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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% N � N a LO u){o} a D1100 ay N V1 O � � O a b 0 o coo w � kt) � 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 �111 1■!�■iii �ii■■■■ 1�. r —■■;;■■ ■rid■■■■�.• ��� '' . L-_"''t� ter' t �` ■■-- . ' �. NMI to F -- 3 lam. I vu.I 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