HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/01/2005 - RESOLUTION 2005-008 SUBMITTING TO THE REGISTERED E ITEM NUMBER: 28
AGENDA ITEM SUMMARY DATE: February 1, 2005
FORT COLLINS CITY COUNCIL STAFF: Diane Jones
Ann Turnquist
SUBJECT
Resolution 2005-008 Submitting to the Registered Electors of the City at the April 5, 2005
Regular City Election the Question of Renewal of an Existing Quarter-cent Sales and Use Tax to
Be Used to Fund the City's Street Maintenance Program.
RECOMMENDATION
Staff recommends adoption of the Resolution with a term of 20 years.
FINANCIAL IMPACT
The renewal of the Street Maintenance Program sales and use tax would provide approximately
$5.5 million per year for the program. This funding source now provides only half of the current
revenue for the City's street maintenance program as the entire 1/4 cent is not currently
dedicated to street maintenance. A portion of the Building Community Choices revenue from
this quarter cent was earmarked for other transportation capital projects. Renewal of the tax
with all the revenue dedicated to this purpose will lower the need for some of the one-time
General Fund resources currently committed to street maintenance.
EXECUTIVE SUMMARY
At the January 11 Study Session, Council directed staff to bring forward a Resolution placing the
Street Maintenance Program sales and use tax renewal on the April 2005 City Election ballot.
The Street Maintenance Program provides funding for the repair and renovation of the City's
street system. All 475 miles of city streets are covered by the program including arterials,
collectors and residential streets. The program covers major maintenance and preventative
maintenance of streets including repairs, renovations and reconstruction when necessary.
Maintenance is also performed on curbs, gutters, bridges, sidewalks, parkways, shoulders and
medians.
February 1, 2005 -3- Item No. 28
until the 2006-07 budget is adopted, General Fund support for the program will still be required
after the dedicated revenue source is approved by voters.
On-going funding for the Street Maintenance Program is a high priority for Transportation
Services for several reasons. It continues to be one of the City's most basic, core services with
excellent past performance. It is a cost effective program because maintaining average
pavement condition rating of 75 saves the City money. By providing preventative maintenance
to streets, repairs can be made when inexpensive processes can be used, rather than waiting until
more expensive and disruptive major maintenance or replacement is required. With limited
alternative funding sources for this maintenance, this program and its funding source are critical
to the overall condition of the City's street system.
A Dedicated Funding Source
By continuing this dedicated funding source, separate from the General Fund, the City can
accomplish several goals. First, by maintaining the program as a dedicated sales tax funded
program, funds cannot be diverted to other uses. This ensures that the program remains funded
and preventative maintenance will not be deferred.
A second benefit of a dedicated sales tax is that 30 - 40% of sales tax revenue is generated from
non-city residents that use our street system. By placing a portion of the burden for maintaining
our streets on visitors, workers who commute into Fort Collins and shoppers from neighboring
communities, the sales tax provides an equitable funding source.
Finally, by creating a dedicated funding source for street maintenance, the City can assure
compliance with capital asset accounting requirements set forth in GASB-34. This accounting
standard requires that the City estimate the value of all assets and their condition. With the
additional funding from the dedicated quarter cent, the City will be able to maintain the value of
the assets.
Term of Tax
A date for the expiration of the tax must be added to the proposed ballot language. Council
discussed a variety of terms, including 8-10 years, 15 years, or 20 years. Since no agreement
was evident at the January 11 Study Session, Council asked that two options be presented at the
February 1 meeting, including a 10 year and a 20 year alternative. The length of the tax has been
left blank in the Resolution, and Council's motion should include the desired length.
Staff recommends a term of 20 years. By using a 20 year term for the tax, it will provide a long-
term funding source for the program, and will be set to expire in an odd-numbered year when a
municipal election will be held. A 20 year term would run from January 1, 2006 through
December 31, 2025.
ATTACHMENTS
1. Graphics of Current and Projected Pavement Management Funding Sources
2. Pavement Condition Index
3. City of Fort Collins Pavement Management Program Annual Report for 2004
Attachment 1
2005 Pavement Management Funding Sources
Street Cut Fees,
General Fund On- $128,000 , 2%
going, $1,400,000 , r
.a
Building Community
Choices,
$3,700,000 , 48%
General Fund One-
time, $2,300,0100 ,
31%
2006 Pavement Management Funding
Projected
Street Cut Fees,
$128,000 , 2%
General Fund ,
$2,300,000 , 29%
Pavement
Management
Renewal,
$5,500,000 , 69%
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Attachment 3
City of Fort Collins
Pavement Management Program
Annual Report for 2004
The Pavement Management Program was extremely productive in 2004! We completed 38,000
feet (over 7 miles) of curb, gutter, and sidewalk repairs, installed 177 pedestrian access ramps,
and reconstructed or overlaid seventeen (17) miles of paved roadway. Thirteen (13) miles of
local streets were slurry sealed. The Pavement Management Program manages a variety of
projects including overlays and sealcoats, Hot-in-Place recycling, crackseal, asphalt and concrete
street patching, and curb, gutter, and sidewalk repair. The majority of this work is bid to private
contractors (approximately 55% of the construction budget), while the City of Fort Collins
Streets Department performs the remaining 45%.
The Overlay Project encompassed seventeen areas at various locations throughout the City in
2001 (see attached map and list). In many of these areas funds were combined with other
projects to minimize impact to residents and maximize construction efficiency. Pedestrian
Access Funds were used to improve or install sidewalks and eliminate pedestrian hazards
throughout the selected areas. One such location was Prospect Road between College Avenue
and Timberline Road.
In a continuing effort i
4 t
Nh
to find cost effectivetyOl>> r,
interim maintenance s>>'
procedures to extend
asphalt pavement life,
an innovative
procedure known as
Hot-in-Place
Recycling was used
for the fifth year on six
(6) miles of arterial
streets. Two and one-
half (2%) miles were
completed on Prospect
Road between College
Taft Hill Road
Avenue and Timberline Road, and Three and one half(3 %2) mile was completed on Taft Hill
Road between Laporte Avenue and Valley Forge Avenue. The work was performed with
specially designed equipment in a simultaneous multi-step process: heating, scarifying one inch
of the existing pavement, applying a rejuvenating agent, thoroughly remixing and reshaping the
old asphalt surface, and then placing a one-inch overlay of new hot mix asphalt pavement. This
process allows for a single pass operation. The road can then be reopened immediately after the
material is compacted,minimizing the total time lanes are closed to traffic.
Pavement Management Program Annual Report-1004 Page 1
It is the goal of the City of
Fort Collins to maintain an Average Pavement Condition Over Time
overall street pavement 80
condition number of at least
75 on a scale of I to 100. A
current rating number of 75
as of the end of 2003, was
confirmed when street a 75
-
condition data was collected
and analyzed. Pavement
condition data is collected
on a three-year cycle; local
streets are collected the first 70
year, collectors and arterials 1996 1997 1998 1999 2000 2001 2002 2003
the second year, and then Year
one year is skipped. This
ensures that our data is no more than three years old.
With the Council's approval of the 2004/2005 budget, our project is fully-funded and we will be
able to provide the most cost-effective maintenance possible on our street system through 2005.
The following chart depicts the past and future funding history of our Pavement Management
Program.
Growth in Street Miles
As the chart shows, the funding
requirements of the Pavement
Management Program increase by
6.5% per year, which accounts for 500
inflation and the growth of the City's 450
street system.
aoo
We are committed to finding new and 350
innovative treatments such as Hot-in-
Place Recycling to maximize the 300
effectiveness of our maintenance 250
dollars. In addition, we will continue
to ensure quality construction by zoo
updating construction standards, 1985 1987 1989 1991 1993 1995 1997 1999 2001 S
monitoring excavation permits, and
implementing routine maintenance strategies that reduce future maintenance costs.
Pavement Management Program Annual Report-2004 Page 2
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STREET NAME FROM STREET TO STREET STREET NAME FROM STREET TO STREET
A.CHAPARRAL-Rehab P.PITKIN-Slurry
Boone Street Casa Grande Boulevard Sioux Boulevard Buckeye Street Newsom Street Morgan Street
Bowie Avenue Casa Grande Boulevard Swallow Road E.Lake Place E.Lake Street S.Lemay Avenue
Casa Grande Boulevard Dunbar Avenue Shields Street E.Lake Street Stover Street E.Prospect Road
Clementine Court Oregon Trail Dudley Way E.Pitkin Street Stover Street S.Lemay,Avenue
Crockett Street Casa Grande Boulevard Sioux Boulevard Edwards Street Ellis Street Morgan Street
Downing Court Casa Grande Boulevard South End Ellis Street E.Prospect Road E.Lake Street
Dudley Way Casa Grande Boulevard Oregon Trail Ellis Street E.Pitkin Street Garfield Street
Gatlin Street Cm Grande Boulevard Sioux Boulevard Garfield Street Stover Street S.Lemay Avenue
Hickok Drive Casa Grande Boulevard Seneca Street Green Street E.Lake Street Garfield Street
Laredo Lane Casa Grande Boulevard Nez Pence Way Lory Street E.Lake Street S.Lemay,Avenue
Liverpool Street Casa Grande Boulevard Dunbar Avenue Luke Suva E.Pitkin Street E.Prospect Road
Lyman Street Casa Grande Boulevard Nez Pence Way Morgan Street E.Lake Street E.Elizabeth Street
Nez Perce Way Sharps Street Lyman Street Newsom Street E.Lake Street Garfield Street
Oregon Trail Casa Grande Boulevard Seneca Street Patton Street E.Pitkin Street E.Prospect Road
Ottawa Court Sweeney Street West End Robertson Street E.Prospect Road S.Lemay,Avenue
Sam Houston Circle Casa Grande Boulevard Sioux Boulevard Robertson Street Garfield Street E.Elizabeth Street
Sam Houston Circle Casa Grande Boulevard Seneca Street Williams Street Garfield Street Morgan Street
Seneca Street Hickok Drive Sam Houston Circle Yount Street E.Pitkin Street E.Prospect Road
Sharps Street Casa Grande Boulevard Sioux Boulevard Q,PARKLAKE-Slurry
Sioux Boulevard Sam Houston Circle Sharps Street Lakeshore Drive Silvencreek Drive Parklake Drive
Sweeney Street Casa Grande Boulevard Sioux Boulevard Parklake Court E.Drake Road Parklake Drive
B.VILLAGE Qa SOUTHRIDGE-Rehab Parklake Drive E.Drake Road Parklake Court
Sagamom Circle Wingfnct Drive West End Shadow Court Lakeshore Drive North End
C.ASPEN-Rehab Silvercreek Drive E.Drake Road Lakeshore Drive
Aspen Street W Willox Lane North End Yucca Court Parklake Drive West End
Eaton Street Aspen Street Cedar Street R.VILLAGE @ SOUTHRIDGE-Slurry
Willox Court W Willox Lane North End Deercroft Court Wingfwt Drive West End
Cedar Street W Willox Lane Eaton Street Dotal Place Wingfoot Drive West End
D.GOLDEN MEADOWS-Rehab Muirfield Way Wingfoot Drive South Lemay,Avenue
Ticonderoga Drive S Lemay Avenue McMurty Avenue Wingfoot Drive Southridge Greens Blvd. Sagamore Circle
McMurry Avenue Ticonderoga Drive Burlington Court S.WOODLAND-Slurry
E.PROSPECT-Hot In Place Recycle Hibiscus Street Woodland Way Marigold Lane
Prospect Road College Avenue Lemay Avenue Viola Street Woodland Way Marigold Lane
Prospect Road Lemay,Avenue Timberline Road Woodland Court Woodland Way North End
F.OAK-Rehab Woodland Way Viola Street East End
W Oak Street N Meldrum Street Howes Street T.PONDEROSA-Slurry
G.WORTHINGTON-Rehab Ponderosa Court Ponderosa Drive East End
Centre Avenue Shields Street Research Blvd. Ponderosa Lane Ponderosa Drive Fast End
Worthington Circle Centre Avenue Centre Avenue U.QUAIL HOLLOW-Slurry
H.WH.LOX-Rehab Beaver Court Mercy Drive South End
East Willox Lane North College Avenue N Lemay Avenue Blue Leaf Court Yorkshire Street North End
1.MATHEWS-Rehab Blue Leaf Drive S.Overland Trail Yorkshire Street
Smith Street Pitkin Street Elizabeth Street Brumbaugh Drive Yorkshire Street West End
Mathews Street Pitkin Street Elizabeth Street Calendar Court Skimmerhom Street South End
Peterson Street Pitkin Street Elizabeth Street Clay Basket Court Blue Leaf(hive West End
Whedbee Street Pitkin Street Elizabeth Street Clemma Court Pasquinel Drive West End
J.MEADOWLARK-Rehab Dixon Creek Court Dixon Creek Lane North End
Meadowlark Avenue East Drake Road West Swallow Road Dixon Creek Lane Yorkshire Street East End
K.TAFF HILL-Hot In Place Recycle Dumire Court Mc Keag Drive North End
Taft Hill Road Valley Forge Avenue Laporte Avenue Garrett Drive West End East End
L.WEST ELIZABETH-Rehab Lisette Court Blue Leaf Drive West End
West Elizabeth Street City Park Avenue Shields Street Lucinda Court Pasqumel Drive West End
M.STOVER-Concrete Only McKeag Drive Yorkshire Street Dumire Court
Stover Street Stuart Street Drake Road Mercy Court Mercy Drive West End
Cheyenne Drive Stover Street 150'West Mercy Drive Dixon Creek Lane Michener Drive
N.WESTVIEW-Slurry Michener Court Yorkshire Street West End
Westview Road City Limit South End Michener Drive Yorkshire Street Fast End
Ridgecrest Drive Blue Teal Drive Spaulding Lane Pasquinel Drive Skimmerhom Street W.Drake Road
Blue Teal Drive Westview Road Ridgecrest Drive Seccomb Street Yorkshire Street Dumire Court
O.CLARENDON HILLS-Slurry Skimmerhom Street S.Overland Trail Zendt Drive
Abbey Road Ashford Lane West End Teal Eye Court Michener Drive South End
Hilldale Court Hilldale Drive South End Yorkshire Street S.Overland Trail W.Drake Road
Hilldale Drive Shields Street City Limit Zendt Drive Garrett Drive Sk mmerhom Street
Hinsdale Court Hinsdale Drive East End V.COCHETOPA COURT-Concrete Only
Langdale Court North End South End Cochetopa Court Red Mountain Drive East End
Langdale Drive Clarendon Hills Drive Fast End
Rochelle Circle Langdale Drive Langdale Drive
Saratoga Circle Hilldale Drive South End
Whitehall Court Abbey Road West End
Pavement Management Program Annual Report-2004 Page 4
RESOLUTION 2005-008
OF THE COUNCIL OF THE CITY OF FORT COLLINS
SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY
AT THE APRIL 5, 2005 REGULAR CITY ELECTION
THE QUESTION OF RENEWAL OF AN EXISTING QUARTER-CENT
SALES AND USE TAX TO BE USED TO FUND
THE CITY'S STREET MAINTENANCE PROGRAM
WHEREAS, the City of Fort Collins has enacted a comprehensive sales and use tax, which
enactment is codified in Chapter 25, Article III of the Code of the City of Fort Collins; and
WHEREAS,the amount of such tax presently imposed by the Code,as contained in Section
25-75(a)thereof,includes a twenty-five hundredths percent(0.25%)tax(the"Tax")approved by the
voters of the City on April 8, 1997 as a part of the Building Community Choices Capital Projects
Program to fund the City's street maintenance and overlay program, annual pedestrian
improvements, Phases 1 and 2 of the Mason Street Transportation Corridor, and Phase 1 of
improvements to the North College Avenue Corridor; and
WHEREAS, the aforementioned sales and use tax will expire at midnight on December 31,
2005; and
WHEREAS, the City Council has directed the City staff to propose ballot language for
placing a proposed extension of the Tax to fund the Street Maintenance Program (the "Program")
on the ballot at the upcoming regular City election on April 5, 2005; and
WHEREAS, the Program provides funding for the repair,renovation and reconstruction of
the City's street system which encompasses 475 miles of arterials,collectors and residential streets
and which is growing at the rate of approximately 3% or 15 miles per year; and
WHEREAS, maintenance activities conducted under the Program include the repair,
renovation and reconstruction of curbs, gutters, bridges, sidewalks, parkways, shoulders and
medians; and
WHEREAS, the Program is currently one of four sources for fully funding such repairs and
reconstruction and constitutes the single largest source of funding for the Program; and
WHEREAS, by continuing this dedicated funding source, separate from the General Fund,
the City would not only be able to provide a higher level of maintenance for City streets but would
also be able to obtain assistance in funding the Program from non-City residents that use the City's
street system; and
WHEREAS, the Council believes it to be in the best interests of the residents of the City to
extend the quarter-cent sales and use for the Street Maintenance Program for a period of (_)
years.
February 1, 2005 -2- Item No. 28
BACKGROUND
Two Building Community Choices capital sales taxes are set to expire December 31, 2005. The
"Streets and Transportation Projects" package funded the Street Maintenance and Overlay
Program, the Annual Pedestrian Improvement Program, Phases 1 and 2 of the Mason
Transportation Corridor, and improvements to the North College Corridor. The "Community
Enhancements" package has funded a variety of other projects including road expansions,
recreation programs and land acquisition for future City projects. While both taxes are set to
expire this year, Council has directed staff to seek renewal of the Street Maintenance Program at
the April election and defer the "Community Enhancements" renewal until the November 2005
election.
The Street Maintenance Program
The Street Maintenance Program provides funding for the repair and renovation of the City's
street system. All 475 miles of city streets are covered by the program including arterials,
collectors and residential streets. The program covers major maintenance and preventative
maintenance of streets including repairs, renovations and reconstruction when necessary.
Maintenance is also performed on curbs, gutters, bridges, sidewalks, parkways, shoulders and
medians.
The program has been in existence since 1989 when it was funded through the Choices 95
Capital Improvement Program. Prior to that time, the City's street maintenance efforts received
minimal funding and streets were in poor condition. With the funding of the Street Maintenance
Program and the renewal of the funding stream through the Building Community Choices
program, the City has been able to meet its goal of an average pavement condition rating of
75—a "Good" rating. Accomplishments of the program have included:
• 263 miles of streets have been maintained since 1989;
• The average pavement condition rating has been raised to 75;
• Aggressive rehabilitation of arterial streets has been undertaken;
• The Hot-in-Place asphalt recycling process was introduced in 2000, increasing cost
effectiveness and minimizing inconvenience for citizens; and
• Preventive maintenance such as slurry seals and overlays have increased.
Program Funding
The Street Maintenance Program is currently funded from four sources. A substantial portion of
the program funding, $3.7 million (49%), is provided by the Building Community Choices
Program. In 2005, the General Fund will provide $1.6 million in on-going funds and $2.2
million in on-time funding for the program. An additional $128,000 from street cut fees was
provided in 2004. These fees are assessed to contractors and other builders who cut into City
streets as part of a construction project. The overall budget of$7.5 million is considered to be a
full-funding level for the program.
If the Street Maintenance Program is renewed, $5.5 million of dedicated revenue, plus a
projected $2.3 million of general fund support in 2006 will provide a total of approximately $7.8
million per year for street maintenance. Though specific funding figures would not be known
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that there is hereby submitted to the registered electors of the City at the next regular City
election to be held on April 5, 2005, the question of whether to extend the Tax for the City's Street
Maintenance Program for a period of (_)years,which question shall be submitted
in substantially the following form:
BALLOT ISSUE NO. 3
A City-initiated Question
SHALL CITY OF FORT COLLINS TAXES BE INCREASED BY AN ESTIMATED
$ FOR THE FIRST FULL FISCAL YEAR (2006) AND BY SUCH AMOUNTS
AS MAY BE GENERATED ANNUALLY THEREAFTER BY EXTENDING THROUGH
DECEMBER 31, 20_ THE EXISTING SALES AND USE TAX FOR THE STREET
MAINTENANCE PROGRAM AT THE RATE OF 0.25% (25 CENTS ON A $100
PURCHASE), WHICH TAX IS PRESENTLY SCHEDULED TO EXPIRE DECEMBER 31,
2005; PROVIDED THAT THE REVENUES DERIVED FROM SUCH TAX EXTENSION
SHALL BE USED TO PAY THE COSTS OF PLANNING, DESIGN, RIGHT-OF-WAY
ACQUISITION, INCIDENTAL UPGRADES AND OTHER COSTS ASSOCIATED WITH:
• THE REPAIR AND RENOVATION OF CITY STREETS, INCLUDING BUT NOT
LIMITED TO CURBS, GUTTERS, BRIDGES, SIDEWALKS, PARKWAYS,
SHOULDERS AND MEDIANS;
AND FURTHER PROVIDED THAT THE FULL AMOUNT OF REVENUES DERIVED
FROM THE TAX EXTENSION MAY BE RETAINED AND EXPENDED BY THE CITY
NOTWITHSTANDING ANY STATE REVENUE OR EXPENDITURE LIMITATION,
INCLUDING THE LIMITATION CONTAINED ARTICLE X, SECTION 20 OF THE
COLORADO CONSTITUTION?
_ YES
NO
Passed and adopted at a regular meeting of the Council of the City of Fort Collins held this
1st day of February, A.D. 2005.
Mayor
ATTEST:
City Clerk