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COUNCIL - COMPLETE AGENDA - 10/15/2024
City of Fort Collins Page 1 of 9 City Council Summary Agenda City Council Regular Meeting Agenda October 15, 2024 at 6:00 PM Jeni Arndt, Mayor Emily Francis, District 6, Mayor Pro Tem Susan Gutowsky, District 1 Julie Pignataro, District 2 Tricia Canonico, District 3 Melanie Potyondy, District 4 Kelly Ohlson, District 5 City Council Chambers 300 Laporte Avenue, Fort Collins & via Zoom at https://zoom.us/j/98241416497 Cablecast on FCTV Channel 14 on Connexion Channel 14 and 881 on Xfinity Carrie Daggett Kelly DiMartino Delynn Coldiron City Attorney City Manager City Clerk PROCLAMATIONS & PRESENTATIONS 5:00 PM A) PROCLAMATIONS AND PRESENTATIONS PP 1. Declaring October 20th as Community Media Day. PP 2. Declaring October 13th-19th as National Veterinary Technician Week. PP 3. Declaring the Month of October as Domestic Violence Awareness Month. PP 4. Declaring the Month of October as Arts and Humanities Month. REGULAR MEETING 6:00 PM B) CALL MEETING TO ORDER C) PLEDGE OF ALLEGIANCE D) ROLL CALL E) CITY MANAGER'S AGENDA REVIEW • City Manager Review of Agenda • Consent Calendar Review, including removal of items from Consent Calendar for individual discussion. F) COMMUNITY REPORTS G) PUBLIC COMMENT ON ANY TOPICS OR ITEMS OR COMMUNITY EVENTS (Including requests for removal of items from Consent Calendar for individual discussion.) Page 1 City of Fort Collins Page 2 of 9 Individuals may comment regarding any topics of concern, whether or not included on this agenda. Comments regarding land use projects for which a development application has been filed should be submitted in the development review process** and not to Council. • Those who wish to speak are required to sign up using the online sign-up system available at www.fcgov.com/council-meeting-participation-signup/ • Each speaker will be allowed to speak one time during public comment. If a speaker comments on a particular agenda item during general public comment, that speaker will not also be entitled to speak during discussion on the same agenda item. • All speakers will be called to speak by the presiding officer from the list of those signed up. After everyone signed up is called on, the presiding officer may ask others wishing to speak to identify themselves by raising their hand (in person or using the Raise Hand option on Zoom), and if in person then will be asked to move to one of the two lines of speakers (or to a seat nearby, for those who are not able to stand while waiting). • The presiding officer will determine and announce the length of time allowed for each speaker. • Each speaker will be asked to state their name and general address for the record, and, if their comments relate to a particular agenda item, to identify the agenda item number. Any written comments or materials intended for the Council should be provided to the City Clerk. • A timer will beep one time and turn yellow to indicate that 30 seconds of speaking time remain and will beep again and turn red when a speaker’s time has ended. [**For questions about the development review process or the status of any particular development, consult the City's Development Review Center page at https://www.fcgov.com/developmentreview, or contact the Development Review Center at 970.221.6760.] H) PUBLIC COMMENT FOLLOW-UP I) COUNCILMEMBER REMOVAL OF ITEMS FROM CONSENT CALENDAR FOR DISCUSSION CONSENT CALENDAR The Consent Calendar is intended to allow Council to spend its time and energy on the important items on a lengthy agenda. Staff recommends approval of the Consent Calendar. Agenda items pulled from the Consent Calendar by either Council or the City Manager will be considered separately under their own Section, titled “Consideration of Items Removed from Consent Calendar for Individual Discussion.” Items remaining on the Consent Calendar will be approved by Council with one vote. The Consent Calendar consists of: • Ordinances on First Reading that are routine; • Ordinances on Second Reading that are routine; • Those of no perceived controversy; • Routine administrative actions. Page 2 City of Fort Collins Page 3 of 9 1. Second Reading of Ordinance No. 139, 2024, Appropriating Prior Year Reserves and Authorizing Transfers of Appropriations for the Safe Routes to School Zach Elementary School Crossings Project and Related Art in Public Places. This Ordinance, unanimously adopted on First Reading on October 1, 2024, provides supplemental appropriations to the Safe Routes to School (SRTS) Zach Elementary School Crossings Project (Project). If approved, this item appropriates: 1. $176,760 from Transportation Capital Expansion Fee (TCEF) reserves to the Project; 2. $277,750 from Transportation Services Fund reserves to the Project; 3. $4,410 (0.8% of TCEF and Transportation Services Fund reserves contribution) from TCEF reserves ($1,750) and Transportation Services Fund reserves ($2,660) to the Art in Public Places (APP) program; 4. $90 (0.2% of TCEF and Transportation Services Funds contribution) for maintenance of art from the Transportation Services Fund reserves to the APP program. 2. Second Reading of Ordinance No. 140, 2024, Making Supplemental Appropriations from the State of Colorado for the Universal Pre-School Program at the Northside Aztlan Community Center. This Ordinance, unanimously adopted on First Reading on October 1, 2024, appropriates unanticipated revenue of $30,469 from the State of Colorado in 2024 to help fund the Universal Pre-school (UPK) program at the Northside Aztlan Community Center through the Recreation Fund. 3. Second Reading of Ordinance No. 141, 2024, Appropriating Revenue from a Funding Advancements for Surface Transportation and Economic Recovery Grant and the Colorado Department of Transportation Americans with Disabilities Act Grant and Appropriating Prior Year Reserves and Authorizing Transfers for the US 287 and Triangle Drive Signal Installation Project and Related Art in Public Places. This Ordinance, unanimously adopted on First Reading on October 1, 2024, appropriates the following funds to the US 287 and Triangle Drive Signal Installation Project (Project): 1. $682,211 in Funding Advancements for Surface Transportation and Economic Recovery (FASTER) funds to the Project; 2, $183,843 in CDOT Americans with Disabilities Act (ADA) funds; 3. $688,897 from Transportation Capital Expansion Fee (TCEF) reserves to the Project; 4. $6,686 (0.8% of TCEF contribution) from TCEF reserves to the Art in Public Places (APP) program; 5. 0.2% of TCEF contribution for maintenance of art from the Transport ation Services Fund reserves to the APP program. The funds will be used to design and install a new traffic signal as well as bicycle and pedestrian improvements connecting Triangle Drive to the northeast towards the Lakeview on the Rise development. There is severe crash history at this intersection and in 2023 CDOT committed FASTER funding to the City for signal improvements. CDOT has also committed funding for pedestrian improvements to bring the intersection into compliance with ADA requirements. Page 3 City of Fort Collins Page 4 of 9 4. First Reading of Ordinance No. 142, 2024, Appropriating Philanthropic Revenue Received by City Give in 2024 and Prior Year Reserves for Various Programs and Services as Designated by the Donors. The purpose of this item is to request an appropriation of $53,890 in philanthropic revenue received by City Give. These miscellaneous gifts to various City departments support a variety of programs and services and are aligned with both the City’s strategic priorities and the respective donors’ designation. In 2019, City Give, a formalized enterprise-wide initiative was launched to create a transparent, non-partisan governance structure for the acceptance and appropriations of charitable gifts. 5. First Reading of Ordinance No. 143, 2024, Making Supplemental Appropriations and Authorizing Transfers of Appropriations for Various Transit Services Grants and Revenue. The purpose of this item is to appropriate grant revenue and the corresponding local match for Transfort. 6. First Reading of Ordinance No. 144, 2024, Making a Supplemental Appropriation of Grant Funds from the Edward Byrne Memorial Justice Assistance Grant Program for Fort Collins Police Services. The purpose of this item is to support Fort Collins Police Services in work performed as a member of the Northern Colorado Drug Task Force. The Northern Colorado Drug Task Force is managed by Larimer County Sheriff Department, with both Fort Collins Police Services and Loveland Police being members. These member agencies support a broad range of activities to prevent and control drug-related crimes. Larimer County applied for and was awarded $50,647 through the Edward Byrne Memorial Justice Assistance Grant (JAG) program in support of operating the Northern Colorado Drug Task Force (Attachment 3). The City of Fort Collins, City of Loveland and Larimer County entered an intergovernmental agreement (Attachment 2), demonstrating the allocation of the $50,647 awarded under JAG in support of the Northern Colorado Drug Task Force. Fort Collins Police Services received $15,807 to support personnel costs and other operating costs directly attributed to the Northern Colorado Drug Task Force. 7. Items Relating to the Safe Streets and Roads for All Grant Awards. A. Resolution 2024-122 Authorizing the Mayor to Sign a Grant Agreement with the Federal Highway Administration under the Fiscal Year 2023 Safe Streets and Roads for All Grant Program. B. First Reading of Ordinance No. 145, 2024, Making Supplemental Appropriations for Projects Funded Through the Safe Streets and Roads for All Grant Program. The purpose of this item is to support FC Moves in expanding on the City’s current Active Modes Plan and Vision Zero Plan, specifically through a: • Bikeway study that serves to identify specific safety concerns and potential countermeasures, and to understand feasibility and network impacts of lane reductions on the arterial network. • Demonstration activity that tests the effectiveness of temporary vertical protection along Centre Avenue, between Centre Drive/Bay Drive and Worthington Circle, to inform future projects citywide. Page 4 City of Fort Collins Page 5 of 9 FC Moves in collaboration with Traffic Operations, Engineering, and Streets applied to the Federal Highway Administration’s Fiscal Year 2023 (FY23) Safe Streets and Roads for All (SS4A) grant program, seeking funds in support of the bikeway study that includes (1) public and stakeholder engagement to understand barriers to active transportation on the corridors bounded by College Avenue, Horsetooth Road, Overland Trail and Laporte Avenue; (2) corridor safety audits to identify crash patterns and infrastructure that reduce the risk of bike and pedestrian crashes; and (3) data analysis and countermeasure selection. In addition, funds in support of the demonstration activity that include installation of temporary flexible posts and curbing along Centre Avenue, and associated data collection were requested under the FY23 SS4A grant program. In support of funding the required 20% match under the FY23 SS4A grant program, FC Moves requested matching funds under the Colorado Department of Local Affairs Local Match (LOMA) grant program. Both the Federal Highway Administration and Colorado Department of Local Affairs (DOLA) responded favorably to the requests for funds, with $964,480 being award under the FY23 SS4A grant program and $241,120 being awarded under DOLA’s LOMA grant program. Total project costs for both the bike study and demonstration activity, totaling $1,205,600, are funded in full through these grant awards from the FY23 SS4A grant program and DOLA’s LOMA grant program. The Resolution for consideration will authorize the Mayor to sign the Intergovernmental Agreement (IGA) with the Federal Highway Administration to receive grant funding to support the bike study and the demonstration activity. As demonstrated by the LOMA grant agreement (Attachment 3) by accepting the LOMA funding from DOLA, the City agrees to all terms and conditions, including use of the $241,120 as non- federal match to the FY23 SS4A grant. The Ordinance for consideration will appropriate the $964,480 in federal funds from the FY23 SS4A grant program and $241,120 in state funds from the LOMA grant program. 8. First Reading of Ordinance No. 146, 2024, Making a Supplemental Appropriation of Colorado Division of Criminal Justice Grant Revenues for Various Restorative Justice Services Programs. The purpose of this item is to appropriate grant revenue to fund Restorative Justice programs within Community Development and Neighborhood Services (“CDNS”). Additional grant funds in the amount of $13,000 have been awarded from the Colorado Division of Criminal Justice (“DCJ”) Juvenile Diversion fund for the continued operation of City Restorative Justice programs, including RESTORE for shoplifting offenses and Restorative Justice Conferencing for other offenses. The grant funds are in addition to a grant awarded to Restorative Justice Services earlier this year from DCJ in the amount of $40,428, for a total award of $53,428. The first $40,428 award was included in the Annual Adjustment Ordinance No. 134, 2024, was passed on Second Reading on October 1, 2024. No match is required and the grant period is July 1, 2024, to June 30, 2025. 9. First Reading of Ordinance No. 147, 2024, Making a Supplemental Appropriation in the 2050 Tax Parks Rec Transit OCF Fund for Evaluation of the Inflation Reduction Act Tax Credits. The purpose of this item is to appropriate $100,000 from 2050 tax revenue to contract with external consultants to evaluate the cost/benefit of the City pursuing Inflation Reduction Act (IRA) tax credits. Page 5 City of Fort Collins Page 6 of 9 10. First Reading of Ordinance No. 148, 2024, Updating Section 4-142 of the Code of the City of Fort Collins Regarding Sterilization of Adopted Animals to Align with State Law. The purpose of this item is to update the local Fort Collins Animal Code to align with Colorado Revised Statutes (C.R.S.) Section 35-80-106.4. 11. First Reading of Ordinance No. 149, 2024, Approving an Amended and Restated Ground Lease Agreement Between the Cities of Loveland and Fort Collins and Discovery Air, LLC, for Property at the Northern Colorado Regional Airport. The purpose of this item is to approve an amended and restated ground lease between the City of Fort Collins, the City of Loveland, and Discovery Air LLC at the Northern Colorado Regional Airport. The parties have an existing ground lease agreement with Discovery Air, LLC, at the Northern Colorado Regional Airport. The parties desire to amend and restate the lease substantially similar to the form attached hereto. Approval of the Amended and Restated Ground Lease between the cities of Loveland and Fort Collins (the “Agreement”) is reserved to the City Councils because there are non-standard lease terms in the Agreement. 12. First Reading of Ordinance No. 150, 2024, Authorizing the Advertisement and Future Sale of the Real Property Located at 945 East Prospect Road. The purpose of this item is to authorize the advertisement and future sale of the City-owned property located at 945 East Prospect Road (the “Property”). The Property was originally acquired by the City’s Engineering Department for roadway widening purposes, and the City will exclude from the sale of the Property approximately 1540 square feet, being the area necessary to construct the future road improvement project (the “Reserved ROW”). 13. Resolution 2024-123 Authorizing Disabled Resource Services to Retain Community Development Block Grant Funding to Apply Towards the Acquisition of a New Public Facility. The purpose of this item is to obtain authorization from Council to allow Disabled Resource Services to sell their current building located at 1017 Robertson, which was acquired with $385,000 in Community Development Block Grant funding, and to retain the funding provided by the City to re-invest in a new public facility. These funds were provided as a Due on Sale Loan, which triggers repayment upon the sale of the existing building. Approval by City Council is required to allow Disabled Resource Services to transfer the funding to a new building. 14. Resolution 2024-124 Approving Fort Fund Grant Disbursements. The purpose of this item is to approve Fort Fund grants from the Cultural Development and Programming Account and the Tourism Programming Account for the selected community events in the Program Support Grant – September Deadline category, based upon the recommendations of the Cultural Resources Board. 15. Resolution 2024-125 Supporting a Grant Application for Gray and Black-Market Marijuana Enforcement Funding for Fort Collins Police Services. The purpose of this item is to obtain support for the City to apply for grant money to support enforcement of gray and black-market marijuana activity for Fort Collins Police Services. Page 6 City of Fort Collins Page 7 of 9 16. Resolution 2024-126 Adopting Findings of Fact in Support of the City Council’s Decision on Appeal to Uphold the Planning and Zoning Commission Approval of the College & Trilby Multifamily Community Project Development Plan #PDP220009. The purpose of this item is to make Findings of Fact and Conclusions regarding Council’s decision at the October 1, 2024, College and Trilby Multifamily Community Project Development Plan appeal hearing dismissing the failure to properly interpret and apply allegations and thereby upholding the Hearing Officer’s decision to approve the Project Development Plan. END OF CONSENT CALENDAR J) ADOPTION OF CONSENT CALENDAR K) CONSENT CALENDAR FOLLOW-UP (This is an opportunity for Councilmembers to comment on items adopted or approved on the Consent Calendar.) L) STAFF REPORTS M) COUNCILMEMBER REPORTS N) CONSIDERATION OF ITEMS REMOVED FROM THE CONSENT CALENDAR FOR INDIVIDUAL DISCUSSION O) CONSIDERATION OF ITEMS PLANNED FOR DISCUSSION The method of debate for discussion items is as follows: • Mayor introduced the item number and subject; asks if formal presentation will be made by staff • Staff presentation (optional) • Mayor requests public comment on the item (three minute limit for each person) • Council questions of staff on the item • Council motion on the item • Council discussion • Final Council comments • Council vote on the item Note: Time limits for individual agenda items may be revised, at the discretion of the Mayor, to ensure all have an opportunity to speak. The timer will buzz when there are 30 seconds left and the light will turn yellow. It will buzz again at the end of the speaker’s time. 17. Items Relating to Water Supply Requirement Fee and the Excess Water Use Surcharge, and Pre-1984 Nonresidential Annual Allotments. A. First Reading of Ordinance No. 151, 2024, Amending Chapter 26 of the Code of the City of Fort Collins to Review Miscellaneous Water Fees and Charges, Including the Water Supply Requirement Fee and Excess Water Use Surcharge. B. First Reading of Ordinance No. 152, 2024, Amending Chapter 26 of the Code of the City of Fort Collins Regarding Annual Water Allotments for Nonresidential Water Services. The purpose of this item is to seek approval for both the adjustments to the Water Supply Requirement (WSR) fee amount and methodology and assignment of allotments to pre-1984 nonresidential accounts. Page 7 City of Fort Collins Page 8 of 9 18. Sanctuary on the Green Project Development Plan Appeal. The purpose of this quasi-judicial item is to consider an appeal of the Hearing Officer’s decision on July 28, 2024, approving the Sanctuary on the Green Project Development Plan, PDP210018. The Appellants filed a Notice of Appeal on August 8, 2024, alleging: • That the Hearing Officer failed to conduct a fair hearing in that they substantially ignored his previously established rules of procedure. The Appellants assert that the Applicant did not diligently pursue approval of their development application as required by Section 2.2.11 of the Land Use Code. The Appellants claim the development application for Sanctuary on the Green should have lapsed on April 17, 2024, as a result. The Appellants further argue that the City’s changing interpretation of the lapse date for this development application demonstrated an improper bias benefitting the Applicant. • That the Hearing Officer failed to conduct a fair hearing in that they considered evidence relevant to his findings which was substantially false or grossly misleading. The Appellants assert that: “The Hearing Officer relied largely on the Staff Report and a letter from the Applicant’s lawyer when issuing his decision. Evidence that the plan is in compliance with NSP [Northwest Subarea Plan] is cherry-picked in both of these documents.” • That the Hearing Officer failed to conduct a fair hearing in that they failed to receive all relevant evidence offered by the Appellants. The Appellants assert that: “The City erred in failing to provide the Hearing Officer with 342 pages of public comment in advance of the July 15, 2024, hearing, creating an unfair hearing.” The comments were received and publicly available, but city staff inadvertently did not directly forward those to the hearing officer until staff was made aware of the error. • That the Hearing Officer failed to properly interpret and apply relevant provisions of the Land Use Code – specifically the following Land Use Code sections: • 2.2.11 – Lapse • 1.2.2 – Purpose • 3.5.1 – Building and Project Compatibility • 4.5(E) – Low Density Mixed-Use Neighborhood Development Standards Northwest Subarea Plan Note: The Transitional Land Use Regulations apply to the project, because the project was submitted before May 17, 2024. All references in this AIS to “Land Use Code” or “LUC” refer to sections of the Transitional Land Use Regulations. P) COUNCILMEMBER REPORTS Page 8 City of Fort Collins Page 9 of 9 Q) OTHER BUSINESS OB 1. Possible consideration of the initiation of new ordinances and/or resolutions by Councilmembers. (Three or more individual Councilmembers may direct the City Manager and City Attorney to initiate and move forward with development and preparation of resolutions and ordinances not originating from the Council's Policy Agenda or initiated by staff.) OB 2. Consideration of a Motion to Reschedule the Regular meeting scheduled for Tuesday, November 5, 2024 to Monday, November 4, 2024: "In accordance with Section 2-28 of the City's Municipal Code, I move to change the date for the first regular Council meeting in November to Monday, November 4, 2024, due to the national election being held on Tuesday, November 5." OB 3. Consideration of a Motion to Call a Special Meeting on Wednesday, November 6, 2024: "In accordance with Section 2-29 of the City's Municipal Code, I move that Council call a Special Meeting to be held at on November 6, 2024, at 300 Laporte Avenue, in Council Chambers, starting at 6:00 p.m., for the purpose of hearing the Rescue Mission appeals." R) ADJOURNMENT Every regular Council meeting will end no later than midnight, except that: (1) any item of business commenced before midnight may be concluded before the meeting is adjourned and (2) the Council may, at any time prior to adjournment, by majority vote, extend a meeting beyond midnight for the purpose of considering additional items of business. Any matter that has been commenced and is still pending at the conclusion of the Council meeting, and all matters for consideration at the meeting that have not yet been considered by the Council, will be deemed continued to the next regular Council meeting, unless Council determines otherwise. Upon request, the City of Fort Collins will provide language access services for individuals who have limited English proficiency, or auxiliary aids and services for individuals with disabilities, to access City services, programs and activities. Contact 970.221.6515 (V/TDD: Dial 711 for Relay Colorado) for assistance. Please provide advance notice. Requests for interpretation at a meeting should be made by noon the day before. A solicitud, la Ciudad de Fort Collins proporcionará servicios de acceso a idiomas para personas que no dominan el idioma inglés, o ayudas y servicios auxiliares para personas con discapacidad, para que puedan acceder a los servicios, programas y actividades de la Ciudad. Para asistencia, llame al 970.221.6515 (V/TDD: Marque 711 para Relay Colorado). Por favor proporcione aviso previo cuando sea posible. Las solicitudes de interpretación en una reunión deben realizarse antes del mediodía del día anterior. Page 9 File Attachments for Item: PP 1. Declaring October 20 as Community Media Day. Page 10 PROCLAMATION WHEREAS, the sharing of ideas and information helps to build common understanding and common values within a community and access to information in today’s media environment is critical for the healthy functioning of our community; and WHEREAS, community media organizations provide a means for diverse communities to tell their stories, hear each other’s stories, and create new stories together; and WHEREAS, community media organizations provide information to the community that is not covered by mainstream commercial media and also provide people with the skills necessary for the creation, sharing, and consumption of knowledge and ideas through media; and WHEREAS, community media is an important resource for participating in local democratic policy and processes and connects community organizations, schools, and local governments to their constituents; and WHEREAS, many communities are not aware of the diverse and valuable programming on public, education, and government access channels or community radio channels; and WHEREAS, communities will benefit from increased general awareness of, viewing audiences for, and creators of media content created by and for the community. NOW, THEREFORE, I, Emily Francis, Mayor Pro Tem of the City of Fort Collins, do hereby proclaim October 20, 2024, as COMMUNITY MEDIA DAY and FC Public Media, our non-profit community access media center, plays a vital role in the building our community by encouraging conversations about our common interests, increasing discourse around policy issues, fostering understanding of local cultures, and sharing information to improve our lives. IN WITNESS WHEREOF, I have here unto set my hand and the seal of the City of Fort Collins this 15th of October, 2024. ___________________________________ Mayor Pro Tem ATTEST: ___________________________________ City Clerk Page 11 Item PP 1. File Attachments for Item: PP 2. Declaring October 13-19 as National Veterinary Technician Week. Page 12 PROCLAMATION WHEREAS, veterinary technicians are important members of the veterinary health care team, work in veterinary medicine throughout Colorado and the nation, and are extremely important in the effort to provide quality animal health care to ensure the humane treatment of all animals; and WHEREAS, there are over one hundred accredited programs throughout the United States that provide intensive study of the skills and knowledge to work competently as a Veterinary Technician, including, anatomy, physiology, microbiology, clinical techniques, pharmacology, anesthesiology, surgical and medical nursing, radiology, and clinical pathology training; and WHEREAS, it is extremely important that each veterinary technician maintain certification, registration, or licensure through the successful completion of a national and or state examination, practice lifelong learning through continuing education, and uphold high ethical standards; and WHEREAS, veterinary technicians will be joining their colleagues across the country and state to urge all to become aware of the important contribution of veterinary technicians to the health and well-being of all animals. NOW, THEREFORE, I, Emily Francis, Mayor Pro Tem of the City of Fort Collins, do hereby proclaim October 13th through 19th, 2024, as NATIONAL VETERINARY TECHNICIAN WEEK IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort Collins this 15th day of October, 2024. ______________________________ Mayor Pro Tem ATTEST: ______________________________ City Clerk Page 13 Item PP 2. File Attachments for Item: PP 3. Declaring the Month of October as Domestic Violence Awareness Month. Page 14 PROCLAMATION WHEREAS, Colorado criminal code defines domestic violence as: “an act or threatened act of violence against a person with whom the defendant has an intimate relationship, such as a current or former spouse, partner, co-habitant, or co-parent when the act is used to coerce, control, punish, intimidate, or seek revenge against that person;” and WHEREAS, nationally one in four women and one in seven men have been victims of severe physical violence by an intimate partner in their lifetimes; 1 in 15 children are exposed to intimate partner violence each year, and 90% of these children are eyewitnesses to this violence; domestic violence is one of the leading cause of homelessness for women and children; and WHEREAS, in Colorado, 36.8% of women and 30.5% of men experience intimate partner physical violence, intimate partner sexual violence, and/or intimate partner stalking in their lifetimes; 15% of homicides in Colorado were committed by intimate partners; domestic violence statistics do not adequately represent our LGBTQ2+, People of Color, Black, and Indigenous communities who face challenges that limit their ability to seek help when faced with domestic violence; and WHEREAS, in Fort Collins and surrounds, Crossroads Safehouse (since 1980), Zonta Club of Fort Collins (since 1997), Zonta Club of Colorado North Forty (since 2018), and other local human and social services’ agencies, together with numerous volunteers, provide critical assistance and services to victims and their children including lifesaving crisis intervention, emergency shelter, safety planning, and advocacy and support; WHEREAS, the City of Fort Collins recognizes multiple efforts by our community partners to bring awareness to and serve our community to support victims of domestic violence. These annual efforts are: Domestic Violence Awareness Month in October, and Zonta Says NO to Violence - 16 Days of Activism Against Gender-Based Violence from November 25th to December 10th. NOW, THEREFORE, I, Emily Francis, Mayor Pro Tem of the City of Fort Collins, do hereby proclaim the month of October, 2024, as DOMESTIC VIOLENCE AWARENESS MONTH and urge citizens to join with Zonta Club of Fort Collins, Zonta Club of Colorado North Forty, and Crossroads Safehouse in support of efforts to end gender violence and to eliminate the detrimental consequences gender violence has on the well-being of our community. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort Collins this 15th day of October, 2024. ______________________________ Mayor Pro Tem ATTEST: ______________________________ City Clerk Page 15 Item PP 3. File Attachments for Item: PP 4. Declaring the Month of October as Arts and Humanities Month. Page 16 PROCLAMATION WHEREAS, the nation’s 113,000 nonprofit arts organizations dedicated to cultural life, the National Endowment for the Arts, the National Endowment for the Humanities, the nation’s 4,500 local arts agencies, and the Arts and Humanities Councils of the 50 states and the six U.S. jurisdictions have regularly issued official proclamations on an annual basis designating October as National Arts and Humanities Month; and WHEREAS, National Arts & Humanities Month in October encourages everyone to appreciate art and explore the diverse cultures around us. It is the largest celebration of arts and culture in the U.S., and we urge everyone to reflect on how art enriches our lives; and WHEREAS, the Colorado Creative Industries (CCI) believes in the power of creativity to inspire human connections, create social change, and support economic vibrancy throughout Colorado. We focus on strengthening the vitality of visual, performing, and literary art. T he arts and humanities play a unique role in the lives of our families, our communities, and our country; and WHEREAS, cities and states, through their local and state arts agencies and representing thousands of cultural organizations, have celebrated the value and importance of culture in the lives of Americans and the health of thriving communities during National Arts and Humanities Month for several years; and WHEREAS, the humanities help diverse communities across the United States explore their history and culture with the support and partnership of the National Endowment for the Humanities, the 55 state and territorial humanities councils, and local educational and cultural institutions; and WHEREAS, the arts and cultural industry also strengthens our economy by generating 4.3 percent of GDP, or $1.10 trillion, in 2022 and in 2022, the total arts and cultural employment recovered to pre-pandemic levels, with nearly 5.2 million workers employed to produce arts and cultural goods and services, for $540.9 billion in total compensation; and WHEREAS, Matt Robenalt, Downtown Development Authority Executive Director stated, “Storytelling through art is a powerful form of Interpersonal communication, particularly when communicating an authentic experience of a city. The Living Her Legacy’s Historic, public outdoor art/education project, which will be highly visible to local visitors of Old Town Square, imparts the spontaneity of publicly displayed art and place -making with the importance of reflecting on the stories of people that have made Fort Collins an intriguing place to visit, live, work and play.” NOW, THEREFORE, I, Emily Francis, Mayor Pro Tem of the City of Fort Collins, do hereby proclaim October 2024 as NATIONAL ARTS AND HUMANITIES MONTH and call upon our community members to celebrate and promote the arts and culture in our nation and to specifically encourage greater community participation in the Arts and Humanities. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort Collins this 15th day of October 2024. __________________________________ Mayor Pro Tem ATTEST: _________________________________ City Clerk Page 17 Item PP 4. File Attachments for Item: 1. Second Reading of Ordinance No. 139, 2024, Appropriating Prior Year Reserves and Authorizing Transfers of Appropriations for the Safe Routes to School Zach Elementary School Crossings Project and Related Art in Public Places. This Ordinance, unanimously adopted on First Reading on October 1, 2024, provides supplemental appropriations to the Safe Routes to School (SRTS) Zach Elementary School Crossings Project (Project). If approved, this item appropriates: 1. $176,760 from Transportation Capital Expansion Fee (TCEF) reserves to the Project; 2. $277,750 from Transportation Services Fund reserves to the Project; 3. $4,410 (0.8% of TCEF and Transportation Services Fund reserves contribution) from TCEF reserves ($1,750) and Transportation Services Fund reserves ($2,660) to the Art in Public Places (APP) program; 4. $90 (0.2% of TCEF and Transportation Services Funds contribution) for maintenance of art from the Transportation Services Fund reserves to the APP program. Page 18 City Council Agenda Item Summary – City of Fort Collins Page 1 of 3 October 15, 2024 AGENDA ITEM SUMMARY City Council STAFF Gunnar Hale, Project Manager Dana Hornkohl, Capital Projects Manager SUBJECT Second Reading of Ordinance No. 139, 2024, Appropriating Prior Year Reserves and Authorizing Transfers of Appropriations for the Safe Routes to School Zach Elementary School Crossings Project and Related Art in Public Places. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on October 1, 2024, provides supplemental appropriations to the Safe Routes to School (SRTS) Zach Elementary School Crossings Project (Project). If approved, this item appropriates: 1. $176,760 from Transportation Capital Expansion Fee (TCEF) reserves to the Project; 2. $277,750 from Transportation Services Fund reserves to the Project; 3. $4,410 (0.8% of TCEF and Transportation Services Fund reserves contribution) from TCEF reserves ($1,750) and Transportation Services Fund reserves ($2,660) to the Art in Public Places (APP) program; 4. $90 (0.2% of TCEF and Transportation Services Funds contribution) for maintenance of art from the Transportation Services Fund reserves to the APP program. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. BACKGROUND / DISCUSSION Zach Elementary School is located on the south side of Kechter Road, a high-traffic, high-volume arterial street in southeast Fort Collins. Zach students who live north of Kechter must cross the road to get to school. Many of the streets and roads in this area either lack sidewalks altogether or have substandard sidewalks, and there is a lack of multi-use trail connectivity in this southeastern area of the City. Zach Elementary has high numbers of students who bike, walk, or roll to school. Those students who live south of the school experience safer routes to school via low-traffic, low-volume residential streets with sidewalks. Other students who live north of the school must cross Kechter to get to school, making their journey much more challenging and riskier due to the existing suboptimal crossings at Kechter Road and Jupiter Drive and at Kechter Road and Cinquefoil Lane. Due to the Jupiter/Kechter intersection not being fully signalized, a traffic-control contractor is required to keep students safe when crossing Kechter (at both morning arrival time and afternoon dismissal time). Page 19 Item 1. City Council Agenda Item Summary – City of Fort Collins Page 2 of 3 There have been four rear-end crashes reported in this location between 2017 and 2022, one of which occurred during school dismissal time and one that involved a pedestrian who suffered serious injuries. The improvements proposed as part of the Project will create space and infrastructure intended to eliminate most of the conflicts that result in crashes in this location. The improvements at the Jupiter/Kechter intersection include a new fully signalized intersection with pedestrian walk signals and a new bike- pedestrian crossing. The improvements at the Cinquefoil/Kechter intersection include a median refuge island and flashing signal. In 2023 a Colorado Department of Transportation (CDOT) SRTS grant was awarded to the City for the design and construction of the Project (intergovernmental agreement with CDOT authorized via Resolution 2023-092). The SRTS and local match funding was appropriated by City Council on November 21, 2023 (Ordinance No. 144, 2023). The design of the improvements is nearing completion and staff is working to secure a temporary construction easement needed to install the improvements. Construction is planned to begin in early 2025. It is staff’s goal to schedule the bulk of the most disruptive construction during the spring break period. After the grant award during the design phase, additional concrete work was identified and included in the Project. It was also determined that there was temporary easement acquisition needed to complete the Project that was not originally included in the Project budget. With the additional work, easement acquisition, and construction cost escalation, it is determined that the Project would need additional funding to complete construction. A request for a supplemental appropriation was brought to the Council Finance Committee meeting at their August 1, 2024, meeting. The committee supported an off-cycle supplemental appropriation and was in favor of forwarding the appropriation request to City Council. The additional Project amount of $450,000 was used for the APP program contribution calculation for this action. CITY FINANCIAL IMPACTS The following is a summary of the funding anticipated for design, right-of-way acquisition, and construction for the Safe routes to School Zach Elementary School Crossings Project. Safe Routes to School (SRTS) Grant 745,587$ Transportation Services Fund Reserves 99,990$ Poudre School District (PSD) Contribution 25,000$ Community Capital Improvement Program (CCIP) Bicycle 30,699$ Community Capital Improvement Program (CCIP) Pedestrian Program 30,699$ Total Prior Appropriation 931,974$ Prior Appropriated Funds Transportation Capital Expansion Fee (TCEF) Reserves 176,760$ Transportation Services Fund Reserves 277,750$ Total Funds to be Appropriated per this Action 454,510$ Transfer to Art in Public Places 4,500$ Total Project Funds 1,381,984$ Funds to be Appropriated per this Action Page 20 Item 1. City Council Agenda Item Summary – City of Fort Collins Page 3 of 3 The total fund amount projected for this Project is $1,381,984 composed of funds appropriated with prior actions and with this action. BOARD / COMMISSION / COMMITTEE RECOMMENDATION The Project will receive full environmental and historical clearances through CDOT during the design, acquisition, and construction phases. The original appropriations for the Project were authorized by City Council on November 21, 2023, in Ordinance No. 144, 2023. The current proposed appropriation was brought before the Council Finance Committee at their August 1, 2024, meeting. The committee supported an off-cycle supplemental appropriation and was in favor of forwarding the appropriation request to City Council. Approved minutes of the meeting are attached. The Bicycle Advisory Committee (BAC), Bike Fort Collins (BFC), North Front Range Metropolitan Planning Organization (NFRMPO), Poudre School District (PSD), and Zach Elementary School have reviewed and are in support of the Project. PUBLIC OUTREACH Project information was shown at the Transportation Projects Fairs in February 2024. Staff will develop and implement a comprehensive Public Engagement Plan for the Project as construction is scheduled. Additionally, per requirements of the CDOT grant agreement, the City’s SRTS program will provide educational activities for Zach Elementary School students, staff, and parents. The activities will relate to the proper use of the new infrastructure provided by the Project. ATTACHMENTS First Reading attachments not included. 1. Ordinance for Consideration Page 21 Item 1. - 1 - ORDINANCE NO. 139, 2024 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES AND AUTHORIZING TRANSFERS OF APPROPRIATIONS FOR THE SAFE ROUTES TO SCHOOL ZACH ELEMENTARY SCHOOL CROSSINGS PROJECT AND RELATED ART IN PUBLIC PLACES A. Zach Elementary School is located on the south side of Kechter Road, a high-traffic, high-volume arterial street in southeast Fort Collins. B. Many of the streets and roads in this area either lack sidewalks altogether or have substandard sidewalks, and there is a lack of multi-use trail connectivity in this southeastern area of Fort Collins. C. Zach Elementary School has high numbers of students who bike, walk, or roll to school. Zach Elementary students who live south of the school experience safer routes to school via low-traffic, low-volume residential streets with sidewalks, and Zach Elementary students who live north of the arterial must cross Kechter Road to get to school, making their journey much more challenging and riskier due to the existing suboptimal crossings at Kechter Road and Jupiter Drive and at Kechter Road and Cinquefoil Lane. D. Due to the Jupiter/Kechter intersection not being fully signalized, a traffic - control contractor is required to keep students safe when crossing Kechter at both morning arrival time and afternoon dismissal time. E. There have been four rear-end crashes reported in this location between 2017 and 2022, one of which occurred during school dismissal time and one that involved a pedestrian who suffered serious injuries. F. The Safe Routes to School Zach Elementary School Crossings Project (the “Project”) was developed to address these safety concerns and create space and infrastructure intended to eliminate most of the conflicts that result in crashes presented by both the Jupiter/Kechter and Cinquefoil/Kechter intersections. G. The Project’s proposed improvements at the Jupiter/Kechter intersection include a new fully signalized intersection with pedestrian “walk” signals and a new bike pedestrian crossing. H. The Project’s proposed improvements at the Cinquefoil/Kechter intersection include a median refuge island and flashing signal. I. In 2023, a Colorado Department of Transportation (CDOT) Safe Routes to School (SRTS) grant was awarded to the City for the design and construction of t he Project (intergovernmental agreement with CDOT authorized via Resolution 2023 -092). Page 22 Item 1. - 2 - The SRTS and local match funding was appropriated by City Council in November 2023 (Ordinance No. 144, 2023). J. The design of the improvements is nearing completion and staff is working to secure a temporary construction easement needed to install the improvements. Construction is planned to begin in early 2025. Staff aims to schedule the bulk of the most disruptive construction during the spring break period. K. After the grant award during the design phase, additional concrete work was identified and included in the Project. It was also determined that there was temporary easement acquisition needed to complete the Project that was not originally included in the Project budget. With the additional work, easement acquisition, and construction cost escalation, it is determined that the Project would need additional funding to complete construction. L. A request for a supplemental appropriation was brought to the Council Finance Committee meeting at their August 1, 2024, meeting. The committee supported an off-cycle supplemental appropriation and was in favor of forwarding the appropriation request to City Council. M. The Bicycle Advisory Committee, Bike Fort Collins, North Front Range Metropolitan Planning Organization, Poudre School District, and Zach Elementary School have reviewed and are in support of the Project. N. Article V, Section 9 of the City Charter permits the City Council, upon the recommendation of the City Manager, to make supplemental appropriations by ordinance at any time during the fiscal year from such revenues and funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated. O. The City Manager has recommended the appropriations described herein and determined that these appropriations are available and previously unappropriated from the Transportation Capital Expansion Fee Fund, the Transportation Services Fund, as applicable, and will not cause the total amount appropriated in the Transportation Capital Expansion Fee Fund, the Transportation Services Fund, as applicable, to exceed the current estimate of actual and anticipated revenues and all other funds to be received in these funds during this fiscal year. P. Article V, Section 10 of the City Charter authorizes the City Council, upon recommendation by the City Manager, to transfer by ordinance any unexpended and unencumbered appropriated amount or portion thereof from one fund or capital project to another fund or capital project, provided that the purpose for which the transferred funds are to be expended remains unchanged, the purpose for which the funds were initially appropriated no longer exists, or the proposed transfer is from a fund or capital project in which the amount appropriated exceeds the amount needed to accomplish the purpose specified in the appropriation ordinance. Page 23 Item 1. - 3 - Q. The City Manager has recommended the transfer of $176,760 from the Transportation Capital Expansion Fee Fund to the Capital Projects Fund and $277,750 from the Transportation Services Fund to the Capital Projects Fund and determined that the purpose for which the transferred funds are to be expended remains unchanged . R. Article V, Section 11 of the City Charter authorizes the City Council to designate in the ordinance when appropriating funds for a capital project, that such appropriation shall not lapse at the end of the fiscal year in which the appropriation is made, but continue until the completion of the capital project. S. The City Council wishes to designate the appropriation herein for Safe Routes to School Zach Elementary School Crossings Project as an appropriation that shall not lapse until the completion of the Project. T. The City Council wishes to designate the appropriation herein for Safe Routes to School Zach Elementary School Crossings Project. U. This Project involves construction estimated to cost more than $250,000 and, as such, City Code Section 23-304 requires one percent of these appropriations to be transferred to the Cultural Services and Facilities Fund for a contribution to the Art in Public Places (“APP”) program. V. The additional Project cost of $450,000 has been used to calculate the contribution to the APP program. W. The amount to be contributed in this Ordinance will be $4,500. X. These appropriations benefit public health, safety and welfare of the people of Fort Collins and serve the public purpose of improving transportation infrastructure within the City and accommodating multimodal transportation and safety. In light of the foregoing Recitals, which the Council hereby makes and adopt s as determinations and findings, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. There is hereby appropriated from prior year reserves in the Transportation Capital Expansion Fee Fund the sum of ONE HUNDRED SEVENTY-SIX THOUSAND SEVEN HUNDRED SIXTY DOLLARS ($176,760) in the Transportation Capital Expansion Fee Fund for Transfer to the Capital Projects Fund and appropriated therein to be expended for the Safe Routes to School Zach Elementary School Crossings Project. Section 2. There is hereby appropriated from prior year reserves in the Transportation Services Fund the sum of TWO HUNDRED SEVENTY-SEVEN THOUSAND SEVEN HUNDRED FIFTY DOLLARS ($277,750) in the Transportation Page 24 Item 1. - 4 - Services Fund for Transfer to the Capital Projects Fund and appropriated therein to be expended for the Safe Routes to School Zach Elementary School Crossings Project. Section 3. The unexpended and unencumbered appropriated amount of THREE THOUSAND FIVE HUNDRED TEN DOLLARS: ($3,510) in the Capital Projects Fund is hereby authorized for transfer to the Cultural Services and Facilities Fund and appropriated and expended therein to fund art projects under the APP program. Section 4. The unexpended and unencumbered appropriated amount of Nine HUNDRED DOLLARS: ($900) in the Capital Projects Fund is hereby authorized for transfer to the Cultural Services and Facilities Fund and appropriated and expended therein for the operation costs of the APP program. Section 5. The unexpended and unencumbered appropriated amount of NINETY DOLLARS ($90) in the Capital Projects Fund is hereby authorized for transfer to the Cultural Services and Facilities Fund and appropriated and expended therein for the maintenance costs of the APP program. Section 6. The appropriation herein for Safe Routes to School Zach Elementary School Crossings Project is hereby designated, as authorized in Article V, Section 11 of the City Charter, as an appropriation that shall not lapse at the end of this fiscal year but continue until the completion of the Project. Introduced, considered favorably on first reading on October 1, 2024, and approved on second reading for final passage on October 15, 2024. ______________________________ Mayor ATTEST: ______________________________ City Clerk Effective Date: October 25, 2024 Approving Attorney: Heather N. Jarvis Page 25 Item 1. File Attachments for Item: 2. Second Reading of Ordinance No. 140, 2024, Making Supplemental Appropriations from the State of Colorado for the Universal Pre-School Program at the Northside Aztlan Community Center. This Ordinance, unanimously adopted on First Reading on October 1, 2024, appropriates unanticipated revenue of $30,469 from the State of Colorado in 2024 to help fund the Universal Pre-school (UPK) program at the Northside Aztlan Community Center through the Recreation Fund. Page 26 City Council Agenda Item Summary – City of Fort Collins Page 1 of 2 October 15, 2024 AGENDA ITEM SUMMARY City Council STAFF LeAnn Williams, Director, Recreation Victoria Shaw, Sr FP&A Manager, Community Services SUBJECT Second Reading of Ordinance No. 140, 2024, Making Supplemental Appropriations from the State of Colorado for the Universal Pre-School Program at the Northside Aztlan Community Center. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on October 1, 2024, appropriates unanticipated revenue of $30,469 from the State of Colorado in 2024 to help fund the Universal Pre-school (UPK) program at the Northside Aztlan Community Center through the Recreation Fund. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. BACKGROUND / DISCUSSION The State of Colorado passed a Universal Pre-School (UPK) program in 2022 under House Bill 22-1295 to offer voluntary, high quality universal preschool to every Colorado child in the year before kindergarten. Families who register are eligible for up to 15 hours per week of free preschool under UPK, with the providers receiving payment directly from the State. The City of Fort Collins’ Recreation department has begun participating in UPK as a care provider for the 2024/2025 school year for childcare services provided at Northside Atzlan Community Center. This activity was not originally budgeted for in 2024 since the program parameters were not set when the budget was adopted. Accordingly, the City has begun to receive unanticipated revenue from the State of Colorado for providing Universal Pre-school services to the Community. In August 2024, the City received $6,094 in support of 10 students and now anticipates receiving an additional $24,375 through the end of the year, for total 2024 estimated revenue of $30,469. This appropriation will allow the Recreation Department to utilize the available 2024 State of Colorado funding of $30,469 to provide UPK at the Northside Aztlan Community Center. Expanded levels of funding and staffing for the UPK program are recommended in the 2025 – 2026 City Manager’s Recommended Budget under Offer 46.5: 3.0 FTE Universal Preschool. If adopted, that offer would expand the capacity and offerings beyond the scope of this appropriation in the next 2025/2026 school year. Funding this appropriation does not commit any UPK offerings beyond the 2024/2025 school year. Page 27 Item 2. City Council Agenda Item Summary – City of Fort Collins Page 2 of 2 CITY FINANCIAL IMPACTS If adopted, this Ordinance will appropriate the unanticipated 2024 revenue projected from the State of Colorado of $30,469 in 2024 to fund the Universal Pre-school (UPK) program at the Northside Aztlan Community Center in the Recreation Fund. BOARD / COMMISSION / COMMITTEE RECOMMENDATION None. PUBLIC OUTREACH None. ATTACHMENTS First Reading attachments not included. 1. Ordinance for Consideration Page 28 Item 2. -1- ORDINANCE NO. 140, 2024 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING SUPPLEMENTAL APPROPRIATIONS FROM THE STATE OF COLORADO FOR THE UNIVERSAL PRE-SCHOOL PROGRAM AT THE NORTHSIDE AZTLAN COMMUNITY CENTER A. In 2022, the State of Colorado adopted a Universal Pre-School (UPK) program to offer voluntary, high quality universal preschool programs to every Colorado child in the year before kindergarten. B. The City’s Recreation Department began participating in the UPK program as a care provider at the Northside Atzlan Community Center for the 2024/2025 school year. C. The City has received unanticipated revenue from the State of Colorado to assist in funding this UPK program. D. In August 2024, the City received $6,094 in support of 10 students and now anticipates receiving an additional $24,375 through the end of the year. This will be a total of $30,469 of unanticipated revenue in 2024. E. This appropriation benefits the public health and welfare of the citizens of Fort Collins and serves the public purpose of creating childcare services through a UPK program at the Northside Aztlan Community Center. F. Article V, Section 9 of the City Charter permits the City Council, upon recommendation of the City Manager, to make a supplemental appropriation by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriation, in combination with all previous appropriations for that fiscal year, do not exceed the current estimate of actual and anticipated revenues and all other f unds to be received during the fiscal year. G. The City Manager has recommended the appropriation described herein and determined that this appropriation is available and previously unappropriated from the Recreation Fund and will not cause the total amount appropriated in the Recreation Fund to exceed the current estimate of actual and anticipated revenues and all other funds to be received in this Fund during this fiscal year. In light of the foregoing recitals, which the Council hereby makes and adopts as determinations and findings, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated from new revenue or other funds in the Recreation Fund the sum of THIRTY THOUSAND FOUR HUNDRED SIXTY-NINE DOLLARS ($30,469) to be expended in the Recreation Fund for the Universal Pre-School Program at the Northside Aztlan Community Center. Page 29 Item 2. -2- Introduced, considered favorably on first reading on October 1, 2024, and approved on second reading for final passage on October 15, 2024. ___________________________________ Mayor ATTEST: ___________________________________ City Clerk Effective Date: October 25, 2024 Approving Attorney: Sara Arfmann Page 30 Item 2. File Attachments for Item: 3. Second Reading of Ordinance No. 141, 2024, Appropriating Revenue from a Funding Advancements for Surface Transportation and Economic Recovery Grant and the Colorado Department of Transportation Americans with Disabilities Act Grant and Appropriating Prior Year Reserves and Authorizing Transfers for the US 287 and Triangle Drive Signal Installation Project and Related Art in Public Places. This Ordinance, unanimously adopted on First Reading on October 1, 2024, appropriates the following funds to the US 287 and Triangle Drive Signal Installation Project (Project): 1. $682,211 in Funding Advancements for Surface Transportation and Economic Recovery (FASTER) funds to the Project; 2, $183,843 in CDOT Americans with Disabilities Act (ADA) funds; 3. $688,897 from Transportation Capital Expansion Fee (TCEF) reserves to the Project; 4. $6,686 (0.8% of TCEF contribution) from TCEF reserves to the Art in Public Places (APP) program; 5. 0.2% of TCEF contribution for maintenance of art from the Transportation Services Fund reserves to the APP program. The funds will be used to design and install a new traffic signal as well as bicycle and pedestrian improvements connecting Triangle Drive to the northeast towards the Lakeview on the Rise development. There is severe crash history at this intersection and in 2023 CDOT committed FASTER funding to the City for signal improvements. CDOT has also committed funding for pedestrian improvements to bring the intersection into compliance with ADA requirements. Page 31 City Council Agenda Item Summary – City of Fort Collins Page 1 of 3 October 15, 2024 AGENDA ITEM SUMMARY City Council STAFF Marc Virata, TCEF Program Manager Dana Hornkohl, Capital Projects Manager SUBJECT Second Reading of Ordinance No. 141, 2024, Appropriating Revenue from a Funding Advancements for Surface Transportation and Economic Recovery Grant and the Colorado Department of Transportation Americans with Disabilities Act Grant and Appropriating Prior Year Reserves and Authorizing Transfers for the US 287 and Triangle Drive Signal Installation Project and Related Art in Public Places. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on October 1, 2024, appropriates the following funds to the US 287 and Triangle Drive Signal Installation Project (Project): 1. $682,211 in Funding Advancements for Surface Transportation and Economic Recovery (FASTER) funds to the Project; 2, $183,843 in CDOT Americans with Disabilities Act (ADA) funds; 3. $688,897 from Transportation Capital Expansion Fee (TCEF) reserves to the Project; 4. $6,686 (0.8% of TCEF contribution) from TCEF reserves to the Art in Public Places (APP) program; 5. 0.2% of TCEF contribution for maintenance of art from the Transportation Services Fund reserves to the APP program. The funds will be used to design and install a new traffic signal as well as bicycle and pedestrian improvements connecting Triangle Drive to the northeast towards the Lakeview on the Rise development. There is severe crash history at this intersection and in 2023 CDOT committed FASTER funding to the City for signal improvements. CDOT has also committed funding for pedestrian improvements to bring the intersection into compliance with ADA requirements. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. BACKGROUND / DISCUSSION The intersection of College Avenue and Triangle Drive is currently side street stop-controlled with high speeds and volumes on College Avenue (also known as US 287 or State Highway 287). The Shenandoah and Ridgewood Hills neighborhoods on the west side of College Avenue access this intersection from Triangle Drive. Lakeview on the Rise is a neighborhood on the east side of College Avenue northeast of Page 32 Item 3. City Council Agenda Item Summary – City of Fort Collins Page 2 of 3 the intersection. Directly east of the intersection is the Pelican Marsh Natural Area owned by the City’s Natural Areas Department (“Natural Areas”). The intersection will remain a “T” intersection as there is no intention of Natural Areas extending Triangle Drive east of College Avenue. City staff determined that a traffic signal is warranted due to severe crash history at this intersection. The Project will install a new traffic signal as well as bicycle and pedestrian improvements connecting to the northeast towards the Lakeview on the Rise neighborhood. The bicycle and pedestrian improvements implement the sidepath recommendation along College Avenue as identified in the adopted Active Modes Plan, providing multimodal connectivity from Lakeview on the Rise to the Shenandoah and Ridgewood Hills neighborhoods. The improvements at the intersection will meet ADA requirements. The implementation of the bicycle and pedestrian improvements will necessitate acquisition of right-of-way and easements from Natural Areas, requiring a future action before City Council. Coordination with FC Moves, Natural Areas, and Real Estate Services Department staff has been underway to ensure implementation of the Active Modes infrastructure minimizes impacts to the Pelican Marsh Natural Area. City staff initially submitted to CDOT for Highway Safety Improvement Program (HSIP) funding in 2023 but was not initially selected for funding. City staff continued discussions with CDOT providing additional information requesting CDOT FASTER funding. Through this request, CDOT awarded $682,211 in FASTER funds. CDOT also awarded $183,843 of CDOT ADA grant funds for ADA improvements for the Project. The Project amount of $682,211 was used for the APP program calculation. A portion of the funds appropriated in this Ordinance for the Project are ineligible for use in the APP program due to restrict ions placed on them by Colorado Department of Transportation, the source of these funds. CITY FINANCIAL IMPACTS The following is a summary of the funding anticipated for design, right-of-way acquisition, and construction for the US 287 and Triangle Drive Signal Installation Project. The total fund amount projected for this Project is $1,548,265 composed of funds appropriated with this action. BOARD / COMMISSION / COMMITTEE RECOMMENDATION The Project was presented to Council Finance Committee on August 1, 2024. The committee supported an off-cycle supplemental appropriation and was in favor of forwarding the appropriation request to City Council. Approved minutes of the meeting are attached. Page 33 Item 3. City Council Agenda Item Summary – City of Fort Collins Page 3 of 3 PUBLIC OUTREACH Staff will develop and implement a Public Engagement Plan for the Project in conjunction with the Communications and Public Involvement Office. ATTACHMENTS First Reading attachments not included. 1. Ordinance for Consideration Page 34 Item 3. - 1 - ORDINANCE NO. 141, 2024 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING REVENUE FROM A FUNDING ADVANCEMENTS FOR SURFACE TRANSPORTATION AND ECONOMIC RECOVERY GRANT AND THE COLORADO DEPARTMENT OF TRANSPORTATION AMERICANS WITH DISABILITIES ACT GRANT AND APPROPRIATING PRIOR YEAR RESERVES AND AUTHORIZING TRANSFERS FOR THE US 287 AND TRIANGLE DRIVE SIGNAL INSTALLATION PROJECT AND RELATED ART IN PUBLIC PLACES A. The intersection of College Avenue and Triangle Drive is a “T” intersection that is currently side street stop-controlled with high traffic speeds and volumes on College Avenue (also known as “US 287”). B. The Shenandoah and Ridgewood Hills neighborhoods on the west side of College Avenue access this intersection from Triangle Drive. Lakeview on the Rise is a neighborhood on the east side of College Avenue northeast of the intersection. Directly east of the intersection is the Pelican Marsh Natural Area owned by the City’s Natural Areas Department (“Natural Areas”). The intersection will remain a “T” intersection as there is no intention of Natural Areas extending Triangle Drive east of College Avenue. C. City staff determined that a traffic signal is warranted due to severe crash history at this intersection and has developed the US 287 and Triangle Drive Signal Installation Project (the “Project”) to improve vehicular, bicycle, and pedestrian safety in and around the intersection. D. The Project will install a new traffic signal as well as bicycle and pedestrian improvements connecting to the northeast towards the Lakeview on the Rise neighborhood. The bicycle and pedestrian improvements implement the sidepath recommendation along College Avenue as identified in the adopted Active Modes Plan, providing multimodal connectivity from Lakeview on the Rise to the Shenandoah and Ridgewood Hills neighborhoods. The improvements at the intersection will meet Americans with Disabilities Act (ADA) requirements. E. The implementation of the bicycle and pedestrian improvements will necessitate acquisition of right-of-way and easements from Natural Areas, requiring a future action before City Council. Coordination with FC Moves, Natural Areas, and Real Estate Services Department staff has been underway to ensure implementation of the Active Modes infrastructure minimizes impacts to the Pelican Marsh Natural Area. F. City staff initially submitted to the Colorado Department of Transportation (CDOT) for Highway Safety Improvement Program (HSIP) funding in 2023 but was not initially selected for funding. City staff continued discussions with CDOT providing additional information requesting CDOT Funding Advancements for Surface Transportation and Economic Recovery (FASTER) funding. Through this request, CDOT Page 35 Item 3. - 2 - awarded $682,211 in FASTER funds. CDOT also awarded $183,843 of CDOT ADA grant funds for ADA improvements for the Project. G. The Project was presented to Council Finance Committee on August 1, 2024. The committee supported an off -cycle supplemental appropriation and was in favor of forwarding the appropriation request to City Council. H. Article V, Section 9 of the City Charter permits the City Council, upon recommendation of the City Manager, to make a supplemental appropriation by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriation, in combination with all previous appropriations for that fiscal year, do es not exceed the current estimate of actual and anticipated revenues and all other funds to be received during the fiscal year. I. The City Manager has recommended the appropriation described herein and determined that this appropriation is available and previously unappropriated from the Capital Projects Fund and will not cause the total amount appropriated in the Capital Projects Fund to exceed the current estimate of actual and anticipated revenues and all other funds to be received in this Fund during this fiscal year. J. Article V, Section 9 of the City Charter permits the City Council, upon the recommendation of the City Manager, to make supplemental appropriations by ordinance at any time during the fiscal year from such revenues and funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated. K. The City Manager has recommended the appropriations described herein and determined that these appropriations are available and previously unappropriated from the Transportation Capital Expansion Fee Fund and the Transportation Services Fund, as applicable, and will not cause the total amount appropriated in the Transportation Capital Expansion Fee Fund and the Transportation Services Fund, as applicable, to exceed the current estimate of actual and anticipated revenues and all other funds to be received in these funds during this fiscal year. L. Article V, Section 10 of the City Charter authorizes the City Council, upon recommendation by the City Manager, to transfer by ordinance any unexpended and unencumbered appropriated amount or portion thereof from one fund or cap ital project to another fund or capital project, provided that the purpose for which the transferred funds are to be expended remains unchanged, the purpose for which the funds were initially appropriated no longer exists, or the proposed transfer is from a fund or capital project in which the amount appropriated exceeds the amount needed to accomplish the purpose specified in the appropriation ordinance. M. The City Manager has recommended the transfer of $688,897 from the Transportation Capital Expansion Fee Fund to the Capital Projects Fund and $136 from Page 36 Item 3. - 3 - the Transportation Services Fund to the Capital Projects Fund and determined that the purpose for which the transferred funds are to be expended remains unchanged. N. Article V, Section 11 of the City Charter authorizes the City Council to designate in the ordinance when appropriating funds for a capital project that such appropriation shall not lapse at the end of the fiscal year in which the appropriation is made but continue until the completion of the capital project. O. This Project involves construction estimated to cost more than $250,000 and, as such, City Code Section 23-304 requires one percent of these appropriations to be transferred to the Cultural Services and Facilities Fund for a contribution t o the Art in Public Places (“APP”) program. P. The total Project cost of $682,200 has been used to calculate the contribution to the APP program. Q. The amount to be contributed in this Ordinance will be $6,822. R. A portion of the funds appropriated in this Or dinance for the Project are ineligible for use in the APP program due to restrictions placed on them by Colorado Department of Transportation, the source of these funds. S. These appropriations benefit public health, safety and welfare of the people of Fort Collins and serve the public purpose of improving transportation infrastructure within the City and accommodating multimodal transportation and safety. In light of the foregoing Recitals, which the Council hereby makes and adopts as determinations and findings, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. There is hereby appropriated from new revenue or other funds in the Capital Projects Fund the sum of SIX HUNDRED EIGHTY-TWO THOUSAND TWO HUNDRED ELEVEN DOLLARS ($682,211) to be expended in the Capital Projects Fund for the US 287 and Triangle Drive Signal Installation Project. Section 2. There is hereby appropriated from new revenue or other funds in the Capital Projects Fund the sum of ONE HUNDRED EIGHTY-THREE THOUSAND EIGHT HUNDRED FORTY-THREE DOLLARS: ($183,843) to be expended in the Capital Projects Fund for the US 287 and Triangle Drive Signal Installation Project. Section 3. There is hereby appropriated from prior year reserves in the Transportation Capital Expansion Fee Fund the sum of SIX HUNDRED EIGHTY-EIGHT THOUSAND EIGHT HUNDRED NINETY-SEVEN DOLLARS: ($688,897) to be expended in the Transportation Capital Expansion Fee Fund for Transfer to the Capital Projects Fund and appropriated therein to be expended for the US 287 and Triangle Drive Signal Installation Project. Page 37 Item 3. - 4 - Section 4. There is hereby appropriated from prior year reserves in the Transportation Services Fund the sum of ONE HUNDRED THIRTY-SIX DOLLARS ($136) in the Transportation Services Fund for Transfer to the Capital Projects Fund and appropriated therein to be expended for the US 287 and Triangle Drive Signal Installation Project. Section 5. The unexpended and unencumbered appropriated amount of FIVE THOUSAND THREE HUNDRED TWENTY-ONE DOLLARS: ($5,321) in the Capital Projects Fund is hereby authorized for transfer to the Cultural Services and Facilities Fund and appropriated and expended therein to fund art projects under the APP program. Section 6. The unexpended and unencumbered appropriated amount of ONE THOUSAND THREE HUNDRED SIXTY-FOUR DOLLARS: ($1,364) in the Capital Projects Fund is hereby authorized for transfer to the Cultural Services and Facilities Fund and appropriated and expended therein f or the operation costs of the APP program. Section 7. The unexpended and unencumbered appropriated amount of ONE HUNDRED THIRTY-SEVEN DOLLARS ($137) in the Capital Projects Fund is hereby authorized for transfer to the Cultural Services and Facilities Fund and appropriated and expended therein for the maintenance costs of the APP program. Section 8. The appropriations herein for the US 287 and Triangle Drive Signal Installation Project are hereby designated, as authorized in Article V, Section 11 of the City Charter, as appropriations that shall not lapse at the end of this fiscal year but continue until the completion of the Project. Introduced, considered favorably on f irst reading on October 1, 2024, and approved on second reading for final passage on October 15, 2024. ______________________________ Mayor ATTEST: ______________________________ City Clerk Effective Date: October 25, 2024 Approving Attorney: Heather N. Jarvis Page 38 Item 3. File Attachments for Item: 4. First Reading of Ordinance No. 142, 2024, Appropriating Philanthropic Revenue Received by City Give in 2024 and Prior Year Reserves for Various Programs and Services as Designated by the Donors. The purpose of this item is to request an appropriation of $53,890 in philanthropic revenue received by City Give. These miscellaneous gifts to various City departments support a variety of programs and services and are aligned with both the City’s strategic priorities and the respective donors’ designation. In 2019, City Give, a formalized enterprise-wide initiative was launched to create a transparent, non-partisan governance structure for the acceptance and appropriations of charitable gifts. Page 39 City Council Agenda Item Summary – City of Fort Collins Page 1 of 2 October 15, 2024 AGENDA ITEM SUMMARY City Council STAFF Nina Bodenhamer, City Give Director SUBJECT First Reading of Ordinance No. 142, 2024, Appropriating Philanthropic Revenue Received by City Give in 2024 and Prior Year Reserves for Various Programs and Services as Designated by the Donors. EXECUTIVE SUMMARY The purpose of this item is to request an appropriation of $53,890 in philanthropic revenue received by City Give. These miscellaneous gifts to various City departments support a variety of programs and services and are aligned with both the City’s strategic priorities and the respective donors’ designation. In 2019, City Give, a formalized enterprise-wide initiative was launched to create a transparent, non- partisan governance structure for the acceptance and appropriations of charitable gifts. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The City has long been the beneficiary of local generosity and has a valuable role in our community’s philanthropic landscape. Generosity is demonstrated in both large and modest gifts, each appreciated for its investment in the mission and the range of services the City strives to deliver. The City received several individual philanthropic donations totaling $53,890 to support various departments, and these funds are currently unappropriated. As acknowledged by Section 2.5 of the City's Fiscal Management Policy 2-revenue approved by City Council, the City Manager has adopted the Philanthropic Governance Policy to provide for the responsible and efficient management of charitable donations to the City. This item requests appropriation of $53,890 in philanthropic revenue received by City Give as follows: Adaptive Recreation received a $25,000 award from Move United. Move United, in partnership with The Hartford, strives to get more people off the sidelines and increase participation in adaptive sports by making adaptive sports and equipment more accessible to youth and adults with disabilities. Gifts totaling $15,000 were awarded to the Parks designated as tribute giving; charitable gifts totaling $7,165 in support of the Payment Assistance Fund; gifts totaling $4,300 for Recreation, including a gift of Page 40 Item 4. City Council Agenda Item Summary – City of Fort Collins Page 2 of 2 $3,300 from First United Methodist Church in support of City Park Pool Rainbow Swim; and, individual gifts totaling $2,425 were awarded to Visual Arts at the Lincoln Center, Conflict Transformation, NextGen, Volunteer Services, and Veterans Plaza of NoCo. The respective donors have directed the City to use these generous donations for designated purposes within and for the benefit of City service areas and programs. CITY FINANCIAL IMPACTS This Ordinance will appropriate $47,775.00 in new philanthropic revenue received in 2024 and $6,115.00 of charitable gifts from prior year reserves received by City Give for various City departments to support a variety of programs and services. The donations shall be expended from the designated fund solely for the donors’ directed intent. The funds have been received and accepted per City Give Administrative and Financial Policy. The City Manager has also determined that these appropriations, are available and previously unappropriated from their designated City Fund and will not cause the total amount appropriated in those Funds to exceed the current estimate of actual and anticipated revenues. BOARD / COMMISSION / COMMITTEE RECOMMENDATION None. PUBLIC OUTREACH None. ATTACHMENTS 1. Ordinance for Consideration Page 41 Item 4. -1- ORDINANCE NO. 142, 2024 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PHILANTHROPIC REVENUE RECEIVED BY CITY GIVE IN 2024 AND PRIOR YEAR RESERVES FOR VARIOUS PROGRAMS AND SERVICES AS DESIGNATED BY THE DONORS A. The City of Fort Collins has long been the beneficiary of local philanthropy. Generosity is demonstrated in both large and modest gifts, each appreciated for its investment in the mission and the range of services the City strives to deliver. B. The City has received $53,890 in philanthropic gifts that require appropriation by City Council. These gifts are: $25,000 for Adaptive Recreation from Move United; $15,000 for Parks from tribute gifts; $7,165 to support the Payment Assistance Fund; $4,300 for Recreation, including a gift of $3,300 fro m First United Methodist Church in support of City Park Pool Rainbow Swim; and, individual gifts totaling $2,425 for Visual Arts at the Lincoln Center, Conflict Transformation, NextGen, Volunteer Services, and Veterans Plaza of NoCo. C. This appropriation benefits the public health, safety and welfare of the residents of Fort Collins and serves the public purpose of supporting a variety of City programs and services as described herein. D. Article V, Section 9 of the City Charter permits the City Council, upon recommendation of the City Manager, to make a supplemental appropriation by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriation, in combination with all previous appropriations for that fiscal ye ar, do not exceed the current estimate of actual and anticipated revenues and all other funds to be received during the fiscal year. E. The City Manager has recommended the appropriations described in Section 1 of this Ordinance and determined that the amount of each of these appropriations is available and previously unappropriated from the funds named in Section 1 and will not cause the total amount appropriated in each such fund to exceed the current estimate of actual and anticipated revenues to be received in those funds during this fiscal year. F. Article V, Section 9 of the City Charter permits the City Council, upon the recommendation of the City Manager, to make supplemental appropriations by ordinance at any time during the fiscal year from such revenues and funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated. G. The City Manager has recommended the appropriations described in Sections 2 of this Ordinance and determined that the amount of each of these appropriations is available and previously unappropriated from the funds named in Sections 2 and will not cause the total amount appropriated in each such fund to exceed Page 42 Item 4. -2- the current estimate of actual and anticipated revenues to be received in those funds during this fiscal year. H. Article V, Section 11 of the City Charter authorizes the City Council to designate in the ordinance when appropriating funds, a federal, state or private grant or donation, that such appropriation shall not lapse at the end of the fiscal year in which the appropriation is made, but continue until the earlier of the expiration of the donation o r the City’s expenditure of all funds received from such donation . In light of the foregoing recitals, which the Council hereby makes and adopts as determinations and findings, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. There is hereby appropriated from the following funds these amounts of philanthropic revenue received in 2024 to be expended as designated by the donors in support of the various City programs and services as described herein. General Fund $ 15,875 Cultural Services & Facilities Fund $ 1,500 Recreation Fund $ 28,300 Light & Power Fund $ 2,100 Section 2. There is hereby appropriated from the following funds these amounts of philanthropic revenue held in prior year reserves to be expended as designate by the donors in support of the various City programs and services as described herein. Section 3. The appropriation herein for the Light and Power donation is hereby designated, as authorized in Article V, Section 11 of the City Charter, as an appropriation that shall not lapse at the end of this fiscal year but until the earlier of the expiration of the donation or the City’s expenditure of all funds received from such or donation. Neighborhood Parkland Fund $ 50 Recreation Fund $ 1,000 Light & Power Fund $ 5,065 Page 43 Item 4. -3- Introduced, considered favorably on first reading on October 15, 2024, and approved on second reading for final passage on November 4, 2024. ___________________________________ Mayor ATTEST: ___________________________________ City Clerk Effective Date: November 14, 2024 Approving Attorney: Ted Hewitt Page 44 Item 4. File Attachments for Item: 5. First Reading of Ordinance No. 143, 2024, Making Supplemental Appropriations and Authorizing Transfers of Appropriations for Various Transit Services Grants and Revenue. The purpose of this item is to appropriate grant revenue and the corresponding local match for Transfort. Page 45 City Council Agenda Item Summary – City of Fort Collins Page 1 of 3 October 15, 2024 AGENDA ITEM SUMMARY City Council STAFF Monica Martinez, FP&A Manager SUBJECT First Reading of Ordinance No. 143, 2024, Making Supplemental Appropriations and Authorizing Transfers of Appropriations for Various Transit Services Grants and Revenue. EXECUTIVE SUMMARY The purpose of this item is to appropriate grant revenue and the corresponding local match for Transfort. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading BACKGROUND / DISCUSSION Yearly Transfort Reconciliation Process The City’s Budgeting for Outcomes (“BFO”) cycle requires that revenue be projected up to three years in advance of actual receipt of revenue. For Transfort, this means that yearly Federal Transit Administration (“FTA”) grants such as the main Federal Formula Funds for urbanized areas/5307 operational grant and the Federal Formula Funds for enhanced mobility of senior and individuals with disabilities/5310 grant, are projected using estimates based on prior year amounts, anticipated trends, or anticipated changes to the federal funding bill. Confirmed award amounts for each grant then typically become available in the spring of the award year. Due to this timing, Transfort will require a yearly reconciliation process that appropriates confirmed award amounts for grants used to reimburse that City fi scal year’s (“FY”) expenses. This supplemental appropriation will update award amounts for 5307 and 5310 grant amounts. Notably, the amount to be appropriated for the FTA’s FY23 5307 represents the entirety of the grant. This grant had previously been anticipated for use during the 2025/2026 BFO cycle but will now be used for the 2024 City fiscal year. This places Transfort on a healthy reimbursement track, wherein one 5307 operational grant is used per year and the associated FTA grant year will lag one year behind the City fiscal year in which the City requests reimbursement. Additionally, the proposed supplemental appropriation will appropriate the award amount for CDOT FY24 FASTER (Funding Advancements for Surface Transportation and Economic Recovery Act of 2009) operational grant funds and move all grant and local match funds into a corresponding grant business unit. Page 46 Item 5. City Council Agenda Item Summary – City of Fort Collins Page 2 of 3 Transfort Budget Update Transfort’s 2024 operational budget is currently appropriated to $22,300,000. This includes the $1,200,000 in 2050 Tax that was approved during the 2024 Mini-BFO process. At this time, it is anticipated that to end the year at current service levels Transfort will need an additional appropriation of $1,300,000. This additional appropriation will be funded by approximately $900,000 in grant revenue that is available due to award amounts increasing significantly since initial budget estimates. This is part of the FY23 5307 grant appropriation discussed above. The remaining $400,000 will be funded by unanticipated grant revenue from prior year reimbursements. The main drivers in expense increases are listed below: 1) $250,000: 2023 hourly bus operator conversions and the addition of a transit supervisor position. These increases were made once staff identified the availability of grant funding in both 2023 and 2024 due to low budget projections; 2) $350,000: increases to vehicle repair services costs including and $85,000 for repair on a bus damaged three years ago; 3) $200,000: snow removal costs; 4) $400,000: bus-stop-to-bus-stop gap coverage, due to ongoing discontinued service on routes 11 and 12; and 5) $100,000: contingency It is anticipated the 2050 tax portion of Transfort’s budget will see savings of approximately $600,000. This is because the appropriated budgets represented a full year of expenses, while the necessary updates to salaries were not effective until July 2024. As the mini-BFO offers outlined specific costs intended for the 2050 tax, staff intends for unused funds to drop back into 2050 reserves instead of allowing them to fund other Transfort operational expenses. CITY FINANCIAL IMPACTS Funds to Appropriated FY23 5307 – Grant $4,402,305 FY20 5310 - Grant $37,153 FY22 5310 - Grant $73,000 FY24 FASTER – Grant (new funds) $300,000 FY23 5307 – Local Match (previously appropriated, transfer into non-lapsing budget) $3,613,897 FY20 5310 – Local Match Unanticipated Revenue $44,316 FY22 5310 – Local Match Unanticipated Revenue $34,524 FY24 FASTER – Local Match Unanticipated Revenue $300,000 290 Unanticipated Revenue $400,000 BOARD / COMMISSION / COMMITTEE RECOMMENDATION This was supported at the October 3, 2024, Council Finance Committee Meeting Page 47 Item 5. City Council Agenda Item Summary – City of Fort Collins Page 3 of 3 PUBLIC OUTREACH None. ATTACHMENTS 1. Ordinance for Consideration Page 48 Item 5. - 1 - ORDINANCE NO. 143, 2024 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING SUPPLEMENTAL APPROPRIATIONS AND AUTHORIZING TRANSFERS OF APPROPRIATIONS FOR VARIOUS TRANSIT SERVICES GRANTS AND REVENUE A. The City’s budget process requires that revenue be projected up to three years in advance of actual receipt of revenue. B. For Transfort, this means annual Federal Transit Administration (FTA) grant amounts must be projected using estimates based on historical federal apportionments, anticipated trends, or anticipated changes to the federal funding bill. C. Confirmed award amounts for each grant typically do not become available until the spring of the award year. D. Due to this timing, Transfort requires a yearly reconciliation process that appropriates confirmed award amounts for grants used to reimburse that City fiscal year’s expenses. E. This supplemental appropriation will update award amounts for the annual FTA Federal Formula Funds for urbanized areas (5307 funds) and Federal Formula Funds for enhanced mobility of seniors and individuals with disabilities (5310 funds), which will be used to support various Transfort operations. F. This Ordinance requests appropriation of the entire $4,402,305 of grant revenue from the FTA’s FY23 5307 funds to be used for the 2024 City fiscal year (“FY”), which will place Transfort on a healthy reimbursement track wherein one 5307 operational grant is used per year and that FTA grant year is lagged one year behind the City f iscal year requesting reimbursement. G. The 5307 funds require a local match of $3,613,897, which was previously appropriated into the Transfort Operations Lapsing Budget and this Ordinance requests transfer into the Transfort Operations Non-lapsing Budget. H. This Ordinance requests appropriation of $37,153 of grant revenue from the FTA’s FY20 5310 funds with a local match of $44,316, and $73,000 of grant revenue from the FTA’s FY22 5310 funds with a local match of $34,524, to be used for the 2024 City fiscal year. I. All the U.S. Department of Transportation Formula Grant Funding funds above are pursuant to the annual Certifications and Assurances for F1’A Assistance Programs executed by the City Manager and then individual grant agreements following a process established in Resolution 2011-111, adopted on December 20, 2011, for FTA grants. Page 49 Item 5. - 2 - J. This Ordinance requests appropriation of $300,000 of unanticipated grant revenue from Colorado Department of Transportation FASTER (Funding Advancements for Surface Transportation and Economic Recovery Act of 2009) Capital Funds, with a local match of $300,000, to support Transfort FLEX service. K. Transfort’s 2024 operational budget is currently appropriated to $22,300,000. L. To end the year at current service levels, Transfort is anticipated to need an additional appropriation of $1,300,000, due to 2023 hourly bus operator conversions and the addition of a transit supervisor position, increases to vehicle repair services costs, increased snow removal costs due, the loss of Transfort’s advertising contract, discontinued service on routes 11 and 12, and contingency costs. M. A portion of these additional anticipated budget needs will be funded by approximately $900,000 in grant revenue from the FY23 5307 grant appropriation. N. To fund the remaining portion of Transfort’s additional anticipated budget needs, this Ordinance requests appropriation of $400,000 in unanticipated grant revenue from prior year reimbursements. O. This appropriation benefits the public health, safety, and welfare of the residents of Fort Collins and serves the public purpose of supporting the essential transportation services that many transit dependent members of the community rely on to get to and from work, buy groceries and other essentials, to receive medical care, and to care for family or friends. P. Article V, Section 9 of the City Charter permits the City Council, upon recommendation of the City Manager, to make a supplemental appropriation by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriation, in combination with all previous appropriations for that fiscal year, do not exceed the current estimate of actual and anticipated revenues and all other funds to be received during the fiscal year. Q. The City Manager has recommended the appropriation described herein and determined that this appropriation is available and previously unappropriated from the Transit Services Fund and will not cause the total amount appropriated in the Transit Services Fund to exceed the current estimate of actual and anticipated revenues and all other funds to be received in this Fund during this fiscal year. R. Article V, Section 10 of the City Charter authorizes the City Council, upon recommendation by the City Manager, to transfer by ordinance any unexpended and unencumbered appropriated amount or portion thereof from one fund or capital project to another fund or capital project, provided that the purpose for which the transferred fun ds are to be expended remains unchanged, the purpose for which the funds were initially Page 50 Item 5. - 3 - appropriated no longer exists, or the proposed transfer is from a fund or capital project in which the amount appropriated exceeds the amount needed to accomplish the p urpose specified in the appropriation ordinance. S. The City Manager has recommended the transfer of $3,613,897 from the Transfort Operations Lapsing Budget in the Transit Fund to the Transfort Non -Lapsing Operations in the Transit Services Fund and determin ed that the purpose for which the transferred funds are to be expended remains unchanged. T. Article V, Section 11 of the City Charter authorizes the City Council to designate in the ordinance when appropriating funds for a federal, state or private grant or donation, that such appropriation shall not lapse at the end of the fiscal year in which the appropriation is made, but continue until the earlier of the expiration of the federal, state or private grant or donation or the City’s expenditure of all funds received from such grant or donation. U. The City Council wishes to designate the appropriation herein for Various Grants listed in Agenda Item Summary as an appropriation that shall not lapse the earlier of the expiration of the grant or the City’s expendit ure of all funds received from such grant. In light of the foregoing recitals, which the Council hereby makes and adopts as determinations and findings, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. There is hereby appropriated from new revenue or other funds in the Transit Services Fund the sum of FIVE MILLION FIVE HUNDRED NINETY-ONE THOUSAND TWO HUNDRED NINETY-EIGHT DOLLARS ($5,591,298) to be expended in the Transit Services Fund for Various Transfort Operations. Section 2. The unexpended and unencumbered appropriated amount of THREE MILLION SIX HUNDRED THIRTEEN THOUSAND EIGHT HUNDRED NINETY- SEVEN DOLLARS ($3,613,897) is authorized for transfer from the Transfort Operations Lapsing Budget in the Transit Services Fund to the Transfort Operations Non-Lapsing Budget in the Transit Services Fund and appropriated therein to be expended for Various Transfort Operations. Section 3. The appropriation herein for Transfort Various Operations is hereby designated, as authorized in Article V, Section 11 of the City Charter, as an appropriation that shall not lapse at the end of this fiscal year but continue until the City’s expenditure of all funds received from such grant and appropriation. Page 51 Item 5. - 4 - Introduced, considered favorably on first reading on October 15, 2024 and approved on second reading for final passage on November 4, 2024. ______________________________ Mayor ATTEST: ______________________________ City Clerk Effective Date: November 14, 2024 Approving Attorney: Madelene Shehan Page 52 Item 5. File Attachments for Item: 6. First Reading of Ordinance No. 144, 2024, Making a Supplemental Appropriation of Grant Funds from the Edward Byrne Memorial Justice Assistance Grant Program for Fort Collins Police Services. The purpose of this item is to support Fort Collins Police Services in work performed as a member of the Northern Colorado Drug Task Force. The Northern Colorado Drug Task Force is managed by Larimer County Sheriff Department, with both Fort Collins Police Services and Loveland Police being members. These member agencies support a broad range of activities to prevent and control drug-related crimes. Larimer County applied for and was awarded $50,647 through the Edward Byrne Memorial Justice Assistance Grant (JAG) program in support of operating the Northern Colorado Drug Task Force (Attachment 3). The City of Fort Collins, City of Loveland and Larimer County entered an intergovernmental agreement (Attachment 2), demonstrating the allocation of the $50,647 awarded under JAG in support of the Northern Colorado Drug Task Force. Fort Collins Police Services received $15,807 to support personnel costs and other operating costs directly attributed to the Northern Colorado Drug Task Force. Page 53 City Council Agenda Item Summary – City of Fort Collins Page 1 of 2 October 15, 2024 AGENDA ITEM SUMMARY City Council STAFF Adam Ruehlen, Lieutenant, Police Services Kerri Ishmael, Senior Analyst, Grants Administration SUBJECT First Reading of Ordinance No. 144, 2024, Making a Supplemental Appropriation of Grant Funds from the Edward Byrne Memorial Justice Assistance Grant Program for Fort Collins Police Services. EXECUTIVE SUMMARY The purpose of this item is to support Fort Collins Police Services in work performed as a member of the Northern Colorado Drug Task Force. The Northern Colorado Drug Task Force is managed by Larimer County Sheriff Department, with both Fort Collins Police Services and Loveland Police being members. These member agencies support a broad range of activities to prevent and control drug-related crimes. Larimer County applied for and was awarded $50,647 through the Edward Byrne Memorial Justice Assistance Grant (JAG) program in support of operating the Northern Colorado Drug Task Force (Attachment 3). The City of Fort Collins, City of Loveland and Larimer County entered an intergovernmental agreement (Attachment 2), demonstrating the allocation of the $50,647 awarded under JAG in support of the Northern Colorado Drug Task Force. Fort Collins Police Services received $15,807 to support personnel costs and other operating costs directly attributed to the Northern Colorado Drug Task Force. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The Northern Colorado Drug Task Force comprised of members from Larimer County Sheriff Office, Fort Collins Police Services and Loveland Police Department supports safer Northern Colorado communities through work to prevent and control drug-related crimes. Sworn officers with each member agency serve on the drug task force, which requires overtime pay and other operating costs. The $15,807 in JAG grant funds supports Fort Collins Police Services covering some of the operational costs incurred as a member of the Northern Colorado Drug Task Force. CITY FINANCIAL IMPACTS This item appropriates $15,807 in unanticipated revenue from the JAG program in support of worked Page 54 Item 6. City Council Agenda Item Summary – City of Fort Collins Page 2 of 2 performed by Police Services as a member of the Northern Colorado Drug Task Force. There is no match requirement by the City under this grant. Larimer County, the direct recipient of these federal funds, is passing the $15,807 to Police Services. Therefore, the City is deemed a subrecipient of federal funds under the JAG program. This grant is a reimbursement type grant, meaning General Fund expenses will be r eimbursed up to $15,807. BOARD / COMMISSION / COMMITTEE RECOMMENDATION None. PUBLIC OUTREACH None. ATTACHMENTS 1. Ordinance for Consideration 2. Intergovernmental Agreement among Larimer County, City of Fort Collins and City of Loveland 3. JAG Grant Agreement with Larimer County Page 55 Item 6. -1- ORDINANCE NO. 144, 2024 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING A SUPPLEMENTAL APPROPRIATION OF GRANT FUNDS FROM THE EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM FOR FORT COLLINS POLICE SERVICES A. The Northern Colorado Drug Task Force (the “Drug Task Force”) is managed by the Larimer County Sheriff Department, with both Fort Collins Police Services and Loveland Police being members. These member agencies support a broad range of activities to prevent and control drug-related crimes. B. Larimer County applied for and was awarded $50,647 through the Edward Byrne Memorial Justice Assistance Grant (“JAG”) program in support of operating the Drug Task Force. C. The City of Fort Collins, City of Loveland, and Larimer County have entered into an intergovernmental agreement demonstrating the allocation of the $50,647 awarded under JAG in support of the Drug Task Force. Fort Collins Police Services received $15,807 to support personnel costs and other operating costs directly attributed to the Drug Task Force. D. The $15,807 in JAG grant funds supports Fort Collins Police Services covering some of the operational costs incurred as a member of the Drug Task Force. E. This appropriation benefits the public health, safety, and welfare of the residents of Fort Collins and serves the public purpose of keeping Northern Colorado communities safer through work to prevent and control drug-related crimes. F. Article V, Section 9 of the City Charter permits the City Council, upon recommendation of the City Manager, to make a supplemental appropriation by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriation, in combination with all previous appropriations for that fiscal year, do not exceed the current estimate of actual and anticipated revenues and all other funds to be received during the fiscal year. G. The City Manager has recommended the appropriation described herein and determined that this appropriation is available and previously unappropriated from the General Fund and will not cause the total amount appropriated in the General Fund to exceed the current estimate of actual and anticipated revenues and all other funds to be received in this Fund during this fiscal year. H. Article V, Section 11 of the City Charter authorizes the City Council to designate in the ordinance when appropriating funds for a federal, state or private grant or donation, that such appropriation shall not lapse at the end of the fiscal year in which Page 56 Item 6. -2- the appropriation is made, but continue until the earlier of the expiration of the federal, state or private grant or the City’s expenditure of all funds received from such grant. I. The City Council wishes to designate the appropriation herein for the Edward Byrne Memorial Justice Assistance Grant (JAG) Program as an appropriation that shall not lapse until the earlier of the expiration of the grant or the City’s expenditure of all funds received from such grant. In light of the foregoing recitals, which the Council hereby makes and adopts as determinations and findings, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. There is hereby appropriated from new revenue or other funds in the General Fund the sum of FIFTEEN THOUSAND EIGHT HUNDRED SEVEN DOLLARS ($15,807) to be expended in the General Fund for the Fort Collins Police Services Property Crimes Unit. Section 2. The appropriation herein for the Edward Byrne Memorial Justice Assistance Grant (JAG) Program is hereby designated, as authorized in Article V, Section 11 of the City Charter, as an appropriation that shall not lapse at the end of this fiscal year but continue until the earlier of the expiration of the grant or the City’s expenditure of all funds received from such grant. Introduced, considered favorably on first reading on October 15, 2024, and approved on second reading for final passage on November 4, 2024. ___________________________________ Mayor ATTEST: ___________________________________ City Clerk Effective Date: November 14, 2024 Approving Attorney: Dawn Downs Page 57 Item 6. 17th November, 2023 Page 58 Item 6. Deputy 3/25/24 Page 59 Item 6. Department of Justice (DOJ) Office of Justice Programs Bureau of Justice Assistance Washington, D.C. 20531 Name and Address of Recipient: LARIMER, COUNTY OF 2501 MIDPOINT DR City, State and Zip:FORT COLLINS, CO 80525 Recipient UEI:TJTHWRMWY5S1 Project Title: NCDTF to take a three prong approach to educate, police, and aid in drug treatment to help reduce the drug problem in America. Award Number: 15PBJA-21-GG-01109-JAGX Solicitation Title: BJA FY 21 Edward Byrne Memorial Justice Assistance Grant (JAG) Program - Local Solicitation Federal Award Amount: $50,647.00 Federal Award Date: 10/8/21 Awarding Agency: Office of Justice Programs Bureau of Justice Assistance Funding Instrument Type:Grant Opportunity Category: O Assistance Listing: 16.738 - Project Period Start Date: 10/1/20 Project Period End Date: 9/30/24 Budget Period Start Date: 10/1/20 Budget Period End Date : 9/30/24 Project Description: The Edward Byrne Memorial Justice Assistance Grant (JAG) Program allows states and units of local government, including tribes, to support a broad range of activities to prevent and control crime based on their own state and local needs and conditions. Grant funds can be used for state and local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support, and information systems for criminal justice, including for any one or more of the following program areas: 1) law enforcement programs; 2) prosecution and court programs; 3) prevention and education programs; 4) corrections and community corrections programs; 5) drug treatment and enforcement programs; 6) planning, evaluation, and technology improvement programs; and 7) crime victim and witness programs (other than compensation) and 8) mental health programs and related law enforcement and corrections programs, including behavioral programs and crisis intervention teams. This JAG award will be used to support criminal justice initiatives that fall under one or more of the allowable program areas above. Funded programs or initiatives may include multijurisdictional drug and gang task forces, crime prevention and domestic violence programs, courts, corrections, treatment, justice information sharing initiatives, or other programs aimed at reducing crime and/or enhancing public/officer safety. Page: 1 of 22 Page 60 Item 6. Award Letter October 8, 2021 Dear Brei Kennedy, On behalf of Attorney General Merrick B. Garland, it is my pleasure to inform you the Office of Justice Programs (OJP) has approved the application submitted by LARIMER, COUNTY OF for an award under the funding opportunity entitled 2021 BJA FY 21 Edward Byrne Memorial Justice Assistance Grant (JAG) Program - Local Solicitation. The approved award amount is $50,647. Review the Award Instrument below carefully and familiarize yourself with all conditions and requirements before accepting your award. The Award Instrument includes the Award Offer (Award Information, Project Information, Financial Information, and Award Conditions) and Award Acceptance. Please note that award requirements include not only the conditions and limitations set forth in the Award Offer, but also compliance with assurances and certifications that relate to conduct during the period of performance for the award. These requirements encompass financial, administrative, and programmatic matters, as well as other important matters (e.g., specific restrictions on use of funds). Therefore, all key staff should receive the award conditions, the assurances and certifications, and the application as approved by OJP , so that they understand the award requirements. Information on all pertinent award requirements also must be provided to any subrecipient of the award. Should you accept the award and then fail to comply with an award requirement, DOJ will pursue appropriate remedies for non-compliance, which may include termination of the award and/or a requirement to repay award funds. Prior to accepting the award, your Entity Administrator must assign a Financial Manager, Grant Award Administrator, and Authorized Representative(s) in the Justice Grants System (JustGrants). The Entity Administrator will need to ensure the assigned Authorized Representative(s) is current and has the legal authority to accept awards and bind the entity to the award terms and conditions. To accept the award, the Authorized Representative(s) must accept all parts of the Award Offer in the Justice Grants System (JustGrants), including by executing the required declaration and certification, within 45 days from the award date. To access your funds, you will need to enroll in the Automated Standard Application for Payments (ASAP) system, if you haven’t already completed the enrollment process in ASAP. The Entity Administrator should have already received an email from ASAP to initiate this process. Congratulations, and we look forward to working with you. Maureen Henneberg Deputy Assistant Attorney General Office for Civil Rights Notice for All Recipients The Office for Civil Rights (OCR), Office of Justice Programs (OJP), U.S. Department of Justice (DOJ) has been delegated the responsibility for ensuring that recipients of federal financial assistance from the OJP, the Office of Community Oriented Policing Services (COPS), and the Office on Violence Against Women (OVW) are not engaged in discrimination prohibited by law. Several federal civil rights laws, such as Title VI of the Civil Rights Act of 1964 and Section 504 of the Rehabilitation Act of 1973, require recipients of federal financial assistance to give assurances that they will comply with those laws. Taken together, these civil rights laws prohibit recipients of federal financial assistance from DOJ from discriminating in services and employment because of race, color, national origin, religion, disability, sex, and, for grants authorized under the Violence Against Women Act, sexual orientation and gender identity. Recipients are also prohibited from discriminating in services because of age. For a complete review of these civil rights laws and nondiscrimination requirements, in connection with DOJ awards, see https://ojp.gov/funding/ Explore/LegalOverview/CivilRightsRequirements.htm. Under the delegation of authority, the OCR investigates allegations of discrimination against recipients from individuals, entities, or groups. In addition, the OCR conducts limited compliance reviews and audits based on regulatory criteria. These reviews and audits permit the OCR to evaluate whether recipients of financial assistance from the Department Page: 2 of 22 Page 61 Item 6. are providing services in a nondiscriminatory manner to their service population or have employment practices that meet equal-opportunity standards. If you are a recipient of grant awards under the Omnibus Crime Control and Safe Streets Act or the Juvenile Justice and Delinquency Prevention Act and your agency is part of a criminal justice system, there are two additional obligations that may apply in connection with the awards: (1) complying with the regulation relating to Equal Employment Opportunity Programs (EEOPs); and (2) submitting findings of discrimination to OCR. For additional information regarding the EEOP requirement, see 28 CFR Part 42, subpart E, and for additional information regarding requirements when there is an adverse finding, see 28 C.F.R. §§ 42.204(c), .205(c)(5). The OCR is available to help you and your organization meet the civil rights requirements that are associated with DOJ grant funding. If you would like the OCR to assist you in fulfilling your organization's civil rights or nondiscrimination responsibilities as a recipient of federal financial assistance, please do not hesitate to contact the OCR at askOCR@ojp.usdoj.gov. Memorandum Regarding NEPA NEPA Letter Type OJP - Ongoing NEPA Compliance Incorporated into Further Developmental Stages NEPA Letter The Edward Byrne Memorial Justice Assistance Grant Program (JAG) allows states and local governments to support a broad range of activities to prevent and control crime and to improve the criminal justice system, some of which could have environmental impacts. All recipients of JAG funding must assist BJA in complying with NEPA and other related federal environmental impact analyses requirements in the use of grant funds, whether the funds are used directly by the grantee or by a subgrantee or third party. Accordingly, prior to obligating funds for any of the specified activities, the grantee must first determine if any of the specified activities will be funded by the grant. The specified activities requiring environmental analysis are: a. New construction; b. Any renovation or remodeling of a property located in an environmentally or historically sensitive area, including properties located within a 100-year flood plain, a wetland, or habitat for endangered species, or a property listed on or eligible for listing on the National Register of Historic Places; c. A renovation, lease, or any proposed use of a building or facility that will either (a) result in a change in its basic prior use or (b) significantly change its size; d. Implementation of a new program involving the use of chemicals other than chemicals that are (a) purchased as an incidental component of a funded activity and (b) traditionally used, for example, in office, household, recreational, or education environments; and e. Implementation of a program relating to clandestine methamphetamine laboratory operations, including the identification, seizure, or closure of clandestine methamphetamine laboratories. Complying with NEPA may require the preparation of an Environmental Assessment and/or an Environmental Impact Statement, as directed by BJA. Further, for programs relating to methamphetamine laboratory operations, the preparation of a detailed Mitigation Plan will be required. For more information about Mitigation Plan requirements, please see https://www.bja.gov/Funding/nepa.html . Please be sure to carefully review the grant conditions on your award document, as it may contain more specific information about environmental compliance. NEPA Coordinator First Name Orbin Middle Name Last Name Terry Award Information Page: 3 of 22 Page 62 Item 6. This award is offered subject to the conditions or limitations set forth in the Award Information, Project Information, Financial Information, and Award Conditions. Recipient Information Recipient Name LARIMER, COUNTY OF UEI TJTHWRMWY5S1 Street 1 2501 MIDPOINT DR Street 2 City FORT COLLINS State/U.S. Territory Colorado Zip/Postal Code 80525 Country United States County/Parish Province Award Details Federal Award Date 10/8/21 Award Type Initial Award Number 15PBJA-21-GG-01109-JAGX Supplement Number 00 Federal Award Amount $50,647.00 Funding Instrument Type Grant Assistance Listing Number Assistance Listings Program Title 16.738 Statutory Authority Title I of Pub. L. No. 90-351 (generally codified at 34 U.S.C. 10151-10726), including subpart 1 of part E (codified at 34 U.S.C. 10151-10158); see also 28 U.S.C. 530C(a). [X] I have read and understand the information presented in this section of the Federal Award Instrument . Project Information This award is offered subject to the conditions or limitations set forth in the Award Information, Project Information, Financial Information, and Award Conditions. Solicitation Title Awarding Agency Page: 4 of 22 Page 63 Item 6. 2021 BJA FY 21 Edward Byrne Memorial Justice Assistance Grant (JAG) Program - Local Solicitation Application Number GRANT13428245 OJP Program Office BJA Grant Manager Name Kathy Mason Phone Number 202-598-7538 E-mail Address Kathy.Mason@usdoj.gov Project Title NCDTF to take a three prong approach to educate, police, and aid in drug treatment to help reduce the drug problem in America. Performance Period Start Date 10/01/2020 Performance Period End Date 09/30/2024 Budget Period Start Date 10/01/2020 Budget Period End Date 09/30/2024 Project Description The Edward Byrne Memorial Justice Assistance Grant (JAG) Program allows states and units of local government, including tribes, to support a broad range of activities to prevent and control crime based on their own state and local needs and conditions. Grant funds can be used for state and local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support, and information systems for criminal justice, including for any one or more of the following program areas: 1) law enforcement programs; 2) prosecution and court programs; 3) prevention and education programs; 4) corrections and community corrections programs; 5) drug treatment and enforcement programs; 6) planning, evaluation, and technology improvement programs; and 7) crime victim and witness programs (other than compensation) and 8) mental health programs and related law enforcement and corrections programs, including behavioral programs and crisis intervention teams. This JAG award will be used to support criminal justice initiatives that fall under one or more of the allowable program areas above. Funded programs or initiatives may include multijurisdictional drug and gang task forces, crime prevention and domestic violence programs, courts, corrections, treatment, justice information sharing initiatives, or other programs aimed at reducing crime and/or enhancing public/officer safety. [X] I have read and understand the information presented in this section of the Federal Award Instrument . Financial Information This award is offered subject to the conditions or limitations set forth in the Award Information, Project Information, Financial Information, and Award Conditions. [X] Page: 5 of 22 Page 64 Item 6. I have read and understand the information presented in this section of the Federal Award Instrument . Award Conditions This award is offered subject to the conditions or limitations set forth in the Award Information, Project Information, Financial Information, and Award Conditions. 1 Applicability of Part 200 Uniform Requirements The Uniform Administrative Requirements, Cost Principles, and Audit Requirements in 2 C.F.R. Part 200, as adopted and supplemented by DOJ in 2 C.F.R. Part 2800 (together, the "Part 200 Uniform Requirements") apply to this FY 2021 award from OJP. The Part 200 Uniform Requirements were first adopted by DOJ on December 26, 2014. If this FY 2021 award supplements funds previously awarded by OJP under the same award number (e.g., funds awarded during or before December 2014), the Part 200 Uniform Requirements apply with respect to all funds under that award number (regardless of the award date, and regardless of whether derived from the initial award or a supplemental award) that are obligated on or after the acceptance date of this FY 2021 award. For more information and resources on the Part 200 Uniform Requirements as they relate to OJP awards and subawards ("subgrants"), see the OJP website at https://ojp.gov/funding/Part200UniformRequirements.htm. Record retention and access: Records pertinent to the award that the recipient (and any subrecipient ("subgrantee") at any tier) must retain -- typically for a period of 3 years from the date of submission of the final expenditure report (SF 425), unless a different retention period applies -- and to which the recipient (and any subrecipient ("subgrantee") at any tier) must provide access, include performance measurement information, in addition to the financial records, supporting documents, statistical records, and other pertinent records indicated at 2 C.F.R. 200.333. In the event that an award-related question arises from documents or other materials prepared or distributed by OJP that may appear to conflict with, or differ in some way from, the provisions of the Part 200 Uniform Requirements, the recipient is to contact OJP promptly for clarification. 2 Requirement to report actual or imminent breach of personally identifiable information (PII) The recipient (and any "subrecipient" at any tier) must have written procedures in place to respond in the event of an actual or imminent "breach" (OMB M-17-12) if it (or a subrecipient) -- (1) creates, collects, uses, processes, stores, maintains, disseminates, discloses, or disposes of "Personally Identifiable Information (PII)" (2 CFR 200.1) within the scope of an OJP grant-funded program or activity, or (2) uses or operates a "Federal information system" (OMB Circular A-130). The recipient's breach procedures must include a requirement to report actual or imminent breach of PII to an OJP Program Manager no later than 24 hours after an occurrence of an actual breach, or the detection of an imminent breach. 3 Required training for Grant Award Administrator and Financial Manager The Grant Award Administrator and all Financial Managers for this award must have successfully completed an "OJP financial management and grant administration training" by 120 days after the date of the recipient's acceptance of the award. Successful completion of such a training on or after January 1, 2019, will satisfy this condition. In the event that either the Grant Award Administrator or a Financial Manager for this award changes during the period of performance, the new Grant Award Administrator or Financial Manager must have successfully completed an "OJP financial management and grant administration training" by 120 calendar days after the date the Entity Administrator enters updated Grant Award Administrator or Financial Manager information in JustGrants. Successful completion of Page: 6 of 22 Page 65 Item 6. such a training on or after January 1, 2019, will satisfy this condition. A list of OJP trainings that OJP will consider "OJP financial management and grant administration training" for purposes of this condition is available at https://www.ojp.gov/training/fmts.htm. All trainings that satisfy this condition include a session on grant fraud prevention and detection. The recipient should anticipate that OJP will immediately withhold ("freeze") award funds if the recipient fails to comply with this condition. The recipient's failure to comply also may lead OJP to impose additional appropriate conditions on this award. 4 Safe policing and law enforcement subrecipients If this award is a discretionary award, the recipient agrees that it will not make any subawards to State, local, college, or university law enforcement agencies unless such agencies have been certified by an approved independent credentialing body or have started the certification process. To become certified, law enforcement agencies must meet two mandatory conditions: (1) the agency’s use of force policies adhere to all applicable federal, state, and local laws; and (2) the agency’s use of force policies prohibit chokeholds except in situations where use of deadly force is allowed by law. For detailed information on this certification requirement, see https://cops.usdoj.gov/SafePolicingEO. 5 Effect of failure to address audit issues The recipient understands and agrees that the DOJ awarding agency (OJP or OVW, as appropriate) may withhold award funds, or may impose other related requirements, if (as determined by the DOJ awarding agency) the recipient does not satisfactorily and promptly address outstanding issues from audits required by the Part 200 Uniform Requirements (or by the terms of this award), or other outstanding issues that arise in connection with audits, investigations, or reviews of DOJ awards. 6 Requirements of the award; remedies for non-compliance or for materially false statements The conditions of this award are material requirements of the award. Compliance with any assurances or certifications submitted by or on behalf of the recipient that relate to conduct during the period of performance also is a material requirement of this award. Limited Exceptions. In certain special circumstances, the U.S. Department of Justice ("DOJ") may determine that it will not enforce, or enforce only in part, one or more requirements otherwise applicable to the award. Any such exceptions regarding enforcement, including any such exceptions made during the period of performance, are (or will be during the period of performance) set out through the Office of Justice Programs ("OJP") webpage entitled "Legal Notices: Special circumstances as to particular award conditions" (ojp.gov/funding/Explore/LegalNotices-AwardReqts.htm), and incorporated by reference into the award. By signing and accepting this award on behalf of the recipient, the authorized recipient official accepts all material requirements of the award, and specifically adopts, as if personally executed by the authorized recipient official, all assurances or certifications submitted by or on behalf of the recipient that relate to conduct during the period of performance. Failure to comply with one or more award requirements -- whether a condition set out in full below, a condition incorporated by reference below, or an assurance or certification related to conduct during the award period -- may result in OJP taking appropriate action with respect to the recipient and the award. Among other things, the OJP may withhold award funds, disallow costs, or suspend or terminate the award. DOJ, including OJP, also may take other legal action as appropriate. Any materially false, fictitious, or fraudulent statement to the federal government related to this award (or concealment or omission of a material fact) may be the subject of criminal prosecution (including under 18 U.S.C. 1001 and/or 1621, and/or 34 U.S.C. 10271-10273), and also may lead to imposition of civil penalties and administrative remedies for false Page: 7 of 22 Page 66 Item 6. claims or otherwise (including under 31 U.S.C. 3729-3730 and 3801-3812). Should any provision of a requirement of this award be held to be invalid or unenforceable by its terms, that provision shall first be applied with a limited construction so as to give it the maximum effect permitted by law. Should it be held, instead, that the provision is utterly invalid or -unenforceable, such provision shall be deemed severable from this award. 7 Compliance with DOJ regulations pertaining to civil rights and nondiscrimination - 28 C.F.R. Part 38 The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable requirements of 28 C.F.R. Part 38 (as may be applicable from time to time), specifically including any applicable requirements regarding written notice to program beneficiaries and prospective program beneficiaries. Currently, among other things, 28 C.F.R. Part 38 includes rules that prohibit specific forms of discrimination on the basis of religion, a religious belief, a refusal to hold a religious belief, or refusal to attend or participate in a religious practice. Part 38, currently, also sets out rules and requirements that pertain to recipient and subrecipient ("subgrantee") organizations that engage in or conduct explicitly religious activities, as well as rules and requirements that pertain to recipients and subrecipients that are faith-based or religious organizations. The text of 28 C.F.R. Part 38 is available via the Electronic Code of Federal Regulations (currently accessible at https:/ /www.ecfr.gov/cgi-bin/ECFR?page=browse), by browsing to Title 28-Judicial Administration, Chapter 1, Part 38, under e-CFR "current" data. 8 Compliance with DOJ regulations pertaining to civil rights and nondiscrimination - 28 C.F.R. Part 42 The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable requirements of 28 C.F.R. Part 42, specifically including any applicable requirements in Subpart E of 28 C.F.R. Part 42 that relate to an equal employment opportunity program. 9 Compliance with DOJ regulations pertaining to civil rights and nondiscrimination - 28 C.F.R. Part 54 The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable requirements of 28 C.F.R. Part 54, which relates to nondiscrimination on the basis of sex in certain "education programs." 10 Compliance with 41 U.S.C. 4712 (including prohibitions on reprisal; notice to employees) The recipient (and any subrecipient at any tier) must comply with, and is subject to, all applicable provisions of 41 U.S.C. 4712, including all applicable provisions that prohibit, under specified circumstances, discrimination against an employee as reprisal for the employee's disclosure of information related to gross mismanagement of a federal grant, a gross waste of federal funds, an abuse of authority relating to a federal grant, a substantial and specific danger to public health or safety, or a violation of law, rule, or regulation related to a federal grant. The recipient also must inform its employees, in writing (and in the predominant native language of the workforce), of employee rights and remedies under 41 U.S.C. 4712. Should a question arise as to the applicability of the provisions of 41 U.S.C. 4712 to this award, the recipient is to contact the DOJ awarding agency (OJP or OVW, as appropriate) for guidance. 11 Compliance with applicable rules regarding approval, planning, and reporting of conferences, meetings, trainings, and other events Page: 8 of 22 Page 67 Item 6. The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable laws, regulations, policies, and official DOJ guidance (including specific cost limits, prior approval and reporting requirements, where applicable) governing the use of federal funds for expenses related to conferences (as that term is defined by DOJ), including the provision of food and/or beverages at such conferences, and costs of attendance at such conferences. Information on the pertinent DOJ definition of conferences and the rules applicable to this award appears in the DOJ Grants Financial Guide (currently, as section 3.10 of "Postaward Requirements" in the "DOJ Grants Financial Guide"). 12 Requirement for data on performance and effectiveness under the award The recipient must collect and maintain data that measure the performance and effectiveness of work under this award. The data must be provided to OJP in the manner (including within the timeframes) specified by OJP in the program solicitation or other applicable written guidance. Data collection supports compliance with the Government Performance and Results Act (GPRA) and the GPRA Modernization Act of 2010, and other applicable laws. 13 Requirements related to "de minimis" indirect cost rate A recipient that is eligible under the Part 200 Uniform Requirements and other applicable law to use the "de minimis" indirect cost rate described in 2 C.F.R. 200.414(f), and that elects to use the "de minimis" indirect cost rate, must advise OJP in writing of both its eligibility and its election, and must comply with all associated requirements in the Part 200 Uniform Requirements. The "de minimis" rate may be applied only to modified total direct costs (MTDC) as defined by the Part 200 Uniform Requirements. 14 Determination of suitability to interact with participating minors SCOPE. This condition applies to this award if it is indicated -- in the application for the award (as approved by DOJ)(or in the application for any subaward, at any tier), the DOJ funding announcement (solicitation), or an associated federal statute -- that a purpose of some or all of the activities to be carried out under the award (whether by the recipient, or a subrecipient at any tier) is to benefit a set of individuals under 18 years of age. The recipient, and any subrecipient at any tier, must make determinations of suitability before certain individuals may interact with participating minors. This requirement applies regardless of an individual's employment status. The details of this requirement are posted on the OJP web site at https://ojp.gov/funding/Explore/Interact-Minors.htm (Award condition: Determination of suitability required, in advance, for certain individuals who may interact with participating minors), and are incorporated by reference here. 15 Requirement to disclose whether recipient is designated "high risk" by a federal grant-making agency outside of DOJ If the recipient is designated "high risk" by a federal grant-making agency outside of DOJ, currently or at any time during the course of the period of performance under this award, the recipient must disclose that fact and certain related information to OJP by email at OJP.ComplianceReporting@ojp.usdoj.gov. For purposes of this disclosure, high risk includes any status under which a federal awarding agency provides additional oversight due to the recipient's past performance, or other programmatic or financial concerns with the recipient. The recipient's disclosure must include the following: 1. The federal awarding agency that currently designates the recipient high risk, 2. The date the recipient was designated high risk, 3. The high-risk point of contact at that federal awarding agency (name, phone number, and email address), and 4. The reasons for the high-risk status, as set out by the federal awarding agency. 16 Compliance with DOJ Grants Financial Guide References to the DOJ Grants Financial Guide are to the DOJ Grants Financial Guide as posted on the OJP website Page: 9 of 22 Page 68 Item 6. (currently, the "DOJ Grants Financial Guide" available at https://ojp.gov/financialguide/DOJ/index.htm), including any updated version that may be posted during the period of performance. The recipient agrees to comply with the DOJ Grants Financial Guide. 17 Encouragement of policies to ban text messaging while driving Pursuant to Executive Order 13513, "Federal Leadership on Reducing Text Messaging While Driving," 74 Fed. Reg. 51225 (October 1, 2009), DOJ encourages recipients and subrecipients ("subgrantees") to adopt and enforce policies banning employees from text messaging while driving any vehicle during the course of performing work funded by this award, and to establish workplace safety policies and conduct education, awareness, and other outreach to decrease crashes caused by distracted drivers. 18 Compliance with general appropriations-law restrictions on the use of federal funds (FY 2021) The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable restrictions on the use of federal funds set out in federal appropriations statutes. Pertinent restrictions, including from various "general provisions" in the Consolidated Appropriations Act, 2021, are set out at https://ojp.gov/funding/Explore/ FY21AppropriationsRestrictions.htm, and are incorporated by reference here. Should a question arise as to whether a particular use of federal funds by a recipient (or a subrecipient) would or might fall within the scope of an appropriations-law restriction, the recipient is to contact OJP for guidance, and may not proceed without the express prior written approval of OJP. 19 Potential imposition of additional requirements The recipient agrees to comply with any additional requirements that may be imposed by the DOJ awarding agency (OJP or OVW, as appropriate) during the period of performance for this award, if the recipient is designated as "high- risk" for purposes of the DOJ high-risk grantee list. 20 Employment eligibility verification for hiring under the award 1. The recipient (and any subrecipient at any tier) must-- A. Ensure that, as part of the hiring process for any position within the United States that is or will be funded (in whole or in part) with award funds, the recipient (or any subrecipient) properly verifies the employment eligibility of the individual who is being hired, consistent with the provisions of 8 U.S.C. 1324a(a)(1). B. Notify all persons associated with the recipient (or any subrecipient) who are or will be involved in activities under this award of both-- (1) this award requirement for verification of employment eligibility, and (2) the associated provisions in 8 U.S.C. 1324a(a)(1) that, generally speaking, make it unlawful, in the United States, to hire (or recruit for employment) certain aliens. C. Provide training (to the extent necessary) to those persons required by this condition to be notified of the award requirement for employment eligibility verification and of the associated provisions of 8 U.S.C. 1324a(a)(1). D. As part of the recordkeeping for the award (including pursuant to the Part 200 Uniform Requirements), maintain records of all employment eligibility verifications pertinent to compliance with this award condition in accordance with Form I-9 record retention requirements, as well as records of all pertinent notifications and trainings. 2. Monitoring Page: 10 of 22 Page 69 Item 6. The recipient's monitoring responsibilities include monitoring of subrecipient compliance with this condition. 3. Allowable costs To the extent that such costs are not reimbursed under any other federal program, award funds may be obligated for the reasonable, necessary, and allocable costs (if any) of actions designed to ensure compliance with this condition. 4. Rules of construction A. Staff involved in the hiring process For purposes of this condition, persons "who are or will be involved in activities under this award" specifically includes (without limitation) any and all recipient (or any subrecipient) officials or other staff who are or will be involved in the hiring process with respect to a position that is or will be funded (in whole or in part) with award funds. B. Employment eligibility confirmation with E-Verify For purposes of satisfying the requirement of this condition regarding verification of employment eligibility, the recipient (or any subrecipient) may choose to participate in, and use, E-Verify (www.e-verify.gov), provided an appropriate person authorized to act on behalf of the recipient (or subrecipient) uses E-Verify (and follows the proper E-Verify procedures, including in the event of a "Tentative Nonconfirmation" or a "Final Nonconfirmation") to confirm employment eligibility for each hiring for a position in the United States that is or will be funded (in whole or in part) with award funds. C. "United States" specifically includes the District of Columbia, Puerto Rico, Guam, the Virgin Islands of the United States, and the Commonwealth of the Northern Mariana Islands. D. Nothing in this condition shall be understood to authorize or require any recipient, any subrecipient at any tier, or any person or other entity, to violate any federal law, including any applicable civil rights or nondiscrimination law. E. Nothing in this condition, including in paragraph 4.B., shall be understood to relieve any recipient, any subrecipient at any tier, or any person or other entity, of any obligation otherwise imposed by law, including 8 U.S.C. 1324a(a)(1). Questions about E-Verify should be directed to DHS. For more information about E-Verify visit the E-Verify website (https://www.e-verify.gov/) or email E-Verify at E-Verify@dhs.gov. E-Verify employer agents can email E-Verify at E- VerifyEmployerAgent@dhs.gov. Questions about the meaning or scope of this condition should be directed to OJP, before award acceptance. 21 Restrictions and certifications regarding non-disclosure agreements and related matters No recipient or subrecipient ("subgrantee") under this award, or entity that receives a procurement contract or subcontract with any funds under this award, may require any employee or contractor to sign an internal confidentiality agreement or statement that prohibits or otherwise restricts, or purports to prohibit or restrict, the reporting (in accordance with law) of waste, fraud, or abuse to an investigative or law enforcement representative of a federal department or agency authorized to receive such information. The foregoing is not intended, and shall not be understood by the agency making this award, to contravene requirements applicable to Standard Form 312 (which relates to classified information), Form 4414 (which relates to sensitive compartmented information), or any other form issued by a federal department or agency governing the nondisclosure of classified information. 1. In accepting this award, the recipient-- a. represents that it neither requires nor has required internal confidentiality agreements or statements from employees or contractors that currently prohibit or otherwise currently restrict (or purport to prohibit or restrict) employees or contractors from reporting waste, fraud, or abuse as described above; and Page: 11 of 22 Page 70 Item 6. b. certifies that, if it learns or is notified that it is or has been requiring its employees or contractors to execute agreements or statements that prohibit or otherwise restrict (or purport to prohibit or restrict), reporting of waste, fraud, or abuse as described above, it will immediately stop any further obligations of award funds, will provide prompt written notification to the federal agency making this award, and will resume (or permit resumption of) such obligations only if expressly authorized to do so by that agency. 2. If the recipient does or is authorized under this award to make subawards ("subgrants"), procurement contracts, or both-- a. it represents that-- (1) it has determined that no other entity that the recipient's application proposes may or will receive award funds (whether through a subaward ("subgrant"), procurement contract, or subcontract under a procurement contract) either requires or has required internal confidentiality agreements or statements from employees or contractors that currently prohibit or otherwise currently restrict (or purport to prohibit or restrict) employees or contractors from reporting waste, fraud, or abuse as described above; and (2) it has made appropriate inquiry, or otherwise has an adequate factual basis, to support this representation; and b. it certifies that, if it learns or is notified that any subrecipient, contractor, or subcontractor entity that receives funds under this award is or has been requiring its employees or contractors to execute agreements or statements that prohibit or otherwise restrict (or purport to prohibit or restrict), reporting of waste, fraud, or abuse as described above, it will immediately stop any further obligations of award funds to or by that entity, will provide prompt written notification to the federal agency making this award, and will resume (or permit resumption of) such obligations only if expressly authorized to do so by that agency. 22 Reclassification of various statutory provisions to a new Title 34 of the United States Code On September 1, 2017, various statutory provisions previously codified elsewhere in the U.S. Code were editorially reclassified (that is, moved and renumbered) to a new Title 34, entitled "Crime Control and Law Enforcement." The reclassification encompassed a number of statutory provisions pertinent to OJP awards (that is, OJP grants and cooperative agreements), including many provisions previously codified in Title 42 of the U.S. Code. Effective as of September 1, 2017, any reference in this award document to a statutory provision that has been reclassified to the new Title 34 of the U.S. Code is to be read as a reference to that statutory provision as reclassified to Title 34. This rule of construction specifically includes references set out in award conditions, references set out in material incorporated by reference through award conditions, and references set out in other award requirements. 23 OJP Training Guiding Principles Any training or training materials that the recipient -- or any subrecipient ("subgrantee") at any tier -- develops or delivers with OJP award funds must adhere to the OJP Training Guiding Principles for Grantees and Subgrantees, available at https://ojp.gov/funding/Implement/TrainingPrinciplesForGrantees-Subgrantees.htm. 24 All subawards ("subgrants") must have specific federal authorization The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable requirements for authorization of any subaward. This condition applies to agreements that -- for purposes of federal grants administrative requirements -- OJP considers a "subaward" (and therefore does not consider a procurement "contract"). The details of the requirement for authorization of any subaward are posted on the OJP web site at https://ojp.gov/ funding/Explore/SubawardAuthorization.htm (Award condition: All subawards ("subgrants") must have specific federal Page: 12 of 22 Page 71 Item 6. authorization), and are incorporated by reference here. 25 Requirements related to System for Award Management and Universal Identifier Requirements The recipient must comply with applicable requirements regarding the System for Award Management (SAM), currently accessible at https://www.sam.gov/. This includes applicable requirements regarding registration with SAM, as well as maintaining the currency of information in SAM. The recipient also must comply with applicable restrictions on subawards ("subgrants") to first-tier subrecipients (first- tier "subgrantees"), including restrictions on subawards to entities that do not acquire and provide (to the recipient) the unique entity identifier required for SAM registration. The details of the recipient's obligations related to SAM and to unique entity identifiers are posted on the OJP web site at https://ojp.gov/funding/Explore/SAM.htm (Award condition: System for Award Management (SAM) and Universal Identifier Requirements), and are incorporated by reference here. This condition does not apply to an award to an individual who received the award as a natural person (i.e., unrelated to any business or non-profit organization that he or she may own or operate in his or her name). 26 Restrictions on "lobbying" In general, as a matter of federal law, federal funds awarded by OJP may not be used by the recipient, or any subrecipient ("subgrantee") at any tier, either directly or indirectly, to support or oppose the enactment, repeal, modification, or adoption of any law, regulation, or policy, at any level of government. See 18 U.S.C. 1913. (There may be exceptions if an applicable federal statute specifically authorizes certain activities that otherwise would be barred by law.) Another federal law generally prohibits federal funds awarded by OJP from being used by the recipient, or any subrecipient at any tier, to pay any person to influence (or attempt to influence) a federal agency, a Member of Congress, or Congress (or an official or employee of any of them) with respect to the awarding of a federal grant or cooperative agreement, subgrant, contract, subcontract, or loan, or with respect to actions such as renewing, extending, or modifying any such award. See 31 U.S.C. 1352. Certain exceptions to this law apply, including an exception that applies to Indian tribes and tribal organizations. Should any question arise as to whether a particular use of federal funds by a recipient (or subrecipient) would or might fall within the scope of these prohibitions, the recipient is to contact OJP for guidance, and may not proceed without the express prior written approval of OJP. 27 Specific post-award approval required to use a noncompetitive approach in any procurement contract that would exceed $250,000 The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable requirements to obtain specific advance approval to use a noncompetitive approach in any procurement contract that would exceed the Simplified Acquisition Threshold (currently, $250,000). This condition applies to agreements that -- for purposes of federal grants administrative requirements -- OJP considers a procurement "contract" (and therefore does not consider a subaward). The details of the requirement for advance approval to use a noncompetitive approach in a procurement contract under an OJP award are posted on the OJP web site at https://ojp.gov/funding/Explore/NoncompetitiveProcurement.htm (Award condition: Specific post-award approval required to use a noncompetitive approach in a procurement contract (if contract would exceed $250,000)), and are incorporated by reference here. 28 Requirements pertaining to prohibited conduct related to trafficking in persons (including reporting requirements and Page: 13 of 22 Page 72 Item 6. OJP authority to terminate award) The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable requirements (including requirements to report allegations) pertaining to prohibited conduct related to the trafficking of persons, whether on the part of recipients, subrecipients ("subgrantees"), or individuals defined (for purposes of this condition) as "employees" of the recipient or of any subrecipient. The details of the recipient's obligations related to prohibited conduct related to trafficking in persons are posted on the OJP web site at https://ojp.gov/funding/Explore/ProhibitedConduct-Trafficking.htm (Award condition: Prohibited conduct by recipients and subrecipients related to trafficking in persons (including reporting requirements and OJP authority to terminate award)), and are incorporated by reference here. 29 Requirement to report potentially duplicative funding If the recipient currently has other active awards of federal funds, or if the recipient receives any other award of federal funds during the period of performance for this award, the recipient promptly must determine whether funds from any of those other federal awards have been, are being, or are to be used (in whole or in part) for one or more of the identical cost items for which funds are provided under this award. If so, the recipient must promptly notify the DOJ awarding agency (OJP or OVW, as appropriate) in writing of the potential duplication, and, if so requested by the DOJ awarding agency, must seek a budget-modification or change-of-project-scope Grant Award Modification (GAM) to eliminate any inappropriate duplication of funding. 30 Reporting potential fraud, waste, and abuse, and similar misconduct The recipient, and any subrecipients ("subgrantees") at any tier, must promptly refer to the DOJ Office of the Inspector General (OIG) any credible evidence that a principal, employee, agent, subrecipient, contractor, subcontractor, or other person has, in connection with funds under this award-- (1) submitted a claim that violates the False Claims Act; or (2) committed a criminal or civil violation of laws pertaining to fraud, conflict of interest, bribery, gratuity, or similar misconduct. Potential fraud, waste, abuse, or misconduct involving or relating to funds under this award should be reported to the OIG by--(1) online submission accessible via the OIG webpage at https://oig.justice.gov/hotline/contact-grants.htm (select "Submit Report Online"); (2) mail directed to: U.S. Department of Justice, Office of the Inspector General, Investigations Division, ATTN: Grantee Reporting, 950 Pennsylvania Ave., NW, Washington, DC 20530; and/or (3) by facsimile directed to the DOJ OIG Investigations Division (Attn: Grantee Reporting) at (202) 616-9881 (fax). Additional information is available from the DOJ OIG website at https://oig.justice.gov/hotline. 31 FFATA reporting: Subawards and executive compensation The recipient must comply with applicable requirements to report first-tier subawards ("subgrants") of $30,000 or more and, in certain circumstances, to report the names and total compensation of the five most highly compensated executives of the recipient and first-tier subrecipients (first-tier "subgrantees") of award funds. The details of recipient obligations, which derive from the Federal Funding Accountability and Transparency Act of 2006 (FFATA), are posted on the OJP web site at https://ojp.gov/funding/Explore/FFATA.htm (Award condition: Reporting Subawards and Executive Compensation), and are incorporated by reference here. This condition, including its reporting requirement, does not apply to-- (1) an award of less than $30,000, or (2) an award made to an individual who received the award as a natural person (i.e., unrelated to any business or non-profit organization that he or she may own or operate in his or her name). 32 Cooperating with OJP Monitoring Page: 14 of 22 Page 73 Item 6. The recipient agrees to cooperate with OJP monitoring of this award pursuant to OJP's guidelines, protocols, and procedures, and to cooperate with OJP (including the grant manager for this award and the Office of Chief Financial Officer (OCFO)) requests related to such monitoring, including requests related to desk reviews and/or site visits. The recipient agrees to provide to OJP all documentation necessary for OJP to complete its monitoring tasks, including documentation related to any subawards made under this award. Further, the recipient agrees to abide by reasonable deadlines set by OJP for providing the requested documents. Failure to cooperate with OJP's monitoring activities may result in actions that affect the recipient's DOJ awards, including, but not limited to: withholdings and/or other restrictions on the recipient's access to award funds; referral to the DOJ OIG for audit review; designation of the recipient as a DOJ High Risk grantee; or termination of an award(s). 33 Required monitoring of subawards The recipient must monitor subawards under this award in accordance with all applicable statutes, regulations, award conditions, and the DOJ Grants Financial Guide, and must include the applicable conditions of this award in any subaward. Among other things, the recipient is responsible for oversight of subrecipient spending and monitoring of specific outcomes and benefits attributable to use of award funds by subrecipients. The recipient agrees to submit, upon request, documentation of its policies and procedures for monitoring of subawards under this award. 34 Use of program income Program income (as defined in the Part 200 Uniform Requirements) must be used in accordance with the provisions of the Part 200 Uniform Requirements. Program income earnings and expenditures both must be reported on the quarterly Federal Financial Report, SF 425. 35 Justice Information Sharing Information sharing projects funded under this award must comply with DOJ's Global Justice Information Sharing Initiative (Global) guidelines. The recipient (and any subrecipient at any tier) must conform to the Global Standards Package (GSP) and all constituent elements, where applicable, as described at: https:/ / it.ojp.gov/ gsp_grantcondition. The recipient (and any subrecipient at any tier) must document planned approaches to information sharing and describe compliance with the GSP and appropriate privacy policy that protects shared information, or provide detailed justification for why an alternative approach is recommended. 36 Avoidance of duplication of networks To avoid duplicating existing networks or IT systems in any initiatives funded by BJA for law enforcement information sharing systems which involve interstate connectivity between jurisdictions, such systems shall employ, to the extent possible, existing networks as the communication backbone to achieve interstate connectivity, unless the recipient can demonstrate to the satisfaction of BJA that this requirement would not be cost effective or would impair the functionality of an existing or proposed IT system. 37 Compliance with 28 C.F.R. Part 23 With respect to any information technology system funded or supported by funds under this award, the recipient (and any subrecipient at any tier) must comply with 28 C.F.R. Part 23, Criminal Intelligence Systems Operating Policies, if OJP determines this regulation to be applicable. Should OJP determine 28 C.F.R. Part 23 to be applicable, OJP may, at its discretion, perform audits of the system, as per the regulation. Should any violation of 28 C.F.R. Part 23 occur, the recipient may be fined as per 34 U.S.C. 10231(c)-(d). The recipient may not satisfy such a fine with federal funds. 38 Page: 15 of 22 Page 74 Item 6. Protection of human research subjects The recipient (and any subrecipient at any tier) must comply with the requirements of 28 C.F.R. Part 46 and all OJP policies and procedures regarding the protection of human research subjects, including obtainment of Institutional Review Board approval, if appropriate, and subject informed consent. 39 Confidentiality of data The recipient (and any subrecipient at any tier) must comply with all confidentiality requirements of 34 U.S.C. 10231 and 28 C.F.R. Part 22 that are applicable to collection, use, and revelation of data or information. The recipient further agrees, as a condition of award approval, to submit a Privacy Certificate that is in accord with requirements of 28 C.F.R. Part 22 and, in particular, 28 C.F.R. 22.23. 40 Law enforcement task forces - required training Within 120 days of award acceptance, each current member of a law enforcement task force funded with award funds who is a task force commander, agency executive, task force officer, or other task force member of equivalent rank, must complete required online (internet-based) task force training. Additionally, all future task force members must complete this training once during the period of performance for this award, or once every four years if multiple OJP awards include this requirement. The required training is available free of charge online through the BJA-funded Center for Task Force Integrity and Leadership (www.ctfli.org). The training addresses task force effectiveness, as well as other key issues including privacy and civil liberties/rights, task force performance measurement, personnel selection, and task force oversight and accountability. If award funds are used to support a task force, the recipient must compile and maintain a task force personnel roster, along with course completion certificates. Additional information regarding the training is available through BJA's web site and the Center for Task Force Integrity and Leadership (www.ctfli.org). 41 Justification of consultant rate Approval of this award does not indicate approval of any consultant rate in excess of $650 per day. A detailed justification must be submitted to and approved by the OJP program office prior to obligation or expenditure of such funds. 42 "Methods of Administration" - monitoring compliance with civil rights laws and nondiscrimination provisions The recipient's monitoring responsibilities include monitoring of subrecipient compliance with applicable federal civil rights laws and nondiscrimination provisions. Within 90 days of the date of award acceptance, the recipient must submit to OJP's Office for Civil Rights (at CivilRightsMOA@usdoj.gov) written Methods of Administration ("MOA") for subrecipient monitoring with respect to civil rights requirements. In addition, upon request by OJP (or by another authorized federal agency), the recipient must make associated documentation available for review. The details of the recipient's obligations related to Methods of Administration are posted on the OJP web site at https:// ojp.gov/funding/Explore/StateMethodsAdmin-FY2017update.htm (Award condition: "Methods of Administration" - Requirements applicable to States (FY 2017 Update)), and are incorporated by reference here. 43 The recipient understands that, in accepting this award, the Authorized Representative declares and certifies, among other things, that he or she possesses the requisite legal authority to accept the award on behalf of the recipient entity and, in so doing, accepts (or adopts) all material requirements that relate to conduct throughout the period of Page: 16 of 22 Page 75 Item 6. performance under this award. The recipient further understands, and agrees, that it will not assign anyone to the role of Authorized Representative during the period of performance under the award without first ensuring that the individual has the requisite legal authority. 44 Compliance with National Environmental Policy Act and related statutes Upon request, the recipient (and any subrecipient at any tier) must assist BJA in complying with the National Environmental Policy Act (NEPA), the National Historic Preservation Act, and other related federal environmental impact analyses requirements in the use of these award funds, either directly by the recipient or by a subrecipient. Accordingly, the recipient agrees to first determine if any of the following activities will be funded by the grant, prior to obligating funds for any of these purposes. If it is determined that any of the following activities will be funded by the award, the recipient agrees to contact BJA. The recipient understands that this condition applies to new activities as set out below, whether or not they are being specifically funded with these award funds. That is, as long as the activity is being conducted by the recipient, a subrecipient, or any third party, and the activity needs to be undertaken in order to use these award funds, this condition must first be met. The activities covered by this condition are: a. New construction; b. Minor renovation or remodeling of a property located in an environmentally or historically sensitive area, including properties located within a 100-year flood plain, a wetland, or habitat for endangered species, or a property listed on or eligible for listing on the National Register of Historic Places; c. A renovation, lease, or any proposed use of a building or facility that will either (a) result in a change in its basic prior use or (b) significantly change its size; d. Implementation of a new program involving the use of chemicals other than chemicals that are (a) purchased as an incidental component of a funded activity and (b) traditionally used, for example, in office, household, recreational, or education environments; and e. Implementation of a program relating to clandestine methamphetamine laboratory operations, including the identification, seizure, or closure of clandestine methamphetamine laboratories. The recipient understands and agrees that complying with NEPA may require the preparation of an Environmental Assessment and/or an Environmental Impact Statement, as directed by BJA. The recipient further understands and agrees to the requirements for implementation of a Mitigation Plan, as detailed at https://bja.gov/Funding/nepa.html, for programs relating to methamphetamine laboratory operations. Application of This Condition to Recipient's Existing Programs or Activities: For any of the recipient's or its subrecipients' existing programs or activities that will be funded by these award funds, the recipient, upon specific request from BJA, agrees to cooperate with BJA in any preparation by BJA of a national or program environmental assessment of that funded program or activity. 45 Establishment of trust fund If award funds are being drawn down in advance, the recipient (or a subrecipient, with respect to a subaward) is required to establish a trust fund account. Recipients (and subrecipients) must maintain advance payments of federal awards in interest-bearing accounts, unless regulatory exclusions apply (2 C.F.R. 200.305(b)(8)). The trust fund, including any interest, may not be used to pay debts or expenses incurred by other activities beyond the scope of the Edward Byrne Memorial Justice Assistance Grant Program (JAG). The recipient also agrees to obligate the award funds in the trust fund (including any interest earned) during the period of performance for the award and expend within 90 days thereafter. Any unobligated or unexpended funds, including interest earned, must be returned to OJP at the time of closeout. 46 Page: 17 of 22 Page 76 Item 6. All State and Local JAG recipients must submit quarterly Federal Financial Reports (SF-425). Additionally, State JAG and Local JAG Category Two ($25K or more) must submit semi-annual performance reports through JustGrants and Local JAG Category One (Less than $25K) must submit annual performance reports through JustGrants. Consistent with the Department's responsibilities under the Government Performance and Results Act (GPRA) and the GPRA Modernization Act of 2010, the recipient must provide data that measure the results of its work. The recipient must submit quarterly performance metrics reports through BJA's Performance Measurement Tool (PMT) website (www.bjaperformancetools.org). For more detailed information on reporting and other JAG requirements, refer to the JAG reporting requirements webpage. Failure to submit required JAG reports by established deadlines may result in the freezing of grant funds and future High Risk designation. 47 Required data on law enforcement agency training Any law enforcement agency receiving direct or sub-awarded funding from this JAG award must submit quarterly accountability metrics data related to training that officers have received on the use of force, racial and ethnic bias, de- escalation of conflict, and constructive engagement with the public. 48 Expenditures prohibited without waiver No funds under this award may be expended on the purchase of items prohibited by the JAG program statute, unless, as set forth at 34 U.S.C. 10152, the BJA Director certifies that extraordinary and exigent circumstances exist, making such expenditures essential to the maintenance of public safety and good order. 49 Authorization to obligate (federal) award funds to reimburse certain project costs incurred on or after October 1, 2020 The recipient may obligate (federal) award funds only after the recipient makes a valid acceptance of the award. As of the first day of the period of performance for the award (October 1, 2020), however, the recipient may choose to incur project costs using non-federal funds, but any such project costs are incurred at the recipient's risk until, at a minimum- - (1) the recipient makes a valid acceptance of the award, and (2) all applicable withholding conditions are removed by OJP (via an Award Condition Modification (ACM)). (A withholding condition is a condition in the award document that precludes the recipient from obligating, expending, or drawing down all or a portion of the award funds until the condition is removed.) Except to the extent (if any) that an award condition expressly precludes reimbursement of project costs incurred "at- risk," if and when the recipient makes a valid acceptance of this award and OJP removes each applicable withholding condition through an Award Condition Modification (ACM), the recipient is authorized to obligate (federal) award funds to reimburse itself for project costs incurred "at-risk" earlier during the period of performance (such as project costs incurred prior to award acceptance or prior to removal of an applicable withholding condition), provided that those project costs otherwise are allowable costs under the award. 50 If award funds are used for DNA testing of evidentiary materials, any resulting eligible DNA profiles must be uploaded to the Combined DNA Index System ("CODIS," the DNA database operated by the FBI) by a government DNA laboratory with access to CODIS. No profiles generated under this award may be entered or uploaded into any non- governmental DNA database without prior express written approval from BJA. Award funds may not be used for the purchase of DNA equipment and supplies unless the resulting DNA profiles may be accepted for entry into CODIS. Booking agencies should work with their state CODIS agency to ensure all requirements are met for participation in Rapid DNA (see National Rapid DNA Booking Operational Procedures Manual). 51 Submission of eligible records relevant to the National Instant Background Check System Consonant with federal statutes that pertain to firearms and background checks -- including 18 U.S.C. 922 and 34 U.S.C. ch. 409 -- if the recipient (or any subrecipient at any tier) uses this award to fund (in whole or in part) a specific Page: 18 of 22 Page 77 Item 6. project or program (such as a law enforcement, prosecution, or court program) that results in any court dispositions, information, or other records that are "eligible records" (under federal or State law) relevant to the National Instant Background Check System (NICS), or that has as one of its purposes the establishment or improvement of records systems that contain any court dispositions, information, or other records that are "eligible records" (under federal or State law) relevant to the NICS, the recipient (or subrecipient, if applicable) must ensure that all such court dispositions, information, or other records that are "eligible records" (under federal or State law) relevant to the NICS are promptly made available to the NICS or to the "State" repository/database that is electronically available to (and accessed by) the NICS, and -- when appropriate -- promptly must update, correct, modify, or remove such NICS- relevant "eligible records". In the event of minor and transitory non-compliance, the recipient may submit evidence to demonstrate diligent monitoring of compliance with this condition (including subrecipient compliance). DOJ will give great weight to any such evidence in any express written determination regarding this condition. 52 Prohibition on use of award funds for match under BVP program JAG funds may not be used as the 50% match for purposes of the DOJ Bulletproof Vest Partnership (BVP) program. 53 Certification of body armor "mandatory wear" policies If recipient uses funds under this award to purchase body armor, the recipient must submit a signed certification that law enforcement agencies receiving body armor purchased with funds from this award have a written "mandatory wear" policy in effect. The recipient must keep signed certifications on file for any subrecipients planning to utilize funds from this award for ballistic-resistant and stab-resistant body armor purchases. This policy must be in place for at least all uniformed officers before any funds from this award may be used by an agency for body armor. There are no requirements regarding the nature of the policy other than it be a mandatory wear policy for all uniformed officers while on duty. 54 Body armor - compliance with NIJ standards and other requirements Ballistic-resistant and stab-resistant body armor purchased with JAG award funds may be purchased at any threat level, make or model, from any distributor or manufacturer, as long as the body armor has been tested and found to comply with applicable National Institute of Justice ballistic or stab standards and is listed on the NIJ Compliant Body Armor Model List (https://nij.gov/topics/technology/body-armor/Pages/compliant-ballistic-armor.aspx). In addition, ballistic-resistant and stab-resistant body armor purchased must be made in the United States and must be uniquely fitted, as set forth in 34 U.S.C. 10202(c)(1)(A). The latest NIJ standard information can be found here: https:/ / nij.gov/ topics/ technology/ body-armor/ pages/ safety-initiative.aspx. 55 Body armor - impact on eligibility for other program funds The recipient understands that the use of funds under this award for purchase of body armor may impact eligibility for funding under the Bulletproof Vest Partnership (BVP) program, a separate program operated by BJA, pursuant to the BVP statute at 34 USC 10531(c)(5). 56 BJA- JAG - Withholding of funds for budget documentation Withholding of funds: Budget narrative or information The recipient may not expend or draw down any award funds until the recipient submits, and OJP reviews and accepts, the required budget information or narrative for the award, and an Award Condition Modification has been issued to remove this condition. Page: 19 of 22 Page 78 Item 6. 57 BJA- JAG - Withholding of Funds for MOU Withholding of funds: Memorandum of Understanding The recipient may not expend or draw down any award funds until OJP has reviewed and approved the Memorandum of Understanding (MOU), and an Award Condition Modification has been issued to remove this condition. 58 BJA- JAG - Withholding of Funds for Chief Executive Certification Withholding of funds: Required certification from the chief executive of the applicant government The recipient may not expend or draw down any award funds until the recipient submits the required "Certifications and Assurances by the Chief Executive of the Applicant Government," properly-executed (as determined by OJP), and an Award Condition Modification has been issued to remove this condition. [X] I have read and understand the information presented in this section of the Federal Award Instrument . Award Acceptance Declaration and Certification to the U.S. Department of Justice as to Acceptance By checking the declaration and certification box below, I-- A. Declare to the U.S. Department of Justice (DOJ), under penalty of perjury, that I have authority to make this declaration and certification on behalf of the applicant. B. Certify to DOJ, under penalty of perjury, on behalf of myself and the applicant, to the best of my knowledge and belief, that the following are true as of the date of this award acceptance: (1) I have conducted or there was conducted (including by applicant’s legal counsel as appropriate and made available to me) a diligent review of all terms and conditions of, and all supporting materials submitted in connection with, this award, including any assurances and certifications (including anything submitted in connection therewith by a person on behalf of the applicant before, after, or at the time of the application submission and any materials that accompany this acceptance and certification); and (2) I have the legal authority to accept this award on behalf of the applicant. C. Accept this award on behalf of the applicant. D. Declare the following to DOJ, under penalty of perjury, on behalf of myself and the applicant: (1) I understand that, in taking (or not taking) any action pursuant to this declaration and certification, DOJ will rely upon this declaration and certification as a material representation; and (2) I understand that any materially false, fictitious, or fraudulent information or statement in this declaration and certification (or concealment or omission of a material fact as to either) may be the subject of criminal prosecution (including under 18 U.S.C. §§ 1001 and/or 1621, and/or 34 U.S.C. §§ 10271-10273), and also may subject me and the applicant to civil penalties and administrative remedies under the federal False Claims Act (including under 31 U.S.C. §§ 3729-3730 and/or §§ 3801-3812) or otherwise. Agency Approval Title of Approving Official Deputy Assistant Attorney General Name of Approving Official Maureen Henneberg Signed Date And Time 9/16/21 7:31 PM Authorized Representative Page: 20 of 22 Page 79 Item 6. Declaration and Certification Entity Acceptance Title of Authorized Entity Official Sr. Accounting Technician Name of Authorized Entity Official Brei Kennedy Signed Date And Time 7/7/2022 12:38 PM Page: 21 of 22 Page 80 Item 6. Page: 22 of 22 Page 81 Item 6. File Attachments for Item: 7. Items Relating to the Safe Streets and Roads for All Grant Awards. A. Resolution 2024-122 Authorizing the Mayor to Sign a Grant Agreement with the Federal Highway Administration under the Fiscal Year 2023 Safe Streets and Roads for All Grant Program. B. First Reading of Ordinance No. 145, 2024, Making Supplemental Appropriations for Projects Funded Through the Safe Streets and Roads for All Grant Program. The purpose of this item is to support FC Moves in expanding on the City ’s current Active Modes Plan and Vision Zero Plan, specifically through a: • Bikeway study that serves to identify specific safety concerns and potential countermeasures, and to understand feasibility and network impacts of lane reductions on the arterial network. • Demonstration activity that tests the effectiveness of temporary vertical protection along Centre Avenue, between Centre Drive/Bay Drive and Worthington Circle, to inform future projects citywide. FC Moves in collaboration with Traffic Operations, Engineering, and Streets applied to the Federal Highway Administration’s Fiscal Year 2023 (FY23) Safe Streets and Roads for All (SS4A) grant program, seeking funds in support of the bikeway study that includes (1) public and stakeholder engagement to understand barriers to active transportation on the corridors bounded by College Avenue, Horsetooth Road, Overland Trail and Laporte Avenue; (2) corridor safety audits to identify crash patterns and infrastructure that reduce the risk of bike and pedestrian crashes; and (3) data analysis and countermeasure selection. In addition, funds in support of the demonstration activity that include installation of temporary flexible posts and curbing along Centre Avenue, and associated data collection were requested under the FY23 SS4A grant program. In support of funding the required 20% match under the FY23 SS4A grant program, FC Moves requested matching funds under the Colorado Department of Local Affairs Local Match (LOMA) grant program. Both the Federal Highway Administration and Colorado Department of Local Affairs (DOLA) responded favorably to the requests for funds, with $964,480 being award under the FY23 SS4A grant program and $241,120 being awarded under DOLA’s LOMA grant program. Total project costs for both the bike study and demonstration activity, totaling $1,205,600, are funded in full through these grant awards from the FY23 SS4A grant program and DOLA ’s LOMA grant program. The Resolution for consideration will authorize the Mayor to sign the Intergovernmental Agreement (IGA) with the Federal Highway Administration to receive grant funding to support the bike study and the demonstration activity. As demonstrated by the LOMA grant agreement (Attachment 3) by accepting the LOMA funding from DOLA, the City agrees to all terms and conditions, including use of the $241,120 as non- federal match to the FY23 SS4A grant. Page 82 The Ordinance for consideration will appropriate the $964,480 in federal funds from the FY23 SS4A grant program and $241,120 in state funds from the LOMA grant program. Page 83 City Council Agenda Item Summary – City of Fort Collins Page 1 of 3 October 15, 2024 AGENDA ITEM SUMMARY City Council STAFF Dana Hornkohl, Director, Civil Engineering Cortney Geary, Manager, FC Moves Kerri Ishmael, Senior Analyst, Grants Administration SUBJECT Items Relating to the Safe Streets and Roads for All Grant Awards. EXECUTIVE SUMMARY A. Resolution 2024-122 Authorizing the Mayor to Sign a Grant Agreement with the Federal Highway Administration under the Fiscal Year 2023 Safe Streets and Roads for All Grant Program. B. First Reading of Ordinance No. 145, 2024, Making Supplemental Appropriations for Projects Funded Through the Safe Streets and Roads for All Grant Program. The purpose of this item is to support FC Moves in expanding on the City’s current Active Modes Plan and Vision Zero Plan, specifically through a: • Bikeway study that serves to identify specific safety concerns and potential countermeasures, and to understand feasibility and network impacts of lane reductions on the arterial network. • Demonstration activity that tests the effectiveness of temporary vertical protection along Centre Avenue, between Centre Drive/Bay Drive and Worthington Circle, to inform future projects citywide. FC Moves in collaboration with Traffic Operations, Engineering, and Streets applied to the Federal Highway Administration’s Fiscal Year 2023 (FY23) Safe Streets and Roads for All (SS4A) grant program, seeking funds in support of the bikeway study that includes (1) public and stakeholder engagement to understand barriers to active transportation on the corridors bounded by College Avenue, Horsetooth Road, Overland Trail and Laporte Avenue; (2) corridor safety audits to identify crash patterns and infrastructure that reduce the risk of bike and pedestrian crashes; and (3) data analysis and countermeasure selection. In addition, funds in support of the demonstration activity that include installation of temporary flexible posts and curbing along Centre Avenue, and associated data collection were requested under the FY23 SS4A grant program. In support of funding the required 20% match under the FY23 SS4A grant program, FC Moves requested matching funds under the Colorado Department of Local Affairs Local Match (LOMA) grant program. Both the Federal Highway Administration and Colorado Department of Local Affairs (DOLA) responded favorably to the requests for funds, with $964,480 being award under the FY23 SS4A grant program and $241,120 being awarded under DOLA’s LOMA grant program. Total project costs for both the bike study and demonstration activity, totaling $1,205,600, are funded in full through these grant awards from the FY23 SS4A grant program and DOLA’s LOMA grant program. Page 84 Item 7. City Council Agenda Item Summary – City of Fort Collins Page 2 of 3 The Resolution for consideration will authorize the Mayor to sign the Intergovernmental Agreement (IGA) with the Federal Highway Administration to receive grant funding to support the bike study and the demonstration activity. As demonstrated by the LOMA grant agreement (Attachment 3) by accepting the LOMA funding from DOLA, the City agrees to all terms and conditions, including use of the $241,120 as non-federal match to the FY23 SS4A grant. The Ordinance for consideration will appropriate the $964,480 in federal funds from the FY23 SS4A grant program and $241,120 in state funds from the LOMA grant program. STAFF RECOMMENDATION Staff recommends both the adoption of the Resolution and the Ordinance on First Reading. BACKGROUND / DISCUSSION Resolution for Grant Agreement with the Federal Highway Administration The Resolution for consideration, provided in Attachment 1, authorizes the Mayor to execute an IGA with the Federal Highway Administration (Attachment 2) to secure the SS4A grant funding in support of the bike study and demonstration activity. The City is required to contribute $241,120 in matching funds to accept the SS4QA grant. Funds awarded through DOLA’s LOMA grant program comprise the matching funds, as presented in the LOMA grant agreement provided in Attachment 3. Ordinance for Making Supplemental Appropriations The Ordinance for consideration, provided in Attachment 4, includes the following actions: Appropriate $964,480 of unanticipated grant revenue from the FY23 SS4A program and Appropriate $241,120 of unanticipated grant revenue from the LOMA grant program for use as non- federal match for the FY23 SS4A grant CITY FINANCIAL IMPACTS This item appropriates $1,205,600 in costs to support the bike study and demonstration activity to further inform and expand on the City’s Actives Modes Plan and Vision Zero Plan. Specifically: $964,480 of unanticipated grant revenue from the FY23 SS4A program, and $241,120 of unanticipated grant revenue from the LOMA grant program. Both the FY23 SS4A award from the Federal Highway Administration and LOMA award from DOLA are reimbursement type awards, meaning Capital Projects Fund expenses will be reimbursed up to $1,205,600. BOARD / COMMISSION / COMMITTEE RECOMMENDATION None. PUBLIC OUTREACH None. Page 85 Item 7. City Council Agenda Item Summary – City of Fort Collins Page 3 of 3 ATTACHMENTS 1. Resolution for Consideration 2. Exhibit A to Resolution 3. Ordinance for Consideration 4. Colorado Department of Local Affairs Local Match Grant Agreement Page 86 Item 7. -1- RESOLUTION 2024-122 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE MAYOR TO SIGN A GRANT AGREEMENT WITH THE FEDERAL HIGHWAY ADMINISTRATION UNDER THE FISCAL YEAR 2023 SAFE STREETS AND ROADS FOR ALL GRANT PROGRAM A. FC Moves in collaboration with Traffic Operations, Engineering, and Streets applied to the Federal Highway Administration's Fiscal Year 2023 (FY23) Safe Streets and Roads for All (SS4A) grant program to support FC Moves in expanding on the City's current Active Modes Plan (to achieve 50% active mode share and eliminate active modes traffic deaths and serious injuries by 2032) and Vision Zero Plan (to eliminate traffic deaths or serious injuries by 2032), specifically through a bikeway study and demonstration activity. The projects made possible by this grant also align with the City’s adopted Our Climate Future Plan initiative to reduce greenhouse gas emissions by 80% relative to 2005 levels by 2030. B. The bikeway study will identify specific safety concerns and potential countermeasures to gain understanding of the feasibility and network impacts of lane reductions on the arterial network and will include: a. Public and stakeholder engagement to understand barriers to active transportation on the corridors bounded by College Avenue, Horsetooth Road, Overland Trail, and Laporte Avenue; b. Corridor safety audits to identify crash patterns and infrastructure that reduces the risk of bike and pedestrian crashes; and c. Data analysis and countermeasure selection. C. The demonstration activity will test the effectiveness of temporary vertical protection, flexible posts and curbing, along Centre Avenue, between Centre Drive/Bay Drive and Worthington Circle. D. Information from the study and data from the demonstration activity will inform future projects citywide. E. The FY23 SS4A grant program requires a 20% non-federal match. FC Moves requested matching funds under the Colorado Department of Local Affairs (DOLA) Local Match (LOMA) grant program. F. Both the Federal Highway Administration and DOLA responded favorably to the requests for funds, with $964,480 being award under the FY23 SS4A grant program for the City’s application titled “Fort Collins Citywide Arterial Street Low Stress Bike Network” and $241,120 being awarded under DOLA's LOMA grant program for the City’s application project titled “High Injury Network.” The total of the two grants, $1,205,600, is anticipated to fully fund the project costs for both the bike study and demonstration activity. Page 87 Item 7. -2- G. The Federal Highway Administration has proposed an intergovernmental agreement (“IGA”) to enable the City to receive grant funding to support the bike study and the demonstration activity. H. The LOMA grant award provides that by accepting the LOMA funding from DOLA, the City agrees to all terms and conditions of that grant, including use of the $241,120 as non-federal match to the FY23 SS4A grant. I. Colorado Revised Statutes Section 29-1-203 provides that governments may cooperate or contract with one another to provide certain services or facilities when the cooperation or contracts are authorized by each party thereto with the approval of its legislative body or other authority having the power to so approve. J. Article II, Section 16 of the City Charter empowers the City Council, by ordinance or resolution, to enter into contracts with governmental bodies to furnish governmental services and make charges for such services, or enter into cooperative or joint activities with other governmental bodies. K. City Code Section 1-22 requires the City Council to approve IGAs that require the City to make a direct, monetary payment over $50,000, and the proposed IGA requires the City to provide matching funds in the amount of $241,120. L. The City Council has determined that this IGA with the Federal Highway Administration is in the best interests of the City and that the Mayor be authorized to execute the IGA between the City and Federal Highway Administration in support thereof. In light of the foregoing recitals, which the Council hereby makes and adopts as determinations and findings, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. The City Council authorizes the Mayor to execute, on behalf of the City, an intergovernmental agreement with the Federal Highway Administration relating to the Fiscal Year 2023 Safe Streets and Roads for All grant program , in substantially the form attached hereto as Exhibit A, with such additional or modified terms and conditions as the City Manager, in consultation with the City Attorney, determines to be necessary and appropriate to protect the interests of the City or effectuate the purposes of this Resolution. Section 2. The City Council hereby authorizes the City Manager to approve and execute future amendments to the intergovernmental agreement with the Federal Highway Administration relating to the Fiscal Year 2023 Safe Streets and Roads for All grant program that the City Manager, in consultation with the City Attorney, determines to be necessary and appropriate to facilitate completion of the projects made possible through the Fiscal Year 2023 Safe Streets and Roads for All grant , so long as such amendments do not increase the cost of the projects, substantially modify the purposes of the intergovernmental agreement, increase the allocation or amount of funding for the Page 88 Item 7. -3- projects funded by the City, or otherwise increase the obligations and responsibilities of the City as set forth in this intergovernmental agreement. Passed and adopted on October 1, 2024. ______________________________ Mayor ATTEST: ______________________________ City Clerk Effective Date: October 1, 2024 Approving Attorney: Heather N. Jarvis Page 89 Item 7. 1 of 19 1.Federal Award No. 693JJ32540096 2.Effective Date See No. 16 Below 3.Assistance Listings No. 20.939 4.Award To City of Fort Collins 300 Laporte Ave Fort Collins, CO 80521-2719 Unique Entity Id.: VEJ3BS5GK5G1 TIN No.: 84-6000587 5.Sponsoring Office U.S. Department of Transportation Federal Highway Administration Office of Safety 1200 New Jersey Avenue, SE HSSA-1, Mail Drop E71-117 Washington, DC 20590 6.Period of Performance Effective Date of Award – 24 months 7.Total Amount Federal Share: Recipient Share: Other Federal Funds: Other Funds: Total: $964,480.00 $0.00 $0.00 $241,120.00 $1,205,600.00 8.Type of Agreement Grant 9.Authority Section 24112 of the Infrastructure Investment and Jobs Act (Pub. L. 117–58, November 15, 2021; also referred to as the “Bipartisan Infrastructure Law” or “BIL”) 10.Procurement Request No. HSA240399PR 11.Federal Funds Obligated Base Phase: Planning $15,000 Phase 1: Planning and Final Design: $800,760 Phase 2: Construction $148,720 12.Submit Payment Requests To See Article 5. 13.Accounting and Appropriations Data 15X0173E50.0000.055SR10500.5592000000.4101 0.61006600 14. Description of the Project Bikeway study to identify specific causes of crashes and explore feasibility of various arterial improvements recommended best solutions to maximize safety and comfort of cyclists. Pilot project to test effectiveness of temporary separated bike lane protection elements on a corridor to inform future projects. RECIPIENT 15. Signature of Person Authorized to Sign ___________________________________ Signature Date Name: Jeni Arndt Title: Mayor, City of Fort Collins FEDERAL HIGHWAY ADMINISTRATION 16. Signature of Agreement Officer ______________________________________ Signature Date Name: Hector Santamaria Title: Agreement Officer _____________________ Attest - City Clerk _____________________ Approved as to form - Assistant City Attorney EXHIBIT A TO RESOLUTION 2024-122 Page 90 Item 7. 2 of 19 U.S. DEPARTMENT OF TRANSPORTATION GRANT AGREEMENT UNDER THE FISCAL YEAR 2023 SAFE STREETS AND ROADS FOR ALL GRANT PROGRAM This agreement is between the United States Department of Transportation’s (the “USDOT”) Federal Highway Administration (the “FHWA”) and the City of Fort Collins (the “Recipient”). This agreement reflects the selection of the Recipient to receive a Safe Streets and Roads for All (“SS4A”) Grant for the Fort Collins Citywide Arterial Street Low Stress Bike Network, Fort Collins, Colorado. The parties therefore agree to the following: ARTICLE 1 GENERAL TERMS AND CONDITIONS 1.1 General Terms and Conditions. (a) In this agreement, “General Terms and Conditions” means the content of the document titled “General Terms and Conditions Under the Fiscal Year 2023 Safe Streets and Roads for All (“SS4A”) Grant Program,”, which is available at https://www.transportation.gov/grants/ss4a/grant-agreements under “Fiscal Year 2023.” Articles 7–30 are in the General Terms and Conditions. The General Terms and Conditions are part of this agreement. (b) The Recipient acknowledges that it has knowledge of the General Terms and Conditions. Recipient also states that it is required to comply with all applicable Federal laws and regulations including, but not limited to, the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200); National Environmental Policy Act (NEPA) (42 U.S.C. § 4321 et seq.); and Build America, Buy America Act (BIL, div. G §§ 70901-27). (c) The Recipient acknowledges that the General Terms and Conditions impose obligations on the Recipient and that the Recipient’s non-compliance with the General Terms and Conditions may result in remedial action, termination of the SS4A Grant, disallowing costs incurred for the Project, requiring the Recipient to refund to the FHWA the SS4A Grant, and reporting the non-compliance in the Federal-government-wide integrity and performance system. EXHIBIT A TO RESOLUTION 2024-122 Page 91 Item 7. 3 of 19 ARTICLE 2 APPLICATION, PROJECT, AND AWARD 2.1 Application. Application Title: Fort Collins Citywide Arterial Street Low Stress Bike Network Application Date: July 10, 2023 2.2 Award Amount. SS4A Grant Amount: $964,480.00 2.3 Federal Obligation Information. Federal Obligation Type: Multiple Obligation Condition Table Phase the Project Allocation of the SS4A Grant Obligation Condition Base Phase: Planning $15,000 (NEPA completed on July 26, 2024) EXHIBIT A TO RESOLUTION 2024-122 Page 92 Item 7. 4 of 19 Obligation Condition Table Phase the Project Allocation of the SS4A Grant Obligation Condition Phase 1: Planning and Final Design $800,760 The Recipient shall not expend any funds (Federal or non-Federal) for, seek reimbursement of eligible costs, or otherwise begin any part of the final design and construction of an Implementation Project unless and until: (1) The requirements of the National Environmental Policy Act (42 U.S.C. § 4321 et seq.) (“NEPA”), Section 106 of the National Historic Preservation Act (16 U.S.C. § 470f) (“NHPA”), and any other applicable environmental laws and regulations have been met; and (2) FHWA, or a State with applicable NEPA Assignment authority, has approved the NEPA document for the Project and provided the Recipient with a written notice that the environmental review process is complete; and (3) FHWA has obligated additional funds for this phase and notified the Recipient in writing that the Recipient may proceed to the next activity after NEPA approval, and the Recipient has acknowledged receipt in writing of FHWA’s notification. Recipient shall not proceed with any such activities until (2) and (3) as described in this section are met. Costs that are incurred before (2) and (3) as described in this section are met are not allowable costs under this agreement. Extent of activities that are permissible before NEPA is complete are those activities constituting “preliminary design” as specified in FHWA Order 6640.1A. EXHIBIT A TO RESOLUTION 2024-122 Page 93 Item 7. 5 of 19 Obligation Condition Table Phase the Project Allocation of the SS4A Grant Obligation Condition Option Phase 2: Construction $148,720 The Recipient shall not expend any funds (Federal or non-Federal) for, seek reimbursement of eligible costs, or otherwise begin any part of the construction or final design and construction of an Implementation Project unless and until: (1) The requirements of the National Environmental Policy Act (42 U.S.C. § 4321 et seq.) (“NEPA”), Section 106 of the National Historic Preservation Act (16 U.S.C. § 470f) (“NHPA”), and any other applicable environmental laws and regulations have been met; and (2) FHWA, or a State with applicable NEPA Assignment authority, has approved the NEPA document for the Project and provided the Recipient with a written notice that the environmental review process is complete; and (3) FHWA has obligated additional funds for this phase and notified the Recipient in writing that the Recipient may proceed to the next activity after NEPA approval, and the Recipient has acknowledged receipt in writing of FHWA’s notification. Recipient shall not proceed with any such activities until (2) and (3) as described in this section are met. Costs that are incurred before (2) and (3) as described in this section are met are not allowable costs under this agreement. Extent of activities that are permissible before NEPA is complete are those activities constituting “preliminary design” as specified in FHWA Order 6640.1A. 2.4 Budget Period. Budget Period: See Block 6 of Page 1 2.5 Grant Designation. Designation: Planning and Demonstration EXHIBIT A TO RESOLUTION 2024-122 Page 94 Item 7. 6 of 19 ARTICLE 3 SUMMARY PROJECT INFORMATION 3.1 Summary of Project’s Statement of Work. The bikeway study will evaluate best ways to retrofit twenty centerline miles with separated bike lanes, creating dedicated space for vulnerable road users. The study will also explore the feasibility of intersection improvements such as protected intersections and roundabouts. Elements of the bikeway study include (1) public and stakeholder engagement to understand barriers to active transportation on the corridors and where the public’s greatest needs are on these corridors; (2) corridor safety audits to determine specific crash patterns and infrastructure that reduce the risk of bike and pedestrian crashes; and (3) data analysis and countermeasure selection that uses low-cost and high impact strategies to reduce roadway fatalities and serious injuries. Through the study we will identify priority corridors where additional public engagement will be conducted and additional concepts will be developed in preparation for a future Safe Streets and Roads for All implementation grant application. The pilot project will test temporary separated bike lane protection measures on Centre Ave. between Centre Dr./Bay Dr. and Worthington Cir. These measures are aimed at providing a safe route for vulnerable users and to slow motorist speeds. Temporary flexible posts and curbing will be added to a corridor to test impacts on crashes among vehicles and vulnerable road users, bike lane usage, and vehicular speeds. Before and after testing will provide data aimed to inform citywide initiatives to reduce roadway fatalities and serious injuries for vulnerable road users. The project will be completed in three phases. Since NEPA was completed on July 26, 2024, the Base Phase begins the planning work, which is the bikeway study. Phase 1: Planning and final design of the demonstration activities. NEPA was approved by FHWA Colorado Division. Phase 2: Demonstration construction, evaluation. 3.2 Project’s Estimated Schedule. Demonstration Activity Schedule Milestone Schedule Date Planned NEPA Completion Date: Completed on July 26, 2024 Planned Construction Start Date November 1, 2024 Planned Evaluation Period End Date: April 30, 2026 Planned SS4A Final Report Date: May 31, 2026 Supplemental Planning Schedule Milestone Schedule Date Planned NEPA Completion Date: Completed on July 26, 2024 Planned Draft Plan Completion Date: May 15, 2025 Planned Final Plan Completion Date: July 15, 2025 Planned Final Plan Adoption Date: September 30, 2025 Planned SS4A Final Report Date: May 31, 2026 EXHIBIT A TO RESOLUTION 2024-122 Page 95 Item 7. 7 of 19 3.3 Project’s Estimated Costs. (a) Eligible Project Costs Eligible Project Costs SS4A Grant Amount: $964,480 Other Federal Funds: - State Funds: $241,120 Local Funds: - In-Kind Match: - Other Funds: - Total Eligible Project Cost: $1,205,600 (b) Cost Classification Table – Planning and Demonstration Grants with demonstration activities and Implementation Grants Only Cost Classification Total Costs Non-SS4A Previously Incurred Costs Eligible Costs Administrative and legal expenses $217,889 - $217,889 Other architectural and engineering fees $466,448 - $466,448 Site work $185,900 - $185,900 Miscellaneous $94,490 - $94,490 Contingency $240,873 - $240,873 Project Total $1,205,600 - $1,205,600 (c) Indirect Costs Indirect costs are allowable under this Agreement in accordance with 2 CFR part 200 and the Recipient’s approved Budget Application. In the event the Recipient’s indirect cost rate changes, the Recipient will notify FHWA of the planned adjustment and provide supporting documentation for such adjustment. This Indirect Cost provision does not operate to waive the limitations on Federal funding provided in this document. The Recipient’s indirect costs are allowable only insofar as they do not cause the Recipient to exceed the total obligated funding. ARTICLE 4 RECIPIENT INFORMATION 4.1 Recipient Contact(s). Dana Hornkohl Director, Civil Engineering City of Fort Collins EXHIBIT A TO RESOLUTION 2024-122 Page 96 Item 7. 8 of 19 281 N. College Ave., Fort Collins, CO 80524 (970) 416-2719 dhornkohl@fcgov.com 4.2 Recipient Key Personnel. Name Title or Position Cortney Geary Manager, Transportation Planning Jeff Usher Project Manager, Engineering 4.3 USDOT Project Contact(s). Safe Streets and Roads for All Program Manager Federal Highway Administration Office of Safety HSSA-1, Mail Stop: E71-117 1200 New Jersey Avenue, S.E. Washington, DC 20590 202-366-2822 SS4A.FHWA@dot.gov and Agreement Officer (AO) Federal Highway Administration Office of Acquisition and Grants Management HCFA-33, Mail Stop E62-310 1200 New Jersey Avenue, S.E. Washington, DC 20590 202-493-2402 HCFASS4A@dot.gov and Division Administrator – Colorado Agreement Officer’s Representative (AOR) 12300 W. Dakota Avenue, Suite 180 Lakewood, CO 80228 CO-DIV@dot.gov and Ajin Hu FHWA Colorado Division Office Lead Point of Contact Grants Program Manager 12300 W. Dakota Avenue, Suite 180 Lakewood, CO 80228 (720) 963-3071 ajin.hu@dot.gov and EXHIBIT A TO RESOLUTION 2024-122 Page 97 Item 7. 9 of 19 Dahir Egal FHWA Colorado Division Office Lead Point of Contact Division Safety Engineer 12300 W. Dakota Avenue, Suite 180 Lakewood, CO 80228 (720) 963-3011 dahir.egal@dot.gov ARTICLE 5 USDOT ADMINISTRATIVE INFORMATION 5.1 Office for Subaward and Contract Authorization. USDOT Office for Subaward and Contract Authorization: FHWA Office of Acquisition and Grants Management SUBAWARDS AND CONTRACTS APPROVAL Note: See 2 CFR § 200.331, Subrecipient and contractor determinations, for definitions of subrecipient (who is awarded a subaward) versus contractor (who is awarded a contract). Note: Recipients with a procurement system deemed approved and accepted by the Government or by the Agreement Officer (the “AO”) are exempt from the requirements of this clause. See 2 CFR 200.317 through 200.327. Note: This clause is only applicable to grants that do not include construction. In accordance with 2 CFR 200.308(c)(6), unless described in the application and funded in the approved award, the Recipient must obtain prior written approval from the AO for the subaward, transfer, or contracting out of any work under this award above the Simplified Acquisition Threshold. This provision does not apply to the acquisition of supplies, material, equipment, or general support services. Approval will be issued through written notification from the AO or a formal amendment to the Agreement. The following subawards and contracts are currently approved under the Agreement by the AO. This list does not include supplies, material, equipment, or general support services which are exempt from the pre-approval requirements of this clause. NOTE: For agreements with an effective date after October 1, 2024, this clause will conform with the revised 2 CFR 200.308(f). 5.2 Reimbursement Requests (a) The Recipient may request reimbursement of costs incurred within the budget period of this agreement if those costs do not exceed the amount of funds obligated and are allowable under the applicable cost provisions of 2 C.F.R. Part 200, Subpart E. The Recipient shall not request reimbursement more frequently than monthly. (b) The Recipient shall use the DELPHI iSupplier System to submit requests for reimbursement to the payment office. When requesting reimbursement of costs incurred or credit for cost share incurred, the Recipient shall electronically submit supporting cost detail with the SF-270 (Request for Advance or Reimbursement) or SF-271 (Outlay Report and Request for Reimbursement for Construction Programs) to clearly document all costs incurred. (c) The Recipient’s supporting cost detail shall include a detailed breakout of all costs incurred, including direct labor, indirect costs, other direct costs, travel, etc., and the Recipient shall identify the Federal share and the EXHIBIT A TO RESOLUTION 2024-122 Page 98 Item 7. 10 of 19 Recipient’s share of costs. If the Recipient does not provide sufficient detail in a request for reimbursement, the Agreement Officer’s Representative (the “AOR”) may withhold processing that request until the Recipient provides sufficient detail. (d) The USDOT shall not reimburse costs unless the AOR reviews and approves the costs to ensure that progress on this agreement is sufficient to substantiate payment. (e) In the rare instance the Recipient is unable to receive electronic funds transfers (EFT), payment by EFT would impose a hardship on the Recipient because of their inability to manage an account at a financial institution, and/or the Recipient is unable to use the DELPHI iSupplier System to submit their requests for disbursement, the FHWA may waive the requirement that the Recipient use the DELPHI iSupplier System. The Recipient shall contact the Division Office Lead Point of Contact for instructions on and requirements related to pursuing a waiver. (f) The requirements set forth in these terms and conditions supersede previous financial invoicing requirements for Recipients. ARTICLE 6 SPECIAL GRANT TERMS 6.1 SS4A funds must be expended within five years after the grant agreement is executed and DOT obligates the funds, which is the budget period end date in section 10.3 of the Terms and Conditions and section 2.4 in this agreement. 6.2. The Recipient demonstrates compliance with civil rights obligations and nondiscrimination laws, including Titles VI of the Civil Rights Act of 1964, the Americans with Disabilities Act (ADA), and Section 504 of the Rehabilitation Act, and accompanying regulations. Recipients of Federal transportation funding will also be required to comply fully with regulations and guidance for the ADA, Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, and all other civil rights requirements. 6.3 SS4A Funds will be allocated to the Recipient and made available to the Recipient in accordance with FHWA procedures. 6.4 The Recipient of a Planning and Demonstration Grant acknowledges that the Supplemental Action Plan will be made publicly available and agrees that it will publish the final Supplemental Action Plan on a publicly available website. 6.5 The Recipient of a Planning and Demonstration Grant that involves a demonstration activity agrees to provide an assessment of each demonstration activity and update the existing Action Plan, which will incorporate the information gathered in the Action Plan’s list of projects or strategies and/or inform another part of the existing Action Plan. The Recipient also agrees that demonstration activities are temporary in nature and must be removed and/or ended following the conclusion of the project if the assessment of the demonstration activities does not affirm that the activities provide safety benefits. 6.6 The Recipient acknowledges that it is required to conduct certain environmental analyses and to prepare and submit to FHWA, or State with applicable NEPA Assignment authority, documents required under NEPA, and other applicable environmental statutes and regulations before the Government will obligate the funds in this agreement. NEPA for demonstration work has been approved by FHWA Colorado Division. 6.7 The Government’s execution of this agreement does not in any way constitute pre-approval or waiver of any of the regulations imposed upon Recipient under the applicable Federal rules, regulations and laws regarding SS4A projects undertaken in accordance with the terms and conditions of this agreement. EXHIBIT A TO RESOLUTION 2024-122 Page 99 Item 7. 11 of 19 The Recipient shall comply with all applicable Federal requirements before incurring any costs under this agreement. 6.8 There are no other special grant requirements. EXHIBIT A TO RESOLUTION 2024-122 Page 100 Item 7. 12 of 19 ATTACHMENT A PERFORMANCE MEASUREMENT INFORMATION Study Area: Centre Avenue from Worthington Circle to Bay Drive, Fort Collins, CO 80526 Baseline Measurement Date: April 22, 2024 Baseline Report Date: June 22,2024 Table 1: Performance Measure Table Measure Category and Description Measurement Frequency and Reporting Deadline Safety Performance Fatalities: Total annual fatalities in the project location(s) Annually and within 120 days after the end of the period of performance Safety Performance Serious Injuries: Total annual serious injuries in the project location(s) [if available] Annually and within 120 days after the end of the period of performance Safety Performance Crashes by Road User Category: Total annual crashes in the project location(s) broken out by types of roadway users involved (e.g., pedestrians, bicyclists, motorcyclist, passenger vehicle occupant, commercial vehicle occupant) Annually and within 120 days after the end of the period of performance Equity Percent of Funds to Underserved Communities: Funding amount (of total project amount) benefitting underserved communities, as defined by USDOT Within 120 days after the end of the period of performance Costs Project Costs: Quantification of the cost of each eligible project carried out using the grant Within 120 days after the end of the period of performance Outcomes and Benefits Quantitative Project Benefits: Quantification of evidence-based projects or strategies implemented (e.g., miles of sidewalks installed, number of pedestrian crossings upgraded, etc.) Within 120 days after the end of the period of performance EXHIBIT A TO RESOLUTION 2024-122 Page 101 Item 7. 13 of 19 Measure Category and Description Measurement Frequency and Reporting Deadline Outcomes and Benefits Qualitative Project Benefits: Qualitative description of evidence-based projects or strategies implemented (e.g., narrative descriptions, testimonials, high-quality before and after photos, etc.) Within 120 days after the end of the period of performance Outcomes and Benefits Project Location(s): GIS/geo coordinate information identifying specific project location(s) Within 120 days after the end of the period of performance Lessons Learned and Recommendations Lessons Learned and Recommendations: Description of lessons learned and any recommendations relating to future projects or strategies to prevent death and serious injury on roads and streets. Within 120 days after the end of the period of performance EXHIBIT A TO RESOLUTION 2024-122 Page 102 Item 7. 14 of 19 ATTACHMENT B CHANGES FROM APPLICATION Describe all material differences between the scope, schedule, and budget described in the application and the scope, schedule, and budget described in Article 3. The purpose of Attachment B is to clearly and accurately document any differences in scope, schedule, and budget to establish the parties’ knowledge and acceptance of those differences. See Article 11 for the Statement of Work, Schedule, and Budget Changes. If there are no changes, please insert “N/A” in Section 3.3 of the table. Scope: For the bikeway study, though not stated explicitly in the grant application, we will identify priority corridors where additional public engagement will be conducted and additional concepts will be developed in preparation for a future Safe Streets and Roads for All implementation grant application. This more in-depth effort combined with the ability to implement the pilot project with in-house crews as opposed to contractors led to a significant shift in costs between the bikeway study and the pilot project between the application and Article 3. There are no other material differences between the grant application and Article 3. Schedule: The timing for the pilot project before study and public engagement shifted from March – April 2024 to April – May 2024. The timing for the bikeway study public engagement shifted from March – April 2024 to being ongoing during the bikeway study from August 2024 – May 2025. The timing for the pilot project site work shifted from June – August 2024 to August 2024. Study documentation shifted from May – June 2025 to April – May, 2026 for the pilot project and August – September, 2025 for the bikeway study and amended Vision Zero Action Plan adoption. Budget: Total project costs and funding source (federal versus non-federal) are identical to that presented in the application. There are no changes. Based on changes with in-house crew completing site work for demonstration activity, the City obtaining a provisional indirect cost rate greater than the de minimis rate applied to cost basis in the application and having report preparation and increased community engagement being completed by third-party service providers, budgeted costs per cost category shifted accordingly. As presented per 3.3. (b) Cost Classification Table: Administrative expenses correspond to increased indirect costs; Other architectural and engineering fees include project management, analysis and evaluation over countermeasures, and corridor planning; Site work includes in-house labor and materials for the demonstration activity; and Miscellaneous includes community engagement activities. EXHIBIT A TO RESOLUTION 2024-122 Page 103 Item 7. 15 of 19 ATTACHMENT C RACIAL EQUITY AND BARRIERS TO OPPORTUNITY 1. Efforts to Improve Racial Equity and Reduce Barriers to Opportunity. The Recipient states that rows marked with “X” in the following table align with the application: A racial equity impact analysis has been completed for the Project. (Identify a report on that analysis or, if no report was produced, describe the analysis and its results in the supporting narrative below.) The Recipient or a project partner has adopted an equity and inclusion program/plan or has otherwise instituted equity-focused policies related to project procurement, material sourcing, construction, inspection, hiring, or other activities designed to ensure racial equity in the overall delivery and implementation of the Project. (Identify the relevant programs, plans, or policies in the supporting narrative below.) The Project includes physical-barrier-mitigating land bridges, caps, lids, linear parks, and multimodal mobility investments that either redress past barriers to opportunity or that proactively create new connections and opportunities for underserved communities that are underserved by transportation. (Identify the relevant investments in the supporting narrative below.) The Project includes new or improved walking, biking, and rolling access for individuals with disabilities, especially access that reverses the disproportional impacts of crashes on people of color and mitigates neighborhood bifurcation. (Identify the new or improved access in the supporting narrative below.) The Project includes new or improved freight access to underserved communities to increase access to goods and job opportunities for those underserved communities. (Identify the new or improved access in the supporting narrative below.) X The Recipient has taken other actions related to the Project to improve racial equity and reduce barriers to opportunity, as described in the supporting narrative below. The Recipient has not yet taken actions related to the Project to improve racial equity and reduce barriers to opportunity but intends to take relevant actions described in the supporting narrative below. The Recipient has not taken actions related to the Project to improve racial equity and reduce barriers to opportunity and will not take those actions under this award. 2. Supporting Narrative. Public and stakeholder engagement activities will be a component of scope of work for the bikeway study and pilot project, which incorporates the City working with partners to engage the underserved community members that are generally underrepresented in public engagement. Partners in combination with City led outreach efforts through social media, mail flyers and other means will support engaging members of the underserved communities within the project areas, thereby promoting equitable solutions to the challenges in these study areas. EXHIBIT A TO RESOLUTION 2024-122 Page 104 Item 7. 16 of 19 ATTACHMENT D CLIMATE CHANGE AND ENVIRONMENTAL JUSTICE IMPACTS 1. Consideration of Climate Change and Environmental Justice Impacts. The Recipient states that rows marked with “X” in the following table align with the application: X The Project directly supports a Local/Regional/State Climate Action Plan that results in lower greenhouse gas emissions. (Identify the plan in the supporting narrative below.) The Project directly supports a Local/Regional/State Equitable Development Plan that results in lower greenhouse gas emissions. (Identify the plan in the supporting narrative below.) The Project directly supports a Local/Regional/State Energy Baseline Study that results in lower greenhouse gas emissions. (Identify the plan in the supporting narrative below.) The Recipient or a project partner used environmental justice tools, such as the EJScreen, to minimize adverse impacts of the Project on environmental justice communities. (Identify the tool(s) in the supporting narrative below.) The Project supports a modal shift in freight or passenger movement to reduce emissions or reduce induced travel demand. (Describe that shift in the supporting narrative below.) The Project utilizes demand management strategies to reduce congestion, induced travel demand, and greenhouse gas emissions. (Describe those strategies in the supporting narrative below.) The Project incorporates electrification infrastructure, zero-emission vehicle infrastructure, or both. (Describe the incorporated infrastructure in the supporting narrative below.) The Project supports the installation of electric vehicle charging stations. (Describe that support in the supporting narrative below.) The Project promotes energy efficiency. (Describe how in the supporting narrative below.) The Project serves the renewable energy supply chain. (Describe how in the supporting narrative below.) The Project improves disaster preparedness and resiliency (Describe how in the supporting narrative below.) The Project avoids adverse environmental impacts to air or water quality, wetlands, and endangered species, such as through reduction in Clean Air Act criteria pollutants and greenhouse gases, improved stormwater management, or improved habitat connectivity. (Describe how in the supporting narrative below.) The Project repairs existing dilapidated or idle infrastructure that is currently causing environmental harm. (Describe that infrastructure in the supporting narrative below.) The Project supports or incorporates the construction of energy- and location- efficient buildings. (Describe how in the supporting narrative below.) The Project includes recycling of materials, use of materials known to reduce or reverse carbon emissions, or both. (Describe the materials in the supporting narrative below.) EXHIBIT A TO RESOLUTION 2024-122 Page 105 Item 7. 17 of 19 The Recipient has taken other actions to consider climate change and environmental justice impacts of the Project, as described in the supporting narrative below. The Recipient has not yet taken actions to consider climate change and environmental justice impacts of the Project but will take relevant actions described in the supporting narrative below. The Recipient has not taken actions to consider climate change and environmental justice impacts of the Project and will not take those actions under this award. 2. Supporting Narrative. Primary goals of the Action Plan include prioritizing active modes and reducing fatalities and serious injuries for vulnerable road users. The projects serve to evaluate countermeasures through data analysis or demonstration activities to understand countermeasures that expect to improve comfort for a wide variety of active mode users, while maximizing multimodal safety. Improved comfort supports a mode shift to reduce motor vehicle trips, resulting in lower greenhouse gas emissions. This aligns with the City’s adopted Our Climate Future Plan initiative to reduce greenhouse gas emissions by 80% relative to 2005 levels by 2030. EXHIBIT A TO RESOLUTION 2024-122 Page 106 Item 7. 18 of 19 ATTACHMENT E LABOR AND WORKFORCE 1. Efforts to Support Good-Paying Jobs and Strong Labor Standards The Recipient states that rows marked with “X” in the following table align with the application: The Recipient demonstrate, to the full extent possible consistent with the law, an effort to create good-paying jobs with the free and fair choice to join a union and incorporation of high labor standards. (Identify the relevant agreements and describe the scope of activities they cover in the supporting narrative below.) The Recipient or a project partner has adopted the use of local and economic hiring preferences in the overall delivery and implementation of the Project. (Describe the relevant provisions in the supporting narrative below.) The Recipient or a project partner has adopted the use of registered apprenticeships in the overall delivery and implementation of the Project. (Describe the use of registered apprenticeship in the supporting narrative below.) The Recipient or a project partner will provide training and placement programs for underrepresented workers in the overall delivery and implementation of the Project. (Describe the training programs in the supporting narrative below.) The Recipient or a project partner will support free and fair choice to join a union in the overall delivery and implementation of the Project by investing in workforce development services offered by labor-management training partnerships or setting expectations for contractors to develop labor-management training programs. (Describe the workforce development services offered by labor-management training partnerships in the supporting narrative below.) The Recipient or a project partner will provide supportive services and cash assistance to address systemic barriers to employment to be able to participate and thrive in training and employment, including childcare, emergency cash assistance for items such as tools, work clothing, application fees and other costs of apprenticeship or required pre-employment training, transportation and travel to training and work sites, and services aimed at helping to retain underrepresented groups like mentoring, support groups, and peer networking. (Describe the supportive services and/or cash assistance provided to trainees and employees in the supporting narrative below.) The Recipient or a project partner has documented agreements or ordinances in place to hire from certain workforce programs that serve underrepresented groups. (Identify the relevant agreements and describe the scope of activities they cover in the supporting narrative below.) EXHIBIT A TO RESOLUTION 2024-122 Page 107 Item 7. 19 of 19 The Recipient or a project partner participates in a State/Regional/Local comprehensive plan to promote equal opportunity, including removing barriers to hire and preventing harassment on work sites, and that plan demonstrates action to create an inclusive environment with a commitment to equal opportunity, including: a. affirmative efforts to remove barriers to equal employment opportunity above and beyond complying with Federal law; b. proactive partnerships with the U.S. Department of Labor’s Office of Federal Contract Compliance Programs to promote compliance with EO 11246 Equal Employment Opportunity requirements and meet the requirements as outlined in the Notice of Funding Opportunity to make good faith efforts to meet the goals of 6.9 percent of construction project hours being performed by women and goals that vary based on geography for construction work hours and for work being performed by people of color; c. no discriminatory use of criminal background screens and affirmative steps to recruit and include those with former justice involvement, in accordance with the Fair Chance Act and equal opportunity requirements; d. efforts to prevent harassment based on race, color, religion, sex, sexual orientation, gender identity, and national origin; e. training on anti-harassment and third-party reporting procedures covering employees and contractors; and f. maintaining robust anti-retaliation measures covering employees and contractors. (Describe the equal opportunity plan in the supporting narrative below.) The Recipient has taken other actions related to the Project to create good- paying jobs with the free and fair choice to join a union and incorporate strong labor standards. (Describe those actions in the supporting narrative below.) X The Recipient has not yet taken actions related to the Project to create good- paying jobs with the free and fair choice to join a union and incorporate strong labor standards but, before beginning construction of the project, will take relevant actions described in the supporting narrative below. The Recipient has not taken actions related to the Project to improving good- paying jobs and strong labor standards and will not take those actions under this award. 2. Supporting Narrative. Although the City has not yet taken actions related to creating good paying jobs with free and fair choice to join a union and incorporate strong labor standards the following actions will be taken in compliance with the Code of Federal Regulations 2 CFR 200, which includes, but is not limited to: Equal Employment Opportunity Small and Minority Businesses, Women’s Businesses and Labor Surplus Area firms Certified Payroll Davis Bacon Wages Brooks Act Domestic Preference – Build America/Buy America EXHIBIT A TO RESOLUTION 2024-122 Page 108 Item 7. - 1 - ORDINANCE NO. 145, 2024 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING SUPPLEMENTAL APPROPRIATIONS FOR PROJECTS FUNDED THROUGH THE SAFE STREETS AND ROADS FOR ALL GRANT PROGRAM A. FC Moves in collaboration with Traffic Operations, Engineering, and Streets applied to the Federal Highway Administration's Fiscal Year 2023 (FY23) Safe Streets and Roads for All (SS4A) grant program to support FC Moves in expanding on the City's current Active Modes Plan (to achieve 50% active mode share and eliminate active modes traffic deaths and serious injuries by 2032) and Vision Zero Plan (to eliminate traffic deaths or serious injuries by 2032), specifically through a bikeway study and demonstration activity. The projects made possible by this grant also align with the City’s adopted Our Climate Future Plan initiative to reduce greenhouse gas emissions by 80% relative to 2005 levels by 2030. B. The bikeway study will identify specific safety concerns and potential countermeasures to gain understanding of the feasibility and network impacts of lane reductions on the arterial network and will include: a. Public and stakeholder engagement to understand barriers to active transportation on the corridors bounded by College Avenue, Horsetooth Road, Overland Trail, and Laporte Avenue; b. Corridor safety audits to identify crash patterns and infrastructure that reduces the risk of bike and pedestrian crashes; and c. Data analysis and countermeasure selection. C. The demonstration activity will test the effectiveness of temporary vertical protection, flexible posts and curbing, along Centre Avenue, between Centre Drive/Bay Drive and Worthington Circle. D. Information from the study and data from the demonstration activity will inform future projects citywide. E. The FY23 SS4A grant program requires a 20% non-federal match. FC Moves requested matching funds under the Colorado Department of Local Affairs (DOLA) Local Match (LOMA) grant program. F. Both the Federal Highway Administration and DOLA responded favorably to the requests for funds, with $964,480 being award under the FY23 SS4A grant program for the City’s application titled “Fort Collins Citywide Arterial Street Low Stress Bike Network” and $241,120 being awarded under DOLA's LOMA grant program for the City’s application project titled “High Injury Network.” The total of the two grants, $1,205,600, is anticipated to fully fund the project costs for both the bike study and demonstration activity. Page 109 Item 7. - 2 - G. The Federal Highway Administration has proposed an intergovernmental agreement (“IGA”) to enable the City to receive grant funding to support the bike study and the demonstration activity. H. The LOMA grant award provides that by accepting the LOMA funding from DOLA, the City agrees to all terms and conditions of that grant, including use of the $241,120 as non-federal match to the FY23 SS4A grant. I. This Ordinance will appropriate the $964,480 in federal funds from the FY23 SS4A grant program and $241,120 in state funds from the LOMA grant program. J. Both the FY23 SS4A award from the Federal Highway Administration and LOMA award from DOLA are reimbursement type awards, meaning Capital Projects Fund expenses will be reimbursed up to $1,205,600. K. Article V, Section 9 of the City Charter permits the City Council, upon recommendation of the City Manager, to make a supplemental appropriation by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriation, in combination with all previous appropriations for that fiscal year, do not exceed the current estimate of actual and anticipated revenues and all other funds to be received during the fiscal year. L. The City Manager has recommended the appropriation described herein and determined that this appropriation is available and previously unappropriated from the Capital Projects Fund and will not cause the total amount appropriated in the Capital Projects Fund to exceed the current estimate of actual and anticipated revenues and all other funds to be received in this Fund during this fiscal year. M. Article V, Section 11 of the City Charter authorizes the City Council to designate in the ordinance when appropriating funds for federal, state and private grants and donations that such funds shall not lapse until the until the earlier of the expiration of the federal, state or private grant or donation or the city's expenditure of all funds received from such grant or donation. N. The City Council wishes to designate the appropriations herein for the FY23 SS4A grant and the DOLA LOMA grant as appropriations that shall not lapse at the end of the fiscal year in which the appropriation is made, but continue until the earlier of the expiration of the grants or the city's expenditure of all funds received from the grants. O. City Code Section 23-304 requires construction projects estimated to cost more than $250,000 to include an amount equal to one percent (1%) of the estimated cost of such project for works of art. The projects made possible through the grants in this Ordinance may involve construction estimated to cost more than $250,000, but all of the funds appropriated in this Ordinance are ineligible for such purposes due to restrictions placed on them by the Federal Highway Administration and DOLA, the sources of these funds. Page 110 Item 7. - 3 - P. These appropriations benefit public health, safety and welfare of the people of Fort Collins and serve the public purpose of improving transportation infrastructure within the City and accommodating multimodal transportation and safety. In light of the foregoing recitals, which the Council hereby makes and adopts as determinations and findings, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated from new revenue or other funds in the Capital Projects Fund the sum of ONE MILLION TWO HUNDRED FIVE THOUSAND SIX HUNDRED DOLLARS: ($1,205,600) to be expended in the Capital Projects Fund for the bike study and demonstration activity described herein and made possible through the Safe Streets and Roads for All grant program. Introduced, considered favorably on first reading on October 15, 2024, and approved on second reading for final passage on November 4, 2024. ______________________________ Mayor ATTEST: ______________________________ City Clerk Effective Date: November 14, 2024 Approving Attorney: Heather N. Jarvis Page 111 Item 7. March 13, 2024 The Honorable Jeni Arndt, Mayor City of Fort Collins PO Box 580 Fort Collins, CO 80522 RE: LOMA-23009 – Fort Collins - Local Match Initiative 2022 - Grant Award Agreement and Next Steps Dear Mayor Arndt: The Colorado Department of Local Affairs (DOLA) has verified that you have met all required conditions of our Award Letter dated December 29, 2023 and we are now prepared to enter into this Grant Award Agreement. As DOLA’s Executive Director, I am pleased to confirm your award of $ 241,120.00 . Your submitted application, your Award Letter, and this Grant Award Agreement serve as your agreement with the State. Grantees of these funds do not require any additional contracts. By accepting the LOMA funding from DOLA, you are agreeing to spend the funds as non-federal match for the federal IIJA Program Safe Streets and Roads For All (SS4A) for its grant for your project, High Injury Network (HIN), and are agreeing to the attached Terms & Conditions. Upon receipt of your fully executed federal IIJA Program grant agreement, you must request your entire LOMA funding amount in an advance request using DOLA’s online grants portal system and upload an electronic copy of your fully executed federal IIJA grant agreement. The advance request should be submitted as soon as possible after receipt of this Grant Award Agreement and the fully executed federal IIJA Program grant agreement. The advance request form, as well as the required reporting form, are included along with this grant award agreement. Thank you for your interest in the Local Match Initiative 2022 program. Please contact Snow Staples, LOMA Program Manager for DOLA, at snow.staples@state.co.us with any questions. Sincerely, Maria De Cambra Executive Director cc: Kerri Ishmael, Senior Analyst, Responsible Administrator Snow Staples, DOLA LOMA Program Manager Chris La May, DOLA Regional Manager Governor Jared S. Polis | Maria De Cambra, Executive Director | Chantal Unfug, Division Director 1313 Sherman Street, Room 521, Denver, CO 80203 P 303.864.7720 TDD/TTY 303.864.7758 www.dola.colorado.gov LOMA CTGG1 NLAA 202400003653 Page 112 Item 7. In accordance with §24-30-202 C.R.S., this Agreement is not valid until signed and dated below by the State Controller or an authorized delegate. STATE CONTROLLER Robert Jaros, CPA, MBA, JD ______________________________________________ By: Beulah Messick, Controller Delegate Effective Date:_______________________ CMS# 189657 VCUST# 14149 ADDR CN005 EFT DLG# LOMA-23009 THE REST OF THIS PAGE INTENTIONALLY LEFT BLANK Governor Jared S. Polis | Maria De Cambra, Executive Director | Chantal Unfug, Division Director 1313 Sherman Street, Room 521, Denver, CO 80203 P 303.864.7720 TDD/TTY 303.864.7758 www.dola.colorado.gov Page 113 Item 7. Local Match Initiative 2022 - Grant Award Terms & Conditions 1. Statutory Authority. C.R.S. 24-32-106(1)(c) 2. Funding Period: Effective Date through 12/31/2026 3. Use of Funds a.LOMA Grant funds may only be spent on eligible project costs associated with the Grantee’s awarded Infrastructure Investment and Jobs Act (IIJA) Program grant. Eligible expenses include but are not limited to: ■expenses that are reasonable, necessary and allocable to the IIJA-funded project using the LOMA grant funds as local match. b.Grantee counties, municipalities, special districts and federally recognized tribes, understand that any grant funds expended outside of the intent of the LOMA program must be returned to the Department of Local Affairs within 30 days of the ruling by DOLA of improper fund use. c.Grant funds expire 12/31/2026. Grantee counties, municipalities, special districts, and federally recognized tribes must not incur any expenses after 12/31/2026. d.Ineligible expenses include but are not limited to: any expenses not related to the completion of the IIJA-funded Project for which these Grant Funds are Local Match. 4. Documentation.Grantee shall retain documentation of all uses of the LOMA funds, including invoices, receipts, data and financial records, and any other documentation that establishes compliance for up to three (3) years after the final report is received and approved by DOLA. Such documentation shall be provided to DOLA or its duly authorized representatives upon request. 5. Monitoring. a.DOLA or the State of Colorado reserves the right to initiate detailed monitoring or auditing of any grantee at its sole discretion. b.The review shall provide assurance that the information self-reported by Grantee is accurate and complete, and identify unallowable or questionable expenditures for follow-up. When concerns are noted during the review process, the Grantee shall provide documentation of the expenditures or accounting practices to DOLA for verification. c.Funds spent outside of the stated LOMA program intent must be returned to DOLA within 30 days of identification by DOLA of improper use. 6. Financial Reporting. a.Grantee counties, municipalities, special districts, and federally recognized tribes must provide DOLA with a minimum of one interim report, as well as any other financial reports as requested by the Governor’s Office through DOLA, and one final report, upon the completed expense of the advance payment, detailing how the LOMA grant funds were spent. Invoices and proof of payment must be provided to support the expenditures. b.Grantee counties, municipalities, special districts, and federally recognized tribes must submit a final report upon the completion of the IIJA-funded Project. c.Any unspent funds must be returned to DOLA no later than 12/31/2026 and prior to submitting the final report. Unspent funds will be deobligated by DOLA. d.Grantee’s Final Report is due no later than 3/31/2027. 7.In the event of a conflict between the terms and conditions of the Grantee’s Application and the terms and conditions of this award agreement letter, the terms and conditions of this award agreement letter shall prevail. Page 114 Item 7. Dec 28, 2023 The Honorable Jeni Arndt, Mayor City of Fort Collins PO Box 580 Fort Collins, CO 80522 RE: LOMA-23009 – City of Fort Collins High Injury Network (HIN) - Local Match IIJA 2023 – Amended Conditional Grant Award and next steps Dear Mayor Arndt: The Department of Local Affairs was notified by the City of Fort Collins that they received a partial federal award from the Department of Transportation. The review committee initially recommended funding their request at the full amount of $1,322,900.00 but due to the partial federal award, the full amount requested is no longer needed. Based on the reduced federal award, the new match award amount is $241,120.00.These funds may be used as matching contributions solely for the described projects for the Citywide Arterial Street Low Stress Bike Network. Access to the LOMA grant funds is contingent upon your successful application resulting in a federal IIJA Program Award for DOT Safe Streets for All (SS4A). The LOMA grant funds are state funds, which may cause you to go to election to receive and spend these funds. You should confer with your legal and budget advisors to determine if such an election is necessary. Upon completion of the following conditions, a LOMA Grant Award Agreement will be executed: • Must receive a federal IIJA Program Award in the amount of $964,480.00. The LOMA award may be reduced if the federal award is less. • Must provide DOLA a copy of the federal award letter • Submit to DOLA documentation and materials outlining the specific uses and timeline for spending the funds provided by the appropriate federal agency. Please contact your regional manager, Chris La May, at 970.679.7679 for information on how to proceed. Per our program guidelines, this offer is valid for one year from the date of this Grant Award Letter. Sincerely, Maria De Cambra Executive Director cc: Courtney Geary, City of Fort Collins Kerri Ishmael, City of Fort Collins Kelly DiMartino, City of Fort Collins Chris La May, DOLA Regional Manager Wendy Hawthorne, Governor’s Office of Economic Recovery Alyssa Dinberg, Governor’s Office of Economic Recovery Governor Jared Polis | Maria De Cambra, Executive Director | Chantal Unfug, Division Director 1313 Sherman Street, Room 521, Denver, CO 80203 P 303.864.7720 TDD/TTY 303.864.7758 www.dola.colorado.gov Strengthening Colorado Communities Marirrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrra De Cambr Page 115 Item 7. !"# $%)**+, +-01023143056789:;9:1>)0100?010231430867;978907BCDEFGDF +KUNVSRWXNYWPZ[P\SQ]ZZS^R_`Ua[]b^Y\PQQScPRSW^PYd^WMWMNaZZ^\NPZe\PYPX^\UNfNTN`aeUgLbSYTWMNhPfNRYPRi_aZZ^\NMSfN\RNSWNTWMNgYZRS_WRj\WjRNgYfN_WXNYWSYTmRSYWVRPmRSXWPcNj_NTZPRQP\SQmPfNRYXNYW_WP_jVVPRWSQP\SQmPfNRYXNYWi_YPYZNNXNYWdMNYWMNoSRNSVVQo^YmT^RN\WQoWPWMNZNTNRSQmPfNRYXNYWZPRSZNTNRSQggk]pRPm^Y\QjTN\PjYW^N_rXjY^\^VSQ^W^N_r_VN\^SQT^_WR^\W_SYTZNTNRSQQoRN\PmY^sNTWR^cN_dMPMSSVVQoZPRSZNTNRSQggk]VRPmRSXWMSWRNnj^RN_SYPYZNTNRSQXSW\Mq[^YtWPggk][P\SQlSW\MujYT_vw\PR^YmXSWR^x €‚ƒy„…†‡…ˆ‰Š‹ƒˆ„ƒŒƒ† ‰Ž ƒ‰† ‹ƒŒˆ‘†Œ…’Šƒ| “…†…Œ „‰ ‘„…†}ƒ‡Ž‘†|”•}€’ƒ‰ …–ƒ„ƒ†”•}€‚‰ ƒ …–ƒ„ƒ† ƒ“‰…Š‰ „ƒŒŒƒŒ…†‘„ ƒ„—‘„ ‚ƒ‰ˆˆŠ…‡‰Ž‘† ‘’ƒ‰‡‡ƒˆ ƒ ˜DF6) 6›FDšž)6›DF !"# $%'£¤'(/ ¥( ¦(« 3¬« "- * !I I,, *I !#, !* ,I +, +"+! 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" ! #$ % &'$ ( ( . /0+1" )1+*23 ! ! ! 4 ( 5 6 *$ )**7 )*8* <@BCADEFGH>CIADJK@HHLB<A<D=:RUPOVRWXPWPOYQSWZRTPX[U\]UV^]YY_R]U`RaPR\]U\]aQSWQWSP]WUOPRYb]cQOTPR\TWcc[U]P]RadOQQY]TOP]WUa^]YYOY]VU^]PNWSRfTRR\ghiPNSRaNWY\QRSXR\RSOYj[aP]TRgh]U]P]OP]`R & /k 25 l k mn 5o0km51 +**0 #* +** +** p /. k m km5 mo 0m m1 ( @B:W[SQSWZRTP]cQYRcRUPOP]WU]\RUP]XbOU\QS]WS]P]vR_RURX]P]UV\]aQSWQWSP]WUOPRYb]cQOTPR\TWcc[U]P]RaWSTWccbYRVOTb]UXSOaPS[TP[SRd Page 122 Item 7. -./')0"9:4;<263=45>4?2@@A62BC>746DA;4523CE8C836DCE8F674GQORS ORTUVOWRTMJOP963428:3>@2Z:?245456\]BC>748:^8E_Y8E76`a8AbE6>428:c367428:8Y456378E2:ZB>4E2dG&)gi$j*(*'k(*-l$i)/')m-)/')0'$/l).')n:>4452334>Z68YC@>::2:ZoAE26Y@;D637E2A6?56456E>:D58?456CE8F674?2@@7E6>46:6?F8A38E?8E_Y8E76D6B W q W K u$l/)-v.&w*x.l)(&-v./)'$,))''k)g$ltu$l/)&))0*l)v.')0'$'k(*-l$i yzz { U U ~NM N963428:3>@2Z:?245456\58€6@ ‚6>D;4>493c367428:8Y456378E2:ZB>4E2dG*)*"37E2A62Y452323>:>::9>@CE8F674oB9@42 ;6>EA9432:Z@6 C5>36CE8F674o8EB9@42 C5>36CE8F674GŒ Ž ‘’’“”•–—˜‘Ž”Ž— ™ ™ Œ™’“™ ‘ ™ Ž™ š›Œ Ž‘ œ™ ™–Ž”Ž›—–— ”š”™–š•ž™ ”—›™›”Ž”–™’œ–™ ŸŽ—”™ŽŽ‘Ÿ‘— ™’ ™Ÿ¡ž›Œ Ž‘ œ›—–›ŒŸŒ–”•ž™ ” šš”™– —›•–—¢”¡Ÿ£¤ Page 123 Item 7. !"#$%&'()*+,'-+.'"/012314561708913:5641;<1=5>?1:;6@=01@1A;2;6>A;6@106A17>5;<1=5>?1:;B CD H IE CJ K FIL J IE Q IR T Q J Q U J H IL CK Q C IE IR Y"1:;36;13411A31:\5197>5;<1=5>=>319=5>?1:;]/01231913:5641BJFG H P E ^O_J DFR` N J Fa OP Q NN FC C Q GH b C c H K J J PQFC C P )h)'ij'.(+'Y"5101[2A;3;2;12k1A:613411A6A:0\9192A9l>56A7>5@19>7;<1=5>=>319=5>?1:;]m73>n=01231063;;<1o;2;12k)h$)rh)'%st.(u,v$h.('Y"1=5>?1:;193;25;92;1>71A:\@452A:137>5;<1=5>?1:;] Page 124 Item 7. ! !" # "$%&' !( !"""#)) *+,+-./0 )"1 ! 2!$# "$%34 %!( !"""#)#)) *+,+5.67899:;:<=>?@=A<BC>;:<=7E F E GH GIIJ KL G ! 0"!% 2""#'M././ !NO %P"Q %R *+"1! * U " (U1VW("U/M.X % *$% % 2""Y ) N" ! )% *%! '$2")!* 0!* 20 #0! ! ! !")! )!"*"%U'\!]! ^ [ "[ 2O "! __`O[WVT/a[b`XXOXTWcWRWX`O/[T1UVT1WVT/<A89e>=fghgijgk;DDmln Io HII KGpGIE F EKLH H E Iqr FGGLFsH sK tG Fuvvwxyuz{|}~€ |‚|}|wz„|€€|ƒ Gp‰nrp IqŠK tG F IG H p F U '.<AŒkg<A j=9k Ž n LG H ‘ IF tG F H IDDmlH G G G G EG GFGL G ‰Žnl’“E F GGq U '.<A@=;gB:Chg•<B;7FG K‰ŽnlHFFGF F– F sHIIE I —Ž Gp‰Žnlq˜ HII IGG p GF ™K EFš GH GqŠ F IG H p Fq U '.<A :=>?hg•<B;FG KIF– s IGG p GF s IG H p LE I I ‘ GI Hp GH GqŠ F IG q Page 125 Item 7. !"#$%&'($))* %+,-./.01'23' 4516&4'012 17895'6 :;<=>>?@?ABCDAEFG@H?DI J KL MN O Q V)!"W!XYS++$ +$#S*)XZ- W!R#,_`B?AI@a< b OLcd J )* %+,-.4'6 :1f'8895 '4516!SRR)+*S!R)S!X"Sh $SZ,)$)h#)U "S!'++,#RS*# !YWZ%#**)X*V$ W(V*V)3-Y*)%gS($))Y* +$ h#X)"#!S!R#S,SYY#Y*S!R)"$ %*V)55i'9 RS,7S*RV8$ ($! *#"#RS*# ! "SUS$X ""#!S!R#S,SYY#Y*S!R)jk$S!*'US$Xl#!X#RS*)Y*VS*'+#$)%)!*Y* mWS,#"-" $55i'9 RS,7S*RV+$ ($S%($S!*% !#)YU#*VYWRVS% R,WY#h),-Z-*V)e*S*)S!XVSYS""#$%)XS!XR !"#$%)XS($))%)!*U#*V*V)Y*S* R#S*)XU#*VWY) "*V Y)($S!*"W!XY.)2)SX*V)'Z h)e*S*)%)!* Page 126 Item 7. File Attachments for Item: 8. First Reading of Ordinance No. 146, 2024, Making a Supplemental Appropriation of Colorado Division of Criminal Justice Grant Revenues for Various Restorative Justice Services Programs. The purpose of this item is to appropriate grant revenue to fund Restorative Justice programs within Community Development and Neighborhood Services (“CDNS”). Additional grant funds in the amount of $13,000 have been awarded from the Colorado Division of Criminal Justice (“DCJ”) Juvenile Diversion fund for the continued operation of City Restorative Justice programs, including RESTORE for shoplifting offenses and Restorative Justice Conferencing for other offenses. The grant funds are in addition to a grant awarded to Restorative Justice Services earlier this year from DCJ in the amount of $40,428, for a total award of $53,428. The first $40,428 award was included in the Annual Adjustment Ordinance No. 134, 2024, was passed on Second Reading on October 1, 2024. No match is required and the grant period is July 1, 2024, to June 30, 2025. Page 127 City Council Agenda Item Summary – City of Fort Collins Page 1 of 2 October 15, 2024 AGENDA ITEM SUMMARY City Council STAFF Perrie McMillen, Manager, Neighborhood Services SUBJECT First Reading of Ordinance No. 146, 2024, Making a Supplemental Appropriation of Colorado Division of Criminal Justice Grant Revenues for Various Restorative Justice Services Programs. EXECUTIVE SUMMARY The purpose of this item is to appropriate grant revenue to fund Restorative Justice programs within Community Development and Neighborhood Services (“CDNS”). Additional grant funds in the amount of $13,000 have been awarded from the Colorado Division of Criminal Justice (“DCJ”) Juvenile Diversion fund for the continued operation of City Restorative Justice programs, including RESTORE for shoplifting offenses and Restorative Justice Conferencing for other offenses. The grant funds are in addition to a grant awarded to Restorative Justice Services earlier this year from DCJ in the amount of $40,428, for a total award of $53,428. The first $40,428 award was included in the Annual Adjustment Ordinance No. 134, 2024, was passed on Second Reading on October 1, 2024. No match is required and the grant period is July 1, 2024, to June 30, 2025. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION Restorative Justice Services and its three programs: RESTORE for shoplifting offenses, Restorative Justice Conferencing Program (RJCP), and Reflect Program for all other offenses; have been partially grant funded since 2000. The Council yearly accepts grant funds from the DCJ to support Restorative Justice Services. This grant helps fund young people referred to the program from the 8th Judicial District Attorney’s Office (“DA”) and for young people referred in lieu of a summons to the DAs Office. Since it began, Restorative Justice Services has provided a restorative justice alternative to more than 3,200 young people who committed chargeable offenses in our community. Restorative Justice is an alternative method of holding a young person accountable by facilitating a meeting with the responsible young person, the victim/victim representative, and members of the community to determine the harm done by the crime, and how to repair the harm. By identifying and repairing the harm caused by the crime, Criminal Justice Officials are optimistic that repeat offenses by young people will be reduced and the needs and concerns of the victims and affected community will be addressed. The programs help young people understand how family, friends, victims, and community are harmed by their actions and hold them accountable for the harm their action cause. The intention is that these young people will make better future decisions and not commit the same or similar crime again. Reducing future Page 128 Item 8. City Council Agenda Item Summary – City of Fort Collins Page 2 of 2 criminal behavior and keeping young people out of the justice system contribute positively to a safer , healthier community. Addressing the needs and concerns of those harmed by crime and community members also has a positive effect on the overall community health and safety. As part of the programs, young people and families are referred to appropriate community resources based on needs identified during program participation. CITY FINANCIAL IMPACTS The additional grant funding for 2024-25 in the amount of $13,000 to be appropriated and expended in the General Fund from Division of Criminal Justice, Juvenile Diversion Grants, provides funding for personnel to support the continuation of Restorative Justice programs. Funds are distributed to the City on a reimbursement basis. BOARD / COMMISSION / COMMITTEE RECOMMENDATION None. PUBLIC OUTREACH None. ATTACHMENTS 1. Ordinance for Consideration Page 129 Item 8. -1- ORDINANCE NO. 146, 2024 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING A SUPPLEMENTAL APPROPRIATION OF COLORADO DIVISION OF CRIMINAL JUSTICE GRANT REVENUES FOR VARIOUS RESTORATIVE JUSTICE SERVICES PROGRAMS A. Restorative Justice Programs within Community Development and Neighborhood Services (“CDNS”) operates three programs: RESTORE for shoplifting offenses, the Restorative Justice Conferencing Program and the Reflect Program for all other offenses. B. Restorative Justice Services programs hold young offenders accountable by helping them understand how family, friends, victims, and the community are harmed by their actions, and holding offenders accountable for the harm they caused to help them make better decisions in the future. C. Since its inception, Restorative Justice Services has provided restorative justice alternatives to more than 3,200 young people who have committed chargeable offenses in our community. D. Restorative Justice Services has been partially grant-funded since 2000, and has accepted grant funds on an annual basis from the Colorado Division of Criminal Justice to support City Restorative Justice Services programs. E. Restorative Justice Services received an award of $40,428 from the Colorado Division of Criminal Justice that was included in the Annual Adjustment ordinance (Ordinance No. 134, 2024), which passed on Second Reading on October 1, 2024. F. An additional grant award of $13,000 was received from the Colorado Division of Criminal Justice for the continued operation of Restorative Justice programs, for a total grant award of $53,428. G. No local match is required, and the grant period is July 1, 2024, to June 30, 2025. H. This grant funds programs to assist young people referred to Restorative Justice Services from the 8th Judicial District Attorney’s Office. I. This appropriation benefits the public health, safety, and welfare of the residents of Fort Collins and serves the public purpose of reducing future criminal behavior and keeping young people out of the justice system, contributing positively to a safer, healthier community. Addressing the needs and concerns of those harmed by crime and community members also has a positive effect on the overall community health and safety. Page 130 Item 8. -2- J. Article V, Section 9 of the City Charter permits City Council, upon recommendation of the City Manager, to make a supplemental appropriation by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriation, in combination with all previous appropriations for that fiscal year, do not exceed the current estimate of actual and anticipated revenues and all other funds to be received during the fiscal year. K. The City Manager has recommended the appropriation described herein and determined that this appropriation is available and previously unappropriated from the General Fund and will not cause the total amount appropriated in the General Fund to exceed the current estimate of actual and anticipated revenues and all other funds to be received in this Fund during this fiscal year. L. Article V, Section 11 of the City Charter authorizes the City Council to designate in the ordinance when appropriating funds for a federal, state or private grant or donation, that such appropriation shall not lapse at the end of the fiscal year in which the appropriation is made, but continue until the earlier of the expiration of the federal, state or private grant or the City’s expenditure of all funds received from such grant. M. The City Council wishes to designate the appropriation herein for the Colorado Division of Criminal Justice Grant as an appropriation that shall not lapse until the earlier of the expiration of the grant or the City’s expenditure of all funds received from such grant. In light of the foregoing recitals, which the Council hereby makes and adopts as determinations and findings, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. There is hereby appropriated from new revenue or other funds in the General Fund the sum of THIRTEEN THOUSAND DOLLARS ($13,000) to be expended in the General Fund for Various Restorative Justice Services Programs. Section 2. The appropriation herein for the Colorado Division of Criminal Justice Grant is hereby designated, as authorized in Article V, Section 11 of the City Charter, as an appropriation that shall not lapse at the end of this fiscal year but continue until the earlier of the expiration of the grant or the City’s expenditure of all funds received from such grant. Page 131 Item 8. -3- Introduced, considered favorably on first reading on October 15, 2024, and approved on second reading for final passage on November 4, 2024. ___________________________________ Mayor ATTEST: ___________________________________ City Clerk Effective Date: November 14, 2024 Approving Attorney: Yvette Lewis-Molock Page 132 Item 8. File Attachments for Item: 9. First Reading of Ordinance No. 147, 2024, Making a Supplemental Appropriation in the 2050 Tax Parks Rec Transit OCF Fund for Evaluation of the I nflation Reduction Act Tax Credits. The purpose of this item is to appropriate $100,000 from 2050 tax revenue to contract with external consultants to evaluate the cost/benefit of the City pursuing Inflation Reduction Act (IRA) tax credits. Page 133 City Council Agenda Item Summary – City of Fort Collins Page 1 of 2 October 15, 2024 AGENDA ITEM SUMMARY City Council STAFF Joanne Cech, Fiscal Recovery Manager, Financial Services SUBJECT First Reading of Ordinance No. 147, 2024, Making a Supplemental Appropriation in the 2050 Tax Parks Rec Transit OCF Fund for Evaluation of the Inflation Reduction Act Tax Credits. EXECUTIVE SUMMARY The purpose of this item is to appropriate $100,000 from 2050 tax revenue to contract with external consultants to evaluate the cost/benefit of the City pursuing Inflation Reduction Act (IRA) tax credits. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The Inflation Reduction Act, passed in 2022, provided for local governments to apply for tax credits on any projects utilizing or developing renewable energy sources, and on purchases of EVs and installation of EV charging stations. The requirements for claiming and filing these tax credits are complex and require specific expertise in renewable energy, IRS tax credits, and project management. The City issued an RFP for consulting services to perform this evaluation and has selected a consultant to perform the work for the City. The City is currently negotiating the contract for consulting services. CITY FINANCIAL IMPACTS $100,000 in the 2050 Tax Parks Rec Transit OCF Fund will be appropriated and expended for this evaluation. If the evaluation shows a positive net present value for pursuing these IRA tax credits, then the City will implement a program to pursue filing for the tax credits, most likely with the assistance of an outside firm. BOARD / COMMISSION / COMMITTEE RECOMMENDATION None. PUBLIC OUTREACH None. Page 134 Item 9. City Council Agenda Item Summary – City of Fort Collins Page 2 of 2 ATTACHMENTS 1. Ordinance for Consideration 2. IRA Tax Credits Summary Page 135 Item 9. -1- ORDINANCE NO. 147, 2024 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING A SUPPLEMENTAL APPROPRIATION IN THE 2050 TAX PARKS REC TRANSIT OCF FUND FOR EVALUATION OF THE INFLATION REDUCTION ACT TAX CREDITS A. The Inflation Reduction Act, passed in 2022, provided for local governments to apply for tax credits on any projects utilizing or developing renewable energy sources and on purchases of EVs and installation of EV charging stations. B. The requirements for claiming and filing these tax credits are compl ex and require specific expertise in renewable energy, Internal Revenue Service tax credit procedures, and project management. C. The City issued an RFP for consulting services to perform this evaluation and has selected a consultant to perform the work for the City. The City is currently negotiating the contract for consulting services. D. This Ordinance appropriates $100,000 in the 2050 Tax Parks Rec Transit OCF Fund to fund this evaluation. If the evaluation shows a positive net present value for pursuing these IRA tax credits, the City will implement a program to pursue filing for the tax credits, most likely with the assistance of an outside firm. E. This appropriation benefits the public health, safety, and welfare of the residents of Fort Collins and serves the public purpose of evaluating potential opportunities for additional revenues to support the City’s priorities, policies and programs. F. Article V, Section 9 of the City Charter permits the City Council, upon recommendation of the City Manager, to make a supplemental appropriation by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriation, in combination with all previous appropriations for that fiscal year, do not exceed the current estimate of actual and anticipated revenues and all other funds to be received during the fiscal year. G. The City Manager has recommended the appropriation described herein and determined that this appropriation is available and previously unappropriated from the 2050 Tax Parks Rec Transit OCF Fund and will not cause the total amount appropriated in the 2050 Tax Parks Rec Transit OCF Fund to exceed the current estimate of actual and anticipated revenues and all other funds to be received in this Fund during this fiscal year. In light of the foregoing recitals, which the Council hereby makes and adopts as determinations and findings, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated from new revenue or other funds in the 2050 Tax Parks Rec Transit OCF Fund the sum of ONE HUNDRED THOUSAND Page 136 Item 9. -2- DOLLARS ($100,000) to be expended in the 2050 Tax Parks Rec Transit OCF Fund for the evaluation of the Inflation Reduction Act tax credits. Introduced, considered favorably on first reading on October 15, 2024, and approved on second reading for final passage on November 4, 2024. ___________________________________ Mayor ATTEST: ___________________________________ City Clerk Effective Date: November 14, 2024 Approving Attorney: Carrie Daggett Page 137 Item 9. IRA TAX CREDITS DIRECT PAYMENT SUMMARY [Information is based on NLC and Bloomberg Philanthropies materials on the tax credits, and IRS one- pager on the tax credits.] Inflation Reduction Act (IRA) passed in 2022 and extends through 2032. For local governments there are basically three types of IRA tax credit direct payments we are eligible for: Investment Tax Credit Production Tax Credit Clean energy vehicles and refueling Each of these has specifications as to what constitute eligible projects. Investment Tax Credit (ITC) Eligible projects include investment in facilities that generate clean energy from renewables like solar, wind, municipal solid waste, biomass, hydropower and energy storage technologies. Tax credit is valued on the money invested in the project in a tax year. Credit is essentially a rebate based on the total eligible costs of a project. Production Tax Credit (PTC) Eligible projects include those that generate clean energy from renewable sources like solar, wind, municipal solid waste, biomass, hydropower and energy storage technologies. Tax credit is valued on the amount of energy generated per year in the first 10 years of operation Note the ITC and PTC credits are mutually exclusive. They cannot both apply to one project. For the ITC and PTC there are credits and bonuses that apply based on prevailing wage and apprenticeships, domestic content, and low-income community locations for the project. We need to investigate these further to determine if they could apply to any future projects and/or if they are worth the effort to obtain them. Starting in 2025 the ITC and PTC are replaced with technology-neutral credits (Clean Electricity ITC, Clean Electricity PTC). These maintain the same structure but apply to any resource with an estimated greenhouse gas emissions rate of zero. Guidance on carbon-free technologies is due by the end of 2024. Clean energy vehicles and refueling Clean Vehicles – Credit for Qualified Commercial Clean Vehicles o Supports the purchase of EVs including commercial vehicles like EV buses, passenger vehicles, certain other vehicles for use on public streets, roads and highways o Max $7,500 for vehicles <14,000 lbs, Class I-III Vehicles; and max $40,000 for all other vehicles o Beginning 1/1/24 the tax credit can be transferred to a dealer for an equivalent reduction in eligible vehicle’s sales price Refueling – Alternative Fuel Vehicle Refueling Property Credit o Supports EV charging and other alternative fueling projects o Only applies to recharging stations placed in non-urban or low-income areas. o Qualified fuels include electricity, ethanol, natural gas, hydrogen and biodiesel o Base tax credit is 6% of the basis of the property; tax credit increases to 30% if prevailing wage and apprenticeship rules are met o Maximum credit is $100,000 per each item of property Page 138 Item 9. IRA TAX CREDITS DIRECT PAYMENT SUMMARY Collaboration We can collaborate with other local entities, e.g., Larimer County, CSU, on a project What is NOT covered Does not cover projects that reduce energy used due to use of more efficient, or electric, equipment, e.g., won’t apply to: o Building HVAC upgrades that do not use renewables like solar or wind, etc. Could change with the 2025 ITC/PTC changes Will have to review ITC/PTC guidance at year end 2024 Covers residential programs (Energy Efficiency Home Improvement, Residential Clean Energy) to make homes more energy efficient, but not public buildings. Only individuals may apply for those residential tax credits o Parks Equipment replacement, won’t cover replacement of gas-powered equipment with electric equipment (no production of clean electricity, it is the use of electricity in lieu of fossil fuels) o Lighting replacement to utilize more energy efficient lighting Only covers renewable energy sources for now, not electric Filing a 990-T As a non-taxable entity the City has no experience with preparing and filing a tax return with the IRS, nor with IRS audits. As part of their evaluation, the consultants would assist with evaluating whether the work required to file and support a tax return on audit is outweighed by the value of the tax credits the City would receive. Page 139 Item 9. File Attachments for Item: 10. First Reading of Ordinance No. 148, 2024, Updating Section 4-142 of the Code of the City of Fort Collins Regarding Sterilization of Adopted Animals to Align with State Law. The purpose of this item is to update the local Fort Collins Animal Code to align with Colorado Revised Statutes (C.R.S.) Section 35-80-106.4. Page 140 City Council Agenda Item Summary – City of Fort Collins Page 1 of 2 October 15, 2024 AGENDA ITEM SUMMARY City Council STAFF Marcy Yoder, Neighborhood Services Manager SUBJECT First Reading of Ordinance No. 148, 2024, Updating Section 4-142 of the Code of the City of Fort Collins Regarding Sterilization of Adopted Animals to Align with State Law. EXECUTIVE SUMMARY The purpose of this item is to update the local Fort Collins Animal Code to align with Colorado Revised Statutes (C.R.S.) Section 35-80-106.4. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION There is a potential conflict between the City’s animal sterilization requirement exemption, City Code Section 4-142, and state law, C.R.S. § 35-80-106.4. State law expressly authorizes local governments to adopt stricter requirements than the State, but there is nothing that allows local governments to enforce looser requirements. The animal sterilization requirements under City Code could be interpreted as less strict than the State requirements, since the Code contains an exception to mandatory sterilization not found in the statute. Code Section 4-142 currently allows exemption f rom the sterilization requirement when there is a written agreement between an animal shelter and a party adopting a pet guaranteeing that the animal will be sterilized within a certain period of time after the date of release. This exemption does not fall within any of the sterilization exemptions under State law and could unintentionally increase the risk of uncontrolled animal reproduction. Staff recommends updating the exemptions in City Code to align with the State law exemptions, as set forth in the proposed ordinance. CITY FINANCIAL IMPACTS None. BOARD / COMMISSION / COMMITTEE RECOMMENDATION None. Page 141 Item 10. City Council Agenda Item Summary – City of Fort Collins Page 2 of 2 PUBLIC OUTREACH None. ATTACHMENTS 1. Ordinance for Consideration Page 142 Item 10. -1- ORDINANCE NO. 148, 2024 OF THE COUNCIL OF THE CITY OF FORT COLLINS UPDATING SECTION 4-142 OF THE CODE OF THE CITY OF FORT COLLINS REGARDING STERILIZATION OF ADOPTED ANIMALS TO ALIGN WITH STATE LAW A. Colorado Revised Statutes (C.R.S.) Section 35-80-106.4 provides that animal shelters or pet animal rescues may not release a dog or cat to a prospective owner unless the animal has been sterilized by a licensed veterinarian, subject to a few narrow exceptions. B. Subsection (4) of C.R.S. Section 35-80-106.4 authorizes the City to adopt animal sterilization requirements that are at least as strict as the State requirements, though there is no express authorization for the City to adopt less stringent requirements. C. Section 4-142 of the City Code currently contains an exception to mandatory animal sterilization when there is a written agreement between an animal shelter and a party adopting a pet, guaranteeing the pet will be sterilized within a certain period of time; however, this exemption is not also found among State statutory exemptions. D. Staff recommends amending City animal sterilization requirements in City Code to align more closely with State standards in C.R.S. Section 35-80-106.4, as set forth in this Ordinance. In light of the foregoing recitals, which the Council hereby makes and adopts as determinations and findings, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that Section 4-142 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 4-142. Sterilization of adopted animals required. No dog or cat shall be released for adoption without being sterilized or without a written agreement from the adopter guaranteeing that such animal will be sterilized within a certain period of time after the date of release. It shall be unlawful for the adopter to violate the terms of such written agreement. An animal shelter or pet animal rescue, as defined under Section 35-80-102, C.R.S., shall not release a dog or cat to a prospective owner unless the animal has been sterilized by a licensed veterinarian, except as provided in writing by a licensed veterinarian pursuant to Section 35-80-106.4(2), C.R.S. If sterilization has been delayed pursuant to the order of a licensed veterinarian, the shelter or rescue must inform the prospective owner of the animal in writing and provide the veterinarian’s written order at or prior to the time of transfer. After transfer, the owner of the animal for which sterilization has been delayed under this provision must cause the animal to be sterilized at such time that a veterinarian determines that the dog or cat is fit to undergo the sterilization procedure. Page 143 Item 10. -2- Introduced, considered favorably on first reading on October 15, 2024, and approved on second reading for final passage on November 4, 2024. ______________________________ Mayor ATTEST: ______________________________ City Clerk Effective Date: November 14, 2024 Approving Attorney: Madelene Shehan Page 144 Item 10. File Attachments for Item: 11. First Reading of Ordinance No. 149, 2024, Approving an Amended and Restated Ground Lease Agreement Between the Cities of Loveland and Fort Collins and Discovery Air, LLC, for Property at the Northern Colorado Regional Airport. The purpose of this item is to approve an amended and restated ground lease between the City of Fort Collins, the City of Loveland, and Discovery Air LLC at the Northern Colorado Regional Airport. The parties have an existing ground lease agreement with Discovery Air, LLC, at the Northern Colorado Regional Airport. The parties desire to amend and restate the lease substantially similar to the form attached hereto. Approval of the Amended and Restated Ground Lease between the cities of Loveland and Fort Collins (the “Agreement”) is reserved to the City Councils because there are non-standard lease terms in the Agreement. Page 145 City Council Agenda Item Summary – City of Fort Collins Page 1 of 2 October 15, 2024 AGENDA ITEM SUMMARY City Council STAFF Francis Robbins, Acting Airport Director Kelly DiMartino, City Manager SUBJECT First Reading of Ordinance No. 149, 2024, Approving an Amended and Restated Ground Lease Agreement Between the Cities of Loveland and Fort Collins and Discovery Air, LLC, for Property at the Northern Colorado Regional Airport. EXECUTIVE SUMMARY The purpose of this item is to approve an amended and restated ground lease between the City of Fort Collins, the City of Loveland, and Discovery Air LLC at the Northern Colorado Regional Airport. The parties have an existing ground lease agreement with Discovery Air, LLC, at the Northern Colorado Regional Airport. The parties desire to amend and restate the lease substantially similar to the form attached hereto. Approval of the Amended and Restated Ground Lease between the cities of Loveland and Fort Collins (the “Agreement”) is reserved to the City Councils because there are non-standard lease terms in the Agreement. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION Discovery Air executed a lease in 2019 for 1.16 million square feet on the south side of the airport for developing a large multi-hangar complex capable of accommodating large general aviation aircraft and a variety of aviation businesses. The lease was amended in 2021 to increase the area within the leasehold and adjust the phased lease rate. In 2023, Discovery Air initiated a request for a second lease amendment. The parties have elected to amend and restate the ground lease rather than create a second lease amendment. The Agreement reduces the total area within the leasehold, sets the shape of the lease to provide a similar level of developable land, updates the construction phasing plan, and provides additional time for construction at a reduced rent rate before a phased escalation takes effect as part of relief from the COVID related delays. The Airport sponsor negotiation team consisting of the Fort Collins City Manager, Loveland City Manager, Airport Director, and legal counsel have prepared the Agreement for Council’s review and consideration. As depicted in the below table, the current lease terms provide a fixed minimum rent for the remaining 45 years of the lease. The Agreement presented includes provisions for early escalation should development Page 146 Item 11. City Council Agenda Item Summary – City of Fort Collins Page 2 of 2 occur faster than previously contemplated and includes the potential for non-aeronautical development in a small area called the “remainder area.” The process for these escalations is outlined in section 4.2 of the Agreement and is dependent on annual Consumer Price Index (CPI) adjustments, early development, scheduled adjustments, and potentially non-aeronautical developments in the remainder area which could cause deviations from the forecasted revenue. The table assumes a 2% CPI escalation for future years and actual CPI adjustments for previous years. Overall, the Agreement has tradeoff for both parties. It immediately increases the revenue of the Airport in year 1 of implementation due to rate structure for all apron areas and potentially reduces the total revenue from the project depending on development phasing. CITY FINANCIAL IMPACTS No impact to City financials. Airport financial impacts are generally positive with some exceptions listed in the discussion. BOARD / COMMISSION / COMMITTEE RECOMMENDATION On September 19, 2024, the Airport Commission unanimously recommended approval of the Agreement at its regular meeting by Resolution R-08-2024. PUBLIC OUTREACH None. ATTACHMENTS 1. Ordinance for Consideration 2. Exhibit A to Ordinance 3. Amended and Restated Ground Lease Agreement (redline version) 4. Northern Colorado Regional Airport Commission Resolution R-08-2024 5. Presentation Page 147 Item 11. -1- ORDINANCE NO. 149, 2024 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING AN AMENDED AND RESTATED GROUND LEASE AGREEMENT BETWEEN THE CITIES OF LOVELAND AND FORT COLLINS AND DISCOVERY AIR, LLC, FOR PROPERTY AT THE NORTHERN COLORADO REGIONAL AIRPORT A. The Cities of Loveland and Fort Collins (collectively the “Cities,” and “Loveland” or “Fort Collins” respectively) jointly own and operate the public airport known as the Northern Colorado Regional Airport (the “Airport”). B. On January 22, 2015, the Cities entered into an Amended and Restated Intergovernmental Agreement for the Joint Operation of the Airport (the “IGA”), whereby the Cities formed a commission and delegated certain duties and responsibilities to such commission (the “Commission”). C. By adoption of Ordinance No. 148, 2018, the Fort Collins City Council approved a fifty year ground lease of Airport property (the “Lease”) to Discovery Air, LLC (“Lessee”) for a planned development for aviation purposes to include airplane hangars, a fixed-base operation, associated office space, and a restaurant, as well as other potential improvements such as a new access road which would create a new entrance to the Airport and expanded tarmac (the “Project”). D. By adoption of Ordinance No. 163, 2020, the Fort Collins City Council approved a first amendment to the Lease to update the site plan and amend the rent structure to more accurately correspond for planned development of the site. E. In 2023, Lessee approached the Cities about further amendments to the ground lease, including a request for one additional development phase with the potential for a sixth phase. F. Airport staff and Lessee have discussed and negotiated an amended rent structure to correspond with five and possibly six phases and payment of phased lease rates, as more fully set forth in the Amended and Restated Ground Lease between the cities of Fort Collins and Loveland and Discovery Air at the Northern Colorado Regional Airport (the “Agreement”) as shown on Exhibit “A,” attached hereto and incorporated herein by this reference. G. The Agreement reduces the total area within the leasehold, sets the boundaries of the leasehold to provide a similar level of developable land and provides additional time for construction at a reduced rental rate before a phased rental rate escalation takes effect as part of relief of COVID related delays . H. The Lessee is no longer expected to construct a public taxiway on its leasehold and the Agreement updates the site plan to conform to the parties’ expectations Page 148 Item 11. -2- for the site development as shown on Exhibit “B” to the Agreement, which is attached hereto and incorporated herein by reference. I. The Agreement also amends the phased rent structure. J. The Agreement also gives the Lessee the option to construct and use a temporary fuel farm on their leasehold rather than granting the Lessee permanent access to a permanent fuel farm on Airport property. K. The Lessee is current on all rent payments and other obligations under the Lease. L. On September 19, 2024, the Commission reviewed and unanimously recommended approval of the Agreement to the Cities at its regular meeting. M. On October 1, 2024, the Loveland City Council considered and unanimously passed a resolution approving the Agreement. N. Fort Collins City Code Section 23-113 provides that City Council may approve leases of real property owned in the name of the City for a term in excess of twenty years by ordinance where Council finds that the lease is in the best interests of the City. O. The City Council finds that the Agreement is in the best interests of the City because it may be a catalyst to attract additional Airport development and businesses, enhance the Airport's economic impact and job creation, and have an additional positive impact to the Airport's self-generated income and future financial sustainability. P. The City Council desires to approve the Agreement and to authorize the City Manager to execute the Agreement on behalf of the City of Fort Collins. In light of the foregoing recitals, which the Council hereby makes and adop ts as determinations and findings, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. The Amended and Restated Ground Lease Agreement Between the Cities of Loveland and Fort Collins is hereby approved. Section 2. The City Manager is hereby authorized and directed, following consultation with the City Attorney, to execute the Amended and Restated Ground Lease Agreement Between the Cities of Loveland and Fort Collins in substantially similar form to Exhibit “A” subject to modifications as deemed necessary to protect the interests of the City of Fort Collins or to effectuate the purposes of this Ordinance. Page 149 Item 11. -3- Introduced, considered favorably on first reading on October 15, 2024, and approved on second reading for final passage on November 4, 2024. ______________________________ Mayor ATTEST: ______________________________ City Clerk Effective Date: November 14, 2024 Approving Attorney: Jenny Lopez Filkins Page 150 Item 11. 1 AMENDED AND RESTATED GROUND LEASE AGREEMENT CITIES OF LOVELAND AND FORT COLLINS, COLORADO, AND DISCOVERY AIR, LLC, A COLORADO LIMITED LIABILITY COMPANY EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 151 Item 11. 2 TABLE OF CONTENTS A RTICLE 1: TERM; NEW LEASE; CONTINGENCIES............................................................ 3 ARTICLE 2: LEASED PREMISES .............................................................................................. 5 ARTICLE 3: USE OF LEASED PREMISES ............................................................................... 6 ARTICLE 4: RENT ....................................................................................................................... 7 ARTICLE 5: ACCEPTANCE, CONSTRUCTION, CARE, MAINTENANCE, AND REPAIR. 8 ARTICLE 6: ADDITIONAL OBLIGATIONS OF LESSEE ..................................................... 12 ARTICLE 7: INGRESS AND EGRESS ..................................................................................... 13 ARTICLE 8: INSURANCE, DAMAGE OR DESTRUCTION .................................................. 14 ARTICLE 9: LIABILITIES AND INDEMNITIES .................................................................... 15 ARTICLE 10: LEASEHOLD MORTGAGES ............................................................................ 16 ARTICLE 11: RULES AND REGULATIONS .......................................................................... 17 ARTICLE 12: SIGNS .................................................................................................................. 17 ARTICLE 13: ASSIGNMENT AND SUBLEASE ..................................................................... 18 ARTICLE 14: CONDEMNATION ............................................................................................. 18 ARTICLE 15: NON-DISCRIMINATION .................................................................................. 19 ARTICLE 16: GOVERNMENTAL REQUIREMENTS ............................................................ 20 ARTICLE 17: RIGHT OF ENTRY RESERVED ....................................................................... 20 ARTICLE 18: TERMINATION .................................................................................................. 21 ARTICLE 19: OWNERSHIP OF IMPROVEMENTS, SURRENDER ...................................... 23 ARTICLE 20: SERVICES TO LESSEE ..................................................................................... 23 ARTICLE 21: SURVIVAL OF THE OBLIGATIONS OF THE LESSEE ................................ 24 ARTICLE 22: USE SUBSEQUENT TO CANCELLATION OR TERMINATION ................. 25 ARTICLE 23: NOTICES............................................................................................................. 25 ARTICLE 24: INVALID PROVISIONS .................................................................................... 26 ARTICLE 25: MISCELLANEOUS PROVISIONS.................................................................... 26 ARTICLE 26: SUBORDINATION CLAUSES .......................................................................... 28 ARTICLE 27: QUIET ENJOYMENT......................................................................................... 29 ARTICLE 28: ENTIRE AGREEMENT...................................................................................... 29 ARTICLE 29: REQUIREMENTS FOR CONDOMINIUMIZATION ....................................... 29 EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 152 Item 11. 3 AMENDED AND RESTATED LEASE AGREEMENT THIS AMENDED AND RESTATED GROUND LEASE AGREEMENT, made and entered into this day of ________, 2024 (the “Effective Date”), is by and between the Cities of Fort Collins and Loveland, Colorado (the “Cities”) and Discovery Air, LLC, a Colorado limited liability company, hereinafter called “Lessee.” WITNESSETH: WHEREAS, the Cities own and operate an airport known as the Northern Colorado Regional Airport located in Larimer County, Colorado, including the real property upon which the same is located, (hereinafter, the “Airport”) pursuant to an Amended and Restated Intergovernmental Agreement for the Joint Operation of the Airport on January 22, 2015 (the “IGA”), whereby the Cities formed a commission known as the Northern Colorado Regional Airport Commission and delegated certain duties and responsibilities to such commission (the “Commission”). The IGA was amended on June 7, 2016 and on June 10, 2019; and WHEREAS, the Cities and Lessee entered into a Lease Agreement dated January 16, 2019 (the “Original Lease”) for certain land at the Airport for the construction of Lessee’s master-planned development to include a fixed -based operation (“FBO”) facility, hangar and office buildings, expanded ramp, parking facilities and various infrastructure; and WHEREAS, the Cities and Lessee entered into a First Amendment to the Original Lease dated January 12, 2021 (the “First Amendment”) whereby the Original Lease was amended to permit Lessee to phase the construction of its facilities along with the rent due for the different phases of development; and WHEREAS, the Cities and Lessee have agreed to further amend the Original Lease, as amended by the First Amendment, to permit additional phasing, to clarify the construction of ramp space, to clarify the payment of rent for the various areas within the Leased Premises (as defined below), and to accommodate certain impacts to Lessee from the COVID pandemic; and WHEREAS, the Cities and Lessee are mutually desirous of entering into this Amended and Restated Lease Agreement (“Agreement”) for the use and occupancy of certain areas at the Airport for aeronautical activities; and WHEREAS, the Cities desire to accommodate, promote and enhance general aviation at the Airport and Lessee desires to be assured of the Airport’s continued availability as a base for aircraft ; and WHEREAS, the Cities and Lessee have reached an understanding in principle, which envisions Lessee’s construction of a fixed -based operation (“FBO”) facility, hangar and office buildings, , an expanded tarmac, parking facilities, and various infrastructure related thereto, including such pavement and ramp areas as required by the Airport Minimum Standards for the Provision of Commercial Aeronautical Activities at the Airport, dated September 26, 2008, (the “Minimum Standards”), as they may be amended from time to time by the Cities (collectively, “Improvements”), the general layout of which is intended to be located within the preliminary site EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 153 Item 11. 4 plan which is attached hereto as Exhibit “B-2”, which by this reference is made a part hereof . The Improvements referenced in this Agreement do not include any infrastructure required for Lessee’s proposed development that is dedicated to the City of Loveland or another entity; and WHEREAS, the Lessee understands and acknowledges that Lessee’s planned Improvements are subject to approval by the City of Loveland through its development review process and to applicable provisions of the Loveland Municipal Code. NOW, THEREFORE, in consideration of the premises and of the rents, covenants and conditions herein contained, the Cities do hereby lease to Lessee the area(s) of the Airport described in Article 2 hereof (the “Leased Premises”) on the terms and conditions hereinafter set forth. ARTICLE 1: TERM; NEW LEASE; CONTINGENCIES 1.1 The term of this Agreement shall commence at 12:01 a.m. on January 16, 2019 and expire at 11:59 p.m. on the last day of the calendar month in which occurs the day immediately preceding the fiftieth (50th) anniversary of the Effective Date (hereinafter the “Term”), unless sooner terminated in accordance with the provisions hereof. 1.2 I f Lessee desires to continue occupying the Leased Premises after the expiration of the Term, Lessee may request that the Cities grant a new lease agreement of no more than fifty (50) years. Such a request shall be made by Lessee in writing and delivered to the Cities not more than eighteen (18) months nor less than six (6) months prior to the expiration of the Term. In consideration of Lessee’s substantial capital investment in the Improvements and value created in the form of long- term lease arrangements for same, the Cities agree to negotiate in good faith with Lessee a new lease for the Leased Premises on the terms set forth in this Section 1.2 upon the expiration of the Term. If: (i) Lessee is not then in default under any provision of this Agreement beyond any and all applicable notice and cure periods; (ii) the Cities determine that the Improvements still have sufficient value to the Cities; and (iii) such a new lease would be consistent with the Airport’s master plan then in effect and any and all federal rules, regulations, directives, guidelines or other obligations with respect to the Airport, including but not limited to the “grant assurances” to the FAA, then the Cities may, in their sole discretion, offer Lessee a new lease of no more than fifty (50) years of the Leased Premises under such terms and conditions, including rental rates and on the then-current lease form being offered by the Cities. ARTICLE 2: LEASED PREMISES 2.1 The Leased Premises consist of the parcel of land described in Exhibit “A-2”, which is attached hereto and by this reference made a part hereof . 2.2 The Parties further acknowledge that a public use taxiway exists on the west portion of the Leased Premises that connects current extended taxiway Delta with current taxiway Alpha (hereinafter the “Existing Tarmac”). The Existing Tarmac is depicted on Exhibit B-2, attached hereto. Use, access, maintenance and repair of such Existing Tarmac shall be subject to the terms and conditions set forth in this Agreement. Without limiting the foregoing, the Cities acknowledge that the Improvements, except for the Existing Tarmac, shall, during the term of this Agreement, be and remain the property of Lessee or any successor in interest. EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 154 Item 11. 5 2.3 Lessee acknowledges that a portion of the Leased Premises may be subject to an existing intergovernmental lease agreement between the Cities and the State of Colorado, Department of Public Safety, Division of Fire Prevention and Control (the “Division”) for its SEAT base. To the extent that the leased premises for the SEAT base overlaps with the Leased Premises of this Lease, it shall be Lessee’s obligation to obtain the agreement of the Division to relocate its SEAT base to another location on the Airport property, which relocation shall be accomplished at Lessee’s sole cost and expense. The Cities agree to cooperate in executing a lease amendment or new lease with the Division as necessary to accomplish the relocation. 2.4 The Cities hereby represent and warrant that they have full right and authority to enter into this Lease and that no other interest exists in the Lease Premises that would materially adversely affect Lessee’s use and enjoyment of the Leased Premises as contemplated herein. ARTICLE 3: USE OF LEASED PREMISES 3.1 Lessee agrees for itself and its sublessees that it is permitted only to use the Leased Premises for aeronautical activities. The term “Aeronautical Activities” shall mean any activity or service that involves, makes possible, facilitates, is related to, assists in, or is required for the operation of aircraft, or which contributes to or is required for the safety of aircraft operations. Lessee and its sublessees may use, occupy and sublease the Leased Premises for the following aeronautical purposes and for no other purpose whatsoever unless approved in writing by the Cities: 3.1.1 For the construction, installation, maintenance, and operation of the Improvements including an FBO facility, a restaurant, an overhead transportation system, expanded tarmac area, parking facilities, office and retail space, and hangar space be used for the parking, storage, servicing, repair, maintenance, modification, and construction of aircraft . Lessee further agrees that the parking facilities shall not exceed the number of parking spaces ultimately approved in the site plan to be dedicated to customers of the FBO facility, restaurant, office and retail space. Operation of the FBO facility and the provision of FBO Services (as hereinafter defined) are ref erred to herein as the “FBO Operation”. Lessee shall conduct the FBO Operation (or cause same to be conducted) in compliance with the Minimum Standards. In addition to compliance with the Minimum Standards, all uses on the Leased Premises shall also comply with the City of Loveland, Colorado, building, use and zoning codes, regulations and requirements applicable to the Leased Premises. The Leased Premises shall not be used for residential purposes. 3.1.2 “FBO Services” as used herein shall mean all essential and specialized aircraft services necessary to ensure that the basic needs of aircraft owners, pilots, and passengers are provided for at the Airport at a minimum level or above, as more fully set forth in the Minimum Standards. FBO Services shall include aircraft fueling services, provided that all such fueling services must be conducted in accordance with the Minimum Standards and Rules and Regulations. The Cities intend to build a consolidated fuel farm at the Airport. Until such time as a consolidated fuel farm is constructed and operational, Lessee may construct and use a temporary fuel storage facility on the Leased Premises, subject to review and approval by the Cities and Fire Marshal. The Cities hereby commit to grant a temporary variance from the Minimum Standards to permit Lessee, or the FBO intending to provide FBO services on the Leased Premises, less than two grades of aviation fuel and less than the required fuel storage EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 155 Item 11. 6 capacity, provided that all other requirements of the Minimum Standards shall apply and the temporary variance shall terminate upon completion of the consolidated fuel farm or construction of permanent fuel storage facilities on the Leased Premises. 3.1.3 Nothing contained in this Agreement shall be construed as granting an exclusive license, permit, franchise or other right to provide FBO Services or any other services. Lessee understands and agrees that the Cities may lease other property at the Airport to other tenants who provide or will cause to be provided the same or similar services. 3.1.4 The Cities make no representations, guarantees, or warranties that the Leased Premises may be lawfully used for the purposes set forth in this Section 3.1. Lessee shall have the sole responsibility of obtaining all applicable permits or other governmental approvals necessary to construct and use the Leased Premises as intended herein, including all permits and/or approvals required by the City of Loveland. ARTICLE 4: RENT 4.1 Commencing on the Effective D ate and continuing until the Rent Commencement Date (hereinafter defined), Lessee shall pay to the Cities an annual rent of $0.05 per square foot for the Rental Area (as hereinafter defined), for a total of $28,204.80 per year, subject to adjustment as set forth herein. 4.2 Rent shall be subject to the phasing set forth below: (a) Phase I. Commencing on the earlier of (i) January 1, 2021 and (ii) the date that the first certificate of occupancy (or its equivalent ) is issued for any of the Improvements located within the Phase I Rental Area (as hereinafter defined) (the “Phase I Rent Commencement Date”), Lessee agrees to pay to the Cities for the first (1st) year following the Phase I Rent Commencement Date an annual rent of $0.15 per square foot for the Phase I Rental Area, for a total of $15,569.70 per year. Commencing on the 8th anniversary of the Phase I Rent Commencement Date (the “Phase I Rent Escalation Date”), Lessee shall pay to the Cities an annual rent of 167% of the previous year’s annual rent for the Phase I Rental Area, subject to adjustment pursuant to Section 4.2(h). “Phase I Rental Area” as used herein shall mean the area comprising a portion but not all of the Leased Premises generally depicted and identified on Exhibit “C-1” (including Phase I Hangar/Apron and Parking Areas) which is attached hereto and by this reference made a part hereof; the parties hereto have agreed that the Phase I Rental Area contains 103,799 square feet . The Phase I Rental Area includes paved areas which Lessee shall construct to comply with the Minimum Standards. The parties acknowledge and agree that the annual rent for the remaining Rental Area (as hereinafter defined) other than the Phase I Rental Area shall be $0.05 per square foot for the remaining Rental Area until a subsequent Additional Phase Rent Commencement Date (as hereinafter defined) has occurred. The term “Additional Phase Rent Commencement Date” shall mean any of the following: the Phase II Rent Commencement Date (as hereinafter defined), Phase III Rent Commencement Date (as hereinafter defined), Phase IV Rent Commencement Date (as hereinafter defined), EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 156 Item 11. 7 Phase V Rent Commencement Date (as hereinafter defined), and Phase VI Commencement Date (as hereinafter defined), as the case may be. (b)Phase II. Commencing on the earlier of (i) January 1, 2028 and (ii) the date that the first certificate of occupancy (or its equivalent) is issued for any of the Improvements located within the Phase II Rental Area (as hereinafter defined) (the “Phase II Rent Commencement Date”), Lessee agrees to pay to the Cities for the first (1st) year following the Phase II Rent Commencement Date an annual rent of 300% of the prior year’s annual rent for the Phase II Rental Area. Commencing on the 8th anniversary of the Phase II Rent Commencement Date (the “Phase II Rent Escalation Date”), Lessee shall pay to the Cities an annual rent of 167% of the prior year’s annual rent for the Phase II Rental Area, subject to adjustment pursuant to Section 4.2(h). “Phase II Rental Area” as used herein shall mean the area comprising a portion but not all of the Leased Premises generally depicted and identified on Exhibit “C -1” (including Phase II Hangar/Apron and Parking Areas) which is attached hereto and by this reference made a part hereof; the parties hereto have agreed that the Phase II Rental Area contains 124,935 square feet. The Phase II Rental Area includes paved areas which Lessee shall construct to comply with the Minimum Standards. The parties acknowledge and agree that the annual rent for the remaining Rental Area (as hereinafter defined) other than the Phase I Rental Area and Phase II Rental Area shall be $0.05 per square foot until a subsequent Additional Phase Rent Commencement Date (as hereinafter defined) has occurred. (c)Phase III. Commencing on the earlier of (i) January 1, 2031 and (ii) the date that the first certificate of occupancy (or its equivalent) is issued for any of the Improvements located within the Phase III Rental Area (as hereinafter defined) (the “Phase III Rent Commencement Date”), Lessee agrees to pay to the Cities for the first (1st) year following the Phase III Rent Commencement Date an annual rent of 300% of the prior year’s annual rent for the Phase III Rental Area. Commencing on the 8th anniversary of the Phase III Rent Commencement Date (the “Phase III Rent Escalation Date”), Lessee shall pay to the Cities an annual rent of 167% of the prior year’s annual rent for the Phase III Rental Area, subject to adjustment pursuant to Section 4.2(h). “Phase III Rental Area” as used herein shall mean the area comprising a portion but not all of the Leased Premises generally depicted and identified on Exhibit “C -1” (including Phase III Hangar/Apron and Parking Areas) which is attached hereto and by this reference made a part hereof; the parties hereto have agreed that the Phase III Rental Area contains 68,356 square feet. The Phase III Rental Area includes paved areas which Lessee shall construct to comply with the Minimum Standards. The parties acknowledge and agree that the annual rent for the remaining Rental Area (as hereinafter defined) other than the Phase I Rental Area, Phase II Rental Area, and Phase III Rental Area shall be $0.05 per square foot until a subsequent Additional Phase Rent Commencement Date (as hereinafter defined) has occurred. (d)Phase IV. Commencing on the earlier of (i) January 1, 2032 and (ii) the date that the first certificate of occupancy (or its equivalent) is issued for any of the Improvements located within the Phase IV Rental Area (as hereinafter defined) (the “Phase IV Rent Commencement Date”), Lessee agrees to pay to the Cities for the first (1st) year following the Phase IV Rent Commencement Date an annual rent of EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 157 Item 11. 8 300% of the prior year’s annual rent for the Phase IV Rental Area. Commencing on the eighth anniversary of the Phase IV Rent Commencement Date (the “Phase IV Rent Escalation Date”), Lessee shall pay to the Cities an annual rent of 167% of the prior year’s annual rent for the Phase IV Rental Area. “Phase IV Rental Area” as used herein shall mean the area comprising a portion but not all of the Leased Premises generally depicted and identified on Exhibit “C-1” (including Phase IV Hangar/Apron and Parking Areas) which is attached hereto and by this reference made a part hereof; the parties hereto have agreed that the Phase IV Rental Area contains 79,945 square feet. The Phase IV Rental Area includes paved areas which Lessee shall construct to comply with the Minimum Standards. The parties acknowledge and agree that the annual rent for the remaining Rental Area (as hereinafter defined) other than the Phase I Rental Area, Phase II Rental Area, Phase III Rental Area and Phase IV Rental Area shall be $0.05 per square foot until a subsequent Additional Phase Rent Commencement Date (as hereinafter defined) has occurred. (e)Phase V. Commencing on the earlier of (i) January 1, 2033 and (ii) the date that the first certificate of occupancy (or its equivalent) is issued for any of the Improvements located within the Phase V Rental area (as hereinafter defined) (the “Phase V Rent Commencement Date”), Lessee agrees to pay to the Cities for the first (1st) year following the Phase V Rent Commencement Date an annual rent of 300% of the prior year’s annual rent for the Phase V Rental Area. Commencing on the eighth anniversary of the Phase V Rent Commencement Date (the “Phase V Rent Escalation Date”), Lessee shall pay to the Cities an annual rent of 167% of the prior year’s annual rent for the Phase V Rental Area, subject to adjustment pursuant to Section 4.2(h). “Phase V Rental Area” as used herein shall mean the area comprising a portion but not all of the Leased Premises generally depicted and identified on Exhibit “C -1” (including Phase V Hangar/Apron and Parking Areas) which is attached hereto and by this reference mad e a part hereof; the parties hereto have agreed that the Phase V Rental Area contains 100,357 square feet. The Phase V Rental Area includes paved areas which Lessee shall construct to comply with the Minimum Standards. The parties acknowledge and agree that the annual rent for the remaining Rental Area (as hereinafter defined) other than the Phase I Rental Area, Phase II Rental Area, Phase III Rental Area, Phase IV Rental Area and Phase V Rental Area shall be $0.05 per square foot until a subsequent Additional Phase Rent Commencement Date (as hereinafter defined ) has occurred . (f)Phase VI. Commencing on the earlier of (i) January 1, 2034, and (ii) the date that the first certificate of occupancy (or its equivalent) is issued for any of the Improvements located within the Phase VI Rental Area (as hereinafter defined) (the “Phase VI Rent Commencement Date”), Lessee agrees to pay to the Cities for the first (1st) year following the Phase VI Rent Commencement Date as follows: (i) If the Lessee develops the Phase VI Rental Area for aeronautical uses, the Lessee shall pay rent at the same rate as Lessee has paid for each Phase listed above starting at the commencement rate ($0.15 per square foot adjusted for CPI for the term the Lease has been in effect since the Phase I Commencement Date) for a period of eight (8) years and increasing to the escalation rate of 167% of the previous year’s annual rent; or (ii) EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 158 Item 11. 9 If the Lessee develops the Phase VI Rental Area for non-aeronautical uses, Lessee shall pay rent to the Cities at the Airport’s improved property rental rate in effect at the time or fair market value, whichever is required by the FAA. The Phase VI Rental Area as used herein shall mean the area comprising a portion but not all of the Leased Premises generally depicted and identified on Exhibit “C-1” which is attached hereto and by this reference made a part hereof; the parties hereto have agreed that the Phase VI Rental Area contains 175,199 square feet. The parties agree and acknowledge that development and sublease of the Phase VI Rental Area for non-aeronautical use may require prior approval of the FAA. At any time prior to January 1, 2034, Lessee may, by providing written notice to Cities as provided herein, remove the Phase VI Rental Area from the Leased Premises. (g)Ramp Area. - The Parties hereto agree that Ramp Area as depicted in Exhibit C-1 contains 496,356 square feet. For the first two years from the Effective Date, Lessee shall pay $0.05 per square for the Ramp Area as shown on Exhibit C-1. The Leased Rate will remain $0.05 per square foot subject to adjust ment per Section 4.3 for the duration of the Agreement. Lessee’s development of the Ramp Area shall be consistent with the provisions of Section 5.9. (h) “Rental Area” as used herein shall mean area comprising a portion but not all of the Leased Premises upon which the parties hereto have agreed to calculate annual rental for the Leased Premises, the total Rental Area contains 1,148,946 area square feet as depicted in Exhibit “C-1” which is attached hereto and by this reference made a part hereof. The Rental Area includes paved areas which Lessee shall construct to comply with the Minimum Standards. (i)The escalation of Rent described herein above is generally described in Exhibit “D-1” attached hereto, such Exhibit is for demonstration purposes and is not intended to control the Rent Commencement Date or Rent Escalation Date for any Phase (as defined for each Phase above), such Dates to be established as set forth herein above. 4.3 Commencing on May 1st , 2022, and on May 1st in each year thereafter during the remainder of the Term, the annual rent as described above shall be adjusted by multiplying the annual rent payable in the next preceding year by a fraction, the numerator of which shall be the C.P.I., as hereinafter defined, published for the previous month of December and the denominator of which shall be the C.P.I. published for the month of December which preceded the month used as the numerator. In no event shall the annual rent be reduced from that payable in a previous year. If this Agreement is executed after January 1st, such C.P.I. increase for the calendar year in which this Agreement is executed shall be prorated. The term "C.P.I." as used herein shall mean the Consumer Price Index for all Urban Consumers, all items, Selected Large Cities, for the Denver/Boulder Area as published by the Bureau of Labor Statistics of the United States Department of Labor, 1982-84 base = 100. In the event the base year is changed, the C.P.I. shall be converted to the equivalent of the base year 1982-84 = 100. In the event the Bureau of Labor Statistics ceases to use the C.P.I., or this index, an equivalent or comparable economic index will be used. EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 159 Item 11. 10 4.4 The annual rent payable hereunder may be paid in advance in annual installments, or shall be paid in equal monthly installments on the first day of each month in advance at the office of the Airport Manager or at such other office as may be directed in writing by the Cities. Payments due to the Cities under this Agreement shall be made in legal tender of the United States and paid without offset. In addition to any other remedies provided in this Agreement, in the event that any rental, fee or charge set f orth in this Agreement is not paid to the Cities within ten (10) days of the date due, Lessee agrees to pay a late charge of $50.00 for each such late payment, and default interest shall accrue on such payment from the date the payment was due, at a rate of twelve percent (12%) per annum. With respect to the hangars Lessee proposes to construct as part of the Improvements depicted on Exhibit B-2, Lessee agrees that the hangars shall, collectively, be at least a total square footage reasonably consistent with Exhibit B-2 to be finally as part of site plan development approval process and shall have a concrete or asphalt floor, with each Hangar to have at least one aircraft access door sized to accommodate an average private aircraft. Lessee shall use commercially reasonable and diligent efforts to complete construction of the Hangars within 3 years from the completion of horizontal infrastructure needed to serve the same. 4.5 Lessee, as additional rent, shall construct and maintain a paved aircraft ramp area on the Leased Premises (the “Ramp”) pursuant to Section 5.9. The Ramp must be designed and built to size and specifications in compliance with the Minimum Standards, and for a minimum weight bearing capacity, established by the Cities, built to the full width of the Leased Premises, and to connect with adjacent taxiway, ramp and/or auto parking areas, in order that a continuous and safe pavement section results as shown in Exhibit C-1. In calculating the square foot apron required for FBO operations under the Minimum Standards, this calculation includes all ramp and aircraft circulation spaces, including the fifty (50) feet adjacent to hangars. If access to the Leased Premises is not available on existing taxiways and/or roadways, then Lessee may also be requested to construct the same as part of site plan development approval process. It is the responsibility of Lessee to maintain the entire Ramp area, and all other pavement areas on the Leased Premises, in a manner, which is safe and clean of debris so as not to cause danger or unsafe conditions for taxiing aircraft and Airport users. Notwithstanding the foregoing, t he Cities shall be responsible for snow removal on the aircraft Ramp area excluding any parking and side lots and excluding any area within three feet (3’) of any Hangar; provided , however, that priority of snow removal shall be in accordance with the Cities’ Snow Removal Plan as it now exists or as it may be amended in the Cities’ sole discretion. Lessee grants to users of the Airport the right to use aircraft Ramp areas on the Leased Premises for passage of aircraft at all times on and near the adjacent taxiway. The construction time and default provisions of subsection 4.4 shall be applicable to the Ramp described in this subsection. 4.6 The Cities und erstand that Lessee intends to sublease portions of the Leased Premises and/or the Improvements located thereon and, in such instances, the Cities may agree to accept payments of any rents or fees required hereunder directly from such sublessees; provided, however, that the obligations of such a sublessee to make any payment required hereunder directly to the Cities shall not relieve Lessee of its liability or obligations for such payment. EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 160 Item 11. 11 4.7 Fees due under the Minimum Standards or to obtain any permit or license required by the Minimum Standards for commercial activities conducted in whole or part on the Leased Premises shall be paid by Lessee to the Cities as additional rent under this Agreement. 4.78 In order to provide flexibility with the phasing of the development, if a later Phase were to be initiated before any other undeveloped Phase, that would replace the next Phase in the rent schedule. For example, purposes, if Phase V were to be the next phase of the development and Phase II development has not been initiated, Phase V would take the place of the Phase II rent schedule. In addition to any requirements to obtain prior approval of revised site plans from the City of Loveland, if applicable, the Lessee agrees to provide no less than sixty (60) days’ advance notice to the Cities along with a revised site plan regarding any such changes in phasing. ARTICLE 5: ACCEPTANCE, CONSTRUCTION, CARE, MAINTENANCE, AND REPAIR 5.1 Subject to the provisions of Sections 1.3 and 1.4 hereof, Lessee accepts possession of the Leased Premises “as is” in its present condition, and, subject to all limitations imposed upon the use thereof by the rules and regulations of the Federal Aviation Administration (“FAA”), the Airport Rules and Regulations (as hereinafter defined), and by ordinances of the Cities. The Cities represent to Lessee that, to their knowledge, the Leased Premises are free of any adverse environmental conditions and no part of the Leased Premises lies in a flood hazard area or constitutes a fresh water wetland, nor is any part of the Leased Premises within one hundred feet (100’) feet of a fresh water wetland. Except as may otherwise be provided for herein, the Cities shall not be required to maintain nor to make any improvements, repairs or restoration upon or to the Leased Premises or to any of the improvements presently located thereon or placed thereon by Lessee. 5.2 Lessee may construct the Improvements on the Leased Premises for the uses specified in Article 3 hereof and shall not be required to obtain any approvals from the Cities in connection therewith so long as the construction of the Improvements is substantially consistent with the previously approved Plans and Specifications. Prior to the commencement of any construction of the Improvements, Lessee shall have the Leased Premises staked by a certified surveying company to ensure all Improvements are place accurately on the Leased Premises. Within ninety (90) days of any certificate of occupancy being received, Lessee shall submit to the Airport Manager a full set of as- built record drawings of the completed Improvements, which among other things, depicts exact locat ions of the completed Improvements, including utilities, made on and/or off of the Leased Premises. 5.3 All improvements, alterations, additions, removal and relocation of structures and construction projects constructed on the Leased Premises shall in all respects be accomplished in a good and workmanlike manner; in accordance with previously approved Plans and Specifications and the applicable building code; pursuant to a valid building permit, when applicable, issued by the applicable authority; according to the terms and conditions of such building permit; and in a manner consistent with state and federal requirements. 5.4 Lessee shall include in all construction contracts entered into by it in connection with any construction of the Improvements, a provision requiring the contractor to indemnify, release, and save harmless the Cities, their commissioners, officers, representatives, agents and employees from any and all loss of or damage to property, or injuries to, or death of, any person or persons and from EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 161 Item 11. 12 any and all damages, suits, causes of action, and judgments, including workman’s compensation claims, in any way resulting from, or arising out of, directly or indirectly, such contractor’s operations in connection herewith, and the contractor’s use or occupancy of the Leased Premises, and of any portion of the Airport, and including acts and omissions of officers, employees, representatives, agents, servants, subcontractors, assigns, and suppliers of the contractor as well as all other persons doing business with contractor; provided, however, that the Cities shall give the contractor prompt and timely notice of any claim made against the Cities which may result in a judgment against the Cities because of such injuries or damages, and shall deliver to the contractor all papers, notices, documents, summons and other legal process served upon the Cities or its agents; provided further, that the contractor and its insurer, or either of them, shall have the right to compromise and defend all claims, actions, suits and proceedings to the extent of the contractor’s interests therein; and, provided further, contractor need not indemnify, release and save harmless the Cities against loss of property, or injury to or death of persons, caused by the negligence or willful misconduct of the Cities, their commissioners, agents or employees. Lessee shall require the contractor to furnish liability insurance in such amounts as may be reasonably required by the Cities. Lessee shall also include in any construction contract such provisions as may be reasonably required by the Cities relating to the operations of the contractor on the Airport. Lessee shall provide to the Cities a copy of all construction contracts entered into in connection with the Leased Premises. 5.5 When construction work involving structural components or structural modification has been completed, Lessee shall deliver to the Cities a certificate of an architect or structural engineer licensed to practice in the State of Colorado, not in regular employ of either party hereto and familiar with the construction of said improvements, certifying that the improvements have been constructed substantially in accordance with the approved Plans and Specifications and in compliance with all laws, ordinances, and governmental rules and regulations and orders and certifying that in the engineer’s or architect ’s opinion such improvements have an expected useful life of a duration which is customary for such improvements under similar conditions and circumstances. 5.6 Except as otherwise expressly provided herein, Lessee shall, throughout the term of this Agreement, assume the entire responsibility, cost and expense for all repair and maintenance whatsoever on the Leased Premises and all Improvements thereon in a good workmanlike manner, whether such repair or maintenance be ordinary or extraordinary, structural or otherwise. Additionally, Lessee, without limiting the generality hereof, shall, except as otherwise expressly provided herein: 5.6.1 Keep at all times, in a clean and orderly condition and appearance, the Leased Premises, all Improvements thereon and all of Lessee’s fixtures, equipment and personal property which are located on any part of the Leased Premises. Lessee shall not park or leave, or allow to be parked, aircraft on the taxiways, ramps or pavement adjacent to any building in a manner which unduly interferes with or obstructs access to other buildings or movement on adjacent taxiways. 5.6.2 Provide and maintain on the Leased Premises all obstruction lights and similar devices, and safety equipment required by law. 5.6.3 Take measures to prevent erosion, including but not limited to, the planting and replanting of grasses with respect to all portions of the Leased Premises not paved or built upon, if any, and in particular shall plant, maintain and replant any landscaped areas. EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 162 Item 11. 13 5.6.4 Be responsible for the maintenance and repair of all utility services lines placed on the Leased Premises and used by Lessee exclusively, including, but not limited to, water lines, gas lines, electrical power and telephone conduits and lines, sanitary sew ers and storm sewers. 5.6.5 Maintain (or cause to be maintained) all paved areas of the Leased Premises, excluding the Additional Taxiway (hereinafter defined), in a manner that is safe and clear of debris so as not to cause danger or unsafe conditions for taxiing aircraft and Airport users. 5.7 Lessee shall conduct an initial Phase I environmental study (“Phase I”) for the Leased Premises within six (6) months of the Effective Date. Such Phase I shall serve as a baseline for the provisions of this Paragraph 5.7 and 5.8 below. If such Phase I identifies conditions that need to be remediated, Lessor shall forthwith do so at its sole cost and expense, if Lessee so elects. Lessee shall notify the Cities of its decision to remediate within thirty (30) days of completion of the Phase I. If Lessee does not elect to remediate, the Lease shall terminate on the thirty-first (31st) day after completion of the Phase I. Thereafter, Lessee shall not cause or permit any Hazardous Material as said term is hereinafter defined, to be brought upon, kept or used in or about the Leased Premises by Lessee, its agents, employees, contractors, or sublessees without the prior written consent of the Cities, which consent the Cities shall not unreasonably withhold, condition or delay as long as Lessee demonstrates to the Cities’ reasonable satisfaction that such Hazardous Material is necessary, desirable or useful to Lessee’s business or operations on the Leased Premises and will be used, kept and stored in compliance with all laws regulating such Hazardous Material (“Hazardous Material Regulations”). Notwithstanding the foregoing, aircraft fuel, lubricating oil, antifreeze and biodegradable cleaning solvents used in the course of aircraft maintenance may be brought upon and used on the Leased Premises in the ordinary course of Lessee’s or its sublessees’ operations as long as any such materials are used, kept, stored, transported and disposed of in compliance with all applicable Hazardous Material Regulations, including, without limitation, the Storm Water Management Plan adopted by the Cities. If (i) Lessee breaches the obligations stated in the preceding sentence, or (ii) if the presence of Hazardous Material on the Leased Premises if caused by or voluntarily permitted by Lessee results in contamination of the Leased Premises, then Lessee shall indemnify, defend and hold the Cities harmless from any and all claims, judgments, damages, penalties, fines, costs, liabilities, or losses which arise during or after the lease term as the result of such contamination. This indemnification of the Cities by Lessee includes, without limitation, costs incurred in connection with any investigation of site conditions or any cleanup, remedial, removal or restoration work required by any federal, state, or local governmental agency or political subdivision because of Hazardous Material present in the soil or groundwater on or under the Leased Premises that occurred during the term of this Agreement as a result of Lessee’s or its sublessees’ acts. Without limiting the foregoing, if the presence of any Hazardous Material on the Leased Premises caused or permitted by Lessee results in any contamination of the Leased Premises, Lessee shall promptly take all actions, at its sole expense, as are necessary to return the Leased Premises to the condition existing prior to the introduction of any such Hazardous Material to the Leased Premises. 5.8 “Hazardous Material” means any hazardous or toxic substance, material or waste which is or becomes regulated by any local governmental authority, the State of Colorado, or the United States Government and includes, without limitation, any material or substance that is (i) defined as a “hazardous substance” under appropriate state law provisions; (ii) petroleum; (iii) asbestos; (iv) designated as a “hazardous substance” pursuant to Section 311 of the Federal Water EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 163 Item 11. 14 Pollution Act (33 U.S.C. §1321); (v) defined as “hazardous waste” pursuant to Section 1004 of the Federal Resource Conservation and Recovery Act (42 U.S.C. § 6903); (vi) defined as a “hazardous substance” pursuant to Section 101 of the Comprehensive Environmental Compensation and Liability Act (42 U.S.C. §9601); or (vii) defined as a “regulated substance” pursuant to Subchapter IX Solid Waste Disposal Act (Regulation of Underground Storage Tanks) (42 U.S.C. §6991). 5.9 As shown on the Discovery Air Lease Areas site plan attached hereto as Exhibit “C- 1”, Lessee may, as part of the Improvements, construct paved areas to be used for aircraft taxiing, towing and parking (“Ramp Area”), consistent with the Minimum Standards and upon such schedule and in phases as determined by Lessee in its sole discretion. Lessee shall construct the Ramp Area in compliance with FAA standards for airport design in effect at the time of construction. The Ramp Area is depicted on Exhibit “C-1” comprising a portion but not all of the Leased Premises. 5.9.1 The Ramp Area shall be built in accordance with all state and federal regulations, including those of the FAA Advisory Circular 150/5370-10H, Standard Specifications for Construction of Airports and the Transportation Security Administration (“TSA”), and Lessee shall warrant that the same shall be free of defects in materials and workmanship for a period of two (2) years after substantial completion and acceptance by the Cities of same. 5.10 Subject to the provisions of Article 10, Lessee shall keep the Leased Premises, and the Improvements constructed by Lessee or its sublessees on the Leased Premises free and clear of any liens and encumbrances, except as contemplated by Article 10, or unless expressly approved in writing by the Cities, and shall indemnify, hold harmless and defend the Cities from any liens and encumbrances arising out of any work performed or materials furnished by or at the direction of Lessee or its sublessees. In the event any lien is filed, Lessee shall do all acts necessary to discharge any lien within ten (10) days of filing, or if Lessee desires to contest any lien, then Lessee shall deposit with the Cities such security as the Cities shall reasonably demand to insure the payment of the lien claim. In the event Lessee fails to pay any lien claim when due or fails to deposit the security with the Cities, then the Cities shall have the right to expend all sums necessary to discharge the lien claim, and Lessee shall pay the Cities, as additional rental when the next rental payment is due, all sums expended by the Cities in discharging any lien, including reasonable attorneys’ fees and costs. ARTICLE 6: ADDITIONAL OBLIGATIONS OF LESSEE 6.1 Lessee shall conduct its operations and cause each of its sublessees to conduct their operations hereunder in an orderly and proper manner, considering the nature of such operations, so as not to unreasonably annoy, disturb, endanger or be offensive to others. 6.2 Further, Lessee shall take all reasonable measures: 6.2.1 To reduce to a practicable minimum vibrations tending to damage any equipment, structure, buildings or portions of buildings. 6.2.2 Not to produce or allow to be produced on the Airport through the operation of machinery or equipment any electrical, electronic or other disturbances that interfere with the operation by the Cities or the FAA of air navigational, communication or flight equipment on the Airport or on aircraft using the Airport, or with ground transportation communications. EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 164 Item 11. 15 6.3 Lessee shall comply and shall require all of its sublessees to comply with all federal, state and municipal laws, ordinances, rules, regulations and requirements, the Minimum Standards, Airport security rules and regulations, and other Airport rules and regulations, as they now exist or may hereafter be amended or promulgated, and the terms of this Agreement, applicable to the Leased Premises and the Improvements thereon and its operations and activities at the Airport hereunder. 6.4 Lessee and its sublessees shall commit no nuisance, waste or injury on the Leased Premises, and shall not do, or permit to be done, anything that may result in the creation, commission or maintenance of such nuisance, waste or injury on the Leased Premises. 6.5 Lessee shall take measures and shall require its sublessees to take measures to ensure security in compliance with FAA and TSA regulations and the Airport Security Plan, as they now exist or may hereafter be amended or promulgated. 6.6 Lessee and its sublessees shall not do, nor permit to be done, any act or thing which will invalidate or conflict with any fire insurance policies or regulations applicable to the Leased Premises or any part thereof; or other contiguous premises at the Airport. 6.7 Lessee and its sublessees shall be responsible for complying with all laws and regulations related to the installation, maintenance or operation of any restaurant, kitchen, stand or other establishment of any type for the sale of food or of any vending machines or device designed to dispense or sell merchandise or services of any kind to the general public. 6.8 Except for uses permitted under Article 3 hereof , Lessee shall not provide or allow to be provided, any services of any sort on the Leased Premises for commercial purposes without all required development approvals, and a license from the Cities if and as required by the Minimum Standards then in effect. 6.9 Lessee will conduct its operations and require its sublessees to conduct their operations in such a manner as to keep the noise produced by aircraft engines and component parts thereof, and any other noise, to a minimum, by such methods as are practicable, considering the extent and type of the operations of Lessee and /or its sublessees and the limitations of federal law. Lessee and its sublessees agree that all aircraft based on the Leased Premises shall comply with the noise standards established under Part 36 of Title 14 of the Code of Federal Regulations (“FAR 36”) as amended from time to time. In addition, Lessee and its sublessees will employ the maximum amount of noise arresting and noise reducing devices that are available and economically practicable, considering the extent of their operations, but in no event less than those devices required by federal, state or local law. In its use of the Leased Premises, Lessee and its sublessees shall take all possible care, exercise caution and use commercially reasonable efforts to minimize prop or jet blast interference and prevent jet blast damage to aircraft operating on taxiways and to buildings, structures and roadways, now located on or which in the future may be located on areas adjacent to the Leased Premises. In the event the Cities determine that Lessee and/or its sublessees has not curbed the prop or jet blast interference and/or damage, Lessee hereby covenants and agrees to erect and maintain at its own expense such structure or structures as may be necessary to prevent prop or jet blast interference, subject, however, to the prior written approval of the Cities as to type, manner and method of construction. EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 165 Item 11. 16 6.9 Lessee shall not store nor permit the storage of disabled aircraft or any equipment or materials outside of the Improvements on the Leased Premises for any period in excess of thirty (30) consecutive days without the prior written approval of the Cities. 6.10 On forms and at the frequency prescribed by the Airport Manager at least annually, and with respect to each aircraft regularly stored on the Leased Premises, Lessee shall provide the Cities with the (a) make and model (b) N -number and (c) identity and address of the registered owner. This requirement shall apply to aircraft whether owned by Lessee or another party, and regardless of whether its storage is subject to the Minimum Standards. ARTICLE 7: INGRESS AND EGRESS 7.1 Lessee and its sublessees shall have the right of ingress and egress between the Leased Premises and the public landing areas at the Airport by means of connecting taxiways; and between the Leased Premises and the entrance(s) to the Airport by means of connecting paved roads. In addition, Lessee and its sublessees shall have the right to use the public runways and public aviation aids at all times during which they are open to the public. Such rights of ingress, egress and use shall be in common with others having rights of use and passage thereon. 7.1.1 Lessee shall be responsible for the construction of any taxiways and/or roadways needed for access to the Leased Premises at its sole cost and expense. Upon completion of construction, those portions of any such taxiways or roadways located off the Leased Premises shall be conveyed and dedicated to the Cities or City of Loveland, as determined in a development agreement to be considering during the Inspection and Entitlement Period as part of site plan development approval process that shall address maintenance, conveyance and dedication, warranty, and warranty surety. 7.2 The use of any roadways or taxiways on the Airport shall be subject to the Rules and Regulations of the Airport, which are now in effect or which may hereafter be promulgated, and subject to temporary closure, provided, however, that any closure shall be only for reasonably necessary or unique circumstances, and provided that fourteen (14) days’ prior written notice will be given to Lessee relevant to any closure, unless such closure is necessary due to emergency. Lessee, for itself and its authorized sublessees, hereby releases and discharges the Cities, the Commission, their officers, employees and agents, and all their respective successors and assigns, of and from any and all claims, demands, or causes of action which Lessee or its authorized sublessees may now or at any time hereafter have against any of the foregoing, arising or alleged to arise out of the closing of any street, roadway or other area, provided that other reasonable means of access to the Leased Premises remain available to Lessee without cost to Lessee, unless otherwise mandated by emergency safety considerations or lawful exercise of the police power. Lessee shall not do or permit anything to be done which will interfere with the free access and passage of others to space adjacent to the Leased Premises or in any streets or roadways on the Airport. 7.3 Lessee understands and agrees that the public taxilanes on the Leased Premises may be used by all airplanes legally upon the Airport. Lessee shall assure that the public taxilanes are left open and unobstructed. Notwithstanding anything contained in this Agreement to the contrary, it is expressly agreed and understood that Lessee has no obligation to monitor or police vehicles (except those allowed on the Airport by Lessee) on the public taxilanes to determine if they are legally upon the Airport or to determine if they are operating in a safe condition or in a safe manner. EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 166 Item 11. 17 ARTICLE 8: INSURANCE, DAMAGE OR DESTRUCTION 8.1 Lessee, at its sole cost and expense, shall procure and maintain throughout the term of this Agreement insurance protection for all risk coverage on the Improvements which are part of the Leased Premises to the extent of one hundred percent (100%) of the actual replacement cost thereof. All policies of insurance required herein shall be taken out with insurance companies qualified to do insurance business in the State of Colorado and having a Bests’ Insurance Guide rating of at least A- , and all such policies shall be renewed at least ten (10) days before their expiration date. 8.1.1 The above stated property insurance shall be for the benefit and to safeguard the interests of the Cities and Lessee. 8.1.2 Lessee shall settle all losses with the insurance carrier. Lessee shall consult with the Cities and use its best efforts to obtain a settlement that covers the cost of repairing or rebuilding the Improvements. 8.1.3 Lessee shall provide certificates of insurance, in a form acceptable to the Cities and marked “premium paid ” evidencing existence of all insurance required to be maintained prior to occupancy of the Improvements. Upon the failure of Lessee to maintain such insurance as above provided, the Cities, at their option, may take out such insurance and charge the cost thereof to Lessee, which shall be payable on demand, or may give notice of default pursuant to Article 18. 8.2 In the event the Improvements and any subsequent improvements, insurable or uninsurable, on the Leased Premises are damaged or destroyed to the extent that they are unusable by Lessee for the purposes for which they were used prior to such damage, or same are destroyed, Lessee shall promptly repair and reconstruct the Improvements substantially as they were immediately prior to such casualty or in a new or modified design, subject to the provisions of Article 5 hereof and applicable building codes and A irport design standards, if any, existing at the time of repairing or rebuilding. If the aforesaid damage or destruction occurs in the last five (5) years of the Term, Lessee may elect not to repair and reconstruct the Improvements, subject to the following terms and conditions: 8.2.1 Lessee shall give the Cities written notice of its election not to repair and reconstruct the Improvements within ninety (90) days of the date upon which the Improvements were damaged or destroyed. Is such case, and Cities shall have the option of either: 8.2.1.1 Requiring Lessee to clear the site, remove all debris and paving, stub up all utilities, and restore the site to its original cleared condition prior to commencement of construction; in which case Lessee shall retain all insurance proceeds above those necessary to fund such site restoration; or 8.2.1.2 Taking title to the damaged Improvements, as is, in which case Lessee shall assign to and the Cities shall retain all insurance coverage and proceeds. EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 167 Item 11. 18 8.2.2 Upon Lessee’s notice under Section 8.2.1 hereof and Lessee’s compliance with the provisions of Sections 8.2.1.1 or 8.2.1.2 hereof, the Cities shall terminate this Agreement and relieve Lessee of all future rental obligations hereunder. 8.3 All policies of insurance required herein shall name the Cities as additional insureds. 8.4 Whenever in this Agreement, provision is made for the carrying of any insurance, it shall be deemed that such provision is complied with if such insurance otherwise complying with such provision is carried under a blanket policy or policies covering the Leased Premises as well as other properties. 8.5 Lessee shall not violate, nor permit to be violated, any of the conditions of any of the said policies; and shall perform and satisfy, or cause to be satisfied, the requirements of the companies writing such policies. ARTICLE 9: LIABILITIES AND INDEMNITIES 9.1 The Cities shall not in any way be liable for any cost, liability, damage or injury, including cost of suit and expenses of legal services, claimed or recovered by any person whomsoever as a result of any operations, works, acts or omissions performed on the Leased Premises, or the Airport, by Lessee, its agents, servants, employees or authorized sublessees, or their guests or invitees. Lessee, and each of its sublessees, shall not in any way be liable for any cost, liability, damage or injury, including cost of suit and expenses of legal services, claimed or recovered by any person whomsoever as a result of any operations, works, acts or omissions performed on the Leased Premises, or the Airport, solely by the Cities or the Commission, their agents, servants, employees or authorized tenants, or their guests or invitees. 9.2 Lessee agrees (and shall cause its sublessees to agree) to indemnify, save and hold harmless, the Cities and the Commission, their officers, agents, servants and employees (collectively, “Indemnified Parties”), of and from any and all costs, liability, damage and expense, including costs of suit and reasonable expenses of legal services, claimed or recovered, justly or unjustly, falsely, fraudulently or frivolously, by any person, firm or corporation by reason of injury to, or death of, any person or persons, including Cities’ personnel, and damage to, destruction or loss of use of any property, including Cities’ property, to the extent arising from, or resulting from, any operations, works, acts or omissions of Lessee, its agents, servants, employees, contractors, or authorized sublessees; provided, however, the foregoing indemnity shall not apply to the extent any such cost, liability, damage or expense arises from the negligence or willful misconduct of any Indemnified Parties. Upon the filing with the Cities by anyone of a claim for damages arising out of incidents for which Lessee herein agrees to indemnify and hold the Indemnified Parties harmless, the Cities shall notify Lessee of such claim and in the event that Lessee does not settle or compromise such claim, then Lessee shall undertake the legal defense of such claim on behalf of Lessee and the Indemnified Parties. It is specifically agreed, however, that the Cities at their own cost and expense, may participate in the legal defense of any such claim. Any final judgment rendered against the Indemnified Parties for any cause for which Lessee is liable shall be conclusive against Lessee as to liability and amount upon the expiration of the time for appeal. 9.3 Lessee shall procure and keep in force during the term of this Agreement a policy of commercial general liability insurance insuring Lessee and the Cities against any liability for personal EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 168 Item 11. 19 injury, bodily injury, death, or property damage arising out of the subject of this Agreement with a combined single limit of at least Five Million dollars ($5,000,000.00). Lessee shall also procure and keep in force during the term of this Agreement policies or endorsements providing coverage for aircraft liability, hangar keepers’ liability, products liability, motor vehicle liability and insured contracts coverage with the same combined single limit. Finally, Lessee shall maintain workers’ compensation insurance in accordance with Colorado law. The policies shall be for the mutual and joint benefit and protection of Lessee and the Cities and such policies shall contain a provision that the Cities, although named as an insured, shall nevertheless be entitled to recovery under said policies for any loss occasioned to it, its servants, agents, citizens, and employees by reason of Lessee’s negligence. Lessee shall provide certificates of insurance, in a form reasonably acceptable to the Cities and marked “premium paid ” evidencing existence of all insurance required to be maintained by Lessee prior to the Commencement Date. In addition to the insurance requirements of this Section 9.3, Lessee shall procure (or cause the operator of the FBO facility to procure), prior to the opening and operation of the FBO facility, all insurance for an FBO and for any additional specialized services offered by Lessee (or the FBO operator) as required by the Minimum Standards; provided that in the event of any conflict between the insurance provisions of this Agreement and the terms of the Minimum Standards, the most stringent insurance requirements shall apply. 9.4 Lessee represents that it is the owner of or fully authorized to use any and all services, processes, machines, articles, marks, names or slogans used by it in its operations under or in any way connected with this Agreement. Lessee agrees to save and hold the Cities, their officers, employees, agents and representatives free and harmless of and from any loss, liability, expense, suit or claim for damages in connection with any actual or alleged infringement of any patent, trad emark or copyright, or arising from any alleged or actual unfair competition or other similar claim arising out of the operations of Lessee under or in any way connected with this Agreement. ARTICLE 10: LEASEHOLD MORTGAGES 10.1 Subject to the Cities’ prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed , Lessee may, at any time, or from time to time, hypothecate, pledge, encumber or mortgage its interest in this Agreement, the leasehold estate in the Leased Premises created hereby, or any part or parts thereof or interest therein. No mortgage or other encumbrance of the leasehold that is granted by Lessee may encumber the fee or reversionary interest of the Cities in the Leased Premises. So long as Lessee is in compliance with all terms, conditions, and provisions of the Lease, the right of Lessee to mortgage its leasehold estate shall be a continuing right and shall not be deemed to be exhausted by its exercise on one or more occasions. However, it shall be a further condition of Lessee’s right to mortgage its leasehold estate that the mortgagee agree notwithstanding the terms of any mortgage that all insurance proceeds available to Lessee will be applied to repair and restore any d amaged building(s) or other improvements located on the Leased Premises. If Lessee shall execute a Leasehold Mortgage of its leasehold estate, and if the holder of such Leasehold Mortgage shall provide the Cities through the Commission or Airport Manager with notice in the manner described in Article 23 with notice of such Leasehold Mortgage together with a true copy of such Leasehold Mortgage and the name and address of the Leasehold Mortgagee (as hereinafter defined), then following receipt of such notice by the Cities, the provisions of this Article 10 shall apply in respect to such Leasehold Mortgage. 10.2 The term “Leasehold Mortgage” as used in this Agreement shall include, but not be limited to, a mortgage, a deed of trust, a deed to secure debt, or other security instrument by which EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 169 Item 11. 20 Lessee’s leasehold estate is mortgaged, conveyed, assigned, or otherwise transferred, to secure a debt or other obligation in connection with the construction contemplated by Article 5, above. The term “Leasehold Mortgagee” as used in this Agreement shall refer to the holder of any Leasehold Mortgage upon the leasehold estate created by this Agreement and/or in Lessee’s interest and estate in any Improvements. 10.3 The Cities, upon providing Lessee any notice of d efault under this Agreement or termination of this Agreement, shall at the same time provide a copy of such notice to the Leasehold Mortgagee by first class U.S. mail at the address specified in the notice given pursuant to Section 10.1, above. Such Leasehold Mortgagee shall have the additional periods of time specified in Sections 10.4 hereof to remedy, commence remedying, or cause to be remedied the default or acts or omissions which are specified in any such notice. The Cities shall accept such performance by or at the instigation of such Leasehold Mortgagee as if the same had been done by Lessee. 10.4 Anything contained in this Agreement to the contrary notwithstanding, if any default shall occur which entitles the Cities to terminate this Agreement, the Cities shall have no right to terminate this Agreement unless, following the expiration of the period of time given Lessee to cure such default or the act or omission which gave rise to such default, the Leasehold Mortgagee is given an additional period of sixty (60) days to: 10.4.1 Notify the Cities of such Leasehold Mortgagee’s desire to defeat such termination notice; and 10.4.2 Pay or cause to be paid all rent, additional rent, and other payments then due and in arrears as specified in the termination notice to such Leasehold Mortgagee and which may become due during such sixty (60) day period; and 10.4.3 Comply with due diligence and continuity, or in good faith commence to and with diligence continue to pursue compliance with all non-monetary requirements of this Agreement then in default. 10.5 The making of a Leasehold Mortgage shall not be deemed to constitute an assignment or transfer of this Agreement or of the leasehold estate hereby created, nor shall the Leasehold Mortgagee, as such, be deemed to be an assignee or transferee of this Agreement or of the leasehold estate hereby created so as to require such Leasehold Mortgagee, as such, to assume the performance of any of the terms, covenants or conditions of this Agreement. Any Leasehold Mortgagee who acquires Lessee’s interest in this Agreement by foreclosure, assignment in lieu of foreclosure or otherwise shall be deemed to be a permitted assignee or transferee, and shall be deemed to have agreed to perform all of the terms, covenants and conditions on the part of Lessee to be performed hereunder from and after the date of such purchase or assignment, but only for so long as such purchaser or assignee is the owner of the leasehold estate. If the Leasehold Mortgagee or its designee shall become holder of the leasehold estate and if the Improvements on the Leased Premises shall have been or become materially damaged on, before or aft er the date of such purchase or assignment, the Leasehold Mortgagee or its designee shall, subject to Section 8.2 hereof, be obligated to repair, replace or reconstruct the damaged Improvements. EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 170 Item 11. 21 ARTICLE 11: RULES AND REGULATIONS Lessee acknowledges that the Cities have proposed or adopted rules and regulations with respect to the occupancy and use of the Airport (“Rules and Regulations”), and such Rules and Regulations may be amended, supplemented or re-enacted from time to time by the Cities, provided that such Rules and Regulations apply generally to all similar occupants and users on the Airport and same do not unreasonably impede, impair or restrain general aviation usage at the Airport . Lessee and its sublessees agree to observe and obey any and all such Rules and Regulations and all other federal, state and municipal rules, regulations and laws and to require its officers, agents, employees, sublessees, contractors, and suppliers to observe and obey the same. In the event of a conflict between the provisions of the Rules and Regulations and this Agreement, the more stringent provisions shall control. This provision will include compliance with the Airport’s Noise Abatement Plan as it now exists and as it may hereafter be amended or supplemented. The Cities reserve the right to deny access to the Airport and its facilities to any person, firm or corporation that fails or refuses to obey and comply with the Rules and Regulations or any other applicable rules, regulations or laws. Nothing in this Article 11 shall be construed to limit the rights of Lessee to file any action challenging the lawfulness of any such amendment, supplement or reenactment of any such Rules and Regulations, or to challenge the application of the same to Lessee. ARTICLE 12: SIGNS Lessee shall have the right to install and maintain one or more signs on the Leased Premises identifying Lessee, its sublessees and their operations and identifying permitted business tenants in the FBO facility; provided, however, the subject matter, type, design, number, location and elevation of such signs, and whether lighted or unlighted, shall be subject to and in accordance with the City of Loveland Sign Code and Airport design standards, if any. No sign will be allowed that may be confusing to aircraft pilots or automobile drivers or other traffic. ARTICLE 13: ASSIGNMENT AND SUBLEASE 13.1 The prior written consent of the Cities shall be required for any sale, transfer, assignment or sublease of this Agreement and of the leasehold estate hereby created. Consent may be withheld by the Cities in the event (a) Lessee is in default of any of the terms or conditions of this Agreement beyond any applicable notice and cure period; (b) the transferee, assignee or sublessee does not deliver to the Cities its written agreement to be bound by all of the provisions of this Agreement in a form reasonably satisfactory to the Cities; (c) the transferee, assignee or sublessee does not submit proof of insurance as required at Sections 8 and 9, herein; or (d) the transferee, assignee or sublessee has not met the licensing requirements set forth in the Minimum Standards. In reviewing a request for consent to assignment or sublease of this Agreement, the Cities may inquire into the legal, technical and financial qualifications of the proposed transferee, assignee or sublessee, and Lessee shall provide such information and assistance as may be reasonably requested in doing so. The Cities may condition their consent to or deny consent for any transfer, assignment or sublease upon terms and conditions reasonably related to the legal, technical, and financial qualifications of the proposed transferee, assignee or sublessee. Consent shall not otherwise be unreasonably withheld, conditioned or delayed . Upon the granting of written consent by the Cities and actual transfer or assignment, Lessee shall be released by the Cities from its obligations under this Agreement. Other EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 171 Item 11. 22 than in the manner set forth in Article 29 below, Lessee shall not subdivide or fractionalize either its ownership of the Improvements or leasehold interest in the Leased Premises. 13.2 Notwithstanding the provisions of Section 13.1, Lessee shall have the right to engage in the following activities through sublease, license or concession agreements, which shall be subject and subordinate to this Agreement and include the same insurance and indemnity provisions in favor of the Cities, without the prior written consent of the Cities: 13.2.1 “Aeronautical activities” as defined in Section 3.1 above; and 13.2.2 Subletting of hangar space, retail and restaurant space, office space and the FBO facility, renting of tie-down space, and other activities included in services provided by an FBO under the Minimum Standards, as amended from time to time. 13.3 Notwithstanding anything to the contrary contained herein, Lessee shall be permitted to assign this Agreement (without the need for Cities’ approval) to any corporation with which Lessee may merge or consolidate, or to which Lessee may sell or assign all or substantially all of its corporate assets, or to a wholly owned subsidiary or affiliate, so long as such corporation or entity taking assignment is controlled by Martin Lind. 13.4 Any attempt to transfer any interest in violation of the provisions of this Article 13 shall be void unless otherwise provided by Colorado law. ARTICLE 14: CONDEMNATION In the event that all or any portion of the Leased Premises is taken for any public or quasi-public purpose by any lawful power or authority by the exercise of the right of appropriation, condemnation or eminent domain (or pursuant to a sale to such power or authority under the threat of condemnation or eminent domain), all rent s payable with respect to that portion of the Leased Premises taken shall no longer be payable, and the proceeds, if any, from such taking or sale shall be allocated between the Cities and Lessee in accordance with the applicable condemnation law, with Lessee being entitled to compensation for the fair market value of the leasehold interest, Improvements and personal property taken. If a portion of the Leased Premises is so taken or sold, and as a result thereof, the remaining part cannot reasonably be used to continue the authorized uses set forth in Article 3, as determined by Lessee in its sole discretion, then this Agreement shall terminate at Lessee’s election, and Lessee’s obligation to pay rent and perform the other conditions of this Agreement shall be deemed to have ceased as of the date of such taking or sale. In the event Lessee elects not to terminate this Agreement, effective as of the date of such taking, the rental payable hereunder shall be wholly abated during any time Lessee or its sublessees are unable to carry on their operations, and upon restoration and resumption of Lessee’s and its sublessees’ operations, the rental payable hereunder shall be reduced by the same proportion which that portion of the Leased Premises so taken bears to the entire area of the Leased Premises prior to such taking. Nothing in this subparagraph shall be construed to limit the Cities' rights to condemn Lessee's leasehold rights and interests in the Leased Premises pursuant to state law. EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 172 Item 11. 23 ARTICLE 15: CIVIL RIGHTS NON-DISCRIMINATION 15.1 In all its activities within the scope of its airport program, Lessee agrees to comply with pertinent statutes, Executive Orders and such rules as identified in Title VI List of Pertinent Nondiscrimination Acts and Authorities to ensure that no person shall, on the grounds of race, color, national origin (including limited English proficiency), creed, sex (including sexual orientation and gender identity), age, or disability be excluded from participating in any activity conducted with or benefiting from Federal assistance. Lessee transfers its obligation to another, the transferee is obligated in the same manner Lessee. This provision obligates Lessee for the period during which the property is used or possessed by Lessee and the Airport remains obligated to the FAA. This provision is in addition to that required by Title VI of the Civil Rights Act of 1964. 15.2 During the performance of this Agreement, Lessee for itself, its assignees, and successors in interest, agrees to comply with the following non-discrimination statutes and authorities: a. Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 Stat. 252) (prohibits discrimination on the basis of race, color, national origin); b. 49 CFR part 21 (Non-discrimination in Federally-assisted programs of the Department of Transportation – Effectuation of Title VI of the Civil Rights Act of 1964); c. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42 U.S.C. § 4601 (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects); d. Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. § 794 et seq.) as amended (prohibiting discrimination on the basis of disability), and 49 CFR Part 27 (Nondiscrimination on the Basis of Disability in Programs or Activities Receiving Federal Financial Assistance); e. The Age Discrimination Act of 1975, as amended (42 U.S.C. § 6101 et seq.) (prohibits discrimination on the basis of age); f. Airport and Airway Improvement Act of 1982 (49 U.S.C. § 47123), as amended (prohibits discrimination based on race, creed, color, national origin, or sex); g. The Civil Rights Restoration Act of 1987 (PL 100-259) (broadening the scope, coverage, and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975, and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of terms “programs or activities” to include all of the programs or activities of the Federal-aid recipients, sub-recipients and contractors, whether such programs or activities are Federally funded or not); h. Titles II and III of the Americans with Disabilities Act of 1990 (42 USC § 12101, et seq) (prohibits discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities) as implementing by U.S. Department of Transportation Regulations at 49 CFR Parts 37 and 38; i. The Federal Aviation Administration’s Nondiscrimination statute (49 USC § 47123) (prohibits discrimination on the basis of race, color, national origin, and sex); j. Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, which ensures non-discrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations; EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 173 Item 11. 24 k. Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of limited English proficient (LEP). To ensure compliance with Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access to your programs [70 Fed. Reg. at 74087 (2005)]; and l. Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities (20 USC § 1681 et seq.) 15.3 Lessee, including personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that (1) no person on the ground of race, color, or national origin, will be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities, (2) that in the construction of any improvements on, over, or under such land, and the furnishing of services thereon, no person on the ground of race, color, or national origin, will be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination, (3) that Lessee will use the premises in compliance with all other requirement s imposed by or pursuant to the list of non-discrimination acts and authorities, as enumerated in the preceding subsection. In the event of breach of any of the above nondiscrimination covenants, the Cities will have the right to terminate this Agreement and to enter or re-enter and repossess said land and the facilities thereon, and hold the same as if the Agreement had never been made or issued. 15.4 During the performance of this Agreement, Lessee, for itself, its assignees, and successors in interest, agrees as follows: a. Compliance with Regulations: Lessee will comply with the Title VI List of Pertinent Nondiscrimination Acts and Authorities, as they may be amended from time to time, which are herein incorporated by reference and made a part of this Agreement. b. Nondiscrimination: Lessee], with regard to the work performed by it during the Agreement, will not discriminate on the grounds of race, color, national origin (including limited English proficiency), creed, sex (including sexual orientation and gender identity), age, or disability in the selection and retention of subcontractors, including procurements of materials and leases of equipment. Lessee will not participate directly or indirectly in the discrimination prohibited by the Nondiscrimination Acts and Authorities, including employment practices when the contract covers any activity, project, or program set forth in Appendix B of 49 CFR part 21. c. Solicitations for Subcontracts, including Procurements of Materials and Equipment: In all solicitations, either by competitive bidding or negotiation made Lessee for work to be performed under a subcontract, including procurements of materials, or leases of equipment, each potential subcontractor or supplier will be notified by Lessee of contractor’s obligations under this Agreement and the Nondiscrimination Acts and Authorities. EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 174 Item 11. 25 d. Information and Reports: Lessee will provide all information and reports required by the Acts, the Regulations, and directives issued pursuant thereto and will permit access to its books, records, accounts, other sources of information, and its facilities as may be determined by the Cities or the FAA to be pertinent to ascertain compliance with such Nondiscrimination Acts and Authorities and instructions. Where any information required of a contractor is in the exclusive possession of another who fails or refuses to furnish the information, Lessee will so certify to the Cities or the FAA, as appropriate, and will set forth what efforts it has made to obtain the information. e. Sanctions for Noncompliance: In the event of Lessee noncompliance with the non- discrimination provisions of this Agreement, the Cities will impose such contract sanctions as it or the FAA may determine to be appropriate, including, but not limited to, cancelling, terminating, or suspending this Agreement, in whole or in part. f. Incorporation of Provisions: Lessee will include the provisions of this subsection in every contract, including procurements of materials and leases of equipment, unless exempt by the Acts, the Regulations, and directives issued pursuant hereto. Lessee will take action with respect to any subcontract or procurement as the Cities or the FAA may direct as a means of enforcing such provisions including sanctions for noncompliance. Provided, that if Lessee becomes involved in, or is threatened with litigation by a subcontractor, or supplier because of such direction, Lessee may request the Cities to enter into any litigation to protect the interests of the Cities. In addition, Lessee may request the United States to enter into the litigation to protect the interests of the United States. ARTICLE 16: GOVERNMENTAL REQUIREMENTS 16.1 Lessee shall procure all licenses, certificates, permits or other authorization from all governmental authorities, if any, having jurisdiction over Lessee’s operations at the Leased Premises which may be necessary for Lessee’s operations on the Airport. 16.2 Lessee shall pay all taxes, license, certification, permits and examination fees and excise taxes which may be assessed, levied, exacted or imposed on the Leased Premises or operation hereunder or on the gross receipts or gross income to Lessee therefrom, and shall make all applications, reports and returns required in connection therewith. 16.3 Lessee shall pay all water, sewer, utility and other applicable use taxes and fees, arising from its occupancy and use of the Leased Premises and/or the Improvements. 16.4 Lessee agrees that the Cities are governmental entities; therefore, all direct and indirect financial obligations of each City under this Agreement shall be subject to annual appropriations pursuant to Article X, Section 20 of the Colorado Constitution, the Cities' respective charters and ordinances, and applicable law. This Agreement and the obligations of the Cities hereunder do not constitute a multi-year fiscal obligation and are expressly contingent upon the Cities' respective governing bodies budgeting and appropriating the funds necessary to fulfill the Cities’ respective obligations. EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 175 Item 11. 26 ARTICLE 17: RIGHTS OF ENTRY RESERVED 17.1 The Cities, by their officers, employees, agents, representatives and contractors, shall have the right at all reasonable times to enter upon the Leased Premises and enter the Improvements for any and all purposes not inconsistent with this Agreement, including, without limitation, inspection, environmental testing, and repair and maintenance of the Additional Taxiway, if it exists, provided such action by the Cities, their officers, employees, agents, representatives and contractors does not unreasonably interfere with Lessee’s (or its sublessees’) use, occupancy or security requirements of the Leased Premises. Except when necessary for reasons of public safety or law enforcement, or for the protection of property, as reasonably determined by the Cities, the Cities shall provide seventy-two (72) hours’ written notice of its intent to inspect. 17.2 Without limiting the generality of the foregoing, the Cities, by their officers, employees, agents, representatives, contractors and furnishers of utilities and other services, shall have the right, at their own cost and expense, whether for their own benefit, or for the benefit of others than Lessee at the Airport, to maintain existing and future Airport mechanical, electrical and other utility systems and to enter upon the easements in the Leased Premises to make such repairs, replacements or alterat ions thereto, as may, in the opinion of the Cities, be deemed necessary or advisable, and from time to time to construct or install over, in or under existing easements within the Leased Premises such systems or parts thereof and in connection with such maintenance use the Leased Premises ’ existing easements for access to other parts of the Airport otherwise not conveniently accessible; provided, however, that in the exercise of such rights of access, repair, alteration or new construction, the Cities shall not install a utility under or through any building on the Leased Premises or unreasonably interfere with the actual use and occupancy of the Leased Premises by Lessee (or its sublessees). It is specifically understood and agreed that the reservation of the aforesaid right by the Cities shall not impose or be construed to impose upon the Cities any obligation to repair, replace or alter any utility service lines now or hereafter located on the Leased Premises for the purpose of providing utility services only to the Leased Premises; provided, however, that if the Cities repair, replace or alter any utility service lines now or hereafter located on the Leased Premises for the purpose of providing utility services to others, the Cities will restore the Leased Premises to their preexisting condition in a timely manner. Lessee will provide for the installation, maintenance and repair, at its own expense, of all service lines of utilities providing services only to the Leased Premises. Cities will repair, replace and maintain all other utility lines, at the Cities’ expense. 17.3 In the event that any personal property of Lessee or any sublessee shall obstruct the access of the Cities, their officers, employees, agents or contractors, or the utility company furnishing utility service over, along and across the existing easements to any of the existing utility, mechanical, electrical and other systems, and thus shall interfere with the inspection, maintenance or repair of any such system pursuant to Section 17.2, Lessee shall move such property, as directed by the Cities or said utility company, upon reasonable notice by the Cities, in order that access may be had to the system or part thereof for inspection, maintenance or repair. If Lessee or any sublessee shall fail to so move such property after direction from the Cities or said utility company to do so, the Cities or the utility company may move it, and Lessee on behalf of itself and its sublessees hereby waives any claim against the Cities for damages as a result there from, except for claims for damages arising from the Cities’ negligence or willful misconduct . EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 176 Item 11. 27 17.4 The Cities reserve the right to access the Leased Premises at all times and without notice to Lessee for the operation of emergency vehicles and fire trucks as necessary or appropriate to the safe operation of the Airport. ARTICLE 18: TERMINATION 18.1 In the event of a default on the part of Lessee in the payment of rents, the Cities shall give written notice to Lessee and each holder of a Leasehold Mortgage, if any, of which they have been give notice under Section 10.1, of such default, and demand the cancellation of this Agreement, or the correction thereof. If, within sixty (60) days after the date the Cities give such notice, Lessee has not corrected said default and paid the delinquent amount in full, then subject to Article 10 above, the Cities may, by written notice to Lessee and the holder of a Leasehold Mortgage, terminate this Agreement . 18.2 Subject to the provisions of Section 18.1 and Article 10 above, this Agreement, together with all rights and privileges granted in and to the Leased Premises, shall terminate at the option of the Cities with prompt written notice to Lessee and the holder of a Leasehold Mortgage upon the happening of any one or more of the following events: 18.2.1 The filing by Lessee of a voluntary petition in bankruptcy, or any assignment for benefit of creditors of all or any part of Lessee’s assets; or 18.2.2 Any institution of proceedings in bankruptcy against Lessee; provided, however, that Lessee may defeat such termination if the petition is dismissed within one hundred twenty (120) days after the institution thereof; or 18.2.3 The filing of a petition requesting a court to take jurisdiction of Lessee or its assets under the provision of any Federal reorganization act which, if it is an involuntary petition is not dismissed within one hundred twenty (120) days after its being filed; or 18.2.4 The filing of a request for the appointment of a receiver or trustee of all, or substantially all, of Lessee’s assets by a court of competent jurisdiction, which if the request if not made by Lessee is not rejected within one hundred twenty (120) days after being made, or the request for the appointment of a receiver or trustee of all, or substantially all, of Lessee’s assets by a voluntary agreement with Lessee’s creditors. 18.3 Subject to Article 10, upon the default by Lessee in the performance of any covenant or condition required to be performed by Lessee other than the payment of rent, and the failure of Lessee to remedy such default for a period of sixty (60) days after mailing by the Cities of written notice to remedy the same, unless more extensive notice is otherwise provided for in this Agreement, the Cities may, by written notice of cancellation to Lessee, and each holder of a Leasehold Mortgage, terminate this Agreement and all rights and privileges granted hereby in and to the Leased Premises. 18.4 Upon the default by Lessee, and the giving of notice of the default and cancellation by the Cities as provided for elsewhere herein, the notice of cancellation shall become final. 18.5 Subject to the provisions of Section 18.1 and Article 10, upon the cancellation or termination of this Agreement for any reason, all rights of Lessee, authorized tenants and any other EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 177 Item 11. 28 person in possession of the Leased Premises shall terminate, including all rights or alleged rights of Leasehold Mortgagees, sublessees, creditors, trustees, assigns, and all others similarly so situated as to the Leased Premises. Except as may be expressly provided to the contrary elsewhere herein, upon said cancellation or termination of this Agreement for any reason, the Leased Premises and all Improvements located thereon, except for Lessee’s (and its sublessees’) equipment, fixtures and other personal property which may be removed from said Leased Premises without damage thereto as provided elsewhere herein, shall be and become the property of the Cities, free and clear of all encumbrances and all claims of Lessee, its sublessees (if any), Leasehold Mortgagees, creditors, trustees, assigns and all others, and the Cities shall have immediate right of possession of the Leased Premises and such Improvements. Lessee agrees to execute any documents, if any, necessary to transfer title of such Improvements to the Cities. 18.6 Failure by the Cities or Lessee to take any authorized action upon default by Lessee of any of the terms, covenants or conditions required to be performed, kept and observed by Lessee shall not be construed to be, nor act as, a waiver of said default nor of any subsequent default of any of the terms, covenants and conditions contained herein to be performed, kept and observed by Lessee. Acceptance of rentals by the Cities from Lessee, or performance by the Cities under the terms hereof, for any period or periods after a default by Lessee of any of the terms, covenants and conditions herein required to be performed, kept and observed by Lessee shall not be deemed a waiver or estoppel of any right on the part of the Cities to cancel this Agreement for any subsequent failure by Lessee to so perform, keep or observe any of said terms, covenants or conditions. 18.7 This Lease will terminate at the option of Lessee: 18.7.1 Upon the permanent closure of the Airport, the term “permanent closure” to mean for the purposes of this Agreement, the closure of the A irport for ninety (90) or more consecutive days; 18.7.2 The loss of the ability of Lessee, its sublessees or their customers due to no significant fault of Lessee to fly in or out of the Airport for reasons other than inclement weather, casualty or disaster, for a period of ninety (90) consecutive days; and 18.7.3 The default by Cities in the performance of any covenant or condition required to be performed by the Cities, and the failure of the Cities to remedy such default for a period of sixty (60) days after receipt from Lessee of written notice to remedy the same, or default in the timely payment of any money due Lessee and failure to cure such default within sixty (60) days after notice to the Cities. Notice of exercise of the option to terminate by Lessee shall be given in the manner specified in Article 23 (Notices). 18.8 If, after the FBO facility is operational, Lessee ceases to conduct or cause to be conducted its authorized Aeronautical Activities on the Leased Premises for a period of twelve (12) consecutive months, the Cities may terminate this Agreement by written notice to Lessee given at any time while such cessation continues, unless Lessee resumes or causes to be resumed such activities within sixty (60) days following receipt of written notice from the Cities of such intent to terminate this Agreement. 18.9 Upon termination of this Agreement prior to the expiration of the Term, the Cities may, but are not required to, relet the Leased Premises, or any part thereof, for the whole or any part of the EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 178 Item 11. 29 remainder of the Term, or for a longer period of time. Subject t o Section 21.3, any rents received by the Cities as a result of such reletting shall remain the property of the Cities and shall not be credited to or otherwise become the property of Lessee. ARTICLE 19: OWNERSHIP OF IMPROVEMENTS, SURRENDER 19.1 Title to the Improvements during the Term shall be in Lessee, but notwithstanding such title, the terms and conditions of this Agreement shall govern the construction, use, maintenance and operation of the Improvements and the exercise of Lessee’s rights with respect thereto; and Lessee’s right, title, interest, and estate in and to the Improvements shall not be separable from the leasehold estate granted Lessee hereunder. Lessee shall be entitled to claim all depreciation and other tax attributes applicable to the use and ownership of the Improvements during the Term. Upon the expiration or earlier termination of this Agreement , title to the Improvements shall vest in and become the f ull and absolute property of the Cities without need of any further action being taken by Lessee or the Cities, and Lessee shall immediately surrender possession of the Improvements upon such termination or expiration as provided in Section 19.2 below. Lessee shall execute any and all documents, if any, necessary to transfer title to the Cities. Except as otherwise expressly set forth herein, the value or cost of the Improvements constructed by Lessee shall not in any way constitute a substitute for or a credit against any obligation of Lessee under this Agreement to pay rent as required pursuant to Article 4. 19.2 Subject to Section 8.2 above, upon the expiration, cancellation or earlier termination of this Agreement pursuant to any terms hereof, Lessee shall peaceably quit and surrender the Leased Premises and Improvements, and any and all machinery and equipment constructed, installed or placed by Lessee thereon which is necessary to the operation of the Improvements to the Cities in good order and condition, ordinary wear and tear and obsolescence in spite of repair excepted . Lessee shall have the right, but not the obligation, within sixty (60) days after expiration or earlier termination of this Agreement to remove from the Leased Premises all personal property, fixtures and trade equipment other than fixtures, machinery and equipment necessary to the operation of the Improvements. Lessee shall repair, at its sole cost and expense, any damage to the Leased Premises or to the Improvements caused by such removal. 19.3 Upon such expiration, cancellation or termination, the Cities may re-enter and repossess the Leased Premises together with all Improvements and additions thereto, or pursue any remedy permitted by law for the enforcement of any of the provisions of this Agreement, at the Cities’ election. In the event that Lessee remains in possession of the Leased Premises after the expiration, cancellat ion or termination of this Agreement without written agreement with respect thereto, then Lessee shall be deemed t o be occupying the Leased Premises as a tenant at-will, subject to all of the conditions, provisions and obligations of this Agreement, but without any rights to extend the term of this Agreement . The Cities’ acceptance of rent from Lessee in such event shall not alter the status of Lessee as a tenant at-will whose occupancy of the Leased Premises may be terminated by the Cities at any time upon thirty (30) days’ prior written notice. ARTICLE 20: SERVICES TO LESSEE 20.1 The Cities covenant and agree that during the term of this Agreement, and subject to Airport priorities then in effect, they will use reasonable efforts to (a) operate the Airport as such for the use and benefit of the public; provided, however, that the Cities may prohibit or limit any given type, kind or class of aeronautical use of the Airport if such action is necessary for the safe and/or EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 179 Item 11. 30 efficient operation of the Airport or necessary to serve the civil aviation needs of the public, (b) maintain the runways, taxiways and Additional Taxiway, if it exists, in good repair, including the removal of snow, and (c) keep in good repair hard -surfaced public roads on the Airport for access to the Leased Premises and remove snow. 20.1.1 Except as otherwise expressly set forth herein, said obligations of the Cities relevant to the maintenance of public roads and taxiways shall extend to the point where in such roads, streets and taxiways reach the property line of the Leased Premises, or the Ramp area constructed by Lessee under Article 4.5. 20.1.2 Except as otherwise expressly set forth herein, said obligations of the Cities relevant to the snow removal from public roads and taxiways shall extend to the point where in such roads, streets and taxiways reach the property line of the Leased Premises, and shall additionally include the Ramp area constructed by Lessee under Article 4.5 subject to the snow removal limitations set forth under Article 4.5, above. 20.2 Except in cases of emergency, in which case no notice shall be required, the Cities will give not less than fourteen (14) days’ prior written notice to Lessee of any anticipated temporary Airport closure, for maintenance, expansion or otherwise. Rent due for the Leased Premises under Article 4 shall abate on the twenty first (21st) consecutive day of any voluntary temporary Airport closure by the Cities and such abatement shall continue until the Airport reopens, provided that no abatement shall exceed a total of sixty (60) consecutive days’ rent. Notwithstanding the above, the Cities shall not be deemed to be in breach of any provision of this Article 20 in the event of a permanent closure of the Airport ; provided, however, that if such permanent closure is in connection with the construction of a new airport by the Cities, Lessee shall have the option to enter into a substitute ground lease agreement with the Cities for the use of a portion of such new airport not smaller than the Leased Premises under financial terms which are no less favorable than those set forth herein. ARTICLE 21: SURVIVAL OF THE OBLIGATIONS OF LESSEE 21.1 In the event that this Agreement shall have been terminated due to default by Lessee in accordance with notice of termination as provided in Article 18, all of the obligations of Lessee under this Agreement shall survive such termination, re-entry, regaining or resumption of possession and shall remain in full force and effect for the full term of this Agreement, and the amount or amounts of damages or deficiency shall become due and payable to the Cities to the same extent, at the same time or times, and in the same manner as if no termination, re-entry, regaining or resumption of possession had taken place. The Cities may maintain separate actions each month to recover the damage or deficiency then due or at its option and at any time may sue to recover the full deficiency for the entire unexpired term of this Agreement discounted to present value. 21.2 The amount of damages for the period of time subsequent to termination (or re-entry, regaining or resumption of possession) on account of Lessee’s rental obligations shall be the sum of the following: 21.2.1 The amount of the total of all installments of rents, less the installments thereof payable prior to the effective date of termination; and EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 180 Item 11. 31 21.2.2 An amount equal to all expenses incurred by the Cities and not reimbursed in connection with regaining possession, restoring the Leased Premises required by Article 19, above, acquiring a new lease for the Leased Premises, legal expenses (including, but not limited to, reasonable attorneys’ fees) and putting the Leased Premises in order. 21.3 There shall be credited to the account of Lessee against its survived obligations hereunder, the amount actually received from any lessee, licensee, permittee, or other occupier in connection with the use of the Leased Premises or Improvements or portions thereof during the balance of the term of this Agreement, and the market value of the occupancy of such portions of the Leased Premises (including the Improvements) as the Cities may themselves during such period actually use and occupy. No such use and occupancy shall be, or be construed to be, an acceptance of a surrender of the Leased Premises, nor shall such use and occupancy constitute a waiver of any rights of the Cities. The Cities will use their best efforts to minimize damages to Lessee under this Article. 21.4 The provisions of this Article 21 shall not be applicable to termination of this Agreement if expressly provided to the contrary elsewhere in this Agreement . ARTICLE 22: USE SUBSEQUENT TO CANCELLATION OR TERMINATION The Cities shall, upon termination or cancellation, or upon re-entry, regaining or resumption of possession, have the right to repair and to make structural or other changes to the Leased Premises and Improvements, including changes which alter their character and the suitability thereof for the purposes of Lessee under this Agreement, without affecting, altering or diminishing the obligations of Lessee hereunder, provided that any structural changes shall not be at Lessee’s expense. ARTICLE 23: NOTICES 23.1 Any notice, consent, approval or other communication given by either party to the other relating to this Agreement shall be in writing, and shall be delivered in person, sent by certified U.S. mail postage prepaid, sent by reputable overnight courier, or sent by electronic means (with evidence of such transmission received) to such other party at the respective addresses set forth below (or at such other address as may be designated from time to time by written notice given in the manner provided herein). Such notice shall, if hand delivered or personally served, be effective immediately upon receipt. If sent by US mail postage prepaid, such notice shall be deemed given on the third (3rd) business day following deposit in the United States mail, postage prepaid and properly addressed; if delivered by overnight courier, notice shall be deemed effective on the first (1st) business day following deposit with such courier; and if delivered by electronic means, notice shall be deemed effective when received. 23.2 The notice addresses of the parties are as follows: To the Cities: Northern Colorado Regional Airport Commission Attn: Airport Manager 4900 Earhart Drive Loveland, CO 80538 Facsimile: (970) 962-2855 EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 181 Item 11. 32 Email address: airport@cityofloveland.org With a copy to: Loveland City Attorney’s Office 500 E. Third Street Loveland, CO 80537 Fort Collins City Attorney’s Office City Hall West 300 LaPorte Ave. Fort Collins, CO 80521 To Lessee: Attn: Martin Lind Company Name: Discovery Air, LLC c/o Water Valley Land Company Address: 1625 Pelican Lakes Pointe, Suite 201 City, State and Zip Code: Windsor, CO 80550 Email Add ress: mlind@watervalley.com ARTICLE 24: INVALID PROVISIONS The invalidity of any provisions, articles, paragraphs, portions or clauses of this Agreement shall have no effect upon the validity of any other part or portion hereof, so long as the remainder shall constitute an enforceable agreement. Furthermore, in lieu of such invalid provisions, articles, paragraphs, portions or clauses, there shall be added automatically as a part of this Agreement, a provision as similar in terms to such invalid provision as may be possible and be legal, valid and enforceable. ARTICLE 25: MISCELLANEOUS PROVISIONS 25.1 Remedies to be Non-exclusive. All remedies provided in this Agreement shall be deemed cumulative and additional and not in lieu of, or exclusive of, each other, or of any other remedy available to the Cities, or Lessee, at law or in equity, and the exercise of any remedy, or the existence herein of other remedies or indemnities shall not prevent the exercise of any other remedy, provided that the Cities’ remedies in the event of default shall not exceed those set forth in this Agreement. 25.2 Non-liability of Individuals. No director, officer, agent or employee of the Cities shall be charged personally or held contractually liable by or to the other party under any term or provision of this Agreement or of any supplement, modification or amendment to this Agreement because of any breach thereof, or because of his or their execution or attempted execution of the same. Except to the extent otherwise expressly provided for herein, no officer, manager, member, agent or employee of Lessee shall be charged personally or held contractually liable by or to the other party under any term or provision of this Agreement or of any supplement, modification or amendment to this Agreement because of any breach thereof, or because of his or their execution or attempted execution of the same. EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 182 Item 11. 33 25.3 Estoppel Certificate. At the request of Lessee in connection with (i) its obtaining a Leasehold Mortgage or (ii) an assignment of its interest in this Agreement, the Cities shall execute and deliver a written statement , within thirty (30) days after Lessee’s request, identifying them as the lessors under this Agreement and certifying the following: 25.3.1 The documents that then comprise this Agreement, 25.3.2 That this Agreement is in full force and effect, 25.3.3 The then current annual amount of rent and the date through which it has been paid, 25.3.4 The expiration date of this Agreement, 25.3.5 That no amounts are then owed by Lessee to the Cities (or, if amounts are owed, specifying the same) 25.3.6 To the knowledge of the Cities, there are not defaults by Lessee under this Agreement or any facts which but for the passage of time, the giving of notice or both would constitute such a default, and 25.3.7 Remaining rights to renew the term of this Agreement to the extent not theretofore exercised. The Leasehold Mortgagee or party acquiring Lessee’s interest in this Agreement shall be entitled to rely conclusively upon such written statement. 25.4 Recording of Memorandum of Agreement. A memorandum of t his Agreement shall be recorded by the Cities, and the costs of such recordation, and any closing costs associated with this Agreement, its execution and recordation, shall be billed to and paid by Lessee as additional rent. 25.5 General Provisions. 25.5.1 This Agreement shall be construed in accordance with the laws of the State of Colorado and venue shall be in Larimer County, Colorado. 25.5.2 This Agreement is made for the sole and exclusive benefit of the Cities and Lessee, their successors and assigns, and is not made for the benefit of any third party. 25.5.3 In the event of any ambiguity in any of the terms of this Agreement, it shall not be construed for or against any party hereto on the basis that such party did or did not author the same. 25.5.4 All covenants, stipulations and agreements in this Agreement shall extend to and bind each party hereto, its legal representatives, successors and assigns. 25.5.5 The titles of the several articles of this Agreement are inserted herein for convenience only, and are not intended and shall not be construed to affect in any manner the terms and provisions hereof, or the interpretation or construction thereof. EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 183 Item 11. 34 25.5.6 Nothing herein contained shall create, or be construed to create, a partnership, joint venture, agency or any other relationship between the Cities and Lessee, other than that of landlord and tenant. The Cities and Lessee each expressly disclaim the existence of any such other relationship between them. 25.5.7 Cities have and may allow certain portions of the Airport to be used by other tenants at any time and Lessee shall not interfere in any manner with said other tenants or with the facilities granted to such tenants. Nothing herein contained shall be construed to grant or authorize the granting of an exclusive right prohibited by Section 308 of the Federal Aviation Act of 1958, as amended, and the Cities reserved the right to grant to others the privilege and right of conducting any one or all of the activities specified herein, or any other activities of an aeronautical nature. 25.5.8 In the event any action or proceeding is brought to recover payments due under this Agreement or take possession of the Leased Premises and/or the improvements thereon, or to enforce compliance with this Agreement for failure to observe any of its covenants, the prevailing party shall be awarded reasonable attorneys’ fees and costs as set by the court. 25.5.9 The time within which either party hereto shall be required to perform any act under this Agreement, other than the payment of money, shall be extended by a period equal to the number of days during which performance of such act is delayed unavoidably by strikes, lockouts, acts of God, governmental restrictions, failure or inability to secure materials or labor by reason of or similar regulation or order of any governmental or regulatory body, war, enemy action, acts of terrorism, civil disturbance, fire, unavoidable casualties, or any similar occurrence. 25.5.10 The Cities designate the Airport Manager as their representatives who shall make, within the scope of their authority, all necessary and proper decisions with reference to this Agreement. 25.5.11 Lessee agrees that that the Cities are governmental entities subject to the Colorado Open Records Act (“CORA”), C.R.S. § 24-72-201 to 205.5, which provides that all public records shall be open for inspection by any person at reasonable times, except as provided in CORA or as otherwise specifically provided by law. Lessee may mark any documents provided to the Cities as “trade secrets”, “privileged information”, or “confidential commercial, financial, or other data.” Unless such documents are marked appropriately and in accordance with CORA, the Cities may be required to release relevant information related to this Agreement and the Leased Premises. 25.6 Availability of Government Facilities. In the event the existence, maintenance or operation of air navigation aids or other facilities supplied or operated by the United States or the State of Colorado at or in conjunction with the Airport are discontinued, the Cities shall have no obligation to furnish such facilities. 25.7 Avigation Easement . There is hereby reserved to the Cities, their successors and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the Leased Premises, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used for navigation of or flight EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 184 Item 11. 35 in the air, using said airspace or landing at, taking off from or operating on the Airport. Lessee agrees to execute any and all documents, if any, necessary to establish such avigation easement. 25.8 Part 77. Lessee agrees to comply with the notification and review requirements covered in Part 77 of the Federal Aviation Regulations or any amendments thereto in the event any future structure or building is planned for the Leased Premises, or in the event of any planned modification or alteration of any present or future building or structure situated on the Leased Premises. ARTICLE 26: SUBORDINATION CLAUSES 26.1 This Agreement is subject and subordinate to the following: 26.1.1 The Cities reserve the right to develop and improve the Airport in any manner approved by the City Councils, provided Lessee is not deprived of (i) the use of or access to the Leased Premises by motor vehicles and/or aircraft owned or operated by Lessee or Lessee’s assigns, sublessees, renters, agents, employees or invitees or (ii) any of Lessee’s rights under this Agreement. 26.1.2 The Cities reserve the right to take any action they consider necessary to protect the aerial approaches to the Airport against obstruction, together with the right to prevent Lessee from erecting or permitting to be erected any building or other structure on the Airport which would limit the usefulness of the Airport or constitute a hazard to aircraft. 26.1.3 This Agreement is and shall be subordinate to the provisions of existing and future agreements between the Cities and the United States relative to the operation or maintenance of the Airport, the execution of which has been or may be required as a condition precedent to the obtaining or expenditure of federal funds for the benefit of the Airport. This Agreement shall also be subordinate to any FAA and TSA regulations as they exist or as they may be amended from time to time in the future. 26.1.4 During time of war or national emergency, the Cities shall have the right to lease all or any part of the landing area of the Airport to the United States for military use, and if any such lease is executed, the provisions of this Agreement insofar as they may be inconsistent with the provisions of such lease to the government, shall be suspended, but such suspension shall not extend the term of this Agreement. Abatement of rentals shall be reasonably determined by the Cities and Lessee in proportion to the degree of interference with Lessee’s use of the Leased Premises. 26.1.5 Except to the extent required for the performance of any obligations of Lessee hereunder, nothing contained in this Agreement shall grant to Lessee any rights whatsoever in the airspace above the Leased Premises other than those reasonably necessary to Lessee’s enjoyment of the Leased Premises and Cities’ Airport facilities and which are consistent with FAA rules, regulations and orders currently or subsequently effective. Further, Lessee’s rights in airspace above the Leased Premises and the Airport and the Airport facilities shall be not less than the rights therein by other users of the Airport and Airport facilities. EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 185 Item 11. 36 ARTICLE 27: QUIET ENJOYMENT Cities hereby covenant and warrant that they are the owners of the Leased Premises and that Lessee upon payment of rentals herein provided for and performance of provisions on its part to be performed shall and may peacefully possess and enjoy the Leased Premises during the term hereof and any extensions hereof without any interruption or disturbance. ARTICLE 28: ENTIRE AGREEMENT This Agreement constitutes the entire agreement of the parties hereto and replaces all prior Leases and Lease Amendments entered into between the parties, including the Northern Colorado Ground Lease Agreement dated January 16, 2019 and First Amendment to Northern Colorado Regional Airport Ground Lease Agreement dated January 29, 2021. This Agreement may only be changed, modified, discharged or extended by written instrument duly executed by the Cities and Lessee. The parties agree that no representations or warranties shall be binding upon the Cities or Lessee unless expressed in writing and properly authorized according to the party’s established requirements, as amended . ARTICLE 29: REQUIREMENTS FOR CONDOMINIUMIZATION This Agreement does not authorize Lessee to create either a common interest community or hangar condominiums on the Leased Premises. If Lessee desires to create a common interest community or hangar condominiums on the Leased Premises, a written amendment to this Agreement shall be required, containing such additional terms as the Cities may reasonably require, including but not necessarily limited to terms necessary for compliance with the Colorado state law. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written. [Signatures on the following page] EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 186 Item 11. 37 CITY OF LOVELAND, COLORADO Rod Wensing, Acting City Manager ATTEST: Clerk APPROVED AS TO FORM: _________________________________ Acting Deputy City Attorney CITY OF FORT COLLINS, COLORADO ___________________________________ Kelly DiMartino, City Manager ATTEST: City Clerk APPROVED AS TO FORM: _________________________________ Deputy City Attorney Discovery Air, LLC, a Colorado limited liability company, ATTEST: By: Name: Title: EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 187 Item 11. 38 Exhibit “A -2” Description of Leased Premises [ATTACHED] EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 188 Item 11. PP P 1 LEASE LINE SITE PLAN KEYNOTES 2 LINE OF EASMENT 3 FIRE HYDRANT, RE: CIVIL 4 WATER LINE, RE: CIVIL 5 GAS LINE, RE: CIVIL 6 UNDERGROUND STORM, RE: CIVIL 7 SEWER, RE: CIVIL 8 ELECTRICAL, RE: CIVIL 9 SECURITY FENCE 10 SECURITY GATE 11 TRASH ENCLOSURE, RE: PLANS AND DETAILS 12 ASPHALT PAVING, RE: CIVIL 13 ENTRANCE CANOPY ABOVE 14 TENSILE STRUCTURE ABOVE 15 ACCESSIBLE PARKING 16 PARKING LIGHT POLE, RE: PHOTOMETRIC 17 PAVEMENT STRIPING, TYP. 18 LANDSCAPE AREA, RE: LANDSCAPE DRAWINGS 19 NEW CURB CUT, RE: CIVIL 20 CONCRETE APRON PAVING, RE: CIVIL 21 SAND / OIL / GREASE INTERCEPTOR RE: CIVIL 22 APPROXIMATE LOCATIONS OF MONUMENT SIGN, FEILD VERIFY LOCATIONS DOES NOT ENCROACH INTO EASEMENTS, UTILITY LINES, ETC. 23 APPROXIMATE LOCATIONS OF AIRCRAFT TIE-DOWNS; COORDINATE EXACT LOCATIONS AND TYPE OF TIE-DOWNS WITH OWNER 24 APPROXIMATE LOCATION FDC 25 TRANSFORMER. RE: ELECTRICAL 26 LIGHT POLE BASE AND LIGHT POLE, TYP., RE: ELECTRICAL 27 BUILDING RESTRICTION LINE 28 PROPOSED PHASE LINE 30 TEMPORARY GRADING / LANDSCAPE SEEDING 31 ELECTRICAL VAULT LOCATION (5' X 8') RE: CIVIL 32 APPROXIMATE LOCATION OF ROOF MOUNTED MECHANICAL EQUIPMENT, RTU EQUIPMENT TO BE FULLY SCREENED BY PARAPET WALLS. ON BUILDING F, THE RTU EQUIPMENT WILL BE WITHIN A MECHANICAL WELL. 33 DOWNSPOUT LOCATION, TYP. 34 BACKUP POWER GENERATOR 35 EXISTING TAXIWAY TO REMAIN IN PHASE 1. TO BE MODIFIED IN PHASES 2, 3, AND 4 AS NEEDED 29 NOT USED 36 6" DIAMETER STEEL BOLLARD FILLED WITH CONCRETE 37 CAMPUS FIRE PUMP LOCATION, DEFERRED SUBMITTAL 38 BYPASS TANK, 15,000 GALLONS. TANK TO BE ENGINEERED TO SUPPORT A FIRE TRUCK AND TRAFFIC. WATER ENTRY DOWN SPOUT STORM TIE IN SITE PLAN NOTES 1. 2. 3. ALL HVAC AND OTHER MECHANICAL EQUIPMENT WILL BE SCREENED FROM PUBLIC VIEW. ALL BUILDING SIGNAGE AND MONUMENT SIGNAGE TO BE A DEFERRED SUBMITTAL, SIGNAGE SHOWN FOR LOCATION AND REFERENCE PURPOSES ONLY. PHASE LINE () RE: PHASING PLAN BUILDING C BUILDING F BUILDING A BUILDING B EXISTING BUILDING D 19 ° 4 3 ' 0 4 " 11 0 7 . 8 7 ' N W 24 f t 4 0 f t 2 4 f t 4 0 f t 2 4 f t 4 0 f t 2 4 f t 2 0 f t 2 4 f t 4 0 f t 2 4 . 1 3 f t 3 3 . 8 8 f t 2 6 f t 6 f t18 f t 24 f t 4 0 f t 2 4 f t 4 0 f t 2 4 f t 1 8 . 4 8 f t NO R T H 1 5 8 3 13 4 3 6 6 6 6 10 12 12 13 13 14 7 8 12 12 8 8 8 14 11 11 11 11 14 13 10 10 11 11 11 11 11 10 10 10 22 23 23 23 23 23 23 23 23 23 23 23 23 23 26 26 27 25 25 25 25 10 27 43 ft 53 ft 28 30 28 31 HO M E S T E A D H A N G A R S BL D G 1 HO M E S T E A D H A N G A R S BL D G 4 HO M E S T E A D H A N G A R S BL D G 5 EXI S T I N G B L D G 26 ft 26 ft 32 32 32 32 32 33 33 33 70° 16' 5 6 " 924.60'N E 70° 50' 4 2 " 1182.50'S W 0° 0 2 ' 1 3 " 85 6 . 6 3 ' N E 13 ° 4 9 ' 4 2 " 16 1 . 8 4 ' N E 9° 1 1 ' 4 1 " 90 . 4 8 ' N E PHASE L I N E 34 35 35 21 37 38 DI S C O V E R Y A I R D R . NEW RAMP ACCESS, TAXIWAY, 80FT CLEAR WIDTH 5.2 7 f t 80 f t BUILDING G 10 GARAGE / OFFICE BLDG E PARKING LOT EXPANSION AREA IF NEEDED 6 8 8 12 5 EXISTING PAVEMENT EXISTIN G P A V E M E N T EXISTING PAVEMENT 33 33 33 33 33 33 33 90' - 0" RELOCATED EXISTING LIGHT POLES 37 8 0 E a s t 1 5 t h S t r e e t , S u i t e 2 0 1 L o v e l a n d , C o l o r a d o 8 0 5 3 8 37 8 0 E a s t 1 5 t h S t r e e t , S u i t e 2 0 1 L o v e l a n d , C o l o r a d o 8 0 5 3 8 97 0 . 6 6 9 . 8 2 2 0 97 0 . 6 6 9 . 8 2 2 0 E- m a i l : i n f o @ h a u s e r a r c h i t e c t s p c . c o m E- m a i l : i n f o @ h a u s e r a r c h i t e c t s p c . c o m Ha u s e r A r c h i t e c t s p c . c o m Ha u s e r A r c h i t e c t s p c . c o m SHEET Ha u s e r A r c h i t e c t s , P . C . Ha u s e r A r c h i t e c t s , P . C . Wa t e r V a l l e y L a n d C o m p a n y Wa t e r V a l l e y L a n d C o m p a n y 16 2 5 P e l i c a n L a k e s P o i n t , S u i t e 2 0 1 16 2 5 P e l i c a n L a k e s P o i n t , S u i t e 2 0 1 Win d s o r , C O 8 0 5 5 0 Win d s o r , C O 8 0 5 5 0 97 0 . 6 8 6 . 5 8 2 8 97 0 . 6 8 6 . 5 8 2 8 PRELIMINARY PROGRESS PRINTPRELIMINARY PROGRESS PRINT NOT FOR CONSTRUCTIONNOT FOR CONSTRUCTION 8/ 2 8 / 2 0 2 3 1 : 5 6 : 5 7 P M 8/ 2 8 / 2 0 2 3 1 : 5 6 : 5 7 P M WA T E R V A L L E Y WA T E R V A L L E Y DIS C O V E R Y A I R DIS C O V E R Y A I R AR C H I T E C T U R A L S I T E P L A N AR C H I T E C T U R A L S I T E P L A N A2 0 160 240 32080 GRAPHIC SCALE RE V I S I O N S 1" = 80'-0" ARCHITECTURAL SITE PLAN1 1,148,946 sf Exhibit A-2 8/11/24 Discovery Air Lease Premise Description of Leased Premises EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 189 Item 11. 39 Exhibit “B-2” Preliminary Site Plan [ATTACHED] EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 190 Item 11. TRACT C TRACT C COMMERICALCOMMERICAL TRACT A TRACT A COMMERICALCOMMERICAL TRACT B TRACT B COMMERICALCOMMERICAL CONTINGENT RAMPCONTINGENT RAMP PU B L I C T A X I W A Y , F N L PU B L I C T A X I W A Y , F N L CONTINGENT RAMPCONTINGENT RAMP CO N T I N G E N T R A M P CO N T I N G E N T R A M P TEMP CONNECTIONTEMP CONNECTION IMPROVEMENT 1IMPROVEMENT 1 (EXISTING)(EXISTING) IMPROVEMENT 2IMPROVEMENT 2 BLDG DBLDG D BLDG EBLDG EBLDG CBLDG C BLDG FBLDG F BLDG BBLDG B BLDG ABLDG A BLDG GBLDG G IMPROVEMENT 3IMPROVEMENT 3 IMPROVEMENT 4IMPROVEMENT 4 IMPROVEMENT 5IMPROVEMENT 5 37 8 0 E a s t 1 5 t h S t r e e t , S u i t e 2 0 1 L o v e l a n d , C o l o r a d o 8 0 5 3 8 37 8 0 E a s t 1 5 t h S t r e e t , S u i t e 2 0 1 L o v e l a n d , C o l o r a d o 8 0 5 3 8 97 0 . 6 6 9 . 8 2 2 0 97 0 . 6 6 9 . 8 2 2 0 E- m a i l : i n f o @ h a u s e r a r c h i t e c t s p c . c o m E- m a i l : i n f o @ h a u s e r a r c h i t e c t s p c . c o m Ha u s e r A r c h i t e c t s p c . c o m Ha u s e r A r c h i t e c t s p c . c o m SHEET Ha u s e r A r c h i t e c t s , P . C . Ha u s e r A r c h i t e c t s , P . C . Wa t e r V a l l e y L a n d C o m p a n y Wa t e r V a l l e y L a n d C o m p a n y 16 2 5 P e l i c a n L a k e s P o i n t , S u i t e 2 0 1 16 2 5 P e l i c a n L a k e s P o i n t , S u i t e 2 0 1 Win d s o r , C O 8 0 5 5 0 Win d s o r , C O 8 0 5 5 0 97 0 . 6 8 6 . 5 8 2 8 97 0 . 6 8 6 . 5 8 2 8 PRELIMINARY PROGRESS PRINTPRELIMINARY PROGRESS PRINT NOT FOR CONSTRUCTIONNOT FOR CONSTRUCTION 9/ 2 9 / 2 0 2 3 2 : 0 9 : 0 4 P M 9/ 2 9 / 2 0 2 3 2 : 0 9 : 0 4 P M 50 1 7 L i n d b e r g h D r , L o v e l a n d , C O 8 0 5 3 8 50 1 7 L i n d b e r g h D r , L o v e l a n d , C O 8 0 5 3 8 WA T E R V A L L E Y WA T E R V A L L E Y DIS C O V E R Y A I R DIS C O V E R Y A I R IM P R O V E M E N T P L A N IM P R O V E M E N T P L A N A1 RE V I S I O N S 1" = 80'-0" DISCOVERY AIR CAMPUS- IMPROVEMENT PLAN1 Exhibit B-2 8/11/24 Site Plan 1,149,851 sf EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 191 Item 11. 40 Exhibit C -1 EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 192 Item 11. PP P 1 LEASE LINE SITE PLAN KEYNOTES 2 LINE OF EASMENT 3 FIRE HYDRANT, RE: CIVIL 4 WATER LINE, RE: CIVIL 5 GAS LINE, RE: CIVIL 6 UNDERGROUND STORM, RE: CIVIL 7 SEWER, RE: CIVIL 8 ELECTRICAL, RE: CIVIL 9 SECURITY FENCE 10 SECURITY GATE 11 TRASH ENCLOSURE, RE: PLANS AND DETAILS 12 ASPHALT PAVING, RE: CIVIL 13 ENTRANCE CANOPY ABOVE 14 TENSILE STRUCTURE ABOVE 15 ACCESSIBLE PARKING 16 PARKING LIGHT POLE, RE: PHOTOMETRIC 17 PAVEMENT STRIPING, TYP. 18 LANDSCAPE AREA, RE: LANDSCAPE DRAWINGS 19 NEW CURB CUT, RE: CIVIL 20 CONCRETE APRON PAVING, RE: CIVIL 21 SAND / OIL / GREASE INTERCEPTOR RE: CIVIL 22 APPROXIMATE LOCATIONS OF MONUMENT SIGN, FEILD VERIFY LOCATIONS DOES NOT ENCROACH INTO EASEMENTS, UTILITY LINES, ETC. 23 APPROXIMATE LOCATIONS OF AIRCRAFT TIE-DOWNS; COORDINATE EXACT LOCATIONS AND TYPE OF TIE-DOWNS WITH OWNER 24 APPROXIMATE LOCATION FDC 25 TRANSFORMER. RE: ELECTRICAL 26 LIGHT POLE BASE AND LIGHT POLE, TYP., RE: ELECTRICAL 27 BUILDING RESTRICTION LINE 28 PROPOSED PHASE LINE 30 TEMPORARY GRADING / LANDSCAPE SEEDING 31 ELECTRICAL VAULT LOCATION (5' X 8') RE: CIVIL 32 APPROXIMATE LOCATION OF ROOF MOUNTED MECHANICAL EQUIPMENT, RTU EQUIPMENT TO BE FULLY SCREENED BY PARAPET WALLS. ON BUILDING F, THE RTU EQUIPMENT WILL BE WITHIN A MECHANICAL WELL. 33 DOWNSPOUT LOCATION, TYP. 34 BACKUP POWER GENERATOR 35 EXISTING TAXIWAY TO REMAIN IN PHASE 1. TO BE MODIFIED IN PHASES 2, 3, AND 4 AS NEEDED 29 NOT USED 36 6" DIAMETER STEEL BOLLARD FILLED WITH CONCRETE 37 CAMPUS FIRE PUMP LOCATION, DEFERRED SUBMITTAL 38 BYPASS TANK, 15,000 GALLONS. TANK TO BE ENGINEERED TO SUPPORT A FIRE TRUCK AND TRAFFIC. WATER ENTRY DOWN SPOUT STORM TIE IN SITE PLAN NOTES 1. 2. 3. ALL HVAC AND OTHER MECHANICAL EQUIPMENT WILL BE SCREENED FROM PUBLIC VIEW. ALL BUILDING SIGNAGE AND MONUMENT SIGNAGE TO BE A DEFERRED SUBMITTAL, SIGNAGE SHOWN FOR LOCATION AND REFERENCE PURPOSES ONLY. PHASE LINE () RE: PHASING PLAN BUILDING C BUILDING F BUILDING A BUILDING B EXISTING BUILDING D 19 ° 4 3 ' 0 4 " 11 0 7 . 8 7 ' N W 24 f t 4 0 f t 2 4 f t 4 0 f t 2 4 f t 4 0 f t 2 4 f t 2 0 f t 2 4 f t 4 0 f t 2 4 . 1 3 f t 3 3 . 8 8 f t 2 6 f t 6 f t18 f t 24 f t 4 0 f t 2 4 f t 4 0 f t 2 4 f t 1 8 . 4 8 f t NO R T H 1 5 8 3 13 4 3 6 6 6 6 10 12 12 13 13 14 7 8 12 12 8 8 8 14 11 11 11 11 14 13 10 10 11 11 11 11 11 10 10 10 22 23 23 23 23 23 23 23 23 23 23 23 23 23 26 26 27 25 25 25 25 10 27 43 ft 53 ft 28 30 28 31 HO M E S T E A D H A N G A R S BL D G 1 HO M E S T E A D H A N G A R S BL D G 4 HO M E S T E A D H A N G A R S BL D G 5 EXI S T I N G B L D G 26 ft 26 ft 32 32 32 32 32 33 33 33 70° 16' 5 6 " 924.60'N E 70° 50' 4 2 " 1182.50'S W 0° 0 2 ' 1 3 " 85 6 . 6 3 ' N E 13 ° 4 9 ' 4 2 " 16 1 . 8 4 ' N E 9° 1 1 ' 4 1 " 90 . 4 8 ' N E PHASE L I N E 34 35 35 21 37 38 DI S C O V E R Y A I R D R . NEW RAMP ACCESS, TAXIWAY, 80FT CLEAR WIDTH 5.2 7 f t 80 f t BUILDING G 10 GARAGE / OFFICE BLDG E PARKING LOT EXPANSION AREA IF NEEDED 6 8 8 12 5 EXISTING PAVEMENT EXISTIN G P A V E M E N T EXISTING PAVEMENT 33 33 33 33 33 33 33 90' - 0" RELOCATED EXISTING LIGHT POLES 37 8 0 E a s t 1 5 t h S t r e e t , S u i t e 2 0 1 L o v e l a n d , C o l o r a d o 8 0 5 3 8 37 8 0 E a s t 1 5 t h S t r e e t , S u i t e 2 0 1 L o v e l a n d , C o l o r a d o 8 0 5 3 8 97 0 . 6 6 9 . 8 2 2 0 97 0 . 6 6 9 . 8 2 2 0 E- m a i l : i n f o @ h a u s e r a r c h i t e c t s p c . c o m E- m a i l : i n f o @ h a u s e r a r c h i t e c t s p c . c o m Ha u s e r A r c h i t e c t s p c . c o m Ha u s e r A r c h i t e c t s p c . c o m SHEET Ha u s e r A r c h i t e c t s , P . C . Ha u s e r A r c h i t e c t s , P . C . Wa t e r V a l l e y L a n d C o m p a n y Wa t e r V a l l e y L a n d C o m p a n y 16 2 5 P e l i c a n L a k e s P o i n t , S u i t e 2 0 1 16 2 5 P e l i c a n L a k e s P o i n t , S u i t e 2 0 1 Win d s o r , C O 8 0 5 5 0 Win d s o r , C O 8 0 5 5 0 97 0 . 6 8 6 . 5 8 2 8 97 0 . 6 8 6 . 5 8 2 8 PRELIMINARY PROGRESS PRINTPRELIMINARY PROGRESS PRINT NOT FOR CONSTRUCTIONNOT FOR CONSTRUCTION 8/ 2 8 / 2 0 2 3 1 : 5 6 : 5 7 P M 8/ 2 8 / 2 0 2 3 1 : 5 6 : 5 7 P M WA T E R V A L L E Y WA T E R V A L L E Y DIS C O V E R Y A I R DIS C O V E R Y A I R AR C H I T E C T U R A L S I T E P L A N AR C H I T E C T U R A L S I T E P L A N A2 0 160 240 32080 GRAPHIC SCALE RE V I S I O N S 1" = 80'-0" ARCHITECTURAL SITE PLAN1 Pu b l i c T a x i w a y - F N L Phase II - Hangar/Apron 59,962 sf Phase III - Hangar/Apron 48,017 sf Phase IV - Hangar/Apron 48,052 sf Contingent Ramp 496,356 sf 259,634 sf 496,356 sf 175,199 sf 217,757 sf Exhibit C-1 Phase VI - Contingent Remaining Area 175,199 sf Hangar Rental Area Contingent Ramp Area Contingent Remaining Area Parking Rental Area Phase V - Hangar/Apron 48,758 sf Phase I - Hangar/Apron 54,846 sf CONNE C T I O N OPTIO N CONNE C T I O N OPTIO N Phase II - Parking Area 46,267 sf Phase V - Parking Area 51,599 sf Phase I - Parking Area 48,953 sf Phase IV - Parking Area 31,893 sf Phase III - Parking Area 20,339 sf Phase II - Parking Area 18,706 sf 8/11/24 Discovery Air Lease Areas EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 193 Item 11. Rentable SF Preliminary Rate: Option Period Starting Rate: Final Rate: Example CPI Escalation Rate After 2023 CPI 3.54%8.01%5.22%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00% Proposed Draft Lease Schedule Lease Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Fiscal Year 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 SF 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 Rental Rate $0.15 $0.16 $0.17 $0.18 $0.18 $0.18 $0.19 $0.19 0.33$ 0.33$ 0.34$ 0.35$ 0.35$ 0.36$ 0.37$ 0.37$ 0.38$ 0.39$ 0.40$ 0.40$ 0.41$ 0.42$ 0.43$ Total Rent $15,570 $16,121 $17,412 $18,321 $18,688 $19,061 $19,443 $19,831 $33,781 $34,457 $35,146 $35,849 $36,566 $37,297 $38,043 $38,804 $39,580 $40,371 $41,179 $42,002 $42,842 $43,699 $44,573 SF 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 Rental Rate $0.05 $0.05 $0.06 $0.06 $0.06 $0.06 $0.06 $0.19 $0.19 $0.20 $0.20 $0.21 $0.21 $0.22 $0.22 0.37$ $0.38 $0.39 $0.40 $0.40 $0.41 $0.42 $0.43 Total Rent $6,247 $6,468 $6,986 $7,351 $7,498 $7,648 $7,801 $23,870 $24,347 $24,834 $25,331 $25,837 $26,354 $26,881 $27,419 $46,705 $47,639 $48,592 $49,564 $50,555 $51,566 $52,598 $53,649 SF 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 Rental Rate $0.05 $0.05 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.07 $0.20 $0.21 $0.21 $0.22 $0.22 $0.22 $0.23 $0.23 0.40$ $0.40 $0.41 $0.42 $0.43 Total Rent $3,418 $3,539 $3,822 $4,022 $4,102 $4,184 $4,268 $4,353 $4,440 $4,529 $13,859 $14,136 $14,419 $14,708 $15,002 $15,302 $15,608 $15,920 $27,118 $27,660 $28,214 $28,778 $29,353 SF 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 Rental Rate $0.05 $0.05 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.07 $0.07 $0.21 $0.21 $0.22 $0.22 $0.22 $0.23 $0.23 $0.24 0.40$ $0.41 $0.42 $0.43 Total Rent $3,997 $4,139 $4,470 $4,704 $4,798 $4,894 $4,992 $5,091 $5,193 $5,297 $5,403 $16,533 $16,864 $17,201 $17,545 $17,896 $18,254 $18,619 $18,991 $32,350 $32,997 $33,657 $34,330 SF 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 Rental Rate $0.05 $0.05 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.07 $0.07 $0.07 $0.21 $0.22 $0.22 $0.22 $0.23 $0.23 $0.24 $0.24 $0.41 $0.42 $0.43 Total Rent $5,018 $5,195 $5,612 $5,905 $6,023 $6,143 $6,266 $6,391 $6,519 $6,650 $6,782 $6,918 $21,170 $21,593 $22,025 $22,465 $22,915 $23,373 $23,840 $24,317 $41,422 $42,250 $43,095 $40,302 $41,108 $41,930 $42,769 $59,537 $74,281 $75,766 $86,521 $99,274 $115,372 $117,680 $120,033 $141,172 $143,995 $146,875 $160,692 $176,885 $197,041 $200,982 $205,001 SF 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 Rental Rate $0.05 $0.05 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.20 $0.20 $0.21 $0.21 $0.22 $0.22 $0.22 $0.23 $0.39 $0.40 $0.40 $0.41 $0.42 $0.43 Total Rent $8,760 $9,070 $9,797 $10,308 $10,514 $10,724 $10,939 $11,158 $11,381 $34,825 $35,522 $36,232 $36,957 $37,696 $38,450 $39,219 $40,003 $68,142 $69,504 $70,894 $72,312 $73,759 $75,234 SF 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 Rental Rate $0.05 $0.05 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.06 $0.07 $0.07 $0.07 $0.07 $0.07 $0.07 $0.07 $0.08 $0.08 $0.08 $0.08 $0.08 $0.08 $0.09 Total Rent $24,818 $25,696 $27,755 $29,203 $29,787 $30,383 $30,991 $31,611 $32,243 $32,888 $33,546 $34,216 $34,901 $35,599 $36,311 $37,037 $37,778 $38,533 $39,304 $40,090 $40,892 $41,710 $42,544 $39,511 $40,302 $41,108 $41,930 $42,768 $43,624 $67,713 $69,067 $70,449 $71,858 $73,295 $74,761 $76,256 $77,781 $106,675 $108,808 $110,985 $113,204 $115,468 $117,778 $79,813 $81,409 $83,038 $84,698 $102,305 $117,904 $143,479 $155,588 $169,722 $187,230 $190,974 $194,794 $217,428 $221,776 $253,550 $269,501 $287,869 $310,245 $316,450 $322,779 1,148,947 $0.05 300% of previous year + CPI + CPI 2.0% EXHIBIT D-1 Rent Phasing Example EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 194 Item 11. Rentable SF Preliminary Rate: Option Period Starting Rate: Final Rate: Example CPI Escalation Rate After 2023 CPI 2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00%2.00% Proposed Draft Lease Schedule Lease Year 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 Fiscal Year 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056 2057 2058 2059 2060 2061 2062 2063 2064 2065 2066 2067 2068 SF 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 103,799 Rental Rate 0.44$ 0.45$ 0.46$ 0.46$ 0.47$ 0.48$ 0.49$ 0.50$ 0.51$ 0.52$ 0.53$ 0.54$ 0.56$ 0.57$ 0.58$ 0.59$ 0.60$ 0.61$ 0.63$ 0.64$ 0.65$ 0.66$ 0.68$ 0.69$ 0.70$ Total Rent $45,465 $46,374 $47,302 $48,248 $49,213 $50,197 $51,201 $52,225 $53,269 $54,335 $55,421 $56,530 $57,660 $58,813 $59,990 $61,190 $62,413 $63,662 $64,935 $66,234 $67,558 $68,909 $70,288 $71,693 $73,127 SF 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 124,935 Rental Rate $0.44 $0.45 $0.46 $0.46 $0.47 $0.48 $0.49 $0.50 $0.51 $0.52 $0.53 $0.54 $0.56 $0.57 $0.58 $0.59 $0.60 $0.61 $0.63 $0.64 $0.65 $0.66 $0.68 $0.69 $0.70 Total Rent $54,722 $55,817 $56,933 $58,072 $59,233 $60,418 $61,626 $62,859 $64,116 $65,398 $66,706 $68,041 $69,401 $70,789 $72,205 $73,649 $75,122 $76,625 $78,157 $79,720 $81,315 $82,941 $84,600 $86,292 $88,018 SF 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 68,356 Rental Rate $0.44 $0.45 $0.46 $0.46 $0.47 $0.48 $0.49 $0.50 $0.51 $0.52 $0.53 $0.54 $0.56 $0.57 $0.58 $0.59 $0.60 $0.61 $0.63 $0.64 $0.65 $0.66 $0.68 $0.69 $0.70 Total Rent $29,940 $30,539 $31,150 $31,773 $32,408 $33,057 $33,718 $34,392 $35,080 $35,782 $36,497 $37,227 $37,972 $38,731 $39,506 $40,296 $41,102 $41,924 $42,762 $43,618 $44,490 $45,380 $46,287 $47,213 $48,157 SF 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 79,945 Rental Rate $0.44 $0.45 $0.46 $0.46 $0.47 $0.48 $0.49 $0.50 $0.51 $0.52 $0.53 $0.54 $0.56 $0.57 $0.58 $0.59 $0.60 $0.61 $0.63 $0.64 $0.65 $0.66 $0.68 $0.69 $0.70 Total Rent $35,017 $35,717 $36,431 $37,160 $37,903 $38,661 $39,434 $40,223 $41,027 $41,848 $42,685 $43,539 $44,409 $45,298 $46,204 $47,128 $48,070 $49,032 $50,012 $51,012 $52,033 $53,073 $54,135 $55,218 $56,322 SF 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 100,357 Rental Rate $0.44 $0.45 $0.46 $0.46 $0.47 $0.48 $0.49 $0.50 $0.51 $0.52 $0.53 $0.54 $0.56 $0.57 $0.58 $0.59 $0.60 $0.61 $0.63 $0.64 $0.65 $0.66 $0.68 $0.69 $0.70 Total Rent $43,957 $44,836 $45,733 $46,648 $47,581 $48,532 $49,503 $50,493 $51,503 $52,533 $53,583 $54,655 $55,748 $56,863 $58,000 $59,161 $60,344 $61,551 $62,782 $64,037 $65,318 $66,624 $67,957 $69,316 $70,702 $209,101 $213,283 $217,549 $221,900 $226,338 $230,865 $235,482 $240,192 $244,995 $249,895 $254,893 $259,991 $265,191 $270,495 $275,905 $281,423 $287,051 $292,792 $298,648 $304,621 $310,714 $316,928 $323,266 $329,732 $336,326 SF 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 175,199 Rental Rate $0.44 $0.45 $0.46 $0.46 $0.47 $0.48 $0.49 $0.50 $0.51 $0.52 $0.53 $0.54 $0.56 $0.57 $0.58 $0.59 $0.60 $0.61 $0.63 $0.64 $0.65 $0.66 $0.68 $0.69 $0.70 Total Rent $76,738 $78,273 $79,839 $81,435 $83,064 $84,725 $86,420 $88,148 $89,911 $91,710 $93,544 $95,415 $97,323 $99,269 $101,255 $103,280 $105,345 $107,452 $109,601 $111,793 $114,029 $116,310 $118,636 $121,009 $123,429 SF 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 496,356 Rental Rate $0.09 $0.09 $0.09 $0.09 $0.09 $0.10 $0.10 $0.10 $0.10 $0.10 $0.11 $0.11 $0.11 $0.11 $0.12 $0.12 $0.12 $0.12 $0.12 $0.13 $0.13 $0.13 $0.14 $0.14 $0.14 Total Rent $43,395 $44,263 $45,148 $46,051 $46,972 $47,911 $48,870 $49,847 $50,844 $51,861 $52,898 $53,956 $55,035 $56,136 $57,258 $58,404 $59,572 $60,763 $61,978 $63,218 $64,482 $65,772 $67,087 $68,429 $69,798 $120,133 $122,536 $124,987 $127,486 $130,036 $132,637 $135,290 $137,995 $140,755 $143,570 $146,442 $149,371 $152,358 $155,405 $158,513 $161,684 $164,917 $168,216 $171,580 $175,011 $178,512 $182,082 $185,724 $189,438 $193,227 $329,235 $335,819 $342,536 $349,386 $356,374 $363,502 $370,772 $378,187 $385,751 $393,466 $401,335 $409,362 $417,549 $425,900 $434,418 $443,106 $451,968 $461,008 $470,228 $479,633 $489,225 $499,010 $508,990 $519,170 $529,553Total Rent EXHIBIT D-1 Rent Phasing Example 1,148,947 $0.05 300% of previous year + CPI 2.0% EXHIBIT A TO ORDINANCE NO. 149, 2024 Page 195 Item 11. TRACT C TRACT C COMMERICALCOMMERICAL TRACT A TRACT A COMMERICALCOMMERICAL TRACT B TRACT B COMMERICALCOMMERICAL CONTINGENT RAMPCONTINGENT RAMP PU B L I C T A X I W A Y , F N L PU B L I C T A X I W A Y , F N L CONTINGENT RAMPCONTINGENT RAMP CO N T I N G E N T R A M P CO N T I N G E N T R A M P TEMP CONNECTIONTEMP CONNECTION IMPROVEMENT 1IMPROVEMENT 1 (EXISTING)(EXISTING) IMPROVEMENT 2IMPROVEMENT 2 BLDG DBLDG D BLDG EBLDG EBLDG CBLDG C BLDG FBLDG F BLDG BBLDG B BLDG ABLDG A BLDG GBLDG G IMPROVEMENT 3IMPROVEMENT 3 IMPROVEMENT 4IMPROVEMENT 4 IMPROVEMENT 5IMPROVEMENT 5 37 8 0 E a s t 1 5 t h S t r e e t , S u i t e 2 0 1 L o v e l a n d , C o l o r a d o 8 0 5 3 8 37 8 0 E a s t 1 5 t h S t r e e t , S u i t e 2 0 1 L o v e l a n d , C o l o r a d o 8 0 5 3 8 97 0 . 6 6 9 . 8 2 2 0 97 0 . 6 6 9 . 8 2 2 0 E- m a i l : i n f o @ h a u s e r a r c h i t e c t s p c . c o m E- m a i l : i n f o @ h a u s e r a r c h i t e c t s p c . c o m Ha u s e r A r c h i t e c t s p c . c o m Ha u s e r A r c h i t e c t s p c . c o m SHEET Ha u s e r A r c h i t e c t s , P . C . Ha u s e r A r c h i t e c t s , P . C . Wa t e r V a l l e y L a n d C o m p a n y Wa t e r V a l l e y L a n d C o m p a n y 16 2 5 P e l i c a n L a k e s P o i n t , S u i t e 2 0 1 16 2 5 P e l i c a n L a k e s P o i n t , S u i t e 2 0 1 Win d s o r , C O 8 0 5 5 0 Win d s o r , C O 8 0 5 5 0 97 0 . 6 8 6 . 5 8 2 8 97 0 . 6 8 6 . 5 8 2 8 PRELIMINARY PROGRESS PRINTPRELIMINARY PROGRESS PRINT NOT FOR CONSTRUCTIONNOT FOR CONSTRUCTION 9/ 2 9 / 2 0 2 3 2 : 0 9 : 0 4 P M 9/ 2 9 / 2 0 2 3 2 : 0 9 : 0 4 P M 50 1 7 L i n d b e r g h D r , L o v e l a n d , C O 8 0 5 3 8 50 1 7 L i n d b e r g h D r , L o v e l a n d , C O 8 0 5 3 8 WA T E R V A L L E Y WA T E R V A L L E Y DIS C O V E R Y A I R DIS C O V E R Y A I R IM P R O V E M E N T P L A N IM P R O V E M E N T P L A N A1 RE V I S I O N S 1" = 80'-0" DISCOVERY AIR CAMPUS- IMPROVEMENT PLAN1 Exhibit B-2 8/11/24 Site Plan 1,149,851 sf EXHIBIT B TO ORDINANCE NO. 149, 2024 Page 196 Item 11. Page 197 Item 11. Page 198 Item 11. Page 199 Item 11. Page 200 Item 11. Page 201 Item 11. Page 202 Item 11. Page 203 Item 11. Page 204 Item 11. Page 205 Item 11. Page 206 Item 11. Page 207 Item 11. Page 208 Item 11. Page 209 Item 11. Page 210 Item 11. Page 211 Item 11. Page 212 Item 11. Page 213 Item 11. Page 214 Item 11. Page 215 Item 11. Page 216 Item 11. Page 217 Item 11. Page 218 Item 11. Page 219 Item 11. Page 220 Item 11. Page 221 Item 11. Page 222 Item 11. Page 223 Item 11. Page 224 Item 11. Page 225 Item 11. Page 226 Item 11. Page 227 Item 11. Page 228 Item 11. Page 229 Item 11. Page 230 Item 11. Page 231 Item 11. Page 232 Item 11. Page 233 Item 11. Page 234 Item 11. Page 235 Item 11. Page 236 Item 11. Page 237 Item 11. Page 238 Item 11. Page 239 Item 11. Page 240 Item 11. RESOLUTION #R-09-2024 A RESOLUTION RECOMMENDING APPROVAL OF AN AMENDED AND RESTATED LEASE (FORM 2) WITH DISCOVERY AIR, LLC WHEREAS, the Northern Colorado Regional Airport Commission (“Commission”) was established by the City of Loveland (“Loveland”) and the City of Fort Collins (“Fort Collins”) pursuant to that certain Amended and Restated Intergovernmental Agreement for the Joint Operation of the Fort Collins-Loveland Municipal Airport dated January 22, 2015 (“2015 IGA”), to effectuate changes to the governance structure and pursue development of the Fort Collins- Loveland Airport (now known as the Northern Colorado Regional Airport or the “Airport”) as a regional airport. The 2015 IGA was amended in 2016 and 2019; and WHEREAS, the 2015 IGA provides for certain authority to the Commission to approve leases provided in part that they are in a generally approved form, while reserving to the Cities the authority to approve leases that deviate from the generally approved form; and WHEREAS, in January of 2019, the Commission recommended and the City Councils approved the execution of a 50-year lease agreement with Discovery Air, LLC (the “Lease”) for a master-planned development for certain Airport property. In January of 2021, the Cities and Discovery Air, LLC reached an agreement for certain amendments to the Lease that included, among other terms, phasing of rent to provide lower rent prior to commencement of specific development phases. The parties thus entered into a First Amendment to the Lease (the “First Amended Lease”); and WHEREAS, Discovery Air, LLC requested additional amendments to the First Amended Lease, which the parties have negotiated for over a year. Such amendments include a delay in rent escalation under each development phase and additional phasing. An Amended and Restated Lease (Form 2) is attached hereto as “Exhibit A;” and WHEREAS, the Commission has reviewed the Amended and Restated Lease (Form 2) and finds that such Amended and Restated Lease (Form 2) terms are in the best interests of the Airport and the Cities, and therefore recommends approval of the Amended and Restated Lease (Form 2) to the City Councils of Loveland and Fort Collins. NOW, THEREFORE, BE IT RESOLVED BY THE NORTHERN COLORADO REGIONAL AIRPORT COMMISSION: Section 1. That the Amended and Restated Lease (Form 2) with Discovery Air, LLC is hereby recommended for approval by the two City Councils for Loveland and Fort Collins. Section 2. That this Resolution shall be effective as of the date and time of its adoption. ADOPTED this 19th day of September, 2024. Docusign Envelope ID: 6AAEAB7D-8E16-45C1-8580-6D98F8CB08D9 Page 241 Item 11. ____________________________________ Jerry Stooksbury, Vice Chair of the Northern Colorado Regional Airport Commission ATTEST: ______________________________ Secretary Docusign Envelope ID: 6AAEAB7D-8E16-45C1-8580-6D98F8CB08D9 Page 242 Item 11. Discovery Air Lease Amendment Francis Robbins Acting Airport Director October 15, 2024 1 Page 243 Item 11. Agenda 3 -Background 4 -Comparison of Maps 7 -Comparison of Rates 2 Page 244 Item 11. Background Discovery Air executed a lease in 2019 to construct a multi hangar aviation complex. Total area 1.1 million square feet and the largest single lease at the Airport. This multi hangar complex completed the first phase of construction in 2021. Ongoing conversations about construction in 2022 led to a request for a lease amendment in 2023 by the tenant. The Airport Sponsor negotiating team consisting of City Managers of Fort Collins and Loveland, Airport Director, and legal council met with Discovery Air negotiation team to produce this amended and restated lease. 3 Page 245 Item 11. Amendment 1 Amendment 2 4 Page 246 Item 11. Amendment 1 Amendment 2 5 Page 247 Item 11. Amendment 1 Amendment 2 6 Page 248 Item 11. Lease Rate Comparison 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 20 3 0 20 3 1 20 3 2 20 3 3 20 3 4 20 3 5 20 3 6 20 3 7 20 3 8 20 3 9 20 4 0 20 4 1 20 4 2 20 4 3 20 4 4 20 4 5 20 4 6 20 4 7 20 4 8 20 4 9 20 5 0 20 5 1 20 5 2 20 5 3 20 5 4 20 5 5 20 5 6 20 5 7 20 5 8 20 5 9 20 6 0 20 6 1 20 6 2 20 6 3 20 6 4 20 6 5 20 6 6 20 6 7 20 6 8 Amendment 2 Amendment 1 Amendment 1 current schedule 7 Page 249 Item 11. Lease Rate Comparison Revenue Projection 2025-2068 Phases I-V Rent Commencement in 2019, CPI Annually Starting in 2022 Phase VI & Contingent Ramp Rent Commencement at $0.05 in 2025, with Annual CPI Area (SF)Cumulative Rent Average Annual Rent per SF Minimum Rent Regardless of Phasing/Development Existing Lease 1,160,160 $13,035,737 $0.255 New Lease 1,148,947 $13,187,470 $0.261 Delta -11,213 $151,733 $0.005 Phase V Development in 2033 Existing Lease 1,160,160 $14,376,520 $0.282 New Lease 1,148,947 $13,187,470 $0.261 Delta -11,213 -$1,189,050 -$0.021 Phase V Development in 2033 & Contingent Remainder Area Aeronautical Development in 2034 Existing Lease 1,160,160 $17,306,929 $0.339 New Lease 1,148,947 $13,187,470 $0.261 Delta -11,213 -$4,119,459 -$0.078 8 Page 250 Item 11. Recommendation •Airport Staff recommend a motion to adopt the ordinance for the City to amend and restate the lease with Discovery Air. •Northern Colorado Regional Airport Commission Recommended this for adoption with a vote of 5-0 with 2 absent on September 19, 2024 with R-09-2024. •Loveland City council voted unanimously to amend and restate this lease on October 1, 2024 with R-94-2024. 9 Page 251 Item 11. File Attachments for Item: 12. First Reading of Ordinance No. 150, 2024, Authorizing the Advertisement and Future Sale of the Real Property Located at 945 East Prospect Road. The purpose of this item is to authorize the advertisement and future sale of the City-owned property located at 945 East Prospect Road (the “Property”). The Property was originally acquired by the City’s Engineering Department for roadway widening purposes, and the City will exclude from the sale of the Property approximately 1540 square feet, being the area necessary to construct the future road improvement project (the “Reserved ROW”). Page 252 City Council Agenda Item Summary – City of Fort Collins Page 1 of 2 October 15, 2024 AGENDA ITEM SUMMARY City Council STAFF Ralph Campano, Manager, Real Estate Will Flowers, Sr. Specialist, Real Estate Dana Hornkohl, Director, Civil Engineering SUBJECT First Reading of Ordinance No. 150, 2024, Authorizing the Advertisement and Future Sale of the Real Property Located at 945 East Prospect Road. EXECUTIVE SUMMARY The purpose of this item is to authorize the advertisement and future sale of the City-owned property located at 945 East Prospect Road (the “Property”). The Property was originally acquired by the City’s Engineering Department for roadway widening purposes, and the City will exclude from the sale of the Property approximately 1540 square feet, being the area necessary to construct the future road improvement project (the “Reserved ROW”). STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The City bought 945 E. Prospect Rd. in 1991 for $41,000 as part of the Prospect/Lemay Intersection Project (the “Project”), and the City has held and managed the Property since that date. A majority of the Project has since been completed, except the eastbound right turn lane, which was expected to be constructed as part of the proposed redevelopment of the SW corner of the intersection. However, all prior redevelopment plans have since been abandoned, and City staff want to sell the Property. Although the construction date of this final portion of the Project remains undetermined, City staff has determined that there is no additional benefit to retaining any portion of the Property outside of the Reserved ROW because management expenses are significant because of the age (built in 1936) and condition of the improvements located on the Property. The building on the Property was recently determined to be eligible for designation as a City Landmark, requiring it to be preserved and rehabilitated according to the provisions of the City of Fort Collins Land Use Code, which will likely increase the annual expenses for operation and maintenance of the rental property. Additionally, the current prohibition on demolishing the building has decreased the prospective sale price. Page 253 Item 12. City Council Agenda Item Summary – City of Fort Collins Page 2 of 2 The property will be listed for sale publicly for $350,000.00, which is the fair market value as determined by licensed, City of Fort Collins, Real Estate Services staff. It is possible the City will realize a larger sale price, based on the potential for a higher level of interest from buyers, due to the list price and property features. This list price is less than the amount the property was contracted to sell for previously, primarily due to the circumstances surrounding the previous, now terminated transaction. That transaction was tied to the development of a larger parcel including the entire southeast corner of E. Prospect Road and Lemay Avenue. That project has been terminated and the City’s property remains. Staff has determined that 945 E. Prospect is not a property that the City needs to continue owning and leasing. The intention behind purchasing this property was not to own it, but to dedicate a right-of-way, which staff is prepared to complete. The property is well suited to re-enter the private sector, to offer a potential affordable home ownership opportunity. The City currently leases the Property as a single-family residence and has provided adequate notice to terminate the lease effective November 1, 2024. The Property is 14, 300 square feet (0.328 acres) and measures 260 X 55 feet. The Reserved ROW is 28 X 55 (1,540 square feet). The net area to be sold by the City is 12,760 square feet (0.293 acres). CITY FINANCIAL IMPACTS Upon sale of the Property, the City will collect approximately $337,000, being the net proceeds after costs, including title, escrow, broker, and closing fees, and the net proceeds will be deposited in the Transportation Fund. BOARD / COMMISSION / COMMITTEE RECOMMENDATION None. PUBLIC OUTREACH None. ATTACHMENTS 1. Ordinance for Consideration 2. Vicinity Map Page 254 Item 12. -1- ORDINANCE NO. 150, 2024 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE ADVERTISEMENT AND FUTURE SALE OF THE REAL PROPERTY LOCATED AT 945 EAST PROSPECT ROAD A. The City has owned the real property located at 945 East Prospect Road (the “Property”) since 1991. The Property was purchased as part of an intersection improvement project at East Prospect Road and Lemay Avenue, which included plans to construct an eastbound right turn lane on East Prospect Road. The right turn lane was to be constructed as part of the proposed commercial redevelopment of the southwest corner of the intersection. But the redevelopment did not move forward, and the right turn lane was not constructed. B. Since acquiring the Property, the City has leased the residence located on it and the current tenant is residing on the Property. If the City maintains ownership of the Property, the City’s current or future uses of the Property would require incurring ongoing maintenance costs and liability risk. C. On February 2, 2023, City Council adopted Ordinance No. 004, 2023, which authorized the sale of the Property to Kum & Go, L.C., an Iowa limited liability company, however that sale was terminated. D. City staff is recommending the Property be sold on the open market, while retaining the right-of-way for the planned right turn lane, and placing the proceeds from the sale in the Transportation Fund. E. The City provided adequate notice of lease termination to the tenant effective November 1, 2024. F. Section 23-111(a) of the City Code authorizes the City Council to sell, convey, or otherwise dispose of any interests in real property owned by the City, provided the City Council first finds, by ordinance, that such sale or other disposition is in the best interests of the City. G. Under Section 23-114 of the City Code, any sale or lease of City property interests must be for an amount equal to or greater than the fair market value of such interests. The Property will be listed at fair market value. H. The City Council finds that the sale is in the best interests of the City and its citizens in that it will eliminate the City’s ongoing maintenance responsibilities and liability risk, generate fair market sales proceeds that can be used to advance City Council priorities, and allow the Property to be utilized in its highest and best use as determined by the open market. Page 255 Item 12. -2- In light of the foregoing recitals, which the Council hereby makes and adopts as determinations and findings, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. The City Council hereby finds that the sale of 945 East Prospect Road as provided herein is in the best interests of the City. Section 2. City staff is authorized to advertise the Property for sale and that the Mayor is authorized to execute a deed and such other documents as are necessary to convey the Property to a willing buyer on terms and conditions consistent with this Ordinance, together with such other additional terms and conditions as the City Manager, in consultation with the City Attorney, determines are necessary and appropriate to protect the interests of the City or effectuate the purposes of this Ordinance. Introduced, considered favorably on first reading on October 15, 2024, and approved on second reading for final passage on November 4, 2024. ______________________________ Mayor ATTEST: ______________________________ City Clerk Effective Date: November 14, 2024 Approving Attorney: Ted Hewitt Page 256 Item 12. Page 257 Item 12. File Attachments for Item: 13. Resolution 2024-123 Authorizing Disabled Resource Services to Retain Community Development Block Grant Funding to Apply Towards the Acquisition of a New Public Facility. The purpose of this item is to obtain authorization from Council to allow Disabled Resource Services to sell their current building located at 1017 Robertson, which was acquired with $385,000 in Community Development Block Grant funding, and to retain the funding provided by the City to re-invest in a new public facility. These funds were provided as a Due on Sale Loan, which triggers repayment upon the sale of the existing building. Approval by City Council is required to allow Disabled Resource Services to transfer the funding to a new building. Page 258 City Council Agenda Item Summary – City of Fort Collins Page 1 of 2 October 15, 2024 AGENDA ITEM SUMMARY City Council STAFF Beth Rosen, Grants Compliance and Policy Manager SUBJECT Resolution 2024-123 Authorizing Disabled Resource Services to Retain Community Development Block Grant Funding to Apply Towards the Acquisition of a New Public Facility. EXECUTIVE SUMMARY The purpose of this item is to obtain authorization from Council to allow Disabled Resource Services to sell their current building located at 1017 Robertson, which was acquired with $385,000 in Community Development Block Grant funding, and to retain the funding provided by the City to re-invest in a new public facility. These funds were provided as a Due on Sale Loan, which triggers repayment upon the sale of the existing building. Approval by City Council is required to allow Disabled Resource Services to transfer the funding to a new building. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION On November 19, 2012, the City of Fort Collins entered into a Recipient Contract (Contract) for Community Development Block Grant (CDBG) funding with Disabled Resource Services (DRS). The Contract provided for the payment of $385,000 in CDBG funding to purchase the property located at 1017 Robertson, Unit B, Fort Collins, CO 80524. The CDBG-Eligible Activity was defined as a Public Facility to be used to provide direct services to a client population consisting of at least 51% low-and-moderate income persons. The funding was provided as a loan that would require repayment upon sale of the building or failure to use the building as defined in the Contract. On August 13, 2024, DRS submitted a letter to Council which stated they have outgrown their space and are looking to acquire a larger facility, likely on the south side of Fort Collins, that will allow them to consolidate their Fort Collins and Loveland offices. They would like to use the equity in their existing building to purchase a new building. This includes a request to re-allocate the $385,000 towards the new building purchase rather than repay the CDBG loan to the City. These funds would still be used to operate a public facility for the population outlined in the original CDBG application and funding approval. Originally, these funds were allocated to an eligible activity that was governed by the 2010-2014 HUD Consolidated Plan (ConPlan). That plan allowed local nonprofit applicants to submit public facility applications that would compete against housing applications for available CDBG dollars. Starting with the 2015-2019 ConPlan, CDBG funding has been prioritized to meet the goals of the Housing Strategic Plan and public facility applications are longer accepted for CDBG grant funds. This means that if DRS were to Page 259 Item 13. City Council Agenda Item Summary – City of Fort Collins Page 2 of 2 repay the funds, the funding would be re-allocated to housing with no way for DRS to re-apply for new public facility dollars. Allowing DRS to retain the funds and apply them towards the purchase of a new building will still meet the goals of the original contract and service expectations. Funds would still be provided as a loan, and City staff would prepare a new Promissory Note and Deed of Trust encumbering the new facility with the same terms and conditions as the current building. The funds would be returned to the City if Disabled Resource Services ever sold the new building or failed to provide direct services to benefit a client population of at least 51% low-and moderate-income persons as outlined in their Contract. CITY FINANCIAL IMPACTS This request would allow prior grant funds to be retained by the nonprofit organization to be used for the same public purpose. If the request is not supported, the funding would be returned to the City and allocated to an eligible housing project in the 2025 Competitive Process. BOARD / COMMISSION / COMMITTEE RECOMMENDATION The Human Services and Housing Funding Board voted to recommend this request at its regular Board meeting held on September 11, 2024. PUBLIC OUTREACH None. ATTACHMENTS 1. Resolution for Consideration 2. Exhibit A to Resolution 3. Request from Disabled Resource Services 4. Deed of Trust 5. Human Services and Housing Funding Board Minutes, September 2024 Page 260 Item 13. -1- RESOLUTION 2024-123 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING DISABLED RESOURCE SERVICES TO RETAIN COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING TO APPLY TOWARDS THE ACQUISITION OF A NEW PUBLIC FACILITY A. Through Resolution 2012-035, the City Council allocated $385,000 from Community Development Block Grant funding to help Disabled Resource Services (“DRS”) acquire the property located at 1017 Robertson, Unit B (the “Robertson Building”). The City subsequently entered into an agreement (the “Agreement”) to loan DRS this funding to acquire the Robertson Building. The Agreement provided that the loan, $385,000 plus five percent simple interest, would be due to the City upon DRS’s sale of the Robertson Building. B. Since 2012, DRS has used the Robertson Building to provide direct services to disabled individuals of low or moderate income. In August of this year, DRS informed the City that it would like to sell the Robertson Building and acquire a larger facility. DRS is requesting that the City reallocate the $385,000 toward the purchase of a new facility. C. City Council, though this Resolution, may authorize DRS to retain the $385,000 in Community Development Block Grant funding to apply to the purchase of a new facility. Otherwise, DRS would return the $385,000 plus $19,250 in interest to the City upon the sale of the Robertson Building and the funds would be used for current priorities for Community Development Block Grant funding. D. If City Council, through this Resolution, does authorize DRS to retain the $385,000 in Community Development Block Grant funding to apply to the purchase of a new facility, the $385,000 of funds would be provided as a loan, and City staff would amend the Agreement and prepare a new Promissory Not e and Deed of Trust encumbering the new facility with the same terms and conditions as the Robertson Building. In light of the foregoing recitals, which the Council hereby makes and adopts as determinations and findings, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. The City Council supports authorizing DRS to retain $385,000 in Community Development Block Grant funding to apply to new facility in which to provide direct services to disabled individuals of low and moderate income. Section 2. The City Manager is hereby authorized to enter into amendments to the City’s Agreement with Disabled Resource Services, as shown on Exhibit “A”, attached hereto and incorporated herein by this reference, and other documents necessary and appropriate to effectuate the purposes of this Resolution and protect the interests of the City. Page 261 Item 13. -2- Passed and adopted on October 15, 2024. ______________________________ Mayor ATTEST: ______________________________ City Clerk Effective Date: October 15, 2024 Approving Attorney: Ted Hewitt Page 262 Item 13. Page 263 Item 13. Page 264 Item 13. Page 265 Item 13. Page 266 Item 13. Page 267 Item 13. Page 268 Item 13. Page 269 Item 13. Page 270 Item 13. Page 271 Item 13. Page 272 Item 13. Page 273 Item 13. Page 274 Item 13. Page 275 Item 13. Page 276 Item 13. Page 277 Item 13. Page 278 Item 13. Page 279 Item 13. Page 280 Item 13. Page 281 Item 13. Page 282 Item 13. Page 283 Item 13. Page 284 Item 13. Page 285 Item 13. Page 286 Item 13. Page 287 Item 13. Page 288 Item 13. Page 289 Item 13. Page 290 Item 13. Page 291 Item 13. Page 292 Item 13. Page 293 Item 13. Page 294 Item 13. Page 295 Item 13. Page 296 Item 13. Human Services & Housing Funding Board REGULAR MEETING September 11, 2024 at 5:30 PM Remote/Microsoft Teams 9 /1 1 /202 4 – MINUTES Page 1 1. CALL TO ORDER At 5:32 PM the meeting was called to order by Erma Woodfin. 2. ROLL CALL Board Members Present o Erma Woodfin, Interim Chair o Olga Duvall, Vice Chair o Christine Koepnick o Jan Stallones o Chris Coy Board Members Excused o Michaela Ruppert o Lori Kempter o Mike Kulisheck Staff Members Present o Adam Molzer, Staff Liaison, Social Sustainability – City of Fort Collins o Beth Rosen, Social Sustainability – City of Fort Collins o Tamra Leavenworth, Social Sustainability – City of Fort Collins Guests Present o Jane Barber, Disabled Resource Services For further information, details and insight, and audio recording, resources are available by contacting the HSHF-Board staff liaison. 3. AGENDA REVIEW Adam Molzer reviewed the agenda. The Board accepted the agenda without modification. 4. COMMUNITY PARTICIPATION Jane Barber, the Director of Development and Marketing for Disabled Resource Services, introduced herself to the Board. 5. APPROVAL OF MINUTES – August 14, 2024 Regular Meeting Olga Duvall motioned to approve the August 14, 2024 meeting minutes as presented. Erma Woodfin seconded. Approved 5-0. 6. BOARD MEMBER REPORTS None. 7. STAFF REPORTS The City Clerk’s Office will be hosting an open house in November to prepare for Boards and Commissions Page 297 Item 13. Human Services & Housing Funding Board REGULAR BOARD MEETING 9 /1 1 /202 4 – MINUTES Page 2 recruitment. It will be a full information session for any community member interested in serving on a City Board or Commission. Adam will provide more details as they become available. The City will be hosting a Community Housing Summit on Thursday, September 26 from 5pm-8pm at The Lincoln Center. 8. UNFINISHED BUSINESS None. 9. NEW BUSINESS a. 2024-2025 Officers Nominations – Vote in October Erma Woodfin nominated herself for Board Chair and nominated Olga Duvall to continue as Vice Chair. Official motions and a vote will be held at the October meeting. b. Request from Disabled Resource Services for CDBG Public Facility Funding Retention In 2012, Disabled Resource Services received CDBG Public Facility funding through the Competitive Process to acquire their building on Robertson Street in Fort Collins. At that time, public service facilities were eligible to compete for funding in the housing category. However, with the 2015 HUD Consolidated Plan, priorities shifted due to the housing shortage, directing funding to focus specifically on housing projects. As a result, Disabled Resource Services would no longer be eligible to apply for public facility funding. Additionally, these funds were provided as a due-on-sale loan, meaning that when the nonprofit sells the property, the loan would be due back to the City to be reinvested in the Competitive Process. Currently, Disabled Resource Services is considering consolidating its services, which include their Fort Collins and Loveland locations, into a single facility. They are requesting permission to reinvest the public facility funds they received in 2012 into the purchase of a new building. Several board members followed up with clarifying questions for both Beth Rosen and Jane Barber. Erma Woodfin motioned to support the transfer of CDBG Public Facility Funds from Disabled Resource Services’ current facility on Robertson Street should they decide to sell and move into a new public facility with new due-on-sale terms. Chris Coy seconded. Approved 5-0. This recommendation from the HSHF Board will be considered by Fort Collins City Council at a future date. c. Human Services Priority Platform Update Adam Molzer shared that he and Dianne Tjalkens presented on both the Human Services Priority Platform and the HUD Consolidated Plan at the Super Issues Meeting on Monday, September 9. City staff will begin drafting goals for both initiatives, with plans to make them available for public review and comment in October. Adam aims to have a draft ready for the Board to review at the November meeting. 10. OTHER BUSINESS Adam Molzer shared that details of the 2025-2026 City Manager’s Recommended Budget were available for the public to view. The Board expressed interest in holding a Special Meeting to discuss the proposed elimination of the $150,000 continuing enhancement to Human Services grant funding. Adam will schedule the meeting accordingly for further discussion. Page 298 Item 13. Human Services & Housing Funding Board REGULAR BOARD MEETING 9 /1 1 /202 4 – MINUTES Page 3 Grantee Client Story: Adam Molzer shared a brief impact story submitted by Boys & Girls Club in a recent report. 11. NEXT MEETING Wednesday, October 9, 2024 | 5:30pm | Location: TBD 13. ADJOURNMENT Erma Woodfin adjourned meeting at 6:59 PM. Minutes were finalized and approved by the Human Services & Housing Funding Board on __________________. Page 299 Item 13. File Attachments for Item: 14. Resolution 2024-124 Approving Fort Fund Grant Disbursements. The purpose of this item is to approve Fort Fund grants from the Cultural Development and Programming Account and the Tourism Programming Account for the selected community events in the Program Support Grant – September Deadline category, based upon the recommendations of the Cultural Resources Board. Page 300 City Council Agenda Item Summary – City of Fort Collins Page 1 of 2 October 15, 2024 AGENDA ITEM SUMMARY City Council STAFF Solara Clark, Project Coordinator Eileen May, Cultural Services Director SUBJECT Resolution 2024-124 Approving Fort Fund Grant Disbursements. EXECUTIVE SUMMARY The purpose of this item is to approve Fort Fund grants from the Cultural Development and Programming Account and the Tourism Programming Account for the selected community events in the Program Support Grant – September Deadline category, based upon the recommendations of the Cultural Resources Board. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION The Fort Fund grant program, established in 1989, disburses lodging tax revenues deposited in the City’s Cultural Development and Programming Account and the Tourism Programming Account in accordance with the provisions of Section 25-244 of the City Code, where 25% of the revenue from the lodging tax fund is applied to the Cultural Development and Programming Account and 5% of revenue from lodging tax is dedicated to the Tourism Programming Account. Local non-profit organizations may apply to Fort Fund for cultural and/or tourism event support. The Cultural Resources Board is authorized to review grant applications based on approved guidelines and make recommendations for Fort Fund disbursements to Council, pursuant to Section 2-145 (b) of the City Code. There are three funding categories available and a total of five deadlines: Special Event Grant (January and July deadlines), Program Support Grant (March and September deadlines), and Cross-Sector Impact Grant (October deadline). Fort Fund grants support arts and cultural events that enrich the creative vitality of the community, promote local heritage and diversity, and provide opportunities for arts and cultural participation. The grants help promote Fort Collins as a creative center and tourist destination and promote the health and well-being of all residents and visitors. September 26, 2024, Funding Session At their September 26, 2024, funding session, the Cultural Resources Board was unable to vote on the Program Support Grant – September Deadline applications due to a lack of quorum. A special funding meeting was scheduled for October 3, 2024, for review and a vote on recommendations for the Program Support Grant – September Deadline. October 3, 2024, Special Meeting Funding Session Page 301 Item 14. City Council Agenda Item Summary – City of Fort Collins Page 2 of 2 At their October 3, 2024, special meeting funding session, the Cultural Resources Board reviewed eleven (11) Program Support Grant – September Deadline applications with total requests equaling $188,112. Eleven (11) applications were found eligible and recommended for funding for $100,000. The following table summarizes the Program Support Grant – September Deadline requests, available funds and grant award amounts: Grant Requests Available Funds Grant Awards $188,112 $100,000 $100,000 The Cultural Resources Board scored each application using the funding criteria outlined in the Fort Fund Guidelines and discussed the applications at its September 26, 2024 meeting and its October 3, 2024 special meeting. The Board’s approval and discussion is outlined in the draft minutes (Attachment 1 and 2). The Board is recommending disbursement of $100,000 to the eligible applicants as outlined in Exhibit A to the Resolution. CITY FINANCIAL IMPACTS The Fort Fund grant program, established in 1989, disburses lodging tax revenues deposited in the City’s Cultural Development and Programming Account and Tourism Programming Account in accordance with the provisions of Section 25-244 of the City Code. This Resolution would distribute $100,000 from the Cultural Development and Programming Account and Tourism Programming Account to local non-profit organizations. Each grantee organization must provide funds to match the grant amount. These funds were budgeted and appropriated in the 2024 budget. Lodging tax is collected pursuant to Section 25-242 of the City Code. BOARD / COMMISSION / COMMITTEE RECOMMENDATION The Cultural Resources Board is presenting these recommendations to Council for programs and organizations to receive funding at the recommended grant amounts from the Cultural Development and Programming Account and Tourism Programming Account. Exhibit A to the Resolution presents the allocations recommended by the Cultural Resources Board to the Council for Program Support Grant – September Deadline funding. PUBLIC OUTREACH None. ATTACHMENTS 1. Resolution for Consideration 2. Exhibit A to Resolution 3. Cultural Resources Board September 26, 2024, Minutes (draft) (PDF) 4. Cultural Resources Board October 3, 2024, Minutes (draft) (PDF) 5. Award Letter Page 302 Item 14. -1- RESOLUTION 2024-124 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING FORT FUND GRANT DISBURSEMENTS A. Providers of lodging accommodations in the City are required by Section 25-242 of the City Code to pay three percent of all revenues derived from such lodging accommodations to the City as a lodging tax. B. The Fort Fund Grant Program (“Fort Fund”) supports projects and activities that provide arts and cultural programming to the Fort Collins community and visitors. Established in 1989, Fort Fund distributes lodging tax revenues deposited in the City’s Cultural Development and Programming Account and the Tourism Programming Account in accordance with the provisions of Section 25-244 of the City Code. C. Local non-profit organizations may apply to Fort Fund for cultural and tourism event support. There are three Fort Fund funding programs available for applicants: Special Events; Program Support; and Cross-Sector Impact. D. The City's Cultural Resources Board reviews applications from the community for Fort Fund monies and makes recommendations to the City Council in accordance with Section 2-145(b) of the City Code and the administrative guidelines for Fort Fund (the “Fort Fund Guidelines”). E. At its meeting on October 3, 2024, the Cultural Resources Board recommended funding for various proposals in the Program Support category based on the criteria and considerations set forth in Section 2-145(b) of the City Code and the Fort Fund Guidelines. F. The use of lodging tax revenues will provide a public benefit to the Fort Collins community by supporting cultural development and public programming activities within the City that promote the use of public accommodations within the City. G. The City Council has determined it will advance these purposes to approve Fort Fund grant disbursements as shown on Exhibit “A,” attached hereto and incorporated herein by this reference. In light of the foregoing recitals, which the Council hereby makes and adopts as determinations and findings, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. The City Council hereby finds that the distribution of funds through the Fort Fund program as set forth on Exhibit “A” will promote the cultural and economic health of the community and in doing so will serve a recognized and valuable public purpose. Page 303 Item 14. -2- Section 2. Funds in the total amount of One Hundred Thousand Dollars ($100,000), from the City's Cultural Development and Programming Account and the Tourism Programming Account, are hereby approved for distribution as set forth in Exhibit “A”. Passed and adopted on October 15, 2024. ______________________________ Mayor ATTEST: ______________________________ City Clerk Effective Date: October 15, 2024 Approving Attorney: Ted Hewitt Page 304 Item 14. APPLICANT PROPOSED EVENT FUNDING DEVELOPMENT & TOURISM UNFUNDED REQUEST ACT Human Rights Festival (CSU) Fort Collins Mural Project Fort Collins Musicians Association Foundation Music School Inc Global Village Museum of Arts and Cultures High Performance Dance Theatre Opera Fort Collins, Inc. Places Everyone! (FCCT) Poudre Heritage Alliance Poudre River Public Library District Wolverine Farm Publishing $188,112.00 $88,112 53% Scores are based on application materials and Fort Fund's "Criteria for Funding." Totals FORT FUND GRANT PROGRAMProgram Support September 2024 $100,000 Approved Funding EXHIBIT A TO RESOLUTION 2024-124 Page 305 Item 14. 700 Kipling Street Suite 1000, Lakewood, CO 80215 | P 303.239.4398 | publicsafety.colorado.gov Jared S. Polis, Governor | Stan Hilkey, Executive Directo Division of Criminal Justice 700 Kipling Street, Suite 1000 Lakewood, CO 80215 September 10, 2024 Dear Ms. McMillen, Thank you for submitting your request for additional juvenile diversion funds on Grant # 2025-DV-25- 30008-08. The total amount requested was greater than the funding we had available to reallocate, but we are pleased to tell you we were able to increase your total award by $13,000, to be added to Personnel Line 1. Please note: These funds are not available until we make a modification to your contract. That will take a little while, so please do not spend any of the additional funds until you are notified that the modification has been executed. If you have any questions or concerns, please let us know. If you no longer feel you are able to use these funds, notify us immediately. Best, Gary Fugo and Kate Ferebee Grant Managers, Juvenile Diversion Allocation Office of Adult and Juvenile Justice Assistance (OAJJA) Colorado Division of Criminal Justice The Division of Criminal Justice (DCJ) is committed to the full inclusion of all individuals, and we are continually making changes to improve accessibility and usability of our services. As part of this commitment, DCJ is prepared to offer reasonable accommodations for those who have difficulty engaging with our content. To request this and other accommodations, or to discuss your needs further, please contact me at kate.ferebee@state.co.us or 720-591-1710. Perrie McMillen, Manager, Mediation and Restorative Justice Services City of Fort Collins 300 LaPorte Ave. Fort Collins, CO 80524 Page 306 Item 14. Cultural Resources Board REGULAR MEETING Thursday, September 26, 2024 – 5:30 PM, White Pine, Center for Creativity CALL TO ORDER: 5:34 PM ROLL CALL • Board Members Present –Sheri Emerick, Conner Horak-Flood, Leslie Walker (Chair) • Board Members Remote – Vicki Fogel Mykles (Vice-Chair) • Board Members Absent – Jessica MacMillan, Kelly Mosher, Audra Vaisbort • Staff Members Present – Solara Clark, Eileen May • Guest(s) – Bryan Wallick AGENDA REVIEW CITIZEN PARTICIPATION • Nancy Zola from the Arts in Public Places Board participated in the meeting, expressing her appreciation for being involved and noting her early departure. • Will Flowers, a former Cultural Resources Board member, also participated to observe and stay connected with the community. APPROVAL OF MINUTES • Approval of July 2024 minutes. Vicki Fogel Mykles requested to change the language under Director’s Report. Staff has noted the change. Vicki Fogel Mykles made a motion to approve the minutes. Sheri Emerick seconded the motion. The motion passed unanimously. Approved by roll call, Ayes: Sheri Emerick, Conner Horak-Flood, Vicki Fogel Mykles, Leslie Walker. UNFINISHED BUSINESS NEW BUSINESS • 2024 Program Support Grant: September Deadline – Discussion and Funding Recommendations o Solara Clark reviewed the 2024 Program Support Grant: September Deadline Funding Results and explained how scoring and available funds affects the amount funded per application. The Board discussed and reviewed eleven 2024 Program Support Grant: September Deadline applications and funding recommendations. • Vicki Fogel Mykles raised concerns about the quality of some applications. She highlighted issues with specific applications such as financial discrepancies. Vicki Fogel Mykles informed the Board she will abstain from voting this round. • The Board discussed the potential to have evaluations and comments scored by a specific date, allowing two days for review before the deadline. Staff will look into options for the 2025 grant DRA F T Page 307 Item 14. Cultural Resources Board REGULAR MEETING Thursday, September 26, 2024 – 5:30 PM, White Pine, Center for Creativity cycle and bring the topic back to the Board. The Board discussed the possibility of holding a separate meeting to ensure all voting members are present. Staff agreed and will plan a special online meeting. o Sheri Emerick made a motion to postpone the vote for Program Support Grant: September Deadline until the special meeting. Vicki Fogel Mykles seconded the motion. The motion passed unanimously. Approved by roll call, Ayes: Sheri Emerick, Conner Horak-Flood, Vicki Fogel Mykles, Leslie Walker. • Grantee Presentation – International Keyboard & Odyssiad Festival o Bryan Wallick highlighted International Keyboard & Odyssiad Festival and competition, which combines performances and competitions, attracting artists and young competitors. • Capacity Building Workshop Series – Update and Review o Solara Clark reported progress on organizing the grant writing workshop, with registration open and marketing efforts underway. The Board and staff aims to attract more participants through social media and printed posters. • Cross-Sector Impact Grant – Review Before Scoring o Will Flowers provided background on the Cross-Sector Impact Grant, explaining its intention to foster innovation and community engagement through arts and culture. o Solara Clark presented a review of the Cross-Sector Impact grant including eligibility and scoring criteria. She emphasized collaboration between different sectors to improve community health and well-being through arts and culture. Staff is relying on the Board to determine what is cross-sector work and scores should reflect accordingly. Clarification was sought on the difference between a sector and an artistic discipline, emphasizing that cross-sector should involve arts and a non- arts sector. DIRECTOR’S REPORT • Eileen May informed the Board of Department Updates. o The budget was presented to City Council at the end of August with recommendations from the Budget Leadership Team. o There is a gap in marketing and communication resources for the Center for Creativity, Art in Public Places, Fort Fund, and the Cultural Community Program. o The department is working on strategies to increase earned and contributed revenue. This includes analyzing venue utilization and hiring a Cultural Services Fundraiser to enhance the contributory revenue program. o There is no capital improvement project budget or asset management program for the department. The Lincoln Center requires renovations, and there is a lack of staffing resources across the department. DRA F T Page 308 Item 14. Cultural Resources Board REGULAR MEETING Thursday, September 26, 2024 – 5:30 PM, White Pine, Center for Creativity o There are several upcoming events, including Pumpkins on Parade at the Gardens, the Across the Spider-Verse Live in Concert at The Lincoln Center to kick off their season, and exhibitions at the Center for Creativity and the Fort Collins Museum of Discovery. BOARD MEMBER REPORTS • Leslie Walker attended the Fort Collins Comic Con and the Sonic Guild Showcase. • Conner Horak-Flood went to an event at the Museum of Art. • Sheri Emerick attended BluesFest and an exhibit at the Gregory Allicar Museum of Art. OTHER BUSINESS ADJOURNMENT: Sheri Emerick made a motion to adjourn at 7:12 PM. Conner Horak-Flood seconded the motion. The motion passed unanimously. Approved by roll call, Ayes: Sheri Emerick, Conner Horak-Flood, Vicki Fogel Mykles, Leslie Walker. Respectfully submitted, Solara Clark Project Coordinator DRA F T Page 309 Item 14. File Attachments for Item: 15. Resolution 2024-125 Supporting a Grant Application for Gray and Black-Market Marijuana Enforcement Funding for Fort Collins Police Services. The purpose of this item is to obtain support for the City to apply for grant money to support enforcement of gray and black-market marijuana activity for Fort Collins Police Services. Page 310 City Council Agenda Item Summary – City of Fort Collins Page 1 of 2 October 15, 2024 AGENDA ITEM SUMMARY City Council STAFF Jim Lenderts, Marijuana Enforcement Officer, Police Services Kerri Ishmael, Senior Analyst, Grants Administration SUBJECT Resolution 2024-125 Supporting a Grant Application for Gray and Black-Market Marijuana Enforcement Funding for Fort Collins Police Services. EXECUTIVE SUMMARY The purpose of this item is to obtain support for the City to apply for grant money to support enforcement of gray and black-market marijuana activity for Fort Collins Police Services. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION “Gray Market” is a term that refers to marijuana grown legally then sold in a way that would be illegal. An example would be where someone has a medical card with an “extended plant count” which may allow them to grow up to 99 plants, but instead of using the product for their own medical needs, they sell it on the black market either locally or more likely to someone in another state. Since 2019 the State has made grant funding available to help address unlicensed and illegal marijuana activity in Colorado. Each year Police Services has applied and been awarded funds through the State’s Gray and Black-Market Marijuana Enforcement Grant Program to investigate illicit marijuana cultivation and distribution operations. Grant funds received by Police Services through the program have allowed for: (1) investigations of the sale of unregulated Delta-8 THC to minors at local smoke shops (not licensed marijuana businesses); (2) regulatory inspections of commercial establishments relative to recent code changes involving the sale of smoking and vaping products to minors; and (3) investigations in both smoke shops and residences. In early 2024, Police Services used GBMJ grant funds to investigate an unlicensed smoke shop following repeated complaints of underage tobacco and marijuana sales from parents. A search warrant was served which subsequently resulted in felony charges on the owner. Funds received through this grant program support Police Services in investigating criminal activities over unlicensed/illegal marijuana, supporting a safer community. To support staff resources in investigating illicit marijuana cultivation and distribution operations, Police Services intends to apply for grant funds under the State’s Gray and Black-Market Marijuana Enforcement Grant Program. Page 311 Item 15. City Council Agenda Item Summary – City of Fort Collins Page 2 of 2 CITY FINANCIAL IMPACTS Support of Police Services in applying to the Gray and Black-Market Marijuana Enforcement Grant Program does not impact City finances. If the grant is awarded, Police Services will seek appropriation of such grant funds from City Council. BOARD / COMMISSION / COMMITTEE RECOMMENDATION None. PUBLIC OUTREACH None. ATTACHMENTS 1. Resolution for Consideration Page 312 Item 15. -1- RESOLUTION 2024-125 OF THE COUNCIL OF THE CITY OF FORT COLLINS SUPPORTING A GRANT APPLICATION FOR GRAY AND BLACK-MARKET MARIJUANA ENFORCEMENT FUNDING FOR FORT COLLINS POLICE SERVICES A. Fort Collins Police Services (“FCPS”) is applying for a grant through the Gray and Black-Market Marijuana Enforcement Grant Program (the “Program”) from the State of Colorado Department of Local Affairs (“DOLA”) to fund investigation and prosecution of unlicensed marijuana cultivation and distribution operations (the “Projec t”). B. As part of the Program grant application process, DOLA requires that the governing body of any entity applying for grant funds pass a resolution to show that it is aware of and supports the application and recognizes the obligations the grant creates . C. The City would not be required to provide any matching funds toward the Project. D. The Program provides financial assistance to local law enforcement agencies and district attorneys through local governments. E. The total amount of grant money to be dispersed statewide by DOLA amongst applicant agencies and district attorneys is approximately $790,000 for fiscal year (FY) 2024-2025 Program funding. F. In the last FY 2023-2024, FCPS received $39,641 from the Program. G. Funds received through this grant program support FCPS in investigating criminal activities over unlicensed/illegal marijuana, supporting a safer community. H. FCPS continues receiving complaints about the sale of Hemp intoxicants to minors at local smoke shops (not licensed marijuana businesses) and has several active investigations. I. In early 2024, FCPS used Program grant funds to investigate an unlicensed smoke shop following repeated complaints of underage tobacco and marijuana sales from parents. A search warrant was served which subsequently resulted in felony charges on the owner. J. FCPS recommends the continuation of the above referenced grey-market and black-market marijuana investigations. K. FCPS has utilized money from this Program to acquire long-term evidence storage units for illegal black-market marijuana, and for an increase in staffing to help with investigations of black-market grow operations in the City. Page 313 Item 15. -2- L. The grant money would allow FCPS to continue to improve neighborhood livability and provide insight into the extent of the problems associated with unlicensed, illegal marijuana activity in the City. In light of the foregoing recitals, which the Council hereby makes and adopts as determinations and findings, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. The City Council hereby supports the City’s FY 202 4-2025 application for a grant through the Program from DOLA to fund the Project; and Section 2. If the grant is awarded, the City Council supports the completion of the Project. Passed and adopted on October 15, 2024. ______________________________ Mayor ATTEST: ______________________________ City Clerk Effective Date: October 15, 2024 Approving Attorney: Ethan Doak Page 314 Item 15. File Attachments for Item: 16. Resolution 2024-126 Adopting Findings of Fact in Support of the City Council ’s Decision on Appeal to Uphold the Planning and Zoning Commission Approval of the College & Trilby Multifamily Community Project Development Plan #PDP220009. The purpose of this item is to make Findings of Fact and Conclusions regarding Council’s decision at the October 1, 2024, College and Trilby Multifamily Community Project Development Plan appeal hearing dismissing the failure to properly interpret and apply allegations and thereby upholding the Hearing Officer’s decision to approve the Project Development Plan. Page 315 City Council Agenda Item Summary – City of Fort Collins Page 1 of 2 October 15, 2024 AGENDA ITEM SUMMARY City Council STAFF Kim Meyer, Interim Director, Community Development & Neighborhood Services SUBJECT Resolution 2024-126 Adopting Findings of Fact in Support of the City Council’s Decision on Appeal to Uphold the Planning and Zoning Commission Approval of the College & Trilby Multifamily Community Project Development Plan #PDP220009. EXECUTIVE SUMMARY The purpose of this item is to make Findings of Fact and Conclusions regarding Council’s decision at the October 1, 2024, College and Trilby Multifamily Community Project Development Plan appeal hearing dismissing the failure to properly interpret and apply allegations and thereby upholding the Hearing Officer’s decision to approve the Project Development Plan. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION On July 24, 2024, Hearing Officer Lori Strand (“Hearing Officer”) considered an application for the College & Trilby Multifamily Community Project Development Plan #PDP220009 (the “Project”). On August 6, 2024, the Hearing Officer issued a decision approving the Project. On August 20, 2024, Marcus Mims and Libby Abramovich filed a Notice of Appeal alleging that: The Hearing Officer improperly interpreted and applied Larimer County Urban Area Street Standards (LCUASS) Sections 1.4, 1.5, 1.8.1, 7.1, 7.1.1, 7.2.3, 7.4 (Table 7-1, 7-2, 7-3) and related sections of the Fort Collins Land Use Code. On October 1, 2024, City Council considered the appeal allegations, the record on appeal, and testimony from the Appellants, parties in interest supporting the appeal, the project applicants’ legal counsel in opposition to the appeal, and City staff. After discussing the appeal allegations, City Council unanimously voted to dismiss the Appellants’ allegations that LUCASS and Land Use Code provisions were not properly interpreted and applied and upheld the Hearing Officer’s approval of the Project. CITY FINANCIAL IMPACTS None. Page 316 Item 16. City Council Agenda Item Summary – City of Fort Collins Page 2 of 2 BOARD / COMMISSION / COMMITTEE RECOMMENDATION None. PUBLIC OUTREACH None. ATTACHMENTS 1. Resolution for Consideration Page 317 Item 16. -1- RESOLUTION 2024-126 OF THE COUNCIL OF THE CITY OF FORT COLLINS ADOPTING FINDINGS OF FACT IN SUPPORT OF THE CITY COUNCIL’S DECISION ON APPEAL TO UPHOLD THE HEARING OFFICER’S APPROVAL OF THE COLLEGE & TRILBY MULTIFAMILY COMMUNITY PROJECT DEVELOPMENT PLAN #PDP220009 A. On August 6, 2024, Administrative Hearing Officer Lori Strand (“Hearing Officer”) approved the College & Trilby Multifamily Community Project Development Plan #PDP220009 (“Project”). B. On August 20, 2024, Marcus Mims and Libby Abramovich (“Appellant”) filed a notice of appeal (“Appeal”) with the City alleging: The Hearing Officer failed to properly interpret and apply Larimer County Urban Area Street Standards (LCUASS) Sections 1.4, 1.5, 1.8.1, 7.1, 7.1.1, 7.2.3, 7.4 (Table 7-1, 7-2, 7-3) and related sections of the Fort Collins Land Use Code to certain existing roads adjacent to the Project. C. On October 1, 2024, the City Council, after notice given in accordance with City Code Section 2-52, held a public hearing (“Hearing”) pursuant to City Code Section 2-54 to consider the allegations raised in the Appeal. D. At the Hearing, the Appellant and parties-in-interest in support of the Appeal appeared and addressed Council, arguing in favor of the Appeal. E. Also at the Hearing, legal counsel for the project applicant addressed Council, arguing in opposition to the Appeal. F. In making its determination regarding the Appeal at the Hearing, City Council considered the record on appeal; testimony from City staff; statements and arguments by the Appellant and parties-in-interest in support of the Appeal; and statements and arguments in opposition to the Appeal made by legal counsel for the project applicant for the College & Trilby Multifamily Community Project Development Plan. G. City Council dismissed the Appeal’s failure to properly interpret and apply allegations, finding the Hearing Officer properly applied LCUASS and the Land Use Code to roads in the Project area and did not hold the project applicant responsible to fix existing deficiencies on roads outside the Project area, based on vehicle traffic volumes projected from the Project. H. City Code Section 2-56(c) provides that no later than the date of its next regular meeting after the hearing of an appeal, City Council shall adopt by resolution findings of fact in support of its decision on the appeal. Page 318 Item 16. -2- In light of the foregoing recitals, which the Council hereby makes and adopts as determinations and findings, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. The allegations set forth in the Appeal, that the Hearing Officer failed to properly interpret and apply the Larimer County Urban Area Street Standards (LCUASS) and Fort Collins Land Use Code, are dismissed because: a. LCUASS and the Land Use Code were properly applied to roads in the Project area; and b. LCUASS and the Land Use Code do not require the project applicant to fix deficiencies on roads outside the Project area, when vehicle traffic from the Project is not expected to negatively impact those roads. Section 2. The adoption of this Resolution shall constitute the final action of the City Council in accordance with City Code Section 2-56(c). Passed and adopted on October 15, 2024. _________________________________ Mayor ATTEST: ________________________ City Clerk Effective Date: October 15, 2024 Approving Attorney: Cyril Vidergar Page 319 Item 16. File Attachments for Item: 17. Items Relating to Water Supply Requirement Fee and the Excess Water Use Surcharge, and Pre-1984 Nonresidential Annual Allotments. A. First Reading of Ordinance No. 151, 2024, Amending Chapter 26 of the Code of the City of Fort Collins to Review Miscellaneous Water Fees and Charges, Including the Water Supply Requirement Fee and Excess Water Use Surcharge. B. First Reading of Ordinance No. 152, 2024, Amending Chapter 26 of the Code of the City of Fort Collins Regarding Annual Water Allotments for Nonresidential Water Services. The purpose of this item is to seek approval for both the adjustments to the Water Supply Requirement (WSR) fee amount and methodology and assignment of allotments to pre-1984 nonresidential accounts. Page 320 City Council Agenda Item Summary – City of Fort Collins Page 1 of 4 October 15, 2024 AGENDA ITEM SUMMARY City Council STAFF Jen Dial, Utilities Water Resources Manager SUBJECT Items Relating to Water Supply Requirement Fee and the Excess Water Use Surcharge, and Pre- 1984 Nonresidential Annual Allotments. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 151, 2024, Amending Chapter 26 of the Code of the City of Fort Collins to Review Miscellaneous Water Fees and Charges, Including the Water Supply Requirement Fee and Excess Water Use Surcharge. B. First Reading of Ordinance No. 152, 2024, Amending Chapter 26 of the Code of the City of Fort Collins Regarding Annual Water Allotments for Nonresidential Water Services. The purpose of this item is to seek approval for both the adjustments to the Water Supply Requirement (WSR) fee amount and methodology and assignment of allotments to pre-1984 nonresidential accounts. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. BACKGROUND / DISCUSSION Water Supply Requirement (“WSR”) Fee Fort Collins Utilities has been proactive in securing and developing a high-quality, reliable water supply system since the late 1800s and has implemented policies to ensure the water supply system will support existing and future water customers through the 2065 planning horizon. Financial mechanisms to help achieve this priority include the WSR, previously known as the Raw Water Requirement (RWR), which is met with a cash payment (WSR fee) and the Excess Water Use surcharge (surcharge) assessed and nonresidential accounts where use exceeds the annual allotment. Term clarifications: WSR fee A one-time variable development fee required for each new water service or replacement of an existing meter or service with a larger size. Surcharge A volumetric charge for nonresidential customers who exceed their allotment during a 12- month period. Allotment The volume of water a nonresidential account can use in a 12-month period before incurring a surcharge. Page 321 Item 17. City Council Agenda Item Summary – City of Fort Collins Page 2 of 4 There are multiple ways to calculate the WSR fee. Utilities has been using a hybrid approach since 2018 which reflects a “buy-in” component of costs for those water rights and infrastructure already owned and an “incremental” component of costs for the construction of new infrastructure (primarily storage in an enlarged Halligan Reservoir) and additional water rights. The “buy-in” component of the WSR fee can be valued with a market-based approach or a cost-based approach. The current methodology uses a market-based approach. The market-based approach factors in the current market value for the existing water rights portfolio and infrastructure based on recent transactions. The cost-based approach uses the original purchase price of the water rights and infrastructure escalated by the consumer price index to reflect their value in today’s dollars. The Ordinance presented, and staff recommendation, is to implement a cost-based method for the “buy-in” component. Other factors that can be reflected in the WSR fee include a 30% contingency factor and a 20% safety factor, which are both included in the current methodology. The contingency factor represents uncertainties in the cost of future water rights and infrastructure and is not applied to the “buy-in” component of the WSR fee. The safety factor represents uncertainties in future water supply and demand needs such as potential impacts of climate change and type or rate of development and redevelopment and is applied to the entire WSR fee. The Ordinance presented, and staff recommendation, maintains both contingency and safety factors in the “incremental” component. In August 2023, staff presented a revised hybrid methodology that would have significantly increased the current fee of $68,200 per acre-foot to $179,500 per are-foot. Following Council discussion, staff evaluated methodologies with different options of valuing the “buy-in” component. In April 2024 staff presented four options with a recommendation for a hybrid, cost-based methodology for the “buy-in” component that includes a 30% contingency factor and 20% safety factor. Staff found a cost-based approach for the “buy- in” component more appropriately reflects the investment Utilities made early on when the cost of infrastructure and water rights were lower. There was general Council support of this approach. Following outreach and refinements to costs in the proposed methodology, staff presented at the July 9, 2024, work session with a recommended 2025 fee of $63,8000 per-acre foot utilizing the hybrid, cost- based methodology. The fee will be reviewed and updated, if necessary, annually in October/November using the same methodology. The proposed fee is $4,400 per acre-foot less than the current fee which will result in financial impacts to existing rate payers. Approximately 95% of water fund revenue is collected from rates and 5% from development fees such as the WSR fee. The less revenue collected from development fees, the greater the impact on rates. Projected out over time, and not considering WSR fee increases, Utilities will see a 6.5% decrease in development fees, which would require roughly a half-percent increase in customer rates to recoup the difference. Assignment of Pre-1984 Nonresidential Allotments Allotments represent the anticipated annual amount of water needed per water nonresidential account. Although the WSR/RWR and annual allotments are related, the WSR/RWR is a development fee whereas the allotment is term of service that can be a different amount based on different assumptions and analyses. Approximately 1,000 nonresidential accounts do not have an allotment (pre-1984 accounts). At previous Council work sessions, staff recommended assigning allotments to these customers to increase consistency and reduce inequities by requiring all customers to manage water efficiently and be subject to surcharges, thereby increasing the incentive for the efficient use of water supplies. Four methodologies have been considered and analyzed. The Ordinance presented and staff recommendation is to utilize a hybrid methodology for assigning allotments. The hybrid method assigns the greater of either a tap size credit using values from 1989 or a 5-year historical average use. By assigning the higher allotment value the goal is to minimize overages and the incurrence of surcharges. The customers most likely to be impacted by surcharges are irrigation-only Page 322 Item 17. City Council Agenda Item Summary – City of Fort Collins Page 3 of 4 accounts, including several City-owned properties, mixed-use strip malls, and restaurants. The potential impact is attributed to highly variable factors affecting these use types such as weather, patronage, and revolving tenants. There may be additional accounts with highly variable account uses, including large water users and large tap accounts, that may be impacted. Staff has and will continue to provide customer outreach and support to these accounts. Following work session discussions, Council expressed general support of the hybrid methodology to assign allotments to pre-1984 nonresidential customers. Prior to Ordinance No. 18, 1965, customers were not required to provide water rights to the City and thus there is no water requirements information upon which to base a specific annual allotment. Customers with permits dating between Ordinance No. 18, 1965 and Ordinance No. 12, 1984 provided the City with water rights (or cash in lieu thereof) based on various assumptions that cannot be reliably translated into the annual allotments assigned to customers with permits received after Ordinance No. 12, 1984. The proposed hybrid methodology for assigning allotments takes into consideration actual water use over a representative and reasonable time-period for each account. Customer outreach has indicated that assigning allotments through this hybrid approach will not be meaningfully adverse and assigning such allotments will further the City’s policy goals to help control water demands and conserve water supplies for the water utility. The Ordinance presented proposes allotments be assigned on December 1, 2024, with no surcharges assessed until January 2026. Throughout 2025, customers will have time to adjust to an allotment and staff can collect feedback on any potential impacts and concerns. This also allows the opportunity to adjust the policy if needed prior to assessing surcharges. CITY FINANCIAL IMPACTS Annual revenue from development fees is directly tied to development and redevelopment within Utilities’ water service area, which can vary greatly from year to year. Any changes to the WSR fee will impact the amount recovered for source of supply and storage projects in both the near term and long term. A change to the WSR is also directly tied to the amount collected in surcharges, and as customers exceed their allotment, it helps ensure recovery for undersized WSR received at time of development. BOARD / COMMISSION / COMMITTEE RECOMMENDATION At the August 15, 2024, hearing, Planning and Zoning Commission recommended that Council approve the hybrid, cost-based methodology for WSR and assigning of allotments to pre-1984 nonresidential customers. At the August 1, 2024, work session, Water Commission recommended that Council approve the hybrid, cost-based methodology for WSR and assigning of allotments to pre-1984 nonresidential customers. PUBLIC OUTREACH Utilities reached out to customers and community members who could potentially be impacted by these decisions, including developers, community groups, Boards and Commissions, existing customers, and nonresidential customers who would be assigned an allotment. In general, the feedback received has been positive or neutral, with most groups interested in better understanding their specific situation. Tactics for outreach included: Our City engagement website Direct email and mail Webinar for potential new allotment customers Internal staff lunch and learn Page 323 Item 17. City Council Agenda Item Summary – City of Fort Collins Page 4 of 4 Dedicated office hours appointments by request Chamber of Commerce Affordable Housing Providers ATTACHMENTS 1. Ordinance A for Consideration 2. Ordinance B for Consideration Page 324 Item 17. -1- ORDINANCE NO. 151, 2024 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVIEW MISCELLANEOUS WATER FEES AND CHARGES, INCLUDING THE WATER SUPPLY REQUIREMENT FEE AND EXCESS WATER USE SURCHARGE A. The City owns and operates a water utility that provides water service to customers in its service area pursuant to the City Charter, City Code, and other applicable laws. B. The City Council is empowered and directed by the City Charter Article XII, Section 6, by ordinance from time to time, to fix, establish, maintain, and provide for the collection of such rates, fees or charges for water and for other utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses, and oth er obligations as set forth therein. C. City water utility customers must meet the Water Supply Requirement (“WSR”) to receive new water service or to replace an existing meter or service with a larger size. The WSR is set forth in City Code Sections 26-146 through 26-150. The WSR is calculated, in gallons, considering the annual volume of water a customer is anticipated to use. Under City Code Section 26-150(a)(2), the WSR may be met with a payment of cash in the amount stated in City Code Section 26-129(c)(1) (“WSR Fee”). D. Nonresidential water service permits are assigned an annual allotment , in gallons, pursuant to City Code Section 26-149. The annual allotment is equivalent to the WSR, in gallons. Under City Code Section 26-149, when a nonresidential user uses more water than the annual allotment, as determined by monthly billing records in a given calendar year, an excess water use surcharge in the amount stated in City Code Section 26-129(c)(2) will be assessed on the volume of water used in excess of the annual allotment. E. City staff completed a comprehensive review of the WSR Fee and the excess water use surcharge and have recommended adjustments to the amount of each. F. City staff has recommended that, moving forward, the WSR Fee be calculated using the following hybrid conceptual approach. 𝑊𝑆𝑅 𝐹𝑒𝑒=(𝐻𝑖𝑠𝑡𝑜𝑟𝑖𝑐𝑎𝑙 𝑊𝑎𝑡𝑒𝑟 𝑆𝑢𝑝𝑝𝑙𝑦 𝐶𝑜𝑠𝑡𝑠+ 𝐹𝑢𝑡𝑢𝑟𝑒 𝑊𝑎𝑡𝑒𝑟 𝑆𝑢𝑝𝑝𝑙𝑦 𝐶𝑜𝑠𝑡𝑠 𝐹𝑖𝑟𝑚 𝑌𝑖𝑒𝑙𝑑). G. This hybrid approach reflects, among other things, that the City has an integrated water supply system where customers benefit from both (1) previously acquired portions of the system and (2) portions of the system that will be acquired in the future. The “Historical Water Supply Costs” reflect the City’s actual costs for the previously acquired portions of the system, including water rights and other rights to use water, as adjusted for inflation. The “Future Water Supply Costs” value reflect reasonable Page 325 Item 17. -2- estimates of future costs for portions of the system that will be acquired in the future, including water rights and other rights to use water. The “Firm Yield” value reflects the volume of water the system can reliably deliver per year in varying climati c and other scenarios. The WSR Fee is thus a dollar amount per volume of water, in gallons. H. City staff has also recommended that, moving forward, the excess water use surcharge continues to be calculated based on a 20-year amortization of the WSR Fee. This reasonable approach reflects that, among other things, a nonresidential customer’s water use over their annual allotment triggers the City’s need to evaluate the acquisition of additional water supplies to address the water use in excess of the annual allotment and the WSR that was met. I. The Water Commission considered the proposed adjustments to the amount of the WSR Fee and excess water use surcharge at its regular meeting on August 1, 2024, and recommended approval of the proposed adjustments. J. City Council adopts City’s staff’s recommendations. City Council determines that the above approaches for the WSR Fee and excess water use surcharge are reasonable and fair. In light of the foregoing recitals, which the Council hereby makes and adopts as determinations and findings, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. Section 26-129 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec 26-129. - Schedule D, miscellaneous fees and charges. The following fees and service charges shall be paid by water users, whether inside or outside the City limits: . . . (c) The fees and requirements for water supply shall be as follows: (1) To satisfy Water Supply Requirement (WSR) with cash payments Per 325,851 gallons of WSR $68,200.00 $63,800.00 (2) Excess water use surcharge assessed on nonresidential users when water use is in excess of the applicable annual allotment Per 1,000 gallons $16.67 $15.59 Section 2. The modifications above to Subsection 26-129 Schedule D, miscellaneous fees and charges, shall be effective as of January 1, 2025. Page 326 Item 17. -3- Introduced, considered favorably on first reading on October 15, 2024, and approved on second reading for final passage on November 4, 2024. ______________________________ Mayor ATTEST: ______________________________ City Clerk Effective Date: November 14, 2024 Approving Attorney: Eric Potyondy Page 327 Item 17. -1- ORDINANCE NO. 152, 2024 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS REGARDING ANNUAL WATER ALLOTMENTS FOR NONRESIDENTIAL WATER SERVICES A. The City owns and operates a water utility that provides water service to customers in its service area pursuant to the City Charter, City Code, and other applicable laws. B. The City Council is empowered and directed by the City Charter Article XII, Section 6, by ordinance from time to time, to fix, establish, maintain and provide for the collection of such rates, fees, or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other obligations of the water utility, as set forth therein. C. The City has been providing water service to customers since the late 1800s. D. Through Ordinance No. 18, 1965, as a prerequisite for new water service, the City began requiring customers to furnish acceptable water rights to the City, or a payment of cash in lieu of water rights. This water furnishing requirement was described as a volume of water per acre to be served (“Area Approach”). The required volume of water was determined based on various assumptions that evolved over time. The water rights the City historically accepted to meet this water furnishing requirement were assigned a water volume based on assumptions that evolved over time as new information and analyses became available. E. The City adjusted the water furnishing requirement in subsequent ordinances, including Ordinance No. 39, 1971 and Ordinance No. 104, 1973. However, the City continued to use the Area Approach until early 1984. F. Through Ordinance No. 12, 1984, the City renamed the water furnishing requirement the “Raw Water Requirement”. The Raw Water Requirement was then based on the volume of water a customer was anticipated to use annually, multiplied by a water supply factor. City Council subsequently amended the water supply factor. The water rights the City accepted to meet this Raw Water Requirement were then assigned a water volume based on assumptions that evolved over time as new information and analyses became available. G. Under Ordinance No. 12, 1984, the City also began assigning annual allotments on nonresidential water service permits applied after March 1, 1984 (“Post-84 Nonresidential Permits”). Under that ordinance, the annual allotment amount became based on the water volume the customer was anticipated to use annually, and actual water use over that allotment triggers an excess water use surcharge. Page 328 Item 17. -2- H. Under Ordinance No. 12, 1984, the City did not assign annual allotments on nonresidential water service permits applied for before March 1, 1984 (“Pre-84 Nonresidential Permits”). To date, the City has not assigned annual allotments to these permits. I. Under Ordinance No. 116, 2017, the City renamed the Raw Water Requirement the “Water Supply Requirement,” and under Ordinance No. 119, 2021, the City ceased using a water supply factor to calculate the Water Supply Requirement and annual allotments. J. Under Post-84 Nonresidential Permits, water use must stay under the annual allotment or incur an excess water use surcharge. For these permits, annual allotments control system water demands and conserve water supplies, which benefits all water utility ratepayers. Annual allotments and the excess water use surcharge are currently set forth in City Code Section 26-149. As of the date of this Ordinance, approximately two-thirds of nonresidential water service permits are Post-84 Nonresidential Permits. K. Under Pre-84 Nonresidential Permits, water use does not have to stay under an annual allotment because there historically has been none. For these permits, there has been no annual allotment or excess water use surcharge to control water demands and conserve water supplies, to the detriment of other water utility ratepayers. Approximately one-third of nonresidential water service permits are Pre-84 Nonresidential Permits. L. The City desires to assign annual allotments to Pre-84 Nonresidential Permits for various reasons, including: reducing the inequities between Pre- and Post-84 Nonresidential Permits; and increasing incentives to control system water demands and conserve water supplies for the benefit of all water utility ratepayers. M. City Council has determined that the method described herein for assigning annual allotments to Pre-84 Nonresidential Permits is reasonable and fair for various reasons, including: the annual allotments will be assigned based on a fair and objective methodology that reflects reasonable expectations and actual, recent water use over a representative and reasonable time period; customers with permits dated before Ordinance No. 18, 1965 were not required to furnish water rights to the City and thus there is no water requirements information upon which a specific annual allotment could be based; customers with permits dated between Ordinance No. 18, 1965 and Ordinance No. 12, 1984 provided the City with water rights (or cash in lieu thereof) based on assumptions that cannot be reliably translated into the annual allotments assigned to customers with permits dated after Ordinance No. 12, 1984; Page 329 Item 17. -3- customer outreach prior to this ordinance was significant and indicated that customers will not be meaningfully adversely affected by the annual allotments; and annual allotments will further the City’s legitimate policy goals described in Recital L. In light of the foregoing recitals, which the Council hereby makes and adopts as determinations and findings, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 26-149 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-149. - Water supply requirement (WSR); nonresidential service. (a) Nonresidential service for WSR shall apply to all services not included in the residential category and shall include, without limitation, all service to customers for: commercial; industrial; irrigation; public entity; group housing, such as nursing homes and long-term care facilities,; fraternity and sorority dormitory housing; hotels and motels; and mixed-use purposes, provided that service for irrigation purposes shall not be mixed with other purposes. (b) The minimum WSR shall be calculated using the table in this subsection. The Utilities Executive Director shall determine the type of use to be used based on all relevant information and the common meaning of the listed uses. If various portions of a property are used for separate uses, the WSR for the service(s) on various portions of the property shall be calculated separately and aggregated to determine the WSR for the services(s) on the entire property. The WSR for services for any use not addressed by the table shall be calculated pursuant to Subsection (c). Use WSR Calculation . . . Irrigation Pursuant to water budget chart, Land Use Code Section 5.10.1(E)(3)(b) §3.2.1(E)(3)(b)(1) . . . (c) As required by Subsection (b), the WSR for services for such uses shall be the estimated peak annual water use determined by the Utilities Executive Director. The applicant shall provide the Utilities Executive Director with its estimated peak annual water use and any supporting information. The Utilities Executive Director shall consider the applicant's estimate and all relevant and reliable data and information, and shall make the determination following any appropriate investigations, including requests for additional information and analyses from the applicant. (d) In order to preserve the value of the water certificates issued by the City or WSR credits in the City's records issued before January 1, 2022, the WSR for Page 330 Item 17. -4- nonresidential service calculated pursuant to this section shall be multiplied by 1.92 to the extent the WSR is met pursuant to §26-150(a)(1) with water certificates issued by the City or WSR credits in the City's records issued before January 1, 2022, provided that such multiplication shall not be considered in the assignment of th e annual allotment pursuant to Subsection s (e) and (f). (e) Nonresidential services with permits issued before March 1, 1984 shall be assigned an annual allotment of water for each service that is equal to the greater of: the appropriate value in the table in this subsection; and the average annual use of the service between January 1, 2019 and December 31, 2023. Any exceedance of an annual allotment assigned under this Subsection shall not be assessed any excess water use surcharge until January 1, 2026. Meter Size (Inches) Annual Allotment (gallons per year) ¾ 293,270 1 977,550 1 ½ 1,955,110 2 3,128,170 3 and larger 4,692,250 (ef) Upon application for a water service permit after March 1, 1984, each applicant who is a nonresidential user shall be assigned an annual allotment of water for each tap that is equal to the greater of: the WSR as determined pursuant to this Section; any WSR that was satisfied at the time of application for nonresidential water service; any increased annual allotment pursuant to Subsection (i) below; and the volume of the water furnishing requirement of the City under an earlier water supply furnishing or development program, as determined by the City. For any nonresidential service applied for after March 1, 1984, an annual allotment of water for each service shall be assigned that is equal to the WSR as determined pursuant to this Section. For any replacement of an existing nonresidential meter or service with a larger size applied for after March 1, 1984, an annual allotment of water for each service shall be assigned that is the greater of: the WSR as determined pursuant to this Section ; or the annual allotment for the service. (fg) When a user uses more water than the annual allotment, as determined by monthly billing records in a given calendar year, an excess water use surcharge in the amount prescribed in § 26-129 will be assessed on the volume of water used in excess of the annual allotment,. provided that nNo excess water use surcharge shall be charged to nonresidential services used exclusively for irrigation purposes during the first three (3) calendar years following the initial installation of the irrigation system, provided that for the purposes of this provision, the first calendar year shall be from the date of installation through December 31. Page 331 Item 17. -5- (gh) The utility shall assign an annual allotment in the application of the WSR pu rsuant to §26-147. In the case of the replacement of an existing meter with a larger size or other change to an existing water service, the utility will credit the nonresidential user towards the water service permit as follows. If an annual allotment has been assigned, tThe credit towards the water service shall be for the amount of the annual allotment for the propertyservice. If the credit towards the water service is greater than the annual allotment that would otherwise be assigned for the new water service permit, the credit for the water service shall establish the annual allotment and no cash refund or water certificates issued by the City shall be provided to the applicant. If no annual allotment has been assigned, the credit towards the water se rvice shall be the amount set forth below for the existing meters serving the property. The credit authorized under this subsection is not transferrable to other properties or services. If no annual allotment has been assigned, the credit towards the water service shall be as follows: Meter Size (inches) Annual Allotment (gallons/ year) ¾ 152,745 1 509,141 1½ 1,018,286 2 1,629,255 3 2,443,880 Above 3 169,714 gallons per acre foot of WSR met for the permit or, if such amount cannot be established, the average historical use over a representative time period as determined by the Utilities Executive Director (h) In the event an applicant applying for a nonresidential water service permit has, prior to March 1, 1984, surrendered water rights or otherwise satisfied the requirements of the City under an earlier water supply furnishing or development program, then the minimum WSR for that property shall be conside red satisfied under this Section. However, such nonresidential user shall be subject to the Excess Water Use Surcharge when the annual allotment is exceeded. (i) A nonresidential user may increase the annual allotment for a property service by satisfying additional WSR pursuant to §26-150. Such submission shall raise the user's annual allotment by the amount of additional W SR equivalent water rights Page 332 Item 17. -6- submitted in gallons provided that, in order to preserve the value of the water certificates issued by the City or WSR credits in the City's records issued before January 1, 2022, the value of water certificates issued by the City or WSR credits in the City's records issued before January 1, 2022, shall be divided by one and ninety- two one-hundredths (1.92). Any increase of a user's annual allotment will be applied to subsequent billing and other matters and shall not be applied retroactively. . . . Section 2. The modifications above to Subsection 26 -149 Water Supply Requirement (WSR); nonresidential, shall be effective as of January 1, 2025. Introduced, considered favorably on first reading on October 15, 2024, and approved on second reading for final passage on November 4, 2024. ______________________________ Mayor ATTEST: ______________________________ City Clerk Effective Date: November 14, 2024 Approving Attorney: Eric Potyondy Page 333 Item 17. Headline Copy Goes Here Utilities Water Resources Manager Jen Dial Oct. 15, 2024 Water Supply Requirements, Excess Water Use Surcharges, and Pre-1984 Nonresidential Water Allotments Page 334 Item 17. Headline Copy Goes Here Jen Dial, Water Resources Manager Water Supply Requirements (WSR) Methodology Page 335 Item 17. Headline Copy Goes HereWSR Fee and Surcharge Overview •During development or redevelopment, a customer pays a one-time WSR fee for the water the project needs •Based on the property’s anticipated water use •Offsets the impacts to the City’s water supply system •Once the WSR is paid, Utilities assigns the account an allotment (or water budget) •If the customer uses more water than the allotment allows, they pay an Excess Water Use surcharge Current WSR fee: $68,200 per acre-foot of water Current surcharge: $16.67 for every 1,000 gallons Page 336 Item 17. Headline Copy Goes HereProcess to Determine the New WSR Methodology ›External work with consultant ›Internal calculations and comparisons ›Council feedback ›Three Council work sessions 2023 2024 ›Boards and Commissions ›Outreach to impacted parties Page 337 Item 17. Headline Copy Goes HereProposed WSR Methodology Overview HYBRID Buy-in Existing water rights and infrastructure Cost-based Incremental Future water rights and infrastructure Market-based Total cost to increase reliability of water supply Page 338 Item 17. Headline Copy Goes HereOrdinance Presented •Hybrid, cost-based method with 30% contingency and 20% safety factor: •2025: $63,800 per acre-foot •WSR amount directly ties to surcharge for allotment customers: •2025: $15.59 per 1,000 gallons •Staff anticipates maintaining the methodology over time and adjusting along with other Utilities fees (typically annually) Page 339 Item 17. Headline Copy Goes Here Jen Dial, Water Resources Manager Assigning Water Allotments to Remaining Nonresidential Customers Page 340 Item 17. Headline Copy Goes HereAllotment Overview •Allotments are like a budget •If a customer exceeds their “budget”, they are charged a surcharge •Nonresidential allotments started in 1984 •About 1,000 accounts do not currently have an allotment •Recommending to assign allotments to administer water fairly across the community Page 341 Item 17. Headline Copy Goes HereStaff Recommendation Tap Credit Average Historical Use Assigns a volume based on meter size determined by the 1989 tap credit value. Assigns a volume based on average five-year historical water use per tap. Staff will assign allotments based on the greater value between tap credit or a five-year average. Page 342 Item 17. Headline Copy Goes HereImplementation Recommended allotment assignments have been chosen to minimize customer impact and would include: •A one-year grace period where surcharges would not be assessed. •One-on-one customer engagement over the coming months. •Conservation education and project support as appropriate. Page 343 Item 17. Headline Copy Goes Here Jen Dial, Water Resources Manager Questions? Page 344 Item 17. File Attachments for Item: 18. Sanctuary on the Green Project Development Plan Appeal. The purpose of this quasi-judicial item is to consider an appeal of the Hearing Officer’s decision on July 28, 2024, approving the Sanctuary on the Green Project Development Plan, PDP210018. The Appellants filed a Notice of Appeal on August 8, 2024, alleging: • That the Hearing Officer failed to conduct a fair hearing in that they substantially ignored previously established rules of procedure. The Appellants assert that the Applicant did not diligently pursue approval of the development application as required by Section 2.2.11 of the Land Use Code. The Appellants claim the development application for Sanctuary on the Green should have lapsed on April 17, 2024, as a result. The Appellants further argue that the City’s changing interpretation of the lapse date for this development application demonstrated an improper bias benefitting the Applicant. • That the Hearing Officer failed to conduct a fair hearing in that they considered evidence relevant to the findings which was substantially false or grossly misleading. The Appellants assert that: “The Hearing Officer relied largely on the Staff Report and a letter from the Applicant’s lawyer when issuing his decision. Evidence that the plan is in compliance with NSP [Northwest Subarea Plan] is cherry-picked in both of these documents.” • That the Hearing Officer failed to conduct a fair hearing in that they failed to receive all relevant evidence offered by the Appellants. The Appellants assert that: “The City erred in failing to provide the Hearing Officer with 342 pages of public comment in advance of the July 15, 2024, hearing, creating an unfair hearing.” The comments were received and publicly available, but city staff inadvertently did not directly forward those to the hearing officer until staff was made aware of the error. That the Hearing Officer failed to properly interpret and apply relevant provisions of the Land Use Code – specifically the following Land Use Code sections: 2.2.11 – Lapse 1.2.2 – Purpose 3.5.1 – Building and Project Compatibility 4.5(E) – Low Density Mixed-Use Neighborhood Development Standards Northwest Subarea Plan Page 345