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HomeMy WebLinkAboutAgenda - Full - Finance Committee - 03/20/2024 -Finance Administration 215 N. Mason 2nd Floor PO Box 580 Fort Collins, CO 80522 970.221.6788 970.221.6782 - fax fcgov.com AGENDA Council Finance & Audit Committee Hybrid Meeting March 20, 2024 4:30 - 7:00 pm CIC Room Zoom Meeting https://zoom.us/j/8140111859 Approval of Minutes from the February 23rd, 2024, Council Finance Committee meeting. 1. 2024 Reappropriation L. Pollack Discussion: 15 mins. 2. 2050 Tax Appropriations for 2024 L. Pollack Presentation: 20 mins. Discussion: 40 mins. 3. Poudre Fire Authority Intergovernmental Agreement D. Lenz Presentation: 10 mins. Discussion: 20 mins. 4.CCIP & Streets Maintenance Tax Renewals T. Storin G. Sawyer Presentation: 10 mins. Discussion: 35 mins. Page 1 of 188 Page 2 of 188 Council Finance Committee 2024 Agenda Planning Calendar Revised 03/06/24 ck March 20th 2024 2024 Reappropriation 15 min L. Pollack 2050 Tax Appropriations for 2024 60 min L. Pollack Poudre Fire Authority Intergovernmental Agreement 30 min D. Lenz CCIP and Streets Maintenance Tax Renewals 45 min T. Storin G. Sawyer April 4th 2024 2025-2026 Budget Process Review 30 min L. Pollack EPIC Home Loan Bank Renewal 15 min B. Tholl G. Pease May 2nd 2024 June 6th 2024 July 3rd 2024 August 1st 2024 Unscheduled Topics Municipal Court Renovation and 215 N. Mason HVAC Update/Upgrade September – Annual Adjustment Ordinance – Lawrence Pollack Page 3 of 188 Page 4 of 188 Finance Administration 215 N. Mason 2nd Floor PO Box 580 Fort Collins, CO 80522 970.221.6788 970.221.6782 - fax fcgov.com Council Finance Committee Hybrid Meeting CIC Room / Zoom February 23, 2024 1:00 - 3:00 pm Council Attendees: Mayor Arndt, Emily Francis, Kelly Ohlson Staff: Kelly DiMartino, Tyler Marr, Travis Storin, Denzel Maxwell, Claudia Menendez, Lance Smith, Jason Graham, Phil Ladd, Ryan Malarky, Andrea Smith, Gunnar Hale, Monica Martinez, Drew Brooks, Brad Buckman, Dana Hornkohl, Dave Lenz, Trevor Nash, Terri Runyan, Ginny Sawyer, Renee Reeves, Lawrence Pollack, Jo Cech, Nina Bodenhamer, Victoria Shaw, Zack Mozer, Carolyn Koontz Others: Keivn Jones, Chamber Meeting called to order at 1:00 pm Approval of minutes from December 14, 2023, Council Finance Committee Meeting. Emily Francis moved for approval of the minutes as presented. Mayor Arndt seconded the motion. The minutes were approved unanimously via roll call by; Mayor Arndt, Emly Francis, Kelly Ohlson. A. Scheduling & Chair for 2024 – 2025 Council Term – Travis Storin Mayor Arndt was nominated to be Chairperson of the Council Finance Committee by Emily Francis. Mayor Arndt was elected as Chairperson unanimously approved by roll call; Kelly Ohlson, Mayor Arndt and Emily Francis. Upon confirmation from MPT Emily Francis, 2024 Council Finance Committee Meetings will take place as hybrid meetings on the first Thursday of the month starting in April – 4-6 pm. The next meeting will be held Wednesday, March 20th 4:30- 7 pm. B. Utility Rate / Debt Forecast Lance Smith, Sr. Director, Utilities Strategic Finance SUBJECT FOR DISCUSSION – Utilities 2023 Capital Improvement Plans and Strategic Financial Plan Updates for the Water, Wastewater and Stormwater Utilities EXECUTIVE SUMMARY The purpose of this agenda item is to provide the Council Finance Committee with an overview of the planning processes underway within Fort Collins Utilities. This agenda item will focus on the Water, Wastewater and Page 5 of 188 Stormwater Enterprise Funds. The Light & Power Enterprise Fund was presented for discussion last December. The 2023 Capital Improvement Plans (CIPs) and the 2024 Strategic Financial Plans for each utility are outlined and attached. The resulting investment projections set the basis for beginning the 2025-26 Budgeting For Outcomes (BFO) cycle. The overall 10-year rate projections for each utility is also presented here along with the forecasted debt issuance needs. Recognizing that these utilities share customers, a more comprehensive view is also taken here of how the combined plans will impact what our community pays for utility services over the coming decade and the levels of service to be expected for such. The capital improvement plans are intended to maintain the current levels of service for each utility through sustainable asset renewal plans and targeted new infrastructure. This can be achieved through the higher than previously anticipated rate increases being planned, and timely debt issuances shown here. For the 2025-26 Budgeting For Outcomes process the table below summarizes the impact of the proposed rate increases for the average residential customer. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Does the Council Finance Committee support the Utilities Strategic Financial Plan assumptions ahead of the 2025-26 BFO cycle? In particular, the projected rate increases necessary to meet anticipated revenue requirements. BACKGROUND/DISCUSSION This is a continuation of the discussion that began in December with the presentation of the Electric utility financial plan and associated rate and debt forecasts. With this presentation of the Water, Wastewater and Stormwater utility’s financial picture, any feedback will be utilized in developing the initial 2025-26 budget offers. After discussing each of these utility services, the comprehensive picture is presented and the forecasted impacts on customer utility costs can be seen. The feasibility of the financial paths presented is then discussed. Strategic Financial Planning Process The strategic financial planning process is intended to provide a long-term plan for the efficient and effective financial management of each utility in a manner that is consistent with the City’s values and mission and aligned with the City’s biennial Budget Process and Strategic Planning Process. Much of the long-term strategic direction for each utility requires significant capital investment spanning more than one budget cycle making a long-term capital improvement plan necessary to support the strategic plan. Whereas strategic planning sets the operational direction of where the utilities are going in the future, strategic financial planning provides a financial context for this movement. The strategic financial plans ensure the long- 2023 2024 2025 2026 Res idential Utility Cost Baseline % Change Bill % Change Bill % Change Bill Electric $84.20 5.0% $88.41 6.0% $93.71 5.0% $98.40 Water $51.00 4.0% $53.04 7.0% $56.75 9.0% $61.86 Wastewater $35.61 4.0% $37.03 6.0% $39.26 8.0% $42.40 Stormwater $22.42 3.0% $23.09 6.0% $24.48 6.0% $25.95 Total $193.23 4.3% $201.58 6.3% $214.20 6.7% $228.60 Page 6 of 188 term operational and fiscal objectives and level of service targets for each of the utilities are met in a financially sustainable and resilient manner. The three main financial metrics from a long-term financial planning perspective are: 1. Operating Margin > 3.0% 2. Debt Coverage Ratio > 2.0 3. Annual Rate Adjustments < 5.0% The confidence in the long-term financial modeling that is the basis of these forecasts depends on the assumptions used in the modeling. Some of those assumptions are macro-economic assumptions around long- term inflation, how inflation affects the cost of debt service through the associated interest rates and how well the economy is doing in general. The recent pandemic has stressed the economy with supply chain constraints, yet it has also highlighted the necessity for utility services as is reflected in the relatively stable revenues for such. Other assumptions are more micro-economic and, as such, depend on internal efforts to effectively manage operating costs along with capital and resource planning. The financial resiliency of each of these utility enterprise funds relies on active management of ongoing operating and maintenance expenses, as well as planning for large capital expenditures and strong leadership over the coming decade. The capital investment required to maintain the current levels of service provided by each of the four utility services to the community requires a long planning horizon and consistent reevaluation and prioritization. Ahead of the biennial budget process beginning both the 10-year Strategic Financial Plan and the associated 10- year Capital Improvement Plan are updated and presented to the Council Finance Committee for discussion to ensure that adequate operating revenues are expected to support the City Manager’s Recommended Budget. Water Enterprise Fund The 10-year Capital Improvement Plan (CIP) for the Water Fund consists of projects needed to provide an adequate water supply such as Halligan Reservoir, a modern water quality laboratory, some improvements needed at the water treatment plant and asset renewal both at the plant and the water distribution infrastructure. It is anticipated in the CIP that it will take a few years to reach the targeted asset renewal rate of 1.0% per year. Page 7 of 188 The 2023 CIP for Water has $458M of capital investments through 2033. This is a 60% increase over the 2021 plan. The 2023 CIP includes significant additional funding needed for the Halligan Reservoir - $308M compared to $120M in 2021. Page 8 of 188 Water Operations The financial modeling involved in updating the strategic financial plan analyzes operating revenues and expenses to determine the amount of operating income that can fund capital investment before issuing any new debt. Operating revenues have grown modestly over the past decade through rate increases while total water sales have remained almost flat. Based on the projected revenue requirements for O&M and capital investment revenues are projected to grow at a rate significantly higher than the past decade at 7.9% compared to 1.9% since 2013. The colored area represents the 80% confidence band around the expected operating revenue. Water O&M expenses have increased at an inflationary rate over the past decade. This has been achieved through active management. The rate and debt issuance forecasts in the plan assume that O&M will increase at a rate close to the rate of inflation of 3.5% annually through 2033. Page 9 of 188 The colored area represents the 80% confidence band around the expected operating expense. By limiting O&M to a more modest rate of growth than in the past 2 years it is expected that the Water Fund will generate sufficient operating income consistently to fund asset renewal investments at a level of 50-75% of the targeted levels. This will limit the amount of debt issuance that is necessary over the coming decade. Page 10 of 188 Water Rate and Debt Forecasts Rate increases are anticipated to be significantly over inflationary pressures in the coming decade due to significant changes in the necessary capital investments which require higher adjustments to ensure adequate operating revenue is generated to support the system renewal investments. Some debt is anticipated to be needed for capital investments over the next decade, as well. It should be recognized that actual revenues realized from a rate increase are not typically the full amount of the rate increase. There is some elasticity to rate adjustments. Additionally, most utility services are weather dependent, so it is possible to occasionally realize more or less revenue than anticipated in rate design for a given year although this weather variability is expected to balance out over an extended period. Wastewater Enterprise Fund Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Rate Increase 4.0% 4.0% 7.0% 9.0% 7-10% 7-10% 7-10% 7-10% 7-10% 7-10% 7-10% Debt Issued ($M)$154.0 $43.0 2023 2022 2021 2020 2019 Water Adopted Rate Increase 4.0% 0.0% 2.0% 0.0% 0.0% Realized Revenue Increase -8.8% 1.7% 1.7% 4.2% -6.1% Page 11 of 188 Wastewater CIP The Capital Improvement Plan for the Wastewater Fund includes improvements necessary at both water reclamation facilities, a modern pollution control laboratory and a ramping up of investment in asset renewal programs for the collection system. Prioritization of the capital projects will need to be considered before the 2025-26 budget process to ensure investments are made where needed the most. The amount of anticipated capital investment is greater than what has been made over the previous decade by a factor of over three, consistent with what has been seen in the other wet utilities in 2023. This will require significant operational planning and project management to ensure that the bond revenue is utilized efficiently. Page 12 of 188 Wastewater Operations Operating revenues have grown very modestly over the past decade at 1.9% annually after going through some larger rate adjustments through 2012. Moderate rate adjustments will be necessary going forward to increase revenues in this fund as wastewater services are not metered but rather depend on the amount of water being consumed by a customer. Conservation efforts on water usage can negatively impact revenues for the wastewater utility. Almost no revenue growth in residential services over the past decade combined with reduced commercial wastewater demands has put rate pressure on the wastewater utility. The colored area represents the 80% confidence band around the expected operating revenue. Page 13 of 188 Wastewater O&M has increased modestly over the past decade as well and is expected to continue to grow modestly at around the historical inflationary level of 3-5%. The colored area represents the 80% confidence band around the expected operating expense. By limiting O&M to a more modest rate of growth in all departments it is expected that the Wastewater Fund will generate sufficient operating income consistently to fund asset renewal investments at 50-75% of the targeted levels. This will limit the amount of debt issuance that is necessary over the coming decade. Page 14 of 188 The growing difference between the operating revenue and operating expense allows for more asset renewal to be funded with less debt issuances than would be necessary without such operating income. Moderate rate adjustments will allow for pledged revenues to be sufficient for any anticipated debt issuances over the next few decades. Wastewater Rate and Debt Forecasts As the table below shows, there will be the need to issue debt for several capital investments over the next decade. The first such issuance should be done in 2025 as part of the 2025-26 BFO cycle. Moderate rate adjustments will be necessary to increase the net pledged revenues available for debt service as the debt is issued. Again, actual revenues realized from a rate increase are not typically the full amount of the rate increase. It is typical to realize more or less revenue than anticipated in rate design for a given year due to customer response to rate signals. Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Rate Increase 4.0% 4.0% 6.0% 8.0% 6-8% 6-8% 6-8% 6-8% 6-8% 6-8% 6-8% Debt Issued ($M)$59.0 $52.0 $59.0 2023 2022 2021 2020 2019 Wastewater Adopted Rate Increase 4.0% 0.0% 0.0% 0.0% 0.0% Realized Revenue Increase 2.7% 1.1% 7.3% -1.9% -2.0% Page 15 of 188 Stormwater Enterprise Fund Stormwater CIP The Capital Improvement Plan for the Stormwater Fund includes new cost estimates for all anticipated initial buildout projects. Updating the cost estimates, along with some preliminary design refinements to some of the project requirements, increased the anticipated 10-year capital investment needed to build out the stormwater infrastructure from $171M in the 2021 CIP to $239M in the 2023 CIP. Cost adjustments for stream restoration projects are also included in the plan which now shows $35M in stream restoration projects in addition to the water quality and flood protection projects. The CIP will require investing almost 4 times as much each year in capital infrastructure than the previous decade’s level of investment. This will require significant operational planning and project management to ensure that the bond revenue is utilized efficiently. The CIP with the current projection of flood protection and stream rehabilitation work is shown below. The trend in the anticipated capital investments seen in all 4 utility’s CIPs is cautionary. With each review and update of the capital improvement plans there is an escalation of the estimated total investment required. This is being driven primarily by higher cost estimates for known capital projects but also from new projects being identified. Page 16 of 188 Stormwater Operations Operating revenues have grown modestly over the past decade at an annual rate of 2.7% primarily through annexations and infill development along with some modest rate adjustments. The colored area represents the 95% confidence band around the expected operating revenue. Stormwater O&M has increased at a higher rate of 6.0% annually over the past decade as more infrastructure is built requiring more O&M. The financial forecast recognizes this but assumes that the growth can be managed to increase at the rate of inflation. Page 17 of 188 The colored area represents the 95% confidence band around the expected operating expense. By managing O&M growth to a more modest rate of growth than in the past 2 years while increasing charges for stormwater services it is expected that the Stormwater Fund will generate sufficient operating income consistently to fund asset renewal investments at a level of 75-90% of the targeted levels. This will limit the amount of debt issuance that is necessary over the coming decade. Page 18 of 188 The growing divergence between the operating revenue and operating expense is necessary to increase the net pledged revenues necessary to cover the increased outstanding debt over the next few decades. Stormwater Rate and Debt Forecasts With the strong operating income being generated every year in this utility only providing a fourth of the anticipated capital investment required to fully build out the infrastructure for the community, it will be necessary to issue significant debt to complete the remaining flood mitigation infrastructure. The table below shows the amount of debt that is anticipated to be issued over the next decade. There will be the need to issue debt for several capital investments over the next decade. The first such issuance was done in 2023 as part of the 2023-24 BFO cycle. The next issuance is expected in 2026 as part of the 2025-26 BFO cycle. Moderate rate adjustments will be necessary to increase the net pledged revenues available for debt service as the debt is issued. As with the other utilities, actual revenues realized from a rate increase are not typically the full amount of the rate increase. Because customer growth has driven revenue increases in the recent past, this utility has seen a consistently higher growth in revenues than the associated rate increases. Conclusions and Next Steps Over the past two meetings ten-year rate and debt forecasts have been discussed which indicate that the significant capital investments expected over the coming decade can be achieved for each utility independently. However, it is also necessary to look more holistically at the impact of these plans on our community. Because of significant increases on the CIPs, larger rate increases will be needed in the next budget cycle to fund capital investments. The longer-term rate projections shown above are subject to change as active measures are developed and taken to manage O&M expenses to more modest rates of growth than in the most recent few years. The table here shows a combined rate impact to our ratepayers that is larger than we have seen since 2012. Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Rate Increase 3.0% 3.0% 6.0% 6.0% 5-7% 3-5% 4-6% 4-6% 6-8% 6-8% 6-8% Debt Issued ($M)$45.0 $58.0 $76.0 2023 2022 2021 2020 2019 Stormwater Adopted Rate Increase 3.0% 0.0% 0.0% 2.0% 2.0% Realized Revenue Increase 4.6% 0.0% 0.7% 2.7% 2.6% 2023 2024 2025 2026 Res idential Utility Cost Baseline % Change Bill % Change Bill % Change Bill Electric $84.20 5.0% $88.41 6.0% $93.71 5.0% $98.40 Water $51.00 4.0% $53.04 7.0% $56.75 9.0% $61.86 Wastewater $35.61 4.0% $37.03 6.0% $39.26 8.0% $42.40 Stormwater $22.42 3.0% $23.09 6.0% $24.48 6.0% $25.95 Total $193.23 4.3% $201.58 6.3% $214.20 6.7% $228.60 Page 19 of 188 Discussion / Next Steps; Water Kelly Ohlson; (regarding slide #7 - see above) in 2021, we had $107M for Halligan and then in 2023 we had $240M. What is the difference in the numbers? Lance Smith; we have been going through the permitting process for quite some time. As we got near to the end of the federal permitting process, we really started sharpening our pencils and got a new cost estimate, which we know is significantly higher, but we feel it is much more realistic than what we had. Kelly 0hlson; it is a big change in 2-3 years. Lance Smith; it is – we hired some consultants and did some design work around that. Emily Francis; in the packet it says $308M. Jason Graham; $308M is the total cost, $240M is the construction. Mayor Arndt; does this include estimated litigation? Jason Graham; I am not sure. Page 20 of 188 Mayor Arndt; I think we need to add that to this estimate. Travis Storin; one other area in that same vein, but on the other side of the ledger – I don’t think this presumes any grant funding at this point, but we have taken steps to allow this contract to be federalized, should we identify a grant opportunity. We do think that with the federal legislation in the last 2 ½ years, this could be a really good candidate. Legal reserve notwithstanding, at this point, fairly conservative on the funding side. Kelly Ohlson; Halligan history – a historical perspective would be helpful just so Council and others can learn in the future, I would like to see a slide of the history of Halligan estimates going back 20-25 years for the next time we discuss this. You can break it out into permitting, construction or however you want. Mayor Arndt; let’s include what we have already paid out as part of the decision set. Jason Graham; we can do that – ACTION ITEM; create a historical slide going back to 2002 showing estimate revisions / cost changes / what we have already paid out. Travis Storin; Lance is signaling the biggest mover of our rate increase here is the capital plan and the biggest mover to the capital plan is Halligan. Wastewater 2021 - 2024 – significant changes – declining operating margin – costs increasing – debt coverage ratio – to meet debt service Emily Francis; can you speak more about the development fees declining? Lance Smith; even though development is happening on the east side of town that is not impacting wastewater. Tyler Marr; it tracks overall that we saw a decline in development activity last year as interest rates went up. Mayor Arndt; Less and less of a revenue source. Page 21 of 188 Stormwater Fund has $19M in operating revenue Mayor Arndt; what is the spike in 2025? Downtown? Lance Smith; in 2025 we have the Oak Street Project as part of the Downtown Stormwater Improvement Program and in 2030 we have the next phase of that. Also, the Magnolia / Maple Outfall – higher cost estimates. We have seen O&M growth at 6% annually over the last decade – when we look at what we had forecasted 2021 versus 2024. We issued $40M instead of $80M in debt in 2024 to pay for the Oak Street portion. Going forward we will need to issue more debt but will also need to manage O&M costs. Page 22 of 188 Mayor Arndt; O&M is higher because of the intensity of the storms we are seeing –is there any impact on that from climate change issues? Why is O&M going up higher than others? Jason Graham; we don’t know exactly why it is going up other than we do have increased monitoring, some aging infrastructure, staff. We can’t say it is due to storms or the magnitude. Lance Smith; mowing is a bit part of it. Page 23 of 188 Lance Smith; (see slide 15 above) rate increases have been less than 3% but going forward, I would not say they are gradual or modest. Part of what is driving that is O&M is starting to increase as inflation becomes an issue. We are going to need to Issue more debt to fund the CIP and will have significantly more outstanding debt than we currently have. Primary drivers behind rate pressures. What does this mean to a residential customer? This is not in range of gradual and modest. – recommending that we go with this level of rate increase; 6.3% in 2025 6.7% in 2026 We are going to work on limiting O&M growth to the extent that we can. Some of the capital projects may get delayed. Litigation and permitting – internally we will look to see if we can push things out. Mayor Arndt; it is hard to know the ins and outs – I trust you. Residential drinking water is a right and we should keep that base level with the least amount of rate increase – instead of saying the base rate goes up by 4% - folks getting hit hard with cost-of-living increases; food, shelter, etc. I prefer to graduate this up gradually. Emily Francis; I would agree with shifting more. I am curious in reading and looking at this, at what point do we say this isn’t a great plan for our future. We need to look at alternatives to leveling out rate increases, and if that means changing or altering. I am not comfortable with where we are at. We need to adjust our plans, so we have a more even approach and what are those trade- offs? Tyler Marr; we have begun to have those conversations already, as we tend to agree. As Lance said, we are not here today to say these are modest and gradual increases. I think and Jason can speak to this in more detail, but depending on the fund some of those tradeoffs are clearer than others. For example, the cost of not issuing the debt in Stormwater is that we stay at status quo. We don’t advance some of the downtown plan – we could just delay an outfall by however many years. That might not be palpable to some folks, and it is Page 24 of 188 a very clear lever you can pull. In Wastewater, the headworks replacement – some of those are key operational items. If we don’t find a way to get to some of these asset maintenance goals, we risk system failures in the long term that could actually be more expensive. There are tradeoffs and we will continue to go through the CCIPs with a fine-tooth comb and depending on the fund, the cost of doing business is substantially increasing. Emily Francis; one of the things that is challenging for council members is keeping track of all of the approvals you make and how that might lead to rate increases like this. What will happen to the update the plan or prioritization or coming back? Understanding the multiple impacts on top of each can get lost when they are spread out over 10 years. Travis Storin; the immediate parliamentary action that is in front of you is proposed rate increases for next year that would be brought to Council this fall. As a committee member, you could say to staff, I want to see this again a year from now. I don’t want to wait the normal 2 years for the next budget cycle. A lot of us on staff leadership across the city including utilities had similar sticker shock. There are some O&M questions but primarily we are talking about the capital plan. We have our own questions around; ok we have big movers like Halligan but even the others like Stormwater and Wastewater – this is just a higher level of capital than we have actually been able to construct. We have our own questions too, like these are the plans that make those asset management needs whole on paper but what are we actually able to deliver on in the physical world? There is no real action in front of you until this fall when rates come up. I think the near-term rates are pretty solid and we can juggle where that impact is felt in our community. It is the longer-term rate increases that have us most concerned. Emily Francis; I am in favor of having this comes back in one year – What the tradeoffs are and to look at a potentially lower level of service. Kelly Ohlson; one slide was almost $1B of capital – the four columns added up to 900M+. Certain elements have been in love with Halligan for a long time - others have not. I don’t know what else to eliminate. Unless there is something with the big projects that are really driving this - The main thing driving this is the capital – don’t know what we can slow or eliminate? The other complicating factor is that all of these need to be in the mix. If we don’t get federal dollars. someone else will. Having them in the mix right now is probably a good thing. I have wondered about this for years; I think we have errored on the side of keeping the rates low when we could have gradually built-up reserves over the last decade. The chickens may have come home to roost. Jason Graham; you are correct in that large capital projects are what is driving the rate increases. We continually look at our CIPs – how can we put those in the right years so we can properly resource and pay for them so there is no big hit on rates. Items like headworks are needed for employee safety, wastewater treatment for pollution, for hauled waste (porta potty) that infrastructure is old and dated. It is a corrosive environment. We have had that on the CIPs in the past. We have tried different strategies, but it is getting to the point where we need to act. Same thing with the laboratories (water quality and pollution control laboratories). Luckily the federal government has given us an influx of money that we can hopefully leverage and use to help stabilize these rates. Mayor Arndt; could we partner – outside Fort Collins – synergistic partners– why are we all building multiple pipes. I want to encourage people to think regionally, very open minded. – synergistically – it makes we crazy – it feels like we could come together. The labs – can we share? Are we duplicating where we could be collaborating? There is a balance between paying it forward and pushing it forward to our kids and grandkids – Page 25 of 188 maybe we don’t have top of the top – don’t saddle our kids and grandkids with crumbling infrastructure. Get as many grants as we can. Jason Graham; we do provide services to many of our neighboring communities because they don’t have service. Tyler Marr; we do have a contracted firm looking at utility infrastructure – just in utilities – hoping that will yield. Kelly Ohlson; timing of these things – maybe stretch it out a little bit but if it is irresponsible – which council members like raising rates – if you guys prove it is what it is - Capital and inflation, construction costs are the primary driver we are getting a new pollution lab – not free – wastewater – it is a good thing. Do we need Halligan - it is what it is – the other part of the story – historically the city undercharged for water for where we live, we undercharge for electrical – a lot has changed in the last decade –it would be good to tell the whole story – historically our rates have been low in comparison to other communities – don’t’ think we will be the highest of all – Lance Smith; in 2024 – we estimate we are among the lowest utility rates. Less than Loveland, Boulder, Longmont etc. Starting at a point when our rates are relatively low – there are folks in our community who are struggling to pay their bills. Kelly Ohlson; it is important to tell the story – nobody wants to raise the rates –tough choices and decisions have to be made - it helps if you can tell the story that we are competitive – and help those who struggle. Travis Storin; Summary The reason this is coming forward now is because of the budget process that kicks off over the summer. The rate increase assumption is a big input in determining how much money will be on the table for Utilities to get their work done over the next 2 years. We would build a budget based on the rate increases we have presented today. The next place this will come up will be a September Work Session I am sensing that there is interest in pausing at the September Work Session and talking a little bit more about the near rate increases and any work we have done on the capital plan between now and then. Review this plan annually with this committee, not every 2 years. C. Laporte Multimodal Grant Match Gunnar Hale, P.E. Engineering, Civil Engineer I Monica Martinez, Manager, FP&A, PDT Finance SUBJECT FOR DISCUSSION Laporte Multi-Modal Grant Match – Transportation Alternative Program Grant Appropriation EXECUTIVE SUMMARY Laporte Avenue between Fishback Avenue and Sunset Street is a two-lane arterial roadway and most of the roadway within the Project limits lacks adequate bicycle and pedestrian facilities including sidewalk, bike lanes, curb, and gutter. The City was awarded a $2,500,000 Transportation Alternative Program grant from the North Front Range Metropolitan Planning Organization (NFRMPO) to fund construction of the Laporte Avenue Multi- Page 26 of 188 Modal Improvement Project. The grant award requires a 20% local match of $2,500,000. It is suggested that CCIP Bike, CCIP Pedestrian, TCEF program funds, Transportation Services Fund Reserves and General Fund, be used for the local match portion, as well as an additional $50,000 in overmatch funds. The City will be required to contribute 20% of the local match funds as well as the local overmatch funds. The City’s financial commitment to fund construction will be $625,750 in local funds and $50,000 in local overmatch funds for a total of $675,750 to complete the $3.175M construction. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED • Is Council Finance supportive of an out of cycle supplemental appropriation for the Transportation Alternative Program (TAP) and required local match to fund construction for the Laporte Avenue Multi- Modal Improvement Project. BACKGROUND/DISCUSSION TAP Background In June 2023, the NFRMPO awarded the City with a TAP grant for the construction of the Laporte Avenue Multi- Modal Improvement Project The approved funding breakdown is as follows: TAP grant $2,500,000 Local Match (City) $625,750 Local Overmatch (City) $50,000____ Total $3,175,750 The total local match request from the City is $675,750. Suggested local match breakdown is as follows: Transportation Capital Expansion Fee (TCEF) ($225,000), CCIP Bike ($122,727), CCIP Pedestrian ($102,273), Transportation Services Fund Reserves ($750) and General Fund ($225,000) be used to support this supplemental appropriation request. Laporte Corridor Background The Laporte Corridor within the project limits of Fishback Avenue and Sunset Street currently lacks adequate bicycle and pedestrian facilities including sidewalk, bike lanes and curb and gutter. The roadway experiences heavy bicycle and pedestrian traffic especially with Poudre High School, many residential neighborhoods, and businesses located adjacent to the project limits. • Several near misses and at least one serious vehicle-pedestrian accident have occurred. • The corridor currently experiences a higher-than-expected volume of traffic accidents due to the lack of adequate infrastructure Laporte Avenue is master planned to be on the City’s low-stress bicycle network. The Project will address the safety concerns and lack of multi-modal infrastructure. Laporte Corridor Project Status TAP Grant submitted – 2020 $750,000 awarded. MMOF Grant submitted – 2020 $250,000 awarded. Page 27 of 188 Revitalizing Main Street Grant awarded – 2021 $1,437,500 awarded. TAP Grant Submitted – 2023 $2,500,000 awarded. East Segment 100% Design – Completed Fall 2023 West Segment 90% FOR Design – January 2024 East Segment Construction – March 2024 West Segment Construction – June 2024 Staff is recommending appropriation of the City’s construction local match and overmatch for several reasons. • In line with guiding themes and principles of the City Strategic Plan: o Multimodal Transportation Discussion / Next Steps; GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED Is Council Finance supportive of an out of cycle supplemental appropriation for the Transportation Alternative Program (TAP) and required local match to fund construction for the Laporte Avenue Multi-Modal Improvement Project. Page 28 of 188 Gunnar Hale; we are using the full extent of the right of way we own for this project east bound from Taft Hill. (see slide #8 above). There are a few houses on the west bound segment (see slide #9 above)– Sunset where we will need to buy right of way. Kelly Ohlson; this has been approved in numerous ways before now. You are bringing this to us now (1 month before construction starts) because of the General Fund amount in the mix. What do you mean when you say that you are negotiating the construction costs? Did we bid the project out? Gunar Hale; for CMGC (Construction Manager, General Contractor) projects, we will negotiate the costs of the projects. Because of the size of this project and the blessing from CDOT, we chose CMGC so we can have a quicker timeline. We have to compare the costs from the CMGC contractor with an independent estimate as well to prove the costs are true and accurate. CMGC is kind of a bridge in between a bid and an RFP in a lot of ways. It is not the straight math problem of low bid when we use that as a tool for procurement. We brought on the contractor midway through the design. The benefit of bringing them on early is the collaboration and to anticipate and plan for problems that might arise as opposed to things happening in the field and causing delays. Kelly Ohlson; who decides who we negotiate with? Gunnar Hale; in the beginning when we chose SEMA as the CMGC we put this out to bid and multiple contractors bid on the contract, then we choose who we think will do the best job. Kelly Ohlson; this is a good project. Where did the other $3M that was previously allocated go? It can’t all be in design. Page 29 of 188 Gunnar Hale; the east segment is covered with that beginning $3M that we have in the project. The west segment is where we need the funding. The additional $3M we are asking for from the General Fun is the local match for the west segment of the project. Monica Martinez; we would usually go to our Transportation Services Fund as that is where we always go first for any sort of local match for capital projects, but we do not have the needed amount in that fund this year, so we have to come forward to request General Fund dollars. Emily Francis; I am supportive of this. I would like to meet with Brad to discuss the design. We have been out there a few times before. I just want to make sure I understand the on again off again street, paths, and sidewalks so I can answer questions. Mayor Arndt; I am thrilled and an absolute yes. This is one of my priorities - safe route to schools (to Poudre High School). It has been a challenge for the students -this will be a huge improvement- happy to support this – long time coming. Mulberry improvements as well have made a huge difference. Lots of safety concerns - our kids deserve better. Travis Storin; will move this on to the full Council on the consent agenda as soon as possible. Meeting adjourned at 2:50 pm Page 30 of 188 Page 31 of 188 COUNCIL FINANCE COMMITTEE AGENDA ITEM SUMMARY Staff: Lawrence Pollack, Budget Director Date: March 20, 2024 SUBJECT FOR DISCUSSION Review of the 2024 Reappropriation Ordinance to appropriate prior year reserves. EXECUTIVE SUMMARY The purpose of this item is to reappropriate monies in 2024 that were previously authorized by City Council for expenditures in 2023 for various purposes. The authorized expenditures were not spent or could not be encumbered in 2023 because: • There was not sufficient time to complete bidding in 2023 and therefore, there was no known vendor or binding contract as required to expend or encumber the monies; or • The project for which the dollars were originally appropriated by Council could not be completed during 2023 and reappropriation of those dollars is necessary for completion of the project in 2024. Additionally, there may have been sufficient unspent dollars previously appropriated in 2023 to carry on programs, services, and facility improvements in 2024 for those specific purposes. In the above circumstances, the unexpended and/or unencumbered monies lapsed into individual fund balances at the end of 2023 and reflect no change in Council policies. Monies reappropriated for each City fund by this Ordinance are as follows: GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED Does the Council Finance Committee support moving forward with the 2024 Reappropriation Ordinance on the Consent Agenda at the April 2, 2024 Council meeting? General Fund $2,498,249 Cultural Services Fund 55,000 Recreation Fund 251,064 Museum Fund 61,265 Transportation Services Fund 1,288,625 Water Fund 52,500 Data & Communications Fund 390,600 Total $4,597,303 Page 32 of 188 BACKGROUND/DISCUSSION The Executive Team has reviewed the Reappropriation requests to ensure alignment with organization priorities and the Budget staff reviewed the requests to verify that all met qualification requirements. The 2024 Reappropriation requests are as follows, by fund: GENERAL FUND City Clerk’s Office 1) City Clerk Elections - $188,375 Purpose for funds: This offer was developed to fund the 2023 regular municipal election on the presumption that a regular municipal election would occur in April of 2023 and would be conducted by the City Clerk's Office. City Council put a ballot question before the voters in November 2022 which changed the regular municipal election date to November in odd numbered years. Reason funds not expensed in 2023: The 2023 election expenditures resulted in cost savings due to the election being coordinated with Larimer County in a November election and not conducted by the City. The remaining funds are requested to be reappropriated to support the 2024 coordinated election, which will include the City's anticipated sales tax renewal ballot questions. A 2024 election was not fully budgeted in the 23-24 BFO cycle. 2) Legislative Management System Implementation - $27,945 Purpose for funds: A legislative management system provides the backbone for how information about policy decisions gets to and from the City Council. Currently, the City uses an agenda management system that is past its useful life for receiving ongoing support and updates from the vendor, and is not as robust as newer solutions on the market. Implementation of a new legislative management system will provide the public with greater access to City legislative information, provide time savings for City staff and the Clerk’s Office, and decrease demands on IT for setup and support. Reason funds not expensed in 2023: The City's competitive selection process took place in the second half of 2023, resulting in a vendor engagement and the start of software implementation in first quarter of 2024. Now with a vendor under contract, first-year costs have been priced at $127,945, as compared to the original first-year project estimate of $150,000 in 2023. No expenditures occurred in the first year of the project budget. This request is to reappropriate $27,945 of the unspent $150,000 to increase the 2024 budget to meet the new first-year software implementation cost. Year-two and annual ongoing costs of the Legislative Management System have been priced at $89,600, as compared to the original project estimate budget of $100,000 ongoing. Page 33 of 188 Community Development and Neighborhood Services 3) Administration of 1041 Regulations - $320,000 Purpose for funds: Ordinance 2023-076 was adopted in June 2023 to ensure the City had adequate oversight of 1041 regulations by retaining the services of a third-party consultant to assist in the review of proposals and permit applications to conduct designated activities or develop within a designated area, and to conduct follow up inspections and monitoring related to issued permits. Reason funds not expensed in 2023: Although several RFPs were initiated, followed by local vendor interviews, an RFP re-scoping exercise, direct outreach to out-of-state companies, and timeline extensions to the RFP, City Staff did not receive any proposals to contract services for this program. On January 4, 2024, the City Manager approved a hiring exception for a Classified FTE (1) for the purpose of administering 1041 regulations. 4) Rental Housing Services - $65,000 Purpose for funds: Last year, City Council passed an ordinance that will require most housing providers to register their rental properties annually (exceptions are mobile home parks and owner-occupied rentals). They also approved staffing to develop educational opportunities and provide resources for both housing providers and tenants. This is an exciting opportunity for the City to be a partner to housing providers and tenants, and an active supporter of quality affordable rental housing in the community. This budget was designed to cover the startup costs of the program, including materials for new staff, for community consultants to build equity and inclusivity into the program, and to create communication materials for both housing providers and tenants. Reason funds not expensed in 2023: Funding appropriation was delayed and hiring of the Rental Housing Manager was not complete until October of 2023, which left little time for expenditure of funds. These startup funds are critical for ensuring that the rental housing program is a success. If these funds are not appropriated, we will have reduced capacity for education and engagement with the thousands of community members who are part of the rental market. These funds are pivotal to the start-up phase of the program which was built to have higher hourly and consultant needs. 5) Digital Transformation (Licensing, Permitting, and Code Enforcement) - $757,000 Purpose for funds: This project represents a vital opportunity to simplify, standardize, and improve processes in preparation for a dramatic and sustained increase in community demand for licensing and permitting. The current licensing and permitting environment relies on a patchwork of Accela-based systems, spreadsheets, paper applications, and online forms. This means that customers must navigate multiple different systems and requirements depending on the specific license/permit they are seeking. In addition, process improvements and system changes within Accela currently require the investment of significant funding and rely on extensive IT support and use of third-party contractors. This initiative will include simplifying and standardizing business processes alongside the evaluation of optimal digital solutions to build a more holistic, customer-centered software ecosystem that incorporates a Page 34 of 188 wider range of internal users. The result will be implementation of a more holistic, customer- centered software ecosystem to increase efficiency, advance accessibility, and improve the overall customer experience. Reason funds not expensed in 2023: Project funds were partially encumbered ($170,000) and spent ($22,500) in 2023 to procure an additional contractor at the strong recommendation of the City's IT department, since the scope of the desired software functionality expanded significantly to include the needs of Utilities, Clerk, IT, and Community Development within this "digital transformation" priority. This contractor was utilized to synthesize needs from these multiple parties, to better ensure that the future software solution meets the project's vision, guiding principles, and key success factors, ultimately providing a more consistent user experience, and better internal coordination and efficiencies. With the expansion of the project scope, the selection contractors helped assemble a 600-page RFP which was released on January 12, 2024; and closed February 16, 2024. Initial vendor evaluation phase is in progress with procurement anticipated in May. The funds requested for reappropriation in 2024 are expected to be encumbered in 2024 with the selected vendor, and the work is expected to extend into 2025. The team anticipates that the remaining budget will be fully utilized for this phase of configuration and implementation. Future budget appropriations are anticipated for any expansion of the scope, additional implementation phases, necessary change management tasks, and ongoing maintenance and subscriptions for user and administrator accounts. Economic Health Office 6) Placer AI Software - $32,750 Purpose for funds: Placer AI is a location-based analytics company. Charting both foot and vehicular traffic, Placer data provides insight into how people move through the City. This data will be used to better understand and mitigate capital project construction impacts on local business, as well as assist in other economic development efforts like site selection and business retention. Reason funds not expensed in 2023: This reappropriation is necessary because contract negotiations between Placer AI, City Purchasing, and CAO were not completed before the end of 2023. 7) Small Business Revolving Loan Fund - $25,000 Purpose for funds: The accumulated economic development fund was set aside to create the City of Fort Collins Revolving Loan Fund for Small Businesses and Startup companies operating in Fort Collins. The City will use the funds to support program access to capital for small businesses in Fort Collins city limits, including those that have historically not had access to traditional financial capital markets. Reason funds not expensed in 2023: $25,000 is set aside each year to cover administrative and marketing costs of the third-party and City Economic Health Office. The Revolving Loan Fund was not launched at the end of Q4, 2023, so these funds need to be reappropriated and held for a Q1/Q2 2024 launch of the fund. Page 35 of 188 Emergency Preparedness and Security (EPS) 8) Security Technology for Emergency Preparedness - $13,456 Purpose for funds: This offer provides funding for security technology upgrades to Community Services public facilities, with priorities being set by Community Services staff in conjunction with EPS. Specifically, this reappropriation request is to finish security camera infrastructure projects at Northside Aztlan, Museum of Discovery, and the Lincoln Center. Reason funds not expensed in 2023: Security cable installation at the three forementioned public facilities was planned and contracted in 2023. However, the projects were not completed until late 2023 and early 2024 due to schedule coordination with contractors. Three invoices for the completed work have been received and are scheduled to be paid in 2024, totaling $13,456. Environmental Services 9) CivicSpark Fellowship for Our Climate Future - $22,800 Purpose for funds: This Fellowship provides an opportunity for an early-career professional to work full-time in local government, partially subsidized by the federal AmeriCorps program, through a nonprofit called CivicWell. The City’s contribution is roughly the same as what has been historically allocated for a part-time program assistant, thanks to the partnership with CivicWell. Typically, the 11-month Fellowship runs from September to August of the following year and there is a slight discount if the funds are paid in full at the start of the contract period. Reason funds not expensed in 2023: This cycle, the placement was shortened to a three- quarter placement, beginning in January 2024. This resulted in a timing issue for funding held in 2023 for the 2023-24 cohort. We are requesting the 2023 funds be reappropriated to support the original request that historically would have been funded in full beginning in Q4, 2023. Municipal Court 10) Larimer County Jail Contract - $18,260 Purpose for funds: Through an annual contract with Larimer County, the City of Fort Collins is provided joint use of the Jail and Larimer County Sheriff services. Instead of paying per bed space used, per bond issued at the jail, and per in-custody hearing held, the City pays a set price for the use of these services. In 2023, City reserved two bed spaces per day to ensure there was space available if a Municipal Court defendant upon conviction of an applicable municipal ordinances or a finding of contempt of court by a Judge was sentenced to serve jail. The Court held approximately 140 in-custody hearings involving over 800 cases and used approximately 900 jail bed spaces in 2023. Accordingly, the City's reserved bed Page 36 of 188 spaces for 2024 has increased from two to three bed spaces per day, as it had been prior to 2023. Reason funds not expensed in 2023: The 2023 Annual Jail Services contract with Larimer County totaled $106,500, while the Municipal Court budgeted $125,000 in 2023 for this service. For 2024, the contract was raised to $195,000 while our budget is only $130,000. To offset this difference, we are requesting the 2023 savings to be reappropriated to the 2024 budget. 11) Opioid Relief Fund - $75,000 Purpose for funds: To date, the City has received a total of $170,169 as part of a national opioid settlement. The Council Finance Committee and City Council supported an appropriation of $75,000 in August 2023 to establish a municipal drug court program that would provide evidence based problem-solving court practices. No expenditure occurred in 2023 as part of the new Drug Court program. Reason funds not expensed in 2023: Municipal Court is in the process of hiring 1 FTE Probation Officer. Because this program is one of the first in its kind for a Municipal Court in Colorado, the Court is carefully vetting potential candidates and their qualifications to make sure that the creation of this program is considered a best practice from the start. The position was originally planned to start in 2023 but is now anticipated to start in the second quarter of 2024. Police Information Systems 12) Northern Colorado Regional Communication Network (NCRCN) Radio Redundancy- $30,000 Purpose for funds: This reappropriation is for additional needed radio infrastructure to create redundancy to the communication system within the Northern Colorado Radio Communication Network. Reason funds not expensed in 2023: In 2023, ORD 41 was approved to fund needed repairs on the radio towers on top of Poudre Valley Hospital and just north of Horsetooth Mountain, however, there is a final phase of this project that is necessary to close weaknesses in the communication system. This last phase will create redundancy between the 911 call center and Platte River Power Authority so that communication could continue if the existing fiber node wasn't functioning. This will be completed by Q3 of 2024. Police Office of the Chief 13) City Give - Rifle Plates - $102,563 Purpose for funds: This reappropriation is for the remaining portion of a charitable gift designated by the donor as a demonstration of appreciation for Police Services to be used toward personal protection equipment. Page 37 of 188 Reason funds not expensed in 2023: In 2022 and 2023 Police Services purchased personal protection equipment for all applicable officers. The Chief of Police continues to explore ways to spend the remaining amount that will meet the current needs of Police Services and also honor the donor’s designated intent. 14) Santa Cops Donation - $500 Purpose for funds: In 2023 ORD 093 was approved by Council as a part of the City Give program. This donation was made by Santa Cops to help purchase gifts for kids in need during the holidays. Reason funds not expensed in 2023: Changes in programming resulted in the donation not being deployed in 2023. The funds will be used in 2024 per the designated intent. Police Patrol 15) Police Handheld Radios - $620,000 Purpose for funds: In 2023 ORD 108 was approved by Council in September to purchase handheld radios for Police Services as a critical piece of equipment to be effective in providing safety for the community. Reason funds not expensed in 2023: Because of the size of the order that was placed in the later part of 2023 and the extensive process to get all of the radios ready for use, the payment will not be made until the early part of 2024. Social Sustainability 16) Electrical Vehicle (EV) Infrastructure Offset Credits - $199,600 Purpose for funds: These funds address the cost differential between current Colorado Housing and Finance Authority requirements and the updated Building Code requirements for Electric Vehicle (EV) infrastructure for affordable developments. The program provides cost-sharing of these additional infrastructure requirements by providing credits of flat fees calculated per project based on eligible parking spaces. Reason funds not expensed in 2023: Two developments were awarded these EV credits in 2023. All future affordable housing developments will be built to the standards in the 2021 Building Code and will therefore qualify for this incentive. Amounts will vary depending on the number of parking spaces per development. CULTURAL SERVICES & FACILITIES FUND Cultural Services – Gardens on Spring Creek 17) The Gardens on Spring Creek Nutrien Donation - $55,000 Page 38 of 188 Purpose for funds: Nutrien donated $100,000 to The Gardens on Spring Creek in 2023 which is designated for supporting healthy eating programs, including exterior capital improvements of the Outdoor Teaching Kitchen at The Gardens. Reason funds not expensed in 2023: The donation from Nutrien was appropriated in April 2023. The donor did not place a deadline for expending the funds. In some cases, in 2023, purchases were held up trying to get pricing quotes from vendors. Gardens staff have been looking at best uses for the funds going forward. In 2023 The Gardens used the donation funds to hold cooking classes for adults and for summer camp, purchased supplies for the outdoor kitchen, and completed minor capital work including new locks, concrete and engraving work, and water heater and weather-stripping repairs. The Gardens is working with City Give so that the next time a donation of this type is received the funds will be put into a non-lapsing business unit. RECREATION FUND Recreation 18) EPIC Asset Repair & Replacement - $251,064 Purpose for funds: 2023 Offer 43.16 proposed three projects to address severe facility maintenance issues at EPIC. The offer was then scaled down to include only one of the projects to address drainage of the EPIC Pool deck. Low spots and inadequate slopes cause water to create puddles and not drain properly. To improve the safety and comfort of pool users it is necessary to rework the deck tile so water that splashes onto the deck will flow to one of the existing deck drains. EPIC was designed to be a competitive pool, but because of this issue some outside groups no longer want to use EPIC for swim meets as it does not meet their standards. While the pool deck remains a high priority, further assessment is needed to capture the full scope of repairs that are necessary along with budgeting for the total repair. We would like to shift these funds in 2024 to the second priority listed in Offer 43.16 of replacing the flooring that surrounds the ice rinks. Reason funds not expensed in 2023: Project became underfunded due to escalated costs in 2023. $13,316 had been spent on Project Management fees assessing the deck in 2023. MUSEUM FUND Cultural Services – FC Museum of Discovery 19) The Museum of Discovery Artifact Housing Furniture - $61,265 Purpose for funds: This offer will provide funds to purchase and install a collections storage system and special archival quality equipment and supplies at the Fort Collins Museum of Page 39 of 188 Discovery (FCMoD). This enhancement includes a one-time expense for the purchase, delivery and installation of shelving and cabinetry custom designed for specific types of artifacts and contract staff to move and rehouse artifacts using specialized supplies including general conservation materials such as ethafoam, buffered tissue, and acid free archival boxes. As the artifact collection continues to grow the need to complete the buildout of the storage furniture is reaching critical mass. Approximately half of the collection’s storage furniture is installed and is safely housing historical collections owned by the City of Fort Collins. It is important to properly house historic collections like the one held at FCMoD to industry standards to preserve history and to help the community to tell stories of all and our place in time. The Archive & Collections are a valuable community resource, they are accessible and free for any member of the public. Reason funds not expensed in 2023: The furniture was received in late 2023 and the Museum needs to use the remaining funds for staffing to set up the new furniture and make sure that all artifacts are properly handled and stored. TRANSPORTATION FUND Streets 20) Roof Replacement for Salt Barn - $185,000 Purpose for funds: The purpose of this request is to reappropriate $185,000 for the Streets Department Salt Barn roof replacement. The existing EPDM (ethylene propylene diene terpolymer) roof has been leaking, the membrane has become de-laminated from the substrate, and the roof is well past its life. Additionally, the interior leaks of the roof at the perimeter; the scuppers and downspout collector heads are also leaking. These leaks and the freeze/thaw cycling during the winter months are causing damage to the interior and exterior of the brick structure of the historic building. Reason funds not expensed in 2023: The Streets Department and Operation Services conducted a thorough review of concerns arising from the roof of the Salt Barn due to the severe weather events during the Spring and Summer of 2023. The structural age of the facility required an asbestos test prior to obtaining a quote, adding additional time to the project. Once the quotes were received the total cost of the roof exceeded the Request For Proposal (RFP) work order on-call max of $120,000. As a result, an RFP or bidding process needs to be completed for the roof which could not be completed by the end of 2023. 21) Centre Avenue Paving Project - $657,000 Purpose for funds: The purpose of this request is to reappropriate $657,000 from the 2023 Street Maintenance Program (SMP) budget to cover the costs of the Centre Avenue project which was scheduled to be completed in 2023. This project includes an asphalt overlay of three streets: Centre Avenue between Prospect Road and Worthington Circle, Worthington Page 40 of 188 Avenue between Centre Avenue and Drake Road, and Research Boulevard between Centre Avenue and Drake Road. Reason funds not expensed in 2023: The Centre Avenue project was scheduled to be repaved in 2023 during the summer when CSU was on break to minimize the impact to the students and faculty since this project is adjacent to the CSU campus. The project was postponed to 2024 to coordinate with the pedestrian and bicycle underpass project that goes under Prospect Road (just west of Centre Avenue). The Prospect Road underpass project was delayed and completed as CSU returned to school in August. To minimize the traffic impact to CSU, the Centre Avenue project was postponed to the following year. 22) MAX/BRT Bus Line Pavement Upgrade - $366,625 Purpose for funds: The purpose of this request is to reappropriate $366,625 from the 2023 Street Maintenance Program (SMP) budget to cover the costs of the Mason BRT/ MAX project which was scheduled to be completed in 2023. The work was not completed north of Mountain Avenue to Maple Street in 2023. Reason funds not expensed in 2023: This project was delayed due to contract negotiations with BNSF. Work ceased as the winter and colder temperatures shut down the project towards the end of the 2023 construction season. This final phase of the project includes an asphalt overlay and concrete improvements on Mason Street between Mountain Avenue and Maple Street. These last two blocks of work will complete the approved 2023 Asset Management Enhancement Offer 7.12 – Street Maintenance Program – MAX/ BRT Bus Line – Downtown Concrete Pavement Upgrade project. Traffic 23) Neighborhood Traffic Mitigation Program Project Construction - $80,000 Purpose for funds: Traffic in neighborhoods can affect the quality of life for residents, bicycles, pedestrians, as well as drivers. The Neighborhood Traffic Mitigation Program is a collaborative effort between neighborhoods and City staff to implement traffic calming options. In 2023, Traffic received $150,000 funding for traffic calming devices and an additional $65,000 funding for medians and/or pedestrian refuge islands, sidewalk curb extensions and traffic diverters in order to achieve a more "complete streets" approach to traffic calming. The offer included funding for professional (consulting) services and funding for the construction of traffic mitigation devices on neighborhood streets. Traffic is requesting $80,000 to be re-appropriated from the 2023 budget to construct these mitigation improvements. Reason funds not expensed in 2023: Due to staffing changes and consultant availability, design of the mitigation improvements for Stuart and Stover was not started until fall. Survey and design will be completed in the Spring of 2024, and the construction will start in the summer/fall. WATER FUND Page 41 of 188 Utilities Water Resources 24) Northern Integrated Supply Project (NISP) Response & Engagement - $52,500 Purpose for funds: Since 2008, the City has developed and contributed science-based input to the various planning stages of the Northern Integrated Supply Project (NISP) project with the goal of minimizing adverse impacts on the Poudre River and the Fort Collins community. The City’s efforts have resulted in positive changes to this project which are reflected in the NISP operations and mitigation plan. Funding from this 2022 offer is intended to provide technical consulting and engineering support to inform the City’s engagement in future NISP planning efforts. Specifically, City staff will engage in NISP adaptive management and master planning stakeholder processes; however, additional technical and consulting support will be needed to achieve the desired outcomes. Funds from this offer would support: 1) Water resources engineering and analysis to advise the NISP flow operations and ensure the proposed flow mitigation program is realized; 2) Advisement for the development of NISP’s proposed Master Plan and Adaptive Management Program; and 3) Additional discipline- specific representation on technical advisory groups and input for project infrastructure proposed within the City limits. Reason funds not expensed in 2023: The NISP project Record of Decision (ROD) was released in late 2022, and Northern Water's Adaptive Management and River master Planning discussions with Poudre basin stakeholders did not commence until Q3 of 2023. To date, however, there has only been one meeting to restart the planning process. More active engagement is expected in 2024, per communication from Northern Water. City staff will continue to respond to the project timeline and engagement process that Northern Water develops for their project. Funds from this budget offer will be used for the original intended purpose of developing science-based input with the assistance from technical and engineering consultants, on how the NISP project impacts should be managed, mitigated and monitored. DATA AND COMMUNICATIONS FUND Information Technology 25) GIS Cloud Modernization - $90,600 Purpose for funds: The GIS Cloud Modernization support efforts to modernize the existing ArcGIS Enterprise Portal implementation. This work will simplify and stabilize the existing platform in order to reduce the support required from IT to maintain this system. This also frees resources to focus on higher value work. The modernization will reduce the support needed for the GIS infrastructure while ensuring the stability, availability, and security of the environment for its 1121 users. Migrating existing solutions onto ArcGIS Online where appropriate, establishing GIS Governance, implementing advanced monitoring, deprecating outdated applications, and upgrading to current versions of software will allow for reduced confusion and application fatigue. There is a need to work with other teams, including IT Security, to make sure this solution meets all requirements. Page 42 of 188 Reason funds not expensed in 2023: These funds were not fully expended in 2023, as the team spent the beginning of the year focusing on procuring an Esri Advantage Program that provides guidance and assistance with accomplishing the identified modernization efforts. Efforts in 2023 were focused on the first stage of upgrading the ArcGIS Enterprise platform to the current version. As this is a planned multi-year project, activities in 2024 will be focused on establishing governance for GIS, implementing advanced monitoring of the system, deprecating the use of applications that are no longer supported by Esri, and continuing the process to upgrading to the current versions of all applications on the platform. 26) ERP System Replacement - $300,000 Purpose for funds: This offer will identify the components necessary for the City to implement a modernized ERP ecosystem, accounting for all readiness components, and will focus on the first two phases necessary to transform our business processes into a modern solution while minimizing customizations that exponentially increase implementation and support costs. To succeed this must become a business-led, technology-enabled transformation and we must plan this modernization in six key phases: 1) discovery and planning, 2) business process transformation, 3) design and development, 4) change management and training, 5) testing and implementation, and 6) operational support. Maintaining our current platform amplifies the need for high-touch, manual support. A new ERP solution will implement industry best practices necessary to standardize and streamline processes, reduce costly customization, address talent resiliency while improving our risk management, and disaster recovery practices, and ensure compliance with our pending end- of-life support. Also, implementing a standard solution will reduce the 32+ interfaces necessary to support today. Reason funds not expensed in 2023: These funds were not expended in 2023, as the team was focusing efforts on aligning with the following statement from the original offer: "To succeed, this must become a business-led, technology-enabled transformation…". Efforts in 2023 were focused on transforming this into a business-led plan by coordinating with outside vendors and multiple counties and municipalities, such as Alight, Denver, Boulder, and Kitsap County, who walked Finance, HR, and IT staff through their unique experiences with previous implementations to help the City prepare for ERP preparation and replacement, before the City spends any of the allocated and future funds. For 2024, continuation of this work includes hiring a consultant to facilitate a collaboration effort between the key City departments to provide strategic planning, readiness, change management planning, business process review, data considerations, and other key initiatives required to develop and support the business processes to be served by a future ERP system. FINANCIAL/ECONOMIC IMPACTS This Ordinance increases 2024 appropriations by $4,597,303. A total of $2,498,249 is requested for reappropriation from the General Fund, $1,288,625 is requested from the Transportation Page 43 of 188 Fund, and $810,429 from other funds. Reappropriation requests represent amounts budgeted in 2023 that could not be encumbered at year-end. The appropriations are from prior year reserves. ATTACHMENTS PowerPoint presentation Page 44 of 188 Headline Copy Goes Here 2024 Reappropriation Ordinance Council Finance Committee –20 March 2024 Page 45 of 188 Headline Copy Goes HereReappropriation Summary 2 What does Reappropriation do? •Appropriates funds from prior-year reserves into the 2024 budget for the same specific uses that were originally proposed and approved for 2023 What qualifies for Reappropriation? •Funds that were originally appropriated (authorized by Council) in 2023 for a specific purpose, but were not fully expensed or encumbered by the end of the fiscal year •The executive team has reviewed the reappropriation requests and concluded that all 2024 reappropriation items submitted are still high priorities to be completed Page 46 of 188 Headline Copy Goes HereReappropriation Amounts by Fund 3 Amount by Fund being requested for Reappropriation: Page 47 of 188 Headline Copy Goes HereReappropriation Detail -General Fund 4 GENERAL FUND: #Department Request Name Amount 1 City Clerk's Office City Clerk Elections $188,375 2 City Clerk's Office Legislative Management System Implementation $27,945 3 Comm Dev & Neighborhood Svcs Administration of 1041 Regulations $320,000 4 Comm Dev & Neighborhood Svcs Rental Housing Services $65,000 5 Comm Dev & Neighborhood Svcs Digital Transformation (Licensing, Permitting, and Code Enforcement)$757,000 6 Economic Health Office Placer AI SaaS for EHO $32,750 7 Economic Health Office Small Business Revolving Loan Administrative Fund $25,000 8 Emergency Prep & Security Security Technology $13,456 9 Environmental Services CivicSpark Fellowship for Our Climate Future $22,800 10 Municipal Court Larimer County Jail Contract $18,260 11 Municipal Court Opioid Relief Fund $75,000 12 Police Information Services NCRCN radio redundancy $30,000 13 Police Office of the Chief City Give Rifle Plates $102,563 14 Police Office of the Chief Santa Cops Donation $500 15 Police Patrol Police Handheld Radios $620,000 16 Social Sustainability EV Infrastructure Offset Credits $199,600 GENERAL FUND TOTAL $2,498,249 Page 48 of 188 Headline Copy Goes HereReappropriation Detail –Other Funds 5 CULTURAL SERVICES AND FACILITIES FUND: RECREATION FUND: MUSEUM FUND: #Department Request Name Amount 17 Cultural Services The Gardens on Spring Creek Nutrien Donation $55,000 CULTURAL SERVICES FUND TOTAL $55,000 #Department Request Name Amount 18 Recreation EPIC Asset Repair & Replacement $251,064 RECREATION FUND TOTAL $251,064 #Department Request Name Amount 19 Cultural Services The Museum of Discovery Artifact Housing Furniture $61,265 MUSEUM FUND TOTAL $61,265 Page 49 of 188 Headline Copy Goes HereReappropriation Detail –Other Funds 6 TRANSPORATION FUND: WATER FUND: DATA & COMMUNICATIONS FUND : #Department Request Name Amount 24 Ut Water Resources Div Northern Integrated Supply Project (NISP) Response & Engagement $52,500 WATER FUND TOTAL $52,500 #Department Request Name Amount 25 Information Technology GIS Cloud Modernization $90,600 26 Information Technology ERP System Replacement $300,000 DATA & COMMUNICATIONS FUND TOTAL $390,600 #Department Request Name Amount 20 Streets Roof Replacement for Salt Barn $185,000 21 Streets Centre Avenue Paving Project $657,000 22 Streets MAX/BRT Bus Line Pavement Upgrade $366,625 23 Traffic Neighborhood Traffic Mitigation Program Project Construction $80,000 TRANSPORTATION FUND TOTAL $1,288,625 Page 50 of 188 Headline Copy Goes HereHistoric Reappropriation Ordinances 7Page 51 of 188 Headline Copy Goes HereCFC Guidance Requested 8 Guidance Requested: Does the Council Finance Committee support moving forward with the 2024 Reappropriation Ordinance on the Consent Agenda at the April 2, 2024 Council meeting? Page 52 of 188 COUNCIL FINANCE COMMITTEE AGENDA ITEM SUMMARY Staff: Lawrence Pollack, Budget Director Jacob Castillo, Chief Sustainability Officer Travis Storin, Chief Financial Officer Date: March 20, 2024 SUBJECT FOR DISCUSSION 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 appropriate 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 - What questions does the Council Finance Committee have about the proposed projects for the first year of the new tax? - Does the Committee support moving this item forward to the full Council for a work session scheduled for April 9, 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 to $12M annual shortfall (Parks & Recreation Master Plan) • Transit - $8M to $14.7M annual shortfall (Transit Master Plan) • Climate - $9.5M+ annual shortfall (Our Climate Future Plan) • Housing - $8M 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 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 Page 53 of 188 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 Page 54 of 188 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 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. ATTACHMENTS (numbered Attachment 1, 2, 3,…) - PDF of proposed 2024 uses of the 2050 Tax - Presentation Page 55 of 188 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 56 of 188 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 57 of 188 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 58 of 188 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 59 of 188 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 60 of 188 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 61 of 188 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 62 of 188 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 63 of 188 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 64 of 188 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 65 of 188 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 66 of 188 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 67 of 188 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 68 of 188 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 69 of 188 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 70 of 188 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 71 of 188 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 72 of 188 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 73 of 188 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 74 of 188 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 75 of 188 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 76 of 188 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 77 of 188 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 78 of 188 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 79 of 188 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 80 of 188 Headline Copy Goes Here March 20, 2024 Council Finance Committee 2024 Appropriation of the 2050 Tax: Staff Recommendations 03-20-2024 Page 81 of 188 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 ($5.0M for 2024)Page 82 of 188 Headline Copy Goes Here 3 Summary of Proposed 2024 Appropriation of the 2050 Tax Proposed Appropriations 2050 Tax Category Recommended Funding for 2024 Subtotals by Category Forecasted 2024 Revenue* Est. 2024 Year End Reserves 4.0 FTE – Expanded Parks and Recreation Infrastructure Replacement Parks and Rec 5,302,586 5,302,586$ 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 3,242,000$ Poudre River Health Assessment Climate - Elective 300,000 Add Solar PV System at City Facility - new fueling canopy and shop expansion at Wood St. Climate - Elective 250,000 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 83 of 188 Headline Copy Goes Here 4 Parks and Recreation Page 84 of 188 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 –Majority of funding for projects to begin addressing “Top 40” infrastructure needs –Includes resources for Recreation Capital Improvement Plan –Establishes initial staffing to create program to be good stewards of funding through 2050 –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 costs Page 85 of 188 Headline Copy Goes Here 6 Top 40 from Parks Infrastructure Replacement Program (IRP) Plan Page 86 of 188 Headline Copy Goes Here 7 Recreation -Potential IRP 2024-2028 Projects EPIC •Ice Flooring •Dasher boards Partner projects with Ops Services: •Pool shell •Pool deck •ICE chiller system upgrade and replacement •Staff office security door NACC •Front Desk Renovation •Volleyball Nets Foothills Activity Center •Multipurpose room gymnasium door Senior Center Partner projects with Ops Services: •Lobby flooring & office security door Pottery Studio •Kiln replacement The Farm •Make 2024 BFO offer whole City Park Pool •Design for slide and play structure replacement Rolland Moore Tennis Complex Partner project with Parks: •Pro shop and restroom replacement Page 87 of 188 Headline Copy Goes Here 8 Transit Page 88 of 188 Headline Copy Goes Here 9 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 89 of 188 Headline Copy Goes Here 10 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 Total Sales Tax Amount $5,900,000 1. Wage Revision $547,882 2. Benefited Positions $441,036 3. Safety & Security Improvements $160,676 Reserve for Transit Buildout $4,750,406 Safety & Security Improvements 3. Add an additional Transit Service Officer & Lead Transit Service Officer •Increase enforcement and support levels throughout the system Page 90 of 188 Headline Copy Goes Here 11 Climate Page 91 of 188 Headline Copy Goes Here 12 2050 Tax: Our Climate Future Recommended Budget -Summary •14 Recommended Offers; 4 additional “elective” offers •$3,242,000 total request for Recommended Offers in 2024 •8,200 MTCO2e projected lifetime savings •Equivalent to emissions from 1,825 gasoline-powered cars driven for a year •<1% reduction in 2030; many foundational projects, with potential to drive more toward 2050 goal •Additional anticipated impacts: •unquantified GHG reductions, reduced plastic waste, increased safety for active modes users, reduced non-GHG air pollutants, and increased resilience and comfort in homes for residents Page 92 of 188 Headline Copy Goes Here 13 Process Summary Development of Project Criteria by Our Climate Future leadership Meeting with Next Moves Team (representatives from community, SSA, Utilities, FC Moves) to build initial list of potential projects Identification of gaps in initial list and direct invitations Prioritization of projects by criteria Review and refinement of recommendation by Our Climate Future Executive Committee Page 93 of 188 Headline Copy Goes Here 14 Climate Funds Criteria Directly aligned with Our Climate Future No brand-new programs Possible to be executed in 2024 and to continue in future years Can help tell a powerful story about direct community benefit of the new revenue One-time offers only (ongoing offers should use 2025/2026 BFO process) Will not disrupt or takeaway from other existing commitments Page 94 of 188 Headline Copy Goes HereRecommended project funding 15 Recommended Offers by Big Move Recommended 2024 Funding 4 - Convenient Transportation Choices 632,000$ Implement bicycle infrastructure as determined in the Active Modes plan (Centre Ave) 350,000$ Mobility Hubs Plan development 200,000$ Implement bicycle infrastructure as determined in the Active Modes plan (Laporte Ave) 57,000$ Transportation Emissions Reduction Strategy Tool development 25,000$ 6 - Efficient, Emissions Free Buildings 1,650,000$ Introduce new capital for utilities Epic Loans program 600,000$ Comprehensive exterior lighting retrofits at City Recreation Centers 500,000$ Fund Healthy Homes Program 250,000$ Expand Mobile Home Park Mini-grant through Neighborhood Services 200,000$ Identify and determine critical support needed to upgrade under-resourced buildings, focusing on commercial /MF buildings 100,000$ 7 - Healthy, Affordable Housing 400,000$ Launch grants to offset utility fees for affordable housing development, particularly electric and water 400,000$ 9 - Healthy Local Economy and Jobs 35,000$ Expand Scholarship Program for Builders and Building Industry to meet new industry techniques and future codes 35,000$ 10 - Zero Waste Economy 75,000$ Business support for plastic and styrofoam transition through NocoBIZ Connect 75,000$ 12 - 100% Renewable Electricity 250,000$ Repair Riverside Community Solar Array 250,000$ 13 - Electric cars and fleets 200,000$ Replace existing Parks Utility Carts with electric Utility carts 200,000$ Grand Total 3,242,000$ Page 95 of 188 Headline Copy Goes Here 16 “Elective”funding opportunities Page 96 of 188 Headline Copy Goes HereConnections to Council’s Priorities for 2024-26 17Page 97 of 188 Headline Copy Goes Here 18 Questions for the Council Finance Committee 1.What questions does the Council Finance Committee have about the proposed projects for the first year of the new tax? 2.Does the Committee support moving this item forward to the full Council for a work session scheduled for April 9, 2024? Page 98 of 188 Headline Copy Goes Here 19 Back-up Slides Page 99 of 188 Headline Copy Goes Here 20 Impacts of Recommendation Package Page 100 of 188 Headline Copy Goes Here 21 Type of Impact towards OCF Goals 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 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 101 of 188 Headline Copy Goes Here 22 “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 102 of 188 Headline Copy Goes Here 23 Elective Offers Sequestration potential: 34,000 MTCO2e (lifetime) Page 103 of 188 Headline Copy Goes Here 24 Recommendation by Outcome Area Page 104 of 188 Headline Copy Goes Here 25 Recommendation by Service Area Page 105 of 188 Headline Copy Goes Here 26 Projects by Anticipated Impact towards OCF Goals Page 106 of 188 Page 108 of 188 COUNCIL FINANCE COMMITTEE AGENDA ITEM SUMMARY Staff: David Lenz, Director, Financial Planning & Analysis Date: March 20, 2024 SUBJECT FOR DISCUSSION Update to the Amended and Restated Intergovernmental Agreement between the City of Fort Collins and the Poudre Valley Fire Protection District (dated July 15, 2014) that established the Poudre Fire Authority. EXECUTIVE SUMMARY The City of Fort Collins (“City”) and the Poudre Valley Fire Protection District (“District”) established the Poudre Fire Authority (“PFA”) with an Intergovernmental Agreement (“IGA”) in 1981. This agreement was further adjusted in 1983 and 1987 to include a revenue allocation formula (“RAF”). This agreement was further amended and restated in 2014 to include an update to the RAF and Support Services provided to PFA by the City. The full 2014 amended and restated IGA including the RAF (Exhibit A) and Support Services provided (Exhibit B) is included as Attachment 1. In early 2023, the City and PFA began discussions about revisiting the agreement to update the understanding of the costs and details of the services provided under the terms of the agreement. The intent is to update the existing Support Services provided (Exhibit B), with detailed understanding of the cost of services being provided either in kind or through direct charges. Additionally, the goal is to make adjustments as necessary to the RAF (Exhibit A) to reflect the updated level of services provided, and to account for changes impacting the underlying Property Tax and Sales Tax funding sources. This includes an updated analysis of the relative risk sharing of the funding mechanisms. Staff intend for agreed upon updates to the IGA be completed for inclusion in the 2025/26 Budgeting for Outcomes (BFO) cycle. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED What questions does the committee have related to the update of the IGA, the RAF or the Support Services provided? Does the committee have additional items that they would like to see included or discussed in the update of the full IGA? BACKGROUND/DISCUSSION During the second quarter of 2023, City and PFA staff began the joint review of the Support Services Provided in Exhibit B. This effort involved over 30 collaborative meetings with both City and PFA personnel. The interviews and analysis involved investigation on the scope of services being provided by City personnel, including support areas that were not specifically outlined in Exhibit B as services to be provided. Additionally, certain services had transitioned Page 109 of 188 to PFA over the ensuing time since the agreement update in 2014. In all instances, efforts were made to identify the time and costs involved in each City or PFA department providing the support. Preliminary costing of the services provided indicates the City provides PFA with approximately $728,000 annually of in-kind costs and an additional $3.5 million in direct charges ($3.0 million is for Benefits and Wellness). PFA’s cost of services provided is estimated at approximately $452,000 annually ($320,000 is for two positions – IT Analyst III and Battalion Chief - Emergency Management). Functional breakout of the costs is highlighted below. The RAF specifies how both the City and the District make contributions to the PFA. The district’s contribution is annually through the mill levy and the City’s contribution is through a combination of a portion of the City’s base sales and use tax revenue and 67.5% of the City’s property tax revenue. The City’s contributions are based on the biennial budgeted amounts for Sales/use and property taxes. These amounts are not adjusted for actual collections (please refer to Exhibit A of the IGA for the RAF calculation details). In the 2023 Budget, the City’s contributed approximately $35.9 million in revenue sharing to PFA ($19.2 million in property tax and $16.9 million in sales/use tax, less $0.2 million for PFA contribution agreements). For the 2024 budget, the revenue contribution increased to approximately $38.7 million ($21.7 million in property tax and $17.3 million in sales/use tax, Service Area Annual In-Kind Costs Annual Charged Total Cost of Services Provided Finance $182,115 $18,402 $200,517 Human Resources $145,963 $2,969,712 $3,115,675 Information Technology $191,481 $47,000 $238,481 Police - Dispatch $159,462 $207,229 $366,691 Op Services $5,390 $194,643 $200,033 All Other $43,215 $20,000 $63,215 Total $727,626 $3,456,986 $4,184,611 Preliminary - Cost of City Services to PFA Service Cost Emergency Management $176,214 Finance $12,976 Risk Management $23,296 Human Resources $91,402 Information Technology $144,275 Miscellaneous $3,576 Total $451,739 Preliminary - Cost of Services Absorbed by PFA Page 110 of 188 less $0.3 million in PFA contribution adjustments). The District contributed $8.8 million in 2023 and $12.4 million in 2024. City and PFA staff have begun evaluating the existing RAF. Goals of this evaluation are to align the updated costs of service with the existing funding mechanism, memorialize the Keep Fort Collins Great (KFCG) 0.6% base rate increase, consider the concept of a “risk corridor” to share revenue risks and opportunities, and add further definition around future growth and annexations. The work plan is centered fostering agreement between city and PFA staff on the scope and structure of the services to be provided in Exhibit B, determination of the of the form and extent of compensation for both parties, identifying needed service level agreements, and the adjustments needed to the RAF. Work to date has highlighted the desire to create named administrators from each party to the agreement and to include more specificity as to the timing and structure of future agreement updates (i.e. – contract re-openers). NEXT STEPS/PATH FORWARD The goal is to complete the update of the IGA for inclusion in the 2025/26 BFO Cyle. City and PFA staff are working jointly to reach common understanding on terms and conditions to include in an update to bring to both the City Council and District Board for approval. Tentative schedule for moving forward: April 23, 2024: Work Session with City Council and District Board - inputs June 6, 2024: Council Finance Committee - recommendation June 18, 2024: City Council Adoption consideration - 1st reading July 2, 2024: City Council Adoption consideration - 2nd reading Concurrent with this schedule are regular updates by PFA to the District Board. ATTACHMENTS Attachment 1 – Amended and Restated Intergovernmental Agreement establishing the Poudre Fire Authority (including RAF Exhibit A and Support Services Exhibit B) Attachment 2 – Presentation Slides Page 111 of 188 Page 112 of 188 Page 113 of 188 Page 114 of 188 Page 115 of 188 Page 116 of 188 Page 117 of 188 Page 118 of 188 Page 119 of 188 Page 120 of 188 Page 121 of 188 Page 122 of 188 Page 123 of 188 Page 124 of 188 Page 125 of 188 Page 126 of 188 Page 127 of 188 Page 128 of 188 Page 129 of 188 Page 130 of 188 Page 131 of 188 Headline Copy Goes Here Director, Financial Planning & Analysis David Lenz Poudre Fire Authority Intergovernmental Agreement March 20, 2024 Page 132 of 188 Headline Copy Goes Here 2 Agenda •Intergovernmental Agreement (IGA) Overview •Exhibit B: Support Services Provided •Exhibit A: Revenue Allocation Formula •Schedule and Next Steps •Questions Page 133 of 188 Headline Copy Goes Here 3 Questions for Council Finance Committee •What questions does the committee have related to the update of the Intergovernmental Agreement, the Revenue Allocation Formula or the Support Services provided? •Does the committee have additional items that they would like to see included or discussed in the update of the full Intergovernmental Agreement? Page 134 of 188 Headline Copy Goes HereIntergovernmental Agreement Timeline 4 Poudre Fire Authority Established via Intergovernmental Agreement (IGA) between the City and Poudre Valley Fire Protection District (PVFPD) 1981 Revenue Allocation Formula (RAF) effective1983 IGA Restated to include RAF language1987 IGA Amended and Restated to include RAF (Exhibit A) and Support Services provided to PFA by the City (Exhibit B) 2014 2024 •Update IGA to account for evolving support services provided in Exhibit B. •Address risk and growth challenges via RAF adjustments. •Clarify roles / responsibilities and update frameworks. Page 135 of 188 Headline Copy Goes Here Page 136 of 188 Headline Copy Goes Here 6 Exhibit B Update: Service Inventory and Costing •PFA Specific Activity •How often is the activity performed? •Associated time to complete •General Activity •Proxy data that represents PFA’s share of total workload •Examples: employee counts, journal entries, investment share, invoice counts •Labor costs •Average Staff Salaries •Management/oversight •Administrative Support •Fringe Benefit Factor •Hard costs •Specific software/equipment •Overhead •Data Gathering Page 137 of 188 Headline Copy Goes Here 7 Exhibit B Update: Service Inventory and Costing •Costing Process •Costing precedents are used wherever possible •Attorney time • Parks •IT allocation model •PFA Specific Activity •# of activities in a year x time to complete x labor costs •General Activity •Total annual labor cost x PFA share (based on proxy data) •Hard costs •Directly attributable costs •PFA share of software/ equipment/overhead (based on proxy data) Page 138 of 188 Headline Copy Goes Here 8 Exhibit B Update: Findings •Accounts Payable •Treasury & Investment Management •Dispatch •Records & Agenda Management •Benefits •Wellness •Purchasing •Accounting •Budget •Grants •Pre-Employment Processing •Employee Benefit Enrollment •Facilities Maintenance •Legal Services •Payroll •HR Records Management •Pension & Retirement Plan Administration •HR Information Systems Page 139 of 188 Headline Copy Goes Here 9 Exhibit B Update: Findings •Safety & Risk Management services •Fleet Services •Employment verifications •Office of Emergency Management Services •Procurement of Property & Liability Insurance •EEO Reporting •Credit Card Rewards •Training •DOT Pool •Safety Glasses Program •City Give •Parks – Landscaping •Forestry – Tree Care •City Care •FPPA Pension Administration Page 140 of 188 Headline Copy Goes Here 10 Exhibit B Update: Cost of City Services Service Area Annual In-Kind Costs Annual Charged Total Cost of Services Provided Finance $182,115 $18,402 $200,517 Human Resources $145,963 $2,969,712 $3,115,675 Information Technology $191,481 $47,000 $238,481 Police - Dispatch $159,462 $207,229 $366,691 Op Services $5,390 $194,643 $200,033 All Other $43,215 $20,000 $63,215 Total $727,626 $3,456,986 $4,184,611 Preliminary - Cost of City Services to PFA Page 141 of 188 Headline Copy Goes Here 11 Exhibit B Update: Cost of Services Absorbed by PFA Service Cost Emergency Management $176,214 Finance $12,976 Risk Management $23,296 Human Resources $91,402 Information Technology $144,275 Miscellaneous $3,576 Total $451,739 Preliminary - Cost of Services Absorbed by PFA Page 142 of 188 Headline Copy Goes Here Page 143 of 188 Headline Copy Goes Here 13 Exhibit A: Revenue Allocation Formula (RAF) City Contribution to PFA per the RAF: .29 of one cent of City base sales and use tax (excluding those funds dedicated or contractually pledged) 67.5% of the operating mill levy of the City’s property taxes Sales and Use tax revenue from the voter approved tax measure known as “Keep Fort Collins Great” (KFCG) ($ Millions)2023 2024 Property Tax $19.2 $21.7 Sales/Use Tax $16.9 $17.3 PFA Contribution Agreements ($0.2)($0.3) Total $35.9 $38.7 City Contribution to PFA Page 144 of 188 Headline Copy Goes Here 14 Exhibit A: Revenue Allocation Formula (RAF) PVFPD Contribution to PFA per the RAF: District shall adopt a mill levy pursuant to state law (minimum 10.595 mills) 100% of mill levy revenue shall be contributed to the funding of the Authority for any authorized purpose –less reasonable administrative expenses for the operation of the District 2023 2024 Levy 10.824 Mills 11.047 Mills Contribution ($ Millions)$8.8 $12.4 District Contribution to PFA Page 145 of 188 Headline Copy Goes Here Page 146 of 188 Headline Copy Goes Here 16 Current Work Focus •Agreement on scope and structure of services provided •Form and extent of compensation to both parties •Service level agreements needed •RAF Adjustments •Inclusion of Administrators •Determining specificity and timing of future updates Page 147 of 188 Headline Copy Goes Here 17 Schedule •April 23:Work Session with City Council and PVFPD Board •June 6:Council Finance Committee •June 18:City Council Adoption consideration – 1 st Reading •July 2:City Council Adoption consideration – 2 nd reading Concurrent regular updates by PFA to PVFPD Board Page 148 of 188 Headline Copy Goes Here 18 Questions for Council Finance Committee •What questions does the committee have related to the update of the Intergovernmental Agreement, the Revenue Allocation Formula or the Support Services provided? •Does the committee have additional items that they would like to see included or discussed in the update of the full Intergovernmental Agreement? Page 149 of 188 Headline Copy Goes Here Page 150 of 188 Page 151 of 188 COUNCIL FINANCE COMMITTEE AGENDA ITEM SUMMARY Staff: Travis Storin, Chief Financial Officer Ginny Sawyer, Policy & Project Manager Date: March 20, 2024 SUBJECT FOR DISCUSSION Renewal of the Street Maintenance Tax and the Community Capital Improvement tax EXECUTIVE SUMMARY Staff provided the full Council an overview of the history, use, and timelines of both the Street Maintenance Program (SMP) and the Community Capital Improvement Program (CCIP) taxes at the February 13, 2024 regular meeting. That meeting outlined the meeting cadence associated with referring these renewals to the November 2024 ballot. Multiple meetings with the Council Finance Committee (CFC) were included. This first meeting of the CFC will focus on any questions the committee may have, the term of the SMP tax, and the process of developing a CCIP project list. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED What questions or concerns do CFC committee members have regarding possible extension of the term of the SMP tax to 15 or 20 years? What questions or suggestions do CFC committee members have for developing a future CCIP project package for consideration? Do CFC committee members support considering taking the CCIP renewal in 2025? BACKGROUND/DISCUSSION The City of Fort Collins has a 40+ year history of utilizing voter approved sales tax initiatives to fund major capital projects and to achieve and maintain an extensive transportation system. Starting in 1973, with a 7-year, one-cent tax that helped fund the Downtown Library, the Lincoln Center, City Hall, Mulberry Pool and other improvements, residents have continued to support sales tax capital programs to create the city we enjoy today. The current initiatives, CCIP and the SMP, will expire on December 31, 2025. With only one annual election opportunity (November), staff had recommended seeking these tax renewals in 2024. Both programs are a dedicated ¼- cent sales tax which equated to 25 cents on a $100 purchase. Over the 10-year program (2016-2025) each ¼-cent is estimated to generate approximately $80.0 million for community-wide investments. Staff continues to recommend referring the SMP in 2024, however, after considering the timeline on a number of possible projects staff would like to discuss the possible advantages of referring the CCIP in 2025. Advantages include a longer timeline for public engagement and Page 152 of 188 time for further conversation and decisions on wasteshed projects, the site plan for the Hughes property, and additional feasibility of both a bike park and additional pickleball facilities. Elements of a Successful CCIP Package The City of Fort Collins has had a successful track record of referring (and getting approval) of capital improvement dedicated taxes. The last two measures passed with 80% voter approval. Staff attributes this success to: - Advancing projects from Master Plans that have been informed by community input. - The items put forth represent community desires and priorities across broad geography, types of services, and personal passions. - Community engagement helps to prioritize projects and programming. There have also been lessons learned over time to mitigate risks, including: - Adjusting for inflation and adding on years of operation and maintenance until a program/facility is established. - Balancing flexibility and specificity to ensure voters get what the ballot promised while allowing for measured leeway to take advantage of unforeseen opportunities (grants, development, etc.) - Avoiding singular projects that would absorb a majority of the funding. - Solidifying a plan far enough in advance of referral to ensure adequate budgeting analysis and community awareness. Next Steps Based on CFC discussion and suggestions, staff will outline future agenda content and an engagement plan for public outreach. Future Council engagement includes: April 23 work session: Bring CFC recommendations of referral dates, SMP tax term. Review of engagement plan. May CFC meeting: Confirm SMP referral actions. Start CCIP package development. June 11 work session: Confirm SMP referral details. Consider CCIP progress. July 16 work session: TBD August 20 regular meeting: Refer ballot language for any 2024 measures. ATTACHMENTS Page 153 of 188 Headline Copy Goes Here Travis Storin -Chief Financial Officer Ginny Sawyer -Lead Policy and Project Manager Community Capital Improvement Program and Street Maintenance ¼-cent Tax Renewals Council Finance Committee March 20, 2024 Page 154 of 188 Headline Copy Goes HereDirection Sought 2 What questions or concerns do CFC committee members have regarding possible extension of the term of the SMP tax to 15 or 20 years? 01 What questions or suggestions do CFC committee members have for developing a future CCIP project package for consideration? 02 Do CFC committee members support considering taking the CCIP renewal in 2025?03 Page 155 of 188 Headline Copy Goes Here 3 Tax Renewals Over Time Long-term Look at Possible Tax Renewals ASSUMES 10 YEAR TERMS 20502045204020352030202520202015 Open Space Yes (25 yr.) | 2006 - 2030 KFCG (10 yr.) | 2011 - 2020 KFCG.25 (10 yr.) | 2021 - 2030 Assume KFCG (10 yr.) | 2031 - 2040 Street Maintenance (10 yr.) | 2016 - 2025 Assume Street Maintenance (10 yr.) | 2026 - 2035 Assume Street Maintenance (10 yr.) | 2036 - 2045 Community Capital Improvement (10 yr.) | 2016 - 2025 Assume Capital Renewal (10 yr.) | 2026 - 2035 Assume Capital Renewal (10 yr.) | 2036 - 2045 2050 Tax Parks, Climate, Transit (26 yr.) | 2024 - 2050 Page 156 of 188 Headline Copy Goes Here 4 Tax Renewals Over Time Long-term Look at Possible Tax Renewals MULTIPLE ASSUMPTIONS 20502045204020352030202520202015 Open Space Yes (25 yr.) | 2006 - 2030 KFCG (10 yr.) | 2011 - 2020 KFCG.25 (10 yr.) | 2021 - 2030 Assume KFCG (10 yr.) | 2031 - 2040 Street Maintenance (10 yr.) | 2016 - 2025 Assume Street Maintenance (20 yr.) | 2026 - 2035 Community Capital Improvement (10 yr.) | 2016 - 2025 Assume Capital Renewal (10 yr.) | 2026 - 2035 Assume Capital Renewal (10 yr.) | 2036 - 2045 2050 Tax Parks, Climate, Transit (26 yr.) | 2024 - 2050 Open Space Yes (25 yr.) 2030 – 2055? Page 157 of 188 Headline Copy Goes Here Page 158 of 188 Headline Copy Goes Here 6 Street Maintenance Program (SMP) Page 159 of 188 Headline Copy Goes Here Page 160 of 188 Headline Copy Goes Here 8 Capital Tax -Historic Current Engineering/Transportation-Type Funds •Arterial Intersection Improvements $6.0 M •Bicycle Infrastructure Improvements $5.0 M •Bike/Ped Grade Separated Crossing Fund $6.0 M •Bus Stop Improvements $1.0 M •Pedestrian Sidewalk / ADA-Compliance $14.0 M •Transfort Bus Fleet Replacement $2.0 M New Fund Buckets •Affordable Housing Fund $4.0 M •Nature in the City $3.0 M Current Capital-Type Projects •Lincoln Ave. Bridge $5.3 M •Linden St. Renovation $3.0 M •SE Community Center w. Pool $14.0 M •Gardens on Spring Creek Visitor's Center $2.0 M •Willow Street Improvements $3.5 M •Carnegie Bldg. Renovation $1.0 M •City Park Train $350K •Club Tico Renovation $250k •Downtown Poudre River Enhancements Whitewater Park $4.0 M Approximately half of revenue used for engineering/transportation related activities and half used for new capital amenities Page 161 of 188 Headline Copy Goes Here 9 Capital Tax –Lessons Learned Helpful to… -Advance projects from Master Plans that have been informed by community input. -Ensure items put forth represent community desires and priorities across broad geography, types of services, and personal passions. -Utilize community engagement to help prioritize projects and programming. Have learned to… -Adjust for inflation and add on years of operation and maintenance. -Balance flexibility and specificity to ensure voters get what the ballot promised while allowing flexibility to take advantage of unforeseen opportunities (grants, development, etc.) -Avoid singular projects that would absorb a majority of the funding. -Solidify a plan far enough in advance of referral to ensure adequate budgeting analysis and community awareness. The last two measures passed with 80% voter approval Page 162 of 188 Headline Copy Goes Here 10 Early Idea List Transportation/Engineering: •Arterial improvements •Bike infrastructure •Sidewalk/ADA improvements •Bus stop improvements and bus replacement •Howes (street conversions) Capital Projects: •Civic Center advancement •Car (Trolley) Barn advancement •Park Improvements (Martinez) •Downtown Parks Shop •Transfort maintenance site •Lincoln Center (catering kitchen) •Composting facility •Trail strategic plan components •River masterplan (another reach) •LaPorte Avenue re-design •Children's Garden renovation •Mountain biking facility, site TBD •Mulberry Pool Replacement •Pickleball expansion Other Funds: •Affordable Housing •Nature in the City •Active Mode Infrastructure Page 163 of 188 Headline Copy Goes Here Page 164 of 188 Headline Copy Goes Here 12 Timeline February 13 Work Session Feb/March June/July NovemberAugustApril/May June 11 Work Session ElectionMay Council Finance Committee (refine potential projects) Begin Engagement August 20 Regular Meeting- Refer Ballot Language March Council Finance Committee (develop guiding principles, input on potential projects) Develop Engagement Plan April 23 Work Session July 16 Work Session Continue Engagement Page 165 of 188 Headline Copy Goes HereDirection Sought 13 What questions or concerns do CFC committee members have regarding possible extension of the term of the SMP tax to 15 or 20 years? 01 What questions or suggestions do CFC committee members have for developing a future CCIP project package for consideration? 02 Do CFC committee members support considering taking the CCIP renewal in 2025?03 Page 166 of 188 CCIP Renewal Potential List-Short Narratives (February 2024) Cultural Services Implementation of the Strategic Trail Plan: The Strategic Trail Plan will be completed in 2024 and early 2025. Additional annual funding will support the current Conservation Trust funding (~$1.5m-2.2m annually) and expedite project delivery as developed by the plan. $500k- $1m annually. Downtown River Plan: The Downtown reaches of The Cache la Poudre River – the sections from Shields Street to Mulberry ‐were planned in the Downtown River Plan. Whitewater Park, considered Reach 3, was completed in the last CCIP. Both Reach 2 (including Lee Martinez and Legacy Parks) and Reach 4 (including Old Fort Collins Heritage Park) are potential next phase projects. Options for implementation would be full funding at $32m for Reach 2 or $22m for Reach 4 or looking to progress public outreach and conceptual design in both areas for $2m. Downtown Parks Shop The Parks Department has been built on a district model for maintenance activities. The importance of the maintenance shops being located and constructed in close proximity to the areas of responsibility is paramount in the downtown district. The "Disney Approach" of getting into the downtown early and disappearing into the landscape leaving behind a well-groomed landscape can only be achieved when the support of a maintenance shop is nearby. The current downtown site is located in a refurbished commercial warehouse which is near the end of its useful life. This building is also scheduled to go away with the build-out of the current Civic Center Master Plan. Providing a new facility in the downtown area will house not only the local support staff but also the crews which support the horticultural areas around our facilities, throughout the public areas and trail systems. Two districts will work out of this facility providing efficient operations in a timely manner to the public. The cost of the new Park Shop presented below has been based off the completed project from the East District Maintenance Facility and then adding a 6% escalation factor for each additional year. $8-9M Pickleball Complex: The number and percentage of Americans who engaged in some type of sport or fitness activity grew in 2022 for the fifth consecutive year. Pickleball, while not the largest total usage, continued to be the fastest growing sport in America and participation has increased 158.6% over three years. Ensuring facilities and programs continue to respond to changing user needs is an action related to the Parks and Recreation Plan goal of providing equitable access to recreational experiences. The Parks and Recreation Plan (p175) calls for This document is a working document and serves only to start building project ideas, narratives, and potential costs. This list and the information within will be updated throughout the project timelime. Page 167 of 188 thirteen additional pickleball courts by 2040. A pickleball complex feasibility study is underway to determine if a community park site can close the gap in the short-term while waiting for future community parks to be built. Implementation of the feasibility plan, building a 12-court complex, would cost approximately $4m. Mountain biking facility-feasibility only: Perform a mountain bike park feasibility study to assist the City in determining whether a new, mid-sized bike park facility is feasible, and if so, the appropriate size, location, and cost. $100-250k depending on complexity of the project Dog Park Strategic Plan and some implementation: The Parks and Recreation Plan (p177) calls for four additional dog parks by 2040. Two sites would most likely be at future community parks. There is a current deficit in the central west and central east sections of town, because dog parks were not a standard amenity when these community parks were built. In addition, our community parks in this area are heavily encumbered by floodplain. Additional study may be needed to evaluate if there are neighborhood parks that have the ability to meet dog park needs if community parks are too encumbered. Funding would also implement two new dog parks. $2m Mulberry Pool Replacement Opened in 1974 after renovating the former Lincoln Jr. High, the 50-year-old aquatic facility is functionally obsolete and should be rebuilt to meet the current and future needs of the Fort Collins community per the 2023 Recreation Aquatics Study. Mulberry Pool is the only pool in Fort Collins that provides a small year-round leisure pool that serves families. Mulberry also provides lap lanes for both the community, Poudre School District swim teams and club teams along with swim lessons for swimmers of all abilities. A new modern facility would better serve the growing needs of Fort Collins. The facility could include a full warm water leisure pool with zero entry, slide(s) and other play features. The facility will also include at least 6 lap lanes to maintain the current level of service for the Fort Collins swim community. $25-35M Farm Strategic Plan (Farm visioning, renovation, and expansion, reimagine?) The Farm at Lee Martinez Park was opened to the public in July of 1985. The Farm will be celebrating its 40th anniversary in 2025. As the community has grown, so has the demand for programs at the Farm. This funding will co-create with the community a vision of the Farm for the next 40 years and provide capital funding to start the renovation and expansion. $250k for plan; $750k for a phase one implementation Nature in the City Since 2015, Nature in the City has worked to build a connected open space network accessible to the entire community that provides a variety of experiences and supports the community’s people, plants, and wildlife. By the end of 2024, nearly 100 Nature in the City projects will showcase how the community landscape can be both bountiful places of inspiration while reducing water use, increasing biodiversity, and enhancing community member’s sense of place. While these landscapes cover more than 1,000,000 square feet, the community’s work has just begun. Over the next 10 years, Nature in the City endeavors to support the community Page 168 of 188 as it works to implement new Land Use Code measures aimed at increased water efficiency and strategic goals outlined in Our Climate Future, City Plan, and the Natural Areas Urban Zone Management Update. Extended funding to support community-led and internal to the City Nature will focus on wilding areas that are traditionally covered in turf such as school playgrounds, community gathering spaces, and areas that specifically provide social services to underserved populations. Requested support: $1.5M distributed evenly over 10 years. Poudre River Flows The Poudre Flows Project reinvigorates Fort Collins’ home river by boosting flows from the canyon mouth to the confluence with the South Platte River. This project will jump start implementing an important and innovative effort to protect the health of the Cache la Poudre River by keeping the most valued resource in the river channel - water. In collaboration with regional water providers, the City is coordinating the use of existing water rights to provide protected flows through the heart of Fort Collins. This groundbreaking project is the first-of-its-kind in Colorado and will serve as a model for other streamflow restorations in basins throughout the state. Realizing this vision requires upgrading four aging dams along the Poudre River in Fort Collins (west of Taft.) These enhancements will enable water to stay in the river channel, while improving safety and river health. Funding allocated for this project will support the crucial phases of design, permitting, and construction required for these upgrades that will ensure a healthier and more resilient Poudre River for future generations. $2-3M Museum Collection Needs and Activation of Historic Trolley Building After more than 83 years, FCMoD’s historic collection has grown to more than 500,000 two-dimensional objects and over 48,000 three-dimensional objects. The collection’s housing needs surpass what is available at FCMoD, resulting in approximately 20,000 objects being stored in the 118-year-old Trolley Building/Car Barn and a significant portion of archival material housed in Centennial, CO. FCMoD’s collections are not complete, which includes a recognition that the collections lack diverse representation, both past and present. In February 2024, FCMoD will apply for the Collections Assessment for Preservation (CAP) Program to determine proper collections storage needs. FCMoD envisions a future where Collections are more readily accessible and activated for the community. In 2017, the Downtown Master Plan identified the Car Barn for a community- centered use, and in 2019, the Arts and Culture Master Plan identified the need to plan for museum expansion. These intersections create a unique opportunity for the museum to work with the community to activate the historic Trolley Building beyond its current use as a storage facility. This funding will help establish capital funding for collections needs and community- centered visioning for the renovation and adaptive reuse of the Trolley Building. The Children's Garden at The Gardens on Spring Creek The Children's Garden was the first to open to the public 20 years ago. Filled with numerous inviting areas for curious kids to Page 169 of 188 explore, discover, and grow, the garden is one of GOSC’s most popular attractions, serving daily visitors and acting as a classroom for our youth summer camps. Over the course of the last 20 years, the field of informal learning in nature has matured greatly. The garden is also showing its age. A comprehensive renovation will rejuvenate the space, better align with current learning theory, and address drainage and maintenance issues. Development will happen with public input, giving us an opportunity to better understand cross- cultural points of meaning and allowing us to reach wider audiences. These improvements will lean into the mental health research around the healing qualities of nature and foster a rich and diverse environment for play, better serving Fort Collins, the region, and tourism. Revisioning the space also gives us an opportunity to consider the surrounding structures and buildings: looking at opportunities for outdoor and indoor learning. The full scope of the project includes the garden itself, along with reconsiderations of the entry and access sequence for families as well as school groups, along with including art elements and interpretive signage. $3-4M for the Childrens’ Garden, plus ~$2M to convert existing green house into a classroom and relocate this function to another location. The Lincoln Center Event Catering Kitchen The Lincoln Center’s event catering kitchen is in need of a full remodel. The kitchen has not been updated since its time serving as the kitchen for Lincoln Junior High prior to that property becoming The Lincoln Center. As any work done would most likely trigger a complete rebuild it was deemed cost prohibitive and excised from the budgets for previous facility renovations in the 80’s and in 2011. The kitchen is crucial to our reputation and operations as an event center, and as a space for underserved communities to gather. Food is often a centerpiece of cultural celebration, and our ability to provide the infrastructure to enable food service is central to our operations. The current infrastructure issues have been a struggle, and we are not code compliant, though the County continues to “grandfather” our operations, for now. Current cost projections are between $3M Transportation & Mobility Programs Pedestrian Sidewalk / ADA Compliance The purpose of this program is to provide funding to construct missing sidewalks in the City network, meeting ADA accessibility requirements. This includes new sidewalk segments in areas of the city where sidewalks and/or bike lanes did not exist, or replacement of sidewalk sections that do not meet ADA standards (which typically mean they are less than the minimum width). Project locations that are along arterial roads, close to schools, and are in areas of the City that or historically underserved will score higher. The funding amount in the current cycle is $14M for the ten-year period, or an average of $1.4M per year, and this amount has allowed the Engineering department to construction about 1.5 to 2 miles of new sidewalk per year. We are on pace to have completed 17 miles of new sidewalk by the end of 2025. Additionally, this funding can provide assistance to capital projects, where applicable, that may include extensive sidewalk and/or bike lane construction. Some examples of projects in the current cycle: Drake Road - Harvard to Stover (both sides), Prospect Road – Remington to Stover (both sides), Taft Hill to Overland (north side), and assistance with the Page 170 of 188 following capital projects: Laporte Multimodal corridor (Fishback to Sunset), South Timberline Corridor (Stetson Creek to Zephyr), and Power Trail at Harmony underpass. The next ten years will continue to see 1.5 to 2 miles of new sidewalk construction for the City to get to full buildout by the year 2065. The pedestrian program is a critical aspect of the Active Modes Plan, and also supports the goals in our Vision Zero action plan by providing pedestrian and bicycle infrastructure in areas of the City that previously did not exist. $16M Bike Infrastructure The purpose of this program is to provide funding to construct bicycle infrastructure as recommended in the Active Modes Plan. This includes linear facility improvements such as buffered and separated bicycle lanes as well as spot treatments or crossing improvements such as bike/ped signals and protected intersections. Projects have been prioritized using the outcomes-based evaluation measures of network connectivity, access to transit, safety and comfort, and health and equity as well as implementation measures of cost, project readiness, multimodal benefit, and synergy with other projects. The funding amount in the current cycle is $5M for the ten-year period, or an average of $500K per year. The funding has allowed City staff to improve bicycle facilities and crossing locations in coordination with the street maintenance program and utilities projects, fund planning and design, and provide local match for state and federal grant opportunities. Some examples of projects in the current cycle include City Park/Mulberry, Magnolia/Shields, Columbia/Lemay, and Magnolia/Shields crossing improvements as well as local match support for Laporte Multimodal corridor (Fishback to Sunset), Zach Elementary crossing improvements, and William/Neal Ziegler crossing improvements. The next ten years will be critical in supporting the Active Modes Plan, Vision Zero Action Plan, and 15-minute City implementation. This funding is indispensable in the design and local match for the numerous state and federal grant funding opportunities available for active modes of transportation. $5M Bike and Ped Grade Separated Crossing Fund The purpose of this program is to provide funding to construct bike and ped grade separated crossings in the City, typically underpasses or overpasses designed for bikes and pedestrians. The funding amount in the current cycle is $6M for the ten-year period, or $600K per year. This funding has allowed City staff to provide needed design, local match for grants, and construction funding, for these types of projects. Some examples of projects in the current 10-year cycle include the following: Vine and Lemay underpass, the South Timberline underpass, the Siphon overpass, and the Power Trail at Harmony underpass. The next ten years will be critical in supporting the Vision Zero action plan, the Active Modes Plan, and the Strategic Trails Plan, and this program supports all of these plans. Grant funding accounts for approximately 45-50% of our capital projects funding, and this funding is indispensable in the design and local match aspects of supporting those grant funding programs. Additionally, the Transportation Capital Projects Prioritization Study (TCPPS) and the 10-Year Transportation Capital Improvement Program (TCIP) call out these types of projects. $6M Page 171 of 188 Arterial Intersection Improvements Fund (could rename as Vision Zero Initiatives) The purpose of this program is to provide funding to construct improvements to our arterial intersections. These projects have been imperative to increase safety and multimodal mobility at our arterial intersections, which are part of our high injury network. The funding amount in the current cycle is $6M for the ten-year period, or $600K per year. This funding has allowed City staff to provide needed design, local match for grants, and construction funding, for these types of projects. Some examples of projects in the current 10-year cycle include the following: the College and Prospect intersection, College and Horsetooth intersection, and College and Trilby intersection. The next ten years will be critical in supporting the Vision Zero action plan and the Active Modes Plan, and this program supports all these plans. Grant funding accounts for approximately 45- 50% of our capital projects funding, and this funding is indispensable in the design and local match aspects of supporting those grant funding programs. Additionally, the Transportation Capital Projects Prioritization Study (TCPPS) and the 10-Year Transportation Capital Improvement Program (TCIP) call out these types of projects. In the TCPPS, the following intersection improvements are called out for planned execution in the next 10-year period: College/Drake, Shields/Prospect, Shields/Horsetooth, Drake/Lemay, Harmony/Boardwalk, Harmony/JFK, Harmony/Timberline. $10M Bus Purchases Transfort received $500,000 in CCIP funding in both 2018 and 2022, for a total of $1M. These funds were used as a local match to leverage an additional $10.5M in other funding sources, mainly federal, to purchase 14 buses: six Compressed Natural Gas buses in 2018 and eight Battery Electric buses in 2023-2024. Prior to the 2018 bus replacements, Transfort was operating a fleet with 21% of vehicles past Transfort’s useful life benchmark. Currently 0% of vehicles are past Transfort’s useful life benchmark, due to the ability to replace buses on a regular schedule over the past 6 years. Transfort has another remaining $1M in 2025 CCIP funds to be used toward bus purchases, these funds will be similarly leveraged in federal grant applications to increase the buying power of our local funds. In the next 10 years, Transfort will have at least 30 buses reach the end of their useful life that need to be replaced. Replacing buses at the end of their useful life is pivotal to maintaining the fleet in a state of good repair, minimizing mechanical breakdowns, and maximizing on time route performance, while also leading to lower lifetime maintenance costs. Moreover, the Federal Transit Administration (FTA) has launched several State of Good Repair initiatives over the past 5 years, making timely fleet replacements a federal priority. To align with Our Climate Future, Transfort has adopted a goal to purchase Zero Emission Vehicles for all future bus replacements. At approximately $1.2M each (in 2024 dollars), this translates to an unmet capital need of at least $36M over the next 10 years. Assuming the majority (80%) of these costs will be covered via federal and state funding sources, 20% or $7.2M would be required in local matching dollars. $5M ($500K/annually) Bus Stop Improvements Transfort was allotted $100,000 each year over 10 years in previous CCIP funds, for a total of $1,000,000, to be used toward bus stop improvements to ensure bus Page 172 of 188 stops complied with the Americans with Disabilities Act of 1990 (ADA). The first three years of CCIP funding (2016 through 2018) funded ADA improvements at 86 stops. The next 4 years of CCIP funding ($400,000) was leveraged as the local match for $1.5M in federal funds, this increased the ‘buying power’ of our local dollars by 5-fold and allowed Transfort to complete ADA improvements at 134 stops, and purchase needed amenities throughout the service area, including 25 shelters, approximately 90 other amenities such as benches and trash cans. To date, 220 stops have seen ADA upgrades as a result of CCIP funding. There are approximately 40 bus stops remaining that require ADA upgrades, these will be funded in part by the remaining CCIP funding. However, additional funding will be needed to complete ADA upgrades, to purchase additional amenities, and to maintain Transfort’s existing bus stops in a state of good repair for future riders. Transfort serves a total of 486 bus stops throughout Northern Colorado, 418 of these stops fall under Transfort’s jurisdiction for improvements and maintenance (other stops are maintained by partner agencies like CSU, Boulder, Longmont, and Loveland). Prior to 2022 maintenance of bus stops and acquisition of bus stop amenities was handled through a third-party advertising contract. However, since 2022 Transfort has been responsible for all maintenance costs associated with bus stops including maintaining all concrete pads and amenities in a state of good repair. Moreover, there are still a number of stops with ADA compliant concrete pads with either undersized or no amenities for riders. Transfort estimates an additional $500,000 in funding is needed annually to place amenities throughout the system and to maintain existing assets in a state of good repair. Research shows that increases in transit amenities like shelters, seating and lighting lead to increases in ridership on public transit. Ongoing CCIP funding will ensure the safety and comfort of our current riders and lead to increases in transit ridership. $1M ($500K/annually) PDT Capital Projects Transfort North Operations and Maintenance Facility Transfort’s existing maintenance facility (TMF) houses Transfort’s fleet of 57 buses (53 active and 4 contingency vehicles) and 30 support vehicles, and all vehicle maintenance activities take place at this facility for the current fleet. This facility also houses all dispatch and operations staff and some of Transfort’s admin staff, with additional staff offices located at the Downtown Transit Center. Due to the limited number of office spaces, the majority of offices are shared between 2 to 3 people. TMF was built in 1983 to accommodate approximately 25 buses and was expanded once in 2014 to house the additional buses that came with Transfort’s MAX BRT expanded service, although no additional maintenance bays or office space were added at that time. The Transit Master Plan (TMP), adopted in 2019, calls for significant expansion of Transfort service which would require an 55% increase in vehicles and a commensurate increase in staff, including both administrative and operating staff. The existing maintenance facility is not large enough to adequately house the projected number of buses, nor is it large enough to meet staffing needs for office space, dispatchers, training, or staff meetings. Transfort staff have identified several locations in north Fort Collins which would provide an adequate footprint for an additional Operations and Maintenance Facility. The vision for new facility includes a sufficient office space for the number Page 173 of 188 of staff needed to meet the needs of the TMP, training facilities to meet the needs of Transfort’s recruitment and retention program, maintenance bays and bus parking facilities to house the additional buses needed for expanded service, potential for mixed use commercial space, and a publicly accessible transit station. Constructing an additional Operations facility on the north side of Transfort’s service area is also estimated to reduce annual operating expenses as it will cut down on staff time and miles getting buses to and from their routes before and after their service times. A potential alternative to a North Operations and Maintenance Facility is an expansion of the existing maintenance facility, and a needs assessment is currently underway to determine a cost estimate. Current Estimated Cost (includes Design and Construction): $84M Estimated Local Match (20%): $16.8M Waste Diversion Upgrades and Recycling Future-Proofing Hoffman Mill critical upgrades include: Permanent scale house/office facility; Site planning/evaluation/design & future-proofing; Crusher replacement. Timberline Recycling Center future state planning and related upgrades (could combine with Composting projects) Current Estimated Cost: $3M Traffic Operations Facility Upgrades & Site Planning The Traffic operations facility requires security and office upgrades. In addition, site planning and design is needed for projected building expansion. $250K Parking Services Major Maintenance & System Upgrades Fund Major maintenance of the parking system has been extensive for several years and is currently being covered by AARPA dollars. Until the parking system is made sustainable (fully enterprise) additional major maintenance needs and upgrades will be necessary from sources other than parking revenues. Projects include major maintenance of aging parking structures, extensive upgrades of security camera systems, updates to current technologies, and additional needed technologies for system improvements for customer experience. $3M over 2 years ADA Compliance of Signalized Intersections and Pedestrian Sidewalks Within ½ Mile Radius of Transfort Fixed Bus Stops The City of Fort Collins has a Council directed goal of 100% ADA compliance of Transfort bus stop by 2026 with 90% of bus stops currently ADA compliant. ADA accessible bus stops are a critical transportation requirement for individuals with disabilities, and a high priority for our community. This funding request would extend ADA compliance to a radius of half a mile from fixed bus stops and include accessibility improvements in pedestrian push buttons; reconstruction of landings and ramps at signalized intersections; right-of-way corner ramps; reconstruction of non-compliant drive cut ramps. This project would accelerate the City’s effort to bring the pedestrian sidewalk system into ADA compliance. Traffic - $3.3 million current estimate to bring all ped pushbuttons into compliance. Streets - $4 Million for sidewalk and ramp improvements. Transfort - $3.5 million - This project could be expanded to include the $3.5M Transfort needs to upgrade the remaining 10% of bus stops to meet ADA compliance and fund some amenities throughout the system such as lighting, seating, and shelters. (this funding is also included above in the list of Transporation & Mobility Programs) Page 174 of 188 Estimated Cost: $7.5-10 M This project is scalable and could be limited to a ¼ mile radius or target specific areas on the Equity map. Civic Center Masterplan Advancement New Municipal Building A new municipal building is planned for block 32 just west of City Hall. A conceptual masterplan was completed and approved by City Council in 2021. Phase 1 for this plan includes the new building, projected to be about 95,000 square feet, and includes a geothermal field. Depending on funding (from multiple sources) construction may begin in 2027/28. $1.5M capital expansion fees. New Civic Parking Structure Placeholder Page 175 of 188 Streets Department 625 Ninth Street PO Box 580, Fort Collins, CO 80522 970-221-6615 streets@fcgov.com MEMORANDUM Date: March 11, 2024 To: Mayor and City Councilmembers Through: Kelly DiMartino, City Manager Caryn Champine, Planning, Development, and Transportation Director CC: Travis Storin, Chief Financial Officer Drew Brooks, Planning, Development, and Transportation Deputy Director From: Mallory Gallegos, Streets Director Subject: Annexed Streets Conditions and Levels of Service BOTTOM LINE This memo explains maintenance categories of annexed roads and explores the challenge of bringing annexed roads up to Larimer County Urban Area Street Standards (LCUASS) for City Maintenance Acceptance. BACKGROUND Annexed streets that already meet LCUASS standards have been accepted for “Full Maintenance” since they do not require additional efforts to be brought up to standards. Streets that do not meet the LCUASS standards are maintained at the level of service provided by the County at the time of annexation. Since these streets fail to meet the criteria defined by the City, which is commonly referred to in this document as LCUASS or City standards, they require more extensive improvements. The City of Fort Collins provides the same level of road maintenance as the County provided prior to annexation and City annexed roads fall into one of the following categories (Attachment A: Maintenance Level City of Fort Collins Map): • “Full Maintenance” provides the same level of service as other City streets, which includes major maintenance such as concrete repair, asphalt overlays, and street reconstruction. This level of service also includes minor maintenance. Page 176 of 188 • “Limited Maintenance” includes minor maintenance like filling potholes, asphalt patching, crack sealing, and chip seals but does not include major maintenance such as concrete repair, asphalt overlays or street reconstruction at the City’s expense. “Limited Maintenance” roads were those that had been accepted for maintenance in the County prior to annexation. • “No Maintenance” roads do not receive minor or major maintenance. Maintenance responsibilities on these “No Maintenance” roads fall to the adjacent property owners until the roads are brought up to City standards. In some cases, the streets are privately maintained by a Homeowner’s Association (HOA) and street maintenance will continue to be the responsibility of the HOA until the streets are reconstructed to the LCUASS. In other situations, the adjacent property owners are not maintaining the streets and they are deteriorating to unsafe levels. “No Maintenance” roads are roads that had not been accepted for maintenance in the County prior to annexation. A “No Maintenance” or “Limited Maintenance” road can get accepted for “Full Maintenance” by the City by being brought up to LCUASS standards. One current option is for property owners to submit a petition to the City Clerk’s Office to form a General Improvement District (GID) for repair and improvement of the “No Maintenance” or “Limited Maintenance” annexed road to current City standards. Another option is to implement a Special Improvement District (SID) which is formed to collect funds and finance one-time improvement projects to bring streets up to City standards so they can then be accepted by the City for long-term maintenance. To pursue a GID or SID the property owners will need to prepare an engineered plan to meet or gain variances from City standards and then submit this plan for approval through City Planning. A public hearing would be held, inviting public comment. If City Council approved the formation of a GID, this would impose a tax in the form of a mill levy on property owners in the district to collect funds and finance on-going maintenance and improvements. Improvement Districts can have significant costs associated with covering the extensive work needed. In both cases, the Streets Department staff can provide high level cost estimates to bring the streets up to “Limited Maintenance” and the property owners may hire an engineering consultant for more accurate cost estimates that include the full scope of infrastructure to bring the streets up to City standards or “Full Maintenance” (street lighting, drainage facilities, landscaping, irrigation, etc). Page 177 of 188 There is currently one neighborhood with a GID in place that increases their maintenance level from limited maintenance to additional major maintenance. The Skyview South GID No. 15 was originally formed in the County in 1997 for the express purpose of maintaining the roads in the GID. When neighborhoods were developed in the County, the County did not require roads to be built to City standards and did not accept the roads for future maintenance. Upon annexation to the City, the GID transferred to the City in 2009. The Skyview South GID No. 15 streets have not been brought up to City standards to be accepted for full maintenance by the City, however, the additional GID funding allows the neighborhood to choose higher levels of maintenance than a limited maintenance street. For example, they may choose an asphalt overlay instead of a chipseal and add curb, gutter and sidewalks to specific areas. With the addition of the GID funding and the ability to perform major maintenance, the streets are now in "good" condition. Another option for “No Maintenance” roads is to upgrade to a condition level that the City could provide “Limited Maintenance.” This is a less expensive option than bringing the roads up to “Full Maintenance.” The City has approximately 21.0 centerline miles of Annexed Roads that have not been accepted for full maintenance by the City, not including annexed gravel roads. This includes 17.9 centerline miles that are “Limited Maintenance” and 3.1 centerline miles that are “No Maintenance.” In 2014, it was estimated to cost $20M to bring all of these up to City standards. There would also be additional costs for ongoing maintenance. In 2023, a joint evaluation with the Streets Department and Poudre Fire Authority highlighted safety concerns in navigating “No Maintenance” roads and led to temporary solutions. To address the situation, the Streets Department filled the potholes on Bueno Drive, College Avenue East Frontage Road between Palmer Drive and Fairway Lane, College Avenue West Frontage Road between Saturn Drive and Skyway Drive, and Stover Street off of Harmony Road. These “No Maintenance” roads will continue to deteriorate, potentially impacting safety and emergency response. A detailed explanation of the City's policies on all County annexed streets is included in the Larimer County Urban Area Streets Standards (LCUASS) [Appendix G]. Page 178 of 188 LCUASS APPENDIX G (Attachment B): Appendix G to the LCUASS entitled; Policy and Standards for Maintenance and Improvement of Annexed Infrastructure (City of Fort Collins only) details the requirements for existing County developments to be accepted for future maintenance and is included as Attachment B to this memo. Appendix G to the LCUASS states: STREETS BUILT TO CITY STANDARDS - In August 1989 the Larimer County Commissioners adopted “Urban Area Road Standards” (County Urban Standards) for streets built in the urban growth areas of the cities of Loveland and Fort Collins. These standards were modeled after, and equal to or better than, the City of Fort Collins street standards in effect at that time. Streets developed in the County that were designed and constructed to those standards would be considered “meeting current City standards.” As long as those streets have been maintained and not allowed to deteriorate, the City would take on “full responsibility for future maintenance” to the level that all City streets built to City standards have been maintained. If the streets had not been maintained properly and repairs were necessary, the City would only provide minor maintenance to a level to keep the streets from becoming unsafe. With the improvements in a deteriorated state, the property owners adjacent to these streets would be required to rehabilitate the streets to meet acceptable maintenance standards of the City, at their expense, prior to the City taking on full responsibility for maintenance. Actions that would be taken when a road is beyond minor maintenance, Section G.03 of Appendix G states: At such time that the City determines that minor maintenance is no longer adequate to protect public safety, the annexed infrastructure must be upgraded to City standards at no expense to the City. Improvements may be done voluntarily by the adjacent property owners, or the City Council may impose the improvements through the adoption of a Special Improvement District (SID). The SID is still an option available to the property owners on a voluntary basis. NEXT STEPS Five areas in the Southwest Annexation fall into the category of “No Maintenance” and include significant frontage roads with local businesses. Most of these roads are 40 to 50 years old, far beyond the 20-year design life. The roads are moving toward a point where they will be unsafe for emergency service access and the City will need to consider imposing a GID or SID on the Page 179 of 188 adjacent property owners to bring the roads back to a safe level of service or another option is to grind the roads to gravel and maintain it as a gravel surface. Imposing GIDs and SIDs on property owners would require additional staff to administer. Of the 3.1 centerline miles of “No Maintenance” streets, 1.9 centerline miles are currently being maintained by HOAs. The cost to reconstruct and upgrade the remaining 1.2 centerline miles to “Limited Maintenance” roads is approximately a one-time cost of $1M and an ongoing cost of $0.50/square yard per year for limited maintenance. This estimate does not include any street lighting, curb and gutter, drainage facilities, landscaping (tree lawn items), irrigation, etc. This estimate only includes road demolition to install normal standard pavement section. This would not bring the streets up to City standards but would improve their condition significantly and allow for limited maintenance. To use City funds to maintain “No Maintenance” streets would necessitate a policy change. Page 180 of 188 Page 181 of 188 Appendix G – Policy and Standards for Maintenance and Improvement of Annexed Infrastructure (City of Fort Collins only) Appendix G Policy and Standards for Maintenance and Improvement of Annexed Infrastructure (City of Fort Collins only) Larimer County Urban Area Street Standards – Repealed and Reenacted April 1, 2007 Page G-1 Adopted by Larimer County, City of Loveland, City of Fort Collins Page 182 of 188 Page G-2 Larimer County Urban Area Street Standards – Repealed and Reenacted January 17, 2007 Adopted by Larimer County, City of Loveland, City of Fort Collins Page 183 of 188 Appendix G – Policy and Standards for Maintenance and Improvement of Annexed Infrastructure (City of Fort Collins only) APPENDIX “G” POLICY & STANDARDS for MAINTENANCE AND IMPROVEMENT of ANNEXED INFRASTRUCTURE (CITY OF FORT COLLINS ONLY) G.01 City of Fort Collins Policy GM-3.1 “Annexation Policy” of the City Plan Principles and Policies, includes the following general statement for the handling of existing infrastructure constructed in Larimer County and subsequently annexed into the City: Infrastructure standards. Developed land, or areas seeking voluntary annexation, must have their infrastructure improved (e.g., streets, utilities and storm drainage systems) to City standards, or must have a mechanism (e.g. a special improvement district, capital improvements program or other type project) in place to upgrade such services and facilities to City standards before the City will assume full responsibility for future maintenance. This statement requires further clarification for application to infrastructure already meeting City standards as well as infrastructure that does not meet City standards. Therefore, this Appendix is established in order to (1) set the level of maintenance that the City will initially provide on annexed infrastructure and (2) present criteria for determining what improvements have to be done to upgrade the infrastructure to meet City Standards before the City assumes full responsibility for maintenance. G.02 MAINTENANCE CRITERIA G.02.01 INITIAL MAINTENANCE G.02.01.01 STREETS BUILT TO CITY STANDARDS - In August 1989 the Larimer County Commissioners adopted “Urban Area Road Standards” (County Urban Standards) for streets built in the urban growth areas of the cities of Loveland and Fort Collins. These standards were modeled after, and equal to or better than, the City of Fort Collins street standards in effect at that time. Streets developed in the County that were designed and constructed to those standards would be considered “meeting current City standards.” As long as those streets have been maintained and not Larimer County Urban Area Street Standards – Repealed and Reenacted April 1, 2007 Page G-1 Adopted by Larimer County, City of Loveland, City of Fort Collins Page 184 of 188 allowed to deteriorate, the City would take on “full responsibility for future maintenance” to the level that all City streets built to City standards have been maintained. If the streets had not been maintained properly and repairs were necessary, the City would only provide minor maintenance to a level to keep the streets from becoming unsafe. With the improvements in a deteriorated state, the property owners adjacent to these streets would be required to rehabilitate the streets to meet acceptable maintenance standards of the City, at their expense, prior to the City taking on full responsibility for maintenance. G.02.01.02 STREETS NOT BUILT TO CITY STANDARDS - All other streets and roads that have been annexed into the City and not constructed to County Urban Standard nor to City standards, shall be handled in the following way: (a) The City shall provide only minor maintenance to the pavement surfaces to keep them from becoming unsafe. Minor maintenance may consist of periodic grading of gravel surfaces and filling potholes in asphalt surfaces. In addition the City will maintain all culverts and storm drainage pipes that pass under an annexed street. (b) The property owners adjacent to annexed county streets will be responsible for maintenance of curb and gutter and/or borrow ditches and culverts that cross under driveways. G.02.01.03 UTILITIES are generally owned by the City or by publicly regulated utility companies and/or districts. The City or the utility companies/districts shall maintain all utility lines and facilities owned by them. Private utility systems shall be the responsibility of the utility owners and not the City. G.02.01.04 STORM DRAINAGE SYSTEMS - The level of maintenance of storm drainage facilities dedicated to the public, to be assumed by the City, shall be determined by the City. The property owners must first have a study made (at their expense) of the existing drainage system, including everything that contributes runoff to the system, how it functions, and how it conforms or fails to conform to City standards. The study must be performed by a professional engineer licensed in the State of Colorado. The study results must then be submitted to the City for evaluation. The City will evaluate the system for its adequacy as a functioning system and determine whether it meets city standards. If the system functions adequately, meets City standards and is located in the public right-of-way or located on land owned by the City, the City Page G-2 Larimer County Urban Area Street Standards – Repealed and Reenacted January 17, 2007 Adopted by Larimer County, City of Loveland, City of Fort Collins Page 185 of 188 Appendix G – Policy and Standards for Maintenance and Improvement of Annexed Infrastructure (City of Fort Collins only) will may accept certain responsibilities for maintenance. If the system does not function or has certain non-functioning parts or does not meet City standards, the City shall evaluate the seriousness of the deficiencies for the health, safety or welfare of the public and take appropriate action. Non-functioning components that cause damage only to the property owners adjoining the system, will be the full responsibility of those property owners to correct or improve as they deem necessary. If the system deficiencies do cause damage to the public other than the adjoining property owners, the City shall take action to the degree necessary to inform the property owners of the problem, indicating their responsibility to correct the problems. G.02.02 FULL RESPONSIBILITY FOR MAINTENANCE When infrastructure meets or has been upgraded to an acceptable level to meet City standards for the City to accept “full responsibility for maintenance,” the City shall maintain such infrastructure to the same level that maintenance is performed on all other public infrastructure in the City. G.03 IMPROVEMENTS TO CITY STANDARDS CRITERIA At such time that the City determines that minor maintenance is no longer adequate to protect public safety, the annexed infrastructure must be upgraded to City standards at no expense to the City. Improvements may be done voluntarily by the adjacent property owners, or the City Council may impose the improvements through the adoption of a Special Improvement District (SID). The SID is still an option available to the property owners on a voluntary basis. The required improvements will be determined by the City specifically for each subdivision depending upon the existing problems that need to be corrected and constraints that may prevent certain improvements from being built. Required improvements to meet City standards at the expense of the property owners may include, but not be limited to, the following: G.03.01 STREETS (a) Improve all streets to standard widths (b) Pavement (upgraded to 20 year design life) (c) Curb and gutter required (if borrow ditches must remain, other measures may be considered to allow runoff to the ditch, such as using a concrete edge to protect the pavement and borrow ditch) (d) Sidewalk - detached from the curb or roadway surface (e) Bridges and box culverts - Upgrade for HS20 design loading and 50 year design life (f) Retaining walls - Not allowed in the public right-of-way (g) Grades - Must meet minimum and maximum criteria (h) Street lights - must be paid for by the property owners and installed Larimer County Urban Area Street Standards – Repealed and Reenacted April 1, 2007 Page G-3 Adopted by Larimer County, City of Loveland, City of Fort Collins Page 186 of 188 by the City (i) Borrow ditches and driveway culverts - If necessary to remain, must be maintained by the adjacent property owners G.03.02 UTILITIES (a) Water lines (1) City or district owned lines, no improvements required (2) Private lines will need to be upgraded to City or District standards for City or district acceptance (b) Sewer lines (1) City or district owned lines, no improvements required (2) Private lines will need to be upgraded to City or District standards for City or district acceptance (3) In areas with no existing sewers (septic systems), sewer lines must be installed in the streets prior to upgrading the street. (c) Manholes and valve boxes - Adjust to grade of finished street surface (d) Other utilities - Upgrade to acceptable standards of the utility prior to paving G.03.03 STORM DRAINAGE (a) The drainage system must be upgraded to a functioning system (b) Borrow ditches - Remove and replace with concrete curb and gutter ( if borrow ditches must remain, the minimum thalweg slope is 2% or if <2%, ditch must be paved with a concrete valley pan to prevent standing water) (c) Borrow ditch side slopes - Must be 4:1 or flatter (d) Driveway culverts - Replace with acceptable City standard pipe (e) Borrow ditches and driveway culverts - If necessary to remain, must be maintained by the adjacent property owners (f) Detention Ponds - Must be certified by a professional engineer licensed in the State of Colorado that it functions in accordance with City standards (g) Culverts under the streets - Corrugated metal, plastic or other material culverts must be resized and replaced with Reinforce Concrete Pipe that meets City standards. (h) Inlets - May need to be replaced or remodeled if they are undersized or do not meet City standards G.03.04 OTHER IMPROVEMENTS (a) Other improvements unique to the location - The City shall be the determining authority on what must be done with unique circumstances not covered in the above criteria. G.04 ARTERIAL AND COLLECTOR STREETS Page G-4 Larimer County Urban Area Street Standards – Repealed and Reenacted January 17, 2007 Adopted by Larimer County, City of Loveland, City of Fort Collins Page 187 of 188 Appendix G – Policy and Standards for Maintenance and Improvement of Annexed Infrastructure (City of Fort Collins only) These Criteria shall apply to all annexed streets, including arterial and collector streets, which have been developed in the County. Since arterial and collector streets generally carry more traffic for the public at large than for adjacent properties, they may be maintained by the City to a higher standard until such time as upgrades are constructed. The adjoining property owners shall then be responsible only for the cost to upgrade the equivalent of their local street frontage. Larimer County Urban Area Street Standards – Repealed and Reenacted April 1, 2007 Page G-5 Adopted by Larimer County, City of Loveland, City of Fort Collins Page 188 of 188