion Fee Program The City collects impact fees or CEFs for neighborhood parks, community parks, fire protection, police, general government, and transportation (Table 1). The transportation impact fee is known as the Transportation Capital Expansion Fee or TCEF. The TCEF is currently undergoing an update contained in a separate study. Residential capital expansion fees are charged per dwelling unit with the fees varying by the size of the dwelling unit, as large units have larger average household sizes than smaller units. The current residential CEFs (including the TCEF) range from a total of $9,296 for dwelling units up to 700 square feet to $19,049 for units over 2,200 square feet. These fees apply to all dwelling unit types (e.g., single family and multifamily) and are applied based on the gross square feet in the building permit application. In total, nonresidential CEFs are $12,737 per 1,000 sq. ft. ($12.74 per sq. ft.) for commercial buildings, $10,118 per 1,000 sq. ft. ($10.12 per sq ft.) for office/other service buildings, and $3,021 per 1,000 sq. ft. ($3.02 per sq. ft.) for industrial buildings. Capital expansion fees are collected typically at the time of building permit for building construction. '5 $ ) T Page 53 Item 1. 2023 Capital Expansion Fee Study 2 Table 1. Current Capital Expansion Fees Proposed Updated Capital Expansion Fee Program This Report documents the calculations for a new capital expansion fee program with the following proposed changes. New Fee Land Use Types A new fee for land use comprised of offices and other services is proposed. Traditionally, office and other services impact fees have been charged at the same rate as retail/commercial developments. However, the TCEF fees have been charging office and other service impact fees at a different rate than retail/commercial developments. To create consistency between the CEF and TCEF fees, EPS is proposing that office and other services impact fees be added to the fee schedule to create more consistency with the TCEF fees. Land Use Type Neighborhood Park Community Park Fire Police General Government TCEF (Transportation)Total Residential (per dwelling) Up to 700 sq. ft.$2,108.00 $2,977.00 $516.00 $289.00 $703.00 $2,703.00 $9,296.00 700 - 1,200 sq. ft.$2,822.00 $3,985.00 $698.00 $391.00 $948.00 $5,020.00 $13,864.00 1,201 - 1,700 sq. ft.$3,082.00 $4,351.00 $759.00 $425.00 $1,035.00 $6,518.00 $16,170.00 1,701 - 2,200 sq. ft.$3,114.00 $4,396.00 $772.00 $431.00 $1,051.00 $7,621.00 $17,385.00 Over 2,200 sq. ft.$3,470.00 $4,901.00 $859.00 $480.00 $1,170.00 $8,169.00 $19,049.00 Nonresidential (per 1,000 sq. ft.) Commercial $0.00 $0.00 $650.00 $364.00 $1,777.00 $9,946.00 $12,737.00 Office and Other Services $0.00 $0.00 $650.00 $364.00 $1,777.00 $7,327.00 $10,118.00 Industrial $0.00 $0.00 $152.00 $85.00 $419.00 $2,365.00 $3,021.00 Source: City of Fort Collins; Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]1-Current Fees DR A F T Page 54 Item 1. Economic & Planning Systems, Inc. 3 Updated Capital Expansion Fees This report provides calculations of the maximum capital expansion fees that the City may charge, supported by this nexus and proportionality analysis. The law allows City Council to adopt the full fees determined in this report, or to adopt lower fees for a variety of policy reasons determined to be in the interest of the City. The proposed maximum residential and nonresidential capital expansion fees are shown below in Table 2. Updated residential fees range from $6,684 to $13,893 (Table 2). The range in residential fees is based on the average household size in each size category and dwelling unit type. Larger homes tend to have larger household sizes, creating more impact on public facilities. Increases in the residential fees range from 1.4 percent to 27.7 percent. For smaller residences, the fee percent increase is lower due to the proportionally larger decrease in average household size for smaller units. For example, the household size in housing units smaller than 700 square feet decreased from 1.78 in 2017 to 1.40 in 2023. Meanwhile, units over 2,200 square feet only decreased by 0.04 persons per dwelling unit from 2.95 in 2017 to 2.91 in 2023. Fees vary according to the employment and customer/visitor generation factors for each land use type explained further in Chapter 2. Nonresidential fees range from $953.13 to $3,673.89 per 1,000 square feet. Changes in the nonresidential fees range from a decrease of 28.0 percent for office and other services to an increase of 45.3 percent for industrial land uses. The decrease in office and other services land uses is a result of updating the fee category to align with the TCEF fees as described in the previous section. DR A F T Page 55 Item 1. 2023 Capital Expansion Fee Study 4 Table 2. Updated Residential and Nonresidential Capital Expansion Fees, 2023 Fire Police Total Land Use Type Neighborhood Park Community Park Update Residential (per dwelling) Up to 700 sq. ft.$2,813.46 $2,140.12 $603.52 $381.89 $745.25 $6,684.24 700 - 1,200 sq. ft.$4,260.38 $3,240.76 $913.90 $578.29 $1,128.52 $10,121.85 1,201 - 1,700 sq. ft.$4,782.88 $3,638.21 $1,025.98 $649.21 $1,266.93 $11,363.21 1,701 - 2,200 sq. ft.$5,144.61 $3,913.37 $1,103.58 $698.31 $1,362.74 $12,222.61 Over 2,200 sq. ft.$5,847.97 $4,448.40 $1,254.46 $793.78 $1,549.06 $13,893.67 Nonresidential (per 1,000 sq. ft.) Retail/Commercial $0.00 $0.00 $1,281.17 $810.68 $1,582.04 $3,673.89 Office and Other Services $0.00 $0.00 $701.02 $443.58 $865.64 $2,010.24 Industrial $0.00 $0.00 $332.38 $210.32 $410.43 $953.13 Current Residential (per dwelling) Up to 700 sq. ft.$2,108.00 $2,977.00 $516.00 $289.00 $703.00 $6,593.00 700 - 1,200 sq. ft.$2,822.00 $3,985.00 $698.00 $391.00 $948.00 $8,844.00 1,201 - 1,700 sq. ft.$3,082.00 $4,351.00 $759.00 $425.00 $1,035.00 $9,652.00 1,701 - 2,200 sq. ft.$3,114.00 $4,396.00 $772.00 $431.00 $1,051.00 $9,764.00 Over 2,200 sq. ft.$3,470.00 $4,901.00 $859.00 $480.00 $1,170.00 $10,880.00 Nonresidential (per 1,000 sq. ft.) Retail/Commercial $0.00 $0.00 $650.00 $364.00 $1,777.00 $2,791.00 Office and Other Services $0.00 $0.00 $650.00 $364.00 $1,777.00 $2,791.00 Industrial $0.00 $0.00 $152.00 $85.00 $419.00 $656.00 Percent Change Residential (per dwelling) Up to 700 sq. ft.33.5%-28.1%17.0%32.1%6.0%1.4% 700 - 1,200 sq. ft.51.0%-18.7%30.9%47.9%19.0%14.4% 1,201 - 1,700 sq. ft.55.2%-16.4%35.2%52.8%22.4%17.7% 1,701 - 2,200 sq. ft.65.2%-11.0%43.0%62.0%29.7%25.2% Over 2,200 sq. ft.68.5%-9.2%46.0%65.4%32.4%27.7% Nonresidential (per 1,000 sq. ft.) Retail/Commercial ----97.1%122.7%-11.0%31.6% Office and Other Services ----7.8%21.9%-51.3%-28.0% Industrial ----118.7%147.4%-2.0%45.3% Source: City of Fort Collins; Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]2a-Impact Fee Summary General GovernmentParks DR A F T Page 56 Item 1. Economic & Planning Systems, Inc. 5 Legal Standards for Impact Fees Impact fees can be charged by local governments on new development to pay for capital facilities needed to serve growth. The State of Colorado has adopted a standard with the adoption of Senate Bill 15, codified as Section 29-20-104 and 104.5 of the Colorado Revised Statutes following a Colorado Supreme Court decision. The Colorado Supreme Court ruled in Krupp v. Breckenridge Sanitation District (1999) that the District could assess an impact fee based on a set of development characteristics that reflect the general performance of a proposed use, rather than the specific conditions of an individual proposal. While traditional exactions are determined on an individual basis and applied on a case-by-case basis, an “impact fee” is calculated based on the impact of all new development and the same fee is shared to all new development in a particular class.”1 The finding of the Court distinguishes impact fees, as a legislatively adopted program applicable to a broad class of property owners, from traditional exactions, which are discretionary actions applicable to a single project or property owner. In 2001, the State Legislature provided specific authority in adopting Senate Bill 15 that “provides that a local government may impose an impact fee or other similar development charge to fund expenditures by such local government on capital facilities needed to serve new development.” The bill amended Title 29 of the Colorado statutes that govern both municipalities and counties and defines “local government” to include a county, home rule, or statutory city, city, or territorial charter city. The law requires local governments to “quantify the reasonable impacts of proposed development on existing capital facilities and establish the impact fee or development charge at a level no greater than necessary to defray such impacts directly related to proposed development.” The standard that must be met within the State of Colorado requires mitigation to be "directly related" to impacts. 1 Colorado Municipal League, Paying for Growth, Carolynne C. White, 2002. '5 $ ) T Page 57 Item 1. 2023 Capital Expansion Fee Study 6 Impact Fee Requirements • Capital Facilities – Fees may not be used for operations or maintenance. Fees must be spent on new or expanded capital facilities, which have been further defined as directly related to a government service, with an estimated useful life of at least five years and that are required based on the charter or a general policy. • Existing Deficiencies – Fees are formally collected to mitigate impacts from growth and cannot be used to address existing deficiencies. In the analysis used to establish an impact fee program, the evaluation must distinguish between the impacts of growth and the needs of existing development. • Capital Maintenance – Major “capital maintenance” projects are not typically eligible to be funded with impact fees unless it can be shown that the project increases the capacity of the community to accommodate growth. In that case, only the growth-serving element of the project is eligible to be funded with impact fees. • Credits – In the event a developer must construct off-site infrastructure in conjunction with their project, the local government must provide credits against impact fees for the same infrastructure, provided that the necessary infrastructure serves the larger community. Credits may not apply if a developer is required to construct such a project as a condition of approval due to the direct impact on the capital facility created by the project. Credits are handled on a case-by-case basis. • Timing – The City must hold revenues in accounts dedicated to the specific use. Funds must be expended within a reasonable period or returned to the developer. The State enabling legislation does not specify the maximum length of time to be used as a “reasonable period.” This has been generally accepted or interpreted to be a 10-year period. • Accounting Practices – The City must adopt stringent accounting practices as specified in the State enabling legislation. Funds generated by impact fees may not be commingled with any other funds. • Affordable Housing – The law allows impact fees on affordable housing “as defined by the community” to be waived. '5 $ ) 7 Page 58 Item 1. Economic & Planning Systems, Inc. 7 2. Methodology This chapter describes common impact fee calculation techniques, the methodology used to calculate new impact fees, and important estimates and factors used in the calculations. Impact Fee Methodologies There are several methods that can be used to calculate impact fees. The two most common techniques are the Plan-Based Method and the Incremental Expansion Method. The method chosen needs to be appropriate for the local circumstances as described below. Colorado law does not specify the methodology to be used; these methods are commonly used in Colorado and in other states. Plan-Based Method This method uses a community’s long-range comprehensive plan, capital improvement plan, or other adopted plan identifying capital facilities and infrastructure needed to serve growth. Projects identified in these plans are costed out and included in the fee program. A growth projection is made over the time period for which the defined projects are needed or planned to be built. The fee calculation is essentially the cost of the planned project(s) divided by the forecasted amount of growth. This method is best used when detailed capital project planning has been done. The plan-based method has limitations. First, many communities are not able to conduct capital planning with the level of detail needed in an impact fee study. It can be difficult to tie future facility needs with expected growth, and growth can be unpredictable. The fee calculations are highly sensitive to the amount of forecasted growth, as growth is the denominator in the fee calculation. Incremental Expansion Method The Incremental Expansion Method is a more frequently used method for calculating impact fees. This method is also called the “level of service” method. This technique answers the question: What should each new unit (increment) of development pay to maintain the city’s current level of service? '5 $ ) T Page 59 Item 1. 2023 Capital Expansion Fee Study 8 This approach takes a snapshot of the current level of service in the city and converts it typically to a value per unit of service demand (e.g. per capita or per service population). The current level of service is defined as the inventory of the city’s existing facilities and capital assets, and the cost to replicate that level of service (replacement cost) as the city grows. The asset inventory or value is then converted to a cost per capita, per dwelling unit, or per nonresidential square foot that is the basis for the fee. The Incremental Expansion Method was used in this study to calculate impact fees for Parks, Police, Fire, and General Government. Level of Service Definition Using the Incremental Expansion Method, this study defines the level of service (LOS) as the replacement cost of the existing facilities and capital equipment in the City in 2023. The fee calculations document the current inventories of parks facilities and land, police facilities and fleet/equipment, fire facilities and fleet/equipment, and general government facilities and fleet/equipment. The LOS is converted to a cost or value per service population that is used to calculate the impact fees for each major land use type. Cost Allocations by Land Use Type Many City services and related capital facilities are provided for residential and commercial (nonresidential) development. To ensure that impact fees are proportional to the impact by type of land use, it is necessary to allocate the level of service or facility costs to residential and nonresidential development. For all categories, the City’s service population combined with person-occupancy factors are used to allocate costs as described in the next section. '5 $ ) T Page 60 Item 1. Economic & Planning Systems, Inc. 9 Service Population Under the incremental expansion method, the impact fee is based on the cost to maintain the current infrastructure standard expressed as the replacement cost per service population. Under this method, each new increment of development pays a fee that is designed to maintain the current level of service per unit of service population (replacement cost per service population). Service population is a metric that combines the resident population plus in-commuting workers for a total “daily” or “functional” population. Capital expansion fee calculations use service population and person-occupancy factors by land use type as the basis for allocating costs to residential and nonresidential development (except for parks, which uses residential population). The calculation of service population is shown in Table 3. The City of Fort Collins estimated its population to be 174,445 people in 2023. There are an estimated 107,677 jobs in Fort Collins and an estimated 102,037 employees (workers) after adjusting for people who hold multiple jobs. In- commuters account for 57.8 percent of the job holders and because they are present in the City for only part of a day, they are weighted at 50 percent of the impact of a full-time resident. These adjustments add 29,507 of equivalent population to the population resulting in a service population of 203,952. Table 3. Fort Collins Service Population Calculation, 2023 Description 2023 Source Service Population Population A 174,445 City of Fort Collins, 2023 Jobs 107,677 North Front Range MPO TAZ, 2023 Jobs Per Employed Person 1.06 LEHD, 2020 Employees 102,037 Calculation In-Commuters 57.8%LEHD, 2020 Commuting Employee Weight 50.0%EPS Estimate In-Commuting Employee Impact B 29,507 Calculation Total Service Population = A + B 203,952 Source: TischlerBise; North Front Range MPO TAZ, 2023; U.S. Census LEHD; Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]20-Service Population '5 $ ) T Page 61 Item 1. 2023 Capital Expansion Fee Study 10 Residential Occupancy Factors Occupancy factors are developed in this section to convert new development into increments of new service population. The occupancy factors also allocate service demand between residential and nonresidential land uses. As shown in Table 4, people are estimated to spend approximately 71.3 percent of their day at home, which is equivalent to the residential service demand factor. The other 29.7 percent of the time spent away from home is accounted for in the nonresidential occupancy factors. Table 4. Fort Collins Residential Service Demand Factor Calculation, 2023 Description Factor 2023 Source Residential Conditions Population 174,445 City of Fort Collins, 2023 Nonworking Residents 52.0%90,711 LEHD, 2020 Working Residents 48.0%83,734 LEHD, 2020 Out Commuter Residents 50.6%42,369 LEHD, 2020 Work/Live Residents 49.4%41,364 LEHD, 2020 Residential Service Demand Nonworking Residents 20 hours per day 1,814,228person-hours per day Out Commuter Residents 14 hours per day 593,169 person-hours per day Work/Live Residents 14 hours per day 579,102 person-hours per day Residential Total A 2,986,498person-hours per day Total Person-Hours per Day B 24 4,186,680population X 24 hours Residential Service Demand Factor =A/B 71.3%percent of day spent at home (population's allocation to residential land uses) Source: U.S. Census Longitudinal Employer-Household Dynamics (LEHD); U.S. Census; Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]23-Residential Service DemandDR A F T Page 62 Item 1. Economic & Planning Systems, Inc. 11 Next, the service population per dwelling unit is estimated using average household sizes and the time spent away from the home. The average household size for single family and multiple dwelling units was obtained from the U.S. Census Public Use Microdata Sample (PUMS), and the averages by household size ranges were calibrated from the American Housing Survey. The previously calculated residential service demand factor was then applied to generate the residential occupancy factors, as shown in Table 5. For example, a home with 1,890 square feet has an average household size of 2.56 persons and a 1.83- person occupancy factor. As highlighted in an analysis and memorandum sent to the City Council on March 30, 2023, an 1,890 square foot household in Fort Collins was used as a basis for residential comparative analysis. This report will also use the 1,890 square foot household as an example for each of the fee categories to help provide specific context to this study update. Table 5. Fort Collins Residential Occupancy Factors Description Index Average HH Size % of Time in Unit Impact Fee Factor Fort Collins Average 100.0% 2.36 71.3%1.68 By Square Feet Up to 700 sq. ft.59.2% 1.40 71.3%1.00 700 - 1,200 sq. ft.90.0% 2.12 71.3%1.51 1,201 - 1,700 sq. ft.100.7% 2.38 71.3%1.70 1,701 - 2,200 sq. ft.108.4% 2.56 71.3%1.83 Over 2,200 sq. ft.123.3% 2.91 71.3%2.08 Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]24-Occupancy_Factor Source: 2019 U.S. Census Bureau American Housing Survey, Division 8 (Mountain); Economic & Planning Systems DR A F T Page 63 Item 1. 2023 Capital Expansion Fee Study 12 Nonresidential Occupancy Factors Nonresidential occupancy factors were derived from trip rate factors, vehicle occupancy data, and employment generation factors, as shown in Table 6. Daily trip rates are one-half the average daily trip ends during a weekday and are sourced from the Institute of Transportation Engineers’ (ITE) Trip Generation Manual. Employee density figures were from the TCEF study being prepared by TischlerBise. Using these factors, service population figures were derived for three general land use categories, ranging from 0.55 for industrial uses, to 2.12 for retail and commercial uses. This method accounts for on-site employment and customers or visitors that are comprised of the resident population as well as people coming into the city for shopping, leisure, or business activities. Table 6. Fort Collins Nonresidential Occupancy Factors Land Use Unit Daily Trips[1]Persons per 1,000 sq. ft. Employees per 1,000 sq. ft. Sq. Ft.(Trip ends / 2)(8 hours/day)(8 hours/day) A B C = A * B D E Retail/Commercial 1,000 820 37.75 18.88 1.91 36.11 2.12 8 16.98 Office and Other Services 1,000 710 9.74 4.87 1.18 5.75 3.15 8 25.17 Industrial 1,000 110 4.87 2.44 1.18 2.87 1.57 8 12.56 Land Use Vistors per 1,000 sq. ft. Service Population (8 hours/day)per day F = C - D G H = F * G I = E + H J = I / J Retail/Commercial 33.99 1.00 33.99 50.97 24 2.12 Office and Other Services 2.60 1.00 2.60 27.77 24 1.16 Industrial 1.30 0.50 0.65 13.21 24 0.55 Source: Economic & Planning Systems [1]The daily trips are the daily trip ends divided by 2 so that non-residential land uses are not charged for both ends of a trip (origin and destination) Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]28-NR_Occupancy Factors Total Hours Total Hours in Day Visitor Hour Factor Vistor Hours ITE Code Daily Trip Ends Persons/ Trip Employee Hours in Day Employee Hours '5 $ ) T Page 64 Item 1. Economic & Planning Systems, Inc. 13 3. Neighborhood and Community Parks Capital Expansion Fees This chapter documents the level of service, replacement cost estimates, cost allocations, and other calculations used to determine the Parks CEF for neighborhood parks and community parks. Capital expansion fees are collected to fund facility construction, equipment purchases, and land acquisition. As the City grows, the space needed for these support functions also grows. Capital expansion fees will be used to maintain the current level of service, expressed as the replacement cost of its maintenance facilities, developed parkland, and land cost to replace such parkland. The City currently manages 573 acres of community parks and 384 acres of neighborhood parks. Level of Service Definition The total estimated replacement cost of parks facilities is $350,566,728 for neighborhood parks and $266,667,038 for community parks, as shown in Table 7. The replacement cost, which is split into two fee categories, is $2,009.61 per residential population for neighborhood parks and $1,528.66 per residential population for community parks. This value includes the replacement cost estimates for all maintenance facilities, all parkland, and the land cost estimates for all parklands. Table 7. Parks Cost per Service Unit, 2023 Description Neighborhood Parks Community Parks Development Cost per Acre A $580,708 $215,342 Developed Acres B 422 573 Existing Park Replacement Cost = A x B $245,058,961 $123,390,913 Land Cost per Acre A $250,000 $250,000 Developed Acres B 422 573 Existing Land Cost = A x B $105,500,000 $143,250,000 Maintenance Facility Cost per Acre A $7,767 $26,124 Developed Acres B 422 573 Maintenance Facility Need = A x B $3,277,656 $14,969,230 Total Park Replacement Cost $350,566,728 $266,667,038 Cost per Residential Population 174,445 $2,009.61 $1,528.66 Source: City of Fort Collins; Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]7-Parks Cost per Service Unit DR A F T Page 65 Item 1. 2023 Capital Expansion Fee Study 14 To determine the development cost of the maintenance facilities, East District, Spring Canyon, and Fossil Creek maintenance facility development costs were used to estimate a replacement cost per acre based on community and neighborhood park acres served by each facility, as shown in Table 8. As previously determined by the City, the cost allocation of maintenance facilities is 80 percent for community parks and 20 percent for neighborhood parks. Table 8. Parks Maintenance Facility per Capita Cost, 2023 Description Replacement Cost Maintenance Facilites East District $7,325,000 Community Park Share (80%)$5,860,000 Community Park Acres Served 118 Community Park Cost/Acre $49,493 Neighborhood Park Share (20%)$1,465,000 Neighborhood Park Acres Served 84 Neighborhood Park Cost/Acre $17,399 Spring Canyon $1,815,147 Community Park Share (80%)$1,452,117 Maintenance Facility Need 103 Community Park Cost/Acre $14,098 Total Park Replacement Cost $363,029 Neighborhood Park Acres Served 132 Neighborhood Park Cost/Acre $2,750 Fossil Creek $2,623,710 Community Park Share (80%)$2,098,968 Community Park Acres Served 142 Community Park Cost/Acre $14,781 Neighborhood Park Share (20%)$524,742 Neighborhood Park Acres Served 167 Neighborhood Park Cost/Acre $3,152 Total Replacement Cost $11,763,856 Maintenance Facility Need Community Park Average Cost/Acre $26,124 Neighborhood Park Average Cost/Acre $7,767 Source: City of Fort Collins; Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]6-Maintenance Fac. CostDR A F T Page 66 Item 1. Economic & Planning Systems, Inc. 15 Residential Capital Expansion Fee Calculation The replacement cost per service population is multiplied by the household sizes for each housing unit size range. Park fees are charged only on residential development and full household size factors are used. For a single-family home or multifamily unit that is 1,890 square feet, the fee per unit is $5,144.61 for neighborhood parks (Table 9) and $3,913.37 for community parks (Table 10), which equates to $9,057.88 per unit. This is based on an average household size of 2.56 people. The capital expansion fee was calculated for a range of unit sizes as currently permitted in the City of Fort Collins fee schedule. Table 9. Neighborhood Parks Residential Capital Expansion Fee, 2023 Table 10. Community Parks Residential Capital Expansion Fee, 2023 Updated Fee Current Fee Description per unit per unit Cost per Service Population $2,009.61 Residential Up to 700 sq. ft.1.40 $2,813.46 $2,108.00 700 - 1,200 sq. ft.2.12 $4,260.38 $2,822.00 1,201 - 1,700 sq. ft.2.38 $4,782.88 $3,082.00 1,701 - 2,200 sq. ft.2.56 $5,144.61 $3,114.00 Over 2,200 sq. ft.2.91 $5,847.97 $3,470.00 Source: Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]8-NParks-Res. Impact Fee Avg. HH Size Updated Fee Current Fee Description per unit per unit Cost per Service Population $1,528.66 Residential Up to 700 sq. ft.1.40 $2,140.12 $2,977.00 700 - 1,200 sq. ft.2.12 $3,240.76 $3,985.00 1,201 - 1,700 sq. ft.2.38 $3,638.21 $4,351.00 1,701 - 2,200 sq. ft.2.56 $3,913.37 $4,396.00 Over 2,200 sq. ft.2.91 $4,448.40 $4,901.00 Source: Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]9-CParks-Res. Impact Fee Avg. HH SizeDR A F T Page 67 Item 1. 2023 Capital Expansion Fee Study 16 4. Police Capital Expansion Fee This chapter documents the level of service, replacement cost estimates, cost allocations, and other calculations used to determine the Police Capital Expansion Fee. Fees are collected to fund facility expansions, fleet replacement, and equipment replacement. These fees will be used to maintain the current level of service, expressed as the replacement cost of police facilities, fleet, and capital equipment. The police department currently has 3 primary facilities and 430 fleet vehicles. Level of Service Definition The total replacement cost of police facilities, fleet, and equipment is $77,990,689, as shown in Table 11. The replacement cost is $382.40 per service population. This value accounts for debt owed and an estimated 90 percent capacity factor based on current utilization. Table 11. Police Inventory and Replacement Cost per Capita, 2023 Description Quantity Cost Factor Capacity Factor Bldg. Cost Land Cost Replacement Cost Police Facilities Per SF Police Facilities 3 $517 90%$60,753,240 $3,421,110 $58,099,026 IT Capital Equipment --------18,414,943 Subtotal $517 $60,753,240 $3,421,110 $76,513,969 Police Fleet Inventory Per Unit Admin Vehicle 29 $33,916 $983,559 Drug Task Force 11 31,842 350,258 Equipment 4 209,137 836,549 Investigation 83 37,400 3,104,223 Mobile Command Vehicle 1 440,929 440,929 Patrol 296 41,644 12,326,696 Public Safety 6 97,887 587,323 Subtotal 430 $43,325 $18,629,537 Debt Principal 2012 COPS -$7,430,000 2019 COPS -6,604,740 Vehicle Equipment -3,118,078 Subtotal -$17,152,818 Total $77,990,689 Cost per Service Population Functional Population: 203,952 $382.40 Source: City of Fort Collins; Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]10-Police_Inv. RC DR A F T Page 68 Item 1. Economic & Planning Systems, Inc. 17 Residential Capital Expansion Fee Calculation For a single-family home or multi-family unit that is 1,890 square feet, the fee per unit is $698.31. This is based on an occupancy factor of 1.83 people adjusted for time spent at home, as shown in Table 12. The capital expansion fee was calculated for a range of unit sizes as currently permitted in the City of Fort Collins fee schedule. Table 12. Police Residential Capital Expansion Fee, 2023 Nonresidential Capital Expansion Fee Using the previously derived service population and occupancy factors, the proposed nonresidential impact fee was calculated for three major land uses as shown in Table 13. Proposed capital expansion fees range from $0.21 per square foot for industrial uses to $0.81 per square foot for retail/commercial uses. Table 13. Police Nonresidential Capital Expansion Fee, 2023 Description Factor Updated Fee Current Fee per unit per unit Cost per Service Population $382.40 Residential Up to 700 sq. ft.1.00 $381.89 $289.00 700 - 1,200 sq. ft.1.51 $578.29 $391.00 1,201 - 1,700 sq. ft.1.70 $649.21 $425.00 1,701 - 2,200 sq. ft.1.83 $698.31 $431.00 Over 2,200 sq. ft.2.08 $793.78 $480.00 Source: Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]11-Police-Res. Impact Fee Description Service Pop.Updated Fee Updated Fee Updated Fee Current Fee per 1,000 sq. ft.per 1,000 sq. ft.per sq. ft.per 1,000 sq. ft.per 1,000 sq. ft. Cost per Service Population $382.40 Nonresidential Retail/Commercial 2.12 $810.68 $0.81 $810.68 $364.00 Office 1.16 $443.58 $0.44 $443.58 $364.00 Industrial 0.55 $210.32 $0.21 $210.32 $85.00 Source: Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]12-Police-Non Res. Fee DR A F T Page 69 Item 1. 2023 Capital Expansion Fee Study 18 5. Fire Protection Capital Expansion Fee This chapter documents the current Fire Protection Capital Expansion fee structure, replacement cost estimates, cost allocations, and other factors used to calculate the proposed Fire Protection Capital Expansion Fees. The Poudre Fire Authority (PFA) consists of eleven staffed fire stations, two volunteer fire stations, one headquarters, and one training facility, which serve a variety of emergency response needs. These include fire suppression, emergency medical response, hazardous materials response, technical rescue, fire prevention, public outreach and education, and wildland preparedness planning and response. PFA is the overarching authority that serves a large portion of Larimer County including Fort Collins. The Poudre Valley Fire Protection District (PVFPD) collects separate impact fees for its service area outside of the City of Fort Collins. Level of Service Definition The total replacement cost of Fire Protection facilities, fleet, and equipment is $145,020,455, as shown in Table 14. The total replacement cost is for the entire PFA district including areas outside of Fort Collins. The asset inventory needs to be allocated to Fort Collins for its CEF calculation, which is shown in Table 15. Table 14. Fire Protection Inventory and Replacement Cost per Capita, 2023 Description Location Factor Cost Factor Bldg. Cost Land Cost Replacement Cost Fire Facilities SF Cost per SF Burn Building (Training)3400 W. Vine Drive 1,560 $650 $1,014,000 $0 $1,014,000 Fire Stations --111,630 650 72,559,500 4,987,466 77,546,966 Vacant Land (Future Station #18)4500 E. Mulberry ----0 675,000 675,000 Fit Tower Training 3400 W. Vine 3,764 650 2,446,600 0 2,446,600 Offices --25,974 650 16,883,100 831,307 17,714,407 Training Center A 3400 W. Vine Drive 13,970 650 9,080,500 698,298 9,778,798 Subtotal 156,898 $650 $101,983,700 $7,192,071 $109,175,771 Fire Fleet Inventory Units Cost per Unit Fleet 22 $44,214 $972,713 Battalion Chiefs 8 41,552 332,413 Frontline Apparatus 45 465,978 20,968,995 Reserves 5 760,000 3,800,000 Training 13 196,521 2,554,774 Support 6 28,570 171,420 Antiques 3 38,499 115,496 Lawn Mowers 25 5,960 149,000 Equipment 92 48,541 4,465,734 Misc.15 154,276 2,314,139 Subtotal 189 $189,654 $35,844,684 Total $145,020,455 Source: City of Fort Collins; Poudre Fire Authority; Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]13-Fire_Inv. RC DR A F T Page 70 Item 1. Economic & Planning Systems, Inc. 19 The City of Fort Collins generates 84.99 percent of PFA calls. The replacement cost attributable to the City is therefore $123,252,885, or $604.32 per service population, as shown in Table 15. Table 15. Fire Protection Asset Cost by Service Area, 2023 Residential Capital Expansion Fee Calculation For a single-family home or multifamily unit that is 1,890 square feet, the fee per unit with the City of Fort Collins is $1,103.58. This is based on an occupancy factor of 1.83 people adjusted for time spent at home. The capital expansion fee was calculated for a range of unit sizes as currently permitted in the City of Fort Collins fee schedule (as shown in Table 16). Table 16. Fire Residential Capital Expansion Fee, 2023 Description Call Volume Total Replacement Cost Functional Population Cost per Service Population A B = A / B Total 100.00%$145,020,455 PFA Fort Collins 84.99%$123,252,885 203,952 $604.32 Source: City of Fort Collins; Poudre Valley Fire Authority; Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]14-FoCoFireAssets Description Factor Updated Fee Current Fee per unit per unit Cost per Service Population $604.32 Residential Up to 700 sq. ft.1.00 $603.52 $516.00 700 - 1,200 sq. ft.1.51 $913.90 $698.00 1,201 - 1,700 sq. ft.1.70 $1,025.98 $759.00 1,701 - 2,200 sq. ft.1.83 $1,103.58 $772.00 Over 2,200 sq. ft.2.08 $1,254.46 $859.00 Source: Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]15-FC Fire-Res. Impact Fee DR A F T Page 71 Item 1. 2023 Capital Expansion Fee Study 20 Nonresidential Capital Expansion Fee Using the previously derived service population and occupancy factors, the proposed nonresidential capital expansion fee was calculated for three major land uses as shown in Table 17. Proposed fees range from $0.33 per square foot for industrial uses to $1.28 per square foot for retail/commercial uses. Table 17. Fire Protection Nonresidential Capital Expansion Fee, 2023 Description Service Pop.Updated Fee Updated Fee Updated Fee Current Fee per 1,000 sq. ft.per 1,000 sq. ft.per sq. ft.per 1,000 sq. ft.per 1,000 sq. ft. Cost per Service Population $604.32 Nonresidential Retail/Commercial 2.12 $1,281.17 $1.28 $1,281.17 $650.00 Office 1.16 $701.02 $0.70 $701.02 $650.00 Industrial 0.55 $332.38 $0.33 $332.38 $152.00 Source: Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]16-FC Fire-Non Res. Fee DR A F T Page 72 Item 1. Economic & Planning Systems, Inc. 21 6. General Government Capital Expansion Fee This chapter documents the level of service, replacement cost estimates, cost allocations, and other calculations used to determine the General Government Capital Expansion Fee. These fees are collected to fund facility expansions for general government purposes such as office space for city staff, facilities maintenance buildings, city fleet, equipment, and courts and justice functions. As the city grows, the space needs for these support functions also grows. Capital Expansion fees will be used to maintain the current level of service, expressed as the replacement cost of its major facilities and fleet. Level of Service Definition The total replacement cost of general government is estimated at $152,198,009, as shown in Table 18. The replacement cost for general government is $746.25 per service population. This value includes all facilities owned by the City of Fort Collins including City Hall and other administrative buildings, streets and traffic operations, IT equipment, general governmental vehicles, and heavy equipment. Table 18. General Government Inventory and Replacement Cost, 2023 Description Location Factor Cost Factor Bldg. Cost Land Cost Replacement Cost Facilities SF Cost per SF 281 North College 281 N College Ave 37,603 $513 $19,290,339 $855,000 $20,145,339 City Hall 300 LaPorte Ave 31,553 583 18,401,710 1,306,358 19,708,068 215 N Mason Office 215 N Mason St 72,000 518 37,324,800 1,238,000 38,562,800 300 LaPorte (OPS Services) 300 LaPorte Ave 26,564 540 14,344,560 0 14,344,560 Streets Building 625 9th St 51,314 513 26,324,082 1,817,640 28,141,722 Traffic Operations Building 626 Linden St 9,500 540 5,130,000 424,440 5,554,440 Fleet / FACs Warehouse - Loomis 518 N Loomis Ave 10,122 432 4,372,704 22,050 4,394,754 IT Equipment ----------9,706,551 Subtotal 238,656 $525 $125,188,195 $5,663,488 $140,558,234 Fleet Quantity Cost per Unit Heavy Equipment 180 $112,554 $20,259,649 Misc. Maintenance Equipment 67 43,531 2,916,571 Vehicles, Trucks, and Trailers 96 52,782 5,067,109 Subtotal 343 $82,342 $28,243,329 Debt Principal 2012 COPS -$280,000 2019 COPS -13,780,260 Vehicle Equipment -2,543,294 Subtotal -$16,603,554 Total $152,198,009 Cost per Service Population Functional Population:203,952 $746.25 Source: City of Fort Collins; Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]17-Gen Gov_Inv. RC DR A F T Page 73 Item 1. 2023 Capital Expansion Fee Study 22 Residential Capital Expansion Fee Calculation For a single-family home or multifamily unit that is 1,890 square feet, the fee per unit is $1,362.74. This is based on an occupancy factor of 1.83 people adjusted for time spent at home, as shown in Table 19. The capital expansion fee was calculated for a range of unit sizes as currently permitted in the City of Fort Collins fee schedule. Table 19. General Government Residential Capital Expansion Fee, 2023 Nonresidential Impact Fee Using the previously derived service population and occupancy factors, the proposed nonresidential impact fee was calculated for three major land uses as shown in Table 20. Proposed capital expansion fees range from $0.41 per square foot for industrial uses to $1.58 per square foot for retail/commercial uses. Table 20. General Government Nonresidential Capital Expansion Fee, 2023 Description Factor Updated Fee Current Fee per unit per unit Cost per Service Population $746.25 Residential -- Up to 700 sq. ft.1.00 $745.25 $703.00 700 - 1,200 sq. ft.1.51 $1,128.52 $948.00 1,201 - 1,700 sq. ft.1.70 $1,266.93 $1,035.00 1,701 - 2,200 sq. ft.1.83 $1,362.74 $1,051.00 Over 2,200 sq. ft.2.08 $1,549.06 $1,170.00 Source: Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]18-Gen Gov-Res. Impact Fee Description Service Pop.Updated Fee Updated Fee Updated Fee Current Fee per 1,000 sq. ft.per 1,000 sq. ft.per sq. ft.per 1,000 sq. ft.per 1,000 sq. ft. Cost per Service Population $746.25 Nonresidential Retail/Commercial 2.12 $1,582.04 $1.58 $1,582.04 $1,777.00 Office 1.16 $865.64 $0.87 $865.64 $1,777.00 Industrial 0.55 $410.43 $0.41 $410.43 $419.00 Source: Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]19-Gen Gov-Non Res. Fee DR A F T Page 74 Item 1. APPENDIX: Peer Communities Impact Fee Comparisons DR A F T Page 75 Item 1. Appendix: 2023 Capital Expansion Fee Study 24 Table A-1. Comparison of Major Inputs: 2017 vs. 2023 Study Description 2017 2023 Update Difference % Change Household Size Up to 700 sq. ft.1.78 1.40 -0.38 -21.3% 700 - 1,200 sq. ft.2.40 2.12 -0.28 -11.7% 1,201 - 1,700 sq. ft.2.61 2.38 -0.23 -8.8% 1,701 - 2,200 sq. ft.2.65 2.56 -0.09 -3.4% Over 2,200 sq. ft.2.95 2.91 -0.04 -1.4% Non-Residential Occupancy Factors (Employees per 1,000 sq. ft. + Visitors) Retail/Commercial 2.25 2.12 -0.13 -5.8% Office and Other Services --1.16 ---- Industrial 0.53 0.55 0.02 3.8% Service Population Population --174,445 ---- Functional Population 157,626 203,952 46,326 29.4% Asset Value Neighborhood Parks $153,272,704 $350,566,728 $197,294,024 128.7% Community Parks 216,422,189 266,667,038 50,244,849 23.2% PFA Fort Collins 55,846,482 123,252,885 67,406,403 120.7% Police 31,264,546 77,990,689 46,726,143 149.5% General Government 100,991,253 152,198,009 51,206,756 50.7% Total $557,797,174 $970,675,349 $412,878,175 74.0% Source: Duncan Associates; Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]3-Comp to 2017DR A F T Page 76 Item 1. Economic & Planning Systems, Inc. 25 Table A-2. Current Residential Impact Fee Comparisons Fort Collins Land Use Type Current Boulder Cheyenne Greeley Loveland Longmont Residential (per dwelling) Single Family - 1,890 sq. ft $7,510.00 $5,918.00 $400.00 $6,213.00 $8,299.00 $8,325.17 Multi Family - 1,890 sq. ft.$7,510.00 $5,918.00 $400.00 $6,213.00 $5,721.00 $4,792.93 Residential (per dwelling) Single Family - 1,890 sq. ft $431.00 $482.00 $949.37 $280.00 $1,104.00 -- Multi Family - 1,890 sq. ft.$431.00 $482.00 $949.37 $280.00 $769.00 -- Residential (per dwelling) Single Family - 1,890 sq. ft $772.00 $430.00 --$728.00 ---- Multi Family - 1,890 sq. ft.$772.00 $430.00 --$728.00 ---- Residential (per dwelling) Single Family - 1,890 sq. ft $1,051.00 $759.00 ----$1,370.00 -- Multi Family - 1,890 sq. ft.$1,051.00 $759.00 ----$953.00 -- Residential (per dwelling) Single Family - 1,890 sq. ft $7,621.00 $228.00 $1,514.25 $7,213.00 --$2,060.56 Multi Family - 1,890 sq. ft.$7,621.00 $228.00 $1,211.40 $7,213.00 --$2,060.56 Residential (per dwelling) Single Family - 1,890 sq. ft $17,385.00 $7,817.00 $2,863.62 $14,434.00 $10,773.00 $10,385.73 Multi Family - 1,890 sq. ft.$17,385.00 $7,817.00 $2,560.77 $14,434.00 $7,443.00 $6,853.49 Source: City of Boulder; City of Cheyenne; City of Greeley; City of Loveland; City of Longmont; City of Fort Collins; Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]4-Res Example Parks Fire General Government Police Total Transportation DR A F T Page 77 Item 1. Appendix: 2023 Capital Expansion Fee Study 26 Table A-3. Current Nonresidential Impact Fee Comparisons Fort Collins Land Use Type Current Boulder Cheyenne Greeley Loveland Longmont Nonresidential (per 1,000 sq. ft.) Commercial $364.00 $790.00 $603.42 $841.00 $489.10 -- Office and Other Services $364.00 $320.00 $295.00 $452.00 ---- Industrial $85.00 $190.00 $518.63 $230.00 $62.70 -- Nonresidential (per 1,000 sq. ft.) Commercial $650.00 $680.00 --$1,872.00 ---- Office and Other Services $650.00 $980.00 --$1,006.00 ---- Industrial $152.00 $630.00 --$513.00 ---- Nonresidential (per 1,000 sq. ft.) Commercial $9,946.00 $600.00 $2,422.81 $8,347.00 --$3,340.00 Office and Other Services $7,327.00 $240.00 $1,817.11 $5,383.00 --$1,450.00 Industrial $2,365.00 $150.00 $1,817.11 $2,742.00 --$450.00 Nonresidential (per 1,000 sq. ft.) Commercial $1,777.00 $430.00 ----$526.70 -- Office and Other Services $1,777.00 $620.00 -------- Industrial $419.00 $400.00 ----$75.20 -- Nonresidential (per 1,000 sq. ft.) Commercial $12,737.00 $2,500.00 $3,026.23 $11,060.00 $1,015.80 $3,340.00 Office and Other Services $10,118.00 $2,160.00 $2,112.11 $6,841.00 $0.00 $1,450.00 Industrial $3,021.00 $1,370.00 $2,335.74 $3,485.00 $137.90 $450.00 Source: City of Boulder; City of Cheyenne; City of Greeley; City of Loveland; City of Longmont; City of Fort Collins; Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]5-Non-Res Comps Police Fire Transportation General Government TotalDR A F T Page 78 Item 1. Headline Copy Goes Here Engineering Marc Virata David Lenz April 9, 2024 Council Work Session: Impact Fee Discussion Financial Planning & Analysis Randy Reuscher Lead Rate Analyst -Utilities Page 79 Item 1. Headline Copy Goes Here 2 Agenda •Work to Date •Fee Study Findings and Utility Model Updates •Fee Credits and Offsets: City of Fort Collins and Comparatives •Next Steps and Questions Page 80 Item 1. Headline Copy Goes Here 3 Questions for Council Finance Committee •Prior to consideration of ordinances updating fees for 2025, what questions do Councilmembers have related to the Fee Studies and Utility model updates? •What policy considerations and/or options do Councilmembers want to investigate further? Page 81 Item 1. Headline Copy Goes Here Work to Date and Fee Study/Model Updates 4 Page 82 Item 1. Headline Copy Goes Here 5 Work to Date 2023 •Capital Expansion Fee (CEF) Study Update –Economic & Planning Systems, Inc. •Transportation Capital Expansion Fee (TCEF) Study Update -TischlerBise •Biennial Utility Fee Model updates •Water Supply Requirements: Additional analysis and outreach •Council Finance Committee: October and December update meetings 2024 •February: Council adoption of 2024 fees w/inflationary updates only: •5.6% for CEF •7.4% for TCEF and Utility Plant Investment Fees and Electric Capacity Fee •Continued assessment of Water Utility environment •Policy considerations to supplement existing fee credit program Page 83 Item 1. Headline Copy Goes Here Previous UpdatesUse of FeesPremise of Fees Transportation Capital Expansion Fees: Overview 6 •One-time fee from development and redevelopment •Used to support growth share related infrastructure improvements •Cannot be used for maintenance “Transportation Capital Expansion Fee Study” (2017), TischlerBise •2012 Transportation CIP •2014 Bicycle Master Plan •2010/2016 Arterial Intersection Prioritization Study •10 year build out through development •2016 Arterial Cost/Lane Mile ($1.4M) •Reimbursement to developers •Northfield reimbursement •Contribution to Capital Projects •Roadway projects (TCPPS) •Active Modes (Active Modes Plan) Page 84 Item 1. Headline Copy Goes Here 7 TCEF: Study Update Draft Fees •Generally, in range when compared to an inflation adjustment approach •(7.4% based on August 2022-August 2023 Engineering News-Record Denver City Cost Index) •Estimate $115M over the next 10 years to keep with anticipated growth needs and level of service Residential Unit Roadway Fee % of Total Active Modes % of Total Update Total 2023 Total Change % Change up to 700 sq. ft.Dwelling $2,863 91%$272 9%$3,135 $2,703 $432 16% 701-1,200 sq. ft.Dwelling $4,988 91%$487 9%$5,475 $5,020 $455 9% 1,201-1,700 sq. ft.Dwelling $6,363 91%$625 9%$6,988 $6,518 $470 7% 1,701-2,200 sq. ft.Dwelling $7,380 91%$726 9%$8,106 $7,621 $485 6% over 2,200 sq. ft.Dwelling $8,191 91%$809 9%$9,000 $8,169 $831 10% Development Type Unit Roadway Fee % of Total Active Modes % of Total Update Total 2023 Total Change % Change Commercial 1,000 sq. ft.$11,045 94%$702 6%$11,747 $9,946 $1,801 18% Office & Other Services 1,000 sq. ft.$6,450 86%$1,075 14%$7,525 $7,327 $198 3% Industrial 1,000 sq. ft.$2,897 75% $944 25% $3,841 $2,365 $1,476 62% Page 85 Item 1. Headline Copy Goes Here Previous UpdatesUse of FeesPremise of Fees Capital Expansion Fees: Overview 8 •New developments pay a proportionate share of costs to “buy-in” to the current level of services the City provides. •Paid upon application of a building permit and assessed by land use type. •The concept of growth paying for the impact of growth is a policy decision that past City Councils have made. •Duncan and Associates (2013 and 2017) •Adhered to the incremental expansion methodology •Updated asset values based on the cost of construction per sq. ft. •Additional capital added to General Government Fees •For approved capital expenditures identified in capital improvement plans. •Includes planning, design, surveying, permitting and engineering costs; the cost of purchasing or leasing real property and construction costs. •Does not, and generally cannot, include repair or maintenance costs. Page 86 Item 1. Headline Copy Goes Here 9 CEF: Study Update Draft Fees Overall •Residential Occupancy Factor decreases •Non-Residential Employee per sq. ft. adjustments •Additional Non-Residential category justified by different demand impact –Office and Other Services •Growing service population Residential Unit N'hood Park Comm. Park Fire Police Gen. Gov't Update Total 2023 Total Change % Change up to 700 sq. ft.Dwelling $2,813 $2,140 $604 $382 $745 $6,684 $6,593 $91 1% 701-1,200 sq. ft.Dwelling $4,260 $3,241 $914 $578 $1,129 $10,122 $8,844 $1,278 14% 1,201-1,700 sq. ft.Dwelling $4,783 $3,638 $1,026 $649 $1,267 $11,363 $9,652 $1,711 18% 1,701-2,200 sq. ft.Dwelling $5,145 $3,913 $1,104 $698 $1,363 $12,223 $9,764 $2,459 25% over 2,200 sq. ft.Dwelling $5,848 $4,448 $1,254 $794 $1,549 $13,894 $10,880 $3,014 28% Development Type Unit N'hood Park Comm. Park Fire Police Gen. Gov't Update Total 2023 Total Change % Change Commercial 1,000 sq. ft.$1,281 $811 $1,582 $3,674 $2,791 $883 32% Office and Other Services 1,000 sq. ft.$701 $444 $866 $2,010 $2,791 ($781) -28% Industrial 1,000 sq. ft.$332 $210 $410 $953 $656 $297 45% Page 87 Item 1. Headline Copy Goes Here 10 Utility Fees Overview Utility Finance updates their fund models every two years with inflationary adjustments generally made in the off-years Page 88 Item 1. Headline Copy Goes Here 11 Utility Fees –Model Updates Utility Fee​Model Update​s for 2024 Electric Capacity Fee (ECF)​14.8%​ Water Plant Investment Fee (PIF)​5.7% Wastewater Plant Investment Fee (PIF)​4.1% Stormwater Plant Investment Fee (PIF)​7.0% Water Supply Requirement (WSR)No Change Page 89 Item 1. Headline Copy Goes Here 12 Combined Fees Summary: Multi-Unit Residence •2024 is presented for both what is currently in force after the inflationary updates were approved and what the study/model updates total. •2025 rates presented reflect the 2024 study/model updates plus a projected assumption of 3.5%for inflation during 2024 in addition to the low/high estimate ranges for WSR. Actual Study Lo WSR Hi WSR Lo WSR Hi WSR CEF 448,585$ 460,753$ 469,536$ 509,916$ 538,471$ 587,572$ 608,137$ 608,137$ 11,057$ 11,057$ TCEF 160,512$ 161,403$ 173,366$ 185,675$ 199,415$ 209,865$ 217,210$ 217,210$ 3,949$ 3,949$ Dev Review/Permits/Other 67,695$ 67,846$ 58,850$ 58,850$ 58,850$ 58,850$ 60,910$ 60,910$ 1,107$ 1,107$ Water PIF 62,707$ 64,365$ 71,102$ 77,501$ 83,236$ 81,919$ 84,786$ 84,786$ 1,542$ 1,542$ Water Supply Requirement 245,004$ 252,354$ 196,039$ 196,039$ 196,039$ 196,039$ 172,181$ 334,876$ 3,131$ 6,089$ Wasterwater PIF 142,450$ 146,740$ 151,745$ 165,385$ 177,623$ 172,166$ 178,192$ 178,192$ 3,240$ 3,240$ Stormwater PIF 20,639$ 21,257$ 22,055$ 24,040$ 25,819$ 25,723$ 26,623$ 26,623$ 484$ 484$ Electic Capacity Fee 111,209$ 117,836$ 121,972$ 132,949$ 142,788$ 152,626$ 157,968$ 157,968$ 2,872$ 2,872$ Combined Fees 1,258,801$ 1,292,554$ 1,264,665$ 1,350,356$ 1,422,242$ 1,484,759$ 1,506,006$ 1,668,701$ 27,382$ 30,340$ Percentage Change Baseline 2.7% -2.2% 6.8% 5.3% 10.0% 11.5% 23.6% 11.5% 23.6% vs. 2020 vs. 2021 vs. 2022 2025 - $/Unit City Charged Fees: Multi-Unit Residence Example (48,000 sq. ft. development w/ 55 units) vs. 2023 Type 2020 2021 2022 2023 2024 2025 Page 90 Item 1. Headline Copy Goes Here 13 Combined Fees Summary: Single/Duplex Residence •2024 is presented for both what is currently in force after the inflationary updates were approved and what the study/model updates total. •2025 rates presented reflect the 2024 study/model updates plus a projected assumption of 3.5%for inflation during 2024 in addition to the low/high estimate ranges for WSR. Actual Study Lo WSR Hi WSR CEF 8,591$ 8,824$ 8,992$ 9,764$ 10,310$ 12,223$ 12,650$ 12,650$ TCEF 6,586$ 6,623$ 7,115$ 7,621$ 8,185$ 8,106$ 8,390$ 8,390$ Dev Review/Permits/Other 2,532$ 3,314$ 2,792$ 2,792$ 2,792$ 2,792$ 2,890$ 2,890$ Water PIF 4,084$ 4,192$ 4,393$ 4,807$ 5,162$ 5,081$ 5,259$ 5,259$ Water Supply Requirement 13,869$ 14,285$ 22,813$ 22,813$ 22,813$ 22,813$ 20,037$ 38,970$ Wasterwater PIF 3,590$ 3,698$ 3,824$ 4,168$ 4,476$ 4,339$ 4,491$ 4,491$ Stormwater PIF 1,119$ 1,153$ 1,197$ 1,305$ 1,402$ 1,397$ 1,446$ 1,446$ Electic Capacity Fee 2,855$ 3,025$ 3,764$ 4,391$ 4,716$ 5,041$ 5,217$ 5,217$ Combined Fees 43,226$ 45,114$ 54,891$ 57,662$ 59,856$ 61,792$ 60,379$ 79,313$ Percentage Change Baseline 4.4% 21.7% 5.0% 3.8% 7.2% 4.7% 37.5% vs. 2020 vs. 2021 vs. 2022 2022 2023 City Charged Fees: Single/Duplex Residence Example (1,890 sq. ft. floorplan) vs. 2023 2024 2025Type20202021 Page 91 Item 1. Headline Copy Goes Here Fee Credits and Offsets 14 Page 92 Item 1. Headline Copy Goes Here 15 Affordable Housing: City of Fort Collins Fee Credits •Prior to 2013, development fees for Affordable Housing were typically waived, especially for the City’s designated Housing Authority (Housing Catalyst) •Fee credit program started in 2013 and has gone through several iterations •Current state: •Flat credit of $14,000 per unit •Any affordable developer can access credits for 30% AMI units only •Affordable Housing Capital Fund (AHCF), funded via the CCIP Renewable Tax, is available for qualified projects –requires council appropriation for utilization •In 2022, an additional $350,000 of ARPA funding was appropriated for eligible projects •Units serving the lowest income households require extra subsidy to build, manage, and maintain; rents can’t be increased to cover the cost of the unit •Most affordable housing developments are multi-unit buildings with 1-3 bedrooms per unit •Fee categories “under 700 sq. feet” and “700-1,200 sq. feet” are most relevant to affordable projects Page 93 Item 1. Headline Copy Goes Here 16 Approaches to Incentivizing Affordable Housing –Fee Reductions Fort Collins Longmont Loveland Boulder Denver Colorado Springs Impact Fee Type / Structure Varies by dwelling size and Sq. ft. of non-residential Varies by dwelling size and sq. ft of non- residential Flat fee per unit type •Fees vary by dwelling size plus •Transportation Excise Taxes Water and Sewer tap fees Police/Fire/Parks with rates based on units/structure plus water taps Eligibility / Framework •30% AMI •80% AMI –Sale •50% AMI –Rental •Minimum 12% Inclusionary housing •80% AMI •Less than 30% of income on housing •25% inclusionary housing requirement Tiered Options •Hi / Lo-cost markets •Sale/Rental •Minimum of: 8% @ 60% AMI to 15% @ 90% AMI •All units reserved for below 120% AMI Other Program Items 2022 ARPA funding Fee Deferral –pay at certificate of occupancy Investigating variance of fees by dwelling size Non-Residential Linkage Fee charged based on job generation Incentives: •Reduced parking space requirements Point system rebate based on scoring rubric Amount $14K per unit –fixed fee credit Fee Waivers For Sale Units: 50 –100% Rental Units: 20 –50% 100% Fee waiver for non-profits using Low Income Housing Tax Credit TBD -researching $6.5K -$10k capped at 50% of total fees 0 –100% fee rebate Funding Sources Affordable Housing Capital Fund (AHCF) or General Fund Affordable Housing Fund funded by fee-in- lieu and allocated local funds General Fund Revenue from linkage fees funds Affordable Housing fund Linkage fee for projects with 9 or fewer units Housing /Community Vitality Department & Utilities Dept Page 94 Item 1. Headline Copy Goes Here 17 Fee Credits/Reductions: Options to Consider •Continue program operation as it is today –credits can be used toward fees paid from AHCF for 30% AMI units •Waive some or all fees for 30% AMI units •Waive some or all fees for a broader income range •Create a tiered approach where fees are waived for some units (e.g., 30-50% AMI) and partially credited for others (e.g., 60% AMI and above) Fee offsets will generally need backfill to fund levels of service Options Annual Cost Estimate / Backfill Requirement 1 Keep fee credit program as is –flat credit of $14,000 per unit (~ 58% of fees for 30% AMI units) –25 units per year $350,000 2 Increase to maintain current ratio of fees covered for 30% AMI units (~ 64% of fees for 30%AMI units) –25 units per year $360,000 -$380,000 3 Increase to cover all fees for 30%AMI units (100% of fees for 30% AMI units) –25 units per year $560,000 -$595,000 4 Expand to cover some or all fees for a wider AMI range 4A 40% AMI or below –40 units per year $950,000 -$950,000 4B 50% AMI or below –85 units per year $1.9 -$2.0 million 4C 60% AMI or below –125 units per year $2.8 –$2.9 Million 4D 70% AMI or below –165 units per year $3.7 –$3.9 million 4E 80AMI or below –(all affordable housing) –185 units per year (City’s commitment under proposition 123) $4.2 –$4.4 million Page 95 Item 1. Headline Copy Goes Here Next Steps and Questions 18 Page 96 Item 1. Headline Copy Goes Here 19 Next Steps •Evaluate and incorporate Councilmembers’ feedback on fee structures, policy considerations and options. •Continue coordination with Utilities for consolidated approach to 2025 fee updates and schedules. Page 97 Item 1. Headline Copy Goes Here 20 Questions for Council Finance Committee •Prior to consideration of ordinances updating fees for 2025, what questions do Councilmembers have related to the Fee Studies and Utility model updates? •What policy considerations and/or options do Councilmembers want to investigate further? Page 98 Item 1. Headline Copy Goes Here Appendix 1 –Fee Study Detail 21 Page 99 Item 1. Headline Copy Goes Here 22 TCEF: 2023 Study Update (TischlerBise) TCEF 2023 Study Update Methodology •Roadway Capacity: Incremental Expansion Methodology (same as previous TCEF study) •Active Modes Component: Plan Based Methodology Data inputs •North Front Range MPO and census data to update demand from development •Growth Share of Plans •2023 Transportation Capital Projects Prioritization Study (TCPPS) •2022 Active Modes Plan •10-year buildout of additional lane miles through development •Arterial Cost per Lane Mile ($2.0M) •Travel Diary Study Report Page 100 Item 1. Headline Copy Goes Here 23 TCEF: 2023 Study Update (TischlerBise) •Roadway Capacity: Incremental Expansion Methodology •Projected 10-year needs of transportation infrastructure (in terms of lane miles) •TCPPS projects that are growth related •Development construction of additional lane miles •Evaluates the growth share of infrastructure that's attributable to development impact •Impact is based on Vehicle Miles Traveled (VMT) •Vehicle trip length from Travel Diary Survey (4.9 miles) •Roadway Capacity Analysis •13% increase in VMT •61.9 new lane mile needs over 10 years to maintain current LOS •7% (4.3 lane miles) of trips on roadway network is external-external trips •$8.6M out $124M of our roadway capacity needs not attributable to growth/TCEF •57.6 miles attributed to growth Page 101 Item 1. Headline Copy Goes Here 24 TCEF: 2023 Study Update (TischlerBise) •Active Modes Component: Plan Based Methodology •10-year growth related cost compared to 10-year growth projection •High and Medium priority Active Modes Projects ($87M) •Active Modes Plan Analysis •From $87M of High & Medium priority Active Modes Plan projects 13% ($11M) attributed to 10-year growth •Based on demand from residential and nonresidential development and allocated based on the percent of commuters who walk or bike to work (22% active modes Travel Study Log) •Active Modes Plan share increase from 2017 (4%) to 2023 (9%) Page 102 Item 1. Headline Copy Goes Here 25 CEF: 2023 Study Update (Economic & Planning Systems, Inc.) •Standards Based or “Incremental Expansion” Approach •Maintains the current level of service or investment per unit of development •Replacement/Construction cost valuations •Offsets for debt funding •Adjustments by land use type and occupancy factors •Key Data inputs •Updated 2023 asset inventories for City of Fort Collins and Poudre Fire Authority •Neighborhood and Community Park development costs and current land valuation estimates •Current market cost of construction estimates and Larimer County valuations •Updated residential household size and non-residential occupancy factors •Alignment of existing conditions with concurrent TCEF Study Update Page 103 Item 1. Headline Copy Goes Here 26 CEF: 2023 Study Update (Economic & Planning Systems, Inc.) •Parks •Higher land valuations •Inclusion of East District Maintenance Facility •Neighborhood Parks –higher development costs reflective of newest park buildouts •Police and Fire •Significant Asset Value increases –Additional Equipment and Facilities and Higher unit replacement costs •General Government •Increased Asset Values but lower increases relative to Police and Fire Page 104 Item 1. Headline Copy Goes Here 27 CEF: Study Detailed Updated Draft Fees CEF - Update Residential Unit N'hood Park Comm. Park Fire Police Gen. Gov't Update Total up to 700 sq. ft.Dwelling $2,813 $2,140 $604 $382 $745 $6,684 701-1,200 sq. ft.Dwelling $4,260 $3,241 $914 $578 $1,129 $10,122 1,201-1,700 sq. ft.Dwelling $4,783 $3,638 $1,026 $649 $1,267 $11,363 1,701-2,200 sq. ft.Dwelling $5,145 $3,913 $1,104 $698 $1,363 $12,223 over 2,200 sq. ft.Dwelling $5,848 $4,448 $1,254 $794 $1,549 $13,894 Development Type Unit N'hood Park Comm. Park Fire Police Gen. Gov't Update Total Commercial 1,000 sq. ft.$1,281 $811 $1,582 $3,674 Office and Other Services 1,000 sq. ft.$701 $444 $866 $2,010 Industrial 1,000 sq. ft.$332 $210 $410 $953 CEF - Change $ Residential Unit N'hood Park Comm. Park Fire Police Gen. Gov't Change Total up to 700 sq. ft.Dwelling $705 ($837)$88 $93 $42 $91 701-1,200 sq. ft.Dwelling $1,438 ($744)$216 $187 $181 $1,278 1,201-1,700 sq. ft.Dwelling $1,701 ($713)$267 $224 $232 $1,711 1,701-2,200 sq. ft.Dwelling $2,031 ($483)$332 $267 $312 $2,459 over 2,200 sq. ft.Dwelling $2,378 ($453)$395 $314 $379 $3,014 Development Type Unit N'hood Park Comm. Park Fire Police Gen. Gov't Change Total Commercial 1,000 sq. ft.$631 $447 ($195)$883 Office and Other Services 1,000 sq. ft.$51 $80 ($911) ($781) Industrial 1,000 sq. ft.$180 $125 ($9)$297 CEF - Change % Residential Unit N'hood Park Comm. Park Fire Police Gen. Gov't Change % up to 700 sq. ft.Dwelling 33%-28%17%32%6%1% 701-1,200 sq. ft.Dwelling 51%-19%31%48%19%14% 1,201-1,700 sq. ft.Dwelling 55%-16%35%53%22%18% 1,701-2,200 sq. ft.Dwelling 65%-11%43%62%30%25% over 2,200 sq. ft.Dwelling 69%-9%46%65%32%28% Development Type Unit N'hood Park Comm. Park Fire Police Gen. Gov't Change % Commercial 1,000 sq. ft.97% 123%-11%32% Office and Other Services 1,000 sq. ft.8% 22%-51% -28% Industrial 1,000 sq. ft.119% 147%-2%45% CEF - 2023 Fees Residential Unit N'hood Park Comm. Park Fire Police Gen. Gov't 2023 Total up to 700 sq. ft.Dwelling $2,108 $2,977 $516 $289 $703 $6,593 701-1,200 sq. ft.Dwelling $2,822 $3,985 $698 $391 $948 $8,844 1,201-1,700 sq. ft.Dwelling $3,082 $4,351 $759 $425 $1,035 $9,652 1,701-2,200 sq. ft.Dwelling $3,114 $4,396 $772 $431 $1,051 $9,764 over 2,200 sq. ft.Dwelling $3,470 $4,901 $859 $480 $1,170 $10,880 Development Type Unit N'hood Park Comm. Park Fire Police Gen. Gov't Current Total Commercial 1,000 sq. ft.$650 $364 $1,777 $2,791 Office and Other Services 1,000 sq. ft.$650 $364 $1,777 $2,791 Industrial 1,000 sq. ft.$152 $85 $419 $656 Page 105 Item 1. Headline Copy Goes Here Appendix 2: Affordable Housing Fee Offsets – Comparative Municipal Approaches 28 Page 106 Item 1. Headline Copy Goes Here 29 Longmont •Impact fees vary by home size •Affordable Housing Definition: For-Sale 80% AMI, Rental 50% AMI •12% inclusionary housing requirement •Fee Deferral: Pay fees at CO instead of Permit Issuance •Waivers and discounts are available only if a project exceeds the 12% minimum requirement •Some fees are waived with no backfill, others are offset using the City’s Affordable Housing Fund (discretionary) •The City’s Affordable Housing Fund is funded by IH Fee-in-lieu and allocated local funds •50% to 100% waiver for for-sale units, 20% to 50% for rental units Page 107 Item 1. Headline Copy Goes Here 30 Loveland •Affordable Housing Definition: 80% AMI •100% Fee Waiver for non-profit builders and developers utilizing LIHTC for 80% AMI (recently passed) •Loveland Affordable Housing Task Force •Partnership with the City •Examining options to restructure impact fees and water fees to vary by home size •Current fees are charged as a flat fee per unit •The fee waivers are currently backfilled by the City’s General Fund Page 108 Item 1. Headline Copy Goes Here 31 Boulder •Capital impact fees vary by home size •$4,400-$11,500 based on home size •Non-residential: $0.58 per sq. ft. to $2.16 per sq. ft. based on land use •Transportation excise tax in addition to impact fees •$2.48/ non-residential square foot •$4,128.12 per SFD; $2,995.02 per attached dwelling •Transportation impact fee is low to avoid double charging ($100-$300/unit) •Inclusionary Housing Requirement •25% for project with more than 5 units •20% for smaller developments including single-family homes •Affordable Housing Definition: Households spend less than 30% of their income on housing, adjusted annually using market data •Non-residential linkage fees •Affordable housing impact fee: linkage between job generation and affordable housing demand •Ranges from $10.45 per sq. ft. to $31.35 per sq. ft. based on land use type and wages Page 109 Item 1. Headline Copy Goes Here 32 Denver •No capital impact fees, only water and sewer tap fees •Inclusionary housing requirement for projects with 10 or more units •Option 1: •High-cost markets: Rental 10% at 60% AMI, For-sale 10% at 80% AMI •Typical markets: Rental 8% at 60% AMI, For-sale 8% at 80% AMI •Option 2: •High-cost markets: Rental 15% at 70% AMI avg., For-sale 15% at 90% AMI avg. •Typical markets: Rental 12% at 70% AMI, For-sale 12% at 90% AMI •Base incentives: •Reduce parking by 0.5 spaces/unit •$10,000 permit fee reduction per unit in high markets; $6,500/unit in typical marks not to exceed 50% of total permit fees •Linkage fees apply projects with 9 or fewer units •Residential: Increases to $5.00 to $8.00 per square foot as of 7/1/2025 •Nonresidential: Increases to $6.00 to $9.00 per square foot as of 7/1/2025 ($2.50 industrial) •No fee waiver program Page 110 Item 1. Headline Copy Goes Here 33 Colorado Springs •Capital Expansion fees for Police, Fire, Parks plus Utility water Tap Fees •Fee Rebate Program based on point system ranging 0 to 50 points •All Units reserved for residents under 120% AMI •Score criteria: •Up to 10 points for % of units reserved at 50% AMI or below; •Up to 10 points for ongoing affordability; •Up to 3 points for every additional unit above Section 504 requirements (i.e., accessible units); •Up to 5 points for unit set-aside for special needs or veterans experiencing homelessness; •Up to 4 points for incorporating 7 principles of universal design; •Up to 8 points for alignment with City Planning Documents; •Up to 4 points for being located in a High Opportunity Neighborhood; •Up to 6 points for incorporation of CSU Conservation Programs •Score breakdown: 46-50: 100% fee rebate; 41-45: 80% fee rebate; 36-40: 60% fee rebate; 31-35: 40% fee rebate; 26-30: 20% fee rebate; 25 and below: 0% fee rebate •Funded by Housing and Community Vitality Department and Utilities Department Page 111 Item 1. City Council Work Session Agenda Item Summary – City of Fort Collins Page 1 of 8 April 9, 2024 WORK SESSION AGENDA ITEM SUMMARY City Council STAFF Jason Graham, Director of Water Utilities Jen Dial, Utilities Water Resources Manager Heather Young, Utilities Community Engagement Manager SUBJECT FOR DISCUSSION Water Supply Requirements, Excess Water Use Charges, and Non-Residential Allotments. EXECUTIVE SUMMARY The purpose of this item is to provide Council and the community with an update on the project plan and analysis regarding three related items for Fort Collins Utilities (Utilities) water customers: ● Revisions to the Water Supply Requirement (WSR) fee methodology; ● Revisions to the excess water use surcharge (surcharge); and ● Assignment of annual water allotments (allotments) for non-residential customers, specifically, pre- 1984 non-residential accounts (pre-1984 accounts) that currently do not have allotments. The feedback from this Work Session will be considered and addressed at the July 16 Work Session. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. What questions do Councilmembers have on the potential methodologies and analysis of setting a WSR fee and associated surcharge? 2. What questions do Councilmembers have regarding assigning allotments to non-residential customers that do not currently have allotments? 3. What questions do Councilmembers have on the potential methodologies for calculating allotments for non-residential customers? 4. What feedback do Councilmembers have on the overall plan and timeline for implementation? BACKGROUND/DISCUSSION Utilities has been proactive in securing and developing a high-quality, reliable water supply system since the late 1800s and has implemented policies to ensure the water supply system will support existing and future water customers through the 2065 planning horizon. These efforts continue in support of Council’s priority to Protect Community Water Systems in an Integrated Way to Ensure Resilient Water Resources Page 112 Item 2. City Council Work Session Agenda Item Summary – City of Fort Collins Page 2 of 8 and Healthy Watersheds. Financial mechanisms to help achieve this priority include a WSR fee which is a one-time variable development fee required for each new water service; allotments which are assigned to non-residential customers based on a their WSR; and surcharges, a monthly charge, for non-residential customers who exceed their allotment during a 12-month period. Over the past several years, the cost to develop Utilities’ water supply has increased due to water scarcity, driven by climate change impacts such as drought and higher regional water demands/competition. Infrastructure costs have increased as well due primarily to inflation which contributes to the overall WSR development costs. This prompted staff to reevaluate the WSR fee and methodology, which was last evaluated in 2022 and set at $68,200 per acre-foot (AF). In August 2023, staff presented Council a revised WSR fee methodology and a proposed WSR fee and surcharge increase. Following that work session, Council feedback included:  Provide WSR options for Council to consider when this item is brought back for consideration.  Provide clarification on the need for 500 AF of additional water rights.  Develop a comprehensive City-wide team to analyze and develop a solution that reflects both the economic value of the WSR and the values of the community.  Engage with multiple Boards and Commissions, and those directly affected to ensure the recommended path forward captures the concerns, challenges, and opportunities of all in the community. The surcharge amount is determined by the WSR fee and non-residential customers with allotments are affected by higher surcharges if the fee increases. There are approximately 1,000 accounts (approximately 700 customers) that received a water tap before 1984 and do not have an allotment assigned. These customers can use as much water as they would like without being subject to a surcharge. Staff is recommending the assignment of allotments to these non-residential accounts to create consistency among customers and increase fairness by requiring all customers to be subject to a surcharge, and help customers more closely manage their water use. Based on Council’s comments at the Work Session staff has developed a project plan and an inter- departmental team dedicated to this project. Staff has begun: 1) Evaluating methods for calculating the WSR fee and the associated impacts. 2) Evaluating methods for calculating allotments and associated impacts. 3) Creating a strategic and thorough outreach plan. WSR: Methodologies, Impacts, Communication and Engagement Methodologies According to the American Water Works Association’s ‘Seventh Edition of Water Rates, Fees, and Charges,’ there are three basic methodologies for calculating a WSR fee. They are based on a water provider’s water rights portfolio, infrastructure, and the ability of the current water supply system to serve existing versus future customers. These methods include:  Full Buy-In Method: Values the entire existing water supply system, which is expected to service all current and future customers’ water value. Future customers would then buy into the entire current system (total value of system/total yield). Page 113 Item 2. City Council Work Session Agenda Item Summary – City of Fort Collins Page 3 of 8  Incremental Method: Based on the cost to expand the water supply system to serve future customers. This fee only reflects the cost of buying water rights and paying for infrastructure needed to support future customers.  Hybrid Method: Includes a buy-in component that is the portion of the current water supply system, and an incremental portion that is the portion of the system that has not been purchased or built yet. It acknowledges that future customers will use both current and future water supply systems and thus reflects the percentage of the total cost of the current and future system that will serve those customers. Utilities has been using a hybrid approach since 2018 and recommends continuing with this approach. Utilities owns water rights that new customers will rely on, reflecting a “buy-in” portion of costs. Utilities also needs to build new infrastructure (primarily storage in Halligan Reservoir) and purchase an additional 500 acre-feet of water rights, reflecting an “incremental” portion of costs. Modeling indicates that the addition of 500 AF to our existing water rights portfolio along with storage in Halligan Reservoir provides the water supply needed to meet demands through build out in 2065. The buy-in portion of the WSR fee can be valued with a market-based approach or a cost-based approach. The current methodology uses a market-based approach. The market-based approach uses the current market value for the existing water rights portfolio based on recent transactions of water rights. The cost- based approach uses the original purchase price of the water rights escalated by an inflation percentage to reflect their value in today’s dollars. The cost-based approach results in a lower WSR fee than the market-based approach because the water supplies were generally acquired long ago, before recent and significant water rights cost increases. The incremental portion of the fee uses the market-based approach to value the water rights that need to be purchased and the future infrastructure that needs to be constructed. Other factors that can be reflected in the WSR fee include a 30% contingency factor and a 20% safety which are both included in the current methodology. The contingency factor represents uncertainties in the cost of future water rights and infrastructure and is not applied to the buy-in portion of the WSR fee. The safety factor represents uncertainties in future water supply and demand needs such as potential impacts of climate change and type or rate of development and re-development and is applied to the entire WSR fee. Staff has evaluated WSR fees using the current hybrid methodology with the different approaches of valuing the “buy-in” component (market/cost) and the inclusion/omission of a safety factor as described below. These approaches are proposed because they best reflect the value of the water supply system and community: Page 114 Item 2. City Council Work Session Agenda Item Summary – City of Fort Collins Page 4 of 8 Impacts Future Development/Redevelopment All water service providers in the region require some form of WSR for development or redevelopment. The methodologies used and the required water dedications differ making comparisons challenging. For most water providers, the cost required of developers depends on: 1. The fee per acre-foot of water ($/AF) 2. The amount of water required (AF) Where, Total Cost=fee per AF of water x the amount of water required (AF) Utilities currently has a higher fee per acre-foot compared to other water providers in the region. However, the amount of water required for dedication for different developments is sometimes less. For example, applying the current WSR fee to the amount of water required for a multi-family development costs $291,200 in Fort Collins Utilities service area compared to East Larimer County Water District at $670,900 and Fort Collins-Loveland Water District at $1,310,200 (see table below): Page 115 Item 2. City Council Work Session Agenda Item Summary – City of Fort Collins Page 5 of 8 On the other hand, Utilities would require a median cost for an office building and higher costs for a typical restaurant compared to other water providers. Existing Customers: Rates vs. Fees Monthly water rates and development fees are the two main sources of revenue to the water fund. Currently, development fees are meant to support the value of growth paying it’s on way. its own way Water development fees can be further broken down into: 1) WSR fee: One-time fees geared towards cost recovery of storage and source of supply projects. Plant investment fees: One-time fees geared towards recovery of the water treatment plant and distribution system. A significant portion of water fund revenue is collected from monthly utility rates, equating to roughly 95% of total revenue each year on average. The remaining 5% is from development fees and surcharges, although there are variations in this ratio, and fluctuations are tied to development projects (or redevelopment) that occurs in Utilities service territory. Page 116 Item 2. City Council Work Session Agenda Item Summary – City of Fort Collins Page 6 of 8 Routine updates to the WSR fee, as well as the excess water use surcharge, will help the Utility keep pace with increasing costs and provide a recovery mechanism for both current and future source of supply and water storage projects. The methodology being considered to calculate the WSR fee will have an impact to existing rate payers, both now and into the future. Assigning New Allotments to Pre-84 Non-residential Customers As noted above, staff recommends assigning allotments to pre-84 non-residential customers that do not have one. This will:  Provide better consistency across non-residential customers.  Provide increased fairness by requiring all customers to manage water efficiently and be subject to a surcharge if they do not: as WSR and surcharges increase, the gap between those with allotments and those without will grow.  Promote water conservation by assigning appropriate allotments and focusing water efficiency programs to customers that use over that allotment.  Address these assignments now rather than in the future when WSR and surcharges could be greater and more challenging for customers to manage. Important considerations:  Staff is not recommending that additional WSR be met with the assignment of an allotment.  Customers will need time to understand their allotment, how they use water, and how to budget their water within their allotment.  This does not re-evaluate existing allotments. Page 117 Item 2. City Council Work Session Agenda Item Summary – City of Fort Collins Page 7 of 8 Methodologies and Impacts After evaluating a variety of methods for assigning allotments, staff is recommending the Hybrid approach. Pros and cons from the evaluation are listed below. 1) Tap Size a. Assigns allotment based on meter size (method used to assign allotments from 1984-2022). b. Some customers would receive a smaller allotment than they currently use subjecting them to surcharges. c. 181 accounts (18%) would exceed their allotment based on their 7-year maximum use. d. Consistent with code prior to 2022. 2) Average Use a. Assigns an allotment based on average historical water use per tap (e.g. average annual use from past 5, 7, or 10 years of use). b. Reflects actual water use but doesn’t always reflect or identify inefficiencies in use. c. Lower impact from surcharges. Unless there’s significant growth or changes in business use and function, annual consumption is expected to be around the allotment. d. 1,026 accounts (99.5%) would exceed based on their 7-year maximum use. e. Inconsistent with current and historical codes. 3) Hybrid a. Assigns an allotment based on the greater of the tap credit or average consumption. b. Could assign a higher allotment than needed making it difficult to address or identify inefficiencies in water use. c. Lowest impact to pre-84 customers. d. 181 accounts (18%) would exceed based on their 7-year maximum use, but the magnitude of the impact would be less. e. Inconsistent with historic and current code. 4) Business Type a. Allotments are assigned based on the specific use (e.g. # of rooms in a hotel, square footage of a restaurant, outdoor water demands based on landscape details, etc.). b. More accurate but cannot evaluate the potential impacts to customers without collecting the data necessary to assign the allotment. c. Consistent with current code, but inconsistent with majority of existing allotments (only 44 accounts have been assigned this way since 2022). Page 118 Item 2. City Council Work Session Agenda Item Summary – City of Fort Collins Page 8 of 8 Communication and Engagement Utilities plans to communicate with customers and impacted community members so people can provide input during the project’s decision-making process. New development and redevelopment will be impacted directly by increases to the WSR fee, whereas allotment assignments and surcharges will impact current customers. Our goal is to capture questions, concerns, and feedback so interested parties are informed in advance of a potential fee increase, and Utilities and Council can consider a variety of impacts. Staff developed a detailed plan to engage City Council, multiple boards and commissions, existing customers, developers, and affected City departments (see Attachment ‘2024 WSR Engagement Timeline’).  Phase 1 (April – June 2024): Broad engagement and feedback collection  Phase 2 (July – September 2024): Refine proposal and incorporate feedback.  Phase 3 (October – December 2024): Seek adoption and plan for implementation. Specific Engagement Goals Include: 1. Educate and inform stakeholders on WSR, surcharges, and allotments o Provide opportunities for stakeholders to ask questions and learn more o Provide time for behavior change (purchasing more WSR, participating in conservation programs, etc.) 2. Involve stakeholders in decision-making process o Stakeholders can provide feedback on alternatives or propose others that meet objectives before adoption, and weigh in on project implementation o Seek out multiple perspectives and consider equity in decision making o Consider different formats for implementation (e.g. grace period such as assigning allotments Jan. 1, 2025 and waive surcharges until Jan 1, 2026, allow customers to purchase more WSR under the current cost until Jan 1, 2026) 3. An updated fee structure is adopted by Council o Provide Council education and resources to understand this topic o Council adoption NEXT STEPS 1) Collect feedback from communication and engagement efforts for WSR fees and assignment of allotments. 2) Evaluate feedback from Council and communication efforts. 3) Present additional analysis or information based on feedback to Council at the July 16 Work Session. ATTACHMENTS 1. 2024 WSR Engagement Timeline 2. Presentation Page 119 Item 2. Engagement Timeline 2024: Water Supply Requirements, Excess Water Use Fees, and Allotment Assignments Phase One (April-June): Broad engagement and feedback collection  Council Work Session 1  Chamber of Commerce Local Legislative Affairs Committee  Community Engagement Group Meeting 1  OurCity page launches  Email communication 1, launch short survey (English and Spanish)  E-Newsletters (Economic Health Office, Keep Current)  City Manager Monthly report  Commercial Broker List  1:1 meetings with impacted parties (Key accounts, developers, etc.)  Board and Commissions o Affordable Housing Board (memo only) o Building Review Commission (memo only) o Natural Resources Advisory Board (memo only) o Economic Advisory Board o Planning and Zoning Commission o Water Commission  Internal staff Lunch and Learn  Council Finance Committee  Business Listening Sessions (2-3, virtual, in person)  Webinar for customers without an allotment (+office hours)  Monthly gathering of affordable housing providers/developers  Urban Land Institute Northern Colorado  Community Engagement Group Meeting 2  Email communication 2, survey reminder Phase Two (July-September): Refine proposal, incorporate feedback  7/16: Council Work Session 2  Email communication 3  Water Commission Work Session  Planning and Zoning Commission Work Session  Community Engagement Group Meeting 3  Water Commission  Planning and Zoning Commission Hearing Phase Three (October-December): Seek adoption  City Council First Reading  City Council Second Reading  Email communication 4  Community Engagement Group Meeting 4 (implementation focus)  2025 implementation outreach Page 120 Item 2. Headline Copy Goes Here Utilities Water Resources Manager Jen Dial Executive Director of Water Utilities Jason Graham 4-9-2024 Water Supply Requirements and Pre-1984 Non-Residential Water Allotments Heather Young Utilities Community Engagement ManagerPage 121 Item 2. Headline Copy Goes HereCouncil Work Session Purpose 1.Build shared understanding of the history and purpose of Water Supply Requirement fees and pre-1984 non-residential water allotments. 2.Share staff’s analysis of potential methodologies for Water Supply Requirement fees and assigning pre-1984 non- residential water allotments. 3.Share staff’s planned customer engagement for 2024, including a timeline and identification of impacted parties. 4.Answer Council questions and confirm direction and timing.Page 122 Item 2. Headline Copy Goes HerePurpose –Water Supply Requirements and Water Allotments A form of Water Supply Requirements (WSR) and water allotments has been in place since the mid-1960s. The purpose is to: •Ensure secure water sources and protect the watershed •Provide a financial mechanism to ensure current and future assets are adequate to meet community water supply and service needs •Balance current needs and supply and future potential needs and acquisitions Page 123 Item 2. Headline Copy Goes HereTimeline April 9Work Session April/May Aug./Sept.2025Oct./Nov.June/July TBD Work Session ImplementationWater Commissionand Other Boards Continue Engagement TBD First and Second Reading Regular Meetings MayCouncil Finance Committee Initiate Engagement July 16 Work Session Planning & Zoning and Other Boards Wrap Up Engagement Page 124 Item 2. Headline Copy Goes HereProgress Check-in August 2023 Work Session Summary •Provide clarification on the need for additional future water rights •Provide Council new options to consider •Develop a City-wide team to analyze and develop a solution that reflects economic and community values •Engage with Boards and Commissions and impacted parties to ensure the recommended path forward captures the community’s concerns, challenges and opportunities Current Project Plan •Interdepartmental team created •Develop options using various methodologies •Additional analysis including future water rights needs •Full outreach plan including feedback groupPage 125 Item 2. Headline Copy Goes HereWater Supply Requirements, Water Allotments, and Dedication Water Supply Requirement Fee paid by new development and some redevelopment to ensure adequate water dedication to serve. Residential and Non-Residential Customers Water Allotment A volume of water dedicated to a non-residential user. Two-thirds of non-residential accounts have assigned allotments. Based on WSR Excess Water Use Surcharge A charge assessed to non-residential accounts with allotments when they exceed their allotment. Based on Allotment Page 126 Item 2. Headline Copy Goes HereWSR Methodology •All regional water service providers have a version of a WSR development fee •Total fee varies based on water rights portfolio, infrastructure and ability to support existing and future customers to meet community values •Water scarcity and demand drive the cost of acquiring new water and impacts the value of our water rights portfolio Page 127 Item 2. Headline Copy Goes HereWater Fund Inputs Water Utility Rates Rates paid by existing customers make up approximately 95% of the water fund revenue. Development/Redevelopment Fees New development and redevelopment within the water service area make up approximately 5%. Development/Redevelopment The rate of development can be unpredictable and water costs can play a part in where development occurs. Future Storage Cost Future storage has been identified through the Halligan Water Supply Project. Costs estimates of this project have doubled. Water Rights Additional water rights necessary to meet 2065 projected demands. Additional Storage Storage is needed for existing and future use. 5% 95% Page 128 Item 2. Headline Copy Goes HereQuestions for Council Water Supply Requirements 1.What questions do Councilmembers have on the potential methodologies and analysis of setting a WSR fee and associated surcharge? Non-Residential Allotments 2.What questions do Councilmembers have regarding assigning allotments to non-residential customers that do not currently have allotments? 3.What questions do Councilmembers have on the potential methodologies for calculating allotments for non- residential customers? Overall Plan and Timeline 4.What feedback do Councilmembers have on the overall plan and timeline for implementation? Page 129 Item 2. Headline Copy Goes Here Jen Dial, Utilities Water Resources Manager WSR Pricing Methodologies Page 130 Item 2. Headline Copy Goes HereOverview of Methodologies Full Buy-In •Cost of the entire existing water supply system which is expected to serve all existing and future customers. •Future customers buy in to the entire current system (total value of system/total yield). Incremental •Cost to expand the water supply system to serve future customers. •Only reflects the cost of future water rights and infrastructure. Hybrid •Includes a “buy-in” component for the current water supply system and an “incremental” component for the future water system needs that have not yet been purchased or built. •Acknowledges future customers will use portions of the current and future water supply systems. Page 131 Item 2. Headline Copy Goes HereWSR Historical Methodology ›Re-evaluating options within the hybrid methodology ›Different from August proposal ›Market vs. cost-based valuations ›Analysis of current risk factors (contingency/safety) 2002-2017 ›2018: $17,300/AF using hybrid method with market-based costing ›2020: $21,500/AF, updated costing ›2021: $22,145/AF, added 3% inflationary increase 2018-2021 ›$68,200/AF, same methodology with updated yields 2022-current ›$6,500/AF, based on Colorado Big- Thompson (CBT) prices 2025-future Page 132 Item 2. Headline Copy Goes HereCurrent Methodology Overview HYBRID Buy-in Existing water rights and infrastructure Incremental Future water rights andinfrastructure Total cost to increase reliability of water supply Note: Future water supplies do not provide adequate reliability without existing portfolio Page 133 Item 2. Headline Copy Goes HereWater Supply Requirement Fee WSR = Existing Water + Future Water rights & Infrastructure Can determine past purchase prices and costs. Options on how to value: •Market price in today’s dollars •Cost of what was paid plus an adjustment factor Buy-In Existing Water Rights and Infrastructure Incremental Future Water Rights and Infrastructure Requires modeling and predicting costs of future water supply needs. Options on how to value: •Market-based •Contingency •Safety factor Page 134 Item 2. Headline Copy Goes HereHybrid Method Pricing Options *Contingency: Captures uncertainties in future costs **Safety factor: Captures uncertainties in future demand and supplies (e.g.,climate change, development types, etc.) Method Cost Considerations Market-based 30% contingency* 20% safety factor** $116,500/AF •Current approach with updated costs •Highest impact to developers Market-based 30% contingency $97,100/AF •Safety factor removed Cost-based, 30% contingency 20% safety factor $71,800/AF •Development costs reflect Utilities’ investment in water rights proactively (since late 1800s) Cost-based 30% contingency $59,900/AF •Safety factor removed •Lower than current fee •Highest impact to existing customers Page 135 Item 2. Headline Copy Goes HereMulti-Family Total Water Supply Requirement (Indoor & Outdoor) 2024 Multi-Family 100 bedrooms, 64 dwelling units, 30,504 sq. ft. lot area, 5,535 sq. ft. irrigated area Provider Dedication Amount (acre-feet) Water Fee ($/acre-feet)Cost FC Utilities (CB,30%C,NoS)4.27 $59,900 $255,800 Westminster 6.88 $40,400 $278,300 FC Utilities (CB,30%C,20%S)4.27 $71,800 $306,600 Greeley 7.29 $51,500 $375,300 FC Utilities (MB,30%C,NoS)4.27 $97,100 $414,600 FC Utilities (MB,30%C,20%S)4.27 $116,500 $497,500 Loveland 10.62 $47,380 $503,200 East Larimer County 11.07 $60,600 $670,900 Ft. Collins Loveland 15.29 $85,700 $1,310,200 **For larger developments,East Larimer County Water District only allows 30% of its WSR to be met with cash and the remainder m ust be met with acceptable water rights, thus the cash equivalent listed here is based on the market value of acceptable water rights. *MCS=Market-based, 30% contingency, 20% safety factor; CCS=Cost-based, Contingency, 20% safety factor; MC=Market-based, contingency, no safety factor; CC=Cost-based contingency, no safety factor Page 136 Item 2. Headline Copy Goes HereComparison to Other Providers 15.29 AF 11.07 AF 10.62 AF 4.27 AF 7.29 AF 4.27 AF 6.88 AF 4.27 AF *MCS=Market-based, 30% contingency, 20% safety factor; CCS=Cost-based, Contingency, 20% safety factor; MC=Market-based, contingency, no safety factor; CC=Cost-based contingency, no safety factor FC Utilities (CB,30%C,NoS) Westminster FC Utilities (CB,30%C,20%S) Greeley FC Utilities (MB,30%C,NoS) FC Utilities (MB,30%C,20%S) Loveland East Larimer County Ft. Collins Loveland Multi-Family (100 bedrooms, 64 dwelling units, 30,504 sq. ft.lot area, 5,535 sq. ft.irrigated area) Page 137 Item 2. Headline Copy Goes HereComparison to Other Providers 1.25 AF 1.25 AF 1.25 AF 1.62 AF 1.72 AF 0.70 AF 0.79 AF 1.00 AF *MCS=Market-based, 30% contingency, 20% safety factor; CCS=Cost -based, Contingency, 20% safety factor; MC=Market-based, contingency, no safety factor; CC=Cost-based contingency, no safety factor Loveland East Larimer County Ft. Collins Loveland Westminster FC Utilities (CB,30%C,NoS) Greeley FC Utilities (CB,30%C,20%S) FC Utilities (MB,30%C,NoS) FC Utilities (MB,30%C,20%S) Typical Restaurant (2,800 sq. ft.) Page 138 Item 2. Headline Copy Goes HereSummary: Hybrid Method Pricing Options Method Cost Considerations Market-based 30% contingency* 20% safety factor** $116,500/AF •Current approach with updated costs •Highest impact to developers Market-based 30% contingency $97,100/AF •Safety factor removed Cost-based, 30% contingency 20% safety factor $71,800/AF •Development costs reflect Utilities’ investment in water rights proactively (since late 1800s) Cost-based 30% contingency $59,900/AF •Safety factor removed •Lower than current fee •Highest impact to existing customers Page 139 Item 2. Headline Copy Goes HereQuestions for Council -WSR 20 What questions do Councilmembers have on the potential methodologies and analysis of setting a WSR fee? 01 Page 140 Item 2. Headline Copy Goes Here Jen Dial, Utilities Water Resources Manager Methodology for Assigning Remaining Non-residential Water Allotments Page 141 Item 2. Headline Copy Goes HereWater Allotment Overview •Proposing to assign allotments to ~1,000 accounts that do not have one (1/3 of total) •Not proposing additional WSR costs •Allow time to adjust use to avoid surcharges 1965-1984 •Required volume based on tap size •Began to assign allotments to non- residential accounts 1984 •Allotments based on business type •Assigned allotments to new development and any redevelopment •Requirement was burdensome and revised to only apply to those with additional water service 2022 •Required volume of water based on acre of land served •No allotments were assigned 2024 Page 142 Item 2. Headline Copy Goes HereWhy Update Now? •Consistency •Same requirement for all customers •Fairness •Customers without allotments can use as much water as they desire without surcharges •Does not capture costs for water supply system use that is above what was paid for through a WSR fee •A higher WSR fee and surcharges increases the inequity between customers who are subject to surcharges and those who are not •Conservation •Programs and incentives for customers that would regularly go over their allotment Page 143 Item 2. Headline Copy Goes HereAllotment Methodology Overview Method Description History Impacts Hybrid (Tap and Avg. Use) Selects the greater between average historical use and tap credit Have not assigned this way •Lowest impact •Could assign a higher allotment than needed making it difficult to identify inefficiencies Tap Credit Assigns a volume based on meter size Most current allotments assigned with this methodology •Could underestimate allotment resulting in potential unwarranted surcharges Average Historical Use Assigns a volume based on average historical water use per tap (e.g., 5 years) Have not assigned this way •Could assign a lower allotment compared to the volume received with a tap credit, undervaluing WSR •Could assign a higher allotment than customer needed making it difficult to identify water use inefficiencies Business Type Assigns based on business type and specific use (e.g., # rooms in hotel, square footage of restaurant, landscape details, etc.) Current methodology for setting allotments •Best reflects actual water use need •Limited data to fully evaluate impacts (44 customers assigned this way) •Time-intensive process Page 144 Item 2. Headline Copy Goes HerePotential Impacts Page 145 Item 2. Headline Copy Goes HereQuestions for Council –Assigning Non-Residential Allotments 26 What questions do Councilmembers have on the potential methodologies for calculating allotments for non-residential customers? 02 03 What questions do Councilmembers have regarding assigning allotments to non-residential customers that do not currently have one? Page 146 Item 2. Headline Copy Goes Here Heather Young, Utilities Community Engagement Manager Customer Engagement Page 147 Item 2. Headline Copy Goes HereWork Directly with Impacted Parties •Involve impacted parties in developing and refining alternatives for: •WSR •EWU surcharges •Allotment assignments •Goals: •Keep impacted parties informed of project timeline, how to be involved, and decisions made •Seek input on potential impacts to customers and community members Phase 1 (April –June) Broad engagement and feedback collection Phase 2 (July –Sept.) Refine proposal and incorporate feedback Phase 3 (Oct. –Dec.) Seek adoption Page 148 Item 2. Headline Copy Goes HereImpacted Parties •Market-rate developers •Affordable housing developers •Water-intensive businesses (breweries, restaurants, etc.) •Homeowner’s Associations •Commercial real estate •Commercial water customers •With allotments •Without allotments •Irrigation only Page 149 Item 2. Headline Copy Goes HerePlanned Communications and Engagement Opportunities •Council Work Sessions •Boards and Commissions •Email communication •Existing e-newsletters •Seek input from community groups at existing meetings •Community Engagement Group •Business meetings •Webinar for impacted allotment customers Page 150 Item 2. Headline Copy Goes HereQuestions for Council –Project Plan and Timeline 31 04 What feedback do Councilmembers have on the overall plan and timeline for implementation? Page 151 Item 2. Headline Copy Goes Here Summary Page 152 Item 2. Headline Copy Goes HereQuestions for Council Water Supply Requirements 1.What questions do Councilmembers have on the potential methodologies and analysis of setting a WSR fee and associated surcharge? Non-Residential Allotments 2.What questions do Councilmembers have regarding assigning allotments to non-residential customers that do not currently have allotments? 3.What questions do Councilmembers have on the potential methodologies for calculating allotments for non- residential customers? Overall Plan and Timeline 4.What feedback do Councilmembers have on the overall plan and timeline for implementation? Page 153 Item 2. Headline Copy Goes Here Questions? Page 154 Item 2. City Council Work Session Agenda Item Summary – City of Fort Collins Page 1 of 3 April 9, 2024 WORK SESSION AGENDA ITEM SUMMARY City Council STAFF Lawrence Pollack, Budget Director Jacob Castillo, Chief Sustainability Officer Travis Storin, Chief Financial Officer SUBJECT FOR DISCUSSION Discussion of the 2024 Appropriation of the First Year of the 2050 Tax for Parks, Recreation, Transit and Climate (2050 Tax). EXECUTIVE SUMMARY The purpose of this item is to discuss the items being considered for the 2024 appropriation the first year of the new 2050 Tax. In November 2023, Fort Collins voters approved this 0.5% Sales & Use Tax increase, which is dedicated to the areas of Parks, Recreation, Transit and Climate. This tax begins in 2024 and expires at the end of 2050. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1.What questions does City Council have about the proposed projects for the first year of the new tax? 2.Does Council support moving this item forward for First Reading at the regular Council meeting on May 7, 2024? BACKGROUND / DISCUSSION At the December 2021 Council Finance Committee (CFC) meeting staff presented an item to discuss specific identified revenue needs and potential funding options. Multiple conversations occurred throughout 2022 at various CFC meetings. In 2023 the areas of need were focused on Parks, Recreation, Transit, Climate and Housing. Estimated annual shortfalls ranged from eight to nearly fifteen million per area, as follows: •Parks & Recreation - $8.0 to $12.0M annual shortfall (Parks & Recreation Master Plan) •Transit - $8.0M to $14.7M annual shortfall (Transit Master Plan) •Climate - $9.5M+ annual shortfall (Our Climate Future Plan) •Housing - $8.0M to $9.5M annual shortfall (Housing Strategic Plan) This topic eventually came in front of the full Council in 2023 and after a few Work Sessions, proposed funding for these items was determined. Council approved two ballot items to be referred to the voters of Page 155 Item 3. City Council Work Session Agenda Item Summary – City of Fort Collins Page 2 of 3 Fort Collins to fund these areas. Parks, Recreation, Transit and Climate were proposed to be funded from a dedicated 0.5% Sales Tax increase. In a departure from previous tax initiatives and renewals, this item was proposed for a 27-year period beginning in 2024 and expiring at the end of 2050. The other referral was for Housing needs, which were proposed to be funded by a Property Tax increase. In November 2023, the voters of Fort Collins approved one of those initiatives, specifically the 0.5% Sales Tax outlined as follows: ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 2023 Ballot Language: SHALL CITY OF FORT COLLINS TAXES BE INCREASED BY $23,800,000 IN THE FIRST FULL FISCAL YEAR (2024), AND BY SUCH AMOUNTS COLLECTED ANNUALLY THEREAFTER, FROM A .50% SALES AND USE TAX BEGINNING JANUARY 1, 2024, AND ENDING AT MIDNIGHT ON DECEMBER 31, 2050, WITH THE TAX REVENUES SPENT ONLY FOR THE FOLLOWING: - 50% FOR THE REPLACEMENT, UPGRADE, MAINTENANCE, AND ACCESSIBILITY OF PARKS FACILITIES AND FOR THE REPLACEMENT AND CONSTRUCTION OF INDOOR AND OUTDOOR RECREATION AND POOL FACILITIES, - 25% FOR PROGRAMS AND PROJECTS ADVANCING GREENHOUSE GAS AND AIR POLLUTION REDUCTION, THE CITY’S 2030 GOAL OF 100% RENEWABLE ELECTRICITY, AND THE CITY’S 2050 GOAL OF COMMUNITY-WIDE CARBON NEUTRALITY, AND - 25% FOR THE CITY’S TRANSIT SYSTEM, INCLUDING, WITHOUT LIMITATION, INFRASTRUCTURE IMPROVEMENTS, PURCHASE OF EQUIPMENT, AND UPGRADED AND EXPANDED SERVICES; AND WHILE CITY COUNCIL MAY EXERCISE ITS DISCRETION IN DECIDING THE TIMING OF SPENDING FOR EACH CATEGORY, THAT SPENDING SHALL SUPPLEMENT AND NOT REPLACE THE CURRENT CITY FUNDING FOR THE SPECIFIED PURPOSES AND SHALL BE RECONCILED TO THE STATED PERCENTAGES BY THE END OF 2030, 2040, AND WHEN THE LAST REVENUES COLLECTED FROM THE TAX ARE SPENT, BUT THIS TAX SHALL NOT APPLY TO: - ITEMS EXEMPT UNDER THE CITY CODE FROM CITY SALES AND USE TAX; - FOOD FOR HOME CONSUMPTION; AND - MANUFACTURING EQUIPMENT, BUT FOR THE USE TAX ONLY; AND WITH ALL THE TAX REVENUES, AND INVESTMENT EARNINGS THEREON, TO BE COLLECTED, RETAINED, AND SPENT AS A VOTER-APPROVED REVENUE CHANGE NOTWITHSTANDING THE SPENDING AND REVENUE LIMITATIONS OF ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Given the timing of the vote relative to the 2024 Annual Appropriation (2024 Budget) process, it was determined that the 2024 appropriation for the approved Sales Tax increase would be discussed as its own item early in the year. Staff has worked to identify specific projects for the first year of this tax, as detailed in the attached list of proposed projects. Knowing that staff is concurrently working on the 2025- 26 City Manager’s Recommended Budget to come to Council later this year, many of the proposed projects are one-time in nature, targeted to be substantially completed in 2024. Proposals of an ongoing nature Page 156 Item 3. City Council Work Session Agenda Item Summary – City of Fort Collins Page 3 of 3 are primarily for the staff needed to start this work and be positioned to execute the projects approved as part of the 2025-26 Budget. This item was discussed at the Council Finance Committee meeting on March 20, 2024. Council questions were addressed with a follow-up request for more detail for the Parks and Recreation offer. This offer initiates a large asset and infrastructure replacement program similar to the Street Maintenance Program or the Water and Sewer Replacement programs, and this offer is modeled after those types of programs. The details for the analysis and prioritization of current assets can be found in the Infrastructure Replacement Program report at the following web address: https://www.fcgov.com/parks/files/fort-collins-parks-infrastructure-replacement-program-management- plan_compressed.pdf?1665426175 Additionally, per the conversation on the climate portion of the tax, the item to ‘Add Solar PV System at City Facility’ was moved from the elective offers to the recommended offers. Attachments have been updated to reflect this change. NEXT STEPS If supported by Council, this appropriation item will be brought forward for Council’s consideration on May 7, 2024. ATTACHMENTS 1. Proposed 2024 uses of the 2050 Tax 2. Presentation Page 157 Item 3. City of Fort Collins 2024 Sustainable Funding Tax Request Offer Name: Outcome:C&R (Culture & Rec)Contact: Svc Area:Community & Operation Services Related Offer #: 54.15, 54.5, 43.15 & 43.20 Department:Parks Capital?Yes Offer Description: CR 2.2 - Address infrastructure and amenity replacement and maintenance needs of trails, parks, cultural and recreation facilities while continuing the planned buildout of the parks and paved trail systems. 4.0 FTE – Expanded Parks and Recreation Infrastructure Replacement vshaw@fcgov.com Choose Primary Strategic Objective: Funding this offer will significantly expand the Parks and Recreation Infrastructure Replacement programs and increase the volume of asset replacement and maintenance work. How does Offer Support Primary Strategic Objective: Funding this offer provides resources required to ramp up Parks and Recreation Infrastructure Replacement Programs (IRPs) by utilizing new funding approved by voters in a 2023 dedicated tax. This program is essential to keeping park and recreation facilities and infrastructure safe and in usable condition, and imperative to preserve equity within the community to ensure that every household, regardless of the age of the neighborhood, has access to high quality parks and recreational experiences. Historically, Parks IRP has included repair and renovation to asset categories like playgrounds, hardscapes, irrigation, fields, buildings, courts, structures, and water infrastructure at all parks and trails. Recreation IRP has provided critical ongoing repair and maintenance across ten facilities, including pools, gymnasiums, ice, childcare infrastructure, and other amenities available to the public. It has also included limited equipment replacement in the fitness areas of facilities which support programming. In 2022, Parks completed a comprehensive asset management study which assigned asset scores to components to prioritize future investments across the park system regardless of component category. The results of the study provided a Top 40 list of projects which the Parks IRP program will focus on during the initial startup years. The Recreation Operational Analysis identified $36M of deferred maintenance projects across facilities over the next five years. A portion of this funding will create a 10-year Recreation Capital Improvement Program (CIP) that will prioritize needs across the diverse recreation system. The Parks CIP and Recreation CIP will be merged to best leverage the 2050 tax in an equitable way to address infrastructure improvements and replacement in Parks and Recreation across the City. Extra Info Bullets: •It is typical for multiple IRP projects to overlap over an extended period. In this budget cycle, projects from the plans listed above will begin, but are subject to change based on other opportunities (partnerships, safety issues, vandalism issues, continued preventative maintenance projects, etc.) that may arise. •The staffing model for 2024 allows the program to ramp up and will staff the program to approximately 30%. Additional staffing requests will occur in future budget years. •This request represents approximately 50% of the tax estimated to be collected in 2024 for parks and recreation from the 2050 tax in 2024. This is forecasted to leave $5M of tax generation to establish a dedicated reserve available for future budgets when the program is fully established. •The dedicated funding from the 2050 Tax will be supplemented with existing appropriations from historical general fund support in the Operations Services Department and potential other funding to complete facility replacement and improve sustainability and green infrastructure in alignment with additional strategic objectives. Page 158 Item 3. City of Fort Collins 2024 Sustainable Funding Tax Request Offer Name:4.0 FTE – Expanded Parks and Recreation Infrastructure Replacement Ongoing One-Time Total Expense Fund(s):1)256 - Sustainable Funding 2050 Tax $5,282,586 $20,000 $5,302,586 2)$0 $5,282,586 $20,000 $5,302,586 FTE (if part of the offer, identify the position and salary): # 1.0 Salary & Benefits $91,297 1.0 Salary & Benefits $26,467 1.0 Salary & Benefits $83,070 1.0 Salary & Benefits $66,552 Ongoing One-Time Total Funding Source(s):1)256- Sustainable Funding Tax: Parks and Recrea $5,282,586 $20,000 $5,302,586 $5,282,586 $20,000 $5,302,586 Specialist, Communications (P1) Park Planner/LA (P3) Sr Analyst, Finance (P3) Manager (M1) Title Links: •https://www.fcgov.com/parks/life-cycle-program •https://www.fcgov.com/recreation/ •https://ourcity.fcgov.com/sustainable-funding-2023 Page 159 Item 3. City of Fort Collins 2024 Sustainable Funding Tax Request Offer Name: Outcome:T&M (Transportation & Mobility)Contact: Svc Area:Planning, Dev & Transportation Related Offer #: Department:Transfort / Dial-a-Ride Capital?No Offer Description: Ongoing One-Time Total Expense Fund(s):1)256 - Sustainable Funding 2050 Tax $547,882 $547,882 2)$0 $547,882 $0 $547,882 Ongoing One-Time Total Funding Source(s):1)256- Sustainable Funding Tax: Transit- Ongoing $547,882 $547,882 2)$0 $547,882 $0 $547,882 Funding this offer will increase starting wage and existing wages for Transfort Bus Operators, Dispatchers and Transit Service Officers to reduce turnover and to improve recruitment opportunities. Transfort seeks to improve recruitment and employee retention by increasing wages to be more competitive with other jobs in the transportation sector in the region. Transfort has remained under-staffed since the pandemic began in 2020, resulting in decreased service and ridership levels. Transfort operators participated in a satisfaction survey at the end of 2023, and more than half of current bus operators reported compensation as the primary concern related to job satisfaction. Transfort has long been a leading transit agency in the state and in Northern Colorado and aims to be an industry leader and premier transportation employer in the region. Denver’s Regional Transportation District (RTD), Greeley Evans Transit (GET), and City of Loveland Transit (COLT) are currently hiring Bus Operators at starting hourly rates of $25.96, $21.54, and $22.24 respectively. Starting wages for experienced candidates may reach up to $30.03 per hour. Transfort’s proposed pay plan will increase operator hiring wages from $22.50 per hour to $24.00 per hour. To ensure existing employees are appropriately placed within the new pay range, a 7.1% increase is necessary. An additional equity increase of 7.1% will go to senior operators who did not receive an increase during the October 2021 wage adjustment, and have experienced wage compression and pay equity issues. Dispatch and Transit Service Officers (TSO) have also experienced turnover since the pandemic and require more competitive pay. RTD Transit Officers start at $32.79, while Transfort Transit Service Officers currently start at $26.44 per hour. This increase will raise Transfort TSO starting wage to $28.42. Starting Dispatcher starting pay will increase from $26.13 to $28.09. Additionally, TSOs and Dispatch positions are leveled higher on the pay plan than bus operators. An increase in bus operator pay results in a need to increase Dispatch and Transit Service Officer wages to ensure equity and reduce wage compression. TM 6.2 - Support an efficient, reliable transportation system for all modes of travel, enhance high- priority intersection operations, and reduce Vehicle Miles Traveled (VMT). Transit Operations Pay Plan Revision Choose Primary Strategic Objective: Increase recruitment and retention opportunities by offering more competitive wages. Increased staffing levels will result in increased service and ridership levels. How does Offer Support Primary Strategic Objective: Page 160 Item 3. City of Fort Collins 2024 Sustainable Funding Tax Request Offer Name: Outcome:T&M (Transportation & Mobility)Contact: Svc Area:Planning, Dev & Transportation Related Offer #: Department:Transfort / Dial-a-Ride Capital?No Offer Description: Ongoing One-Time Total Expense Fund(s):1)256 - Sustainable Funding 2050 Tax $441,036 $441,036 2)$0 $441,036 $0 $441,036 FTE (if part of the offer, identify the position and salary): # 4.00 Salary & Benefits $275,407 2.00 Salary & Benefits $43,416 1.00 Salary & Benefits $17,213 Ongoing One-Time Total Funding Source(s):1)256- Sustainable Funding Tax: Transit- Ongoing $441,036 $441,036 $441,036 $0 $441,036 TM 6.2 - Support an efficient, reliable transportation system for all modes of travel, enhance high- priority intersection operations, and reduce Vehicle Miles Traveled (VMT). Sustainable Bus Operator Schedule Choose Primary Strategic Objective: Increases recruitment and retention opportunities for bus operators by offering more sustainable scheduling practices, while increasing service levels. Increased staffing levels will result in increased service and ridership levels. How does Offer Support Primary Strategic Objective: Convert Hourly Positions to two .5 FTE & one 1.0 Bus Operator Convert .75 Position to 1.0 FTE 1.0 FTE Bus Operator Title Funding this offer will result in expanded service hours on Routes 5, 14, and 18, while increasing the number of benefited (classified) positions to provide more stable bus operator schedules. Transit scheduling is an intricate process requiring schedulers to meet all operational staffing needs during all hours of service, within the constraints of available classification hours. Historically, Bus Operator candidates must be available to be scheduled during all service hours. Schedules offered to operators do not fall into 8-hour shifts and may consist of early mornings, late nights, and split shifts due to hours of operation and the seasonal nature of transit services. This expectation and practice make recruitment and retention difficult and has a negative impact on the sustainability of the position and attracting applicants. Extending service one (1) hour in the evening on routes 5, 14, and 18 will expand service for the community while creating improved “blocks” of work to support additional classified positions and to allow for more stable Bus Operator schedules. This offer will: •Add four new 1.0 FTEs •Convert two (2) hourly positions to .5 FTE •Convert one (1) hourly position to 1.0 FTE •Convert one (1) .75 FTE to a 1.0 FTE. By offering more sustainable schedules, additional benefitted positions, and extending service hours, Transfort will improve recruitment and retention and increase service levels for the community. Page 161 Item 3. City of Fort Collins 2024 Sustainable Funding Tax Request Offer Name: Outcome:T&M (Transportation & Mobility)Contact: Svc Area:Planning, Dev & Transportation Related Offer #: Department:Transfort / Dial-a-Ride Capital?No Offer Description: Ongoing One-Time Total Expense Fund(s):1)256 - Sustainable Funding 2050 Tax $160,676 $160,676 2)$0 $160,676 $0 $160,676 FTE (if part of the offer, identify the position and salary): # 1.00 Salary & Benefits $76,129 1.00 Salary & Benefits $84,547 Ongoing One-Time Total Funding Source(s):1)256- Sustainable Funding Tax: Transit- Ongoing $160,676 $160,676 $160,676 $0 $160,676 Transit Service Officer Supervisor Transit Service Officer Title Funding this offer will increase both real and perceived safety throughout our transit system, provide vital support for our front-line employees, and directly benefit our customers. As our community and transit system have grown, our safety and security team has not grown proportionally. Crimes against persons and property in our transit system rapidly rise each year; including but not limited to, physical assault, harassment, and vandalism. As a result, survey data shows that employees feel unsafe in their workplace and passengers’ fear of riding our transit system continues to grow. According to our passenger surveys, passengers worried about other passenger behavior increased from 12% in 2022 to 16% in 2023, and bus operators ranked safety as their second top concern related to job satisfaction. Transit Service Officers (TSOs) are special commissioned law enforcement officers, who are a vital safety component of transit systems. Their uniformed presence discourages behavioral issues and crime incidents before they happen and increase employee and customer confidence. Transfort TSOs respond to over 100 calls per month on buses, at bus stops and transit centers. These calls range from medical emergencies to serious behavioral and/or criminal incidents that result in citations or arrest by the Fort Collins Police. They are supplemented by 2 unarmed, contracted security guards. This offer will provide 1 TSO FTE, and 1 TSO Supervisor FTE. The TSO FTE will have an emphasis on mental health response. They will work as a liaison between Transfort, Fort Collins Police HOPE team and Mental Health Response team as well as outside agencies such as Outreach Fort Collins. They will also attend additional training geared toward mental health and mental health response to better assist an at-risk population who may be in crisis while utilizing the Transfort system. Adding these positions will increase system-wide TSO security coverage from 6% to 10%. TM 6.1 - Improve safety for all modes and users of the transportation system to ultimately achieve a system with no fatalities or serious injuries. Increased Transit Enforcement & Support Choose Primary Strategic Objective: This offer will help decrease both real and perceived safety concerns throughout the transit  system, and support passengers who may be experiencing a mental health crisis How does Offer Support Primary Strategic Objective: Page 162 Item 3. City of Fort Collins 2024 Sustainable Funding Tax Request Offer Name: Outcome:ENV (Environmental Health)Contact: Svc Area:Utility Services Related Offer #: Department:Utilities Customer Connections Capital?No Offer Description: Ongoing One-Time Total Expense Fund(s):1)256 - Sustainable Funding 2050 Tax $600,000 $600,000 2)$0 $0 $600,000 $600,000 Ongoing One-Time Total Funding Source(s):1)256- Sustainable Funding Tax: Climate Action- 1 Time $600,000 $600,000 $0 $600,000 $600,000 This funding will be combined with third party capital to reduce interest rates and provide easy financing opportunities for Utilities electric customers to improve their homes. Upfront cost, along with knowledge of improvements and access to contractors, have been barriers to community members interested in upgrading their homes. Program participants first receive technical assistance through a home energy assessment, then have the option to work with a participating program service provider to install equipment, and ultimately have easy access to this financing option to improve the operation of their home. Below market interest rates and ease of qualifying for this financing are critical to the success of the Epic Loan program. Epic Loans program also engages property managers and landlord to increase rental home upgrades. ENV 4.1 - Intensify efforts to meet 2030 climate, energy and 100% renewable electricity goals that are centered in equity and improve community resilience. Introduce new capital for Utilities Epic Loans program Glenn Pease Choose Primary Strategic Objective: Offer will decrease economic barriers for community members interested in upgrading community residential buildings. How does Offer Support Primary Strategic Objective: Page 163 Item 3. City of Fort Collins 2024 Sustainable Funding Tax Request Offer Name: Outcome:ENV (Environmental Health)Contact: Svc Area:Information & Employee Svcs Related Offer #: Department:Operation Services Capital?No Offer Description: Ongoing One-Time Total Expense Fund(s):1)256 - Sustainable Funding 2050 Tax $500,000 $500,000 2)$0 $0 $500,000 $500,000 Ongoing One-Time Total Funding Source(s):1)256- Sustainable Funding Tax: Climate Action- 1 Time $500,000 $500,000 $0 $500,000 $500,000 Retrofit existing exterior lighting systems at EPIC, Northside, and Senior Ctr. The new exterior lighting systems will meet current lighting codes, improve energy efficiency, and embrace our night sky/dark sky standards and goals. Exterior lighting upgrades will also have a positive impact on aesthetics of building, and upgrades to exterior building lighting have also been shown to benefit visitor safety and comfort. ENV 4.1 - Intensify efforts to meet 2030 climate, energy and 100% renewable electricity goals that are centered in equity and improve community resilience. Comprehensive exterior lighting retrofits at City Recreation Centers Stu Reeve Choose Primary Strategic Objective: These efficiency focused projects will directly reduce energy and emissions to meet our 2030 Our Climate Future goals and municipal sustainability goals. How does Offer Support Primary Strategic Objective: Page 164 Item 3. City of Fort Collins 2024 Sustainable Funding Tax Request Offer Name: Outcome:NLSH (Neighborhood Livability & Social Health)Contact: Svc Area:Sustainability Services Related Offer #: Department:Social Sustainability Capital?No Offer Description: Ongoing One-Time Total Expense Fund(s):1)256 - Sustainable Funding 2050 Tax $400,000 $400,000 2)$0 $0 $400,000 $400,000 Ongoing One-Time Total Funding Source(s):1)256- Sustainable Funding Tax: Climate Action- 1 Time $400,000 $400,000 $0 $400,000 $400,000 Funds would be used to provide grants to offset increasing costs of utility related development fees for affordable housing projects targeting households earning no more than 80% Area Median Income. Grant criteria to be developed collaboratively including the Utility Department, Social Sustainability Department and local affordable housing providers and developers. NLSH 1.1 - Increase housing supply and choice and address inequities in housing to ensure that everyone has healthy, stable housing they can afford. Launch grants to offset utility fees for affordable housing development, particularly electric and water Meaghan Overton Choose Primary Strategic Objective: This offer would decrease economic barriers to upfront costs of development for affordable housing. How does Offer Support Primary Strategic Objective: Page 165 Item 3. City of Fort Collins 2024 Sustainable Funding Tax Request Offer Name: Outcome:T&M (Transportation & Mobility)Contact: Svc Area:Planning, Dev & Transportation Related Offer #: Department:FC Moves Capital?Yes Offer Description: Ongoing One-Time Total Expense Fund(s):1)256 - Sustainable Funding 2050 Tax $350,000 $350,000 2)$0 $0 $350,000 $350,000 Ongoing One-Time Total Funding Source(s):1)256- Sustainable Funding Tax: Climate Action- 1 Time $350,000 $350,000 $0 $350,000 $350,000 This project will construct median refuge islands, high-visibility crosswalks, and ADA curb ramps at Centre Ave. and Rolland Moore Dr./Phemister Rd. to help pedestrians and cyclists cross Centre Ave. The project is recommended as a medium priority/readiness project in the Active Modes Plan. Staff are seeking to implement the project in 2024 for the opportunity to coordinate with the resurfacing of Centre Ave. and the implementation of a federal Safe Streets and Roads for All grant on Centre Ave. The project will improve connectivity to Rolland Moore Park, Spring Creek Trail, high density student housing and senior housing, CSU's main campus and south campus, a preschool, federal offices, Mason Trail, and College Ave. commercial. TM 6.1 - Improve safety for all modes and users of the transportation system to ultimately achieve a system with no fatalities or serious injuries. Implement bicycle infrastructure as determined in the Active Modes plan (Centre Ave) Cortney Geary Choose Primary Strategic Objective: This offer improves safety, particularly for active modes of transportation, by providing a safe and comfortable crossing of Centre Ave. at Rolland Moore Dr./Phemister Rd. How does Offer Support Primary Strategic Objective: Page 166 Item 3. City of Fort Collins 2024 Sustainable Funding Tax Request Offer Name: Outcome:ENV (Environmental Health)Contact: Svc Area:Utility Services Related Offer #: Department:Utilities Customer Connections Capital?No Offer Description: Ongoing One-Time Total Expense Fund(s):1)256 - Sustainable Funding 2050 Tax $250,000 $250,000 2)$0 $0 $250,000 $250,000 Ongoing One-Time Total Funding Source(s):1)256- Sustainable Funding Tax: Climate Action- 1 Time $250,000 $250,000 $0 $250,000 $250,000 Riverside community solar project (500 kW) has been non-operational since August 2023. Utilities, which aquired the assets of the site in 2020, is pursuing bids from service providers to redesign and repower the solar array on Riverside Ave. This is a highly visible City Committment to climate action and directly serves over 200 residents that have purchased solar panels on this array. This project contributes to our overall goal of achieving 100% renewable electricity for our community. ENV 4.1 - Intensify efforts to meet 2030 climate, energy and 100% renewable electricity goals that are centered in equity and improve community resilience. Repair Riverside Community Solar Array Brian Tholl Choose Primary Strategic Objective: This offer will directly increase available renewable electricty available to communityHow does Offer Support Primary Strategic Objective: Page 167 Item 3. City of Fort Collins 2024 Sustainable Funding Tax Request Offer Name: Outcome:ENV (Environmental Health)Contact: Svc Area:Sustainability Services Related Offer #: Department:Environmental Services Capital?No Offer Description: Ongoing One-Time Total Expense Fund(s):1)256 - Sustainable Funding 2050 Tax $250,000 $250,000 2)$0 $0 $250,000 $250,000 Ongoing One-Time Total Funding Source(s):1)256- Sustainable Funding Tax: Climate Action- 1 Time $250,000 $250,000 $0 $250,000 $250,000 Healthy Homes is a free, indoor air quality (IAQ) program for Fort Collins community members that aims to reduce chemical and biological pollutants and promote safety in residences. Staff, volunteers, and partner organizations work together to improve the health and home resiliency of all Fort Collins community members. This program focuses on populations disproportionately impacted by climate change impacts including those that live in mobile homes, that are low-income, those with respiratory conditions, people of color, and non-English speakers. Healthy Homes improves IAQ and energy efficiency, and prepares homes for climate-related events (i.e., wildfires, extreme temperatures). This is achieved through free in-home visits which include an IAQ assessment, portable air cleaners, smoke/fire and carbon monoxide (CO) alarms, furnace servicing, weatherization, air conditioners, and other related resources/services. ENV 4.2 - Improve indoor and outdoor air quality. Fund Healthy Homes Program Emily Olivo & Selina Lujan Choose Primary Strategic Objective: By creating healthier, energy efficient, resilient homes, the severity of the impacts of climate change, such as extreme temperatures and poor air quality, will be reduced for the populations served. Healthy Homes is a crucial program for meeting the goals of the Air Quality Plan and Our Climate Future. How does Offer Support Primary Strategic Objective: Page 168 Item 3. City of Fort Collins 2024 Sustainable Funding Tax Request Offer Name: Outcome:T&M (Transportation & Mobility)Contact: Svc Area:Planning, Dev & Transportation Related Offer #: Department:FC Moves Capital?No Offer Description: Ongoing One-Time Total Expense Fund(s):1)256 - Sustainable Funding 2050 Tax $200,000 $200,000 2)$0 $0 $200,000 $200,000 Ongoing One-Time Total Funding Source(s):1)256- Sustainable Funding Tax: Climate Action- 1 Time $200,000 $200,000 $0 $200,000 $200,000 Mobility hubs are generally defined as locations where people can access multiple types of transportation modes in a central location such as transit, bike/scooter share and carshare. Mobility hubs are a core recommendation in the City's Transit Master Plan (TMP), and in the Our Climate Future Two-Year Tactical Plan as a Next Move under Big Move 4 - Convenient Transportation Choices: It is safe, easy, fast and affordable to get around without a car. The fourteen mobility hub locations identified in the TMP are preliminary locations and intended to be flexible depending on future land development, land availability and other criteria. The development of a mobility hubs plan will refine locations, characteristics and costs; and is a necessary next step prior to construction and implementation. TM 6.3 - Invest in equitable access to, and expansion of, all sustainable modes of travel with emphasis on growing transit ridership. Mobility Hubs Plan development Melina Dempsey Choose Primary Strategic Objective: Mobility hubs are planned at strategic locations throughout Fort Collins along transit routes and will include other sustainable transporation offerings such as: bike and scooter share, carshare, EV charging, TNC drop off/pick up and micortransit. Colocating sustainable transportation options throughout Ft Collins will make multi-modal travel more accessbile, convenient and efficient. How does Offer Support Primary Strategic Objective: Page 169 Item 3. City of Fort Collins 2024 Sustainable Funding Tax Request Offer Name: Outcome:NLSH (Neighborhood Livability & Social Health)Contact: Svc Area:Planning, Dev & Transportation Related Offer #:24.12 Department:Comm Dev & Neighborhood Svcs Capital?No Offer Description: The Building Envelope Grant Fund would build on the success of the current Neighborhood Grants program to address home repairs that are seen with increasing frequency in mobile homes and other affordable housing units, but come at a cost too high for residents. The 2023 Mobile Home Park Mini-Grant round that offered roof repairs had over $200,000 in requested funds for just 37 homes and was open to only three neighborhoods (available funding was $35,000). There are generally very limited grant funds available for home repairs in the $5,000-25,000 range, the price point for most building envelope needs we have seen to date. Available grants also frequently exclude mobile homes and rental properties from eligibility due to their perceived “lack of durability” or return on investment. Holes in roofs that do not keep rain or snow out of bedrooms, exterior doors that do not close properly and let in winter winds and summer heat, and windows that are broken and taped back together are common in mobile home parks. Often those are not the only items that need repair in the home. Several funded projects in affordable housing units were delayed or cancelled over the last 3 years because of a lack of funding for a dependent project (example: a new furnace was available from a partner organization but could not be installed because the electrical work needed in the home was too expensive for the homeowner and the program did not cover that portion of the work). Not only would this grant expansion help with those building envelope concerns to improve energy efficiency and livability, but also it would allow us to leverage funds and services from partners for maximum benefit to address other urgent needs as well. Neighborhood Services would continue to partner extensively with programs like Healthy Homes, Colorado Affordable Residential Energy program, Larimer Home Improvement Program, and others to identify and close gaps in available services. We would also continue to coordinate assessments and installation of any funded components with partners to make customer service more efficient and build relationships with vendors. As our organization is just entering the rental housing space, this short-term funding would help incentivize registration compliance as well as needs assessment for rental housing repairs that we currently have only anecdotally. Program metrics would include energy usage and cost before and after the repairs, equity assessments for access by historically marginalized communities, and outcomes-based measures around a sense of belonging, trust in the government, and value in contributing to Our Climate Future goals. Utilizing our existing grant application, review, and contracting systems will allow for rapid deployment of any awarded OCF funds. This proposal also includes some part- time hourly employee funding for grant administration, outreach, and coordination. NLSH 1.8 - Preserve and enhance mobile home parks as a source of affordable housing and create a safe and equitable environment for residents. Expand Mobile Home Park Mini-grant through Neighborhood Services JC Ward & Alyssa Stephens Choose Primary Strategic Objective: Mobile homes and older rental homes are often the most affordable properties in our community, but the high cost of housing makes it a challenge to afford necessary repairs to building envelope that increase the safety, comfort, and efficiency of these homes. This project would fund critical home upgrades to things like windows, doors, and insulation, reducing monthly utility bills and increasing housing stability, efficiency, and comfort for mobile home park residents and renters living in affordable housing. The City provides existing programs to homeowners that support efficiency upgrades, but the high costs make it inaccessible to many residents with limited income. This program ensures that your income does not limit your access to City support for efficiency upgrades. How does Offer Support Primary Strategic Objective: Page 170 Item 3. City of Fort Collins 2024 Sustainable Funding Tax Request Offer Name:Expand Mobile Home Park Mini-grant through Neighborhood Services Ongoing One-Time Total Expense Fund(s):1)256 - Sustainable Funding 2050 Tax $200,000 $200,000 2)$0 $0 $200,000 $200,000 Ongoing One-Time Total Funding Source(s):1)256- Sustainable Funding Tax: Climate Action- 1 Time $200,000 $200,000 $0 $200,000 $200,000 Page 171 Item 3. City of Fort Collins 2024 Sustainable Funding Tax Request Offer Name: Outcome:HPG (High Performing Gov't)Contact: Svc Area:Community & Operation Services Related Offer #: Department:Natural Areas Capital? Offer Description: Ongoing One-Time Total Expense Fund(s):1)256 - Sustainable Funding 2050 Tax $200,000 $200,000 2)$0 $0 $200,000 $200,000 Ongoing One-Time Total Funding Source(s):1)256- Sustainable Funding Tax: Climate Action- 1 Time $200,000 $200,000 $0 $200,000 $200,000 This project is a continuation of electrification efforts for the municipal fleet of Utility cart vehicles, often seen in downtown district, parks and other highly visible public spaces. This project would fund the replacement of approximately 10 gas or diesel-powered utility carts with electric utility carts used by the Parks, Cemeteries and Golf divisions. 4.1 - Intensify efforts to meet 2030 climate, energy and 100% renewable electricity goals that are centered in equity and improve community resilience. Replace existing Parks Department Utility Carts with electric Utility carts Mike Brunkhardt Choose Primary Strategic Objective: Replacement of gas and diesel-powered vehicles with electric has a direct, immediate and noticeable effect on the air quality and transportation emissions in our community. How does Offer Support Primary Strategic Objective: Page 172 Item 3. City of Fort Collins 2024 Sustainable Funding Tax Request Offer Name: Outcome:ENV (Environmental Health)Contact: Svc Area:Utility Services Related Offer #: Department:Utilities Customer Connections Capital? Offer Description: Ongoing One-Time Total Expense Fund(s):1)256 - Sustainable Funding 2050 Tax $100,000 $100,000 2)$0 $0 $100,000 $100,000 Ongoing One-Time Total Funding Source(s):1)256- Sustainable Funding Tax: Climate Action- 1 Time $100,000 $100,000 $0 $100,000 $100,000 This project seeks to identify under resourced commercial and multifamily buildings including a consideration of how various factors intersect to create under resourced conditions in this cohort. Data review will be paired with outreach to building contacts (owners, facility managers, tenants/occupants) to identify barriers to energy efficiency in these properties. Any remaining funds will be funneled toward targeted support to address barriers isolated in the research (project team is ready to direct funds to build out advanced technical support, direct financial support of efficiency projects, or to address financing barriers, and will be ready to pursue other outcomes of the research as appropriate). ENV 4.1 - Intensify efforts to meet 2030 climate, energy and 100% renewable electricity goals that are centered in equity and improve community resilience. Identify and determine critical support needed to upgrade under-resourced buildings, focusing on commercial /MF buildings Katherine Bailey Choose Primary Strategic Objective: By identifying buidlings that need additional support to achieve greater efficiency and what barriers they have we are better able to offer targeted resources to overcome those barriers. How does Offer Support Primary Strategic Objective: Page 173 Item 3. City of Fort Collins 2024 Sustainable Funding Tax Request Offer Name: Outcome:ECON (Economic Health)Contact: Svc Area:Sustainability Services Related Offer #:32.16 Department:Sustainability Services Admin Capital?No 1.Strengthening Regional Collaboration: adapting to regulatory changes and consumer expectations and offering practical support to ensure sustainable alternatives, this program embodies the essence of coordinated efforts among various regional organizations. It underscores the importance of a unified approach to business retention, expansion, incubation, and attraction, enhancing economic resilience in line with the City's commitment. 2.Boosting Tourism through Sustainability: Aligning to enhance the economic impact of tourism further, as outlined in the Tourism Destination Master Plan, this project leverages Fort Collins' commitment to sustainability as a draw for eco-conscious visitors. By encouraging businesses to adopt environmentally friendly practices, the initiative supports the local economy and positions the region as a leader in sustainable tourism. 3.Driving Innovation in the Climate Economy: The focus on shifting away from single-use plastics and towards sustainable alternatives taps into the climate economy as a critical driver of innovation and economic opportunities. This program aligns with the region's vision for sustained economic growth by fostering an environment where businesses can contribute to and benefit from the growing climate economy. 4.Creating a Unified Vision for Economic Growth: This initiative exemplifies creating a unified regional vision Through collaboration with the Monarca Group for culturally sensitive engagement and education. It ensures that the benefits of sustainable business practices are accessible to all, fostering a more inclusive and resilient economic landscape. In essence, by integrating sustainable business practices with strategic regional collaboration, the enhancement of the NOCOBiz Connect program directly advances the primary objective of ECON 3.1. It fosters economic resilience through innovative and sustainable development and strengthens the region's position as a leader in economic growth and environmental stewardship. Incorporating an ongoing rebate program for businesses that adopt sustainable practices aligns with our 2030 zero-waste goal. It fosters economic resilience by encouraging long-term investment in sustainability, thereby solidifying Northern Colorado's leadership in economic growth and environmental stewardship. ECON 3.1 - Collaborate with local and regional partners to achieve economic resilience in Northern Colorado. Business support for plastic and styrofoam transition through NocoBIZ Connect Javier Echeverría Choose Primary Strategic Objective: The proposed offer directly aligns with and supports ECON 3.1, aiming to bolster economic resilience in Northern Colorado through collaboration with local and regional partners. This initiative exemplifies a strategic approach to economic development by focusing on the following key areas: How does Offer Support Primary Strategic Objective: Page 174 Item 3. City of Fort Collins 2024 Sustainable Funding Tax Request Offer Name:Business support for plastic and styrofoam transition through NocoBIZ Connect Offer Description: Ongoing One-Time Total Expense Fund(s):1)256 - Sustainable Funding 2050 Tax $75,000 $75,000 $0 $75,000 $75,000 Ongoing One-Time Total Funding Source(s):1)256- Sustainable Funding Tax: Climate Action- 1 Time $75,000 $75,000 $0 $75,000 $75,000 This project enhances the NOCOBiz Connect program to align with the Plastic Pollution Reduction Act (HB21-1162). It offers education and financial incentives to help local businesses shift from single-use plastics, especially polystyrene, to sustainable alternatives. It aims to support 60 small businesses with $1,000 worth of compliant alternative products totaling $60,000 (80% of the funding) directly benefiting the businesses. The remaining $15,000 (20% of the funding) will cover the Monarca Group's services for culturally sensitive engagement, educational resources, surveys to measure adoption rates, material delivery, and project management. Monarca Group will steward these financial resources by responsibly procuring the most affordable wholesale rate for the products. This initiative seeks to foster a community-wide move towards sustainability by helping businesses navigate new regulations, and meet consumer expectations for environmental responsibility. The consultant (Monarca Group) that would implement this program has executed a similar program to this one in Longmont through PACE, achieving high rates of adoption of sustainable materials by the businesses that participated in the program. Quantitative Impacts: 1. Direct Financial Support and Resource Allocation 2. Adoption Rate and Behavioral Change Metrics: Through pre- and post-implementation surveys, the project will quantify shifts in business practices. 3. Increased Participation in Sustainability Programs Qualitative Impacts: 1. Enhanced Community Awareness and Education: The project will cultivate a deeper understanding and awareness within the business community regarding the importance of transitioning away from single-use plastics. 2. Equity-Focused Engagement: By prioritizing culturally sensitive interactions and support, the project aims to ensure that businesses across diverse communities have equal access to resources and knowledge to make this transition. This approach addresses potential barriers to adoption and ensures that the benefits of sustainability initiatives are equitably distributed. 3. Improved Community Safety and Environmental Health: Transitioning to sustainable materials reduces environmental pollutants and contributes to a healthier community ecosystem. 4. Building Resilience Through Sustainable Practices: By encouraging businesses to adopt sustainable materials and practices, the project contributes to building a more resilient local economy. Businesses that are adaptable to environmental regulations and consumer expectations are more likely to thrive, creating a model for sustainable growth that can be replicated and scaled. 5. Feedback-Driven Continuous Improvement: Utilizing survey feedback on product satisfaction, barriers to transition, and interest in future sustainability programs, the project will identify areas for improvement and expansion. This iterative approach ensures that the initiative remains responsive to the business community's needs and continuously enhances its impact. Lastly, this program is the first stage of a long-term strategy to help businesses transition into more sustainable solutions. One of the next strategies that staff is contemplating (maybe for 2025-2026 cycle) would be the implementation of a rebate that would cover the cost (up to a certain dollar amount) of a business purchasing pre-approved sustainable materials. Additional information: -Article about City of Long Beach, California ban on styrofoam and transition phases (2018). https://lbbusinessjournal.com/news/helping-businesses-and-residents-build-a-foam-free-long-beach/ -Article about the real cost of styrofoam to environment and society. https://greendiningalliance.org/2016/12/the-real-cost-of- styrofoam/ Page 175 Item 3. City of Fort Collins 2024 Sustainable Funding Tax Request Offer Name: Outcome:T&M (Transportation & Mobility)Contact: Svc Area:Planning, Dev & Transportation Related Offer #: Department:FC Moves Capital?Yes Offer Description: Ongoing One-Time Total Expense Fund(s):1)256 - Sustainable Funding 2050 Tax $57,000 $57,000 2)$0 $0 $57,000 $57,000 Ongoing One-Time Total Funding Source(s):1)256- Sustainable Funding Tax: Climate Action- 1 Time $57,000 $57,000 $0 $57,000 $57,000 This project will fill a gap in the bicycle network by striping buffered bike lanes on Laporte Ave. from Fishback Ave. to Wood St. In conjunction with the Laporte corridor improvements from Fishback Ave. to Sunset St., which are fully funded and will be completed in 2024, this project will fill the remaining gap in bike infrastructure along Laporte Ave., providing continuous bike facilities from Overland Trail to College Ave. This project is a high priority/readiness project in the Active Modes Plan. TM 6.1 - Improve safety for all modes and users of the transportation system to ultimately achieve a system with no fatalities or serious injuries. Implement bicycle infrastructure as determined in the Active Modes plan (Laporte Ave) Cortney Geary Choose Primary Strategic Objective: This offer improves safety, particularly for cyclists, by providing dedicated bicycle facilities and filling a gap in the bicycle network. How does Offer Support Primary Strategic Objective: Page 176 Item 3. City of Fort Collins 2024 Sustainable Funding Tax Request Offer Name: Outcome:ECON (Economic Health)Contact: Svc Area:Utility Services Related Offer #: Department:Utilities Customer Connections Capital?No Offer Description: Ongoing One-Time Total Expense Fund(s):1)256 - Sustainable Funding 2050 Tax $35,000 $35,000 2)$0 $0 $35,000 $35,000 Ongoing One-Time Total Funding Source(s):1)256- Sustainable Funding Tax: Climate Action- 1 Time $35,000 $35,000 $0 $35,000 $35,000 This project will help accelerate the education and knowledge of professional service providers in our community, and build and expand the knowledge of workforce which enables increased capacity to support local building requirements, OCF Big Move 6, and associated Council priorities. Examples will include scholarships to help with builders or contractors earning certifications and having the knowledge and traning to support new building codes. ENV 4.1 - Intensify efforts to meet 2030 climate, energy and 100% renewable electricity goals that are centered in equity and improve community resilience. Expand Scholarship Program for Builders and Building Industry to meet new industry techniques and future codes Brad Smith Choose Primary Strategic Objective: This provides needed building industry workforce education and training on zero energy construction and building efficiency that will lower building energy use, lower emissions, and enable building electrification. How does Offer Support Primary Strategic Objective: Page 177 Item 3. City of Fort Collins 2024 Sustainable Funding Tax Request Offer Name: Outcome:T&M (Transportation & Mobility)Contact: Svc Area:Planning, Dev & Transportation Related Offer #: Department:FC Moves Capital?No Offer Description: Ongoing One-Time Total Expense Fund(s):1)256 - Sustainable Funding 2050 Tax $25,000 $25,000 2)$0 $0 $25,000 $25,000 Ongoing One-Time Total Funding Source(s):1)256- Sustainable Funding Tax: Climate Action- 1 Time $25,000 $25,000 $0 $25,000 $25,000 The Carbon Reduction Tool, developed by SLR Associates is used to help municipalities visualize how various transportation strategies can be combined to reduce emissions and achieve climate goals over different timescales. This tool has been employed in Europe and The City of Fort Collins would be a pilot City for deployment in the U.S. The Excel-based tool can be used in an interactive setting, enabling staff to elicit meaningful input from stakeholders and policymakers on strategies to reduce transportation emissions. This is a one-time cost and the tool can be used as a decision-making tool by multiple departments throughout the City. TM 6.2 - Support an efficient, reliable transportation system for all modes of travel, enhance high- priority intersection operations, and reduce Vehicle Miles Traveled (VMT). Transportation Emissions Reduction Strategy Tool development Melina Dempsey Choose Primary Strategic Objective: This tool will help us prioritize transporation projects and TDM strategies based on their ability to reduce transporation emissions. How does Offer Support Primary Strategic Objective: Page 178 Item 3. City of Fort Collins 2024 Sustainable Funding Tax Request Offer Name: Outcome:ENV (Environmental Health)Contact: Svc Area:Information & Employee Svcs Related Offer #: Department:Operation Services Capital? Offer Description: Ongoing One-Time Total Expense Fund(s):1)256 - Sustainable Funding 2050 Tax $250,000 $250,000 2)$0 $0 $250,000 $250,000 Ongoing One-Time Total Funding Source(s):1)256- Sustainable Funding Tax: Climate Action- 1 Time $250,000 $250,000 $0 $250,000 $250,000 Install at total of 51.84 kW/DC solar PV systems (24.3 kW/DC on the fuel canopy and 27.54 kW/DC on the shop expansion) that all feed and offset the electrical use for the entire 835 Wood shop building. This system also redcues the electricity cost of the all electric addition (Groundsource Heat Pump HVAC system) of the new CNG shop space. ENV 4.1 - Intensify efforts to meet 2030 climate, energy and 100% renewable electricity goals that are centered in equity and improve community resilience. Add Solar PV System at City Facility - new fueling canopy and shop expansion at Wood Street Stu Reeve Choose Primary Strategic Objective: Directly reduces the electric energy use and supports our goal of 100% renewable electricity by 2030. How does Offer Support Primary Strategic Objective: Page 179 Item 3. City of Fort Collins 2024 Sustainable Funding Tax Request Offer Name: Outcome:ENV (Environmental Health)Contact: Svc Area:Community & Operation Services Related Offer #: Department:Natural Areas Capital? Offer Description: Ongoing One-Time Total Expense Fund(s):1)256 - Sustainable Funding 2050 Tax $300,000 $300,000 2)$0 $0 $300,000 $300,000 Ongoing One-Time Total Funding Source(s):1)256- Sustainable Funding Tax: Climate Action- 1 Time $300,000 $300,000 $0 $300,000 $300,000 The purpose of this project is to assess the health of the Cache la Poudre River (Poudre River) to inform the protection and improvement of this critical community resource. In 2017, the first-ever river health assessment and accompanying State of the Poudre River Report Card were completed for a 24-mile stretch of Poudre River from Gateway Park Natural Area near the mouth of the Poudre Canyon to the Fort Collins City Limits at I-25. This re-assessment will provide an updated snapshot of the health of the Poudre River and measure the City’s progress toward its vision of sustaining a healthy and resilient Poudre River. It provides a second data set post-Cameron Peak fire from a previous assessment effort in 2017, as well as a critical baseline prior to planned implementation of the Northern Integrated Supply Project (NISP). ENV 4.6 - Sustain and improve the health of the Cache la Poudre River and all watersheds within Fort Collins. Poudre River Health Assessment Julia Feder Choose Primary Strategic Objective: The RHAF is a critical tool for helping to identify the most appropriate and needed restoration sites along the Poudre River so the community can benefit from a healthy riparian ecosystem which includes increased carbon sequestration capacity in these restored environments. How does Offer Support Primary Strategic Objective: Page 180 Item 3. City of Fort Collins 2024 Sustainable Funding Tax Request Offer Name: Outcome:ENV (Environmental Health)Contact: Svc Area:Community & Operation Services Related Offer #: Department:Natural Areas Capital?No Offer Description: Ongoing One-Time Total Expense Fund(s):1)256 - Sustainable Funding 2050 Tax $50,000 $50,000 2)$0 $0 $50,000 $50,000 Ongoing One-Time Total Funding Source(s):1)256- Sustainable Funding Tax: Climate Action- 1 Time $50,000 $50,000 $0 $50,000 $50,000 Request funding to update 25 trash cans in the City of Fort Collins Natural Areas to wildlife safe cans. The need for this update is driven by multiple factors including increased human use, increased production of trash, increased windblown trash across the landscape, habituation of wildlife, and increase in human/wildlife conflict. The increase in these factors is causing a negative feedback loop that can be mitigated by updating the units to a more sustainable and structurally sound system that (1) completely restricts access to animals (2) the enclosed unit reduces windblown trash into the environment and (3) promotes increased health to our public lands. ENV 4.5 - Protect and enhance natural resources on City-owned properties and throughout the community. Update trash/recycle cans in the City of Fort Collins Natural Areas, to wildlife safe cans. Rebecca Pomering & Mason Mizener Choose Primary Strategic Objective: Strategic objective 4.5 focus is to conserve and enhance natural resources for wildlife habitats and provide high-quality natural spaces to the community. This offer directly supports this objective through mitigating direct flow of trash into our communities' natural spaces; automatically providing higher quality habitat for animals and a better & healthier experience for the community. How does Offer Support Primary Strategic Objective: Page 181 Item 3. City of Fort Collins 2024 Sustainable Funding Tax Request Offer Name: Outcome:ENV (Environmental Health)Contact: Svc Area:Community & Operation Services Related Offer #: Department:Natural Areas Capital?No Offer Description: Ongoing One-Time Total Expense Fund(s):1)256 - Sustainable Funding 2050 Tax $35,000 $35,000 2)$0 $0 $35,000 $35,000 Ongoing One-Time Total Funding Source(s):1)256- Sustainable Funding Tax: Climate Action- 1 Time $35,000 $35,000 $0 $35,000 $35,000 Our project will fund the outreach effort needed to engage the Native American and Indigenous community in building climate resilient grasslands at Soapstone Prairie. Restoring shortgrass prairie on Natural Areas will result in a significant amount of sequested carbon, estimated at -24,000 tCO2e by 2050 (Fort Collins GGIMP Report by Cascadia). Funds for the project will be used for facilitation and engagement with Native American and Indigenous partners, and working with knowledge keepers and elders. ENV 4.5 - Protect and enhance natural resources on City-owned properties and throughout the community. Soapstone Prairie Grazing Plan Julia Feder Choose Primary Strategic Objective: Our project will lead to increased rates of carbon sequestration at Soapstone Prairie Natural Area by creating a grassland health plan with the Native American and Indigenous community. How does Offer Support Primary Strategic Objective: Page 182 Item 3. Headline Copy Goes Here April 9, 2024 Council Work Session 2024 Appropriation of the 2050 Tax: Staff Recommendations Page 183 Item 3. Headline Copy Goes Here 2 2023 Ballot Language of the 2050 Tax •Summary 2023 Ballot Language: SHALL CITY OF FORT COLLINS TAXES BE INCREASED BY $23,800,000 IN THE FIRST FULL FISCAL YEAR (2024), AND BY SUCH AMOUNTS COLLECTED ANNUALLY THEREAFTER, FROM A .50% SALES AND USE TAX BEGINNING JANUARY 1, 2024, AND ENDING AT MIDNIGHT ON DECEMBER 31, 2050, WITH THE TAX REVENUES SPENT ONLY FOR THE FOLLOWING: -50% FOR THE REPLACEMENT, UPGRADE, MAINTENANCE, AND ACCESSIBILITY OF PARKS FACILITIES AND FOR THE REPLACEMENT AND CONSTRUCTION OF INDOOR AND OUTDOOR RECREATION AND POOL FACILITIES, -25% FOR PROGRAMS AND PROJECTS ADVANCING GREENHOUSE GAS AND AIR POLLUTION REDUCTION, THE CITY’S 2030 GOAL OF 100% RENEWABLE ELECTRICITY, AND THE CITY’S 2050 GOAL OF COMMUNITY-WIDE CARBON NEUTRALITY, AND -25% FOR THE CITY’S TRANSIT SYSTEM, INCLUDING, WITHOUT LIMITATION, INFRASTRUCTURE IMPROVEMENTS, PURCHASE OF EQUIPMENT, AND UPGRADED AND EXPANDED SERVICES; •2024 annualized Revenue is conservatively projected at $21.8M, split into the three categories. However, only 11 months of revenue will be realized in 2024, –$10.90M for Parks and Recreation ($10.0M for 2024) –5.45M for Transit ($5.0M for 2024) –5.45M for Climate ($5.0M for 2024)Page 184 Item 3. Headline Copy Goes Here 3 Summary of Proposed 2024 Appropriation of the 2050 Tax Proposed Appropriations 2050 Tax Category Recommended Funding for 2024 Subtotals by Category Forecasted 2024 Revenue* Est. 2024 Year End Reserves 4.0 FTE – Expanded Parks and Recreation Infrastructure Replacement Parks and Rec 5,302,586 5,302,586$ 10,000,000$ 4,697,414$ Transit Operations Pay Plan Revision Transit 547,882 Sustainable Bus Operator Schedule Transit 441,036 Increased Transit Enforcement & Support Transit 160,676 1,149,594$ 5,000,000$ 3,850,406$ Introduce new capital for Utilities Epic Loans program Climate 600,000 Comprehensive exterior lighting retrofits at City Recreation Centers Climate 500,000 Grants to offset utility fees for affordable housing development, particularly electric & water Climate 400,000 Implement bicycle infrastructure as determined in the Active Modes plan (Centre Ave) Climate 350,000 Repair Riverside Community Solar Array Climate 250,000 Fund Healthy Homes Program Climate 250,000 Mobility Hubs Plan development Climate 200,000 Expand Mobile Home Park Mini-grant through Neighborhood Services Climate 200,000 Replace existing Parks Utility Carts with electric Utility carts Climate 200,000 Identify and determine critical support to upgrade under-resourced buildings, focusing on commercial/MF buildings Climate 100,000 Business support for plastic and styrofoam transition through NocoBIZ Connect Climate 75,000 Implement bicycle infrastructure as determined in the Active Modes plan (Laporte Ave) Climate 57,000 Expand Scholarship Program for Builders / Building Industry to meet new industry techniques & future codes Climate 35,000 Transportation Emissions Reduction Strategy Tool development Climate 25,000 Add Solar PV System at City Facility - new fueling canopy and shop expansion at Wood St.Climate 250,000 3,492,000$ Poudre River Health Assessment Climate - Elective 300,000 Update trash/recycle cans in the City of Fort Collins Natural Areas, to wildlife safe cans.Climate - Elective 50,000 Soapstone Prairie Grazing Plan Climate - Elective 35,000 3,877,000$ 5,000,000$ 1,123,000$ * 2050 Tax Revenue collected in 2024 will only be 11 months in the first year 2024 Totals for the 2050 Tax 10,329,180$ 20,000,000$ 9,670,820$ Subtotal of Parks and Rec Subtotal of Transit Subtotal of All Climate Subtotal of Primary Climate Page 185 Item 3. Headline Copy Goes Here 4 Parks and Recreation Page 186 Item 3. Headline Copy Goes Here 5 Parks & Recreation 2050 Tax •Goal to provide equitable access to parks and recreation experiences, while enhancing financial sustainability of Parks and Recreation •Parks and Recreation teams recommend $5.3M of funding for 2024 –$4.75M for projects to begin addressing top infrastructure needs –$0.3M initial staffing to create program to be good stewards of funding through 2050 –$0.25M for Recreation Capital Improvement Plan –Funding in addition to baseline commitment in previous BFO cycles •Funding request is ~1/2 of the estimated generation for Parks and Recreation in 2024 –Seeds a reserve balance as we set up the program –Reserve will also provide some opportunity to assist with future SE Recreation Center costsPage 187 Item 3. Headline Copy Goes Here 6 Parks Asset Evaluation •Parks and recreation centers will contain some consistent core amenities, but largely offer unique user experiences across the system •Ranking assets for replacement combines many different criteria, including safety, access, functionality, and more to express relative priority across all amenities Page 188 Item 3. Headline Copy Goes Here 7 Top 40 from Parks Infrastructure Replacement Program (IRP) Plan Page 189 Item 3. Headline Copy Goes Here 8 Recreation -Potential IRP 2024-2028 Projects Rolland Moore Tennis Complex •Pro shop and restroom replacement EPIC •Ice Flooring •Dasher boards •Pool shell & Pool deck •ICE chiller system upgrade and replacement •Staff office security door Northside Aztlan Community Center •Front Desk Renovation •Volleyball Nets •Childcare outdoor play area Foothills Activity Center •Multipurpose room gymnasium door Senior Center •Lobby Flooring •Office Security Pottery Studio •Kiln Replacement City Park Pool •Design for slide and play structure replacement •Pool house renovation/replacementPage 190 Item 3. Headline Copy Goes HereParks and Recreation Top Needs 9 Page 191 Item 3. Headline Copy Goes Here 10 Transit Page 192 Item 3. Headline Copy Goes Here 11 Transit Fund Criteria •Workforce Stabilization: Improve Recruitment & Retention Levels of Front-Line Staff •Improved Pay & Benefits, Sustainable Schedules •Improve Safety & Security on Transit: Increased Safety & Security Support •Financial Resiliency: Build reserve funds to support Transit system build-out Stabilize Staffing Levels Resume Service Levels Increase Ridership Page 193 Item 3. Headline Copy Goes Here 12 Recommended Transit Offers Workforce Stabilization 1.Increase existing and starting wage for Bus Operators, Dispatchers, and Transit Service Officers •Pay to be more competitive with other jobs in the transportation sector in Northern Colorado 2. Increase the number of benefited positions and improve schedules •Add four new 40-hour benefited positions •Convert two hourly positions to .5 FTEs •Convert one hourly position to 1.0 FTE 2024 Estimated Sales Tax Collections $5,000,000 1. Wage Revision $547,882 2. Benefited Positions $441,036 3. Safety & Security Improvements $160,676 Reserve for Transit Buildout $3,850,406 Safety & Security Improvements 3. Add an additional Transit Service Officer & Lead Transit Service Officer •Increase enforcement and support levels throughout the system Page 194 Item 3. Headline Copy Goes Here 13 Climate Page 195 Item 3. Headline Copy Goes Here 14 2050 Tax: Our Climate Future Recommended Budget -Summary •15 Recommended Offers; 3 additional “elective” offers •$3,492,000 total request for Recommended Offers in 2024 •8,740 MTCO2e projected lifetime savings •Equivalent to emissions from 2,080 gasoline-powered cars driven for a year •<1% reduction in 2030; many foundational projects, with potential to drive more toward 2050 goal •Additional anticipated impacts: •unquantified GHG reductions, reduced plastic waste, increased safety for active modes users, reduced non-GHG air pollutants, improved “dark sky” lighting, and increased resilience and comfort in homes for residents Page 196 Item 3. Headline Copy Goes Here 15 Process Summary Development of Project Criteria by Our Climate Future leadership Meeting with Next Moves Team (representatives from community, SSA, Utilities, FC Moves) to build initial list of potential projects Identification of gaps in initial list and direct invitations Prioritization of projects by criteria Review and refinement of recommendation by Our Climate Future Executive Committee Page 197 Item 3. Headline Copy Goes Here 16 Climate Funds Criteria Directly aligned with Our Climate Future No brand-new programs Possible to be executed in 2024 and to continue in future years Can help tell a powerful story about direct community benefit of the new revenue One-time offers only (ongoing offers should use 2025/2026 BFO process) Will not disrupt or takeaway from other existing commitments Page 198 Item 3. Headline Copy Goes HereRecommended Project Funding 17 Page 199 Item 3. Headline Copy Goes Here 18 “Elective”Funding Opportunities Sequestration potential: ~34,000 MTCO2e (lifetime) Page 200 Item 3. Headline Copy Goes HereConnections to Council’s Priorities for 2024-25 19 Page 201 Item 3. Headline Copy Goes Here 20 Back-up Slides -Parks and Recreation Page 202 Item 3. Headline Copy Goes Here 21 Playground Assessment Grading Criteria Page 203 Item 3. Headline Copy Goes Here 22 Playground Evaluation Example Page 204 Item 3. Headline Copy Goes Here 23 Back-up Slides -Climate Page 205 Item 3. Headline Copy Goes Here 24 Impacts of Recommendation Package Page 206 Item 3. Headline Copy Goes Here 25 Type of Impact towards OCF Goals (Big Moves) Long-term 4 - Convenient Transportation Choices Implement bicycle infrastructure as determined in the Active Modes plan (Centre Ave) Implement bicycle infrastructure as determined in the Active Modes plan (Laporte Ave) 7 - Healthy, Affordable Housing Launch grants to offset utility fees for affordable housing development, particularly electric and water 9 - Healthy Local Economy and Jobs Expand Scholarship Program for Builders and Building Industry to meet new industry techniques and future codes Near-term 6 - Efficient, Emissions Free Buildings Comprehensive exterior lighting retrofits at City Recreation Centers Expand Mobile Home Park Mini-grant through Neighborhood Services Fund Healthy Homes Program 10 - Zero Waste Economy Business support for plastic and styrofoam transition through NocoBIZ Connect 12 - 100% Renewable Electricity Repair Riverside Community Solar Array Add solar PV on City facility (835 Wood St) 13 - Electric cars and fleets Replace existing Parks Utility Carts with electric Utility carts Needed next step 4 - Convenient Transportation Choices Mobility Hubs Plan development Transportation Emissions Reduction Strategy Tool development 6 - Efficient, Emissions Free Buildings Identify and determine critical support needed to upgrade under-resourced buildings, focusing on commercial /MF buildings Introduce new capital for utilities Epic Loans program Page 207 Item 3. Headline Copy Goes Here 26 “Needed Next Steps" Examples Offers identified as “needed next steps” are critical components of the following strategies and associated GHG savings: •Implementation of Building Performance Standards –132,500 MTCO2e in 2030 Equivalent emissions to ~29,500 gasoline-powered cars driven for a year •Implementation of the Active Modes Plan –38,100 MTCO2e in 2030 Equivalent emissions to ~8,500 gasoline-powered cars driven for a year Page 208 Item 3. Headline Copy Goes Here 27 Elective Offers Page 209 Item 3.