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HomeMy WebLinkAboutMinutes - Finance Committee - 03/06/2025 - Finance Administration 215 N. Mason nd Floor Fort Collins, CO 80522 970.221.6788 970.221.6782 - fax fcgov.com Council Finance Committee Hybrid Meeting CIC Room / Teams March 6, 2025 4:00 - 6:00 pm Council Attendees: Mayor Arndt, Kelly Ohlson, Tricia Canonico Staff: Kelly DiMartino, Tyler Marr, Gretchen Stanford, Carrie Daggett, Dianne Criswell, Denzel Maxwell, Teresa Roche, Chris Martinez, Terri Runyan, Kevin Wilkins, Ginny Sawyer, Max Valade, Tracy Ochsner, Brian Hergott, Sylvia Tatman-Burruss, Joe Wimmer, Drew Brooks, Meaghan Overton, Kaley Zeisel, Mallory Gallegos, Peggy Streeter, David Wolfe, Dana Hornkohl, Josh Birks, Andy Smith, Dean Klingner, Leeann William, Aaron Harris, Jill Wuertz. Victoria Shaw, Wes Collins, Kristin Flower, Matt Fater, Heather McDowell, Jennifer Poznanovic, Randy Bailey, Trevor Nash, Adam Halvorson, Renee Reeves, Lawrence Pollack, Claire Turney, Jo Cech, Carolyn Koontz Other: Kim Medina, Chamber Meeting called to order at 4:00 pm Approval of minutes from the February 6, 2025, Council Finance Committee meeting. Motion made to approve by Kelly Ohlson and seconded by Tricia Canonico. Approved via roll call. A. Capital Tax Renewal: Affordable Housing Revolving Loan Fund Sylvia Tatman-Burruss, Project Manager Joe Wimmer, Financial Analyst SUBJECT FOR DISCUSSION Revolving Loan Fund - Capital Improvement Quarter-Cent Tax Renewal EXECUTIVE SUMMARY The purpose of this item is to update the Council Finance Committee (CFC) on considerations to increase affordable housing resources and changes to the management and use of those funds. This strategy is being considered within the Capital Improvement Quarter Cent Tax Renewal package. This renewal is targeting the November 2025 election. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. What questions/suggestions do committee members have regarding the proposed options for the affordable housing funding within the tax renewal package? BACKGROUND/DISCUSSION The current Community Capital Improvement Program (CCIP) tax will expire on December 31, 2025. Staff is currently working to create a package to offer voters as a renewal in November 2025 for a tax that would run from January 1, 2026, to December 31, 2035. Current Housing Package and Program - The current CCIP packages includes $4 million for the Affordable Housing Capital Fund over 10 years. That fund has traditionally been used as “last in” gap financing for projects that are otherwise fully funded. Uses include direct subsidy and fee credits. - Those funds are utilized as grant funding and those funds are not returned. - Those funds have been very useful for filling gaps and such funding resources are limited. Summary of projects funded utilizing the fund since 2017: • From 2017 through 2021, 4 projects have been funded. • Projects funded have served residents at income levels of 30% - 80% of Area Median Income (AMI). • Total usage of the fund has been just over $1.8 million across 4 projects since 2017 either as direct subsidy or as fee relief. Proposed Program Changes Staff have been exploring the use of funds as a revolving loan fund (RLF). This would allow the City to bond against $10 million of sales tax revenue and utilize those funds as low-interest loans to affordable housing projects. The total expected amount of the bond issuance would be about $7.5 million. The sales tax revenue would pay the debt service on the bond over the life of the ten-year sales tax. The full amount of the funds could be utilized within the first year of issuance, 2026. Program Considerations Staff is seeking to utilize CCIP funds more effectively to achieve Council’s adopted priority to “operationalize City resources to build and preserve affordable housing.” In exploring options for a RLF, staff began with several assumptions: - The primary goal of the RLF is to accelerate the pipeline of affordable housing development - The RLF should provide below-market terms to maximize benefit to housing developments - The RLF should be flexible to adapt to changing market conditions - The RLF should revolve, allowing funds to serve multiple developments over time Staff has worked with housing partners and housing finance experts to analyze the potential benefits of two primary uses of RLF funds: 1. Short-term construction financing – loans covering the construction period of a development (roughly 24-36 months). 2. Long-term project financing – loans used as an equity source in a development for the life of a tax credit partnership (15-18 years). Both types of financing have benefits and drawbacks. Short-term financing saves on construction interest, and the funds can revolve more quickly if the loan terms are only 2-3 years. However, staff have learned that long-term project financing provides the most benefit to potential affordable housing developments. If the primary goal of the RLF is to accelerate the pipeline of affordable housing development, using most of the fund for long-term financing will create more new units more quickly. Using a hypothetical example of a 75-unit affordable tax-credit development, staff found that using RLF funds for construction saves the project money on interest during the construction period. This is helpful, but not sufficient to make a project possible. In this case, the hypothetical project still had a long-term financing gap of more than $4 million. Using the potential RLF funds for long-term financing on the same hypothetical project resulted in a project with no financing gap because the low-interest funds were able to stay in the project over time. Because there are benefits to both types of financing, staff has proposed a structure for the RLF that would allocate about 2/3 of the fund to a long-term investment, with the remaining 1/3 available for shorter-term needs. Hybrid Model: Long- and short-term investment, lower annual payments to City $5M into one project as longer-term investment • Interest rate: if 1% • Annual payment to City: $50,000 interest-only • Loan term: 16 years $2.5M reserved for shorter-term investments (2-3 years) • Interest rate: Varies, if 1-3% • Annual payment to City: Varies, $25k - $75k • Loan term: 3 years or less Pros: Accelerates housing pipeline; creates new gap source of funding; replicable; balances long- and short-term needs Cons: Majority of fund revolves slowly; potential for smaller total interest payments to City; need shovel- ready projects for $2.5M portion of fund Loan interest paid to the City could have flexible options of application. Interest payments could grow the amount of the revolving loan fund over time or contribute to lowering annual debt service payments of the bond. Alternatively, interest could be used in the traditional use of the Affordable Housing Capital Fund – collecting in the fund to be used as fee credits or direct subsidy to developments. DISCUSSION / NEXT STEPS GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED What questions/suggestions do committee members have regarding the proposed options for the affordable housing funding within the tax renewal package? Tricia Canonico; so, they are only paying the interest back – is that still revolving in some way? Joe Wimmer; the whole loan gets paid back when they refinance – for short term that would be 5 years and for long term 10 years but annually they would have interest payments to the city. Kelly Ohlson; we have only spent $1.8M of the $4M for affordable housing over a ten-year period. What is up with that as this is a Council Priority? Joe Wimmer; there is a current balance of $1.6M. Our developers and partners are going through our competitor process. This is used as the last in gap filler if needed and I don’t think the demand has been there yet to need that. This year that is $84M requests over what we might have available. Kelly Ohlson; from page 25 of the packet - total usage just over $1.8M leaving $2.2M Joe Wimmer; we took a piece of the capital tax funds for our fee relief program during the budget cycle Sylvia Tatman-Burriss; it can be nice to have a larger balance in the fund – nice to build it up a bit – so there are chunks to allocate Kelly Ohlson; Math to get to the $10M - I thought $5M was going into the longer term with $2.5M going into the shorter term and I know you said there is a $1M that goes along with the bonding aspect. Joe Wimmer; $1M per year over 10 years – paying interest on the bond - Kelly Ohlson; so that gives us $7.5M to work with and $2.5M in soft costs. I am glad we are doing the $10M. I am good unless I hear differently from other committee members. Good to know that you feel strongly about your recommendation. Joe Wimmer; we have talked with the housing community, especially Housing Catalyst and Housing Authority that this would be beneficial. Tricia Canonico; I also wasn’t clear that the $2.5M is for the bonding. I would say expand on that more when you bring this to the full Council as well as the definition of a micro loan site. I think this is great. Mayor Arndt; what if the sales tax goes down? Joe Wimmer; we would be locked into the debt service payments on it. We would initially look at other projects in the package having to scale to make up for that. The interest stays steady. Mayor Arndt; have we done anything to the best of our ability in the city to reduce the time to approving these things? Sylvia Tatman-Burriss; the Development Review Team is working on the approvals at the beginning of a project. Affordable Housing would go through our basic 90-day decision process. Mayor Arndt; and we have a shot clock on that? Sylvia Tatman-Burriss; yes, so that would be at the beginning. The reason why that long term goes to the 15 years is because that it is part of a tax credit allocation. That is just the amount of time a tax credit project takes. Mayor Arndt; Lot of money tied up in review process - very expensive for developers Tyler Marr; this is a work in progress. We will have more to share at the March 25th Work Session on Housing - specifically around the Prop 123 Funding that we using to study how to get this to the 90-day mark that Sylvia mentioned. We think that will have lessons for all of Development Review. Mayor Arndt; you said the long-term loans are very impactful – with the hybrid, are we going to end up with it neither here nor there? Sylvia Tatman-Burruss; we have talked with several of our housing partners in terms of those loan amounts and they are seeing that across the board as fine. It is not necessarily that if you increase the long-term amount that you would get one net new project. That split seems to work now, but there could be flexibility there. This is from our proposal for these types of tools. We aren’t necessarily locked into this piece. If we moved forward with the bond, we would be locked in there but not in terms of the combination. Mayor Arndt; Housing Catalyst is a great partner. I join with Kelly in saying, this is important. We need to move on this! Let’s get the money out the door. Incumbent on staff to make this happen. Let’s serve the people - we shouldn’t be putting up roadblocks. B. Capital Tax Renewal Updates Ginny Sawyer, Project Manager Dean Klingner, Community Services Director Joe Wimmer, Financial Analyst SUBJECT FOR DISCUSSION Capital Improvement Quarter-Cent Tax Renewal EXECUTIVE SUMMARY The purpose of this item is to update the Council Finance Committee (CFC) on continued development in building a package of projects for the capital tax renewal. This renewal is targeting the November 2025 election. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1.What questions/suggestions do committee members have regarding the current projects and/or timeline? 2. Are there projects Councilmembers recommend removing, scaling, or adding? BACKGROUND/DISCUSSION The current Community Capital Improvement Program (CCIP) tax will expire on December 31, 2025. Staff is currently working to create a package to offer voters as a renewal in November 2025 for a tax that would run from January 1, 2026, to December 31, 2035. Key attributes of this renewal include the long history of utilizing this tax for community good, a renewal does not increase taxes, and this tax and other dedicated taxes are not applied to grocery purchases. Staff was last at Council Finance in October 2024 and presented to the full Council in November 2024. Future Council touchpoints include: - May 27, 2025, work session - July 8, 2025, work session - July 15 or August 19, 2025, ballot referral (to be scheduled) Potential Projects Since mid-2024, staff has been creating, culling, and refining a potential project list. Projects are generated through existing masterplans, known items of community interest, and consideration of Council priorities. Project consideration and rationale have included: - Looking at historical funding and ability to leverage dollars. This is especially true in the transportation area as dedicated revenue helps create local match dollars for grant programs. - Looking at current unpredictability in inflation and grant availability, efforts have been made to balance a level of flexibility and a degree of certainty for project outcomes. Examples of this include combining some of the fund buckets around outcomes (i.e. Bicycle Infrastructure and Overpass/Underpass Program) to allow for opportunity-based project selection. - Looking for opportunities to respond to community feedback for both amenities and improvements. Examples here include pickleball courts, trail development, and investments at Lee Martinez Farm. - Looking to advance Council priorities and community values including affordable housing, climate goals, and environmental enhancements. The current project, list at requested funding amounts, is approximately $152M. Tax revenue from 2026-2035 is estimated at $110M. Staff will continue to work with Council and conduct public outreach to help inform both scaling of projects and removal of projects. Greater detail on all projects is attached as is a draft balanced package. DISCUSSION / NEXT STEPS Pie chart – is all $152M of projects Packet has a balanced fund of all the projects we could fund to match the revenue If we were able to fund all projects that were proposed Kelly DiMartino; the charts you focused on are the right ones. We could have labeled this; ‘The Asks that were it the mix originally’ versus what is in the package at this time. Ginny Sawyer; this is where we started – the other is a little irrelevant to our decision set Kelly Ohlson; we are the dress rehearsal Kelly Ohlson; what is the area north of Legacy Park (see map above) Dean Klingner; I think that is private property. Kelly Ohlson; if it was ever for sale, you could win on every level. You could add more park space while protecting natural areas corridor. Dean Klingner; outcomes we try to achieve Natural Aeras – does it make sense to swap land between Natural areas and Parks Analysis would say the habitat value of this park area is higher than piece Kelly Ohlson; they would be in a park that is right next to a natural area. People would still have access there. Where is the new shelter located? Tyler Marr; the new shelter is north of Hickory on map you can see the southern part of it Ginny Sawyer; the above is a first draft of how we get this within the dollar amounts. Everything is scalable, changeable and we will continue to refine. August 19th is the date to refer to the ballot. Mayor Arndt; I appreciate how everyone has to plan at the city. I would probably approve any plan. Are we going to see alternatives and projections? Council might want to see another column – contingencies – what happens if sales tax declines. Empty office space and retail – the forces that are happening that are out of our control. There will be questions around this. What part of these are reliant on federal funds? How do we get information on that. Sales tax projections Ginny Sawyer; I am betting a lot of those transportation buckets. This is a piece of a funding package that includes federal dollars. Built in benefits. We can do less in those funds if we don’t get that money. Kelly DiMartino; some of it might be a pacing question. The trade-off of a little more flexibility gives us the ability to be more adaptive. The pace of things like trail construction may change based on funding. The value and commitment are still there, and we will pursue as the funds are available. Mayor Arndt; that is what the voters would like to see Tyler Marr; sales tax could hit our growth projections – the historic leveraging – the pacing is going to change anyway Mayor Arndt; we need to talk about those things with the full Council. Kelly Ohlson; maybe we need to work with Legal to have different language than we have had in the past. What could happen - we need to be careful – I think we can address it in the ballot language to be more nimble. We don’t want the big-ticket items to be eliminated. I think the team has done incredible work led by Ginny and that we are close. Some of the money I would quibble with here and there – we need the contingency language. The package itself has come a long way – still many details to iron out but I think we will get there. Tricia Canonica; ballot language is my biggest concern. How do we write enough flexibility in that so we can achieve what we need to achieve. Do we have any idea of what we are thinking for dollar amounts? Ginny Sawyer; the ballot language calls out the amount for every project. We try to be conservative. Typically, a reserve account. Joe Wimmer; we budgeted $84M and it ended up $94M Kelly Ohlson; why can’t we use qualifying words like approximately or dependent on available funds? I think it would be great if we did not have to use a set number unless it if required by TABOR Ginny Sawyer; let’s have the conversation and we will include this in the May 27th materials. Kelly Ohlson; maybe there is an answer about needing to use a specific amount. If so, we may know that today. Dianne Criswell; for the first year of collection, an estimate is required in the ballot measure language. I could research and come back on whether or not there is any case law or other interpretations about the amounts. I will look into TABOR. Kelly Ohlson; is there a way to be approximate? Can we say estimated instead of locking in on hard and fast numbers? I am not sure we are comfortable with that. Mayor Arndt; can we say estimate? Kelly DiMartino; I don’t know if we can fully answer that today. This is super helpful feedback to know what you are trying to provide or prevent. We can do some research and come up with specific options. Tricia Canonico; we have rejected this before when we talked about CCIP. A prioritization with this lack of certainty we now have, and that people are voting based on a specific project they are in favor of. For example, if we didn’t have adequate funding for the pickleball complex – we have people voting specifically for that. Ginny Sawyer; let us work on the language. I imagine it will be the slowing of things, like should revenue not meet expectations projects may be slowed and limited. Kelly Ohlson; historically, we have listed the projects but not the timing. Mayor Arndt; nice to think about it but I think about, but it ties you down too much Ginny Sawyer; one thing we have done in the past, should this pass in November we would come back to Council probably looking at the ten years in thirds. Saying here is what we are looking at - trying to keep those funds even over time instead of front loading or back loading. Mayor Arndt; unless there is one huge one Kelly Ohlson; the timing - does a month or six weeks make any difference? I just don’t think with a tweak here or there that this is going to be a difficult thing for Council to resolve. It is close enough – a very solid package that I will have no trouble defending. The earlier we can bring it the better. It could be a weird election cycle, but I am confident it will pass. I think we need to be as clear as possible – the pie chart question You put Parks in the Environmental bucket. Parks should go into the Parks & Recreation - so the percentages are accurate. If it is 50/50 or 60/40. Dean Klingner; some split makes a lot of sense Kelly Ohlson; just as accurate and fair and full disclosure as we can get. A pool alone is $50M - Mulberry Pool replacement? Dean Klingner; as we talked about in the SE Community Center discussions, there is a very significant impact due to inflation on pricing / construction. We don’t have a site or design. There are a lot of questions in there. It could be lower – just not sure. Kelly Ohlson; we have come a long way – just looking at refinements at this point. Mayor Arndt; thank you very much - it is tough to plan right now. C. Annual Reappropriation Lawrence Pollack, Budget Director SUBJECT FOR DISCUSSION Review of the 2025 Reappropriation Ordinance to appropriate prior year reserves. EXECUTIVE SUMMARY The purpose of this item is to reappropriate monies in 2025 that were previously authorized by City Council for expenditures in 2024 for various purposes. The authorized expenditures were not spent or could not be encumbered in 2024 because: • There was not sufficient time to complete bidding in 2024 and therefore, there was no known vendor or binding contract as required to expend or encumber the monies; or • The project for which the dollars were originally appropriated by Council could not be completed during 2024 and reappropriation of those dollars is necessary for completion of the project in 2025. Additionally, there may have been sufficient unspent dollars previously appropriated in 2024 to carry on programs, services, and facility improvements in 2025 for those specific purposes. In the above circumstances, the unexpended and/or unencumbered monies lapsed into individual fund balances at the end of 2024 and reflect no change in Council policies. Monies reappropriated for each City fund by this Ordinance are as follows: Total $5,572,540 GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED Does the Council Finance Committee support moving forward with the 2025 Reappropriation Ordinance on the Consent Agenda at the March 18, 2025, Council meeting? BACKGROUND/DISCUSSION The Executive Team has reviewed the Reappropriation requests to ensure alignment with organization priorities and the Budget staff reviewed the requests to verify that all met qualification requirements. The 2025 Reappropriation requests are as follows, by fund: GENERAL FUND City Clerk’s Office 1) Ranked Choice Voting preparation - $67,978 Purpose for funds: At the November 2022 election, voters approved ranked choice voting. Starting in 2025, the City of Fort Collins must use ranked voting methods to fill Mayor and District Councilmember seats for coordinated and/or City-run elections when there are three or more candidates. The City is required to provide the instructions, training, procedures and services required to educate the community and implement this new way of voting in collaboration with the County and others. Due to the increased cost of ranked voting that the City is responsible for, the election itself will likely exceed the budgeted amount for FY25. A portion of the reappropriated funds will be used for this purpose. Additionally, the City Clerk's Office is obligated to educate the public on this new style of voting, and the remaining reappropriated funds will be used on marketing and outreach to the community. This includes mailings, newspaper, social media and other advertising, event costs, necessary informational materials/video, mock election materials, and other supplies for effectively communicating this initiative to the public. While the City Clerk's Office is looking for creative ways to partner with other organizations and community groups, a large cost for planned outreach efforts is expected. Reason funds not expensed in 2024: The City Clerk's Office has been in a state of transition over the last year, running under adequate staffing levels and bringing on new team members. While ranked voting was identified as a major priority, planning for outreach and coordination efforts in the first half of 2024 was not feasible. This was due, in part, to the efforts required to get Charter amendments and other ballot questions approved and then working with the County on a coordinated 2024 election. Planning discussions and staff education related to ranked voting began in the fall of 2024, but many of the necessary items could not be purchased or encumbered so far from the 2025 election date as related materials and other items had yet to be developed. This work is currently underway. Staff is working with the County, CSU, PSD and the League of Women Voters to find ways to collaborate on these efforts and share some costs. However, we expect there will continue to be a significant cost for the City related to ranked voting efforts to ensure we effectively get the word out and help train voters. Reappropriating these funds will contribute significantly to our communication and outreach strategies. Economic Health Office 2) Construction Impact Grants - $74,500 Purpose for funds: These funds are meant as small grants to local businesses that have been impacted by City Construction. Road construction can limit access, interrupt operations, and reduce customer traffic. These grants are meant to help mitigate those issues by providing resources to help with marketing, communication, signage, etc. Reason funds not expensed in 2024: The funds were not fully expended in 2024 based on unanticipated major project timing shifts. The request for reappropriation is due to the confluence of two major capital project schedule changes: College and Trilby construction has been delayed, as well as Harmony Underpass schedule prioritization (happening sooner). Police Services 3) K9 Donation - $8,505 Purpose for funds: $10,000 was given by a citizen for the purpose of supporting the K9 unit for any purpose. This has not yet been purchased and should be reappropriated according to the intent of the gift. Reason funds not expensed in 2024: The reason that the funds weren't spent was because at the time all of the needs of K9 had been met with a portion of the gift and its existing budget. The team has plans for this money in 2025 and the remaining balance will be spent. 4) Leadership Summit Donation - $90,797 Purpose for funds: This reappropriation is for the remaining amount of the funds that were donated for the Police Leadership Summit that was held last year. It will be held again in 2025 and paid for by the remaining donated funds. Reason funds not expensed in 2024: The funds were originally donated by Angel Armor for rifle plates and then permission was given to repurpose the funds to pay for the Leadership Summit. In the interim other doners such as the Daniel's Fund donated more money which exceed the needed amount. Police will keep using the funds for their intended purpose to fund this event. Social Sustainability 5) 24/7 Homeless Shelter Contribution - $1,000,000 Purpose for funds: The City of Fort Collins recognizes the need for the construction of a new 24/7 shelter and seeks to provide $1 million in local funds to Fort Collins Rescue Mission for construction of the shelter, which will serve men experiencing homelessness in the community. The new shelter will eliminate the need for winter overflow shelters and serve as a hub for community partners to collaboratively serve clients, including access to health services, job training, mental health support, and other critical resources. These funds are intended to support a portion of capital expenses related to construction of the shelter, which will be released to Fort Collins Rescue Mission only after they receive both full funding and building permits. Reason funds not expensed in 2024: Funds were not expended in 2024 because the development entitlement process was prolonged due to appeals. Fundraising is going well, and the Rescue Mission believes they will start work on site in Spring of 2025. SSD staff is working with the Rescue Mission on a contract for this $1M investment. Funding will not be made available until permits are pulled for the project to start construction. City Manager’s Office 6) Digital Accessibility - $71,760 Purpose for funds: We are working on phase two of the Digital Accessibility work. We have a scope of work to audit digital platforms for each service area as well as digital documents, DocuSign templates, municipal code, Laserfiche, and Get FoCo. This work is needed to meet basic state compliance requirements. Reason funds not expensed in 2024: The funds for this project were not expended in 2024 due to phase 1 of the Digital Accessibility audit taking longer than expected. This reappropriation will enable completion of this work in 2025. City Attorney’s Office 7) CAO Charter Review - $12,500 Purpose for funds: Work was initiated in July 2024 on the City Council priority to update and modernize the City Charter. Outside special counsel was hired to assist with this work and $25,000 was appropriated to support it. After work sessions in December 2024 and January 2025, work is underway to prepare ordinances that would put Charter amendments on the November ballot, to be presented to Council on April 1. Reappropriating these funds would make them available to support the completion of the work they were intended to fund. Reason funds not expensed in 2024: The amount appropriated in summer 2024 provided the total amount of funds needed for the Charter Update work. However, the timing of the project work has been split between 2024 and 2025. As a result, roughly half of the funds were expended in 2024, and the remaining funds are needed to complete the work as scheduled. 8) Red Light Camera Radar (RLCR) Traffic Initiative - $146,179 Purpose for funds: The City Attorney's Office prosecution team continues to move forward with implementation of the new Automated Vehicle Identification System traffic enforcement program (red light/camera radar). Preparing for and bringing on new staffing, training and development of procedural updates have been underway and cases from fixed cameras and in-person enforcement have continued to increase and are likely to continue to increase. These funds would be used to provide needed support for the prosecution team working on these issues in 2025, particularly as additional freestanding units, which have not yet been deployed, come online. Funds for already filled ongoing positions were funded in the 2025 budget for only April through December and these funds will help cover the resulting shortfall. Reason funds not expensed in 2024: The rollout of the updated red light/camera program was delayed until late in 2024, as was staffing and onboarding of the prosecution team support. Some aspects of the program, including the new freestanding units, have not yet been implemented. These delays slowed the influx of cases, and the program will continue to grow significantly well into 2025. (The delays will also likely push into 2026, temporary expenses that were originally expected in 2024-25.) Municipal Court 9) Case Management System (Tyler Tech) - $227,912 Purpose for funds: 2024 BFO Offer 68.8 funded a new court case management system for the Municipal Court. This offer was strongly supported by the City Attorney's office and the City's Information Technology department. The use of technology within the judicial world is critical to the functionality and efficiency of a court. After an extensive RFP process, a vendor was awarded this contract in Q2 of 2024. In July of 2024, this technology implementation project started. These funds will be used to support the project by funding a temporary employee serving as a co- project manager supporting the Court Administrator and to fund the contractual obligations associated with this project. Reason funds not expensed in 2024: This project is an extensive year-long implementation project which merges several different systems into one updated case management system. Funding is disbursed throughout the implementation as contractual obligations and project milestones are completed by the vendor. The project started in July and is on schedule. Because of the complexity of the project, only a couple of project payment points/invoices were reached in 2024. The remaining payment/invoicing deadlines should be completed in 2025. Operation Services 10) Edora Pool and Ice Center Hot Water System - $85,000 Purpose for funds: These funds identified in Offer 15.14 Aging Facilities Maintenance were targeted to replace the hot water piping to the locker rooms at the Edora Pool and Ice Center (EPIC). During higher hot water demands in the locker rooms, the system fails to deliver hot water leaving patrons experiencing cold showers. This reappropriation request would use the funds to redesign the hot water system to resolve this ongoing issue for EPIC customers. Reason funds not expensed in 2024: In December of 2023, temperature issues with the domestic hot water system at Edora Pool and Ice Center were apparent. Numerous complaints were received from patrons regarding the low water temperature in the showers. Several attempts to resolve this problem with the current system were unsuccessful. In early 2024, the City partnered with a mechanical consulting engineer to redesign the piping for this part of the hot water system. This involved mapping the existing system, as well as providing construction documents and an estimate for the needed repairs. Due to the length of time for this redesign process and availability of vendors to perform the work, this project was unable to start in 2024 as originally scheduled. 11) Replace Northside Atzlan Methane Detection System - $45,000 Purpose for funds: These funds identified in Offer 15.14 Aging Facilities Maintenance will replace an end-of-life methane detection system at the Northside Atzlan Community Center. This system is required by the State of Colorado to monitor the methane mitigation system that is integral to that facility. Reason funds not expensed in 2024: This system is original to the 2007 construction of the building making the replacement of components a challenge. In July of 2024 the City partnered with a contractor for repairs to the Northside Aztlan Methane detection system. After several attempts to resolve this problem using the existing system were unsuccessful, it was determined a full replacement would be in the city's best interest. In December 2024, the city requested a proposal for the design and installation of a new system. Due to the length of time for this process, permitting, and availability of vendors, this project should be completed by mid-2025. Parks 12) Pickleball Donation - $11,513 Purpose for funds: Funding for a feasibility study for a future City-owned pickleball complex was appropriated in 2024 for Park Planning and Development staff to conduct an initial public engagement process and feasibility study. To date, staff have conducted 2 stakeholder meetings, one open house, and developed conceptual designs for two potential locations on community park properties. The Fort Collins Pickleball Club awarded $40,000 to the Park Planning & Development division (PPD) for this designated purpose. Past philanthropic partnerships by City Give have included The Hand That Feeds, Veterans Plaza of NoCo, a refresh of Eastside Park, and the 9-11 Memorial at Spring Park. Reason funds not expensed in 2024: Not all funds were expensed in 2024 as the results of a noise impact study by an acoustic engineering firm were not available until Q1 2025. Continued outreach and communication with the donor group (Fort Collins Pickleball Club) will be completed to finalize the City's commitments per the gift agreement. 2050 TAX FUND – CLIMATE OCF Natural Areas 13) Poudre River Health Assessment - $53,424 Purpose for funds: This offer funds the Poudre River Health Assessment project, a sampling project that evaluates the health of the Cache la Poudre River from Gateway Natural Area to I-25 using a suite of biological, chemical, and physical indicators. The project builds on a previous effort completed by the City in 2017 and is a critical baseline for informing potential large-scale water projects. The funding for this offer covers that cost of sampling, analysis, and public outreach. The majority of the funds ($246,473) are allocated in an existing PO with ICON Engineering for the sampling effort, with a portion of those already used as matching funds for our partners at the Coalition for the Poudre River Watershed (CPRW). CPRW is sampling the Upper and Lower zones of the watershed, while the City is focusing on the Middle Zone. As of the end of 2024, spending toward sampling and analysis have been addressed. The reappropriated funds will support development of final products and public outreach. Reason funds not expensed in 2024: The project funds that were not fully expended in 2024 are for the last phase of the project: public and partner engagement. The team must first receive the results from the sampling effort to begin the engagement phase. The timeline of contracting process and the need to collect data across a full year in order to see a complete picture of river health caused this project to spill into 2025. Sampling is underway and engagement is scheduled for summer and fall 2025. 2050 TAX FUND - PARKS & REC Recreation 14) Recreation 2050 Tax CIP Study - $250,000 Purpose for funds: Ordinance 58 was approved appropriating $250,000 to fund a Capital Improvement Plan (CIP) study for the Recreation department out of the 2050 Tax Fund - Parks & Rec. This study will inform the department’s efforts to strategically leverage asset management investments, including from the Recreation Fund and the 2050 tax proceeds, and is similar to efforts which the Parks department has completed for their Infrastructure Replacement Program. Reason funds not expensed in 2024: Award of the contract was delayed due to new internal City processes. Staff has worked through these processes and is underway with the RFP and expects funds will be fully spent in 2025. 2050 TAX FUND - TRANSIT Transfort 15) Transfort Optimization Study - $14,000 Purpose for funds: Transfort Optimization Study came in slightly under budget at $36k out of $50k original cost. Transfort will use remaining balance of unspent funds for costs outside of contract with the vendor such as incentives for focus groups and public meetings, additional translation costs, childcare incentives, etc. Reason funds not expensed in 2024: The cost of the optimization study came in under budget and was only $36,000 of the original $50,000 anticipated cost. These expenses described above are directly associated with the study, helping to inform strategic business decisions. NEIGHBORHOOD PARKLAND FUND Parks 16) Veteran's Plaza Sign Donation - $18,583 Purpose for funds: Funding was appropriated in 2024 for Park Planning and Development staff to design, construct and install an entry sign for the Veterans Plaza of Northern Colorado at Spring Canyon Community Park. To date, staff have completed design and design-build documents and material acquisition for the installation of the sign. Gifts of $25,000 and $50 were received by the nonprofit group supporting the Veterans Plaza and an individual donor for this designated purpose. Reason funds not expensed in 2024: Due to inclement weather conditions in Q4 of 2024 and contractor availability, construction has extended into 2025. Work is anticipated to be completed in Q1 2025. CONSERVATION TRUST FUND Parks 17) Bike Park Feasibility - $59,663 Purpose for funds: Funding was intended for Park Planning and Development staff to conduct a community-scale bike park feasibility study as directed by Council at the June 11 Work Session. This feasibility study includes an evaluation of potential locations, identification of features and park amenities, and a community engagement process. This project is in response to significant community feedback and input from the 2021 Parks and Recreation Plan: Recreate Reason funds not expensed in 2024: The project for which the dollars were originally appropriated by Council could not be completed during 2024 due to the project schedule overlapping years 2024/2025. Reappropriation of those dollars is necessary for completion of the project in 2025. CULTURAL SERVICES & FACILITIES FUND Cultural Services 18) Center for Creativity Furniture Donation - $91,729 Purpose for funds: The requested funds to be reappropriated make up a sizeable and generous community donation from a local resident in 2024 intended to be utilized for venue vitalization, improvements, equipment purchases, and furniture expenses. Due to the expansive nature of the Center for Creativity renovation, and significant construction costs, donated funds such as this are important to our continuing work towards making the Historic Carnegie Library a vibrant destination for arts and culture in the Fort Collins community. Funds used in 2024 purchased venue furniture items and equipment, along with basic infrastructure improvements not originally budgeted as part of the greater renovation project. Due to the funds not being received until 9/1/2024, staff was unable to fully spend them in 2024, as the building also was not brought fully back online until August 2024. Time was needed following completion of the renovation to best identify the areas these funds could best be put towards. We expect in 2025 to utilize these funds on continued facility improvements such as improved gallery hard goods and painted surfaces, access control upgrades, technical & performance related equipment, and other similar building infrastructure upgrades. Reason funds not expensed in 2024: Recognizing that these funds being requested for reappropriation were not received until late in the year 2024ber), it was expected that their use, as directed by the donation, would span more than just the year they were received. In an effort to leverage this generous donation in the most responsible manner, staff knew that they would need time once the CC was operational in August 2024 to best identify and outline how to use funding towards their intended purpose to support the venues ongoing equipment, furniture, and improvement needs. 19) Gardens on Spring Creek APGA Grant for Community Garden - $11,303 Purpose for funds: In 2024, The Gardens on Spring Creek received $20,000 grant from the American Public Garden Association (APGA) to support a project where we partner with the First Peoples Community Center to plan, design, plant and care for a garden plot at The Gardens for indigenous community use. This garden was born out of an expressed desire by the local indigenous community for more access to space to grow and harvest spiritual, medicinal and food plants for their community. This funding is instrumental to the success of this project and our commitment to building trust and enduring relationship with the Indigenous Community. During the 2024 season the Garden produced 370lbs of produce for the community and engaged at least 30 members of the Native Community. The appropriation of the remaining funds will support the ongoing work of this project for 2025. Reason funds not expensed in 2024: Funds were deposited in 2024 and are committed to support this project in its entirety. Due to a shortage of candidates for our gardener position in the summer of 2024, resulting in late hiring, the funds were not expended as intended by the end of 2024. We are determined to spend these funds in 2025 to complete the project with this reappropriation. RECREATION FUND Recreation 20) Recreation Asset Management - $53,410 Purpose for funds: The Recreation fund appropriated these expenses from revenues to support asset replacements, including the purchase of a replacement Kubota utility vehicle at the Farm at Lee Martinez Park ($45,000) and the replacement of an ADA pool lift at the Edora Pool and Ice Center ($8,410). Funding these assets allows us to maintain better service levels to the community and promotes access. Reason funds not expensed in 2024: Lead times for specialized equipment and work can be lengthy. Staff has received quotes and is ready to award the orders with high confidence in expending the funds in 2025. 21) Recreation Universal Pre-K (2024 State of CO Funding) - $30,469 Purpose for funds: Ordinance 140 was approved in November '24 appropriating the unanticipated 2024 revenue from the State of Colorado ($30,469) to fund the Universal Pre-school (UPK) '24 / '25 school year program at the Northside Aztlan Community Center in the Recreation Fund. Reason funds not expensed in 2024: With the timing of the '24 / '25 school year spanning the City's fiscal years hiring was delayed until funds were fully appropriated from Ordinance 140, as well as BFO Offer 46.5. Ordinance 140 works in conjunction with BFO Offer 46.5 which was approved in the ’25 / ’26 Budget and appropriates future State revenue as well as expands the Universal Pre-K program by funding the hiring of 3 new FTEs (start dates in April ’25). Ordinance 140, approved in November ’24, allowed for the accelerated hiring of 1 new FTE in support of the ’24 / ’25 school year, this position will be funded through Offer 46.5 from April ’25 forward. The team began the process of hiring 1 new FTE in November '24, the position was filled, and the new employee began in January '25. 22) Recreation Childcare Bus Exterior Wrap & Finishes - $12,790 Purpose for funds: Ordinance 124 was approved in September 2024 appropriating funds ($169,500) for a new full-sized bus in support of the Recreation department's childcare programs. The bus has been ordered and this reappropriation is intended to move the remainder of the original appropriation to fund the expense of exterior wrapping once the bus is received by the City (estimated delivery: 2nd half of 2025). Reason funds not expensed in 2024: The lead time for the bus will result in delivery in the 2nd half of 2025, the wrap and finish cannot be awarded and applied until the bus is onsite. The wrap will allow for the required City specific finishes. TRANSPORTATION CEF FUND Engineering 23) Waterfield Fourth Filing Development Reimbursement - $1,413,645 Purpose for funds: These funds are for a developer reimbursement for construction of Suniga Road, Vine Drive, and Merganser Street improvements and for the dedication of right-of-way for Suniga Road beyond local access standards. Reason funds not expensed in 2024: Funds were not expended in 2024 because the City of Fort Collins has continued to wait for the developer to submit appropriate paperwork for reimbursement. TRANSPORTATION SERVICES FUND FC Moves 24) Foco Fondo Donation - $5,000 Purpose for funds: The annual FoCo Fondo donation to Safe Routes to School is earmarked for new programming and/or new equipment to help get more kids bicycling in Fort Collins. Reason funds not expensed in 2024: The funding was not used in 2024 due to the event occurring after the midway point in the year and needing to wait for the funding to be appropriated. That left no time to spend the funds on programming in the fall 2024 semester of school and little time to research and acquire new equipment before the end of the year. These funds will be expended in 2025. Streets 25) Streets Building Office Remodel- $221,853 Purpose for funds: The purpose of this request is to reappropriate $221,853 for the buildout of the Streets Department office space. This budget had been set aside in 2024 to create new office space as the Streets team continues to grow. This expansion is essential to accommodate operational growth driven by the addition of new crews and staff, including the Timberline Recycling Center team, new Sweeping/Graffiti crew chief, new Asphalt Crew, new Asphalt Manager, and new Traffic Control Technicians/Classified Flaggers. Reason funds not expensed in 2024: Initially, the project was scheduled to begin in 2024, with Operations Services providing an estimated cost of $268,091. However, the estimate was significantly higher than anticipated, requiring additional time to identify cost-saving measures and ensure financial feasibility. Additionally, the pending approval of the 2025-2026 BFO requests for additional FTEs (Offers 21.7 and 21.8) introduced potential design impacts that needed to be considered before finalizing the project scope. The timeline for project initiation was impacted by delays in receiving quotes and the additional effort required to identify a more cost-effective approach. As a result, construction was unable to begin before the end of 2024 and the project was delayed to 2025. The Streets Department now has final design plans in place and is prepared to proceed with the remodel, with an anticipated completion timeline in late Q3 of 2025. This timeline remains contingent on permitting and contractor availability. PARKING FUND Parking Services 26) Civic Center Parking Structure (CCPS) Maintenance Work - $1,093,142 Purpose for funds: Following a 2019 condition assessment, the Civic Center Parking Structure (CCPS) stairwell was found to have repair needs. Due to the pandemic and resulting financial constraints, a pause to the maintenance schedule was approved by the contracted structural engineering firm. Maintenance repairs resumed in 2022, and a subsequent condition assessment identified that the southeast stairwell had degraded to an unsafe level resulting in its closure to the public in June 2022. Following the closure, a thorough assessment of the needed repairs, design and cost estimates was performed. Initial project funds of $1.2M were requested and appropriated in 2024. The funds requested for reappropriation will be used to complete the necessary repairs to the stairwell. Reason funds not expensed in 2024: Funding to repair the CCPS stairwell was approved in September of 2024 in the amount of $1.2 million. At outset, this work was anticipated to take 1.5 years for completion and is currently on track to being competed by end of 2025. DATA & COMMUNICATIONS FUND Information Technology 27) ERP System Replacement - $249,385 Purpose for funds: This offer will identify the components necessary for the City to implement a modernized ERP ecosystem, accounting for all readiness components, and will focus on the first two phases necessary to transform our business processes into a modern solution while minimizing customizations that exponentially increase implementation and support costs. To succeed this must become a business-led, technology-enabled transformation and we must plan this modernization in six key phases: 1) discovery and planning, 2) business process transformation, 3) design and development, 4) change management and training, 5) testing and implementation, and 6) operational support. Maintaining our current platform amplifies the need for high-touch, manual support. Once we implement a new solution, we will lower our costs, while increasing our ability to support increased needs with no additional FTEs. A new ERP solution will implement industry best practices necessary to standardize and streamline processes, reduce costly customization, address talent resiliency while improving our risk management, and disaster recovery practices, and ensure compliance with our pending end-of-life support. Also, implementing a standard solution will reduce the 32+ interfaces necessary to support today. Reason funds not expensed in 2024: The 2023-2024 funds were not fully utilized due to shifting priorities and resourcing challenges, as efforts focused on foundational planning, cross- departmental coordination, and learning from peer municipalities. In 2024, the City held an InfoTech partner led ERP workshop that brought together key stakeholders to refine the strategic vision, align business needs, and establish critical priorities for implementation. This workshop has shaped the program launch for 2025 by identifying key requirements, scope and priorities, identifying process gaps, and ensuring organizational readiness. The 2025 reappropriation will fund a dedicated ERP Project Manager to lead planning, RFP development, vendor selection, and resourcing. Funds will also help support backfilling key Finance, HR, and IT roles to allow subject matter experts to focus on ERP selection, and implementation. This initiative will transition from planning to execution, ensuring project readiness, structured system design, and phased implementation, ultimately modernizing the City’s ERP system to improve efficiency, reduce costs, and ensure compliance with end-of-life support requirements. 28) Expansion of Enterprise Service Management System (ESM) - $152,500 Purpose for funds: The original intent of this offer was to extend the "FreshService" IT Service Management (ITSM) portal into an Enterprise Service Management (ESM) portal, encompassing Human Resources, Operation Services, Communications & Public Involvement, and Emergency Preparedness & Security. This centralization and standardization of service request management would offer all City employees visibility into the status of service requests, tracked communications, and a consistent framework across departments. The ongoing cost for licensing will increase $68,500 annually. Additionally, the implementation of ESM will be through a phased plan and tailored approach, requiring professional services to assess and create a service delivery practice for the City. The one-time cost for a 3-month assessment and to begin implementation will be $87,500 for 3rd party professional services. This investment aligns with our goal of moving from complexity to simplicity by standardizing service requests, improving transparency, and enabling data-driven service enhancements. ESM will streamline cross-department workflows, like onboarding new employees, ensuring a seamless, employee-centered service experience. Reason funds not expensed in 2024: The 2023-2024 funds were not fully utilized as the ESM expansion took longer due to competing priorities across HR, Operations, IT, EPS, and CPIO. During this period, IT focused on foundational training, process development, and service catalog redesign to ensure a strong framework for expansion. The 2025 reappropriation is essential to fund guidance and training, enabling departments to transition successfully. Additionally, these funds will support licensing for new users as they configure and implement FreshService, ensuring a smooth rollout. FINANCIAL/ECONOMIC IMPACTS This Ordinance increases 2025 appropriations by $5,572,540. A total of $1,841,644 is requested for reappropriation from the General Fund, $1,413,645 is requested from the Transportation CEF Fund, $1,093,142 is requested from the Parking Fund and $1,224,109 from other funds. Reappropriation requests represent amounts budgeted in 2024 that could not be encumbered at year-end. The appropriations are from prior year reserves. DISCUSSION / NEXT STEPS Mayor Arndt; That is a lot of money that we don’t spend each year. I am looking at the Poudre River Health Assessment $53K that wasn’t spent (see below). I remember that was below the line at $500K. Is that the same assessment? Lawrence Pollack; no, this would not have been part of the 2025-26 Budget. These were prior appropriations. Mayor Arndt; that is what I am concerned about - we pulled something from below the line to above the line. Why didn’t we spend that, and we pulled something above the line for $500K - are we going to be able to absorb that? We aren’t able to do the work, and we have this much money left over in this bucket. I just wonder if we are making good decisions. Lawence Pollack; during budget conversations, this amount of money, that was previously appropriated was not going to be completely spent, there may have been other decisions made in the adoption of the 2-year budget. Having that information ahead of time would have been helpful. Mayor Arndt; that is my point – are these different projects? Tyler Marr; before this comes back to Council, we can follow-up on what this is and what you funded from Poudre River for this budget. I think the Poudre Flow which came up, I do think that is different work, and the relation is a great question. Mayor Arndt; what a great problem to have - more money than we can spend, but it helps decision making. Lawrence Pollack; we will make sure to include clarification of what was in the original appropriation. Mayor Arndt; why do we have $250K left over from the 2050 tax study? (see below) Kelly DiMartino: the contracting took longer than we expected Lawrence Pollack; the appropriation was in September. It is very prudent for staff to be proactive and clear with Council especially when we have a late year appropriation that we probably won’t be able to spend the entire amount. Mayor Arndt; knowing this would help us and future Councils make better decisions. D. Oak Street Project Matt Fater, Civil Engineering Director Joe Wimmer, Utilities Finance Director SUBJECT FOR DISCUSSION Supplemental Appropriation Request for the Oak St. Stormwater Project EXECUTIVE SUMMARY The Oak Street Stormwater Project (OSSP) is currently under construction and progressing as planned. Staff has identified the need for an additional $1,500,000 appropriation from the Stormwater Utility Reserve Fund to supplement the existing appropriated budget. The additional appropriation will fund remaining project support services as well as a minor contingency for unanticipated costs to complete the project. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED Does the Council Finance Committee support an off-cycle appropriation of $1,500,000 from the Stormwater Fund reserves to complete the Oak Street Stormwater Project? BACKGROUND/DISCUSSION The Oak Street Stormwater Improvement Project is a priority stormwater project for the City because it will contribute to resolving the urban flooding and stormwater quality issues in downtown Fort Collins. The project will provide stormwater infrastructure including a combination of grey and green infrastructure to reduce flooding impacts along the Oak Street corridor and adjacent blocks. Large diameter storm pipes ranging in size from 48” to 78” will extend from the previously constructed Oak Street Outfall, starting at Mason Street and extending to Jackson Street near City Park. There will be approximately 8,500 linear feet (LF) of new stormwater mains along Oak Street and cross streets that extend north to Mountain Avenue and/or south to Olive Street. Green infrastructure includes water quality ponds, or “rain gardens” in three locations along the Oak Street corridor to filter street runoff. Additional information on the project and associated public outreach can be found here: https://www.fcgov.com/utilities/oak-street-stormwater-improvements-project The project started construction in July of 2024 with an anticipated completion of June 2026. To date, approximately 30% of the work is completed which includes 772 LF of tunnelling and 1,417 LF of mainline storm sewer. The total appropriated budget, to date, for this project is $42,882,815. Previous city annual budgets appropriated $2,920,000 and there was an off-cycle appropriation in 2023 for $39,962,815. The off-cycle appropriation was for the municipal bond proceeds issued by the Stormwater Utility enterprise in the Fall of 2023. The total project budget includes engineering, project and construction management, permitting, and construction services with construction contract accounting for the most significant portion. In addition to these elements of the project budget, typically a contingency of 5-10% would be included in the final budget. However, this level of contingency was not included in the 2023 appropriation due to the timing of the bidding and bonding processes. Instead, the project started construction with a contingency of less than 1%. The construction contract portion of the project has been progressing as planned with minimal unanticipated expenses. However, the project expenses related to professional services, project management, and other support services have exceeded original estimates. These are future expenses for the project as the project moves into the second year of construction. There are also some minor potential expenses associated with pending issues related to construction such as concrete and asphalt replacement and utility relocations that will likely be realized before the end of the project. In addition to these known and pending expenses, a minor contingency (1.6%) is requested to cover unanticipated expenses for the remaining portion of the project. Figure 1 summarizes the existing appropriations and anticipated expenses as well as the requested appropriation to complete the project. Figure 1 – Budget Summary Staff requests a $1,500,000 supplemental appropriation from Stormwater Fund reserves based on the budget analysis summarized in Figure 1. This level of contingency is relatively small for a project of this magnitude. A typical construction contingency would be 5-10%. However, staff believes this is sufficient to complete the project based on the progress to date and a risk assessment of the remaining work. FINANCIAL IMPACT The requested supplemental appropriation would be funded from Stormwater Fund reserves. This fund has a sufficient balance with approximately $10.7M of available unencumbered reserves to cover this appropriation. DISCUSSION / NEXT STEPS Kelly Ohlson; I am supportive, but I have a couple of questions. Was there a CORA request on this project? Tyler Marr; yes, I think that came through yesterday. I think it was a request for the general contracting bids. Kelly Ohlson; we talk about a normal contingency 5-10%. I see that this level was not included in the original appropriation due to the timing of bidding and bonding processes. Matt Fater; now that we are 8 months into the project and have been through some of the high-risk areas like tunneling and deep excavation large diameter pipe, we feel comfortable with work that has been done. Contingency for additional risk items moving forward is low Kelly Ohlson; why didn’t you add the normal contingency at the beginning? Matt Fater; that was due to the timing of when we got the bids and when the bond proceeds were appropriated. It was decided at that time that we wouldn’t appropriate funds above what the bond proceeds were. We would wait until we got into the project and make a determination. Kelly Ohlson; I understand that you are close to hitting the numbers and that is good. There is some wording in there are also some minor expenses for construction such as concrete and asphalt replacement, utility relocations. Aren’t those things you would normally build in? Matt Fater; we do build that into the bid but once you get out there – there is some variability of what actually needs to be replaced, and it is not until you look at the field conditions and we need to make that adjustment on the fly. Kelly Ohlson; the project seems to be going well. Good work Tricia Canonico; pending issues – have added a change order to some of the work. Art in Public Places (APP) is doing a lot of the work for the project and contributed money for that. The project itself includes installing concrete vases and the design wasn’t in there before. Mayor Arndt; This project embraces all of that in a real tangible way. What people are asking for is actual results delivered on these ideas that we talk about all of the time like resiliency, heath, water quality. This project does it all and it is so interesting to me how this project seems to be below the radar. This is the 3rd largest project in the city’s history, and it lives out all of our values. It is the real work of the real cities. Future generations won’t even know but they will thank you - Quality of life. I am a huge fan – great job! Meeting adjourned at 5:24 pm