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HomeMy WebLinkAboutMINUTES-08/18/2009-RegularAugust 18, 2009 C COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council -Manager Form of Government Regular Meeting - 6:00 p.m. A regular meeting of the Council of the City of Fort Collins was held on Tuesday, August 18, 2009, at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered by the following Councilmembers: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy, and Troxell. Staff Members Present: Atteberry, Krajicek, Roy. Councilmember Ohlson made a motion, seconded by Councilmember Troxell, to adopt Resolution 2009-076 Expressing Appreciation and Gratitude Posthumously to Daniel Arthur Preble For His Contributions to the Golf Board and the Community. Mayor Hutchinson read Resolution 2009-076 in its entirety and presented the Resolution to Mr. Preble's family. The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none. THE MOTION CARRIED. Citizen Participation Eric Sutherland, 631 LaPorte, stated his concerns with the City claiming to provide 4% of electricity from renewable energy when less than I % of the City's electrical power is from renewable energy. The purchase of renewable energy credits should not be included in any calculation of electrical power produced by renewable sources. Renewable energy credits are not carbon offsets and the City should not be purchasing renewable energy credits. Stacy Lynne, 216 Park Street, stated her concerns with the conduct of Councilmembers at Council meetings. Ryan Kiefer, Beet Street Executive Director, shared his vision of Beet Street and his strategies to accomplish that vision. Cheryl Distaso, 135 South Sunset, stated the Alta Vista neighborhood is very concerned with the possibility that the proposed realignment of Vine Street will allow Vine Street to become a de4acto truck route. Bruce Lockhart, 2500 East Harmony Road, stated he requested copies of all Council emails concerning the trash districting issue but he is having difficulty getting the information. Use of more 279 August 18, 2009 energy from renewable sources will be very expensive and does not provide as much energy as fossil fuels. Nancy York, 130 South Whitcomb, stated the City needs to examine its transportation costs and determine ways to lower fuel costs and reduce greenhouse gas emissions. Citizen Participation Follow-up Councilmember Poppaw stated the request for Council emails concerning trash districting was onerous and does require considerable Council and staff time to gather the requested emails. Councilmember Ohlson asked if there is a charge for providing copies of the emails to Mr. Lockhart. The City should provide as much information as possible at no cost. City Attorney Roy stated the City's policy states fees will be charged for the collection and review of materials requested under the Open Records Act, up to the allowable limit, set by state statute. An hourly rate of $15/hour is charged for staff review and a copying fee of $0.25 per page. The records must be gathered into one place and it takes a considerable amount of staff time to review each record for confidential or other privileged information that can or must be withheld from public inspection under the Open Records Act. The City Manager has the discretion to waive the fee for non-profit organizations. Councilmember Manvel stated in 2006, the voters approved the use of funds set aside for a proposed relocation of the Highway 14 Truck Route for transportation capital improvement projects in the northeast part of the City. The realignment of Vine Drive will separate the street from the neighborhoods located nearby. Provisions have been proposed that wil I lessen truck traffic on Vine, once it is realigned and should improve traffic in the Alta Vista and Buckingham neighborhoods. Councilmember Ohlson asked for clarification of the amount of the City's electrical power provided by renewable energy. He asked if CSU students were being given accurate information about the fee they pay for "green power," which is offered as a way for students to reduce their carbon dioxide emissions. He asked for a description of the difference between carbon offsets and renewable energy credits. Agenda Review City Manager Atteberry stated there were no changes to the agenda. CONSENT CALENDAR 6. Consideration and Approval of the Minutes of the July 7 and July 21 2009 Regular Meetings. 7. First Reading of Ordinance No. 082, 2009, Appropriating Unanticipated Grant Revenue in the Transportation Services Fund to Fund the 2009-2010 Safe Routes to School Project. The City of Fort Collins Transportation Planning Department has received a federal grant through the Colorado Department of Transportation (CDOT) for the FY 2009-10 Safe Routes 280 August 18, 2009 to School (SRTS) Program. This funding will allow the Fort Collins Safe Routes to School Program (administered and staffed by the Transportation Planning department) to provide non -infrastructure SRTS services for five local schools: Bennett IB World School, Dunn IB World School, McGraw IB World School, Tavelli Elementary, and Lesher Middle School. Non -infrastructure SRTS services include in -class education, school site and neighborhood assessments, and walking and bicycling encouragement events. The Fort Collins SRTS program will partner with Bicycle Colorado (a non-profit organization) to provide in -class education. Additionally, the grant will cover the costs of federally -mandated data collection on walking and bicycling at the five local schools. The funding will allow the Fort Collins SRTS program to build on past successes and provide these services to additional schools. 8. First Reading of Ordinance No. 083, 2009, Vacating a Portion of Right-of-way as Dedicated on the Plat of Indian Hills Subdivision, First Filing. Indian Hills Subdivision, First Filing is located at the southeast corner of East Stuart Street and Stover Street. A 10.01 foot strip of property, identified on the plat as "crosswalk," was dedicated to the City as a right-of-way between Lots 6 and 7, to connect Indian Hills Park to Cherokee Drive. The City Parks Department has no plans to construct a sidewalk connection on this narrow strip of land since there is satisfactory access to the Park and the connection is not necessary. Therefore, Parks has proposed the vacation of this property. All public and private utilities have been notified of the proposed vacation and report no objections, provided the area is retained as a utility and drainage easement. With this Ordinance, the entire area proposed to be vacated will be retained as a utility and drainage easement. The adjacent property owners have also been contacted and report no objection to the vacation. 9. First Reading of Ordinance No. 084, 2009, Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands Necessary to Construct Public Improvements Related to the East Drake Road and South Lemay Avenue Intersection Improvements Project. The intersection of Drake Road and Lemay Avenue has experienced a steady increase in traffic as development has occurred in the surrounding area. The City has designed the East Drake Road and South Lemay Avenue Improvements Project to build a new right turn lane from westbound Drake Road to northbound Lemay Avenue. The improvements will be constructed in 2010. The Project requires the acquisition of various real property interests from two different properties which are located at the northeast corner of the intersection. Since the Project will be funded through the Congestion Mitigation and Air Quality (CMAQ) Program, all aspects of the Project, including property acquisitions, must comply with procedures for federally funded projects. The acquisition phase of this Project will conform to the provisions of the Uniform Relocation Assistance and Real Property Acquisitions Policies Act of 1970 as Amended (Public Law 91-646). In accordance with these regulations, property owners must be informed about the possible use of eminent domain and their•rights pursuant to Colorado Statute in the official Notice of Intent Letter. Authorization from City Council is needed prior to sending this information to property owners. This letter 281 August 18, 2009 is the first official step in the acquisition phase and happens prior to the appraisals. Given the recommended construction schedule for the Project and the fact that the acquisitions must be conducted under procedures for federally funded projects, timely acquisition of the property interests is necessary. Therefore, staff is requesting authorization to use eminent domain for all property acquisitions, if such action is necessary. 10. First Reading of Ordinance No. 085, 2009, Authorizing the Lease of City -Owned Property at 1506A West Horsetooth Road For Up To Five Years. The City has leased this property since 2003 and desires to continue leasing the property. This Ordinance will allow the City to keep the property rented for up to five years. 11. First Reading of Ordinance No. 086, 2009, Authorizing the Lease of City -Owned Property at 3620 Kechter Road for Up to Five Years. The City has leased this property since 2002 and desires to continue leasing the property. This Ordinance will allow the City to keep the property rented for up to five years. 12. Resolution 2009-077 Authorizing a Grant Agreement with the United States Fish and Wildlife Service for Prairie Ecosystem Conservation Education. This agreement outlines a mutually beneficial collaboration between U.S. Fish and Wildlife Service and City of Fort Collins Natural Areas Program to offer classroom visits, field trips, public programs and volunteer training. Obligations of the Natural Areas Program include hiring a temporary, hourly education assistant and collaborating to implement the grant agreement. The U.S. Fish and Wildlife Service is obligated to fund the project (about $10,000 per year for 5 years) and collaboratively implement the project. 13. Resolution 2009-078 Authorizing the Initiation of Exclusion Proceedings of Annexed Properties Within the Territory of the Poudre Valley Fire Protection District. This Resolution authorizes the City Attorney to file a.petition in Larimer County District Court to exclude properties annexed into the City in 2008 from the Poudre Valley Fire Protection District in accordance with state law and to allow for the provision of fire protection services to such properties by the Poudre Fire Authority. 14. Routine Easement. Easement for construction and maintenance of public utilities from Mary and Mark Brophy, to install electric vault and underground electric system, located at 1109 West Harmony. Monetary consideration: $10. ***END CONSENT*** 282 August 18, 2009 Ordinances on First Reading were read by title by City Clerk Krajicek. 7. First Reading of Ordinance No. 082, 2009, Appropriating Unanticipated Grant Revenue in the Transportation Services Fund to Fund the 2009-2010 Safe Routes to School Project. 8. First Reading of Ordinance No. 083, 2009, Vacating a Portion of Right-of-way as Dedicated on the Plat of Indian Hills Subdivision, First Filing. 9. First Reading of Ordinance No. 084, 2009, Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands Necessary to Construct Public Improvements Related to the East Drake Road and South Lemay Avenue Intersection Improvements Project. 10. First Reading of Ordinance No. 085, 2009, Authorizing the Lease of City -Owned Property at 1506A West Horsetooth Road For Up To Five Years. 11. First Reading of Ordinance No. 086, 2009, Authorizing the Lease of City -Owned Property at 3620 Kechter Road for Up to Five Years. Councilmember Ohlson made a motion, seconded by Councilmember Troxell to adopt and approve all items on the Consent Calendar. Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none. THE MOTION CARRIED. Staff Reports Brian Janonis, Utilities Executive Director, introduced Jon Haukaas, the new Water Engineering and Field Services Manager. Resolution 2009-079 Adopting the 2009 Transfort Strategic Operating Plan as a Component of the Transportation Master Plan, Adopted as Amended The following is staffs memorandum for this item. "FINANCIAL IMPACT No direct financial impacts exist as a result ofadopting the 2009 Transfort Strategic Operating Plan (TSOP). However, the TSOP provides funding strategies as recommended by a citizen committee that the City may be involved in at a later date. EXECUTIVE SUMMARY As part of the 200812009 Budgeting for Outcomes process, the City Council approved funding to pursue the 2009 Transit Strategic Operating Plan update, which was -to be completed by the end of 2009. Over the past year and with extensive public input, the proposed Transfort Strategic 283 August 18, 2009 Operating Plan was prepared by a team that included City staff and consultants. The primary elements of the Transfort Strategic Operating Plan include goals, operating plans, financial plans, implementation, and action items. The Transfort Strategic Operating Plan update was part of a larger transit strategic plan process among the City of Fort Collins-Transfort, the City of Loveland -COLT, and the Poudre School District (PSD). The purpose of the transit strategic plan process was to provide a coordinated effort in updating the 2001 Transfort Service Plan and the 2004 COLT Transit Plan, as well as providing detailed analysis of the opportunities public transportation offers PSD high .schools. The Transfort Strategic Operating Plan also addresses the coordination of transit service with the planned Mason Corridor MAX project, identifies potential funding mechanisms and practical phasing options, and addresses financial solutions required to create and sustain a high performing transit system. Separate documents have been created for Transfort and COLT in order to simplify the plan adoption process. BACKGROUND The 2009 Transfort Strategic Operating Plan (TSOP) is an update to the 2001 Transfort Service Plan adopted by the Fort Collins City Council. The purpose of this project is to prepare an updated TSOP, which serves the Fort Collins urbanized area, and to contribute to the transit services related policies contained within the adopted Fort Collins City Plan and Transportation Master Plan. The TSOP itself is divided into chapters covering the following topics: • Chapter I — Introduction • Chapter 2 — Existing Conditions • Chapter 3 — Demographics and Community Profile • Chapter 4 — Public Involvement and Stakeholder Coordination • Chapter S — Proposed Phased Service Concepts • Chapter 6 — Capital and Operating Requirements • Chapter 7 — Implementation of Service Improvements • Appendices Presented below isa summary of the contents of each chapter. Chapter I - Introduction The project team developed six primary goals to guide the development of the 2009 TSOP update. These goals are outlined below: Goal I — Develop an expanded transit system focused on productivity and performance to meet the Transportation Master Plan and City Plan Policies. 284 August 18, 2009 • Goal 2 — Meet and exceed the 2008 Climate Action Plan Goal for Transportation COz reductions by 2020. Goal 3 — Provide enhanced mobilityfor seniors, youth, disabled, and transit dependent. • Goal 4 — Develop a public transportation system that reduces roadway related costs for maintenance, right-of-way acquisition, and construction. • Goal S - Provide funding recommendations to fully implement the Transit Strategic Plan. • Goal 6 - Stimulate the local economy through investment in public transportation infrastructure and operations. The 2009 TSOP update was undertaken in several key steps, as noted below: • Collection of community input • Review of related plans • Evaluation of existing transit market • Consideration ofgrowth patterns • Assessment of existing transit services • Development of initial transit service concepts • Identification of opportunities to phase transit improvements • Integration of PSD transportation needs . • Evaluation offending and governance options. Chapter 2 - Existing Conditions To identify the productivity and effectiveness of the existing Transfort system, an assessment of existing transit system performance was conducted. Between January 1, 2008 and December 31, 2008, Transfort had approximately 1.9 million riders on its fixed -route system. Transfort ridership varies significantly depending on whether or not CSU is in session; with average weekday ridership being 73% higher when CSUis in session. Service improvements were developed based on current productivity measures for each route, determining routes with more efficiencies, those that are underperforming, and routes which are unable to accommodate. high demand. Chapter 3 — DemograpI hics and Community Profile Land use densities can have a significant impact on the productivity and effectiveness. of transit services. Three land use density characteristics (population density, employment density, and combined population and employment density) were considered for the year 2005 and the future forecast year of 2035. Density is defined as the number ofpersons (residents and/or employees) per acre. This data is collected and forecasted by the North Front Range Metropolitan Planning Organization (NFRMPO). The 2005 population density in Fort Collins was concentrated in residential areas near downtown Fort Collins, as well as the areas west of CSU. By 2035, population density is projected to increase in these same areas, as well as in the vicinity of Mountain Vista and Timberline. The 2005 employment density in Fort Collins was concentrated along College Avenue and the Mason Corridor, in particular downtown Fort Collins, near "Old Town " and the CSU campus. By 2035, employment density is projected to intensify in these same areas, as well as in the vicinity of 285 August 18, 2009 Mountain Vista and Timberline. The 2005 combined population and employment density in Fort Collins was concentrated in the older established areas of Fort Collins and projected to increase, with the exception ofless density in the southernportion ofthe city. As already noted, the Mountain Vista area is projected to increase significantly in combined density by 2035. Demographic information was incorporated into the service concept development process as this particular data reflects transit dependency, and can also indicate the potential productivity oftransit services. Transit dependent populations often include students, individuals who are not able to drive, or persons that do not have the economic means to own a vehicle. Predictably, the highest densities of students exist near the CSU campus. Individuals ages 17 and younger are most concentrated south and west of downtown Fort Collins. The density of individuals over the age of 60 years is also concentrated in and around downtown Fort Collins. When reviewing median household income characteristics, lower income households are somewhat concentrated in central Fort Collins with higher income households in the perimeter areas. These demographic characteristics indicate that transit dependent populations are more focused in the central areas of the City of Fort Collins, but these markets are also distributed throughout the outlying areas. Current and projected traffic conditions were also considered in the service concept development process in an effort to identify appropriate roadways for transit service and alternative modes of travel. As of 2005, the most congested portions of the roadway were along Harmony Road near Shields, College, and Timberline and along College near Harmony and near the CSU campus. By 2035, congestion and traffic volumes are projected to increase significantly, with the most congested areas projected to be along College Avenue, both near CSU/downtown and .south of Carpenter. Portions of Harmony are also expected to experience high volumes and congestion, particularly just east of College Avenue. Prospect is also expected to experience increased congestion. Chapter 4 - Public Involvement and Stakeholder Coordination In an effort to gain current perspectives and needs regarding transit services, public input was gathered at a series of public and stakeholder meetings held in Fort Collins and Loveland. Comments were also received via email, phone and postal mail. Key public stakeholder activities conducted in Fort Collins are listed below: Three public meetings were held from July 2008 to April 2009. Open houses were held at the four PSD high schools (Fort Collins, Poudre, Rocky Mountain, and Fossil Ridge High Schools). Stakeholder briefings/interviews with City staff, local and regional governmental agencies, advocacy groups, CSU, boards and commissions, UniverCity Connections, Chamber of Commerce, local businesses, the real estate and development community, transit users, and social service agencies were conducted. The most fi-equently received comments from the public are listed below: Increase frequency to at least 30 minutes on all routes Increase hours of service, especially in the evening and on weekends Establish regional connection routes between Fort Collins and Longmont 286 August 18, 2009 • Ensure that schedules and routes are easy to understand • Implement a grid system • Increase access to lower income housing areas • Add more room for bikes on buses and for bike parking at stops • Add more transit coverage throughout the community. A Citizen's Financial Advisory Committee (FA() was organized in support of the project and was comprised of representatives from both Fort Collins and Loveland. The purpose of the FAC was to develop a range offunding mechanisms and ultimate recommendations that will enable proposed operational strategies to be implemented. The FAC had open discussions about the required investment for transit strategies, related funding issues, and options to address those issues. The recommendations of the FAC are listed in Attachment 7. The following is a brief summary of the FAC's evaluation criteria and recommendation: • Establish reliable and dedicated funding sources • Ensure that the sources are fair and do not place undo burden on users, who may be the least able to pay • Ensure an ease of administration and implementation • Revenue must grow as the community grows • Ensure a mechanism for service differentiation by community • Attempt to identify a proposal that is likely to gain public acceptance and success with voters. Chapter 5 - Proposed Phased Service Concepts The TSOP update presents a framework for implementation offuture transit improvements in three phases. Phase 1 recommends modest transit growth over existing service. It assumes the implementation of MAX service and the refinement of local routes to coordinate with MAX. Several near -term improvements were implemented in March 2009 as a result of initial recommendations from the TSOP update. These changes were incorporated into the TSOP update under Phase 1 improvements. Near -term improvements included the elimination of one low - productivity route, the addition of one new route (Route 19 with service between CSU and Front Range Community College via Shields) and minor changes to the schedules of seven routes to enhance efficiency. PHASE I An overview of the Phase 1 recommendations follows: Local Services: Relocation of the South Transit Center (STC) to the MAX terminus at a location off of Fairway Lane 287 ' August 18, 2009 • Assumes the implementation of MAXservice along the Mason Corridor from the DTC to the proposed new STC • Proposes some new services and realignment of existing routes along Elizabeth, University, Horsetooth, and Drake • Recommends the extension of hours on select routes so that early evening service (until 8:30 PM) is provided on weekdays and Saturdays • Recommends improved service frequencies on CSU routes and proposes a new numbering system for CSU routes • Includes a proposed new Downtown circulator that would be operated by Transfort, but would most likely be funded through public/private partnerships. Poudre School District Services • Includes afternoon service via two dedicated local routes that serve Lincoln Junior High and Poudre High Schools • Recommends improved access to Rocky Mountain High School via Shields. Regional Services • Proposes modification of the FoxTrot route so that it connects to the proposed new STC in Fort Collins (terminating at the existing North Transfer Center in Loveland). PHASE 2 Phase 2 recommends significant expansion of transit service in Fort Collins as well as expansion ofregional connections to Denver. Partnering strategies between participatingjurisdictions would likely be considered for implementation of regional services. This Phase assumes the continued refinement of local routes to coordinate with MAX. Phase 2 introduces a transition to a grid network in Fort Collins and provides greater route coverage, higher service frequencies, and increased service hours. An overview of the Phase 2 recommendations follows: Local Services • Proposes anew PVH Harmony Campus Transit Center in the vicinity of Harmony Road and Timberline Road • Introduces the transition to a grid route configuration • Recommends 15 new or reconfigured grid system routes with improved peak hour .service frequencies • Recommends 10 routes with early evening service (until 8:30 PM), two routes with late evening service (until midnight), and 16 routes with Saturday service. Poudre School District Services Provides greater public transit coverage near PSD high school student residences Proposes increases in service frequency in the vicinity of Fort Collins, Rocky Mountain and Fossil Ridge High Schools. 288 August 18, 2009 Regional Services • Recommends a new regional route connecting Fort Collins, Loveland, and Denver • Proposes Saturday service for the regional route connecting Fort Collins and Loveland, as well as late evening service (until midnight) on weekdays and Saturdays. PHASE 3 Phase 3 recommends additional transit growth in Fort Collins including longer service hours and limited Sunday transit service, as well as expansion of regional service to Denver, Berthoud, Boulder, and Longmont. Partnering strategies would likely be considered for implementation of regional services. This Phase assumes the implementation of additional MAX services that extend outside of the Mason Corridor and completes the transition to a full grid network in Fort Collins. Attachment J is a map of service improvements recommended for Fort Collins as part of Phase 3. An overview of these recommendations follows: Local Services • Proposes two new Express routes utilizing Mason Corridor to minimize transfers for high demand travel patterns and increase service frequencies along Mason Corridor • Proposes late evening service (until midnight) for all Express and MAX routes on weekdays and weekends • Proposes extended service hours with 12 routes offering early evening .service and four routes offering late evening service • Recommends additional Saturday service on select routes • Recommends Sunday service for seven routes • Includes the complete transition to a grid route configuration • Recommends increased service frequencies on most routes • Proposes new service to the Mountain Vista area. Poudre School District Services Proposes improved connections and service frequencies to Fort Collins and Fossil Ridge High Schools Recommends additional public transit coverage for PSD high school students including longer service hours and greater opportunity for connections to FRCC and CSU. Regional Services • Proposes a new route providing connections between South Fort Collins, Loveland (Centerra), Longmont, and Boulder with additional Saturday and Sunday service • Recommends reconfiguration of a regional route to provide service between Fort Collins, Loveland, Berthoud, and Longmont and introduces Sunday service • Recommends additional early evening service and late evening service for regional routes. U31 August 18, 2009 Chapter 6 - Capital and Operating Requirements Transfort operates a total of 18 fixed routes, including the FoxTrot regional route connecting to Loveland, and a complementary paratransit (Dial -A -Ride) service. Twenty-three vehicles are deployed for the fixed -route service during peak weekday operations. The total operating and maintenance (O&M) cost was approximately $8.2 million in 2008; with 75% ofcosts associated with fixed -route services, 4% with regional service, and 21 % with Dial -A -Ride service. Phase 1 services include: • 19 fixed routes including the Mason Corridor MAX and I regional route • 26 local vehicles and I regional vehicle • Over 30% more revenue hours • Approximate increase of$3.3 million in annual O&Mcosts from 2009 (assuming an inflation rate of 5 % over 3 years). Phase 2 services include: • 20 fixed routes including the Mason Corridor MAX and 2 regional routes • 38 local vehicles and 4 regional vehicles • Approximately 110% more revenue hours for fixed -route services as compared to 2009 operations • Approximate increase of$10.6 million in annual O&M costs from 2009 levels (assuming an inflation rate of S% over 5 years). Phase 3 services include: • 22 routes including three Mason Corridor MAX routes and 3 regional routes • 41 local vehicles and 10 regional vehicles • Approximately 170% more revenue hours as compared to 2009operations • Approximate increase of $17. 7 million in annual O&M costs from 2009 levels (assuming an inflation rate of 5 % over 7 years). Regional services under each phase represent proposed routes that connect Fort Collins with other Front Range communities. Therefore, implementation and funding requirements would likely be undertaken as part of partnership arrangements. Several capital improvements would be required to support the phased operational recommendations for the Transfort TSOP update. This includes both vehicle requirements and facility improvements. Transfort's existing fixed route service requires an overall fleet of 30 active vehicles. The mix of vehicle types includes 26 standard 40 ft. transit buses and 4 mid -sized 35 ft transit buses. The Mason Corridor MAX BRT service will require 60 ft. low floor alternative fuel buses. Compressed Natural Gas and Bio-Diesel are used for operation of the 30 buses in the existing Transfort fleet. 290 August 18, 2009 Eleven vehicles in the Transfort fleet are currently scheduled for replacement. This will require an investment of approximately $4.4 million independent of any proposed service expansions. Phase I also requires an investment in additional replacement vehicles and new buses for the Mason Corridor MAX service. Mason Corridor buses will be funded through a Federal Transit Administration (FTA) Small Starts Grant. Due to the two routes being replaced by MAX, 3 fewer vehicles are needed for the remainder of the improved local fixed -route system. The cost associated with replacement vehicles for Phase I would equate to approximately $6.5 million. Phase 2 would require: 50 vehicles,17 vehicles over Phase 1, which would be approximately $8. 7 million. Phase 3 would require: , 60 vehicles,10 vehicles over Phase 2 plus replacement vehicles that reach end of useful service life, which would be approximately $8.4 million.. Transfort may be able to secure funding contributions for up to 80% of vehicle costs through Federal Transit Administration programs such as the Section 5309 Capital Funding Grant. If Transfort is successful in securing federal capital funding, the total local cost of vehicle acquisition for all phases could be substantially reduced. - Several additional facility requirements would be necessary with the recommended phased improvements. Fleet expansion associated with Phases 2 and 3 would exceed the capacity of Transfort's current bus storage facility, which has some additional storage capacityplanned for the Mason Corridor MAX vehicles. This could be addressed through reconfiguration and expansion of the current facility onto adjacent land, purchase or construction of a new supplemental facility, leased facility arrangements, or utilization of facilities that are provided through a contractor. The 2009 TSOP update assumes that Transfort's current contract with NextMedia would support the need for additional transit stops; therefore, no additional capital expenses for standard bus stops are reflected in this plan. Finally, each Phase involves some form of transit infrastructure improvement to support the proposed service enhancements. The magnitude and extent of these improvements would requirefurther definition as the implementation planning is undertaken in each Phase. Phase I requires various capital components related to MAX BRT service, including a relocated South Transit Center and new outdoor bus storage, as well as a University Avenue transitway through a short segment of the CSU campus. Phase 2 requires a new PVHHarmony Campus transit center a'nd expanded maintenance facilities. Phase 3 includes the addition of a bus turnaround facility at Elizabeth and Overland Trail. 291 August 18, 2009 Chapter 7 - Implementation The citizen's Financial Advisory Committee (FAQ was organized by Transfort and COLT staffand met on a semi-monthly basis from November 2008 to April 2009 to evaluate and recommend funding strategies for implementing the recommended phased improvements. Early in the process, FA members and staff acknowledged. that defining a fair and practical funding plan meant balancing many disparate factors. A wide variety of revenue generation mechanisms and institutional structures. were evaluated by the FAC as potential ways to generate and collect funds for transit improvement. The FAC selected a mix of funding mechanisms that offer what it determined to be a fair appointment of costs and reliable revenue production. Current sources of revenue for Transfort include a large general fund transfer and revenue from the federal government. Other Transfort revenue sources include a negotiated agreement with the Associated Students of Colorado State University (ASCSU), farebox revenue, and advertising on buses, bus benches and bus shelters. Estimated revenues for Transfort were compared to the estimated O&M costs for the proposed phased improvements. This analysis resulted in the identification offunding shortfalls for O&M costs tinder each phase, summarized in Table 1. It should be noted that regional services would likely be implemented through a .shared funding arrangement with other jurisdictions, and the shortfall would not be the full responsibility of Transfort. Table I - Projected Annual O&M Funding Shortfall for Transfort Phased Improvements Funding Short all Phase 1 Phase 2 Phase 3 Transfort Local S2,695,600 S7,257,000 S11, 258,100 Regional S36,450 S632,100 $2,402,250 Total S2,732,050 $7, 889,100 S13, 660, 350 Estimated capital costs for vehicle acquisition for Transfort and COLT were also compared to the minimum estimated federal.funding sources that would likely be available. This analysis resulted in the identification of funding shortfalls for capital costs under each phase, summarized in Table 2. Table 2 - Projected Annual Capital Funding, Shortfall for Transfort Phased Improvements Funding Shortfall Phase 1 Phase 2 Phase 3 Transfort Local S5,932,550 $6, 047, 300 S3,402,400 Regional N/A S1,381,550 $3,639,600 Total S5,932,550 $7, 428, 850 S7,042,000 Source: Transfort and DEA Project Team 292 August 18, 2009 The FAC recommended a series of funding mechanisms, all designed to allocate the costs of Transfort and COLT services to those that benefit from them. The following funding mechanisms were chosen based on their ability to provide a reliable revenue stream and to grow with the community. Funding mechanisms options that could be considered for future implementation for Transfort and COLT include: • Maintenance of Effort — The continuation of municipal general farad revenues with a growth in fares commensurate with an increased level of service. • Dedicated Sales Tax —An excise tax on retail goods imposed to the point of sale. The FAC recommended a 1/4-cent tax. • Transit Utility Fee —An additional fee charged to residential and business utility accounts. • New Negotiated Agreements — The active investigation ofnew partners, including PSD and Front Range Community College, as well as the renegotiation of current agreements. • Special Assessment — An annual per household or square foot charge placed on property within a special improvement district. The FAC also recommended the investigation of the feasibility and practicality associated with the formation of a Regional Service Authority (RSA) to serve in the administration, organization, and consolidation of transit operations for Fort Collins and Loveland. An RSA is a form ofgovernment designed to provide specified services on a regional basis; in this case, public transportation. The FAC recommended a RSA because of its potential revenue raising authority, inter jurisdictional flexibility between Fort Collins and Loveland, ease offormation, and public acceptance. The FAC specifically recommended the investigation ofa RSA structure with no internal funding mechanisms, meaning that each jurisdiction must raise its own funds and purchase transportation service from the RSA. Fort Collins and Loveland are the most likely candidates to purchase services from the RSA, although other jurisdictions would be able to raise funds by any means when theyjoin the RSA. Further study of a regional transit provider is recommended as an action item of this report. Implementation Timeline The 2009 TSOP Update was developed based on a potential implementation horizon offive to seven years from initiation. A phased approach for the TSOP has been proposed to serve as a framework for implementation priorities and to allow for the opportunity to scale new improvements and investments to future available funding sources. The ability to secure new or additional,funding sources will be critical in achieving full build -out of all three proposed phases. Successful implementation and meeting the desired timingfor phased improvements will require that the funding mechanisms described in the previous sections are in place early on for full implementation. This is necessary to build capital reserves that are needed for the purchase ofnew vehicles. Ongoing revenue streams from future revenue sources will then be used to fund annual operating and maintenance costs for expanded transit services. 293 August 18, 2009 Other Implementation Considerations The previous 2002 TSOP presented a number of key considerations that require attention as new transit services are considered for implementation. Many of these tasks are routinely addressed when any level of service refinements are undertaken. These common planning steps, operational issues and guidelines for many of these tasks are briefly summarized below: Dates for Start of New Service — Implementation target dates should consider the necessary steps for Council approval and public process. In addition, vehicle procurement should be carefully coordinated with scheduled implementation. Summer is often a common season to implement substantial route changes in university communities, which allows drivers to become more familiar with services before school sessions and winter weather begin. • Ridership and Customer Impacts — Changes in ridership trends should be monitored to determine issues with system familiarity and the level of benefit realized from new route configurations. Ridership trends after several months provide the best indication ofservice change results. • Further Service Revisions — Early service refinements may be necessary if new routes are not operating or performing as desired. Schedule times, safety, peak load and demand points, transfers and complaints should be monitored to determine if early route revisions are necessary. • FTA Grant Funding for Vehicles — The potential to secure grant funding for future vehicle purchases should be identified as soon as possible. The timing for the grant application process and vehicle procurement could effect the desired implementation dates for new service. • Responsibilities of Transfort Staff — New staff responsibilities related to service changes include new marketing and informational materials, hiring of new drivers, schedule conformation, and development of new bus stops and signage. Monitoring An efficient monitoring process can provide significant value for making ongoing service refinements, future operation planning, and can supportfuture budgeting requirements and financial decisions. Two types of monitoring are recommended to assure the continued effectiveness and efficiency of transit services for Transfort —trend analysis and peer system comparisons. Trend analysis compares current operating data with historical data to establish trends in service efficiency and effectiveness. Peer system analysis can be conducted on an annual basis using statistics from other peer agencies and the National Transit'Database (NTD). Ideally, the peer group should be selected based on some common characteristics such as population of the area, existence of higher educational institutions, system fleet size,'annual vehicle hours or annual vehicle miles of service. 294 August 18, 2009 Performance standards for three representative transit agencies were reviewed to examine other typical procedures for service monitoring. Representative agencies included the Metropolitan Atlanta Rapid TransitAuthority (MAR TA) in Atlanta, Georgia, the Regional Transportation District (RTD) in Denver, Colorado, and Pierce Transit in Tacoma, Washington. Each agency uses similar monitoring tools, statistics and metrics to document their relative route productivity and performance. However, the methods employed for making decisions on service adjustments or changes differ somewhat among agencies. The case studies provide a good range of techniques for grading route performance and categorizing routes based on relative levels of efficiency and cost- effectiveness. Future Action Items A set of action items have been developed to guide the key steps for future phased service implementation. These items listed below will include responsibilities among Transfort, the City of Fort Collins and future transit service partners. • Confirm the feasibility of route changes and new facilities based on physical opportunities and constraints. This includes all street configurations used for new transit routes, the University Avenue transitway on the CSU campus, and the new PVH Harmony Campus Transit Center. • Develop transit service standards or guidelines for remaining Enhanced Travel Corridors. • Undertake afeasibility study regarding the establishment ofa regional transit provider that could provide services for two or more jurisdictions in the North Front Range with a completion date by December 31, 2010. • .Identify and confirm the future funding sources that will be sought for plan implementation. • Initiate discussions with potential downtown Fort Collins partners to implement the recommended circulator route. • Undertake discussions with the Poudre School District regarding a negotiated agreement for a transit service partnership. • Initiate discussions with potential partner jurisdictions for the implementation of new regional services. • Develop aformalized transit system performance monitoringprogram andnewpetformance standards. • Initiate federal funding applications for future transit system capital requirements. Jeff Scheick, Planning, Development and Transportation Director, noted the Transfort Strategic Operating Plan is an update to the 2002 Plan and reflects existing conditions in terms of population 295 August 18, 2009 and travel patterns. The proposed Plan has three phases to build -out in order to achieve a full grid system, including the Mason Corridor Project. Kurt Ravenschlag, Assistant Transfort General Manager, stated the Transfort Strategic Operating Plan has been developed in collaboration with the City of Loveland and the Poudre School District. The goals of the Plan were designed to meet the Transportation Master Plan and City Plan goals, help the City meet its 2008 Climate Action goal, and develop a transit system that meets the needs of the community. A large part of the process of developing the Plan included much community outreach. The most requested improvements to the transit system were the request for increased hours of services, frequency, implementation of a grid system, and regional connections. Three phases have been developed to implement the proposed Plan. Phase One includes the Mason Corridor Project. Phase Two begins the transition to a grid network, including additional regional service. Phase Three provides more convenient service by increasing the frequency of the routes and additional hours of service. Financial plans have also been developed to implement the three phases of the Plan. Phase One fixed -route service within Fort Collins has estimated annual operating costs of about $9 million. The estimated costs are based on an implementation date in two years and do not reflect 2009 operating costs. Any regional fixed -route service that is implemented would likely be a partnership with the participating communities. Phase Two will provide an increase in the local fixed -route service with an estimated annual operating cost of $15 million and will provide a regional service between Fort Collins and Denver. Dial -A -Ride services will also increase because the area of transit service has increased. Phase Three increases the amount of service provided, with an estimated annual operating cost of about $19.7 million for the local fixed routes. Expansion of the transit system will require the purchase of more vehicles and capital expenditure. The current system has a need for replacement buses at an estimated cost of $4.4 million. Implementing Phase One will require capital expenditure of $6.5 million and Phase Two will need $7.1 million, plus a regional need of $1.5 million. Phase Three has a need for $4.5 million for local fixed -routes and $3.9 million for regional routes. Federal grants are available to help with the capital needs. Transfort currently receives the majority of its revenue from the City's General Fund. Federal grants provide about 15% of the current revenues. Staff projects a shortfall of $11.2 million for operating and maintenance costs to fully implement Phase Three. Implementation of the regional component of the Plan is estimated to have a $2.4 million shortfall. The regional service would be a partnership of communities and the cost would be shared among the partners. The capital shortfall is estimated at $15.3 million to acquire the necessary equipment to implement the Plan through Phase Three for the local fixed routes. The Phase Three regional service is estimated to have a $5 million shortfall in capital funds. A citizen's Financial Advisory Committee (FAC) was organized by Transfort and Loveland COLT staff and met on a semi-monthly basis from November 2008 to April 2009 to evaluate and recommend funding strategies for implementing the recommended phased improvements. The Committee recommended continuation of current funding streams, increase sales tax by 1/4 cent, a transit utility fee, pursuing new negotiated agreements with other entities in Fort Collins that are 296 August 18, 2009 similar to the agreement the City has with CSU, and formation of a special improvement district. The Committee also recommended the creation of a regional transit provider as a means to capitalize on economy of scale, cost sharing and to provide ways to better leverage state and federal grants. Implementation of the Plan is dependent on resources that are available. Staff will add the phrase "if resources are available" to the.current Plan document. Staff will pursue all potential future funding sources to implement the Plan. Eric Sutherland, 631 LaPorte, thanked staff for the financial analysis provided with the proposed Plan. Transfort currently collects a percentage of utility bills in the form of payments in lieu of taxes (PILOTS), collected on electricity and water sales within the city. PILOTS are added to the General Fund, from which Transfort receives funding. Fort Collins is undercollecting PILOTS in comparison to other Front Range cities. Developing transit service from Fort Collins to Denver would be very beneficial to CSU students and the community. Kevin Cross, 300 Peterson Street, Fort Collins Sustainability Group member, stated the Group supports adoption of service upgrades contained within the Transfort Strategic Operating Plan but it has concerns about the possibility of a transit utility fee and 1/4 cent sales tax increase. The fee and sales tax increase are regressive funding mechanisms because they have a proportionally larger impact on lower income households. The City should investigate funding for the transit system through a higher percentage of revenue from property taxes and fees associated with automobile use. Stacy Lynne, 216 Park Street, stated Transfort receives less than 4%of its revenues from rider fares. Transfort does not contribute any funds for road maintenance. The cost of implementing the Plan is too high. She did not support the use of a transit utility fee to provide revenue for the Plan and requested the voters be allowed to approve any fee enacted to support the Plan. Fred Kirsch, 509 South Bryan, Community for Sustainable Energy member, stated his group has surveyed over 4,300 people about their expectations from the transit system. The results of the survey show less than 15% of the population currently use the transit system but 87% say they will use the bus, if it functions properly. A ballot initiative to increase the sales tax by 3/4 cent would most likely pass because the survey also showed people are willing to pay a higher sales tax rate to support a better bus system. He requested the proposed Plan be put on "the fast track" to be implemented as quickly as possible. - Mary Atchison, Fort Collins resident, Pathways Past Poverty representative, encouraged Council to adopt the Transfort Strategic Operating Plan because transportation is the key to economic development and economic opportunity. Pathways Past Poverty has the goal of a assisting in the development of a comprehensive transit and paratransit system that allows those who need it to be mobile across the Front Range. ,James DuPray, Fort Collins resident, supported adoption of the Transfort Strategic Operating Plan. Dan Gould, 623 West Mountain Avenue, stated a high -functioning transit system provides economic opportunity for the community and vehicle miles traveled could be lessened with a better bus system. 297 August 18, 2009 Phil Friedman, 201 South Grant, urged Council to adopt the Transfort Strategic Operating Plan. The existing bus system is difficult to use and implementation of the Plan will greatly increase ridership and ease of use. Sarah Allmon, 1200 East Stuart, Public Transit Action Group member, stated she is transit - dependent and the current system is very limiting. She urged Council to adopt the Plan and put it into action as quickly as possible. Reiner Lomb, 6718 Avondale Road, supported adoption of the Plan because improvement of the transit system will greatly increase the number of riders and benefit the community. Marcia Fitzhorn, 2101 Rollingwood Drive, stated transit is a need for many in the community and she urged Council to adopt the Plan. Other methods of financing should be considered before a transit utility fee is considered. Eric Levine, 514 North Shields, Air Quality Advisory Board, stated the Board unanimously supports adoption of the Plan but has some concerns with the recommendations for funding. The Air Quality Board would like special accommodations considered for low income citizens. Marketing will be a large factor in increasing ridership when the transit system is improved. Gary Thomas, 757 Cherokee Drive, Transportation Board Chairperson, stated the Board has endorsed the Plan and encouraged Council to adopt the Plan. More of the community will need transit in the future and the Plan is a good start to develop a system that meets the needs of the community. Cheryl Distaso, 135 Sunset, supported adoption of the Plan but she expressed concerns with the funding recommendation to use a transit utility fee. The Plan does not state any difference in fee between commercial and residential or any accommodation of lower income households. Bruce Lockhart, 2500 East Harmony, did not support adoption of the Plan because citizens will not use the transit system. Nancy York, 130 South Whitcomb, urged Council to adopt the Transfort Strategic Operating Plan. Jim Bertolim, 1754 Heritage Circle, stated the Plan will benefit the region and he urged Council to adopt the Plan. Councilmember Roy asked what considerations have been given to make the future funding of the Plan as equitable as possible because several citizens raised concerns about the possibility of a transit utility fee being inequitable for lower income households. Ravenschlag stated the funding recommendations from the Financial Advisory Committee were included in the Plan to begin the discussion of funding the shortfall. Multiple forms of funding were considered by the Committee, including an increased sales tax, property tax, head tax, and fees. The Committee has recommended a transit utility fee to provide a portion of the funding. Staff notes this is one recommendation of many options that are available to implement the Plan. 298 August 18, 2009 Councilmember Kottwitz asked for an estimate of the cost of establishing a transit authority. Ravenschlag stated the cost to pursue a feasibility study that would examine the possibility of establishing a regional transit provider would cost approximately $25,000450,000. Staff intends to request federal transit administration grants to fund the study. Councilmember Kottwitz asked if there were any requirements for buses to provide car seats for small children. Ravenschlag stated the Department of Transportation does not have any regulations requiring seat belts or car seats in heavy duty coaches. Councilmember Troxell asked what percentage of the total capacity of the current system was in use. Ravenschlag stated the current threshold is 20 passengers per bus per hour for all routes. Certain routes that serve the CSU campus operate at much higher levels while other routes operate with fewer than 20 passengers per hour. Many routes are overcapacity and the bus driver must leave passengers at a bus stop to catch the next bus. The load capacity for a bus includes seating capacity plus standing capacity. Councilmember Troxell asked what increase in ridership is expected with the implementation of the Plan. Ravenschlag stated ridership projections through the implementation of Phase Three is expected to increase by 120%, compared to current ridership levels. Councilmember Ohlson asked for the timetables for the three Phases. Ravenschlag stated the proposal has a five to seven year implementation plan, with Phase One proposed for implementation in 2011-2012, Phase Two to be implemented in 2013-2014 and Phase Three to be implemented in 2015-2016. The implementation plan was developed to provide an estimate of the costs of each Phase. Councilmember Ohlson asked if the timetable was realistic, in terms of securing funding for the Phases. Ravenschlag stated funding and implementing the Plan will be extremely challenging. The public outreach process showed an improved transit system is important to the public. The Plan is designed to provide the necessary information if Council decides to implement the Plan. Councilmember Ohlson asked if the funds raised from a possible 1/4 sales tax increase would be in addition to funds that Transfort already receives from the General Fund. Ravenschlag answered in the affirmative. City Manager Atteberry stated the current downturn of the economy does make it difficult to discuss the Plan, which has very big goals. Fort Collins is far behind many of its peer communities in terms of transit services and multi -modal options. Funding the Plan will be very challenging but the goals stated in the Plan will greatly advance transit in Fort Collins. Councilmember Ohlson noted the cost estimate for Phase Three indicates there will be a shortfall of $20 million per year for capital improvements. He asked if most of the funds from capital needs, such as purchasing new equipment, is currently provided by the federal and state government. Ravenschlag stated the federal and state government do currently provide most of the capital funding for transit needs. In the future, it is likely the federal government will provide only a portion of the FIR August 18, 2009 capital funding to offset the projected $20 million shortfall. City Manager Atteberry noted the federal government is providing fewer dollars for operation and maintenance of transit systems but the capital funds from the federal government appear to be staying fairly constant. Ravenschlag stated one way to address capital costs is to use excess funding that would be generated in the early years from a new funding mechanism, such as an increased sales tax, to cover capital costs until the full system was built out. City Manager Atteberry stated other Front Range communities such as Boulder, Arvada, Westminster, Aurora and Denver have a one -cent sales tax dedicated to transit. A 1/4 cent sales tax increase would generate $5.5 to $6 million per year. Mayor Hutchinson stated there is no cost to approve the Plan, which contains goals for the City to accomplish. Approval of the Plan does not institute any fees, increase sales tax or approve a regional authority. The Plan contains funding options to consider, but funding is not under consideration at this time. City Manager Atteberry stated the benefit of adopting a Plan is to provide a blueprint for the future. If unexpected funding becomes available, having a Plan in place is necessary for the City to be able to compete for those funds. Councilmember Manvel asked for an explanation of a "circulator" route. Ravenschlag stated the circulator route would be located in the downtown area, would provide connections to arts and cultural destinations, complement the Mason Corridor, provide connections to various parking garages and the various breweries, located just east of downtown. Councilmember Manvel asked if any new technologies will be considered to inform riders of bus schedules through cell phones because such technology would make the service more user friendly and increase ridership. Ravenschlag stated the Mason Corridor Project includes many user friendly technologies. NextBus technology, which allows information to be provided to passengers whether at a station, on cell phones or PDA, would be a desirable feature for the entire transit system. An IT strategic plan was not included as part of this Plan. Councilmember Kottwitz asked what were the concerns of the Economic Advisory Commission and the Transportation Board. Ravenschlag stated the Economic Advisory Commission had differences of opinion concerning the funding mechanisms to be used for the Plan. Some members did not agree that investment in public transportation would provide potential economic benefits. One member of the Transportation Board voted against the Plan because the entire document was not available to the boardmembers at the meeting and the member was not comfortable voting for the Plan without first seeing the entire Plan. Councilmember Roy asked if the City would support the development of Amtrack through Fort Collins. Kathleen Bracke, Director of Transportation Planning and Special Projects, stated the City has been approached by an organization to examine different possibilities for future Amtrack service to Fort Collins. Staff is currently researching the possibility and will provide Council with more information at a future date. Councilmember Roy asked for the cost of fully funding the Master Street Plan. Bracke stated, based on the 2004 Transportation Master Plan, there is a gap in funding of almost $1 billion that would be necessary to build out the City's full Master Street Plan. The Transportation Master Plan will be 300 August 18, 2009 updated in 2010 to reassess the City's Master Street Plan, along with the City Plan update. Jeff Scheick, Planning, Development and Transportation Director, stated the City will have about $125 million, over the life the Transportation Master Plan, to do the improvements identified in the Plan. The remainder is unfunded. ("Secretary's note: The Council took a brief recess at this point in the meeting.) Councilmember Roy made a motion,'seconded by Councilmember Poppaw, to adopt Resolution 2009-079, with the addition of the phrase "if resources are available for the feasibility study" to the Plan, as indicated by staff and to add a new whereas clause which states "Whereas, because transit mobility is crucial for every citizen, the Operating Plan recognizes that public transit funding should not be regressive, and should instead provide protections, such as rebates, to the economically disadvantaged; and." Councilmember Poppaw stated many comments received during the public outreach for the Plan shows people overwhelmingly want expanded routes, increased service and longer hours. A high functioning transit system is essential to Fort Collins. Councilmember Troxell stated the Plan provides a comprehensive framework for future transit needs. Future discussions about funding the Plan will require much public involvement. Councilmember Ohlson asked if adoption of the Plan included approval of the recommendations from the Citizen Financial Advisory Committee concerning funding the Plan.. Ravenschlag stated adoption of the Plan does not include any approval of funding options. Councilmember Ohlson stated he supported the Plan but did not support all the funding recommendations from the Citizen Financial Advisory Committee. Councilmember Manvel stated the Plan is very ambitious and the timetable will be difficult to achieve, but having the Plan in place is essential to developing a superior public transportation system. Public transportation is an important part of the services provided to the community. Councilmember Kottwitz stated collaboration with Poudre School District and the focus on regional transportation are key elements in the Plan. Mayor Hutchinson stated adoption of the Plan is an important first step. Implementation of the Plan and decisions about funding the Plan will be decided in the future by citizens and a future Council. The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, Marvel, Ohlson, Poppaw, Roy and Troxell. Nays: none. THE MOTION CARRIED. 301 August 18, 2009 Resolution 2009-080 Finding Substantial Compliance and Initiating Annexation Proceedings for the Riverwalk Annexation, Adopted The following is staff s memorandum for this item. if[Dl►:��Il/�Y//uA//f1�1 The Riverwalk Annexation is 265.65 acres in size. The site is bounded by 1-25 on the east, Harmony Road on the north, the Fossil Creek Reservoir Inlet Ditch on the west and Kechter Road on the south. Contiguity with the existing municipal boundary is gained along a portion of the northern boundary which is shared with the Arapahoe Bend Second Annexation and a portion of the west boundary which is shared with the Stute Annexation Number Three, the Brookfield Annexation and the Sunrise Ridge Annexation. The property is mostly a former gravel extraction operation and zoned FA-1, Farming District in Larimer County. The requested zoning is T, Transition. The proposed Resolution states that it is the City's intent to annex this property and directs. that the published notice required by State law be given of the Council 's hearing to consider the needed annexation ordinance. The hearing will be held at the time of First Reading of the annexation and zoning ordinances on October 6, 2009. Not less than 30 days prior, published notice is required by State law. BACKGROUND This is a 100% voluntary annexation for a property located within the Growth Management Area. The property satisfies the requirement that no less than one -sixth of the perimeter boundary be contiguous to the existing City boundary. In fact, 31.33% of the boundary is contiguous. According to the policies and agreements between the City of Fort Collins and Larimer County contained in the Intergovernmental Agreement for the City. of Fort Collins Growth Management Area, the City will agree to consider annexation of property in the GMA when the property is eligible for annexation according to State law. Surrounding zoning includes P-O-L, Public Open Lands, to the north, H-C, Harmony Corridor, to the west, U-E, Urban Estate to the west, and P-O-L, Public Open Lands, to the south. Interstate 25 forms the eastern boundary. Planning and Zoning Board Recommendation The Planning and Zoning Board will conduct a public hearing on the annexation and zoning request at its regular monthly meeting on September 17, 2009, and will make its recommendation at that time. The Board's recommendation will be forwarded io City Council in time for First Reading of the annexation and zoning ordinances, scheduled for October 6, 2009. 302 August 18, 2009 Ted Shepard, Chief Planner, stated the property proposed to be annexed is approximately 266 acres and will have a variety of zonings, including employment, public open lands and rural land. The Arapaho Bend Natural Area is located to the north of the property. The initiating resolution is required by state statute and directs staff to publish public notification of the proposal to annex the property. Bruce Lockhart, 2500 East Harmony, asked if annexing the property will create an enclave of other properties on Strauss Cabin Road. The property owners within that enclave do not want to be annexed into Fort Collins. Councilmember Manvel asked if staff has spoken to other property owners on Strauss Cabin Road. Shepard stated the properties are included in the boundary of the Fossil Creek Reservoir Area Plan and in the City's Growth Management Area. The property owners attended all the public meetings held and are informed. The properties are contiguous to Observatory Village and are eligible for annexation. The City's IGA with Larimer County requires the property owners to annex into the City if they want to develop their property, even without the formation of an enclave. The property owners on Strauss Cabin Road are aware of the IGA and the implications of being located within the City's Growth Management Area. An enclave annexation would take at least three years. Councilmember Troxell made a motion, seconded by Councilmember Roy, to adopt Resolution 2009-080. Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none. THE MOTION CARRIED. Resolution 2009-081 Authorizing the Acquisition of Certain Lands for Water Storage and Natural Area, Adopted The following is staffs memorandum for this item. "FINANCIAL IMPACT Funding for the proposed $5.8 million acquisition will be derived from two sources: 55.5 million from Water Utility capital funds that has been appropriated specifically for the development of gravel pit water storage; and $300,000 from the Natural Areas fund. The S300,000 from the Natural Areas fund was previously appropriated for the purpose of land conservation. Future expenses associated with the acquisition will include operational costs associated with reservoir operation and maintenance and restoration of dry land surrounding the reservoir. Reservoir operations will be undertaken by the Utilities department and are expected to be in the range of $10,000 to $20,000 annually. The Natural Areas program will conduct initial restoration of the approximately 50 acres of dry land which is expected to cost in the neighborhood of 5150,000 to S200,000. Maintenance of this land will be folded into the Natural Area Program's annual operating budget and is expected to cost approximately $10, 000 to $15, 000 annually. 303 August 18, 2009 EXECUTIVE SUMMARY Over the last several months, staff has negotiated the acquisition of 128 acres of land and reservoir storage near the southwest corner of Harmony and 1-25 for a price of $5.8 million. The land is owned by Stoner and Company ("Stoner') and is part of the Riverwalk project — a development proposed for the area by Mr. Jay Stoner. The City wishes to acquire the 128 acres for the primary purpose of water storage. About 80 acres of the 128 acres will be used for storing approximately 1, 500 to 2, 000 acre feet of water. The property currently has approximately 800 acre feet of water storage capacity. Under the terms of the City's arrangement with Stoner, Stoner will remove an additional 700 to 1,200 acre feet of material from the site to create additional storage capacity prior to closing the transaction. A secondary purpose of the acquisition will be to conserve an open space amenity along 1-25 near the Harmony intersection. Dry land around the reservoir will be restored and managed by the Natural Areas Program to enhance habitat and recreational opportunities. The agreement with Stoner calls for the City and Stoner to work closely together on the design of the reservoir to achieve the primary objective of water storage, while simultaneously building an amenity that is as aesthetically pleasing, as possible. BACKGROUND City staff originally began working with Stoner on a potential acquisition of the 128 acres in 2008. Negotiations were suspended when it appeared that the property might be annexed to Timnath. However, once the Timnath and Fort Collins GMA issues were resolved and the land in question was clearly going to be within Fort Collins' GMA, negotiations with Stoner recommenced. The site is attractive to the City because it works well for certain water management responsibilities (see below), it also augments the City's efforts to help conserve lands on the 1-25 corridor that lie between major intersections. In this case, the 128 acres adjoins a City -owned natural area to the south, Eagle View. To the north of Harmony lies Arapaho Bend Natural Area. In the future, these properties are planned to be linked by trail. A need for water storage capacity below the City's water reclamation facilities has been recognized for a number ofyears. The purpose of the storage capacityprimarily is to help the City meet certain water management objectives and obligations related to the storage and release of the City's reusable effluent as prescribed by City water rights decrees, and potentially to help enhance flows in the river through Fort Collins. The proposed acquisition is advantageously located below the City's Drake Water Reclamation Facility (DWRF) and its primary function would be to help manage water supplies and reusable effluent in the vicinity of DWRF. The $5.8 million cost of the land and water storage is allocated between the Utilities and Natural Area funds at 55.5 million and $306, 000 respectively. The price for the property was determined primarily by the value attributable to water storage which is calculated to be S2, 750 an acre foot. 304 August 18, 2009 The City has contracted with Mr. Stoner for a storage reservoir capable of holding at least 1,500 acre feet of water and up to 2, 000 acre feet. At 2, 000 acre feet, the total water storage component of the acquisition price would be $5.5 million. If, for some reason, the total certified storage is less than 2,000 acre feet, the City will pay proportionately less money. For example, if the certified storage only amounts to 1, 500 acre feet, then the City would pay $4,125, 000 for water storage plus the $300, 000 for the remaining dry land for a total price of $4, 425, 000. Staff believes that the price for the storage and the land makes good business sense. If, for example, the City were to acquire this property in its current condition, it would likely cost the City substantially more than $5.8 million to both acquire and build the additional water storage capacity. Stoner will benefit from the arrangement with the City in two ways: first, from the proceeds of the sale itself, and secondly, because the company will be able to use excavated material from the site to help fill ponds and gravel pits on the property to the north. This will make the property more readily developable and/or marketable. " John Stokes, Natural Resources Director, stated the Resolution will authorize the acquisition of 128 acres, including 1,500 acre-feet to 2,000 acre-feet of water storage. The property currently has about 800 acre-feet of water storage and the City would not close on the transaction to acquire the property until an additional 700 to 1,200 acre-feet of storage has been constructed by the seller to the City's satisfaction. Once the construction is completed, about 80 acres of the property will be inundated and about 48 acres will be dry land. The purchase price is up to $5.8 million, based on the value attributed to water storage. Each acre-foot of water storage has been valued at $2,750 per acre-foot. The dry land has been valued at $300,000. If the water storage area is less when the project is completed, the price will be adjusted downward. Dennis Bode, Water Resources Manager, stated the water storage will be used to manage the City's reusable effluent. The property is located below the Drake Water Treatment Facility and is close to the Poudre River. The site will need to be recertified that it does hold water and meets the State's specification regarding seepage before the City will complete the transaction. The need for operational water storage was identified in the Water Supply and Management Policy in 2003. The reservoir will be used for day-to-day operations in managing effluent and possibly other supplies and will not used for long-term carryover. The main purpose of storage at this location is to meet return flow obligations as required by law. Another potential use for the site is to help manage water through Fort Collins. The City has surplus water in certain years and the water could be captured in this reservoir and released for another use downstream. Stokes stated the Natural Areas Program will restore and manage the dry land around the reservoir. The Program has long range plans to connect the area with Arapaho Bend and Eagle View and Fossil Creek Open Spaces by trail and acquisition of this property helps the City achieve these long range plans for trail development. Acquiring the property supports the concept that development will be concentrated at the intersections of I-25 and will allow for open space between developments. 305 August 18, 2009 Bruce Lockhart, 2500 East Harmony, asked if the water to be stored in on the property will come directly from the Drake Water Treatment Plant and if acquisition of the property was part of an agreement with Stoner and Company so the property could be annexed into Fort Collins. Gary Wockner, 516 North Grant, Clean Water Action representative, thanked staff for the quick response to his questions about the project. Councilmember Poppaw asked why the Water Board was not consulted about the acquisition of the property for water storage. Brian Janonis, Utilities Executive Director, stated the timing of the transaction and decision to present the possible acquisition to Council did not allow adequate time to present the acquisition to the Water Board, which did not have a scheduled meeting before this Council meeting. The possible acquisition of the property was a confidential matter until the decision was made to bring the matter before Council. Councilmember Poppaw asked why there was such a rush to acquire the property. Stokes stated negotiations for this transaction have been ongoing for several months but the seller has some urgency to move forward with his project. Councilmember Poppaw asked how adding extra water storage to our system will impact other water storage such as Halligan Reservoir. Bode stated the water storage need is different for this project as compared to the Halligan Reservoir project. The water storage on this property would be operational storage and will be located below the Drake wastewater treatment plant. It will serve a different need than Halligan does and will offer additional flexibility in managing the City's water. Both operational water storage and water carry-over capabilities are needed for water storage. Operational water storage meets day-to-day operational needs and long term, carry-over water storage, such as at Halligan, allows the City to store water from a wet year, to be used in a dry year. Councilmember Manvel asked if the Poudre River flows through the property and how the water from the Drake Plant will be delivered to the proposed reservoir. Bode stated the River currently flows east of I-25 and does not flow through the property. Two ditches run along the west side of the property. Staff anticipates working with North Poudre Irrigation Company to carry water through the Fossil Creek Reservoir Inlet Ditch and the water would be transferred into the reservoir from the Ditch. To put the water back into the Poudre River, the water would either be pumped back to the Inlet Canal, then into the Fossil Creek Reservoir and back to the River or a route might be developed to the east where the water would pass through other ponds and back into the River. Councilmember Manvel stated plans are in place to develop the north half of the property, which is located partially in the floodplain. He asked if the water would be routed directly to the reservoir to help make the north half developable. Bode stated the stormwater issues with the property will need to be addressed as part of the development process. Councilmember Manvel noted the dirt to be removed to enlarge the water storage will be used on the north half of the property to enable the development of the property. An acre-foot is 1,613 cubic yards of dirt and 1,200 acre-feet of dirt need to be moved to create the required water storage 9112 August 18, 2009 reservoir. The project is scheduled to be completed by next September. He asked if the schedule of dirt removal is realistic. Bode stated the seller is responsible for the dirt removal. Stokes stated the seller thinks the dirt can be moved within two months. Mayor Hutchinson asked about the consequences if the enlargement of the storage reservoir is not completed by the agreed -upon schedule. Stokes stated the contract requires the completion of the water storage by September 10, 2010 and if that date is not met, the City is not required to close on the sale. The City has the discretion to adjust the price of the property depending on the size of the completed water storage facility. Councilmember Manvel asked why a range of approximately 1,500 to 2,000 acre feet of water storage is part of the contract. Bode stated 2,000 acre-feet would be preferable to provide flexibility for the City's water management. At least 1,500 acre-feet is necessary to improve the City's water management. Stokes noted the seller wants the dirt that will be removed to the north part of the property and has incentive to expand the reservoir to 2,000 acre-feet of water storage. One advantage of this transaction is that the dirt will be moved to the property just to the north. It would be very expensive for the City to move the dirt to a different location. Having the seller move the dirt to the north end of the property provides a win -win solution for both parties. The current water storage on the property already has a liner and site was intended to be used for that purpose. Expansion of the current storage entails digging down to enlarge the reservoir. A liner is already located on the sides and will not be required on the bottom because the expansion will dig down to bedrock that will hold water. The sides of the structure require a liner, which is already in place. The reservoir will have steep sides and deep water, which does not provide good habitat. The Natural Areas Program will take steps to enhance the habitat around the reservoir. Councilmember Roy asked if it will be problematic if the development of the north part of the property does not happen and the dirt just sits for along period of time. Stokes noted the seller must acquire the proper permits to fill the north end of the property that will require the dirt to be placed in a way that diminish the size of the ponds on the property; but that should not affect the use of the property the City wants to acquire. Steve Dush, Current Planning Director, stated the permit the City would issue for removal of the dirt would include a time frame and a site plan that stated the use of the dirt, including considerations of floodplain requirements. Councilmember Ohlson asked how much was paid when the seller purchased the property. Stokes stated the seller purchased the property in the last year and paid about $3.1 million. The contract is not "quid pro quo"and was not negotiated to give the seller incentive to annex into the City,. The $5.8 million the City has agreed to pay for the property includes the value of increased water storage. Currently, the property has 800 acre-feet of water storage and the seller will increase the size of the storage to 1,500-2,000 acre-feet. Councilmember Ohlson asked if the property has any value other than adding land for future trails. Stokes stated the property will include about 50 acres of dry land after the water storage area is completed, which is good for the Natural Areas Program. The current habitat is negligible but will 307 August 18, 2009 be improved with restoration. City Manager Atteberry noted the design of the water storage will be done to create an area that enhances the City's gateway and serve the water storage purpose. Councilmember Ohlson asked Mr. Stoner, property owner, if the north end of the property will be developed with the transit -oriented development project presented to Council at an earlier work session or if the property will be sold to a another developer for different purposes. Mr. Stoner stated he has been working to develop the Riverwalk project for years. Russ Hackstaff, a partner with Turnkey, LLC has worked very closely with Mr. Stoner to develop a plan for the property. Mr. Stoner plans to sell the property to Mr. Hackstaff and Turnkey, LLC, but he will still be involved in the Riverwalk project. Turnkey, LLC is well -qualified to bring the Riverwalk project to completion. The purchase of the south part of the property by the City creates a win -win solution for both the City and the Riverwalk development. The City will acquire needed water storage and the property where the Riverwalk development is to be located will get the excavated dirt, which will eliminate over 265,000 round trips by trucks on streets to bring in the project's needed fill dirt. The dirt will not be piled onto his property, but it will be placed where it needs to be at the time it is excavated. The dirt will be watered and compacted and tested for every twelve -inch lift of the property to ensure the right compaction is achieved. Councilmember Troxell made a motion, seconded by Councilmember Kottwitz, to adopt Resolution 2009-081. Councilmember Kottwitz stated the acquisition of this property will benefit Fort Collins and will also provide economic benefits to the community. Councilmember Roy asked for the life span of the reservoir. Bode stated the reservoir should last 50 to 100 years. Councilmember Roy stated the design of the project will be very important to create a property that enhances Fort Collins. Councilmember Troxell stated City departments worked together to bring this project together and he thanked all parties involved for creating the win -win solution for this property. Councilmember Ohlson stated the outcome of this transaction is good for both the City and the . seller. Councilmember Manvel asked how much of the 128 acres will be under water. Stokes stated about 80 acres will be under water and the remainder will be dry land. Councilmember Manvel stated his hope that staff would return to Council if an adjustment to the contract was necessary to make this into a better project. Stokes stated the next step is to develop a preliminary design, in partnership with the seller. During that process, issues or opportunities that arise to improve the project will be addressed by staff. Councilmember Manvel stated the water storage reservoir will provide a community separator that is strongly desired by the City. 308 August 18, 2009 Mayor Hutchinson stated the acquisition of the property for water storage is a good solution to the issue of operational water storage and will benefit both parties. The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none. THE MOTION CARRIED. The meeting adjourned at 10:15 p.m. ATTEST: City. Clerk` Adjournmc 309