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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/19/2019 - ITEMS RELATING TO THE INTERGOVERNMENTAL AGREEMENTSAgenda Item 18 Item # 18 Page 1 AGENDA ITEM SUMMARY February 19, 2019 City Council STAFF Jerrod Kinsman, Police Lieutenant Erik Martin, Police Financial Analyst II Ryan Malarky, Legal SUBJECT Items Relating to the Intergovernmental Agreements (IGAs) Concerning the Police Regional Training Campus. EXECUTIVE SUMMARY A. Resolution 2019-028 Authorizing the Execution of an Intergovernmental Agreement Between the City and the City of Loveland for the Construction, Ownership, Operation, Maintenance, and Management of a Regional Training Campus. B. Resolution 2019-029 Authorizing the Execution of an Intergovernmental Agreement Between the City and the City of Loveland for the Use of Certain Real Property at the Northern Colorado Regional Airport for a Regional Training Campus. The purpose of this item is to consider two resolutions related to the Police Regional Training Campus joint venture with the City of Loveland. STAFF RECOMMENDATION Staff recommends adoption of the Resolutions. BACKGROUND / DISCUSSION Police Regional Training Campus In 2014, the City of Fort Collins and City of Loveland held a joint Council session to discuss the possibility of a police training facility (Training Campus) to be shared between the two agencies and to act as a regional resource for our neighbors. The Training Campus would be located on a portion of the Northern Colorado Regional Airport. There were needs and benefits identified to provide a better facility for training of both agencies. Some of the benefits identified were: • Ensure a highly trained, efficient world class operation • Develop a center that allows for current and future growth • Ability to train together with multiple jurisdictions (many high-profile incidents are multi-jurisdictional) • Provide members of law enforcement, fire, government, and private entities a venue for training • Fulfill Colorado Peace Officer Standards and Training (POST) training requirements In 2017, Fort Collins and Loveland City Councils entered into an IGA that jointly approved design work to begin on the facility. There were some assumptions made as part of the partnership: Facility was to be jointly owned and operated and costs are split 50/50; Loveland will take the lead on contracts for design and construction administration with Fort Collins reimbursing Loveland for its share of the costs. The second IGA (presented for Council’s consideration here) will address construction, ownership, operation, maintenance, and management Agenda Item 18 Item # 18 Page 2 of the facility. Operations agreements will be resolved before the construction bid process. The third IGA (also presented for Council consideration here) will establish an agreement between the Cities to use a certain portion of Airport real property for the Training Campus to comply with a Federal Aviation Administration requirement. Staff at the two Cities have been working with the design firm SEH to design a facility that meets the scope, budget, and building requirements for both organizations. Based on updated requirements from the Airport and surveys of the land, adjustments have been made to the design to stay within the project budget and the scoped needs of both agencies. The facility is set to include: • 50-yard, 21 lane indoor pistol range • 6,000 sq. ft. administration space, including - 2 classrooms and office space • Driving skid pad • 1.4-mile driving pursuit/speed track • Room to add on and grow in the future, including - Street grid and tactical village, 100-yard range, shoot house, EVOC maintenance facility and fuel station, ATV and off-road driving course. Police Regional Training Campus IGA-Resolution 2019-028 Staff is proposing Fort Collins and Loveland enter into an IGA for the construction, ownership, operation, maintenance and management of the Training Campus. The IGA establishes the facility will be designed and constructed using the construction manager at risk delivery (CMAR) delivery method, in which Loveland will contract with a construction manager to provide input during the design phase on estimating, scheduling, constructability, and budget. The intent is the parties will develop a guaranteed maximum price for the construction of the facility, and subject to the parties’ mutual agreement, the construction manager would continue to be prime contractor on the project. Loveland will be primarily responsible for contracting and procurement matters arising from the design and construction of the facility. Under the IGA, the Cities would agree that the total cost of the Training Campus will not exceed $18.5 million, and each City will be responsible for appropriating one half of that amount ($9.25 million). Upon execution of the CMAR contract, Fort Collins will pay Loveland $1.5 million to ensure Loveland remains cash positive during the term of the CMAR contract. Also, after execution of the CMAR contract, project staff from both Cities will produce a payment schedule tied to project milestones, which will establish a timeline for when Loveland will invoice Fort Collins for its 50% share of construction costs. The intent is that Loveland will have sufficient funds on hand, contributed equally by both Cities, to meet all payment requirements for the project. Loveland will hold payments from Fort Collins in a designated account, and any interest earned on said funds will be for the benefit of the project. The facility will be designed to meet the highest LEED certification practical for the administration and classroom buildings, rather than the entire site, as approved by City Council in Resolution 2018-124. The remainder of the facility will be designed to include as many green building practices as will provide, in the Cities’ reasonable discretion, a good return on investment, but without any requirement for LEED certification for the entire site. Management of the facility will be vested in the Cities’ respective Chiefs of Police, with day-to-day operations matters assigned to a Training Campus Manager, who will be a Loveland employee. The overall operation of the facility will be guided by an Operation Plan, which will be created by the Chiefs or their designees and appropriate Cities’ staff. The Operation Plan will be reviewed and revised as necessary on an annual basis, at the same time the Cities consider future budget requirements, usage scheduling, updating rates for third- parties to use the facility, and similar matters. Each City will make an annual contribution of one half of the annual operating costs of the facility, less any budgeted revenues from the facility. Loveland will act as the fiscal agent for the Training Campus, and it will keep a Dedicated Fund for benefit of the Training Campus. The Dedicated Fund will be split into two separate funds: one for capital improvement expenses, and the other for annual expenses like administration, operation Agenda Item 18 Item # 18 Page 3 and maintenance. The Dedicated Fund will be owned equally by both Cities, but Loveland, as the fiscal agent, will hold it in trust for Fort Collins. The Cities’ staff intend for the Training Campus to be rented to other law enforcement agencies in the region for training purposes. Revenue from such rentals will be kept in the Dedicated Fund, and that revenue will be used to offset the following years’ annual operating costs. Land Lease IGA-Resolution 2019-029 Staff is proposing that Fort Collins and Loveland also enter into an IGA regarding the use of a portion of the Airport property for the Training Campus. In 2015, the Federal Aviation Administration (FAA) released a portion of the Airport property from the requirement that it be used for aeronautical purposes, and also released it from the conditions, reservations, and restrictions identified in certain federal grant agreements applicable to the Airport. The FAA released the property by executing an Instrument of Release from Aeronautical Use, which includes the requirement that Fort Collins and Loveland lease the released property at fair market value with the proceeds to be reinvested into the maintenance and operation of the Airport. The Cities intend to use the released property for the Training Campus, which they will jointly own and operate. Because the Cities both jointly own the Airport property, rather than lease the released property to themselves for the Training Campus, staff from both the Cities have negotiated and are seeking approval to execute an IGA that will govern the use the released property for the Training Campus in accordance with the requirements of the FAA Instrument of Release. The IGA establishes a fair market value rental rate, of which each City will contribute fifty percent (50%) to the Airport. The Cities worked with the Airport Director in determining the appropriate fair market value rental rate. The revenue from the rental rate will be dedicated to the maintenance and operation of the Airport, in accordance with the FAA Instrument of Release. Representatives from the FAA have reviewed the IGA and stated it is compliant with FAA requirements. ATTACHMENTS 1. Powerpoint presentation (PDF) 02-19-2019 Approving IGAs for Police Regional Training Campus Jerrod Kinsman, Lieutenant & Erik Martin, Police Services Financial Analyst ATTACHMENT 1 Overview • Enter into two Intergovernmental Agreements (IGA) with City of Loveland: • Police Regional Training Campus IGA • Airport Land Use IGA 2 Construction & Operations IGA • IGA governs construction, ownership, operation, maintenance and management of the facility • Loveland is lead on construction, contracting and project management • LEED certification & energy efficiencies for class rooms and office space • Fort Collins is managing LEED Certification and Energy Efficiencies • Facility Management - Shared operational decision authority by both Chiefs • Chiefs develop annual Operation Plan and budget – feeds each City’s budget process • Cities will share 50/50 O&M cost less net of rental revenue and money not spent from the prior year • Loveland provides administrative services support at a 50/50 shared cost– (finance, HR, facilities, legal, etc.) • Capital Renewal included in both City’s annual budget • Both police agencies will have equal access to the facility • Payments to Loveland during construction: • Loveland will invoice Fort Collins $1.5M once the contract is in place for the CMaR • Loveland will invoice Fort Collins for 50% of the construction cost at specific schedule milestones • Both Cities agree that Loveland shall have sufficient funds on hand to meet project payment requirements 3 Both Cities remain committed to staying within budget and creating a world class facility Construction & Operations IGA • Project Energy Efficiencies • Project team is committed to certify the Admin/Classroom building to the highest LEED Standard practical. This building will incorporate Solar PV to maximize the LEED credits for renewable energy. • Firing Range and remaining site will be designed and constructed to include many green building principles with a good return on investment. • Overall design and operation of facility will have target energy efficiency standards • Grants will be pursued to enhance track and skid pad above base design 4 Both Cities remain committed to staying within budget and creating a world class energy efficient facility Land Use IGA • Federal Aviation Administration released portion of Airport property from grant requirements • Both cities agreed to use this property for the Police Training Facility • The release required Fort Collins and Loveland to lease the property at fair market value • Both cities are entering into the IGA for the use of the released property as a joint training facility • IGA establishes fair market value rental rate for a 50 year term • Each city will contribute 50% of rental rate to the Airport 5 44 Acre Site Resolutions and Ordinances • Resolution 2019-028 – Police Regional Training Campus IGA • Construction, Ownership, Operation, Maintenance and Management of Training Facility • Resolution 2019-029 – Land Use IGA • Agreement to use part of Airport property for Training Facility 6 7 Questions and Comments 8 Appendix Key Upcoming Dates • February 5 COP Ordinance first reading • February 19 COP Ordinance second reading • February 19 Appropriation and IGA first readings • February 22 Preliminary Official Statement posted to Internet • March 5 Appropriation second reading • March 6 Marketing and Pricing of COPs • March 19 Closing and delivery of proceeds • End of March First Payment to Loveland – subject to construction progress • April First of Three Payments to CDOT 9 Police Training Facility Project Information • Total Cost $18.5M • $9.25M from City of Fort Collins • $1.08M Appropriated 2017 • $9.25M from City of Loveland • Estimated completion date of early 2021 and will include: • 50 yard, 21 lane indoor pistol range • 6,000 Sq. Ft. Admin Space including • 2 Classrooms • Office Space • Driving Skid Pad • 1.4 mile driving pursuit/speed track Borrow $8.2M for Fort Collins Share of Facility 10 FC Payments to Airport 2020 $177,339 + CIP increase 2019 $177,339 Proposed IGA amount 2018 $242,500 2017 $260,000 2016 $177,500 2015 $177,500 2014 $177,500 11 Econ Health Offer 41.10 BFO Offer 41.10 Northern Colorado Regional Airport Operational Support Funding this offer provides $177,500 in ongoing support for the operations of the Northern Colorado Regional Airport (FNL). The Airport's mission is to provide a safe and efficient air transportation facility to the general public and aviation community by providing airport facilities that meet Federal Aviation Administration (FAA) safety standards and to implement a plan that ensures the efficient development of the airport to meet the needs of the Fort Collins and Loveland communities. Ongoing maintenance and operation of the airport to the federal regulatory standards as required for being a commercially certified airport includes: finance and administration, airport operations, security, airfield maintenance, regulatory compliance, safety, security, planning, construction management, environmental, legislative affairs, marketing and communications, and air service development. In 2017, the annual operating budget for the airport totaled $2,592,332 and was funded from airport-generated revenues ($672,730), contributions from the cities of Fort Collins and Loveland ($520,000), and State and Federal grants ($1,055,556). Historically, the City of Fort Collins' required contribution (50% of the local match) has been $85,000 and funded from General Fund ongoing revenue. Between 2013 and 2018, an additional $92,500 was funded from General Fund reserves. The increase was necessitated by the change in air service and the resulting decrease in federal funding of operations and capital/maintenance projects. 12 Campus Capacity Segment Assumptions • Increased segment availability • 4 segments of 4 hours/day • 7 days/week • 48 weeks/year • 80% availability • Majority of excess capacity due to track and skid pad Total Segments 2021 2022 2023 2024 2025 Track 1,075 1,075 1,075 1,075 1,075 Skid Pad 1,075 1,075 1,075 1,075 1,075 Ranges (1) 1,075 1,075 1,075 1,075 1,075 Classroom (2) 2,150 2,150 2,150 2,150 2,150 Total Segments 5,376 5,376 5,376 5,376 5,376 Segments Consumed by FC/Loveland Track 89 92 94 97 99 Skid Pad 89 92 94 97 99 Ranges (1) 369 373 377 381 386 Classroom (2) 621 630 639 648 658 Total Segments 1,168 1,186 1,204 1,222 1,242 Percentage of Segments Used In-house Track 8% 9% 9% 9% 9% Skid Pad 8% 9% 9% 9% 9% Ranges (1) 34% 35% 35% 35% 36% Classroom (2) 29% 29% 30% 30% 31% Total Segments 22% 22% 22% 23% 23% 13 Facility Revenue & Cost Facility Cost Assumptions • Rental Revenue based on avg. $325/segment • No FRCC Academy revenue • 2 Dedicated FTEs • Loveland provides administrative support • Capital Renewal for Future maintenance • Before savings, additional $200k of O&M per city Training Facility Operating Costs ($ 000's) 2020 2021 2022 2023 2024 Revenue Class Charge to Outside User $ - $ 24 $ 49 $ 50 $ 52 Rental Revenue - 54 111 114 118 Total Revenue $ - $ 78 $ 160 $ 165 $ 170 Expenses Personnel 29 151 155 160 165 Admin/Classroom - 35 36 37 38 ShootingRange - 135 139 143 147 Driving Track/ Pad and Parking lot - - 50 50 50 Insurance /Admin Charge/WFO - 97 116 120 123 Capital Renewal - 61 63 65 66 Total Expense $ 29 $ 479 $ 560 $ 575 $ 591 Training Facility Income/(Loss) $ (29) $ (401) $ (400) $ (410) $ (421) 14 -1- RESOLUTION 2019-028 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE EXECUTION OF AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY AND THE CITY OF LOVELAND FOR THE CONSTRUCTION, OWNERSHIP, OPERATION, MAINTENANCE AND MANAGEMENT OF A REGIONAL TRAINING CAMPUS WHEREAS, in October 2017, the City and the City of Loveland (collectively, the “Cities”) entered into an intergovernmental agreement (the “Initial IGA”) for the sharing of costs for the design and construction administration of a jointly-owned police regional training campus (the “Training Campus”) to be constructed at the Northern Colorado Regional Airport in Loveland; and WHEREAS, it is the Cities’ intent that that the Training Campus will be a centralized public safety training facility for use by both Cities’ police employees and by law enforcement agencies serving the northern Colorado community; and WHEREAS, it is the Cities’ intent that the Training Campus be owned, designed, constructed, operated, maintained and managed equally be the Cities, with other agencies paying the Cities for their use of the facilities; and WHEREAS, since the execution of the Initial IGA, the Cities have worked collaboratively together and are in the final stages of completing the design and development components outlined in the Initial IGA; and WHEREAS, the Cities’ staffs have proposed an Intergovernmental Agreement, attached as Exhibit “A” and incorporated by reference (the “IGA”), which memorializes the terms for the construction, ownership, operation, maintenance and management of the Training Campus; and WHEREAS, the IGA establishes the total cost of the design and construction of the Training Campus in an amount not to exceed $18,518,782.00, and that each City will be responsible for an equal share of that cost, or $9,259,391.00; and WHEREAS, after the Training Campus becomes operational, the Cities will share administration, operations and maintenance costs equally, in accordance with an annual operating budget to be established by the Cities’ respective Chiefs of Police; and WHEREAS, in addition to each City using the facility for their own training needs, the Cities anticipate renting access to the Training Campus to other law enforcement agencies with the revenue from said rentals dedicated to offsetting the costs of administering, operating and maintaining the facility; and WHEREAS, the City Council has determined that it is in the best interests of the City and beneficial to the northern Colorado region at large that the Mayor be authorized to execute the IGA between the City and the City of Loveland. -2- NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals above. Section 2. That the Mayor is hereby authorized to enter into the IGA, in substantially the form attached hereto as Exhibit “A,” together with such additional terms and conditions as the City Manager, in consultation with the City Attorney, determines to be necessary and appropriate to protect the interests of the City or to effectuate the purposes of this Resolution. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 19th day of February, A.D. 2019. _________________________________ Mayor ATTEST: _____________________________ City Clerk 1 INTERGOVERNMENTAL AGREEMENT FOR THE CONSTRUCTION, OWNERSHIP, OPERATION, MAINTENANCE, AND MANAGEMENT OF THE REGIONAL TRAINING CAMPUS THIS INTERGOVERNMENTAL AGREEMENT FOR THE CONSTRUCTION, OWNERSHIP, OPERATION, MAINTENANCE, AND MANAGEMENT OF THE REGIONAL TRAINING CAMPUS (the “Agreement”) is made and entered into this ____ day of ______________, 2019, between THE CITY OF LOVELAND, COLORADO, a municipal corporation, hereafter “Loveland,” and THE CITY OF FORT COLLINS, COLORADO, a municipal corporation, hereafter “Fort Collins,” and hereinafter each referred to as a “City” and collectively referred to as "Cities". W I T N E S S E T H: WHEREAS, the Cities are each home-rule municipalities that maintain police departments to provide law enforcement services to their respective citizens and employ police employees who participate in ongoing training regarding projectile weapons and vehicle use in order to maintain and improve the skills necessary to perform police functions; and WHEREAS, currently each of the Cities’ police employees conduct projectile weapons training and vehicle/driver training separately and combining such training at one facility will create cost efficiencies for both police departments; and WHEREAS, Loveland considers it a priority to effectively operate a public safety training campus that will better meet the needs of the Loveland Police Department and the northern Colorado community as a whole; and WHEREAS, Fort Collins agrees that a centralized public safety training campus for use by law enforcement agencies serving the northern Colorado community would benefit the citizens of Fort Collins and, therefore desires to partner with Loveland in the construction and administration of a public safety training campus; and WHEREAS, it is the Cities’ intent that the public safety training campus would serve as a regional training facility for several other governmental agencies in and around Colorado’s Northern Front Range, including the Larimer County Sheriff, the Weld County Sheriff, the Greeley Police Department, the Windsor Police Department, the Colorado State University Police Department, and others; and WHEREAS, the Cities jointly-own real property on which the Cities operate the Northern Colorado Regional Airport. The Cities intend to utilize an available portion of such real property for the construction and eventual operation of a police regional training campus; and WHEREAS, pursuant to Section 29-1-203 of the Colorado Revised Statutes, the Cities are authorized by law to contract with one another to provide for the joint exercise of any function, service or facility lawfully authorized to each of the Cities if such contracts are approved by their governing 2 bodies; and WHEREAS, on October 23, 2017, the Cities executed an Intergovernmental Agreement For The Sharing Of The Cost Of The Preliminary Design, Design Development, Construction Drawings, And Construction Administration Relating To The Construction Of A Regional Training Campus, which established the preliminary cost, design, and planning requirements of the Cities (the “Initial IGA”); and WHEREAS, the Cities’ intent of this Agreement is that the training campus will be owned, designed, constructed, operated, maintained, and managed equally by the Cities, with other agencies paying the Cities for their use of the facilities; and WHEREAS, since the execution of the Initial IGA, the Cities have worked collaboratively together and are in the final stages of completing the design and development components outlined in the Initial IGA; and WHEREAS, the Cities desire that the training campus be constructed utilizing the Construction Manager at Risk (“CMAR”) delivery method which entails a commitment by a Construction Manager, as designated by the Cities, to complete construction of the campus within a guaranteed maximum price and a firm completion date; and WHEREAS, the Cities seek, by this Agreement, to memorialize the terms on which they have agreed, in a collaborative manner, to engage in the construction, ownership, operation, maintenance, and management of the campus, with the intent that their collaborative undertaking shall continue for many years to come and include subsequent amendments to this Agreement and the adoption on an Operation Plan approved by each City’s Chief of Police or his or her designee. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS, IT IS AGREED by and between the parties hereto as follows: 1. Mutual Undertaking. The Cities agree that the construction, ownership, operation, maintenance, and management of the regional training campus ("Training Campus") will be a mutual undertaking between the Cities, with each City equally sharing in the authority and obligations associated with or arising from construction, ownership, operation, maintenance and management of the Training Campus, unless specifically stated otherwise in this Agreement. 2. Training Campus Real Property Agreement. The Cities agree that it shall be their joint responsibility to negotiate and execute an agreement for the use of the real property underlying the Training Campus consistent with the scope and purpose of this Agreement, and said use agreement shall be approved by the Cities’ respective governing bodies. 3. Construction of the Training Campus. Loveland shall engage a vendor through a competitive sealed proposal process, pursuant to Loveland’s municipal code and Loveland’s administrative procurement regulations, to construct the Training 3 Campus, utilizing the Construction Manager at Risk (“CMAR”) delivery method, subject to the approval of Fort Collins. Fort Collins shall participate equally in the vendor selection process. The Cities agree that the Training Campus shall, at a minimum, contain a driving track, a firearms range, a skills pad, and adequate classroom space as detailed in the design document, attached hereto as Exhibit A. Loveland shall be the party issuing the agreement to the selected CMAR and agreements to other contractors necessary to complete the project. The Training Campus shall be constructed in accordance with the requirements of the Loveland Municipal Code. The Cities agree that Loveland shall be the sole signatory for purchasing, consulting, and other contracts necessary to complete the construction of the Training Campus as contemplated by the Cities. Loveland must provide Fort Collins an opportunity to review and comment on all such agreements, and Loveland must receive written approval from Fort Collins prior to executing any such agreements. Loveland shall provide Fort Collins the opportunity to review and approve any change order in excess of ten thousand dollars ($10,000) and any invoice, pay application or billing from any contractor prior to approving and issuing any such change order or payment to a contractor. Fort Collins shall have seventy-two (72) hours from receipt of a change order, invoice, pay application or billing to consent or object, and Fort Collins’ failure to timely respond shall be considered consent. a. Cost. Loveland and Fort Collins mutually agree that the total cost of the Training Campus shall not exceed $18,518,782.00 dollars and that each City shall be responsible for appropriating an equal share of the cost ($9,259,391.00). Fort Collins agrees to submit proof of appropriation to Loveland mentioned in the immediately preceding sentence as soon as practicable upon the appropriation being authorized by the Fort Collins City Council. Proof may be in the form of an executed ordinance or other legal instrument which demonstrates an authorization to expend the Fort Collins equal share on the Training Campus. b. Payments. Loveland shall invoice Fort Collins for Fort Collins’ fifty percent (50%) share of CMAR and construction costs in accordance with a mutually agreeable payment schedule (the “Payment Schedule”). The Cities shall produce the aforementioned Payment Schedule within thirty (30) days of the execution of the CMAR contract, which Payment Schedule is subject to change based on changes to the project schedule and milestones as mutually agreed by the Parties. Upon execution of the CMAR contract, Loveland will invoice Fort Collins and Fort Collins shall remit $1,500,000.00 to Loveland within thirty (30) days of receipt of the invoice to ensure Loveland remains in a positive cash position throughout the term of the CMAR contract; provided however, in no event shall Fort Collins be required to remit the $1,500,000.00 until after Fort Collins receives the proceeds from its financing for this project. Thereafter, Loveland shall invoice Fort Collins for fifty percent (50%) of each project milestone at least sixty (60) days before the anticipated milestone date in accordance with the Payment Schedule as may be revised from time to time by the Parties. Fort Collins shall pay amounts owed to Loveland within thirty (30) days of receipt of said invoices. The Cities agree that it is their mutual intent that Loveland have sufficient funds 4 on hand, contributed equally by the Cities, to meet all payment requirements for the project. Loveland shall keep payments received from Fort Collins in a designated account, and any interest earned on said fund shall remain in said account for the benefit of the Training Campus. c. Sustainability Requirements. i. LEED Certification. The Cities agree that the administration and classroom building portion of the Training Campus shall be designed, constructed, and certified to the highest LEED certification practical. The cost of attaining that standard and certification shall be shared equally by both Cities, because each recognize the significant efficiencies that will reduce future operational and maintenance costs for the Training Campus. ii. Photovoltaic System. Both Cities agree to include in the design and construction of the Training Campus a solar photovoltaic (“PV”) system and infrastructure required for a PV system, which PV system to have an estimated return on investment of ten (10) years or less and an expected life of twenty-five (25) years or more. The PV system must be sufficiently sized to achieve the renewable energy credits necessary to meet the highest LEED certification practical. iii. Energy Efficiencies. The remaining portions of the Training Campus not identified in subsection (i) above shall be designed and constructed to include as many green building principles as will provide a reasonably good return on investment, including but not limited to, high efficiency mechanical and electrical systems, but without any requirement for LEED certification of the entire Training Campus site. Loveland will provide the Training Campus with non-carbon tariff rate electricity to offset any renewable energy deficiency remaining from the LEED standard achieved to make the Training Campus a noncarbon electrical facility. Loveland shall use a regularly accepted methodology to calculate the non-carbon tariff rate electricity needed to close the aforementioned deficiency. d. Americans with Disabilities. The Training Campus shall be designed and construction to comply with all federal, state and local laws, including the requirements of the Americans with Disabilities Act (“ADA”). e. Construction Grants. Any grants received by the Cities for the benefit of the construction of the Training Campus, shall be utilized toward making facility improvements by awarding bid alternates in the contract documents or any other improvements agreed to by both Cities. Any grants received shall not be included in the total not-to-exceed amount specified in Subsection (a) of this Section 3. 4. Joint Training Campus Operation and Maintenance. The operation and maintenance of the Training Campus is a joint venture between the Cities, with full management and policy-making authority vested equally in both Cities. “Policy Issues” shall 5 include, but shall not be limited to, participation in federal and state grant agreements, construction of capital projects, and approval of the annual contributions to the Training Campus Dedicated Funds (defined below in Section 10). Policy Issues shall require the approval of each City’s City Councils. 5. Facility Management. Management of the Training Campus shall be vested in each City’s Chief of Police or his or her designee. The Chiefs of Police shall be responsible for approving an Operation Plan that will serve as the principal document by which the Training Campus will be utilized and maintained by the Cities. The Operation Plan shall reflect that each City shall have an opportunity for equal access to the Training Campus to meet, at a minimum, each City’s basic training needs. The annual schedule for use of the Training Campus by the Cities and by third parties shall be determined by mutual agreement of the Chiefs of Police or their designees and set forth in the Operation Plan; provided, however, the Campus Manager shall have certain authority with respect to adjustment of the annual schedule for the Cities and third parties as providing in Section 9(c) herein. The Operation Plan will also address the use of the Training Campus by third parties including proposed fees for such use, and the manner in which each City may provide Administrative Services (defined below in Section 7) to benefit the Training Campus. In addition, the Operation Plan may include rules and regulations concerning the use of the Training Campus. The Chiefs of Police are responsible for the governance of the Training Campus related to any issue that is not considered to be a Policy Issue as defined in Section 4 above, which shall include approval of all third-party use agreements for the Training Campus and final determination of any scheduling disputes arising from actions taken by the Campus Manager. In the event of a dispute between the Chiefs of Police that cannot be settled in good faith, the Cities agree that the dispute will be directed to the City Managers for discussion and decision. If the Cities fail to resolve disputes via the City Managers, the Cities may utilize, subject to mutual agreement, the dispute resolution process identified in Section 17(b) of this Agreement. If the Cities have failed to resolve disputes via Section 17(b) or have not mutually agreed to utilize Section 17(b), the Cities may utilize Section 17(c) or Section 18 of this Agreement. 6. Minimum Annual Planning Meeting. The Chiefs of Police and other appropriate staff shall meet a minimum of once per year in April to discuss any amendments to the Operation Plan; budgetary requirements for future budget years; scheduling usage of the Training Campus; the review of rates, fees, and charges; and other pertinent matters as may be necessary and appropriate for the continued operation and maintenance of the Training Campus. 7. Administrative Services. Loveland shall provide “Administrative Services” for the Training Campus, which shall include appropriate costs for services allocated by Loveland’s Finance, Human Resources, Risk Management, Facilities Management, Information Technology, City Attorney, postage and other similar administrative services. After the Training Campus is open and operational, each City shall be responsible for fifty percent (50%) of the costs of the Administrative 6 Services. Loveland shall identify the costs for Administrative Services as a separate line item within the Operations Fund (defined below in Section 10). Loveland shall place its and Fort Collins’ payments for Administrative Services into the Operations Fund, and Loveland shall be entitled to draw from the Operations Fund to pay the costs of the Administrative Services. The administrative charge shall be calculated in the same manner as charges made by the providing Loveland to its own governmental enterprise funds. 8. Employee Status. All employees of each City who perform any services in relation to the Training Campus and this Agreement shall remain the employees solely of the City which employed them to perform such services and not of the other City. 9. Training Campus Manager, Appointment, and Duties. The Loveland Chief of Police shall appoint a Training Campus Manager subject to the regulations and policies of Loveland, after consulting with and obtaining prior written consent of the Fort Collins Chief of Police. The Campus Manager shall be an employee of the City of Loveland solely dedicated to the Training Campus. The Campus Manager shall: a. Propose an Operation Plan to the Chiefs of Police for their consideration and approval as soon as practicable; and b. Subject to and consistent with the direction of the Chiefs of Police, manage the operations of the Training Campus, in accordance with the Operation Plan, in a safe and efficient manner and maintain the grounds, structures and equipment in a clean, orderly, safe and operational condition in conformity with all applicable federal, state and local laws, rules and regulations and other legal requirements; and c. Manage such operations in a manner which is compatible with the interests of the Cities, including monitoring the annual training schedule established in the Operation Plan and, in the event changes to the schedule are necessary to account for unforeseen circumstances or training needs, adjusting said schedule while ensuring each City maintains an opportunity for equal access to the Training Campus; and d. Perform all duties normally associated with sound, safe, innovative, prudent and efficient management practices for a law enforcement training facility and provide for all services as are customary and usual to such an operation, including, but not limited to, the following: i. Maintenance and Repair Services. Maintain and repair the Training Campus (structurally and otherwise) in a good and skillful manner more particularly described to include: 7 1. All equipment and facility features including, but not limited to, the driving track, firearm range, skills pad, and classrooms; 2. All vehicles, machinery and tools used in the operation, maintenance or repair of the Training Campus; 3. All Training Campus grounds including, without limitation, fences, parking lots, grass cutting, and removing or topping trees and shrubs where and when necessary; and 4. All Training Campus buildings and structures, including, without limitation, plumbing, electrical, sprinkler, heating and air conditioning systems, apparatus and other equipment; and 5. All components of the Art in Public Places as per requirements of City of Loveland program. 6. All other maintenance obligations as set forth in the adopted Operation Plan. The Campus Manager may recommend the disposition of obsolete or surplus property to Chiefs of Police consistent with Loveland’s purchasing ordinances, regulations or rules. Any proceeds from the sale of such surplus property shall be deposited into the Operations Fund and shared equally by the Parties. ii. Support Functions. In a manner consistent with sound law enforcement training facility operating and safety practices, perform or cause to be performed: 1. Operation of the firearms range for the benefit of the Cities and other third-party users thereof; and 2. Operation of the driving track and skills pad for the benefit of the Cities and other third-party users thereof; and 3. Operation of the classrooms and other appurtenant facilities for the benefit of the Cities and other third-party users thereof; and 4. Coordinate with Loveland’s Accounting Department to ensure timely and accurate collection, remittance, and reporting of all fees and revenue collected from third-parties that use the Training Campus; and 5. Expeditious removal of snow and ice from all ways designed for pedestrian or vehicular use; and 8 6. Security of the Training Campus; and 7. All other support functions as set forth in the adopted Operation Plan. iii. Negotiations with Third Parties. In connection with the solicitation of proposals for procurement and the negotiation of such Training Campus use agreements with third parties as may be necessary or desirable for the proper and financially prudent operation of the Training Campus in accordance with federal, state and local laws, rules and regulations and any grant agreements or related assurances, perform the following: 1. Administer and monitor all agreements with third parties and ensure full and complete compliance with the terms and conditions contained in such agreements, and endeavor to see that such agreements are carried out in a manner which is consistent with the Operating Plan. 2. Subject to direction from the Chiefs of Police and in conformance with Loveland’s procurement requirements and the Operation Plan, procure such services, equipment, materials, and supplies as may be necessary for the proper operation and marketing of the Training Campus. The Campus Manager may only procure services, equipment, materials and supplies that do not exceed $10,000, and no procurement shall be divided so as to avoid the maximum dollar amount. Each City shall review and approve all procurements and associated agreements and change orders exceeding $10,000. iv. Training Campus Budget. Timely prepare the Training Campus Annual Operating Budget to submit said budget to the Chiefs of Police at the April planning meeting pursuant to Section 6 of this Agreement, and then timely submit the annual request for the Training Campus budget contributions through both Cities' regular budget processes for approval. The Annual Operating Budget shall itemize all anticipated revenues and operating expenses and shall support such items of revenue and expense with records and documents. 1. Prepare an Annual Operation Update for submission to the Chiefs of Police which shall include, but not be limited to: a maintenance and repair schedule; a schedule of proposed Training Campus fees for third-party users; a list of all contracts and agreements to be negotiated, renegotiated or renewed; recommendations, if any, for revisions of the Operation Plan; recommendations, if any, for non-capital equipment; a five-year projection of anticipated revenues and expenses based on a 9 comparison with the previous fiscal year, if applicable, and prepared with reference to other relevant data; a schedule of proposed staffing levels of full-time, part-time and seasonal employees, and any other factors which may affect Training Campus operation and management. v. Capital Replacement Plan. Prepare and submit to the Chiefs of Police a written five-year Capital Replacement Plan in conjunction with the annual planning meeting beginning in 2020, and every five (5) years thereafter or as otherwise directed by the Chiefs of Police. 10. Dedicated Fund. The City of Loveland is acting as the fiscal agent for the Training Campus and shall keep a fund for the benefit of the Training Campus (the “Dedicated Fund”). The Dedicated Fund shall consist of two separate and independent categories of funds: 1) a lapsing capital fund (“Capital Fund”); and 2) a lapsing fund for the annual expenses for Administrative Services, operation, and maintenance (“Operations Fund”). On an annual basis, when the budget and annual contributions from each of the Cities are calculated, any remaining fund balance in the Operations Fund will be applied to offset the annual contributions from each City to the Operations Fund. On a monthly basis, Loveland shall provide a record of the revenues, expenses, and account balances for the Capital Fund and the Operations Fund. The Dedicated Fund shall be equally owned by both Cities but will be held in trust by Loveland acting as the fiscal agent. The Dedicated Fund shall be subject to annual appropriation by the governing bodies of each City. However, Loveland shall treat the Capital Fund as though it were a non-lapsing fund to the maximum extent possible under the Loveland municipal code. Loveland staff shall submit to its City Council the funds contained in the Capital Fund for annual re-appropriation during its annual budget process. 11. Training Campus Revenue. The Cities shall adopt rates, fees, and charges for third- party use of the Training Campus in accordance with each City’s charter and ordinances. All revenue generated by the Training Campus received shall be deposited into the Operations Fund and shared equally by the Cities. 12. Grants. Any and all grants received by a City in connection with the Training Campus shall be shared equally by the Cities and deposited in the appropriate Dedicated Fund for purposes that are mutually agreed between the Cities. 13. Training Campus Expenses: The net annual operating costs (“Net Annual Operating Costs”) for the operation and maintenance of the Training Campus will be funded by the Operations Fund and shared equally on a 50% basis for each City. The Net Annual Operating Costs shall be calculated by subtracting the budgeted annual fees, charges and other revenue from the budgeted annual operating costs. On December 15 th each year, Loveland shall invoice Fort Collins for fifty percent (50%) of the budgeted Net Annual Operating Costs to be paid by Fort Collins to Loveland within thirty (30) days of issuance. By September 1 st of each year, the 10 Cities shall identify any shortfall in the then current annual Operations Fund and seek supplemental budget and appropriation of an equal share of the additional funds necessary to satisfy the Net Annual Operating Costs from their respective City Councils. a. Expendable supplies, including, ammunition, shooting targets, and fuel shall not be included in the Operations Fund and will either be supplied by the individual Cities or shall be captured in the cost to third party users of the Training Campus. 14. Initial IGA Excess Funds. The Cities agree that any and all excess funds remaining from Phase 1 of the Training Campus project will be rolled over to support completion of the design and construction of the Training Campus project. The Cities, by execution of this Agreement approve the continuation of the Training Campus project pursuant to Section 4 of the Initial IGA, of which the Cities acknowledge receipt thereof. 15. Construction Excess Funds: The Cities agree that any excess funds remaining after the completion of the design and construction of the Training Campus will be returned to the Cities equally. 16. Status as Governmental Entities. The parties are governmental entities; therefore, all direct and indirect financial obligations of each party under this Agreement shall be subject to annual appropriations pursuant to Article X, Section 20 of the Colorado Constitution, the parties' respective charters and ordinances, and applicable law. This Agreement and the obligations of the parties hereunder do not constitute a multi-year fiscal obligation and are expressly contingent upon the parties' respective governing bodies budgeting and appropriating the funds necessary to fulfill the parties' respective obligations. If a party does not appropriate funds sufficient to meet its obligations under this Agreement, such non- appropriation will constitute a termination by such party, effective on January 1 of the party’s fiscal year for which the funds are not appropriated regardless of any notice period required under this Agreement. The non-appropriating party shall give written notice of such non-appropriation of funds to the other party not later than thirty (30) days after the non-appropriating governing body approves its annual appropriations ordinance for any calendar year for which the ordinance does not include funding to meets its financial obligations for the ensuing fiscal year. Such termination shall be subject to the provisions of Section 18(b) below. 17. Dispute Resolution. a. Informal Resolution. Should Loveland or Fort Collins not agree on any matter arising out of or related to this Agreement or the ownership, use, expansion, remodel, operation or other matter pertaining to the Training Campus, the Cities shall use best efforts to meet and seek to resolve their disagreement informally through discussions between the Police Chiefs. If the Police Chiefs cannot 11 resolve the dispute, the parties shall bring the dispute to the City Managers for discussion and decision. b. Mediator or Arbitrator Selection. In the event Loveland or Fort Collins mutually agree to binding or nonbinding arbitration or mediation, Loveland and Fort Collins shall each select an arbitrator or mediator. The arbitrators and mediators selected by each City shall then select a single arbitrator or mediator to hear and decide the dispute. Costs of any arbitration or mediator shall be shared equally by the Cities. c. Formal Resolution. Should Loveland or Fort Collins, despite best efforts, be unable to reach agreement, either City may seek to have the dispute resolved by a court of competent jurisdiction. 18. Termination. If, after the Cities are unable to reach a resolution pursuant to Section 17 of this Agreement through informal resolution, arbitration, or mediation, then if either City fails to perform its obligations under the terms of this Agreement, the non- defaulting City may provide the defaulting City with written notice of the nature and extent of the default. If the default remains uncorrected after thirty (30) days from the date the notice is received, then the non-defaulting City may elect to bring an action for specific performance, or to pursue any other remedies provided for in this Agreement, or remedies available at law or equity. a. If the parties fail to reach agreement upon any decision which must be reached by mutual agreement under this Agreement, either party may terminate this Agreement upon not less than thirty (30) days written notice to the other party. Each party will equally share and be obligated to pay any financial costs related to this Agreement that have incurred up to the date of termination. b. Upon termination, the non-defaulting City, or the City not seeking termination under the immediately preceding Section 18(a) of the Agreement, (“Purchasing City”) possesses a right of first refusal to acquire the other City’s interest in the Training Campus. The Purchasing City shall pay an amount not to exceed $9,259,391.00 dollars for the other City’s interest in the Training Campus. The Purchasing City may select an appraiser who shall provide an appraisal to both Cities using industry standard methodology for valuing a one-half interest in the Training Campus, without considering anticipated revenues or the land upon which the Training Campus is constructed. The Purchasing City may then acquire the other City’s interest by payment to the other City of the amount determined by Purchasing City’s appraiser (not to exceed $9,259,391.00 dollars). The Purchasing City will also possess an option to pay the aforementioned determined appraised value over a three (3) year period in equal installments. i. Should the Purchasing City decline the right of first refusal, the other City may only sell its interest in the Training Campus to a political subdivision of the state of Colorado, a city, or a town, which also manages a law 12 enforcement agency in Larimer County or Weld County subject to the approval of the City retaining an interest in the Training Campus, which shall not be unreasonably withheld. The purchase price may then be negotiated between the City seeking to sell its interest and the interested third party political subdivision of the state of Colorado, city, or town, which also manages a law enforcement agency in Larimer County or Weld County, Colorado. Any such qualifying entity acquiring an interest in the Training Campus shall be bound to this Agreement, and any, then existing amendments, and such qualifying entity shall be substituted in place of the City no longer retaining an interest in the Training Campus. Alternatively, at the Purchasing City’s sole discretion, the qualifying entity and the Purchasing City may negotiate new terms upon the qualifying entity acquiring an interest in the Training Campus. ii. Under no circumstances shall either City be permitted to sell, sublease, transfer or otherwise assign any interest other than a one-half interest in the Training Campus. 19. Notices. Any notice, request, demand, consent, or approval, or other communication required or permitted hereunder, shall be in writing and shall be deemed to have been given when personally delivered, faxed, emailed, or deposited in the United States mail with proper postage and addressed as follows: If to Loveland: Chief of Police City Manager Loveland Police Department with a copy to: Loveland City Attorney 810 E. 10 th Street City of Loveland Loveland, CO 80537 500 E. 3 rd Street Loveland, CO 80537 If to Fort Collins: Chief of Police City Manager Fort Collins Police Services with a copy to: Fort Collins City Attorney 2221 S. Timberline Road City of Fort Collins Fort Collins, Colorado 80525 300 LaPorte Avenue P.O. Box 580 Fort Collins, CO 80522 20. Relationship of Parties, Non-liability of Individuals, Benefit, No Assignment. The parties enter into this Agreement as separate, independent governmental entities and maintain such status throughout. No officer, agent or employee of either party shall be charged personally or held contractually liable by or to the other party under any term or provision of this Agreement or of any supplement, modification or amendment 13 to this Agreement because of any breach thereof, or because of his, her or their execution or attempted execution of the same. This Agreement is made for the sole and exclusive benefit of the Cities, their successors and assigns, and is not made for the benefit of any third party. The parties covenant and agree that they will not assign this Agreement, any interest or part thereof or any right or privilege pertinent thereto, without written consent of the other party first having been obtained. 21. Liability. Each party shall be responsible for any and all claims, damages, liability and court awards including costs, expenses and attorney fees incurred as a result of any action or omission of such party or its respective officers, employees and agents in connection with such party’s performance of this Agreement. Notwithstanding anything in this Agreement to the contrary, nothing herein shall be construed as a waiver of the notice requirements, defenses, immunities, and limitations of liability the parties and their respective officers, directors, councilors, employees, volunteers, and agents may have under the Colorado Governmental Immunity Act, C.R.S. §§ 24- 10-101, et seq., or to any other defenses, immunities, or limitations of liability available to the parties by law. 22. Insurance. Loveland will require that any vendor selected related to the construction, maintenance, or operation of the Training Campus shall maintain adequate general liability insurance, automotive insurance, workers’ compensation insurance, builder’s risk insurance, and any other coverage as the Cities may jointly require of the vendor. Said insurance coverage shall name the City of Fort Collins as an additional insured. Upon construction of the Training Campus being completed, Loveland shall maintain adequate insurance coverage to protect the Cities’ joint interest in the Training Campus. All insurance premiums and insurance payments related to the Training Campus shall be considered Administrative Services pursuant to Paragraph 7 and Paragraph 10 of this Agreement requiring each City to pay one half the cost of all Administrative Services. The Cities agree to deposit any excess insurance payments received by the Cities’ insurer, if any into the Operations Fund and shared equally by the Parties. 23. Entire Agreement/Ambiguities. This Agreement embodies the entire agreement of the parties. The parties shall not be bound by or be liable for any statement, representation, promise, inducement or understanding of any kind or nature not set forth herein. No changes, amendments or modifications of any of the terms or conditions of this Agreement shall be valid unless reduced to writing and executed by both parties. In the event of any ambiguity in any of the terms of this Agreement, it shall not be construed for or against any party hereto on the basis that such party did or did not author the same. 24. Applicable Law, Severability. The laws of the State of Colorado shall be applied in the interpretation, execution and enforcement of this Agreement, and venue for any action arising hereunder shall be Larimer County, Colorado. Any provision rendered null and void by operation of law shall not invalidate the remainder of this Agreement to the extent that this Agreement is capable of execution. 14 25. No Third Party Beneficiaries. This Agreement is made for the sole and exclusive benefit of the parties hereto and shall not be construed to be an agreement for the benefit of any third party or parties and no third party shall have a right of action hereunder for any cause whatsoever. 26. Counterpart Signatures. The parties agree that counterpart signatures of this Agreement shall be acceptable and that execution of the Agreement in the same form by each and every party shall be deemed to constitute full and final execution of the Agreement. IN WITNESS HEREOF, this Intergovernmental Agreement has been executed that day and year first above written. [signature pages follow] THE CITY OF LOVELAND, COLORADO A Municipal Corporation ATTEST: By: __________________________ ______________________ Stephen C. Adams, City Manager City Clerk APPROVED AS TO FORM: ___________________________ Loveland City Attorney THE CITY OF FORT COLLINS, COLORADO A Municipal Corporation ATTEST: ______________________ By: _____________________________ City Clerk Mayor ______________________ Printed name APPROVED AS TO FORM: Assistant City Attorney ___________________________ Printed name -1- RESOLUTION 2019-029 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE EXECUTION OF AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY AND THE CITY OF LOVELAND FOR THE USE OF CERTAIN REAL PROPERTY AT THE NORTHERN COLORADO REGIONAL AIRPORT FOR A REGIONAL TRAINING CAMPUS WHEREAS, in 2015, the City and the City of Loveland (collectively, the “Cities”) entered into an intergovernmental agreement that has been amended from time to time (the “Airport IGA”), whereby the Cities agreed, in part, to the joint operation of Northern Colorado Regional Airport (the “Airport”); and WHEREAS, pursuant to the Airport IGA, the Airport is operated jointly by the Cities, with each City retaining a 50% ownership interest, sharing equally in policy-making and management, and each assuming responsibility for 50% of the Airport’s capital and operating costs; and WHEREAS, the City and the City of Loveland are currently designing and intend to construct a jointly-owned police regional training campus (the “Training Campus”) to be constructed at the Airport in Loveland; and WHEREAS, the Cities intend to utilize an available portion of Airport real property for the construction and operation of the Training Campus; and WHEREAS, the United States of America, acting through the Federal Aviation Administration, released certain Airport real property from the requirement that it be used for aeronautical development purposes under certain grant agreements by an Instrument of Release from Aeronautical Use, dated July 28, 2015 (the “FAA Release”); and WHEREAS, the Cities agreed in the FAA Release to lease the released property in accordance with the FAA Release and other FAA requirements, including leasing the released property at fair market value and ensuring the proceeds are reinvested back into the maintenance and operation of the Airport; and WHEREAS, the Cities jointly own the Airport real property and will use the released property for the Training Campus; and WHEREAS, since 2013, the Cities have each contributed a minimum of $177,500 per year to the Airport operating fund to cover the expense of operating and maintaining the Airport as a public asset; and WHEREAS, the Cities desire to treat the annual $177,500 equal contribution to the Airport as a fair market value rental rate for purposes of the requirement of the FAA Release with the intent that amount will be reinvested into the maintenance and operation of the Airport; and -2- WHEREAS, the annual $177,500 equal contribution results in a total rental rate of approximately $0.18 per square foot per year; and WHEREAS, the Cities, in consultation with the Director of the Airport, have determined that the rental rate of $0.18 per square foot for the Training Campus, subject to an annual escalator, is an appropriate fair market value rental rate, equivalent to the rental rate for other portions of the Airport property; and WHEREAS, the Cities’ staffs have proposed an Intergovernmental Agreement, attached as Exhibit “A” and incorporated by reference (the “Lease IGA”), which will act as the lease for FAA purposes; and WHEREAS, the Lease IGA is a for a term of fifty (50) years beginning upon the date last signed; and WHEREAS, the Lease IGA sets the rental rate of $0.18 per square foot for an annual cost of $174,880.08, subject to an annual rent escalator tied to the Consumer Price Index, which shall be paid to the Airport in equal quarterly payments; and WHEREAS, the Cities have obtained approval from the FAA of the IGA as a means of contractually arranging for use of the released property to comply with the express language of the FAA Release; and WHEREAS, the City Council has determined that it is in the best interests of the City that the City agree to the Lease IGA to allow the Cities to construct the Training Campus at the Airport, and that the Mayor be authorized to execute the Lease IGA between the City and the City of Loveland. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals above. Section 2. That the Mayor is hereby authorized to enter into the Lease IGA, in substantially the form attached hereto as Exhibit “A,” together with such additional terms and conditions as the City Manager, in consultation with the City Attorney, determines to be necessary and appropriate to protect the interests of the City or to effectuate the purposes of this Resolution. -3- Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 19th day of February, A.D. 2019. _________________________________ Mayor ATTEST: _____________________________ City Clerk 1 INTERGOVERNMENTAL AGREEMENT FOR THE USE OF CERTAIN REAL PROPERTY AT THE NORTHERN COLORADO REGIONAL AIRPORT FOR A REGIONAL TRAINING CAMPUS THIS INTERGOVERNMENTAL AGREEMENT FOR THE USE OF CERTAIN REAL PROPERTY AT THE NORTHERN COLORADO REGIONAL AIRPORT FOR A REGIONAL POLICE TRAINING CAMPUS (the “Agreement”) is made and entered into this ___ day of _____________, 2019, between THE CITY OF LOVELAND, COLORADO, a municipal corporation (“Loveland”) and THE CITY OF FORT COLLINS, COLORADO, a municipal corporation (“Fort Collins”) (each referred to as a “City and collectively referred to as “Cities”). WITNESSETH: WHEREAS, the Cities entered into an Amended and Restated Intergovernmental Agreement for the Joint Operation of the Airport, dated January 22, 2015, as amended by the First Amendment thereto dated June 7, 2016 (the “First Amendment”) (the Amended and Restated Intergovernmental Agreement and the First Amendment are collectively the “Airport IGA”), whereby the Cities agreed, in part, to the joint operation of the Northern Colorado Regional Airport (the “Airport”); and WHEREAS, pursuant to the Airport IGA, the Airport is operated jointly by the Cities, with each City retaining a 50% ownership interest, sharing equally in policy-making and management, and each assuming responsibility for 50% of the Airport’s capital and operating costs; and WHEREAS, since 2013, the Cities have each contributed a minimum of $177,500 per year to the Airport operating fund to cover the expense of operating and maintaining the Airport as a public asset; and WHEREAS, the Cities each maintain police departments that provide law enforcement services to their respective citizens and employ police employees who participate in ongoing training regarding projectile weapons and vehicle use to maintain and improve skills necessary to perform their police functions; and WHEREAS, the Cities intend to construct a jointly-owned training facility where each City’s police employees can conduct projectile weapons training and vehicle/driver training (the “Training Campus”); and WHEREAS, it is the Cities’ intent that the Training Campus will serve as a regional training facility for several other governmental agencies in and around Colorado’s Northern Front Range, including the Larimer County Sheriff, the Weld County Sheriff, the Greeley Police Department, the Windsor Police Department, the Colorado State University Police Department, and others; and 2 WHEREAS, pursuant to Section 29-1-203 of Colorado Revised Statutes, the Cities are authorized by law to contract with one another to provide for the joint exercise of any function, service, or facility lawfully authorized to each of the Cities if such contracts are approved by their governing bodies; and WHEREAS, the Cities intend to utilize an available portion of Airport real property for the construction and operation of the Training Campus; and WHEREAS, the United States of America, acting through the Federal Aviation Administration, released certain Airport real property from the requirement that it be used for aeronautical development purposes under certain grant agreements by an Instrument of Release from Aeronautical Use, dated July 28, 2015 (the “FAA Release”), attached hereto as Exhibit A and incorporated herein by reference; and WHEREAS, the Cities agreed in the FAA Release to lease the released property in accordance with the FAA Release, FAA Policy and Procedures Concerning the Use of Airport Revenue, as well as the airport’s FAA Grant Assurances (less the aeronautical use requirements), to include leasing the released property at fair market value and ensuring the proceeds are reinvested back into the maintenance and operation of the Airport; and WHEREAS, the Cities jointly own the Airport real property and will use the released property for the Training Campus, and intend this Agreement as their means to comply with the express language of the FAA Release; and WHEREAS, the Cities desire to treat the annual $177,500 equal contribution to the Airport as a fair market value rental rate for purposes of the requirement of the FAA Release with the intent that amount will be reinvested into the maintenance and operation of the Airport; and WHEREAS, the annual $177,500 equal contribution results in a total rental rate of approximately $0.186 per square foot per year; and WHEREAS, the standard rental rate for unimproved, small tracts at the Airport is $0.28 per square foot and the standard rental rate for unimproved, large tracts at the Airport is at or below the rate identified herein for the Training Campus; and WHEREAS, as evidence of the fair market value of the rental rate in this Agreement, the Cities recently executed a lease agreement with Discovery Air, LLC (“Discovery Air Lease”) for a large tract of unimproved land on Airport property. The annual rental rate for the Discovery Air Lease is $0.15 per square foot for ten (10) years and $0.25 per square foot for years eleven (11) and onward, after an initial 24-month due diligence period; and WHEREAS, the Cities, in consultation with the Director of the Airport, have determined that the rental rate of $0.186 per square foot for the Training Campus is an appropriate fair market value rental rate, equivalent to the rental rate for other portions of the Airport property. 3 NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS, IT IS AGREED by and between the parties hereto as follows: 1. Use of Released Property. The Cities agree that the real property, more particularly described in the legal description attached as Exhibit B (“the Released Property”), shall be used and occupied for the construction and operation of the Training Campus, as detailed in the design documents, attached hereto as Exhibit C and incorporated herein by this reference. The Released Property contains 44.068 acres or approximately 1,906,867 square feet. The use permitted herein shall be limited to uses related to the Training Campus in accordance with the Intergovernmental Agreement for the Construction, Ownership, Operation, Maintenance and Management of the Regional Training Campus executed between the Cities, as may be amended from time to time. Any other uses of the Released Property must be in accordance with the Requirements for the FAA Release. 2. No Interference. The Cities agree that the use of the Released Property will be limited as necessary to eliminate construction, use, and operations of the Training Campus that interfere with (1) the right of flight for the passage of aircraft in the airspace above the surface of the Airport real property; (2) the right to cause such noise in the airspace as is inherent in the operation of aircraft now or hereafter used for navigation of or flight in the said airspace; (3) the right to use said airspace for landing on, taking off from, or operating on the Airport. No use shall be permitted on the Released Property that otherwise constitutes an airport hazard. 3. Fair Market Value Rental Rate. A. As the fair market value referenced in the FAA Release, the Cities agree that the rental rate shall be $0.186 per square foot per year, in the total amount of Three Hundred Fifty-Four Thousand Six Hundred Seventy-Seven Dollars and 26/100 ($354,677.26), fifty percent (50%) of which ($177,338.63) shall be paid to the Airport by each City in equal payments on a quarterly basis no later than March 31, June 30, September 30, and December 31 annually, subject to the escalator provided in subsection B of this Section 3. B. Commencing on the first day of the month following the first anniversary of the Effective Date (defined below), and each year thereafter during the remainder of the term, the annual rent shall be adjusted by multiplying the annual rent payable in the next preceding year by a fraction, the numerator of which shall be the C.P.I., as hereinafter defined, published for the previous month of December and the denominator of which shall be the C.P.I. published for the month of December which preceded the month used as the numerator. The term “C.P.I.’ as used herein shall mean the Consumer Price Index for all Urban Consumers (CPI_U), All Items, for Denver-Aurora-Lakewood, CO as published by the Bureaus of Labor Statistics of the United States Department of Labor, 1982-84 base = 4 100. In the event the base year is changed, the C.P.I. shall be converted to the equivalent of the base year 1982-84 = 100. In the event the Bureau of Labor Statistics ceases to publish the C.P.I., an equivalent or comparable economic index shall be used. C. In addition to any other remedies provided in this Agreement, in the event that a City does not pay its contribution to the Airport within ten (10) days of the due date, that City agrees to pay a late charge of $50.00 for each such late payment, and default interest shall accrue on such payment from the date the payment was due, at a rate of twelve (12%) per annum. D. The rent, and any late charges and interest, shall be applied to the maintenance and operation of the Airport. This payment shall be separate from, and in addition to, any other funding obligations the Cities may have under the Airport IGA, as amended. The Cities intend that this Agreement and the Cities’ payment of the rent to the Airport for its use shall be in accordance with and satisfy the FAA Policy and Procedures Concerning the Use of Airport Revenue and the Airport’s FAA Grant Assurances (less the aeronautical use requirements), to the extent applicable. 4. Term of Agreement; Modification, Extension. This Agreement shall take effect at 12:01 a.m. on the date last signed below (the “Effective Date”) and expire at 11:59 p.m. on the last date of the calendar month in which occurs the day immediately preceding the fiftieth (50 th ) anniversary of the Effective Date, unless earlier terminated as provided herein. This Agreement may be modified only by the written agreement of the parties hereto. If the Cities desire to continue to use the Released Property for the Training Campus at the expiration of the initial term, the Cities may execute a new agreement of no more than fifty (50) years. 5. Termination for Aviation Development Purposes. The Cities agree that, in the event the Released Property shall be needed for aviation development purposes as contemplated in the FAA Release, the Cities shall terminate this Agreement, and all aeronautical terms, conditions, reservations and restrictions identified in FAA Grant Agreements numbered FAAP 9-05-016-801 and 9-05-038-C501, ADAP 7-08-0023-01 and 5-08-0023-02 through 5-08-0023-05, and AIP 3-08-0023-01 through AIP 3-08-0023-34 shall be reinstated. 6. Status as Governmental Entities. The parties are governmental entities; therefore, all direct and indirect financial obligations of each party under this Agreement shall be subject to annual appropriation pursuant to Article X, Section 20 of the Colorado Constitution, the parties’ respective charters and ordinances, and applicable law. This Agreement and the obligations of the parties hereunder do not constitute a multi-year fiscal obligation and are expressly contingent upon the parties’ respective governing bodies budgeting and 5 appropriating the funds necessary to fulfill the parties’ respective obligations. If a party does not appropriate funds sufficient to meet its obligations under this Agreement, such non-appropriation will constitute a termination by such party, effective on January 1 of the party’s fiscal year for which the funds are not appropriated regardless of any notice period required under this Agreement. The non-appropriating party shall give written notice of such non-appropriation of funds to the other party not later than thirty (30) days after the non-appropriating governing body approves its annual appropriation ordinance for any calendar year for which the ordinance does not include funding to meets its financial obligations for the ensuing fiscal year. 7. Notices. Any notice, request, demand, consent, or approval, or other communication required or permitted hereunder, shall be in writing and shall be deemed to have been given when personally delivered, faxed, emailed, or deposited in the United States mail with proper postage and addressed as follows: If to Loveland: Chief of Police City Manager Loveland Police Department with a copy to: Loveland City Attorney 810 E. 10 th Street City of Loveland Loveland, CO 80537 500 E. 3 rd Street Loveland, CO 80537 If to Fort Collins: Chief of Police City Manager Fort Collins Police Services with a copy to: Fort Collins City Attorney 2221 S. Timberline Road City of Fort Collins Fort Collins, Colorado 80525 300 LaPorte Avenue P.O. Box 580 Fort Collins, CO 80522 8. Relationship of the Parties; Non-liability of individuals; Benefit; No Assignment. The parties enter into this Agreement as separate, independent governmental entities and maintain such status throughout. No officer, agent or employee of either party shall be charged personally or held contractually liable by or to the other party under any term or provision of this Agreement or of any supplement, modification or amendment to this Agreement because of any breach thereof, or because of his, her or their execution or attempted execution of the same. This Agreement is made for the sole and exclusive benefit of the Cities, any permitted successors and assigns. The parties covenant and agree that they will not assign this Agreement, any interest or part thereof or any right or privilege pertinent thereto, without (1) written consent of the other party first having been obtained; 6 (2) satisfaction of any and all grant assurances; and (3) compliance with all applicable federal and state regulations related to the operation of the Airport. 9. Liability. Each party shall be responsible for any and all claims, damages, liability and court awards including costs, expenses and attorney fees incurred as a result of any action or omission of such party or its respective officers, employees and agents in connection with such party’s performance of this Agreement. Notwithstanding anything in this Agreement to the contrary, nothing herein shall be construed as a waiver of the notice requirements, defenses, immunities, and limitations of liability the parties and their respective officers, directors, councilors, employees, volunteers, and agents may have under the Colorado Governmental Immunity Act, C.R.S. §§ 24-10-101, et seq., or to any other defenses, immunities, or limitations of liability available to the parties by law. 10. Entire Agreement/Ambiguities. This Agreement embodies the entire agreement of the parties. The parties shall not be bound by or be liable for any statement, representation, promise, inducement or understanding of any kind or nature not set forth herein. No changes, amendments or modifications of any of the terms or conditions of this Agreement shall be valid unless reduced to writing and executed by both parties. In the event of any ambiguity in any of the terms of this Agreement, it shall not be construed for or against any party hereto on the basis that such party did or did not author the same. 11. Applicable Law; Severability. The laws of the State of Colorado shall be applied in the interpretation, execution and enforcement of this Agreement, and venue for any action arising hereunder shall be Larimer County, Colorado. Any provision rendered null and void by operation of law shall not invalidate the remainder of this Agreement to the extent that this Agreement is capable of execution. 12. No Third-Party Beneficiaries. This Agreement is made for the sole and exclusive benefit of the parties hereto and shall not be construed to be an agreement for the benefit of any third party or parties and no third party shall have a right of action hereunder for any cause whatsoever. 13. Counterpart Signatures. The parties agree that counterpart signatures of this Agreement shall be acceptable and that execution of the Agreement in the same form by each and every party shall be deemed to constitute full and final execution of the Agreement. IN WITNESS HEREOF, this Intergovernmental Agreement has been executed that day and year first above written. 7 THE CITY OF LOVELAND, COLORADO A Municipal Corporation ATTEST: By: __________________________ ______________________ Stephen C. Adams, City Manager City Clerk APPROVED AS TO FORM: ___________________________ Loveland City Attorney 8 THE CITY OF FORT COLLINS, COLORADO A Municipal Corporation ATTEST: ______________________ By: ______________________________ City Clerk Mayor ______________________ Printed name APPROVED AS TO FORM: ___________________________ Assistant City Attorney ___________________________ Printed name