Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
COUNCIL - COMPLETE AGENDA - 11/03/2015 - COMPLETE AGENDA
City of Fort Collins Page 1 Wade Troxell, Mayor City Council Chambers Gerry Horak, District 6, Mayor Pro Tem City Hall West Bob Overbeck, District 1 300 LaPorte Avenue Ray Martinez, District 2 Fort Collins, Colorado Gino Campana, District 3 Kristin Stephens, District 4 Cablecast on City Cable Channel 14 Ross Cunniff, District 5 on the Comcast cable system Carrie Daggett Darin Atteberry Wanda Winkelmann City Attorney City Manager City Clerk The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and will make special communication arrangements for persons with disabilities. Please call 221-6515 (TDD 224- 6001) for assistance. Regular Meeting November 3, 2015 (Revised November 2, 2015) Proclamations and Presentations 5:30 p.m. A. Proclamation Declaring November 2015 as American Music Month. B. Proclamation Declaring November 25-December 10 as 16 Days of Activism Against Gender Violence. C. Proclamation Declaring November 15 through November 21, 2015, as Geographic Awareness Week. D. Proclamation Declaring November 2015 as the "Month of Movember". Regular Meeting 6:00 p.m. PLEDGE OF ALLEGIANCE CALL MEETING TO ORDER ROLL CALL AGENDA REVIEW: CITY MANAGER City Manager Review of Agenda. City of Fort Collins Page 2 Consent Calendar Review This Review provides an opportunity for Council and citizens to pull items from the Consent Calendar. Anyone may request an item on this calendar be “pulled” off the Consent Calendar and considered separately. o Council-pulled Consent Calendar items will be considered before Discussion Items. o Citizen-pulled Consent Calendar items will be considered after Discussion Items. CITIZEN PARTICIPATION Individuals may comment regarding items scheduled on the Consent Calendar and items not specifically scheduled on the agenda. Comments regarding land use projects for which a development application has been filed should be submitted in the development review process** and not to the Council. Those who wish to speak are asked to sign in at the table in the lobby (for recordkeeping purposes). All speakers will be asked by the presiding officer to identify themselves by raising their hand, and then will be asked to move to one of the two lines of speakers (or to a seat nearby, for those who are not able to stand while waiting). The presiding officer will determine and announce the length of time allowed for each speaker. Each speaker will be asked to state his or her name and general address for the record, and to keep comments brief. Any written comments or materials intended for the Council should be provided to the City Clerk. A timer will buzz once and the timer light will turn yellow to indicate that 30 seconds of speaking time remain, and will buzz again and turn red when a speaker’s time to speak has ended. [**For questions about the development review process or the status of any particular development, citizens should consult the Development Review Center page on the City’s website at fcgov.com/developmentreview, or contact the Development Review Center at 221-6750.] CITIZEN PARTICIPATION FOLLOW-UP Consent Calendar The Consent Calendar is intended to allow the City Council to spend its time and energy on the important items on a lengthy agenda. Staff recommends approval of the Consent Calendar. Anyone may request an item on this calendar to be "pulled" off the Consent Calendar and considered separately. Agenda items pulled from the Consent Calendar will be considered separately under Pulled Consent Items. Items remaining on the Consent Calendar will be approved by City Council with one vote. The Consent Calendar consists of: ● Ordinances on First Reading that are routine; ● Ordinances on Second Reading that are routine; ● Those of no perceived controversy; ● Routine administrative actions. City of Fort Collins Page 3 1. Second Reading of Ordinance No. 128, 2015, Being the Annual Appropriation Ordinance for the Fort Collins Downtown Development Authority Relating to the Annual Appropriations for the Fiscal Year 2016 and Fixing Mill Levy for the Downtown Development Authority for Fiscal Year 2016. This Ordinance, unanimously adopted on First Reading on October 20, 2015, sets the Downtown Development Authority (DDA) Budget. The following amounts will be appropriated: DDA Public/Private Investments & Programs $ 725,394 DDA Operations & Maintenance $ 791,717 Revolving Line of Credit Draws $ 2,100,000 DDA Debt Service Fund $ 4,521,012 The Ordinance sets the 2016 Mill Levy for the Fort Collins DDA at five (5) mills, unchanged since tax year 2002. The approved Budget becomes the Downtown Development Authority’s financial plan for 2016. 2. Second Reading of Ordinance No. 129, 2015, Appropriating Prior Year Reserves in the Downtown Development Authority Fund for Expenditure on Projects and Programs in Fiscal Year 2015 in Accordance with the Downtown Plan of Development. This Ordinance, unanimously adopted on First Reading on October 20, 2015, appropriates unanticipated revenue from interest earnings in the amount of $13,508 and from project savings in the amount of $63,836 for a total appropriation of $77,344 for use by the Downtown Development Authority. The Downtown Development Authority Board has authorized the expenditure of these funds for various DDA projects and programs in fiscal year 2015. 3. Second Reading of Ordinance No. 130, 2015, Appropriating Prior Year Reserves in the Transit Services Fund and Prior Year Reserves in the Transportation Fund and Authorizing the Transfer of Appropriations into the Capital Projects Fund and Appropriating Therein for the Mason Corridor Project for the Purchase of Two Rapid Transit Buses. This Ordinance, unanimously adopted on First Reading on October 20, 2015, appropriates and transfers $1,473,887 to help pay for two recently-delivered Bus Rapid Transit (BRT) 60-foot Compressed Natural Gas (CNG) buses for MAX. The total cost for the two buses is $1,734,598 and the balance will be paid from an existing Capital Projects Fund appropriation of $260,711. The requested funding sources and amounts are as follows: Transportation Fund Reserves in the amount of $741,288; and Transit Fund Reserves in the amount of $732,599. The appropriated amounts will then be transferred to the Capital Projects Fund. 4. Second Reading of Ordinance No. 131, 2015, Amending Section 25-75(a) of the Code of the City of Fort Collins to Extend the Expiration Date of the City's 0.25% Street Maintenance Sales and Use Tax as Approved by the Voters at the City's April 7, 2015, Regular Election and to Correct an Error in the Expiration Date of the City's 0.85% Sales and Use Tax Increase Approved by the Voters at the City's November 2, 2010, Special Election. This Ordinance, unanimously adopted on First Reading on October 20, 2015 amends Section 25- 75(a) of the City Code to reflect the appropriate tax expirations dates as approved by the electors. The expiration date of the street maintenance tax will reflect the extension to December 31, 2025. The expiration date for the Keep Fort Collins Great (KFCG) tax increase of .85% needs to be corrected to December 30, 2020. 5. Second Reading of Ordinance No. 132, 2015, Amending Section 25-65 of the Code of the City of Fort Collins to Change the Application Filing Deadline for the City's Manufacturing Equipment Use Tax Rebate Program. This Ordinance, unanimously adopted on First Reading on October 20, 2015, amends City Code Section 25-65 to change the deadline for filing an application for the manufacturing equipment use tax rebate (MUTR) with the City from December 31st to June 30th. City of Fort Collins Page 4 6. Second Reading of Ordinance No. 133, 2015, Amending the Zoning Map of the City of Fort Collins by Changing the Zoning Classification for that Certain Property Known as the Houska Automotive Rezoning. This Ordinance, unanimously adopted on First Reading on October 20, 2015, rezones one parcel of land, 1005 Riverside Drive, near the southwest corner of the Riverside Drive and Lemay Avenue intersection. Existing zoning is N-C, Neighborhood Commercial District. Proposed zoning is C-L, Limited Commercial District. The parcel is 2.5 acres in size and is currently vacant. 7. Second Reading of Ordinance No. 134, 2015, Making Certain Amendments to Section 17-142 of the Code of the City of Fort Collins Related to Public Nudity. This Ordinance, unanimously adopted on First Reading on October 20, 2015, updates Section 17- 142 of the City Code to read as “Public Nudity” rather than “Public Indecency,” and maintains the current prohibition of the exposure of the female breast in public, excluding from this prohibition children under the age of ten and breastfeeding mothers. There has been a slight modification to the language between First and Second Reading. The words “areola and” have been added before the word “nipple”. 8. First Reading of Ordinance No. 135, 2015, Adopting the 2016 Budget and Appropriating the Fort Collins Share of the 2016 Fiscal Year Operating and Capital Improvement Funds for the Fort Collins- Loveland Municipal Airport. The 2016 annual operating budget for the Airport totals $931,890, and will be funded from Airport operating revenues, contributions from the Cities of Fort Collins and Loveland ($177,500 from each City), and interest earnings. This Ordinance appropriates the City of Fort Collins 50% share of the 2016 Airport budget, which totals $465,945. This Ordinance also appropriates the City’s 50% share of capital funds, totaling $83,334 for the Airport from Federal and State grants; contributions from Fort Collins and Loveland; and the Airport General Fund. The budgeted 2016 Airport capital funds, totaling $166,668, will be used to complete a major Airport improvement including the second phase of the construction of a snow removal equipment storage facility. 9. First Reading Ordinance No. 136, 2015, Appropriating Prior Year Reserves in the General Fund to Reimburse Custom Blending, Inc. For Use Taxes and Business Personal Property Taxes as Provided in the Business Investment Agreement. The purpose of this item is to appropriate $13,130 of prior year reserves in the General Fund for a rebate to Custom Blending for use tax and business personal property tax rebates under an agreement approved by City Council on August 20, 2013 (Resolution 2013-073). The Agreement provides business investment assistance for the expansion of Custom Blending’s manufacturing facility and investment in additional manufacturing equipment. Custom Blending has retained or created 63 primary jobs in the city. 10. First Reading of Ordinance No. 137, 2015, Authorizing the City Manager and the Mayor to Enter Into an Agreement Regarding the City Ditch, Including the Quit Claim of a Portion of the City Ditch and the Granting of an Updated Easement Across the Waterworks Property. The purpose of this item is to request approval of a proposed agreement between the City, the Larimer County Canal No. 2 Irrigating Company (“Ditch Company”), and The James S. Brinks Trust formed under the Trust Agreement dated November 30, 2007 (“Trust”), the quit claim of a portion of the City Ditch, the granting of an updated easement across the Waterworks property, and the City’s acquisition of carriage rights. City of Fort Collins Page 5 11. Resolution 2015-093 Finding Substantial Compliance and Initiating Annexation Proceedings for the Lodgepole Investments, LLC, Annexation. The purpose of this item is to initiate annexation proceedings for the Lodgepole Investments LLC properties, located 670 feet southwest of the intersection of I-25 and State Highway 392, addressed as 7795 and 7801 SW Frontage Road, Fort Collins, CO. The applicant, Lodgepole Investments, LLC has submitted a written petition requesting annexation of two properties and right-of-way, totaling 39.7 acres. The requested zoning for this annexation is G-C, General Commercial. The property is located within the Fossil Creek Reservoir Area Plan and the I-25/SH 392 Corridor Activity Center (CAC) overlay area. The requested zoning district is in compliance with the City of Fort Collins Structure Plan and the Fossil Creek Reservoir Area Plan. A specific project development plan proposal is not included with the annexation application. The proposed Resolution makes a finding that the petition substantially complies with the Municipal Annexation Act, determines that a hearing should be established regarding the annexation, and directs that notice be given of the hearing. The hearing will be held at the time of first reading of the annexation and zoning ordinances; not less than thirty days of prior notice is required by state law. 12. Resolution 2015-094 Approving and Adopting an Updated Energy Policy. ITEM WITHDRAWN The purpose of this item is to adopt the 2015 Energy Policy (Policy), presented to Council at the September 22, 2015 work session. The Policy will replace the existing 2009 Energy Policy. In alignment with Ordinance No. 098, 2011, the scope of the Policy has expanded from past versions to include various types of energy sources and end-uses delivered within the community, which include electricity, natural gas and transportation fuels. The Policy update was timed to allow for coordination with the Climate Action Plan Framework (CAP) and associated goals adopted by Council earlier in 2015. The Policy provides goals for the prioritization of decision making, programs and services related to the quantity of use and the energy sources for electricity, thermal end-uses and transportation. The Policy uses a systems approach to energy production and consumption, as well as triple bottom line metrics (economy, society, and environment) guiding City government in the development of plans promoting policy outcomes for residents, businesses and other type of organizations. 13. Resolution 2015-095 Approving the Bylaws of the Northern Colorado Regional Airport Commission. The purpose of this item is to adopt the bylaws governing the responsibilities and duties of the Northern Colorado Regional Airport Commission. 14. Resolution 2015-096 Authorizing the Execution of an Intergovernmental Agreement Between the City and the Colorado Department of Transportation for Construction of the Mulberry Street Bridge Across the Poudre River. The purpose of this item is to authorize the Mayor to execute an Intergovernmental Agreement (IGA) with the Colorado Department of Transportation (CDOT). This action will provide a repayment mechanism for City improvements currently being constructed by CDOT as part of the State Highway 14 Bridge over the Poudre River between Riverside and Lemay Avenue Project. All repayment funds associated with the IGA have been previously appropriated. Funds for the City’s urban design improvements were appropriated through Council actions (Ordinance Nos. 112, 2012 and 153, 2014). Repayment funds associated with the City of Fort Collins Wastewater Facility frontage improvements will be paid from City of Fort Collins Wastewater Funds and Street Oversizing Funds. Total funding amounts are as follows: Mulberry Bridge Urban Design Improvements Funds - $647,000 City of Fort Collins Page 6 City of Fort Collins General Transportation Funds - $75,000 City of Fort Collins Wastewater Funds - $318,000 Street Oversizing Funds - $70,000 Total Amount to be Repaid - $1,110,000 15. Resolution 2015-097 Designating a Voting Delegate and Alternate Delegate for National League of Cities Annual Business Meeting. The purpose of this item is to officially designate a voting delegate and alternate delegate who are eligible to vote on behalf of the City at the National League of Cities (NLC) annual business meeting. NLC bylaws afford voting rights at the annual business meeting to member communities based upon population. Delegates will vote on changes to NLC bylaws, election of members of the Board of Directors and member resolutions. END CONSENT CONSENT CALENDAR FOLLOW-UP This is an opportunity for Councilmembers to comment on items adopted or approved on the Consent Calendar. STAFF REPORTS COUNCILMEMBER REPORTS CONSIDERATION OF COUNCIL-PULLED CONSENT ITEMS Discussion Items The method of debate for discussion items is as follows: ● Mayor introduces the item number, and subject; asks if formal presentation will be made by staff ● Staff presentation (optional) ● Mayor requests citizen comment on the item (three minute limit for each citizen) ● Council questions of staff on the item ● Council motion on the item ● Council discussion ● Final Council comments ● Council vote on the item Note: Time limits for individual agenda items may be revised, at the discretion of the Mayor, to ensure all citizens have an opportunity to speak. Please sign in at the table in the back of the room. The timer will buzz when there are 30 seconds left and the light will turn yellow. It will buzz again at the end of the speaker’s time. 16. First Reading of Ordinance No. 138, 2015, Appropriating Prior Year Reserves in the General Fund for the Design of the Police Regional Training Facility. (staff: Cory Christensen; John Hutto; 15 minute staff presentation; 45 minute discussion) The purpose of this item is to seek adoption of the appropriation ordinance to fund the design phase of the Police Regional Training Facility. The request is for $810,000 and authorization for funding for the Fort Collins portion of the design phase. City of Fort Collins Page 7 17. First Reading of Ordinance No. 139, 2015, Being the Annual Appropriation Ordinance Relating to the Annual Appropriations for the Fiscal Year 2016; Amending the Budget for the Fiscal Year Beginning January 1, 2016, and Ending December 31, 2016; and Fixing the Mill Levy for Fiscal Year 2016. (staff: Lawrence Pollack, Darin Atteberry, Mike Beckstead; 10 minute staff presentation; 30 minute discussion) The purpose of this item is to amend the adopted 2016 Budget and set the amount of $563,376,909 to be appropriated for fiscal year 2016. Including the 2016 adopted budgets for the General Improvement District No. 1 (“GID No. 1”) of $193,877, the Skyview General Improvement District No. 15 (“GID No. 15”) of $1,000, and the revised Urban Renewal Authority (URA) budget of $2,889,600, the total City appropriations amount to $566,461,386. The Net City Budget, which excludes the GID No.1, GID No. 15, URA, and internal transfers between City funds, is $448,374,933 for 2016. 18. Items Relating to Utility Rates, Fees and Charges for 2016. (staff: Randy Reuscher, Lance Smith; 10 minute staff presentation; 20 minute discussion) A. First Reading of Ordinance No. 140, 2015, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Electric Rates, Fees and Charges. B. First Reading of Ordinance No. 141, 2015, Amending Chapter 26 of the Code of the City of Fort Collins Regarding Calculation and Collection of Development Fees imposed for New or Modified Electric Service Connections. C. First Reading of Ordinance No. 142, 2015, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Water Rates, Fees and Charges. D. First Reading of Ordinance No. 143, 2015, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Water Plant Investment Fees. E. First Reading of Ordinance No. 144, 2015, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Wastewater Rates, Fees and Charges. (Option A or Option B) F. First Reading of Ordinance No. 145, 2015, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Sewer Plant Investment Fees. G. First Reading of Ordinance No. 146, 2015, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Stormwater Plant Investment Fees. The purpose of this item is for Council to consider adopting rate changes for electric and wastewater rates, and electric capacity fees, water plant investment fees (PIFs), wastewater PIFs and stormwater PIFs, along with other Code clarifications and formatting changes. City of Fort Collins Page 8 19. Resolution 2015-098 Directing City Staff to Participate in the Ongoing Colorado Oil and Gas Commission Rulemaking Related to the Governor's Oil and Gas Taskforce Recommendations 17 and 20 Endorsing and Adopting the Prehearing Statement Prepared by the City. (staff: Dan Weinheimer; 10 minute staff presentation; 45 minute discussion) The purpose of this item is to consider a prehearing statement and provide staff direction for the Colorado Oil and Gas Conservation Commission rulemaking. CONSIDERATION OF CITIZEN-PULLED CONSENT ITEMS OTHER BUSINESS A. Possible consideration of the initiation of new ordinances and/or resolutions by Councilmembers (Three or more individual Councilmembers may direct the City Manager and City Attorney to initiate and move forward with development and preparation of resolutions and ordinances not originating from the Council's Policy Agenda or initiated by staff.) ADJOURNMENT A. Council will consider a motion to adjourn to 6:00 p.m., Tuesday, November 10, 2015. Every Council meeting will end no later than 10:30 p.m., except that: (1) any item of business commenced before 10:30 p.m. may be concluded before the meeting is adjourned and (2) the City Council may, by majority vote, extend a meeting until no later than 12:00 a.m. for the purpose of considering additional items of business. Any matter which has been commenced and is still pending at the conclusion of the Council meeting, and all matters scheduled for consideration at the meeting which have not yet been considered by the Council, will be continued to the next regular Council meeting and will be placed first on the discussion agenda for such meeting. PROCLAMATION WHEREAS, music, the universal language of peace, is one of the great arts and an outstanding feature of our culture; and WHEREAS, the National Federation of Music Clubs, having as a foremost objective, the promotion of American Music, will stage its annual Parade of American Music throughout the month of November; and WHEREAS, the Colorado Federation of Music Clubs and the Fort Collins Music Club join in encouraging and stimulating interest in American music and the enjoyment and appreciation thereof; and WHEREAS, the Parade of American Music is designed to give our own worthy United States composers recognition, encouragement and support, and to impress upon the public of the United States that it has creative as well as performing musical artists and a musical culture equal to that of other countries. NOW, THEREFORE, I, Wade Troxell, Mayor of the City of Fort Collins, in recognition of the American Composer and in order to encourage native creative musical art, do hereby proclaim November 2015 as AMERICAN MUSIC MONTH and I urge all our citizens to join in the observance and share the joy of music. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort Collins this 3rd day of November, A.D. 2015. __________________________________ Mayor ATTEST: _________________________________ City Clerk Packet Pg. 9 PROCLAMATION WHEREAS, we, as citizens of this community, recognize the worldwide problem of violence against women occurs even here in Fort Collins; and WHEREAS, gender violence is traumatic to the body, mind, and spirit and can prevent people from being fully active participants at home and in the world; and WHEREAS, gender violence costs the nation billions of dollars annually in medical expenses, police and court costs, shelters and foster care, sick leave, absenteeism and non- productivity; and WHEREAS, in spite of some progress, we need only to look at our newspapers or watch a television newscast to see the unfortunate truth that gender violence has not yet been eliminated here or around the world; and WHEREAS, we support efforts of individuals and organizations to raise awareness, stimulate discussion, and advocate for local solutions that will curb gender violence; and WHEREAS, the right of women and men to be free of violence is a fundamental human right. NOW THEREFORE, I, Wade Troxell, Mayor of the City of Fort Collins, do hereby proclaim November 25-December 10 as 16 DAYS OF ACTIVISM AGAINST GENDER VIOLENCE and urge citizens to support work to end gender violence and to eliminate the detrimental consequences gender violence has on the well-being of our community. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort Collins this 3rd day of November, A.D. 2015. __________________________________ Mayor ATTEST: _________________________________ City Clerk Packet Pg. 10 PROCLAMATION WHEREAS, geography education will be incorporated in classrooms and lessons throughout the country, increasing the geo-literacy of students nationwide; and WHEREAS, the focus on “Explore! The Power of Maps” this year will encourage learning about the Colorado cultural, political, and physical landscapes and our interdependence and interconnection to the world beyond our state’s and nation’s borders; and WHEREAS, geography education bolsters core social studies, science, and technology literacy in our elementary and secondary students by featuring grade-appropriate geography literacy goals and content standards; and WHEREAS, geography education will encourage schools and colleges to partner with local museums, governments, nature centers, science centers; and WHEREAS, geography education also prepares young people to deal with the challenges that they will face in their civic lives, as our society witnesses globalization, military and political conflicts, community development, increasing global population, climate change, availability of natural resources and energy, and other issues; and WHEREAS, Geography Awareness Week, coordinated by the National Geographic Society, in cooperation with state geographic alliances, education associations, and agencies will become an annually anticipated event for local participation in schools and various education centers in Fort Collins during the third week of November. NOW, THEREFORE, I, Wade Troxell, Mayor of the City of Fort Collins do hereby proclaim November 15 through November 21, 2015 as GEOGRAPHY AWARENESS WEEK in Fort Collins and urge all citizens to recognize and participate in this special observance. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort Collins this 3rd day of November, A.D. 2015. __________________________________ Mayor ATTEST: _________________________________ City Clerk Packet Pg. 11 PROCLAMATION WHEREAS, the global charity Movember Foundation’s vision is to have an everlasting impact on the face of men’s health; and WHEREAS, the Movember community of over 5 million men and women have raised over $650 million, funding over 1000 programs in 21 countries – this work is saving and improving the lives of men affected by prostate cancer, testicular cancer and mental health problems; and WHEREAS, 1 in 7 men will be diagnosed with prostate cancer in his lifetime and treatment options for prostate cancer vary depending on a man’s age, stage and grade of his cancer, as well as his other existing medical conditions; and WHEREAS, testicular cancer is the most common cancer in males between the ages of 15 and 34: and WHEREAS, 1 in 4 adults in the U.S. will experience a mental health problem in any given year and 87 men in the U.S. die by suicide every day; and WHEREAS, “MOVING” can reduce your risk of heart disease, diabetes, and cancer by up to 50% and lower your risk of early death by up to 30%; and WHEREAS, Fort Collins joins communities across our nation to challenge men to grow and women to support a moustache or to make a commitment to get active and MOVE, both of which spark conversations and raise vital funds and awareness for men’s health. NOW, THEREFORE, I, Wade Troxell, Mayor of the City of Fort Collins, do hereby designate November 2015 as the MONTH OF MOVEMBER and urge all members of our community to join in recognizing this significant occasion and join the movement to change the face of men’s health. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort Collins this 3rd day of November, A.D. 2015. __________________________________ Mayor ATTEST: _________________________________ City Clerk Packet Pg. 12 Agenda Item 1 Item # 1 Page 1 AGENDA ITEM SUMMARY November 3, 2015 City Council STAFF Matt Robenalt, Executive Director Jennifer Hensley, Finance Coordinator SUBJECT Second Reading of Ordinance No. 128, 2015, Being the Annual Appropriation Ordinance for the Fort Collins Downtown Development Authority Relating to the Annual Appropriations for the Fiscal Year 2016 and Fixing Mill Levy for the Downtown Development Authority for Fiscal Year 2016. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on October 20, 2015, sets the Downtown Development Authority (DDA) Budget. The following amounts will be appropriated: DDA Public/Private Investments & Programs $ 725,394 DDA Operations & Maintenance $ 791,717 Revolving Line of Credit Draws $ 2,100,000 DDA Debt Service Fund $ 4,521,012 The Ordinance sets the 2016 Mill Levy for the Fort Collins DDA at five (5) mills, unchanged since tax year 2002. The approved Budget becomes the Downtown Development Authority’s financial plan for 2016. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, October 20, 2015 (w/o attachments) (PDF) 2. Ordinance No. 128, 2015 (PDF) 1 Packet Pg. 13 Agenda Item 7 Item # 7 Page 1 AGENDA ITEM SUMMARY October 20, 2015 City Council STAFF Matt Robenalt, Executive Director Jennifer Hensley, Finance Coordinator SUBJECT First Reading of Ordinance No. 128, 2015, Being the Annual Appropriation Ordinance for the Fort Collins Downtown Development Authority Relating to the Annual Appropriations for the Fiscal Year 2016 and Fixing Mill Levy for the Downtown Development Authority for Fiscal Year 2016. EXECUTIVE SUMMARY The purpose of this item is to set the Downtown Development Authority (“DDA”) Budget. The following amounts will be appropriated: DDA Public/Private Investments & Programs $ 725,394 DDA Operations & Maintenance $ 791,717 Revolving Line of Credit Draws $ 2,100,000 DDA Debt Service Fund $ 4,521,012 The Ordinance sets the 2016 Mill Levy for the Fort Collins DDA at five (5) mills, unchanged since tax year 2002. The approved Budget becomes the Downtown Development Authority’s financial plan for 2016. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The DDA was created in 1981 with the purpose, according to Colorado state statue, of planning and implementing projects and programs within the boundaries of the DDA. By state statue the purpose of the ad valorem tax levied on all real and personal property in the downtown development district, not to exceed five (5) mills, shall be for the budgeted operations of the authority. The DDA and the City adopted a Plan of Development that specifies the projects and programs the DDA would undertake. In order to carry out the purposes of the State statue and the Plan of Development the City, on behalf of the DDA, has issued various tax increment bonds, which require debt servicing. CITY FINANCIAL IMPACTS The DDA is requesting approval of the DDA Public/Private Investments and Programs budget for fiscal year 2016 in the amount of $725,394 and DDA Operations and Maintenance budget for fiscal year 2016 in the amount of $791,717. It is requesting appropriation of up to $2,100,000 for the 2016 Line of Credit draws. It is also requesting approval of the DDA debt payment commitments in the amount of $4,521,012 for 2016 obligations. ATTACHMENT 1 1.1 Packet Pg. 14 Attachment: First Reading Agenda Item Summary, October 20, 2015 (w/o attachments) (3690 : SR 128 DDA Budget) Agenda Item 7 Item # 7 Page 2 Uses: Alley Operations $ 95,143 Warehouse Operations 137,430 Façade Grant Program 105,669 Old Town Square Operations 295,731 Other Public/Private Investments & Programs 91,421 Total $ 725,394 The 2016 Operations and Maintenance budget is projected as follows: Uses: Personnel Services $ 468,110 Contractual Professional Services 276,855 Purchased Supplies and Commodities 27,397 Other 19,355 Total $ 791,717 The 2016 Line of Credit draws, whose debt service payment will be made from the debt service fund, is projected to fund up to $2,100,000. Uses: Museum of Discovery – 2016 Payment $ 500,000 Multi-Year Reimbursement Payments 302,352 Whitewater Park Commitment 27,300 Capital Asset Maintenance Obligations 131,000 Future Public/Private Investments & Programs 1,139,348 Total $2,100,000 The DDA debt service fund is projected to have sufficient revenue to meet the required debt service payments for 2016. Uses: Debt Payment: 2016 $4,521,012 BOARD / COMMISSION RECOMMENDATION At its October 8, 2015 meeting, the Downtown Development Authority Board of Directors adopted its proposed budget for 2016 totaling $8,138,123 and determined the mill levy necessary to provide for payment of administrative costs incurred by the DDA. ATTACHMENTS 1. DDA Boundary map (PDF) 2. DDA Resolution 2015-06, Determining and Fixing the Mill Levy (PDF) 3. DDA Resolution 2015-07, Determining and Recommending the 2016 Budget (PDF) 4. DDA Resolution 2015-08 Appropriation of the 2016 Line of Credit Draw Service (PDF) 5. DDA Resolution 2015-09, Appropriation for Debt Service (PDF) 6. DDA Resolution 2015-10, Appropriation of amounts required to pay Public/Private Investments and Programs (PDF) 1.1 Packet Pg. 15 Attachment: First Reading Agenda Item Summary, October 20, 2015 (w/o attachments) (3690 : SR 128 DDA Budget) - 1 - ORDINANCE NO. 128, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS BEING THE ANNUAL APPROPRIATION ORDINANCE FOR THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY RELATING TO THE ANNUAL APPROPRIATIONS FOR THE FISCAL YEAR 2016 AND FIXING THE MILL LEVY FOR THE DOWNTOWN DEVELOPMENT AUTHORITY FOR FISCAL YEAR 2016 WHEREAS, the Fort Collins Downtown Development Authority (the “DDA”) has been duly organized in accordance with the C.R.S. Section 31-25-804; and WHEREAS, on October 8, 2015, the DDA Board of Directors (the “DDA Board”), acting under the provisions of C.R.S. Section 31-25-816, adopted a budget for the fiscal year beginning January 1, 2016, and determined the mill levy necessary to provide for payment during fiscal year 2016 of properly authorized operational and maintenance expenditures to be incurred by the DDA; and WHEREAS, it is the desire of the Council to appropriate the sum of EIGHT MILLION ONE HUNDRED THIRTY-EIGHT THOUSAND ONE HUNDRED TWENTY-THREE DOLLARS ($8,138,123) from the DDA Operation and Maintenance Fund and the DDA Debt Service Fund for the fiscal year beginning January 1, 2016 and ending December 31, 2016, to be used as follows: DDA Public/Private Investments & Programs (O&M Fund) $ 725,394 DDA Operations & Maintenance (O&M Fund) 791,717 2016 Revolving Line of Credit Draws 2,100,000 DDA Debt Service Fund 4,521,012 Total $8,138,123 WHEREAS, the DDA Board has recommended to the Council that pursuant to C.R.S. Section 31-25-817 the Council set a mill levy of five (5) mills upon each dollar of assessed valuation on all taxable property within the DDA District, such levy representing the amount of taxes necessary to provide for payment during the ensuing fiscal year for all properly authorized operational and maintenance expenditures to be incurred by the DDA; and WHEREAS, C.R.S. Section 39-5-128(1) requires certification of any tax levy to the Larimer County Board of County Commissioners no later than December 15, 2015. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS, as follows: Section 1. That there is hereby appropriated for fiscal year 2016 for expenditure from DDA Operation and Maintenance Fund for the Downtown Development Authority Public/Private Investments and Programs the sum of SEVEN HUNDRED TWENTY-FIVE THOUSAND THREE HUNDRED NINETY-FOUR DOLLARS ($725,394), to be expended for the authorized purposes of the DDA. That there is also hereby appropriated for fiscal year 2016 for expenditure from the DDA Operation and Maintenance Fund for the Downtown 1.2 Packet Pg. 16 Attachment: Ordinance No. 128, 2015 (3690 : SR 128 DDA Budget) - 2 - Development Authority Operations and Maintenance the sum of SEVEN HUNDRED NINETY ONE THOUSAND SEVEN HUNDRED SEVENTEEN DOLLARS ($791,717), to be expended for the authorized purposes of the DDA. Section 2. That there is hereby appropriated for fiscal year 2016 for expenditure from the Downtown Development Authority 2016 Line of Credit draws the sum of up to TWO MILLION ONE HUNDRED THOUSAND DOLLARS ($2,100,000), to be used to finance DDA projects or programs in accordance with the DDA Plan of Development including the 2016 Museum of Discovery payment, multi-year reimbursement payments, Whitewater Park commitment, and capital asset maintenance obligations. Section 3. That there is hereby appropriated for fiscal year 2016 for expenditure from the Downtown Development Authority Debt Service Fund the sum of FOUR MILLION FIVE HUNDRED TWENTY ONE THOUSAND TWELVE DOLLARS ($4,521,012), for payment of debt service on previously issued and outstanding bonds, to pay the City’s investment service charge, for payment on the 2016 Line of Credit draws, and to be used to cover the DDA’s one- third share of payment on the Civic Center Parking Structure. Section 4. That the DDA’s 2016 mill levy rate for the taxation upon each dollar of the assessed valuation of all taxable property within the DDA District as of December 31, 2015 shall be five (5) mills, which levy represents the amount of taxes necessary to provide for payment during fiscal year 2016 of all properly authorized expenditures to be incurred by the DDA. Said mill levy shall be certified to the County Assessor and the Board of County Commissioners of Larimer County, Colorado, by the City Clerk as provided by law. Introduced, considered favorably on first reading, and ordered published this 20th day of October, A.D. 2015, and to be presented for final passage on the 3rd day of November, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 3rd day of November, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk 1.2 Packet Pg. 17 Attachment: Ordinance No. 128, 2015 (3690 : SR 128 DDA Budget) Agenda Item 2 Item # 2 Page 1 AGENDA ITEM SUMMARY November 3, 2015 City Council STAFF Matt Robenalt, Executive Director Jennifer Hensley, Finance Coordinator SUBJECT Second Reading of Ordinance No. 129, 2015, Appropriating Prior Year Reserves in the Downtown Development Authority Fund for Expenditure on Projects and Programs in Fiscal Year 2015 in Accordance with the Downtown Plan of Development. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on October 20, 2015, appropriates unanticipated revenue from interest earnings in the amount of $13,508 and from project savings in the amount of $63,836 for a total appropriation of $77,344 for use by the Downtown Development Authority. The Downtown Development Authority Board has authorized the expenditure of these funds for various DDA projects and programs in fiscal year 2015. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, October 20, 2015 (w/o attachments) (PDF) 2. Ordinance No. 129, 2015 (PDF) 2 Packet Pg. 18 Agenda Item 8 Item # 8 Page 1 AGENDA ITEM SUMMARY October 20, 2015 City Council STAFF Matt Robenalt, Executive Director Jennifer Hensley, Finance Coordinator SUBJECT First Reading of Ordinance No. 129, 2015, Appropriating Prior Year Reserves in the Downtown Development Authority Fund for Expenditure on Projects and Programs in Fiscal Year 2015 in Accordance with the Downtown Plan of Development. EXECUTIVE SUMMARY The purpose of this item is to appropriate unanticipated revenue from interest earnings in the amount of $13,508 and from project savings in the amount of $63,836 for a total appropriation of $77,344. The Downtown Development Authority (“DDA”) Board has authorized the expenditure of these funds for various DDA projects and programs in fiscal year 2015. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The DDA was created in 1981 with the purpose, according to State statute, of planning and implementing projects and programs within the boundaries of the DDA. The DDA and City adopted a Plan of Development that specifies the projects and programs the DDA would undertake. In order to carry out the purposes of the State statute and the Plan of Development, the City, on behalf of the DDA, has issued various notes and tax increment bonds. The first issuance of tax increment bonds occurred in 1984 with subsequent issues through 2012. Over the past year, proceeds from DDA TIF revenues that have been appropriated but not spent have accumulated interest earnings. These funds, as well as the project savings, need to be appropriated by City Council for expenditure in fiscal year 2015. The amount of interest earnings to be appropriated at this time is $13,508 and project savings is $63,836. The subject funds of this appropriation have been directed by the DDA Board for the following purposes: 1. Old Town Square Maintenance: The DDA utilizes the City Parks Department for plaza maintenance through an IGA covering fountain upkeep, pressure washing, trash removal, and spring planting among other routine maintenance items. Funding for the Square’s maintenance is a three-way partnership between the DDA, City, and Progressive Old Town Square - the entity owning a majority of the buildings touching the public plaza. 2. Holiday Lights - 2015/2016 Season: The holiday lights program is a successful partnership between the City, DDA, and DBA which features a larger, enhanced display that has been in place since the 2012/2013 season due to this collaborative effort. ATTACHMENT 1 2.1 Packet Pg. 19 Attachment: First Reading Agenda Item Summary, October 20, 2015 (w/o attachments) (3689 : SR 129 DDA Appropriation) Agenda Item 8 Item # 8 Page 2 All of the projects and programs listed for funding through this appropriation have been approved by the DDA Board of Directors. All approvals by the DDA Board are made contingent upon City Council appropriation of these funds to fulfill the DDA’s commitment to the projects and programs. CITY FINANCIAL IMPACTS The DDA Board has authorized expenditure on the following projects and programs in fiscal year 2015 which will be funded with this appropriation: 1. Old Town Square Maintenance $42,344 2. Holiday Lights - 2015/2016 Season 35,000 $77,344 BOARD / COMMISSION RECOMMENDATION At its April 9 and August 13, 2015 meetings, the Downtown Development Authority Board of Directors approved the appropriation of funds as stated above. ATTACHMENTS 1. DDA Boundary map (PDF) 2. DDA minutes, April 9, 2015 (PDF) 3. DDA minutes, August 13, 2015 (PDF) 4. DDA Resolution 2015-03 (PDF) 2.1 Packet Pg. 20 Attachment: First Reading Agenda Item Summary, October 20, 2015 (w/o attachments) (3689 : SR 129 DDA Appropriation) - 1 - ORDINANCE NO. 129, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE DOWNTOWN DEVELOPMENT AUTHORITY FUND FOR EXPENDITURE ON PROJECTS AND PROGRAMS IN FISCAL YEAR 2015 IN ACCORDANCE WITH THE DOWNTOWN PLAN OF DEVELOPMENT WHEREAS, on April 21, 1981, the City adopted Ordinance No. 046, 1981, establishing the Fort Collins, Colorado Downtown Development Authority (the “DDA”); and WHEREAS, the DDA’s Plan of Development was approved by the City Council on September 8, 1981, and established the purpose of the DDA and the types of projects and programs in which the DDA would participate; and WHEREAS, bond proceeds received from City bonds issued on behalf of the DDA in 2008 and 2010 have accrued interest earnings in the amount of $13,508; and WHEREAS, DDA staff has also identified project savings of $63,836 from bond proceeds currently in reserves; and WHEREAS, on April 9, 2015, and August 13, 2015, the DDA’s Board of Directors voted to recommend to the City Council the appropriation of the above-referenced funds for expenditure on DDA projects and programs as hereinafter provided in fiscal year 2015; and WHEREAS, said projects and programs are authorized in the Downtown Plan of Development and are projects and programs that can be funded with these bond proceeds and with this interest that has accrued from bond proceeds; and WHEREAS, Article V, Section 9, of the City Charter permits the City Council to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriations, in combination with all previous appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, City staff has determined that the appropriation of the anticipated revenue as described herein will not cause the total amount appropriated in the DDA Fund to exceed the current estimate of actual and anticipated revenues to be received in that fund during fiscal year 2015. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated for expenditure from reserves in the DDA Fund the sum of SEVENTY SEVEN THOUSAND THREE HUNDRED FORTY-FOUR DOLLARS ($77,344) to be used in fiscal year 2015 for the DDA projects and programs stated below: 2.2 Packet Pg. 21 Attachment: Ordinance No. 129, 2015 (3689 : SR 129 DDA Appropriation) - 2 - Old Town Square Maintenance $42,344 Holiday Lights – 2015/2016 Season 35,000 Total Projects/Programs $77,344 Introduced, considered favorably on first reading, and ordered published this 20th day of October, A.D. 2015, and to be presented for final passage on the 3rd day of November, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 3rd day of November, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk 2.2 Packet Pg. 22 Attachment: Ordinance No. 129, 2015 (3689 : SR 129 DDA Appropriation) Agenda Item 3 Item # 3 Page 1 AGENDA ITEM SUMMARY November 3, 2015 City Council STAFF Karl Gannon, Financial Analyst SUBJECT Second Reading of Ordinance No. 130, 2015, Appropriating Prior Year Reserves in the Transit Services Fund and Prior Year Reserves in the Transportation Fund and Authorizing the Transfer of Appropriations into the Capital Projects Fund and Appropriating Therein for the Mason Corridor Project for the Purchase of Two Rapid Transit Buses. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on October 20, 2015, appropriates and transfers $1,473,887 to help pay for two recently-delivered Bus Rapid Transit (BRT) 60-foot Compressed Natural Gas (CNG) buses for MAX. The total cost for the two buses is $1,734,598 and the balance will be paid from an existing Capital Projects Fund appropriation of $260,711. The requested funding sources and amounts are as follows: Transportation Fund Reserves in the amount of $741,288; and Transit Fund Reserves in the amount of $732,599. The appropriated amounts will then be transferred to the Capital Projects Fund. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, October 20, 2015 (w/o attachments) (PDF) 2. Ordinance 130, 2015 (PDF) 3 Packet Pg. 23 Agenda Item 9 Item # 9 Page 1 AGENDA ITEM SUMMARY October 20, 2015 City Council STAFF Karl Gannon, Financial Analyst SUBJECT First Reading of Ordinance No. 130, 2015, Appropriating Prior Year Reserves in the Transit Services Fund and Prior Year Reserves in the Transportation Fund and Authorizing the Transfer of Appropriations into the Capital Projects Fund and Appropriating Therein for the Mason Corridor Project for the Purchase of Two Rapid Transit Buses. EXECUTIVE SUMMARY The purpose of this item is to request appropriations and transfers in the amount of $1,473,887 to help pay for two recently-delivered Bus Rapid Transit (BRT) 60-foot Compressed Natural Gas (CNG) buses for MAX. The total cost for the two buses is $1,734,598 and the balance will be paid from an existing Capital Projects Fund appropriation of $260,711. The requested funding sources and amounts are as follows: Transportation Fund Reserves in the amount of $741,288; and Transit Fund Reserves in the amount of $732,599. The appropriated amounts would then be transferred to the Capital Projects Fund. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION Two additional MAX buses were purchased in September 2014 to meet immediate and future service demand. Available federal and local funds within the existing MAX Capital Project appropriation were utilized to issue the Purchase Order. Following the purchase of the two buses the Federal Transit Administration retracted its approval to utilize federal funds for this purchase. Transfort is now needs to appropriate MAX Local Project Funds, Transit and Transportation Reserve funds to pay the bus manufacturer for the two BRT buses delivered in August 2015. The original MAX operating plan and fleet management plan identified a need for five buses in peak service to provide a 10 minute frequency and one bus as a spare (total of six) for training, scheduled and unscheduled maintenance. After the MAX Guideway was constructed it became clear that the originally-projected travel time of 20 minutes could not be met utilizing five buses in peak service as originally planned. In practice, bus operators were taking as long as 30 minutes to travel the Guideway. There were various reasons for the longer travel times, but the primary issue was slower travel times through major intersections than had been anticipated. Consequently, two additional buses were added to the operations (the one dedicated MAX spare bus and one non-Bus Rapid Transit Bus) in order to meet the frequency of service required by the Project Construction Grant Agreement (PCGA). The PCGA is the official contract between the City and the FTA for the MAX project. The PCGA set forth the scope of the undertaking of the project as well as the budgeted funding amounts across a number of expense classification codes. When all six specially designed BRT buses were put into service, plus one additional non-BRT bus, there were no spare vehicles designed for BRT operations. Transfort staff informed Federal Transit Administration (FTA) of this issue and made an eligibility request to purchase two additional BRT buses with remaining federal MAX project funds to provide an adequate spare ratio. On September 5, 2014, the FTA sent a letter of concurrence ATTACHMENT 1 3.1 Packet Pg. 24 Attachment: First Reading Agenda Item Summary, October 20, 2015 (w/o attachments) (3691 : SR 130 BRT Bus) Agenda Item 9 Item # 9 Page 2 to the City, allowing for the purchase of up to three more buses. After receiving the letter of concurrence from FTA the City entered into an agreement with NABI (bus manufacturer) to purchase two additional BRT buses within two weeks of receipt of the FTA letter. Shortly after the purchase of the two additional BRT buses, FTA contacted Transfort to express concern that the City may not be eligible for additional bus funding. This questioning was unexpected as staff thought this funding arrangement was very clear in the Financial Management Plan, as well as the justification used by FTA themselves to allow the purchase of the two additional buses. FTA informed staff that its concern stemmed from the fact that the PCGA’s budget referenced the six bus requirement as being funded at an 80% level with federal funds and not at the 50% level as stated in the Financial Management Plan. At the time, it was presupposed that a routine PCGA budget revision of the federal allocation would amend the oversight. In April 2015 the FTA notified Transfort that the two additional BRT buses purchased would not be eligible for federal funds within the MAX project due to the above referenced reasoning, and that FTA needed to retain 80% interest in all six of the original buses purchased for MAX. FTA could not authorize a revision to the PCGA without authorization from Congress. FTA staff does not recommend asking Congress for a revision such as this. Therefore, staff is requesting a new appropriation of non-Federal funds to purchase the BRT buses as the buses are essential for MAX operations. CHRONOLOGY OF EVENTS 11/2008 – Submittal of Fleet Management Plan to the FTA – Bus Requirements Projected December 2010–Submittal of Finance Management Plan to the FTA – Contained Details of the City’s Local Match for MAX Project – Reference to 3 of 6 Buses Being Funded via State Grants September 2012–The FTA Approved Full Funding for the MAX Project via the Project Construction Grant Agreement – Federal Match for 6 Buses at 80% not 50% May 2014-MAX Service Begins Staff Projection – 5 Buses Required for Peak Service Actual – 7 Buses Required for Peak Service September 2014–FTA Concurrence Received to Purchase 3 Additional Buses September 2014–2 Buses Ordered from Manufacturer November 2014–FTA Voiced Concerns over Eligibility of State-Funded Buses in Project April 2015–Notified by FTA that Additional 2 Bus Order was not Eligible for Federal Funding July 2015–Notified by FTA that State-Funded Buses Required 80% Federal Interest August 2015–Asked CDOT to Subordinate their 80% Interest in 3 Buses for 20% Interest in 6 Buses (Pending) August 2015–Buses Received from Manufacturer - Payment Due Within 30 Days after Acceptance CITY FINANCIAL IMPACTS The cost of the two BRT buses will be allocated among two separate City Funds and the MAX project. Funding Summary: $ 732,599 Fund 290 - Transit Fund Reserves 741,288 Fund 292 - Transportation Fund Reserves $1,473,887 260,711 Existing appropriation $1,734,598 Total cost of the 2 BRT buses The two buses will be owned by the City and will have a minimum service life of 12 years. 3.1 Packet Pg. 25 Attachment: First Reading Agenda Item Summary, October 20, 2015 (w/o attachments) (3691 : SR 130 BRT Bus) - 1 - ORDINANCE NO. 130, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE TRANSIT SERVICES FUND AND PRIOR YEAR RESERVES IN THE TRANSPORTATION FUND AND AUTHORIZING THE TRANSFER OF APPROPRIATIONS INTO THE CAPITAL PROJECTS FUND AND APPROPRIATING THEREIN FOR THE MASON CORRIDOR PROJECT FOR THE PURCHASE OF TWO RAPID TRANSIT BUSES WHEREAS, the MAX transit system project (MAX) is a five-mile, north-south byway extending from Cherry Street to just south of Harmony Road; and WHEREAS, MAX includes seven park-n-ride lots, eight stations with pedestrian and bicycle access, eight curb-side stops, and two transit centers; and WHEREAS, six buses were acquired to provide the MAX services; and WHEREAS, the six buses are all utilized for service leaving no spare vehicles and City staff has determined that two additional buses are needed to provide an adequate spare ratio; and WHEREAS, the total cost of the two buses is $1,734,598 of which $732,599 will be funded by prior year reserves in the Transit Services Fund and authorized for transfer into the Capital Projects Fund and appropriated therein for the Mason Corridor Project and $741,288 will be funded by prior year reserves in the Transportation Fund and authorized for transfer into the Capital Projects Fund and appropriated therein for the Mason Corridor Project; and WHEREAS, the appropriation from the Transportation Fund is in accordance with the provisions of Fort Collins City Code Section 8-57; and WHEREAS, existing appropriations of $260,711 in the Capital Projects Fund, Mason Corridor Project will complete the funding; and WHEREAS, Article V, Section 9, of the City Charter permits the City Council to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriations, in combination with all previous appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, Article V, Section 10, of the City Charter authorizes the City Council to transfer by ordinance any unexpended and unencumbered appropriated amount or portion thereof from one fund or capital project account to another fund or capital project account, provided that the purpose for which the transferred funds are to be expended remains unchanged. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: 3.2 Packet Pg. 26 Attachment: Ordinance 130, 2015 (3691 : SR 130 BRT Bus) - 2 - Section 1. The foregoing recitals are adopted by reference as findings of fact as if expressly set forth herein. Section 2. That there is hereby appropriated for expenditure from prior year reserves in the Transit Services Fund the sum of SEVEN HUNDRED THIRTY TWO THOUSAND FIVE HUNDRED NINTY-NINE DOLLARS ($732,599) and authorized for transfer to the Capital Projects Fund and appropriated therein for the Mason Corridor Project for the additional buses. Section 3. That there is hereby appropriated for expenditure from prior year reserves in the Transportation Fund the sum of SEVEN HUNDRED FORTY ONE THOUSAND TWO HUNDRED EIGHTY-EIGHT DOLLARS ($741,288) and authorized for transfer to the Capital Projects Fund pursuant to City Code Section 8-57(c), and appropriated therein for the Mason Corridor Project for the additional buses. It is the City Council’s intent that these appropriated funds be used for additional buses as described in this Ordinance notwithstanding any provisions to the contrary in City Code Chapter 8. Introduced, considered favorably on first reading, and ordered published this 20th day of October, A.D. 2015, and to be presented for final passage on the 3rd day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on this 3rd day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk 3.2 Packet Pg. 27 Attachment: Ordinance 130, 2015 (3691 : SR 130 BRT Bus) Agenda Item 4 Item # 4 Page 1 AGENDA ITEM SUMMARY November 3, 2015 City Council STAFF Peggy Streeter, Senior Sales Tax Auditor Mike Beckstead, Chief Financial Officer SUBJECT Second Reading of Ordinance No. 131, 2015, Amending Section 25-75(a) of the Code of the City of Fort Collins to Extend the Expiration Date of the City's 0.25% Street Maintenance Sales and Use Tax as Approved by the Voters at the City's April 7, 2015, Regular Election and to Correct an Error in the Expiration Date of the City's 0.85% Sales and Use Tax Increase Approved by the Voters at the City's November 2, 2010, Special Election. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on October 20, 2015 amends Section 25-75(a) of the City Code to reflect the appropriate tax expirations dates as approved by the electors. The expiration date of the street maintenance tax will reflect the extension to December 31, 2025. The expiration date for the Keep Fort Collins Great (KFCG) tax increase of .85% needs to be corrected to December 30, 2020. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, October 20, 2015 (w/o attachments) (PDF) 2. Ordinance No. 131, 2015 (PDF) 4 Packet Pg. 28 Agenda Item 10 Item # 10 Page 1 AGENDA ITEM SUMMARY October 20, 2015 City Council STAFF Peggy Streeter, Senior Sales Tax Auditor Mike Beckstead, Chief Financial Officer SUBJECT First Reading of Ordinance No. 131, 2015, Amending Section 25-75(a) of the Code of the City of Fort Collins to Extend the Expiration Date of the City's 0.25% Street Maintenance Sales and Use Tax as Approved by the Voters at the City's April 7, 2015, Regular Election and to Correct an Error in the Expiration Date of the City's 0.85% Sales and Use Tax Increase Approved by the Voters at the City's November 2, 2010, Special Election. EXECUTIVE SUMMARY The purpose of this item is to amend Section 25-75(a) of the City Code to reflect the appropriate tax expirations dates as approved by the electors. The expiration date of the street maintenance tax needs to reflect the extension to December 31, 2025. The expiration date for the Keep Fort Collins Great (KFCG) tax increase of .85% needs to be corrected to December 30, 2020. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION Street Maintenance Tax Expiration Date In April 2015, the electors of the City approved the extension of the .25% street maintenance tax from December 31, 2015, to December 31, 2025. Section 25-75(a) of the Fort Collins City Code needs to be amended to reflect the approved change. Keep Fort Collins Great (KFCG) Expiration Date In November 2010, the electors of the City approved a tax increase of .85% with an expiration date of December 31, 2020. When codified in Section 25-75(a), the expiration date was inadvertently listed as December 31, 2021. Section 25-75(a) of the Fort Collins City Code needs to be amended to reflect the expiration date of December 31, 2020. BOARD / COMMISSION RECOMMENDATION The proposal to amend City Code was presented to the Council Finance Committee (CFC) on September 21, 2015. CFC supported the proposed changes. ATTACHMENTS 1. Council Finance Committee minutes, September 21, 2015 (PDF) ATTACHMENT 1 4.1 Packet Pg. 29 Attachment: First Reading Agenda Item Summary, October 20, 2015 (w/o attachments) (3692 : SR 131 Expiration Date-KFCG and Street Main. - 1 - ORDINANCE NO. 131, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING SECTION 25-75(a) OF THE CODE OF THE CITY OF FORT COLLINS TO EXTEND THE EXPIRATION DATE OF THE CITY’S 0.25% STREET MAINTENANCE SALES AND USE TAX AS APPROVED BY THE VOTERS AT THE CITY’S APRIL 7, 2015, REGULAR ELECTION AND TO CORRECT AN ERROR IN THE EXPIRATION DATE OF THE CITY’S 0.85% SALES AND USE TAX INCREASE APPROVED BY THE VOTERS AT THE CITY’S NOVEMBER 2, 2010, SPECIAL ELECTION WHEREAS, the City of Fort Collins has enacted comprehensive retail sales and use tax provisions that are codified in Chapter 25, Article III of the Fort Collins Municipal Code; and WHEREAS, the rate for this tax, as amended from time to time, is set in City Code Section 25-75(a); and WHEREAS, on February 3, 2015, the City Council adopted Resolution 2015-020 to refer to the City’s voters at the City’s April 7, 2015, regular election, a ballot measure to extend the expiration date of the City’s existing 0.25% sales and use tax used for the maintenance of City streets (the “Street Maintenance Tax”) from December 31, 2015, to December 31, 2025, which ballot measure the City’s voters approved; and WHEREAS, this Ordinance amends Code Section 25-75(a) to change and extend the expiration date of the Street Maintenance Tax from December 31, 2015, to December 31, 2025, as approved by the City’s voters on April 7, 2015; and WHEREAS, on August 17, 2010, the City Council adopted Resolution 2010-058 to refer to the City’s voters at the City’s November 2, 2010, special election, a ballot measure to increase the rate of the City’s then existing sales and use tax from 3.00% to 3.85%, which measure was known as the “Keep Fort Collins Great” tax increase, with such increase to commence on January 1, 2011, and expire at midnight on December 31, 2020, (the “Ballot Measure”) and the voters approved the Ballot Measure; and WHEREAS, on December 21, 2010, the City Council adopted Ordinance No. 126, 2010 to amend Code Section 25-75(a) to increase the rate of the City’s sales and use tax by 0.85% as authorized by the Ballot Measure (the “Tax Increase”), but Ordinance No. 126, 2010 incorrectly set December 31, 2021, as the expiration date for the Tax Increase instead of December 31, 2020; WHEREAS, this Ordinance amends Code Section 25-75(a) to so change the expiration date of the Tax Increase from December 31, 2021, to December 31, 2020. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that Section 25-75(a) of the Code of the City of Fort Collins is hereby amended to read as follows: 4.2 Packet Pg. 30 Attachment: Ordinance No. 131, 2015 (3692 : SR 131 Expiration Date-KFCG and Street Main. Tax) - 2 - Sec. 25-75. Rate of tax. (a) The amount of tax hereby levied is three and eight-five hundredths (3.85) percent of the purchase price of tangible personal property or taxable services except that the amount of use tax levied on manufacturing equipment is three (3) percent of the purchase price. Twenty-five one-hundredths (0.25) percent of such amount is a tax which shall expire at midnight on December 31, 2030, the proceeds of which shall be used for the purposes of acquiring, operating and maintaining open spaces, community separators, natural areas, wildlife habitat, riparian areas, wetlands and valued agricultural lands, and to provide for the appropriate use and enjoyment of these areas by the citizenry, pursuant to the provisions of the Citizen-Initiated Ordinance No. 1, 2002. Another twenty-five one-hundredths (0.25) percent is a tax which shall expire at midnight on December 31, 2025, the proceeds of which shall be used for the purpose of paying 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. Another twenty-five one-hundredths (0.25) percent is a tax which shall expire at midnight on December 31, 2015, the proceeds of which shall be used for the purpose of paying the costs of planning, design, right-of-way acquisition, construction and at least seven (7) years of operation and maintenance of certain capital projects specified in the "Building on Basics" capital project program, subject to the terms and conditions of Ordinance No. 92, 2005. Another eighty-five one- hundredths (0.85) percent is a tax which shall expire at midnight on December 31, 2020, the proceeds of which shall be used in accordance with the terms and conditions of Ordinance No. 126, 2010. . . . Introduced, considered favorably on first reading, and ordered published this 20th day of October, A.D. 2015, and to be presented for final passage on the 3rd day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk 4.2 Packet Pg. 31 Attachment: Ordinance No. 131, 2015 (3692 : SR 131 Expiration Date-KFCG and Street Main. Tax) - 3 - Passed and adopted on final reading on this 3rd day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk 4.2 Packet Pg. 32 Attachment: Ordinance No. 131, 2015 (3692 : SR 131 Expiration Date-KFCG and Street Main. Tax) Agenda Item 5 Item # 5 Page 1 AGENDA ITEM SUMMARY November 3, 2015 City Council STAFF Peggy Streeter, Senior Sales Tax Auditor SUBJECT Second Reading of Ordinance No. 132, 2015, Amending Section 25-65 of the Code of the City of Fort Collins to Change the Application Filing Deadline for the City's Manufacturing Equipment Use Tax Rebate Program. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on October 20, 2015, amends City Code Section 25- 65 to change the deadline for filing an application for the manufacturing equipment use tax rebate (MUTR) with the City from December 31st to June 30th. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, October 20, 2015 (w/o attachments) (PDF) 2. Ordinance No. 132, 2015 (PDF) 5 Packet Pg. 33 Agenda Item 11 Item # 11 Page 1 AGENDA ITEM SUMMARY October 20, 2015 City Council STAFF Peggy Streeter, Senior Sales Tax Auditor SUBJECT First Reading of Ordinance No. 132, 2015, Amending Section 25-65 of the Code of the City of Fort Collins to Change the Application Filing Deadline for the City's Manufacturing Equipment Use Tax Rebate Program. EXECUTIVE SUMMARY The purpose of this item is to amend City Code Section 25-65 to change the deadline for filing with the City an application for the manufacturing equipment use tax rebate (MUTR) from December 31st to June 30th. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION In March 2007, the City of Fort Collins adopted a Manufacturing Equipment Use Tax Rebate (MUTR) program allowing manufacturers to apply for a rebate of use tax paid on qualifying equipment. Manufacturers apply for this rebate the year subsequent to when the use tax was paid. Per City Code, the deadline for filing for the rebate is currently December 31st. This due date results in rebates being processed up to 2 years after the use tax was paid by the manufacturer. It also results in a lag between posting the use tax received by the City and the payment of the rebate out of the General Fund. An earlier filing deadline is advantageous to the manufacturers because they receive their rebate in a timelier manner. Manufacturers have commented they would like to get the rebate sooner. The data is already compiled each month when the return is filed so they can easily compile the data and file the application by June 30th. Current process: Manufacturer pays use tax in 2015 Manufacturer applies for the rebate between August 1 and December 31 Manufacturer receives rebate payment in 2017 Proposed process: Manufacturer pays use tax in 2015 Manufacturer applies for the rebate by June 30 Manufacturer receives rebate payment in 2016 This change requires an amendment to Section 25-65 of the Fort Collins City Code. ATTACHMENT 1 5.1 Packet Pg. 34 Attachment: First Reading Agenda Item Summary, October 20, 2015 (w/o attachments) (3745 : SR 132 MUTR) Agenda Item 11 Item # 11 Page 2 BOARD / COMMISSION RECOMMENDATION This proposal to amend the City Code was presented to the Council Finance Committee (CFC) on September 21, 2015. CFC supported the proposed change. PUBLIC OUTREACH An email was sent out to the vendors who currently apply for the rebate to provide notification of the proposed change in the filing deadline for the MUTR program. No concerns were noted. ATTACHMENTS 1. Council Finance Committee minutes, September 21, 2015 (PDF) 5.1 Packet Pg. 35 Attachment: First Reading Agenda Item Summary, October 20, 2015 (w/o attachments) (3745 : SR 132 MUTR) - 1 - ORDINANCE NO. 132, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING SECTION 25-65 OF THE CODE OF THE CITY OF FORT COLLINS TO CHANGE THE APPLICATION FILING DEADLINE FOR THE CITY’S MANUFACTURING EQUIPMENT USE TAX REBATE PROGRAM WHEREAS, in 2007 the City of Fort Collins established in Division 5 of Article II of Chapter 25 of the Fort Collins Municipal Code a program to rebate the City’s use tax imposed on manufacturing equipment to qualifying manufacturers (the “Rebate Program”); and WHEREAS, Code Section 25-65 currently requires that manufactures applying for a use tax rebate under the Rebate Program must file their application with the City no later than December 31st of each year; and WHEREAS, this late filing deadline has caused delays in the City paying the requested rebates to manufacturers and staff is recommending that the filing deadline be changed to June 30th of each year to help eliminate these delays; and WHEREAS, this Ordinance amends Code Section 25-65 to change this deadline from December 31st of each year to June 30th of each year. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that Section 25-65 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 25-65. Application for rebate. Application for the manufacturing equipment use tax rebate on qualifying manufacturing equipment shall be made on forms to be provided by the City. In order to qualify for such rebate, the application must be filed by June 30th of the year following the year in which the use taxes for which a rebate is requested were paid. Only one (1) application shall be filed per qualifying manufacturer. Introduced, considered favorably on first reading, and ordered published this 20th day of October, A.D. 2015, and to be presented for final passage on the 3rd day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk 5.2 Packet Pg. 36 Attachment: Ordinance No. 132, 2015 (3745 : SR 132 MUTR) - 2 - Passed and adopted on final reading on this 3rd day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk 5.2 Packet Pg. 37 Attachment: Ordinance No. 132, 2015 (3745 : SR 132 MUTR) Agenda Item 6 Item # 6 Page 1 AGENDA ITEM SUMMARY November 3, 2015 City Council STAFF Clark Mapes, City Planner SUBJECT Second Reading of Ordinance No. 133, 2015, Amending the Zoning Map of the City of Fort Collins by Changing the Zoning Classification for that Certain Property Known as the Houska Automotive Rezoning. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on October 20, 2015, rezones one parcel of land, 1005 Riverside Drive, near the southwest corner of the Riverside Drive and Lemay Avenue intersection. Existing zoning is N-C, Neighborhood Commercial District. Proposed zoning is C-L, Limited Commercial District. The parcel is 2.5 acres in size and is currently vacant. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, October 20, 2015 (w/o attachments) (PDF) 2. Ordinance No. 133, 2015 (PDF) 6 Packet Pg. 38 Agenda Item 12 Item # 12 Page 1 AGENDA ITEM SUMMARY October 20, 2015 City Council STAFF Clark Mapes, City Planner SUBJECT Public Hearing and First Reading of Ordinance No. 133, 2015, Amending the Zoning Map of the City of Fort Collins by Changing the Zoning Classification for that Certain Property Known as the Houska Automotive Rezoning. EXECUTIVE SUMMARY The purpose of this item is to rezone one parcel of land, 1005 Riverside Drive, near the southwest corner of the Riverside Drive and Lemay Avenue intersection. Existing zoning is N-C, Neighborhood Commercial District. Proposed zoning is C-L, Limited Commercial District. The parcel is 2.5 acres in size and is currently vacant. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION 1967 Original annexation and zoning. In 1967, the property was annexed as part of the Lemay Annexation, and zoned General Industrial, along with the rest of the Riverside corridor extending from Lemay Avenue to Mountain Avenue. This also included Lemay Avenue frontage along the area that now comprises the Albertson’s shopping center at the corner of Riverside Drive and Lemay Avenue. The General Industrial zoning allowed a whole range of industrial uses. On the property in question, Flatiron Paving Company operated a concrete batch plant that was later closed and removed. 1991 Rezoning to C-L. In 1991, the property was rezoned into a newly written zoning district called the C-L, Limited Commercial District as a follow up action of the 1986 East Side Neighborhood Plan. C-L zoning was applied to the whole south side of Riverside Drive from Lemay Avenue to Mountain Avenue, replacing the original General Industrial zoning. That C-L zoning is still in place along Riverside except for the subject property. C-L zoning reflects the realities of vehicle-related uses that front onto Riverside Drive, allowing a wide range of commercial and vehicle-related uses. Attachment 5, Pertinent Zoning Information, provides a comparison of the purposes and permitted uses in the current N-C District and the proposed C-L District. 1997 Rezoning to N-C. As noted previously, the subject property was rezoned to N-C, Neighborhood Commercial District, in conjunction with the new City Plan in 1997. That designation was new in 1997 as a prominent topic in City Plan. It represents goals for mixed-use supermarket-anchored activity centers to be walkable focal points for surrounding neighborhoods. It envisions an integrally connected pattern of streets and blocks offering access other than arterial streets. ATTACHMENT 1 6.1 Packet Pg. 39 Attachment: First Reading Agenda Item Summary, October 20, 2015 (w/o attachments) (3746 : SR 133 Houska Rezoning) Agenda Item 12 Item # 12 Page 2 Those goals were translated into a new City Structure Plan map -- a diagram of long-term land use and transportation patterns within the Growth Management Area. The City Structure Plan map now serves as the primary basis for zoning decisions. The Structure Plan map placed the Neighborhood Commercial District designation on the existing Albertsons shopping center, but with notation as an existing center that would not necessarily be consistent with the City Plan goals and principles. In such situations, the designation is considered aspirational as a guide to possible future redevelopment. City Structure Plan Guidance for Zoning As noted previously, the City Structure Plan map serves as the primary basis for zoning decisions. The map does not actually depict the subject property as part of the Neighborhood Commercial District; rather, the property is depicted as part of the commercial corridor along Riverside, as it had previously been designated since original annexation and zoning. The 1997 City Structure Plan map was originally intended to be a somewhat general guide, with exact zoning of specific properties to be determined at the time of zoning based on detailed interpretation of City Plan policies and unique conditions on the ground. The map has since evolved to become more parcel-specific in its depiction of the desired land use pattern. Because of the way the subject property is depicted, the rezoning request is more consistent with the map than the current N-C zoning. A zoomed-in view of the City Structure Plan map is provided as Attachment 4. Surrounding Zoning and Land Uses Surrounding zoning and land uses are as follows: Direction Zone District Existing Land Uses North U-E, Urban Estate Railroad (across Riverside Drive) South N-C, Neighborhood Commercial Albertsons-anchored shopping center properties East N-C, Neighborhood Commercial Albertsons-anchored shopping center commercial pad properties West C-L, Limited Commercial Houska automotive complex and other vehicle and RV storage uses Summary of Staff Evaluation A number of main considerations underlie staff findings in support of the request: The property is not critical for development as an additional component of this Neighborhood Commercial District because it is functionally disconnected from the residential neighborhood to the south and west by industrial land uses. It is oriented to Riverside Drive, an arterial street, with little opportunity to be well- integrated into a neighborhood pattern of streets, blocks, and walkways leading to the shopping center. Existing development in the area was done prior to the N-C designation and is not aligned with the purpose and policies for N-C districts. The extension of C-L zoning can be compatible with existing surrounding vehicle-related uses including the truck loading and service area of the abutting shopping center. Access to the property is highly constrained, and the zoning would support the feasibility of cross-access with adjacent properties in the C-L zone to the west. This rezoning request is on behalf of owners of the property adjacent to the west, who operate an auto repair complex and desire to expand their operation, with a shared single access point on Riverside Drive. This is a crucial consideration because several 6.1 Packet Pg. 40 Attachment: First Reading Agenda Item Summary, October 20, 2015 (w/o attachments) (3746 : SR 133 Houska Rezoning) Agenda Item 12 Item # 12 Page 3 development proposals since 1997 have been thwarted by the highly constrained access on Riverside Drive. Access constraints on Riverside Drive are a key consideration. Since 1997, a number of development proposals have been brought forward under the N-C zoning, for various retail or medical office uses consistent with the N-C zoning. None were able to proceed. In addition to vehicular access limitations on Riverside Drive, the ownership of adjacent shopping center property has precluded cross access with the shopping center. The rezoning would return the property to zoning that existed on the property prior to 1997. In 1997, a citywide rezoning was approved by City Council in conjunction with the new comprehensive plan known as City Plan. The subject property was placed into the new Neighborhood Commercial District along with the pre-existing Albertsons Shopping Center properties at that time. The rezoning is consistent with the City Structure Plan map. Required Findings to Approve the Rezoning Request In order to recommend approval of this proposal, City Council would have to find that the rezoning is: (a) consistent with the City’s Comprehensive Plan; and/or (b) warranted by changed conditions within the neighborhood surrounding and including the subject property.” The above criteria are found in subsection 2.9.4[H][2] of the Land Use Code, which defines mandatory requirements for rezonings. In addition, the following subsection 2.9.4[H][3] lists other factors that may be considered along with the mandatory requirements for this type of rezoning, as follows: “In determining whether to recommend approval of any such proposed amendment, the Planning and Zoning Board and City Council may consider the following additional factors: whether and the extent to which the proposed amendment is compatible with existing and proposed uses surrounding the subject land, and is the appropriate zone district for the land; whether and the extent to which the proposed amendment would result in significantly adverse impacts on the natural environment, including but not limited to, water, air, noise, stormwater management, wildlife, vegetation, wetlands and the natural environment’; and whether and the extent to which the proposed amendment would result in a logical and orderly development pattern.” Staff Findings After reviewing the Houska Rezoning request, staff makes the following findings of fact: 1. The rezoning is consistent with the City’s Comprehensive Plan based on the City Structure Plan map designation, the lack of interconnectivity with surrounding neighborhoods or neighborhood commercial uses as envisioned under the current N-C zoning, and the orientation to the Riverside Drive commercial corridor. 2. Conditions have changed in the neighborhood to warrant the rezoning, particularly the history of proposals to develop the property with N-C uses, which provides a body of new information regarding access constraints; and the growth of the automotive service center abutting the property, which has created the opportunity for that use to expand onto the subject property with crucial cross access. 6.1 Packet Pg. 41 Attachment: First Reading Agenda Item Summary, October 20, 2015 (w/o attachments) (3746 : SR 133 Houska Rezoning) Agenda Item 12 Item # 12 Page 4 3. The rezoning is compatible with existing and proposed uses, particularly the automotive center next door, the rear service area of the adjacent shopping center, existing vehicle storage uses to the south and west, and the Riverside corridor overall. 4. The rezoning will have no adverse effects on the natural environment because there are no wetlands, significant vegetation, habitats, or other sensitive environmental conditions on the property or otherwise affected by the change in zoning from one commercial designation to another. 5. The proposed rezoning would result in a logical and orderly pattern because it fits with the established, long-standing pattern of service commercial-type land uses along Riverside Drive, and it creates the opportunity for coordination of an efficient auto-related service complex with shared access being a crucial consideration. CITY FINANCIAL IMPACTS Staff finds no direct financial or economic impacts resulting from the proposed rezoning of 2.5 acres from one type of commercial district to another. The proposed C-L zoning is more likely to result in development due to the increased ability to overcome access constraints which have thwarted development under the current N-C designation. Development in the C-L zone will likely result in the creation of technical jobs associated with the growing automotive center to the west, which is under the same ownership as the subject property. BOARD / COMMISSION RECOMMENDATION On September 10, 2015, the Planning and Zoning Board voted unanimously to recommend City Council approval of the proposed rezoning on the Board’s Consent Agenda. The Board requested that the item be placed on the Consent Agenda, with no discussion. PUBLIC OUTREACH A neighborhood meeting was held on August 20, 2015. Mailings were sent for the Neighborhood Meeting and for the Planning and Zoning Board hearing. No citizens attended. No known controversy or neighborhood impacts are involved with the rezoning. ATTACHMENTS 1. Rezoning Request (PDF) 2. Existing zoning (PDF) 3. Proposed zoning (PDF) 4. City Structure Plan Detail of Site (PDF) 5. Land Use Code Pertinent Excerpts (PDF) 6.1 Packet Pg. 42 Attachment: First Reading Agenda Item Summary, October 20, 2015 (w/o attachments) (3746 : SR 133 Houska Rezoning) - 1 - ORDINANCE NO. 133, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING THE ZONING MAP OF THE CITY OF FORT COLLINS BY CHANGING THE ZONING CLASSIFICATION FOR THAT CERTAIN PROPERTY KNOWN AS THE HOUSKA AUTOMOTIVE REZONING WHEREAS, Division 1.3 of the Fort Collins Land Use Code (the “Land Use Code”) establishes the Zoning Map and Zone Districts of the City; and WHEREAS, Division 2.9 of the Land Use Code establishes procedures and criteria for reviewing the rezoning of land; and WHEREAS, in accordance with the foregoing, the City Council has considered the rezoning of the property that is the subject of this Ordinance and has determined that said property should be rezoned as hereinafter provided; and WHEREAS, the City Council has further determined that the proposed rezoning is consistent with the City's Comprehensive Plan and/or is warranted by changed conditions within the neighborhood surrounding and including the subject property; and WHEREAS, to the extent applicable, the City Council has also analyzed the proposed rezoning against the considerations as established in Section 2.9.4(H)(3) of the Land Use Code. NOW THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS: Section 1. That the findings set forth above are incorporated into the body of this Ordinance as if fully set forth herein. Section 2. That the Zoning Map adopted by Division 1.3 of the Land Use Code is hereby amended by changing the zoning classification from Neighborhood Commercial (“N-C”) Zone District, to Limited Commercial (“C-L”) Zone District, for the following described property in the City known as the Houska Automotive Rezoning: A tract of land situated in the Northeast of Section 13, Township 7 North, Range 69 West of the 6th P.M., City of Fort Collins, County of Larimer, State of Colorado, which considering the East line of the said Northeast 1/4 of said Section 13 as bearing North 00°25' East and with all bearings contained herein relative thereto, is contained within the boundary lines which BEGIN at a point on the existing South right-of-way line of Riverside Avenue which bears North 00°25' East 1,319.93 feet to the North 1/16 corner on the East line of said Section 13 and Again North 48°54' West 403.05 feet, and Again South 01°04'36" West 35.64 feet from the East 1/4 corner of said Section 13, and run Thence South 01°04'36" West 183.71 feet; Thence North 89°31 '24" West 331.40 feet; Thence North 00°35'36" East 468.81 feet to the existing South right-of-way line of Riverside Avenue; Thence along said right-of-way South 48°54' East 437.90 feet to the 6.2 Packet Pg. 43 Attachment: Ordinance No. 133, 2015 (3746 : SR 133 Houska Rezoning) - 2 - Point of Beginning. County of Larimer, State of Colorado, measuring 2.49 acres, more or less. Section 3. That the Residential Neighborhood Sign District Map adopted pursuant to Section 3.8.7(E) of the Land Use Code be, and the same hereby is, changed and amended by showing that the above-described property is not included in the Residential Neighborhood Sign District. Section 4. The City Manager is hereby authorized and directed to amend said Zoning Map in accordance with this Ordinance. Introduced, considered favorably on first reading, and ordered published this 20th day of October, A.D. 2015, and to be presented for final passage on the 3rd day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on this 3rd day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk 6.2 Packet Pg. 44 Attachment: Ordinance No. 133, 2015 (3746 : SR 133 Houska Rezoning) Agenda Item 7 Item # 7 Page 1 AGENDA ITEM SUMMARY November 3, 2015 City Council STAFF Tyler Marr, Graduate Management Assistant SUBJECT Second Reading of Ordinance No. 134, 2015, Making Certain Amendments to Section 17-142 of the Code of the City of Fort Collins Related to Public Nudity. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on October 20, 2015, updates Section 17-142 of the City Code to read as “Public Nudity” rather than “Public Indecency,” and maintains the current prohibition of the exposure of the female breast in public, excluding from this prohibition children under the age of ten and breastfeeding mothers. There has been a slight modification to the language between First and Second Reading. The words “areola and” have been added before the word “nipple”. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, October 20, 2015 (w/o attachments) (PDF) 7 Packet Pg. 46 Agenda Item 18 Item # 18 Page 1 AGENDA ITEM SUMMARY October 20, 2015 City Council STAFF Tyler Marr, Graduate Management Assistant SUBJECT First Reading of Ordinance No. 134, 2015, Making Certain Amendments to Section 17-142 of the Code of the City of Fort Collins Related to Public Nudity. (Option 1 or Option 2) EXECUTIVE SUMMARY The purpose of this item is to bring forth two potential options to the current City Code provisions concerning public nudity for consideration in light of recent citizen concerns regarding the prohibition on female toplessness in Fort Collins. Both options would update the section of the Code to read as “Public Nudity” rather than “Public Indecency.” Both options also include exceptions to the provisions for young children, changing areas, medical situations, and performance venues. Option 1 would keep the provision in the Code that does not allow for female toplessness, while adding exceptions, including an exception for breastfeeding mothers. Option 2 would update the Code provisions by allowing female toplessness within the City and specifically prohibiting all nudity below the waist for both sexes, with certain limited exceptions. STAFF RECOMMENDATION Staff has no recommendation. BACKGROUND / DISCUSSION The current public indecency code reads as follows (Sec 117-142): “No person shall knowingly appear in any public place in a nude state or state of undress such that the genitals or buttocks of either sex or the breast or breasts of a female are exposed.” In light of recent citizen concerns regarding the prohibition of female toplessness, Council requested that staff draft new options for consideration. The following two options change the term “indecency” to “nudity,” define the public places in which nudity is prohibited, and provide exceptions for various situations, which include: Young children (under 10) Bona fide medical examinations or emergencies Changing areas The differences between the ordinances are that one leaves the distinction in place between males and females, keeping it illegal for females to be topless in public, but provides for protections that do not currently exist, while the other removes reference to the specific sexes and allows for all toplessness within the City. Option 1: - Maintain Current Standards while Providing Exceptions This Option would update the City Code by providing exceptions of the Code provisions for: ATTACHMENT 1 7.1 Packet Pg. 46 Attachment: First Reading Agenda Item Summary, October 20, 2015 (w/o attachments) (3747 : SR 134 Public Nudity) Agenda Item 18 Item # 18 Page 2 Breastfeeding mothers Young children (under ten) Those undergoing bona fide medical examinations or emergencies Those in changing areas or other places where nudity is explicitly allowed. Option 1 adds a definition of “public place,” and keeps the language in the Code that prohibits the display of female breasts. Option 2: - Remove Prohibition of Female Toplessness This Option would remove the language in the City Code pertaining to female breasts. It outlines that no person may be nude below the waist by stating the specific body parts that are to remain covered. This Ordinance also adds exceptions for: Young children (under 10) Bona fide medical examinations or emergencies Changing areas Option 2 also adds a definition of “public place”. This Option would update the Code to be similar to the City of Boulder, which also allows for both male and female breasts to be exposed. The following is a chart depicting prohibition on toplessness in other local jurisdictions: Cities Topless Prohibitions Boulder None Colorado Springs Exposure of female breasts with the element of intent to arouse or alarm Denver None Greeley Lewd exposure, including the breasts of either sex, and the element of intent to arouse or alarm Loveland Female breasts below the top of the nipple It is important to note that the state law is as follows: C.R.S. Section 18-7-301. Public indecency. (1) Any person who performs any of the following in a public place or where the conduct may reasonably be expected to be viewed by members of the public commits public indecency: (a) An act of sexual intercourse; or (b) (Deleted by amendment, L. 2010, (HB 10-1334), ch. 359, p. 1707, § 1, effective August 11, 2010.) (c) A lewd exposure of an intimate part as defined by section 18-3-401 (2) of the body, not including the genitals, done with intent to arouse or to satisfy the sexual desire of any person; or (d) A lewd fondling or caress of the body of another person; or (e) A knowing exposure of the person's genitals to the view of a person under circumstances in which such conduct is likely to cause affront or alarm to the other person. (2) (a) Except as otherwise provided in paragraph (b) of this subsection (2), public indecency is a class 1 petty offense. (b) Public indecency as described in paragraph (e) of subsection (1) of this section is a class 1 misdemeanor if 7.1 Packet Pg. 47 Attachment: First Reading Agenda Item Summary, October 20, 2015 (w/o attachments) (3747 : SR 134 Public Nudity) Agenda Item 18 Item # 18 Page 3 the violation is committed subsequent to a conviction for a violation of paragraph (e) of subsection (1) of this section or for a violation of a comparable offense in any other state or in the United States, or for a violation of a comparable municipal ordinance. (3) (Deleted by amendment, L. 2010, (HB 10-1334), ch. 359, p. 1707, § 1, effective August 11, 2010.) The State’s definition of “intimate parts” in Section 18-3-401(2) is as follows: “Intimate parts” means the external genitalia or the perineum or the anus or the buttocks or the pubes or the breast of any person.” BOARD / COMMISSION RECOMMENDATION Both the Women’s Commission and the Human Relations Commission have provided input regarding this item and have decided to support elimination of the current prohibition on public exposure of the female breast. A memo from the HRC is provided detailing its reasoning (Attachment 1). PUBLIC OUTREACH Public outreach was conducted in the form of an online survey that was available from October 5th to October 12th. The primary goal of this survey was to gauge which option responding citizens were most in favor of and gather demographic information about them. The results of the survey are attached to this document (Attachment 2). Major themes of the comments that were generated from the survey are also attached. (Attachment 3) . A complete compilation of the comments can be found at fcgov.com/toplessresults The survey was promoted through press release, the City’s website, and social media. ATTACHMENTS 1. HRC Recommendation (PDF) 2. Public Nudity Input Comment Themes (PDF) 3. Public Input Poll Summary Report (PDF) 4. Powerpoint presentation (PDF) 7.1 Packet Pg. 48 Attachment: First Reading Agenda Item Summary, October 20, 2015 (w/o attachments) (3747 : SR 134 Public Nudity) ORDINANCE NO. 134, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING CERTAIN AMENDMENTS TO SECTION 17-142 OF THE CODE OF THE CITY OF FORT COLLINS RELATED TO PUBLIC NUDITY WHEREAS, some citizens have expressed concerns regarding the current prohibition of the exposure of the female breast in public places in the City; and WHEREAS, City staff has conducted public outreach, including an online survey, to inquire whether the majority of the citizens of Fort Collins have similar concerns about such prohibition; and WHEREAS, City Council has carefully considered the information obtained from the public outreach and provided by staff and other sources, and believes that there is strong public support and desire to retain the current prohibition; and WHEREAS, in light of such information, City Council finds it to be in the best interest of the public to maintain the current prohibition of the exposure of the female breast in public and to exclude from this prohibition children under ten years of age and breastfeeding mothers; and WHEREAS, City Council also finds it to be in the public interest to retain the prohibition on intentional exposure of any portion of the genitals or buttocks in public places and to add provisions excluding from this prohibition children under ten years of age, persons undergoing bona fide medical examinations or emergencies and persons in changing areas or other places designated for changing clothes or where nudity is explicitly allowed; and WHEREAS, the City Council has determined that the City Code amendments set forth herein are in the best interest of the City and its citizens. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the Council hereby adopts the foregoing recitals as its findings and conclusions. Section 2. That Section 17-142 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 17-142. Public nudity. (a) No person who is ten (10) years of age or older shall intentionally expose any portion of his or her genitals or buttocks while that person is located: Packet Pg. 50 (1) in a public right-of-way, in a natural area, recreation area or trail, or recreation center, in a public building, in a public square, or while located in any other public place; or (2) on private property if the person is in a place that can be viewed from the ground level by another who is located on public property and who does not take extraordinary steps, such as climbing a ladder or peering over a screening fence, in order to achieve a point of vantage. (3) As used in this Section, public place shall mean a place to which the public or a substantial number of the public has access, and includes but it not limited to highways including sidewalks, transportation facilities, school, places of amusement, parks, playgrounds and the common areas of public and private buildings and facilities, and shall not include any theater, concert hall, museum, school or similar establishment to the extent the same is serving as a performance venue. (b) No female who is ten (10) years of age or older shall knowingly appear in any public place with her breast exposed below the top of the areola and nipple while located: (1) in a public right-of-way, in a natural area, recreation area or trail, or recreation center, in a public building, in a public square, or while located in any other public place; or (2) on private property if the person is in a place that can be viewed from the ground level by another who is located on public property and who does not take extraordinary steps, such as climbing a ladder or peering over a screening fence, in order to achieve a point of vantage. (3) Public place in this Section shall be defined as in Section (a)(3) above. (c) The prohibition in subsection (a) does not extend to: (1) persons undergoing bona fide emergency medical examinations or treatment; or (2) persons located in dressing rooms, shower rooms, bathrooms, or in other enclosed areas specifically designated for changing clothes or in which nudity is explicitly permitted; or (d) The prohibition in subsection (b) does not extend to women breastfeeding in places they are legally entitled to be. Packet Pg. 51 Introduced, considered favorably on first reading, and ordered published this 20th day of October, A.D. 2015, and to be presented for final passage on the 3rd day of November, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 3rd day of November, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 52 Agenda Item 8 Item # 8 Page 1 AGENDA ITEM SUMMARY November 3, 2015 City Council STAFF Mike Beckstead, Chief Financial Officer Jason Licon, Airport Director SUBJECT First Reading of Ordinance No. 135, 2015, Adopting the 2016 Budget and Appropriating the Fort Collins Share of the 2016 Fiscal Year Operating and Capital Improvement Funds for the Fort Collins-Loveland Municipal Airport. EXECUTIVE SUMMARY The 2016 annual operating budget for the Airport totals $931,890, and will be funded from Airport operating revenues, contributions from the Cities of Fort Collins and Loveland ($177,500 from each City), and interest earnings. This Ordinance appropriates the City of Fort Collins 50% share of the 2016 Airport budget, which totals $465,945. This Ordinance also appropriates the City’s 50% share of capital funds, totaling $83,334 for the Airport from Federal and State grants; contributions from Fort Collins and Loveland; and the Airport General Fund. The budgeted 2016 Airport capital funds, totaling $166,668, will be used to complete a major Airport improvement including the second phase of the construction of a snow removal equipment storage facility. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION In 1963, the City of Fort Collins and the City of Loveland agreed to the establishment of a regional aviation facility and became owners and operators of the Fort Collins-Loveland Municipal Airport, located approximately 16 miles southeast of downtown Fort Collins, just west of Interstate 25 on Earhart Road. The Airport is operated as a joint venture between the City of Fort Collins and the City of Loveland, with each city retaining a 50% ownership interest, sharing equally in policy-making and management, and with each assuming responsibility for 50% of the capital and operating costs associated with the Airport. The Airport’s mission is to provide a safe and efficient air transportation airport facility to the general public and aviation community by providing airport facilities that meet Federal Aviation Administration (FAA) safety standards and to implement a plan that ensures the efficient development of the Airport to meet the needs of the Fort Collins and Loveland communities. According to a 2013 State of Colorado study, the Fort Collins – Loveland Airport provides a local economic impact of $129.4 million annually. Airport revenues cover operating costs and capital projects. Each city contributes equal funding for Airport operating and capital needs as agreed upon within the Intergovernmental agreement between the Cities of Fort Collins and Loveland. Airport capital funds are also received, for eligible projects, from the FAA and the Colorado Department of Transportation, Division of Aeronautics. The annual operating costs for 2016 for the Airport are $931,890, and the City of Fort Collins contribution is $177,500. In addition, the Airport Manager is recommending additional capital expenditures and has identified the following funding sources: 8 Packet Pg. 52 Agenda Item 8 Item # 8 Page 2 FAA Entitlement Grant $150,000 State Grant 8,334 Airport Revenues 8,334 Total $166,668 The capital expenditures will be used to complete major Airport improvement projects, such as the second phase of construction of a snow removal equipment storage facility estimated at $166,668. Thus, the City of Fort Collins appropriation for the capital expenditures identified above is $83,334 (50% of the total). The City of Loveland’s City Council has approved an ordinance appropriating the 2016 Airport budget on October 20, 2015. CITY FINANCIAL IMPACTS This Ordinance appropriates the City’s 50% share ($549,279) of the annual appropriation for fiscal year 2016 for the Fort Collins-Loveland Municipal Airport budget. The City of Loveland manages the Airport’s budget and finances; however, since the City of Fort Collins owns 50% of the Airport, it is necessary for the City to appropriate its 50% portion of the Airport budget. The contribution from the City of Fort Collins for the operation of the Airport has not increased since 2013 and remains $177,500. 8 Packet Pg. 53 ORDINANCE NO.135, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS ADOPTING THE 2016 BUDGET AND APPROPRIATING THE FORT COLLINS SHARE OF THE 2016 FISCAL YEAR OPERATING AND CAPITAL IMPROVEMENT FUNDS FOR THE FORT COLLINS-LOVELAND MUNICIPAL AIRPORT WHEREAS, in 1963, the City of Fort Collins and the City of Loveland (the “Cities”) agreed to establish a regional general aviation facility and became owners and operators of the Fort Collins-Loveland Municipal Airport (the “Airport”); and WHEREAS, the Airport is operated as a joint venture between the Cities, with each city retaining a 50% ownership interest, sharing equally in policy-making and management, and each assuming responsibility for 50% of the Airport’s capital and operating costs; and WHEREAS, pursuant to the Amended and Restate Intergovernmental Agreement for the Joint Operation of the Fort Collins-Loveland Municipal Airport dated January 22, 2015 (the “IGA”), the Airport Manager is responsible for preparing the Airport’s annual operating budget and submitting it to the Cities for their approval; and WHEREAS, under the IGA, the City’s share of existing and unanticipated Airport revenue is to be held and disbursed by the City of Loveland as an agent on behalf of the Cities, since the City of Loveland provides finance and accounting services for the Airport; and WHEREAS, under the IGA, each City’s share of the Airport‘s annual operating budget and the Airport capital improvement plan shall be appropriated by each City and transferred or otherwise paid into the designated account to be used for Airport funding on an annual basis; and WHEREAS, in accordance with Article V, Section 8(b), of the City Charter, any expense or liability entered into by an agent of the City on behalf of the City, shall not be made unless an appropriation for the same has been made by the City Council; and WHEREAS, the Airport Manager has submitted for City Council consideration a 2016 Airport operating budget totaling $931,890, of which the City’s share is $465,945; and WHEREAS, the City Council is in the process of considering the City’s 2016 budget and Ordinance No 139, 2015, which appropriates $177,500 in City funds to be transferred to the Airport operating fund in accordance with the IGA (the “Fort Collins Contribution”); and WHEREAS, pursuant to the IGA, the City of Loveland holds on behalf of the City of Fort Collins the revenues of, and other financial contributions to, the Airport, in a fund designated for the operating and capital expenses of the Airport (the “Airport Fund”); and WHEREAS, it is the desire of the City Council to appropriate the City’s share of the necessary funds for the Airport’s operating costs, totaling $465,945 for the fiscal year beginning January 1, 2016, and ending December 31, 2016; and Packet Pg. 54 WHEREAS, the Airport Manager also recommends capital expenditures totaling $166,668 for Airport improvement projects in 2016 which will be used to complete a major Airport improvement, including the second phase of the construction of a snow removal equipment storage facility; and WHEREAS, funding for the 2016 capital improvements has been identified as follows: FAA Entitlement Grant $150,000 State Grant 8,334 Airport Revenues 8,334 Total $166,668; and WHEREAS, the City’s 50% share of the 2016 capital improvement costs, held in the Airport Fund, is $83,334. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby approves and adopts the 2016 Airport operating and capital budget (totaling $931,890 for operations and $166,668 for capital), a copy of which is on file with the City of Fort Collins City Clerk. Section 2. That the City Council hereby appropriates in the Airport Fund FOUR HUNDRED SIXTY-FIVE THOUSAND NINE HUNDRED FORTY-FIVE DOLLARS ($465,945) to be expended to defray the City’s share of the 2016 operating costs of the Fort Collins-Loveland Municipal Airport. Section 3. That the City Council hereby appropriates in the Airport Fund EIGHTY THREE THOUSAND THREE HUNDRED THIRTY-FOUR DOLLARS ($83,334) to be used for the City’s share of the 2016 capital improvements at the Fort Collins-Loveland Municipal Airport. Introduced, considered favorably on first reading, and ordered published this 3rd day of November, A.D. 2015, and to be presented for final passage on the 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 17th day of November, A.D. 2015. Packet Pg. 55 __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 56 Agenda Item 9 Item # 9 Page 1 AGENDA ITEM SUMMARY November 3, 2015 City Council STAFF Seonah Kendall, Economic Policy & Project Manager SUBJECT First Reading Ordinance No. 136, 2015, Appropriating Prior Year Reserves in the General Fund to Reimburse Custom Blending, Inc. For Use Taxes and Business Personal Property Taxes as Provided in the Business Investment Agreement. EXECUTIVE SUMMARY The purpose of this item is to appropriate $13,130 of prior year reserves in the General Fund for a rebate to Custom Blending for use tax and business personal property tax rebates under an agreement approved by City Council on August 20, 2013 (Resolution 2013-073). The Agreement provides business investment assistance for the expansion of Custom Blending’s manufacturing facility and investment in additional manufacturing equipment. Custom Blending has retained or created 63 primary jobs in the city. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION Agreement Summary On August 20, 2013, City Council adopted Resolution 2013-073, approving an Economic Development Project Agreement between the City and Custom Blending Inc. The Agreement provides that Custom Blending is eligible for a rebate in two areas: Use tax on new eligible manufacturing equipment (up to 75%) for the period beginning August 20, 2013 and ending December 31, 2014, subject to a limit on the total use tax rebate amount for the project of thirty-one thousand, one hundred thirty dollars ($31,130). The use tax rebate will be paid over a period of three (3) years, with the initial installment of thirty-three and one-third percent (33.3%) or $10,376. Business Personal Property Tax Rebate (up to 50%) for a seven-year period for the eligible manufacturing equipment purchased for the period beginning August 20, 2013 and ending December 31, 2014. A limit on each annual payment is two thousand, seven hundred fifty-four ($2,754). Employment Level Requirements The two rebate categories were offered with the stipulation that Custom Blending’s employment levels must be maintained at the same number of employees within its Fort Collins facility as Custom Blending employed as of June 30, 2013 (35 employees), with the intent of creating approximately 16 net new jobs as of December 31, 2015. Currently, Custom Blending has sixty-three (63) employees. 9 Packet Pg. 57 Agenda Item 9 Item # 9 Page 2 Rebate Schedule as agreed upon with Custom Blending Staff has developed a rebate schedule with Custom Blending which is consistent with the Agreement whereby two rebate applications will be processed each year. CITY FINANCIAL IMPACTS The total rebate amount for 2015 is $13,130, of which $10,376 is use tax and $2,754 is business personal property tax. 9 Packet Pg. 58 ORDINANCE NO. 136, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUND TO REIMBURSE CUSTOM BLENDING, INC. FOR USE TAXES AND BUSINESS PERSONAL PROPERTY TAXES AS PROVIDED IN THE BUSINESS INVESTMENT AGREEMENT WHEREAS, the City and Custom Blending, Inc. (“Custom Blending”) entered into that certain “Agreement with Custom Blending, Inc.” dated August 20, 2013 (the “Agreement”), which Agreement provides business investment assistance for the expansion of Custom Blending’s headquarters in Fort Collins; and WHEREAS, the Agreement specifies that Custom Blending is eligible for reimbursement from the City for the following paid by it to the City: (1) Use Tax on new Eligible Equipment, (2) Business Personal Property Tax on Eligible Manufacturing Equipment; and WHEREAS, under the Agreement, Custom Blending can apply for reimbursement biannually for both; and WHEREAS, all funds reimbursed must be appropriated by Council as part of the rebate process; and WHEREAS, the Agreement was approved by City Council pursuant to Resolution No. 2013-073, on August 20, 2013; and WHEREAS, the current reimbursement due to Custom Blending for the period of August 20, 2013, through December 31, 2014, is $13,130 for eligible Use Tax and Business Personal Property Tax; and WHEREAS, staff has determined that the requested amount of $13,130 is available from prior year reserves in the General Fund to reimburse Custom Blending in accordance with the Agreement; and WHEREAS, Article V, Section 9, of the City Charter also permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated for expenditure from prior year reserves in the General Fund the sum of THIRTEEN THOUSAND ONE HUNDRED THIRTY DOLLARS ($13,130) to reimburse Custom Blending for Use Tax and Business Personal Property Tax as required by the Agreement. Packet Pg. 59 Introduced, considered favorably on first reading, and ordered published this 3rd day of November, A.D. 2015, and to be presented for final passage on the 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 60 Agenda Item 10 Item # 10 Page 1 AGENDA ITEM SUMMARY November 3, 2015 City Council STAFF Carol Webb, Water Resources/Treatmnt Opns Mgr SUBJECT First Reading of Ordinance No. 137, 2015, Authorizing the City Manager and the Mayor to Enter Into an Agreement Regarding the City Ditch, Including the Quit Claim of a Portion of the City Ditch and the Granting of an Updated Easement Across the Waterworks Property. EXECUTIVE SUMMARY The purpose of this item is to request approval of a proposed agreement between the City, the Larimer County Canal No. 2 Irrigating Company (“Ditch Company”), and The James S. Brinks Trust formed under the Trust Agreement dated November 30, 2007 (“Trust”), the quit claim of a portion of the City Ditch, the granting of an updated easement across the Waterworks property, and the City’s acquisition of carriage rights. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The City built the City Ditch from the Poudre River to the City’s first waterworks facility for treated water supply in 1882-1883. That now retired waterworks facility is located on the City’s Waterworks Parcel, south of Bingham Hill Road and west of North Overland Trail. The District Court of Larimer County issued a Court order on September 15, 1892, which was recorded in the real property records of Larimer County at Book 87, Pages 556 through 559 (“1892 Decree”). Under the 1892 Decree, the City was granted fee ownership of the strip of land containing the City Ditch. The original point of diversion of the Larimer County Canal No. 2 (also known as the “Larimer No. 2 Ditch”) was located shortly downstream of the point of diversion of the City Ditch. In 1906, the Ditch Company and the City entered into a 99-year lease authorizing the Ditch Company to use the City Ditch as the initial portion of the Larimer No. 2 Ditch. After the 99-year lease expired, the Ditch Company and the City entered into several one-year extensions and, in 2010, entered into a permanent Easement Deed with Terms and Conditions, which was recorded in the real property records of Larimer County on August 3, 2010, at Reception No. 20100044752 (“2010 Easement Agreement”). The 2010 Easement Agreement applies to the City Ditch Parcel, which extends from the Poudre River to Bingham Hill Road, and to the Larimer No. 2 Ditch as it traverses the Waterworks Parcel. The Trust owns the Trust Parcel, which comprises lands north of Bingham Hill Road surrounding the City Ditch Parcel. The Trust disputes the City’s claim of fee ownership of the City Ditch Parcel. The dispute between the City and the Trust regarding the City Ditch Parcel has various potential negative consequences for the City both directly and as a shareholder in the Ditch Company. The favorable resolution would serve the public. The three parties have negotiated an agreement on the various issues raised by and associated with the 1892 Decree and the City Ditch Parcel. 10 Packet Pg. 61 Agenda Item 10 Item # 10 Page 2 PROPOSED AGREEMENT The proposed agreement is a multi-part agreement, which is attached to the Ordinance. There is an Umbrella Agreement and Exhibits A, B, C, and D of the Umbrella Agreement. The Umbrella Agreement provides a road map of the various components of the agreement and serves as an agreement to simultaneously execute various documents, which are Exhibits B, C, and D of the Umbrella Agreement. Exhibit A of the Umbrella Agreement is a map of the City Ditch Parcel. Exhibit B of the Umbrella Agreement is a quitclaim deed from the City to the Trust for the City Ditch Parcel. While the City owns the City Ditch Parcel, the land and its fee ownership by the City are not part of current or planned Utilities’ operations. Under the proposed agreement, in exchange for the conveyance of the City Ditch Parcel, the City will acquire more certain and more usable rights to convey water through the City/Larimer No. 2 Ditch as it traverses the Trust and Waterworks Parcels, as well as through the entire length of the Larimer No. 2 Ditch, as discussed below. It is the opinion of staff that, through the agreement, the City will receive value in an amount greater than the fair market value of the City Ditch Parcel. It is also the opinion of staff that the conveyance of the City Ditch Parcel is in the best interests of the City and will not materially impair the viability of the water utility system as a whole, and will be for the benefit of the citizens of the City. Exhibit C of the Umbrella Agreement is an easement for the Ditch Company from the Trust across the City Ditch/Trust Parcel. As noted above, the Ditch Company currently operates under the 2010 Easement Agreement across this parcel. Exhibit C would replace the 2010 Easement Agreement across this parcel and allow the Ditch Company to continue to operate the Larimer No. 2 Ditch across this parcel with a greater level of certainty regarding the Ditch Company’s rights. The Ditch Company would also benefit from various terms in Exhibit C, which would allow the Ditch Company to have fewer restrictions on its operations. The City owns approximately 71.1% of the stock in the Ditch Company. Exhibit D of the Umbrella Agreement is an easement for the Ditch Company from the City across the Waterworks Property. As noted above, the Ditch Company currently operates under the 2010 Easement Agreement across this parcel. Exhibit D would replace the 2010 Easement Agreement across this parcel. Certain terms and conditions from the 2010 Easement Agreement that are intended to protect the Waterworks Property from damages are carried through into Exhibit D. City staff and the Ditch Company have agreed to some revisions to these protective terms and conditions and, in the interest of completing the transaction in a more timely manner, have further agreed to review some of these terms in the near term to fully evaluate whether their subsequent modification would better serve both the City and the Ditch Company. It is the opinion of staff that, through the agreement, the City will receive value in an amount greater than the fair market value of the replacement easement. It is also the opinion of staff that the granting of the replacement easement is in the best interests of the City and will not materially impair the viability of the water utility system as a whole, and will be for the benefit of the citizens of the City. Exhibits C and D both confirm the City’s rights to use the unused capacity of the entire length of the Larimer No. 2 Ditch. This will facilitate future projects, including potential future gravel pit storage projects, such as the project that is being considered as an alternative for the Halligan Water Supply Project. Exhibits C and D also both provide the Ditch Company with greater flexibility in its operations, including its ability to run other water users’ water in the Larimer No. 2 Ditch. This may facilitate the ability of the East Larimer County Water District and the Fort Collins-Loveland Water District to acquire the rights to use the Larimer No. 2 Ditch to fill their Overland Trail Reservoirs, which are reclaimed gravel pit reservoirs below the ditch. NEXT STEPS If City Council approves the proposed agreement, City staff will work with the Trust and the Ditch Company to close the transaction. 10 Packet Pg. 62 Agenda Item 10 Item # 10 Page 3 CITY FINANCIAL IMPACTS Exhibit B of the Umbrella Agreement is a quitclaim deed from the City to the Trust for the City Ditch Parcel. It is the opinion of staff that, through the agreement, the City will receive value in an amount greater than the fair market value of the City Ditch Parcel. It is also the opinion of staff that the conveyance of the City Ditch Parcel is in the best interests of the City and will not materially impair the viability of the water utility system as a whole, and will be for the benefit of the citizens of the City. Exhibit C would replace the 2010 Easement Agreement across this parcel and allow the Ditch Company to continue to operate the Larimer No. 2 Ditch across this parcel with a greater level of certainty regarding the Ditch Company’s rights. The Ditch Company would also benefit from various terms in Exhibit C, which would allow the Ditch Company to have fewer restrictions on its operations. The City owns approximately 71.1% of the stock in the Ditch Company. BOARD / COMMISSION RECOMMENDATION At its October 15, 2015 meeting the Water Board voted 7-0 to recommend City Council approve the agreement regarding the City Ditch Parcel as described above. PUBLIC OUTREACH Over the past several years, City staff has worked extensively with representatives of the Ditch Company and the Trust on the issues addressed in the proposed agreement, as well as on the specific terms and conditions of the proposed agreement itself. Such work has included extensive correspondence, numerous discussions and meetings, and several site visits. City staff also presented the proposed agreement to Water Board on October 15, 2015 following the required public notice. ATTACHMENTS 1. Vicinity map (PDF) 2. Water Board minutes, October 15, 2015 (PDF) 10 Packet Pg. 63 Larimer No.2 – Brinks Agreement Location Map ATTACHMENT 1 10.1 Packet Pg. 64 Attachment: Vicinity map (3694 : Larimer No. 2 - Brinks Agreement) Excerpt from Unapproved Meeting Minutes – Water Board October 15, 2015 8. Larimer County Canal No. 2/Rose Brinks Agreement (Attachments available upon request) Assistant City Attorney Eric Potyondy summarized the agenda item, which is to request Water Board’s recommendation to City Council that they approve a proposed agreement between the City, the Larimer County Canal No. 2 Irrigating Company, and The James S. Brinks Trust formed under the Trust Agreement dated November 30, 2007, regarding the City Ditch. The City claims fee ownership of a strip of land containing the City Ditch/Larimer County No. 2 Canal, which extends from the Poudre River to Bingham Hill Road (Larimer County Road 50E) (referred to as the “City Ditch Parcel”). The Trust owns the surrounding lands north of Bingham Hill Road (“Trust Parcel”). The Trust disputes the City’s claim to the City Ditch Parcel. The Ditch Company operates the Larimer County No. 2 Canal (“Larimer No. 2 Ditch”), which runs through this strip of land. The City Ditch/Larimer No. 2 Ditch also traverses the City’s parcel of land containing the historical Waterworks south of Bingham Hill Road (“Waterworks Parcel”). The City, Ditch Company, and Trust have negotiated a multi-part agreement to address the various issues. Under the proposed agreement, the City would convey its interest in the City Ditch Parcel to the Trust by a quitclaim deed. The Trust would convey a detailed easement across the City Ditch /Trust Parcel to the Ditch Company, which will allow the Ditch Company to continue to operate the Larimer No. 2 Ditch with a greater level of certainty. The City will convey a detailed easement across the Waterworks Parcel, which will replace a previous easement across this parcel and will permit the Ditch Company to operate the Larimer No. 2 Ditch in a less restricted manner, while still preserving the City’s rights to protect the Waterworks Parcel. The Company will also confirm the City’s rights to utilize unused capacity in the entire Larimer No. 2 Ditch to carry water. All parties to the proposed agreement would benefit with little cost. City staff believes the conveyance of the City Ditch Parcel is in the best interests of the City and will not materially impair the viability of the water utility system as a whole. Next steps include two readings at upcoming City Council meetings. Discussion Highlights A board member inquired about a related issue coming up years ago involving Rose Brinks, the City of Greeley pipeline, and the easement. Mr. Potyondy explained that Greeley needed an easement to get its new treated-water pipeline across the land in question, which is an ongoing issue. Mr. Haukaas added that Ms. Brinks disputes the City’s right to grant an easement in the first place; he later stated there’s a difference in ATTACHMENT 2 10.2 Packet Pg. 65 Attachment: Water Board minutes, October 15, 2015 (3694 : Larimer No. 2 - Brinks Agreement) what you can do with the land based on whether it’s owned in fee and owned in right-of- way. A board member inquired what would happen to the Greeley easement if the City issues a quit claim deed. Mr. Potyondy replied that the easement would still be valid. The deed to the Brinks parcel expressly excludes the piece of land in question. The current agreement acknowledges the City owns the land but is giving it to the Brinks Trust so that the problem is resolved. A board member inquired about whether Ms. Brinks is making any requests regarding ditch crossings for future development. Mr. Potyondy replied he and the ditch company’s attorney toured the property, and the exhibit shows all the current crossings. Additional crossings would be charged a fee by the ditch company. A board member inquired about capacity and whether Ms. Brinks has rights to any of it. Mr. Potyondy replied it’s his understanding that that she or the Trust owns one share of 1,200 or so shares in the ditch company. As proposed in the agreement, if there’s unused capacity, shareholders in the ditch company have first claim on it, provided that they enter into an arrangement with the ditch company. Under this agreement, the Brinks Trust would have a right to a pro rata of the unused capacity. A board member inquired whether Water Board is setting a precedent by recommending approval of this proposed agreement. Mr. Potyondy replied he doesn’t believe so because it’s a unique situation, and he’s not aware of any other ditches in which the City has a claim to fee-ownership and this kind of contractual agreement with the ditch company. Board member Brian Brown moved that Water Board recommend to City Council approval of the proposed agreement regarding the city parcel, Larimer Canal No. 2 and the Brinks Trust. Board Member Michael Brown seconded the motion. Vote on the motion: It passed unanimously 7-0. 10.2 Packet Pg. 66 Attachment: Water Board minutes, October 15, 2015 (3694 : Larimer No. 2 - Brinks Agreement) ORDINANCE NO. 137, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CITY MANAGER AND THE MAYOR TO ENTER INTO AN AGREEMENT REGRADING THE CITY DITCH, INCLUDING THE QUIT CLAIM OF A PORTION OF THE CITY DITCH AND THE GRANTING OF AN UPDATED EASEMENT ACROSS THE WATERWORKS PROPERTY WHEREAS, the City is the fee owner of certain real property described in and pursuant to a Court Order issued on September 15, 1892, by the District Court of Larimer County, Colorado and recorded in the real property records of Larimer County at Book 87, Pages 556 through 559 (“Subject Land” and “1892 Decree”); and WHEREAS, the City is the fee owner of certain real property described in the Warranty Deed, dated September 18, 1889, and recorded in the real property records of Larimer County on April 30, 1891, at Reception Number 36766, Book 78, Page 490 (“Waterworks Parcel”); and WHEREAS, the City Ditch traverses the Subject Land and the Waterworks Parcel; and WHEREAS, the Larimer County Canal No. 2 Irrigating Company (“Ditch Company”) is the operator of the Larimer County Canal No. 2; and WHEREAS, in 1906, the Ditch Company entered into a 99-year lease agreement with the City that allowed the Ditch Company to operate the Larimer County Canal No. 2 in the location of the City Ditch as it crosses the Subject Land and the Waterworks Parcel; and WHEREAS, following the expiration of the 99-year lease, the City and the Ditch Company entered into several short-term extension agreements and, thereafter, a long-term easement agreement in 2010, which was recorded in the real property records of Larimer County on August 3, 2010, at Reception No. 20100044752 (“2010 Easement Agreement”); and WHEREAS, the City is a major shareholder in the Ditch Company; and WHEREAS, the James S. Brinks Trust formed under the Trust Agreement dated November 30, 2007 (“Trust”) is fee owner of the lands generally to the west and east of the Subject Land; and WHEREAS, the Trust disputes the City’s fee ownership of the Subject Land and claims that the City only owns a right-of-way on the Subject Land under the 1892 Decree; and WHEREAS, the dispute between the City and the Trust regarding ownership of the Subject Land has various potential negative consequences for the City both directly and as a shareholder in the Ditch Company, the favorable resolution of which would serve the public; and WHEREAS, the City, the Ditch Company, and the Trust have negotiated an agreement, attached hereto as Exhibit “A” (the “Agreement”), whereby the three parties would address and Packet Pg. 67 resolve the various issues associated with the City Ditch and the 1892 Decree in a manner that is favorable to all three parties; and WHEREAS, as part of that Agreement, the City would convey the Subject Land to the Trust by quitclaim deed in the form attached as Exhibit “B” to the Agreement (the “Deed”), replace the 2010 Easement Agreement on the Waterworks Parcel with an easement in the form attached as Exhibit “D” to the Agreement (the “Waterworks Easement”), and receive various other benefits, as set forth in the Agreement; and WHEREAS, City Code Section 23-111(a) states that the City Council is authorized to convey interests in real property owned in the name of the City provided that the City Council finds first, by ordinance, that such conveyance is in the best interest of the City; and WHEREAS, City Code Section 23-111(b) states that, with respect to real property that is part of the City’s water or utility systems, the City Council must also find that the disposition will not materially impair the viability of the particular utility as a whole and will be for the benefit of the citizens of the City; and WHEREAS, City Code Section 23-114 states that any conveyance of property interests approved under Sections 23-111(a) and (b) must be for an amount equal to or greater than the fair market value; and WHEREAS, staff has determined that, under the Agreement, in exchange for the Subject Land and the granting of the Waterworks Easement, the City would receive carriage rights in the Larimer County Canal No. 2 that have a value equal to or greater than the fair market value of the Subject Land and the Waterworks Easement; and WHEREAS, the Water Board has reviewed the Agreement and, at its October 15, 2015, meeting, unanimously recommended that the City Council approve the Agreement; and WHEREAS, the City Manager and City staff have recommended to the City Council that it approve the Agreement as set forth herein. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. City Council finds, pursuant to Section 23-111(a) of the City Code, that the disposition of the Subject Land and the Waterworks Easement pursuant to an agreement that is substantially similar to the attached Agreement is in the best interests of the City. Section 2. City Council finds, pursuant to Section 23-111(b) of the City Code, that the disposition of the Subject Land and the Waterworks Easement pursuant to an agreement that is substantially similar to the attached Agreement will not materially impair the viability of the water utility system as a whole and that it will be for the benefit of the citizens of the City. Packet Pg. 68 Section 3. City Council finds, pursuant to Section 23-114 of the City Code, that the disposition of the Subject Land and the Waterworks Easement pursuant to an agreement that is substantially similar to the attached Agreement will result in the City receiving a value in an amount equal to or greater than the fair market value of the Subject Land and the Waterworks Easement. Section 4. City Council authorizes the City Manager to execute the Agreement in substantially the form attached hereto as Exhibit AA@, with such additional terms and conditions as the City Manager, in consultation with the City Attorney, determines to be necessary and appropriate to protect the interests of the City or effectuate the purpose of this Ordinance. Section 5. The Mayor is hereby authorized to execute the Deed in substantially the form of Exhibit B to the attached Agreement to convey the Subject Land, provided that such quitclaim deed is executed as part of an Agreement as set forth in Section 4 above. Section 6. That the Mayor is hereby authorized to execute the Waterworks Easement in substantially the form of Exhibit “D” to the attached Agreement, provided that such easement is executed as part of an Agreement as set forth in Section 4 above. Introduced, considered favorably on first reading, and ordered published this 3rd day of November, A.D. 2015, and to be presented for final passage on the 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk Packet Pg. 69 AGREEMENT (The City of Fort Collins, The Larimer County Canal No. 2 Irrigating Company, and The James S. Brinks Trust formed under the Trust Agreement dated November 30, 2007) This AGREEMENT is made this ____ day of __________________, 2015 between the LARIMER COUNTY CANAL NO. 2 IRRIGATING COMPANY (“Company”), a Colorado nonprofit corporation, the CITY OF FORT COLLINS, COLORADO (“City”), a Colorado municipal corporation, and the JAMES S. BRINKS TRUST formed under the Trust Agreement dated November 30, 2007, c/o Rose L. Brinks, Trustee of the James S. Brinks Trust (“Trust”) all of which are sometimes referred to herein as the “Parties.” FACTUAL RECITALS A. The City is the owner of certain real property described in and pursuant to a Court Order issued on September 15, 1892, by the District Court of Larimer County, Colorado and recorded in the real property records of Larimer County at Book 87, Pages 556 through 559 (“Subject Land” and “1892 Decree”). The Subject Land is generally located in the north half (N1/2) of Section 32, Township 8 North, Range 69 West, 6 th P.M., and a portion of the southwest quarter (SW1/4) of Section 29 Township 8 North, Range 69 West, 6 th P.M., Larimer County, Colorado, the approximate location of which is shown on Exhibit A, attached hereto and incorporated herein by this reference. B. The Parties acknowledge and agree that they each possess the following mutual interests in the Subject Land: 1. The City claims fee owner of the Subject Land pursuant to the 1892 Decree. The Trust claims that the City only owns a right-of-way on the Subject Land under the 1892 Decree. 2. The Trust is fee owner of the lands generally to the west and east of the Subject Land. 3. The Company is the operator of a canal or ditch known as the Larimer County No. 2 Canal (“Ditch”). The Ditch passes through portions of the Subject Land in a ditch channel originally operated by the City and originally referred to as the “City Ditch,” which is located as approximately shown on ExhibitA. The Company entered into a 99-year lease agreement with the City that allowed the Company to operate the Ditch in the location of the City Ditch as it crosses the Subject Land (“Lease Agreement”). Following expiration of the Lease Agreement, the City and the Company entered into an easement agreement in 2010, whereby the City granted an easement to the Company on, over, under and across the Subject Land for the operation, maintenance and utilization of the portion of the Ditch that traversed the Subject Land, which easement was recorded in the real property records of Larimer County on August 3, 2010, at Reception No. 20100044752 (“2010 Easement Agreement”). 1 EXHIBIT A 1 Packet Pg. 70 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) C. The Parties wish to resolve any disputes related to interests in the Subject Land. To that end, the City desires to quitclaim its ownership interests in the Subject Land to the Trust, pursuant to the terms and conditions set forth in the Quit Claim Deed attached hereto as Exhibit B and referred to hereinafter as the “Quitclaim Deed.” D. In exchange for the City quitclaiming the Subject Land to the Trust and the City and the Company terminating and replacing the 2010 Easement Agreement respect to the Subject Land, Rose L. Brinks, as Trustee of the Trust, agrees to enter into a new easement agreement with the City and Company on behalf of the Trust, with the goal of recognizing and memorializing in writing the mutual interests and correlative rights of the Parties in the Subject Land as set forth in the Easement Agreement attached hereto as Exhibit C and incorporated herein (“2015 Easement Agreement”). E. The City and the Company also desire to terminate and abandon the 2010 Easement Agreement with respect to the Subject Land and with respect to the following parcel of land also subject to the 2010 Easement Agreement: certain real property conveyed to Grantor by Warranty Deed on September 18, 1889, and recorded in the real property records of Larimer County on April 30, 1891, at Reception Number 36766, Book 78, Page 490, generally located in the northwest quarter (NW1/4) of the southeast quarter (SE1/4) of Section 32, Township 8 North, Range 69 West, 6 th P.M., Larimer County (“Waterworks Land”). The Trust has no interest in the Waterworks Land or the agreement regarding the same as contemplated herein. F. In exchange for the various mutual covenants, covenants, agreements, representations, and warranties referred to herein, the City and the Company further agree to enter into a new easement agreement, with the goal of recognizing and memorializing in writing the mutual interests and correlative rights of the City and the Company in the Waterworks Land as set forth in the Easement Agreement attached hereto as ExhibitD and incorporated herein (“Waterworks Agreement”). AGREEMENT NOW THEREFORE, in consideration of the mutual covenants, agreements, representations, and warranties contained in this Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows: 1. Factual Recitals. The above recitals are hereby incorporated herein by reference as if fully set forth. 2. The City’s Representations and Warranties. The City hereby represents that it has full legal power, authority and right to enter into this Agreement affecting the Subject Land and the Waterworks Land, and to carry out the terms of this Agreement. 3. The Company’s Representations and Warranties. The Company hereby represents and warrants that it has full legal power, authority and right to enter into this 2 1 Packet Pg. 71 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) Agreement affecting the Subject Land and the Waterworks Land and to carry out terms of this Agreement. 4. The Trust Representations and Warranties. Rose L. Brinks, as Trustee of the Trust, hereby represents and warrants that the Trust is the owner of the Brinks Property and that she, as Trustee of the Trust, has full legal power, authority and right on behalf of the Trust to enter into this Agreement affecting the Subject Land, and to carry out its terms. 5. Quitclaim Deed, Easement Deed and Agreement. a. The City hereby agrees to relinquish its rights to the Subject Land, conditioned upon the execution and recording of the 2015 Easement Agreement as set forth herein. To this end, simultaneous with the execution of this Agreement, the City shall execute and deliver to the Trust, at the closing specified below, the accompanying Quitclaim Deed attached hereto as Exhibit B. b. Additionally, the City and the Company hereby agree to terminate the 2010 Easement Agreement on the Subject Land, as set forth herein, and in exchange for, the 2015 Easement Agreement attached hereto as ExhibitC that shall replace the 2010 Easement Agreement on the Subject Land. c. In exchange for the quitclaim of the Subject Land by the City to the Trust and the termination and replacement of the 2010 Easement Agreement by the City and the Company, Rose L. Brinks, acting as Trustee of the Trust, shall execute and deliver to the City and the Company at the closing specified below, the accompanying 2015 Easement Agreement. The Parties acknowledge the purpose of the 2015 Easement Agreement is to define, recognize and memorialize in writing the Parties’ mutual interests in the Subject Land, including the City’s retention and reservation of its rights in the Subject Land as further set out in the Quitclaim Deed and 2015 Easement Agreement, and the Company’s rights to continue for the use and enjoyment of the portion of the Ditch that is located on the Subject Land as set forth in the 2015 Easement Agreement. 6. Waterworks Agreement. In exchange for the various mutual covenants, covenants, agreements, representations, and warranties referred to herein, the City and the Company agree to enter into the Waterworks Agreement, attached hereto as Exhibit D at closing specified below. The City and the Company acknowledge the purpose of the Waterworks Agreement is to define, recognize and memorialize in writing the City’s and the Company’s mutual interests in the Waterworks Land, and the Company’s rights to continue for the use and enjoyment of the portion of the Ditch that is located on the Waterworks Land as set forth in the Waterworks Agreement. The Trust has no interest in the Waterworks Land or the Waterworks Agreement. 7. Closing. The closing of the conveyances and agreements described herein shall take place at the following date, time, and location: ________________________. Immediately upon full execution and delivery of the Quit Claim Deed, the 2015 Easement Agreement, and the Waterworks Agreement, consistent with this Agreement, the 2015 Easement Agreement, and the 3 1 Packet Pg. 72 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) Waterworks Agreement, __________________ shall cause said instruments to be recorded in the real property records of the Larimer County Clerk and Recorder in the order so stated. The cost of such recording shall be borne equally by the City and the Company. 8. Relationship of the Parties. The Parties to this Agreement are not employees, agents, joint venturers, or partners for any purpose whatsoever. Nothing in this Agreement shall authorize or empower any of the Parties to create or assume any obligation or responsibility whatsoever, express or implied, in the name of or on behalf of the others, nor make any representation, warranty or agreement in the name of or on behalf of the others. 9. Additional Acts. The Parties agree to perform any lawful additional acts, including but limited to, execution of additional documents as are reasonably necessary to effectuate the entirety or any part of this Agreement. 10. Modification and Waiver. Any waiver, modification, amendment, discharge or change in this Agreement, except as otherwise provided herein, must be in writing and signed by the party against whom the enforcement of such modification, waiver, amendment, discharge or change is sought. Notwithstanding the foregoing, it is the express intention, agreement and covenant of each party hereto that none of the parties hereto shall at any time, or in any way, seek to enforce, prove or benefit from any claim or assertion of any verbal or unwritten modification, amendment or waiver of any term in this Agreement, and further, that it is the express covenant and warranty of each party hereto that such attempt shall be void and of no effect whatsoever. 11. Entire Agreement. This Agreement, and the attachments hereto, represents the complete and final expression of the agreements and undertakings related hereto between the Parties. 12. Successor and Assigns. This Agreement and the rights of the Parties hereunder shall be binding upon and shall inure to the benefit of the Parties hereto and their heirs, legal representatives and successors. 13. Governing Law. This Agreement shall be governed by, and construed in accordance, with, the law of the State of Colorado. IN WITNESS WHEREOF, the Parties have executed this Agreement upon the date set forth above. [REMAINDER OF PAGE LEFT BLANK INTENTIONALLY] 4 1 Packet Pg. 73 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) THE CITY OF FORT COLLINS, a municipal corporation. By:___________________________ _______________ Mayor ATTEST: _________________________ City Clerk APPROVED AS TO FORM: _________________________ Deputy City Attorney STATE OF COLORADO ) ) ss. COUNTY OF LARIMER ) The foregoing instrument was acknowledged before me this ______ day of _________________, 2015, by _______________as Mayor of The City of Fort Collins, Colorado, a municipal corporation. WITNESS my hand and official seal. ________________________________ Notary Public My commission expires: ____________ 5 1 Packet Pg. 74 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) THE LARIMER COUNTY CANAL NO. 2 IRRIGATING COMPANY, a Colorado nonprofit corporation By:_________________________________ ________________, President STATE OF COLORADO ) ) ss. COUNTY OF ____________) The foregoing instrument was acknowledged before me this ______ day of _________________, 2015, by __________________, President of the Larimer County Canal No. 2 Irrigating Company, a Colorado nonprofit corporation. WITNESS my hand and official seal. ________________________________ Notary Public My commission expires: ____________ 6 1 Packet Pg. 75 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) THE JAMES S. BRINKS TRUST By:_________________________________ Rose L. Brinks, as Trustee of the James S. Brinks Trust, formed under the Trust Agreement dated November 30, 2007 STATE OF COLORADO ) ) ss. COUNTY OF LARIMER ) The foregoing instrument was acknowledged before me this ______ day of ___________________, 2015, by Rose L. Brinks, Trustee of the James S. Brinks Trust formed under the Trust Agreement dated November 30, 2007. WITNESS my hand and official seal. ________________________________ Notary Public My commission expires: ____________ 7 1 Packet Pg. 76 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) EXHIBIT A TO AGREEMENT (The above image is from a Court Order issued on September 15, 1892, by the District Court of Larimer County, Colorado and recorded in the real property records of Larimer County at Book 87, Pages 556 through 559, with said image appearing on page 557.) 1 Packet Pg. 77 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) [EXHIBIT B TO AGREEMENT] QUIT CLAIM DEED This QUIT CLAIM DEED, made this ___ day of , 2015, between the CITY OF FORT COLLINS, COLORADO, a municipal corporation (“Grantor”), whose mailing address for the purpose of this Quit Claim Deed is 300 LaPorte Avenue, Fort Collins, Colorado 80521, and JAMES S. BRINKS TRUST formed under the Trust Agreement dated November 30, 2007, c/o Rose L. Brinks, Trustee of the James S. Brinks Trust (“Grantee”), whose mailing address for the purpose of this Quit Claim Deed is P.O. Box 710, LaPorte, Colorado 80535. WITNESSETH: That Grantor, for and in consideration of the sum of Ten Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and pursuant to City Council Ordinance No. ___, 2015, which was approved and adopted on ______________, 2015, has remised, released, sold, conveyed, and quit claimed, and by these presents does remise, release, sell, convey, and QUIT CLAIM unto Grantee, its heirs, and assigns, forever, all the right, title, interest, claim and demand which Grantor has in and to the real property, together with improvements, if any, situate, lying, and being in the County of Larimer, State of Colorado described as follows: Any and all interests granted in the Court Order issued on September 15, 1892, by the District Court of Larimer County, Colorado and recorded in the real property records of Larimer County at Book 87, Pages 556 through 559, which property is generally located in the north half (N1/2) of Section 32, Township 8 North, Range 69 West, 6 th P.M., and a portion of the southwest quarter (SW1/4) of Section 29 Township 8 North, Range 69 West, 6 th P.M., Larimer County; TO HAVE AND TO HOLD the same, together with all and singular the appurtenances and privileges thereunto belonging or in anywise thereunto appertaining, and all the estate, right, title, interest, and claim whatsoever of Grantor, either in law or equity, in its current condition and on an “as is” basis to the only proper use, benefit, and behalf of Grantee, its heirs, personal representatives, and assigns, forever. [REMAINDER OF PAGE LEFT BLANK INTENTIONALLY] QUIT CLAIM DEED Page 1 of 2 1 Packet Pg. 78 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) GRANTOR: CITY OF FORT COLLINS, COLORADO, a Municipal Corporation By: _________________________ _______________ ATTEST: Mayor _______________________ City Clerk APPROVED AS TO FORM: Assistant City Attorney STATE OF COLORADO ) ) ss. COUNTY OF LARIMER ) The foregoing instrument was acknowledged before me this _____ day of _____________, 2015 by ____________________, as Mayor of the City of Fort Collins, and ________________, as City Clerk of the City of Fort Collins. WITNESS my hand and official seal. My commission expires: Notary Public QUIT CLAIM DEED Page 2 of 2 1 Packet Pg. 79 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) [EXHIBIT C TO AGREEMENT] EASEMENT AGREEMENT This EASEMENT AGREEMENT (“Agreement”) is entered into as of the _____ day of ______________, 2015, between THE JAMES S. BRINKS TRUST formed under the Trust Agreement dated November 30, 2007, c/o Rose L. Brinks, Trustee of the James S. Brinks Trust, (“Trust”), and the CITY OF FORT COLLINS, COLORADO, a municipal corporation (“City”) and the LARIMER COUNTY CANAL NO. 2 IRRIGATING COMPANY, a Colorado nonprofit company (“Company”). The Trust, the City, and the Company are collectively referred to herein as the “Parties.” RECITALS A. Pursuant to the Quitclaim Deed between the Trust and the City, dated __________ and recorded in the Larimer County Clerk and Recorder’s under Reception No. ________________ on ____________________ (the “Quitclaim Deed”), the Trust became the owner of certain real property described in a Court Order issued on September 15, 1892, by the District Court of Larimer County, Colorado and recorded in the real property records of Larimer County at Book 87, Pages 556 through 559 (“Subject Land”), which is generally located in the north half (N1/2) of Section 32, Township 8 North, Range 69 West, 6 th P.M., and a portion of the southwest quarter (SW1/4) of Section 29 Township 8 North, Range 69 West, 6 th P.M., Larimer County, Colorado, the approximate location of which is shown on Exhibit 1, attached hereto and incorporated herein by this reference. B. The City originally constructed in the 1880s a ditch channel on the Subject Land known as the “City Ditch” and has since the time of construction continued to operate, or allow others to operate, a ditch using the City Ditch channel and related improvements, including the operation of the Larimer County Canal No. 2, as described herein below. The City Ditch channel traverses a portion of the Subject Land as described herein and shown on Exhibit 1. C. The Company is the operator of a canal or ditch known as the Larimer County Canal No. 2, and certain water diversion and conveyance structures, culverts, pipes, equipment and other improvements used in connection with the operation of such ditch (the “Larimer No. 2 Ditch”). All diversions, structures, culverts, pipes, equipment and other improvements of the Company or the City associated with the Larimer No. 2 Ditch or the City Ditch on the Subject Land shall be referred to collectively as the “Ditch.” D. Beginning in 1906, the City leased the City Ditch to the Company. Subsequently, the City entered into an Easement Deed with the Company on June 21, 2010, whereby the City granted the Company certain rights related to the Company’s use and enjoyment of the City Ditch for operation of the Ditch in accordance with specified terms and conditions and reserved its own interests in the Subject Land and the City Ditch, recorded in the real property records of Larimer County on August 3, 2010, at Reception No. 20100044752 (“2010 Easement Agreement”). E. By this Agreement, the City and the Company wish to terminate and replace the 2010 Easement Agreement and abandon any rights and interests affecting the Subject Land thereunder. 1 Packet Pg. 80 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) F. The Parties also wish to document and incorporate the prescriptive rights arising from historical use and operation of the Ditch on the Subject Land. G. The Parties agree that the Company has a valid existing easement and right of way for the Ditch on the Subject Land and sufficient lands on each side of the Ditch to allow it to fully enjoy and utilize the Ditch, subject to the City’s rights to use the Ditch as set forth herein. In an effort to better describe the extent of the easement and right of way for the Ditch enjoyed by the Companyon the Subject Land, subject to the City’s rights to use the Ditch as set forth herein, and to define, recognize and memorialize in writing the mutual interests and correlative rights the Parties have in the Subject Land, the Parties enter into this Agreement. AGREEMENT NOW, THEREFORE, for good and valuable consideration received by them, the receipt and sufficiency of which are hereby acknowledged, the Parties covenant and agree as follows: 1. Recitals. The factual recitals above are hereby incorporated by reference as though fully set forth. 2. Abandonment of 2010 Easement Agreement. By this Agreement the City and the Company terminate and abandon any rights under the 2010 Easement Agreement on the Subject Land. The Parties understand and acknowledge that this Agreement, and the terms and conditions contained herein, supersedes and replaces the 2010 Easement Agreement as it relates to the Subject Land and any rights on, over, under or across the Subject Land. 3. Grant of “Brinks Easement” on the Subject Land by the Trust – Consideration. For and in consideration of the covenants and agreements herein set forth, the sum of Ten Dollars ($10.00), and other good and valuable consideration, the receipt and adequacy of which the Trust acknowledges, the Trust grants, sells and conveys to the Company, its successors and assigns, as is, subject to all existing rights and claims of right, and without warranty of any kind, a perpetual, non- exclusive easement and right-of-way on, over, under and across the Brinks Easement Area on the Subject Land, as defined below in Paragraph 4.1, for the uses stated herein, subject to the conditions and restrictions set forth below, and subject to the City’s rights to use the Ditch as set forth herein (referred to herein as the “Brinks Easement” because it crosses land now owned by the Trust). 4. Brinks Easement on the Subject Land. 4.1. Scope of Brinks Easement. The Parties agree and acknowledge that the Trust’s conveyance of the Brinks Easement on the Subject Land includes an easement and right-of-way for the purposes set forth herein, together with sufficient lands on each side of the Ditch for its maintenance, repair, operation, improvement, enlargement, access (including, without limitation, vehicular and pedestrian), and includes the right to carry out any actions reasonably necessary to fully utilize and enjoy the easement and right of way; however, in no event shall said easement and right-of-way on the Subject Land be less than twenty-five feet in width on the east side of the Ditch, measured as twenty-five feet (25’) from the top of the bank of the Ditch and twenty feet (20’) on the west side of the Ditch 2 1 Packet Pg. 81 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) measured from the top of the bank of the Ditch (“Brinks Easement Area”). The approximate location of the Brinks Easement Area is shown on Exhibit 1. Nothing herein is intended to grant an easement across the Subject Land for general public. 4.2. Point of Reference for the Location of Brinks Easement. The centerline of the Ditch varies significantly throughout the Subject Land, and, therefore, may not provide a consistent or practical reference point. Instead, the top of the bank of the Ditch as it exists at any given point in time shall be the point of reference. 4.3. Right of Ingress and Egress. The Company shall also have the right of ingress and egress to and from the Ditch and Brinks Easement over and across the Subject Land by means of roads and lanes thereon, if such exist or as such may be constructed by the Trust in the future, otherwise by such route or routes as shall occasion the least practicable damage and inconvenience to the Trust. The Company agrees than certain trees may be permitted to remain in the Brinks Easement on the Subject Land, and therefore the Company may go outside of the Brinks Easement where necessary to avoid obstructions. 4.4. No Obstructions on Brinks Easement. The Trust, its heirs, successors, and/or assigns, shall not erect nor place any building, structure, drainage pipes, improvement, fence, landscaping, shrubbery, or tree on or within the Ditch and/or Brinks Easement or alter the Brinks Easement Area in any way, except as expressly set forth herein. The Company shall not be liable for damage to any unauthorized alterations of the Brinks Easement Area, and the Company may remove any of the same. The Trust shall be liable to the Company for any damages or costs resulting from the alteration of the Brinks Easement Area in violation of this provision. However, the Trust shall have certain rights and obligations related to the Brinks Easement, as set forth below in Paragraph 6.2. 4.5. Brinks Easement Inclusions. The Brinks Easement described herein includes, but is not limited to, the Ditch, the beds, banks, slopes, roadway, head gates, diversion boxes, flumes, spillways, and erosion and structural support systems, whether presently existing or constructed in the future. The Trust, its heirs, successors, and/or assigns, shall take no action that reduces in size, disturbs or otherwise affects the Brinks Easement. 4.6. Repair and Maintenance of Ditch. In the event it is necessary for the Company to repair or maintain the Ditch due to the actions of the Trust, its employees, invitees, successors, and/or assigns, the Trust shall reimburse the Company for such repair or maintenance. Determination of whether repair or maintenance is necessary shall be at the discretion of the Company. Any disputes related to determining which party is responsible for damage to the Ditch shall be resolved in accordance with the terms and conditions of this Agreement. 4.7. The Company as Owner of Ditch and Appurtenances. The Trust acknowledges and understands that the Company is the owner of the Ditch and other appurtenances related to the operation, maintenance, and administration of the Ditch. The Company shall have full power to operate, maintain, alter, enlarge, clean and manage the Ditch and Brinks Easement, subject to the provisions of Paragraph 8 of this Agreement. In 3 1 Packet Pg. 82 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) the event, however, that any such action on the part of the Company could reasonably be expected to affect the Trust’s interest in the Subject Land, except in the event of emergency repairs, the Company agrees to give prior notice to the Trust and to reasonably cooperate with the Trust to avoid damages to the Subject Land. In the event of emergency repairs, the Company agrees to provide notice of the emergency repair to the Trust as soon as reasonably practicable. 5. Other Company Improvements on the Subject Land. The Company shall be entitled to install roads and other types of improvements and structures in the Brinks Easement Area on the Subject Land, provided that installation of any impervious pavement shall be subject to the consent of the Trust (or the Trust’s successor in title to the Subject Land, if applicable). The Company shall have the right to mark the boundaries of the Brinks Easement Area and to install or utilize signs on or over the Brinks Easement Area. 6. Limitations on the Trust Uses and Improvements on the Subject Land. The Trust acknowledges and agrees that the use and improvement of the Subject Land by the Trust, and its heirs or successors in-title, shall be limited as follows: 6.1. No Interference. The Trust, and its heirs or successors in-title, shall not use or modify the Subject Land in any manner that unreasonably interferes with the full enjoyment and exercise by the Company and persons with which the Company has contracted for the use of the Ditch, including the City under this Agreement (“Contractees”). 6.2. Permitted Uses. The Trust, and its heirs or successors in-title, shall be entitled to access and use the Brinks Easement Area provided that such access or use is not inconsistent or incompatible with the rights of the Company and its Contractees, as the Company may expressly permit or authorize and subject to such limitations and conditions as the Company deems necessary or appropriate, including: 6.2.1. The right of the Trust, at its sole cost and expense, to make limited crossing of the Brinks Easement Area on the Subject Land and construct such limited improvements as may be necessary for personal access by the Trust and its invitees to adjacent property owned by the Trust; provided, however, that any such crossing shall be consistent with and shall not interfere with the Company’s and its Contractees’ existing or prospective use of the Brinks Easement Area, and shall be subject to the express written consent of the Company, in its reasonable discretion, and further provided that the Company acknowledges that two (2) existing bridges in the northwest quarter (NW1/4) of the northwest quarter (NW1/4) of Section 32, Township 8 North, Range 69 West, 6 th P.M., Larimer County, have been previously constructed across the Brinks Easement Area for the benefit of the Trust, and the Company hereby consents to the continued use and maintenance of the same, subject to the condition that the Trust, at its own sole cost, expense and risk maintain the same in a safe and secure condition and prevent any damage to the Ditch or the Brinks Easement Area or any interference with the use of the Brinks Easement Area by the Company or those taking under the Company, and further consent to the replacement or relocation of said existing bridges to locations and consistent with 4 1 Packet Pg. 83 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) designs and specifications determined to be acceptable by the Company, in writing, in its reasonable discretion; 6.2.2. The right of the Trust, at its sole cost, expense and risk, to prune and remove woody material from such trees as may from time to time be present upon the Brinks Easement Area on the Subject Land, including but not limited to the trees referred to in Paragraph 4.4 above, and to harvest fruit from such fruit-bearing trees as may from time to time be present upon the Brinks Easement Area; provided, however, that such right for the benefit of the Trust is not intended to, and does not create, any obligation of the Company to maintain, retain or take or refrain from taking any action related to any such trees, and provided further that the exercise of said limited right by the Trust or its successors-in-interest to the Subject Land shall constitute an ongoing waiver of any claims against the Company, and shall be conditioned upon agreement by the Trust to be liable for, any damage or injury in connection with Grantor’s exercise of the said limited right; 6.2.3. The right of the Trust, at its sole cost, expense and risk, to continue the use, if any, of the following structures that cross and convey water across the Brinks Easement Area, all of which are in existence at the time of this Agreement: (i) a pipe associated with the Burns Ditch, which was the subject of Case No. W- 5429, District Court, Water Division 1; (2) a flume/pipe comprising a portion of the ditch running from Claymore Lake Reservoir to the Cache la Poudre River; and (3) an existing flume comprising a portion of a lateral from the Pleasant Valley and Lake Canal; and 6.2.4. The right of the Trust, at its sole cost, expense and risk, to continue the use, if any, of an existing lateral from the Larimer No. 2 Ditch on the Brinks Easement Area to carry the Trust’s rights to Larimer No. 2 irrigation flows, to the extent such crossing is present and such rights exist as of the date of this Agreement. 7. Overhead Power Transmission Lines in the Brinks Easement Area. The Trust and the Company each agree that the installation of overhead power transmission lines on the Brinks Easement Area on the Subject land shall be subject to the consent of the Trust or its successors-in- title to the Subject Land, and the Company, each in its reasonable discretion. 8. The Company’s and the City’s Use of the Ditch. Before the execution of this Agreement, the Company and the City have been entitled to use the Easement on the Subject Land and the Ditch to convey such water as they deem appropriate, and have been entitled to determine their respective rights and obligations in connection with the Easement, all without the consent or agreement of the Trust. The Company and the City agree that their respective rights to use the Ditch on the Subject Land, and other lands over which the Ditch traverses (i.e., the entire Ditch), shall be as follows: 8.1. The Company’s Rights to the Use of the Ditch Up to Its Capacity and to Enter Into Agreements With Other Parties for the Rights to the Use of the Ditch Up to Its Capacity. The Company shall have the right, at any time and from time to time, to use the Ditch up to 5 1 Packet Pg. 84 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) its Capacity, as defined below, for the conveyance of water. The Company shall also have the right to enter into agreements with Contractees to authorize their use of the Ditch up to its Capacity, as defined below, subject to the terms and conditions of this Agreement. For the purposes of this Agreement, the “Capacity” is defined as the maximum amount of water that can be carried in the Ditch absent any enlargement of the Ditch. The Company shall determine, in its sole discretion, the amount of Capacity at any given time. 8.1.1. Priority of Use of the Capacity. The rights to the use of the Capacity shall be based on a priority system. Under this priority system, if a party with a prior right to the use of the Capacity is not using all or part of the Capacity, the party with the next priority shall be entitled to the use of any unused portion of the Capacity. Any agreements that the Company enters into with Contractees shall be pursuant to the priority system described herein. 8.1.1.1. First Priority: Company Water for Delivery to Shareholders. The Company shall have the first priority to use the Capacity to meet its operational obligations and to carry water attributable to water rights and contractual rights held by the Company for delivery to its shareholders on a pro rata basis. Such water may be attributable to, but not necessarily limited to: (i) diversions to the Ditch under Ditch Priority #57 with an adjudication date of April 11, 1882 and an appropriation date of April 1, 1873, originally decreed for direct irrigation; (ii) water carried by the Company by arrangement with and for the benefit of the Warren Lake Reservoir Company pursuant to existing priorities for storage as follows: (a) Ditch Priority #76 for five hundred fifty (550) acre-feet with an adjudication date of April 11, 1882 and an appropriation date of April 15, 1875; (b) Reservoir Priority #31 for one thousand five hundred forty-five (1,545) acre-feet with an adjudication date of December 9, 1904 and an appropriation date of January 10, 1893; and (c) Reservoir Priority #100 for eight hundred eighteen (818) acre-feet with an adjudication date of April 22, 1922 and an appropriation date of July 27, 1908, totaling two thousand nine hundred thirteen (2,913) acre-feet with no right of refill; (iii) the Company’s historical deliveries of water during the irrigation season pursuant to contractual or leased rights to water available from the Colorado-Big Thompson Project, or pursuant to exchanges listed in the Decree in Case No. W-8086-75, Water Division No. 1, entered on March 24, 1978; and (iv) water historically carried for the benefit of the owner(s) of the John R. Brown Ditch pursuant to Ditch Priority #14 with an adjudication date of April 11, 1882 and an appropriation date of May 1, 1865, decreed for direct irrigation at a flow rate of three and five/tenths (3.5) cubic feet per second (cfs). 8.1.1.2. Second Priority: Excess Capacity Belonging to Company Shareholders. If there is Capacity that is not being used by the Company under its first priority described in the previous paragraph, such unused capacity shall be deemed “Excess Capacity,” and the shareholders in the Company shall have the second priority to use the Excess Capacity to 6 1 Packet Pg. 85 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) carry water attributable to any water rights and contractual rights that may be lawfully delivered through the Ditch, and the amount of such Excess Capacity shall belong to the shareholders in the Company on a pro rata basis as determined by the Company. A shareholder’s use of Excess Capacity shall be made pursuant to an arrangement with the Company. By way of illustration only, if there is 100 cfs of the Capacity that is not being used by the Company, and a shareholder owns 5% of the shares in the Company, said shareholder may have the right to use 5 cfs of such Excess Capacity upon arrangement with the Company. By way of illustration further only, if said shareholder desires to use more than 5 cfs of the Capacity that is not being used by the Company, said shareholder must secure the right to use the “Residual Excess Capacity” as described in the following paragraph. 8.1.1.3. Third Priority: Residual Excess Capacity. If there is Capacity that is not being used by the Company under its first priority described above and is not being used by shareholders under their second priority described in the previous paragraph, such unused capacity shall be deemed “Residual Excess Capacity,” and Contractees shall have the right to use said Residual Excess Capacity pursuant to an agreement with the Company. The rights to the Residual Excess Capacity shall be based on a priority system, under which if a party with a prior right to the use of the Residual Excess Capacity is not using all or part of the Residual Excess Capacity, the party with the next priority shall be entitled to the use of any unused portion of the Residual Excess Capacity. 8.2. The City’s Rights to the Use of the Capacity of the Ditch. The City understands and agrees that Company’s first obligations are to their stockholders as described above and use of Capacity will be permitted only if such uses would in no way be detrimental to the Company or its stockholders. The City shall be entitled to use the Ditch (being its entire length) as a shareholder in the Company and as a Contractee with the Company, as follows: 8.2.1. Excess Capacity Rights. The City currently owns 104.21171 shares of the Company (approximately 71.1%) and therefore currently has such a pro rata entitlement to the use of the Excess Capacity in the Ditch, as described above. The City’s entitlement to the use of the Excess Capacity in the Ditch as described above shall be based on its pro rata ownership of shares in the Company, as that may change from time to time. 8.2.2. Residual Excess Capacity Rights. The City currently has no rights to Residual Excess Capacity in the Ditch. Nothing in this Agreement shall preclude the Company from granting and the City from acquiring Residual Excess Capacity in the Ditch in the future. 8.2.3. Terms and Conditions on the City’s Use of CapacityUnder Its Excess Capacity Rights. 7 1 Packet Pg. 86 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) 8.2.3.1. The City shall be entitled to use Capacity under its Excess Capacity Rights for the carriage and conveyance of any water to which the City is entitled to use pursuant to an appropriation (whether decreed or undecreed), lease, contract, and/or any other legal entitlement or right (“City Water”). Said rights to use Capacity are limited to direct uses by the City and may not be assigned or used by the City for the carriage of water for others. 8.2.3.2. So long as the City is the majority owner of shares in the Company, the City shall not be charged for use of Capacity under its Excess Capacity Rights except for assessments associated with the City’s shares of stock and as set forth in Paragraph 8.2.3.5. 8.2.3.3. At times when the City desires to utilize Capacity under its Excess Capacity Rights, the City shall communicate the details of its desired use to the Company (including the point of inflow, source and amount of water, timing, release, point of delivery, and other relevant information reasonably requested by the Company) and request review and approval from the Company, which request shall be timely considered, and approval shall not be unreasonably withheld so long as such request is consistent with this Agreement and will not interfere with Company operations. 8.2.3.4. The Company may assess the evaporation, seepage, and similar transportation losses (also known as “shrink”) on City Water carried in the Ditch under the City’s Excess Capacity Rights. If City Water is the only water being carried in the Ditch, the City will physically incur all of the transportation losses and the Company will not charge any additional transportation losses. If water other than City Water is being carried in the Ditch when City Water is being carried in the Ditch, the City Water will be assessed for transportation losses at the same rate as assessed to other users of the Ditch, at a reasonable rate determined by the Company. 8.2.3.5. Pursuant to the terms and conditions of this Paragraph, the Company may charge the City for the costs of the City carrying water in the Ditch under the City’s Excess Capacity Rights, which may include administrative, engineering, legal, and personnel costs. Such costs shall not exceed the annual limit. The annual limit shall be $1,500 initially and may be adjusted by the Company to reflect any inflation occurring since the date of this Agreement and the date that the Company charges the City under this Agreement. The inflation index to be used shall be the ENR Index – Construction Costs, or if that index is discontinued, the Company shall use a comparable inflation index agreed upon by the parties. Such costs 8 1 Packet Pg. 87 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) shall be charged to the City by written invoice no less than yearly and shall be paid by the City within 60 days of the receipt of said invoice. The Company shall provide the City with invoices and additional documentation to substantiate such charges. 8.3. Enlargement of the Ditch. The Company shall have the right to enlarge the Ditch, or to contract with third parties for the enlargement of the Ditch, provided, however, that any such enlargement shall not adversely affect the rights of the Company shareholders, Contractees, and the City. For example, and not by means of limitation, if the ability of the Ditch to carry water were reduced for whatever reason and over whatever period of time, and if the Company were to increase the ability of the Ditch to carry water to an amount that the Ditch at one time historically carried water, such increased capacity would not be an enlargement of the Ditch, but would instead be maintenance and the restoration of existing Capacity in which Company shareholders, Contractees, and the City have rights. The City may not construct facilities on or in, or operate or modify the Ditch, its headgate, or any other reservoir, ditch, facility or other structure or property owned, controlled or operated by the Company, unless the written approval of the Company’s Board of Directors is obtained. Such approval may be withheld or denied in the sole and absolute discretion of the Board. The Company, and not the City, shall operate the Ditch to effectuate City’s utilization of its Capacity permitted herein. 9. Notice. Any notice required or permitted hereunder shall be deemed effective when deposited in the United States mail, postage prepaid, first class and addressed to the party to whom notice is to be given, as follows: If to the Trust: James S. Brink Trust c/o Rose L. Brinks, Trustee ______________________ ______________________ If to the Company: The Larimer County Canal No. 2 Irrigating Company c/o President ________________________ ________________________ If to the City: The City of Fort Collins c/o _____________________ ________________________ ________________________ In the event a different person or entity than the person or entity listed above shall be given notice, the other party shall be notified of this change in writing pursuant to this paragraph. 9 1 Packet Pg. 88 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) 10. Covenant Running with Land. This Agreement, and all of its provisions, is binding upon and shall inure to the benefit of the parties, their heirs, successors and assigns, and shall be a covenant running with the Subject Land. 11. Recordation. This Agreement shall be recorded in the records of the Clerk and Recorder of Larimer County, Colorado. The cost of such recording shall be borne equally by the Company and the City. 12. Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of Colorado, excluding conflicts of interest principles. 13. Severability. If any term, covenant, condition or provision of this Agreement or the application thereof to any person or circumstance shall, at any time or to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those to which it is held invalid or unenforceable, shall not be affected thereby, and each provision of this Agreement shall be valid and shall be enforced to the fullest extent permitted by law. 14. Costs of Legal Proceedings. In the event any of the parties institute legal proceedings with respect to this Agreement or the enforcement thereof, or of any term and condition contained herein, the prevailing party shall be entitled to court costs and reasonable attorneys’ fees incurred by such party in connection with such legal provisions. 15. Waiver. The failure of any Party to exercise any right or power given hereunder, or to insist upon strict compliance by the other Party with its obligations set forth herein and/or any custom or practice of the parties at variance with the terms hereof, shall not constitute a waiver of either Party’s rights to demand strict compliance with the terms and conditions of this Agreement. 16. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute an original, and all of which together shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. [REMAINDER OF PAGE LEFT BLANK INTENTIONALLY] 10 1 Packet Pg. 89 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) THE JAMES S. BRINKS TRUST By: _______________________________________ Rose L. Brinks, as Trustee of the James S. Brinks Trust, formed under the Trust Agreement dated November 30, 2007 STATE OF COLORADO ) ) ss. COUNTY OF LARIMER ) The foregoing instrument was acknowledged before me this ______ day of ___________________, 2015, by Rose L. Brinks, Trustee of the James S. Brinks Trust formed under the Trust Agreement dated November 30, 2007. WITNESS my hand and official seal. ________________________________ Notary Public My commission expires: ______ 11 1 Packet Pg. 90 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) THE CITY OF FORT COLLINS, a municipal corporation. By: ___________________________________ ________________________________ Mayor ATTEST: _________________________ City Clerk APPROVED AS TO FORM: _________________________ Assistant City Attorney STATE OF COLORADO ) ) ss. COUNTY OF LARIMER ) The foregoing instrument was acknowledged before me this ______ day of _________________, 2015, by _________________________, as Mayor of The City of Fort Collins, Colorado, a municipal corporation. WITNESS my hand and official seal. ________________________________ Notary Public My commission expires: ____________ 12 1 Packet Pg. 91 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) THE LARIMER COUNTY CANAL NO. 2 IRRIGATING COMPANY, a Colorado nonprofit corporation By:_________________________________ ________________, President STATE OF COLORADO ) ) ss. COUNTY OF ____________) The foregoing instrument was acknowledged before me this ______ day of _________________, 2015, by __________________, President of the Larimer County Canal No. 2 Irrigating Company, a Colorado nonprofit corporation. WITNESS my hand and official seal. ________________________________ Notary Public My commission expires: ____________ 13 1 Packet Pg. 92 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) Parcel Number: 9832100020 Owner: Brinks James S Trust Parcel Number: 9832100020 Owner: Brinks James S Trust Parcel Number: 9832000009 Owner: Brinks James S Trust Parcel Number: 9832000009 Owner: Brinks James S Trust Larimer Co u nty C a nal # 2 Cache l a P ou d r e Riv e r Cl a y m o r e L a k e New M ercer Di t c h City of Fort Collins Exhibit 1 CITY OF FORT COLLINS GEOGRAPHIC INFORMATION SYSTEM MAP PRODUCTS These map products and all underlying data are developed for use by the City of Fort Collins for its internal purposes only, and were not designed or intended for general use by members of the public. The City makes no representation or warranty as to its accuracy, timeliness, or completeness, and in particular, its accuracy in labeling or displaying dimensions, contours, property boundaries, or placement of location of any map features thereon. THE CITY OF FORT COLLINS MAKES NO WARRANTY OF MERCHANTABILITY OR WARRANTY FOR FITNESS OF USE FOR PARTICULAR PURPOSE, EXPRESSED OR IMPLIED, WITH RESPECT TO THESE MAP PRODUCTS OR THE UNDERLYING DATA. Any users of these map products, map applications, or data, accepts them AS IS, WITH ALL FAULTS, and assumes all responsibility of the use thereof, and further covenants and agrees to hold the City harmless from and against all damage, loss, or liability arising from any use of this map product, in consideration of the City's having made this information available. Independent verification of all data contained herein should be obtained by any users of these products, or underlying data. The City disclaims, and shall not be held liable for any and all damage, loss, or liability, whether direct, indirect, or consequential, which arises or may arise from these map products or the use thereof [EXHIBIT D TO AGREEMENT] EASEMENT AGREEMENT This EASEMENT AGREEMENT (“Agreement”) is entered into as of the _____ day of ______________, 2015, between the CITY OF FORT COLLINS, COLORADO, a municipal corporation (“City”) and the LARIMER COUNTY CANAL NO. 2 IRRIGATING COMPANY, a Colorado nonprofit company (“Company”). The City and the Company are collectively referred to herein as the “Parties.” RECITALS A. The City originally constructed in the 1880s a ditch channel known as the “City Ditch” and has since the time of construction continued to operate, or allow others to operate, a ditch using the City Ditch channel and related improvements, including the operation of the Larimer County Canal No. 2, as described herein below. B. The Company is the operator of a canal or ditch known as the Larimer County Canal No. 2, and certain water diversion and conveyance structures, culverts, pipes, equipment and other improvements used in connection with the operation of such ditch (the “Larimer No. 2 Ditch”). All diversions, structures, culverts, pipes, equipment and other improvements of the Company or the City associated with the Larimer No. 2 Ditch or the City Ditch shall be referred to collectively as the “Ditch.” C. Beginning in 1906, the City leased the City Ditch to the Company. Subsequently, the City entered into an Easement Deed with the Company on June 21, 2010, whereby the City granted the Company certain rights related to the Company’s use and enjoyment of the City Ditch for operation of the Ditch in accordance with specified terms and conditions and reserved its own interests in the Waterworks Land, as defined below, and the City Ditch, recorded in the real property records of Larimer County on August 3, 2010, at Reception No. 20100044752 (“2010 Easement Agreement”). D. By this Agreement, the City and the Company wish to terminate and replace the 2010 Easement Agreement and abandon any rights and interests thereunder affecting the following parcel of land subject to the 2010 Easement Agreement which is traversed by the Ditch: certain real property conveyed to Grantor by Warranty Deed on September 18, 1889, and recorded in the real property records of Larimer County on April 30, 1891, at Reception Number 36766, Book 78, Page 490, generally located in the northwest quarter (NW1/4) of the southeast quarter (SE1/4) of Section 32, Township 8 North, Range 69 West, 6 th P.M., Larimer County (“Waterworks Land”). E. The Parties also wish to document and incorporate the prescriptive rights arising from historical use and operation of the Ditch on the Waterworks Land. F. The Parties agree that the Company has a valid existing easement and right of way for the Ditch on the Waterworks Land and sufficient lands on each side of the Ditch to allow it to fully enjoy and utilize the Ditch, subject to the City’s rights to use the Ditch as set forth herein. In an effort to better describe the extent of the easement and right of way for the Ditch enjoyed by the 1 Packet Pg. 94 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) Company on the Waterworks Land, subject to the City’s rights to use the Ditch as set forth herein, and to define, recognize and memorialize in writing the mutual interests and correlative rights the Parties have in the Waterworks Land, the Parties enter into this Agreement. AGREEMENT NOW, THEREFORE, for good and valuable consideration received by them, the receipt and sufficiency of which are hereby acknowledged, the Parties covenant and agree as follows: 1. Recitals. The factual recitals above are hereby incorporated by reference as though fully set forth. 2. Abandonment of 2010 Easement Agreement. By this Agreement the City and the Company terminate and abandon any rights under the 2010 Easement Agreement on the the Waterworks Land. The Parties understand and acknowledge that this Agreement, and the terms and conditions contained herein, supersedes and replaces the 2010 Easement Agreement as it relates to the Waterworks Land and any rights on, over, under or across the the Waterworks Land. 3. Grant of “Waterworks Easement” on the Waterworks Land by the City – Consideration. For and in consideration of the covenants and agreements herein set forth, the sum of Ten Dollars ($10.00), and other good and valuable consideration, the receipt and adequacy of which the City acknowledges, the City grants, sells and conveys to the Company, its successors and assigns, as is, subject to all existing rights and claims of right, and without warranty of any kind, a perpetual, non-exclusive easement and right-of-way on, over, under and across the Waterworks Easement Area on the Waterworks Land, as defined below in Paragraph 4, for the uses stated herein, subject to the conditions and restrictions set forth below, and subject to the City’s rights to use the Ditch as set forth herein (referred to herein as the “Waterworks Easement” because it crosses the City’s Waterworks Land). 4. Scope of Waterworks Easement. The Parties agree and acknowledge that the City’s conveyance of the Waterworks Easement on the Waterworks Land includes an easement and right- of-way for the purposes set forth herein. The location of the “Waterworks Easement Area” is set forth in Exhibit 1, comprising seven (7) pages and “Exhibits A, B, and C,” which is incorporated by this reference. 5. The Company’s Rights in the Waterworks Easement Area. In addition to the right to convey water in the Ditch as set forth in Paragraph 8, the Company shall have the following rights in the Waterworks Easement Area. 5.1. Right of Ingress and Egress. The Company shall have the right of ingress to and egress from the Waterworks Easement Area over and the Waterworks Land by means of any roads and lanes thereon and otherwise in a manner reasonably expected to minimize disturbance and impacts to the Waterworks Land or the improvements upon or natural features thereof. 2 1 Packet Pg. 95 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) 5.2. Improvements. The Company shall have the right from time to time to improve, reconstruct and replace the Ditch and related improvements with improvements of a like number, size and nature, either in the original location or at an alternate location or locations within the Waterworks Easement Area satisfactory to the City in its sole discretion, for the authorized purposes set forth herein, provided that the Company must give the City advance notice of any change in the type, number or location of improvements and cannot proceed until the City has provided its written consent, which shall not be unreasonably withheld or delayed. 5.3. Gates. The Company shall have the right to install, maintain and use gates in all fences which now cross or shall hereafter cross the Waterworks Easement Area. 6. The City’s Rights in the Waterworks Easement Area. In addition to the right to convey water in the Ditch as set forth in Paragraph 8, the City shall have the following rights in the Waterworks Easement Area. 6.1. Non-Interference. The City reserves the right to use the Waterworks Easement Area for purposes that will not unreasonably interfere with the Company’s full enjoyment of the rights granted herein. 6.2. Trails and Roads. The City reserves the right to install roads, trails, paths, whether or not paved or hard-surfaced, and other types of improvements in the Waterworks Easement Area and over the Company’s improvements subject to the written consent of the Company, which consent shall not be unreasonably withheld or delayed. 6.3. Structures. The Cityreserves the right to install permanent buildings or structures on the Waterworks Easement Area subject to the written consent of the Company, which consent shall not be unreasonably withheld or delayed. 6.4. Signs. The City reserves the right to install or utilize signs on or over the Waterworks Easement Area, subject to the written consent of the Company, which consent shall not be unreasonably withheld or delayed. 6.5. Maintenance of City Improvements. The Company shall not be responsible for maintenance of improvements of the City, except as specifically provided herein, but shall be responsible for repair, restoration and replacement of such improvements in the event they are damaged or destroyed by the Company or any person acting under the Company’s rights hereunder. 7. The Company’s Obligations Regarding the Waterworks Easement Area. The Company shall have the following obligations regarding the Waterworks Easement Area. 7.1. Coordination. All activities by the Company on the Waterworks Easement Area, including access across the City’s Property, must be carried out in a manner and on a schedule reasonably expected to minimize disturbance to the natural 3 1 Packet Pg. 96 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) features of said property, any improvements thereon, and the City’s intended purposes therefor. 7.2. Maintenance. The Company must maintain the Improvements used by the Company in the Waterworks Easement Area, including but not limited to the ditch channel and any structures installed in the ditch for the Company’s use, in an good condition, and a reasonably safe manner, with the Parties recognizing the inherent dangers of an earthen irrigation canal, and repair the Improvements as reasonably necessary to ensure the Improvements do not cause injury or damage to persons or property. 7.3. Inspection and Maintenance. Other than for routine inspection, operations, repair, and reasonably noninvasive maintenance, with the Parties recognizing that routine inspection, operations, repair, and maintenance are by their nature moderately invasive to the adjacent properties, the Company shall notify the City at least five (5) business days prior to performing work (including, but not limited to, construction, maintenance, and repair) on or within the Waterworks Easement Area. For the purposes of this Agreement, and by way of example and not by limitation, the following activities shall not be considered to be routine inspection, operations, repair, and reasonably noninvasive maintenance and shall require prior notice to the City under this paragraph: the removal of tree(s) with a trunk diameter larger than one inch (1”), any excavations, and burning or spraying of the Ditch. In advance of any nonemergency work (excluding routine inspection and noninvasive maintenance), the Company shall submit a work plan and schedule to the City for approval, which approval shall not be unreasonably delayed or withheld. The Company will need a Temporary Construction Easement from the City if working on any property of the Cityoutside of the Waterworks Easement Area. Notwithstanding these notification requirements, in cases of emergency repair, the Company shall notify the City of the emergency and provide related construction plans and schedules as soon as reasonably practicable. 7.4. Damages. In the event damage occurs from the Company’s use of or activities over or within the Waterworks Easement Area, including but not limited to the installation, maintenance, or operation of the Improvements within the Waterworks Easement Area, the Company agrees to make such repairs or take such other action as may be necessary to restore the Waterworks Easement Area and the Waterworks Land to a condition comparable to their condition prior to the Company’s activities in the Waterworks Easement Area, including but not limited to the reseeding and replanting of any disturbed areas in a manner reasonably satisfactory to the City, and the provision of ongoing maintenance of any seeded or planted areas, correction of any subsidence, and restoration of any other improvements or conditions impacted by the Company’s activities, until such time as any such repair and restoration is fully established and stabilized. 7.5. Indemnity and Insurance. The Company agrees to indemnify the City, its officers, agents, employees, representatives, successors and assigns from all 4 1 Packet Pg. 97 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) claims and liability, including but not limited to the City’s reasonable legal fees and costs, including attorneys’ fees, for claims made by third persons for personal injury, death or property damage resulting from or arising out of the Company’s use of the Waterworks Easement Area or other activities of the Company on the Waterworks Land, including but not limited to the construction, installation, operation, repair, and maintenance of improvements within the Waterworks Easement Area, and for any actions or omissions by the Company in violation of this Agreement. 7.6. The City agrees to undertake a good faith review of the terms and conditions of Paragraph 7.5 in order to determine whether such terms and conditions should be revised by a subsequent agreement of the Parties to address the issues addressed in that paragraph in a manner that is more advantageous to the Parties. The City shall confer with Company representatives regarding the City’s review within three (3) months of the execution of this Agreement, unless the parties agree to modify the timing of such conferral. Any such agreement shall be recorded in the records of the Clerk and Recorder of Larimer County, Colorado. THE COMPANY’S AND THE CITY’S USE OF THE DITCH 8. The Company’s and the City’s Use of the Ditch. The Company and the City agree that their respective rights to use the Ditch on the Waterworks Land and other lands over which the Ditch traverses (i.e., the entire Ditch), shall be as follows: 8.1. The Company’s Rights to the Use of the Ditch Up to Its Capacity and to Enter Into Agreements With Other Parties for the Rights to the Use of the Ditch Up to Its Capacity. The Company shall have the right, at any time and from time to time, to use the Ditch up to its Capacity, as defined below, for the conveyance of water. The Company shall also have the right to enter into agreements with Contractees to authorize their use of the Ditch up to its Current Capacity, as defined below, subject to the terms and conditions of this Agreement. For the purposes of this Agreement, the “Capacity” is defined as the maximum amount of water that can be carried in the Ditch absent any enlargement of the Ditch. The Company shall determine, in its sole discretion, the amount of Capacity at any given time. 8.1.1. Priority of Use of the Capacity. The rights to the use of the Capacity shall be based on a priority system. Under this priority system, if a party with a prior right to the use of the Capacity is not using all or part of the Capacity, the party with the next priority shall be entitled to the use of any unused portion of the Capacity. Any agreements that the Company enters into with Contractees shall be pursuant to the priority system described herein. 8.1.1.1. First Priority: Company Water for Delivery to Shareholders. The Company shall have the first priority to use the Capacity to meet its operational obligations and to carry water attributable to water rights and contractual rights held by the Company for delivery to its shareholders on a pro rata basis. Such water may be attributable to, but not necessarily limited to: (i) diversions to the Ditch under Ditch Priority #57 with an adjudication date of April 11, 1882 and an appropriation date of April 5 1 Packet Pg. 98 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) 1, 1873, originally decreed for direct irrigation; (ii) water carried by the Company by arrangement with and for the benefit of the Warren Lake Reservoir Company pursuant to existing priorities for storage as follows: (a) Ditch Priority #76 for five hundred fifty (550) acre-feet with an adjudication date of April 11, 1882 and an appropriation date of April 15, 1875; (b) Reservoir Priority #31 for one thousand five hundred forty-five (1,545) acre-feet with an adjudication date of December 9, 1904 and an appropriation date of January 10, 1893; and (c) Reservoir Priority #100 for eight hundred eighteen (818) acre-feet with an adjudication date of April 22, 1922 and an appropriation date of July 27, 1908, totaling two thousand nine hundred thirteen (2,913) acre-feet with no right of refill; (iii) the Company’s historical deliveries of water during the irrigation season pursuant to contractual or leased rights to water available from the Colorado-Big Thompson Project, or pursuant to exchanges listed in the Decree in Case No. W-8086-75, Water Division No. 1, entered on March 24, 1978; and (iv) water historically carried for the benefit of the owner(s) of the John R. Brown Ditch pursuant to Ditch Priority #14 with an adjudication date of April 11, 1882 and an appropriation date of May 1, 1865, decreed for direct irrigation at a flow rate of three and five/tenths (3.5) cubic feet per second (cfs). 8.1.1.2. Second Priority: Excess Capacity Belonging to Company Shareholders. If there is Capacity that is not being used by the Company under its first priority described in the previous paragraph, such unused capacity shall be deemed “Excess Capacity,” and the shareholders in the Company shall have the second priority to use the Excess Capacity to carry water attributable to any water rights and contractual rights that may be lawfully delivered through the Ditch, and the amount of such Excess Capacity shall belong to the shareholders in the Company on a pro rata basis as determined by the Company. A shareholder’s use of Excess Capacity shall be made pursuant to an arrangement with the Company. By way of illustration only, if there is 100 cfs of the Capacity that is not being used by the Company, and a shareholder owns 5% of the shares in the Company, said shareholder may have the right to use 5 cfs of such Excess Capacity upon arrangement with the Company. By way of illustration further only, if said shareholder desires to use more than 5 cfs of the Capacity that is not being used by the Company, said shareholder must secure the rights to use the “Residual Excess Capacity” as described in the following paragraph. 8.1.1.3. Third Priority: Residual Excess Capacity. If there is Capacity that is not being used by the Company under its first priority described above and is not being used by shareholders under their second priority described in the previous paragraph, such unused capacity shall be deemed “Residual Excess Capacity,” and Contractees shall have the right to use said Residual Excess Capacity pursuant to an agreement with the Company. The rights to the Residual Excess Capacity shall be based on a priority system, under which if a party with a prior right to the use of the 6 1 Packet Pg. 99 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) Residual Excess Capacity is not using all or part of the Residual Excess Capacity, the party with the next priority shall be entitled to the use of any unused portion of the Residual Excess Capacity. 8.2. The City’s Rights to the Use of the Capacity of the Ditch. The City understands and agrees that Company’s first obligations are to their stockholders as described above and use of Capacity will be permitted only if such uses would in no way be detrimental to the Company or its stockholders. The City shall be entitled to use the Ditch (being its entire length) as a shareholder in the Company and as a Contractee with the Company, as follows: 8.2.1. Excess Capacity Rights. The City currently owns 104.21171 shares of the Company (approximately 71.1%) and therefore currently has such a pro rata entitlement to the use of the Excess Capacity in the Ditch, as described above. The City’s entitlement to the use of the Excess Capacity in the Ditch as described above shall be based on its pro rata ownership of shares in the Company, as that may change from time to time. 8.2.2. Residual Excess Capacity Rights. The City currently has no rights to Residual Excess Capacity in the Ditch. Nothing in this Agreement shall preclude the Company from granting and the City from acquiring Residual Excess Capacity in the Ditch in the future. 8.2.3. Terms and Conditions on the City’s Use of Capacity Under Its Excess Capacity Rights. 8.2.3.1. The City shall be entitled to use Capacity under its Excess Capacity Rights for the carriage and conveyance of any water to which the City is entitled to use pursuant to an appropriation (whether decreed or undecreed), lease, contract, and/or any other legal entitlement or right (“City Water”). Said rights to use Capacity are limited to direct uses by the City and may not be assigned or used by the City for the carriage of water for others. 8.2.3.2. So long as the City is the majority owner of shares in the Company, the City shall not be charged for use of Capacity under its Excess Capacity Rights except for assessments associated with the City’s shares of stock and as set forth in Paragraph 8.2.3.5. 8.2.3.3. At times when the City desires to utilize Capacity under its Excess Capacity Rights, the City shall communicate the details of its desired use to the Company (including the point of inflow, source and amount of water, timing, release, point of delivery, and other relevant information reasonably requested by the Company) and request review and approval from the Company, 7 1 Packet Pg. 100 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) which request shall be timely considered, and approval shall not be unreasonably withheld so long as such request is consistent with this Agreement and will not interfere with Company operations. 8.2.3.4. The Company may assess the evaporation, seepage, and similar transportation losses (also known as “shrink”) on City Water carried in the Ditch under the City’s Excess Capacity Rights. If City Water is the only water being carried in the Ditch, the City will physically incur all of the transportation losses and the Company will not charge any additional transportation losses. If water other than City Water is being carried in the Ditch when City Water is being carried in the Ditch, the City Water will be assessed for transportation losses at the same rate as assessed to other users of the Ditch, at a reasonable rate determined by the Company. 8.2.3.5. Pursuant to the terms and conditions of this Paragraph, the Company may charge the City for the costs of the City carrying water in the Ditch under the City’s Excess Capacity Rights, which may include administrative, engineering, legal, and personnel costs. Such costs shall not exceed the annual limit. The annual limit shall be $1,500 initially and may be adjusted by the Company to reflect any inflation occurring since the date of this Agreement and the date that the Company charges the City under this Agreement. The inflation index to be used shall be the ENR Index – Construction Costs, or if that index is discontinued, the Company shall use a comparable inflation index agreed upon by the parties. Such costs shall be charged to the City by written invoice no less than yearly and shall be paid by the City within 60 days of the receipt of said invoice. The Company shall provide the City with invoices and additional documentation to substantiate such charges. 8.3. Enlargement of the Ditch. The Company shall have the right to enlarge the Ditch, or to contract with third parties for the enlargement of the Ditch, provided, however, that any such enlargement shall not adversely affect the rights of the Company shareholders, Contractees, and the City. For example, and not by means of limitation, if the ability of the Ditch to carry water were reduced for whatever reason and over whatever period of time, and if the Company were to increase the ability of the Ditch to carry water to an amount that the Ditch at one time historically carried water, such increased capacity would not be an enlargement of the Ditch, but would instead be maintenance and the restoration of existing Capacity in which Company shareholders, Contractees, and the City have rights. The City may not construct facilities on or in, or operate or modify the Ditch, its headgate, or any other reservoir, ditch, facility or other structure or property owned, controlled or operated by the Company, unless the written approval of the Company’s Board of Directors is obtained. Such approval may be withheld or denied in the sole and 8 1 Packet Pg. 101 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) absolute discretion of the Board. The Company, and not the City, shall operate the Ditch to effectuate City’s utilization of its Capacity permitted herein. ADDITIONAL TERMS 9. Notice. Any notice required or permitted hereunder shall be deemed effective when deposited in the United States mail, postage prepaid, first class and addressed to the party to whom notice is to be given, as follows: If to the Company: The Larimer County Canal No. 2 Irrigating Company c/o President ________________________ ________________________ If to the City: The City of Fort Collins c/o _____________________ ________________________ ________________________ In the event a different person or entity than the person or entity listed above shall be given notice, the other party shall be notified of this change in writing pursuant to this paragraph. 10. Covenant Running with Land. This Agreement, and all of its provisions, is binding upon and shall inure to the benefit of the parties, their heirs, successors and assigns, and shall be a covenant running with the Waterworks Land. 11. Recordation. This Agreement shall be recorded in the records of the Clerk and Recorder of Larimer County, Colorado. The cost of such recording shall be borne equally by the Company and the City. 12. Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of Colorado, excluding conflicts of interest principles. 13. Severability. If any term, covenant, condition or provision of this Agreement or the application thereof to any person or circumstance shall, at any time or to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those to which it is held invalid or unenforceable, shall not be affected thereby, and each provision of this Agreement shall be valid and shall be enforced to the fullest extent permitted by law. 14. Costs of Legal Proceedings. In the event any of the parties institute legal proceedings with respect to this Agreement or the enforcement thereof, or of any term and condition contained herein, the prevailing party shall be entitled to court costs and reasonable attorneys’ fees incurred by such party in connection with such legal provisions. 9 1 Packet Pg. 102 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) 15. Waiver. The failure of any Party to exercise any right or power given hereunder, or to insist upon strict compliance by the other Party with its obligations set forth herein and/or any custom or practice of the parties at variance with the terms hereof, shall not constitute a waiver of either Party’s rights to demand strict compliance with the terms and conditions of this Agreement. 16. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute an original, and all of which together shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. [REMAINDER OF PAGE LEFT BLANK INTENTIONALLY] 10 1 Packet Pg. 103 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) THE CITY OF FORT COLLINS, a municipal corporation. By: ___________________________________ ________________________________ Mayor ATTEST: _________________________ City Clerk APPROVED AS TO FORM: _________________________ Assistant City Attorney STATE OF COLORADO ) ) ss. COUNTY OF LARIMER ) The foregoing instrument was acknowledged before me this ______ day of _________________, 2015, by _________________________, as Mayor of The City of Fort Collins, Colorado, a municipal corporation. WITNESS my hand and official seal. ________________________________ Notary Public My commission expires: ____________ 11 1 Packet Pg. 104 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) THE LARIMER COUNTY CANAL NO. 2 IRRIGATING COMPANY, a Colorado nonprofit corporation By:_________________________________ ________________, President STATE OF COLORADO ) ) ss. COUNTY OF ____________) The foregoing instrument was acknowledged before me this ______ day of _________________, 2015, by __________________, President of the Larimer County Canal No. 2 Irrigating Company, a Colorado nonprofit corporation. WITNESS my hand and official seal. ________________________________ Notary Public My commission expires: ____________ 12 1 Packet Pg. 105 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) &9)*#*5 1 Packet Pg. 106 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) 1 Packet Pg. 107 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) 1 Packet Pg. 108 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) 1 Packet Pg. 109 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) 1 Packet Pg. 110 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) 1 Packet Pg. 111 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) 1 Packet Pg. 112 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD) Agenda Item 11 Item # 11 Page 1 AGENDA ITEM SUMMARY November 3, 2015 City Council STAFF Pete Wray, Senior City Planner SUBJECT Resolution 2015-093 Finding Substantial Compliance and Initiating Annexation Proceedings for the Lodgepole Investments, LLC, Annexation. EXECUTIVE SUMMARY The purpose of this item is to initiate annexation proceedings for the Lodgepole Investments LLC properties, located 670 feet southwest of the intersection of I-25 and State Highway 392, addressed as 7795 and 7801 SW Frontage Road, Fort Collins, CO. The applicant, Lodgepole Investments, LLC has submitted a written petition requesting annexation of two properties and right-of-way, totaling 39.7 acres. The requested zoning for this annexation is G-C, General Commercial. The property is located within the Fossil Creek Reservoir Area Plan and the I-25/SH 392 Corridor Activity Center (CAC) overlay area. The requested zoning district is in compliance with the City of Fort Collins Structure Plan and the Fossil Creek Reservoir Area Plan. A specific project development plan proposal is not included with the annexation application. The proposed Resolution makes a finding that the petition substantially complies with the Municipal Annexation Act, determines that a hearing should be established regarding the annexation, and directs that notice be given of the hearing. The hearing will be held at the time of first reading of the annexation and zoning ordinances; not less than thirty days of prior notice is required by state law. This annexation request is in conformance with the State of Colorado Revised Statutes as they relate to annexations, the City of Fort Collins Comprehensive Plan, and the Larimer County and City of Fort Collins Intergovernmental Agreements. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION The Lodgepole Investments LLC Annexation includes two parcels owned by Lodgepole Investments, LLC and right of way owned by the Colorado Department of Transportation (CDOT). The requested zoning for this annexation includes the G-C District for the Lodgepole Investments LLC properties (Tract A and B) and a portion of CDOT right of way, which are consistent with the City of Fort Collins Structure Plan and the Fossil Creek Reservoir Area Plan. The properties are bordered by the existing County subdivision, Eagle Ranch Estates on the west side, Interstate 25 to the east, vacant commercial properties and State Highway 392 to the north and vacant commercial and residential properties to the south. The property is currently zoned AP-Airport in Larimer County. 11 Packet Pg. 113 Agenda Item 11 Item # 11 Page 2 This is a 100% voluntary annexation for a property located within the Growth Management Area (GMA). According to policies and agreements contained in the Larimer County and City of Fort Collins Intergovernmental Agreements, the City will agree to consider annexation of property in the GMA when the property is eligible for annexation according to State law. The Board of County Commissioners approved the Special Review Application for this property on March 9, 2015, with signed resolution on April 14, 2015, with the approval conditioned on the applicant’s filing a petition for annexation to the City of Fort Collins by September 30. The petition that initiated this annexation process was filed on September 29, 2015. The Lodgepole Investments LLC Annexation gains the required 1/6 contiguity to existing city limits from a common boundary with the Fossil Creek 392 Annexation (Ordinance No.139, 2010), thus satisfying the requirement that no less than one-sixth of the perimeter boundary be contiguous to the existing city boundary. In accordance with the May, 2013 Amended Intergovernmental Agreement, the City of Fort Collins and the Town of Windsor will share the property tax increment and sales tax increment generated by properties and businesses located within the boundaries of the Corridor Activity Center. BOARD / COMMISSION RECOMMENDATION The Planning and Zoning Board will conduct a public hearing on the annexation and zoning request on November 12, 2015. The Board’s recommendation will be forwarded to City Council as part of the First Reading of the annexation and zoning ordinances on December 15, 2015. PUBLIC OUTREACH There was no public outreach for this Initiating Resolution as this Resolution simply accepts the Annexation Petition and provides a schedule for upcoming Council hearings with a schedule and notification requirements that comply with State Statutes. ATTACHMENTS 1. Vicinity Map (PDF) 2. Proposed Zoning (PDF) 3. Structure Plan Map (PDF) 11 Packet Pg. 114 ¦¨§25 ¦¨§25 Sw Frontage Rd Westgate Dr Se Frontage Rd Tamarisk Dr G o l d e n E a g le R d Coun t r y Farm s Dr B a y s i d e D r E a g l e Ran c h Rd L ouden X i n g Taylor L n Hatha w ay Ln Eagle Ln Peak V i e w Dr S State Highway 392 Interstate 25 Interstate 25 L o u d en C ir Medi c ine Bow C ir M u m m y R a nge Dr C o u n t r y F a rm s D r Aerie Ln G o l de n E ag le R d Lou d en Circ l e Ct Ea g le Spir Fossil Creek Reservoir ¦¨§25 SH 3 Wind © Lodgepole Investments LLC Structure Plan/Fossil Creek Reservoir Area Plan Map Boundaries Fort Collins GMA Potential GMA Expansion Other City GMA Planning Area Adjacent Planning Areas City Limits Districts Downtown District Community Commercial District General Commercial District Neighborhood Commercial District Campus District Employment District Industrial District Neighborhoods Urban Estate Low Density Mixed-Use Medium Density Mixed-Use Edges Community Separator Foothills Rural Lands Corridors Open Lands, Parks and Water Corridors Poudre River Corridor Enhanced Travel Corridor (Transit) 1 inch = 0.3 miles Annexation - Area Site - Lodgepole Investments LLC Annexation SH 392 ATTACHMENT 3 11.3 Packet Pg. 117 Attachment: Structure Plan Map (3716 : Lodgepole Investments Annexation) RESOLUTION 2015-093 OF THE COUNCIL OF THE CITY OF FORT COLLINS FINDING SUBSTANTIAL COMPLIANCE AND INITIATING ANNEXATION PROCEEDINGS FOR THE LODGEPOLE INVESTMENTS, LLC, ANNEXATION WHEREAS, a written petition, together with four (4) prints of an annexation map, has been filed with the City Clerk requesting the annexation of certain property to be known as the Lodgepole Investments, LLC Annexation, as more particularly described below; and WHEREAS, the City Council desires to initiate annexation proceedings for the Lodgepole Investments, LLC Annexation in accordance with the Municipal Annexation Act, Section 31-12-101, et seq., Colorado Revised Statutes. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby accepts the annexation petition for the Lodgepole Investments, LLC Annexation, more particularly described as situate in the County of Larimer, State of Colorado, to wit: TRACTS A AND B, FOSSIL CREEK FARM M.L.D. NO. 00-S1539 AND A PORTION OF THE CARPENTER ROAD RIGHT-OF-WAY PER THE PLAT OF FOSSIL CREEK FARM M.L.D. NO. 00-S1539, ALL SITUATE IN THE NORTHWEST QUARTER OF SECTION 22, TOWNSHIP 6 NORTH, RANGE 68 WEST OF THE 6TH P.M., CITY OF FORT COLLINS, COUNTY OF LARIMER, STATE OF COLORADO BEING MORE PARTICULALY DESCRIBED AS FOLLOWS: Considering the North line of the Northwest Quarter of said Section 22 as bearing North 89°40'32" East and with all bearings contained herein relative thereto: Beginning at the Northwest corner of said Section 22; thence along the West line of the Northwest Quarter of said Section 22 South 00°28'50" West 56.17 feet, more or less, to a point on a non-tangent curve concave to the North having a central angle of 00°35'38" and a radius of 5790.00 feet, the long chord of which bears South 87°50'44" East a distance of 60.02 feet; said point being on the Southerly Line of that certain parcel of land as described in Deed recorded at Reception No. 92049221, records of said County and a point on the Southerly line of FOSSIL CREEK RESERVOIR OPEN SPACE ANNEXATION, City of Fort Collins, County of Larimer, State of Colorado and the TRUE POINT OF BEGINNING; thence departing said West line of the Northwest Quarter of said Section 22 and along said Southerly Line of that certain parcel of land as described in Deed recorded at Reception No. 92049221 and along said Southerly line of FOSSIL CREEK RESERVOIR OPEN SPACE ANNEXATION and Easterly along the arc of said curve 60.02 feet; thence departing said curve and said Southerly Line of that certain parcel of land as described in Deed recorded at Reception No. 92049221 and departing said Southerly line of FOSSIL CREEK RESERVOIR OPEN SPACE ANNEXATION and along the Westerly and Southerly lines of FOSSIL CREEK 392 ANNEXATION, City of Fort Collins, County of Larimer, State of Colorado South 00°28'50" West 566.63 feet and again North 89°34'58" East 2279.35 feet, more or less, to the Southeast corner of said FOSSIL CREEK 392 ANNEXATION; said Southeast corner also being o point on the Westerly right-of-way line for Interstate Highway Packet Pg. 118 No. 25 and the Northeast corner of said FOSSIL CREEK FARM M.L.D. NO. 00-S1539; thence departing said Southerly line of said FOSSIL CREEK 392 ANNEXATION and along the Westerly lines of said right-of-way line for Interstate Highway No. 25 and along the Easterly lines of said FOSSIL CREEK FARM M.L.D. NO. 00-S1539 South 18°25'02" East 193.89 feet and again South 04°06'44" East 523.98 feet, more or less, to the Southeast corner of said FOSSIL CREEK FARM M.L.D. NO. 00-S1539; thence departing said Westerly line of said right-of-way line for Interstate Highway No. 25 and said Easterly line of said FOSSIL CREEK FARM M.L.D. NO. 00-S1539 and along the Southerly line of said FOSSIL CREEK FARM M.L.D. NO. 00- S1539 South 89°40'57" West 2444.06 feet, more or less, to the Southwest corner of said FOSSIL CREEK FARM M.L.D. NO. 00-S1539; thence departing said Southerly line of said FOSSIL CREEK FARM M.L.D. NO. 00-S1539 and along the Westerly line of said FOSSIL CREEK FARM M.L.D. NO. 00-S1539 North 00°28'50" East 1272.45 feet, more or less, to a point on the Southerly Line of that certain parcel of land as described in Deed recorded at Reception No. 92049221 and a point on said Southerly line of FOSSIL CREEK RESERVOIR OPEN SPACE ANNEXATION; said point being the TRUE POINT OF BEGINNING, containing 39.77 Acres, more or less, and being subject to all easements and/or rights-of-way now existing or of record. Section 2. That the City Council hereby finds and determines that the annexation petition for the Lodgepole Investments, LLC Annexation and accompanying map are in substantial compliance with the Municipal Annexation Act. Section 3. That the Notice attached hereto as Exhibit “A” is hereby adopted as a part of this Resolution. Said Notice establishes the date, time and place when a public hearing will be held regarding the passage of annexation and zoning ordinances pertaining to the above described property. The City Clerk is directed to publish a copy of this Resolution and said Notice as provided in the Municipal Annexation Act. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 3rd day of November, A.D. 2015. _________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 119 NOTICE TO ALL PERSONS INTERESTED: PLEASE TAKE NOTICE that the City Council of the City of Fort Collins has adopted Resolution 2015-093 initiating annexation proceedings for the Lodgepole Investments, LLC Annexation, said Annexation being more particularly described in Resolution 2015-093. That, on December 15, 2015, at the hour of 6:00 p.m., or as soon thereafter as the matter may come on for hearing in the Council Chambers in the City Hall, 300 LaPorte Avenue, Fort Collins, Colorado, the Fort Collins City Council will hold a public hearing upon the annexation petition and zoning request for the purpose of finding and determining whether the property proposed to be annexed meets the applicable requirements of Colorado law and is considered eligible for annexation and for the purpose of determining the appropriate zoning for the property included in the Annexation. At such hearing, any persons may appear and present such evidence as they may desire. The Petitioner has requested that the Property included in the Annexation be placed in the General Commercial (“G-C”) Zone District. The City of Fort Collins will make reasonable accommodations for access to City services, programs and activities and will make special communication arrangements for persons with disabilities. Please call 221-6515 (TDD 224-6001) for assistance. Dated this 3rd day of November, A.D. 2015. _______________________________ City Clerk EXHIBIT A 1 Packet Pg. 120 Attachment: Exhibit A (3696 : Lodgepole Investments, LLC Annexation RESO) Agenda Item 12 Item # 12 Page 1 AGENDA ITEM SUMMARY November 3, 2015 City Council ITEM WITHDRAWN FROM CONSIDERATION STAFF John Phelan, Energy Services Manager SUBJECT Resolution 2015-094 Approving and Adopting an Updated Energy Policy. EXECUTIVE SUMMARY The purpose of this item is to adopt the 2015 Energy Policy (Policy), presented to Council at the September 22, 2015 work session. The Policy will replace the existing 2009 Energy Policy. In alignment with Ordinance No. 098, 2011, the scope of the Policy has expanded from past versions to include various types of energy sources and end-uses delivered within the community, which include electricity, natural gas and transportation fuels. The Policy update was timed to allow for coordination with the Climate Action Plan Framework (CAP) and associated goals adopted by Council earlier in 2015. The Policy provides goals for the prioritization of decision making, programs and services related to the quantity of use and the energy sources for electricity, thermal end-uses and transportation. The Policy uses a systems approach to energy production and consumption, as well as triple bottom line metrics (economy, society, and environment) guiding City government in the development of plans promoting policy outcomes for residents, businesses and other type of organizations. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION The City of Fort Collins’ Energy Policy, attached to the Resolution as Exhibit A, reflects Fort Collins’ energy values of reliability, safety, affordability, greenhouse gas (GHG) emissions reduction, pollution prevention and energy independence. The Policy provides goals for the prioritization of decision making, programs and services related to the quantity of use and the sources of energy for electricity, thermal end-uses and transportation. The Policy uses a systems approach to energy production and consumption, as well as triple bottom line metrics (economy, society, and environment) and guides City government in the development of plans promoting policy outcomes for residents, businesses and other organizations. The Plan also allows the City to fulfill its role in the demonstration of Policy initiatives and lead by its example. The City’s first Energy Policy was the 1992 “Electric Energy Supply Policy”, which was later restructured into the 2003 Electric Energy Supply Policy. In 2009, the policy was further revised and renamed the “Energy Policy”. The proposed 2015 update reflects a comprehensive approach for energy issues and includes electricity, heating and transportation fuels and the interactions between them in meeting the community’s energy resource needs. Council reviewed the draft 2015 Energy Policy at the Council’s September 22, 2015 work session. During the work session, Council indicated support for the proposed 2015 City of Fort Collins Energy Policy and for bringing the Energy Policy for Council adoption following additional community engagement (Attachment 1). Agenda Item 12 Item # 12 Page 2 ENERGY POLICY STRUCTURE AND KEY ELEMENTS The 2015 Energy Policy includes the following sections: Overview and Background Vision and Motivations Policy Objectives Built Environment Electricity Supply and Distribution Transportation and Land Use Implementation Principles Connections and Metrics Key elements of updates to the Energy Policy include: Revised and updated goals and objectives with a focus on final implementation by 2020 o The electric efficiency savings goals are proposed to increase from the current 1.5% per year to 2.5% per year by 2020. The methodology proposed for the increased target is based on a revised metric of “incremental” savings in a given year not attributed to programs which are primarily “maintaining” savings, such as Home Energy Reports. Instead programs that maintain the savings will be reported separately and in a “total” savings metric, consistent with utility best practices. As an example, under the revised methodology incremental portfolio savings in both 2013 and 2014 was 1.5%, while the total savings was 2.2%. o The demand response goal for 2020 was revised to 5% of peak demand based on improved understanding of the potential benefits from financial, distribution and system level perspectives. These goals, implemented through Utilities new Demand Response Management System, also known as the Peak Partners program, may be adjusted over time through coordination with Platte River Power Authority (Platte River). o There are two target renewable energy goals for 2020. The first is for the overall renewable energy percentage to rise to 20% of the electricity resources. Taking into account Platte River’s 2014 addition of wind resources and 2016 addition of solar resources, the overall renewable energy percent is expected to be 11%. New renewable energy additions will be required to ramp-up to 20%. The second is for local renewable energy, primarily solar installed on the distribution system, to increase to 2% of the electricity resources. The amount of solar installed locally would need to increase by three times (up to approximately 20 megawatts) to reach this target by 2020. o Partnership with Platte River The Policy recognizes Fort Collins greenhouse gas emission responsibilities through its ownership stake in Platte River. Fort Collins, as a member-owner of Platte River, is responsible for an ownership allocation of the associated carbon emissions. As of 2014, this ownership, or equity, share was 47%. The Policy will report on the ownership emissions metric in addition to the community based electricity inventory in alignment with CAP reporting. o Alignment with other City plans and policies. The updated scope of the Energy Policy includes energy sources and uses which are impacted substantially by other City policies and plans. Specifically, land development and transportation have their own policy directives. In order to develop alignment over time, the Energy Policy identifies critical metrics and objectives for development in future updates to City Plan and the Transportation Master Plan. Over time, this will develop into a comprehensive aligned approach for energy issues to include electricity, heating and transportation fuels, and the interactions between them. Agenda Item 12 Item # 12 Page 3 Existing Implementation and Planning The goals and objectives of the Policy are supported through implementation of a wide range of existing programs, services and market impacts. The 2014 Energy Policy Annual Update is included as Attachment 2. Existing programs and services include: Utility efficiency, demand response and renewable energy programs, which will need to expand and evolve in order to accomplish the Policy goals. These include the collaborative Efficiency Works programs with Platte River and the other member cities. Platte River has proposed an increase to energy efficiency funding as part of their 2016 budget. If approved, Fort Collins would effectively see an increase in efficiency funding as part of the City’s equity share in Platte River. Utilities and Community Development and Neighborhood Services have collaborated on a 2016 mid- cycle budget offer to increase support for energy code performance. If approved, this will improve the compliance rate with existing and future energy code performance requirements. Looking forward, implementation planning for the Policy will incorporate the following efforts: The CAP implementation process incorporates many of the key activities and coordination related to the Energy Policy goals. The Building Efficiency and Accelerated Alternative Energy Adoption strategic initiative teams in particular will be able to align planning for both Energy Policy and CAP targets and metrics. The budgeting for outcomes (BFO) process in 2016 will determine City and Utilities resources for 2017 and 2018. Platte River’s resource planning process is a critical element for changes to the electricity resource mix and efficiency results. One of the key elements of the resource planning efforts will be to meet the Colorado requirements of the federal Clean Power Plan. Pending updates to Fort Collins City Plan and the Transportation Master Plan will be critical to develop the specific metrics and objectives related to land use and transportation that are required to align the outcomes intended by the Energy Policy. CITY FINANCIAL IMPACTS The Policy provides direction for the development of programs and services to meet the revised targets. These targets will be the basis for the development of BFO offers for 2017/2018 and beyond. The Policy impact on City and Utilities financial resources will be determined by the City budget process. BOARD / COMMISSION RECOMMENDATION Staff and the Energy Board chair also presented the structure, concepts and goals of the draft Energy Policy with eight boards and commissions. These included: Air Quality Advisory Board (twice) Transportation Board Planning and Zoning Board Economic Advisory Commission Natural Resources Advisory Board Senior Board Affordable Housing Advisory Board Water Board All comments received and notes from these meetings are included in Attachment 3. Both the Energy Board and Air Quality Advisory Board have submitted formal memorandums to Council regarding the draft Energy Policy, which are also included. Agenda Item 12 Item # 12 Page 4 PUBLIC OUTREACH Staff and the Energy Board leveraged the extensive community engagement, which was part of the process to develop the Climate Action Plan (CAP) Framework. In addition, the Energy Board dedicated a portion of one meeting agenda specifically to public comment on the draft Energy Policy and there was an extended public comment period on the Utilities and Energy Board website. In addition to the CAP and board outreach, staff and the Energy Board chair also presented the structure, concepts and goals of the draft Energy Policy with several community stakeholder organizations, including the Chamber of Commerce, Local Legislative Affairs Committee and the Downtown Development Authority. All comments received and notes from these meetings are included in Attachment 3. ATTACHMENTS 1. Work Session Summary, September 22, 2015 (PDF) 2. Energy Policy 2014 Annual Update (PDF) 3. Community Outreach Summary (PDF) ATTACHMENT 1 12.1 Packet Pg. 125 Attachment: Work Session Summary, September 22, 2015 (3713 : Energy Policy) Energy Policy – 2014 Annual Update June 2015 ATTACHMENT 2 12.2 Packet Pg. 126 Attachment: Energy Policy 2014 Annual Update (3713 : Energy Policy) Fort Collins Utilities 1 Energy Policy Update This report provides an update of 2014 activities and results related to the City of Fort Collins Energy Policy, adopted in January 2009. The primary goals of the Energy Policy are to sustain high-system reliability and to contribute to the community’s climate protection goals and economic health. The Energy Policy 2050 vision is to ensure highly reliable, competitive, carbon neutral electricity supplies, managed in a sustainable, innovative, responsible and efficient manner for the Fort Collins community. The Energy Policy Annual Update reviews progress made to date in the primary goal areas of the policy: reliability, climate protection, economic health and the City’s collaboration with Platte River Power Authority (Platte River). The Energy Policy and most recent annual update are available at fcgov.com/utilities/what-we-do. Key outcomes from implementation of the Energy Policy in 2014 include: x Community carbon emissions from electricity use were 6.6% less in 2014 compared to the baseline year of 2005. x Electricity use per capita, for all sectors, has decreased by over 13% from 2005 to 2014. x Customers continued to receive highly reliable electric service, as measured by an average system availability index of 99.9951%. x Avoided annual carbon emissions of over 245,000 metric tons from Energy Policy related programs. x Non-carbon resources provided 24.7% of electricity (18.3% from hydro, 6.2% from wind and 0.2% from solar). x Fort Collins has already met the 2015 requirements of the Colorado Renewable Energy Standard of a minimum of 6% renewable energy. x Efficiency programs generated over $27 million in local economic benefits through reduced utility bills, direct rebates and leveraged investment. Major 2014 activities and highlights: x Utilities continued implementation of the Advanced Meter Fort Collins project to modernize the distribution system. x Customer electricity savings from efficiency programs totaled over 32,600 megawatt- hours (MWh), or 2.2% of the community’s annual usage. This is equivalent to the annual electric use of over 3,600 typical Fort Collins homes. x Efficiency programs saved electricity with a lifecycle cost-of-conserved energy of 2.2 cents per kilowatt-hour (kWh), compared to an average wholesale electricity cost of 5.4 cents per kWh. x The Peak Partners demand response program began with the deployment of 160 wi-fi thermostats in summer 2014. Peak Partners is expected to deploy over 2,500 thermostats and 2,800 water heater controllers by the end of 2016. x Photovoltaic (PV) capacity additions totaled 958 kW (620 kW residential and 338 kW commercial). Total solar capacity at the end of 2014 was 2,625 kilowatts. x Fort Collins Solar Power Purchase Program (SP3) projects began to come on line in 2014 and will continue into 2015. x The Riverside Community Solar Project moved forward in 2014 with construction expected in the second quarter of 2015. 12.2 Packet Pg. 127 Attachment: Energy Policy 2014 Annual Update (3713 : Energy Policy) Fort Collins Utilities 2 x Fort Collins Utilities, Platte River Power Authority and the other member cities combined efficiency programs for both homes and businesses into a common structure called “Efficiency Works.” The collaborative approach improves the effectiveness of the programs and provides a larger common marketplace. x Platte River contracted to purchase the output of 60 megawatts of new wind energy from the Spring Canyon project in eastern Colorado. 12.2 Packet Pg. 128 Attachment: Energy Policy 2014 Annual Update (3713 : Energy Policy) Fort Collins Utilities 3 12.2 Packet Pg. 129 Attachment: Energy Policy 2014 Annual Update (3713 : Energy Policy) Fort Collins Utilities 4 12.2 Packet Pg. 130 Attachment: Energy Policy 2014 Annual Update (3713 : Energy Policy) Energy Policy 2014 Annual Update, Appendix June 2015 Fort Collins Utilities 5 Appendix: Energy Policy Metrics Scorecard The Energy Policy references goals that include specific objectives and metrics in various categories. The following tables summarize status, progress and accomplishments in 2014 related to each goal and supporting objectives. The tables use the following stoplight color coding to indicate progress and status: Achieved or on-track to be achieved Progress towards being achieved Not achieved or at risk for not being achieved For more information regarding any aspect of this annual update, call Fort Collins Utilities at (970) 221-6700, e-mail utilities@fcgov.com or TDD (970) 224-6003. Goal 1: Provide Highly Reliable Electric Service Objectives and Metrics Progress Provide and maintain a highly reliable system. Average System Availability Index (ASAI) greater than 99.9956% 99.9951% Customer Average Interruption Index (CAIDI) less than 45 minutes 68 minutes System Average Interruption Frequency Index (SAIFI) less than 0.66 0.37 interruptions Manage peak loads to reduce demands on the distribution system, optimize infrastructure investment and reduce purchased power costs. Maintain energy efficiency and demand side management programs targeting peak loads. Peak demand savings from 2014 efficiency programs was approximately 4.8 MW. The Efficiency Works Business program targets peak load reduction. Custom projects offer the option of calculating rebates based on peak demand reductions. Residential programs also contribute to peak load reductions. Increase the power managed by load management, smart grid and distributed generation to at least 5% of 2005 system peak demand by 2015 and at least 10% by 2020. Combined residential and commercial maximum realized load reduction for 2014 was 3.5 MW, or 1.2% of 2014 peak demand. The weather for summer 2014 was relatively mild, contributing to the lower demand response results for the year. 12.2 Packet Pg. 131 Attachment: Energy Policy 2014 Annual Update (3713 : Energy Policy) Energy Policy 2014 Annual Update, Appendix June 2015 Fort Collins Utilities 6 Goal 2: Support Community Greenhouse Gas Reduction Goal (20% Reduction Below 2005 Levels by 2020 and 80% Reduction by 2050) Objectives and Metrics Progress Report Light and Power Greenhouse Gas (GHG) emissions inventory and results of reduction efforts. Light and Power aggregate 2014 emissions (ownership and operational control) GHG Emissions Inventory (metric tons) 2005 2014 Percent Change Ownership Boundary 1,725,390 1,560,082 -9.6% Operational Boundary 1,198,083 1,119,271 -6.6% Gross Energy Policy related GHG reductions 245,267 metric tons Continuously reduce energy use through verifiable energy efficiency and related programs. Achieve annual energy efficiency and conservation program savings of at least 1.5% of annual energy use (based on a three-year average history). Customer (gross) energy efficiency program savings was 32,953 MWh in 2014, 2.2% of the community’s electric use. Utility savings (net) was 26,426 MWh, 1.8% of the community’s electric use. Pursue and secure renewable energy investments by balancing environmental benefits, cost effectiveness, impact on electrical system operations and local economic benefits. Maintain a minimum fraction of renewable energy in compliance with State of Colorado requirements. A total of 6.0% of renewable energy per the rules of the Colorado Renewable Energy Standard (5.4% from rate-based wind purchases from Platte River 0.2% from local solar which leverages a 3x multiplier under the standard). Voluntary purchases from the Green Energy Program are not included. Offer voluntary customer-focused renewable energy programs. 12,989 MWh from Green Energy program Increase the contribution of renewable energy to reach the 20% by 2020 carbon reduction goal, after accounting for the contributions of resource mix, energy efficiency, conservation, minimum renewable energy requirements and voluntary renewable energy programs. 6.4% total renewable energy (6.2% from wind resources and 0.2% from local solar). Hydro resources provided 18.3% for a total non-carbon emitting portfolio of 24.7%. 12.2 Packet Pg. 132 Attachment: Energy Policy 2014 Annual Update (3713 : Energy Policy) Energy Policy 2014 Annual Update, Appendix June 2015 Fort Collins Utilities 7 3. Enhance Local Economic Health Objectives and Metrics Progress Maintain sufficient revenues through biennial budget planning for on-going operation and maintenance of the electric system and meet the projected requirements of the asset management plan. Operate and maintain regionally competitive electric service that promotes energy efficiency and conservation. Maintain competitive electric rates. As of July 2014, Fort Collins typical residential customer bills were in the lowest 16% of 55 Colorado utilities reporting to the Colorado Association of Municipal Utilities (CAMU). Maintain efficiency and conservation programs to help keep customers’ energy bills affordable. Affordability of Utilities electric service (percentage of area median income AMI): x Average Residential Customer: 1.2% of AMI x Low Income Customer: 1.5% of AMI x Very Low Income Customer: 2.1% of AMI x Extremely Low Income Customer: 3.9% AMI Fort Collins electric and natural gas affordability for average residential customer: 2.1% of AMI. Leverage Utilities programs to create local and positive economic impacts. Strive to invest climate improvement monies locally in programs that have long-term positive impacts. Efficiency programs in 2014 generated over $27 million in local economic benefits through reduced utility bills, incentives, leveraged investment and indirect activity (e.g. including the effects of additional available spending from reducing utility bills and benefits from efficiency related local activity). 4. Work closely with Platte River Power Authority members and staff to further City of Fort Collins’ Energy Policy goals Objectives and Metrics Progress Develop closer working relationships with the other Platte River cities. With other member cities, provide policy guidance to Platte River to: Develop long-term planning policies for Platte River that facilitate innovative solutions to future energy challenges. Platte River continued work on their strategic and resource plans in 2014 with the intent that it be updated as detailed analyses of future scenarios are completed, new technologies evolve, and market opportunities develop. The plan is guide for developing an adaptive strategy to sustain Platte River Power Authority and the communities we serve for the next forty years and beyond. www.prpa.org/sources/strategic-plan/ Diversify the portfolio of energy sources that serve the City. Platte River executed an agreement to purchase an additional 60 megawatts of capacity from a wind farm to be constructed in eastern Colorado by the end of 2014. 12.2 Packet Pg. 133 Attachment: Energy Policy 2014 Annual Update (3713 : Energy Policy) Energy Policy 2014 Annual Update, Appendix June 2015 Fort Collins Utilities 8 Table 1: Fort Collins Utilities DSM Programs, Budgets, and Outcomes (2014) Note: ND = no data 12.2 Packet Pg. 134 Attachment: Energy Policy 2014 Annual Update (3713 : Energy Policy) ATTACHMENT 3 12.3 Packet Pg. 135 Attachment: Community Outreach Summary (3713 : Energy Policy) Environmental Services 215 N. Mason PO Box 580 Fort Collins, CO 80521 970.221-6600 fcgov.com/environmentalservices MEMORANDUM To: Mayor and City Councilmembers From: John Shenot, AQAB Chair CC: Air Quality Advisory Board Date: August 29, 2015 Re: Recommendations Regarding the Energy Policy Update ___________________________________________________________________________________ At our August 17, 2015 meeting, the AQAB reviewed a draft of the Energy Policy update that Council will consider at a September work session. The AQAB appreciates having had the opportunity to review and comment on the draft Energy Policy Update, and we commend the Energy Board on their efforts. The AQAB strongly supports the updated Energy Policy and is pleased to see a Policy that is forward-looking and that acknowledges the significant air quality and public health impacts associated with energy use. This is the kind of policy Fort Collins needs to adopt and embrace in order to meet the expectations and hopes of our community. We recommend adoption by City Council of an Energy Policy that is substantially the same as the version we reviewed and discussed on August 17, 2015, but with additional consideration of our comments (below) that were delivered to the Energy Board. x Putting additional emphasis on Energy Policy objectives not related to the Climate Action Plan (CAP), or at least including some justification for why the CAP objectives are so much more prominent than other objectives. x Placing greater emphasis on the City’s role as a leader in developing, demonstrating and implementing new ideas and best practice solutions to energy challenges (in the Vision Statement and perhaps in other elements of the plan as well). x Adding figures that show energy production and use, rather than (or in addition to) greenhouse gas (GHG) emissions, in the section on Fort Collins Energy Characterization. x Adding “less carbon-intensive fuels” and “smart growth” to the Transportation and Land Use bubble in the Fort Collins Energy Policy chart in the Background section. The Goals bubbles could also overlap one another to represent their interconnectedness. x Providing current performance data whenever goals are expressed, to provide a frame of reference. x Including specific goals for each policy objective (e.g. electric vehicle use). These goals should be at least as ambitious as those required to achieve the goals of the CAP framework through 2030, which is not always clearly the case (e.g., building efficiency standards). x Where possible, prioritizing the policy objectives (with justification) to indicate which are most essential for achieving the state vision of the Energy Policy. This is important in case the City cannot, for financial or other reasons, pursue all of the listed objectives immediately. x Including goals and metrics for energy storage. x Discussing traffic congestion in a broader context than just parking (e.g., congestion at schools, train crossings, traffic lights). x Explaining, at least briefly, the specific connections between the Energy Policy and the other plans and programs listed. The AQAB stands ready to explain or discuss any of these recommendations should Council members have any questions. 12.3 Packet Pg. 136 Attachment: Community Outreach Summary (3713 : Energy Policy) Combined Notes for Energy Policy Board Outreach April – July 2015 Notes by Lisa Rosintoski, John Phelan, Peter O’Neil Transportation Board x Electric vehicles burning coal in rawhide versus gasoline car burning here any gaining between the two due to generation being more renewables electric vehicles would be better in our community x Transmission loss from rawhide to battery – losses 2.0% on transmission and 2.5% of distribution x Solar cells on roof if charging own electric car more efficient x Development of metrics for VMT as awareness to not get ahead of TMP x Given a daunting task, EP super data driven, starting point is good high level data across all areas of VMT to bring connectivity to TMP and EP from scientific to esoteric align metrics between plans policies x Suggest APP board to be presented x Integrated with VMT multi-model shifts alignment is good x Metrics useful for transportation need more precise estimation tools to quantify VMT going forward x Groups working on senior transportation lose ability to drive land use planning multi-model when can’t drive any longer keep thinking about with energy. x Higher classification of ozone is worse than anticipated vehicles play a role x External impact of regulatory changes; local ozone compliance (JOHN to review) x VMT translated to pollution and carbon dioxide impacts to ozone x EB work with transportation board on VMT opportunities Air Quality Board x CAP so fuzzy, interested in seeing the specific pathways (person was part of CAC) x Modeling, when starting programs and when ramp up. Timeframes for cost, and feasibility x Energy Policy plan should we ramp up energy efficiency. Since the framework is so big don’t know how focused Energy Policy can be. x What does mean existing building versus new building what have to do to achieve. What policies need to push. x Electrification long-term strategy emissions associated with GHG needs to be included x City Energy Policy sources of energy emissions associated with them are not customer generation through diesel and wood tend to have higher emissions than utility delivered power. If a broad policy would like to see those overlooked fuels addressed x Focus on reducing energy consumption overall through VMT, bikes, trails, etc. 12.3 Packet Pg. 137 Attachment: Community Outreach Summary (3713 : Energy Policy) x What other options allow individuals to have creative solutions for on-site generation (liked Intel Solar car ports) x Need to understand “Why” of CAP x What does stakeholder engagement mean x Provide Air Quality a draft policy for review for an endorsement. Planning and Zoning Board x What is carbon sequestration? x What level do you want for the development to evaluate carbon impact’s x What is carbon impact of development? Get appropriate staff and timeframe to address for a metric x Required to do a sustainability assessment can do at sub-level next iteration of City Plan may evaluate entire area for carbon impact. Land use patterns already address, may pursue efforts to maximize solar impacts. x Land use code a potential opportunity. Is the efforts more painful to developers etc. with more requirements? x Cause and effect standpoint neighborhood to go over certain level development may have to credit to offset? Figure energy impact based on impact some sort to draw carbon footprint. x Electric utility accounting so we may use less here but rawhide is still burning on surplus sales x Platte River is elephant in the room with coal being fuel source for Fort Collins x Since coal is low on world class to what extent are we partnering with a different source of electric power such as gas bridge fuel x Is using more natural gas part of review by PRPA x Building code and conservation code new version 3 years amendments possibility to manage but building reach a point of no return x Heat pump included in code classified as electric heat x Can’t use electric heat as primary heat source maintain 68 degrees x When amendments are made make sure requirements are complimentary, such as (code review) x Looking for new development, infill and refill more issues with x Roof top solar great opportunity and home storage need to manage more incentive with roof top solar x FCU partner with PRPA and Tri-State on solutions that manage the evolution of how utility provides services x Performance of buildings going forward need to be managed as part of building codes to compliment reaching the goals Economic Advisory Commission x How renewable rate ranks with other cities competitively x Education for goals within plan for job opportunities with people skilled to manage 12.3 Packet Pg. 138 Attachment: Community Outreach Summary (3713 : Energy Policy) x Never seen renewables and energy supply, rawhide right here and see it. Big footprint. People don’t see so they think all green. There are consequences seeing a picture of how many wind turbines, where going to be (how it has changed the natural landscape). Nothing is free, not environmentally friendly. Go from coal and gas, see fracking. Now see solar and wind and what it really looks like. x See impacts of transmission lines so people are aware x Conversation on climate action “how any energy policies help with reliability’; important economic conversation large manufacturers rely on energy to manage product development. That is part of sustainability conversation but managing business development how much of changing infrastructure ends up in land-fill or issues Natural Resources Advisory Board x Do you have any plans long range view to provide energy storage x Have projected cost of electricity to consumer x Does natural gas figure in scenarios x Structured logical job is there anything some people may find surprising x Peak partners subscriber think long and hard if wanted to do that based on hackers x Have you seen reduction in use based on AMFC and access to timely data x Ramping efficiency one issue considering thinking about increase costs for new developments; requiring certain level of efficiencies housing market x Targeting specific groups most impact energy efficiency can be achieved x Carbon sequestration how thinking about that going forward x Proposed metrics targets needs more clarity Chamber of Commerce, Local Legislative Affairs Committee x Include cost for objectives/tactics that provide awareness x What is the “real vision”? o There is a need to take advantage of evolving technology. o Carbon neutral does not mean fossil fuel elimination. o Food chain does not support the budget. o Need more data on Economic Health. x City Government fixated on inspirational goals – impossible to achieve versus measurement/verification x Staff commits to follow-through with the annual report, provide analysis that shows if achieving the goals or the need to change the goals x Lack of business represented on Energy Board Key Feedback: 1. Represent costs!!! 2. Staff can better represent goals by continuously performing plan, do, check, act with the annual reporting 3. Vision statements between CAP and EBP contradicts (pick one), carbon neutral, or no fossil fuels 4. Role of technology within vision 12.3 Packet Pg. 139 Attachment: Community Outreach Summary (3713 : Energy Policy) 5. Loss of revenue; there is an economic side 6. Quantify what we can do, at what cost with metrics 7. Structure with incentives versus mandates = carrot vs whip 8. Need a member of business community on Energy Board 9. Is this draft Energy Policy written in stone, impossible to change at this time? Senior Board x Must take into account the changing demographic of seniors which has been identified as 1 in 5 in the next five years for the Fort Collins area. What programs are designed to recognize less travel but staying home and turning up the heat. x Must keep in mind the ease and awareness for transportation system. New York has schedules that let’s you know times and routes. x Understand ozone impacts from GHG x Demand response worrying to seniors we are home don’t want AC turned down. Also may be health reasons that senior’s would not participate. x Efficiency focus, has experienced overloads in complex notice wiring may be an issue with load that is occurring. Suggested contacting Utilities for program to review facility efficiency. x Mobility to reduce VMT east west is awful. Max is wonderful. Explaining to people to understand all issues. x Affordable housing summit still do not include transportation in agenda considering for location of senior facilities that is supported by transit. x East coast versus mass transit in Colorado if transit came more than more people would use. May more frequent, smaller buses. x Advertise transfort like did for max; time reads for all transfort. Start with major connectors and work out. x Demand for transport really low x Subsidize older homes for better insulation need to work with people on what they can do is more user friendly Affordable Housing Advisory Board x Board was interested in how to measure utility cost affordability o Consider percentage of income approach o Consider the cost of construction with regards to building requirements x Beware of diminishing returns for increasing building energy requirements x Would like more information regarding low income programs and services x Would like to see City incentives/fees/development explicitly support infill x Consider ways to provide incentives for DIY citizens x Look at all levels of housing (housing affordability versus affordable housing) x Consider focusing on multi-family appraisal values for energy improvements 12.3 Packet Pg. 140 Attachment: Community Outreach Summary (3713 : Energy Policy) Public Comments Submitted via fcgov.com ---------------------------------------- I just saw this opportunity to comment on the Climate Action Plan (Energy Policy) and realize I have missed the deadline but will present something in hopes of having it considered. In my opinion the plan falls short in addressing new homes. If I understand correctly the plan recommends implementing IECC energy codes for new construction within one year of issuance. While I'm assuming this is a more timely implementation than in the past I think that it is an incredibly unambitious goal. Standards like Passive House that reduce heating energy use in homes by 90% or more have been implemented in much of Europe and to a lesser extent in the U.S. Builders implementing the Passive House standard indicate it can be done with as little as 10% increase in costs. For the last 5 years I have been doing home energy audits in Fort Collins. Before that I had spent 20 years in new home construction. Based on my experience it is incredibly expensive to retrofit an existing home and the energy savings will not be close to what we can do when building new. Yes, retrofitting new homes is necessary but let's stop building new homes that will need to be retrofit immediately. Although IECC energy codes have improved over the years they are a minimum standard. Ambitious goals to address climate change need to include ambitious standards. Please implement more robust standards for new homes. I welcome an opportunity to discuss this in more detail. ---------------------------------------- FYI - In case you have not seen this earlier: http://washington.cbslocal.com/2015/06/09/va-utility-seeking-schools-to-shine-a-light-on-solar-power/ Food for thought! Suzanne King (following your Energy Policy Presentation) ---------------------------------------- Good morning, Mayor Troxell, Members of City Council, and City Staff – The Fort Collins Sustainability Group (FCSG) has reviewed the April 9th version of the draft Energy Policy and developed the comments appended below. I will present these comments to the Energy Board at its meeting this evening. Regards, 12.3 Packet Pg. 141 Attachment: Community Outreach Summary (3713 : Energy Policy) Kevin Cross Fort Collins Sustainability Group Steering Committee Fort Collins Community Action Network P.O. Box 400 Fort Collins, CO 80522 Ph. 970-484-3141 http://fcsg.fccan.org/ FCSG Comments on the Fort Collins Draft Energy Policy The Fort Collins Sustainability Group has reviewed the draft Fort Collins Energy Policy dated April 9, 2015. We fully endorse the policy’s vision, which is to “To support Fort Collins’ social, environmental and economic health through clean energy systems and efficient end-use consumption, with a long term goal of transitioning to energy systems free of fossil fuels.” We are pleased to see multiple references to the 2015 Climate Action Plan (CAP) in the draft Energy Policy, along with support for the goals in that plan, which are to reduce community-wide greenhouse gas (GHG) emissions 20% by 2020 and 80% by 2030 compared to 2005 levels, and to achieve carbon neutrality by 2050. As shown on page 5 of the draft Energy Policy, electricity generation is the main source of Fort Collins’ GHG emissions. We are pleased to see that the annual electric energy savings target will increase from 1.5% in 2015, up to 1.75% in 2016-17, 2% in 2018-19, and 2.5% by 2020. These are among the most ambitious electric energy savings goals in the country. The electric energy savings target adopted for the period 2009-14 was 1.5% per year. We are curious about the actual results for that time period, and would like to see those referenced in the 2015 Energy Policy. The residents of Fort Collins have a right to expect accountability from their municipal utility. The other main contributors to Fort Collins’ GHG emissions are the fuels used for ground travel (primarily gasoline and diesel) and natural gas (used mainly to heat buildings). We would like to see annual savings goals for these fuels through 2020, similar to those established for electricity. These should also support the CAP goal for 2020 of 20% GHG emissions reductions compared to 2005. The City already has a number of programs and policies in place that could be strengthened in order to achieve the new electric energy savings targets, as well as savings targets for transportation fuels and natural gas. Those include ClimateWise, on-bill financing of energy improvements, rebates for energy improvements, and the public transit system. We would like to see these programs and policies – plus recommendations for enhancing them – included in the section titled “Implementation Principles” on page 10 of the draft Energy Policy. The “Implementation Principles” section does include a list of “local and regional energy partners.” We believe that list should be expanded to include community organizations, such as the Community for Sustainable Energy, the Fort Collins Bike Co-op, the Fort Collins Community Action Network, and the Fort Collins Sustainability Group. Those organizations – and the city residents behind them - have 12.3 Packet Pg. 142 Attachment: Community Outreach Summary (3713 : Energy Policy) contributed a great deal to the progress the City has already made in implementing forward-thinking energy policies and practices. Finally, the “Local Economic Health” section on page 11 of the draft Energy Policy mentions entrepreneurial activity and outside capital, but does not mention the creation of socially productive, intellectually stimulating, and well-paying jobs as a likely benefit of the transition to a clean energy economy. We believe that the draft Energy Policy should emphasize this benefit, along with emphasizing the importance of creating a good example for other communities to follow in pursuing their own transitions to a clean energy economy. 12.3 Packet Pg. 143 Attachment: Community Outreach Summary (3713 : Energy Policy) RESOLUTION 2015-094 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING AND ADOPTING AN UPDATED ENERGY POLICY WHEREAS, on August 18, 1992, the City Council approved and adopted the City’s initial Electric Energy Supply Policy, establishing policies, guidelines and criteria to guide future development of City departments and provide community leadership in managing energy demand (the "1992 Policy"); and WHEREAS, the 1992 Policy has since been updated and renamed, most recently under Resolution 2009-002, adopted by City Council on January 6, 2009, which approved and adopted the current Energy Policy (the "2009 Policy"); and WHEREAS, City staff has prepared an updated energy policy, entitled "2015 Energy Policy" a copy of which is attached hereto as Exhibit "A" and incorporated herein by this reference (the "2015 Policy"); and WHEREAS, City Council reviewed the draft 2015 Policy during a work session on September 22, 2015 and encouraged staff to conduct additional community engagement before finalizing the updated policy for potential adoption by Council; and WHEREAS, staff and the Energy Board chairperson subsequently engaged in extensive community engagement, including presentations to the Energy Board, Affordable Housing Board, Air Quality Advisory Board, Economic Advisory Board, Natural Resources Advisory Board, Planning & Zoning Board, Transportation Board, Senior Advisory Board, and Water Board; and WHEREAS, the Energy Board and Air Quality Advisory Board each adopted formal memoranda of support for the 2015 Policy, as modified in response to Council and community comments; and WHEREAS, the 2015 Policy is consistent with the fundamental goals established in the 2009 Policy to maintain electric distribution system reliability, safety, and energy affordability for the community, as well as incorporating greenhouse gas emission reduction and pollution prevention goals, State of Colorado renewable portfolio standards, and updated metrics and goal calibrations with current electric industry best practices; and WHEREAS, in addition, the 2015 Policy contains language intended to: • Realign energy efficiency and demand response goals and objectives for 2020; • Realign overall renewable energy and local renewable energy goals for 2020; • Recognize the City’s greenhouse gas emission responsibilities due to its ownership stake in Platte River Power Authority; and • Align the Energy Policy with other City plans and policies; and WHEREAS, the City Council has determined it is in the best interest of the City to accept and approve the 2015 Policy. Packet Pg. 144 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the 2015 Energy Policy is hereby approved and adopted. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 3rd day of November, A.D. 2015. _________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 145 FORT COLLINS ENERGY POLICY November 3, 2015 EXHIBIT A 1 Packet Pg. 146 Attachment: Exhibit A (3724 : Energy Policy-RES) 1 Packet Pg. 147 Attachment: Exhibit A (3724 : Energy Policy-RES) Page | 1 TABLE OF CONTENTS Overview......................................................................................................................................................... 3 Background ..................................................................................................................................................... 3 Vision and Motivations ................................................................................................................................... 4 Vision ......................................................................................................................................................... 4 Motivations ................................................................................................................................................ 4 Fort Collins energy characterization .......................................................................................................... 4 Policy Objectives ............................................................................................................................................. 6 Built environment ...................................................................................................................................... 6 Improve performance of new buildings ................................................................................................ 6 Improve performance of existing buildings and process energy use ................................................... 6 Electricity supply and distribution ............................................................................................................. 7 Electric supply resources ...................................................................................................................... 7 Reliability .............................................................................................................................................. 7 Electric distribution ............................................................................................................................... 8 Transportation and land use ...................................................................................................................... 8 Development, redevelopment and parking .......................................................................................... 8 Multimodal transportation ................................................................................................................... 9 Fuel-ffficient and electric vehicles ........................................................................................................ 9 Elements of the Transportation Master Plan pertaining to energy .................................................... 10 Elements of land use planning pertaining to energy .......................................................................... 10 Implementation Principles ........................................................................................................................... 11 Systems thinking ...................................................................................................................................... 11 Partnership .............................................................................................................................................. 11 Community economics ............................................................................................................................ 12 Local economic health ........................................................................................................................ 12 Fort Collins UtilitiesLight & Power ..................................................................................................... 12 1 Packet Pg. 148 Attachment: Exhibit A (3724 : Energy Policy-RES) Page | 2 Electricity pricing ................................................................................................................................. 12 Information and education ...................................................................................................................... 13 Privacy and security ................................................................................................................................. 13 Connections and Metrics .............................................................................................................................. 14 Connections to other plans and programs .............................................................................................. 14 Implementation and metrics ................................................................................................................... 14 Policy review ............................................................................................................................................ 14 1 Packet Pg. 149 Attachment: Exhibit A (3724 : Energy Policy-RES) Page | 3 OVERVIEW The City of Fort Collins’ Energy Policy reflects our community’s values of reliability, safety, affordability, greenhouse gas (GHG) emissions reduction, pollution prevention and energy independence. The policy provides goals for the prioritization of decision making, programs and services related to the quantity of use and the sources of energy for electricity, thermal end-uses and transportation. The Energy Policy uses a systems approach to energy production and consumption, as well as triple bottom line metrics (economy, society and environment), to guide City government in the development of plans promoting policy outcomes for residents, businesses and other organizations. The City also has a role in the demonstration of policy initiatives through leading by example. BACKGROUND The City’s first energy policy was the 2003 Electric Energy Supply Policy. In 2009, it was revised and renamed the Energy Policy. This update reflects a more comprehensive approach for energy issues and includes electricity, heating and transportation fuels, and the interactions between them. The following graphic shows the relationships among the sections of this document. 1 Packet Pg. 150 Attachment: Exhibit A (3724 : Energy Policy-RES) Page | 4 VISION AND MOTIVATIONS VISION Fort Collins is a leader in the transition to sustainable and resilient local energy systems to serve the communityಬs 2050 carbon neutral future. MOTIVATIONS The Energy Policy seeks to: ವ Maintain or improve the reliability of energy delivery ವ Promote energy affordability and safety for residents, businesses and institutions ವ Support reductions of the community’s GHG emissions from energy use in accordance with the Climate Action Plan (CAP) Framework (March 2015) – the current community GHG goals are a reduction of 20 percent from 2005 levels by 2020, 80 percent by 2030 and carbon neutral by 2050 ವ Reduce the emission of criteria pollutants ವ Reduce the environmental damage caused by energy extraction and production ವ Leverage the role of Fort Collins Utilities Light & Power as the community’s municipally owned utility ವ Retain more of our community’s energy expenditures in the local economy ವ Foster local economic opportunity in energy efficiency, production and operation ವ Leverage opportunities to coordinate integrated planning for energy and water supply and demands ವ Increase our community’s resilience to potential energy and climate related disruptions ವ Maintain compliance with and leverage the potential benefits of local, regional, state and national regulatory frameworks, which impact energy production and use (e.g., carbon, fuel standards, ozone) ವ Make Fort Collins an energy leader that can serve as a model for other communities The Energy Policy also recognizes Fort Collins greenhouse gas emission responsibilities through its ownership in Platte River Power Authority (Platte River). As a local action agency, generation and transmission authority, Platte River operates electricity generation facilities on behalf of the member-owner cities of Fort Collins, Loveland, Longmont and Estes Park. These facilities include fossil fuel resources (coal and natural gas), as well as non-carbon resources (hydro, wind and solar). Fort Collins, as a member-owner of Platte River, is responsible for an ownership allocation of the associated carbon emissions. As of 2014 the share was 47 percent. FORT COLLINS ENERGY CHARACTERIZATION As a framework for understanding the challenges facing the envisioned transition of the community’s energy systems, the following charts illustrate the diversity of Fort Collins energy sources and end use sectors in both primary energy and greenhouse gas metrics. Electricity is the largest single energy use source of GHG emissions, followed by transportation fuels and natural gas used for heating and industrial processes. By sector, residential emissions are followed by industrial and commercial, respectively, but ground travel is higher than any of the building sectors based on 2014 data. 1 Packet Pg. 151 Attachment: Exhibit A (3724 : Energy Policy-RES) Page | 5 Fort Collins Energy Profile (2014 data) Greenhouse Gas Emissions Profile (2014 data) Primary Fuels End Use Energy End Use Sector Renewables Coal (17%) Natural gas (38%) Petroleum (40%) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Transportation Built Environment Transportation Transportation Built Environment Transportation Transportation Built Environment Transportation Transportation Built Environment Transportation (6%) Electricity (23%) Natural gas (38%) Gasoline & Diesel (40%) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Residential (25%) Commercial (14%) Industrial (21%) Transportation (40%) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Energy Percent Primary Fuel End Use Energy End Use Sector Coal (53%) Natural gas (19%) Petroleum (28%) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% GHG Emissions Percent Electricity (50%) Gasoline and Diesel (6%) (28%) Natural Gas (19%) Waste 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% GHG Emissions Percent (3%) Transportation (28%) Residential (25%) Industrial (22%) Commercial (20%) Waste Other 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% GHG Emissions Percent (3%) (2%) 1 Packet Pg. 152 Attachment: Exhibit A (3724 : Energy Policy-RES) Page | 6 POLICY OBJECTIVES BUILT ENVIRONMENT The building sector is Fort Collins’ top energy consumer and contributor to greenhouse gas emissions. Efficiency measures are generally the lowest cost resource available, compared to traditional or renewable supply-side choices. For new construction, building right the first time locks in energy savings and offers benefits for decades to come. By reducing the overall demand for energy, efficiency also makes all supply-side options more feasible and cost effective. As the carbon intensity of the electricity supply reduces over time, electrification of heat and process loads from natural gas becomes an additional strategy for reducing emissions from the built environment. IMPROVE PERFORMANCE OF NEW BUILDINGS ವ Adopt and enforce current International Energy Conservation Codes (IECC) within one year of issuance, with local amendments, advancing efficiency, indoor environmental quality, installed performance and readiness for building-scale renewable energy and demand response. ವ Promote building energy performance through above-code standards with market and incentive approaches. IMPROVE PERFORMANCE OF EXISTING BUILDINGS AND PROCESS ENERGY USE ವ Support the reduction of natural gas use in the community through efficiency programs, information resources, and partnerships with other organizations to achieve targets in alignment with the CAP. ವ Support the continuous energy use reduction in all building types and industrial processes through verifiable and cost-effective efficiency and conservation programs. As a percentage of community electricity use, achieve incremental annual electric portfolio savings of efficiency and conservation program savings of:1 Year Savings Target ದದ % 2015 1.5 2016 1.75 2017 1.75 2018 2.0 2019 2.0 2020 2.5 1 Incremental is defined as “new” savings achieved in a given year; maintaining existing behavioral program savings counts towards the total community annual results, but not towards the incremental target. In 2013 and 2014, incremental portfolio savings was 1.5% and total portfolio savings was 2.2%. The reference basis of the annual percentage energy use savings target is the average of community electric energy use for three years (including the target year). Cost effectiveness is to be calculated on the overall program portfolio using the Program Administrator Test, where utility incentive and administration costs for lifetime energy savings is less than the blended electricity supply price (or natural gas unit price where applicable). 1 Packet Pg. 153 Attachment: Exhibit A (3724 : Energy Policy-RES) Page | 7 ELECTRICITY SUPPLY AND DISTRIBUTION Design and maintain an electricity distribution infrastructure to facilitate a diverse, efficient, economical, reliable, clean and secure transition to higher levels of renewable energy sources, both distributed and utility scale. This energy system includes infrastructure at the customer, local distribution and regional generation and transmission scale. The infrastructure also must deploy communication and control technology to manage the balance of distributed supply resources and customer demand. Since both the community waste stream and energy resources contribute to the community’s greenhouse gas emissions, waste-to-energy may become a viable resource in the future. Fort Collins should seek opportunities to include electricity storage, as it is expected to become a transformational component of the electricity supply system. ELECTRIC SUPPLY RESOURCES The following targets support objectives related to resource diversity and increasing amounts of renewable energy sources2: ವ Increase the diversity of the electricity supply by reducing the percentage contribution of coal-derived electricity to less than 60 percent by 2020 ವ Increase the overall amount of renewable energy to a minimum of 20 percent by 2020 ವ Increase the amount of distributed renewable energy to provide a minimum of 2 percent of community electricity requirements by 20203 ವ Seek opportunities for local distributed generation resources such as combined heat and power and biomass in alignment with the CAP Framework ವ Coordinate with Platte River to achieve the strategic plan target of a 20 percent reduction in Platte River greenhouse gas emissions by 2020 RELIABILITY Demonstrate the high reliability of the Fort Collins electric system by maintaining annual reliability metrics of: ವ Average System Availability Index (ASAI) greater than 99.9956 percent ವ Customer Average Interruption Index (CAIDI) less than 45 minutes ವ System Average Interruption Frequency Index (SAIFI) less than 0.66 2 Qualifying renewable resources as defined by the Colorado Renewable Energy Standard: “Renewable energy resources” are biomass (plant matter, animal waste, methane from landfills and wastewater treatment), solar, geothermal, wind and new hydro with a nameplate rating of 10 megawatts (MW) or less. 3 Distributed renewable generation as defined by the Colorado Renewable Energy Standard: Retail distributed generation is, by definition, customer-sited (behind the meter) and also subject to an annual onsite energy consumption net metering cap of 120 percent. Wholesale or non-customer sited, distributed generation is defined as any renewable electric resource less than 30MW in nameplate capacity that is not retail distributed generation. 1 Packet Pg. 154 Attachment: Exhibit A (3724 : Energy Policy-RES) Page | 8 ELECTRIC DISTRIBUTION The electric distribution system is a key asset in the long-term vision of the Energy Policy, supported by the following objectives: ವ Complete the Electric Distribution Asset Management plan by the end of 2016. The distribution system plan should include addressing proposed distributed generation and demand response targets. ವ Increase the available peak dispatch capacity of the demand response system to 5 percent of annual peak loads by 2020. ವ Develop plans for demand response integration with Platte River and the other cities to improve and understand demand response values as a system resource. Review the demand response capacity targets on an annual basis with regards to system value and pricing. ವ Develop distribution modeling capabilities to support the asset management plans and grid modernization for distributed resource management. ವ Participate in research, development and demonstration efforts to remain at the forefront of emerging technologies and holistic innovative solutions. TRANSPORTATION AND LAND USE Transportation is vital to our community, enabling us to move from where we live to where we work, learn, shop, recreate, and play. Fort Collins’ transportation is fueled almost entirely by gasoline and diesel, accounting for over half of our city’s total energy expenses, over 40 percent of total energy consumption, significant amounts of local air pollutants (NOx, SOx, and particulates) and 28 percent of GHG emissions. The City’s land use and transportation policies are established by City Plan, the Land Use Code and the Transportation Master Plan. These plan documents strive to foster and sustain a “connected community” that maintains high levels of mobility, while reducing the environmental, social and economic costs of our transportation systems. Since transportation demand and the feasibility of walking, cycling and public transit are determined by the mix, layout and density of land uses, as well as population size, the City should continue enhancing its system of integrated land use and transportation planning. In order to responsibly manage energy resources, improve air quality and reduce GHG impacts associated with transportation and land use, this Energy Policy encourages an emphasis on the following objectives: ವ Reduce total vehicle miles travelled (VMT), while maintaining mobility options, with a goal to reduce VMT by 10 percent (below 2005 levels) by 2020 ವ Reduce fossil fuel use per VMT In support of these objectives, the Energy Policy recommends: ವ Development of VMT annual estimation techniques which support the objectives of City transportation and energy policies prior to the next revision of the Transportation Master Plan DEVELOPMENT, REDEVELOPMENT AND PARKING Fort Collins is expected to substantially grow in population over the timeframe of the Energy Policy. “Smart growth” refers to transportation and land use planning that emphasizes urban density, mixed-use residential, commercial and recreational areas, multimodal transportation systems and pedestrian and bicycle-friendly streets. It is expected that Fort Collins residents will choose to drive less if the places where they live, work, learn and play are accessible in ways other than by 1 Packet Pg. 155 Attachment: Exhibit A (3724 : Energy Policy-RES) Page | 9 automobile. The City Plan and Transportation Master Plan contain many smart growth policies that advance the objectives identified by this Energy Policy. With Fort Collins anticipated growth, greater emphasis on smart growth is essential to minimizing transportation related energy impacts. This Energy Policy recommends increased efforts to implement smart growth related initiatives that ensure effective application of these principles. Parking and congestion issues are emerging considerations that influence low-impact transportation options. This Energy Policy encourages continued assessment of the public costs of parking and automobile congestion in developing or amending parking and traffic congestion policies. In order to effectively manage the expected energy impacts of on-going growth and development, the Energy Policy recommends: ವ Developing energy related metrics for projects going through the development review process in coordination with the CAP implementation plan and prior to the next update of the City Plan MULTIMODAL TRANSPORTATION In order to advance the objectives of reduced VMT and reduced fossil fuel use per mile, the Energy Policy recognizes the importance of alternatives to automobile travel: walking, biking, carpooling and public transit. Through City Plan and the Transportation Master Plan, the City should continue encouraging the use of these modes through infrastructure and programming. In addition to City Plan and the Transportation Master Plan, other planning documents such as corridor plans, area plans and modal plans, establish policies and action items at varying scales. Many of these plans, such as the 2011 Pedestrian Plan, the 2014 Bicycle Master Plan and the 2009 Transfort Strategic Operating Plan, advance Energy Policy objectives as they relate to transportation system energy use. The Energy Policy encourages implementation of existing plan elements that contribute to achievement of these objectives. Information technologies are transforming how people live and how cities function. Mobile communication devices in particular, help commuters with smart trip planning by providing access to transit routes and schedules, bike- and car- sharing availability and traffic conditions. This Energy Policy encourages continued investment in intelligent transportation systems, either through City-crafted trip-planning software, or by releasing transportation data to the public so application developers can create trip-planning products for the market. In order to more effectively manage the opportunities for mitigating transportation energy impacts, the Energy Policy recommends: ವ Developing metrics reflecting multi-modal transportation use prior to the next revision of the Transportation Master Plan FUEL-FFFICIENT AND ELECTRIC VEHICLES Increased adoption of more fuel-efficient and electric vehicles in Fort Collins means the reduction of petroleum fuels and their associated negative consequences. The City can help residents with data regarding the advantages of high-efficiency, hybrid and electric vehicle choices and by promoting the development of clean vehicle fueling infrastructure. As the carbon intensity of the electricity supply reduces over time, electric vehicles become an essential strategy for reducing emissions from ground transportation. Next steps include: ವ Develop metrics for fleet average fuel efficiency and the number of electric vehicles in Fort Collins prior to the next revision of the Transportation Master Plan 1 Packet Pg. 156 Attachment: Exhibit A (3724 : Energy Policy-RES) Page | 10 ELEMENTS OF THE TRANSPORTATION MASTER PLAN PERTAINING TO ENERGY The current Transportation Master Plan states these principles which further support this Energy Policy: ವ Reduce congestion and vehicle idle time ವ Integrate alternative vehicle technology and advances ವ Enhance travel corridors to improve transportation efficiency, as well as enabling alternative transportation modes ವ Improved access to bicycle and pedestrian trails ವ Create fixed transit corridors to promote transit-oriented development The Transportation Master Plan is periodically amended and updated to address changing conditions and policies. The Transportation Master Plan should advance Energy Policy objectives by considering these principles during future updates: ವ Reduce community VMT ವ Reduce fossil fuel use per VMT ವ Support pedestrian and bike-friendly layout ELEMENTS OF LAND USE PLANNING PERTAINING TO ENERGY City Plan and the Land Use Code are periodically amended and updated to address changing conditions and policies. City Plan and the Land Use Code should further advance Energy Policy objectives through the consideration of these principles during future updates: ವ Regularly review the Land Use Code to support high performance development projects and local renewable energy generation and storage ವ Continue the advancement of land use principles promoting infill, redevelopment and additional planning initiatives ವ Explore ways to enable and encourage property owners to maximize the use of shared resources such as combined heat and power, geo-exchange and energy storage 1 Packet Pg. 157 Attachment: Exhibit A (3724 : Energy Policy-RES) Page | 11 IMPLEMENTATION PRINCIPLES The follow principles provide guidance for developing strategies to achieve Energy Policy goals, while supporting community values. Efforts to achieve the goals should leverage existing programs and services to maximize participation among Fort Collins residents, businesses and institutions. SYSTEMS THINKING Energy is generated, transmitted and consumed through complex, interrelated systems. As such, the decisions made on any component must be evaluated by their impacts on the other related components. The economic, environmental, social and operational aspects of these components should be evaluated as systems from source to consumption. The Energy Policy encourages a systems approach in looking at the interactions of utilities, buildings, land use planning and streets. Additionally, it promotes the provision of energy infrastructure beyond electricity and natural gas across traditional project and parcel boundaries. This infrastructure could extend to thermal energy systems and electrical energy storage. PARTNERSHIP The City has a wide range of local and regional energy partners. These partnership resources can best be used through continued engagement, collaboration, data-sharing and program development. • Platte River: Platte River provides generation and transmission electric services for Fort Collins, Loveland, Longmont and Estes Park, and is owned jointly by the four cities. Platte River is an essential partner in support of Fort Collins’ Energy Policy goals, including electricity supply and customer efficiency programs and services. • Platte River member cities: The four Platte River member cities each have unique needs and philosophies to meet their community goals. There are many opportunities to work together to build strong, efficient and clean electrical energy systems in a cost-effective manner. Future electricity markets may provide regional opportunities to support accomplishing the goals of the Energy Policy. • Educational and research institutions: Colorado State University is one of the City’s largest customers and a leading energy research institution. • Xcel Energy: Xcel provides natural gas to city residents and businesses and electric services to residents with important coordination needs relating to data exchange, reporting and customer efficiency efforts with a regional approach. • Private enterprise: Collaboration and public-private partnerships will be an important avenue in accomplishing Energy Policy goals through research, development, demonstration and implementation efforts. • Other governmental organizations: The City should continue to partner with other governmental organizations such as the Poudre School District, U.S. Department of Energy, the Environmental Protection Agency, the Colorado Energy Office and Larimer County to name a few. • Community organizations: Fort Collins residents acting through formal and informal organizations are key stakeholders and provide an important engagement opportunity. 1 Packet Pg. 158 Attachment: Exhibit A (3724 : Energy Policy-RES) Page | 12 COMMUNITY ECONOMICS LOCAL ECONOMIC HEALTH This Energy Policy aligns with Fort Collins’ leadership in the transition to a clean-energy economy. The City has the potential to stimulate local innovation and entrepreneurial activity, attract new partners and outside capital and encourage funding for cutting edge research and development. The City of Fort Collins can help facilitate projects to stimulate private industry to achieve policy goals while also improving the local economy. The City also should be a leader in deploying efficiency, conservation and renewable energy in its own operations to demonstrate the feasibility of strategies and tactics. The community can benefit from the creation of quality jobs from the implementation of strategies in support of Energy Policy goals. FORT COLLINS UTILITIESLIGHT & POWER Fort Collins Utilities has supported our local economy with highly reliable service and a history of low and stable electric rates. Going forward, competitive rates combined with energy efficiency and conservation programs to result in sustainable energy bills, while supporting economic activity. Fort Collins Utilities’ business activities also support the local economy as a direct and indirect employer and as a contributor to the City’s general fund, by leveraging investment in energy efficiency and renewable energy and by supporting research and demonstration projects. It is important to maintain the financial health of the Fort Collins Utilities Light & Power enterprise fund to support the vision of the Energy Policy. The century-old model of the electric utility is rapidly changing due to technological and market forces. Fort Collins Utilities must be allowed to lead this change to the community advantage. At the same time, Fort Collins is one of four member owners of Platte River Power Authority. Changes from the existing centralized power generation model toward distributed and variable resources should be developed in coordination with Platte River, considering overall system impacts, costs, and operations. Light & Power should seek to pilot new services and models for existing services to explore the best ways to take advantage of new opportunities to advance this Energy Policy and maintain the Utilities’ financial health. ELECTRICITY PRICING Electricity pricing provides a direct connection for citizens and businesses to relate to the community energy system. Fort Collins Utilities should provide predictable long-term directions with regards to rate structures and pricing. The pricing of electrical energy should strive to balance the following principles: ವ Reflect the short-term and long-term costs, both direct and indirect, of generating and delivering electricity ವ Demonstrate equity and fairness by distributing costs over the customer base in proportion to the cost of service ವ Consider both per unit costs (rates) and total bills in comparisons of competitiveness and affordability ವ Promote efficiency and conservation with meaningful price signals ವ Set a clear, public, long-term direction for electric rates with gradual changes ವ Develop rates in the context of long-term asset planning, fixed cost recovery and financial stability ವ Incorporate robust stakeholder engagement 1 Packet Pg. 159 Attachment: Exhibit A (3724 : Energy Policy-RES) Page | 13 INFORMATION AND EDUCATION Fort Collins Utilities and other City departments should continue to facilitate participation in programs and services through education and partnerships that build trust with community stakeholders and the public to enhance Utilities’ reputation as a world-class utility and the best source of energy information. The City should continue to be a credible and effective source of information and education for the community with regards to energy issues and an objective of fostering a resilient and engaged community. Key outcomes include: ವ Provide citizens and business owners with information on energy sources and related financial and environmental data ವ Provide citizens and business owners tailored options for managing, producing and reducing energy use ವ Create collaborative and strategic relationships within the community PRIVACY AND SECURITY Fort Collins Utilities will continue to: ವ Institute policies, procedures and equipment to secure its distribution, generation, control and communication systems against misuse ವ Maintain privacy and security policies relating to personal data so customers are assured of privacy and security of their data and informed of how their data may be used 1 Packet Pg. 160 Attachment: Exhibit A (3724 : Energy Policy-RES) Page | 14 CONNECTIONS AND METRICS CONNECTIONS TO OTHER PLANS AND PROGRAMS Energy Policy goals are closely related to the goals, principles and policies in other City plans and programs and with those of Platte River. For example, GHG reduction, efficiency, conservation and reducing air, water and soil pollution are common to a number of plans and programs. By emphasizing the alignment between programs, the City can identify opportunities to implement actions that benefit multiple programs simultaneously. The plans and programs that directly address or are closely connected to energy include: ವ Climate Action Plan ವ Platte River Power Authority Strategic Resource Plans ವ City Plan ವ Transportation Master Plan ವ Building and land use codes ವ Water Efficiency Plan ವ Green Building Roadmap ವ Road to Zero Waste ವ Air Quality Plan ವ Economic Health Strategic Plan ವ City Strategic Plan ವ Social Sustainability Strategic Plan IMPLEMENTATION AND METRICS City and Utilities resources for implementation of the Energy Policy will be managed through the normal and customary processes for budgeting, appropriations and rate setting. The Utilities Executive Director will provide the City Manager, Energy Board and City Council with an annual status report on the Energy Policy. The report will document progress on the goals and objectives, costs and benefits of policy initiatives and updated strategic planning. POLICY REVIEW The Energy Policy will be reviewed and revised at five year intervals with the next review concluding in 2020. If necessary, more frequent reviews may be recommended by the Energy Board or City Council to adapt to significant goal changes or to align with other City plans. 1 Packet Pg. 161 Attachment: Exhibit A (3724 : Energy Policy-RES) Agenda Item 13 Item # 13 Page 1 AGENDA ITEM SUMMARY November 3, 2015 City Council STAFF Mike Beckstead, Chief Financial Officer Jason Licon, Airport Director SUBJECT Resolution 2015-095 Approving the Bylaws of the Northern Colorado Regional Airport Commission. EXECUTIVE SUMMARY The purpose of this item is to adopt the bylaws governing the responsibilities and duties of the Northern Colorado Regional Airport Commission. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION On January 22, 2015 the City of Loveland and the City of Fort Collins approved an Amended and Restated Intergovernmental Agreement (IGA) for the Joint Operation of the Fort Collins-Loveland Airport. Under section 3 of the agreement the Northern Colorado Regional Airport Commission shall adopt Bylaws governing the responsibilities and duties of the Commission consistent with the terms and conditions of this Agreement. The Bylaws and any amendments thereto shall be approved by the City Councils before going into effect. On October 15, 2015, the Northern Colorado Regional Airport Commissioners adopted the bylaws at a regularly scheduled meeting and public hearing, pursuant to the 2015 IGA. The Bylaws are now subject to approval by the Fort Collins and Loveland City Councils. 13 Packet Pg. 162 RESOLUTION 2015-095 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING THE BYLAWS OF THE NORTHERN COLORADO REGIONAL AIRPORT COMMISSION WHEREAS, the City of Fort Collins (“Fort Collins”) and the City of Loveland (“Loveland”) jointly own, operate and maintain a regional general aviation facility known as the Fort Collins-Loveland Municipal Airport (the “Airport”); and WHEREAS, Fort Collins and Loveland entered into to that certain Amended and Restated Intergovernmental Agreement for the Joint Operation of the Fort Collins-Loveland Municipal Airport dated January 22, 2015 (the “2015 IGA”), to effectuate changes to the governance structure of the Airport to be in the nature of a “commission” that pursues the development of the Fort Collins-Loveland Airport as a regional airport in Northern Colorado and named that commission the “Northern Colorado Regional Airport Commission” (the “Commission”); and WHEREAS, the Fort Collins City Council approved the 2015 IGA by adoption of Resolution 2015-003 on January 6, 2015; and WHEREAS, the 2015 IGA requires that the Commission adopt bylaws governing the responsibilities of the Commission consistent with the terms of the 2015 IGA and that such bylaws be approved by the Loveland City Council and Fort Collins City Council (jointly, the “Councils”) before going into effect; and WHEREAS, on October 15, 2015, the Commission members, at a duly noticed meeting and pursuant to the 2015 IGA, unanimously adopted the Northern Colorado Regional Airport Commission Bylaws attached hereto as Exhibit “A” and incorporated herein by reference (the “Commission Bylaws”), subject to approval by the Councils; and WHEREAS, the Fort Collins City Council finds that the Commission Bylaws are consistent with the terms of the 2015 IGA, provide for the orderly operation of the Commission, and are in the best interests of Fort Collins and the Commission. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the Commission Bylaws attached hereto as Exhibit “A” and incorporated herein by reference are hereby approved and shall become effective as of the date on which such Bylaws are approved by both the Fort Collins City Council and by the Loveland City Council. Packet Pg. 163 Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 3rd day of November, A.D. 2015. _________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 164 EXHIBIT A NORTHERN COLORADO REGIONAL AIRPORT COMMISSION BYLAWS Section 1. Commission. The Northern Colorado Regional Airport Commission (“Commission”) is an entity with powers specifically authorized by the Amended and Restated Intergovernmental Agreement for the Joint Operation of the Fort Collins–Loveland Airport (“Agreement”) dated January 22, 2015, between the City of Fort Collins and City of Loveland (jointly, the “Cities”). Section 2. Commission Body. a. Composition. The Airport Commission (“Commission”) shall be comprised of seven (7) members (“Commissioners”) selected in accordance with the provision of the Agreement. b. Powers. All powers, privileges and duties vested in, or imposed upon, the Commission by the Agreement shall be exercised and performed by and through the Commission. The Commission may delegate to officers, employees, and agents of the Commission any or all administrative and ministerial powers. c. Vacancies. Vacancies on the Commission shall be filled in the manner provided by the Agreement. A vacancy shall occur when a Commission Member is no longer eligible to serve on the Commission due to resignation, death, incapacity, removal by the appointing governing body or bodies, as applicable, or disqualification based upon the membership requirements set forth in the Agreement. Section 3. Office. a. Business Office. The principal business office of the Airport Commission shall be at 4900 Earhart Road, Loveland, Colorado, 80538, until otherwise designated by the Commission. b. Establishing Other Offices and Relocation. The Commission may, from time to time, designate, locate and relocate its business office and such other offices as are necessary to conduct the business of the Commission. Section 4. Meetings. a. Notice of Meetings. (i) Section 4.b. shall constitute formal notice of regular meetings to Commission Members and no other notice to Commission Members shall be required. (ii) Notice of any regular meeting shall be posted at least twenty-four (24) hours prior to the meeting at the officially designated location for public notice established by the Commission. (iii) Notice of a special meeting shall be posted least twenty-four (24) hours prior to the meeting at the principal business office of the Commission and at the officially designated location for public notice established by the Commission. b. Regular Meetings. The Commission shall adopt annually by resolution a schedule of regular meetings that sets the dates, time and location of such meetings for the following year. c. Open Meetings. All meetings of the Commission shall be open to the public pursuant to the Colorado Open Meetings Law, C.R.S. §24-6-402. d. Special Meetings. Special meetings of the Commission may be called by two (2) Commission Members and shall be preceded by twenty-four (24) hours written notice delivered by electronic mail to each Commission Member and a courtesy telephone call; provided that one of such Commission Member shall be a City of Fort Collins council member or employee and the other of such Commission members shall be a City of Loveland council member or employee. A Commission Member attending a special meeting shall be deemed to have received the required notice. e. Executive Sessions. Executive sessions may be held at regular or special meetings and shall be conducted according to the Colorado Open Meetings Law. f. Adjournment and Continuance of Meetings. When a regular or special meeting is continued to another time and place, notice need not be given if the time and place of such continued meeting are announced at the meeting at which the continuance is taken, except as required by law. Any business which could have been transacted at the original meeting may be transacted at the continued meeting. g. Emergency Meetings. Notwithstanding any other provisions in this Section 4, emergency meetings may be called by two (2) Commission Members in the event of an emergency that requires immediate action by the Commission in order to protect the public health, safety and welfare, and may be held without notice, if notice is not practicable; provided that one of such Commission Members shall be a City of Fort Collins council member or employee and the other of such Commission members shall be City of Loveland council member or employee. The Chair or Commission Members calling the meeting shall make reasonable efforts to give all other Commission Members notice of and an opportunity to participate in the emergency meeting by whatever means are reasonable to meet the circumstances of the emergency. Any Commission Member who signs a waiver of notice or attends the emergency meeting shall be deemed to have received the necessary notice. At such emergency meeting, any action within the power of the Commission that is necessary for the immediate protection of the public health, safety and welfare may be taken; provided, however, that any action at an emergency meeting shall be effective only until the first to occur of (a) the next regular meeting, or (b) the next special meeting at which the emergency issue is on the agenda. At such subsequent meeting, the Commission may ratify any emergency action taken. If any emergency action taken is not ratified, then it shall be deemed rescinded as of the date of such subsequent meeting. Section 5. Conduct of Business. a. No Formal Action by the Commission. No official action on any matter may be taken by the Commission unless a quorum of the Commission is present. b. Presence at Meetings. A Commission Member shall be considered present at a Commission meeting if such member attends in person, by telephone or by contemporaneous electronic media. c. Quorum. A quorum of the Commission shall be four (4) Commission Members, provided that one of such Commission Members shall be a City of Fort Collins council member or employee and the other of such Commission members shall be a City of Loveland council member or employee. d. Vote Requirements. Any action of the Commission shall require the affirmative vote of a majority of the Commission Members present and voting. Proxy voting shall not be permitted. e. Electronic Signatures. In the event the signature(s) of one or more of members of the Commission or appointed signatories are required to execute a written document, contract, note, bond, deed, and/or other official papers of the Commission, and the appropriate individual(s) is unable to be physically present to sign said documentation, such individual or individuals are authorized to execute the documentation electronically via facsimile or e-mail signature, unless said documentation provides otherwise. Any electronic signature so affixed to a document shall carry the full legal force and effect of any original, handwritten signature. Except as approved herein, this provision of the Bylaws shall not be interpreted as establishing Commission’s consent or authorization to bind the Commission to any transaction by the use of electronic records or electronic means. This provision is made pursuant to Article 71.3 of Title 24, C.R.S., also known as the Uniform Electronic Transactions Act. f. Motions and Resolutions. Any official action of the Commission necessary for the governance and management of the affairs of the Commission, for the execution of the powers vested in the Commission, and for carrying into effect the provisions of the Agreement, shall be taken by the passage of motions or resolutions. g. Minute Book. Within a reasonable time after passage, all resolutions, motions and minutes of the Commission meetings shall be attested by the Vice Chair and recorded in a visual text format that may be transmitted electronically and kept for that purpose. Minutes of regular or special meetings shall be available for public review as soon as practicable with appropriate cautionary language for draft meeting minutes until acceptance of such minutes by the Commission. h. Electronic Email. Each Commission Member shall have an electronic email address on file with the Airport Manager which email address is regularly accessed for the purposes of receiving notices, including notices of special meetings. Section 6. Officers and Personnel. a. Election of Officers. The officers of the Commission shall be a Chair and Vice- Chair, and such other officers and assistant officers as may be authorized by the Commission from time to time, to perform such duties as may be approved by the Commission. All officers shall be elected by a majority of the Commission Members present and voting. The Chair and Vice-Chair shall be members of the Commission. The Commission shall appoint a secretary, who need not be a member of the Commission. At the first meeting of the Commission, the Commission Members shall elect a Chair and Vice-Chair and appoint other officers who shall serve in their elected or appointed capacities, as applicable, for the remainder of the 2015 calendar year and for the full 2016 calendar year. Thereafter, officers shall be elected or appointed, as applicable, annually by the Commission Members at the Commission’s last regularly scheduled meeting of each calendar year to serve a one-calendar year term. Vacancies may be filled and new officers may be appointed at any meeting of the Commission. b. Chair. The Chair shall preside at all meetings and, except as otherwise delegated by the Commission, shall execute on behalf of the Commission any legal instruments approved by the Commission except contracts and agreements that may be signed by the Airport Manager as authorized by the Commission. The Chair shall execute all ministerial documents on behalf of the Commission. The Chair, subject to these Bylaws, shall decide all points of order or procedure unless otherwise directed by a majority of the Commission present. The Commission, by a majority vote of all Commission Members, shall adopt meeting procedures that assure an orderly and focused discussion and facilitate the input of all Commission Members. c. Vice-Chair. The Vice-Chair shall perform all of the Chair’s duties in the absence of the Chair. d. Additional Duties. The officers of the Commission shall perform such other duties and functions as may be required by the Commission from time to time, by the Bylaws or rules and regulations of Commission, by law, or by special exigencies which shall later be ratified by the Commission. Section 7. Fiscal Year. The fiscal year of the Commission shall commence on January 1 of each year and end on December 31. Section 8. Disclosure of Conflict of Interest. A Commission Member who has a personal interest in a matter before the Commission shall disqualify himself or herself from considering, discussing or voting on the matter. Being an elected official or employee of the City or the District shall not constitute a conflict of interest. Section 9. Modification of Bylaws. These Bylaws may be altered, amended or repealed at any regular or special meeting of the Commission, subject to the approval of the City Councils. Section 10. Consistency with the Agreement. These Bylaws shall be interpreted consistent with the provisions of the Agreement. In case of conflict, the terms of the Agreement shall control. Section 11. Severability. If any part or provision of these Bylaws is adjudged to be unenforceable or invalid, such judgment shall not affect, impair or invalidate the remaining provisions of these Bylaws, it being the Commission’s intention that the various provisions hereof are severable. Approved this _____ day of ___________, 2015. NORTHERN COLORADO REGIONAL AIRPORT COMMISSION By: _____________________________ Cecil Gutierrez Chair ATTEST: Secretary Agenda Item 14 Item # 14 Page 1 AGENDA ITEM SUMMARY November 3, 2015 City Council STAFF Kyle Lambrecht, Civil Engineer Dean Klingner, Engineer & Capital Project Manager SUBJECT Resolution 2015-096 Authorizing the Execution of an Intergovernmental Agreement Between the City and the Colorado Department of Transportation for Construction of the Mulberry Street Bridge Across the Poudre River. EXECUTIVE SUMMARY The purpose of this item is to authorize the Mayor to execute an Intergovernmental Agreement (IGA) with the Colorado Department of Transportation (CDOT). This action will provide a repayment mechanism for City improvements currently being constructed by CDOT as part of the State Highway 14 Bridge over the Poudre River between Riverside and Lemay Avenue Project. All repayment funds associated with the IGA have been previously appropriated. Funds for the City’s urban design improvements were appropriated through Council actions (Ordinance Nos. 112, 2012 and 153, 2014). Repayment funds associated with the City of Fort Collins Wastewater Facility frontage improvements will be paid from City of Fort Collins Wastewater Funds and Street Oversizing Funds. Total funding amounts are as follows: Mulberry Bridge Urban Design Improvements Funds - $647,000 City of Fort Collins General Transportation Funds - $75,000 City of Fort Collins Wastewater Funds - $318,000 Street Oversizing Funds - $70,000 Total Amount to be Repaid - $1,110,000 STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION The section of Mulberry Street from the eastern city limits to Riverside Avenue is a major thoroughfare for both the City of Fort Collins and the Colorado Department of Transportation (CDOT). The corridor serves dual purposes; serving as one of three eastern gateways into the City as well as providing regional connections for truck and passenger traffic. In 2009, CDOT initiated a project to reconstruct the existing Mulberry Bridge spanning the Poudre River. The goals for the project included additional travel lanes, multimodal facilities, and lengthening/raising the bridge to better protect it from flooding. In addition, roadway and multimodal improvements were included along Mulberry Street from Lemay Avenue to Riverside Avenue. Minimal urban design features were identified as part of the original CDOT plans. 14 Packet Pg. 170 Agenda Item 14 Item # 14 Page 2 The City recognized an opportunity to enhance the new bridge and Mulberry Street within the project limits through the addition of urban design treatments and irrigated landscape improvements. City staff began coordinating with CDOT staff to include City desired urban design improvements. Additional urban design and landscaping improvements are funded by the City of Fort Collins. CDOT and City staff decided to design and construct the urban design and landscaping improvements in phases. Phase I includes the design and construction of improvements integral to the bridge. The City managed the design of the improvements while the construction was managed by CDOT but funded by the City of Fort Collins. Funding responsibilities for Phase I are documented as part of the proposed Intergovernmental Agreement between the City of Fort Collins and CDOT included with this item. Phase II will design and install additional landscaping improvements and is funded and managed by the City. These improvements will be constructed as part of a secondary project expected to begin spring of 2016. The urban design, sidewalk and landscaping improvements are funded through a combination of sources, including previously appropriated funds associated with the 2013/2014 City budget, Keeping Fort Collins Great (KFCG) funds, development obligation funds collected as part of the City of Fort Collins Wastewater Facility development, and Street Oversizing Funds. CDOT initiated the construction of bridge, roadway, and Phase I urban design improvements in the fall of 2014. Based on a reimbursement commitment from the City, CDOT included additional state funds in the project budget to finance the Phase I urban design improvements with an understanding that the City would reimburse the state at a later date. To date, no reimbursement funds have been exchanged between the City and CDOT. The IGA between CDOT and the City is the mechanism for this reimbursement. CITY FINANCIAL IMPACTS The City of Fort Collins will reimburse CDOT for the construction of urban design improvements constructed as part of the state’s Mulberry Bridge Replacement Project. The following is a summary of the funding reimbursement: Reimbursement Funds Mulberry Bridge Urban Design Improvements $647,000 General Transportation Funds $75,000 Street Frontage Obligation - Fort Collins Treatment Facility $318,000 Street Oversizing Funds $70,000 Total Reimbursement Funds to CDOT $1,110,000 The project will provide short and long term benefits through the construction of multimodal improvements, an additional westbound travel lane, urban design features, and other improvements. PUBLIC OUTREACH The City and CDOT have been coordinating on public outreach throughout the project. The team conducted a joint public open house prior to the beginning of construction, met individually with impacted business owners, conducted stakeholder meetings, project press releases, and provided project updates to CDOT project website: <https://www.codot.gov/projects/SH14PoudreRiver> This outreach will continue throughout the project. ATTACHMENTS 1. Location Map (PDF) 14 Packet Pg. 171 S LemayAve Riverside Ave SH 14 / E Mulberry St E Myrtle St Endicott St Cowan St Colorado St Hoffman Mill Rd E Magnolia St Lesser Dr W oodward Way State Highway 14 Bridge over the Poudre River Project Location Map 0 100 200 400 600 800 Feet ³ 1:4,000 Legend Project Location SH14 Bridge Poudre River 14.1 Packet Pg. 172 Attachment: Location Map (3705 : State Highway 14 Bridge IGA) RESOLUTION 2015-096 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE EXECUTION OF AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY AND THE COLORADO DEPARTMENT OF TRANSPORTATION FOR CONSTRUCTION OF THE MULBERRY STREET BRIDGE ACROSS THE POUDRE RIVER WHEREAS, in the fall of 2014, the Colorado Department of Transportation (“CDOT”) began the construction of the bridge, roadway, and urban design improvements crossing the Poudre River (collectively the “Project”) and located on Mulberry Street, also known as State Highway 14, between Riverside Avenue and Lemay Avenue; and WHEREAS, prior to the commencement of construction by CDOT, the City and CDOT agreed to certain urban design, landscaping, and pedestrian facility enhancements (collectively the “Enhancements”) to the Project to be paid for by the City; and WHEREAS, the Project is nearing completion; and WHEREAS, to memorialize the agreed upon terms and formalize the reimbursement of CDOT by the City for the costs of the Enhancements, an Intergovernmental Agreement (“IGA”) between the City and CDOT is attached hereto and incorporated herein as Exhibit “A”; and WHEREAS, the total construction cost of the bridge is approximately $9.6 million dollars; and WHEREAS, pursuant to the IGA, the City will be required to reimburse CDOT in an amount not to exceed $1,110,000.00 for the Enhancements to the Project; and WHEREAS, reimbursement will be made from the following City funding sources: Mulberry Bridge Urban Design Improvements $647,000.00 General Transportation Funds $ 75,000.00 Street Frontage Obligation – Fort Collins Treatment Facility $318,000.00 Street Oversizing Funds $ 70,000.00; and WHEREAS, appropriations for the above amounts from the respective funds were made by the City Council prior to the commencement of CDOT construction activities related to the Project; and WHEREAS, Article II, Section 16 of the City Charter empowers the City Council, by ordinance or resolution, to enter into contracts with governmental bodies to furnish governmental services and make charges for such services, or enter into cooperative or joint activities with other governmental bodies; and WHEREAS, Section 29-1-203 of the Colorado Revised Statutes provides that governments may cooperate or contract with one another to provide certain services or facilities Packet Pg. 173 when such cooperation or contracts are authorized by each party thereto with the approval of its legislative body or other authority having the power to so approve; and WHEREAS, the City Council has determined that it is in the best interests of the City that the Enhancements to the Project be constructed and CDOT be properly reimbursed and that the Mayor be authorized to execute the IGA between the City and CDOT in support thereof. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the City Council hereby authorizes the Mayor to execute the IGA between the City and CDOT, substantially in the form attached hereto as Exhibit “A,” together will such modifications and additions as the City Manager, in consultation with the City Attorney, determines necessary and appropriate to protect the interests of the City or further the purposes of this Resolution, as set forth above. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 3rd day of November, A.D. 2015. _________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 174 Page 1 of 11 (Local $CDOTWRK Rev 10/03 PROJECT SH 14 Poudre River, 18085 15-HA4-XC-00136 REGION 4/RH SAP PO# 331001397 CONTRACT THIS CONTRACT made _______________________________, by and between the State of Colorado for the use and benefit of the Colorado Department of Transportation, hereinafter referred to as the “State” and City of Fort Collins, PO Box 580, Fort Collins, Colorado, 80522, CDOT Vendor #2000023 hereinafter referred to as the “Contractor” or the “Local Agency”, the State and the Local Agency together shall be referred to as the “Parties.” RECITALS 1. Authority exists in the law and funds have been budgeted, appropriated and otherwise made available and a sufficient uncommitted balance thereof remains available for payment of project and Local Agency costs in Fund Number 400, Function 3200 GL Acct 4312700290 WBS Element or Cost Center 18085.20.10 (Contract Encumbrance Amount: $0.00). 2. Required approval, clearance and coordination have been accomplished from and with appropriate agencies. 3. Pursuant to 43-2-102 and 43-2-103 C.R.S. as amended, the State may contract with Local Agencies to provide maintenance and construction of highways that are part of the state (or local agency) highway system. 4. Local Agency anticipates a project for SH 14 Bridge over Poudre River between Riverside and Lemay Avenue in Fort Collins and by the date of execution of this contract, the Local Agency and/or the State has completed and submitted a preliminary version of CDOT form #463 describing the general nature of the project work. 5. The Local Agency has made funds available for project SH-14 Poudre River Bridge (18085), which shall consist of SH 14 Bridge over Poudre River between Riverside and Lemay Avenue in Fort Collins, referred to as the “Project” or the “Work.” Such Work will be performed in Fort Collins, Colorado, specifically described in Exhibit A. 6. The Local Agency has funds available and desires to provide 100% of the funding for the enhancement portion of the Work. 7. The Local Agency has estimated the total cost of the Work and is prepared to provide the funding required for the work, as evidenced by an appropriate ordinance or resolution duly passed and adopted by the authorized representatives of the Local Agency, which expressly authorizes the Local Agency to enter into this contract and to expend its funds for the work under the project. A copy of this ordinance or resolution is attached hereto and incorporated herein as Exhibit B. EXHIBIT A 1 Packet Pg. 175 Attachment: Exhibit A (3739 : State Highway 14 Bridge IGA RESO) Page 2 of 11 8. This contract is executed under the authority of §§ 29-1-203, 43-1-110; 43-1-116, 43-2-101(4)(c) and 43-2-144, C.R.S. and Exhibit B. 9. The parties hereto desire to agree upon the division of responsibilities with regard to the project. THE PARTIES NOW AGREE THAT: Section 1. Scope of Work The Project or the Work under this contract shall consist of SH 14 Bridge over Poudre River between Riverside and Lemay Avenue in Fort Collins, in Fort Collins, Colorado, as more specifically described in Exhibit A. Section 2. Order of Precedence In the event of conflicts or inconsistencies between this contract and its exhibits, such conflicts or inconsistencies shall be resolved by reference to the documents in the following order of priority: 1. This contract 2. Exhibit A (Scope of Work) 3. Other Exhibits in descending order of their attachment. Section 3. Term This contract shall be effective upon approval of the Chief Engineer or designee, or on the date made, whichever is later. The term of this contract shall continue through the completion and final acceptance of the Project by the State, FHWA and the Local Agency. Section 4. Project Funding Provisions A. The Local Agency has estimated the total cost of the work and is prepared to provide the funding for the work, as evidenced by an appropriate ordinance or resolution duly passed and adopted by the authorized representatives of the Local Agency, which expressly authorizes the Local Agency to enter into this contract and to expend its funds for the project. A copy of this ordinance or resolution is attached hereto and incorporated herein as Exhibit B. B. The Local Agency has estimated the total cost of the Work to be $1,110,000.00, which is to be funded as follows: a. Local Agency Funds $1,110,000.00 b. State Funds $0.0 Total Funds: $1,110,000.00 1 Packet Pg. 176 Attachment: Exhibit A (3739 : State Highway 14 Bridge IGA RESO) Page 3 of 11 C. The maximum amount payable by the Local Agency under this contract shall be $1,110,000.00, unless such amount is increased by an appropriate written modification to this contract executed before any increased cost is incurred. D. The parties hereto agree that this contract is contingent upon all funds designated for the project herein being made available from local sources, as applicable. Should these sources fail to provide necessary funds as agreed upon herein, the contract may be terminated by either party, provided that any party terminating its interest and obligations herein shall not be relieved of any obligations which existed prior to the effective date of such termination or which may occur as a result of such termination. Section 5. Project Payment Provisions A. The State shall submit invoices to the City as a lump sum cost. Invoices shall be in proportion to the work completed. The $1,110,000 is a not to exceed value. B. If the Local Agency is to be billed for CDOT incurred costs, the billing procedure shall be as follows: 1. Upon receipt of each bill from the State, the Local Agency will remit to the State the amount billed no later than 60 days after receipt of each bill. Should the Local Agency fail to pay moneys due the State within 60 days of demand or within such other period as may be agreed between the parties hereto, the Local Agency agrees that, at the request of the State, the State Treasurer may withhold an equal amount from future apportionment due the Local Agency from the Highway Users Tax Fund and to pay such funds directly to the State. Interim funds, until the State is reimbursed, shall be payable from the State Highway Supplementary Fund (400). 2. If the Local Agency fails to make timely payment to the State as required by this section (within 60 days after the date of each bill), the Local Agency shall pay interest to the State at a rate of one percent per month on the amount of the payment which was not made in a timely manner, until the billing is paid in full. The interest shall accrue for the period from the required payment date to the date on which payment is made. C. The State will prepare and submit to the Local Agency, no more than monthly, charges for costs incurred relative to the project. The State’s invoices shall include a description of the amounts of services performed, the dates of performance and the amounts and description of reimbursable expenses. The invoices will be prepared in accordance with the State’s standard policies, procedures and standardized billing format. Section 6. State and Local Agency Commitments The Local Agency Contract Administration Checklist in Exhibit C describes the Work to be performed and assigns responsibility of that Work to either the Local Agency or the State. The “Responsible Party” referred to in this contract means the Responsible Party as identified in the 1 Packet Pg. 177 Attachment: Exhibit A (3739 : State Highway 14 Bridge IGA RESO) Page 4 of 11 Local Agency Contract Administration Checklist in Exhibit C. A. Construction [if applicable] 1. If the Work includes construction, the responsible party shall perform the construction in accordance with the approved design plans and/or administer the construction all in accord with the Local Agency Contract Administration Checklist. Such administration shall include project inspection and testing; approving sources of materials; performing required plant and shop inspections; documentation of contract payments, testing and inspection activities; preparing and approving pay estimates; preparing, approving and securing the funding for contract modification orders and minor contract revisions; processing contractor claims; construction supervision; and meeting the Quality Control requirements of the FHWA/CDOT Stewardship Agreement, as described in the Local Agency Contract Administration Checklist. 2. If the State is the responsible party: a. it shall appoint a qualified professional engineer, licensed in the State of Colorado, as the State Agency Project Engineer (SAPE), to perform that administration. The SAPE shall administer the project in accordance with this contract, the requirements of the construction contract and applicable State procedures. b. if bids are to be let for the construction of the project, the State shall, in conjunction with the Local Agency, advertise the call for bids and upon concurrence by the Local Agency will award the construction contract(s) to the low responsive, responsible bidder(s). (1) in advertising and awarding the bid for the construction of a federal- aid project, the State shall comply with applicable requirements of 23 USC § 112 and 23 CFR Parts 633 and 635 and C.R.S. § 24-92-101 et seq. Those requirements include, without limitation, that the State/contractor shall incorporate Form 1273 in its entirety verbatim into any subcontract(s) for those services as terms and conditions therefore, as required by 23 CFR 633.102(e). (2) the Local Agency has the option to concur or not concur in the proposal of the apparent low bidder for work on which competitive bids have been received. The Local Agency must declare its concurrence or non-concurrence within 3 working days after said bids are publicly opened. (3) by indicating its concurrence in such award, the Local Agency, acting by or through its duly authorized representatives, agrees to provide additional funds, subject to their availability and appropriation for that purpose, if required to complete the Work under this project if no additional federal-aid funds will be made available for the project. 1 Packet Pg. 178 Attachment: Exhibit A (3739 : State Highway 14 Bridge IGA RESO) Page 5 of 11 c. If all or part of the construction work is to be accomplished by State personnel (i.e. by force account), rather than by a competitive bidding process, the State will ensure that all such force account work is accomplished in accordance with the pertinent State specifications and requirements with 23 CFR 635, Subpart B, Force Account Construction. Section 7. Utilities If necessary, the Responsible Party will be responsible for obtaining the proper clearance or approval from any utility company, which may become involved in this Project. Prior to this Project being advertised for bids, the Responsible Party will certify in writing that all such clearances have been obtained. Section 8. Railroads In the event the Project involves modification of a railroad company’s facilities whereby the Work is to be accomplished by railroad company forces, the Responsible Party shall make timely application to the Public Utilities Commission requesting its order providing for the installation of the proposed improvements and not proceed with that part of the Work without compliance. The Responsible Party shall also establish contact with the railroad company involved for the purpose of complying with applicable provisions of 23 CFR 646, subpart B, concerning federal-aid projects involving railroad facilities, including: 1. Executing an agreement setting out what work is to be accomplished and the location(s) thereof, and that the costs of the improvement shall be eligible for federal participation. 2. Obtaining the railroad’s detailed estimate of the cost of the Work. 3. Establishing future maintenance responsibilities for the proposed installation. 4. Proscribing future use or dispositions of the proposed improvements in the event of abandonment or elimination of a grade crossing. 5. Establishing future repair and/or replacement responsibilities in the event of accidental destruction or damage to the installation. Section 9. Environmental Obligations The State shall perform all Work in accordance with the requirements of the current federal and state environmental regulations including the National Environmental Policy Act of 1969 (NEPA) as applicable. 1 Packet Pg. 179 Attachment: Exhibit A (3739 : State Highway 14 Bridge IGA RESO) Page 6 of 11 Section 10. Maintenance Obligations The Local Agency maintenance responsibilities include maintenance of urban design features and landscaping items further including the following: - Decorative bridge columns - Decorative pedestrian railings - Aesthetic treatments to bridge foundations - Precast panel walls - Structural concrete stain on bridge, medians, and precast panel walls - Electrical components associated with bridge lighting - Drystack masonry wall - Bridge median irrigation components - Median subsurface drainage system In the event that the improvements to be maintained by the Local Agency are not maintained in an appropriate manner, CDOT reserves the right to notify the Local Agency, and if such maintenance remains deficient for a period of thirty (30) days after such written notice, CDOT shall perform maintenance deemed necessary and the Local Agency will reimburse CDOT for the cost of such maintenance action. See Exhibit A for graphic depiction of landscape areas and enhanced aesthetic areas with designation of responsibility. Section 11. Record Keeping The State shall maintain a complete file of all records, documents, communications, and other written materials, which pertain to the costs incurred under this contract. The State shall maintain such records for a period of three (3) years after the date of termination of this contract or final payment hereunder, whichever is later, or for such further period as may be necessary to resolve any matters which may be pending. The State shall make such materials available for inspection at all reasonable times and shall permit duly authorized agents and employees of the Local Agency and FHWA to inspect the project and to inspect, review and audit the project records. Section 12. Termination Provisions This contract may be terminated as follows: A. Termination for Convenience. The State may terminate this contract at any time the State determines that the purposes of the distribution of moneys under the contract would no longer be served by completion of the project. The State shall effect such termination by giving written notice of termination to the Local Agency and specifying the effective date thereof, at least twenty (20) days before the effective date of such termination. B. Termination for Cause. If, through any cause, the Local Agency shall fail to fulfill, in a timely 1 Packet Pg. 180 Attachment: Exhibit A (3739 : State Highway 14 Bridge IGA RESO) Page 7 of 11 and proper manner, its obligations under this contract, or if the Local Agency shall violate any of the covenants, agreements, or stipulations of this contract, the State shall thereupon have the right to terminate this contract for cause by giving written notice to the Local Agency of its intent to terminate and at least ten (10) days opportunity to cure the default or show cause why termination is otherwise not appropriate. In the event of termination, all finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs and reports or other material prepared by the Local Agency under this contract shall, at the option of the State, become its property, and the Local Agency shall be entitled to receive just and equitable compensation for any services and supplies delivered and accepted. The Local Agency shall be obligated to return any payments advanced under the provisions of this contract. Notwithstanding the above, the Local Agency shall not be relieved of liability to the State for any damages sustained by the State by virtue of any breach of the contract by the Local Agency, and the State may withhold payment to the Local Agency for the purposes of mitigating its damages until such time as the exact amount of damages due to the State from the Local Agency is determined. If after such termination it is determined, for any reason, that the Local Agency was not in default or that the Local Agency’s action/inaction was excusable, such termination shall be treated as a termination for convenience, and the rights and obligations of the parties shall be the same as if the contract had been terminated for convenience, as described herein. Section 14. Legal Authority The Local Agency warrants that it possesses the legal authority to enter into this contract and that it has taken all actions required by its procedures, by-laws, and/or applicable law to exercise that authority, and to lawfully authorize its undersigned signatory to execute this contract and to bind the Local Agency to its terms. The person(s) executing this contract on behalf of the Local Agency warrants that such person(s) has full authorization to execute this contract. Section 15. Representatives and Notice The State will provide liaison with the Local Agency through the State's Region Director, Region 4, 1420 E. 2nd Street, Greeley, CO 80631 Said Region Director will also be responsible for coordinating the State's activities under this contract and will also issue a "Notice to Proceed" to the Local Agency for commencement of the Work. All communications relating to the day-to-day activities for the work shall be exchanged between representatives of the State’s Transportation Region 4 and the Local Agency. All communication, notices, and correspondence shall be addressed to the individuals identified below. Either party may from time to time designate in writing new or substitute representatives. If to the State: If to the Local Agency: Richard Christy Region 4 2207 E. Highway 402 Loveland, CO 80537 Kyle Lambrecht City of Fort Collins PO BOX 580 Fort Collins, Colorado 1 Packet Pg. 181 Attachment: Exhibit A (3739 : State Highway 14 Bridge IGA RESO) Page 8 of 11 970-622-1200 Section 16. Successors Except as herein otherwise provided, this contract shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns. Section 17. Third Party Beneficiaries It is expressly understood and agreed that the enforcement of the terms and conditions of this contract and all rights of action relating to such enforcement, shall be strictly reserved to the State and the Local Agency. Nothing contained in this contract shall give or allow any claim or right of action whatsoever by any other third person. It is the express intention of the State and the Local Agency that any such person or entity, other than the State or the Local Agency receiving services or benefits under this contract shall be deemed an incidental beneficiary only. Section 18. Governmental Immunity Notwithstanding any other provision of this contract to the contrary, no term or condition of this contract shall be construed or interpreted as a waiver, express or implied, of any of the immunities, rights, benefits, protection, or other provisions of the Colorado Governmental Immunity Act, § 24-10-101, et seq., C.R.S., as now or hereafter amended. The parties understand and agree that liability for claims for injuries to persons or property arising out of negligence of the State of Colorado, its departments, institutions, agencies, boards, officials and employees is controlled and limited by the provisions of § 24-10-101, et seq., C.R.S., as now or hereafter amended and the risk management statutes, §§ 24-30-1501, et seq., C.R.S., as now or hereafter amended. Section 19. Severability To the extent that this contract may be executed and performance of the obligations of the parties may be accomplished within the intent of the contract, the terms of this contract are severable, and should any term or provision hereof be declared invalid or become inoperative for any reason, such invalidity or failure shall not affect the validity of any other term or provision hereof. Section 20. Waiver The waiver of any breach of a term, provision, or requirement of this contract shall not be construed or deemed as a waiver of any subsequent breach of such term, provision, or requirement, or of any other term, provision or requirement. Section 21. Entire Understanding This contract is intended as the complete integration of all understandings between the parties. No prior or contemporaneous addition, deletion, or other amendment hereto shall have any force or effect whatsoever, unless embodied herein by writing. No subsequent novation, renewal, 1 Packet Pg. 182 Attachment: Exhibit A (3739 : State Highway 14 Bridge IGA RESO) Page 9 of 11 addition, deletion, or other amendment hereto shall have any force or effect unless embodied in a writing executed and approved pursuant to the State Fiscal Rules. Section 22. Survival of Contract Terms Notwithstanding anything herein to the contrary, the parties understand and agree that all terms and conditions of this contract and the exhibits and attachments hereto which may require continued performance, compliance or effect beyond the termination date of the contract shall survive such termination date and shall be enforceable by the State as provided herein in the event of such failure to perform or comply by the Local Agency. Section 23. Modification and Amendment This contract is subject to such modifications as may be required by changes in federal or State law, or their implementing regulations. Any such required modification shall automatically be incorporated into and be part of this contract on the effective date of such change as if fully set forth herein. Except as provided above, no modification of this contract shall be effective unless agreed to in writing by both parties in an amendment to this contract that is properly executed and approved in accordance with applicable law. Section 24. Disputes Except as otherwise provided in this contract, any dispute concerning a question of fact arising under this contract which is not disposed of by agreement will be decided by the Chief Engineer of the Department of Transportation. The decision of the Chief Engineer will be final and conclusive unless, within 30 calendar days after the date of receipt of a copy of such written decision, the Local Agency mails or otherwise furnishes to the State a written appeal addressed to the Executive Director of the Department of Transportation. In connection with any appeal proceeding under this clause, the Local Agency shall be afforded an opportunity to be heard and to offer evidence in support of its appeal. Pending final decision of a dispute hereunder, the Local Agency shall proceed diligently with the performance of the contract in accordance with the Chief Engineer’s decision. The decision of the Executive Director or his duly authorized representative for the determination of such appeals will be final and conclusive and serve as final agency action. This dispute clause does not preclude consideration of questions of law in connection with decisions provided for herein. Nothing in this contract, however, shall be construed as making final the decision of any administrative official, representative, or board on a question of law. 1 Packet Pg. 183 Attachment: Exhibit A (3739 : State Highway 14 Bridge IGA RESO) Page 10 of 11 THE PARTIES HERETO HAVE EXECUTED THIS CONTRACT Local Agency: STATE OF COLORADO: JOHN W. HICKENLOOPER GOVERNOR By______________________________ City of Fort Collins Joshua Laipply, P.E., Chief Engineer For Shailen Bhatt, Executive Director Department of Transportation CDOT Vendor Number:2000023 ________________________________ Signature of Authorized Officer _________________________________ Print Name & Title of Authorized Officer CORPORATIONS: (A corporate seal or attestation is required.) Attest (Seal) By______________________________________________________ (Corporate Secretary or Equivalent, or Town/City/County Clerk) 1 Packet Pg. 184 Attachment: Exhibit A (3739 : State Highway 14 Bridge IGA RESO) Exhibit A SCOPE OF WORK The Colorado Department of Transportation is replacing a structurally deficient bridge on State Highway 14 (Mulberry Street) over the Poudre River in Fort Collins as part of the Colorado Bridge Enterprise (CBE). The existing bridge, originally built in 1949, will be replaced with a wider bridge to meet current standards, accommodate bicycle lanes and provide sidewalks for pedestrians. The project began construction in September of 2014 and has a scheduled completion date expected in late 2015. The total cost of the construction phase is approximately $9.6 million with funds in part coming from the Colorado Bridge Enterprise (CBE). In partnership with CDOT, the City of Fort Collins has committed funding for the project in order to make contributions for urban design, landscaping and pedestrian facility enhancements. CDOT and the City of Fort Collins have determined that the total costs of the City’s contributions to the project will be an amount not to exceed $1,110,000.00 unless such amount is increase by an appropriate written modification to the contract. 1 Packet Pg. 185 Attachment: Exhibit A (3739 : State Highway 14 Bridge IGA RESO) Exhibit B LOCAL AGENCY ORDINANCE or RESOLUTION 1 Packet Pg. 186 Attachment: Exhibit A (3739 : State Highway 14 Bridge IGA RESO) Exhibit C LOCAL AGENCY CONTRACT ADMINISTRATION CHECKLIST FORM 1243 1 Packet Pg. 187 Attachment: Exhibit A (3739 : State Highway 14 Bridge IGA RESO) Exhibit C CDOT Form 1243 01/13 Page 1 of 4 Previous editions are obsolete and may not be used COLORADO DEPARTMENT OF TRANSPORTATION LOCAL AGENCY CONTRACT ADMINISTRATION CHECKLIST Project No. FBR 0142-055 STIP No. SR46598 / SST8000 / SST8103 Project Code 18085 Region 4 Project Location SH 14 Bridge Over Poudre River Between Riverside and Lemay Avenue in Fort Collins Date 6/15/2015 Project Description SH 14 Poudre Bridge in Ft. Collins Local Agency City of Fort Collins Local Agency Project Manager Kyle Lambrecht CDOT Resident Engineer Scott Ellis CDOT Project Manager Richard Christy INSTRUCTIONS: This checklist shall be utilized to establish the contract administration responsibilities of the individual parties to this agreement. The checklist becomes an attachment to the Local Agency agreement. Section numbers correspond to the applicable chapters of the CDOT Local Agency Manual. The checklist shall be prepared by placing an "X" under the responsible party, opposite each of the tasks. The “X” denotes the party responsible for initiating and executing the task. Only one responsible party should be selected. When neither CDOT nor the Local Agency is responsible for a task, not applicable (NA) shall be noted. In addition, a “#” will denote that CDOT must concur or approve. Tasks that will be performed by Headquarters staff will be indicated. The Regions, in accordance with established policies and procedures, will determine who will perform all other tasks that are the responsibility of CDOT. The checklist shall be prepared by the CDOT Resident Engineer or the CDOT Project Manager, in cooperation with the Local Agency Project Manager, and submitted to the Region Program Engineer. If contract administration responsibilities change, the CDOT Resident Engineer, in cooperation with the Local Agency Project Manager, will prepare and distribute a revised checklist. NO. DESCRIPTION OF TASK RESPONSIBLE PARTY LA CDOT TIP / STIP AND LONG-RANGE PLANS 2.1 Review Project to ensure it is consistent with STIP and amendments thereto X FEDERAL FUNDING OBLIGATION AND AUTHORIZATION 4.1 Authorize funding by phases (CDOT Form 418 - Federal-aid Program Data. Requires FHWA concurrence/involvement) X PROJECT DEVELOPMENT 5.1 Prepare Design Data - CDOT Form 463 X 5.2 Prepare Local Agency/CDOT Inter-Governmental Agreement (see also Chapter 3) X 5.3 Conduct Consultant Selection/Execute Consultant Agreement X 5.4 Conduct Design Scoping Review Meeting X 5.5 Conduct Public Involvement X 5.6 Conduct Field Inspection Review (FIR) X 5.7 Conduct Environmental Processes (may require FHWA concurrence/involvement) X CDOT Form 1243 01/13 Page 2 of 4 Previous editions are obsolete and may not be used NO. DESCRIPTION OF TASK RESPONSIBLE PARTY LA CDOT vharvell@hsd2.org PROJECT DEVELOPMENT CIVIL RIGHTS AND LABOR COMPLIANCE 6.1 Set Underutilized Disadvantaged Business Enterprise (UBDE) Goals for Consultant and Construction Contracts (CDOT Region EEO/Civil Rights Specialist) X 6.2 Determine Applicability of Davis-Bacon Act This project is is not exempt from Davis-Bacon requirements as determined by the functional classification of the project location (Projects located on local roads and rural minor collectors may be exempt.) Scott Ellis 6/15/2015 CDOT Resident Engineer (Signature on File) Date X 6.3 Set On-the-Job Training Goals. Goal is zero if total construction is less than $1 million (CDOT Region EEO/Civil Rights Specialist) X 6.4 Title VI Assurances X Ensure the correct Federal Wage Decision, all required Disadvantaged Business Enterprise/On-the-Job Training special provisions and FHWA Form 1273 are included in the Contract (CDOT Resident Engineer) X ADVERTISE, BID AND AWARD 7.1 Obtain Approval for Advertisement Period of Less Than Three Weeks X 7.2 Advertise for Bids X 7.3 Distribute “Advertisement Set” of Plans and Specifications X 7.4 Review Worksite and Plan Details with Prospective Bidders While Project Is Under Advertisement X 7.5 Open Bids X 7.6 Process Bids for Compliance X Check CDOT Form 715 - Certificate of Proposed Underutilized DBE Participation when the low bidder meets UDBE goals X Evaluate CDOT Form 718 - Underutilized DBE Good Faith Effort Documentation and determine if the Contractor has made a good faith effort when the low bidder does not meet DBE goals X Submit required documentation for CDOT award concurrence X 7.7 Concurrence from CDOT to Award X 7.8 Approve Rejection of Low Bidder X 7.9 Award Contract X 7.10 Provide “Award” and “Record” Sets of Plans and Specifications X CONSTRUCTION MANAGEMENT 8.1 Issue Notice to Proceed to the Contractor X 8.2 Project Safety X 8.3 Conduct Conferences: Pre-Construction Conference (Appendix B) X Pre-survey x Construction staking x Monumentation X X Partnering (Optional) X CDOT Form 1243 01/13 Page 3 of 4 Previous editions are obsolete and may not be used NO. DESCRIPTION OF TASK RESPONSIBLE PARTY LA CDOT Provide competent, experienced staff who will ensure the Contract work is constructed in accordance with the plans and specifications X Construction inspection and documentation X 8.6 Approve Shop Drawings X 8.7 Perform Traffic Control Inspections X 8.8 Perform Construction Surveying X 8.9 Monument Right-of-Way X 8.10 Prepare and Approve Interim and Final Contractor Pay Estimates Provide the name and phone number of the person authorized for this task. Richard Christy 970-622-1280 CDOT Representative Phone number X 8.11 Prepare and Approve Interim and Final Utility and Railroad Billings X 8.12 Prepare Local Agency Reimbursement Requests N/A 8.13 Prepare and Authorize Change Orders X 8.14 Approve All Change Orders X 8.15 Monitor Project Financial Status X 8.16 Prepare and Submit Monthly Progress Reports X 8.17 Resolve Contractor Claims and Disputes X 8.18 Conduct Routine and Random Project Reviews Provide the name and phone number of the person responsible for this task. Scott Ellis 970-622-1267 CDOT Resident Engineer Phone number X MATERIALS 9.1 Conduct Materials Pre-Construction Meeting X 9.2 Complete CDOT Form 250 - Materials Documentation Record x Generate form, which includes determining the minimum number of required tests and applicable material submittals for all materials placed on the project x Update the form as work progresses x Complete and distribute form after work is completed X X X 9.3 Perform Project Acceptance Samples and Tests X 9.4 Perform Laboratory Verification Tests X 9.5 Accept Manufactured Products Inspection of structural components: x Fabrication of structural steel and pre-stressed concrete structural components x Bridge modular expansion devices (0” to 6” or greater) x Fabrication of bearing devices X X X X 9.6 Approve Sources of Materials X 9.7 Independent Assurance Testing (IAT), Local Agency Procedures CDOT Procedures x Generate IAT schedule x Schedule and provide notification x Conduct IAT X X CDOT Form 1243 01/13 Page 4 of 4 Previous editions are obsolete and may not be used CONSTRUCTION CIVIL RIGHTS AND LABOR COMPLIANCE 10.1 Fulfill Project Bulletin Board and Pre-Construction Packet Requirements X 10.2 Process CDOT Form 205 - Sublet Permit Application Review and sign completed CDOT Form 205 for each subcontractor, and submit to EEO/Civil Rights Specialist X 10.3 Conduct Equal Employment Opportunity and Labor Compliance Verification Employee Interviews. Complete CDOT Form 280 X 10.4 Monitor Disadvantaged Business Enterprise Participation to Ensure Compliance with the “Commercially Useful Function” Requirements X 10.5 Conduct Interviews When Project Utilizes On-the-Job Trainees. Complete CDOT Form 200 - OJT Training Questionnaire X 10.6 Check Certified Payrolls (Contact the Region EEO/Civil Rights Specialists for training requirements.) X 10.7 Submit FHWA Form 1391 - Highway Construction Contractor’s Annual EEO Report X FINALS 11.1 Conduct Final Project Inspection. Complete and submit CDOT Form 1212 - Final Acceptance Report (Resident Engineer with mandatory Local Agency participation.) X 11.2 Write Final Project Acceptance Letter X 11.3 Advertise for Final Settlement X 11.4 Prepare and Distribute Final As-Constructed Plans X 11.5 Prepare EEO Certification X 11.6 Check Final Quantities, Plans, and Pay Estimate; Check Project Documentation; and submit Final Certifications X 11.7 Check Material Documentation and Accept Final Material Certification (See Chapter 9) X 11.8 Obtain CDOT Form 17 from the Contractor and Submit to the Resident Engineer X 11.9 Obtain FHWA Form 47 - Statement of Materials and Labor Used … from the Contractor X 11.10 Complete and Submit CDOT Form 1212 – Final Acceptance Report (by CDOT) X 11.11 Process Final Payment X 11.12 Complete and Submit CDOT Form 950 - Project Closure X 11.13 Retain Project Records for Six Years from Date of Project Closure X 11.14 Retain Final Version of Local Agency Contract Administration Checklist X cc: CDOT Resident Engineer/Project Manager CDOT Region Program Engineer CDOT Region EEO/Civil Rights Specialist CDOT Region Materials Engineer CDOT Contracts and Market Analysis Branch Local Agency Project Manager 1 Packet Pg. 191 Attachment: Exhibit A (3739 : State Highway 14 Bridge IGA RESO) Agenda Item 15 Item # 15 Page 1 AGENDA ITEM SUMMARY November 3, 2015 City Council STAFF Dan Weinheimer, Policy & Project Manager SUBJECT Resolution 2015-097 Designating a Voting Delegate and Alternate Delegate for National League of Cities Annual Business Meeting. EXECUTIVE SUMMARY The purpose of this item is to officially designate a voting delegate and alternate delegate who are eligible to vote on behalf of the City at the National League of Cities (NLC) annual business meeting. NLC bylaws afford voting rights at the annual business meeting to member communities based upon population. Delegates will vote on changes to NLC bylaws, election of members of the Board of Directors and member resolutions. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION National League of Cities (NLC) conducts its Annual Business Meeting at the conclusion of its Congress of Cities and Exposition. The 2015 Annual Business Meeting is Saturday, November 7, in Nashville, Tennessee. Each member city is entitled to a number of votes correlated to its population up to twenty (20) votes. Fort Collins shall have four (4) votes as its population falls within the 100,000 to 199,999 citizen range designated by NLC. Member cities are asked to designate a voting delegate and an alternate voting delegate. Voting delegates must be present at the meeting to vote and all votes will be conducted by voice vote unless a weighted vote is demanded by ten percent or more of the certified votes present at the meeting. It is recommended that Mayor Wade Troxell be named the voting delegate and that Mayor Pro Tem Gerry Horak be designated the alternate voting delegate. 15 Packet Pg. 192 RESOLUTION 2015-097 OF THE COUNCIL OF THE CITY OF FORT COLLINS DESIGNATING A VOTING DELEGATE AND ALTERNATE DELEGATE FOR THE NATIONAL LEAGUE OF CITIES ANNUAL BUSINESS MEETING WHEREAS, the National League of Cities (“NLC”) will hold its annual business meeting on Saturday, November 7, 2015, in Nashville, Tennessee; and WHEREAS, each member city is entitled to a number of votes based on its population, up to twenty votes; and WHEREAS, Fort Collins shall have four votes as its population falls within 100,000 to 199,999 range as designated by the NLC; and WHEREAS, member cities are asked to designate a voting delegate and an alternate voting delegate, one of whom must be present at the meeting to vote; and WHEREAS, the City Council desires to designate Mayor Wade Troxell as the voting delegate and Mayor Pro Tem Gerry Horak as the alternate voting delegate. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Mayor Wade Troxell is hereby designated as the voting delegate for the City for the 2015 annual business meeting of the National League of Cities (the “NLC Annual Meeting”). Section 2. That Mayor Pro Tem Gerry Horak is hereby designated as the alternate voting delegate for the NLC Annual Meeting. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 3rd day of November, A.D. 2015. _________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 193 Agenda Item 16 Item # 16 Page 1 AGENDA ITEM SUMMARY November 3, 2015 City Council STAFF Cory Christensen, Police Deputy Chief John Hutto, Police Chief SUBJECT First Reading of Ordinance No. 138, 2015, Appropriating Prior Year Reserves in the General Fund for the Design of the Police Regional Training Facility. EXECUTIVE SUMMARY The purpose of this item is to seek adoption of the appropriation ordinance to fund the design phase of the Police Regional Training Facility. The request is for $810,000 and authorization for funding for the Fort Collins portion of the design phase. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The City has experienced considerable growth over the past several years, which is expected to continue. Over the next 20 to 25 years it is expected that the population will grow by about 100,000 more citizens. This anticipated growth will need to be met by continued growth in the core services necessary to meet those citizens’ expectations. This means that Fort Collins Police Services will experience considerable growth in personnel in the next 20 to 25 years to meet those needs and expectations. The highest liability areas for providing police services is in the area of skills used by those officers. Three skill areas require regular, consistent and safe training so that officers respond in a controlled and professional manner. All of the skills areas require specialized facilities for the safe and effective training environment necessary to learn and maintain those skills. Those skill areas are weapons (both lethal and less than lethal), arrest control and defensive tactics, and driving. Fort Collins Police Services has been using the same facility for weapons training since 1990. At the time the facility was purchased there were 105 sworn officers; today that number is almost double at 203 sworn officers. That facility has been outgrown and is in need of repair to provide a safe training environment. An upgrade and repair of the facility will still not meet the current needs of Fort Collins Police Services and will cost tens of thousands of dollars. Due to the current inadequate facilities, Fort Collins Police Services has been traveling long distances in order to train on specific weapons in a safe manner. This leads to thousands of miles traveled, as well as valuable training time spent on travel alone. This has resulted in inefficient use of personnel time, wear and tear on police vehicles and extra cost to the organization. Currently officers are required to drive 40 miles, one way, multiple times per year to safely participate in specific weapons training. Fort Collins Police Services has never had a dedicated resource designed specifically to teach driving skills. Officers once practiced their driving skills at the vacant parking lot of the now demolished, dog racing track. When this resource was no longer available Fort Collins Police Services used the closed Fort Collins Municipal Airport runway. Although the resource was sub-par, driving training was possible at this location. That resource 16 Packet Pg. 194 Agenda Item 16 Item # 16 Page 2 is no longer available and the only alternative has been to travel 60 miles (one way) to Adams County to use a dedicated driving track. This facility is in very high demand and scheduling is problematic. It was not possible for Fort Collins Police Services to provide any driving training in 2014 due to the scheduling conflicts. Fort Collins Police Services must plan to meet these needs for now and into the future. Options include Fort Collins building or repairing its own venue for these training needs or entering into a partnership to combine resources to build a facility that will meet those needs. Due to the known deficiencies and inadequate training facilities, Fort Collins Police Services has been actively looking for opportunities to relieve this issue. The Loveland Police Department is also facing critical shortfalls in adequate training facilities for both driving and weapons training. Out of these needs a partnership was developed between the two police agencies to explore a joint training facility that would meet the current and future skills training needs of both agencies. The parties have negotiated an Intergovernmental Agreement for the sharing of costs of preliminary design, design development, construction drawings, and construction administration relating to the construction of a joint regional training facility. The Intergovernmental Agreement will be presented for Council approval along with Second Reading of this proposed appropriation ordinance. A comprehensive needs study was completed and conceptual design developed for a facility that provides adequate and safe training for both Fort Collins Police Services and Loveland Police Department. The estimated capital cost to construct this facility is $18.5 million and it is intended that the capital cost be shared equally between the two cities. Though other law enforcement agencies were approached to join the partnership, all have declined. There is some additional capacity to sell facility use time to other partners in the region. This would assist in partially offsetting the operation and maintenance cost of the facility. Letters of intent for using the facility have been signed by 11 additional regional agencies, representing 1,100 officers. The footprint of the training facility is based solely on the needs of Fort Collins Police Services and Loveland Police Department. The training facility takes into account the planned growth in both communities that will also require growth in officers who are in need of this skills training. A comprehensive, and conservative, business plan has been prepared to show the training space needs, capital and ongoing costs and possible offsetting revenue of this facility. The research and planning stages have been completed with a conceptual design for all aspects of the facility, a comprehensive business plan, letters of intent from 11 area agencies and location of the facility. On January 27, 2015, a work session with City Council was held outlining the business plan and future use of this facility. On February 12, 2015, a joint session of Fort Collins City Council and Loveland City Council was held to further discuss the plans and regional nature of the Regional training Facility. On October 6, 2015 Loveland City Council approved $1.075 million to begin work on construction design. CITY FINANCIAL IMPACTS If approved, $810,000 will be appropriated out of the General Fund Reserves to cover the design costs of the facility. Fort Collins’ additional share of the total capital cost would be $8.5 million and would be financed using municipal bonds. Depending on the loan term, the debt service will cost $622,000 to $967,000 per year. Outside user facility rental is expected to generate revenue of approximately $200,000/year; sustaining O&M is approximately $700,000 per year. Fort Collins and Loveland will split the facility cost based on percentage of officers and is expected to be approximately $340,000/year for Fort Collins. 16 Packet Pg. 195 Agenda Item 16 Item # 16 Page 3 PUBLIC OUTREACH Considerable outreach has been accomplished over the last 24 months with stakeholders who would use the RTC for a rental fee. ATTACHMENTS 1. Letter from Larimer County re: participation in Range (PDF) 2. Poudre Fire Authority letter re: participation in Range (PDF) 3. Memo re: New Training Campus Informal Survey of Police Services employees (PDF) 4. Work Session Summary, January 27, 2015 (PDF) 5. Powerpoint presentation (PDF) 16 Packet Pg. 196 ATTACHMENT 1 16.1 Packet Pg. 197 Attachment: Letter from Larimer County re: participation in Range (3686 : Police Regional Training Facility) &RU\&KULVWHQVHQ 6XEMHFW ): 3ROLFH7UDLQLQJ&HQWHU'ULYLQJ5$QJH From: Tom Demint <tdemint@poudre-fire.org> Date: October 14, 2015 at 10:36:07 PM MDT To: "jhutto@fcgov.com" <jhutto@fcgov.com>, Darin Atteberry <DATTEBERRY@fcgov.com> Cc: SLT <SLT@poudre-fire.org> Subject: Police Training Center Driving RAnge Chief Hutto, The PFA has an interest in the driving course possibilities for the new Police Training Center being discussed. We would be interested to know what additional costs would be entailed to build the driving pad sufficient to hold up to the weight of fire apparatus. The PFA does not have sufficient facilities for all of our driver training needs in our current infrastructure. We would be interested in what the additional costs would be and what the cost would be to the authority or other fire service agencies to participate. I have spoke with the Chiefs of Windsor, Greeley and Loveland about this possibility as well. They have expressed an interest but of course would like to know what the additional costs would be and what would the cost to each fire department be along with other logistical questions. I will revisit that with them when I see them again. Of course, the costs to the PFA would need to be considered, approved and budgeted by the PFA Board of Directors. Let me know if I can answer any questions about the fire service interests in this possibility. Courage Leadership Duty Tom DeMint Fire Chief Poudre Fire Authority Fort Collins, CO tdemint@poudre-fire.org 970-566-7274 ATTACHMENT 2 16.2 Packet Pg. 198 Attachment: Poudre Fire Authority letter re: participation in Range (3686 : Police Regional Training Facility) Fort Collins Police Services Professional Standards Unit 2221 S. Timberline Rd. PO Box 580 Fort Collins, CO 80522-0580 (970) 416-2660 Fax (970) 224-6088 MEMORANDUM To: John Hutto, Chief of Police Thru: Cory Christensen, Assistant Chief of Police From: Dan Murphy, Professional Standards Lieutenant Ref: New Training Campus Agency Informal Survey Date: October 15, 2015 As the Professional Standards Unit supervisor in charge of the Training Unit I thought it would be useful to provide you with some agency wide feedback about the new Training campus. I conducted an informal survey through the major training disciplines of driving, firearms and defensive tactics. The results of those surveys were; x 132 sworn employees surveyed - 132 thought the training campus should be a priority for the agency. The question was “Do you believe the training facility should be a priority for the agency?” The Fraternal Order of Police also has approached me and stated they fully support the new facility as a vital part of our agency’s training needs and maintaining quality service. The FOP is in total support for this much needed facility with Loveland in whatever version is approved by both city councils. Some of the comments: The campus would save drive time and lead to more training time. The current indoor range is not suitable for the training needs of an agency our size. The campus would allow for future growth at the site and the addition of new officers who need to be trained. Let me know if you need anything else, the officers are very eager to see this project start. ATTACHMENT 3 16.3 Packet Pg. 199 Attachment: Memo re: New Training Campus Informal Survey of Police Services employees (3686 : Police Regional Training Facility) Administrative Division 2221 South Timberline Road PO Box 580 Fort Collins, CO 80522 970.221.6540 970.224.6088 - fax fcgov.com M E M O R A N D U M Date: February 3, 2015 To: Mayor Weitkunat and City Councilmembers Thru: Darin Atteberry, City Manager From: John Hutto, Chief of Police Re: January 27, 2015 Work Session Follow Up At the January 27, 2015 work session, several follow up questions were asked of City Staff. Those questions along with the answers are included in this memorandum. Further information on the ability to maintain the rental revenue while still meeting our capacity needs and an adjustment or modification to the Net Present Value. The current financial model for the RTC assumes approximately 25% of the excess capacity, after both partners training needs have been met, will be rented to other agencies within Northern Colorado and north Denver. As a result, capacity utilization of the track and shoot house is anticipated to be about 40%, utilization of the two ranges about 65%, and utilization of the class rooms of about 80%. Staff anticipates rental income can be maintained over the 20 year life for the following reasons 1. Current capacity assessment has been reduced by 20% leaving a degree of cushion in the current capacity analysis 2. The facility can be operated 7 days per week rather than 5 days per week, increasing capacity by 40% 3. If class rooms become the limiter, some class room activity could be conducted within existing classroom space at the current headquarters of each Police Department Adjust the Net Present Value for the Liberty Arms option. Adjusting for the increase in police staffing over time and the impact that has on the NPV. Additional cost was added to the model based on estimates of staff growth to support current levels of service for an expanding population. However, an error in the prior model was identified that significantly reduced the annual cost of the Liberty Arms estimate. The two adjustments canceled each other out and the NPV and Total Cash numbers did not change. ATTACHMENT 4 16.4 Packet Pg. 200 Attachment: Work Session Summary, January 27, 2015 (3686 : Police Regional Training Facility) 2 Include the debt service costs into the overall cost picture for Fort Collins. A budget impact page has been included in the Feb 9 th Council Finance Committee presentation and the Feb 12 th Joint Council meeting presentation that includes the estimated $809K of annual debt service associated with financing $11M at 4% over 20 years. Rental rates should include a methodology that incorporates recovery of capital costs of the facility. The rental rates for the use of the Regional Training Campus (RTC) are currently not finalized. The original concept was to use those fees to recover and off set much if not all of the operation and maintenance costs of the RTC. The current O & M estimate does include a 15% capital replacement amount making sure that the upkeep of the facility is funded. It is possible to increase the rental fees to assist in recovering some of the original capital expended by the two Cities. The critical factor in figuring those fees revolves around how much of the original capital will the two cities try to recover through use fees. Once this variable is decided then the per- segment rental fee can be set. The market for those training areas can drive the rental fees for each of the different training venues. As an example, the driving track is expected to be a very desirable venue to the outside agencies and due to that demand should call for a larger rental fee compared to the classroom use. These fees can be adjusted as the market increases or decreases for the needed use. These rates should be driven by the market for using the venues. Is there a model where a smaller or less expensive facility will meet the needs of Police Services? The question has been asked if the currently proposed training facility can be reduced in size or phased in some way and still meet the training needs of both Fort Collins and Loveland. This question is best answered by first examining how the currently proposed project came to be. For several years the City of Loveland has been planning to build a police training facility in order to address some of their ongoing training needs. Fort Collins recognized that we had training needs going unmet as well as needs on the near-time horizon. A regional partnership to address these mutual needs was formed. In order to determine the size and scope of the project the partners enlisted the aid of a nationally known consulting firm specializing in the development of needs assessments and business planning of public safety training facilities. (http://www.theinteractgroup.com/). The Interact Group spent multiple hours with the training staffs from both Departments. The end result of this process was a basic facility design that would meet the immediate needs of both Fort Collins and Loveland. The proposed facility allows for growth in the future through the utilization of unused capacity in each training day. For now, and the immediate future, this unused capacity can be “sold” to outside users to help 16.4 Packet Pg. 201 Attachment: Work Session Summary, January 27, 2015 (3686 : Police Regional Training Facility) 3 cover/recapture facility costs. It should be noted that the ability to sell this unused capacity will diminish over time as Fort Collins and Loveland continue to grow. Reducing the size of the driving track is not recommended. The designed size of the driving track is considered very conservative by the consultant and meets our basic needs for emergency vehicle operation training. Similar facilities are larger. For example the driving track at the Flatrock Training Center in Adams County is a full half mile longer. In evaluating the size of the pistol range a reduction from 25 lanes to 20 lanes does offer cost savings while not greatly reducing the effectiveness and efficiency of our training needs and model. Growth in staffing will have an impact on this in the future, but meets today’s needs. This change reduces the overall cost of the campus by 1.5 million. The business plan/use analysis conducted by the Interact Group has determined that the proposed configuration represents the most efficient design to meet needs. For example, it is imperative that we have two different ranges separated by a hard wall. This is necessary in order to conduct two different types of training at once or to allow for two different Departments to be on the range at the same time Staff is of the opinion that there are components of the proposed design that can be phased to a later date or potentially eliminated altogether. This decision was a combined collaboration with the City of Loveland. These components are; the pistol range lane reduction, the street grid, and the vehicle maintenance building reduced in size for storage only. These reductions represent a total of 4 million dollars. An analysis of the outcomes expected with the building of a Regional Training Campus. The question was raised during the work session about the expected outcomes should the proposed training facility be built. The first point to be made is this; the proposed facility is not intended to fulfill a wish list of training that we would like to do but are currently not doing. In developing the business plan and needs analysis for this project only about 7% of the training fell into the category of “nice to have”. Fifty percent of our required training is being done at a satisfactory level. The remaining forty three percent of Fort Collins Police Service’s training is occurring at a minimum, adapted, or altered level. It is this forty three percent that causes the most concern. Our current range facility was built in 1984 to serve non-police, recreational shooters. It is suitable for only one purpose, to stand in a straight line and target practice using static targets. The training needs for police officers have progressed dramatically away from this type of shooting in the last 20 or so years. The change in police training paradigms has been driven by two factors; world events and case law. Our profession is continually mindful of best practices. Events occur on a regular basis that causes us to reexamine the way we train and deploy officers. For example the sniper incident in 1966 at the University of Texas tower was the catalyst for SWAT teams to be formed nationwide. More recently mass shooter incidents like Waco and Columbine, and Aurora have forever changed the way police departments respond. Two significant Supreme Court cases which guide the current requirements around police training are: City of Canton, Ohio v. Harris, and Monell v. Department of Social Services. In City of Canton, Ohio v. Harris, the Supreme Court made it clear that training police personnel is 16.4 Packet Pg. 202 Attachment: Work Session Summary, January 27, 2015 (3686 : Police Regional Training Facility) 4 a critical managerial responsibility. Monell v. Department of Social Services allowed municipalities to be sued for failure to train. Numerous sources have affirmed that the cost of training is considered a bargain when the alternative is neglecting it. The courts use the concept of “deliberate indifference” when showing negligence in failure to train tort cases. Training must be specific and mission oriented. The training given to police officers today must reflective of the duties, environment, and situations they are likely to encounter in the course of their employment. Failure to provide training that meets this standard, when we know we should, constitutes an element of deliberate indifference leaving us exposed civilly. With the venues currently available to us our ability to provide the training at the frequency and fidelity that we know we should is either severely limited or absent altogether. Reducing, eliminating, or not providing the right type of training has measurable negative outcomes. One study points out that within 6-18 months of cutting training lawsuits will begin to be filed under Title 42, U.S. Code, Section 1983, for failure to train (Rutledge, D., 2009, Saving Money Through Training, Policing, 33(5), 68-70.) Closer to home, Fort Collins Police Services began to have issues with providing adequate driving training in 2012 caused by the unavailability of a driving venue. Over the five year period prior to 2012 (2007-2011) Fort Collins Police officers averaged 18.8 traffic crashes per year. In the most recent three years that we have had diminished training (2012, 2013, and 2014) our average has been 24.6 crashes per year. Negative events are a likely outcome when training is eliminated, reduced, or not provided at a sufficient fidelity. 16.4 Packet Pg. 203 Attachment: Work Session Summary, January 27, 2015 (3686 : Police Regional Training Facility) 1 Police Regional Training Center October 2015 ATTACHMENT 5 16.5 Packet Pg. 204 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) History 2 Overview • Jan 2013 - Loveland Council’s top priority; $18.2M in Loveland capital plan • Jul 2013 - Fort Collins joins as 50-50 partner • Sept 2015 - Larimer County declined inclusion as 3rd Capital Partner • Sept 2015 - Loveland City Council appropriated ~$800k to begin design Capital project scope adjustments since 2013 • Original partnership project model included two pistol ranges – $28M • Reduced to one pistol range with track, SWAT, street grid, etc. – $24M • Reduced pistol range; removed street grid, SWAT, classrooms & offices – $17.4M • Classrooms & office added back in; ranges, track, skid pad remain – $18.5M 16.5 Packet Pg. 205 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) Larimer County Involvement 3 • Fort Collins City Council requested Staff to explore additional partners • August 2015 – County Commissioners discussion • Proposal included: 1/3 Capital Share, 1/3 Lease Share, O&M share based on officer count • September 2015 • Larimer County decided to not join the partnership as other financial matters took priority and Sheriff said this was not high priority 16.5 Packet Pg. 206 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) Link to Strategic Objectives 4 Within 2014 City Strategic Plan, Training Facility directly ties to 1 strategic objective and relates to 3 others: • SAFE 5.1 - Provide facilities and training capabilities to support a high caliber police force. • SAFE 5.8 - Improve community involvement, education and regional partnerships to make our community safer and stronger. • HPG 7.9 - Improve productivity, efficiency, effectiveness, customer service and citizen satisfaction in all areas of the municipal organization • HPG 7.10 - Implement leading-edge and innovative practices that drive performance excellence and quality improvements across all Service Areas. During current 2015 Strategic Risk Assessment Process, Police identified 2 high priority risks related to Training 16.5 Packet Pg. 207 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) Need for Police Training Equipment & Facilities: • Building – Excellent • Equipment – Excellent • Training – Barely adequate (More difficult as staff increases) Training is Critical: • Provide World Class Service to our Citizens • Maintain professional level of Police Officers • Training best practices for police profession – Response to current climate • Reduces liability issues – Failure to Train • Increases safety to citizens and officers • Required by POST 5 16.5 Packet Pg. 208 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) Current Training Facilities Police Services Building - Good • Classroom • Defensive Tactics – Mat Room Police Indoor Range - Poor • Pistol use only • Limited space • Requires repair • Limited training opportunities Great Guns in Nunn - Poor • Privately Owned – demonstrated by our move to this facility • 25 mile drive one way Driving Training - Poor • Adams County, very limited availability, 60 mile drive • Unable to schedule usable track time in 2015 SWAT - Poor • Trains at various facilities. Castle Rock, Cheyenne, Pawnee 6 16.5 Packet Pg. 209 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) Facility Capacity 7 Total Segment Assumptions • 3 segments/day • 5 days/week • 48 weeks/year • 80% efficiency Right Size • Opening at >50% capacity utilization • Officer Count forecast to increase 450 by 2030; 70% utilization • Majority of excess capacity due to track Total Segments 2017 2018 2019 2020 2021 Track/Skid Pad 288 1,152 1,152 1,152 1,152 Ranges (2) ‐ 1,152 1,152 1,152 1,152 Classroom (3) ‐ 1,728 1,728 1,728 1,728 Total Segments 288 4,032 4,032 4,032 4,032 Segments Consumed by FC/Loveland Track/Skid Pad 30 122 125 129 132 Ranges (2) ‐ 654 670 689 707 Classroom (3) ‐ 1,383 1,418 1,457 1,496 Total Segments 30 2,159 2,213 2,274 2,335 Percentage of Segments Used Track/Skid Pad 10% 11% 11% 11% 11% Ranges (2) ‐ 57% 58% 60% 61% Classroom (3) ‐ 80% 82% 84% 87% Total Segments 10% 54% 55% 56% 58% 16.5 Packet Pg. 210 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) Partnership Assumptions • Facility is jointly owned and operated and build costs split evenly • Facility includes • One 20 lane pistol range (50 yards) and one 10 lane rifle range (100 yards) • 3 classrooms and limited administrative space • .95 miles of high speed driving track & skid pad • Capital Cost - $18.5M • Design & Construction Support - $1.6M • Construction - $16.9M • O&M Costs of approximately $680k year • 3.25 FTEs - $300k • Utilities, supplies, range & track maintenance - $280k • Capital reserve & reinvestment - $100K 8 16.5 Packet Pg. 211 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) Aerial looking NW at Range Building 9 16.5 Packet Pg. 212 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) Aerial looking NW at Campus 10 16.5 Packet Pg. 213 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) Current Proposal Timeline 11 Proposed Timeline III IV I II III IV I II III IV I II III IV Design & Architecture Site Work Construction Track Construction Range & Classroom Construction 2015 2016 2017 2018 16.5 Packet Pg. 214 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) Capital Costs – Current Proposal 12 50% Share Fort Collins $ 9,259 Loveland 9,259 Total $ 18,519 Anticipated Capital Need ($K) 16.5 Packet Pg. 215 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) Financing 13 Original Reduced Current • Total Capital $23.4M $20.4M $18.5M • Anticipated Borrowing - $11M $9M $8.5M • Debt Service - 20 years @ 4% $809k $662k $622k • Debt Service - 10 years @ 2.5% $1,257k $1,028k $967k • Anticipated Structure: • Certificate of Participation • Require pledge of another City Asset • Considerations: • Training facility not considered an essential service • Facility on leased land • Facility co-owned by two partners • Complicated deal, but doable 16.5 Packet Pg. 216 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) Capital Cost Detail 14 Proposed Cost Detail Feb 12th Feb 12th May 26th July 20th ($ 000's) Original Reduced RTC Revised Current Design & Architecture $ 1,460 $ 1,326 $ 1,195 $ 1,261 Bid & Construction Support 416 377 340 359 Firing Ranges & Support 9,549 7,290 7,290 7,290 Classrooms & Admin & Bldg Support 4,372 1,751 866 1,331 Grossing Factor incl above 2,432 2,187 2,316 Inflation 1,122 1,084 918 1,001 Contingency incl above 1,100 1,050 1,051 Total Range Building $ 16,919 $ 15,360 $ 13,846 $ 14,609 Total Sim/SWAT House 997 $ 931 $ ‐ $ ‐ Driving Track & Skid Pad 1,925 1,411 1,411 1,411 Outbuilding 727 422 72 72 Track Contingency 396 211 211 211 Total Track & Skid Pad $ 3,048 $ 2,044 $ 1,694 $ 1,694 Site Improvements 2,154 1,779 1,653 1,927 Site Contingency 321 265 247 289 Total Site Improvements $ 2,475 $ 2,044 $ 1,900 $ 2,216 Total Project Cost $ 23,439 $ 20,379 $ 17,440 $ 18,519 16.5 Packet Pg. 217 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) RTC Net Income – Current Proposal 15 • Revenue estimate lower • Props removed from initial model • Conservative estimate based on user group interest (not all available segments) • Worst case based on $0 Revenue • Land rental cost of $175k/year and potential sale of current range for $500k not included above Training Facility Operating Costs ($ 000's) 2016 2017 2018 2019 2020 2021 Revenue Class Charge to Outside User $ ‐ $ ‐ $ 110 $ 114 $ 117 $ 121 Rental Revenue ‐ ‐ 85 88 92 95 Total Revenue $ ‐ $ ‐ $ 195 $ 202 $ 209 $ 216 Expenses Design 810 ‐ ‐ ‐ ‐ Personnel ‐ 115 302 311 321 330 Operations, Supplies, Maint ‐ 48 312 321 331 341 Capital Reserve ‐ 18 64 66 68 70 Total Expense $ 810 $ 181 $ 678 $ 698 $ 719 $ 741 Training Facility Income/(Loss) $ (810) $ (181) $ (483) $ (497) $ (511) $ (525) Worst Case Income/(Loss) ‐ Based on 0 Revenue $ (810) $ (181) $ (678) $ (698) $ (719) $ (741) 16.5 Packet Pg. 218 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) Market Rental Data 16 Adams County • 2014 - $150 per 4 hour segment • 2015 - $200 per 4 hour segment Highlands Ranch Training facility • Range $350 plus $10 per shooter (Full Day) • Range $225 plus $10 per shooter (Half Day) • Classrooms range from $140 to $300 (6 classrooms) Fort Collins Loveland Facility • Planned Rental Rate of $350 per 5 hour segment for Range/Track, $175 per segment for Classrooms • Fully Loaded Rental Rate with Capital (per 5 hour segment) • Range – $921 • Track – $206 • Classrooms - $107 16.5 Packet Pg. 219 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) Budget Impact Fort Collins – Current Proposal 17 Training Facility Budget Impact ($ 000's) 2016 2017 2018 2019 2020 2021 Design $ (810) FC Share of Loss based on % of Officers (121) (325) (335) (345) (356) FC Savings ‐ ‐ 168 173 178 183 Total Fort Collins $ (810) $ (121) $ (157) $ (162) $ (167) $ (173) Fort Collins Financing Cost ‐ @ 4% 20 yrs (622) (622) (622) (622) (622) (622) Fort Collins Financing Cost ‐ @ 2.5% 10 yrs (967) (967) (967) (967) (967) (967) Budget Impact ‐ FC‐ 20 yr $ (1,432) $ (743) $ (780) $ (785) $ (790) $ (796) Budget Impact ‐ FC ‐ 10 yr $ (1,777) $ (1,087) $ (1,124) $ (1,129) $ (1,134) $ (1,140) • FC Savings primarily driven by vehicle expense (to/from Adams county) and closure of current indoor range 16.5 Packet Pg. 220 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) Staff Recommendation 18 • Ties to strategic plan • We have a need • We have a partner • Going alone means future costs will be more than double present cost (no partner, inflation, potential loss of land for facility) 16.5 Packet Pg. 221 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) Back-Up 19 16.5 Packet Pg. 222 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) Fort Collins Police Staffing – 1990 to 2030 • 2013 Citizen Survey shows overall satisfaction with current level of service • 1990 staffing was 105 officers, 2015 Sworn staffing is 203 officers • By 2030 population of Fort Collins could increase to over 240,000 • Assuming a 2.37% growth rate • By 2030 Sworn staffing at current service delivery should be 315 officers • Assuming population of 240,000 citizens 105 126 145 163 172 203 240 277 315 1990 1995 2000 2005 2010 2015 2020 2025 2030 Sworn Police Officers 20 16.5 Packet Pg. 223 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) Police Training Requirements • Currently conducting 86K hours of training per year for all skill types • Different types of training require different facilities • As staffing grows, it will be increasingly difficult to adequately meet training requirements 21 16.5 Packet Pg. 224 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) Categories of Training • 50% of training completed to satisfaction – Category 2 • 43% of training completed at minimal level – Category 1 • Rented Facilities and usage of current inadequate facilities • Make do with less than ideal facilities • Reduced training time for officers • 7% additional skills training desired including; • decision making scenarios infused into the current training 22 16.5 Packet Pg. 225 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) Training Facilities Options Refurbish existing Pistol Range • Creates functioning inadequate facility • Does not address Rifle, SWAT or Track needs • Long Term – FC training facilities would need to be built Refurbish existing Pistol Range & Build Drive Track • Long Term – Firearms and SWAT needs to be addressed • Capital for Track (pursuit & skid only) estimated $3 - 3.5M • Land not included - Where do we build it? Private partnerships • Limited availability for training • Costs too high when compared to other options • Capital for track of $3 - 3.5M excluding land Partner with Loveland and others – Build Training Center • Develops a Northern Colorado training center meets all needs • Includes capacity to support future staffing levels 25 years out • Continue to seek other capital partners 23 16.5 Packet Pg. 226 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) Why partner with Others Shared capital cost Shared operating cost Other regional opportunities Meet current needs faster 24 16.5 Packet Pg. 227 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) Proposed Plan Diagram 25 16.5 Packet Pg. 228 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) Outside Rental Assumptions 26 2016 2017 2018 2019 2020 2021 Driving Pursuit Speed Track $ 350 $ 361 $ 371 $ 382 $ 394 $ 406 Driving Skid Pad 350 361 371 382 394 406 Pistol Range 350 361 371 382 394 406 Rifle Range 350 361 371 382 394 406 Classroom 225 232 239 246 253 261 Weighted average $ ‐ $ ‐ $ 358 $ 369 $ 380 $ 392 Driving Pursuit Speed Track 0050515152 Driving Skid Pad 0059606061 Pistol Range 0052535354 Rifle Range 0052535354 Classroom 0023232324 Total Segment Excess/Deficit 0 0 236 238 241 243 Driving Pursuit Speed Track $ ‐ $ ‐ $ 18,566 $ 19,314 $ 20,092 $ 20,902 Driving Skid Pad ‐ ‐ 21,908 22,790 23,709 24,664 Pistol Range ‐ ‐ 19,308 20,087 20,896 21,738 Rifle Range ‐ ‐ 19,308 20,087 20,896 21,738 Classroom ‐ ‐ 5,490 5,711 5,942 6,181 Total Segment Excess/Deficit $ ‐ $ ‐ $ 84,580 $ 87,989 $ 91,535 $ 95,224 Revenue Rent Rate (3% inflation growth/year) Segments Rented (est. 1% growth annually) 16.5 Packet Pg. 229 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) Training Facility O&M Costs - Current 27 O&M Expenditures Year 1Year 2Year 3Year 4Year 5 Personnel ‐ 3.25 FTEs $ 115 $ 302 $ 311 $ 321 $ 330 Utilities 40 91 94 97 100 Office/Audio/Tele/Supplies 8 16 16 17 17 Range Maint & Consumables 128 132 136 140 Track Maint & Consumables 76 79 81 83 Capital Reserve 18 64 66 68 70 Total Facility O&M $ 181 $ 678 $ 698 $ 719 $ 741 16.5 Packet Pg. 230 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) Fort Collins Savings 28 FC Savings 2016 2017 2018 2019 2020 2021 Track Fort Collins Rental Space $ 6 $ 6 $ 7 $ 7 Fort Collins Vehicle / Travel Expense 73 75 77 80 Track Total $ 79 $ 82 $ 84 $ 87 Firing Range Hourly Range Manager $ ‐ $ ‐ $ 27 $ 28 $ 28 $ 29 Lease to Shoot @ Great Guns ‐ ‐ 28 28 29 30 Air Filter Cleaning Service ‐ ‐ 13 13 14 14 Electricity ‐ ‐ 3 3 3 3 Natural Gas ‐ ‐ 4 4 4 4 Sewer ‐ ‐ 0 0 0 0 Storm Water ‐ ‐ 2 2 2 2 Water ‐ ‐ 0 0 0 0 BRM ‐ ‐ 8 8 8 8 Custodial ‐ ‐ 3 3 3 3 HVAC/Sys/Energy Mgmt ‐ ‐ 2 2 2 2 Firing Range Total $ ‐ $ ‐ $ 88 $ 91 $ 94 $ 96 Total FC Savings $ 168 $ 173 $ 178 $ 183 16.5 Packet Pg. 231 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) Feb 9th Council Worksession Material 29 16.5 Packet Pg. 232 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) Training Capacity Utilized 30 Training Prop Segments Capacity Segments Used Segments Rented % Used Driving Pursuit Speed Track 576 67 111 31% Driving Street Grid 576 139 109 43% Driving Skid Pad 576 49 132 31% K9 Training 576 60 10% Scenario Village 576 245 43% Pistol Range 576 315 67 66% Rifle Range 576 306 66 65% Sims / Shoot House 576 106 118 39% Obstacle Course 576 65 11% Mat Training Room 576 335 60 69% Class Room 1728 1314 104 82% • Training facility size driven by: • Optimal training class size – instructor to student • Optimal training scheduling impact on Police Services • 20 year growth projections of Police Services 16.5 Packet Pg. 233 Attachment: Powerpoint presentation (3686 : Police Regional Training Facility) ORDINANCE NO. 138, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUND FOR THE DESIGN OF THE POLICE REGIONAL TRAINING FACILITY WHEREAS, the City has been experiencing and will continue to experience a considerable increase in its population, which means that Fort Collins Police Services will need to increase their personnel accordingly in the next 20 to 25 years to continue successfully serving the citizens of this community; and WHEREAS, with an increasing population, it is imperative that police officers regularly participate in weapons, arrest control/defensive tactics and driving training to learn and maintain high skill levels in the areas that have been identified as posing the greatest risk of liability; and WHEREAS, such training should take place in a safe and effective environment, which requires specialized training facilities; and WHEREAS, Fort Collins Police Services purchased a training facility in approximately 1990, and it is still currently being used by officers for some of their training purposes; and WHEREAS, since 1990, the number of sworn officers has almost doubled, and as a result, the training facility is inadequate; and WHEREAS, the training facility needs significant repair that is cost prohibitive, and the facility does not provide a safe environment for weapons or driving training, forcing officers to drive long distances to attend appropriate training; and WHEREAS, the Loveland Police Department is also facing critical shortfalls in adequate training facilities for both driving and weapons training; and WHEREAS, Fort Collins Police Services and the Loveland Police Department have joined together to investigate the feasibility of a joint training facility that would meet the current and future training needs of both agencies; and WHEREAS, over the past year, both agencies have been working together to develop an Intergovernmental Agreement for the sharing of costs of preliminary design, design development, construction drawings, and construction administration relating to the construction of a joint regional training facility; and WHEREAS, the Intergovernmental Agreement will be presented to Council for consideration and approval upon the second reading of this appropriation ordinance; and WHEREAS, a comprehensive study and conceptual design was completed to develop a proposed facility that would provide adequate and safe training for both Fort Collins Police Services and the Loveland Police Department; and Packet Pg. 234 WHEREAS, the estimated capital cost to construct such a facility is $18.5 million to be shared equally between Fort Collins and Loveland; and WHEREAS, on October 6, 2015, the Loveland City Council approved $1.075 million to begin work on construction design; and WHEREAS, staff is seeking Council’s approval of $810,000 to be appropriated out of the General Fund Reserves to cover the design costs of the facility; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated for expenditure from prior year reserves in the General Fund the total sum of EIGHT HUNDRED TEN THOUSAND DOLLARS ($810,000) for the design cost for the Regional Training Facility. Introduced, considered favorably on first reading, and ordered published this 3rd day of November, A.D. 2015, and to be presented for final passage on the 17th day of November, A.D. 2015. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 17th day of November, A.D. 2015. _________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 235 Agenda Item 17 Item # 17 Page 1 AGENDA ITEM SUMMARY November 3, 2015 City Council STAFF Lawrence Pollack, Budget & Performance Measurement Manager Darin Atteberry, City Manager Mike Beckstead, Chief Financial Officer SUBJECT First Reading of Ordinance No. 139, 2015, Being the Annual Appropriation Ordinance Relating to the Annual Appropriations for the Fiscal Year 2016; Amending the Budget for the Fiscal Year Beginning January 1, 2016, and Ending December 31, 2016; and Fixing the Mill Levy for Fiscal Year 2016. EXECUTIVE SUMMARY The purpose of this item is to amend the adopted 2016 Budget and set the amount of $563,376,909 to be appropriated for fiscal year 2016. Including the 2016 adopted budgets for the General Improvement District No. 1 (“GID No. 1”) of $193,877, the Skyview General Improvement District No. 15 (“GID No. 15”) of $1,000, and the revised Urban Renewal Authority (URA) budget of $2,889,600, the total City appropriations amount to $566,461,386. The Net City Budget, which excludes the GID No.1, GID No. 15, URA, and internal transfers between City funds, is $448,374,933 for 2016. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION City Council previously adopted the 2015-2016 Biennial Budget and appropriated monies for expenditure in fiscal year 2015. State statutes and the City Charter both require an annual appropriation to cover expenses for the ensuing year (2016) based upon the adopted budget. The Second Reading must occur before the last day of November and is currently scheduled for November 17, 2015. The Net City Budget, as amended, is allocated to: Original Amended 2016 2016 Change Operations $479.3 $496.8 $17.6 Debt Service 21.6 21.6 0.0 Capital* 35.5 48.0 12.5 Total City Appropriations** $536.4 $566.5 $30.1 General Improvement District (GID) #1, 15 ($0.2) ($0.2) $0.0 Urban Renewal Authority (URA) (4.9) (2.9) 2.0 Internal Service Funds (66.7) (70.4) (3.7) Less Transfers to Other Funds (41.3) (44.6) (3.3) 17 Packet Pg. 236 Agenda Item 17 Item # 17 Page 2 Net City Budget $423.3 $448.4 $25.1 * Capital dollars reflect non-lapsing capital project budgets ** This includes GID and URA which are appropriated in separate ordinances. The change in Total City Appropriations of $30.1M is the net of the increase in the 2016 City appropriation of $32.1M and a reduction in the 2016 URA appropriation of $2.0M This Ordinance also sets the 2016 City mill levy at 9.797 mills, unchanged since 1991. 2016 Revenue Update Sales and use tax, as well as property tax revenues are expected to be higher than originally anticipated for 2015 and 2016. 2015 sales tax collections are now forecasted to be $3.9M higher while use tax collections are anticipated to be $7.1M higher. Those amounts are then split into the General Fund (approximately 60%), and the dedicated voter approved taxes (e.g. Keep Fort Collins Great, OpenSpace Yes!, etc.). The City has been notified by Larimer County that property taxes are anticipated to be nearly $1.0M higher in 2015 than previously forecasted. Looking ahead to 2016, sales tax is forecasted to grow 3.0% over the new 2015 base and use tax is being held flat to the $17.0M originally forecasted due to the significant volatility of that revenue stream. 2016 property tax is forecasted to be 10% over the 2015 base, although two-thirds of that increase will go to PFA in 2017, per our IGA. For the Budget Revision process, only major revenue sources are updated. Any additional revenues that are not used to fund budget offers will increase the various fund balances. Summary of Available Funding: $ in Millions General Fund Ongoing General Fund One- Time KFCG Transport ation Other Utililities Total Sales & Use Tax $ 2.4 $ 6.6 $ 3.0 $ 11.9 Property Tax 0.7 1.0 1.7 Street Maintenance 1/4 Cent 7.7 7.7 Utilities - Use of Reserves 9.2 9.2 Unassigned 2014 1.3 6.8 7.5 8.2 23.8 BCC Excess 1.6 1.6 Benefits Fund Revenue Depts 2.7 2.7 TOTAL $ 3.1 $ 8.9 $ 9.8 $ 15.2 $ 12.5 $ 9.2 $ 58.6 Recommended 2016 Budget Additions After reviewing the recommended 2016 Budget Revision requests at the September 15, 2015 work session and obtaining guidance from Council, the City Manager is recommending the adjustments listed below to the 2016 Budget. Of these, staff recommends using $15.5 million from reserves and available one-time revenue. The requests include use of reserves of $12.3M from the Capital Expansion – Community Parks, Capital Projects, Light and Power, Wastewater, and General Funds for large capital projects. $0.9M is coming from Keep Fort Collins Great reserves with the remainder of the reserves primarily coming from the General Fund for various one-time uses. The table below lists all the 2016 Revision Offers included in the 2016 Annual Appropriation. Note that transfers between funds are also included: 17 Packet Pg. 237 Agenda Item 17 Item # 17 Page 3 General Fund Ongoing $ One-Time $ Total Aircraft Rescue and Firefighting (ARFF) for Fort Collins-Loveland Airport 23,800 0 23,800 Annual Operations for the Community Recycling Center (CRC) 325,000 0 325,000 Benefits Adjustments (from General Fund departments) 1,042,492 0 1,042,492 Chief Human Resources Officer Position - General Fund portion (~151K annually) 92,957 21,000 113,957 City Clerk Licensing Coordinator 68,917 5,700 74,617 Climate Action Plan: Business Planning for Strategic Initiatives and Public-Private Partnership 0 75,000 75,000 Climate Action Plan: Energy Code Performance Program 52,000 15,000 67,000 Emergency Services Dispatcher 70,475 0 70,475 Increase to Claims Settlement Account within the Self Insurance Fund 0 600,000 600,000 Nature in the City Implementation 78,089 0 78,089 Neighborhood Services Strategic Plan and Implementation of Neighborhood Districts 0 67,000 67,000 Parks Division Competitive Hourly Wages 110,000 0 110,000 Prospect Road and College Avenue Intersection Improvements 0 1,100,000 1,100,000 Total Rewards Strategy: Career Architecture and Pay Structure 0 275,000 275,000 Transfers from the General Fund 75,000 75,000 Total General Fund $1,863,730 $2,233,700 $4,097,430 Other Funds Ongoing $ One-Time $ Total Additional Bus Stop Improvements for ADA Accessibility (including contractual FTE) 275,000 0 275,000 Benefits Adjustments (from departments) 1,678,297 0 1,678,297 Benefits Fund Unanticipated Expenditures 2,700,000 0 2,700,000 Chief Human Resources Officer Position - Benefits Fund portion 28,319 0 28,319 Climate Action Plan - Communication and Engagement Platform Design & Implementation 0 125,000 125,000 Climate Action Plan: Business Planning for Strategic Initiatives and Public-Private Partnership 0 75,000 75,000 Climate Action Plan: Energy Code Performance Program 52,000 15,000 67,000 Climate Action Plan: Water Reclamation Biogas to Co-Gen 0 3,500,000 3,500,000 Collindale Golf Course Irrigation Control Software Upgrade 0 30,000 30,000 Harmony Park and Ride - Parking Enforcement Officer 60,000 0 60,000 Homelessness Initiative - Street Outreach Pilot Program 0 80,000 80,000 IT Open Data Portal - First Phase Implementation 60,000 40,000 100,000 KFCG - Fire Reserves for PFA 0 483,219 483,219 Major Duct Banks and Circuits Funding Increase 0 5,000,000 5,000,000 Police Property and Evidence Technician 73,726 0 73,726 Prospect Road and College Avenue Intersection Improvements 0 1,600,000 1,600,000 Renewal of 1/4 Cent Street Maintenance Tax 7,688,825 0 7,688,825 Southeast Community Park - Water Rights & Construction Costs 0 1,100,000 1,100,000 Spring Canyon Playground Surfacing Replacement 0 208,000 208,000 Transfers from other funds 3,155,523 3,155,523 Total Other Funds $12,616,167 $15,411,742 $28,027,909 Total All Funds $14,479,897 $17,645,442 $32,125,339 17 Packet Pg. 238 Agenda Item 17 Item # 17 Page 4 Changes since Council review at the September 15, 2015 Work Session In addition to the recommended 2016 Revision Offers, a few other modifications have been either included in the 2016 Annual Appropriation Ordinance or could be made if directed by City Council. Included in 1st Reading of the 2016 Annual Appropriation Ordinance • Operation and Maintenance Costs for the Community Recycling Center: $325,000 - Based on City Council direction from the October 13, 2015 Work Session, operation and maintenance (O&M) costs for the Community Recycling Center (CRC) have been included in 1st Reading of the 2016 Annual Appropriation Ordinance. The annual cost for the O&M of the “Full CRC” including Green waste and Wood waste is estimated at $380K. However, since the CRC is not anticipated to open until sometime in mid-2016 the amount for the 2016 O&M is less than the $380K. That savings for 2016 is offset by other one-time startup costs and the seasonality of wood and green waste. The net amount being appropriated for 2016 is $325K. • Contribution to the Aircraft Rescue and Fire Fighting (ARFF) staff and equipment required for the Fort Collins- Loveland Airport: $23.8K - The Federal Aviation Administration (FAA) requires ARFF staff and equipment be provided for all commercial service take-off and landings. Half of this annual cost is born by the airport with the remaining half split 50/50 between the City of Loveland and the City of Fort Collins. The Fort Collins cost of these FAA requirements for 2016 is $23.6K and has been included in 1st Reading of the 2016 Annual Appropriation Ordinance. This contribution is made to the Loveland Fire and Rescue Authority (LFRA) which provides the required service. Not included in 1st Reading of the 2016 Annual Appropriation Ordinance • 2016 Revision Request from the City Attorney’s Office: $162K - The City Attorney’s Office submitted a 2016 Revision request for a paralegal, professional development/training for legal staff, and funding for a law clerk/legal intern. The detail behind the request is included in Attachment #1. The total cost of $162K has not been included in 1st Reading of the 2106 Annual Appropriation Ordinance. If Council desires for it to be included in the Ordinance, it will be necessary to amend the Ordinance. CITY FINANCIAL IMPACTS This Ordinance amends the City Budget for fiscal year 2016 and represents the annual appropriation for fiscal year 2016 in the amount of $563,376,909. The Ordinance also sets the City mill levy at 9.797 mills, unchanged since 1991. The net impact of the funded 2016 Revision compared with available funding is summarized as follows: $ in Millions General Fund Ongoing General Fund One- Time KFCG Transport ation Other Utililities Total Revenue Update $ 3.1 $ 8.9 $ 9.8 $ 15.2 $ 12.5 $ 9.2 $ 58.6 Recommended Budget Revisions 1.9 2.2 1.4 7.9 9.5 9.2 32.1 Net Impact $ 1.2 $ 6.6 $ 8.4 $ 7.3 $ 3.0 $ (0.0) $ 26.6 BOARD / COMMISSION RECOMMENDATION Boards and commissions were engaged during the development of the original 2015-16 Budget. The only changes to the 2016 appropriation are the 2016 Revision Offers which do not go through the Budgeting for Outcomes (BFO) process. Rather, those items that met the specific criteria for the 2016 Revision process 17 Packet Pg. 239 Agenda Item 17 Item # 17 Page 5 were thoroughly vetted by City staff, the executive management team, and by Council at a Council Finance Committee meeting and a City Council Work Session. PUBLIC OUTREACH Significant public outreach was conducted as part of the development of the original 2015-16 Budget. ATTACHMENTS 1. Revision Request for City Attorney's Office (PDF) 2. Powerpoint presentation (PDF) 17 Packet Pg. 240 ZĞǀŝƐŝŽŶdŝƚůĞ͗ &ƵŶĚ͗ ŽŶƚĂĐƚ͗ DĂƌLJŽŶĂůĚƐŽŶ KƵƚĐŽŵĞ͗ WĂĐŬĂŐĞͬKĨĨĞƌη͗ ϲϳ͘ϭ ͕ &ƵŶĚŝŶŐ^ŽƵƌĐĞ͗ dŽƚĂůŵŽƵŶƚ͗ ΨϭϲϮ͕ϬϬϬ &d ZĞƋƵĞƐƚĞĚ͗ ϭ͘Ϭ&d Ͳ ĞƐĐƌŝƉƚŝŽŶ͗ ϮϬϭϲh' dZ s/^/KEZ Yh ^d >ĞŐĂů^ƚĂĨĨŝŶŐ ŶŚĂŶĐĞŵĞŶƚƐĂŶĚ^ƚƌĂƚĞŐŝĐWůĂŶŶŝŶŐ ^ŝŐŶŝĨŝĐĂŶƚĐŚĂŶŐĞƐŝŶƚŚĞŝƚLJƚƚŽƌŶĞLJΖƐKĨĨŝĐĞ;KͿŽǀĞƌƚŚĞƉĂƐƚLJĞĂƌŚĂǀĞŚŝŐŚůŝŐŚƚĞĚƚŚĞŶĞĞĚĨŽƌĐůŝĞŶƚͲƐĞƌǀŝĐĞͲ ƌĞůĂƚĞĚĐĂƉĂĐŝƚLJďƵŝůĚŝŶŐŵĞĂƐƵƌĞƐĨŽƌKůĞŐĂůĂŶĚůĞŐĂůƐƵƉƉŽƌƚƐƚĂĨĨ͘dŚŝƐŽĨĨĞƌŝŶĐůƵĚĞƐĨƵŶĚŝŶŐĨŽƌƚŚƌĞĞŽĨƚŚŽƐĞ ŵĞĂƐƵƌĞƐ͗ ϭ͘ĚĚĞĚWĂƌĂůĞŐĂů^ƵƉƉŽƌƚ͘ŶĂĚĚŝƚŝŽŶĂůƉĂƌĂůĞŐĂů;ĂŶĚƌĞůĂƚĞĚĞdžƉĞŶƐĞƐͿƚŽĞŶĂďůĞĨƵƌƚŚĞƌƉƌŽŐƌĞƐƐŽŶĚĞǀĞůŽƉŵĞŶƚ ŽĨƐLJƐƚĞŵƐĂŶĚŽƉĞƌĂƚŝŽŶĂůĞĨĨŝĐŝĞŶĐŝĞƐĂŶĚƚŽĨƵůůLJƐƵƉƉŽƌƚƚŚĞŶĞǁƐƚĂĨĨŝŶŐƐƚƌƵĐƚƵƌĞŽĨƚŚĞK͕ĂƐǁĞůůĂƐƚŚĞ ĚĞǀĞůŽƉŵĞŶƚŽĨƉĞƌĨŽƌŵĂŶĐĞŵĞƚƌŝĐƐĂŶĚƚŚĞŐĞŶĞƌĂƚŝŽŶŽĨĚĂƚĂƚŽƐƵƉƉŽƌƚƚŚĞŵ͘dŚĞƌĞƋƵĞƐƚĞĚĨƵŶĚƐŝŶĐůƵĚĞ ĐŽŵƉĞŶƐĂƚŝŽŶĂŶĚďĂƐŝĐŽƉĞƌĂƚŝŶŐĞdžƉĞŶƐĞƐĨŽƌƚŚĞƌĞƋƵĞƐƚĞĚƉĂƌĂůĞŐĂů͕ƚŽŐĞƚŚĞƌǁŝƚŚŽŶĞͲƚŝŵĞĞdžƉĞŶƐĞƐĨŽƌƌĞůĂƚĞĚ ǁŽƌŬƐƉĂĐĞƌĞƋƵŝƌĞŵĞŶƚƐ͘dŽƚĂůĐŽƐƚŝƐΨϭϭϬ͕ϬϬϬ͖Ψϯϴ͕ϱϱϴŝƐŽŶĞƚŝŵĞĨŽƌϮϬϭϲ;ŝŶĐůƵĚŝŶŐƐƚĂƌƚƵƉĐŽƐƚƐĂŶĚƌĞůĂƚĞĚ ŽĨĨŝĐĞƐƉĂĐĞŵŽĚŝĨŝĐĂƚŝŽŶƐͿĂŶĚΨϳϭ͕ϰϰϮǁŽƵůĚďĞƚŚĞĐŽƐƚŽĨƚŽƚĂůĐŽŵƉĞŶƐĂƚŝŽŶĂŶĚƌĞŐƵůĂƌŽƉĞƌĂƚŝŶŐĞdžƉĞŶƐĞƐ͘ Ϯ͘WƌŽĨĞƐƐŝŽŶĂůĞǀĞůŽƉŵĞŶƚͬdƌĂŝŶŝŶŐĨŽƌ>ĞŐĂů^ƚĂĨĨ͘dŚŝƐĨƵŶĚŝŶŐǁŽƵůĚĂůůŽǁĨŽƌŝŶĐƌĞĂƐĞĚŐƌŽƵƉƐŬŝůůƐƚƌĂŝŶŝŶŐĂŶĚ ŽƚŚĞƌƚƌĂŝŶŝŶŐƌĞƐŽƵƌĐĞƐƚŽŝŶĐƌĞĂƐĞĂŶĚŵĂŝŶƚĂŝŶůĞŐĂůĞdžƉĞƌƚŝƐĞĂŶĚƉƌĂĐƚŝĐĞƐŬŝůůƐĨŽƌĂƚƚŽƌŶĞLJƐĂŶĚůĞŐĂůƐƵƉƉŽƌƚƐƚĂĨĨ͘ /ŶĐůƵĚĞĚǁŽƵůĚďĞŝŶĐƌĞĂƐĞĚƚƌĂŝŶŝŶŐƌĞƐŽƵƌĐĞƐŶĞĞĚĞĚƚŽŵĂŝŶƚĂŝŶĂŶĚĞŶŚĂŶĐĞůĞŐĂůĞdžƉĞƌƚŝƐĞŝŶĞǀŽůǀŝŶŐĂƌĞĂƐŽĨůĂǁ͕ ƐƵĐŚĂƐƌĞŐƵůĂƚŝŽŶŽĨŵĂƌŝũƵĂŶĂ͕ĨŝƌƐƚĂŵĞŶĚŵĞŶƚũƵƌŝƐƉƌƵĚĞŶĐĞ͕ĂŶĚĞŶǀŝƌŽŶŵĞŶƚĂůƉĞƌŵŝƚƚŝŶŐĂŶĚƌĞŐƵůĂƚŝŽŶ͕ĂƐǁĞůůĂƐ ŶĞǁĂƌĞĂƐŽĨƉŽůŝĐLJŝŶƚĞƌĞƐƚƚŽƚŚĞŝƚLJ͕ĂŶĚŶĞǁƉƌĂĐƚŝĐĞŵĞƚŚŽĚƐƚŽŽůƐ͘dŚŝƐĚŝƌĞĐƚůLJĞŶŚĂŶĐĞƐƚŚĞƋƵĂůŝƚLJ͕ƚŝŵĞůŝŶĞƐƐ ĂŶĚĚĞƉƚŚŽĨƚŚĞůĞŐĂůƐƵƉƉŽƌƚƚŚĞKƉƌŽǀŝĚĞƐ͘ dŽƚĂůĐŽƐƚŝƐΨϭϳ͕ϬϬϬ͘ ϯ͘>ĂǁůĞƌŬͬ>ĞŐĂů/ŶƚĞƌŶ&ƵŶĚŝŶŐ͘dŚŝƐĨƵŶĚŝŶŐǁŽƵůĚƉƌŽǀŝĚĞŚŽƵƌůLJĐŽŶƚƌĂĐƚƵĂůĐŽŵƉĞŶƐĂƚŝŽŶƚŽĂůůŽǁƚŚĞKƚŽ ĐŽŵƉĞƚĞĨŽƌůĂǁĐůĞƌŬƐĂŶĚůĂǁƐƚƵĚĞŶƚŝŶƚĞƌŶƐƚŽƉƌŽǀŝĚĞůĞŐĂůƌĞƐĞĂƌĐŚƐƵƉƉŽƌƚƚŽƚŚĞĂƚƚŽƌŶĞLJƐƚŚƌŽƵŐŚŽƵƚƚŚĞLJĞĂƌ͘ KĞĨĨŽƌƚƐƚŽĂƚƚƌĂĐƚůĂǁƐƚƵĚĞŶƚŝŶƚĞƌŶƐŚĂǀĞďĞĞŶŵĞƚǁŝƚŚůŝƚƚůĞŝŶƚĞƌĞƐƚŝŶůŝŐŚƚŽĨƚŚĞĐŽƐƚƐŽĨƌĞůŽĐĂƚŝŶŐŽƌ ĐŽŵŵƵƚŝŶŐƚŽ&ŽƌƚŽůůŝŶƐ͘dŚŝƐŝƐĂǀĞƌLJĐŽƐƚͲĞĨĨĞĐƚŝǀĞŵĞĂŶƐŽĨƐƵƉƉůĞŵĞŶƚŝŶŐƚŚĞĐĂƉĂĐŝƚLJŽĨƚŚĞKĂŶĚĞŶĂďůĞƐ ƉƌŽŵƉƚĞƌĂŶĚĨƵůůĞƌƌĞƐƉŽŶƐĞƐƚŽůĞŐĂůƋƵĞƐƚŝŽŶƐĂƐƚŚĞLJĂƌŝƐĞ͘&ƵŶĚƐĨƌŽŵǀĂĐĂŶĐLJƐĂǀŝŶŐƐŝŶϮϬϭϱŚĂǀĞďĞĞŶƵƐĞĚĨŽƌ ƚŚŝƐƉƵƌƉŽƐĞŝŶϮϬϭϱ͘/ƚŝƐŶŽƚĞdžƉĞĐƚĞĚƚŚĂƚƐŝŵŝůĂƌǀĂĐĂŶĐŝĞƐǁŝůůŽĐĐƵƌŝŶϮϬϭϲ͘dŽƚĂůĐŽƐƚΨϯϱ͕ϬϬϬ͘ ͘ dŚĞƐĞĐŽƐƚƐĐŽƵůĚďĞƌĞĚƵĐĞĚďLJĚĞůĂLJŝŶŐƚŚĞŚŝƌĞŽĨƚŚĞƉĂƌĂůĞŐĂů͕ŽƌďLJƐĐĂůŝŶŐďĂĐŬƚŚĞƉĞƌŝŽĚŽĨŝŶƚĞƌŶǁŽƌŬŽƌƚŚĞ ƚƌĂŝŶŝŶŐĂĐƚŝǀŝƚŝĞƐ͘ZĞĚƵĐƚŝŽŶƐǁŽƵůĚƌĞƐƵůƚŝŶĂĐŽƌƌĞƐƉŽŶĚŝŶŐƌĞĚƵĐƚŝŽŶŝŶďĞŶĞĨŝƚƐĨƌŽŵƚŚĞŽĨĨĞƌ͘ ϭϬϬͲ'ĞŶĞƌĂů&ƵŶĚ ,ŝŐŚWĞƌĨŽƌŵŝŶŐ'ŽǀĞƌŶŵĞŶƚ 'ĞŶĞƌĂů&ƵŶĚͲEĞǁƌĞǀĞŶƵĞ WĂƌĂůĞŐĂů ATTACHMENT 1 17.1 Packet Pg. 241 Attachment: Revision Request for City Attorney's Office (3743 : 2016 Budget) Fund: Business Object Unit Account Object Description Subsidiary Subledger Amount Remark (Optional) Revenue: Revenue don't match Funding Amount on the Exception Request Form Expenses: 500100 Salary Salary $ 53,560 500100 Benefits Multiple Accounts $ 17,882 500100 511020 Hourly $ 35,000 500100 535010 Construction Services $ 38,558 500100 544020 Conference and Travel $ 17,000 2016 Budget Revision Account Detail 100 - GENERAL FUND 17.1 Packet Pg. 242 Attachment: Revision Request for City Attorney's Office (3743 : 2016 Budget) 2016 Annual Appropriation Ordinance Darin Atteberry, Mike Beckstead, and Lawrence Pollack 2016 ANNUAL APPROPRIATION City of Fort Collins Council Meeting November 3, 2015 ATTACHMENT 2 17.2 Packet Pg. 243 Attachment: Powerpoint presentation (3743 : 2016 Budget) 2 2016 Annual Appropriation REFLECTS COMMUNITY NEEDS & 2015 COUNCIL RETREAT PRIORITIES 17.2 Packet Pg. 244 Attachment: Powerpoint presentation (3743 : 2016 Budget) 3 2016 Annual Appropriation INFRASTUCTURE INVESTMENTS 17.2 Packet Pg. 245 Attachment: Powerpoint presentation (3743 : 2016 Budget) 4 2016 Annual Appropriation IMPROVED INTERNAL SYSTEMS & LEVERAGING RESOURCES 17.2 Packet Pg. 246 Attachment: Powerpoint presentation (3743 : 2016 Budget) 5 2016 Annual Appropriation HIGH QUALITY SERVICE & STEWARDSHIP OF CITY ASSETS 17.2 Packet Pg. 247 Attachment: Powerpoint presentation (3743 : 2016 Budget) − Spring / Summer 2014: City continued use of the Budgeting for Outcomes (BFO) process − November 2014: City Council approved the City’s 2015- 16 Biennial (two-year) Budget − August / September 2015: The 2016 Budget Revisions were reviewed by the Council Finance Committee and at a Council Work Session Budget Process Overview 6 17.2 Packet Pg. 248 Attachment: Powerpoint presentation (3743 : 2016 Budget) − 2015 Council Retreat priorities − Projected revenue from the renewal of the ¼ cent street maintenance tax − Capital project and other needs not known at the time of the adoption of the 2015-16 Budget − Fiduciary responsibilities in the Self Insurance Fund and the Benefits Fund − Maintaining fund balances to support future needs and economic uncertainty 2016 Budget Revision Objectives 7 17.2 Packet Pg. 249 Attachment: Powerpoint presentation (3743 : 2016 Budget) The following changes were made since being reviewed at September 15 Council Work Session: − Added $325K for Operations and Maintenance Community Recycling Center − Added $23.8K contribution for the Aircraft Rescue and Fire Fighting (ARFF) staff and equipment required for the Fort Collins-Loveland Airport 2016 Budget Revision Changes 8 17.2 Packet Pg. 250 Attachment: Powerpoint presentation (3743 : 2016 Budget) 2016 Proposed Net City Budget Original Amended 2016 2016 Change Operations $479.3 $496.8 $17.6 Debt Service 21.6 21.6 0.0 Capital* 35.5 48.0 12.5 Total City Appropriations** $536.4 $566.5 $30.1 General Improvement District (GID) #1, 15 ($0.2) ($0.2) $0.0 Urban Renewal Authority (URA) (4.9) (2.9) 2.0 Internal Service Funds (66.7) (70.4) (3.7) Less Transfers to Other Funds (41.3) (44.6) (3.3) Net City Budget $423.3 $448.4 $25.1 * Capital dollars reflect non-lapsing capital project budgets ** This includes GID and URA which are appropriated in separate ordinances. The change in Total City Appropriations of $30.1M is the net of the increase in the 2016 City appropriation of $32.1M and a reduction in the 2016 URA appropriation of $2.0M 9 17.2 Packet Pg. 251 Attachment: Powerpoint presentation (3743 : 2016 Budget) 2016 Budget Changes 10 $ in Millions General Fund Ongoing General Fund One- Time KFCG Transport ation Other Utililities Total Revenue Update $ 3.1 $ 8.9 $ 9.8 $ 15.2 $ 12.5 $ 9.2 $ 58.6 Recommended Budget Revisions 1.9 2.2 1.4 7.9 9.5 9.2 32.1 Net Impact $ 1.2 $ 6.6 $ 8.4 $ 7.3 $ 3.0 $ (0.0) $ 26.6 17.2 Packet Pg. 252 Attachment: Powerpoint presentation (3743 : 2016 Budget) ‒ 2016 Budget Revision Requests: $32.1M o Ongoing: $14.5M o One-Time: $17.6M ‒ 2016 Budget Revisions in General Fund: $4.1M o Ongoing: $1.9M o One-Time: $2.2M 2016 Budget Revisions 11 Note: The amounts above include transfers between funds. Also, the change in Total City Appropriations of $30.1M (slide 9) is the net of the increase in the 2016 City appropriation of $32.1M and a reduction in the 2016 URA appropriation of $2.0M. 17.2 Packet Pg. 253 Attachment: Powerpoint presentation (3743 : 2016 Budget) 2016 Proposed Budget by Outcome Total $566.5 million - Wastewater - Natural Areas - Environmental Services - Police -Fire - Water - Internal Services -Stormwater - Administration - Benefits - Equipment Fund Note: The total of $566.5M includes $52.0M for items like transfers between funds, debt service, payments to retirees and insurance costs. Economic Health, $147.2 Safe Community, $127.1 High Performing Government, $93.4 Transportation, $56.0 Environmental Health, $47.7 Culture and Recreation, $36.8 Community and Neighborhood Livability, $6.3 12 - Development Review - Economic Programs -Electric 17.2 Packet Pg. 254 Attachment: Powerpoint presentation (3743 : 2016 Budget) ‒ Adopted 2015-16 Budget o www.fcgov.com/budget ‒ Financial Transparency o www.fcgov.com/openbook ‒ Various Financial Reports o www.fcgov.com/finance ‒ Community Dashboard o www.fcgov.com/dashboard Online Financial Resources 13 17.2 Packet Pg. 255 Attachment: Powerpoint presentation (3743 : 2016 Budget) ORDINANCE NO. 139, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS BEING THE ANNUAL APPROPRIATION ORDINANCE RELATING TO THE ANNUAL APPROPRIATIONS FOR THE FISCAL YEAR 2016; AMENDING THE BUDGET FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2016, AND ENDING DECEMBER 31, 2016; AND FIXING THE MILL LEVY FOR FISCAL YEAR 2016 WHEREAS, on November 18, 2014, the City Council adopted on second reading Ordinance No. 153, 2014, approving an amended biennial budget for the years beginning on January 1, 2015, and January 1, 2016, and appropriating funds for fiscal year 2015; and WHEREAS, the City Manager has submitted to the City Council proposed amendments to the 2016 budget adopted by the City Council in Ordinance No. 153, 2014; and WHEREAS, Article V, Section 4, of the City Charter requires that, before the last day of November of each fiscal year, the City Council shall appropriate, on a fund basis and by individual project for capital projects and federal or state grant projects, such sums of money as it deems necessary to defray all expenditures of the City during the ensuing fiscal year, based upon the budget as approved by the City Council; and WHEREAS, Article V, Section 5, of the City Charter provides that the annual appropriation ordinance shall also fix the tax levy upon each dollar of the assessed valuation of all taxable real property within the City, such levy representing the amount of taxes for City purposes necessary to provide for payment during the ensuing fiscal year for all properly authorized expenditures to be incurred by the City, including interest and principal of general obligation bonds; and WHEREAS, Article XII, Section 6, of the City Charter permits the City Council to fix, establish, maintain, and provide for the collection of such rates, fees, or charges for water and electricity, and for other utility services furnished by the City as will produce revenues sufficient to pay into the General Fund in lieu of taxes on account of the City-owned utilities such amount as may be established by the City Council; and WHEREAS, Article V, Section 10, of the City Charter authorizes the City Council to transfer by ordinance any unexpended and unencumbered appropriated amount or portion thereof from one fund or capital project to another fund or capital project, provided that the purpose for which the transferred funds are to be expended remains unchanged; the purpose for which the funds were initially appropriated no longer exists; or the proposed transfer is from a fund or capital project in which the amount appropriated exceeds the amount needed to accomplish the purpose specified in the appropriation ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Packet Pg. 256 Section 1. That the City Council, having reviewed the City Manager's recommended changes to the A2016 Proposed Appropriations@ section of the Fort Collins 2015 and 2016 Biennial Budget (the “Biennial Budget@), as shown on pages 45 through 47 thereof, a copy of which is on file with the office of the City Clerk, hereby amends the Biennial Budget to reflect the following changes and adopts said Biennial Budget as amended: 2016 Proposed Appropriations Appropriation per Adopted Budget Amount of Adjustment As Adjusted GENERAL FUND $129,111,563 $4,097,430 $133,208,993 ENTERPRISE FUNDS Golf $3,372,848 $147,294 $3,520,142 Light & Power Operating Total $136,366,109 $460,568 $136,826,677 Capital Projects: Art in Public Places 70,476 $0 70,476 Major Duct Banks and Circuits Funding Increase 0 4,950,000 4,950,000 Capital Projects Total 70,476 4,950,000 5,020,476 Total Light & Power $136,436,585 $5,410,568 $141,847,153 Storm Drainage Operating Total $11,308,810 $64,596 $11,373,406 Capital Projects: 0 Art in Public Places 35,700 35,700 Cooper Slough and Boxelder Basins 350,000 350,000 Stormwater Basin Improvements 2,500,000 2,500,000 Stormwater Developer Repays 100,000 100,000 Stormwater Drainage System Improvements 370,000 370,000 Stormwater Master Plan 275,000 275,000 Stream Restoration 700,000 700,000 Capital Projects Total 4,330,700 4,330,700 Total Storm Drainage $15,639,510 $64,596 $15,704,106 Wastewater Operating Total $18,307,774 $104,920 $18,412,694 Capital Projects: Art in Public Places 78,035 78,035 Collection System Replacement 1,602,000 1,602,000 Ultra-Violet Disinfection System 5,900,000 5,900,000 Water Reclamation Replacement Program 301,500 3,465,000 3,766,500 Capital Projects Total 7,881,535 3,465,000 11,346,535 Total Wastewater $26,189,309 $3,569,920 $29,759,229 Water Operating Total $25,797,076 $113,481 $25,910,557 Capital Projects: Art in Public Places 148,400 148,400 Chlorine Contact Basin 9,720,000 9,720,000 Water Distribution System Replacement 2,300,000 2,300,000 Packet Pg. 257 Water Meter Replacement & Rehabilitation 800,000 800,000 Water Production - Energy Optimization 300,000 300,000 Water Production Replacement Program 1,581,182 1,581,182 Water Source of Supply Replacements 750,000 750,000 Capital Projects Total 15,599,582 0 15,599,582 Total Water $41,396,658 $113,481 $41,510,139 TOTAL ENTERPRISE FUNDS $223,034,910 $9,305,859 $232,340,769 INTERNAL SERVICE FUNDS Benefits $25,335,636 $2,737,614 $28,073,250 Data & Communications 10,520,742 207,884 10,728,626 Equipment 12,235,244 32,988 12,268,232 Self Insurance 3,547,205 614,340 4,161,545 Utility Customer Service & Administration 17,306,739 135,692 17,442,431 TOTAL INTERNAL SERVICE FUNDS $68,945,566 $3,728,518 $72,674,084 SPECIAL REVENUE & DEBT SERVICE FUNDS Capital Improvement Expansion $2,329,828 $1,100,000 $3,429,828 Capital Leasing Corporation 4,619,279 4,619,279 Cemeteries 644,195 23,577 667,772 Conservation Trust Operating Total - Administration & Parks Maint $281,570 $281,570 Capital Projects: Trail Acquisition/Development 1,188,664 1,188,664 Capital Projects Total 1,188,664 0 1,188,664 Total Conservation Trust $1,470,234 $0 $1,470,234 Cultural Services & Facilities Operating Total $3,889,319 $32,302 $3,921,621 Capital Projects - Art in Public Places 50,815 50,815 Total Cultural Services & Facilities $3,940,134 $32,302 $3,972,436 General Employees' Retirement $4,127,950 4,127,950 Keeping Fort Collins Great Operating Total $23,839,384 $1,141,210 $24,980,594 Capital Projects: City Bridge Program 2,092,592 2,092,592 Lemay/Vine Intersections 500,000 500,000 Lincoln Plan Neighborhood 176,000 176,000 Pedestrian Sidewalks/ADA 150,000 150,000 Additional Bus Stop Imp for ADA Accessibility 0 275,000 275,000 Capital Projects Total 2,918,592 275,000 3,193,592 Total Keeping Fort Collins Great $26,757,976 $1,416,210 $28,174,186 Museum $1,055,229 $12,566 $1,067,795 Natural Areas 11,366,467 180,317 11,546,784 Neighborhood Parkland Fund Operating Total - Administration $488,270 $488,270 Capital Projects: New Park Site Development 400,000 400,000 Packet Pg. 258 New Park Site Acquisition 300,000 300,000 Rossborough Park 110,000 110,000 Trailhead Park 300,000 300,000 Capital Projects Total 1,110,000 1,110,000 Total Neighborhood Parkland $1,598,270 $1,598,270 Parking $2,480,368 $70,278 $2,550,646 Perpetual Care 20,311 $20,311 Recreation 6,856,477 82,472 6,938,949 Sales & Use Tax 7,569,302 288,523 7,857,825 Street Oversizing 2,640,738 2,640,738 Timberline/Prospect SID 54,000 54,000 Transit Services 13,604,480 89,084 13,693,564 Transportation Services 16,436,787 7,898,203 24,334,990 SPECIAL REVENUE & DEBT $107,572,025 $11,193,532 $118,765,557 SERVICE FUNDS CAPITAL PROJECTS FUND Operating Total 230,098 230,098 General City Capital Projects: City Bridge Program 207,408 207,408 Northeast Community Park 450,000 450,000 Railroad Crossing Replacement 100,000 100,000 Southeast Community Park 1,200,000 1,200,000 Traffic Calming 400,000 400,000 Prospect Road and College Avenue Intersection Imp 0 2,700,000 2,700,000 Southeast Comm Park - Water Rights & Construction 0 1,100,000 1,100,000 Total General City Capital Projects $2,357,408 $3,800,000 $6,157,408 TOTAL CAPITAL PROJECTS FUND $2,587,506 $3,800,000 $6,387,506 TOTAL CITY FUNDS $531,251,570 $32,125,339 $563,376,909 Section 2. That there is hereby appropriated out of the revenues of the City, for the fiscal year beginning January 1, 2016, and ending December 31, 2016, the sum of FIVE HUNDRED SIXTY-THREE MILLION THREE HUNDRED SEVENTY-SIX THOUSAND NINE HUNDRED NINE DOLLARS ($563,376,909) to be raised by taxation and otherwise, which sum is deemed by the City Council to be necessary to defray all expenditures of the City during said budget year, to be divided and appropriated for the purposes shown in Section 1 above. Section 3. Mill Levy. a. That the 2016 mill levy rate for the taxation upon each dollar of the assessed valuation of all the taxable real property within the City of Fort Collins as of December 31, 2015, shall be 9.797 mills, which levy represents the amount of taxes for City purposes necessary to provide for payment during the aforementioned budget year of all properly authorized expenditures to be incurred by the City, including interest and principal of general obligation bonds. Packet Pg. 259 b. That the City Clerk shall certify this levy of 9.797 mills to the County Assessor and the Board of Commissioners of Larimer County, Colorado, in accordance with the applicable provisions of law, as required by Article V, Section 5, of the City Charter. Introduced, considered favorably on first reading, and ordered published this 3rd day of November, A.D. 2015, and to be presented for final passage on the 17th day of November, A.D. 2015. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 17th day of November, A.D. 2015. _________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 260 Agenda Item 18 Item # 18 Page 1 AGENDA ITEM SUMMARY November 3, 2015 City Council STAFF Randy Reuscher, Utility Rate Analyst Lance Smith, Strategic Financial Planning Manager SUBJECT Items Relating to Utility Rates, Fees and Charges for 2016. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 140, 2015, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Electric Rates, Fees and Charges. B. First Reading of Ordinance No. 141, 2015, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Electric Capacity Fees. C. First Reading of Ordinance No. 142, 2015, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Water Rates, Fees and Charges. D. First Reading of Ordinance No. 143, 2015, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Water Plant Investment Fees. E. First Reading of Ordinance No. 144, 2015, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Wastewater Rates, Fees and Charges. (Option A or Option B) F. First Reading of Ordinance No. 145, 2015, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Sewer Plant Investment Fees. G. First Reading of Ordinance No. 146, 2015, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Stormwater Plant Investment Fees. The purpose of this item is for Council to consider adopting rate changes for electric and wastewater rates, and electric capacity fees, water plant investment fees (PIFs), wastewater PIFs and stormwater PIFs, along with other Code clarifications and formatting changes. 18 Packet Pg. 261 Agenda Item 18 Item # 18 Page 2 STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. Staff recommends adoption of Option A for Ordinance No. 144, 2015, revising wastewater rates. BACKGROUND / DISCUSSION Proposed Monthly Utility Rate Adjustments The recommended 2016 rate changes are consistent with the City Manager’s Recommended 2015-16 Budget. Individual customer charges will be the same for all electric customers and vary by rate class for wastewater rates. All proposed rates would be effective for meter readings on or after January 1, 2016. Proposed Adjustment of Development Fee Components of Rates, Fees, and Charges Water Plant Investment Fees, Wastewater Plant Investment Fees and Stormwater Plant Investment Fees (collectively, PIFs), are charged to new development desiring to connect to the City’s water and wastewater utility facilities, and that will benefit from the City’s stormwater facilities. City Code provisions establishing these PIFs currently refer to “growth-related capital expansion costs” of the operational utility facilities, but do not specifically include “growth-related” capital costs for Utilities’ administrative facilities that are also part of the overall cost of and required in providing these utility services to new development. The proposed changes include Code language that specifically addresses growth-related capital costs of Utilities’ administrative facilities in the various PIFs, which overall had minimal impacts to the proposed fees. The proposed increases include these growth-related capital costs for 2016 for water, wastewater, and stormwater PIFs. PIFs are impact fees calculated in accordance with legal standards using models that are designed to defray the cost of each particular utility service rendered, reflect amounts reasonably related to the overall cost of the services, and establish fees not unreasonably in excess of such cost. The models are used to calculate these PIFs at an appropriate level that is no greater than necessary to defray the quantified and reasonable projected impacts on capital facilities, caused by new development. Other Proposed Modifications to Chapter 26 of the City Code The Ordinances modify the formatting of provisions establishing the rates, fees and charges in an effort to make year-to-year changes to rate ordinances easier and improve the readability of Code. These changes put the specific rates, fees and charges that are adjusted annually in table formats, so future ordinances will only change the values in the tables, unless other code modifications are proposed. Electric Rates and Electric Capacity Fee (ECF) Electric Rates - First Reading of Ordinance No. 140, 2015, Amending Chapter 26 of the City Code to Revise Electric Rates, Fees and Charges. Electric rates are proposed to increase 3.2% at the retail level in 2016, and are a pass-through of the wholesale rate increase from Platte River Power Authority, which will increase the annual wholesale expense by approximately $3.9 million. The increase is slightly larger than the 1.9% anticipated estimate in the 2015-16 biennial budget. Drivers for the wholesale increase noted by Platte River Power Authority include higher fuel costs, lower surplus sales, and higher expenses related to the expansion of existing energy efficiency programs. The wholesale increase will be applied evenly to both the energy and demand components, and the percentage increase will be the same across the summer and non-summer months. 18 Packet Pg. 262 Agenda Item 18 Item # 18 Page 3 No additional increase is planned for distribution facilities’ costs; however, such an increase may be necessary in the 2017-18 budget cycle. More information will be available as the 10-year capital improvement plan is developed and asset management is fully implemented in this utility. The impact at the retail level would be the same percentage change for all electric rate classes. The cost of service study was last updated in 2014 and therefore no variance in the increase by rate class is needed for 2016. The cost of service will be updated again in 2016. An average residential customer would see an increase in their monthly electric bill of $2.28 per month during the summer months, while a small commercial customer may see an increase of $6.57 per month, as shown in the examples below. Current Estimated $ % Rate Class Consumption 2015 2016 Increase Increase Residential Summer - 700 kWh / month $71.40 $73.69 $2.28 3.2% Small Commercial Summer - 2000 kWh / month $205.22 $211.79 $6.57 3.2% Electric Bill Impacts Electric Capacity Fee (ECF) - First Reading of Ordinance No. 141, 2015, Amending Chapter 26 of the City Code to Revise Electric Capacity Fees. The electric capacity fees are updated on an annual basis and are a one-time charge for development within the electric service territory. A typical residential lot developed in 2016 would not see a fee increase, while a typical commercial development fee would increase by 3.3%, as shown in the example below. The commercial increase is due mostly to higher costs related to substation transformers and the allocation associated with new development, as well as increased duct bank costs for commercial development. These increases were partially offset by lower costs for fault indicators, conduit and cable. There are fluctuations in some of the individual charges for a residential development as well, but overall no change over the 2015 fee for a typical residential lot. Current 2015 Proposed 2016 $ Change % Change $3,554 $3,554 $0 0.0% Current 2015 Proposed 2016 $ Change % Change $32,624 $33,695 $1,070 3.3% Residential Single Family Lot Criteria - 9,200 square feet, 83 feet of street frontage, 150 amp service, 4/0 secondary service Commercial Development Criteria -82,000 sq feet, 190 ft of street frontage, 250 ft primary service, 600 amps, 208 Volt, 3-phase, 1 transformer Water Rates and Water Plant Investment Fee Water Rates - First Reading of Ordinance No. 142, 2015, Amending Chapter 26 of the City Code to Revise Water Rates, Fees, and Charges. No rate increase is being proposed for monthly water rates in 2016. This ordinance modifies the formatting of provisions establishing the rates, fees and charges in an effort to make year-to-year changes to rate ordinances easier and improve the readability of code. These changes put the specific rates, fees and charges that are adjusted annually in table formats, so future ordinances will only change the values in the tables, unless other code modifications are proposed. 18 Packet Pg. 263 Agenda Item 18 Item # 18 Page 4 Water Plant Investment Fee (PIF) - First Reading of Ordinance No. 143, 2015, Amending Chapter 26 of the City Code to Revise Water Plant Investment Fees. The water PIF model is updated every two years and the 2014 model was recently updated for 2016. The overall gallon per day (gpd) charge increased from $4.43/gpd to $4.66/gpd. The increase is due to additional capital projects completed over the past few years, as well as increased system valuation. The specific impacts to customers for each rate class are reduced due to lower base water usage during the winter months and lower peak water use during the summer months, as compared to previous years. The fee for a residential single family customer would increase by $25 over the 2015 fee, while the duplex and multi- family fee would decrease slightly, as shown in the examples below. The fees for commercial customers would increase between 1.5 and 3.5%, according to the requested tap size, as shown in the examples below. Rate Class Criteria 2015 2016 $ Change % Change Residential Single Family 8600 sq ft $3,499 $3,524 $25 0.7% Duplex & Multi-family 3435 sq ft $1,390 $1,379 ($11) -0.8% Commercial 3/4 Inch by tap size $7,000 $7,180 $180 2.6% 1 Inch by tap size $19,050 $19,710 $660 3.5% 1 1/2 Inch by tap size $41,600 $42,220 $620 1.5% 2 Inch by tap size $64,410 $66,680 $2,270 3.5% Water Plant Investment Fee (WPIF) Wastewater Rates and Wastewater Plant Investment Fee Wastewater Rates - First Reading of Ordinance No. 144, 2015, Amending Chapter 26 of the City Code to Revise Wastewater Rates, Fees, and Charges. (Option A or Option B) Staff is recommending a 3% overall increase to the wastewater fund revenue in 2016, which could be collected in one of the two options below. Staff is recommending Option A. Capital project costs at the wastewater treatment plant related to regulatory requirements are the main driver for the overall increase. This increase is the same amount approved in the 2015-16 biennial budget. Option A blends the three residential class increases together for a 2.5% increase to each residential class, while the commercial class would increase by 4.5%. Option B adjusts each rate class according the outputs from the cost of service model. The cost of service model was updated in 2015 and rather than applying the 3% overall increase to all rate classes, different percent changes are proposed, while keeping the overall increase to 3% for the wastewater fund. Staff is recommending Option A, shown in the table below, due to some volatility in the wastewater cost of service model outputs in recent years. In the 2013 model, rates were lowered for both duplex and commercial customers for 2014. This is related to fluctuating consumption by rate class and budget levels from year-to-year, versus the exact outputs from the model, as set forth in Option B, for 2016. Option A includes a smoothing of the residential rate class adjustments at a 2.5% increase for 2016, while commercial customers would see a 4.5% increase, as shown in the examples below. 18 Packet Pg. 264 Agenda Item 18 Item # 18 Page 5 Rate Class Option A: Smoothed Option B: COS Residential Single Family 2.5% 1.3% Duplex 2.5% 2.2% Multi-family (per unit) 2.5% 3.6% Commercial 4.5% 6.3% Wastewater Rates The impacts to a single family customer in 2016 would be approximately $0.86 per month under the proposed Option A, while a commercial customer with a 2 inch connection may see a $10.12 increase per month, as shown in the examples below. Current Estimated $ % Rate Class Consumption 2015 2016 Increase Increase Winter Quarter Average (WQA) 4,800 gallons / month 2 inch meter 50,000 gallons / month Wastewater Bill Impacts Residential $34.21 $35.07 $0.86 2.5% Commercial $224.84 $234.96 $10.12 4.5% Wastewater Plant Investment Fee (PIF) - First Reading of Ordinance No. 145, 2015, Amending Chapter 26 of the City Code to Revise Wastewater Plant Investment Fees. The wastewater PIF model is updated every two years and the 2014 model was recently been updated for 2016. The PIF charge on a per gallon per day (gpd) basis increased from $12.35/gpd to $13.98/gpd due to increased system valuation related to the collection system, as well as the completion of capital projects at the treatment plant that raise the value for a customer to buy-in. The fee for a residential single family customer would increase by $410 in 2016, while the duplex and multi- family fee would increase by $50 per connection, as shown below in the following illustrative examples. The fees for commercial customers would increase between $350 and $3,520, depending on the corresponding water meter size requested, as shown in the examples below. Rate Class 2015 Fee 2016 Fee $ Change % Change Residential Single Family $3,090 $3,500 $410 13% Duplex & Multi-family $2,470 $2,520 $50 2% Commercial 3/4 Inch $6,550 $7,130 $580 9% 1 Inch $15,440 $17,200 $1,760 11% 1 1/2 Inch $29,890 $33,410 $3,520 12% 2 Inch $58,790 $59,140 $350 1% Wastewater Plant Investment Fee The most recent peak day flows decreased for most rate classes, other than residential single family customers, as compared to 2015 (shown below). Therefore, the change to the fee from $12.35 to $13.98 per 18 Packet Pg. 265 Agenda Item 18 Item # 18 Page 6 gpd collected for a wastewater connection is partially offset for those classes with flows that decreased, as compared to what they would have paid in 2016 if flows remained constant. The residential single family class peak day flows remained constant at 250 gpd, while other classes decreased, with duplex and multi-family dropping by 10% and commercial 2 inch flow dropping by 11%. Rate Class 2015 Peak Volume (gpd) 2016 Peak Volume (gpd) GPD Change % Change Residential Single Family 250 250 0 0% Duplex & Multi-family 200 180 -20 -10% Commercial 3/4 Inch 530 510 -20 -4% 1 Inch 1,250 1,230 -20 -2% 1 1/2 Inch 2,420 2,390 -30 -1% 2 Inch 4,760 4,230 -530 -11% Wastewater Peak Volume Stormwater Rates and Stormwater Plant Investment Fee Stormwater Rates - No rate increase is being proposed for monthly stormwater rates in 2016. Stormwater Plant Investment Fee (PIF) - First Reading of Ordinance No. 146, 2015, Amending Chapter 26 of the City Code to Revise Stormwater Plant Investment Fees. The stormwater PIF model is updated every two years. Staff recently updated the model for 2016 and is recommending a 5.1% increase to this one-time fee for new development within the service territory. The increased “per acre charge” would change from $7,817 to $8,217 and is related to increased system equity pertaining to investments made in stormwater capital projects in recent years and increased system replacement costs due to inflationary factors that raise the value of the stormwater system. The amount paid by a builder/developer is calculated by taking the gross acres developed (plus common area and right-of-way allocation), times the base rate, times the runoff coefficient for each specific site developed. As shown in the examples below, the impact to the 2016 increase for a typical single family construction project would increase by $68 over the 2015 fee amount. A typical commercial development would increase by $320 for a one acre lot, as compared to the 2015 fee. Rate Class 2015 2016 $ Change % Change Gross Area Developed (sq ft) 8,600 8,600 Common Area Allocation (sq ft) 6,156 6,156 Base Rate (per acre*) $7,817 $8,217 Runoff Coefficient 0.5 0.5 Total Fee $1,324 $1,392 $68 5.1% Gross Area Developed (sq ft) 43,560 43,560 Base Rate (per acre*) $7,817 $8,217 Runoff Coefficient 0.8 0.8 Total Fee $6,254 $6,574 $320 5.1% * One acre equals 43,560 sq ft Commercial Stormwater Plant Investment Fee Residential 18 Packet Pg. 266 Agenda Item 18 Item # 18 Page 7 CITY FINANCIAL IMPACTS Summary Utility Bill Comparisons A typical residential customer, based on average use in a summer month, could expect to see an increase of just more than $3.00 per month on their total utility bill for all four services. As there are no changes to water or stormwater rates in 2016, the impact would be mostly from the electric rate increase, with the remaining portion related to wastewater increases. The overall impact during a summer month would be less than 2% for a residential customer, on average. Current Estimated $ % 2015 2016 Increase Increase Electric 700 kWh/mo Stormwater 8,600 sq.ft. lot, light runoff Wastewater 4,800 gal/mo WQA Water 15,000 gal/mo Total Estimated Average Monthly Utility Bill $178.04 $181.18 $3.14 1.8% $58.16 $58.16 $0.00 0.0% $14.26 $14.26 $0.00 0.0% $34.21 $35.07 $0.86 2.5% Typical Residential Customer – Monthly Utility Bill (Summer Month) $71.40 $73.69 $2.28 3.2% Summary Plant Investment Fee Comparisons The summary table below shows the overall impacts for a typical residential development. The fees in 2016 for all four services would increase by approximately $500, or 4.4%. 2015 2016 $ Change % Change Electric Capacity Fee $3,554 $3,554 $0 0.0% Water Plant Investment Fee $3,499 $3,524 $25 0.7% Wastewater Plant Investment Fee $3,090 $3,500 $410 13.3% Stormwater Plant Investment Fee $1,324 $1,392 $68 5.1% Total $11,467 $11,970 $503 4.4% Development Fee Impacts - Single Family Residential Customer Electric rate increases will partially fund enhancements to energy efficiency programs at the wholesale level. Wastewater rate increases provide funding for environmental regulatory compliance. BOARD / COMMISSION RECOMMENDATION At its September 3, 2015, meeting, the Energy Board voted unanimously to support the 2016 electric rate increase. (Attachment 1) 18 Packet Pg. 267 Agenda Item 18 Item # 18 Page 8 At its September 17, 2015, meeting, the Water Board voted unanimously to support the proposed 2016 wastewater rate increase, as well as the water, wastewater, and stormwater plant investment fee increases. (Attachment 2) PUBLIC OUTREACH Notice of the proposed electric rate changes was published in the Coloradoan, and a mailing was sent to all city electric customers residing outside of the city limits in accordance with state requirements. Staff plans to conduct outreach to all customers following the adoption of the Ordinances through mailings, face-to-face meetings and social media. A public meeting will be held in November for commercial Key Account businesses. ATTACHMENTS 1. Energy Board Minutes - September 3, 2015 (PDF) 2. Water Board Minutes - September 17, 2015 (PDF) 3. Powerpoint presentation (PDF) 18 Packet Pg. 268 Excerpt from Approved Energy Board Minutes September 3, 2015 2016 Utility Rates (Attachments available upon request) Randy Reuscher presented an overview of the electric rate increase, which is required in 2016 due to an increase in wholesale purchase power rates from Platte River Power Authority (PRPA) of 4.5%. The projected increase at the retail level for Fort Collins Utilities electric customers is 3.2%. An electric cost-of-service study was completed in 2014 and the increase is applied evenly to all rate classes for 2016. Discussion Highlights A board member inquired whether the increase is also due to maintenance of electricity infrastructure. Mr. Reuscher replied that it includes maintenance and capital costs. The board member commented that at a past meeting, aging underground infrastructure was discussed and inquired whether increased maintenance costs are built into these models. Mr. Reuscher replied that they are. Platte River Power Authority (PRPA) Planning and Customer Service Director John Bleem commented that energy prices have dropped, especially natural gas, due to fracking, and stated it’s a different market than a few years ago. The low energy prices mean Platte River receives less revenue from surplus sales. Surplus sales revenue offsets revenue that otherwise must come from Platte River’s municipalities. A board member inquired about a comparison between Fort Collins and Longmont. Mr. Reuscher replied that the City of Longmont doesn’t have seasonal rates. A board member commented that the goal should be to eventually talk about billing rather than rates, and another board member agreed, saying conservation is meaningless otherwise. Customers may use a lower quantity of energy that’s more expensive but overall the bill should be less due to using less energy. Board Member Margaret Moore moved for the Energy Board to approve the electric rate increases for 2016 of 3.2% that will be presented to City Council for first reading on November 3. Vice Chairman Friedman seconded the motion. Board Member Behm recommended an amendment to “recommend approval” rather than approve since the board is not authorized to approve, only make recommendations to City Council. Board Member Moore agreed to amend the motion. Board Member Margaret Moore moved for the Energy Board to recommend approval of the electric rate increases for 2016 of 3.2% that will be presented to City Council for first reading on November 3 pending. Board members recommended adding language suggested by staff “pending final approval of wholesale increases at PRPA board meeting in October.” Board Member Moore agreed to the revisions. 18.1 Packet Pg. 269 Attachment: Energy Board Minutes - September 3, 2015 (3714 : Rate Changes) Board Member Margaret Moore moved for the Energy Board to recommend approval of the electric rate increases for 2016 of 3.2% that will be presented to City Council for first reading on November 3 pending final approval of wholesale increases at the PRPA board meeting in October. Vote on the motion: It passed unanimously, 8-0. 18.1 Packet Pg. 270 Attachment: Energy Board Minutes - September 3, 2015 (3714 : Rate Changes) Excerpt from Approved Water Board Minutes September 17, 2015 2016 Water Utility Rates (Attachments available upon request) Utilities Rate Analysts Randy Reuscher and Justin Fields presented proposed changes to Utilities rates and Plant Investment Fees (PIFs). A first reading of this item is scheduled for City Council on November 3; staff requests the board make a recommendation to Council. Staff proposed no increase in 2016 rates for water and stormwater, and a 3% increase for wastewater, relative to 2015. Staff proposed 2016 PIF increases for water (5.2%), stormwater (5.1%), and wastewater (13.0%). The proposed increase in the water and wastewater PIF is designed to partially offset the loss of revenue from decreased base-level and peak demand. The proposed increase in the stormwater PIF reflects increased equity in the system since the 2013 valuation. The proposed 3% wastewater rate increase would be distributed among four customer classes. Staff presented two options, Option A Smoothed and Option B Cost of Service. Option A is preferred by staff because it captures the underlying trends in the cost of service for each customer class, whereas Option B reflects year-to-year variability. Under Option A, rate increases would be 2.5% for all customer classes except commercial, which would be 4.5%. Under Option B, rates increases would range from 1.3% (single-family residential) to 6.3% (commercial). The overall 13.0% increase in the per gallon wastewater PIF reflects the valuation performed by Utilities’ asset management program. A different methodology was previously used for valuation. The recommended PIF adjustment would vary among customer classes. Duplex and multi-family would be 2.0%. Commercial would range from 1.0-12.0% depending on connection size. The charge for connections >2” is calculated based on flow and water quality parameters biochemical oxygen demand (BOD) and total suspended solids (TSS). Discussion Highlights Water A board member inquired why there is a distinction between a duplex and multifamily for the PIF. Staff explained it was data-driven. Staff replied that there isn’t a difference in the PIF charge between the two classes, but there is for the monthly billing charges, so it is kept separate in the PIF model for consistency and to monitor potential differences in customer usage patterns. Wastewater A proposed rate increase would maintain reserves. Two options (see explanation in summary above.) 18.2 Packet Pg. 271 Attachment: Water Board Minutes - September 17, 2015 (3714 : Rate Changes) A board member inquired whether there was consistency between previous Cost-of- Service (COS) studies and the most recent study. Staff responded that there is not a high level of consistency. The COS is a guideline or a template, and the lack of consistency is not a surprise. Staff prefers Option A. A board member inquired how the consumption numbers mesh with numbers in the conservation plan, which indicate decreased use. Staff responded that this analysis was conducted using peak day use. A board member inquired about use for specific homes that may not meet modeling expectations. Staff explained that models account for typical situations but are not perfect. A board member commented that the big message is that customers are using less, so the per-unit cost must be higher. The other key point is that Utilities is investing in infrastructure, which has value and must be paid for. A timeline associating rate increases and drivers would be helpful. A running average of rate increases would help explain the key issues and provide a basis for the smoothing performed in Option A). A board member inquired about the impact of greywater on rates. Staff agreed that they would need to look at impacts, but suspect the impact would be small in magnitude. A board member inquired about steep wastewater rate increases in the last several years and wondered how the City compares to its peers. Staff quantified rate increase since 2000. Staff explained that the rapid increase beginning around 2008 can be attributed to the failure of the Mulberry plant. The City's current approach is designed to avoid drastic rate increases. Stormwater: PIF increase due to capital investments and inflation. A board member inquired if, when tap fees and PIFs for other services are combined, how Fort Collins compares with its peers. Staff explained that most comparisons include water and wastewater but not stormwater. Staff pointed out that one of the reasons the land outside the city limits is cheap is the lack of City services. Fort Collins and Longmont are much cheaper than any other northern Front Range community. Fort Collins is an outlier because of its strong water rights portfolio, infrastructure, and capacity. A board member inquired about the 0% increases for water and stormwater. Staff anticipates increase in 2017-18, but cannot justify a 2016 increase based on current numbers. A board member inquired about the driver for stormwater PIF increases. Staff identified capital projects as the primary driver. Rate increases (or lack thereof) affect the speed at which capital projects can be accomplished and financing decisions. A board member inquired about the unanticipated PIFs received this year and asked what the City will do to ensure that there is adequate funding to carry out projects, even during an economic downturn when there are fewer PIFs? Staff asserted that they are planning for a downturn, and that proper engineering for new work will minimize future repair work. Board Member Alex Maas excused himself from the meeting at 7:05 p.m. 18.2 Packet Pg. 272 Attachment: Water Board Minutes - September 17, 2015 (3714 : Rate Changes) A board member inquired why the waterwater PIF increase is shown at 13% when that is only the proposed change for one class of use. Staff explained that the gallons per day for all customer classes is being multiplied by this number to achieve the appropriate rate increase across all classes of use. A board member inquired about the schedule impacts associated with 0% rate increases. Staff responded that the city will have additional debt capacity as they pay off existing bonds. Staff is having those discussions now for long-term planning. A board member inquired about Low-Impact-Development (LID) requirements, and whether the positive benefits from those investments could help control PIF increases. Staff responded that LID is a different way of managing runoff. Maintenance of infrastructure is still required. A board member expressed concern that the numbers available suggest that under Option A, single family residential would subsidize other classes. Additional information, graphs, etc. would shed additional light. Staff responded that the COS studies can be inconsistent from one year to the next. Board Member Brian Brown made a motion that the Water Board recommends City Council approve the rate and plant investment fee (PIF) changes, either smoothed or cost- of-service, for 2016, as proposed. Board Member Kent Bruxvoort seconded the motion. Discussion Highlights A board member expressed understanding that staff feels like it would be premature to use cost-of-service to specify rates. A board member recommended, for future years, using a long-term average of cost-of- service with a minimum 2% annual increase to account for inflation. The motion was approved unanimously, 8-0. 18.2 Packet Pg. 273 Attachment: Water Board Minutes - September 17, 2015 (3714 : Rate Changes) 1 2016 Utility Rates & Fees City Council 1st Reading November 3, 2015 ATTACHMENT 3 18.3 Packet Pg. 274 Attachment: Powerpoint presentation (3714 : Rate Changes) 2 Electric Rates q 2016 revenue increase of 3.2% retail Ø Wholesale costs – expected to go by $3.9M in 2016 Ø higher fuel costs, lower surplus sales, expansion of existing energy efficiency programs Ø Increase does not include climate action plan (CAP) costs Ø Distribution costs - no additional increase planned Current Estimated $ % Rate Class Consumption 2015 2016 Increase Increase Residential Summer - 700 kWh / month $71.40 $73.69 $2.28 3.2% Small Commercial Summer - 2000 kWh / month $198.50 $211.79 $13.29 6.7% Electric Bill Impacts 18.3 Packet Pg. 275 Attachment: Powerpoint presentation (3714 : Rate Changes) 3 18.3 Packet Pg. 276 Attachment: Powerpoint presentation (3714 : Rate Changes) 4 18.3 Packet Pg. 277 Attachment: Powerpoint presentation (3714 : Rate Changes) 5 18.3 Packet Pg. 278 Attachment: Powerpoint presentation (3714 : Rate Changes) 6 18.3 Packet Pg. 279 Attachment: Powerpoint presentation (3714 : Rate Changes) 7 Wastewater Rates q 2016 overall revenue increase of 3% Ø Two options below - staff recommends Option A Ø Lessen the impact of volatility in the rate models Ø fluctuations in usage patterns across customer classes Ø fluctuations in budgets from year-to-year 18.3 Packet Pg. 280 Attachment: Powerpoint presentation (3714 : Rate Changes) 8 Wastewater Rates 18.3 Packet Pg. 281 Attachment: Powerpoint presentation (3714 : Rate Changes) 9 No increase for 2016 q Water - No rate increase proposed q Stormwater - No rate increase proposed 18.3 Packet Pg. 282 Attachment: Powerpoint presentation (3714 : Rate Changes) 10 Current Estimated $ % 2015 2016 Increase Increase Electric 700 kWh/mo Stormwater 8,600 sq.ft. lot, light runoff Wastewater 4,800 gal/mo WQA Water 15,000 gal/mo Total Estimated Average Monthly Utility Bill $178.04 $181.18 $3.14 1.8% (Summer Month) Typical Residential Customer – Monthly Utility Bill $14.26 $58.16 $58.16 $71.40 $73.69 $34.21 $35.07 $14.26 $2.28 3.2% $0.00 0.0% $0.86 2.5% $0.00 0.0% 18.3 Packet Pg. 283 Attachment: Powerpoint presentation (3714 : Rate Changes) 11 Fort Collins Utilities compared to Other Cities 18.3 Packet Pg. 284 Attachment: Powerpoint presentation (3714 : Rate Changes) 12 Electric Capacity Fee (ECF) Current 2015 Proposed 2016 $ Change % Change $3,554 $3,554 $0 0.0% Current 2015 Proposed 2016 $ Change % Change $32,624 $33,695 $1,070 3.3% Residential Single Family Lot Criteria - 9,200 square feet, 83 feet of street frontage, 150 amp service, 4/0 secondary service Commercial Development Criteria -82,000 sq feet, 190 ft of street frontage, 250 ft primary service, 600 amps, 208 Volt, 3-phase, 1 transformer 18.3 Packet Pg. 285 Attachment: Powerpoint presentation (3714 : Rate Changes) 13 Water Plant Investment Fee (PIF) Ø GPD charge increased from $4.43 to $4.66 / gallon per day (5.2%) Ø Base use (winter) and peak use (summer) has decreased for all classes 18.3 Packet Pg. 286 Attachment: Powerpoint presentation (3714 : Rate Changes) 14 Ø Gallon per day (gpd) charge increased from $12.35 to $13.98 / gpd Wastewater Plant Investment Fee 18.3 Packet Pg. 287 Attachment: Powerpoint presentation (3714 : Rate Changes) 15 Wastewater Plant Investment Fee Ø Lower peak flows partially offset the increase in the $/gpd charge for all classes, except residential single family. 18.3 Packet Pg. 288 Attachment: Powerpoint presentation (3714 : Rate Changes) 16 Stormwater Plant Investment Fee Ø Increased system equity due to capital investments and annual inflationary factors for replacement cost Ø Last fee adjustment was effective January 2014 2015 Base Rate per Acre 2016 Base Rate per Acre $ Change per Developed Acre % Change $7,817 $8,217 $400 5.1% 18.3 Packet Pg. 289 Attachment: Powerpoint presentation (3714 : Rate Changes) 17 Residential Development Fee Summary 2015 2016 $ Change % Change Electric Capacity Fee $3,554 $3,554 $0 0.0% Water Plant Investment Fee $3,499 $3,524 $25 0.7% Wastewater Plant Investment Fee $3,090 $3,500 $410 13.3% Stormwater Plant Investment Fee $1,324 $1,392 $68 5.1% Total $11,467 $11,970 $503 4.4% Development Fee Impacts - Single Family Residential Customer 18.3 Packet Pg. 290 Attachment: Powerpoint presentation (3714 : Rate Changes) Page 1 ORDINANCE NO. 140, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE ELECTRIC RATES, FEES AND CHARGES WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the City Charter to fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses and other obligations of the electric utility, as set forth therein; and WHEREAS, the City purchases bulk wholesale electric power from Platte River Power Authority (“PRPA”) pursuant to an Amended Contract for Supply of Electric Power and Energy, dated September 1, 2010; and WHEREAS, PRPA costs are increasing due to reduced wholesale market prices and surplus sales, increased costs for coal, and increased operating costs for aging plants; and WHEREAS, PRPA will increase the City’s wholesale cost of power approximately 4.5% in 2016; and WHEREAS, the increased wholesale power costs will require an average 3.2% increase in the City’s electric rates; and WHEREAS, the proposed rate increase will vary by customer class based on the cost of service to each class; and WHEREAS, Utilities staff have also identified formatting and maintenance updates to Chapter 26 of the City Code to improve the clarity with which rates are explained; and WHEREAS, the Energy Board considered the proposed electric rates, fees and changes, and language clarifications for 2016 at its October 3, 2015, meeting and recommended approval of the rate changes and City Code updates by an unanimous vote; and WHEREAS, the City Manager and staff have recommended to the City Council the following electric rate adjustments and City Code rate language clarifications for all billings issued with meter readings on or after January 1, 2016; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to revise the electric rates, fees and charges. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Sections 26-464 (c), (d), (e), (f), (p), (r) and (s) of the Code of the City of Fort Collins are hereby amended to read as follows: Page 2 Sec. 26-464. Residential energy service, schedule R. . . . (c) Monthly rate. The monthly rates for this schedule are as followsshall be the sum of the following charges: (1) Fixed charge, per account: five dollars and seven cents ($5.07). (2) Distribution facilities charge, per kilowatt hour: two and thirty-eight one- hundredths cents ($0.0238). (3) Energy and demand charge, during the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. The energy and demand charge shall be billed as follows: a. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: six and five one-hundredths cents ($0.0605). b. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: seven and sixty-nine one-hundredths cents ($0.0769). c. For all additional kilowatt hours per month, per kilowatt hour: ten and ninety-seven one-hundredths cents ($0.1097). (4) Energy and demand charge, during the non-summer season billing months of January through May and September through December: a. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: five and forty-five one-hundredths cents ($0.0545). b. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: five and eighty-five one-hundredths cents ($0.0585). c. For all additional kilowatt hours per month, per kilowatt hour: six and seventy-three one-hundredths cents ($0.0673). (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (1) Fixed Charge Per account $5.07 (2) Distribution facilities charge Per kWh $0.0238 Page 3 (3) Energy and demand charge a. Summer. During the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. 1. Tier 1 - for the first five hundred (500) kilowatt hours per month 2. Tier 2 - for the next five hundred (500) kilowatt hours per month 3. Tier 3 - for all additional kilowatt hours per month Per kWh $0.0632 Per kWh $0.0804 Per kWh $0.1146 b. Non-summer. During the non-summer season billing months of January through May and September through December. 1. Tier 1 - for the first five hundred (500) kilowatt hours per month, per kWh 2. Tier 2 - for the next five hundred (500) kilowatt hours per month, per kWh 3. Tier 3 - for all additional kilowatt hours per month, per kWh Per kWh $0.0570 Per kWh $0.0611 Per kWh $0.0703 (4) Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent (d) Medical assistance program. (1) The rates described in Subsection (c) above shall be discounted for those electric customers to whom this rate schedule applies and who apply for such discount, as long as: a. the applicant's annual household income falls below sixty (60) percent of the Larimer County Area Median Income (as determined by the Federal Housing Authority); and b. the application is accompanied by a certified, signed statement from a licensed physician that electrical durable medical equipment used at the residential premises is medically necessary and that such medical equipment has been assigned a Healthcare Common Procedure Coding System number; and/or c. a certified, signed statement from a licensed physician that air conditioning at the residential premises is medically necessary for a resident thereof who, in the absence of the air conditioning, may suffer medical deterioration due to a severe immune-compromising medical condition, including, but not limited to, multiple sclerosis, quadriplegia, paraplegia, scleroderma or hemiplegia; and d. the application is accompanied by a sworn affidavit from the applicant verifying that all information contained in the application, including, if applicable, the representation that air conditioning will be operational at the applicant's address during the summer billing months, is true and correct. Page 4 (2) Applications for rate discounts under this Section must be submitted annually in accordance with an administratively established schedule. (3) The discounted monthly rates for customers with electrical durable medical equipment only shall be calculated as follows the sum of the following charges: a. Fixed charge, per account: five dollars and seven cents ($5.07). b. Distribution facilities charge, per kilowatt hour: two and thirty- eight one-hundredths cents ($0.0238). c. Energy and demand charge, during the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. The energy demand charge shall be billed as follows: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: three and forty-two one-hundredths cents ($0.0342). 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: seven and sixty-nine one-hundredths cents ($0.0769). 3. For all additional kilowatt hours per month, per kilowatt hour: ten and ninety-seven one-hundredths cents: ($0.1097). d. Energy and demand charge, during the non-summer season billing months of January through May and September through December: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: two and ninety-eight one-hundredths cents ($0.0298). 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: five and eighty-five one-hundredths cents ($0.0585). 3. For all additional kilowatt hours per month, per kilowatt hour: six and seventy-three one-hundredths ($0.0673). e. In lieu of taxes and franchise: a charge at the rate of six and zero- tenths (6.0) percent of all monthly service charges billed pursuant to this Section. a. Fixed Charge Per account $5.07 b. Distribution facilities charge Per kWh $0.0238 c. Energy and demand charge 1. Summer. During the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. Page 5 (a) Tier 1 - for the first five hundred (500) kilowatt hours per month (b) Tier 2 - for the next five hundred (500) kilowatt hours per month (c) Tier 3 - for all additional kilowatt hours per month Per kWh $0.0357 Per kWh $0.0804 Per kWh $0.1146 2. Non-summer. During the non-summer season billing months of January through May and September through December. (a) Tier 1 - for the first five hundred (500) kilowatt hours per month, per kWh (b) Tier 2 - for the next five hundred (500) kilowatt hours per month, per kWh (c) Tier 3 - for all additional kilowatt hours per month, per kWh Per kWh $0.0311 Per kWh $0.0611 Per kWh $0.0703 d. Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent (4) The discounted monthly rates for customers with medical needs requiring air conditioning only shall be calculated as follows the sum of the following charges: a. Fixed charge, per account: five dollars and seven cents ($5.07). b. Distribution facilities charge, per kilowatt hour: two and thirty- eight one-hundredths cents ($0.0238). c. Energy and demand charge, during the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. The energy and demand charge shall be billed as follows: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: three and thirty-five one-hundredths cents ($0.0335). 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: four and twenty-five one-hundredths cents ($0.0425). 3. For all additional kilowatt hours per month, per kilowatt hour: ten and ninety-seven one-hundredths cents ($0.1097). d. Energy and demand charge, during the non-summer season billing months of January through May and September through December: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: five and forty-five one-hundredths cents ($0.0545). 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: five and eighty-five one-hundredths cents ($0.0585). Page 6 3. For all additional kilowatt hours per month, per kilowatt hour: six and seventy-three one-hundredths cents ($0.0673). e. In lieu of taxes and franchise: a charge at the rate of six and zero- tenths (6.0) percent of all monthly service charges billed pursuant to this Section. a. Fixed Charge Per account $5.07 b. Distribution facilities charge Per kWh $0.0238 c. Energy and demand charge 1. Summer. During the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. (a) Tier 1 - for the first five hundred (500) kilowatt hours per month (b) Tier 2 - for the next five hundred (500) kilowatt hours per month (c) Tier 3 - for all additional kilowatt hours per month Per kWh $0.0350 Per kWh $0.0444 Per kWh $0.1146 2. Non-summer. During the non-summer season billing months of January through May and September through December. (a) Tier 1 - for the first five hundred (500) kilowatt hours per month, per kWh (b) Tier 2 - for the next five hundred (500) kilowatt hours per month, per kWh (c) Tier 3 - for all additional kilowatt hours per month, per kWh Per kWh $0.0570 Per kWh $0.0611 Per kWh $0.0703 d. Payment in lieu of taxes (PILOT) and franchise. A charge of all monthly service charges billed pursuant to this Section 6 percent (5) The discounted monthly rates for customers with electrical durable medical equipment and medical needs requiring air conditioning shall be calculated as follows the sum of the following charges: a. Fixed charge, per account: five dollars and seven cents ($5.07). b. Distribution facilities charge, per kilowatt hour: two and thirty- eight one-hundredths cents ($0.0238). c. Energy and demand charge, during the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. The energy and demand charge shall be billed as follows: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: two and nineteen one-hundredths cents ($0.0219). Page 7 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: two and seventy-eight one-hundredths cents ($0.0278). 3. For all additional kilowatt hours per month, per kilowatt hour: ten and ninety-seven one-hundredths cents ($0.1097). d. Energy and demand charge, during the non-summer season billing months of January through May and September through December: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: two and ninety-eight one-hundredths cents ($0.0298). 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: five and eighty-five one-hundredths cents ($0.0585). 3. For all additional kilowatt hours per month, per kilowatt hour: six and seventy-three one-hundredth cents ($0.0673). e. In lieu of taxes and franchise: a charge at the rate of six and zero- tenths (6.0) percent of all monthly service charges billed pursuant to this Section. a. Fixed Charge Per account $5.07 b. Distribution facilities charge Per kWh $0.0238 c. Energy and demand charge 1. Summer. During the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. (a) Tier 1 - for the first five hundred (500) kilowatt hours per month (b) Tier 2 - for the next five hundred (500) kilowatt hours per month (c) Tier 3 - for all additional kilowatt hours per month Per kWh $0.0229 Per kWh $0.0291 Per kWh $0.1146 2. Non-summer. During the non-summer season billing months of January through May and September through December. (a) Tier 1 - for the first five hundred (500) kilowatt hours per month, per kWh (b) Tier 2 - for the next five hundred (500) kilowatt hours per month, per kWh (c) Tier 3 - for all additional kilowatt hours per month, per kWh Per kWh $0.0311 Per kWh $0.0611 Per kWh $0.0703 a. Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent (6) Notwithstanding the foregoing, no rate established under this Subsection shall reflect a discount exceeding an amount consistent with the use of one hundred fifty (150) kilowatt hours per month for the operation of electrical Page 8 durable medical equipment or, if applicable, an additional amount consistent with the use of three hundred fifty (350) kilowatt hours per month for air conditioning. (7) A decision that an applicant does not qualify to participate in this program for a medical or financial reason may be appealed to the Utilities Executive Director, who shall, prior to making his or her decision, and as he or she deems appropriate, confer with one (1) or more medical or financial experts in reviewing such appeal. (e) Renewable resource. Renewable energy resources, including, but not limited to, energy generated by the power of wind, may be offered on a voluntary basis to customers at athe premium of two and four-tenths cents ($0.024) per kilowatt hour set forth in this Subsection (e). The utility may establish and offer voluntary programs designed to increase and enhance the use of energy generated by renewable energy resources in support of Council-adopted policy applicable to the utility. Per kWh $0.024 (f) Excess capacity charge. AThe monthly capacity charge of two dollars ($2.00) per kilowatt set forth in this Subsection (f) may be added to the above charges for service to intermittent loads in accordance with the provisions of the eElectric sService rules and regulationsStandards. Per kW $2.00 . . . (p) Net metering. (1) Net metering service is available to a customer-generator producing electric energy exclusively with a qualifying facility using a qualifying renewable technology when the generating capacity of the customer-generator's qualifying facility meets the following two (2) criteria: a. the qualifying facility is sized to supply no more than one hundred twenty (120) percent of the customer-generator's average annual electricity consumption at that site, including all contiguous property owned or leased by the customer-generator, without regard to interruptions in contiguity caused by easements, public thoroughfares, transportation rights-of-way or utility rights-of-way; and b. the rated capacity of the qualifying facility does not exceed the customer-generator's service entrance capacity. Page 9 (2) The energy generated by an on-site qualifying facility and delivered to the utility's electric distribution facility shall be used to offset energy provided by the utility to the customer-generator during the applicable billing period. (3) The customer-generator and electric service arrangements shall be subject to the requirements and conditions described in the City of Fort Collins Utility Services Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System. (4) A customer-generator who receives approval from the electric utility to obtain net metering service shall be subject to the monthly rates described above in this rate schedule section. (5) The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy consumed from the utility by the customer-generator shall be billed at the applicable seasonal tiered rate as outlined in Subsection (c) of this Section. The energy produced by the customer-generator shall be credited to the customer monthly as follows: a. Distribution facilities charge, per kilowatt hour: two and thirty- eight one-hundredths cents ($0.0238). b. The energy and demand credit, per kilowatt hour: six and five one- hundredths cents ($0.0605). a. Distribution facilities credit Per kWh $0.0238 b. Energy and demand credit Per kWh $0.0632 (6) TOU rates, for customer-generators participating in a qualifying "time-of- use" (TOU) rate study, consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy consumed from the utility by the customer-generator shall be billed at the applicable study rates under sSubsection (s) of this Section. The energy produced by the customer-generator shall be credited to the customer monthly as follows: a. The energy and demand credit, per kilowatt hour during the summer season billing months shall be as follows: 1. On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays), eighteen and eighty three one-hundredths cents ($0.1883). 2. Off-Peak, three and ninety four one-hundredths cents ($0.0394). b. The energy and demand credit, per kilowatt hour during the non- summer season billing months shall be as follows: 1. On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays), fifteen and sixty two one-hundredths cents ($0.1562). Page 10 2. Off-Peak, three and seventy eight one-hundredths cents ($0.0378). a. Energy and demand credit – summer season billing months 1. On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.1968 2. Off-Peak Per kWh $0.0412 b. Energy and demand credit – non-summer season billing months 1. On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1632 2. Off-Peak Per kWh $0.0395 . . . (r) Net metering—community solar projects. (1) Net metering service is available to a customer who holds an exclusive interest in a portion of the electric energy generated by a community solar project when the generating capacity of the customer's interest is sized to supply no more than one hundred twenty (120) percent of the customer's average annual electricity consumption at the customer's point of service, including all contiguous property owned or leased by the customer, without regard to interruptions in contiguity caused by easements, public thoroughfares, transportation rights-of- way or utility rights-of-way. (2) The community solar project-generator and electric service arrangements shall be subject to the requirements and conditions described in the City of Fort Collins Utility Services Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System. (3) Both the customer's consumption of energy from Fort Collins Utilities and interest in the production of energy that flows into Fort Collins Utilities' distribution system shall be measured on a monthly basis. The energy consumed from Fort Collins Utilities by the customer shall be billed at the applicable seasonal tiered rate as outlined in Subsections (c) and (d) of this Section. The energy produced by the customer's portion of the qualifying facility shall be credited to the customer monthly as follows: 1. Distribution facilities charge, per kilowatt hour: one and nineteen one-hundredths cents ($0.0119). 2. The energy and demand credit, per kilowatt hour: six and five one- hundredths cents ($0.0605). 1. Distribution facilities credit Per kWh $0.0119 2. Energy and demand credit Per kWh $0.0632 (s) Time of Use (TOU) Pilot Study. Page 11 (1) Objective. The City has identified potential benefits available through time-of-use (TOU) based electric service rates, including encouraging reduced energy consumption and equitably shifting energy costs to customers who use more energy. In order to study these benefits, Fort Collins Utilities shall conduct a temporary pilot project beginning with the billing cycle commencing on or after October 1, 2015, and concluding after twelve (12) full billing cycles. (2) Scope. The project shall include six thousand residential energy service (Schedule R) customers selected at random. Customers selected at random will be notified and given a one-time opportunity to "opt-out" of participation in the project. Customers who do not opt-out will be assigned, as determined by the Executive Director, to one of the two pilot rates described in sSubsections (s)(4) (pilot TOU rate) and (s)(5) (pilot TOU with energy efficiency tier rate), or monitored on their existing residential energy service tiered rate, as a control group. (3) Best-bill guarantee. Customers participating in the pilot project for the full twelve (12) billing cycle period will be eligible for the following best-bill guarantee: the total energy costs paid by each customer under either of the pilot rates for the twelve full billing cycles shall be compared with the energy costs such customer would have paid under the base residential energy service tiered rate during the same twelve billing cycles, and each customer shall be reimbursed (by issuance of a billing credit or otherwise, as determined by the Executive Director) for the amount by which the total energy costs paid exceed the amount that would have been due under the base residential energy service tiered rate for such period. Each customer who pays total energy costs under either of the pilot rates during the twelve full billing cycles of the project that are less than the energy costs such customer would have paid under the base residential energy service tiered rate shall retain those savings. (4) Pilot TOU rate. Customers assigned to this rate during the pilot study shall pay monthly rates under this sub-schedule as follows equal to the sum of the following charges: a. Fixed charge, per account: five dollars and seven cents ($5.07). b. Distribution facilities charge, per kilowatt hour: two and thirty eight one-hundredths cents ($0.0238). c. Energy and demand charge, during the summer season billing months of May, June, July, August, and September. The energy and demand charge shall be billed as follows: 1. On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays), eighteen and eighty three one-hundredths cents ($0.1883). 2. Off-Peak, three and ninety four one-hundredths cents ($0.0394). d. Energy and demand charge, during the non-summer season billing months of January through April and October through December, The energy and demand charge shall be billed as follows: Page 12 1. On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays), fifteen and sixty two one-hundredths cents ($0.1562). 2. Off-Peak, three and seventy eight one-hundredths cents ($0.0378). e. In lieu of taxes and franchise: a charge at the rate of six and zero- tenths (6.0) percent of all monthly service charges billed pursuant to this Subsection. a. Fixed Charge Per account $5.07 b. Distribution facilities charge Per kWh $0.0238 c. Energy and demand charge 1. Summer. During the summer season billing months of May, June, July and August, and September (a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) (b) Off-Peak Per kWh $0.1968 Per kWh $0.0412 2. Non-summer. During the non-summer season billing months of January through April and October through December. (a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) (b) Off-Peak Per kWh $0.1632 Per kWh $0.0395 d. Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent (5) Pilot TOU with energy efficiency tier rate. Customers assigned to this rate during the pilot study shall pay monthly rates under this sub-schedule as follows equal to the sum of the following charges: a. Fixed charge, per account: five dollars and seven cents ($5.07). b. Distribution facilities charge, per kilowatt hour: one and ninety four one-hundredths cents ($0.0194). c. Energy and demand charge, during the summer season billing months of May, June, July, August, and September. The energy and demand charge shall be billed as follows: 1. On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays), per kilowatt hour: eighteen and eighty three one-hundredths cents ($0.1883) 2. Off-Peak, per kilowatt hour: three and ninety four one- hundredths cents ($0.0394) d. Energy and demand charge, during the non-summer season billing months of January through April and October through December. The energy and demand charge shall be billed as follows: Page 13 1. On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays), per kilowatt hour: fifteen and sixty two one-hundredths cents ($0.1562) 2. Off-Peak, per kilowatt hour: three and seventy eight one- hundredths cents ($0.0378) e. Energy efficiency tier charge, per kilowatt hour for total consumption over 700 kWh in a billing month (regardless of on-peak or off-peak): one and sixty three one-hundredths cents ($0.0163). f. In lieu of taxes and franchise: a charge at the rate of six and zero- tenths (6.0) percent of all monthly service charges billed pursuant to this subsection. a. Fixed Charge Per account $5.07 b. Distribution facilities charge Per kWh $0.0194 c. Energy and demand charge 1. Summer. During the summer season billing months of May, June, July, August, and September (a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) (b) Off-Peak Per kWh $0.1968 Per kWh $0.0412 2. Non-summer. During the non-summer season billing months of January through April and October through December. (a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) (b) Off-Peak Per kWh $0.1632 Per kWh $0.0395 d. Energy efficiency tier charge, per kilowatt hour for total consumption over 700 kWh in a billing month (regardless of on-peak or off-peak) Per kWh $0.0163 e. Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent Section 2. That Sections 26-465 (a)-(f), (q), and (r) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-465. Residential demand service, schedule RD. (a) Availability. The residential demand service rate, schedule RD, shall be available within the corporate limits of the City and the suburban fringe. Service under this rate class is available only to customers who establish to the satisfaction of the utility, by providing to the utility such documentation as the utility may deem appropriate, that the residence served is heated entirely by electric energy. Such documentation must be submitted by April 1, 2012. At such time that the utility implements a time-of-use rate, this rate schedule will no longer be available. Page 14 (b) Applicability. This schedule applies to residential customers for all domestic uses in single-family private dwellings, individually metered apartments and home occupations as defined in Article 5 of the Land Use Code. (c) Monthly rate. The monthly rates are as follows shall be the sum of the following charges: (1) Fixed charge, per account: five dollars and seven cents ($5.07). (2) Demand charge, per kilowatt: two dollars and twenty-six cents ($2.26). (3) Distribution facilities charge, per kilowatt hour: two and eleven one- hundredths cents ($0.0211). (4) Energy charge, per kilowatt hour: a. During the summer season billing months of June, July and August: four and sixteen one-hundredths cents ($0.0416). b. During the non-summer season billing months of January through May and September through December: four and zero one-hundredths cents ($0.0400). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of monthly service charges billed pursuant to this Section. (1) Fixed Charge Per account $5.07 (2) Demand charge Per kW $2.36 (3) Distribution facilities charge Per kWh $0.0211 (4) Energy charge a. Summer season billing months of June, July and August b. Non-summer season billing months of January through May and September through December Per kWh $0.0435 Per kWh $0.0418 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent (d) Renewable resource. Renewable energy resources, including, but not limited to, energy generated by the power of wind, may be offered on a voluntary basis to customers at athe premium of two and four-tenths cents ($0.024) per kilowatt hour set forth in this Subsection (d). The utility may establish and offer voluntary programs designed to Page 15 increase and enhance the use of energy generated by renewable energy resources in support of Council-adopted policy applicable to the utility. Per kWh $0.024 (e) Excess capacity charge. AThe monthly capacity charge of two dollars ($2.00) per kilowatt set forth in this Subsection (e) may be added to the above charges for service to intermittent loads in accordance with the provisions of the eElectric sService rules and regulationsStandards. Per kW $2.00 (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) The mMonthly standby distribution charge shall be two dollars and thirty- three cents ($2.33) per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge. For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be six dollars and ninety-nine cents ($6.99) per kilowatt. Contracted standby service, this charge shall be in lieu of the distribution facilities charge. Per kW $2.33 For all metered kilowatts in excess of the contracted amount Per kW $6.99 (2) In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. . . . (q) Net metering. (1) Net metering service is available to a customer-generator producing electric energy exclusively with a qualifying facility using a qualifying renewable technology when the generating capacity of the customer-generator's qualifying facility meets the following two (2) criteria: a. the qualifying facility is sized to supply no more than one hundred twenty (120) percent of the customer-generator's average annual electricity consumption at that site, including all contiguous property owned or Page 16 leased by the customer-generator, without regard to interruptions in contiguity caused by easements, public thoroughfares, transportation rights-of-way or utility rights-of-way; and b. the rated capacity of the qualifying facility does not exceed the customer-generator's service entrance capacity. (2) The energy generated by an on-site qualifying facility and delivered to the utility's electric distribution facility shall be used to offset energy provided by the utility to the customer-generator during the applicable billing period. (3) The customer-generator and electric service arrangements shall be subject to the requirements and conditions described in the City of Fort Collins Utility Services Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System. (4) A customer-generator who receives approval from the electric utility to obtain net metering service shall be subject to the monthly rates described above in this rate schedule section. (5) The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy consumed from the utility by the customer-generator shall be billed at the applicable seasonal tiered rate as outlined in Subsection (c) of this Section. The energy produced by the customer-generator shall be credited to the customer monthly as follows: a. Distribution facilities charge, per kilowatt hour: two and thirty- eight one-hundredths cents ($0.0238). b. The energy and demand credit, per kilowatt hour: six and five one- hundredths cents ($0.0605). a. Distribution facilities credit Per kWh $0.0238 b. Energy and demand credit Per kWh $0.0632 (r) Net metering—community solar projects. (1) Net metering service is available to a customer who holds an exclusive interest in a portion of the electric energy generated by a community solar project when the generating capacity of the customer's interest is sized to supply no more than one hundred twenty (120) percent of the customer's average annual electricity consumption at the customer's point of service, including all contiguous property owned or leased by the customer, without regard to interruptions in contiguity caused by easements, public thoroughfares, transportation rights-of- way or utility rights-of-way. (2) The community solar project-generator and electric service arrangements shall be subject to the requirements and conditions described in the City of Fort Collins Utility Services Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System. Page 17 (3) Both the customer's consumption of energy from Fort Collins Utilities and interest in the production of energy that flows into Fort Collins Utilities' distribution system shall be measured on a monthly basis. The energy consumed from Fort Collins Utilities by the customer shall be billed at the applicable seasonal tiered rate as outlined in Subsection (c) of this Section. The energy produced by the customer's portion of the qualifying facility shall be credited to the customer monthly as follows: 1. Distribution facilities charge, per kilowatt hour: one and nineteen one-hundredths cents ($0.0119). 2. The energy and demand credit, per kilowatt hour: six and five one- hundredths cents ($0.0605). 1. Distribution facilities credit Per kWh $0.0119 2. Energy and demand credit Per kWh $0.0632 Section 3. That Sections 26-465 (c)-(f), (q), and (r) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-466. General service, schedule GS. (c) Monthly rate. The monthly rates for this schedule are as follows shall be the sum of the following charges: (1) Fixed charge, per account: a. Single-phase, two-hundred-ampere service: three dollars and twenty-six cents ($3.26). b. Single-phase, above two-hundred-ampere service: nine dollars and sixty cents ($9.60). c. Three-phase, two-hundred-ampere service: four dollars and ninety- six cents ($4.96). d. Three-phase, above two-hundred-ampere service: eleven dollars and seventy-four cents ($11.74). (2) Demand charge, per kilowatt hour: a. During the summer season billing months of June, July and August: two and seventy-seven one-hundredths cents ($0.0277). b. During the non-summer season billing months of January through May and September through December: one and forty-nine one- hundredths cents ($0.0149). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. Page 18 (3) Distribution facilities charge, per kilowatt hour: Two and twenty-seven one-hundredths cents ($0.0227). (4) Energy charge, per kilowatt hour: a. During the summer season billing months of June, July and August: four and sixteen one-hundredths cents ($0.0416). b. During the non-summer season billing months of January through May and September through December: four and zero one-hundredths cents ($0.0400). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. 1. Fixed Charge a. Single-phase, two-hundred-ampere service Per account $ 3.26 b. Single-phase, above two-hundred-ampere service Per account $ 9.60 c. Three-phase, two-hundred-ampere service Per account $ 4.96 d. Three-phase, above two-hundred-ampere service Per account $11.74 2. Demand charge a. Summer season billing months of June, July, and August Per kWh $0.0289 b. Non-summer season billing months of January through May and September through December Per kWh $0.0156 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. 3. Distribution facilities charge Per kWh $0.0227 4. Energy charge a. Summer season billing months of June, July, and August Per kWh $0.0435 b. Non-summer season billing months of January through May and September through December Per kWh $0.0418 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. 5. Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent (d) Renewable resource. Renewable energy resources, including, but not limited to, energy generated by the power of wind, may be offered on a voluntary basis to customers at athe premium of two and four-tenths cents ($0.024) per kilowatt hour set forth in this Page 19 Subsection (d). The utility may establish and offer voluntary programs designed to increase and enhance the use of energy generated by renewable energy resources in support of Council-adopted policy applicable to the utility. Per kWh $0.024 (e) Excess capacity charge. AThe monthly capacity charge of two dollars ($2.00) per kilowatt set forth in this Subsection (e) may be added to the above charges for service to intermittent loads in accordance with the provisions of the eElectric sService rules and regulationsStandards. Per kW $2.00 . . . (q) Net metering. (1) Net metering service is available to a customer-generator producing electric energy exclusively with a qualifying facility using a qualifying renewable technology when the generating capacity of the customer-generator's qualifying facility meets the following two (2) criteria: a. The qualifying facility is sized to supply no more than one hundred twenty (120) percent of the customer-generator's average annual electricity consumption at that site, including all contiguous property owned or leased by the customer-generator, without regard to interruptions in contiguity caused by easements, public thoroughfares, transportation rights-of-way or utility rights-of-way; and b. The rated capacity of the qualifying facility does not exceed the customer-generator's service entrance capacity. (2) The energy generated by an on-site qualifying facility and delivered to the utility's electric distribution facility shall be used to offset energy provided by the utility to the customer-generator during the applicable billing period. (3) The customer-generator and electric service arrangements shall be subject to the requirements and conditions described in the City of Fort Collins Utility Services Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System. (4) A customer-generator who receives approval from the electric utility to obtain net metering service shall be subject to the monthly rates described above in this rate schedule section. (5) The customer-generator's consumption of energy from the utility shall be measured on a monthly basis and, in the event that the qualifying facility has produced more electricity than the customer-generator has consumed, the Page 20 customer-generator shall receive a monthly credit for such production. During the second calendar quarter of each year, the customer-generator shall receive payment for the net excess generation accrued for the preceding twelve (12) months. The credit per kilowatt hour for the energy delivered to the electric utility under this provision shall be provided at the summer season energy charge as specified in Subsection (c) of this Section. The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy consumed from the utility by the customer-generator shall be billed at the applicable rate as outlined in Subsection (c) of this Section. The energy produced by the customer- generator shall be credited to the customer monthly as follows: a. Summer season energy credit Per kWh $0.0435 (r) Net metering—community solar projects. (1) Net metering service is available to a customer who holds an exclusive interest in a portion of the electric energy generated by a community solar project when the generating capacity of the customer's interest is sized to supply no more than one hundred twenty (120) percent of the customer's average annual electricity consumption at the customer's point of service, including all contiguous property owned or leased by the customer, without regard to interruptions in contiguity caused by easements, public thoroughfares, transportation rights-of- way or utility rights-of-way. (2) The community solar project-generator and electric service arrangements shall be subject to the requirements and conditions described in the City of Fort Collins Utility Services Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System. (3) Both the customer's consumption of energy from Fort Collins Utilities and interest in the production of energy that flows into Fort Collins Utilities' distribution system shall be measured on a monthly basis. The energy consumed from Fort Collins Utilities by the customer shall be billed at the applicable seasonal tiered rate as outlined in Subsection (c) of this Section. The energy produced by the customer's portion of the qualifying facility shall be credited to the customer monthly as follows: 1. Distribution facilities charge, per kilowatt hour: one and fourteen one-hundredths cents ($0.0114). 2. The energy and demand credit, per kilowatt hour: four and sixteen one-hundredths cents ($0.0416). 1. Distribution facilities credit Per kWh $0.0114 2. Energy and demand credit Per kWh $0.0435 Page 21 Section 4. That Sections 26-467 (c)-(f) and (r) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-467. General service 25, schedule GS25. (c) Monthly rate. The monthly rates for this schedule are as followsshall be the sum of the following charges: (1) Fixed charge, per account: a. Single-phase, two-hundred-ampere service: three dollars and twenty-six cents ($3.26). b. Single-phase, above two-hundred-ampere service: nine dollars and sixty cents ($9.60). c. Three-phase, two-hundred-ampere service: four dollars and ninety- six cents ($4.96). d. Three-phase, above two-hundred-ampere service: eleven dollars and seventy-four cents ($11.74). (2) Demand charge, per kilowatt: a. During the summer season billing months of June, July and August: seven dollars and fifty-two cents ($7.52). b. During the non-summer season billing months of January through May and September through December: four dollars and thirty-seven cents ($4.37). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities charge, per kilowatt hour: one and seventy-six one- hundredths cents ($0.0176). (4) Energy charge, per kilowatt hour: a. During the summer season billing months of June, July and August: four and sixteen one-hundredths cents ($0.0416). b. During the non-summer season billing months of January through May and September through December: four and zero one-hundredths cents ($0.0400). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. 1. Fixed Charge Page 22 a. Single-phase, two-hundred-ampere service Per account $ 3.26 b. Single-phase, above two-hundred-ampere service Per account $ 9.60 c. Three-phase, two-hundred-ampere service Per account $ 4.96 d. Three-phase, above two-hundred-ampere service Per account $11.74 2. Demand charge a. Summer season billing months of June, July, and August Per kW $7.86 b. Non-summer season billing months of January through May and September through December Per kW $4.57 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. 3. Distribution facilities charge Per kwh $0.0176 4. Energy charge a. Summer season billing months of June, July, and August Per kWh $0.0435 b. Non-summer season billing months of January through May and September through December Per kWh $0.0418 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. 5. Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent (d) Renewable resource. Renewable energy resources, including, but not limited to, energy generated by the power of wind, may be offered on a voluntary basis to customers at athe premium of two and four-tenths cents ($0.024) per kilowatt hour set forth in this Subsection (d). The utility may establish and offer voluntary programs designed to increase and enhance the use of energy generated by renewable energy resources in support of Council-adopted policy applicable to the utility. Per kWh $0.024 (e) Excess capacity charge. AThe monthly capacity charge of two dollars ($2.00) per kilowatt set forth in this Subsection (e) may be added to the above charges for service to intermittent loads in accordance with the provisions of the eElectric sService rules and regulationsStandards. Per kW $2.00 Page 23 (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) The mMonthly standby distribution charge shall be three dollars and eighty-two cents ($3.82) per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge. For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be eleven dollars and forty-five cents ($11.45) per kilowatt. Contracted standby service, this charge shall be in lieu of the distribution facilities charge. Per kW $3.82 For all metered kilowatts in excess of the contracted amount Per kW $11.45 (2) In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. . . . (r) Net metering. (1) Net metering service is available to a customer-generator producing electric energy exclusively with a qualifying facility when the generating capacity of the customer-generator's qualifying facility meets the following two (2) criteria: a. The qualifying facility is sized to supply no more than one hundred twenty (120) percent of the customer-generator's average annual electricity consumption at that site, including all contiguous property owned or leased by the customer-generator, without regard to interruptions in contiguity caused by easements, public thoroughfares, transportation rights-of-way or utility rights-of-way; and b. The rated capacity of the qualifying facility does not exceed the customer-generator's service entrance capacity. (2) The energy generated by an on-site qualifying facility and delivered to the utility's electric distribution facility shall be used to offset energy provided by the utility to the customer-generator during the applicable billing period. (3) The customer-generator and electric service arrangements shall be subject to the requirements and conditions described in the City of Fort Collins Utility Services Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System. Page 24 (4) A customer-generator who receives approval from the electric utility to obtain net metering service shall be subject to the monthly rates described above in this rate schedule section. (5) The customer-generator's consumption of energy from the utility shall be measured on a monthly basis and, in the event that the qualifying facility has produced more electricity than the customer-generator has consumed, the customer-generator shall receive a monthly credit for such production. During the second calendar quarter of each year, the customer-generator shall receive payment for the net excess generation accrued for the preceding twelve (12) months. The credit per kilowatt hour for the energy delivered to the electric utility under this provision shall be provided at the summer season energy charge as specified in Subsection (c) of this Section. The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy consumed from the utility by the customer-generator shall be billed at the applicable rate as outlined in Subsection (c) of this Section. The energy produced by the customer- generator shall be credited to the customer monthly as follows: a. Summer season energy credit Per kWh $0.0435 Section 5. That Sections 26-468 (c)-(g), and (u) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-468. General service 50, schedule GS50. (c) Monthly rate. The monthly rates for this schedule are as followsshall be the sum of the following charges: (1) Fixed charge, per account: nine dollars and forty-five cents ($9.45). An additional charge of forty dollars and zero cents ($40.00) may be assessed if telephone communication service is not provided by the customer. (2) Coincident demand charge, per kilowatt: a. During the summer season billing months of June, July and August: eleven and eighteen cents ($11.18). b. During the non-summer season billing months of January through May and September through December: seven dollars and eighty cents ($7.80). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities demand charge, per kilowatt: five dollars and ninety cents ($5.90). Page 25 (4) Energy charge, per kilowatt hour: a. During the summer season billing months of June, July and August: four and sixteen one-hundredths cents ($0.0416). b. During the non-summer season billing months of January through May and September through December: four and zero one-hundredths cents ($0.0400). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (1) Fixed Charge Per account $9.45 An additional charge may be assessed if telephone communication service is not provided by the customer. Per account $40.00 (2) Coincident demand charge a. summer season billing months of June, July and August Per kW $11.68 b. non-summer season billing months of January through May and September through December Per kW $8.15 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities charge Per kW $5.90 (4) Energy charge a. Summer season billing months of June, July, and August Per kWh $0.0435 b. Non-summer season billing months of January through May and September through December Per kWh $0.0418 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent (d) Renewable resource. Renewable energy resources, including, but not limited to, energy generated by the power of wind, may be offered on a voluntary basis to customers at athe premium of two and four-tenths cents ($0.024) per kilowatt hour set forth in this Subsection (d). The utility may establish and offer voluntary programs designed to increase and enhance the use of energy generated by renewable energy resources in support of Council-adopted policy applicable to the utility. Page 26 Per kWh $0.024 (e) Excess capacity charge. AThe monthly capacity charge of two dollars ($2.00) per kilowatt set forth in this Subsection (e) may be added to the above charges for service to intermittent loads in accordance with the provisions of the eElectric sService rules and regulationsStandards. Per kW $2.00 (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) Standby distribution charge. a. The mMonthly standby distribution charge shall be the sum of the following charges: four dollars and seventy-two cents ($4.72) per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge. For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be fourteen dollars and sixteen cents ($14.16) per kilowatt. Contracted standby service, this charge shall be in lieu of the distribution facilities charge. Per kW $4.72 For all metered kilowatts in excess of the contracted amount Per kW $14.16 b. In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. (2) Standby generation and transmission charge. All charges incurred by the utility under Platte River Power Authority's applicable tariffs, as may be amended from time to time, will be billed to the customer as a standby generation and transmission charge. (g) Excess circuit charge. In the event a utility customer in this rate class desires excess circuit capacity for the purpose of controlling the available electric capacity of a backup circuit connection, this service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable backup demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) The excess circuit Monthly charge shall be the sum of the following charges: eighty-six cents ($0.86) per contracted kilowatt of backup capacity per Page 27 month. For any metered kilowatts in excess of the contracted amount, the excess circuit charge shall be two dollars and fifty-eight cents ($2.58) per kilowatt. Contracted backup capacity per month Per kW $0.86 Metered kilowatts in excess of the contracted amount Per kW $2.58 (2) In the event the contractual kilowatt limit is exceeded, a new annual contract period will automatically begin as of the month the limit is exceeded. The metered demand in the month of exceedance shall become the minimum contracted demand level for the excess circuit charge. . . . (u) Net metering. (1) Net metering service is available to a customer-generator producing electric energy exclusively with a qualifying facility using a qualifying renewable technology when the generating capacity of the customer-generator's qualifying facility meets the following two (2) criteria: a. the qualifying facility is sized to supply no more than one hundred twenty (120) percent of the customer-generator's average annual electricity consumption at that site, including all contiguous property owned or leased by the customer-generator, without regard to interruptions in contiguity caused by easements, public thoroughfares, transportation rights-of-way or utility rights-of-way; and b. the rated capacity of the qualifying facility does not exceed the customer-generator's service entrance capacity. (2) The energy generated by an on-site qualifying facility and delivered to the utility's electric distribution facility shall be used to offset energy provided by the utility to the customer-generator during the applicable billing period. (3) The customer-generator and electric service arrangements shall be subject to the requirements and conditions described in the City of Fort Collins Utility Services Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System. (4) A customer-generator who receives approval from the electric utility to obtain net metering service shall be subject to the monthly rates described above in this rate schedule section. (5) The customer-generator's consumption of energy from the utility shall be measured on a monthly basis and, in the event that the qualifying facility has produced more electricity than the customer-generator has consumed, the customer-generator shall receive a monthly credit for such production. During the second calendar quarter of each year, the customer-generator shall receive payment for the net excess generation accrued for the preceding twelve (12) months. The credit per kilowatt hour for the energy delivered to the electric utility under this provision shall be provided at the summer season energy charge as Page 28 specified in Subsection (c) of this Section. The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy consumed from the utility by the customer-generator shall be billed at the applicable rate as outlined in Subsection (c) of this Section. The energy produced by the customer- generator shall be credited to the customer monthly as follows: a. Summer season energy credit Per kWh $0.0435 Section 6. That Sections 26-469 (c)-(g) and (v) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-469. General service 750, schedule GS750. (c) Monthly rate. The monthly rates for this schedule shall be the sum of the following charges: are as follows: (1) Fixed charge, per account: fifteen dollars and twenty-four cents ($15.24). a. Additional charge for each additional metering point: nine dollars and fifty cents ($9.50). b. An additional charge of forty dollars and zero cents ($40.00) for each metering point may be assessed if telephone communication service is not provided by the customer. (2) Coincident demand charge, per kilowatt: a. During the summer season billing months of June, July and August: eleven and one cent ($11.01). b. During the non-summer season billing months of January through May and September through December: seven dollars and sixty-nine cents ($7.69). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities demand charge, per kilowatt: a. First seven hundred fifty (750) kilowatts: five dollars and eighty- five cents ($5.85). b. All additional kilowatts: three dollars and forty-eight cents ($3.48). (4) Energy charge, per kilowatt hour: a. During the summer season billing months of June, July and August: four and ten one-hundredths cents ($0.0410). Page 29 b. During the non-summer season billing months of January through May and September through December: three and ninety-four one- hundredths cents ($0.0394). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (1) Fixed Charge Per account $15.24 a. Additional charge for each additional metering point Per account $9.50 b. An additional charge may be assessed if telephone communication service is not provided by the customer. Per account $40.00 (2) Coincident demand charge a. summer season billing months of June, July and August Per kW $11.51 b. non-summer season billing months of January through May and September through December Per kW $8.04 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities charge a. First seven hundred fifty (750) kilowatts Per kW $5.85 b. All additional kilowatts Per kW $3.48 (4) Energy charge a. Summer season billing months of June, July, and August Per kWh $0.0428 b. Non-summer season billing months of January through May and September through December Per kWh $0.0412 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent (d) Renewable resource. Renewable energy resources, including, but not limited to, energy generated by the power of wind, may be offered on a voluntary basis to customers at athe premium of two and four-tenths cents ($0.024) per kilowatt hour set forth in this Subsection (d). The utility may establish and offer voluntary programs designed to increase and enhance the use of energy generated by renewable energy resources in support of Council-adopted policy applicable to the utility. Page 30 Per kWh $0.024 (e) Excess capacity charge. AThe monthly capacity charge of two dollars ($2.) per kilowatt set forth in this Subsection (e) may be added to the above charges for service to intermittent loads in accordance with the provisions of the eElectric sService rules and regulationsStandards. Per kW $2.00 (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) Standby distribution charge. a. The mMonthly standby distribution charges shall be paid in the following amounts three dollars and fifty-two cents ($3.52) per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge. For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be ten dollars and fifty-six cents ($10.56) per kilowatt. Contracted standby service, this charge shall be in lieu of the distribution facilities charge. Per kW $3.52 For all metered kilowatts in excess of the contracted amount Per kW $10.56 b. In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. (2) Standby generation and transmission charge. All charges incurred by the utility under the Platte River Power Authority's applicable tariffs, as may be amended from time to time, will be billed to the customer as a standby generation and transmission charge. (g) Excess circuit charge. In the event a utility customer in this rate class desires excess circuit capacity for the purpose of controlling the available electric capacity of a backup circuit connection, this service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable backup demand (in kilowatts) as determined by the customer and approved by the utility at the following ratesaccording to the following: Page 31 (1) The excess circuit Monthly charge shall be sixty-four cents ($0.64) per contracted kilowatt of backup capacity per month. For any metered kilowatts in excess of the contracted amount, the excess circuit charge shall be one dollar and ninety-two cents ($1.92) per kilowatt. Contracted backup capacity per month Per kW $0.64 Metered kilowatts in excess of the contracted amount Per kW $1.92 (2) In the event the contractual kilowatt limit is exceeded, a new annual contract period will automatically begin as of the month the limit is exceeded. The metered demand in the month of exceedance shall become the minimum contracted demand level for the excess circuit charge. . . . (v) Net metering. (1) Net metering service is available to a customer-generator producing electric energy exclusively with a qualifying facility using a qualifying renewable technology when the generating capacity of the customer-generator's qualifying facility meets the following two (2) criteria: a. the qualifying facility is sized to supply no more than one hundred twenty (120) percent of the customer-generator's average annual electricity consumption at that site, including all contiguous property owned or leased by the customer-generator, without regard to interruptions in contiguity caused by easements, public thoroughfares, transportation rights-of-way or utility rights-of-way; and b. the rated capacity of the qualifying facility does not exceed the customer-generator's service entrance capacity. (2) The energy generated by an on-site qualifying facility and delivered to the utility's electric distribution facility shall be used to offset energy provided by the utility to the customer-generator during the applicable billing period. (3) The customer-generator and electric service arrangements shall be subject to the requirements and conditions described in the City of Fort Collins Utility Services Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System. (4) A customer-generator who receives approval from the electric utility to obtain net metering service shall be subject to the monthly rates described above for this rate schedule. (5) The customer-generator's consumption of energy from the utility shall be measured on a monthly basis and, in the event that the qualifying facility has produced more electricity than the customer-generator has consumed, the customer-generator shall receive a monthly credit for such production. During the second calendar quarter of each year, the customer-generator shall receive payment for the net excess generation accrued for the preceding twelve (12) Page 32 months. The credit per kilowatt hour for the energy delivered to the electric utility under this provision shall be provided at the summer season energy charge as specified in Subsection (c) of this Section. The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy consumed from the utility by the customer-generator shall be billed at the applicable rate as outlined in Subsection (c) of this Section. The energy produced by the customer- generator shall be credited to the customer monthly as follows: a. Summer season energy credit Per kWh $0.0428 Section 7. That Sections 26-470 (c)-(e), and (s) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-470. Substation service, schedule SS. (c) Monthly rate. The monthly rates for this schedule shall be the sum of the following charges are as follows: (1) Fixed charge, per account: thirty-nine dollars and forty-seven cents ($39.47). (2) Coincident demand charge, per kilowatt: a. During the summer season billing months of June, July and August: ten dollars and eighty-four cents ($10.84). b. During the non-summer season billing months of January through May and September through December: seven dollars and fifty-seven cents ($7.57). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities demand charge, per kilowatt: two dollars and fifty cents ($2.50). (4) Energy charge, per kilowatt hour: a. During the summer season billing months of June, July and August: four and four one-hundredths cents ($0.0404). b. During the non-summer season billing months of January through May and September through December: three and eighty-eight one- hundredths cents ($0.0388). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. Page 33 (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (1) Fixed Charge Per account $39.47 (2) Coincident demand charge a. summer season billing months of June, July and August Per kW $11.33 b. non-summer season billing months of January through May and September through December Per kW $7.91 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities charge Per kW $2.50 (4) Energy charge a. Summer season billing months of June, July, and August Per kWh $0.0422 b. Non-summer season billing months of January through May and September through December Per kWh $0.0405 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent (d) Renewable resource. Renewable energy resources, including, but not limited to, energy generated by the power of wind, may be offered on a voluntary basis to customers at a premium of two and four-tenths cents ($0.024) per kilowatt hour. The utility may establish and offer voluntary programs designed to increase and enhance the use of energy generated by renewable energy resources in support of Council-adopted policy applicable to the utility. Per kWh $0.024 (e) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility at the following rates according to the following: (1) Standby distribution charge. a. The mMonthly standby distribution charge shall be two dollars and twenty-two cents ($2.22) per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge. For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be six dollars and sixty-six cents ($6.66) per kilowatt. Page 34 Contracted standby service, this charge shall be in lieu of the distribution facilities charge. Per kW $2.22 For all metered kilowatts in excess of the contracted amount Per kW $6.66 b. In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. (2) Standby generation and transmission charge. All charges incurred by the utility under the Platte River Power Authority's applicable tariffs, as may be amended from time to time, will be billed to the customer as a standby generation and transmission charge. . . . (s) Net metering. (1) Net metering service is available to a customer-generator producing electric energy exclusively with a qualifying facility using a qualifying renewable technology when the generating capacity of the customer-generator's qualifying facility meets the following two (2) criteria: a. the qualifying facility is sized to supply no more than one hundred twenty (120) percent of the customer-generator's average annual electricity consumption at that site, including all contiguous property owned or leased by the customer-generator, without regard to interruptions in contiguity caused by easements, public thoroughfares, transportation rights-of-way or utility rights-of-way; and b. the rated capacity of the qualifying facility does not exceed the customer-generator's service entrance capacity. (2) The energy generated by an on-site qualifying facility and delivered to the utility's electric distribution facility shall be used to offset energy provided by the utility to the customer-generator during the applicable billing period. (3) The customer-generator and electric service arrangements shall be subject to the requirements and conditions described in the City of Fort Collins Utility Services Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System. (4) A customer-generator who receives approval from the electric utility to obtain net metering service shall be subject to the monthly rates described above for this rate schedule. (5) The customer-generator's consumption of energy from the utility shall be measured on a monthly basis and, in the event that the qualifying facility has Page 35 produced more electricity than the customer-generator has consumed, the customer-generator shall receive a monthly credit for such production. During the second calendar quarter of each year, the customer-generator shall receive payment for the net excess generation accrued for the preceding twelve (12) months. The credit per kilowatt hour for the energy delivered to the electric utility under this provision shall be provided at the summer season energy charge as specified in Subsection (c) of this Section. The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy consumed from the utility by the customer-generator shall be billed at the applicable rate as outlined in Subsection (c) of this Section. The energy produced by the customer- generator shall be credited to the customer monthly as follows: a. Summer season energy credit Per kWh $0.0422 Section 8. That Section 26-471 (b) and (f) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-471. Special area floodlighting, schedule FL. . . . (b) Monthly rate. The monthly rates (including a six-and-zero-tenths-(6) percent charge in lieu of taxes and franchise) are as follows: (1) Charge per lamp, mercury vapor: a. One-hundred-seventy-five-watt: sixteen dollars and ninety-three cents ($16.93). b. Two-hundred-fifty-watt: nineteen dollars and ninety-four cents ($19.94). c. Four-hundred-watt: twenty-six dollars and fourteen cents ($26.14). a. One-hundred-seventy-five (175) watt $16.93 b. Two-hundred-fifty (250) watt $19.94 c. Four-hundred (400) watt $26.14 (2) Charge per lamp, high-pressure sodium: a. Seventy-watt: seven dollars and fifteen cents ($7.15). b. One-hundred-watt: ten dollars and twelve cents ($10.12). c. One-hundred-fifty-watt: sixteen dollars and one cent ($16.01). d. Two-hundred-fifty-watt: twenty dollars and forty-one cents ($20.41). e. Four-hundred-watt: twenty-six dollars and ninety-six cents ($26.96). Page 36 a. Seventy (70) watt $7.15 b. One-hundred (100) watt $10.12 c. One-hundred-fifty (150) watt $16.01 a. Two-hundred-fifty (250) watt $20.41 b. Four-hundred (400) watt $26.96 … (f) Contract period and conditions (1) Those desiring floodlighting service shall sign a service contract at the electric utility office. This contract may be terminated at the end of any billing period upon ten (10) days' written notice to the City. (2) Under this schedule the utility will own, install, operate and maintain standard area lighting equipment. Materials, installation and associated line extension costs shall be paid by the customer to the utility. Upon termination of service to the lights installed after January 1, 1980, the salvage value of recoverable materials less removal expenses will be refunded to the consumer. (32) The lamps shall be controlled by automatic control equipment and burning time shall be from approximately thirty (30) minutes after sunset to approximately thirty (30) minutes before sunrise. (43) The customer shall notify the utility of any operational failure of the lamp. Lamp replacements or repairs will be performed only during regular working hours. Section 9. That Sections 26-472 (c) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-472. Traffic signal service, schedule T. … (c) Monthly rate. The monthly rates (including a six-and-zero-tenths-(6) percent charge in lieu of taxes and franchise) shall be the sum of the following charges are as follows: (1) Fixed charge, per account: seventy-three dollars and sixteen cents ($73.16). (2) Charge, per kilowatt hour: six and fifty-nine one-hundredths cents ($0.0659). (3) Service extensions and signal installations made by the utility shall be paid for by the City General Fund, subject to material and installation costs at the time of installation. Page 37 (1) Fixed Charge Per account $73.16 (2) Energy Charge Per kWh $0.0680 (3) Service extensions and signal installations made by the utility shall be paid for by the City General Fund, subject to material and installation costs at the time of installation. Section 10. That Sections 26-476 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-476. Public electric vehicle charging station service user fees. (a) Availability. Designated electric vehicle charging stations will be made available by the Electric Utility for public use within the corporate limits of the City at the user rates set forth in this Section. (b) Applicability. The fees set forth in this Section shall apply to all public electric vehicle charging stations owned and operated by the Electric Utility. (c) User fee rates. Public electric vehicle charging station service user fees (including six-and-zero-tenths-percent charge in lieu of taxes and franchise) will be provided and billed on a per-session basis as follows: (1) Level 2 - 240 volt charging: One dollar and zero cents ($1.00) per one- hour charging session. (2) Level 3 - 480 volt DC Quick Charging: Three dollars and zero cents ($3.00) per charging session. (1) Level 2 - 240 volt charging, per one-hour charging session $1.00 (2) Level 3 - 480 volt DC Quick Charging, per charging session (not necessarily based on one-hour increments) $3.00 (d) Payment of fees. Payment for electric vehicle charging station services will be collected directly from the customer at the point of service (the charging station or City facility at which the charging station is located) through credit card or other payment processing service. Section 11. That the amendments herein are effective and shall go into effect as follows: A. Amended GS50 & GS750 schedule rates shall apply to all electricity used on or after January 1, 2016; Page 38 B. Amended TOU Pilot Study schedule rates shall apply to all electricity used on or after January 1, 2016; and C. All other amended schedule rates shall apply to all bills issued on the basis of meter readings on or after January 1, 2016. Introduced, considered favorably on first reading, and ordered published this 3rd day of November, A.D. 2015, and to be presented for final passage on the 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk ORDINANCE NO. 141, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS REGARDING CALCULATION AND COLLECTION OF DEVELOPMENT FEES IMPOSED FOR NEW OR MODIFIED ELECTRIC SERVICE CONNECTIONS WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the City Charter to fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses and other obligations of the electric utility, as set forth therein; and WHEREAS, City Council has determined that new development should pay its proportionate share of the capital costs for new or modified electric service connections in the form of the Electric Capacity Fee and Building Site Charge (hereinafter “Electric Development Fees”) described at Sections 26-474 and 26-475 of the City Code; and WHEREAS, the City Manager and Electric Utility staff recommend the City Code be modified to clarify how Electric Development Fees are set and collected, as well as to update the rates to reflect increases in the operational facility capital costs required to provide new or modified electric service connections; and WHEREAS, the City Manager and City staff have recommended to City Council an adjustment of the scope of the Electric Development Fees imposed by City Code Sections 26- 474 and 26-475 to permit inclusion in its calculation of the City’s quantifiable and reasonable growth-related costs for impacts to Utilities Services’ capital administrative facilities that are reasonably related to the overall cost of and required in providing electric services to serve new development, as permitted by Colorado law. WHEREAS, Utilities staff have also identified formatting and maintenance updates to the City Code to improve the clarity with which Electric Development Fees are explained; and WHEREAS, the Energy Board considered the proposed Electric Development Fees and language clarifications for 2016 at its October 3, 2015, meeting and recommended approval of the fee changes and City Code updates; and WHEREAS, the City Manager and staff have recommended to the City Council the following Electric Development Fee adjustments and City Code language clarifications for all new or modified electric service connections requested on or after January 1, 2016; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to revise the Electric Development Fees. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes any and all determinations and findings contained in the recitals set forth above. Section 2. That Section 26-473 (b) of the Coe of the City of Fort Collins is hereby amended to read as follows: Sec. 26-473. - Electric development fees and charges. . . . (b) The ECF shall be based upon and used to defray growth-related capital expansion costs of substations and distribution infrastructure and related facilities, and actual costs that have been or will be incurred by the utility to plan and provide service loads to new development, as more specifically described in this Division. These costs shall include the cost of labor and materials to install substation transformers, distribution transformers, primary cable, vaults, conduit, connections, switches, fuses, circuit breakers and other infrastructure and may include capital costs of administrative facilities that are reasonably related to the overall cost of and required in providing electric services to serve new development. The ECF shall vary with the electrical capacity requirements, lot size and lineal feet of dedicated roadway, and shall be based on the actual cost of construction of any required off-site improvements. The parameters and rates shall be reviewed annually by the City Manager, and the fees shall be presented to the City Council for approval no less frequently than biennially. . . . Section 3. That Section 26-474 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-474. Residential electric development fees and charges. (a) An Electric Capacity Fee ("ECF"), calculated as set forth in this Section and representing the cost to construct the electric distribution system infrastructure for a new or modified residential service shall be paid prior to the scheduling of any construction work required to provide said service. The ECF shall be determined based upon the most current construction information the main disconnect size (not fuse sizing) and the ECF charges in effect at the time of full payment. (1) In the event of a customer request for revision to the system requirements for a new or modified service, construction of infrastructure improvements will cease until the customer has made payment in full of an updated ECF, including any increased construction costs associated with the revised system requirements; such increased amount, if any, shall be paid at the ECF rates in effect at the time it is paid in full. (2) Notwithstanding the foregoing, the ECF for any new or modified service for which an invoice has been issued on or before December 15, 2014, shall be due in full and must be paid no later than December 31, 2014, in order for construction of related infrastructure improvements to continue. If payment in full based upon the ECF charges in effect as of December 15, 2014, is not received in 2014, no further construction of infrastructure improvements or energizing of the subject service shall occur until the full ECF is paid based on the rate in effect at the time of full payment. (b) The ECF shall be the total of the site footage charge, dwelling charge and systems modification charge, to be determined as follows: (1) The site footage charge shall be the combined total of: a. five and one hundred twenty-one thousandths cents ($0.05121) per square foot of developed site square footage, including all applicable tracts but excluding the area of dedicated public rights-of-way and excluding areas dedicated to the City as parkland, however, specific areas within City owned parks that require electric service will be charged; and b. ten dollars and thirty-six cents ($10.36) per lineal foot of the developed site abutting a dedicated street or roadway. a. Per square foot of developed site square footage, including all applicable tracts but excluding the area of dedicated public rights-of-way and excluding areas dedicated to the City as parkland, however, specific areas within City owned parks that require electric service will be charged $0.05186 b. Plus, per lineal foot of the developed site abutting a dedicated street or roadway $10.39 (2) The dwelling unit charge shall be as follows: a. For a single-family panel size with one-hundred-fifty-amp service (nonelectric heat), one thousand four hundred and four dollars ($1,404.00) per dwelling unit; b. For a single-family panel size with two-hundred-amp service or with one- hundred-fifty-amp service (electric heat), two thousand three hundred thirty-four dollars ($2,334.00) per dwelling unit; c. For a multi-family panel size with one-hundred-fifty-amp service (nonelectric heat), nine hundred thirty-six dollars ($936.00) per dwelling unit; d. For a multi-family panel size with two-hundred-amp service or with one- hundred-fifty-amp service (electric heat), one thousand six hundred forty-three dollars ($1,643.00) per dwelling unit. a. For a single-family panel size with one-hundred-fifty (150) amp service (nonelectric heat), per dwelling unit $1,408 b. For a single-family panel size with two-hundred (200) amp service or with one-hundred-fifty (150) amp service with electric heat, per dwelling unit $2,283 c. For a multi-family panel size with one-hundred-fifty (150) amp service (nonelectric heat), per dwelling unit $939 d. For a multi-family panel size with two-hundred (200) amp service or with one-hundred-fifty (150) amp service with electric heat, per dwelling unit $1,612 (3) A system modifications charge will apply when a new or modified service will require infrastructure in addition to or different from the standard base electrical system model. The differential costs associated with such system modifications will be included in the calculated ECF. (c) The utility will schedule and commence construction of a new or modified electric service upon receipt of payment in full of the associated electric development fees, and per the Utility Installation Sequence as defined in the Electric Construction Policies Practices and Procedures Service Standards. If the utility is unable to commence construction when requested due to utility workload backlogs, the utility will schedule and commence the construction of new or modified electric service projects in the same order in which full payments are received. (d) A Building Site Charge ("BSC") for any new or modified residential service shall consist of the total of the applicable charges as described in this Subsection (cd), and shall be paid as specified herein. (1) When any new or modified multi-family service requires extending primary circuitry to an on-site transformer, this component of the BSC charge shall be invoiced and paid in the same manner and at the same time as the ECF is invoiced and paid pursuant to Subsection (a) of this Section 26-474(a), and shall be the total of the primary circuit charge, transformer installation charge and any additional charges. The amounts shall be the same as the BSC for nonresidential development, as shown in Section 26-475(cd). (2) When any new or modified residential service requires installation by the Utility of secondary service the BSC shall include a secondary service charge (SSC), and shall be paid at the time of building permit and based upon the current rates as of the time of issuance of the building permit. The SSC shall be the total of the secondary service charges, determined as follows: a. The secondary service charge shall be as follows: Secondary Service Size Charge (up to 65 feet) Plus Per-Foot Charge for Each Foot Over 65 1/0 service $680.00$682.00 $4.98$4.99/Foot 4/0 service $819.00$806.00 $5.72$5.63/Foot 350 kCM Service $919.00$912.00 $7.29$7.23/Foot 1/0 Mobile Home Service $531.00$532.00 N/A 4/0 Mobile Home Service $647.00$638.00 N/A (3) Actual special costs to the utility of installation of primary or secondary service resulting from site conditions shall be included in the BSC as additional charges. Such conditions may include, but are not limited to, frozen or rocky soil, concrete cutting and asphalt replacement. Section 4. That Section 26-475 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-475. Nonresidential electric development fees and charges. (a) An Electric Capacity Fee ("ECF"), calculated as set forth in this Section and representing the cost to construct the electric distribution system infrastructure for a new or modified nonresidential service shall be paid prior to the scheduling of any construction work required to provide such service. The ECF shall be determined based upon the most current construction information the main disconnect size (not fuse sizing) and the ECF charges in effect at the time of full payment. The customer shall also be responsible for secondary service installation from the point of delivery to the service panel. (1) In the event of a customer request for revision to the system requirements for a new or modified service, construction of infrastructure improvements will cease until the customer has made payment in full of an updated ECF, including any increased construction costs associated with the revised system requirements; such increased amount, if any, shall be paid at the ECF rates in effect at the time it is paid in full. (2) Notwithstanding the foregoing, the ECF for any new or modified service for which an invoice has been issued on or before December 15, 2014, shall be due in full and must be paid no later than December 31, 2014, in order for construction of related infrastructure improvements to continue. If payment in full based upon the ECF charges in effect as of December 15, 2014, is not received in 2014, no further construction of infrastructure improvements or energizing of the subject service shall occur until the full ECF is paid based on the rate in effect at the time of full payment. (b) The ECF shall be the total of the site footage charge, kVA service charge and systems modification charge, to be determined as follows: (1) The site footage charge shall be the combined total of: a. five and one hundred twenty-one thousandths cents ($0.05121) per square foot of developed site square footage, including all applicable tracts but excluding the area of dedicated public rights-of-way and excluding areas dedicated to the City as parkland, however, specific areas within City owned parks that require electric service will be charged; and b. forty dollars and twenty-one cents ($40.21) per lineal foot of the developed site abutting a dedicated street or roadway. a. Per square foot of developed site square footage, including all applicable tracts but excluding the area of dedicated public rights-of-way and excluding areas dedicated to the City as parkland, however, specific areas within City owned parks that require electric service will be charged $0.05186 b. Plus, per lineal foot of the developed site abutting a dedicated street or roadway $38.80 (2) The kVA service charge shall be determined as follows. a. For customer electric loads served by the utility the kVA service charge shall be: 1. Utility-owned transformers: the kVA service charge shall be sixty-three dollars and fifty-three cents ($63.53) per kilovolt- amp (kVA) of service load rating. 2. Customer owned transformers: the kVA service charge shall be fifty-four dollars and thirty-five cents ($54.35) per kilovolt-amp (kVA) of service load rating. 1. Utility-owned transformers: the kVA service charge per kilovolt-amp (kVA) of service load rating as determined by main disconnect size (not fuse sizing). $70.31 2. Customer owned transformers: the kVA service charge per kilovolt-amp (kVA) of service load rating. $61.13 b. For the utility to receive customer generation in excess of the customer's electric service provided by the utility, the following KVA service charge will also apply: 1. Utility-owned transformers: the kVA service charge shall be fifty-four dollars and thirty-five cents ($54.35) per kilovolt-amp (kVA) of generation service rating in excess of the service load rating as paid per subparagraph (2)a.1. above. Such ratings shall be determined by the Utilities Executive Director. 2. Customer owned transformers: the kVA service charge shall be forty-three dollars and eighty-five cents ($43.85) per kilovolt-amp (kVA) of generation service rating in excess of the service load rating paid per subparagraph (2)a.2. above. Such ratings shall be determined by the Utilities Executive Director. 1. Utility-owned transformers: the kVA service charge per kilovolt-amp (kVA) of generation service rating in excess of the service load rating as paid per Subsection (b)(2)a.1. Such ratings shall be determined by the Utilities Executive Director. $61.13 2. Customer owned transformers: the kVA service charge per kilovolt-amp (kVA) of generation service rating in excess of the service load rating paid per Subsection (b)(2)a.2. Such ratings shall be determined by the Utilities Executive Director. $43.63 (3) A system modifications charge will apply when a new or modified service will require infrastructure in addition to or different from the standard base electrical system model. The differential costs associated with such system modifications will be included in the calculated ECF. (c) The utility will schedule and commence construction of a new or modified electric service upon receipt of payment in full of the associated electric development fees, and per the Utility Installation Sequence as defined in the Electric Construction Policies Practices and Procedures Service Standards. If the utility is unable to commence construction when requested due to utility workload backlogs, the utility will schedule and commence the construction of new or modified electric service projects in the same order in which full payments are received. (d) A Building Site Charge ("BSC") for extending primary circuitry to the transformer for any new or modified nonresidential service shall be invoiced and paid in the same manner and at the same time as the ECF is invoiced and paid pursuant to Subsection (a) of this Section 26-475(a). The BSC shall be the total of the primary circuit charge, transformer installation charge and any additional charges, determined as follows: (1) The primary circuit charge for service from the utility source to the transformer shall be as follows: a. for single-phase service, a charge of nine dollars and fifty-five cents ($9.55) per foot of primary circuit; b. for three-phase service, a charge of eighteen dollars and thirty- eight cents ($18.38) per foot of primary circuit. a. For single-phase service, per foot of primary circuit $9.45 b. For three-phase service, per foot of primary circuit $17.76 (2) The transformer installation charge shall be as follows: a. for single-phase service, a charge of one thousand three hundred eighty-nine dollars ($1,389.00) per transformer; b. for three-phase service, a charge of two thousand four hundred fifty-eight dollars ($2,458.00) per transformer. a. For single-phase service, per transformer $1,387.00 b. For three-phase service, per transformer $2,432.00 (3) Actual special costs to the utility of installation of service resulting from site conditions shall be included in the BSC as additional charges. Such conditions may include, but are not limited to, frozen or rocky soil, concrete cutting and asphalt replacement. (e) In lieu of fee structures set out in this the ECF and BSC based on Subsections (a), (b), and (d), the ECF and BSC for any new nonresidential service exceeding five thousand (5,000) kilowatts in size will be determined on a case-by-case basis so as to recover the direct and indirect costs associated with extending primary circuitry to the user's point of delivery. Section 5. That the modifications set forth above shall be effective for all fees paid on or after January 1, 2016. Introduced, considered favorably on first reading, and ordered published this 3rd day of November, 2015, and to be presented for final passage on the 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on this 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk ORDINANCE NO. 142, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE WATER RATES, FEES, AND CHARGES WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other obligations as set forth therein; and WHEREAS, Article III, Chapter 26 of the City Code establishes the water utility as a utility service furnished by and an enterprise of the City; and WHEREAS, City Code Sections 26-127 and 26-129 concern various water-related rates, fees, and charges; and WHEREAS, City Code Section 26-118 requires that the City Manager to analyze the operating and financial records of the utility during each calendar year and recommend to the City Council user rates or adjustments to be in effect for the following year; and WHEREAS, the City Manager and City staff have also recommended to the City Council adjustment of the water-related rates, fees, and charges as set forth herein to be effective January 1, 2016; and WHEREAS, the Water Board considered the proposed water-related rates, fees, and charges adjustments for 2016 at its meeting on September 17, 2015 and recommended approval of the proposed adjustments by a unanimous vote; and WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the City Code to adjust the scope and rate of the water-related rates, fees, and charges as set forth herein. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes any and all determinations and findings contained in the recitals set forth above. Section 2. That Section 26-127 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-127. Schedule B, meter rates. (a) Residential Rates. Packet Pg. 342 (1) Residential customers with one (1) dwelling unit shall pay the sum of the following changes:. a. Base charge. Residential customers with one (1) dwelling unit shall pay a base monthly charge of fifteen dollars and forty- one cents ($15.41). b. Quantity charge. Residential customers with one (1) dwelling unit shall pay a monthly quantity charge as follows: For the first seven thousand (7,000) gallons used per month, a charge of two dollars and thirty-eight and six- tenths cents ($2.386) per one thousand (1,000) gallons. For the next six thousand (6,000) gallons used per month, a charge of two dollars and seventy-four and two-tenths cents ($2.742) per one thousand (1,000) gallons. For all additional gallons used per month, a charge of three dollars and fifteen and four-tenths cents ($3.154) per one thousand (1,000) gallons. a. Base monthly charge for residential customers with one (1) dwelling unit $15.41 b. Quantity monthly charge for residential customers with one (1) dwelling unit Tier 1 - For the first seven thousand (7,000) gallons used per month, per one thousand (1,000) gallons $2.386 Tier 2 - For the next six thousand (6,000) gallons used per month, per one thousand (1,000) gallons $2.742 Tier 3 - For all additional gallons used per month, per one thousand (1,000) gallons $3.154 (2) Residential customers with two (2) dwelling units shall pay the sum of the following charges:. a. Base charge. Residential customers with two (2) dwelling units shall pay a base monthly charge of sixteen dollars and thirty- one cents ($16.31). b. Quantity charge. Residential customers with two (2) dwelling units shall pay a monthly quantity charge as follows: Packet Pg. 343 For the first nine thousand (9,000) gallons used per month, a charge of two dollars and seven and one-tenth cents ($2.071) per one thousand (1,000) gallons. For the next four thousand (4,000) gallons used per month, a charge of two dollars and thirty-eight cents ($2.380) per one thousand (1,000) gallons. For all additional gallons used per month, a charge of two dollars and seventy-three and nine-tenths cents ($2.739) per one thousand (1,000) gallons. a. Base monthly charge for residential customers with two (2) dwelling units $16.31 b. Quantity monthly charge for residential customers with two (2) dwelling units Tier 1 - For the first nine thousand (9,000) gallons used per month, per one thousand (1,000) gallons $2.071 Tier 2 - For the next four thousand (4,000) gallons used per month, per one thousand (1,000) gallons $2.380 Tier 3 - For all additional gallons used per month, per one thousand (1,000) gallons $2.739 (3) Residential customers with more than two (2) dwelling units shall pay the sum of the following charges:. a. Base Charge. Residential customers with more than two (2) dwelling units shall pay a base monthly charge of eleven dollars and seventy-two cents ($11.72) for the first dwelling unit and three dollars and ninety cents ($3.90) for the second and each additional dwelling unit. b. Quantity charge. Residential customers with more than two (2) dwelling units shall pay a monthly quantity charge of one dollar and seventy and three-tenths cents ($1.703) per one thousand (1,000) gallons used in the winter season months of November through April. They shall pay a monthly quantity charge of two dollars and twelve and nine-tenths cents ($2.129) per one thousand (1,000) gallons used in the summer season months of May through October. The meter reading date shall generally determine the seasonal monthly quantity charge; however, no customer shall be billed more than six (6) full billing cycles at the summer quantity charge. a. Base monthly charge for residential customers with more than two (2) dwelling units First dwelling unit $11.72 Packet Pg. 344 Second and each additional dwelling unit $3.90 b. Quantity monthly charge for residential customers with more than two (2) dwelling units Winter - per one thousand (1,000) gallons used in the winter season months of November through April $1.703 Summer - per one thousand (1,000) gallons used in the summer season months of May through October $2.129 The meter reading date shall generally determine the seasonal monthly quantity charge; however, no customer shall be billed more than six (6) full billing cycles at the summer quantity charge. (b) Nonresidential Rates. (1) Base charge. Nonresidential, except for special users as described in Subsection 26-127(c) below, customers shall pay a base monthly charge based on meter size as follows: Meter Size (inches) Monthly Base Charge ¾ $ 13.63 1 38.03 1½ 103.41 2 155.85 3 237.70 4 373.17 6 723.91 8 1,278.85 (2) Quantity charges. Nonresidential customers shall pay monthly charges as follows: shall pay a monthly quantity charge of one dollar and eighty-nine and seven-tenths cents ($1.897) per one thousand (1,000) gallons used in the winter season months of November through April. They shall pay a monthly quantity charge of two dollars and thirty-seven cents ($2.370) per one thousand (1,000) gallons used in the summer season months of May through October. The meter reading date shall generally determine the seasonal monthly quantity charge; however, no Packet Pg. 345 customer shall be billed more than six (6) full billing cycles at the summer quantity charge. Winter - per one thousand (1,000) gallons used in the winter season months of November through April $1.897 Summer - per one thousand (1,000) gallons used in the summer season months of May through October $2.370 The meter reading date shall generally determine the seasonal monthly quantity charge; however, no customer shall be billed more than six (6) full billing cycles at the summer quantity charge. (3) Charges for excess use. Nonresidential customers shall also pay Mmonthly water use charges in excess of the amounts specified in the following table: shall be billed at two dollars and seventy-two and five- tenths cents ($2.725) per one thousand (1,000) gallons used in the winter season months of November through April. Monthly water use in excess of the amounts specified below shall be billed at three dollars and forty and eight-tenths cents ($3.408) per one thousand (1,000) gallons used in the summer season months of May through October. The meter reading date shall generally determine the seasonal billing excess quantity charge; however, no customer shall be billed more than six (6) full billing cycles at the summer excess quantity charge. . Winter - per one thousand (1,000) gallons used in the winter season months of November through April $2.725 Summer - per one thousand (1,000) gallons used in the summer season months of May through October $3.408 The meter reading date shall generally determine the seasonal monthly quantity charge; however, no customer shall be billed more than six (6) full billing cycles at the summer quantity charge. Meter Size (inches) Specified Amount (gallons per month) ¾ 100,000 1 300,000 Packet Pg. 346 1½ 625,000 2 1,200,000 3 1,400,000 4 2,500,000 (c) High Volume Industrial Rates. High volume industrial rates apply to any customer with an average daily demand in excess of two million (2,000,000) gallons per day. The specific rate for any qualifying customer shall be based upon the applicable peaking factor for that customer as follows: Peaking Factor Monthly Charge per Thousand Gallons 1.00—1.09 $1.490 1.10—1.19 1.540 1.20—1.29 1.590 1.30—1.39 1.640 1.40—1.49 1.690 1.50—1.59 1.740 1.60—1.69 1.790 1.70—1.79 1.840 1.80—1.89 1.890 1.90—1.99 1.950 > 2.00 2.000 Packet Pg. 347 (d) Service outside the City. The monthly charge for water taken through a meter by a user outside the City limits shall be the same as for like service within the City limits as specified in Subsections (a) and (b) of this Section. (e) Rates by special water services agreement. The rate structure and associated charges for water service pursuant to a special water services agreement approved by the City Council pursuant to § 26-130 shall be as set forth in said agreement. Section 3. That Section 26-129 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-129. Schedule D, miscellaneous fees and charges. (a) Connection fees and service charges shall be as set forth in Subsection 26-712(b). (b) The fire hydrant fees and charges shall be as follows: (1) For installation of meter: $43.00 (2) For removal of meter: 43.00 (3) For daily rental for meter and fittings: 8.60 (4) For water service rate per one thousand (1,000) gallons water used: 6.00 A deposit may be required in the amount of the charges for the anticipated water usage and rental. (c) The fees and requirements for raw water shall be as follows: (1) To satisfy raw water requirements (RWR) with in-lieu cash payments, the rate per acre-foot of RWR is sixty-five hundred dollars ($6,500.00). (2) Excess Water Use Surcharge assessed on commercial and irrigation taps when water use is in excess of the applicable annual allotment shall be three dollars and six cents ($3.06) per one thousand (1,000) gallons. (3) The annual water allotment, based on the minimum RWR shall be as follows: Meter Size (inches) Annual Allotment (gallons/year) ¾ 293,270 1 977,550 1½ 1,955,110 Packet Pg. 348 2 3,128,170 Above 2 325,851 gallons per acre foot RWR The following fees and service charges shall be paid by water users, whether inside or outside the City limits: (a) Connection fees and service charges shall be as set forth in Subsection 26-712(b). (b) The fire hydrant fees and charges shall be as follows: (1) For installation of meter Per meter $43.00 (2) For removal of meter Per meter $43.00 (3) For daily rental for meter and fittings Per meter $8.60 (4) For water service Per 1,000 gallons $6.00 A deposit may be required in the amount of the charges for the anticipated water usage and rental. (c) The fees and requirements for raw water shall be as follows (1) To satisfy raw water requirements (RWR) with in-lieu cash payments Per acre-foot of RWR $6,500.00 (2) Excess Water Use Surcharge assessed on commercial and irrigation taps when water use is in excess of the applicable annual allotment Per 1,000 gallons $3.06 (3) The annual water allotment, based on the minimum RWR shall be as follows: Meter Size (inches) Annual Allotment (gallons/year) ¾ 293,270 1 977,550 1½ 1,955,110 2 3,128,170 Above 2 325,851 gallons Packet Pg. 349 per acre foot RWR Section 4. That the modifications set forth above shall be effective for meter readings on or after January 1, 2016, and in the case of fees not based on meter readings, shall be effective for all fees paid on or after January 1, 2016. Introduced, considered favorably on first reading, and ordered published this 3rd day of November, 2015, and to be presented for final passage on the 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on this 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 350 ORDINANCE NO. 143, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE WATER PLANT INVESTMENT FEES WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other obligations as set forth therein; and WHEREAS, Article III, Chapter 26 of the City Code establishes the water utility as a utility service furnished by and an enterprise of the City; and WHEREAS, City Code Sections 26-120 and 26-128 provide for water plant investment fees (“WPIFs”) to be based on and used for growth-related capital expansion costs of water supply, storage, transmission, treatment and distribution facilities, and related factors; and WHEREAS, City Code Section 26-120 further requires that the City Manager annually review the parameters and rates of the WPIFs and also requires that the City Manager present such fees to the City Council for approval no less frequently than biennially; and WHEREAS, the City Manager and City staff have recommended to City Council adjustment of the scope of the WPIFs imposed by City Code Sections 26-120 and 26-128 to include in its calculation the City’s quantifiable and reasonable growth-related costs for impacts to Utilities Services’ capital administrative facilities that are reasonably related to the overall cost of and required in providing water services to serve new development, as permitted by Colorado law; and WHEREAS, the City Manager and City staff have also recommended to the City Council adjustment of the WPIFs as set forth herein to be effective January 1, 2016; and WHEREAS, the Water Board considered the proposed WPIFs adjustments for 2016 at its meeting on September 17, 2015 and recommended approval of the proposed adjustments by a unanimous vote; and WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the City Code to adjust the scope and rate of the WPIFs as set forth herein. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes any and all determinations and findings contained in the recitals set forth above. Packet Pg. 351 Section 2. That Section 26-120(b) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-120. - Water plant investment fees. . . . (b) The WPIF shall be based on and used for growth-related capital expansion costs of water supply, storage, transmission, treatment, and distribution and administrative facilities andthat are reasonably related factorsto the overall cost of and required in providing water services to serve new development. The fee shall vary with the number of dwelling units and the lot area served for residential users and with the size of the water meter for nonresidential users. The parameters and rates shall be reviewed by the City Manager annually and fees shall be presented to the City Council for approval no less frequently than biennially. . . . Section 3. That Section 26-128 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-128. Schedule C, water plant investment fees. The water plant investment fee prescribed in § 26-120 shall be payable by users both inside and outside of the City, as follows: (1) Single-family residential buildings: For the first three-fourths-inch water tap or meter, a fee of seven hundred twenty dollars ($720.00) for a single-family residence, plus thirty-two cents ($0.32) for each square foot of lot area. For a single-family residential lot greater than one-half (½) acre in size, the lot size shall be deemed to be one-half (½) acre for the purpose of this fee calculation. For each additional tap or meters larger than three-fourths (¾) inch, the nonresidential rate shall apply. (2) Residential buildings of two (2) or more dwelling units: For each residential building unit, a fee of five hundred forty dollars ($540.00), plus twenty-five cents ($0.25) for each square foot of lot area. The fee will provide for one (1) tap per residential building and an adequate number of additional taps to serve common irrigable areas, if any. The number and size of taps shall be determined by the Utilities Executive Director based upon the criteria established in the Uniform Plumbing Code as amended pursuant to Chapter 5 of this Code. (3) Mobile home parks: For each mobile home park, a fee of five hundred forty dollars ($540.00) for each mobile home space in the park, plus twenty-five cents ($0.25) for each square foot of lot area. The fee will provide for one (1) tap per mobile home park. The size of the tap shall be determined by the Utilities Executive Director based upon the criteria established in the Uniform Plumbing Code as amended pursuant to Chapter 5 of this Code. Packet Pg. 352 (4) Hotels, rooming houses, sororities, fraternities and similar uses: The nonresidential rate shall apply. (5) Nonresidential service: a. Service to all nonresidential taps, including, but not limited to, taps for commercial and industrial service, shall be charged according to the size of the meter pursuant to the following schedule: Meter Size (inches) Nonresidential Plant Investment Fee ¾ $7,000 1 19,050 1½ 41,600 2 64,410 b. The fee for all meters larger than two (2) inches shall be calculated by multiplying the estimated peak daily demand by four dollars and fourty-three cents ($4.43)/gallons, but shall not be less than the charge for a two-inch meter. (1) Single-family residential buildings. For a single-family residential lot greater than one-half (½) acre in size, the lot size shall be deemed to be one-half (½) acre for the purpose of this fee calculation. For each additional tap or meters larger than three-fourths (¾) inch, the nonresidential rate shall apply. a. For the first three-fourths-inch water tap or meter $720.00 b. Plus, for each square foot of lot area $0.33 (2) Residential buildings of two (2) or more dwelling units The fee will provide for one (1) tap per residential building and an adequate number of additional taps to serve common irrigable areas, if any. The number and size of taps shall be determined by the Utilities Executive Director based upon the criteria established in the Uniform Plumbing Code as amended pursuant to Chapter 5 of this Code. a. For each residential building unit $540.00 b. Plus, for each square foot of lot area $0.24 (3) Mobile home parks The size of the tap shall be determined by the Utilities Executive Director based upon the criteria established in the Uniform Plumbing Code as amended pursuant to Chapter 5 of this Code. a. For each residential building unit $540.00 Packet Pg. 353 b. Plus, for each square foot of lot area $0.24 (4) Hotels, rooming houses, sororities, fraternities and similar uses. The nonresidential rate shall apply. (5) Nonresidential service a. Service to all nonresidential taps, including, but not limited to, taps for commercial and industrial service, shall be charged according to the size of the meter pursuant to the following schedule: Meter Size (inches) Nonresidential Plant Investment Fee ¾ $7,180 1 $19,710 1½ $42,220 2 $66,680 b. The fee for all meters larger than two (2) inches shall be calculated by multiplying the estimated peak daily demand by the following charge per gallon, but shall not be less than the charge for a two-inch meter. $4.66 Section 4. That the modifications set forth above shall be effective for all fees paid on or after January 1, 2016. Introduced, considered favorably on first reading, and ordered published this 3rd day of November, 2015, and to be presented for final passage on the 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 354 Passed and adopted on final reading on this 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 355 OPTION A ORDINANCE NO. 144, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE WASTEWATER RATES, FEES, AND CHARGES WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other obligations as set forth therein; and WHEREAS, Article IV, Chapter 26 of the City Code establishes the wastewater utility as a utility service furnished by and an enterprise of the City; and WHEREAS, City Code Sections 26-280, 26-282, and 26-289 concern various wastewater-related rates, fees, and charges; and WHEREAS, City Code Section 26-277 requires that the City Manager to analyze the operating and financial records of the utility during each calendar year and recommend to the City Council user rates or adjustments to be in effect for the following year; and WHEREAS, the City Manager and City staff have also recommended to the City Council adjustment of the wastewater-related rates, fees, and charges as set forth herein to be effective January 1, 2016; and WHEREAS, the Water Board considered the proposed wastewater-related rates, fees, and charges adjustments for 2016 at its meeting on September 17, 2015 and recommended approval of the proposed adjustments by a unanimous vote; and WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the City Code to adjust the scope and rate of the water-related rates, fees, and charges as set forth herein. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes any and all determinations and findings contained in the recitals set forth above. Section 2. That Section 26-280 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-280. Service charges established by category. Packet Pg. 356 The schedule of rates for each category described in § 26-279 shall be as follows: Category Class of Customer Rate A Single-family residential user (flat rate) $37.38 per month Single-family residential user (metered water use) $16.70 per month plus $3.245 per 1,000 gallons of either winter quarter water use or 3,000 gallons, whichever is greater. For single family customers who have not established a winter quarter water use at the service address, a system average of 4,800 gallons per month shall be billed. B Duplex (two- family) residential users (flat rate) $51.20 per month Duplex (two- family) residential users (metered water use) $18.97 per month plus $2.847 per 1,000 gallons of either winter quarter water use or 4,000 gallons, whichever is greater. For duplex customers who have not established a winter quarter water use at the service address, a system average 7,200 gallons shall be billed. C Multi-family residential user (more than two dwelling units including mobile home parks) and winter quarter based nonresidential user $3.143 per 1,000 gallons of winter quarter water use, plus a base charge of $2.47 per month per dwelling unit served. For multi-family customers who have not established a winter quarter water use at the service address, a system average of 3,400 gallons per living unit shall be billed. However, Category D rates will apply to multi-family residential units under construction during the period of service from the installation of the water meter to the date the certificate of occupancy is issued. D Minor nonresidential user (inches) ¾ or smaller $8.39 1 $19.37 1½ $38.99 2 $66.71 3 $106.58 4 $168.33 6 $737.91 8 $852.02 E and F Intermediate nonresidential user and Significant industrial user $2.908 per 1,000 gallons of water use, measured wastewater flow or winter quarter water use, whichever is applicable; plus a surcharge of $3.214 per million gallons for each milligram per liter of suspended solids in excess of 235 milligrams per liter; plus a surcharge of $2.677 per million gallons for each milligram per liter of BOD in excess of 265 milligrams per liter or a surcharge of $1.690 per million gallons for each milligram per liter of COD in excess of 400 milligrams per liter, or a surcharge of $5.003 per million gallons for each milligram per liter of TOC in excess of 130 milligrams per liter, whichever is applicable. The user shall pay this calculated amount plus the applicable base charge set forth below: Size of water meter (inches) Base charge ¾ or smaller $8.39 1 $19.37 1½ $38.99 2 $66.71 Packet Pg. 358 3 $106.58 4 $168.33 6 $737.91 8 $852.02 G User outside City limits The rate for users outside the City limits shall be the same as for like service inside the City limits as is specified in Categories A—F and H in this Section. H Special with agreement The rate pursuant to a special wastewater services agreement approved by the City Council pursuant to § 26-290 shall be set forth in said agreement. Category Class of Customer Rate A Single-family residential user (flat rate) Per month $38.31 Single-family residential user (metered water use) 1. Per month $17.12 2. Plus, per 1,000 gallons per month $3.326 Note: 1. For single family customers who have not yet established a winter quarter water use at the service address, a system average of 4,800 gallons per month shall be billed. 2. After establishment of a winter quarter water use at the service address, the monthly amount billed shall be based on a minimum of 3,000 gallons per month. B Duplex (two- family) residential users (flat rate) Per month $52.48 Packet Pg. 359 Duplex (two- family) residential users (metered water use) Per month $19.44 Or, per 1,000 gallons per month, whichever is greater, to be calculated on a monthly basis $2.918 Note: 1. For duplex customers who have not yet established a winter quarter water use at the service address, a system average 7,200 gallons shall be billed. 2. After establishment of a winter quarter use at the service address, the monthly amount billed shall be based on a minimum of 4,000 gallons per month. C Multi-family residential user (more than two dwelling units including mobile home parks) and winter quarter based nonresidential user 1. Base charge per month per dwelling unit served $2.53 2. Plus, per 1,000 gallons per month $3.222 Note: 1. For multi-family customers who have not yet established a winter quarter water use at the service address, a system average of 3,400 gallons per living unit shall be billed. However, Category D rates will apply to multi-family residential units under construction during the period of service from the installation of the water meter to the date the certificate of occupancy is issued. 2. After establishment of a water quarter use at the service address, the monthly amount billed shall be per 1,000 gallons of winter quarter water use, calculated on a monthly basis. D Minor nonresidential user 1. Per 1,000 gallons of water use, measured sewage flow or winter quarter water use, whichever is applicable, to be calculated on a monthly basis, plus the following applicable base charge: $3.039 2. Size of water meter (inches) Base charge ¾ or smaller $8.77 1 $20.24 1½ $40.74 Packet Pg. 360 2 $69.71 3 $111.38 4 $175.90 6 $771.12 8 $890.36 E and F Intermediate nonresidential user and Significant industrial user User shall pay an amount calculated to include: 1. Rate per 1,000 gallons of water use, measured wastewater flow or winter quarter water use per month, whichever is applicable; $3.039 2. PLUS a surcharge per million gallons for each milligram per liter of suspended solids in excess of 235 milligrams per liter; $3.535 3. PLUS a surcharge for the following: a. per million gallons for each milligram per liter of BOD in excess of 265 milligrams per liter; or b. per million gallons for each milligram per liter of COD in excess of 400 milligrams per liter; or c. per million gallons for each milligram per liter of TOC in excess of 130 milligrams per liter, whichever is applicable. $2.945 $1.859 $5.503 The user shall pay the calculated amount based on 1, 2 and 3 above, plus the applicable base charge set forth below: Size of water meter (inches) Base charge Packet Pg. 361 ¾ or smaller $8.77 1 $20.24 1½ $40.74 2 $69.71 3 $111.38 4 $175.90 6 $771.12 8 $890.36 G User outside City limits The rate for users outside the City limits shall be the same as for like service inside the City limits as is specified in Categories A—F and H in this Section. H Special with agreement The rate pursuant to a special wastewater services agreement approved by the City Council pursuant to § 26-290 shall be set forth in said agreement. Section 3. That Section 26-282(a) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-282. Wastewater strength or industrial surcharges and categories established. (a) The schedule of A monthly wastewater strength surcharge forshall be paid by customers located either inside or outside the City limits shall be as followsin accordance with the following schedule: Parameter Excess over (mg/l) Rate per thousand gallons BOD 265 $0.002677 $0.002945 COD 400 $0.001690 $0.001859 TOC 130 $0.005003 $0.005503 TSS 235 $0.003214 $0.003535 Packet Pg. 362 . . . Section 4. That Section 26-289 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-289. Miscellaneous fees and charges. The following is a schedule of miscellaneous fees and charges: Description Amount (1) Connection fees and service charges Fees shall be set forth as in Subsection 26-712(b) (2) Industrial discharge permits: a. Administration $76.00 annually b. Surveillance Determined for each user annually, based on direct cost plus 15% indirect costs, billed monthly (3) Laboratory support services Determined on a case-by-case basis based on direct cost plus 15% indirect costs (4) Materials and labor provided by City Determined on a case-by-case basis based on direct cost plus 15% indirect costs (5) Charges for disposal at the Fort Collins Regional Sanitary Waste Transfer Station: a. Septic tanks, vaults, privies, portable toilets: Generated within Larimer County $0.071 per gallon Generated outside Larimer County $0.108 per gallon b. Recreational vehicle sanitary waste holding tanks: Residential customers of the City of Fort Collins Wastewater Utility No charge for individual disposal at Transfer Station Others $2.35 base fee plus $0.071 per gallon (6) Interest rate for wastewater service- 2.5% - 10% per annum; to be set for new loans Packet Pg. 363 related loans: annually based on the City's cost of capital minus 100 to 200 basis points in the administrative rules and regulations of the Financial Officer pursuant to § 26- 720 (7) Loan-related fees for wastewater service-related loans To be set based on related program costs in the administrative rules and regulations of the Financial Officer pursuant to § 26-720 (8) Miscellaneous fees Determined on a case-by-case basis based on direct costs plus 15% indirect costs Description Basis Amount (1) Connection fees and service charges Fees shall be set forth as in Subsection 26-712(b) (2) Industrial discharge permits: a. Administration Annually $76.00 b. Surveillance (on request) Determined for each user annually, based on direct cost plus 15% indirect costs, billed monthly (3) Laboratory support services (on request) Determined on a case-by-case basis based on direct cost plus 15% indirect costs (4) Materials and labor provided by City (on request) Determined on a case-by-case basis based on direct cost plus 15% indirect costs (5) Charges for disposal at the Fort Collins Regional Sanitary Waste Transfer Station: a. Septic tanks, vaults, privies, portable toilets: 1. Generated within Larimer County Per gallon $0.074 Packet Pg. 364 2. Generated outside Larimer County Per gallon $0.113 b. Recreational vehicle sanitary waste holding tanks: 1. Residential customers of the City of Fort Collins Wastewater Utility No charge for individual disposal at Transfer Station 2. Others 1. Base fee, plus $2.46 2. Per gallon $0.074 (6) Interest rate for wastewater service-related loans: 2.5% - 10% per annum; to be set for new loans annually based on the City's cost of capital minus 100 to 200 basis points in the administrative rules and regulations of the Financial Officer pursuant to § 26-720 (7) Loan-related fees for wastewater service-related loans To be set based on related program costs in the administrative rules and regulations of the Financial Officer pursuant to § 26-720 (8) Miscellaneous fees Determined on a case-by-case basis based on direct costs plus 15% indirect costs Section 5. That the modifications set forth above shall be effective for meter readings on or after January 1, 2016, and in the case of fees not based on meter readings, shall be effective for all fees paid on or after January 1, 2016. Packet Pg. 365 Introduced, considered favorably on first reading, and ordered published this 3rd day of November, 2015, and to be presented for final passage on the 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on this 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 366 OPTION B ORDINANCE NO. 144, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE WASTEWATER RATES, FEES, AND CHARGES WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other obligations as set forth therein; and WHEREAS, Article IV, Chapter 26 of the City Code establishes the wastewater utility as a utility service furnished by and an enterprise of the City; and WHEREAS, City Code Sections 26-280, 26-282, and 26-289 concern various wastewater-related rates, fees, and charges; and WHEREAS, City Code Section 26-277 requires that the City Manager to analyze the operating and financial records of the utility during each calendar year and recommend to the City Council user rates or adjustments to be in effect for the following year; and WHEREAS, the City Manager and City staff have also recommended to the City Council adjustment of the wastewater-related rates, fees, and charges as set forth herein to be effective January 1, 2016; and WHEREAS, the Water Board considered the proposed wastewater-related rates, fees, and charges adjustments for 2016 at its meeting on September 17, 2015 and recommended approval of the proposed adjustments by a unanimous vote; and WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the City Code to adjust the scope and rate of the water-related rates, fees, and charges as set forth herein. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes any and all determinations and findings contained in the recitals set forth above. Section 2. That Section 26-280 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-280. Service charges established by category. Packet Pg. 367 The schedule of rates for each category described in § 26-279 shall be as follows: Category Class of Customer Rate A Single-family residential user (flat rate) $37.38 per month Single-family residential user (metered water use) $16.70 per month plus $3.245 per 1,000 gallons of either winter quarter water use or 3,000 gallons, whichever is greater. For single family customers who have not established a winter quarter water use at the service address, a system average of 4,800 gallons per month shall be billed. B Duplex (two- family) residential users (flat rate) $51.20 per month Duplex (two- family) residential users (metered water use) $18.97 per month plus $2.847 per 1,000 gallons of either winter quarter water use or 4,000 gallons, whichever is greater. For duplex customers who have not established a winter quarter water use at the service address, a system average 7,200 gallons shall be billed. C Multi-family residential user (more than two dwelling units including mobile home parks) and winter quarter based nonresidential user $3.143 per 1,000 gallons of winter quarter water use, plus a base charge of $2.47 per month per dwelling unit served. For multi-family customers who have not established a winter quarter water use at the service address, a system average of 3,400 gallons per living unit shall be billed. However, Category D rates will apply to multi-family residential units under construction during the period of service from the installation of the water meter to the date the certificate of occupancy is issued. D Minor nonresidential user meter (inches) ¾ or smaller $8.39 1 $19.37 1½ $38.99 2 $66.71 3 $106.58 4 $168.33 6 $737.91 8 $852.02 E and F Intermediate nonresidential user and Significant industrial user $2.908 per 1,000 gallons of water use, measured wastewater flow or winter quarter water use, whichever is applicable; plus a surcharge of $3.214 per million gallons for each milligram per liter of suspended solids in excess of 235 milligrams per liter; plus a surcharge of $2.677 per million gallons for each milligram per liter of BOD in excess of 265 milligrams per liter or a surcharge of $1.690 per million gallons for each milligram per liter of COD in excess of 400 milligrams per liter, or a surcharge of $5.003 per million gallons for each milligram per liter of TOC in excess of 130 milligrams per liter, whichever is applicable. The user shall pay this calculated amount plus the applicable base charge set forth below: Size of water meter (inches) Base charge ¾ or smaller $8.39 1 $19.37 1½ $38.99 Packet Pg. 369 2 $66.71 3 $106.58 4 $168.33 6 $737.91 8 $852.02 G User outside City limits The rate for users outside the City limits shall be the same as for like service inside the City limits as is specified in Categories A—F and H in this Section. H Special with agreement The rate pursuant to a special wastewater services agreement approved by the City Council pursuant to § 26-290 shall be set forth in said agreement. Category Class of Customer Rate A Single-family residential user (flat rate) Per month $37.87 Single-family residential user (metered water use) 1. Per month $16.92 2. Plus, per 1,000 gallons per month $3.287 Note: 1. For single family customers who have not yet established a winter quarter water use at the service address, a system average of 4,800 gallons per month shall be billed. 2. After establishment of a winter quarter water use at the service address, the monthly amount billed shall be based on a minimum of 3,000 gallons per month. B Duplex (two- family) residential users (flat Per month $52.33 Packet Pg. 370 rate) Duplex (two- family) residential users (metered water use) Per month $19.39 Or, per 1,000 gallons per month $2.910 Note: 1. For duplex customers who have not yet established a winter quarter water use at the service address, a system average 7,200 gallons shall be billed. 2. After establishment of a winter quarter use at the service address, the monthly amount billed shall be based on a minimum of 4,000 gallons per month. C Multi-family residential user (more than two dwelling units including mobile home parks) and winter quarter based nonresidential user 1. Base charge per month per dwelling unit served $2.56 2. Plus, per 1,000 gallons per month $3.256 Note: 1. For multi-family customers who have not yet established a winter quarter water use at the service address, a system average of 3,400 gallons per living unit shall be billed. However, Category D rates will apply to multi-family residential units under construction during the period of service from the installation of the water meter to the date the certificate of occupancy is issued. 2. After establishment of a winter quarter use at the service address, the monthly amount billed shall be per 1,000 gallons of winter quarter water use, calculated on a monthly basis. D Minor nonresidential user 1. Per 1,000 gallons of water use, measured sewage flow or winter quarter water use, whichever is applicable, to be calculated on a monthly basis, plus the following applicable base charge: $3.091 2. Size of water meter (inches) Base charge ¾ or smaller $8.92 1 $20.59 Packet Pg. 371 1½ $41.45 2 $70.91 3 $113.29 4 $178.93 6 $784.40 8 $905.70 E and F Intermediate nonresidential user and Significant industrial user User shall pay an amount calculated to include: 1. Rate per 1,000 gallons of water use, measured wastewater flow or winter quarter water use per month, whichever is applicable; $3.091 2. PLUS a surcharge per million gallons for each milligram per liter of suspended solids in excess of 235 milligrams per liter; $3.535 3. PLUS a surcharge for the following: a. per million gallons for each milligram per liter of BOD in excess of 265 milligrams per liter; or b. per million gallons for each milligram per liter of COD in excess of 400 milligrams per liter; or c. per million gallons for each milligram per liter of TOC in excess of 130 milligrams per liter, whichever is applicable. $2.945 $1.859 $5.503 The user shall pay the calculated amount based on 1, 2 and 3 above, plus the applicable base charge set forth below: Packet Pg. 372 Size of water meter (inches) Base charge ¾ or smaller $8.92 1 $20.59 1½ $41.45 2 $70.91 3 $113.29 4 $178.93 6 $784.40 8 $905.70 G User outside City limits The rate for users outside the City limits shall be the same as for like service inside the City limits as is specified in Categories A—F and H in this Section. H Special with agreement The rate pursuant to a special wastewater services agreement approved by the City Council pursuant to § 26-290 shall be set forth in said agreement. Section 3. That Section 26-282(a) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-282. Wastewater strength or industrial surcharges and categories established. (a) The schedule ofA monthly wastewater strength surcharge forshall be paid by customers located either inside or outside the City limits shall be as followsin accordance with the following schedule: Parameter Excess over (mg/l) Rate per thousand gallons BOD 265 $0.002677 $0.002945 COD 400 $0.001690 $0.001859 Packet Pg. 373 TOC 130 $0.005003 $0.005503 TSS 235 $0.003214 $0.003535 . . . Section 4. That Section 26-289 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-289. Miscellaneous fees and charges. The following is a schedule of miscellaneous fees and charges: Description Amount (1) Connection fees and service charges Fees shall be set forth as in Subsection 26-712(b) (2) Industrial discharge permits: a. Administration $76.00 annually b. Surveillance Determined for each user annually, based on direct cost plus 15% indirect costs, billed monthly (3) Laboratory support services Determined on a case-by-case basis based on direct cost plus 15% indirect costs (4) Materials and labor provided by City Determined on a case-by-case basis based on direct cost plus 15% indirect costs (5) Charges for disposal at the Fort Collins Regional Sanitary Waste Transfer Station: a. Septic tanks, vaults, privies, portable toilets: Generated within Larimer County $0.071 per gallon Generated outside Larimer County $0.108 per gallon b. Recreational vehicle sanitary waste holding tanks: Residential customers of the City of No charge for individual disposal at Transfer Station Packet Pg. 374 Fort Collins Wastewater Utility Others $2.35 base fee plus $0.071 per gallon (6) Interest rate for wastewater service- related loans: 2.5% - 10% per annum; to be set for new loans annually based on the City's cost of capital minus 100 to 200 basis points in the administrative rules and regulations of the Financial Officer pursuant to § 26- 720 (7) Loan-related fees for wastewater service-related loans To be set based on related program costs in the administrative rules and regulations of the Financial Officer pursuant to § 26-720 (8) Miscellaneous fees Determined on a case-by-case basis based on direct costs plus 15% indirect costs Description Basis Amount (1) Connection fees and service charges Fees shall be set forth as in Subsection 26-712(b) (2) Industrial discharge permits: a. Administration Annually $76.00 b. Surveillance (on request) Determined for each user annually, based on direct cost plus 15% indirect costs, billed monthly (3) Laboratory support services (on request) Determined on a case-by-case basis based on direct cost plus 15% indirect costs (4) Materials and labor provided by City (on request) Determined on a case-by-case basis based on direct cost plus 15% indirect costs (5) Charges for disposal at the Fort Collins Regional Sanitary Waste Transfer Station: Packet Pg. 375 a. Septic tanks, vaults, privies, portable toilets: 1. Generated within Larimer County Per gallon $0.074 2. Generated outside Larimer County Per gallon $0.113 b. Recreational vehicle sanitary waste holding tanks: 1. Residential customers of the City of Fort Collins Wastewater Utility No charge for individual disposal at Transfer Station 2. Others 1. Base fee $2.46 2. Plus, per gallon $0.074 (6) Interest rate for wastewater service-related loans: 2.5% - 10% per annum; to be set for new loans annually based on the City's cost of capital minus 100 to 200 basis points in the administrative rules and regulations of the Financial Officer pursuant to § 26-720 (7) Loan-related fees for wastewater service-related loans To be set based on related program costs in the administrative rules and regulations of the Financial Officer pursuant to § 26-720 (8) Miscellaneous fees Determined on a case-by-case basis based on direct costs plus 15% indirect costs Section 5. That the modifications set forth above shall be effective for meter readings on or after January 1, 2016, and in the case of fees not based on meter readings, shall be effective for all fees paid on or after January 1, 2016. Packet Pg. 376 Introduced, considered favorably on first reading, and ordered published this 3rd day of November, 2015, and to be presented for final passage on the 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on this 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 377 ORDINANCE NO. 145, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE SEWER PLANT INVESTMENT FEES WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other obligations as set forth therein; and WHEREAS, Article IV, Chapter 26 of the City Code establishes the wastewater utility as a utility service furnished by and an enterprise of the City; and WHEREAS, City Code Sections 26-283 and 26-284 provide for sewer plant investment fees (“SPIFs”) to be based on and used for growth-related capital expansion costs of wastewater collection, transmission and treatment facilities; and WHEREAS, City Code Section 26-283 further requires that the City Manager annually review the parameters and rates of the SPIFs and also requires that the City Manager present such fees to the City Council for approval no less frequently than biennially; and WHEREAS, the City Manager and City staff have recommended to City Council adjustment of the scope of the SPIFs imposed by City Code Section 26-283 to include in its calculation the City’s quantifiable and reasonable growth-related costs for impacts to Utilities Services’ capital administrative facilities that are reasonably related to the overall cost of and required in providing wastewater services to serve new development, as permitted by Colorado law; and WHEREAS, the City Manager and City staff have also recommended to the City Council adjustment of the SPIFs as set forth herein to be effective January 1, 2016; and WHEREAS, the Water Board considered the proposed SPIFs adjustments for 2016 at its meeting on September 17, 2015 and recommended approval of the proposed adjustments by a unanimous vote; and WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the City Code to adjust the scope and rate of the PIFs as set forth herein. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes any and all determinations and findings contained in the recitals set forth above. Packet Pg. 378 Section 2. That Section 26-283(b) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-283. - Sewer plant investment fees (SPIF); basis. . . . (b) The SPIF shall be based on and used for growth-related capital expansion costs of wastewater collection, transmission, and treatment and administrative facilities that are reasonably related to the overall cost of and required in providing wastewater services to serve new development. The fee shall vary with the number of dwelling units for residential users. For nonresidential users, the fee shall be based on: (1) quantity of discharge that may be determined by size of water meter or other means of accurately measuring or calculating flow quantity as approved by the Utilities Executive Director; and (2) the level of wastewater concentration of organic and solid materials. The parameters and rates shall be reviewed by the City Manager annually and fees shall be presented to the City Council for approval no less frequently than biennially. . . . Section 3. That Section 26-284 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-284. - Sewer plant investment fees and surcharges established. (a) The schedule of sewer plant investment fees, subject to the exceptions and additional requirements provided in this Section, is as follows: Category SPIF A $3,090 B and C $2,470 for each dwelling unit or mobile home space Category Water meter size (inches) Fee D, E, F ¾ $ 6,550 1 $15,440 1½ $29,890 Packet Pg. 379 2 $58,790 3 and above Calculated on an individual basis based on peak wastewater flow (determined in the manner set forth hereinafter) but not less than the charge for a two-inch meter G Same as equivalent category, plus any special sanitation district fees H Determined pursuant to Subsection (d) of this Section Category SPIF A Single-family Per dwelling $3,500 B and C Duplex and Multi-family Per each dwelling unit or mobile home space $2,520 D, E, F Non-residential and Industrial Water meter size (inches) Fee Fee ¾ $7,130 1 $17,200 1½ $33,410 2 $59,140 3 and above Calculated on an individual basis based on peak wastewater flow (determined in the manner set forth hereinafter) but not less than the charge for a two- Packet Pg. 380 inch meter G User outside Same as equivalent category, plus any special sanitation district fees H Special Determined pursuant to Subsection (d) of this Section . . . (d) The amount of the plant investment fee and surcharge for each nonresidential surcharged user, users in Category H and any user that is expected to generate greater than its proportionate share of peak day flow at the treatment plant for the applicable category (including both contributed wastewater volume and volume related to infiltration and inflow), shall be calculated utilizing the following formula: SPIF = Site Flow × [Flow$ + (BOD × BOD $) + (TSS × TSS$ )] + I&I Flow × [Flow$ + (200 mg/l × BOD$) + (250 mg/l × TSS $)] Where: SPIF = Plant investment fee for Category H users and users discharging wastewater with average concentrations of BOD and/or TSS which exceed those average concentrations which are set forth in § 26-282(b) under Category E-34 Site Flow = The user's proportionate share of peak day flow at the treatment plant based on site flow discharge from user's site I&I Flow = That proportionate share of peak day flow due to infiltration and inflow as allocated to user's site flow discharge. I&I Flow is calculated to be 46.5% of Site Flow. Flow$ = $6.26 per gallon (unit cost of facilities attributable to treating wastewater flow) BOD = Average BOD concentration for user category or measured BOD concentration for the user as determined in accordance with Subsection (c) of this Section, but not less than 200 mg/l BOD$ = $0.0152 per mg/l (unit cost of facilities attributable to treating BOD) Packet Pg. 381 TSS = Average TSS concentration for user category or measured TSS concentration for the user as determined in accordance with Subsection (c) of this Section, but not less than 250 mg/l TSS$ = $0.0122 per mg/l (unit cost of facilities attributable to treating TSS) Where: SPIF = Plant investment fee for Category H users and users discharging wastewater with average concentrations of BOD and/or TSS which exceed those average concentrations which are set forth in § 26-282(b) under Category E-34 Site Flow = The user's proportionate share of peak day flow at the treatment plant based on site flow discharge from user's site I&I Flow = That proportionate share of peak day flow due to infiltration and inflow as allocated to user's site flow discharge. I&I Flow is calculated based on Site Flow multiplied by 46.5% Flow$ = Unit cost of facilities attributable to treating wastewater flow Per Gallon $8.76 BOD = Average BOD concentration for user category or measured BOD concentration for the user as determined in accordance with Subsection (c) of this Section, but not less than 200 mg/l BOD$ = Unit cost of facilities attributable to treating BOD Per mg/l $0.0130 TSS = Average TSS concentration for user category or measured TSS concentration for the user as determined in accordance with Subsection (c) of this Section, but Packet Pg. 382 not less than 250 mg/l TSS$ = Unit cost of facilities attributable to treating TSS Per mg/l $0.0104 . . . (f) For purposes of this Section, the proportionate share of peak day flow at the treatment plant for users in Categories D, E and F shall be deemed to be: Water Meter Size (inches) Peak Flow (gallons per day) ¾ 530 510 1 1,250 1,230 1½ 2,420 2,390 2 4,760 4,230 3 and greater Calculated on an individual basis based on user's proportionate share of peak day flow at the treatment plant (including both contributed wastewater volume and volume related to infiltration and inflow) but not less than the peak day flow for a two-inch meter Section 4. That the modifications set forth above shall be effective for all fees paid on or after January 1, 2016. Packet Pg. 383 Introduced, considered favorably on first reading, and ordered published this 3rd day of November, 2015, and to be presented for final passage on the 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on this 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 384 ORDINANCE NO. 146, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE THE STORMWATER PLANT INVESTMENT FEES WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other obligations as set forth therein; and WHEREAS, Article III, Chapter 26 of the City Code establishes the stormwater utility as a utility service furnished by and an enterprise of the City; and WHEREAS, City Council has adopted stormwater basin and City-wide master plans recommending stormwater facilities necessary to provide for proper drainage and control of flood and surface waters within the City; and WHEREAS, in 1998, City Council adopted ordinance No. 168, 1998, determining that all lands within the City benefit by the installation of such stormwater facilities; and WHEREAS, existing stormwater rate payers have paid for the design, right of way, and construction of stormwater facilities identified in the drainage basin mater plans that will benefit and be utilized by new development; and WHEREAS, City Council has determined that new development should pay its proportionate share of the costs of capital stormwater facilities in existence at the time of development in the form of a stormwater plant investment fee as established by City Code Section 26-512 (“Stormwater PIF”); and WHEREAS, City Code Section 26-511(a) requires that the City Manager review the rates and parameters for the Stormwater PIF annually and present them to City Council for approval no less frequently than biennially; and WHEREAS, on November 5, 2013, City Council adopted Ordinance No. 142, 2013, which established the Stormwater PIF now in effect; and WHEREAS, the City Manager and City staff have recommended to City Council adjustment of the scope of the Stormwater PIF imposed by City Code Section 26-512 to include in its calculation the City’s quantifiable and reasonable growth-related costs for impacts to Utilities Services’ capital administrative facilities that are reasonably related to the overall cost of and required in providing stormwater services to serve new development, as permitted by Colorado law; and Packet Pg. 385 WHEREAS, the City Manager and City staff have also recommended to the City Council adjustment of the Stormwater PIF as set forth herein to be effective January 1, 2016; and WHEREAS, the Water Board considered the proposed Stormwater PIF adjustments for 2016 at its meeting on September 17, 2015 and recommended approval of the proposed adjustments by a unanimous vote; and WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the City Code to adjust the scope and rate of the Stormwater PIF as set forth herein. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes any and all determinations and findings contained in the recitals set forth above. Section 2. That Section 26-512 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-512. - Stormwater plant investment fees established. There is hereby imposed on each and every lot or parcel of land within the City with respect to which any improvement creates an impervious surface covering more than three hundred fifty (350) square feet of the lot or parcel, and the owners thereof, a stormwater plant investment fee. The fee is deemed reasonable and necessary to pay for a new development's share of the existing equity in the capital stormwater facilities, including facilities associated with providing services that have been installed for the protection of the health, safety and welfare of the inhabitants of the City and the Utilities’ capital administrative facilities that are reasonably related to the overall cost of and required in providing stormwater services to serve new development. The stormwater plant investment fee established herein shall be determined using the base rate, the area of each parcel of land, and the runoff coefficient of the parcel. The Utilities Executive Director shall determine the stormwater plant investment fee that applies to each parcel of land as follows: (1) Runoff coefficient. The runoff coefficient of each parcel of land shall be that used in the engineering formula known as the rational method. The Utilities Executive Director shall determine the runoff coefficient for each parcel of land based on the following formula: Runoff coefficient = [(percent effective impervious area) × 0.95] + [(percent pervious area) × 0.20] + [(percent semipervious area) × 0.50)] The following definitions shall apply for the purpose of such formula: Percent effective impervious area shall mean the percentage of the total parcel area determined to constitute the equivalent impervious area on a parcel as calculated for the one-hundred-year, two-hour Fort Collins Design Storm as defined in Volume 1, Chapter Packet Pg. 386 4, of the Fort Collins Stormwater Criteria Manual. The determination shall be made using the procedures and methodology described in Volume 3, Sections 4 and 5, of the Stormwater Criteria Manual. Percent pervious area shall mean the percentage of the total parcel area that is pervious, such as lawn, open space or planted areas. Percent semipervious area shall mean the percentage of the total parcel area that is semipervious, such as gravel areas. (2) Plant investment fee base rate. The stormwater plant investment fee base rate is seven thousand eight hundred seventeen dollars ($7,817.00) per gross acre of area. hereby established as follows: Per gross acre of area $8,217 (3) Area. The stormwater plant investment fee calculation for each parcel of land shall be predicated upon the gross area in acres of the parcel. (4) Calculation. a. Initial improvements. The stormwater plant investment fee for each parcel of land shall be calculated in accordance with the following formula: Plant investment fee = (runoff coefficient) × (Plant investment fee base rate) × (area). b. Additions, expansions, increased impervious area. The stormwater plant investment fee calculation for each developed parcel of land upon which an addition or expansion is proposed, whether attached to an existing structure or not, shall be calculated in accordance with the following formula: Plant investment fee shall equal the difference between the fee as calculated in accordance with the formula set forth in Subparagraph a. of this Subsection for the parcel with all existing and proposed improvements and the same parcel with only the existing improvements. Section 3. That the modifications set forth above shall be effective for all fees paid on or after January 1, 2016. Packet Pg. 387 Introduced, considered favorably on first reading, and ordered published this 3rd day of November, 2015, and to be presented for final passage on the 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on this 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 388 Agenda Item 19 Item # 19 Page 1 AGENDA ITEM SUMMARY November 3, 2015 City Council STAFF Dan Weinheimer, Policy & Project Manager SUBJECT Resolution 2015-098 Directing City Staff to Participate in the Ongoing Colorado Oil and Gas Commission Rulemaking Related to the Governor's Oil and Gas Taskforce Recommendations 17 and 20 Endorsing and Adopting the Prehearing Statement Prepared by the City. EXECUTIVE SUMMARY The purpose of this item is to consider a prehearing statement and provide staff direction for the Colorado Oil and Gas Conservation Commission rulemaking. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION Governor John Hickenlooper issued Executive Order B2014 005 on September 8, 2014 creating a Task Force on State and Local Regulation of Oil and Gas Operations. The twenty-one member Task Force included representatives from local government, civic organizations, environmental interests, agriculture, and affected industries. In February 2015, consistent with the mandate that proposals required a two-thirds approval of the entire body to be advanced, Task Force sent nine (9) of 36 proposals to the Governor. Two of the Task Force proposals - recommendations 17 and 20 - are subject to upcoming Colorado Oil and Gas Conservation Commission (COGCC) rulemaking. Other proposals could be implemented without rulemaking. Both recommendations are meant to facilitate greater collaboration and information sharing between oil and gas operators and local governments. Recommendation 17 will address local government collaboration with oil and gas operators concerning locations for “Large Scale Oil and Gas Facilities” in “Urban Mitigation Areas,” as defined in COGCC rules. Recommendation 20 will require operator registration with a city’s Local Government Designee (“LGD”), and upon the request of a municipal LGD, submission of operational information for the purpose of incorporating potential oil and gas development into local comprehensive plans. The City has secured “party status” for the rulemaking and a multidisciplinary staff team has been engaged in prehearing preparations. The COGCC plans to conduct the rulemaking hearings November 16 and 17 in Denver. In accordance with the COGCC process, staff has submitted a prehearing statement which was limited to five (5) pages and a redline of the draft rules. A second written statement rebutting other party’s statements must be submitted by November 6. At the hearings parties will be able to offer oral comment and present additional written information. For this rulemaking, COGCC staff announced its intention to adopt new rules to incorporate recommendations 17 and 20. COGCC engaged in a prehearing stakeholder process that included convening groups of local governments (including Fort Collins) and oil and gas operators. These groups provided both oral and written comments. COGCC staff has published draft rules. Fort Collins submission reflects a desire to modify the draft 19 Packet Pg. 389 Agenda Item 19 Item # 19 Page 2 COGCC rules in order to reflect community desires for human health, property value and environmental protections. Positive steps included in the implementation of these Task Force recommendations: • Proposal to require an operator contemplating a Large UMA Facility to offer to engage the city at least 90 days before filing for a permit with COGCC • COGCC recommends having local government engaged before a surface use agreement is consummated, allowing some City input into the location of a proposed Large UMA Facility • COGCC proposes to give local governments input into the drilling and operational practices used on- site • COGCC will impose mitigation measures meant to limit impact of Large UMA Facility • COGCC proposes that oil and gas operators register their five-year (5) plan to drill with the Local Government Designee (LGD) • The business plan registration includes the City limits and growth management area (GMA) Areas for Improvement: • Staff considers the proposed definition of a Large UMA Facility as too large - COGCC draft rule equates large to eight (8) wells on a site and staff would recommend four (4) • It is unclear how COGCC arrived at the draft parameters or what nexus the draft rules have to addressing human, property or environmental impacts • COGCC’s definition of Large UMA Facility is limited to mitigating the impacts associated with drilling and does not consider impacts from a Large UMA Facility throughout the lifecycle of a well including long-term air emissions, environmental or habitat impacts • Proposal does not give voice to adjoining property owners for site location or mitigation measures • Mitigation measures are neither spelled out nor do the general categories listed in the draft rule fully address community impacts resulting from large-scale operations • Engagement on long-term planning is limited to cities and excludes counties but most Large UMA Facilities anticipated in unincorporated areas Staff will continue to engage in the COGCC process and keep City Council and the community informed through memoranda, updates to the City’s oil and gas webpage - www.fcgov.com/oilandgas <http://www.fcgov.com/oilandgas>, and other tools. ATTACHMENTS 1. Draft Rules Redline (PDF) 2. Memo re: Update-Colorado Oil and Gas Conservation Commission Rulemaking, October 27, 2015 (PDF) 3. Governors Task Force Recommendations 17 (PDF) 4. Governors Task Force Recommendation 20 (PDF) 5. Powerpoint presentation (PDF) 19 Packet Pg. 390 COGCC Staff’s Second Draft Proposed Rules Implementing Governor’s Oil and Gas Task Force Recommendation Nos. 17 and 20 October 23, 2015 Page 1 of 12 Effective Date: Following adoption by the Commission, these proposed new and amended rules will become effective twenty days after publication by the Secretary of State pursuant to 24-4-103(5), C.R,S. All provisions of these rules will be applied prospectively to any Application for Oil and Gas Location Assessment, Form 2A, for a Large UMA Facility that is pending but not yet approved as of, or submitted after, the effective date. For pending applications, pre-application notices and consultations otherwise required by the rules will be waived, but applicable best management practices and mitigation measures will be required. Recommendation No. 17 100 Series LARGE UMA FACILITY shall mean any Oil and Gas Location proposed to be located in an Urban Mitigation Area and on which: (1) the cumulative total measured depth of all new wells planned for the Location exceeds [9045,000 feet]; or (2) the cumulative new and existing on-site storage capacity for produced hydrocarbons and produced water exceeds [4,000] barrels. PROXIMATE LOCAL GOVERNMENTS shall mean Local Government whose territorial limits, or real property in which the Local Government has an ownership interest, are located within a one mile radius from a proposed or existing Oil and Gas Facility. 300 Series 305A. LOCAL GOVERNMENT NOTIFICATION AND CONSULTATION FOR LARGE UMA FACILITIES. a. Notice of Intent to Construct a Large UMA Facility. No less than 90 days prior to submitting a Form 2A to the Commission and before an operator has a final contract with the surface owner for a specific location, an operator proposing a Large UMA Facility shall provide written Notice of Intent to Construct a Large UMA Facility to the following: (1) the local government with land use authority over the proposed Oil and Gas Llocation of a Large UMA Facility; (2) Proximate Llocal Ggovernments with land use authority within [1,000 feetone mile of the proposed Large UMA Facility (for purposes of this Rule 305A, “Proximate Local Governments”); and Comment [BRY1]: See proposed “Proximate Local Government” definition addition to 100 Series above ATTACHMENT 1 19.1 Packet Pg. 391 Attachment: Draft Rules Redline (3757 : Participation in Colorado Oil and Gas Conservation Commission Rulemaking) Page 2 of 12 COGCC Staff’s Second Draft Proposed Rules Implementing Task Force Recommendation Nos.17 and 20 October 23, 2015 (3) the surface owner of the lands on which a Large UMA Facility is proposed (4) adjoining surface land owners to the parcel of land upon which the site for the Large UMA Facility is proposed. b. Content of Notice of Intent to Construct a Large UMA Facility. A Notice of Intent to Construct a Large UMA Facility shall include the following information: (1) a description and depiction of the proposed Oil and Gas Location and the planned facilities; (2) a description of the siting rationale for proposing to locate the facility within the Urban Mitigation Area, including a prioritized description of other sites being considered; (3) an offer to consult with the local government with land use authority over the proposed location to seek agreement regarding siting the Large UMA Facility, considering alternative locations and potential best management practices; (4) an offer to meet with Proximate Local Governments regarding potential best management practices for the proposed Large UMA Facility; and (5) an offer to meet with the surface owner of the lands on which the operator proposes to locate a Large UMA Facility regarding siting of the proposed facility. c. Consultation between the Operator and the Local Government with Land Use Authority. If the local government with land use authority over the proposed Large UMA Facility accepts an operator’s offer to consult in writing within 45 days of receipt of a Notice of Intent to Construct a Large UMA Facility, the operator shall consult in good faith regarding siting of, and best management practices and mitigation measures to be employed at, the proposed location. (1) The Director will participate in the consultation process between the local government and the operator at the request of either. (2) The surface owner’s siting requests and concerns, and those of adjoining property owners, will be considered as part of the consultation. (3) If the local government and operator are unable to reach agreement regarding the location, best management practices, and mitigation measures 19.1 Packet Pg. 392 Attachment: Draft Rules Redline (3757 : Participation in Colorado Oil and Gas Conservation Commission Rulemaking) Page 3 of 12 COGCC Staff’s Second Draft Proposed Rules Implementing Task Force Recommendation Nos.17 and 20 October 23, 2015 for a proposed Large UMA Facility, the operator shall offer in writing to engage in mediation with the local government. A. If the local government agrees to mediation, the operator and the local government shall jointly select a mediator or mediators and share the cost of mediation. B. Upon selection of a mediator(s), the mediation shall conclude within 45 days unless the operator and local government agree to an extension of time. C. The Director is not a party to the mediation, but at the request of either the local government or the operator, the Director shall provide technical assistance to the parties or the mediator to the extent the Director is able. (4) Nothing in this Rule 305A is intended to or shall be interpreted to alter, impair, or negate any existing authority a local government may have to regulate an Oil and Gas Location, so long as such local regulation is not in operational conflict with the Act or regulations promulgated under the Act. This Rule 305A.c. does not prescribe any particular form of consultation or local land use planning or approval process, nor does it limit or supersede any local government land use planning or approval process. d. Meeting with Proximate Local Governments. (1) Within 20 days of receiving the Notice of Intent to Construct a Large UMA Facility, a Proximate Local Government may request a meeting with the operator and the Director to discuss alternative siting, potential best management practices and mitigation measures for the proposed Large UMA Facility reasonably related to potential significant adverse impacts to public health, safety and welfare, including the environment and wildlife resources, that are within the Commission's jurisdiction to remedy. (2) The Director will schedule the meeting with Proximate Local Government upon request. (3) The Director will provide a written response to a Proximate Local Government’s written request for alternative siting, specific best management practices and mitigation measures at a proposed Large UMA Facility. (4) A Proximate Local Government’s approval of a proposed Large UMA Facility’s site is not required, nor may a Proximate Local Government be an Applicant for a hearing on a Form 2A under Rule 507.b.(7). 19.1 Packet Pg. 393 Attachment: Draft Rules Redline (3757 : Participation in Colorado Oil and Gas Conservation Commission Rulemaking) Page 4 of 12 COGCC Staff’s Second Draft Proposed Rules Implementing Task Force Recommendation Nos.17 and 20 October 23, 2015 e. Meeting with the Surface Owner. At the request of the surface owner of the lands on which the operator proposes to locate a Large UMA Facility, the operator and Director will meet with the surface owner regarding siting of the proposed Large UMA Facility. f. Initiating the Form 2A Process. (1) The Director will reject as incomplete a Form 2A submitted for a Large UMA Facility if the operator has not certified one of the following is true: A. the operator reached agreement regarding siting with the local government with land use authority; B. the local government with land use authority waived the Rule 305A procedures or did not timely respond to the Notice of Intent to Construct; or C. the operator complied with the requirements of subsection 305A.C. of this Rule and was unable to reach agreement with the local government with land use authority regarding siting. (2) An operator may initiate the Form 2A process once any of the following occur: A. The operator and the local government with land use authority reach agreement regarding a proposed Large UMA Facility’s site, and the operator provides written confirmation of the agreement to the Director in accordance with Rule 303.b.(3)K. B. The local government with land use authority waives the Rule 305A procedures and the operator provides written confirmation of the waiver to the Director in accordance with Rule 303.b.(3)K. C. The local government with land use authority fails to respond in writing within 45 days of receiving the Notice of Intent to Construct a Large UMA Facility, and the operator submits a copy of the Notice of Intent to Construct a Large UMA Facility and evidence of receipt by the local government to the Director in accordance with Rule 303.b.(3)K. (3) If the local government and the operator engage in consultation but are unable to reach agreement regarding the location for a proposed Large UMA Facility and the local government rejects the offer to mediate or the mediation does not result in an agreement regarding a proposed Large UMA Facility’s site, the operator may initiate the Form 2A process with its preferred site. 19.1 Packet Pg. 394 Attachment: Draft Rules Redline (3757 : Participation in Colorado Oil and Gas Conservation Commission Rulemaking) Page 5 of 12 COGCC Staff’s Second Draft Proposed Rules Implementing Task Force Recommendation Nos.17 and 20 October 23, 2015 A. After the Director’s technical review is complete, the Director will notice the Form 2A for a Commission hearing. Such a hearing shall be expedited but will be held only after both the 20 days’ notice and the newspaper notice are given as required by Section 34-60-108, C.R.S. However, the hearing can be held after the newspaper notice if all of the entities listed under Rule 503.b. waive the 20-day notice requirement. B. The hearing will be conducted pursuant to Rule 528.a. For purposes of the hearing, the operator will be the Applicant and the local government will be the respondent. 600 Series 604.c.(4) Large UMA Facilities. Large UMA Facilities should be built and operated using the best available technology to avoid or minimize adverse impacts to adjoining land uses. To achieve this objective, the Director will require a combination of best management practices and required mitigation measures, and may also impose site-specific conditions of approval related to operational and technical aspects of a proposed Large UMA Facility. No best management practice, mitigation measure, or condition of approval required pursuant to this Rule 604c.(4) is intended to or shall be interpreted to alter, impair, or negate any existing authority a local government may have to regulate an Oil and Gas Location, so long as such local regulation is not in operational conflict with the Act or regulations promulgated under the Act. Mitigation measures shall take into account the location of impacts including, but not limited to, drilling, well completion and stimulation, anticipated production, and planned on-site storage tanks, in proximity to population, community assets, 100- year floodplain, and environmental habitat areas. A. Required Best Management Practices. A Form 2A for a Large UMA Facility will not be approved until best management practices addressing all of the following have been incorporated into the Oil and Gas Location Assessment permit. i. Fire, explosion, chemical, and toxic emission hazards, including lightning strike hazards. ii. Fluid leak detection, repair, reporting, and record keeping for all above and below ground on-site fluid handling, storage, and transportation equipment. iii. Automated well shut-in control measures to prevent gas venting during emission control system failures or other upset conditions. 19.1 Packet Pg. 395 Attachment: Draft Rules Redline (3757 : Participation in Colorado Oil and Gas Conservation Commission Rulemaking) Page 6 of 12 COGCC Staff’s Second Draft Proposed Rules Implementing Task Force Recommendation Nos.17 and 20 October 23, 2015 iv. Zero flaring or venting of gas upon completion of flowback, excepting upset or emergency conditions, or with prior written approval from the Director for necessary maintenance operations. v. Storage tank pressure and fluid management. vi. Proppant dust control. B. Required Mitigation Measures. The following mitigation measures will be imposed as permit conditions on all Large UMA Facility Oil and Gas Location Assessment Permits to effectively mitigate potential impacts to public health, safety, and welfare, including the environment. i. All Rule 604.c.(3).B Exception Zone Setback mitigation measures are required for all Large UMA Facilities, regardless of whether the Large UMA Facility is located in the Buffer Zone or the Exception Zone. ii. The Director, in consultation with the operator, will impose a time limit on the duration of drilling, completion, and stimulation operations for the location, measured from the move-in-rig-up date to the last day of stimulation operations. In establishing the duration limit, the Director will consider site-specific conditions, including but not limited to: the distance to and number of nearby Residential Building Units; operational features such as the number, horsepower, and fuel source of engines and generators anticipated to be in use; whether stimulation operations will occur on-site or remotely; stimulation water sources and delivery; and volume of heavy truck traffic to and from the location during drilling, completion, and stimulation operations. The Director will to grant a one-time extension of the duration limit, not to exceed 30 days, for bona fide, unexpected technical difficulties or force majeure conditions. Before setting the duration limit, tThe Director shall confer with local governments that receive notice of a Large UMA Facility pursuant to Rule 305A, and the surface owner concerning the duration limit. C. Site Specific Mitigation Measures. In addition to the requirements of subsections A. and B. of this Rule 604.c.(4), the Director may impose site-specific conditions of approval to ensure that anticipated impacts are mitigated to the maximum extent achievable. The following non-exclusive list illustrates types of potential impacts the Director may evaluate, for which site-specific conditions of approval may be required: i. Noise. ii. Ground and surface water protection. 19.1 Packet Pg. 396 Attachment: Draft Rules Redline (3757 : Participation in Colorado Oil and Gas Conservation Commission Rulemaking) Page 7 of 12 COGCC Staff’s Second Draft Proposed Rules Implementing Task Force Recommendation Nos.17 and 20 October 23, 2015 iii. Visual impacts associated with placement of wells or production equipment. iv. Remote stimulation operations. v. Air emissions anticipated from drilling, completion and operation and maintenance of site. In considering the need for site-specific mitigation measures, the Director will consider and give substantial deference to mitigation measures or best management practices agreed to by the operator and local government with land use authority. D. The Director retains discretion to require conditions of approval to address site-specific conditions other than those identified in subsection 604.c.(4)C., above, at any Large UMA Facility. E. Nothing in this Rule 604.c.(4) shall be construed to limit the Director’s discretion to impose conditions of approval on a Form 2A for any Oil and Gas Location based on site-specific conditions. Recommendation No. 20 300 Series 302.c. Operator Registration with Local Governments for Advance Planning 1. When used in this subpart, “local jurisdiction” means a home rule or statutory city, town, territorial charter city, or city and county. 2. Beginning on March 1, 2016, all operators that have filed a Form 1 with the Commission shall register with the Local Governmental Designee (“LGD”) of each local jurisdiction in which it has current or planned oil and gas operations. 3. An LGD may request any operator registered within its jurisdiction to provide the following information to the LGD and the Commission’s Local Government Liaison (“LGL”): a. Based on an operator’s current business plan as of the date of the request, a good faith estimate of the number of wells the operator intends to drill in the next five years in the local jurisdiction [,including the jurisdiction’s growth management area]. [A publicly traded company’s well estimates may be 19.1 Packet Pg. 397 Attachment: Draft Rules Redline (3757 : Participation in Colorado Oil and Gas Conservation Commission Rulemaking) Page 8 of 12 COGCC Staff’s Second Draft Proposed Rules Implementing Task Force Recommendation Nos.17 and 20 October 23, 2015 based on reserves classified as “proved undeveloped” for SEC reporting purposes.] b. A map showing the location within the local jurisdiction [,including the jurisdiction’s growth management area,] of an operator’s existing well sites and related production facilities; sites for which the operator has approved, or has submitted applications for, [drilling and spacing orders,] Form 2s or Form 2As; and, sites the operator has identified for development on its current drilling schedule for which it has not yet submitted applications for Commission permits. c. An operator will provide estimates requested pursuant to this subsection 3 using reasonable business judgment based on information known to the operator at the time the estimates are submitted. Estimates provided by the operator may be subject to change at any time at the operator’s sole discretion. d. Operators shall provide updates to this planning annually using the same good faith estimate of anticipated activities and highlighting changes to previous reporting. Conforming Rule Changes 303.b.(3)K. Certification of Local Government Notification in Urban Mitigation Areas. i. If the proposed Oil and Gas Location is within an Urban Mitigation Area, but is not a Large UMA Facility, the operator shall submit evidence that the local government received the pre-application notice required by Rule 305.a.(1). ii. For a Large UMA Facility, the operator shall certify on the Form 2A that it complied with Rule 305A, or that the local government with land use authority waived the notification and consultation procedures in Rule 305A.a.(1) and 305A.c. The operator shall also submit evidence that the Proximate Local Government received the Notice of Intent to Construct a Large UMA Facility no less than 30 days prior to the operator’s Form 2A submittal. 19.1 Packet Pg. 398 Attachment: Draft Rules Redline (3757 : Participation in Colorado Oil and Gas Conservation Commission Rulemaking) Page 9 of 12 COGCC Staff’s Second Draft Proposed Rules Implementing Task Force Recommendation Nos.17 and 20 October 23, 2015 303.c. PROCESSING TIME FOR APPROVALS UNDER THIS SECTION. (1) In accordance with Rule 216.f.(3), where a proposed Oil and Gas Location is covered by an approved Comprehensive Drilling Plan and no variance is sought from such Plan or these rules not addressed in the Comprehensive Drilling Plan, the Director shall give priority to and approve or deny an Application for Permit-to Drill, Form 2, or, where applicable, Oil and Gas Location Assessment, Form 2A, that is not a Large UMA Facility within thirty days of a determination that such application is complete pursuant to Rule 303.h, unless significant new information is brought to the attention of the Director. The Director shall give priority to a Form 2A proposing a Large UMA Facility that is consistent with a Comprehensive Drilling Plan, or a local government comprehensive plan that specifies locations for oil and gas facilities, and shall approve or deny such an application within sixty days. (2) Request for Hearing. A. An operator may request a hearing before the Commission on a permit application if the Director has not issued a decision on: i. An Application for Permit-to-Drill, Form 2, within seventy-five (75) days of a determination that the application is complete; ii. An Oil and Gas Location Assessment, Form 2A, for a Location that is not a Large UMA Facility within seventy-five (75) days of a determination that the application is complete; or iii. An Oil and Gas Location Assessment, Form 2A, for a Large UMA Facility within one hundred fifty (150) days of a determination that the application is complete. B. Such a hearing shall be expedited but will be held only after both the 20 days’ notice and the newspaper notice are given as required by Section 34-60-108, C.R.S. However, the hearing can be held after the newspaper notice if all of the entities listed under Rule 503.b waive the 20-day notice requirement. 305.a.(1) Urban Mitigation Area Notice to Local Government. For Oil and Gas Locations within an Urban Mitigation Area, an Operator shall notify the local government in writing that it intends to apply for an Oil and Gas Location Assessment. Such notice shall be provided to the Local Governmental Designee in those jurisdictions that have designated an LGD, and to the planning department in jurisdictions that have no LGD. 19.1 Packet Pg. 399 Attachment: Draft Rules Redline (3757 : Participation in Colorado Oil and Gas Conservation Commission Rulemaking) Page 10 of 12 COGCC Staff’s Second Draft Proposed Rules Implementing Task Force Recommendation Nos.17 and 20 October 23, 2015 The notice shall include a general description of the proposed Oil and Gas Facilities, the location of the proposed Oil and Gas Facilities, the anticipated date operations (by calendar quarter and year) will commence, and that an additional notice pursuant to Rule 305.c. will be sent by the Operator. This notice shall serve as an invitation to the local government to engage in discussions with the Operator regarding proposed operations and timing, local government jurisdictional requirements, and opportunities to collaborate regarding site development. A local government may waive its right to notice under this provision at any time by providing written notice to an Operator and the Director. If the local government and operator have reached agreement regarding the site for a proposed Large UMA Facility in accordance with Rule 305A, the notice requirement of this subpart does not apply. 305.d. Comment Period. The Director shall not approve a Form 2A, or any associated Form 2, for a proposed Well or Production Facility during the comment period, and shall accept and immediately post on the Commission’s website any comments received from the public, the Local Governmental Designee, the Colorado Department of Public Health and Environment, or Colorado Parks and Wildlife regarding the proposed Oil and Gas Location. (1) The comment period for a Form 2 or a Form 2A for an Oil and Gas Location that is not a Large UMA Facility is twenty (20) days from posting pursuant to Rule 305.b. A. The Director shall extend the comment period to thirty (30) days upon the written request during the twenty (20) day comment period by the Local Governmental Designee, the Colorado Department of Public Health and Environment, Colorado Parks and Wildlife, the Surface Owner, or an owner of surface property who receives notice under Rule 305.c.(1)(A).iii. B. For Oil and Gas Locations proposed within an Urban Mitigation Area or within five hundred (500) feet of a Building Unit, the Director shall extend the comment period to not more than forty (40) days upon the written request of the Local Governmental Designee received within the original 20 day comment period. (2) For a Large UMA Facility, the comment period is forty (40) days from posting pursuant to Rule 305.b. (3) At the Director’s sole discretion, the comment periods identified above may be extended or re-opened for a period not to exceed twenty (20) days. 19.1 Packet Pg. 400 Attachment: Draft Rules Redline (3757 : Participation in Colorado Oil and Gas Conservation Commission Rulemaking) Page 11 of 12 COGCC Staff’s Second Draft Proposed Rules Implementing Task Force Recommendation Nos.17 and 20 October 23, 2015 (4) The Director shall post notice of an extension granted under this provision on the COGCC website within twenty-four (24) hours of receipt of the extension request. 306.d.(1) Consultation to Occur. A. The Commission shall consult with the Colorado Department of Public Health and Environment on an Application for Permit-to-Drill, Form 2, or an Oil and Gas Location Assessment, Form 2A, where: i. Within fourteen (14) days of notification pursuant to Rule 305, the Local Governmental Designee requests the participation of the Colorado Department of Public Health and Environment in the Commission’s consideration of an Application for Permit-to-Drill, Form 2, or Oil and Gas Location Assessment, Form 2A, based on concerns regarding public health, safety, welfare, or impacts to the environment; ii. The operator seeks from the Director a variance from, or consultation is otherwise required or permitted under, a provision of one of the following rules intended for the protection of public health, safety, welfare, or the environment: aa. Rule 317B. Public Water System Protection; bb. Rule 325. Underground Disposal of Water; cc. Rule 603. Statewide Location Requirements for Oil and Gas Facilities, Drilling, and Well Servicing Operations; dd. Rule 604. Setback and Mitigation Measures for Oil and Gas Facilities, Drilling, and Well Servicing Operations; ee. Rule 608. Coalbed Methane Wells; ff. Rule 805. Odors and Dust; gg. 900-Series E&P Waste Management; or hh. Rule 1002.f. Stormwater Management. All requests for variances from these rules must be made at the time an operator submits a Form 2A. 19.1 Packet Pg. 401 Attachment: Draft Rules Redline (3757 : Participation in Colorado Oil and Gas Conservation Commission Rulemaking) Page 12 of 12 COGCC Staff’s Second Draft Proposed Rules Implementing Task Force Recommendation Nos.17 and 20 October 23, 2015 iii. The operator submits an Application for an Oil and Gas Location Assessment, Form 2A, for a Large UMA Facility. 604.b.(1) Existing Oil and Gas Locations. The Director may grant an exception to setback distance requirements set forth in Rule 604 within a Designated Setback Location when a Well or Production Facility is proposed to be added to an existing or approved Oil and Gas Location if the Director determines alternative locations outside the applicable setback are technically or economically impracticable; mitigation measures imposed in the Form 2 or Form 2A will eliminate, minimize or mitigate noise, odors, light, dust, and similar nuisance conditions to the extent reasonably achievable; the operator has complied with the notice and consultation requirements of Rule 305A, if applicable; the proposed location complies with all other safety requirements of these Commission Rules; and: 19.1 Packet Pg. 402 Attachment: Draft Rules Redline (3757 : Participation in Colorado Oil and Gas Conservation Commission Rulemaking) ATTACHMENT 2 19.2 Packet Pg. 403 Attachment: Memo re: Update-Colorado Oil and Gas Conservation Commission Rulemaking, October 27, 2015 (3757 : Participation in Colorado 19.2 Packet Pg. 404 Attachment: Memo re: Update-Colorado Oil and Gas Conservation Commission Rulemaking, October 27, 2015 (3757 : Participation in Colorado Page 5 Task Force Recommendations Task Force Recommendations The following nine recommendations have been approved by the Colorado Oil and Gas Task Force as its final recommendations to the Governor. Each recommendation included in the Task Force Recommendations exceeded the two-thirds voting threshold established by the Governor. RECOMMENDATION TO FACILITATE COLLABORATION OF LOCAL GOVERNMENTS, COLORADO OIL AND GAS CONSERVATION COMMISSION AND OPERATORS RELATIVE TO OIL AND GAS LOCATIONS AND URBAN PLANNING (Recommendation #17) TOTALS: Yes: 21 No: 0 Barwinski Y Holly Y Quinn Y Buescher Y Kelly Y Rau Y Cleveland Y Kourlis Y Robbins Y Dea Y Lachelt Y Sura Y Fitzgerald Y Moreno Y Toor Y George Y Pearce Y Wedgeworth Y Goldin-Dubois Y Peppler Y Woodall Y Agency: Colorado Oil and Gas Conservation Commission (COGCC) Recommendation: Recommend COGCC rulemaking to address Local Government collaboration with Operators concerning locations for “Large Scale Oil and Gas Facilities” in “Urban Mitigation Areas,” as defined in COGCC rules. The COGCC should initiate a rules making that would address three related issues: First, it would define and adopt a process for enhancing local government participation during the COGCC Application for Permit to Drill (“APD”) process concerning location(s) of Large Scale Oil and Gas Facilities in Urban Mitigation Areas, consistent with the proposal. Second, the rulemaking would also define what constitutes “Large Scale Oil and Gas Facilities” taking into consideration scale, proximity, and intensity criteria. Third, address the authority of, and procedures to be used by the Director of the COGCC to regulate the location when permitting Large Scale Oil and Gas Facilities for the purpose of reducing impacts to and conflicts with communities. This shall include siting tools to locate facilities away from residential areas when feasible. Where siting solutions are not possible, the Director would require mitigations to limit the intensity and scale of the operations, as well as other mitigations, to lessen the impacts on neighboring communities. Process: This process is intended to provide interested local governments a defined and timely opportunity to participate in the siting of such large-scale multi-well oil and gas production facilities, ATTACHMENT 3 19.3 Packet Pg. 405 Attachment: Governors Task Force Recommendations 17 (3757 : Participation in Colorado Oil and Gas Conservation Commission Rulemaking) Page 6 Task Force Recommendations before an Operator finalizes such locations. This would also provide an opportunity to address location of right-of-way for pipelines, facility consolidation, access routes, and to otherwise mitigate impacts within the Urban Mitigation Area. The purpose of this new rule would be to create an incentive for early resolution of concerns about siting in urban areas, and could be done as part of an Operator’s permitting process at the COGCC. Unless an agreement was already in place with an interested affected local government concerning locations within its boundaries, an Operator must obtain local government consultation during the Operator’s COGCC APD approval process concerning such facilities in Urban Mitigation Areas. Other local governments may continue to use the current local government designee (“LGD”) comment, permit condition and hearing process. Nothing in this recommendation is intended to or shall be interpreted to alter any existing land use authority local government may have over oil and gas operations. As set forth, this process would not apply in cases where the Operator and the local government have already negotiated an MOU, site plan review, comprehensive development plan or have otherwise agreed on the location of a multi-well production facility. When an Operator intends to permit an oil and gas location that meets the criteria for the process, the following steps would be involved: 1. If a local government has in place a comprehensive plan or master plan that specifies locations for oil and gas operations, and if an application would be consistent with the terms of that plan, the COGCC shall include a provision in its rules that provides for expedited consideration of the application. 2. Prior to selecting an oil and gas location, the Operator must offer to meet with the LGD and a designated representative of the COGCC to seek location government consultation concerning locations for such large-scale facilities. Such consultation, cased on the local government planning perspectives, would be designed to anticipate community concerns. Should the local government decide to use this process, the first meeting begins a collaboration by which the Operator and the local government, and recognizing the requests and concerns of the surface owner on whom such facilities may be located, can agree on site location and operational practices. These agreements can be documented in: a. Memorandum of Understanding (MOU) b. Best Management Practices (BMP’s) on the COGCC permit c. Comprehensive Drilling Plan (CDP) d. Unconventional Resource Units e. Local Government Land Use Permit f. Or any other mechanism in which agreement is established 3. Operator and local government are required to work towards a compromise concerning locations, and the Operator is required to submit the agreement reflected in paragraph 1 upon submittal of an Oil and Gas Location Assessment (“OGLA”; Form 2A) to the COGCC, or otherwise indicate whether the local government has approved the location for the multi-well production facility. The COGCC staff and local government liaison would be charged, if necessary, with convening meetings of the local government, Operator, and COGCC staff to consider alternative locations 19.3 Packet Pg. 406 Attachment: Governors Task Force Recommendations 17 (3757 : Participation in Colorado Oil and Gas Conservation Commission Rulemaking) Page 7 Task Force Recommendations for multi-well production facilities and to encourage locations that consider distances between building units and/or high occupancy units 4. A local government’s request concerning location must be based on a set of established set of reasonable standards or criteria addressing land use and surface related issues resulting from the proposed oil and gas operation, balanced with consideration of responsible development, production, and utilization of the natural resources of oil and gas in the state of Colorado in a manner consistent with protection of public health, safety, and welfare, including protection of the environment and wildlife resources, and include consideration of surface and mineral owner wished. 5. If a compromise cannot be reached concerning proposed locations within reasonable time frame (to be determined during rulemaking) after the first meeting, but before the OGLA is submitted, the Operate shall offer to engage in mediation with the local government. If the local government agrees to mediation, they shall jointly select a mediator or mediators and shall share in the cost of mediation. Upon selection of a mediator(s), the process shall conclude within 45 days unless the two parties jointly agree to an extension. The parties may request the assistance of COGCC staff, and if they do so the COGCC Director shall exert his or her best efforts to provide the requested technical assistance. If mediation does not occur, the Operator may submit its OGLA and APD for processing and approval. 6. If the parties reach agreement, they may memorialize that agreement in any of the forms outlined above. 7. If the parties are unable to reach agreement, on their own or with the mediation, and the timing process of mediation has lapsed, the Operator will finalize its OGLA with its settled location and then will be required to present its OGLA to the full COGCC at an expedited hearing. The COGCC will hear evidence from the local government, the Operator and the COGCC staff before the OGLA can be approved. In no case will the hearing on the OGLA be greater than 90 days from the first meeting with the local government. In order to approve the OGLA, the COGCC must weigh the data and information presented from both parties as the proposed location(s), including the standards discussed in paragraph 4. Rationale: The Task Force heard concerns from numerous parties about the location of large multi-well production facilities in close proximity to urbanized areas. The scale and intensity of multi-well production facilities that are in close proximity to neighborhoods has led to a need for local governments to represent their constituents to a greater degree than in the past. Local governments have expressed the need for more involvement earlier in the process of permitting oil and gas locations, in particular, to the siting of large-scale multi-oil and gas well production facilities in order to represent land use impacts and community concerns (such as those of nearby homeowners, schools, etc.). The above outlined process allows for local governments to get advance notice from Operators and begin discussions with Operators prior to locations being selected. It provides a mechanism for local governments to influence locations prior to permitting at the COGCC and establishes a mechanism for 19.3 Packet Pg. 407 Attachment: Governors Task Force Recommendations 17 (3757 : Participation in Colorado Oil and Gas Conservation Commission Rulemaking) Page 8 Task Force Recommendations collaboration among local governments, oil and gas Operators, and the COGCC. This recommendation is consistent with COGCC Director Matt Lepore’s suggestion, and that of other Task Force members, including Matt Sura, that the Task Force considers scale, proximity, and intensity in addressing location of multi-well production facilities. 19.3 Packet Pg. 408 Attachment: Governors Task Force Recommendations 17 (3757 : Participation in Colorado Oil and Gas Conservation Commission Rulemaking) Page 9 Task Force Recommendations RECOMMENDATION TO INCLUDE FUTURE OIL AND GAS DRILLING AND PRODUCTION FACILITIES IN EXISTING LOCAL COMPREHENSIVE PLANNING PROCESSES (Recommendation #20) TOTALS: Yes: 21 No: 0 Barwinski Y Holly Y Quinn Y Buescher Y Kelly Y Rau Y Cleveland Y Kourlis Y Robbins Y Dea Y Lachelt Y Sura Y Fitzgerald Y Moreno Y Toor Y George Y Pearce Y Wedgeworth Y Goldin-Dubois Y Peppler Y Woodall Y Agency or General Assembly: Colorado Oil & Gas Conservation Commission (COGCC) Description: Proposal to require operator registration with certain Local Government Designees (“LGD”), and upon the request of a municipal LGD, submission of operational information for the purpose of incorporating potential oil and gas development into local comprehensive plans. Key elements of this recommendation include: 1. Beginning on January 1, 2016, all operators registered with the COGCC shall also register with the LGD of each municipality in which it has current or planned oil and gas operations. Upon the request of a municipal LGD, the operator shall provide the following information, with a copy to the COGCC Local Government Liaison (“LGL”): a. Based on the current business plan of the operator, a good faith estimate of the number of wells (not including non-operated wells) that such operator intends to drill in the next five years in the municipal jurisdiction, corresponding to the operator’s internal analysis of reserves classified as “proved undeveloped” for SEC reporting purposes. b. A map showing the location of the operator’s existing well sites and related production facilities; sites for which operator has, or has made application for, COGCC permits; and, sites identified for development on the operator’s current drilling schedule for which it has not yet made application for COGCC permits. The plan provided to the LGD is acknowledged to be subject to change at the operator’s sole discretion, and shall be updated by the operator if materially altered. 2. The Planning Department of participating municipalities will prepare a comprehensive map of the potential future drilling and production sites within its jurisdiction, overlaid on the existing Comprehensive Plan Map. 3. Beginning on July 1, 2016, and upon material alteration, the municipality will provide the Comprehensive Plan Map, overlaid with future drilling and production sites to each of the registered operators and to the LGL. On such map, the municipality will identify sites that it considers compatible with the current and planned future uses of the area; sites where it anticipates minor ATTACHMENT 4 19.4 Packet Pg. 409 Attachment: Governors Task Force Recommendation 20 (3757 : Participation in Colorado Oil and Gas Conservation Commission Rulemaking) Page 10 Task Force Recommendations issues to be resolved by negotiation with the operator; and, sites where it anticipates significant conflicts with current and planned future uses as indicated in the Comprehensive Plan. 4. Disputes between local governments and operators will be resolved through mediation as more thoroughly described in Recommendation 13b. Rationale: Local governments throughout the state have complicated and lengthy processes to develop Comprehensive Plans. The plan ultimately reflects the community’s goals and aspirations in terms of land development and preservation. The plan guides public policy in terms of transportation, utilities, land use, open space, recreation and housing. Oil and gas development is within the purview of the State of Colorado, and long-term planning to the extent it is performed, is often disjointed and not coordinated with local governments, most acutely in municipalities. Accordingly, when oil and gas development comes to a municipality, it can result in conflict with the existing, documented, community goals and aspirations. This proposal is to recommend the framework which will facilitate incorporation of drilling plans into municipal comprehensive planning. 19.4 Packet Pg. 410 Attachment: Governors Task Force Recommendation 20 (3757 : Participation in Colorado Oil and Gas Conservation Commission Rulemaking) Oil and Gas Rulemaking November 3, 2015 Dan Weinheimer ATTACHMENT 5 19.5 Packet Pg. 411 Attachment: Powerpoint presentation (3757 : Participation in Colorado Oil and Gas Conservation Commission Rulemaking) Background • Interest groups initiated state ballot measures • Governor Hickenlooper – Cong. Polis compromise • Governor initiates Task Force (September 2014) • Balance land use issues in a way that minimizes conflicts while protecting communities and allowing reasonable access to private mineral rights • Task Force offers nine recommendations • Rulemaking to implement two recommendations: 1. Recommendation 17 2. Recommendation 20 2 19.5 Packet Pg. 412 Attachment: Powerpoint presentation (3757 : Participation in Colorado Oil and Gas Conservation Commission Rulemaking) Process 3 Governor’s TF recommendations February 2015 COGCC outreach July and August 2015 Draft rules issued October 22 Prehearing statement October 30 Prehearing rebuttal deadline November 6 Rulemaking hearings November 16 and 17 19.5 Packet Pg. 413 Attachment: Powerpoint presentation (3757 : Participation in Colorado Oil and Gas Conservation Commission Rulemaking) Recommendation 17 Local Government collaboration with Operators concerning locations for “Large Scale Oil and Gas Facilities” in “Urban Mitigation Areas” 4 Support • 90 day notice • Surface Use Agreement role • City input on drilling and operational practices • Mitigate Large UMA Facility Amend • Clarify scientific basis for COGCC proposal • Size of proposed Large UMA Facility • Mitigate lifecycle impacts of site – not just drilling impacts • Allow comment from adjoining owners 19.5 Packet Pg. 414 Attachment: Powerpoint presentation (3757 : Participation in Colorado Oil and Gas Conservation Commission Rulemaking) Recommendation 20 Register with Local Government; report operational information for the purpose of incorporating oil and gas into local comprehensive plans 5 Support • Operators register with City • Share good faith estimate of five-year (5) operations plan • Planned registration includes growth management area (GMA) Amend • Include counties in rule • Protect local land use authority 19.5 Packet Pg. 415 Attachment: Powerpoint presentation (3757 : Participation in Colorado Oil and Gas Conservation Commission Rulemaking) Themes 1. Protect human health and safety, property rights and environmental resources 2. Link site impacts to the required mitigation throughout lifecycle of the site 3. Clarify mitigation measures COGCC plans to use 4. Encourage engagement with operators on plans and location of sites 5. Protect and preserve local land use authority 6 19.5 Packet Pg. 416 Attachment: Powerpoint presentation (3757 : Participation in Colorado Oil and Gas Conservation Commission Rulemaking) RESOLUTION 2015-098 OF THE COUNCIL OF THE CITY OF FORT COLLINS DIRECTING CITY STAFF TO PARTICIPATE IN THE ONGOING COLORADO OIL AND GAS COMMISSION RULEMAKING RELATED TO THE GOVERNOR’S OIL AND GAS TASKFORCE RECOMMENDATIONS 17 AND 20 ENDORSING AND ADOPTING THE PREHEARING STATEMENT PREPARED BY CITY STAFF WHEREAS, on September 8, 2014, Colorado Governor John Hickenlooper issued Executive Order B2014-005, creating a task force on state and local regulation of oil and gas operations (the “Governor’s Oil and Gas Task Force”), which task force consisted of 21 representatives from local government, civic organizations, environmental interests, agriculture, and affected industries; and WHEREAS, in February of 2015, the Governor’s Oil and Gas Task Force forwarded its report to the Governor, including nine Recommendations, two of which, Recommendations 17 and 20, were intended to facilitate greater collaboration and information sharing between oil and gas operators and local governments, to be instituted through the adoption of regulations by the Colorado Oil and Gas Conservation Commission (“COGCC”); and WHEREAS, Recommendation 17 directs the COGCC to create rules to address local government collaboration with oil and gas operators regarding locations for large scale oil and gas facilities in Urban Mitigation Areas; and WHEREAS, Recommendation 20 directs the COGCC to require oil and gas operators registered with the COGCC to also register with the LGD of each municipality where it has current or planned oil and gas operations and to submit information regarding such existing and planned operations; and WHEREAS, the COGCC has initiated its rulemaking process to create rules as directed by Recommendations 17 and 20, and has scheduled hearings to consider proposed rules for adoption to take place before the COGCC on November 16 and 17; and WHEREAS, staff to the COGCC has published draft rules for consideration by the COGCC at the rulemaking hearings; and WHEREAS, in response to community concern regarding the potential environmental, health and safety impacts of oil and gas development and other related activities, the Council’s adopted Legislative Policy Agenda identifies greater local regulation of oil and gas activities within the municipality as a legislative policy objective of the City; and WHEREAS, City staff has reviewed the proposed COGCC rule and has prepared a prehearing statement for submission to the COGCC setting forth the City’s position on the rules and requesting certain changes, attached hereto as Exhibit “A” and incorporated herein by this reference (the “City Prehearing Statement”). Packet Pg. 417 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the City Council hereby endorses the City Prehearing Statement, and directs City staff to represent the City’s interests during the COGCC rulemaking process and at proceedings by the COGCC related to the proposed rules. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 3rd day of November, A.D. 2015. _________________________________ Mayor ATTEST: _____________________________ City Clerk Packet Pg. 418 1 BEFORE THE OIL & GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF CHANGES TO THE RULES ) CAUSE NO. 1R OF PRACTICE AND PROCEDURE OF THE OIL ) & GAS CONSERVATION COMMISSION ) DOCKET NO. 151100667 OF THE STATE OF COLORADO ) ) TYPE: RULEMAKING CITY OF FORT COLLINS PREHEARING STATEMENT The Mayor and City Council of Fort Collins (the “City”) by and through Brad Yatabe, assistant to the Fort Collins City Attorney Carrie Daggett, respectfully submit the following statement and attached redline of the draft rules for consideration in this rulemaking. I. RECOMMENDATION 17 Clarification of Consultation with Local Governments Proposed Rule 305A requires operators to provide written notice at least 90 days before application to the COGCC for a Form 2A and before consummation of a final surface location. The City supports these proposed rules requiring notice and consultation with local government. A Large UMA Facility will have significant impacts on a community. Such impacts last throughout the lifecycle of the associated wells and do not stop at the initial drilling and completion. Furthermore, these impacts are not restricted to the local government with land use authority. Such impacts are felt by adjacent property owners and by adjacent local governments. The City proposes to address these impacts by amending the 100 Series Rules to define “Proximate Local Governments” as those whose territorial limits or land holdings are within a one mile radius of a proposed Large UMA Facility. The distance correlates to the subsurface distance horizontal wells are typically drilled and acknowledges local government interest in discussion with operators about planned activity and associated mitigation measures intended to protect community members. This definition would correspondingly change Rule 305A.a.(2) by increasing the notice distance from 1,000 feet to one mile. The City proposes to amend 305A to add adjoining surface land owners to the list of those groups receiving notice of a Large UMA Facility. These individuals have health, environment, and financial interests in the site location and in the planned construction of a Large UMA Facility. The City proposes to amend the proposed 100 Series definition of a Large UMA Facility to remove the word “new” from the definition of cumulative total depth. While the drilling and completion period is intense and results in traffic, noise, light, and air emission impacts, the word “new” allows a loophole that ignores the cumulative impacts of a Large UMA Facility. Air emissions, pipelines, and the loss of surface use are sustained impacts that must be accounted for and mitigated. EXHIBIT A 2 The City further proposes amending the 100 Series definition of a Large UMA Facility to reduce the cumulative depth from 90,000 feet to 45,000 feet. This equates to a change from eight wells to four. The City additionally proposes amending the definition of on-site storage to include not just hydrocarbons but also the storage of produced water. There is a surface land use impact from the presence of storage equipment and produced water results in air emissions that negatively impact nearby human and environmental health. Clarification of the Definition of Large-Scale Facilities The primary concern of Fort Collins citizens is that oil and gas facilities placed near to or within residential neighborhoods are incompatible due to public health and safety issues. The implementation of Recommendation 17 provides the COGCC an opportunity to demonstrate its understanding of these impacts and its commitment to not only “prevent waste and conserve oil and gas,” but its charge to “protect public health, safety, and welfare, including the environment and wildlife resources” under COGCC Rule 201. The proposed new and amended rules define a “large UMA facility” as 1) the cumulative total measured depth of all new wells planned for the location exceeds 90,000 feet; or 2) the cumulative new and existing on-site storage capacity for produced hydrocarbons exceeds 4,000 barrels. This definition provides the basis for notification and consultation with local governments and implementation of best management practices and required mitigation measures at these sites. The following comments address the City’s concerns about this definition serving as the basis for these rule additions and amendments: 1. The magnitude of the combined impacts of a facility is more important than the size of the facility. This definition is vital to the effectiveness of protective measures. Therefore, the justification and supporting data for selecting it should be included in the regulations. 2. The definition of Urban Mitigation Area (UMA) should be reconsidered since any detrimental public health impact to the number of people residing in twenty-two residential buildings should not be treated differently than the same impact to only one individual. The scope of COGCC rules does not place more importance on the protection of the public health of the many versus the few. a. It is not clear why the public health of individuals residing in urban areas warrant protective measures, but those in rural areas are not afforded the same protections. b. The increased health risks to sensitive populations (e.g., individuals with respiratory illnesses, pregnant women) in proximity to large UMA facilities are not addressed by these proposed rules. 3. This definition of a large UMA facility relating to cumulative total borehole depth only applies to new wells at a location, not existing wells, and thus creates a loophole to bypass the new requirements while developing more large UMA facilities. 3 4. There is no direct correlation between length of borehole and human health impacts. Other measureable criteria more directly related to public health and safety issues include: a. Estimated emissions of hazardous air pollutants (e.g. benzene) during drilling, flowback, production, and from vehicle traffic resulting in human exposure. b. Proximity of boreholes and amount and location of product and waste storage to surface water bodies and permitted groundwater wells affect the risk of exposure that could result from releases. c. Dust resulting from vehicle traffic and drilling can be measured as particulates that have a human health impact thereby representing more than a nuisance issue. d. The number of storage tanks located at a facility is related to the volume of ozone- forming VOCs released, and many of the oil and gas facilities along the Front Range are located within an ozone noncompliance zone representing increased risk to public health. Storage tanks at locations also result in higher vehicle traffic and VOC emissions. 5. There is no prohibition on siting of Class II UIC wells in UMAs. However, there is mounting public concern and data available to substantiate impacts to communities from seismicity and increased vehicle traffic. Mitigation and Siting of Large-Scale Facilities A large-scale facility should be required to mitigate its impacts. The COGCC must have standard mitigation steps that all operators take to limit truck traffic, dust, odors, release of potentially toxic air emissions, and surface land utilized for development. These mitigation measures should be imposed on a site-by-site basis in proportion to or in order to minimize human health and environmental impacts. The COGCC should impose standard best management practices that are updated as technology advances for all oil and gas facilities regardless of size or location. A science based BMP list is a way to address many community conflicts and to improve the quality of oil and gas development in Colorado. This BMP list should be the established “floor” and the COGCC Director would then consult with surface owners, local governments, and community members to stipulate additional mitigation measures that go further to protect human and environmental health. Clarification That Operators Shall Follow the Local Land Use and/or Siting Process to Obtain the Agreement The City requests that the language in 305A.d.(4) be changed as indicated on the attached redline of the draft rules. Recommendation 17 states that operators shall consult with the local government, and the redline changes clarify that if there is a land use or siting process, then this is the process that operators shall use to obtain the agreement prescribed in the rules. Attachment to City of Fort Collins Prehearing Statement COGCC Staff’s Second Draft Proposed Rules Implementing Governor’s Oil and Gas Task Force Recommendation Nos. 17 and 20 October 23, 2015 Page 1 of 12 Effective Date: Following adoption by the Commission, these proposed new and amended rules will become effective twenty days after publication by the Secretary of State pursuant to 24-4-103(5), C.R,S. All provisions of these rules will be applied prospectively to any Application for Oil and Gas Location Assessment, Form 2A, for a Large UMA Facility that is pending but not yet approved as of, or submitted after, the effective date. For pending applications, pre-application notices and consultations otherwise required by the rules will be waived, but applicable best management practices and mitigation measures will be required. Recommendation No. 17 100 Series LARGE UMA FACILITY shall mean any Oil and Gas Location proposed to be located in an Urban Mitigation Area and on which: (1) the cumulative total measured depth of all new wells planned for the Location exceeds [9045,000 feet]; or (2) the cumulative new and existing on-site storage capacity for produced hydrocarbons and produced water exceeds [4,000] barrels. PROXIMATE LOCAL GOVERNMENTS shall mean any Local Governments whose territorial limits, or real property in which the Local Governments have an ownership interest, are located within a one mile radius from a proposed or existing Oil and Gas Facility. 300 Series 305A. LOCAL GOVERNMENT NOTIFICATION AND CONSULTATION FOR LARGE UMA FACILITIES. a. Notice of Intent to Construct a Large UMA Facility. No less than 90 days prior to submitting a Form 2A to the Commission and before an operator has a final contract with the surface owner for a specific location, an operator proposing a Large UMA Facility shall provide written Notice of Intent to Construct a Large UMA Facility to the following: (1) the local government with land use authority over the proposed Oil and Gas Llocation of a Large UMA Facility; Page 2 of 12 COGCC Staff’s Second Draft Proposed Rules Implementing Task Force Recommendation Nos.17 and 20 October 23, 2015 (2) Proximate Llocal Ggovernments with land use authority within [1,000 feetone mile of the proposed Large UMA Facility (for purposes of this Rule 305A, “Proximate Local Governments”); and (3) the surface owner of the lands on which a Large UMA Facility is proposed (4) adjoining surface land owners to the parcel of land upon which the site for the Large UMA Facility is proposed. b. Content of Notice of Intent to Construct a Large UMA Facility. A Notice of Intent to Construct a Large UMA Facility shall include the following information: (1) a description and depiction of the proposed Oil and Gas Location and the planned facilities; (2) a description of the siting rationale for proposing to locate the facility within the Urban Mitigation Area, including a prioritized description of other sites being considered; (3) an offer to consult with the local government with land use authority over the proposed location to seek agreement regarding siting the Large UMA Facility, considering alternative locations and potential best management practices; (4) an offer to meet with Proximate Local Governments regarding potential best management practices for the proposed Large UMA Facility; and (5) an offer to meet with the surface owner of the lands on which the operator proposes to locate a Large UMA Facility regarding siting of the proposed facility. c. Consultation between the Operator and the Local Government with Land Use Authority. If the local government with land use authority over the proposed Large UMA Facility accepts an operator’s offer to consult in writing within 45 days of receipt of a Notice of Intent to Construct a Large UMA Facility, the operator shall consult in good faith regarding siting of, and best management practices and mitigation measures to be employed at, the proposed location. (1) The Director will participate in the consultation process between the local government and the operator at the request of either. (2) The surface owner’s siting requests and concerns, and those of adjoining property owners, will be considered as part of the consultation. Page 3 of 12 COGCC Staff’s Second Draft Proposed Rules Implementing Task Force Recommendation Nos.17 and 20 October 23, 2015 (3) If the local government and operator are unable to reach agreement regarding the location, best management practices, and mitigation measures for a proposed Large UMA Facility, the operator shall offer in writing to engage in mediation with the local government. A. If the local government agrees to mediation, the operator and the local government shall jointly select a mediator or mediators and share the cost of mediation. B. Upon selection of a mediator(s), the mediation shall conclude within 45 days unless the operator and local government agree to an extension of time. C. The Director is not a party to the mediation, but at the request of either the local government or the operator, the Director shall provide technical assistance to the parties or the mediator to the extent the Director is able. (4) Nothing in this Rule 305A is intended to or shall be interpreted to alter, impair, or negate any existing authority a local government may have to regulate an Oil and Gas Location, so long as such local regulation is not in operational conflict with the Act or regulations promulgated under the Act. This Rule 305A.c. does not prescribe any particular form of consultation or local land use planning or approval process, nor does it limit or supersede any local government land use planning or approval process. However, if the local government requires the operator to proceed with and complete a local siting and/or land use process in order to evaluate the proposed site, the operator must follow that process as part of its obligation to consult in good faith. d. Meeting with Proximate Local Governments. (1) Within 20 days of receiving the Notice of Intent to Construct a Large UMA Facility, a Proximate Local Government may request a meeting with the operator and the Director to discuss alternative siting, potential best management practices and mitigation measures for the proposed Large UMA Facility reasonably related to potential significant adverse impacts to public health, safety and welfare, including the environment and wildlife resources, that are within the Commission's jurisdiction to remedy. (2) The Director will schedule the meeting with Proximate Local Government upon request. Page 4 of 12 COGCC Staff’s Second Draft Proposed Rules Implementing Task Force Recommendation Nos.17 and 20 October 23, 2015 (3) The Director will provide a written response to a Proximate Local Government’s written request for alternative siting, specific best management practices and mitigation measures at a proposed Large UMA Facility. (4) A Proximate Local Government’s approval of a proposed Large UMA Facility’s site is not required, nor may a Proximate Local Government be an Applicant for a hearing on a Form 2A under Rule 507.b.(7). e. Meeting with the Surface Owner. At the request of the surface owner of the lands on which the operator proposes to locate a Large UMA Facility, the operator and Director will meet with the surface owner regarding siting of the proposed Large UMA Facility. f. Initiating the Form 2A Process. (1) The Director will reject as incomplete a Form 2A submitted for a Large UMA Facility if the operator has not certified one of the following is true: A. the operator reached agreement regarding siting with the local government with land use authority; B. the local government with land use authority waived the Rule 305A procedures or did not timely respond to the Notice of Intent to Construct; or C. the operator complied with the requirements of subsection 305A.C. of this Rule and was unable to reach agreement with the local government with land use authority regarding siting. (2) An operator may initiate the Form 2A process once any of the following occur: A. The operator and the local government with land use authority reach agreement regarding a proposed Large UMA Facility’s site, and the operator provides written confirmation of the agreement to the Director in accordance with Rule 303.b.(3)K. B. The local government with land use authority waives the Rule 305A procedures and the operator provides written confirmation of the waiver to the Director in accordance with Rule 303.b.(3)K. C. The local government with land use authority fails to respond in writing within 45 days of receiving the Notice of Intent to Construct a Large UMA Facility, and the operator submits a copy of the Notice of Intent to Construct a Large UMA Facility and evidence of receipt by the local government to the Director in accordance with Rule 303.b.(3)K. Page 5 of 12 COGCC Staff’s Second Draft Proposed Rules Implementing Task Force Recommendation Nos.17 and 20 October 23, 2015 (3) If the local government and the operator engage in consultation but are unable to reach agreement regarding the location for a proposed Large UMA Facility and the local government rejects the offer to mediate or the mediation does not result in an agreement regarding a proposed Large UMA Facility’s site, the operator may initiate the Form 2A process with its preferred site. A. After the Director’s technical review is complete, the Director will notice the Form 2A for a Commission hearing. Such a hearing shall be expedited but will be held only after both the 20 days’ notice and the newspaper notice are given as required by Section 34-60-108, C.R.S. However, the hearing can be held after the newspaper notice if all of the entities listed under Rule 503.b. waive the 20-day notice requirement. B. The hearing will be conducted pursuant to Rule 528.a. For purposes of the hearing, the operator will be the Applicant and the local government will be the respondent. 600 Series 604.c.(4) Large UMA Facilities. Large UMA Facilities should be built and operated using the best available technology to avoid or minimize adverse impacts to adjoining land uses. To achieve this objective, the Director will require a combination of best management practices and required mitigation measures, and may also impose site-specific conditions of approval related to operational and technical aspects of a proposed Large UMA Facility. No best management practice, mitigation measure, or condition of approval required pursuant to this Rule 604c.(4) is intended to or shall be interpreted to alter, impair, or negate any existing authority a local government may have to regulate an Oil and Gas Location, so long as such local regulation is not in operational conflict with the Act or regulations promulgated under the Act. Mitigation measures shall take into account the location of impacts including, but not limited to, drilling, well completion and stimulation, anticipated production, and planned on-site storage tanks, in proximity to population, community assets, 100- year floodplain, and environmental habitat areas. A. Required Best Management Practices. A Form 2A for a Large UMA Facility will not be approved until best management practices addressing all of the following have been incorporated into the Oil and Gas Location Assessment permit. i. Fire, explosion, chemical, and toxic emission hazards, including lightning strike hazards. Page 6 of 12 COGCC Staff’s Second Draft Proposed Rules Implementing Task Force Recommendation Nos.17 and 20 October 23, 2015 ii. Fluid leak detection, repair, reporting, and record keeping for all above and below ground on-site fluid handling, storage, and transportation equipment. iii. Automated well shut-in control measures to prevent gas venting during emission control system failures or other upset conditions. iv. Zero flaring or venting of gas upon completion of flowback, excepting upset or emergency conditions, or with prior written approval from the Director for necessary maintenance operations. v. Storage tank pressure and fluid management. vi. Proppant dust control. B. Required Mitigation Measures. The following mitigation measures will be imposed as permit conditions on all Large UMA Facility Oil and Gas Location Assessment Permits to effectively mitigate potential impacts to public health, safety, and welfare, including the environment. i. All Rule 604.c.(3).B Exception Zone Setback mitigation measures are required for all Large UMA Facilities, regardless of whether the Large UMA Facility is located in the Buffer Zone or the Exception Zone. ii. The Director, in consultation with the operator, will impose a time limit on the duration of drilling, completion, and stimulation operations for the location, measured from the move-in-rig-up date to the last day of stimulation operations. In establishing the duration limit, the Director will consider site-specific conditions, including but not limited to: the distance to and number of nearby Residential Building Units; operational features such as the number, horsepower, and fuel source of engines and generators anticipated to be in use; whether stimulation operations will occur on-site or remotely; stimulation water sources and delivery; and volume of heavy truck traffic to and from the location during drilling, completion, and stimulation operations. The Director will to grant a one-time extension of the duration limit, not to exceed 30 days, for bona fide, unexpected technical difficulties or force majeure conditions. Before setting the duration limit, tThe Director shall confer with local governments that receive notice of a Large UMA Facility pursuant to Rule 305A, and the surface owner concerning the duration limit. C. Site Specific Mitigation Measures. In addition to the requirements of subsections A. and B. of this Rule 604.c.(4), the Director may impose site-specific conditions of approval to ensure that anticipated impacts are mitigated to the maximum extent achievable. The following non-exclusive list illustrates types of potential Page 7 of 12 COGCC Staff’s Second Draft Proposed Rules Implementing Task Force Recommendation Nos.17 and 20 October 23, 2015 impacts the Director may evaluate, for which site-specific conditions of approval may be required: i. Noise. ii. Ground and surface water protection. iii. Visual impacts associated with placement of wells or production equipment. iv. Remote stimulation operations. v. Air emissions anticipated from drilling, completion and operation and maintenance of site. In considering the need for site-specific mitigation measures, the Director will consider and give substantial deference to mitigation measures or best management practices agreed to by the operator and local government with land use authority. D. The Director retains discretion to require conditions of approval to address site-specific conditions other than those identified in subsection 604.c.(4)C., above, at any Large UMA Facility. E. Nothing in this Rule 604.c.(4) shall be construed to limit the Director’s discretion to impose conditions of approval on a Form 2A for any Oil and Gas Location based on site-specific conditions. Recommendation No. 20 300 Series 302.c. Operator Registration with Local Governments for Advance Planning 1. When used in this subpart, “local jurisdiction” means a home rule or statutory city, town, territorial charter city, or city and county. 2. Beginning on March 1, 2016, all operators that have filed a Form 1 with the Commission shall register with the Local Governmental Designee (“LGD”) of each local jurisdiction in which it has current or planned oil and gas operations. Page 8 of 12 COGCC Staff’s Second Draft Proposed Rules Implementing Task Force Recommendation Nos.17 and 20 October 23, 2015 3. An LGD may request any operator registered within its jurisdiction to provide the following information to the LGD and the Commission’s Local Government Liaison (“LGL”): a. Based on an operator’s current business plan as of the date of the request, a good faith estimate of the number of wells the operator intends to drill in the next five years in the local jurisdiction [,including the jurisdiction’s growth management area]. [A publicly traded company’s well estimates may be based on reserves classified as “proved undeveloped” for SEC reporting purposes.] b. A map showing the location within the local jurisdiction [,including the jurisdiction’s growth management area,] of an operator’s existing well sites and related production facilities; sites for which the operator has approved, or has submitted applications for, [drilling and spacing orders,] Form 2s or Form 2As; and, sites the operator has identified for development on its current drilling schedule for which it has not yet submitted applications for Commission permits. c. An operator will provide estimates requested pursuant to this subsection 3 using reasonable business judgment based on information known to the operator at the time the estimates are submitted. Estimates provided by the operator may be subject to change at any time at the operator’s sole discretion. d. Operators shall provide updates to this planning annually using the same good faith estimate of anticipated activities and highlighting changes to previous reporting. e. No information submitted pursuant to this Section by any operator shall be considered confidential and the LGD and LGL may publicly disclose such information. Conforming Rule Changes 303.b.(3)K. Certification of Local Government Notification in Urban Mitigation Areas. i. If the proposed Oil and Gas Location is within an Urban Mitigation Area, but is not a Large UMA Facility, the operator shall submit evidence that the local government received the pre-application notice required by Rule 305.a.(1). Page 9 of 12 COGCC Staff’s Second Draft Proposed Rules Implementing Task Force Recommendation Nos.17 and 20 October 23, 2015 ii. For a Large UMA Facility, the operator shall certify on the Form 2A that it complied with Rule 305A, or that the local government with land use authority waived the notification and consultation procedures in Rule 305A.a.(1) and 305A.c. The operator shall also submit evidence that the Proximate Local Government received the Notice of Intent to Construct a Large UMA Facility no less than 30 days prior to the operator’s Form 2A submittal. 303.c. PROCESSING TIME FOR APPROVALS UNDER THIS SECTION. (1) In accordance with Rule 216.f.(3), where a proposed Oil and Gas Location is covered by an approved Comprehensive Drilling Plan and no variance is sought from such Plan or these rules not addressed in the Comprehensive Drilling Plan, the Director shall give priority to and approve or deny an Application for Permit-to Drill, Form 2, or, where applicable, Oil and Gas Location Assessment, Form 2A, that is not a Large UMA Facility within thirty days of a determination that such application is complete pursuant to Rule 303.h, unless significant new information is brought to the attention of the Director. The Director shall give priority to a Form 2A proposing a Large UMA Facility that is consistent with a Comprehensive Drilling Plan, or a local government comprehensive plan that specifies locations for oil and gas facilities, and shall approve or deny such an application within sixty days. (2) Request for Hearing. A. An operator may request a hearing before the Commission on a permit application if the Director has not issued a decision on: i. An Application for Permit-to-Drill, Form 2, within seventy-five (75) days of a determination that the application is complete; ii. An Oil and Gas Location Assessment, Form 2A, for a Location that is not a Large UMA Facility within seventy-five (75) days of a determination that the application is complete; or iii. An Oil and Gas Location Assessment, Form 2A, for a Large UMA Facility within one hundred fifty (150) days of a determination that the application is complete. B. Such a hearing shall be expedited but will be held only after both the 20 days’ notice and the newspaper notice are given as required by Section 34-60-108, Page 10 of 12 COGCC Staff’s Second Draft Proposed Rules Implementing Task Force Recommendation Nos.17 and 20 October 23, 2015 C.R.S. However, the hearing can be held after the newspaper notice if all of the entities listed under Rule 503.b waive the 20-day notice requirement. 305.a.(1) Urban Mitigation Area Notice to Local Government. For Oil and Gas Locations within an Urban Mitigation Area, an Operator shall notify the local government in writing that it intends to apply for an Oil and Gas Location Assessment. Such notice shall be provided to the Local Governmental Designee in those jurisdictions that have designated an LGD, and to the planning department in jurisdictions that have no LGD. The notice shall include a general description of the proposed Oil and Gas Facilities, the location of the proposed Oil and Gas Facilities, the anticipated date operations (by calendar quarter and year) will commence, and that an additional notice pursuant to Rule 305.c. will be sent by the Operator. This notice shall serve as an invitation to the local government to engage in discussions with the Operator regarding proposed operations and timing, local government jurisdictional requirements, and opportunities to collaborate regarding site development. A local government may waive its right to notice under this provision at any time by providing written notice to an Operator and the Director. If the local government and operator have reached agreement regarding the site for a proposed Large UMA Facility in accordance with Rule 305A, the notice requirement of this subpart does not apply. 305.d. Comment Period. The Director shall not approve a Form 2A, or any associated Form 2, for a proposed Well or Production Facility during the comment period, and shall accept and immediately post on the Commission’s website any comments received from the public, the Local Governmental Designee, the Colorado Department of Public Health and Environment, or Colorado Parks and Wildlife regarding the proposed Oil and Gas Location. (1) The comment period for a Form 2 or a Form 2A for an Oil and Gas Location that is not a Large UMA Facility is twenty (20) days from posting pursuant to Rule 305.b. A. The Director shall extend the comment period to thirty (30) days upon the written request during the twenty (20) day comment period by the Local Governmental Designee, the Colorado Department of Public Health and Environment, Colorado Parks and Wildlife, the Surface Owner, or an owner of surface property who receives notice under Rule 305.c.(1)(A).iii. Page 11 of 12 COGCC Staff’s Second Draft Proposed Rules Implementing Task Force Recommendation Nos.17 and 20 October 23, 2015 B. For Oil and Gas Locations proposed within an Urban Mitigation Area or within five hundred (500) feet of a Building Unit, the Director shall extend the comment period to not more than forty (40) days upon the written request of the Local Governmental Designee received within the original 20 day comment period. (2) For a Large UMA Facility, the comment period is forty (40) days from posting pursuant to Rule 305.b. (3) At the Director’s sole discretion, the comment periods identified above may be extended or re-opened for a period not to exceed twenty (20) days. (4) The Director shall post notice of an extension granted under this provision on the COGCC website within twenty-four (24) hours of receipt of the extension request. 306.d.(1) Consultation to Occur. A. The Commission shall consult with the Colorado Department of Public Health and Environment on an Application for Permit-to-Drill, Form 2, or an Oil and Gas Location Assessment, Form 2A, where: i. Within fourteen (14) days of notification pursuant to Rule 305, the Local Governmental Designee requests the participation of the Colorado Department of Public Health and Environment in the Commission’s consideration of an Application for Permit-to-Drill, Form 2, or Oil and Gas Location Assessment, Form 2A, based on concerns regarding public health, safety, welfare, or impacts to the environment; ii. The operator seeks from the Director a variance from, or consultation is otherwise required or permitted under, a provision of one of the following rules intended for the protection of public health, safety, welfare, or the environment: aa. Rule 317B. Public Water System Protection; bb. Rule 325. Underground Disposal of Water; cc. Rule 603. Statewide Location Requirements for Oil and Gas Facilities, Drilling, and Well Servicing Operations; dd. Rule 604. Setback and Mitigation Measures for Oil and Gas Facilities, Drilling, and Well Servicing Operations; Page 12 of 12 COGCC Staff’s Second Draft Proposed Rules Implementing Task Force Recommendation Nos.17 and 20 October 23, 2015 ee. Rule 608. Coalbed Methane Wells; ff. Rule 805. Odors and Dust; gg. 900-Series E&P Waste Management; or hh. Rule 1002.f. Stormwater Management. All requests for variances from these rules must be made at the time an operator submits a Form 2A. iii. The operator submits an Application for an Oil and Gas Location Assessment, Form 2A, for a Large UMA Facility. 604.b.(1) Existing Oil and Gas Locations. The Director may grant an exception to setback distance requirements set forth in Rule 604 within a Designated Setback Location when a Well or Production Facility is proposed to be added to an existing or approved Oil and Gas Location if the Director determines alternative locations outside the applicable setback are technically or economically impracticable; mitigation measures imposed in the Form 2 or Form 2A will eliminate, minimize or mitigate noise, odors, light, dust, and similar nuisance conditions to the extent reasonably achievable; the operator has complied with the notice and consultation requirements of Rule 305A, if applicable; the proposed location complies with all other safety requirements of these Commission Rules; and: City of Fort Collins Page 1 Wade Troxell, President City Council Chambers Gerry Horak, District 6, Vice President City Hall West Bob Overbeck, District 1 300 LaPorte Avenue Ray Martinez, District 2 Fort Collins, Colorado Gino Campana, District 3 Kristin Stephens, District 4 Cablecast on City Cable Channel 14 Ross Cunniff, District 5 on the Comcast cable system Carrie Daggett Darin Atteberry Wanda Winkelmann City Attorney Executive Director Secretary The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and will make special communication arrangements for persons with disabilities. Please call 221-6515 (TDD 224- 6001) for assistance. General Improvement District No. 1 Board Regular Meeting November 3, 2015 (after the Regular Council Meeting, which begins at 6:00 p.m.) CALL MEETING TO ORDER ROLL CALL 1. First Reading of Ordinance No. 067, Determining and Fixing the Mill Levy for the General Improvement District No. 1 for the Fiscal Year 2016; Directing the Secretary of the District to Certify such Levy to the Board of Commissioners of Larimer County; and Making the Fiscal Year 2016 Annual Appropriation. (staff: Mike Beckstead; 3 minute staff presentation; 5 minute discussion) The sum of $280,000 is anticipated to be collected from the mill levy of 4.924 mills for fiscal year 2016 imposed within the General Improvement District No. 1 (GID) boundaries. Additional revenue for the GID from automobile specific ownership taxes, ad valorem taxes, and interest earnings are anticipated in 2016 to total $33,000 resulting in an expected revenue total of $313,000 for 2016. The Ordinance appropriates funds in the amount of $193,877 for the operation of the GID in 2016. OTHER BUSINESS ADJOURNMENT GENERAL IMPROVEMENT DISTRICT NO. 1 BOARD Agenda Item 1 Item # 1 Page 1 AGENDA ITEM SUMMARY November 3, 2015 General Improvement District No. 1 Board STAFF Mike Beckstead, Chief Financial Officer SUBJECT First Reading of Ordinance No. 067, Determining and Fixing the Mill Levy for the General Improvement District No. 1 for the Fiscal Year 2016; Directing the Secretary of the District to Certify such Levy to the Board of Commissioners of Larimer County; and Making the Fiscal Year 2016 Annual Appropriation. EXECUTIVE SUMMARY The sum of $280,000 is anticipated to be collected from the mill levy of 4.924 mills for fiscal year 2016 imposed within the General Improvement District No. 1 (GID) boundaries. Additional revenue for the GID from automobile specific ownership taxes, ad valorem taxes, and interest earnings are anticipated in 2016 to total $33,000 resulting in an expected revenue total of $313,000 for 2016. The Ordinance appropriates funds in the amount of $193,877 for the operation of the GID in 2016. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The recommended appropriations for this amount are as follows: GID Expenses: $ 26,000 to be used for other capital improvements in the downtown area $ 14,314 for staffing $ 11,500 for the Larimer County Treasurer's fee for collecting the property tax $ 23,000 for property tax rebate program $ 2,500 for estimated electrical costs for downtown lighting and water $ 1,563 for miscellaneous expenses $115,000 for transfer to other funds $193,877 Total FINANCIAL / ECONOMIC IMPACTS This Ordinance includes the GID’s annual appropriation for 2016 at $193,877. This item also sets the GID mill levy for 2016 at 4.924 mills, which will generate approximately $280,000 for fiscal year 2016. The mill levy remains unchanged from previous years. Additional 2016 revenue includes automobile specific ownership taxes, ad valorem taxes, and interest which together are projected to be $33,000 in fiscal year 2016. ATTACHMENTS 1. Boundary map (PDF) 1 Packet Pg. 2 ATTACHMENT 1 1.1 Packet Pg. 3 Attachment: Boundary map (3660 : GID No.1 2016 Mill Levy and Budget Appropriation) ORDINANCE NO. 067 OF THE COUNCIL OF THE CITY OF FORT COLLINS, COLORADO EX-OFFICIO THE BOARD OF DIRECTORS OF GENERAL IMPROVEMENT DISTRICT NO. 1, DETERMINING AND FIXING THE MILL LEVY FOR THE GENERAL IMPROVEMENT DISTRICT NO. 1 FOR THE FISCAL YEAR 2016; DIRECTING THE SECRETARY OF THE DISTRICT TO CERTIFY SUCH LEVY TO THE BOARD OF COMMISSIONERS OF LARIMER COUNTY; AND MAKING THE FISCAL YEAR 2016 ANNUAL APPROPRIATION WHEREAS, City of Fort Collins General Improvement District No. 1 (the “GID”) in Fort Collins, Colorado, has been duly organized in accordance with the ordinances of the City and the statutes of the State of Colorado; and WHEREAS, the GID staff has considered the amount of money to be raised by a levy on the taxable property in the GID and recommends that a levy of 4.924 mills upon each dollar of the assessed valuation of all taxable property within the limits of the GID is required during 2016 to pay the cost of operating the GID; and WHEREAS, the GID staff estimates a levy of 4.924 mill will result in $280,000 of revenue; and WHEREAS, the amount of this proposed mill levy is not an increase over prior years so that prior voter approval of the levy is not required under Article X, Section 20 of the Colorado Constitution; and WHEREAS, C.R.S. Section 39-5-128(1) requires certification of any tax levy to the Board of County Commissioners no later than December 15 of each year; and WHEREAS, additional revenue is collected by the GID from such sources as the automobile ownership tax, ad valorem taxes, and interest earnings and that revenue for 2016 is anticipated to be $33,000; and WHEREAS, the City Council, acting as the ex-officio Board of Directors of the GID, desires to appropriate the necessary funds for operating costs and capital improvements of the GID for the fiscal year beginning January 1, 2016, and ending December 31, 2016; and WHEREAS, in 2014, the City Council previously approved in Ordinance No. 153, 2014, the GID’s budget for the period beginning January 1, 2015 and ending December 31, 2016, which budget remains unchanged for 2016. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS, Ex-Officio the Board of Directors of City of Fort Collins General Improvement District No. 1, as follows: Packet Pg. 4 Section 1. That, for the purpose of providing the necessary funds to meet the expenses to be incurred in the General Improvement District No. 1 in 2016, 4.924 mills is hereby levied upon each dollar of the assessed valuation of all taxable property within the General Improvement District No.1 as of December 31, 2015. Section 2. That the City Clerk is hereby designated as the Secretary of the General Improvement District No. 1 and is hereby authorized and directed to certify such mill levy to the Board of Larimer County Commissioners as provided by law. Section 3. That the City Council, acting ex-officio as the Board of Directors of City of Fort Collins General Improvement District No. 1, hereby appropriates out of the revenues of General Improvement District No. 1 for the fiscal year beginning January 1, 2016, and ending December 31, 2016, the sum of ONE HUNDRED NINTEY THREE THOUSAND EIGHT HUNDRED SEVENTY SEVEN DOLLARS ($193,877) to be raised by taxation and additional revenue to be expended for the authorized purposes of the General Improvement District No.1. Introduced, considered favorably on first reading, and ordered published this 3rd day of November, A.D. 2015, and to be presented for final passage on the 17th day of November, A.D. 2015. _________________________________ Mayor, Ex Officio President ATTEST: _____________________________ City Clerk, Ex Officio Secretary Passed and adopted on final reading on the 17th day of November, A.D. 2015. _________________________________ Mayor, Ex Officio President ATTEST: _____________________________ City Clerk, Ex Officio Secretary Packet Pg. 5 City of Fort Collins Page 1 Wade Troxell, President City Council Chambers Gerry Horak, District 6, Vice President City Hall West Bob Overbeck, District 1 300 LaPorte Avenue Ray Martinez, District 2 Fort Collins, Colorado Gino Campana, District 3 Kristin Stephens, District 4 Cablecast on City Cable Channel 14 Ross Cunniff, District 5 on the Comcast cable system Carrie Daggett Darin Atteberry Wanda Winkelmann City Attorney Executive Director Secretary The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and will make special communication arrangements for persons with disabilities. Please call 221-6515 (TDD 224- 6001) for assistance. Skyview South General Improvement District No. 15 Board Formal Meeting November 3, 2015 (after the General Improvement District No. 1 meeting) CALL MEETING TO ORDER ROLL CALL 1. First Reading of Ordinance No. 007, Determining and Fixing the Mill Levy for the Skyview South General Improvement District No. 15 for the Fiscal Year 2016; Directing the Secretary of the District to Certify Such Levy to the Board of Commissioners of Larimer County; and Making the Fiscal Year 2016 Annual Appropriation. (staff: Mike Beckstead; 3 minute staff presentation; 5 minute discussion) This Ordinance includes the annual appropriation for 2016 of $1,000 for the expenses of the Skyview South General Improvement District No. 15 (GID No. 15). The sum of $25,200 is anticipated to be collected from the mill levy of 10.0 mills for fiscal year 2016. Additional revenue for GID No. 15 from interest earnings is anticipated to generate $432. The total 2016 revenue for GID No. 15 is expected to be $25,632. The total amount will be used in the future to maintain and repair roads in the Skyview subdivision. OTHER BUSINESS ADJOURNMENT SKYVIEW SOUTH GENERAL IMPROVEMENT DISTRICT NO. 15 BOARD Agenda Item 1 Item # 1 Page 1 AGENDA ITEM SUMMARY November 3, 2015 Skyview South General Improvement District No. 15 Board STAFF Mike Beckstead, Chief Financial Officer SUBJECT First Reading of Ordinance No. 007, Determining and Fixing the Mill Levy for the Skyview South General Improvement District No. 15 for the Fiscal Year 2016; Directing the Secretary of the District to Certify Such Levy to the Board of Commissioners of Larimer County; and Making the Fiscal Year 2016 Annual Appropriation. EXECUTIVE SUMMARY This Ordinance includes the annual appropriation for 2016 of $1,000 for the expenses of the Skyview South General Improvement District No. 15 (GID No. 15). The sum of $25,200 is anticipated to be collected from the mill levy of 10.0 mills for fiscal year 2016. Additional revenue for GID No. 15 from interest earnings is anticipated to generate $432. The total 2016 revenue for GID No. 15 is expected to be $25,632. The total amount will be used in the future to maintain and repair roads in the Skyview subdivision. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION In 2009, the City annexed Phase 3 of the Southwest Enclave Annexation. The area annexed included the entire GID No. 15. A map of GID No. 15 is attached. Larimer County organized GID No. 15 in 1997. Pursuant to C.R.S. Section 31-25-603, since the annexation area included the entire area within the improvement district boundaries, upon annexation, GID No.15 became a City-operated district and Council has thereafter acted as the ex officio Board of Directors of the District. Under State law, the City is required to set the annual mill levy for the GID No. 15 and to certify the amount of the levy to the Board of County Commissioners for Larimer County. This Ordinance continues the establishment, as in years past, of a mill levy of 10.0. CITY FINANCIAL IMPACTS This Ordinance sets the GID No. 15 mill levy at 10.0 mills, which will generate approximately $25,200 for fiscal year 2016. Additional 2016 revenue for GID No. 15 includes interest earnings, which are projected to be $432 in fiscal year 2016. In addition the 2016 Budget will include the use of $1,000 for the Larimer County Treasurer’s fee for collecting the property tax. ATTACHMENTS 1. Boundary map (PDF) 1 Packet Pg. 2 W TRILBY RD S COLLEGE AVE W SKYWAY DR CONSTELLATION DR MARS DR VENUS AVE ARAN ST ORBIT WAY DEBRA DR H OLYOKE C T P O L A R I S DR S T A R W A Y S T AV O NDALE R D RAMA H D R N E P T U N E D R GALA X Y W A Y URANUS ST F LA G L E R R D ORDINANCE NO. 007 OF THE COUNCIL OF THE CITY OF FORT COLLINS, COLORADO ACTING AS THE EX-OFFICIO BOARD OF DIRECTORS OF SKYVIEW SOUTH GENERAL IMPROVEMENT DISTRICT NO. 15, DETERMINING AND FIXING THE MILL LEVY FOR THE SKYVIEW SOUTH GENERAL IMPROVEMENT DISTRICT NO. 15 FOR THE FISCAL YEAR 2016; DIRECTING THE SECRETARY OF THE DISTRICT TO CERTIFY SUCH LEVY TO THE BOARD OF COMMISSIONERS OF LARIMER COUNTY; AND MAKING THE FISCAL YEAR 2016 ANNUAL APPROPRIATION WHEREAS, the Skyview South General Improvement District No. 15 (the “GID”) was created by Larimer County in 1997 and annexed into the City by Phase Three of the Southwest Enclave Annexation in 2009; and WHEREAS, pursuant to C.R.S. Sections 31-25-603 and 31-25-609, as a result of the annexation of the entire GID into the City, the GID is now a district of the City and the City Council is to act as the ex-officio board of directors of the GID; and WHEREAS, GID staff has considered the amount of revenue to be raised by a levy on the taxable real property within the GID boundaries, and recommends imposing a levy of 10.0 mills upon each dollar of the assessed valuation of all such taxable real property for 2016; and WHEREAS, GID staff estimates a levy of 10.0 mills will result in $25,200 of revenue; and WHEREAS, the amount of this proposed mill levy is not an increase over prior years; as such, prior voter approval of the proposed levy is not required under Article X, Section 20 of the Colorado Constitution; and WHEREAS, C.R.S. Section 39-5-128(1) requires certification of any tax levy to the Board of Commissioners of Larimer County no later than December 15 of each year; and WHEREAS, additional revenue totaling $432 for 2016 is expected to be collected by the GID from interest earnings; and WHEREAS, in 2014, the City Council previously approved in Ordinance No. 153, 2014, the GID’s budget for the period beginning January 1, 2015, and ending December 31, 2016, which budget remains unchanged for 2016. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS, acting ex-officio as the Board of Directors of the City of Fort Collins Skyview South General Improvement District No. 15, as follows: Section 1. That the 2016 mill levy rate for taxation upon each dollar of the assessed valuation of taxable real property within the GID boundaries shall be 10.0 mills. Packet Pg. 4 Section 2. That the City Clerk acting ex-officio as the Secretary for the GID shall certify this levy of 10.0 mills to the County Assessor and the Board of Larimer County Commissioners as provided by law. Section 3. That the City Council, acting ex-officio as the Board of Directors of the City of Fort Collins General Improvement District No. 15, hereby appropriates out of the revenues of the GID for the fiscal year beginning January 1, 2016, and ending December 31, 2016, the sum of ONE THOUSAND DOLLARS ($1,000). Section 4. That revenue to be raised by taxation and additional revenue of the GID will be reserved in fund balance until such future time as authorized by the Board of Directors for the purposes of the GID. Introduced, considered favorably on first reading, and ordered published this 3rd day of November, A.D. 2015, and to be presented for final passage on the 17th day of November, A.D. 2015. _________________________________ Mayor, Ex Officio President ATTEST: _____________________________ City Clerk, Ex Officio Secretary Passed and adopted on final reading on the 17th day of November, A.D. 2015. _________________________________ Mayor, Ex Officio President ATTEST: _____________________________ City Clerk, Ex Officio Secretary Packet Pg. 5 IDALIA DR Y U M A CT I D A L I A CT RICK DR SOLAR CT M E R C U R Y D R W SATURN DR F O S S IL CREST DR E TRILBY RD E SATURN DR G A L A X Y CT E SKYWAY DR PLATEAU CT AURORA WAY LEO CT OR I O N CT PLUTO CT SUNDOWN CT FL A G L E R RD Skyview South General Improvement District No. 15 Legend General Improvement District #15 Parcels 1 inch = 600 feet ATTACHMENT 1 1.1 Packet Pg. 3 Attachment: Boundary map (3673 : Skyview GID 15 Mill Levy) $2.908 per 1,000 gallons of water use, measured sewage flow or winter quarter water use, whichever is applicable, plus the following applicable base charge: Size of water Base charge Packet Pg. 368 $2.908 per 1,000 gallons of water use, measured sewage flow or winter quarter water use, whichever is applicable, plus the following applicable base charge: Size of water meter Base charge Packet Pg. 357 X 9.8 Approve mix designs x Concrete x Hot mix asphalt X X 9.9 Check Final Materials Documentation X 9.10 Complete and Distribute Final Materials Documentation X 1 Packet Pg. 190 Attachment: Exhibit A (3739 : State Highway 14 Bridge IGA RESO) Structural Concrete Pre-Pour (Agenda is in CDOT Construction Manual) X Concrete Pavement Pre-Paving (Agenda is in CDOT Construction Manual) X HMA Pre-Paving (Agenda is in CDOT Construction Manual) X 8.4 Develop and distribute Public Notice of Planned Construction to media and local residents X 8.5 Supervise Construction A Professional Engineer (PE) registered in Colorado, who will be “in responsible charge of construction supervision.” Scott Ellis 970-622-1267 Local Agency Professional Engineer or Phone number CDOT Resident Engineer X 1 Packet Pg. 189 Attachment: Exhibit A (3739 : State Highway 14 Bridge IGA RESO) 5.8 Acquire Right-of-Way (may require FHWA concurrence/involvement) X 5.9 Obtain Utility and Railroad Agreements X 5.10 Conduct Final Office Review (FOR) X 5.11 Justify Force Account Work by the Local Agency N/A 5.12 Justify Proprietary, Sole Source, or Local Agency Furnished Items X 5.13 Document Design Exceptions - CDOT Form 464 X 5.14 Prepare Plans, Specifications and Construction Cost Estimates X 5.15 Ensure Authorization of Funds for Construction X 1 Packet Pg. 188 Attachment: Exhibit A (3739 : State Highway 14 Bridge IGA RESO) i t Ct Juli a n Ct O t i s Ct Tayl or C t Fl a ttop C t Hallett Ct Eagle Ln W es t g a t e Dr R o y a l V i s ta Cir B a ld E a g l e Ln E ag l e R a nch R d S e Frontage R d E agl e R a nch Rd Thre e E a gles Dr S w Fron t a g e R d ¦¨§25 ¦¨§25 Fossil Creek Reservoir CG POL Kindercare Learning Centers © Lodgepole Investments LLC Annexation Proposed Zoning 1 inch = 833 feet Site CG City Zoning General Commercial (CG) Public Open Lands (POL) ATTACHMENT 2 11.2 Packet Pg. 116 Attachment: Proposed Zoning (3716 : Lodgepole Investments Annexation) H a t ha w a y Ln Otis Ct Bald Eagle Ln Taylor Ct Interstate 25 S County Road 5 State Highway 392 Interstate 25 Legend I-25/392 Corridor Activity Center GMA City Limits - Area Water ± Lodgepole Investments LLC Annexation Vicinity Map Annexation Area Annexation Area Fossil Creek Reservoir 1 inch = 1,250 feet ATTACHMENT 1 11.1 Packet Pg. 115 Attachment: Vicinity Map (3716 : Lodgepole Investments Annexation) by any person or entity. Printed: March 05, 2015 Easement from Top of Bank 20' West Side / 25' East Side Lakes, Rivers, Streams 0Property 0.015 0.03 0.045 0.06 Brinks James S Trust Miles Scale212 1:4,© 1 Packet Pg. 93 Attachment: Exhibit A (3706 : Larimer No. 2 Brinks Agreement ORD)