HomeMy WebLinkAboutCOUNCIL - COMPLETE AGENDA - 05/10/2016 - COMPLETE AGENDACity of Fort Collins Page 1
u r b a n r e n e w a l a u t h o r i t y
Wade Troxell, Chairperson City Council Chambers
Gerry Horak, Vice-Chairperson City Hall West
Bob Overbeck 300 LaPorte Avenue
Ray Martinez Fort Collins, Colorado
Gino Campana
Kristin Stephens
Ross Cunniff Cablecast on City Cable Channel 14
and Channel 881 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 (V/TDD: Dial
711 for Relay Colorado) for assistance.
URBAN RENEWAL AUTHORITY BOARD
FORMAL MEETING
May 10, 2016
6:00 PM
CALL MEETING TO ORDER
ROLL CALL
AGENDA REVIEW
Executive Director’s Review of Agenda.
CITIZEN PARTICIPATION
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City of Fort Collins Page 2
CITIZEN PARTICIPATION FOLLOW-UP
STAFF REPORTS
COMMISSIONER REPORTS
Discussion Items
The method of debate for discussion items is as follows:
● Chairperson introduces the item number and subject; asks if formal presentation will be
made by staff
● Staff and/or Applicant presentation (optional)
● Chairperson requests citizen comment on the item (five-minute limit for each citizen)
● Board questions of staff on the item
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Note: Time limits for individual agenda items may be revised, at the discretion of the Chairperson, 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.
1. Consideration and Approval of the December 15, 2015 Urban Renewal Authority Meeting.
The purpose of this item is to approve the minutes from the December 15, 2015 Urban Renewal
Authority meeting.
2. Resolution No. 080 Appropriating Prior Year Reserves in the URA-Prospect South Tax Increment
District for Payment to Capstone Development Corporation. (staff: Josh Birks, Patrick Rowe; 5
minute staff presentation; 10 minute discussion)
The purpose of this item is to consider the appropriation of $598,281 in prior year reserves in the
Prospect South URA Fund to reimburse the Capstone development project (now known as “The
Summit on College”) for completed eligible improvements as required by the Capstone
Redevelopment Agreement.
OTHER BUSINESS
ADJOURNMENT
Agenda Item 1
Item # 1 Page 1
AGENDA ITEM SUMMARY May 10, 2016
Urban Renewal Authority Board
STAFF
Wanda Winkelmann, City Clerk
SUBJECT
Consideration and Approval of the December 15, 2015 Urban Renewal Authority Meeting.
EXECUTIVE SUMMARY
The purpose of this item is to approve the minutes from the December 15, 2015 Urban Renewal Authority
meeting.
ATTACHMENTS
1. December 15, 2015 (PDF)
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City of Fort Collins Page 310
URBAN RENEWAL AUTHORITY BOARD
December 15, 2015
6:50 PM
ROLL CALL
PRESENT: Overbeck, Campana, Troxell, Cunniff, Horak, Martinez, Stephens
Staff Present: Atteberry, Daggett, Winkelmann
CITIZEN PARTICIPATION
Eric Sutherland stated obligations made by the Urban Renewal Authority are not compatible
with the Urban Renewal Authority statutes.
1. Consideration and Approval of the Minutes of the September 8 and November 17, 2015 Urban
Renewal Authority Meetings. (Adopted)
The purpose of this item is to approve the minutes from the September 8 and November 17, 2015
Urban Renewal Authority Board meetings.
Vice Chair Horak made a motion, seconded by Boardmember Overbeck, to approve the minutes
of the September 8 and November 17, 2015 Urban Renewal Authority Board meetings.
RESULT: ADOPTED [UNANIMOUS]
MOVER: Gerry Horak, District 6
SECONDER: Gino Campana, District 3
AYES: Overbeck, Campana, Troxell, Cunniff, Horak, Martinez, Stephens
2. Resolution No. 079 Approving a Redevelopment Agreement Between the Fort Collins Urban
Renewal Authority and Hickory Commons, LLC. (Adopted as Amended)
The purpose of this item is to consider a Redevelopment Agreement between the URA and Hickory
Commons, LLC for $136,072 of tax increment financing assistance. This tax increment financing
(TIF) assistance is proposed as reimbursement for stormwater facility costs, including a
neighborhood drainage outfall, associated with a proposed development consisting of two (2) 11,000
square foot industrial buildings and one (1) 7-unit live/work condo building.
Patrick Rowe, Interim Redevelopment Program Coordinator, stated the North College Citizens’
Advisory Group has recommended support for the Hickory Commons application and the URA
Finance Group has recommended the application be presented to the full Board. He discussed
the project location, stating the site is currently a vacant property. The proposed project involves
the development of two warehouses and one seven-unit live-work building. The project includes
an oversized stormwater system which may benefit the neighboring property owners. The
application requests reimbursement of the entire stormwater drainage system and outfall, which
is estimated to cost $136,072, of which $40,000 is estimated to be eligible for repayment, which
would be assigned to the URA per the redevelopment agreement.
Larimer County has calculated an annual property tax increment of $72,000, which extrapolates
to $888,000 over the life of the URA. The return on investment without TIF assistance is 3.3%,
and with the URA support, 6.07%. The entire project must be complete prior to the initial TIF
payment.
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Attachment: December 15, 2015 (4454 : URA-minutes 12/15/15)
December 15, 2015
City of Fort Collins Page 311
Eric Sutherland stated he does not believe the state has the legal authority to disperse money to
the Fort Collins Urban Renewal Authority and stated TIF is debt finance reimbursement only.
Vice Chair Horak made a motion, seconded by Boardmember Cunniff, to adopt Resolution No.
079.
Boardmember Cunniff noted the stormwater system is oversized and asked if that is a primary
reason to fund the project. Rowe replied in the affirmative.
Boardmember Cunniff asked if this aspect of the project would occur without URA support.
Rowe replied staff is comfortable that the stormwater system would not be the same without the
support of the URA.
Boardmember Cunniff stated he would support the motion given the public benefit.
Boardmember Campana commended Rowe on his presentation and stated he is not opposed to
the reimbursement through TIF of the installation of the storm drainage facilities; however, the
reimbursement should come back for the oversizing and the benefit of the surrounding
properties, but not for the property itself. He suggested the possibility of reimbursing the amount
which would benefit everything except the subject property, allowing standard engineering
practices to calculate that amount.
Vice Chair Horak asked if this situation is different than other URA TIF storm drainage projects.
Rowe replied the most peculiar stormwater constraint for this site is that there is no outfall to
convey the flows from the site.
Boardmember Campana stated he would support reimbursement for public improvements;
however, he does not believe the on-site improvements should be reimbursed.
City Attorney Daggett stated staff can work on language modifications for the Resolution which
will make clear the Board's intent.
Boardmember Cunniff stated his understanding was that the $136,072 was only for the off-site
portions. Rowe replied that amount is for the entire stormwater system and a portion of that
benefits this particular development.
Jeff Mihelich, Deputy Director, suggested the possibility of including language which states the
developer shall only be reimbursed for those stormwater improvement costs that are not on the
subject property, other than the lateral into the property from the property to the west.
Boardmember Campana stated that would be acceptable to him.
Bob Gowling, Apex Engineering, stated the needs for the project are substantially smaller than
the storm drainage proposal and discussed the ways in which the project would be decreased in
size were it just to serve the subject property and not involve TIF financing.
Boardmember Campana asked about the additional cost being paid by the developer to
accommodate future flows from other properties. Mr. Gowling replied that number could be
calculated.
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Attachment: December 15, 2015 (4454 : URA-minutes 12/15/15)
December 15, 2015
City of Fort Collins Page 312
Boardmember Cunniff asked about the timeline for development of this project. Charlie
Masserlian, property owner, replied the plan is to start construction in the spring.
Boardmember Cunniff asked if the schedule would be negatively impacted should this item be
postponed to January for consideration. Mr. Masserlian replied in the negative.
Boardmember Cunniff made a motion, seconded by Boardmember Overbeck, to postpone this
item to January 5, 2016.
City Attorney Daggett suggested taking a short recess in order to evaluate a potential
postponement.
(Secretary’s Note: The Board took a brief recess at this point in the meeting.)
City Attorney Daggett presented Resolution wording changes which would capture some of the
discussion.
Boardmembers Cunniff and Overbeck withdrew the motion to postpone.
Vice Chair Horak and Boardmember Cunniff accepted the proposed language modifications as
presented by City Attorney Daggett.
Boardmember Campana commended the language modifications.
Chair Troxell discussed the future need for making clear the difference between public and
private benefits in terms of URA projects.
RESULT: Resolution No. 079 ADOPTED AS AMENDED [UNANIMOUS]
MOVER: Gerry Horak, District 6
SECONDER: Ross Cunniff, District 5
AYES: Overbeck, Campana, Troxell, Cunniff, Horak, Martinez, Stephens
OTHER BUSINESS
Boardmember Cunniff requested information regarding the date at which the new URA Board
will be seated. Mihelich replied that date will be included on the six-month planning calendar as
soon as possible.
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Attachment: December 15, 2015 (4454 : URA-minutes 12/15/15)
December 15, 2015
City of Fort Collins Page 313
ADJOURNMENT
The meeting adjourned at 7:41 PM.
________________________________
Chair
ATTEST:
________________________________
Secretary
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Attachment: December 15, 2015 (4454 : URA-minutes 12/15/15)
Agenda Item 2
Item # 2 Page 1
AGENDA ITEM SUMMARY May 10, 2016
Urban Renewal Authority Board
STAFF
Josh Birks, Economic Health Director
Patrick Rowe, Interim Redevelopment Program Coordinator
SUBJECT
Resolution No. 080 Appropriating Prior Year Reserves in the URA's Prospect South Tax Increment District
Fund for Payment to Capstone Development Corporation.
EXECUTIVE SUMMARY
The purpose of this item is to consider the appropriation of $598,281 in prior year reserves in the Prospect
South URA Fund to reimburse the Capstone development project (now known as “The Summit on College”) for
completed eligible improvements as required by the Capstone Redevelopment Agreement.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution
BACKGROUND / DISCUSSION
The Urban Renewal Authority (URA) entered into a Redevelopment Agreement (Agreement) with Capstone
Development Corp. (Capstone) on September 13, 2011 in order to facilitate the development of a constrained site
located within the Prospect South Tax Increment Financing District. Capstone completed construction of the
project, branded “The Summit on College”, in August 2013.
Final Reimbursement Payment
The Agreement between the URA and Capstone authorized up to $5,000,000 in potential support, $875,000 of
which was made contingent upon Capstone’s commercial leasing performance to be paid out at a rate of $109.375
per square foot of gross leased space. In August 2013 Capstone leased 2,274 of net square feet to Red Robin,
LLC and received that portion of the withheld reimbursement. On April 20, 2016, the URA received a final
reimbursement request of $598,281 which reflects an additional lease of commercial space to State of Fitness,
LLC as well as a small “true-up” payment to reflect the gross space leased to Red Robin, LLC (as agreed by the
URA in November 2013). This is the final reimbursement payment Capstone is eligible to receive. (Note: This
final payment will result in a total reimbursement of $4,972,000, which is $28,000 less than the authorized amount
of $5,000,000. This reduction of $28,000 resulted from an evaluation on what space qualified as the gross
leasable space and agreement that it was 256 square feet less than originally calculated).
This resolution appropriates URA funds from the Prospect South Tax Increment Financing District for the final
reimbursement payment to Capstone as required by the Redevelopment Agreement. Staff has completed its
review and has concluded the request to be appropriate and consistent with the terms of the Redevelopment
Agreement.
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Agenda Item 2
Item # 2 Page 2
Capstone Project Overview
Capstone sought assistance primarily on the basis of the significant floodplain and stormwater challenges that
constrained the site. Prior to the Capstone development, the site had remained vacant following the 1997 flood.
The URA approval of the project and the subsequent resulting Agreement provided support to the project in four
particular areas, most of which relate to the floodplain and stormwater challenges of the site:
1. Stormwater/Sewer/Floodplain Infrastructure Public Improvements - This included costly stormwater
improvements and Federal Emergency Management Agency (FEMA) remapping costs.
2. Land Acquisition/Easements/Demolition - This category included the land value associated with a FEMA
easement dedication as well as a land allocation for public streets and roads, and demolition/site work.
3. Utilities/Infrastructure Public Improvements - The URA provided assistance in supplying electrical service to
the site, as well as improvements in public areas including lighting along public streets, and curb, gutter and
sidewalks in public and FEMA areas.
4. Energy and Environmental Improvements - To incentivize energy and environmental project enhancements,
the URA supported a number of efficiency upgrades including upgrades to the HVAC systems, windows,
insulation, etc.
Current Status Summary
Redevelopment Obligations - Capstone has fulfilled all of its development obligations to date. The final
reimbursement request received on April 20, 2016 evidences satisfaction of the lease performance provision,
which is the final component of the Agreement.
Student Housing Leasing Status - According to Capstone, the project has and is performing well. The
residential/student housing piece has been 95% leased since opening and 99% for lease year 2015-2016.
Capstone represents that in response to the development’s parking challenges, they have had to offer rental
incentives to achieve their desired occupancy rate. Following the completion of a parking structure, they
believe they will be able to discontinue these incentives.
Ownership Transfer - On April 19, 2016 Capstone transferred ownership of the project from its holding
company to a new owner. The Agreement permits this transfer following the completion of construction and
the satisfaction of its obligations, both of which have occurred.
Project Challenges
Although successful from a redevelopment perspective (the URA supported a desirable project on a highly
challenged site where it would not have otherwise occurred due to stormwater challenges and lacking
infrastructure), the project development has experienced a number of challenges along the way:
Parking - The project received criticism from adjacent neighborhoods and businesses for not providing
adequate parking (which later resulted in Land Use Code changes adding parking minimums for similar
projects). In response to this criticism and to address rental challenges with the lack of parking, the developer
is currently constructing a parking structure on the existing surface parking lot to the south of the buildings.
This garage has been appealed twice by adjacent property owners with the result of the appeal being upheld
with a modification to reduce its size. Additionally, there has been a lawsuit by an adjacent property owner
challenging the planned construction of the garage. This suit has since been resolved with the outcome that
the garage construction will move forward. A building permit was pulled in late April and construction is
moving forward.
Stormwater - The Capstone site was very constrained by challenging and complicated floodplain and
stormwater issues. The degree of complication and developer’s experience in this area presented some
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Agenda Item 2
Item # 2 Page 3
challenge, but the end result was completed stormwater improvements and a FEMA Letter of Map Revision
(LOMR), which remapped the floodplain in this area.
City/URA Response
In response to this project the City and URA made the following process improvements:
The City amended its Land Use Code to include minimum parking requirements for similar developments.
The Land Use Code was revised to enhance design standards for all multi-family projects to address some of
the design criticism of the project. These standards now apply to all multi-family projects of a similar nature.
The URA amended its practice with regard to calculating tax increment financing (TIF) in two important ways:
(1) the URA discontinued its practice of relying on the applicant to provide an estimate of increment and
instead utilized the Larimer County’s estimate; and (2) the URA discontinued its use of growth factors on the
TIF (i.e., no growth is assumed over time).
CITY FINANCIAL IMPACTS
This final reimbursement payment will be paid out of the Prospect South Tax Increment District Fund. The
funds for these payments come from the proceeds of a loan provided by the City to the URA for this express
purpose. The URA has been making payments on the full $5.0 million principal with applicable interest of the
loan since the first reimbursement to Capstone. Therefore, the Prospect South Tax Increment District Fund
has sufficient reserves to cover this expense and TIF collections in the district are sufficient to cover the on-
going debt payments associated with the loan.
ATTACHMENTS
1. Capstone Redevelopment Agreement (PDF)
2. Amendment to the Capstone Redevelopment Agreement (PDF)
3. Powerpoint presentation (PDF)
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ATTACHMENT 1
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Attachment: Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
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Attachment: Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
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Attachment: Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
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Attachment: Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
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Attachment: Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
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Attachment: Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
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Attachment: Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
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Attachment: Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
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Attachment: Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
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Attachment: Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
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Attachment: Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
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Attachment: Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
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Attachment: Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
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Attachment: Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
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Attachment: Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
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Attachment: Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
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Attachment: Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
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Attachment: Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
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Attachment: Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
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Attachment: Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
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Attachment: Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
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Attachment: Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
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Attachment: Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
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Attachment: Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
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Attachment: Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
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Attachment: Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
ATTACHMENT 2
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Attachment: Amendment to the Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
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Attachment: Amendment to the Capstone Redevelopment Agreement (4440 : Capstone Project Obligations - Final Reimbursement)
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The Summit – Final Reimbursement Appropriation
Patrick Rowe & Josh Birks
ATTACHMENT 3
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Attachment: Powerpoint presentation (4440 : Capstone Project Obligations - Final Reimbursement)
Tonight’s Action
Resolution appropriating funds required to pay an obligation
of the Redevelopment Agreement between the Fort Collins
Urban Renewal Authority and Capstone Development
Corporation.
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Attachment: Powerpoint presentation (4440 : Capstone Project Obligations - Final Reimbursement)
The Summit – Before and After
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• Vacant since 1997 flood
• Deteriorating structures
• Overhead power lines
• 676 beds student housing
• 8,000 sq. ft. retail
• Removed from floodplain
• Street and utility improvements
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Attachment: Powerpoint presentation (4440 : Capstone Project Obligations - Final Reimbursement)
Eligible Costs
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1. Stormwater/Sewer/Floodplain Infrastructure Public
Improvements
2. Land Acquisitions/Easements/Demolition
3. Utilities/Infrastructure Public Improvements
4. Energy & Environmental Improvements
Total Reimbursement Capped at $5M
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Attachment: Powerpoint presentation (4440 : Capstone Project Obligations - Final Reimbursement)
Reimbursements Summary
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• First Reimbursement (Nov. 2013) - $4,273,718.75
– Reimbursement for completed project, including all required
improvements and obligations.
– $100,000 retained for LEED certification and FEMA LOMR
approval.
– $626,281.25 retained for commercial lease performance.
• Second Reimbursement (Oct. 2015) - $100,000
– Reimbursement for LEED certification and FEMA LOMR
approval.
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Attachment: Powerpoint presentation (4440 : Capstone Project Obligations - Final Reimbursement)
Final Reimbursement
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• Final Reimbursement (April 2016) - $598,281.25
– Reimbursement for State of Fitness, LLC signed
lease –$593,031.25.
– Reimbursement “true-up” payment for Red
Robin, LLC signed lease (gross lease area
greater than net lease area) -- $5,250.
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Attachment: Powerpoint presentation (4440 : Capstone Project Obligations - Final Reimbursement)
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Thank you
Thank you
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Attachment: Powerpoint presentation (4440 : Capstone Project Obligations - Final Reimbursement)
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RESOLUTION NO. 080
OF THE BOARD OF COMMISSIONERS OF THE
FORT COLLINS URBAN RENEWAL AUTHORITY
APPROPRIATING PRIOR YEAR RESERVES IN THE URA’S
PROSPECT SOUTH TAX INCREMENT DISTRICT FUND FOR
PAYMENT TO CAPSTONE DEVELOPMENT CORPORATION
WHEREAS, the Fort Collins Urban Renewal Authority (the “URA”) entered into a
Redevelopment Agreement dated September 13, 2011, (the “Agreement”) with Capstone
Development Corporation (“Capstone”) in order to facilitate the development of a constrained
site located within the Prospect South Tax Increment Financing District; and
WHEREAS, Capstone completed construction of the project, branded “The Summit on
College” in August 2013; and
WHEREAS, the Agreement requires the URA to provide Capstone with up to
$5,000,000 in potential support for the project; and
WHEREAS, on November 5, 2013, the Authority adopted Resolution No. 065 to
appropriate the $5,000,000 to be paid by the Authority to Capstone in accordance with the terms
and conditions of the Agreement, but such appropriation has since lapsed; and
WHEREAS, the purpose of this Resolution is to appropriate $598,281 from the
unappropriated prior year reserves in the Prospect South Tax Increment District Fund (the
“Prospect South Fund”) to pay such amount to Capstone as a reimbursement required under
the Agreement; and
WHEREAS, this will be the final reimbursement required under the Redevelopment
Agreement; and
WHEREAS, the URA is authorized to appropriate these funds in accordance with C.R.S.
Section 31-25-105(1)(h).
NOW, THEREFORE, BE IT RESOLVED THE FORT COLLINS URBAN
RENEWAL AUTHORITY BOARD OF COMMISSIONERS as follows:
Section 1. That the Board of Commissioners of the Fort Collins Urban Renewal
Authority hereby makes and adopts the determinations and findings contained in the recitals set
forth above.
Section 2. That there is hereby appropriated from prior year reserves in the Prospect
South Fund the sum of FIVE HUNDRED NINETY-EIGHT THOUSAND TWO
HUNDRED EIGHTY-ONE DOLLARS ($598,281) for reimbursement to Capstone
Development Corporation as required under the Agreement.
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Passed and adopted at a regular meeting of the Board of Commissioners of the Fort
Collins Urban Renewal Authority this 10th day of May, A.D. 201 6.
____________________________________
Chairperson
ATTEST:
___________________________
Secretary
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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 and Channel 881 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 (V/TDD: Dial
711 for Relay Colorado) for assistance.
Special Meeting
May 10, 2016
After the Urban Renewal Authority meeting, which begins at 6:00 p.m.
PLEDGE OF ALLEGIANCE
CALL TO ORDER
ROLL CALL
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 beep once and the timer light will turn yellow to indicate that 30 seconds of
speaking time remain, and will beep 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.]
City of Fort Collins Page 2
CITIZEN PARTICIPATION FOLLOW-UP
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.
1. Council will consider a motion to adjourn into executive session.
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
City of Fort Collins Page 1
Wade Troxell, Mayor Council Information Center (CIC)
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 and Channel 881 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.
City Council Work Session
May 10, 2016
After the Urban Renewal Authority Board Meeting, which begins at 6:00 p.m. and
the Special Council Meeting.
CALL TO ORDER.
1. I-25/SH 392 Corridor Activity Center Intergovernmental Agreement (IGA) Amendments. (staff:
Tom Leeson, Laurie Kadrich; 10 minute staff presentation; 45 minute discussion)
The purpose of this item is to review the proposed amendments by the Town of Windsor to the IGA
between Windsor and Fort Collins with respect to development in the I-25/SH392 Corridor Activity
Center and to provide input on the proposed amendments.
2. Poudre Fire Authority Performance Update. (staff: Tom DeMint, Ann Turnquist, Kirsten Howard;
10 minute staff presentation, 30 minute discussion)
The purpose of this item is to review 2015 performance measurements and metrics, goals, actual
spending to budget, benefits to the community related to strategic outcome goals, operational
efficiency, productivity improvements, and issues of concern to Poudre Fire Authority, the Poudre
Valley Fire Protection District, and the City.
3. Light & Power Reliability Update. (staff: Tim McCollough, Kevin Gertig, Chris Parton; 10 minute
staff presentation; 30 minute discussion)
The purpose of this item is to provide an overview of the Utilities Light and Power Operations
reliability improvement efforts, opportunities, and accomplishments.
City of Fort Collins Page 2
OTHER BUSINESS.
ADJOURNMENT.
DATE:
STAFF:
May 10, 2016
Tom Leeson, Director, Comm Dev & Neighborhood Svrs
WORK SESSION ITEM
City Council
SUBJECT FOR DISCUSSION
I-25/SH 392 Corridor Activity Center Intergovernmental Agreement (IGA) Amendments.
EXECUTIVE SUMMARY
The purpose of this item is to review the proposed amendments by the Town of Windsor to the IGA between
Windsor and Fort Collins with respect to development in the I-25/SH392 Corridor Activity Center and to provide
input on the proposed amendments.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Does Council support the proposed amendments to the IGA between Windsor and Fort Collins with respect to
development in the I-25/SH392 Corridor Activity Center?
BACKGROUND / DISCUSSION
On November 7, 2015, members of the Town of Windsor Board and Fort Collins City Council held a joint work
session to discuss potential amendments to the I-25/SH 392 Intergovernmental Agreement (IGA) pertaining to the
allowance of prohibited uses (automobile dealerships and single family) within the Corridor Activity Center (CAC).
The work session summary is attached for reference (Attachment 3).
Subsequent to the joint work session, staff from Windsor and Fort Collins worked collaboratively to evaluate
underlying design standards. Additionally, the Town of Windsor staff held public meetings to gain feedback from
community members and held Board work sessions to discuss potential amendments to the IGA.
On April 11, 2016, the Town of Windsor approved a resolution authorizing the town manager to propose to Fort
Collins an amendment to the IGA with respect to development in the I-25/SH 392 CAC, and is seeking input on
the proposed amendments. (Attachment 4) The following summarizes the proposed changes:
Amendment of Permitted Uses and Additional Definitions: “Automobile Dealerships” and “Single-Family
Detached Residential” have been added to the list permitted uses for the east side of I-25. Those uses remain
as prohibited uses to the west of I-25. Definitions for each have been added to Section 1 of the Agreement.
Limitations of Automobile Dealerships and Single-family Detached Residential: Section 2 of the
agreement limits these uses to identified sites as depicted on attached exhibits. The automobile dealerships
are limited to 38 acres on the northerly Moreland property. The single-family uses are limited to 45 acres on
the far eastern edge of the Muth property north of SH 392 and just west of Larimer County Road 5.
Staff Analysis and Recommendation: Staff supports allowing automobile dealerships as permitted uses on
the 38 acres on the northerly Moreland property. Automobile dealerships are a less intense use than other
uses permitted within that area; however, the proposal limits the extent of automobile dealerships and allows
for other higher intense use, such as retail and entertainment uses. The enhanced design standards would
help to mitigate any visual concerns from I-25 and is consistent with the original intent of the CAC to have an
attractive gateway to both communities.
Staff does not support the proposal to allow single-family detached housing on the 45 acres on the far eastern
edge of the Muth property north of Highway 392 and just west of Larimer County Road 5. Allowing single-
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family detached housing on 45 acres in this area significantly deviates from the original intent of the CAC for
this area, which was a high intense activity center with a mix of commercial and higher-density residential
uses. Additionally, consideration should be given to the financial implications of such a low-intensity use at
this location. Under the March 2008 392 Interchange Intergovernmental Agreement, there was mention of
significant annual sales tax revenue generated from an anticipated 650,000 square feet of retail development
on the subject property, which was intended to offset the costs of design and construction of the interchange
improvements.
Enhanced Design Standards: the Town of Windsor is proposing Enhanced Design Standards for the
Windsor side of the CAC. The CAC Enhanced Design Standards are included within Attachment 1 and, in
many respects, track established local practices (including Fort Collins), and are a product of numerous
internal and public discussions with residents, landowners and staff.
It should be noted that Sec. 3.3.1.b of the IGA includes the following language: “…except that the Enhanced
CAC Design Standards may be modified by Town ordinance, adopted in accordance with the Town’s Home
Rule Charter, notice of which shall be presented to the City no later than thirty (30) days prior to ordinance
introduction.”
Staff Analysis and Recommendation: Staff supports the new Enhanced Design Standards for the Windsor
side of the CAC and would propose the same set of standards be applied to the Fort Collins side as well to
ensure consistency within the entire CAC. It should be noted that the Enhanced Design Standards include an
“Alternative Compliance” section allowing variations to the standards provided the variations meet certain
criteria including: “The plan as submitted will not depart from the CAC design standards except in nominal,
inconsequential way when considered from the perspective of the entire development plan, and will continue
to advance the overall purposes of the CAC enhanced design standards as set forth herein.”
Staff does not support the IGA language allowing Windsor to modify the Enhanced CAC Design Standards
without Fort Collins input. A joint adoption process should be included in the IGA to allow Fort Collins input
into amendments to the design standards.
Modifications to Revenue Sharing: The current IGA requires sixty-five percent (65%) of the property and
sales tax increment revenues generated in the CAC to be retained by each party and the remaining thirty-five
percent (35%) of such revenues to be transferred to the other party to help reimburse each party for the
original investment into the I-25/SH 392 intersection improvements. The amended agreement proposes no
revenue sharing for the automobile dealerships and the single-family detached residential uses. The
modifications to the revenue sharing language in Section 4 reflect Windsor’s desire to capture all the sales
and property tax increment generated by the new uses on the Windsor side of the interchange. Based on the
March 2015 BBC study (Attachment 5) Windsor believes, particularly with respect to automobile dealerships,
there will be increased costs which will not be mitigated under the current 65/35 revenue-sharing formula. The
sale of automobiles does not generate use tax or sales tax revenue to Windsor, and the sole source of sales
tax revenue would be service and parts related.
Staff Analysis: See attached analysis by Josh Birks with Economic Health. (Attachment 6)
Transit Site Identification: Section 6.3 contains new language requiring the City to condition annexation on
landowner agreements to identify (but not dedicate or reserve) a future transit site parallel to that being
identified on the Windsor side. This term is tied to the vision for bus rapid transit captured in the 2008 I-25/392
Improvements plan commissioned by the City and the Town. Windsor feels that, if it is requiring a Windsor
landowner to identify a future transit site, Fort Collins should require a future transit site as well.
Staff Analysis and Recommendation: Staff supports the additional language to require a future transit site
on the west side of I-25. There is sufficient area to accommodate such a use on the west side and identifying
a future transit site upon annexation would help to promote the City’s transportation goals for the area.
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ATTACHMENTS
1. First Amended IGA, November 13, 2012 (PDF)
2. Amending Certain Provisions of the First Amended IGA, May 9, 2013 (PDF)
3. Joint Work Session Summary, November 2, 2015 (PDF)
4. Letter from Windsor re: proposed amendment to I-25/392 IGA, April 21, 2016 (PDF)
5. BBC Research & Consulting Report, March 4, 2015 (PDF)
6. Economic Health Office Analysis of Amendments to the Revenue Sharing Agreement (DOCX)
7. Powerpoint presentation (PDF)
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ATTACHMENT 1
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Attachment: First Amended IGA, November 13, 2012 (4399 : I-25/SH 392 Corridor Activty Center IGA Amendments)
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ATTACHMENT 2
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Attachment: Amending Certain Provisions of the First Amended IGA, May 9, 2013 (4399 : I-25/SH 392 Corridor Activty Center IGA Amendments)
Community Development & Neighborhood Services
281 North College Avenue
P.O. Box 580
Fort Collins, CO 80522.0580
970.416.2740
970.224.6134- fax
fcgov.com
Planning, Development & Transportation Services
MEMORANDUM
Date: November 7, 2015
To: Mayors and Members of Windsor Town Board and Fort Collins City Council
From: Laurie Kadrich, Planning, Development & Transportation Services Director
Through: Kelly Arnold, Town of Windsor Town Manager
Darin Atteberry, Fort Collins City Manager
Re: 11-02-15 Joint Elected Officials Work Session Summary – Amendment to I-25/SH 392
Intersection IGA
Elected Officials in Attendance:
Fort Collins City Council Windsor Town Board
Wade Troxell, Mayor John Vasquez, Mayor
Gerry Horak, Mayor Pro Tem Ivan Adams
Gino Campana Myles Baker
Ross Cunniff Robert Bishop-Cotner
Ray Martinez Kristie Melendez
Bob Overbeck Christian Morgan
Kristin Stephens Jeremy Rose
Meeting Purpose: To discuss potential amendments to the Intergovernmental Agreement (IGA)
pertaining to the allowance of prohibited uses (automobile dealerships) within the Corridor Activity
Center (CAC).
The Town of Windsor provided some background on the IGA and the purpose of looking at this issue
now. Representatives of local auto dealerships brought this issue to the Town of Windsor due to the
constraints the dealerships are experiencing on their current locations. This issue was not initiated by
the Town of Windsor.
Auto dealerships were not originally permitted within the CAC for three primary reasons: (1) relative to
other uses, auto dealerships do not generate as much sales tax. In an effort to reimburse Windsor and
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Fort Collins for the costs associated with the I-25/392 interchange, higher sales tax generating uses were
desired. (2) The underlying zoning in Windsor allowed for more employment uses, so the uses permitted
in the CAC were intended to be consistent with the underlying zoning. (3) The importance of the
gateway to both communities, as well as compatibility with surrounding uses and views to the west
were part of the decision.
There was agreement that very little had changed in the area since the original IGA; however, it should
be recognized that no development activity has occurred in the last five (5) years. There is still a strong
desire for a high level of design standards in the area and recognition that the IGA should include a
recurring review period. It was also acknowledged that more specificity should be provided with regards
to the definition of the some of the listed permitted uses in the CAC.
Both entities agreed there should be an evaluation of compatibility standards within each community’s
respective land use codes and understanding of how those compatibility standards could be applied to
the CAC. There was consensus that staff from both communities should get together to look at potential
standards (buffer yards, lighting, landscaping) to be included within the IGA prior to looking at the
inclusion of specific uses. The original intent of the IGA should be maintained.
Windsor Town Board and Fort Collins City Council agreed the following should occur in a timely manner:
Mutual intent statement drafted to identify process
Evaluate recurring review period for IGA
Include definitions of uses and more specificity where needed
Evaluate inclusion of appeal process
Identify joint public outreach process
Identify mutually agreeable compatibility/design standards to include within IGA
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March 4, 2015
Mr. Mike Downey
Vice President
Fort Collins Dodge Chrysler Jeep Ram
Mr. David Swanson
CEO
Tynan’s Nissan and Tynan’s Kia
Via email
Re: Fort Collins Dodge Chrysler Jeep Ram and Tynan’s Economic and Fiscal
Impact Analysis
Mr. Downey and Mr. Swanson:
This letter documents the projected economic and fiscal impacts of the proposed relocation and
development of Fort Collins Dodge Chrysler Jeep Ram (DCJR), Tynan’s Nissan and Tynan’s Kia
(collectively Tynan’s auto dealerships) on the Town of Windsor, Colorado (Town). The analysis
also considers development of four adjacent commercial pad sites.
Our analysis is based on the most recent site development plans; the auto dealership’s current
and projected sales revenue data; Larimer County assessor data; conversations with local
commercial real estate brokers; the Town’s development fee schedule; and the Town’s fiscal
model.
Background
Fort Collins DCJR and Tynan’s auto dealerships are considering a relocation and expansion of
their respective facilities; a result of increased demand for their products and services. Fort
Collins DCJR and Tynan’s have identified a 53-acre commercially zoned land parcel within the
Town of Windsor as a viable location for the auto dealerships, shown in Figure 1.1 This land
parcel is located to the southeast of the Interstate 25/State Highway 392 Interchange. The site
1 The site is comprised of two individual land parcels. The northern parcel (# 86221-47-002) is 22.81 acres and the southern
parcel (# 86220-00-003) is 30.00 acres.
ATTACHMENT 5
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was chosen due to its high visibility from major roadways; ease of access; traffic volume; and
strategic location in Northern Colorado. Along with the construction of the auto dealership
facilities, four commercial pad sites are included in the site plan (Figure 2).
Figure 1.
Map of Proposed
Development Site
Source:
BBC Research & Consulting; ArcGIS.
Corridor activity center. The 53-acre land parcel is located within the Corridor Activity
Center (CAC), an area created through an intergovernmental agreement between the City of Fort
Collins and the Town of Windsor.2 Properties within the CAC are located in close proximity to
the Interstate 25/State Highway 392 Interchange (Interchange) and subject to a special one-
time fee to recover the infrastructure costs associated with the Interchange improvement.3 The
special fee imposed on the “Benefitted Properties” results from the anticipated appreciation in
value due to the construction of the Interchange, as well as to offset improvement costs
2 Town of Windsor, Ordinance NO. 2012-1440.
3 The CAC special one-time fee is to be paid in quarterly installments over seven years.
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associated with Benefitted Property development, as well as the subsequent increase in
vehicular trips.
The type of development allowed on a property within the CAC is restricted to a set of permitted
land uses. Currently, auto dealerships are not listed as a permitted use. As such, allowance of
auto dealership development within the CAC would require an amendment to the
intergovernmental agreement between the City of Fort Collins and the Town of Windsor.
Fiscal Impact Findings
The proposed auto dealership and commercial development would create an annual net surplus
between $105,000 (auto dealerships only) and $290,000 (auto dealerships plus commercial
space). Additionally, the development will generate between $740,000 and $1 million in one-
time construction use tax and development fees for the Town, depending on the specific
characteristics of the pad development.4 The development of the land parcel will also recover
over $347,000 in one-time special fee assessments associated with the CAC.5
Methodology
BBC’s economic and fiscal impact analysis models municipal revenue and expenditure
associated with the development and operation of the auto dealerships and adjacent commercial
space. These revenue sources include sales tax, property tax, construction use tax, development
fees (impact fees and building permit fees) and CAC special fees. For other municipal revenues
and the expenditures component,6 BBC coordinated with the Town of Windsor to utilize their
existing fiscal model to estimate Town operating expenditures associated with the auto
dealerships and commercial space.
Development assumptions. The auto dealerships are expected to occupy approximately 30
acres, or 60 percent of the site. The Fort Collins DCJR auto dealership will occupy a 40,000
square foot facility, while Tynan’s Nissan and Tynan’s Kia will each require a 24,000 square foot
facility. The total built square footage of the auto dealerships on the development site is
expected to be 88,000 square feet.
The current site plan designates 9.9 acres, across four pad sites, for retail and/or office space.
Figure 2 presents the current site plan.
4 Development fees include building permit fees and impact fees. Impact fees are assessed on commercial development for
sewer plant investment, water plant investment, storm drainage and road impacts.
5 The original CAC special fee assessment for both parcels totaled $317,675 in 2012. Adjusted for inflation at 3.05%, specified
in the Town of Windsor Ordinance, the total fee amounts to $347,638 in 2015 dollars.
6 Other municipal revenues include charges for services, fines and forfeitures, licenses and permits, intergovernmental
revenue and other miscellaneous tax revenues.
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Figure 2.
Site Plan
Source: Ripley Design Inc.
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BBC has created two scenarios for commercial pad development:
Commercial Scenario 1 includes construction of four retail structures, averaging 5,000
square feet each (20,000 square feet total).
Commercial Scenario 2 also assumes construction of four structures averaging 5,000 square
feet each, but two retail structures (10,000 square feet total) and two office structures
(10,000 square feet total).
The below analysis considers both of the commercial pad development scenarios.
Municipal Revenues
BBC’s analysis focuses on impacts to the General Fund, Capital Improvement Fund and
Community and Recreation Center Fund. Projections of one-time revenue are included for the
Water Fund, Sewer Fund and Storm Drainage Fund.
The Town of Windsor imposes a 3.95 percent sales and use tax. This tax rate is broken into two
components: 3 percent for the General Fund and Capital Improvement Fund and 0.95 percent
dedicated to the Community and Recreation Center Fund. The 3 percent is split between the
General Fund (60 percent) and the Capital Improvement Fund (40 percent). The General Fund is
also supported by property tax revenues and building permit fees. Road impact fees go to the
Capital Improvement Fund, while other capital expansion fees go towards specific enterprise
funds (i.e. sewer plant investment fees go to the sewer fund).
Annual sales tax. In Colorado, sales tax imposed on motor vehicle purchases accrues to the
municipality of the purchaser’s residence, not the location of purchase. In 2011, the Town of
Windsor enacted an ordinance that “imposed a sales tax exemption on motor vehicles purchased
from dealerships located within the city limits [outside of the city limits was already exempted]
if the buyer is a Town of Windsor resident.”7 Consequently, sales tax is not collected by the
Town on any motor vehicle purchases. However, automotive parts sales are taxed by the Town
at the standard 3.95 percent.
Figure 3 on the following page presents the annual sales tax collected from the auto dealerships
and new retail development. The sales tax revenues attributable to the auto dealerships only
represent parts sales, for the reasons discussed above. BBC’s calculation for the auto dealerships
is based upon data and projections provided by Fort Collins DCJR and Tynan’s. BBC estimates
total annual sales tax revenues of almost $160,000 from the auto dealerships.
In addition to the assumptions made regarding total square footage and use, retail sales per
square foot is assumed to be $250 for both commercial development scenarios. New commercial
retail sales tax is almost $200,000 under Commercial Scenario 1 and around $100,000 under
Commercial Scenario 2.
7 Town of Windsor – Sales Tax FAQ, 2014.
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Figure 3.
Annual Sales Tax Revenue
Notes: (1) The General Fund receives 60% of the 3% sales tax rate.
(2) The Capital Improvement Fund (CIF) receives 40% of the 3% sales tax rate.
(3) The Community and Recreation Center Fund receives 100% of the 0.95% sales tax rate.
Source: Town of Windsor – Overview of Funds Structure; BBC Research & Consulting.
Auto Dealerships (parts sales only)
Fort Collins Dodge Chrysler Jeep Ram $2,517,756 $45,320 $30,213 $23,919 $99,451
Tynan's Nissan and Tynan's Kia $1,487,617 $26,777 $17,851 $14,132 $58,761
Total Auto Dealerships $4,005,373 $72,097 $48,064 $38,051 $158,212
Commercial Pad Development
Commerial Scenario 1
Retail 20,000 $250 $5,000,000 $90,000 $60,000 $47,500 $197,500
Office - - - - - - -
Total 20,000 $5,000,000 $90,000 $60,000 $47,500 $197,500
Commercial Scenario 2
Retail 10,000 $250 $2,500,000 $45,000 $30,000 $23,750 $98,750
Office 10,000 N/A N/A N/A N/A N/A N/A
Total 20,000 $2,500,000 $45,000 $30,000 $23,750 $98,750
Total Sales Tax Revenues
Auto Dealerships + Commercial Scenario 1 $9,005,373 $162,097 $108,064 $85,551 $355,712
Auto Dealerships + Commercial Scenario 2 $6,505,373 $117,097 $78,064 $61,801 $256,962
General Fund
Tax Collected (1)
Retail Sales /
Independent Calculation
Independent Calculation
Sq Ft Sq Ft Revenue Tax Collected (2) Tax Collected (3) Tax Collected
Total Sales CIF Rec Center Fund
Total
Windsor Sales
Sales Tax Source
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Construction material spending. For construction costs, BBC assumed market value costs of
$175 per square foot for auto dealership construction and $250 per square foot for commercial
retail/office construction. For all construction, cost related to materials is assumed to be 40
percent of the overall construction cost. Construction use tax within the Town is 3.95 percent.
Figure 4 below presents the development’s impact on funds that are supported by construction
use tax. Construction related to the auto dealerships is estimated to generate over $120,000 in
construction use tax. Commercial construction under both scenarios (constant construction cost
per square foot) would generate $40,000 in one-time construction use taxes. The Town would
collect over $160,000 in one-time construction use tax from the project.
Figure 4.
Construction Use Tax Revenue (One-Time)
Note: (1) The Capital Improvement Fund (CIF) receives 100% of the 3% use tax rate.
(2) The Community and Recreation Center Fund receives 100% of the 0.95% use tax rate.
Source: Town of Windsor—Overview of Funds Structure; BBC Research & Consulting.
Annual property tax. Real property taxes collected by the Town are based upon the assessed
value of the property, which is 29 percent of the actual value for commercial properties. BBC
projected future real property values by adding the material cost of the development (40 percent
of construction costs) to the existing real property values reported by the Larimer County
Assessor.8 The real property tax estimated for the auto dealerships is consistent with other
recently built auto dealerships in the area. In addition to real property tax, the auto dealerships
and commercial retailers will be taxed on personal property within their respective facilities,
also assessed at 29 percent of actual value. Fort Collins DCJR and Tynan’s provided BBC with
8 The 53 acre land parcel was recently purchased by the developer pursuing the auto dealership development. For the
purposes of this analysis, BBC used the 2015 Larimer County Assessor reported data.
Auto Dealerships
Fort Collins Dodge Chrysler Jeep Ram 40,000 $175 40% $42,000 $13,300 $55,300
Tynan's Nissan and Tynan's Kia 48,000 $175 40% $50,400 $15,960 $66,360
Total Auto Dealerships 88,000 $175 40% $92,400 $29,260 $121,660
Commercial Pad Development
Commercial Scenario 1
Retail 20,000 $250 40% $30,000 $9,500 $39,500
Office - - - - - -
Total 20,000 $30,000 $9,500 $39,500
Commercial Scenario 2
Retail 10,000 $250 40% $15,000 $4,750 $19,750
Office 10,000 $250 40% $15,000 $4,750 $19,750
Total 20,000 $30,000 $9,500 $39,500
Total Construction Use Tax
Auto Dealerships + Commercial Scenario 1 108,000 - - $122,400 $38,760 $161,160
Auto Dealerships + Commercial Scenario 2 108,000 - - $122,400 $38,760 $161,160
Total Building
Tax Collected (1)
Rec Center Fund
Tax Collected (2)
% Material CIF
Total
Windsor Use
Construction Description Sq Ft Cost / Sq Ft Cost Tax Collected
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personal property estimates. For commercial retail and office, BBC gathered personal property
data on properties throughout Larimer County that resemble the expected scenario
development. The Town mill levy is 12.03, which is applied to both real and personal property.
Figure 5 below presents the assessed value and tax revenues for real and personal property
under the different scenarios. The auto dealerships are estimated to generate over $40,000 in
annual property tax revenues, with pad development in either Commercial Scenario 1 or
Commercial Scenario 2 contributing an additional $8,000. Figure 6 compares existing property
tax revenue ($10,000) to the projected annual property tax amounts associated with the
development. The project is expected to increase property tax by $40,000 per year.
Figure 5.
Projected Annual Property Tax Revenue
Note: (1) Commercial assessed value is 29% of actual value.
Source: BBC Research & Consulting.
Figure 6.
Annual Property Tax Revenue Comparison—Current and Projected
Note: (1) Commercial assessed value is 29% of actual value.
Source: Larimer County Assessor; BBC Research & Consulting.
Other annual municipal revenues. BBC utilized the Town’s existing fiscal model to estimate
other recurring municipal revenues associated with site development and operation, as well
as municipal expenditures (see following page). These revenues include charges for services,
fines and forfeitures, licenses and permits, intergovernmental revenue and other
++
Commercial Commercial
Assessed Value (1)
Real Property $3,153,911 $3,733,911 $3,733,911
Personal Property $261,000 $304,500 $348,000
Annual Property Tax Collected
Real Property $37,942 $44,919 $44,919
Personal Property 3,140 3,663 4,186
Total Annual Property Tax Collected $41,081 $48,582 $49,105
Auto Dealerships Scenario 2
Auto Dealerships Auto Dealerships
Property Tax Description Scenario 1
Current Conditions $833,920 $10,032 -
Auto Dealerships + Commercial Scenario 1 $4,038,411 $48,582 $38,550
Auto Dealerships + Commercial Scenario 2 $4,081,911 $49,105 $39,073
Tax Revenue
Assessed Tax Revenue Increase Over Current
Property Tax Situation Value (1) (General Fund)
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miscellaneous tax revenues.9 The Town’s fiscal model derives the commercial component of
these additional revenues on a per full-time employee basis. The Town’s model assumes each
full-time employee will generate $208.36 in other municipal revenues. 10
The auto dealerships provided BBC with estimates for the number of full-time employees. For
number of full-time employees under various commercial development scenarios, BBC used
400 square feet per employee for commercial retail and 250 square feet per employee for
office space.11 Figure 7 shows the anticipated number of full-time employees on the
development under various situations and the corresponding annual municipal revenues
generated, which are not captured elsewhere in the revenue model.
The Town is expected to collect an additional $40,000 per year in General Fund revenues as a
result of the auto dealerships operational activity.12 The inclusion of commercial activity
increases the amount to roughly $55,000 per year under both commercial development
scenarios.
Figure 7.
Other Annual Municipal
Revenues
Note:
It is assumed that all other annual
municipal revenues support the Town of
Windsor General Fund.
Source:
Town of Windsor Fiscal Model Output;
BBC Research & Consulting.
Capital expansion fees. The Town assesses capital expansion fees on new construction.
Capital expansion fees are assessed for sewer plant investment, water plant investment, storm
drainage and road impacts. These fees are an important revenue source for Town capital
projects. Capital expansion fees assessed on the development will generate substantial
revenue for the Town, estimated to be between $830,000 and $840,000 depending on the pad
development use mix (retail vs. office). The auto dealerships are estimated to account for
roughly three-quarters of capital expansion fee revenues ($615,000). Figure 8 on the
following page presents the revenue generated from each capital expansion fee.
9 Only revenues not captured elsewhere in the model are included. See footnote 10 (below) for additional details.
10 In the Town’s fiscal model, employees are used as a proxy for the scale of a commercial operation, production of certain
municipal revenues and demand for municipal services. BBC excluded the following the following revenues from the annual
municipal revenues calculation, so not to double count revenues: building permits; planning fees; SAFEbuilt collection fees; and
traffic impact fees. These adjustments reduce the annual revenue per employee from $246.85 (default amount in Town’s fiscal
model) to $208.36 .
11 The square footage per employee values come from the Town of Windsor Fiscal Model default assumptions.
12 Other annual municipal revenues are assumed to support the Town of Windsor General Fund.
Development Scenario
Auto Dealerships Only 204 $42,505
Auto Dealerships + Commercial Scenario 1 254 $52,923
Auto Dealerships + Commercial Scenario 2 269 $56,049
Projected Number Town of Windsor
of Site FTE Municipal Revenues (1)
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Figure 8.
Capital Expansion Fees (One-Time)
Note: (1) Storm drainage fee is based upon the following equation:
New Growth Basin Impact Fee = (Impervious Rate Factor) X (New Growth Basin Impact Fee Factor) X (Area in sq ft)
Commercial Impervious Rate Factor = 0.95, New Growth Basin Impact Fee Factor = $0.1838 per sq ft.
Source: Town of Windsor Development Fee Schedule 2015; BBC Research & Consulting.
Permit fees. Town building inspections are completed by a private contractor.13 BBC consulted
the contractor to estimate building and electrical permit fees associated with the development.
The Town receives 25 percent of the administered building, electrical and plan review fees.
Figure 9 displays the estimated building, electrical and plan review fees, as well as the revenues
that would accrue to the Town.14 Permit fees paid by the auto dealerships are estimated to total
over $7,500, with total development permit fees expected to generate $11,000, conditional on
specific pad development characteristics.
13 The Town of Windsor contracts with SAFEbuilt for building permits.
14 BBC removed building, electrical and planning fees from the Other Annual Revenues calculation to ensure no double
counting of permit related revenues. SAFEbuilt collection fees were also removed from the Other Annual Revenues calculation.
Sewer Plant Investment Fee
Auto Dealership Meter Size - 1.5" $16,808 3 $50,424
Commercial Pad Development Meter Size - 1" $7,128 4 $28,512
Total 7 $78,936
Water Plant Investment Fee
Auto Dealership Meter Size - 1.5" $30,801 3 $92,403
Commercial Pad Development Meter Size - 1" $13,062 4 $52,248
Total 7 $144,651
Storm Drainage Fee (1)
Auto Dealership 30 Impervious Acres 1,306,800 $228,180
Commercial Pad Development 9.9 Impervious Acres 95% x 0.1838 x sq ft 431,244 $75,300
Total 39.9 Impervious Acres 1,738,044 $303,480
Road Impact Fee per 1,000 sq ft
Auto Dealership $2,760 88,000 $242,880
Commercial Scenario 1
General Retail $3,476 20,000 $69,520
Commercial Scenario 2
General Retail $3,476 10,000 $34,760
Office General $2,840 10,000 $28,400
Total Capital Expansion Fees
Auto Dealerships $613,887
Auto Dealerships + Commercial Scenario 1 $839,467
Auto Dealerships + Commercial Scenario 2 $833,107
Assumption
Capital Expansion Fee Type Detail or Sq Ft or Sq Ft Fee
Cost per Structure # of Structures Total
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Figure 9.
Permit Fee Revenue (One-Time)
Note: (1) Building permit fees are based upon the structure’s valuation. SAFEbuilt provided general
estimates, which BBC then adjusted based on anticipated valuation.
(2) Electrical permit fees are based upon the structure’s valuation and electrical requirements.
SAFEbuilt provided general estimates, which BBC then adjusted based on anticipated valuation.
Source: BBC Research & Consulting.
CAC special fees. As discussed above, the land parcel under consideration for development is
located in the Corridor Activity Center (CAC). Town of Windsor Ordinance No. 2012-1440
identifies CAC parcels and presents the total to be assessed on each. Figure 10 shows the original
CAC fee total for each parcel, the current total amount owed (3.05 percent annual inflation
applied—2012 original year) and the expected one-time payment due to the Town of Windsor;
the CAC fee will be completely repaid in seven years.
Figure 10.
CAC Special Fees (One-Time)
Note: (1) Adjusted for inflation at an annual rate of 3.05% as stated in the Town of Windsor Ordinance, original year was 2012. Totals represent
the net present value in 2015 dollars.
(2) Assumes repayment of special fees over seven year period. Actual payments are in quarterly installments. Annual payment total is the
net present value in 2015 dollars.
Source: Town of Windsor Ordinance NO. 2012-1440; BBC Research & Consulting.
Building Permit Fees (1)
Auto Dealership $13,022
Commercial Pad Development $6,543
Electrical Permit Fees (2)
Auto Dealership $8,970
Commercial Pad Development $2,760
Plan Review Fees
Auto Dealership $8,464
Commercial Pad Development $4,253
Total Permit Fees
Auto Dealerships $30,456
Auto Dealerships + Commercial Scenario 1 / Scenario 2 $44,012
Total Permit Fee Revenue Collected by Town (25% of Building, Electrical, Plan Review Fees)
Auto Dealerships $7,614
Auto Dealerships + Commercial Scenario 1 / Scenario 2 $11,003
Development Fee Type Detail Tax Collected
Assumption General Fund
65% of Building Permit Fee
Independent Calculation
Independent Calculation
Land Parcel
22.8 Acre Parcel (North) $189,847 $207,753 $29,679
30.0 Acre Parcel (South) $127,828 $139,885 $19,984
Total $317,675 $347,638 $49,663
Original Fee 2015 Fee 2015 Annual
Total Amount Total Amount (1) Payment Amount (2)
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Revenue Summary. Figure 11 presents a summary of annual municipal revenues under various
development scenarios. Each scenario anticipates the auto dealership and commercial
retail/office space development to contribute significantly to the Town of Windsor’s General
Fund, Capital Improvement Fund and Community and Recreation Center Fund. Under the most
conservative development scenario (auto dealership development only), the Town of Windsor is
estimated to collect over $240,000 in annual taxes, excluding the CAC fee. With commercial
retail/office space development, annual tax revenues are estimated to be between $360,000 and
$455,000.
Figure 11.
Annual Revenue Summary
Source: BBC Research & Consulting.
In addition to annual municipal revenues, the development would lead to significant one-time
payments to the Town. Figure 12 shows the contribution to various funds under the three
development scenarios, ranging from $740,000 to $1 million. The CAC total fee amount is
presented independently and would result in an additional $350,000, paid over seven years.
Figure 12.
One-Time Fiscal Revenue Summary
Note: (1) Adjusted for inflation at an annual rate of 3.05% as stated in the Town of Windsor Ordinance, original year was 2012. Totals represent
the net present value in 2015 dollars.
Source: BBC Research & Consulting.
Development Scenario
Auto Dealerships Only $155,684 $48,064 $38,051 $241,799
Auto Dealerships + Commercial Scenario 1 $263,602 $108,064 $85,551 $457,218
Auto Dealerships + Commercial Scenario 2 $222,251 $78,064 $61,801 $362,116
Annual
General Fund
Annual Town
of Windsor
Tax Collected Tax Collected
Annual CIF
Tax Collected
Annual Rec
Center Fund
Tax Collected
Development Scenario
Auto Dealerships Only $7,614 $335,280 $29,260 $371,007 $743,161
Auto Dealerships + Commercial Scenario 1 $11,003 $122,400 $38,760 $839,467 $1,011,630
Auto Dealerships + Commercial Scenario 2 $11,003 $122,400 $38,760 $833,107 $1,005,270
CAC Fee (1)
CAC Fee (Collected Over 7 Years) - - - - $347,638
General Fund CIF
Rec Center
Fund
Town of
Windsor
Tax Collected Tax Collected Tax Collected Tax Collected
Enterprise
Funds (1)
Tax Collected
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Municipal Expenditures
BBC coordinated with the Town of Windsor to utilize the Town’s existing fiscal model for
estimating municipal expenditures. Town expenditures related to the development are
forecasted on a full-time employee basis, meaning that the model distributes and estimates
Town expenditures based upon the number of employees expected to work at the site.
The Town of Windsor fiscal model assumes $658.58 of commercial related municipal
expenditure per full-time employee. Figure 13 presents projected full-time employees and the
estimated annual cost to the Town of Windsor under various scenarios.15
Municipal expenditure related only to the auto dealerships is estimated at around $135,000 per
year. The highest anticipated fiscal expenditure is roughly $175,000 per year, which includes an
additional 65 full-time employees, associated with commercial/office development.
Figure 13.
Annual Fiscal Expenditure
Summary
Source:
Town of Windsor Fiscal Model Output;
BBC Research & Consulting.
Summary of Fiscal Impact
BBC estimates that the auto dealerships and associated commercial retail/office space will
produce net fiscal benefits to the Town of Windsor under all development scenarios considered
for this analysis (Figure 14). The auto dealerships are expected to generate an annual net fiscal
benefit of over $105,000. Including the CAC fee, each development scenario is estimated to
generate at least $1.1 million in one-time tax and fee revenues for the Town of Windsor.
Figure 14.
Overall Fiscal Summary
Note: (1) CAC fee included in one-time taxes collected, however, this fee is expected to be paid over seven years.
Source: BBC Research & Consulting.
15 The Town of Windsor Fiscal Model also estimates the number of employees expected to reside within the Town (any
existing Windsor residents working at the auto dealerships would be excluded), which is then used to calculate the Town’s
increased residential expenditure. BBC has not incorporated the residential expenditure component of the Town’s model
because the revenue model does not quantify residential revenues (property tax, sales tax, fines and fees, etc.). Additionally,
given the close proximity of the auto dealerships’ current locations and the proposed site, it is unlikely that the auto
dealerships existing labor force would relocate to the Town of Windsor.
Development Scenario
Auto Dealerships Only 204 $134,350
Auto Dealerships + Commercial Scenario 1 254 $167,279
Auto Dealerships + Commercial Scenario 2 269 $177,158
Municipal Expenditures
Projected Number Town of Windsor
of Site FTE
Development Scenario
Auto Dealerships Only $241,799 $134,350 $107,449 $1,090,799
Auto Dealerships + Commercial Scenario 1 $457,218 $167,279 $289,938 $1,359,268
Auto Dealerships + Commercial Scenario 2 $362,116 $177,158 $184,958 $1,352,908
Revenues Expenditures Outcome Tax Collected (1)
Annual Municipal Annual Municipal Net Municipal One-Time
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Other public benefits. In addition to the model’s quantified fiscal revenue estimates, the
development of the auto dealerships and commercial retail/office space will generate secondary
benefits that will stimulate the local economy and lead to additional fiscal revenue sources. From
data provided by Fort Collins DCJR, customers travel throughout the western United States for
automotive purchases. With customers traveling from as far away as North Dakota, it is likely
that a portion of customers to the auto dealerships will spend a night within the Town of
Windsor, generating lodging and dining expenditures that result in taxable revenues. Even on a
local customer scale, customers visiting the dealerships are likely to frequent nearby retail and
dining (existing and/or future) while visiting the auto dealerships. Also, the employees working
at the auto dealerships, retailers or offices will stimulate the local economy through regular meal
purchases and retail shopping.
The Westgate Retail Center, located directly north of the proposed development, currently has
roughly 8,000 square feet of vacancy (40 percent of the entire property). Due to the increased
traffic volume associated with the auto dealerships, as well as the commercial space, it is likely
that the center will become a more attractive business location. One commercial real estate
broker stated that any non-competing development would be welcomed, as properties and
businesses located off of the Interchange are in need of increased traffic and patronage. Each
new business to the Town of Windsor represents additional tax revenue through sales, property
tax and permitting fees.
Lastly, a Fiat auto dealership will likely be constructed on the site, which is not expected to
impede the construction of commercial development. The 20,000 square foot Fiat auto
dealership would increase the annual net fiscal benefit to about $130,000 (auto dealerships
only), an increase of $25,000 per year. BBC also estimates the Fiat auto dealership would
generate around $165,000 in one-time tax and fee revenues.
We hope this analysis is useful in assessing the net fiscal consequences of the auto dealership
and commercial retail/office space development. Please feel free to contact us with any
questions.
Sincerely,
Adam D. Orens
Managing Director
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Amendments to Revenue Sharing Agreement – Economic Health Office Analysis
April 29, 2016
The Economic Health Office (“EHO”) was requested to prepare an initial assessment of the proposed
changes to the IGA between Windsor and Fort Collins with respect to development in the I-25/SH392
Corridor Activity Center (IGA), specifically the proposed changes to the revenue sharing portion. The
results of the initial assessment are summarized below:
Original Revenue Share Analysis – EHO staff prepared a summary memorandum used during
negotiations of the revenue sharing agreement that relied on an analysis prepared by BBC
Research & Consulting (“BBC”). The BBC analysis estimated annual revenues generated in the
area subject to the IGA would grow to $6.3 million at full development. Approximately 21
percent of these revenues would be generated on the west side of I-25 in the City of Fort Collins.
The remaining would be generated on the east side in the Town of Windsor. The agreed upon
revenue share agreement calls for each community to retain 65 percent of the eligible revenue
and share 35 percent. Simple math indicates that Fort Collins would gain more than it shares if
development met expectations used in the BBC model.
Rezoning of Retail Land to Residential – The rezoning of 45 acres of previously retail land to
residential for single family development will reduce the amount of sales tax generated for
revenue sharing. A specific amount was not estimated as part of the initial assessment;
however, the proposed 45 acres represents nine percent of the total acreage on the east side of
the interchange. This can act as a proxy for the magnitude of the potential impact.
Car Dealership Exclusion – Adding Car Dealerships as an allowed use and enabling their
development on 38 acres of land will also reduce the potential sales tax from the original
estimates. Car dealerships generate less sales tax revenue per square foot of development then
retail uses; only parts are subject to sales tax. In addition, Car Dealerships generate Use Tax
through the sale of vehicles; however, these revenues are always remitted to the place of
residence in Colorado and, therefore, will continue to flow to the City. Initial estimates suggest
that Car dealerships will generate between 75 and 80 percent less sales tax then retail uses on
the proposed sites.
Loss from Relocation of Car Dealerships – The City will not only loose some potential revenue
through the reduction of sales tax subject to the revenue sharing agreement with Windsor. The
City will also loose sales tax revenue if the dealerships relocate to Windsor and halt all
operations in Fort Collins. This revenue loss would likely be much larger than the loss of revenue
from excluding the Car Dealerships from the revenue sharing portion of the IGA. This of course
is a risk that exists regardless of the proposed changes to the IGA, as the dealers have not been
able to identify suitable sites to relocate or expand in the City of Fort Collins. At most, requiring
revenue sharing for the car dealerships will recover about a third of the lost revenue from
relocation.
The initial analysis completed by the EHO does not provide a complete estimate of the potential loss of
shared revenue from the proposed changes to the IGA. However, it does provide some useful insight
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into the potential impact. Clearly proposed changes, single family and car dealerships both exempt, will
result in less revenue generated for sharing. However, it’s unclear if these changes will fully erode the
benefit Fort Collins originally estimated to gain given the disparity in sales tax generation on the two
sides of I-25.
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1
I-25/SH 392 Intergovernmental Agreement Amendments
Tom Leeson, Community Development & Neighborhood Services Director
5-10-16
ATTACHMENT 7
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I-25/SH 392 IGAAmendments
2
November 7, 2015 Joint Work Session
• Amend IGA to allow Automobile
Dealerships and Single Family
• Add Definitions
• Enhance Design Standards
• Maintain Original Intent
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I-25/SH 392 IGAAmendments
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• Staff from Fort Collins and Windsor
worked on Enhanced Design
Standards
• Town of Windsor held public meetings
and Board work sessions
• Fort Collins received formal proposal
from Windsor on April 11, 2016
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I-25/SH 392 IGAAmendments
4
Town of Windsor Proposed Amendments
• Add “Single-Family Detached Residential”
and “Automobile Dealerships” to list of
permitted uses and definitions
• East of I-25 only – remain prohibited uses
west of I-25
• Limitations on additional permitted uses
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I-2392 IGAAmendments
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Town of Windsor Proposed Amendments
• Automobile Dealership Limitations
• 38 acres
• Northerly Moreland property
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Town of Windsor Proposed Amendments
• Automobile Dealership Limitations
• 38 acres
• Northerly Moreland property
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Town of Windsor Proposed Amendments
• Enhanced Design Standards:
• Site Design
• Landscaping
• Parking Lot Screening
• Buffer Yards
• Building Design
• Lighting
• Noise
• Outdoor Display
• Alternative Compliance
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I-25/SH 392 IGAAmendments
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Town of Windsor Proposed Amendments
• Enhanced Design Standards:
• IGA Sec. 3.3.1.b
• “…except that the Enhanced CAC Design Standards may be
modified by Town ordinance, adopted in accordance with the
Town’s Home Rule Charter, notice of which shall be presented to
the City no later than thirty (30) days prior to ordinance
introduction.”
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Attachment: Powerpoint presentation (4399 : I-25/SH 392 Corridor Activty Center IGA Amendments)
I-25/SH 392 IGAAmendments
9
Town of Windsor Proposed Amendments
• Modifications to Revenue Sharing
• No Revenue Sharing for Automobile Dealership
and Single-family Residential Uses
• BBC Study
• Revenue will not cover costs
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Attachment: Powerpoint presentation (4399 : I-25/SH 392 Corridor Activty Center IGA Amendments)
I-25/SH 392 IGAAmendments
10
Town of Windsor Proposed Amendments
• Transit Site Identification
• Condition annexation on landowner agreements to identify
(but not dedicate or reserve) a future transit site parallel to
that being identified on the Windsor side.
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Attachment: Powerpoint presentation (4399 : I-25/SH 392 Corridor Activty Center IGA Amendments)
I-25/SH 392 IGAAmendments
11
Specific Question to be Answered:
Does Council support the proposed amendments to the IGA between
Windsor and Fort Collins with respect to development in the I-25/SH392
Corridor Activity Center?
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Attachment: Powerpoint presentation (4399 : I-25/SH 392 Corridor Activty Center IGA Amendments)
DATE:
STAFF:
May 10, 2016
Kirsten Howard, PFA Senior Budget & Board
Coordinator
Tom DeMint, PFA Fire Chief
Ann Turnquist, PFA Director of Administrative Services
WORK SESSION ITEM
City Council
SUBJECT FOR DISCUSSION
Poudre Fire Authority Performance Update.
EXECUTIVE SUMMARY
The purpose of this item is to review 2015 performance measurements and metrics, goals, actual spending to
budget, benefits to the community related to strategic outcome goals, operational efficiency, productivity
improvements, and issues of concern to Poudre Fire Authority, the Poudre Valley Fire Protection District, and the
City.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Poudre Fire Authority will provide its 2015 annual report.
BACKGROUND / DISCUSSION
The 2014 Amended and Restated Intergovernmental Agreement (IGA), between the Poudre Valley Fire
Protection District (PVFPD) and the City of Fort Collins, establishing the Poudre Fire Authority (PFA) stipulates
that the Authority will provide an annual report regarding the activities and accomplishments of the Authority to the
City and District annually. Chief DeMint’s goal in providing this report is to reflect on the progress of continuous
improvement efforts and the ever increasing attention to evidence-based, data-driven decision making. This work
session represents the second annual report to City Council. The same report will be made to the PVFPD Board
in May to fulfill the reporting requirement of the IGA.
Report Highlights:
PFA became an internationally recognized accredited department through the Center for Public Safety
Excellence.
“Stories” from public education successes and a typical multi-family residential structure fire are
highlighted to illustrate community learning lessons.
The Government Finance Officers Association recognized PFA’s accounting practices through its
excellence award upon the first submission of PFA’s Comprehensive Annual Financial Report.
Improved total response time by nearly one minute to 7 minutes 47 seconds for first arriving unit to
emergent incidents in the urban area (from dispatch greeting to PFA arrival greeting) 90% of the time.
Through the accreditation process, call-processing times have been reduced by one minute compared to
the performance in 2014. In addition, PFA is continuing to use the accreditation process to strive for
response times that meet or exceed the PFA’s standard of 6:20 in the urban area.
PFA completed a new IGA with Timnath to begin construction of Station 8 (Timnath) providing a higher
level of service and improved response times in the Southeast portion of the PFA jurisdiction.
In the fifth of ten years of funding through the Keep Fort Collins Great program, PFA customers continue
to benefit from greater staffing levels, improved apparatus funding, and high priority public education
programs.
At the groundbreaking for new, fully staffed Station 8, volunteers were recognized for many years of
service to the community at volunteer Station 8. 2015 also saw significant program changes to the
volunteer program to emphasize emergency medical responses and wildland fire service rather than
structure fire responses.
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This annual report continues to reflect the major change in reporting since this annual report will be presented for
the second time in an electronic format. The purpose of the electronic presentation is to provide a transparent,
accessible summary of PFA’s role in the community, services provided, and performance over the past year. The
electronic annual report will be available on Monday, May 9, 2016, to City Council and the community on the web
at www.pfaannualreport.com. This report provides summary data, video clips, photographs, citizen testimonials
and “stories” that highlight significant calls from 2015. It also provides a link to the full written annual report for
community members who desire additional, more detailed information, and data about PFA. A major goal of the
electronic version of the report will be to reach a broader range of interested community members in a way that
will be appealing and accessible. The report will be promoted by PFA’s new Communication Manager, Madeline
Noblett, through a variety of social media outlets, such as Facebook and Twitter, and the PFA web page. An
additional two page summary of the annual report will be available for distribution through other outlets and as a
reference to City Council members and PFA/PVFPD Board members.
During this work session, PFA staff will review the online summary report with City Council and provide the
opportunity to discuss the overall performance of PFA in fulfilling its responsibilities under the IGA between the
City and the PVFPD.
ATTACHMENTS
1. PFA Annual Report (PDF)
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PFA SERVICE AREAS TYPES OF CALLS (%)
MEDICALS
GOOD INTENT
CALLS
FALSE ALARMS
SERVICE CALLS
HAZARDOUS
CONDITIONS
FIRES/
EXPLOSIONS
OTHER REQUESTS
FOR SERVICE
74%
11% 7%
4% 2% 2%
To protect life and property by being
prompt, skillful, and caring. Our actions
are anchored in the core values of
courage, leadership, and duty. Proudly
serving Fort Collins, Timnath, LaPorte,
Bellvue, Horsetooth, and Redstone
Canyon, Colorado.
LEADERSHIPDUTY
I/we will model, promote,
and inspire; lead by
example; and demon-
strate unconditional
positive respect.
I/we will act
courageously
for what is right.
COURAGE
I/we will respectfully
communicate, promote,
and accept the highest
moral action regardless
of outcome or risk to self.
TESTIMONIALS
“I want to thank the PFA and EMS
for such a rapid response this
morning. Back locked up so bad I
couldn't breathe from a few-years-old
deployment injury. Literally had to
carry me down the stairs. Keep up
the good work PFA. When it comes
to voting/funding PFA initiatives
locally, I know which way I'll be
casting my vote.”
STRYKER ZIDER
“A HUGE thank you to the
PFA Engine 3, B shift crew for
assisting in the birth of my
little man who decided to
come too quickly to make it to
the hospital. Our community is
very lucky to have such great
people serving it!”
JASMINE MARCHMAN
“Thank you so much for
your help when our house
BY THE NUMBERS
YEAR IN PHOTOS
BUDGET
WANT TO LEARN MORE?
CHECK OUT THE FULL 2015 ANNUAL REPORT
www.pfaannualreport.com
OPERATIONS $18.3M
SUPPORT $3M
ADMINISTRATION $2.4M
COMMUNITY SAFETY
SERVICES $2M
TOTAL CAPITAL
EXPENDITURES $1.4M
GRANTS AND NON-CAPITAL
SERVICES $277K
LEASE PURCHASE $234K
CITY & FIRE DISTRICT TAXES
$25.8M (INCLUDES KFCG FUNDING)
FEES AND CHARGES
FOR SERVICES $1.7M
CAPITAL FUND REVENUE
$1.4M
EARNINGS ON INVESTMENTS
$78K
GRANTS AND NON-CAPITAL
PROJECTS $67K
MISCELLANEOUS REVENUE
$53K
TOTAL
EXPENDITURES:
$27.6M
2015 BUDGET TO ACTUAL EXPENDITURES:
UNDERSPENT BY $728K (2.7%)
2015 RESERVES: $5.7M
(OR 20% OF THE BUDGET)
TOTAL
REVENUE:
$29.1M
FIREFIGHTERS: 171 RESPONSE TIME: FIRE DEATH & INJURY:
DEATHS
8% ARE WOMEN
CIVILIANS
FIREFIGHTERS
0
6 INJURIES PER 100,000
0 DEATHS
26 INJURIES
7:39
WE'VE GOTTEN FASTER BY A MINUTE!
90% OF THE TIME, WE’LL BE THERE IN
7 MIN, 39 SECONDS OR LESS.
NATIONAL STANDARD: 6:20 MINUTES
90% OF THE TIME.
2.1
DATE:
STAFF:
May 10, 2016
Tim McCollough, Light and Power Operations Manager
Kevin Gertig, Utilities Executive Director
Chris Parton, Asset Manager
WORK SESSION ITEM
City Council
SUBJECT FOR DISCUSSION
Light & Power Reliability Update.
EXECUTIVE SUMMARY
The purpose of this item is to provide an overview of the Utilities Light and Power Operations reliability
improvement efforts, opportunities, and accomplishments.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Staff is providing an update of current and future efforts and is requesting Council feedback.
BACKGROUND / DISCUSSION
Reliability Metrics
Electric service reliability is increasingly important to all types of electric customers. Electric service reliability is
useful in attracting new economic development and retaining existing industrial customers.
Reliability from the customer’s standpoint means good power quality (voltage and frequency) and few, if any,
interruptions of service and, when interruptions do occur, rapid restoration of service. The most commonly used
service reliability indices for electric distribution utilities end-use customers are identified by the following
acronyms:
SAIDI, or the System Average Interruption Duration Index, is the average number of minutes of
service interruption experienced on our electric distribution system per customer.
SAIFI, or the System Average Interruption Frequency Index, is the average number of sustained
(greater than one minute) service interruptions on our electric distribution system per customer.
CAIDI, or the Customer Average Interruption Duration Index, is the average length of a service
interruption for those customers who have experienced and outage.
MAIFI, or the Momentary Average Interruption Frequency, is the average number of momentary (less
than one minute) service interruptions experienced on our electric distribution system per customer.
It is important to note that reliability metrics are calculated and reported on a rolling twelve month basis each
quarter. A single outage will impact the reliability metrics for a full year after the event.
For many years, Fort Collins Utilities customers have enjoyed the high reliability of an underground electric
distribution system. Being nearly 100% underground, the electric distribution system is not exposed to many of
the leading industry causes of electric outages such as ice, wind, lightning, vegetation growth and squirrels. But
the system is not without exposure. The distribution system is exposed to ground water, corrosion, humans with
excavation equipment, and other forces of entropy that can cause equipment to fail and service to be interrupted.
Table 1 gives a summary of current reliability metrics, some of the industry benchmarks, and Fort Collins Utilities
goals.
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Table 1: Fort Collins Utilities Reliability Statistics
Metric APPA 2013
Regional
Average
2015
Energy
Policy Goal
Community
Dashboard
Goal
Fort Collins
Utilities Data
Q1 2016
System Average Interruption
Duration Index (SAIDI)
53.05 n/a 22.05 20.60
System Average Interruption
Frequency Index (SAIFI)
1.02 0.66 n/a 0.36
Customer Average Interruption
Duration Index (CAIDI)
78.69 45 n/a 56
Momentary Average Interruption
Frequency Index (MAIFI)
2.51 0.35 n/a 0.01
SAIDI
This reliability update will focus only on SAIDI metric. As a point of reference the average annual value of SAIDI
among 89 public power utilities responding to a 2013 American Public Power Association reliability survey from
across the United States was approximately 70 minutes. The quarter of the worst reliability in the past 5 years is
approximately twice as good as the APPA reported national average.
Service interruptions happen more frequently between March and October during the peak load season driven by
higher electric demand, higher consumption, and other environmental factors such as heat and construction
activities that add stress to the system. Figure 1 shows a two year quarterly trend of the SAIDI metric. Note that
there was a step increase in SAIDI number in Q4 2014 and again in Q3 2015.
Figure 1: Fort Collins Utilities System Average Interruption Duration Index - Annual Basis
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SAIDI by Quarter
To show the impact of individual outages more clearly, it is useful to calculate SAIDI for a shorter time period.
Figure 2 is a chart of the quarterly SAIDI data calculated for that quarter rather than the industry standard of a 12-
month period. Figure 2 shows the underlying pattern of reliability and the primary drivers of the Q4 2014 and Q3
2015 step increases in the annual SAIDI number.
Q4 2014 was the worst performing quarter for reliability in the past five years. A single notable outage event in
November of 2014 accounted for 75% of SAIDI minutes in the fourth quarter and also affected the metric in the
first three following quarters of 2015. The root cause of that outage is well understood by staff and corrective
actions are in place to prevent any future occurrence of an outage related to this root cause.
The most recent quarter, Q3 2015, was the second worst performing quarter in the past five years for customer
outage minutes. Although there were multiple events in that quarter that caused customer outage minutes, three
of the outages are all related to a single type of cable that failed and account for more than 70% of the SAIDI
minutes.
Figure 2: Fort Collins Utilities System Average Interruption Duration Index - Quarterly Basis with Notable
Events and Avoided Minutes
Asset Inventory and Condition Assessment
Two of the most valuable and critical components in the system are underground cable and transformers, both of
which have finite lives. Age, unfortunately, is not the only predictor of failures. Many other factors contribute to
the failure mechanisms the system can experience. Some of the other factors include high component utilization
leading to thermal failures, environmental conditions creating corrosion or compromising the electrical insulation
of cable, manufacturing defects, and human damage.
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Every time an outage is experienced or an asset is identified that is a risk to the reliability of the system, the root
cause mechanisms are studied in the Standards Engineering Laboratory. This data helps identify the risks to the
reliability of the system.
In order to more accurately predict where failures may occur, a focused effort began in 2015 to complete a full
asset inventory and condition assessment of the electric distribution system. There are approximately 12,235
points of inspection identified and more than 1,919 miles of underground cable included in this inspection effort.
One of the existing lineworker crews began the task in early 2015 of visiting every inspection point of the system
to gather the asset information and collect condition assessment data. This project was expected to take five
years to complete.
In October 2015, additional crews were added to accelerate the condition assessment effort and the project
prioritized to collect data on the highest risk and highest impact assets first. The condition assessment on the
portion of the system that poses the highest risk is already complete and the remaining inspections will be
complete by the end of 2017.
The condition assessment uses multiple inspection techniques and tools, including:
Visual inspection: Identifies component corrosion or environmental hazards
Infrared Thermography: Identifies thermal heating indicative of pending failures
Advanced Metering Infrastructure: Voltage alarms from the meters identify bad electrical connectors
that are degraded or other transformer related issues.
Avoided Outage Minutes
A co-benefit of the asset inventory and condition assessment is that crews have an opportunity to inspect the
system and have subsequently identified several components that were pending immediate failure. When these
components are identified, immediate action is taken to replace them. This preventative maintenance avoids an
unplanned outage and has direct positive impact on reliability. A metric was created to describe avoided outage
minutes related to these maintenance activities. Figure 3 displays the annual SAIDI reliability metric and includes
the contribution of the notable events from Q4 2014 and Q3 2015 and also the impact that the avoided outage
minutes would have had on the reliability of the system. In 2015 staff estimates that SAIDI reliability performance
has improved by 18% from what could have been experienced had the maintenance not been performed.
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Figure 3: Fort Collins Utilities System Average Interruption Duration Index - Annual Basis with Notable
Events and Avoided Minutes
Asset Management Plan Process Map
The asset management program uses the asset inventory and condition assessment data and the failure data
from the Standards Engineering Laboratory to develop dynamic risk registers for each asset in the distribution
system. This risk register prioritizes replacement of existing infrastructure based on the impact to the customer if
the asset experiences a failure. This risk register also identifies different management and inspection strategies
based on the type of asset and its importance to system operation. These management strategies are
documented in asset management plans which, in turn, drive capital investment in an attempt to manage risk in
the distribution system and ensure a high level of reliability to customers.
Finally, these capital improvements require adequate funding at the appropriate time. These funding needs are
identified in the Utilities Strategic Financial Plan.
Capital Improvement Plan for Asset Management
The capital improvement plan for the Light & Power Enterprise Fund consists of three types of capital
improvements:
Improvements to serve new growth in the service territory
Improvements related to the annexation of infrastructure owned by other electric service providers
Improvements to existing infrastructure that will improve reliability for existing customers.
A fourth potential category of capital project is improvements related to the adoption of the Climate Action Plan
(CAP). It is uncertain how capital projects related to CAP will affect the enterprise.
Projects that are the result of asset management analysis will generally fall under the third category mentioned
above, improvements to existing infrastructure. As the distribution system continues to age and staff identifies
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reliability risks factors in the system, these projects will grow in number. It is imperative that these projects be
identified, funded, and constructed in a timely manner to ensure a high level of service to Light & Power
customers is maintained.
Table 2 gives a summary of the Capital Improvement Plan looking forward ten years. System renewal accounts
for approximately 25% of anticipated capital dollars.
Table 2: Light & Power Capital Improvement Plan
Category 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
New Capacity $4.7 $3.6 $1.0 $1.8 $3.0 $7.6 $13.4 $3.3
Annexations $0.1 $3.0 $3.0 $3.0 $3.0 $3.0
System Renewal $2.3 $2.3 $2.4 $2.4 $2.4 $2.2 $1.7 $1.7 $1.6 $1.4
In Millions
ATTACHMENTS
1. Powerpoint presentation (PDF)
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1
Light & Power Reliability Update
ATTACHMENT 1
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Attachment: Powerpoint presentation (4295 : Light & Power Reliability Update)
Outline
• Reliability Metrics
• Asset Inventory and Condition Assessment
• Asset Management Plan
• Capital Improvements for Asset Management
• Questions
2
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3
System
Average
Interruption
Duration
Index
Number of Minutes
Number of Customers
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SAIDI
4
0
5
10
15
20
25
30
35
40
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016
Number of Minutes
SAIDI Annual SAIDI Annual: Goal
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SAIDI by Quarter
5
0
2
4
6
8
10
12
14
16
18
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016
Number of Minutes
SAIDI Quarterly SAIDI Quarterly: Goal
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SAIDI by Quarter
6
0
2
4
6
8
10
12
14
16
18
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016
Number of Minutes
SAIDI Quarterly: Adjusted SAIDI Quarterly: Notable Events SAIDI Quarterly: Goal
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Asset Condition Assessment
7
Age not the
only factor
Inspections
AMI Data
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Asset Condition Assessment
8
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SAIDI with Notable & Avoided
9
9.7 10.9
9.6 9.3 10.1
11.5
13.5 14.7
15.1 13.9
10.9 11.7
12.1
12.1 12.1
21.9
9.7
10.9
2.0
2.0
4.4
8.1
0
5
10
15
20
25
30
35
40
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016
Number of Minutes
SAIDI Annual: Adjusted SAIDI Annual: Notable Events SAIDI Annual: Avoided SAIDI Annual: Goal
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Asset Management Planning
11
Asset Data Collection
Dynamic Risk Register
Asset Management Plans
Capital Improvement Plans
Strategic Financial Plans
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Attachment: Powerpoint presentation (4295 : Light & Power Reliability Update)
Capital Improvement Plan
Light & Power
Capital
Improvement Plan
New Capacity Annexations System Renewal
Asset
Management
Plans
12
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Capital Improvement Plan
13
$0
$2
$4
$6
$8
$10
$12
$14
$16
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Future
Years
Capital Spend Millions
New Capacity Annexations System Renewal Operational Tech Average Capital
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14
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15
Exceptional
Service
Electric
Reliability
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Questions
1. What additional information does Council need?
16
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was struck by lightning.
Your response was fast,
kind, and thorough. We so
appreciated being able to
trust you all to take care of
us – it was really reassuring
in this chaotic situation.”
THE MOTLEY FAMILY
“We would like to express our
most sincere gratitude for your
service and dedication. Both our
tenants and us were blown away by
the swift response and all the support
we received. Thank you for the work
you do and for everything you risk to
keep us safe.”
STEPHANIE AND CHRISTOPHER COX
POUDRE FIRE AUTHORITY
2015
ANNUAL
REPORT
85% INSIDE CITY LIMITS
CALLS
19,100
RECEIVED THE
MOST CALLS
DOWNTOWN
52 CALLS A DAY
MISSION
0.2%
ATTACHMENT 1
2.1