HomeMy WebLinkAboutWORK SESSION SUMMARY-07/09/2024-Work SessionUtilities
700 Wood. St.
PO Box 580, Fort Collins, CO 80522
970-212-2900
utilities@fcgov.com
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WORK SESSION MEMORANDUM
Date: July 18, 2024
To: Mayor and City Councilmembers
Through: Kelly DiMartino, City Manager
Tyler Marr, Deputy City Manager
From: Darren Parkin, Halligan Project Manager
Subject: July 9, 2024 Work Session Summary: Halligan Project Overview and Update
BOTTOM LINE
The purpose of this memo is to document the summary of discussions during the July 9, 2024
Work Session on the Halligan Water Supply Project. All Councilmembers were present and
attended in-person.
DISCUSSION SUMMARY
Staff discussed the need for the project, and its relationship with the conservation component of
our water planning. The current project status, projected timeline to completion, and overall
project costs were also reviewed. Finally, staff provided a comprehensive overview of the
Larimier County 1041 permit process.
Staff sought City Council input on the following questions:
1. What questions do Councilmembers have about the Halligan Water Supply Project?
2. What questions do Councilmembers have about the Larimer County 1041 permit
process?
Councilmembers provided feedback and comments, including the following:
Residential and commercial ratepayers will be responsible for most of the project’s cost.
At one time, growth and development fees were anticipated to fund most of the project.
Our residents deserve to know how project costs have increased over the course of the
project, and why.
It’s encouraging that Utilities will be storing water for droughts.
There are concerns about litigation and how much uncertainty there is around that.
The Halligan Project does not need to submit a Fort Collins 1041 application because
the project site is not within City boundaries.
Utilities should continue to strive to exceed environmental requirements.
Docusign Envelope ID: 5F16D86B-3814-41EC-88C0-7E1DFB097029
FOLLOW-UP ITEMS
To be addressed in a separate follow-up memo from staff:
Information on how and why project costs have escalated over time, including amounts.
Review of the 1993 Halligan Project purchase agreement from North Poudre Irrigation
Company (NPIC) and an explanation as to why NPIC is not cost sharing the project cost.
Colorado House Bill 24-1379: a description of the new state law designed to regulate
dredge and fill activities and an explanation of why the Halligan Project was excluded
from the law.
NEXT STEPS
Staff will respond to the follow-up items in a separate memo.
Other steps include continued engagement activities with the public and Larimer County.
Water Commission Halligan Project Update scheduled for Aug. 1, 2024
CC: Jill Oropeza, Interim One Water Director
Eric Potyondy, City Water Attorney
Docusign Envelope ID: 5F16D86B-3814-41EC-88C0-7E1DFB097029
Utilities
700 Wood. St.
PO Box 580, Fort Collins, CO 80522
970-212-2900
utilities@fcgov.com
Page 1 of 3
WORK SESSION MEMORANDUM
Date: July 16, 2024
To: Mayor and City Councilmembers
Through: Kelly DiMartino, City Manager
Tyler Marr, Deputy City Manager
From: Jen Dial, Water Resources Manager
Subject: July 9, 2024 Work Session Summary: Water Supply Requirements, Excess Water
Use Surcharges, and Pre-1984 Non-Residential Water Allotments
BOTTOM LINE
The purpose of this memo is to document the summary of discussions during the July 9, 2024
Work Session on Water Supply Requirements (WSR), Excess Water Use surcharges
surcharges), and pre-1984 non-residential allotments. All Councilmembers were present and
in-person.
DISCUSSION SUMMARY
Water Supply Requirements
Staff provided revised WSR fees for two methodologies:
Cost-based, 30% contingency, 20% safety factor (cost-based): $63,800/acre-foot (AF)
Market-based, 30% contingency, 20% safety factor (market-based): $110,700/AF
Staff recommended the cost-based methodology. This amounts to a fee of $63,800/AF, which is
lower than what was presented at the April 9 Work Session (this decrease was noted as a
possibility) and lower than Fort Collins Utilities’ current fee of $68,200/AF. Financial impacts for
this 6.5% decrease were presented and would cause a one-time 0.5% increase to customers
over the 40-year City Plan building horizon.
Docusign Envelope ID: 307C179B-E588-41D3-9FA7-65842F1E028E
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Assignment of Pre-1984 Non-Residential Allotments
Staff provided an update on the impacts to customers using the hybrid method to assign
allotments. Staff recommended assigning allotments based on the greater of an account’s 1989
tap credit or five-year historical use.
Discussion
Councilmembers sought clarification on aspects of the WSR fee and allotments that were
addressed as well as a request for a summary on impact and development fees over time. As
part of the April 9, 2024 Work Session, staff summarized the combined Capital Expansion Fee
CEF); Transportation Capital Expansion Fee (TCEF); Utilities Impact Fees, including WSR,
Plant Investment Fees (PIFs) and electric capacity fees; and development review and building
permit costs. That included a range of estimates for the ongoing WSR analysis. The tables
below reflect the recently updated WSR estimates and present a summary of the total fee
component of development activity costs for both a multi-unit residence and a detached,
single/duplex residence example.
2025
Actual Study Proposed
CEF 8,591$ 8,824$ 8,992$ 9,764$ 10,310$ 12,223$ 12,650$
TCEF 6,586$ 6,623$ 7,115$ 7,621$ 8,185$ 8,106$ 8,390$
Dev Review/Permits/Other 2,532$ 3,314$ 2,792$ 2,792$ 2,792$ 2,792$ 2,890$
Water PIF 4,084$ 4,192$ 4,393$ 4,807$ 5,162$ 5,081$ 5,259$
Water Supply Requirement 13,869$ 14,285$ 22,813$ 22,813$ 22,813$ 22,813$ 21,342$
Wasterwater PIF 3,590$ 3,698$ 3,824$ 4,168$ 4,476$ 4,339$ 4,491$
Stormwater PIF 1,119$ 1,153$ 1,197$ 1,305$ 1,402$ 1,397$ 1,446$
Electic Capacity Fee 2,855$ 3,025$ 3,764$ 4,391$ 4,716$ 5,041$ 5,217$
Combined Fees 43,226$ 45,114$ 54,891$ 57,662$ 59,856$ 61,792$ 61,684$
Percentage Change Baseline 4.4%21.7%5.0%3.8%7.2%7.0%
vs. 2020 vs. 2021 vs. 2022 vs. 2023
City Charged Fees: Single/Duplex Residence Example (1,890 sq. ft. floorplan)
Type 2020 2021 2022 2023 2024
Docusign Envelope ID: 307C179B-E588-41D3-9FA7-65842F1E028E
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Please note that 2024 above is presented for both actual adopted rates as well as the study
update amounts. For 2025, the rates presented reflect the 2024 study/model updates plus a
projected assumption of 3.5% for inflation during 2024.
Below illustrates a timeline of the WSR fee since 2002:
2002-2017: $6,500 per acre-foot; cost was based on Colorado-Big Thompson unit
prices.
2018: $17,300 per acre-foot; used the same hybrid method proposed in April and July
2024 but used a market-based costing for both the buy-in and incremental components.
2020: $21,500 per acre-foot; used the hybrid method with updated Halligan Project costs
and future water rights costs.
2021: $22,145 per acre-foot; added a 3% inflationary increase.
2022: $68,200 per acre-foot; continued to use the hybrid method but used different
model assumptions including a 1) higher firm yield, 2) applied 20% safety factor which
wasn’t included in 2018-2021 WSR fees, and 3) increased contingency from 25% to
30%
NEXT STEPS
Staff will bring an ordinance for first reading for the implementation of a hybrid, cost-based
method for calculating the WSR fee and assigning allotments using the hybrid method on
October 15, 2024.
CC: Jill Oropeza, Interim One Water Director
Docusign Envelope ID: 307C179B-E588-41D3-9FA7-65842F1E028E
Transfort/Dial-A-Ride
250 North Mason Street
PO Box 580, Fort Collins, CO 80522
970-221-6620
WORK SESSION MEMORANDUM
Date: July 24, 2023
To: Mayor and City Councilmembers
Through: Kelly DiMartino, City Manager
Tyler Marr, Deputy City Manager
Caryn Champine, Director, Planning, Development and Transportation
From: Kaley Zeisel, Director, Transfort
Subject: July 9, 2024 Work Session Summary: West Elizabeth Enhanced Travel Corridor
BOTTOM LINE
The purpose of this memo is to document the summary of discussions during the July 9, 2024
Work Session. All Councilmembers were present.
DISCUSSION SUMMARY
Transfort and PDT staff provided an update to Council regarding the status of the West
Elizabeth Enhanced Travel Corridor (ETC). Council adopted the initial West Elizabeth ETC plan
in 2016 with recommendations to overhaul the corridor to a multimodal corridor with Bus Rapid
Transit (BRT) service. This project is expected to yield positive outcomes for the Fort Collins
community including: increased safety, improved transit service, ADA compliant pedestrian
facilities and protected cycling facilities. Transfort and Engineering have now completed 60%
design and anticipate completing engineering design by the end of 2025. The current capital
project cost is estimated at approximately $113.7M, annual operating costs are estimated at
approximately $5M per year, a net increase of $2M annually to operate service in this corridor.
Transfort submitted a project rating request to the Federal Transit Administration (FTA) in 2023
for consideration of Federal Fiscal Year (FY) 2025 funding, with a request for CIG funding in the
amount of 65% of the total project cost. In order to be recommended for funding, projects must
receive at least a Medium overall rating from FTA. The West Elizabeth project was rated at
Medium-Low. Transfort has debriefed with FTA regarding ways in which to improve the project
application. Ridership has seen significant increases since the previous submittal, which is
expected to have a positive impact on Transfort’s score. Transfort is also evaluating other
criteria for improvement, such as total federal share requested, and Land Use and Economic
Development factors.
The western terminus of the project will be a new transit station on the corner of West Elizabeth
and Overland Trail, with the current intersection converted to a roundabout for ease of use and
to facilitate the ability for 60FT articulated buses to turn around. This portion of the project has
been awarded funding through FTA’s FY23 Rebuilding America with Sustainability and Equity
RAISE).
Docusign Envelope ID: 163E327B-6D17-4C63-956A-349E3D6029E4
Transfort plans to resubmit the project to FTA for a project rating in August 2024 to be
considered for FY2026 funding.
NEXT STEPS
Transfort will execute FY23 RAISE funding independent of the CIG Small Starts project to begin
construction on the Foothills Transit Station prior to securing a CIG award to implement the full
West Elizabeth Corridor project.
Transfort will submit the West Elizabeth Enhanced Travel Corridor Project to FTA in August
2024 for consideration of a project rating for CIG Small Starts funding.
FOLLOW-UP ITEMS
1. With the implementation of the West Elizabeth Enhanced Travel Corridor, will there be
greenhouse gas emission reductions?
The following emissions information was calculated by Felsburg Holt & Ullevig (FHU) based on
guidance from the Federal Transit Administration (FTA) for calculating the environmental
benefits for CIG Small Starts projects. Emissions changes are calculated based on projected
changes in automobile and transit vehicle miles traveled (VMT) after the BRT service has been
implemented. FTA utilizes conversion factors of kg/VMT for every combination of vehicle type
and emissions type, and in some cases (like for particulate matter, shown below), the
conversion factor for electric buses is higher than for automobiles. There are expected to be
reductions of greenhouse gas emissions and reductions to emissions of other air quality
pollutants, including Carbon Monoxide (CO) and Volatile Organic Compounds (VOC). These
figures are calculated for the horizon year (Year 20) of the project, these are not aggregate
calculations. Two air pollutants, Mono-Nitrogen Oxides (NOx) and Particulate Matter (PM2)
emissions, are expected to increase based on the formulas provided by FTA, see chart below.
Based on feedback from Sustainability, we believe these numbers are conservative estimates.
FTA’s template and calculations are grounded in national benchmarks and do not take into
consideration local initiatives. For example, Platte River Power Authority’s plan to increase the
mix of renewable energy by 2030 would lead to greater reductions in emissions.
Emission Type Horizon Year Reduction or (Increase)
Carbon Monoxide (CO) 7,136.09 kg
Mono-Nitrogen Oxides (NOx) (377.26) kg
Volatile Organic Compounds (VOCs) 157.63 kg
Particulate Matter (PM2.5) (38.19) kg
Greenhouse Gases (CO2 equivalent) 217.27 tons
Docusign Envelope ID: 163E327B-6D17-4C63-956A-349E3D6029E4
2. Are there currently any planned bike connections along Overland that will connect with
the future Foothills Transit Center?
The Active Modes Plan recommends separated bike lanes on Overland Trail as a medium
priority/readiness project. The City will explore this project further through the upcoming NW
Fort Collins Arterial Bikeway Feasibility Study, which we received Safe Streets and Roads for all
funding for. The study area includes Overland Trail from Laporte Ave. to Horsetooth Road.
Aside from this funding for safety studies and conceptual planning, we don’t currently have
funding identified for separated bike lanes on Overland Trail.
3. What is the breakout of the costs related to design and construction management?
Staff received an updated 60% design cost estimate from FHU on July 11, 2024, after the July
9, 2024 work session. The chart below outlines the updated Professional Services Category
with detailed breakdowns of each line item.
Overall, the 60% design estimate increased by approximately $1M, the most notable differences
were an increase in estimated design costs to achieve final design, and an increase in the
amount estimated for Start Up/Commissioning Costs and Art in Public Places. Updated cost
estimates will be completed with each subsequent design milestone (80% and final).
Professional Services
30% Design
Estimate 60% Design Estimate Difference
Final Design to 30% $ 1,500,000 $ 1,500,000 $ -
Final Design to 100% $ 4,010,000 $ 4,713,140 $ 703,140
Construction Administration &
Management $ 3,256,000 $ 3,197,250 $ (58,750)
Legal, Permits, Review fees, etc. $ 939,000 $ 959,175 $ 20,175
Surveys, Testing, Investigation,
Inspection $ 1,371,000 $ 1,400,175 $ 29,175
FTA Required Start Up and
Commissioning & Art in Public
Places $ 1,100,000 $ 1,366,003 $ 266,003
ROW Real Estate Administrative
Services $ 1,920,000 $ 2,000,000 $ 80,000
14,096,000 $ 15,135,743 $ 1,039,743
4. What are the options for remaining estimated $32M in local match?
The City is exploring multiple options for the remaining local match that will be required to meet
the grant requirements. The amount of 2050 Transit Sales Tax that will be needed for capital
and operating will vary depending on how much local match is able to be secured from other
sources.
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Currently, approximately $4 million of the Transit Sales Tax is available annually. Without
additional local funds from other sources, the West Elizabeth ETC project will take
approximately 100% of the remaining Transit Sales Tax Funds over the next 8-9 years for one-
time capital investment. Once operational, the ongoing need is estimated at approximately $2
million annually, or 50% of the remaining 2050 Transit Sales Tax. Actual amounts are
dependent on full design and operational details that are still being assessed, as well as inflation
that is variable depending on construction and service start timeline. This scenario assumes no
additional capital or ongoing items are assigned to the Transit Sales Tax funding source.
The City aims to offset the full local match amount with the following options:
CSU Contribution:
CSU has already contributed approximately $1M in local match toward design for the West
Elizabeth ETC project, Transfort is also aiming to substantially offset the approximately $32
million in capital investment and/or the approximate $2 million in annual operating through a
partnership agreement with CSU.
Without substantial contribution from CSU, the City will need to determine how to proceed, and
whether or not the City wants to consider scaled versions of the project.
Land match:
City staff is exploring the eligibility for other land match opportunities, including land owned by
CSU along the planned BRT route and existing City land including at the Transfort Maintenance
Facility (TMF).
State Opportunities:
Clean Transit Enterprise (CTE) funding: 2024 was the first year of funding for this program,
funds can be used to purchase low or no emission vehicles, chargers, and to purchase and
install electrical infrastructure to facilitate vehicle charging. In the first year of funding there was
approximately $15M available for transit agencies throughout the state, and funds are being
distributed through a discretionary process.
SB24-230: This funding source will be collected from fees of oil and gas producers beginning
July 1, 2025, and will be used to fund transit projects. 70% of available funding will be used to
expand local transit service, most likely using a formula allocation, and 10% of funding will be
used toward a local transit grant program cash fund. The exact method in which these funds will
be distributed to transit agencies has not yet been determined.
Multimodal Options Fund (MMOF):
Funds are typically available at a 50/50 match rate and can be used toward capital or operating.
For fiscal year 2026, there will be $1.3 million for the North Front Range.
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Other Federal Grant Funding Sources:
Can be used to reduce the request for CIG funding, though still require 20% local match)
o 5339b Bus and Bus Facilities Program
o 5339c Low or No Emissions Program
o Rebuilding America’s Infrastructure with Sustainability and Equity (RAISE)
o Safe Streets for All (SS4A)
o Transportation Alternatives Program (TAP)
o Congestion Mitigation and Air Quality (CMAQ)
Other Opportunities:
City staff is exploring with its federal partners options for low interest rate federal lending
programs.
Docusign Envelope ID: 163E327B-6D17-4C63-956A-349E3D6029E4