HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/05/2019 - ITEMS RELATING TO APPROPRIATIONS FOR THE I-25/PROSAgenda Item 6
Item # 6 Page 1
AGENDA ITEM SUMMARY March 5, 2019
City Council
ITEM MOVED TO DISCUSSION
STAFF
Blaine Dunn, Senior Treasury Analyst
Travis Storin, Accounting Director
John Duval, Legal
SUBJECT
Items Relating to Appropriations for the I-25/Prospect Interchange and Police Regional Training Campus.
EXECUTIVE SUMMARY
A. Second Reading of Ordinance No. 030, 2019, Appropriating Unanticipated Revenue in the General Fund for
the I-25/Prospect Interchange and Authorizing the Transfer of Appropriations from the General Fund to the
Capital Projects Fund, and Appropriating Prior Year Reserves in the Transportation Capital Expansion Fund
for the I-25 and Prospect Interchange and Authorizing the Transfer of Appropriations from the Transportation
Capital Expansion Fund to the Capital Projects Fund, and Authorizing the Transfer of Appropriations from the
Capital Projects Fund to the Cultural Services and Facilities Fund for the Art in Public Places Program.
B. Second Reading of Ordinance No. 031, 2019, Appropriating Unanticipated Revenue in the General Fund for
the Police Regional Training Campus and Authorizing the Transfer of Appropriations from the General Fund
to the Cultural Services and Facilities Fund for the Art in Public Places Program.
These Ordinances, unanimously adopted on First Reading on February 19, 2019, appropriate the lease financing
proceeds received from the Certificates of Participation for the I-25/Prospect Interchange and Police Regional
Training Campus, respectively.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinances on Second Reading.
ATTACHMENTS
1. First Reading Agenda Item Summary, February 19, 2019 (w/o attachments) (PDF)
2. Ordinance No. 030, 2019 (PDF)
3. Ordinance No. 031, 2019 (PDF)
Agenda Item 7
Item # 7 Page 1
AGENDA ITEM SUMMARY February 19, 2019
City Council
STAFF
Blaine Dunn, Senior Treasury Analyst
Travis Storin, Accounting Director
John Duval, Legal
SUBJECT
Items Relating to Financing and Appropriation for the I-25/Prospect Interchange and Police Regional Training
Campus.
EXECUTIVE SUMMARY
A. Second Reading of Ordinance No. 021, 2019, Authorizing the Leasing of Certain City Property and the
Execution and Delivery by the City of a Site Lease, a Lease Agreement, and Other Documents and Matters
in Connection with the Financing of Certain Projects for the City.
B. First Reading of Ordinance No. 030, 2019, Appropriating Unanticipated Revenue in the General Fund for the
I-25/Prospect Interchange and Authorizing the Transfer of Appropriations from the General Fund to the
Capital Projects Fund, and Appropriating Prior Year Reserves in the Transportation Capital Expansion Fund
for the I-25 and Prospect Interchange and Authorizing the Transfer of Appropriations from the Transportation
Capital Expansion Fund to the Capital Projects Fund, and Authorizing the Transfer of Appropriations from the
Capital Projects Fund to the Cultural Services and Facilities Fund for the Art in Public Places Program.
C. First Reading of Ordinance No. 031, 2019, Appropriating Unanticipated Revenue in the General Fund for the
Police Regional Training Campus and Authorizing the Transfer of Appropriations from the General Fund to
the Cultural Services and Facilities Fund for the Art in Public Places Program.
Ordinance No. 021, 2019, unanimously adopted on First Reading on February 5, 2019, authorizes the financing,
through Certificates of Participation (COPs), needed for both the I-25/Prospect Interchange and Police Training
Facility Joint Venture. City staff is seeking $25.3 million in financing through Certificates of Participation (COPs)
for a March 2019 closing. This financing will help support the construction of the I-25/Prospect interchange ($17.1
million) and the Police Training Facility Joint Venture ($8.2 million).
Ordinance Nos. 030 and 031, 2019, appropriate the lease financing proceeds received from the COPs for the I-
25/Prospect Interchange and Police Regional Training Campus, respectively.
A related item is included under Discussion on this Agenda that addresses the Intergovernmental Agreements
(IGAs) with the City of Loveland concerning the Police Regional Training Campus.
STAFF RECOMMENDATION
Staff recommends adoption of Ordinance No. 021, 2019, on Second Reading and Ordinance Nos. 030 and
031, 2019 on First Reading.
ATTACHMENT 1
Agenda Item 7
Item # 7 Page 2
BACKGROUND / DISCUSSION
I-25/Prospect Interchange
Council has previously adopted four resolutions regarding the interchange: Resolution 2018-004, Resolution
2018-005, Resolution 2018-024, and Resolution 2018-074. These resolutions did the following:
Resolution 2018-004: Approved Intergovernmental Agreement (IGA) with CDOT stating the City of Fort
Collins’ intent to provide an additional $17.1 million in funding for the I-25/Prospect interchange
improvements. This is an amendment to the existing IGA with CDOT that currently allocates the City’s fair
share contribution of funds for the North I-25 improvements ($1.125 million per year for 2017 and 2018).
ꞏ Resolution 2018-005: Approved Memorandum of Understanding (MOU) with the private property interests
proximate to the interchange, stating their intent to repay the City of Fort Collins their share of the interchange
improvements ($8.25 million).
Resolution 2018-024: Approved Binding Agreement pertaining to development of I-25/Prospect interchange
improvements between the City and the private property owners proximate to the interchange. The Binding
Agreement formalized the previous MOU approved in Resolution 2018-005. Under this Binding Agreement
the property owners agreed to pay back the City a total of $8.25 million for their share of the interchange
improvements.
Resolution 2018-074: Approved IGA with the Town of Timnath for financial participation in the I-25/Prospect
interchange improvements. This IGA is an agreement for the Town of Timnath to pay back the City of Fort
Collins $2.5 million for their share of the interchange improvements.
The interchange at Prospect Road and I-25 is aging infrastructure currently beyond its design lifespan and is
failing in level of service (congestion) at peak periods of travel. Existing and planned development in the area
are exacerbating congestion and safety issues. The interchange and Prospect Road are a critical gateway into
central Fort Collins, as well as Timnath. City of Fort Collins staff worked closely with CDOT during preliminary
design phases to ensure improvements to the interchange meet the City’s needs, design standards, and
integrates with the City’s road network.
City staff worked with CDOT Project Managers, Town of Timnath, and private property interests proximate to
the interchange throughout the past year to develop a private-public funding partnership model to share costs
related to the interchange improvements. City of Fort Collins will act as primary agent with CDOT on the funding
agreement, with separate repay agreements to the City from Town of Timnath, and the private property interests.
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 (“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 for 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
Agenda Item 7
Item # 7 Page 3
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 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 SHE 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.
CITY FINANCIAL IMPACTS
I-25/Prospect Interchange Appropriation - Ordinance No. 030, 2019
The total cost for CDOT to improve the interchange is estimated at $31 million. This includes an additional $7
million (beyond CDOT’s basic interchange design standard) for urban design amenities required by the City of
Fort Collins and to be paid by Fort Collins, Timnath and private property interests. CDOT will share in 50% of
the base design portion, or $12 million. The remaining $19 million will be split across the City, property owners,
and Timnath at 43.4%, 43.4%, and 13.2%, respectively. Timnath’s share is based on traffic studies totaling 2.5
million. The City and property owners will evenly split the remaining $16.5 million cost at $8.25 million each.
The principal borrowed is the balance of the $19 million costs after accounting for right-of-way ($500k)
contributions and Transportation Capital Expansion Fees (TCEF) ($1.4 million). The net amount is $17.1 million.
The City would be responsible for debt service in full and then separately collect from Timnath and the property
owners under the aforementioned repayment agreements.
This ordinance will appropriate a total of $19,099,945. The source and use of the funds are as follows:
The COPs will be transferred from the general fund to the capital projects fund and art in public places fund. The
TCEF contribution will be transferred from the TCEF fund into the capital projects fund.
Police Training Facility Joint Venture - Ordinance No. 031, 2019
The total cost of the facility will be $18.5 million. Both cities have agreed to split the constructions costs 50/50,
making the City of Fort Collins’ portion of the project $9.25 million. In the 2017/18 budget, Council appropriated
$1.08 million for this project from General Fund Reserves. With this previous appropriation the City is seeking
$8.17 million in financing for the remainder of our share of the construction costs.
Source of Funds Use of Funds
COPs $ 17,332,445 Payment to CDOT $ 16,867,500
TCEF Contribution 1,400,000 City Urban Design Work 1,917,500
Right of Way Contributions 367,500 Closing Costs 232,445
Art in Public Places* 82,500
Total $ 19,099,945 Total $ 19,099,945
*Based on Fort Collins share of interchange of $8.25M
Agenda Item 7
Item # 7 Page 4
This ordinance will appropriate a total of $8,308,123. The source and use of the funds are as follows:
The funds will all be spent out of the General Fund.
ATTACHMENTS
1. First Reading Agenda Item Summary, February 5, 2019 (w/o attachments) (PDF)
2. Ordinance No. 021, 2019 (PDF)
Source of Funds Use of Funds
COPs 8,308,123 Payment to Loveland 8,098,020
Closing Costs 129,123
Art in Public Places 80,980
Total 8,308,123 Total 8,308,123
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ORDINANCE NO. 030, 2019
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING UNANTICIPATED REVENUE IN THE GENERAL FUND
FOR THE I-25/PROSPECT INTERCHANGE AND AUTHORIZING THE TRANSFER OF
APPROPRIATIONS FROM THE GENERAL FUND TO THE CAPITAL PROJECTS FUND,
AND APPROPRIATING PRIOR YEAR RESERVES IN THE TRANSPORTATION CAPITAL
EXPANSION FUND FOR THE I-25 AND PROSPECT INTERCHANGE AND
AUTHORIZING THE TRANSFER OF APPROPRIATIONS FROM THE
TRANSPORTATION CAPITAL EXPANSION FUND TO THE CAPITAL PROJECTS FUND,
AND AUTHORIZING THE TRANSFER OF APPROPRIATIONS FROM THE CAPITAL
PROECTS FUND TO THE CULTURAL SERVICES AND FACILITIES FUND FOR THE
ART IN PUBLIC PLACES PROGRAM
WHEREAS, the interchange at Interstate Highway 25 and Prospect Road (the
“Interchange”) is owned by the State of Colorado (the “State”) and operated and maintained
by the Colorado Department of Transportation (“CDOT”); and
WHEREAS, CDOT is in the process of implementing a construction project to
significantly modify and improve the Interchange by reconstructing its ramps and bridge and
by reconstructing Prospect Road to a configuration with four through lanes, a raised median, left
turn lanes and pedestrian and bicycle facilities, with this work to include certain enhanced urban
design elements (the “Project”); and
WHEREAS, CDOT has estimated that the total cost of the Project will be
approximately $31 million, but it has indicated that it will only provide $12 million to fund
the Project, leaving a $19 million deficit (the “Deficit”); and
WHEREAS, CDOT has asked Fort Collins to participate in the Project by funding the
Deficit and, to memorialize Fort Collins’ obligation to fund the Deficit, CDOT and Fort
Collins have entered into the “State of Colorado Amendment, Amendment #:1, Project #:
21506” (the “CDOT IGA”); and
WHEREAS, while the Interchange is within Fort Collins’ boundaries and the Project
will provide significant transportation and economic benefits to Fort Collins and its residents,
others will also experience significant direct benefits from the Project, including Timnath and
five private entities (the “Property Owners”) that own several parcels of real property located
within Fort Collins’ boundaries that are adjacent to the four corners of the Interchange; and
WHEREAS, Timnath and the Property Owners have agreed with the City to share in
the Deficit under agreements the City Council has previously approved, but they will share in
such Deficit through payments to the City over time; and
WHEREAS, Fort Collins has entered into the CDOT IGA and agreed to pay the Deficit
to CDOT with the understanding that Timnath and the Property Owners will share in funding
the Deficit through future payments; and
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WHEREAS, to fund the City’s payment of the Deficit under the CDOT IGA, the
Council has approved in Ordinance No. 012, 2019, the issuance of certificates of participation
that are anticipated to generated proceeds to the City of $17,332,445; and
WHEREAS, there is also $1,400,000 appropriated and unexpended in the City’s
Transportation Improvements Fund and $367,500 appropriated and unexpended in the Capital
Projects Fund available to further fund the City’s share of the Project; and
WHEREAS, this Ordinance serves the public purpose of appropriating and providing
the funds needed to pay to CDOT the City’s share of the Project, which Project will
significantly benefit the public’s health, safety and welfare; and
WHEREAS, Article V, Section 9 of the City Charter permits the City Council, upon
recommendation of the City Manager, to make supplemental appropriations by ordinance at any
time during the fiscal year, provided that the total amount of such supplemental appropriations, in
combination with all previous appropriations for that fiscal year, does not exceed the current
estimate of actual and anticipated revenues to be received during the fiscal year; and
WHEREAS, the City Manager has recommended the appropriations described herein and
determined that these appropriations are available and previously unappropriated from the General
Fund, the Transportation Improvements Fund and the Capital Projects Fund and will not cause the
total amount appropriated in these funds to exceed the current estimate of actual and anticipated
revenues to be received in each fund during this fiscal year; and
WHEREAS, Article V, Section 10(b) of the City Charter authorizes the City Council, upon
the recommendation of the City Manager, to transfer by ordinance any unexpended and
unencumbered appropriated amount or portion thereof from one fund or capital project to another
fund or capital project, provided that the proposed transfer is from a fund or capital project in
which the amount appropriated therein exceeds the amount needed to accomplish the purpose
specified in the appropriation for that fund; and
WHEREAS, because this project involves construction estimated to cost more than
$250,000, Section 23-304 of the City Code requires one percent of these qualified appropriations
to be transferred to the Cultural Services and Facilities Fund for a contribution to the Art in Public
Places program; and
WHEREAS, the City Manager has recommended the transfers herein from the Capital
Projects Fund to the Cultural Services and Facilities Fund for the Art in Public Places program and
has determined that such transfers may be made because the amount appropriated in the Capital
Projects Fund exceeds the amount needed to accomplish the purposes specified for the amounts
appropriated in the Fund.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
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Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That there is hereby appropriated for expenditure from unanticipated
revenue in the General Fund for transfer to the Capital Projects Fund the sum of SEVENTEEN
MILLION THREE HUNDRED THIRTY-TWO THOUSAND FOUR HUNDRED FORTY-FIVE
DOLLARS ($17,332,445) for the Project and appropriated therein.
Section 3. That there is hereby appropriated for expenditure from prior year reserves
in the Transportation Improvements Fund for transfer to the Capital Projects Fund the sum of ONE
MILLION FOUR HUNDRED THOUSAND DOLLARS ($1,400,000) for the Project and
appropriated therein.
Section 4. That there is hereby appropriated for expenditure from unanticipated
revenue in the Capital Projects Fund the sum of THREE HUNDRED SIXTY-SEVEN
THOUSAND FIVE HUNDRED DOLLARS ($367,500) for the Project and appropriated therein.
Section 5. That the unexpended appropriated amount of SIXTY-FOUR THOUSAND
THREE HUNDRED FIFTY DOLLARS ($64,350) in the Capital Projects Fund is authorized for
transfer to the Cultural Services and Facilities Fund and appropriated therein for the Art in Public
Places Art Project.
Section 6. That the unexpended appropriated amount of SIXTEEN THOUSAND
FIVE HUNDRED DOLLARS ($16,500) in the Capital Projects Fund is authorized for transfer to
the Cultural Services and Facilities Fund and appropriated therein for the Art in Public Places
Program Operations.
Section 7. That the unexpended appropriated amount of ONE THOUSAND SIX
HUNDRED FIFTY DOLLARS ($1,650) in the Capital Projects Fund is authorized for transfer to
the Cultural Services and Facilities Fund and appropriated therein for the Art in Public Places
Program Maintenance.
Introduced, considered favorably on first reading, and ordered published this 19th day of
February, A.D. 2019, and to be presented for final passage on the 5th day of March, A.D. 2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
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Passed and adopted on final reading on the 5th day of March, A.D. 2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
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ORDINANCE NO. 031, 2019
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING UNANTICIPATED REVENUE IN THE GENERAL FUND
FOR THE POLICE REGIONAL TRAINING CAMPUS AND AUTHORIZING THE
TRANSFER OF APPROPRIATIONS FROM THE GENERAL FUND TO THE CULTURAL
SERVICES AND FACILITIES FUND FOR THE ART IN PUBLIC PLACES PROGRAM
WHEREAS, the City of Fort Collins and the City of Loveland (jointly, the “Cities”) intend
to jointly construct, own, operate, maintain and manage a regional training campus for the benefit
of their respective law enforcement agencies and for use by third-party agencies as the parties may
agree; and
WHEREAS, the Cities intend to enter into intergovernmental agreements related to the
training campus, which shall include among other requirements, that the Cities will own, design,
construct, operate, maintain and manage the training campus equally, with each City sharing fifty
percent (50%) of the costs; and
WHEREAS, under the intergovernmental agreements, the cost of the construction of the
training campus shall not exceed $18,518,782.00 and each City shall be responsible for an equal
share of $9,259,391.00; and
WHEREAS, City Council approved an appropriation of $1,080,000.00 from General Fund
Reserves regarding Offer 29.36 in the 2017-2018 Adopted Budget for the police training campus;
and
WHEREAS, this appropriation serves the public purpose of providing for the construction
of a police regional training campus through which the City of Fort Collins will have improved
ability to train its law enforcement officers for the benefit of the public safety of its citizens; and
WHEREAS, Article V, Section 9 of the City Charter permits the City Council, upon
recommendation of the City Manager, to make supplemental appropriations by ordinance at any
time during the fiscal year, provided that the total amount of such supplemental appropriations, in
combination with all previous appropriations for that fiscal year, does not exceed the current
estimate of actual and anticipated revenues to be received during the fiscal year; and
WHEREAS, the City Manager has recommended the appropriation described herein and
determined that this appropriation is available and previously unappropriated from the General
Fund and will not cause the total amount appropriated in the General Fund to exceed the current
estimate of actual and anticipated revenues to be received in that fund during any fiscal year; and
WHEREAS, Article V, Section 10(b) of the City Charter authorizes the City Council, upon
recommendation of the City Manager, to transfer during the fiscal year by ordinance any
unexpended and unencumbered appropriated amount or portion thereof from one fund or capital
project to another fund or capital project, provided that the proposed transfer is from a fund or
capital project in which the amount appropriated therein exceeds the amount needed to accomplish
the purpose specified in the appropriation for that fund; and
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WHEREAS, because this project involves construction estimated to cost more than
$250,000, Section 23-304 of the City Code requires one percent of these qualified appropriations
to be transferred to the Cultural Services and Facilities Fund for a contribution to the Art in Public
Places program; and
WHEREAS, the City Manager has recommended transfers herein from the General Fund
to the Cultural Services and Facilities Fund for the Art in Public Places program and has
determined that such transfers may be made because the amount appropriated in the General Fund
exceeds the amount needed to accomplish the purpose specified for the amount appropriated in the
Fund; and
NOW, THEREFORE, BE IT ORDAINED 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 set forth above.
Section 2. That there is hereby appropriated for expenditure from unanticipated
revenue in the General Fund the sum of EIGHT MILLION THREE HUNDRED EIGHT
THOUSAND ONE HUNDRED TWENTY-THREE DOLLARS ($8,308,123) for the Police
Regional Training Campus and appropriated therein.
Section 3. That the unexpended appropriated amount of SIXTY-THREE
THOUSAND ONE HUNDRED SIXTY-FOUR DOLLARS ($63,164) in the General Fund is
authorized for transfer to the Cultural Services and Facilities Fund and appropriated therein for the
Art in Public Places Art Project.
Section 4. That the unexpended appropriated amount of SIXTEEN THOUSAND
ONE HUNDRED NINETY SIX DOLLARS ($16,196) in the General Fund is authorized for
transfer to the Cultural Services and Facilities Fund and appropriated therein for the Art in Public
Places Program Operations.
Section 5. That the unexpended appropriated amount of ONE THOUSAND SIX
HUNDRED TWENTY DOLLARS ($1,620) in the General Fund is authorized for transfer to the
Cultural Services and Facilities Fund and appropriated therein for the Art in Public Places Program
Maintenance.
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Introduced, considered favorably on first reading, and ordered published this 19th day of
February, A.D. 2019, and to be presented for final passage on the 5th day of March, A.D. 2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 5th day of March, A.D. 2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
03-05-2019
COPs Financing:
I-25/Prospect Interchange & Police Training Facility
Blaine Dunn, Sr. Treasury Analyst & Travis Storin, Accounting Director
Modifications from First Reading
• Ordinances 2019-030 and 2019-031 passed 7-0 at first reading
• Moved from consent to discussion based on an increased
appropriation of $103,611 vs. first reading
• Results in lower cost of borrowing for the City
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Background
• Auction Sale was completed the morning of March 5, 2019
• 13 qualified underwriters submitted bids
• Bids are evaluated based on True Interest Cost (TIC), which is a
composite measure used to normalize the many variables in a bid
• Winning bid of 2.92% TIC
• Increase of $103,611 in upfront borrowing, substantial decrease in
ongoing interest payments
• $1.3M of total savings over the 2/5 Council-authorized amount
• $349K annual savings vs. BFO Offers
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Second Reading of Ordinances
• Ordinance 2019-030
• Appropriating funds for I-25/Prospect Interchange
• Ordinance 2019-031
• Appropriating funds for Police Regional Training Campus
4