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AGENDA
Council Finance & Audit Committee
April 20, 2020
10:00 am - noon
Zoom Meeting 27TUhttps://zoom.us/j/8140111859U27T
Approval of Minutes from the March 16, 2020 Council Finance Committee meeting.
1. 2020-2021 Budget & Federal /State Updates 30 mins. T. Storin
J. Birks
2. Streets & Traffic Backup Generators 30 mins. B. Hergott
L. Schneider
3. Wood St. SCO /NOC Renovation 20 mins. A. Bromley
Other Business;
Audit Communications Memo
Council Finance Committee
Agenda Planning Calendar 2020
RVSD 04/10/20 CK
April 20P
th
P
2020-2021 Budget and Federal/State Updates 30 min T. Storin
J. Birks
Streets & Traffic Backup Generators 30 min K. Mannon
J. Olson
Wood St. SCO / NOC Renovation 20 min A..Bromley
May 18P
th
P
B-Dam Alternatives and Recommendation 30 min T. Connor
Utility Rebate Consolidation 20 min J. Poznanovic
Code revisions for Self Insurance fund 15 min T. Storin
J. Duval
MMOF Grants 20 min N. Currell
June 15P
th
P
July 20P
th
P
BFO Assumption Review L. Pollack
Future Council Finance Committee Topics:
• Park/Median Design Standards & Maintenance Costs – TBD
• Metro District Policy Update – TBD 2020
• Annual Adjustment Ordinance – Sep 2020
Finance Administration
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
Finance Committee Meeting Minutes
March 16, 2020
10 am - 11:30 am
CIC Room - City Hall
Council Attendees: Mayor Wade Troxell, Ross Cunniff (via phone), Ken Summers
Staff: Darin Atteberry, Jeff Mihelich, Kelly DiMartino, Travis Storin, Nina Bodenhamer,
Noelle Currell, Victoria Shaw, Ginny Sawyer, Carolyn Koontz
Others: Collin Garfield
Kevin Jones, Chamber of Commerce
_______________________________________________________________
Meeting called to order at 10:35 am
Approval of Minutes from the February 24, 2020 Council Finance Committee Meeting. Ken Summers moved for
approval of the minutes as presented. Mayor Troxell seconded the motion. Minutes were approved unanimously.
A. Digital Equity Program Review
Nina Bodenhamer, Director, City Give
SUBJECT FOR DISCUSSION
Digital Equity: A Blueprint for Income-Qualified Internet Rate
EXECUTIVE SUMMARY
The City of Fort Collins is committed to increasing digital equity and reducing the digital divide.
Informed by community poverty benchmarks, today’s presentation is a review of the blueprint for Digital
Equity’s overall program structure, suggested income eligibility, and compatibility with exciting income-qualified
City programs.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
• Objective: Informational and Update Only
• Desired Outcome: Council input regarding Digital Equity’s overall program elements and suggested income
eligibility.
BACKGROUND/DISCUSSION
An income-qualified rate to increase the equitable access to the internet and reduce the digital divide is a
Council and Leadership priority. Recommendations for a Digital Equity program includes three (3) core
components:
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1. Expanded Digital Access to Income-Qualified Households through:
• Reliable, affordable access at high quality and high speeds.
2. Strengthened Digital Inclusion through:
• Promotion and enrollment through the development of user-informed materials.
• Outreach and enrollment via trusted community partners.
3. Coordination with Existing City Income Qualified Programs through:
• Reduced enrollment barriers and complications for clients.
• Leveraged operational efficiencies and economies.
The funding source for Digital Equity is 6% of Connexion revenue paid to the General Fund as payment in lieu of
taxes (PILOT) which drives market parity. Digital Equity launch and reach will be metered by Connexion’s build
out and revenue.
Discussion / Next Steps:
Ken Summers; what is the difference between these two organizations?
Southern Poverty Law Center and Colorado Center on Policy & Law
3
Nina Bodenhamer; similar name but different missions – Colorado Center for Policy & Law is an
advocacy center for Colorado low and moderate income residents - they track and keep benchmarks
on federal programs – how they track – they don’t actually touch any passthroughs - Southern Poverty
Law Center -
Mayor Troxell; AMI - federally supported so they don’t go away and are consistent – how are they
chartered?
Nina Bodenhamer; AMI is through HUD – how housing eligibility is established – it is state
interpretation of federal housing guidelines – it is a pretty rock-solid measure – regional allocations of
support assistance
Mayor Troxell; concern is that the advocacy should be a mission advocacy not a political one
Nina Bodenhamer; 20 years ago we didn’t have that in our vocabulary – Colorado Center for Policy &
Law is using that as a benchmark – it is something to keep our eye on but not tether to – isn’t tied to
any federal or state services.
High altitude – where do we land as a city in supporting our families in need – digital equity and digital
inclusion
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Income Qualified Program - I-Q Landscape.
1 person having this occupation - assumption of one income / one person working in a household of 4
Survey of the community
Mayor Troxell; Comcast Essentials - is that their low rate - has it been posted?
Nina Bodenhamer; As of Friday, they increased their speed - timing of schools closing and students
having to move to online instruction is real and is a driver
Darin Atteberry; we are building a 1+ gig city platform - an intentional statement about digital equity -
we aren’t building a system that scales down - our system scales from 1 gig up - to lower that is a
proactive move to reduce based on some social criteria – an important message
What we have heard from Council is that income level is the driver - it is not a geographic based issue.
5
Ken Summers; make sure it is clear that we are providing 1 gig service but if they have less than 1 gig
they are not marginalized somehow or underserved - understanding the basic premise in terms of
what we can offer and what we are offering regardless if you are a full paying or a subsidized customer.
Darin Atteberry; In Fort Collins where we are building fiber (1 gig) to every premise -
In another community if someone is getting a 100mb service - than that is for that community.
Ken Summers; speaks to that - speed is being enhanced in response to current situation with more kids
needing connectivity for education - if you don’t have access or don’t have adequate service you are
challenged to perform certain basic functions. This is a critical issue.
Nina Bodenhamer; under connected families are a priority - we want them to fully function as a
thriving family. Digital Equity Fund to potentially serve 3,500 households (poorly resourced, under
connected and underserved - doesn’t meet the family needs for digital inclusion.
ACTION ITEM
Ross Cunniff; have we done a market study to try to understand the sweet spot for the digital equity
rate? Are we charging them for a Wi-Fi router?
Nina Bodenhamer; $19.95 rate is what we inherited from Colman - assuming he has done analysis to
land on that rate - Nina will put that on the list and follow up with Ross. Is the wireless router included
in the $19.95 rate? Having all devices in the house online under the same umbrella is critical.
Travis Storin; important - we are somewhat metered for this program by the buildout itself
$1.9M is the assumption at buildout and is based on a market share of 35-40%. As our market share
increases, so would the pool.
Nina Bodenhamer; Toggles to use with projections / models over next 12-18 months;
60% AMI – aligns with our utility incomed qualified programs and housing eligibility
50% AMI – aligns more with free and reduced lunch
Fort Collins has an estimated 16% poverty rate - if controlled for students it would be 12%
State is at 10% Fort Collins is a bit higher
3,500 is based on full penetration - Utility program only hits 2,000 households – still some gaps there –
in terms of how many households. If we take utilities, recreation and financial services rebates. We
still only have 3000 addresses captured so not everyone who qualifies is signing up - a lot of variable
there that we will be looking at.
Darin Atteberry; some of it historically has been - we have tried to up our educational game - getting
out to the providers – for the user it has been challenging because there are so many programs –
looking at consolidating those things. We also hear that some people aren’t comfortable coming down
and applying. A theme that I have heard from the Finance Committee over time is market, market,
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market, simplify it - we have made some real progress but we still don’t have 100% participation but
that is our goal.
Nina Bodenhamer; one of our goals is to come forward with a plan to reduce barriers for enrollment -
including comfort in sharing the information, eligibility need and resident status.
Darin Atteberry; timing is good - doing process review of the various desperate programs that we have,
and better understanding of what the user needs are, what are the opportunities to get better at the
programs distributed throughout the organization - resource a 21-22 BFO offer
Ken Summers; this sound good and we are on track.
Nina Bodenhamer; the PILOT fund is metered by build out and take rate - we have that time to drill
down and understand the best service for our community and our capacity. We look forward to
returning with firms details but this is the high level, big picture as of today.
Ross Cunniff; the market that we are trying to address - the cost we are trying to present -
variables for us to figure out to optimize the service that we provide to a segment of our community
Mayor Troxell; Nina, great job - any next steps for Council?
Travis Storin; you will see an offer come forward in the BFO 2021-2022 cycle. Much of that offer will
be informed by what you have seen here. We are testing this with you for support then crafting an
offer that gets to the Council priority.
B. Affordable Housing Fee Waiver Process
Victoria Shaw, Sr. Analyst, Finance
Noelle Currell, Manager, FP&A
Sue Beck-Ferkiss, Lead Specialist, Social Sustainability
SUBJECT FOR DISCUSSION: Affordable Housing Fee Waiver Process
EXECUTIVE SUMMARY
The purpose of this item is to seek feedback on a proposed change to the City’s process for waiving
eligible fees to support Affordable Housing. Fee waivers are available to subsidize the development of
units which serve families that earn up to 30% of Area Median Income (AMI). The proposed change
would be financially neutral to the City and not alter which units are eligible to receive a fee waiver but
would yield staff time savings and benefit prospective applicants.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Is Council Finance supportive of the proposed new administrative structure for Affordable Housing Fee
Subsidy?
7
BACKGROUND/DISCUSSION
The fee waiver program offered by the City of Fort Collins is currently the City’s only mechanism to
specifically incentivize units which serve households that earn 30% or less of AMI. These units are the
hardest to obtain since they have the largest cost gap. Most mechanisms to incentivize Affordable
Housing are available for units that serve up to 80% of AMI. The table below illustrates the 2019 AMI
thresholds for the Fort Collins – Loveland MSA.
Number of
People/Household Median (100%) 45T80% AMI45T 60% AMI 50% AMI 30% AMI
1 $61,100 45T$48,85045T $36,660 $30,550 $18,350
2 $69,800 45T$55,80045T $41,880 $34,900 $20,950
3 $78,500 45T$62,80045T $47,100 $39,250 $23,550
4 $87,200 45T$69,75045T $52,320 $43,600 $26,150
5 $94,200 45T$75,35045T $56,520 $47,100 $28,250
6 $101,200 45T$80,95045T $60,720 $50,600 $30,350
Fee waivers are currently calculated using the sum of eligible fees, prorated by the percent of the
development’s total units which are restricted to serve ≤30% AMI. Fees historically considered eligible
for waiver include:
• City Development Review Fees
• Building Permit Fees
• City Capital Expansion Fees (Fire, Police, Streets, General Government and Parks)
Other fees collected by the City that are not considered eligible for waivers include fees which are
collected on behalf of other agencies (such as Larimer County, Poudre Fire Authority and Poudre
School District) and plant investment fees for utilities. The detailed breakdown of total fees and waived
fees for a recent project can be found in Attachment 2
Since 2015, the City has issued fee waivers on 5 Affordable Housing developments. Those projects
yielded a total of 169 units serving the ≤30% AMI level. After issuing recent fee waivers, City staff from
Sustainability and Planning, Development, & Transportation Service Areas mapped out the end-to-end
process and identified multiple inefficiencies.
Staff between the Service Areas collaborated to identify opportunities to simplify the process. The
proposed new process would include a flat amount per qualifying unit. This amount would be
deposited into a trust account owned by the City and used by the developer to pay any balances owed
to the City. By providing an offset to fees in this manner, all fees are paid and therefore there is no
need to reimburse City departments with backfill funding.
There is a large benefit to the developer in that they would know early in the project the exact amount
of fee offset they will receive (currently this must be calculated and is not solidified until later in the
project). In addition, there is a benefit to developer cash flows as they would not have to bring money
to the project first and wait for reimbursement. For City Staff there would be no need to do iterative
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calculations on waiver amounts nor create a different financial model for each development. The
processing time involved is also greatly reduced by using the trust account method.
Staff recommends the fee offset amount be set to $13,500 per qualifying unit in a new development
project and $5,500 per qualifying unit in a re-development project. These amounts are based on
analysis which calculated what would have been issued to previous projects if they were constructed
under the updated 2020 fee structure. The results of that analysis are included in the below table.
Fixing the amount of the fee offset per unit would be more predictable for the City and for prospective
developers.
While any Affordable Housing units that serve ≤30% AMI currently qualify for a fee waiver, the
individual requests are evaluated, approved, and appropriated separately by the City Council. Council
can then provide direction on which funding sources to use for the appropriation. This would continue
under the proposed fee offset process.
Discussion / Next Steps;
Noelle Currell; we want to change this to achieve process efficiency savings. I personally spent 100
hours on the process for one of our current projects. We are proposing to hold our own cash in a trust
– a much simpler easier process for the developers and a better cash situation as well - they will know
the amount much earlier in the process – the city currently holds trust accounts for some of our larger
developers - much easier as their contractors come in to pull the permit for each individual house -
Mayor Troxell; does this increase the outlay based on the proforma? (chart above)
Noelle Currell; the amount goes up for every development listed because of all of the fee updates that
have happened in recent years.
Travis Storin; the left-hand side of this chart if what they would have paid, and the right-hand side is
based on today’s fee structure for this proposed change in waivers – what would they have paid under
today’s fees.
Ken Summers; Are the yellow shaded boxes what they would pay today? So, we are looking at more of
a process change than a fixed dollar amount. Will it help or hurt contractors and developers?
Project Year Fee
Waivers
# of 30%
AMI Units
Waiver per
Qualifying Unit
Proforma 2020
Waiver Amount
Proforma Waiver
per Qualifying Unit
Redtail Ponds 2015 $ 274,762 40 $ 6,869 $ 512,300 $ 12,808
Village on Redwood 2017 $ 100,708 13 $ 7,747 $ 185,842 $ 14,296
Oakridge Crossing 2018 $ 90,923 13 $ 6,994 $ 172,882 $ 13,299
Village on Horsetooth 2018 $ 352,319 43 $ 8,193 $ 595,737 $ 13,854
Mason Place 2020 $ 326,081 60 $ 5,435 $ 317,572 $ 5,293
TOTAL $ 1,144,793 169 $ 6,774 $ 1,784,333 $ 10,558
Actual Proforma Based on 2020 Fee Updates
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Travis Storin; It is a process change in substance and in form it is a code change so it would need to
come forward to Council for consideration.
Noelle Currell; we had a meeting about this with Housing Catalyst and they were very happy about it
because of the advantage of knowing it much earlier in the process
Ross Cunniff; it would certainly help both the cash flow and the predictability for financing.
Mayor Troxell; is there a downside?
Ross Cunniff; downside would be that we have to appropriate more money into this fund
Ken Summers; I like the win/win slide
Ross Cunniff; Anyone who hasn’t paid their impact fees yet is eligible, right?
Victoria Shaw; yes, any developer bringing a qualified unit - we don’t anticipate any applications until
the second half of 2020 - historically our waivers were only available to housing catalyst, but code
changed, and they are now available to anyone.
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Other Business;
Covid-19 Implications - Darin Atteberry and Travis Storin
This is really the plan to create the plan - nothing prescriptive yet - just awareness - we are seeking any
input you have - very dynamic situation, changing constantly as we learn more
Based on best available information as of today this would impact not only on our investment
portfolio, our sales tax revenue but also on fees and some impact to development review activities as
well. Risk exposure is probably broader on the sales tax side of things – through February we are
ahead by 2%, but these are lagging indicators which is a challenge for us - March taxable sales will not
be known until the first week of May. Identifying trigger points and the work needed to address
Ross Cunniff; this all fits within what was developed in the 1H of 2017 when we had a slow start in
sales tax in the first quarter.
Ken Summers; glad to see this – interesting that the current climate we are in has some significant
issues within our organization that we are being confronted with as well as trying to assess the impact
on our community. Will there be federal funds that will filter down from the state to address some of
the potential local needs?
Darin Atteberry; we are watching that closely - An interesting thought would be if some strings could
be removed from our CDBG funds to make those funds available to help with emergency issues. The
economic health team will be a resource available at the Council meeting tomorrow evening. We are
scrambling just like everyone else to understand that environment. I have talked with most of the
large employers and many of the smaller businesses (20-30 employee range) in town. It is amazing to
me how mindful these folks are around this issue. They are also looking to local government - what
can you do to help (state and federal too). Contractor called me to say - if the city shuts down and you
shut down your building permits services - I have an idea on how to continue inspections….so. lots of
good ideas being floated.
Ken Summers; encouraging to hear - ripple effect throughout the economy - impacting our city
operation more than most realize - an eye opener - we are in this together
Darin Atteberry; - emergency incident - this is different - not one where the flood has ended, or the fire
has moved - this has a moving target. Nuance between declaring an Emergency which is pending and
hasn’t occurred yet - Whereas a Disaster has happened. Proclamation of emergency is really critical to
playing in these conversations. Cadence: when the president declares, the governor declares, the
county declares – kind of hard for the city to not declare at that point.
Mayor Troxell; have been on some calls - SBA - they are doing a number of things related to loans and
payroll
Meeting Adjourned
COUNCIL FINANCE COMMITTEE
AGENDA ITEM SUMMARY
Staff: Travis Storin, Interim CFO
Josh Birks, Economic Health and Redevelopment Director
Date: April 20, 2020
SUBJECT FOR DISCUSSION
COVID-19 Financial Update
EXECUTIVE SUMMARY
The City of Fort Collins leadership team is currently addressing the economic and financial
impacts of the COVID-19 pandemic. The City’s top priority is the public health and safety of the
Fort Collins Community members, but the City must also take proactive steps to support a timely
economic recovery. Work is currently underway in all City departments to assess the impacts to
both revenues and expenses for 2020 and 2021.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Does Council Finance Committee support the guiding principles?
Does Council Finance Committee support the workstreams being developed?
BACKGROUND/DISCUSSION
The City is currently working with numerous entities to estimate the changes in revenues by
revenue stream due to the State’s stay-at-home order. The key factors in forecasting the impact
are the depth of the revenue drop and the length of the recovery. The City’s expectations mirror
national forecasts, i.e., we expect a significant drop in Q2 2020 revenues, with smaller drops in
Q3 and Q4 of 2020, compared to our budget. The forecast for 2021 will follow from the revised
2020 forecast.
Forecasts will be updated continually in the meantime based on March, April and May revenues
and expense reductions agreed to by the City’s leadership team. The City will avail itself of all
federal and state relief funds currently available for which it qualifies.
As senior leadership has met to start addressing the factors facing the City six workstreams have
emerged that will be occurring simultaneously:
- Analysis and Forecasting
- Cost Initiatives / Service Adjustments
- Workforce Alternatives
- Budget Process
- Federal and State Aid
- Communications
Each of these workstreams will play an integral role in taking proactive steps to support the
economic recovery of the City. The six workstreams will each have a lead and support from
different areas of the organization. The teams will make recommendations through a sub-group
of the Executive Leadership Team made up of Kelly DiMartino (Deputy City Manager), Jeff
Mihelich (Deputy City Manager), Travis Storin (Interim CFO), and Teresa Roche (CHRO).
These recommendations will be the basis for decisions being made by leadership team and
ultimately presented to Council.
ATTACHMENTS (numbered Attachment 1, 2, 3,…)
April 20, 2020
COVID-19 Financial Response
Travis Storin, Interim CFO
Josh Birks, Economic Health and Redevelopment Director
2
Agenda
• Guiding Principles
• Governance and Workstreams
• Cost Initiatives / Service Adjustments
• Federal / State Aid Landscape
Guiding Principles (1 of 2)
3
• The community’s needs are first and foremost
• City has a priority to support and retain our greatest asset, our workforce
• City must present a balanced budget
• City will minimize the revenue gap through a variety of strategies, balancing
use of reserves with adjustments to the operating budget
Guiding Principles (2 of 2)
4
• Preserve the City’s financial strength and position the City for the future
• Seek to understand the organizational impacts of the crisis response, crisis
recovery, and the proposed changes to budgets and service levels
• Clearly and frequently communicate the status of our work across internal
leadership and stakeholders, Council, and the community
• Stay nimble and curious as circumstances change
Governance & Workstreams
5
Workstream Lead Support
Analysis & Forecasting David Lenz Extended FP&A community
Cost Initiatives / Service
Adjustments
Jo Cech ELT, Budget & FP&A
Workforce Alternatives Karen Burke HR, CMO, CAO, Finance,
Operational departments
Budget Process Lawrence Pollack Budget Team
Federal & State Aid SeonAh Kendall
Blaine Dunn
All
Communications Amanda King All
ELT sub-group to co-sponsor: Kelly, Jeff, Teresa, Travis
Objectives
6
Revenue Initiatives:
• Monitor the macroeconomic outlook based on the recession’s length/severity
• Work with peer organizations to understand their analysis & plans
• Maintain multiple scenarios during the most uncertain recovery phases
• Develop conditions that inform service add-backs and a return to BFO
Implement strategies to reduce FY20 and FY21 expenses by $14M to $30M
Objectives
7
Expense Initiatives :
• Work with departments to identify programs/activities that can be reduced
• Determine Citywide strategies to reduce FY20 and FY21 expenses
• Delineate citywide guidance vs. department-specific
• Mitigate and communicate service reduction impacts to the community
• Intelligently recommend reserve-funding strategies vs. budget cuts
Implement strategies to reduce FY20 and FY21 expenses by $14M to $30M
Fitting to scenarios (example)
8
Initiative Scenario 1
$14.9M
Scenario 3
$31.5M
Scenario 5
$53.1M
Initiative A x x x
Initiative B x x x
Initiative C x x
Initiative D x x
Initiative E x
……… …… …… ……..
Initiative Z x
9
Federal & State Landscape
Federal CARES Act*
COVID Response Funding Sources
*Many funding sources contained within CARES Act 10
Other Sources
Individuals Government
(Job loss/loss of hours)
Small
Businesses
• Federal
o FEMA
o FTA
• State
o Colorado COVID
Relief Fund
(Business,
Nonprofit,
Government)
o DOLA Emergency
Disaster Fund
(Rent Assistance)
• Private Sources
• State and Local
Governments
o Election
Assistance
Commission
• City Governments
o Coronavirus
Emergency
Supplemental
Funding (CESF)
• Stimulus
Checks
• Expanded
unemployment
benefits
• Payroll Protection
Program
• Economic Injury
Disaster Loan
Emergency
Advance (EIDL)
• SBA Express
Bridge Loans
• SBA Debt Relief
Recovery Funding Status
• Federal Programs Update
• PPP: $247.5 billion approved across 1.03 million loans
• EIDL Loan Advances: Deposits started week of April 13th
• Lots of rule adjustments; creating frustration; gaps exist
• Local: Small Business Relief and Recovery Loan Program
• Partnership with Colorado Lending Source
• Program going live soon; $110,000 in available funds
• Developing county-wide partnership
11
Potential Direction of Federal Funds
• CDBG ($649K) – Propose prioritizing eligible costs not covered by other
sources
• City incurred sheltering & response costs
• Other shelter operation costs
• Emergency assistance for rent, food & utilities
• Other non-profit eligible direct program & response costs
• FTA ($8.7M)
• Fixed route operating expenses
• Some or all of paratransit operating expenses
• Operation and maintenance of Transfort’s fleets and facilities
• Administrative leave
• FAA (~$17M)
• Directed at terminal, hangers, and other capital improvements
12
Next Steps
• April 28 Work Session
• Landscape assessment
• Local, national, and global insights
• Overview of response to date
• Proposed Direction for Funding
• Principles for and Approaches to Recovery
• Overall
• Informing State and Federal Funding opportunities
13
• Does Council Finance support the guiding principles?
• Does Council Finance support the workstreams being developed?
14
Questions for Committee
COUNCIL FINANCE COMMITTEE
AGENDA ITEM SUMMARY
Staff: Larry Schneider / Brian Hergott
Date: 04/20/2020
SUBJECT FOR DISCUSSION
Streets and Traffic Standby Generators budget revision
EXECUTIVE SUMMARY
During the 2019/2020 Budgeting for Outcomes process, offers 35.9 and 35.10 were appropriated
to complete the design, purchase and installation of new emergency backup generators to support
both the Traffic and Streets facilities. The original budget for the project was $340,000. The
generators themselves have been procured and work has started on installation ($240,000 has
been spent); however, several unknowns have arisen, and modifications are needed to complete
the project. In order to complete installation, staff needs an additional $310,000 in funds. At
completion the total project cost will be $550,000.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Is the Council Finance Committee supportive of a $310,000 supplemental appropriation to finish
installation of emergency generators at the Streets/Traffic facility?
BACKGROUND/DISCUSSION
The original budget of $340,000 for three new standby generators at the Street Operations
building, Streets Operations De-icing Command Center and the Traffic Operations building did
not factor in several items that are necessary to complete the project. At the time of the original
budget request, these items were not known issues. The most significant of the impacts follow:
- At the Streets Main building the generator was intended to replace the existing generator
that no longer works. After hiring a design firm and having their electrical engineers
assess the electrical system it was revealed that there would be significantly more work
than originally budgeted: this included rework of the ageing electrical 1600-amp gear and
adding components to allow the generator to function properly.
- At the Traffic Operations building the location of Traffic Operations transformer and the
space available for the generator required demolition and replacement existing exterior
hardscapes.
- The original plan/replacement of diesel generators were switched to natural gas. The
added diesel stored on site would have required additional permitting and reporting at the
State level which the City does not currently have at this co-located facility. Due to this
change, there is also an additional cost for natural gas plumbing.
By October 2019, $240,000 of the original $340,000 budget were encumbered. The electrical
estimates exceeded the remaining budget. Due to the known additional budget need, $100,000
of the original budget lapsed. By allowing the funds to lapse, Staff is coming back to request
only a single additional appropriation to complete the project; the amount to not exceed
$310,000.
Waiting until later in 2020 or allowing the project to be put on hold will put the City at further
risk should a power outage occur. Staff is seeking funds now for several reasons:
- To tie the generators to the buildings, electrical needs to be shut down for as much as 2
days. The summer months and on a weekend is the best time to coordinate these
activities.
- The currently contracted vendors may request to revise their contract amount for
exceeding the current 2020 completion date.
- The already procured generators would sit for an extended amount of time and may
require additional maintenance.
- Streets and Traffic Operations will continue through another year/winter without standby
generators until the Summer of 2021 or later.
Should Council approve the additional funds needed to complete the project, the next step would
be an RFP for the electrical scope and final work during the Summer of 2020.
04/20/2020
Streets & Traffic Standby Generators
Larry Schneider / Brian Hergott
Council Direction Sought
Is the Council Finance Committee supportive of a $310,000
supplemental appropriation to finish installation of emergency
generators at the Streets/Traffic facility?
2
Why do we need Generators?
Streets Need: Can’t get
plows out of garage without
electricity
Traffic Need: Can’t change
any signal timing without
electricity
3
History
• Been without generators for 6 years (1 time where plows could not
get out, spring storm, thankfully the snow melted quickly)
• 2 BFO offers purchased in ’19/’20 budget appropriating $340,000
• Design work began in 2019 along with procurement of three actual
generators (total spend $240,000)
• Design work revealed, unknown items from conceptual estimates
that were used in BFO which came to light
• Staff allowed $100k of original budget for project to lapse at the end
of 2019
• Now seeking appropriation of $310,000 to complete project
4
Drivers of Additional Budget Request
5
• BFO was for replacement of existing generator at Streets Main
building.
• Existing electrical gear is very old and needs to be upgraded.
• It was determined to go with Natural gas fuel in lieu of diesel
• Traffic involves replacement of hardscapes
Original project budget: $340,000 Revised Project Budget: $550,00
Request
• $310,000 requested from Transportation Fund Reserves:
• $100,000 of original budget which lapsed
• $210,000 of additional reserves
• Status of Transportation Fund:
• Known:
• Reserves as of 12/31/2019 – $13.5M
• Unassigned Balance: $1.9M
• Unknown: Impact of COVID-19 on 2020 revenue/spending
6
Council Direction Sought
Is the Council Finance Committee supportive of a $310,000
supplemental appropriation to finish installation of emergency
generators at the Streets/Traffic facility?
7
Backup
8
Project Overview
• Emergency preparedness
➢ Traffic Operations
➢ Street Operations
Main Building
➢ Street Operations De-
icing Command
Center
9
COUNCIL FINANCE COMMITTEE
AGENDA ITEM SUMMARY
Staff: Lance Smith, Director Financial Planning and Analysis
Tim McCollough, Deputy Director – Light & Power
Adam Bromley, Director – Operations & Technology
Date: April 20, 2020
SUBJECT FOR DISCUSSION
Light & Power Supplemental Appropriation for 2020 Wood Street Remodel
EXECUTIVE SUMMARY
Staff recommends bringing forward an off-cycle appropriation package to City Council in May
2020 to fund a budget gap that exists between budgeted money in 2020 and estimated costs of
the 700 Wood Street remodel project.
This package will provide the funds necessary to complete the joint control room and associated
700 Wood Street remodel project between Connexion and Light & Power (L&P). L&P will need
to appropriate $0.9 M from reserves, which has already been included in the Utilities’ financial
rate strategy informed by the 2019 Capital Improvement Plan (CIP). In addition to the
appropriation from reserves, L&P intends to re-appropriate funds from other capital accounts to
obtain the remaining funds necessary to complete the 700 Wood Street remodel project.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Does Council Finance Committee support staff’s recommendation to bring forward an off-cycle
supplemental appropriation from L&P reserves to complete a joint control room facility with
Connexion?
BACKGROUND/DISCUSSION
In 2018, Light & Power included a budget offer for the 2019-2020 BFO process to update the
Supervisory Control Operations (SCO) center; that offer was approved as part of the council
approved 19/20 budget. SCO is the control room for the electric distribution center; electric
system operators direct switching operations in the field and monitor substation and distribution
equipment status to maintain safe, reliable operations of the electric system. SCO is the only area
within 700 Wood Street that was not within the project scope during the remodel in 2016-17.
The 19/20 approved offer’s budget is $950,000 and the scope of work included the following:
• New electric operator consoles replacing existing consoles that are 30+ years old
• A video display system that integrates with the new enterprise level software systems to
display operational system maps, manage outages, perform advanced distribution
management and that replaces the existing paper wall map
• Replacement of existing raised floor at the end of life
• Upgraded lighting and acoustics
• Asbestos remediation
In 2019, it was determined that several functional groups within the Connexion department (at
least 20 employees) would need to be located at 700 Wood Street. Light & Power had already
moved some employees around and out of the building to accommodate the Outside Plant
employees for Connexion; as such, there is little space remaining for additional personnel.
Therefore, Connexion and L&P began discussions to obtain a conceptual design for a remodel
within 700 Wood Street that met the following criteria:
• Integrates the network operations (Connexion) and electric system operations (L&P)
groups into a transparent joint control room facility
• Maintain or exceed the existing level of conference room space
• Accommodates the network engineering staff from Connexion
• Provides office/cubicle space for existing L&P staff that are or will be displaced by
incoming Connexion personnel or the new remodel design
Connexion and L&P spent many hours working with Operations Services, the contracted
architect, the control room design consultant, and general contractor to agree on the proposed
conceptual design (shown in the presentation) for the joint control room and associated remodel
of 700 Wood Street. This conceptual design multiplies the affected square footage of the original
approved budget item by more than 5 (original – 1,823 ftP
2
Pproposed – 9,829 ftP
2
P). It also includes
the following changes not originally included:
• Reconfiguration (moving walls) of SCO including moving the kitchen, break room, and
existing bathroom to create two bathrooms.
• Elimination of existing Poudre, Energy, Horsetooth, and Jetson conference spaces
• Addition of six new conference spaces
• Reconfiguration and displacement of L&P employee workspaces
• Incorporation of network engineering and operations employees and workspaces
• Addition of Connexion lab space
Due to the greatly expanded scope of the project, the estimated cost has grown considerably. The
total estimated cost for the project is $4.37 M; current estimates for each department’s share is
$1.75 M for Connexion and $2.62 M for Light & Power. Staff is currently at about 50% design
with a 20% contingency budget included and we expect to refine these estimates as we get closer
to an 80% design with 20% contingency. Staff has already reduced the total cost by over $0.4 M
by value engineering line items including an additional coffee station and the reconfiguration of
a small bathroom/locker room. Staff is in process to identify other areas for potential value
engineering and cost reductions.
L&P has $0.95 M already appropriated for this work through the 2019/2020 BFO process; the
recommended approach to obtain the funds necessary to complete the remodel project as
described above and to meet the necessary requirements for Connexion and L&P is to:
• appropriate a portion ($900K) from L&P reserves in an off-cycle appropriation and
• obtain the remainder of the funds ($770K) from other capital accounts within L&P.
The off-cycle appropriation amount is included in L&P’s current rate strategy as it was planned
for in the 2019 Capital Improvement Plan (CIP).
L&P provides proposed capital expenditures for each budget cycle to the Utilities finance
department in order to inform electric rates strategy and future increases. As part of the 2019
Capital Improvement Plan (CIP) for L&P, staff anticipated a budget shortfall once discussions
with Connexion began and attempted to include the additional funds necessary through an
appropriation to complete the remodel project. This would allow for the appropriation to be
funded directly through electric rate revenues. The line item included in the CIP for this
appropriation was $0.9 M, which is also short of where the current estimates are. However, this
action demonstrates that more than half of the money needed in the appropriation is already
included in existing electric rate strategy and projections and that only an additional $0.77 M is
needed to what is currently planned.
One option for the additional funds is to re-appropriate unused capital dollars in our Substation
parent account; with all of the capital work currently planned for in the Substations area, it
appears that the parent account would be able to accommodate this re-appropriation. Another
option is for City Council to redirect the approach on annexation projects planned for the next
two years. If those projects were delayed, a portion of the money appropriated from reserves in
January 2020 could be re-appropriated for the completion of this project.
One alternative to the recommended approach above includes an off-cycle appropriation for the
entire $1.7 M funding gap from L&P reserves. This option would be the easiest, but it would not
follow the general direction from the finance department for staff to explore capital projects that
could be delayed in order to help match expected revenue shortcomings. Other options that staff
has explored include:
• submit a 2021 budget offer for the remaining funds – this option delays the project about
six months and also poses the risk for cost escalation
• extreme value engineer to reduce overall cost of the remodel – this option decreases
quality, functionality, and efficiency of workspace
• reduce scope to original approved 2020 BFO offer to include SCO only – this option
eliminates the synergy of creating a joint control room for Connexion and L&P and does
not accommodate any of the Connexion personnel that need permanent space.
Not funding the appropriation results in the delay of a permanent working space for Connexion
network operations and engineering personnel and limiting the full value of the upgraded
enterprise software systems (Advanced Distribution Management System and SCADA system)
in L&P. L&P staff realizes that the timing of this request is unfortunate given the current
financial unpredictability. However, staff is mindful of the potential for revenues to be below
budgeted levels, we don’t anticipate the need for additional off-cycle appropriations in 2020, and
as such staff is confident in the recommendation for this off-cycle appropriation.
ATTACHMENTS
1. L&P 2019 Capital Improvement Plan
2. L&P April 2020 Budget Status
3. NOC-SCO Cost Estimate Breakout
1
Wood Street Remodel L&P Supplemental Appropriation
Adam Bromley
April 20, 2020
Question
Does Council Finance Committee support
staff’s recommendation to bring forward an off-
cycle supplemental appropriation from L&P
reserves to complete a joint control room facility
with Connexion?
2
Strategic Alignment
• 3.5 - Invest in and maintain utility infrastructure and services while ensuring
• predictable utility rates
• 3.6 - Deploy and deliver reliable, high-speed internet services throughout
the community
• 5.6 - Optimize the use of data and technology to protect mission-critical
infrastructure and enhance cybersecurity effectiveness
• 7.6 - Utilize technology, data, metrics and process improvements to
innovate, guide decisions, and enhance service delivery
3
2020 Approved BFO Scope
• Supervisory Control
Operations (SCO)
Center only – 1,823 ft2
• No changes to
kitchen, break room,
or overall layout
• New Consoles, Video
Wall, flooring, lighting,
and acoustics
• $950 K
4
L&P Cost: $0.95 M
Iterative Designs Including Connexion
• SCO, NOC, and
Network Engineering
– 4,110 ft2
• SCO & NOC not co-
located
• $300-360K
necessary to move
Water Engineering
• ~$2.1 M Total
5
L&P Cost: $0.95 M
BB Cost: ~$1.15 M
Current Proposed Design
• SCO, NOC, and
Network Engineering
• 9,829 ft2 (>5x Original
Scope)
• Aligns with City
Transparency stds and
Connexion needs
• Conference Space
Additions
• $4.37 M total*
6
L&P Cost: $2.62 M
BB Cost: $1.75 M
Joint Costs shared
50/50
Current Proposed Timeline
February: Cost Estimate for 30% Design
Today: ~50% Cost Estimate Package with 20% Contingency
Today-June: Supplemental L&P Appropriation &
Construction Permit Drawings
June-August: Construction Permitting process
August-Nov: Phase I Construction (conference rooms)
20Q4-21Q3: Phase II Construction
7
Staff’s Recommendation
Complete the funding gap for the current remodel design by:
• Request the off-cycle supplemental appropriation ($0.9 M) from L&P
reserves planned for in 2020 in the CIP
• Appropriate remainder of the funding gap (~$0.77 M) from other L&P
capital accounts
• Substations parent – potentially delays other capital sub work
• Annexations – requires change in Council direction
Continue with the current schedule to complete the project in mid-2021
8
L&P Reserves Status
Anticipated L&P reserves at end of 2019
• $10.5 M
After 2020 CAP Mitigation and Resiliency Appropriation ($3.73 M)
• $6.77 M
Off-Cycle funding request from reserves
• $0.9 M
9
Alternatives
Appropriate entire funding gap (~$1.7 M) from reserves
• Doesn’t address organization’s financial direction to identify potential
capital projects that could be delayed this year
Reduce Overall Cost and Off-Cycle Appropriation Amount:
• Decrease transparency/shared space between L&P and Connexion
• Value Engineering – Quality
• Subtract new conference space(s)
• Use existing disparate desk space for NOC/Net Eng
10
Alternatives
Use 2021 budget process to appropriate additional dollars:
• Delay construction schedule and Connexion move-in date at least 6
months
• Costs escalate
Reduce Scope of Project back to SCO Only (Original Offer):
• Connexion finds office space somewhere else
• Original estimate for new building: $6.7 Million (2020 dollars)
• Remodel existing SCO space
• Technology costs are greater than estimated – funded from other
sources
11
Question
Does Council Finance Committee support
staff’s recommendation to bring forward an off-
cycle supplemental appropriation from L&P
reserves to complete a joint control room facility
with Connexion?
12
Design Element Differences
13
SCO remodel and NOC incorporation into Wood Street
Original Design
and Estimate
Current Design
and Estimate
Total Square footage of remodel 1,823 10,032
Hire Control Room Design Consultant X X
- Provide recommendations for SCO furniture, equipment, video wall technology, consoles and room layout,
etc. X X
- Provide recommendations for NOC furniture, equipment, video wall technology, desks, and room layout,
etc. X
Replace SCO consoles with new, state of the art consoles X X
Replace existing raised floor X X
Replace lighting X X
Replace acoustic technologies X X
Asbestos Mitigation X X
Reinforce North wall to support video display X X
Dynamic video wall technology in SCO that can integrate with EOC, SCADA, OMS, ADMS, and business
network PCs, etc. X X
Hard Construction costs for SCO only X X
Temporary Swing Space cost allocations X
Reconfiguration (moving walls) of SCO area including kitchen and break room X
Relocation and addition of bathrooms within secure perimeter X
Elimination of (moving walls) of existing Poudre, Energy, Horsetooth, and Jetson conference spaces X
Addition of six new conference spaces X
Reconfiguration and displacement of L&P (Analyst and GIS) employees X
Incorporation of Network Engineering X
Incorporation of Network Operations Center X
Addition of ~20 Connexion staff to Wood Street building X
Incorporation of collaboration tables in SCO and NOC X
Server room updates and changes including replaced raised floor X
Addition of Connexion Lab X
Control Center 3D Renderings
SCO/NOC Design Firm offers 3D Renderings of conceptual design
• 8 Tangible Views of Future NOC and SCO
• Cost: $5,000
14
Original BFO Concept
15
Value Engineering
Value Engineering Performed
• Subtract additional coffee station
• Subtract changes locker/restroom
• Changes to less-expensive flooring in high traffic areas
• Refined estimates on SCO/NOC bathroom costs
16
L&P Capital Substation Parent
April 2020 Status of Substation Parent Account
• $1.9 M
Substation Parent After Off-cycle Appropriation ($0.77 M)
• $1.13 M
Substation Estimated Spending (2021-2022)
• $1.52 M
17
L&P Capital Annexations Budget
2020 Status of Annexation Budget
• $1.26 M
Annexation Budget After Off-cycle Appropriation ($0.77 M)
• $0.49 M
18
Capital Improvement Plan
Budget
Fund Budget $ Inflated $ Budget $ Inflated $ Budget $ Inflated $
501 Light & Power
501001 Substations
501001A001 Battery Banks $ 20,000 $ 22,000 $ 20,000 $ 22,000
501001A003 LTC (Load Tap Changer) Inspection and Repair $ 105,000 $ 112,000 $ 105,000 $ 112,000
501001A004 Oil Containment Walls $ 70,000 $ 75,000 $ 70,000 $ 77,000 $ 140,000 $ 152,000
501001A005 Replace HVAC Units $ 22,000 $ 24,000 $ 22,000 $ 25,000 $ 44,000 $ 49,000
501001A006 Transformer Radiator Replacements $ 78,000 $ 83,000 $ 78,000 $ 86,000 $ 156,000 $ 169,000
501001A007 D20MX RTU Replacements $ 41,000 $ 44,000 $ 41,000 $ 44,000
501001A008 SYSCO Network Switches For RTU Upgrades $ 37,000 $ 40,000 $ 37,000 $ 40,000
501001A009 Feeder Relay Replacements $ 71,000 $ 76,000 $ 189,000 $ 207,000 $ 260,000 $ 283,000
501001A010 Substation Gravel $ 35,000 $ 38,000 $ 35,000 $ 39,000 $ 70,000 $ 77,000
501001A013 Transformer Oil Filtration $ 170,000 $ 186,000 $ 170,000 $ 186,000
501001A014 Substation Security $ 15,000 $ 16,000 $ 15,000 $ 17,000 $ 30,000 $ 33,000
501001A016 Install New 735 Power Quality Meters $ 13,000 $ 14,000 $ 13,000 $ 15,000 $ 26,000 $ 29,000
501001A017 Substation Misc Capital $ 55,000 $ 59,000 $ 55,000 $ 61,000 $ 110,000 $ 120,000
501001A020 Equipment For CVR (Conservation Voltage Reduction) $ 75,000 $ 80,000 $ 75,000 $ 82,000 $ 150,000 $ 162,000
501001A021 PRPA Circuit Switcher Installations $ 40,000 $ 43,000 $ 40,000 $ 43,000
501001 Substations Total $ 677,000 $ 726,000 $ 722,000 $ 795,000 $ 1,399,000 $ 1,521,000
501002 Service Center
501002B001 SCO Remodel Supplemental Appropriation $ 900,000 $ 927,000 $ 900,000 $ 927,000
501002B002 Training Field Phase II $ 200,000 $ 213,000 $ 200,000 $ 213,000
501002 Service Center Total $ 900,000 $ 927,000 $ 200,000 $ 213,000 $ 1,100,000 $ 1,140,000
501004 Annexations
501004C001 Mail Creek Crossing 2nd Filing $ 392,000 $ 404,000 $ 392,000 $ 404,000
501004C002 Strauss Cabin Enclave $ 173,000 $ 179,000 $ 173,000 $ 179,000
501004C003 Fox Hills Annexation $ 127,000 $ 131,000 $ 127,000 $ 131,000
501004C004 Blehm_(REA) Annexation $ 514,000 $ 530,000 $ 514,000 $ 530,000
501004C004 Blehm_(Xcel) Annexation $ 56,000 $ 58,000 $ 56,000 $ 58,000
501004 Annexations Total $ 1,262,000 $ 1,302,000 $ 1,262,000 $ 1,302,000
501005 Feeders
501005D075 Install circuit 838 to serve Hughes Stadium $ 420,000 $ 446,000 $ 420,000 $ 446,000
501005D092 Reroute Drake 216 and Dixon Creek 824 $ 510,000 $ 542,000 $ 510,000 $ 542,000
501005 Feeders Total $ 930,000 $ 988,000 $ 930,000 $ 988,000
501008 Duct Banks
501008D028 Duct Bank on Carriage Pkwy ‐ Prospect to Vitala Dr (1X2 w/ 20% Contingency) $ 230,000 $ 245,000 $ 230,000 $ 245,000
501008D090 Duct Bank on Carriage Pkwy ‐ Vitala Dr to Forelock Dr (1X2 w/ 20% Contingency) $ 120,000 $ 132,000 $ 120,000 $ 132,000
501008 Duct Banks Total $ 230,000 $ 245,000 $ 120,000 $ 132,000 $ 350,000 $ 377,000
501009 CMMS–Maintenance Management
501009G002 Operational Technology ‐ Maximo $ 500,000 $ 531,000 $ 300,000 $ 328,000 $ 800,000 $ 859,000
501009 CMMS–Maintenance Management Total $ 500,000 $ 531,000 $ 300,000 $ 328,000 $ 800,000 $ 859,000
501012 System Improvements & Replacements
501012C003 CAPITAL ‐ Replacement Area 3 ‐ Skyway South $ 213,000 $ 220,000 $ 213,000 $ 220,000
501012C004 CAPITAL ‐ Replacement Area 4 ‐ Stonehenge PUD $ 232,000 $ 239,000 $ 232,000 $ 239,000
501012C005 CAPITAL ‐ Replacement Area 5 ‐ Cottonwood $ 317,000 $ 327,000 $ 317,000 $ 327,000
501012C006 CAPITAL ‐ Replacement Area 6 ‐ Kreger Plaza $ 96,000 $ 99,000 $ 96,000 $ 99,000
501012C007 CAPITAL ‐ Replacement Area 7 ‐ Village East $ 241,000 $ 249,000 $ 241,000 $ 249,000
501012C008 CAPITAL ‐ Replacement Area 8 ‐ Brown Farm 3rd $ 143,000 $ 148,000 $ 143,000 $ 148,000
501012C009 CAPITAL ‐ Replacement Area 9 ‐ Valley Hi $ 149,000 $ 159,000 $ 149,000 $ 159,000
501012C010 CAPITAL ‐ Replacement Area 10 ‐ Southmoor Village $ 241,000 $ 256,000 $ 241,000 $ 256,000
501012C011 CAPITAL ‐ Replacement Area 11 ‐ Scotch Pines $ 119,000 $ 127,000 $ 119,000 $ 127,000
501012C012 CAPITAL ‐ Replacement Area 12 ‐ Woodlands PUD $ 87,000 $ 96,000 $ 87,000 $ 96,000
501012C013 CAPITAL ‐ Replacement Area 13 ‐ Village West 9th $ 206,000 $ 226,000 $ 206,000 $ 226,000
501012C014 CAPITAL ‐ Replacement Area 14 ‐ Rossborough $ 114,000 $ 125,000 $ 114,000 $ 125,000
501012C015 CAPITAL ‐ Replacement Area 15 ‐ Harmony Park $ 98,000 $ 108,000 $ 98,000 $ 108,000
501012C016 CAPITAL ‐ Replacement Area 16 ‐ Parkwood East $ 130,000 $ 143,000 $ 130,000 $ 143,000
501012C017 CAPITAL ‐ Replacement Area 17 ‐ Trail West PUD $ 181,000 $ 198,000 $ 181,000 $ 198,000
501012F019 Cable Replacements ‐ Emergency Reserves $ 450,000 $ 478,000 $ 450,000 $ 478,000
Capital Improvement Plan
Budget
2020 2021 2022 Total Budget $ Total Inflated $
FY1920 FY2122
502631WS01 SCADA System Replacements $ 362,500 $ 385,000 $ 362,500 $ 397,000 $ 725,000 $ 782,000
502631 Water Production Replacement Program Total $ 862,500 $ 916,000 $ 862,500 $ 944,000 $ 1,725,000 $ 1,860,000
502642 Water Meter Replacement
502642MC01 Meter Capital Program $ 850,000 $ 902,000 $ 850,000 $ 929,000 $ 1,700,000 $ 1,831,000
502642 Water Meter Replacement Total $ 850,000 $ 902,000 $ 850,000 $ 929,000 $ 1,700,000 $ 1,831,000
502645 Distribution System Small Projects
502645GS01 Galvanized Service Replacement Program $ 1,000,000 $ 1,061,000 $ 1,000,000 $ 1,093,000 $ 2,000,000 $ 2,154,000
502645SC01 Small Cap Water $ 2,000,000 $ 2,122,000 $ 2,000,000 $ 2,186,000 $ 4,000,000 $ 4,308,000
502645 Distribution System Small Projects Total $ 3,000,000 $ 3,183,000 $ 3,000,000 $ 3,279,000 $ 6,000,000 $ 6,462,000
503 Wastewater
503010 Wastewater Fund Special Projects
503010PCL2 Water Lab Construction $ 182,500 $ 194,000 $ 182,500 $ 194,000
503010SA01 SCADA System Replacements $ 7,500 $ 8,000 $ 7,500 $ 9,000 $ 15,000 $ 17,000
503010WR01 WRB Replacement $ 1,000,000 $ 1,061,000 $ 1,000,000 $ 1,093,000 $ 2,000,000 $ 2,154,000
503010 Wastewater Fund Special Projects Total $ 1,190,000 $ 1,263,000 $ 1,007,500 $ 1,102,000 $ 2,197,500 $ 2,365,000
503035 DWRF Improvements
503035DW01 DWRF Headworks Improvements Phase 2 ‐ 2021 (Construction) $ 6,000,000 $ 6,366,000 $ 6,000,000 $ 6,366,000
503035DW02 DWRF High Voltage Transformers ‐ 1201 and 1202 $ 550,000 $ 584,000 $ 550,000 $ 584,000
503035DW03 DWRF High Voltage Transformers ‐ 1205 and Switchboards $ 275,000 $ 292,000 $ 275,000 $ 292,000
503035DW04 DWRF Non‐potable Piping System (Eastside) Replacement $ 445,000 $ 473,000 $ 445,000 $ 473,000
503035DW05 DWRF NPT ‐ Clarifier Mechanism Replacement $ 4,900,000 $ 5,199,000 $ 4,900,000 $ 5,199,000
503035DW09 DWRF Carbon Addition Phase II $ 6,900,000 $ 7,540,000 $ 6,900,000 $ 7,540,000
503035DW10 DWRF Digesters 611 Mixer Improvements $ 1,110,000 $ 1,213,000 $ 1,110,000 $ 1,213,000
503035DW11 DWRF High Voltage Transformer and Switchboard Replacement ‐ 1212 $ 275,000 $ 301,000 $ 275,000 $ 301,000
503035DW16 DWRF HVAC Equipment ‐ Administration $ 732,000 $ 800,000 $ 732,000 $ 800,000
503035DW17 DWRF HVAC Replacement ‐ DAFT $ 640,500 $ 700,000 $ 640,500 $ 700,000
503035DW21 DWRF HVAC Replacement ‐ SPT Lift Station $ 168,000 $ 184,000 $ 168,000 $ 184,000
503035DW22 Facility Wide Glycol Loop Replacement (emerging need) ‐ Jason getting updated estimate $ 450,000 $ 478,000 $ 450,000 $ 478,000
503035 DWRF Improvements Total $ 12,620,000 $ 13,392,000 $ 9,825,500 $ 10,738,000 $ 22,445,500 $ 24,130,000
503036 Sludge Disposal Improvements
503036MSR1 MSR New Storage Building $ 750,000 $ 796,000 $ 750,000 $ 796,000
503036 Sludge Disposal Improvements Total $ 750,000 $ 796,000 $ 750,000 $ 796,000
503645 Collection System Small Projects
503645SC01 Small Cap Wastewater $ 2,000,000 $ 2,122,000 $ 2,000,000 $ 2,186,000 $ 4,000,000 $ 4,308,000
503645 Collection System Small Projects Total $ 2,000,000 $ 2,122,000 $ 2,000,000 $ 2,186,000 $ 4,000,000 $ 4,308,000
504 Stormwater
504044 Stormwater Basin Improvements
504044SC01 Stormwater Small Cap $ 1,600,000 $ 1,698,000 $ 1,700,000 $ 1,858,000 $ 3,300,000 $ 3,556,000
504044 Stormwater Basin Improvements Total $ 1,600,000 $ 1,698,000 $ 1,700,000 $ 1,858,000 $ 3,300,000 $ 3,556,000
Grand Total $ 7,590,000 $ 7,836,000 $ 59,272,500 $ 62,915,000 $ 36,653,500 $ 40,083,000 $ 103,516,000 $ 110,834,000
https://coftc.sharepoint.com/teams/LightPower/Files/Finance/CIP/Master/Master_Capital_Budget_File.xlsx 4/| 9/Capital 2020 3:Improvement 35 PM Plan 2 of 2
Capital Budget
Budget
Fund Project Name Owner Name Engineer Crew Chief Project Stage % Complete Budget $ Spent $ Encumbered $ Available $ % Remaining $ Return To Parent $ Return To Fund $
501 Light & Power
501001 Substations
5010010000 Substation Capital Parent Account Adam Bromley Bob Hover Planning 0% $1,907,354 $0 $0 $1,907,354 100.0%
5010010123 Substation Improvements Adam Bromley Bob Hover Planning 0% $1,049,800 $811,503 $104,465 $133,831 12.7%
5010012716 Genesis64 SCADA Upgrade Adam Bromley Bob Hover Construction 50% $290,000 $237,102 $21,420 $31,478 10.9%
5010012733 Design SCO Remodel & Upgrade Adam Bromley Adam Bromley Operations Services Planning 25% $10,000 $2,296 $456 $7,248 72.5%
5010012768 Timberline Oil Containment Adam Bromley Johnathan Sisk Glenn Travis Construction 75% $15,000 $7,941 $0 $7,059 47.1%
5010012780 2019 Harmony Sub Cap Bank Adam Bromley Johnathan Sisk Glenn Travis Construction 95% $45,000 $35,515 $0 $9,485 21.1%
5010012815 2020 Dixon Sub RTU Relay Upgrade Adam Bromley Bob Hover Glenn Travis Planning 0% $150,000 $2,206 $11,926 $135,868 90.6%
501001 Substations Total * $3,467,154 $1,096,564 $138,268 $2,232,322 64.4%
5010020000 Service Center Capital L&P Parent Account Tim McCollough Planning 0% $190,500 $0 $0 $190,500 100.0%
5010022787 USC Warehouse Fire Sprinkler Tim McCollough Bidding 0% $139,500 $113,559 $11,737 $14,204 10.2%
5010022802 SCO Design Remodel & Upgrade Adam Bromley Adam Bromley Operations Services Design 0% $950,000 $15,255 $55,001 $879,745 92.6%
Total * $1,280,000 $128,814 $66,738 $1,084,449 84.7%
501004 Annexations
5010040000 Annexations Capital Parent Account Kraig Bader Janet McTague Planning 0% $1,127,000 $0 $0 $1,127,000 100.0%
5010042434 Riverwalk Annexation Kraig Bader Cody Snowdon Design 0% $224,000 $0 $0 $224,000 100.0%
5010042440 Arapahoe Bend 2nd Annexation Kraig Bader Cody Snowdon Joel Cirillo Design 0% $160,000 $0 $0 $160,000 100.0%
5010042822 Soldier Canyon Pump Annexation Kraig Bader Design 0% $135,000 $0 $0 $135,000 100.0%
501004 Annexations Total * $1,646,000 $0 $0 $1,646,000 100.0%
501005 Feeders
5010050000 Feeders Capital Parent Account Kraig Bader Planning 0% $289,453 $0 $0 $289,453 100.0%
5010052609 East Horsetooth Foothills Mall Switchgear Kraig Bader Rob Irish Joe Larson Construction 50% $43,040 $16,273 $0 $26,767 62.2%
5010052762 Water Treatment Facility Annexation Kraig Bader Janet McTague Tyler Promes Construction 90% $1,300,000 $874,616 $77,661 $347,723 26.7%
501005 Feeders Total * $1,632,493 $890,889 $77,661 $663,944 40.7%
501008 Duct Banks
5010080000 Duct Bank Capital Parent Account Kraig Bader Planning 0% $222,338 $0 $0 $222,338 100.0%
501008 Duct Banks Total * $222,338 $0 $0 $222,338 100.0%
501009 CMMS–Maintenance Management
5010090000 CMMS–Maintenance Management Tim McCollough Design 0% $1,079,129 $690,487 $313,600 $75,042 7.0%
501009 CMMS–Maintenance Management Total * $1,079,129 $690,487 $313,600 $75,042 7.0%
501010 Art In Public Places ‐ Light & Power
5010100000 Art In Public Places Kraig Bader Planning 0% $901,068 $636,297 $3,660 $261,111 29.0%
501010 Art In Public Places ‐ Light & Power Total * $901,068 $636,297 $3,660 $261,111 29.0%
501012 System Improvements & Replacements
5010120000 Distribution System Improvements Parent Account Kraig Bader Planning 0% $1,734,784 $0 $0 $1,734,784 100.0%
5010122706 Avery Park Phase 2 Kraig Bader Luke Unruh Jim Storebo Design 0% $3,000 $2,357 $0 $643 21.4%
5010122794 2019 Willow St Sys Improvement Kraig Bader Tyler Siegmund Adam Binder Construction 80% $276,200 $144,781 $4,575 $126,845 45.9%
5010122797 2019 CR1 ‐ Woodwest Kraig Bader Cody Snowdon Mike Grenz Construction 50% $170,000 $42,708 $2,085 $125,207 73.7%
5010122809 2019 CR4 ‐ Stonehenge Kraig Bader Cody Snowdon Doug Himmelberg Construction 0% $231,250 $0 $0 $231,250 100.0%
5010122810 2019 CR7 ‐ Village East Kraig Bader Cody Snowdon Doug Himmelberg Construction 0% $242,000 $0 $0 $242,000 100.0%
5010122812 2020 Cable Replacement Non‐work Order Kraig Bader Planning 0% $200,000 $28,960 $0 $171,040 85.5%
5010122813 2020 Streetlight System Replacement Kraig Bader Planning 0% $351,600 $118,648 $8 $232,944 66.3%
5010122814 2020 Transformer Purchases New Kraig Bader Planning 0% $732,500 $0 $447,352 $285,148 38.9%
5010122816 2020 CR3 ‐ Skyview Kraig Bader Cody Snowdon Joel Cirillo Design 0% $0 $0 $0 $0 0.0%
5010122817 2020 CR5 ‐ Guard Annex Kraig Bader Cody Snowdon Adam Binder Construction 0% $317,000 $0 $0 $317,000 100.0%
5010122818 2020 CR6 ‐ Horsetooth Annex Kraig Bader Cody Snowdon Design0% $0$0$0$00.0%
5010122819 2020 CR8 ‐ Brown Farm Kraig Bader Cody Snowdon Design 0% $0$0$0$00.0%
5010122820 CKT 732 ‐ Jackson to Meldrum Kraig Bader Cody Snowdon Doug Himmelberg Completed 100% $297,000 $87,628 $0 $209,372 70.5% $209,372
5010123243 2019 CR1 ‐ Woodwest ‐ Transformers Kraig Bader Cody Snowdon Mike Grenz Construction 30% $16,500 $367 $0 $16,133 97.8%
5010123249 2019 CR4 ‐ Stonehenge ‐ Transformers Kraig Bader Cody Snowdon Doug Himmelberg Construction 0% $23,000 $0 $0 $23,000 100.0%
5010123250 2019 CR7 ‐ Village East ‐ Transformers Kraig Bader Cody Snowdon Doug Himmelberg Construction 0% $22,500 $0 $0 $22,500 100.0%
5010123254 2020 CR3 ‐ Skyview ‐ Transformers Kraig Bader Cody Snowdon Joel Cirillo Design 0% $0 $0 $0 $0 0.0%
5010123255 2020 CR5 ‐ Guard Annex ‐ Transformers Kraig Bader Cody Snowdon Adam Binder Construction 0% $31,500 $0 $0 $31,500 100.0%
5010123256 2020 CR6 ‐ Horsetooth Annex ‐ Transformers Kraig Bader Cody Snowdon Design 0% $0 $0 $0 $0 0.0%
5010123257 2020 CR8 ‐ Brown Farm ‐ Transformers Kraig Bader Cody Snowdon Design 0% $0 $0 $0 $0 0.0%
501012 System Improvements & Replacements Total * $4,648,834 $425,448 $454,020 $3,769,367 81.1% $209,372
Capital Budget
Budget
Fund Project Name Owner Name Engineer Crew Chief Project Stage % Complete Budget $ Spent $ Encumbered $ Available $ % Remaining $ Return To Parent $ Return To Fund $
2020
501013 Operational Technology Total * $2,580,000 $1,746,663 $421,544 $411,792 16.0%
501030 CIS Upgrade/Replacement ‐ Light & Power
5010300000 CIS Upgrade ‐ L&P Parent Lisa Rosintoski Construction 25% $3,314,506 $2,145,053 $1,082,977 $86,477 2.6%
501030 CIS Upgrade/Replacement ‐ Light & Power Total * $3,314,506 $2,145,053 $1,082,977 $86,477 2.6%
501601 System Conversions
5016010000 System Conversions Parent Account Kraig Bader Design 0% $1,946,223 $0 $0 $1,946,223 100.0%
5016012799 Milfred Subdivision Conversion Kraig Bader Cody Snowdon Mike Grenz Design 0% $0 $0 $0 $0 0.0%
5016012800 Craws Subdivision Conversion Kraig Bader Luke Unruh Joel Cirillo Design 0% $0 $0 $0 $0 0.0%
501601 System Conversions Total * $1,946,223 $0 $0 $1,946,223 100.0%
Grand Total * $22,717,745 $7,760,213 $2,558,466 $12,399,065 54.6% $209,372
https://coftc.sharepoint.com/teams/LightPower/Files/Finance/CIP/Master/Master_Capital_Budget_File.xlsx | Current Capital Budget 4/7/2020 12:19 PM 2 of 2
R-2 Broadband & L/P Project Cost Split Original
Area (SF) $206/SF
562 $115,772
573 $118,038
179 $36,874
404 $83,224
923 $190,138
1193 $245,758
150 $30,900
200 $41,200
195 $40,170
150 $30,900
4529 $932,974
$28,500
$100,000
$5,500
$65,000
$8,000
$65,000
$13,500
$150,000
$435,500
58% of $164,000 $95,120
25% of $60,000 $15,000
$110,120
NOC $3,000 Ea. $39,000
$6,500 Ea. $6,500
$2000/ Ea $2,000
$4,500/Ea. $27,000
$2,500/Ea $35,000
$2,500/Ea. $2,500
$10,000/Ea. $10,000
$7500/Ea $15,000
$6,500/Ea. $6,500
1/2 of $7,000 $3,750
1/2 of $6,000 $3,000
$150,250
Broadband Total $1,628,844
Area (SF) $206/SF
Hard Construction Cost
2019 $415,914.00
150 $30,900.00
150 $30,900.00
128 $240,640.00
150 $30,900.00
137 $28,222.00
230 $47,380.00
1396 $287,576.00
200 $41,200.00
4560 $939,360.00
$23,000
$100,000
$5,500
$65,000
$8,000
$65,000
$18,000
$150,000
$434,500
42% of $164,000 $68,880
R-2 Broadband & L/P Project Cost Split Revised 3/06/2020
Area (SF) $215/SF
562 $121,111
573 $123,482
179 $38,575
404 $87,062
923 $198,907
1193 $257,092
1193 $25,000
150 $32,325
200 $43,100
195 $42,023
150 $32,325
5722 $1,001,000
$28,500
$100,000
$5,500
$65,000
$8,000
$65,000
$13,500
$200,000
$485,500
58% of $164,000 $95,120
25% of $60,000 $15,000
$110,120
NOC $18,571/Ea. $260,000
$6,500 Ea. $6,500
$2000/ Ea $2,000
$4,500/Ea. $27,000
$14,286/Ea $200,000
$2,500/Ea $5,000
2 Planar 42" Monitors on wall $800/Ea $1,600
30 Planar 32" monitors on consoles $1,667/Ea $50,000
$60,000 $60,000
$2,500/Ea. $2,500
$10,000/Ea. $10,000
$7500/Ea $15,000
$6,500/Ea. $6,500
1/2 of $25,000 $12,500
1/2 of 13,500 $6,750
1/2 of $6,000 $3,000
$668,350
Broadband Total $2,264,970
Area (SF) $215/SF
Hard Construction Cost
2019 $435,094.50
150 $32,325.00
150 $32,325.00
128 $240,640.00
150 $32,325.00
137 $29,523.50
230 $49,565.00
2019 $45,000.00
0 Covered by FF&E
200 $43,100.00
5183 $939,898.00
$23,000
$100,000
$5,500
R-2 Broadband & L/P Project Cost Split 3/13/2020
Area (SF) $206/SF
562 $115,772
573 $118,038
179 $36,874
404 $83,224
923 $190,138
1193 $245,758
150 $30,900
200 $41,200
195 $40,170
150 $30,900
4529 $932,974
$28,500
$100,000
$5,500
$65,000
$8,000
$65,000
$13,500
$150,000
$435,500
58% of $164,000 $95,120
25% of $60,000 $15,000
$110,120
NOC $3,000 Ea. $39,000
$6,500 Ea. $6,500
$2000/ Ea $2,000
$4,500/Ea. $27,000
$2,500/Ea $35,000
$2,500/Ea. $2,500
$10,000/Ea. $10,000
$7500/Ea $15,000
$6,500/Ea. $6,500
1/2 of $7,000 $3,750
1/2 of $6,000 $3,000
$150,250
Broadband Total $1,628,844
Area (SF) $206/SF
Hard Construction Cost
2019 $415,914.00
150 $30,900.00
150 $30,900.00
128 $240,640.00
150 $30,900.00
137 $28,222.00
230 $47,380.00
1396 $287,576.00
200 $41,200.00
4560 $939,360.00
$23,000
$100,000
$5,500
$65,000
$8,000
$65,000
$18,000
$150,000
$434,500
42% of $164,000 $68,880
Broadband & L/P Project Cost Split 4/13/2020
Area (SF) $198
562 $111,276
573 $113,454
179 $35,442
404 $79,992
923 $182,754
1193 $236,214
150 $29,700
200 $39,600
195 $38,610
150 $29,700
4529 $896,742
$28,500
$85,000
$5,500
$65,000
$8,000
$50,000
$18,500
$150,000
$410,500
58% of $164,000 $95,120
25% of $60,000 $15,000
$110,120
NOC
$6,500 Ea. $6,500
$2000/ Ea $2,000
$4,500/Ea. $27,000
$10,000/Ea. $10,000
$7500/Ea $15,000
$22,889.00 $11,445
$3,757.00 $1,879
$12,717.00 $6,359
$39,000.00 $19,500
$24,951.00 $12,476
$6,488.00 $3,244
$72,655.00 $36,328
$9,080.00 $4,540
$12,831.00 $6,416
Core AV 1:1 Signal Management $10,625.00 $55,551.00
(4) 86" LED Videowall and Aux displays Combined $59,943.00 $150,897.00
Furniture (TBC) - Desks, office and Collaboration Table $123,774.00 $149,801.00
Spare Parts $697.00 $3,089.00
-$25,000.00 ($25,000)
FF& E Sub-total $332,723
Broadband Total $1,750,085
Area (SF) 198
Hard Construction Cost (Walls, floors, ceilings, etc)
2019 $399,762.00
150 $29,700.00
150 $29,700.00
128 $160,000.00
150 $29,700.00
137 $27,126.00
230 $45,540.00
1396 In FF&E
200 $39,600.00
4560 $761,128.00
$38,000
Financial Services
215 N Mason Street, 2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6770
970.221.6782 - fax
fcgov.com/finance
DATE:
TO:
THRU:
FROM:
RE:
CC:
MEMORANDUM
April 20, 2020
Council Finance Committee
Darin Atteberry, City Manager
Travis Storin, Interim CFO
Blaine Dunn, Interim Accounting Director
Kelley Vodden, Controller
Required planning communications from City’s external audit firm
Kirsten Howard, Poudre Fire Authority
Rachel Miller, Poudre River Public Library District
Attached is written communication from the City’s external audit firm, BKD LLP, describing the
scope and timing of their upcoming audit of the December 31, 2019 financial statements and of
the City’s compliance with its major federal award programs. The document contains useful
information about the procedures and deliverables of a financial audit.
DocuSign Envelope ID: 87DF07C0-7E1C-4BBF-8933-9593E7E43BC3
March 30, 2020
City of Fort Collins Council Finance
and Audit Committee
215 North Mason Street, 2nd Floor
Fort Collins, Colorado 80522
The purpose of this communication is to summarize various matters related to the planned scope
and timing for the December 31, 2019 audits of the financial statements of the City of Fort
Collins and of its compliance with specified requirements applicable to its major federal award
programs.
Please refer to our engagement letter dated January 17, 2020 for additional information and the
terms of our engagement.
OVERVIEW
We will conduct our audits in accordance with auditing standards generally accepted in the
United States of America, the standards for financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States, and Title 2 U.S. Code of
Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards (Uniform Guidance). Those standards require that
we plan and perform:
The audit of the financial statements to obtain reasonable rather than absolute assurance
about whether the financial statements are free of material misstatement, whether caused
by error or fraud. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation.
The audit of compliance with the types of compliance requirements described in the U.S.
Office of Management and Budget, Compliance Supplement that are applicable to each
major federal award program to obtain reasonable rather than absolute assurance about
whether noncompliance having a direct and material effect on a major federal award
program occurred.
DocuSign Envelope ID: 87DF07C0-7E1C-4BBF-8933-9593E7E43BC3
City of Fort Collins Council Finance
and Audit Committee
March 30, 2020
Page 2
PLANNED SCOPE & TIMING
We have preliminarily identified the following areas of significant risks of material misstatement
due to error or fraud and of material noncompliance and propose to address these areas as
described:
Opinion Unit Risk Area Audit Approach
All Management override
of controls
Review accounting estimates
for bias, review journal entries
and evaluate business rationale
for unusual transactions
All Revenue recognition Review significant revenue for
proper cut-off and compliance
with requirements determining
recognition and analytically
review all revenue for
reasonableness
Governmental and
Business Type Activities
Capital assets Review for proper
capitalization (including
interest as applicable),
depreciation, completeness,
existence and impairment and
proper cut-off
Governmental and
Business Type Activities
Bonds payable Review transactions for proper
accounting, including
retirement of existing debt,
test footnote disclosure for
complete and accurate
information, verify appropriate
classifications of unspent
proceeds
All
Account payable and
accrued liabilities
Test completeness of payables
and accrued liabilities and
review for proper cut-off
DocuSign Envelope ID: 87DF07C0-7E1C-4BBF-8933-9593E7E43BC3
City of Fort Collins Council Finance
and Audit Committee
March 30, 2020
Page 3
Opinion Unit Risk Area Audit Approach
All GASB No. 84, Fiduciary
Activities
Review implementation of
GASB 84 including the City’s
identification of fiduciary
component unit(s) related to
pension arrangements and
other fiduciary activities
Governmental and
Business Type Activities
GASB No. 83, Certain Asset
Retirement Obligations
Review recognition of asset
retirement obligations and
related accounts and
disclosures for propriety as
applicable
Single audit Compliance for major federal
award programs
Select samples of expenditures
charged to grants and test for
compliance with federal and
grant requirements
We welcome any input you may have regarding the risk areas identified above, any other
significant risk areas in your opinion or other matters you believe warrant particular attention.
We propose the following timeline, which is subject to change as necessary in regard to the
COVID-19 emergency:
Drafts of the management letter, together with our letter regarding auditor responsibilities
and single audit report will be furnished by June 12, 2020
Final reports will be issued by June 15, 2020
CONTACTS
We understand the appropriate person in the governance structure with whom to communicate is
Mayor Wade Troxell.
If for any reason any member of the Finance and Audit Committee would need to contact us,
please call Mr. Christopher Telli, Partner, or Ms. Anna Thigpen, Senior Manager at
303.861.4545.
DocuSign Envelope ID: 87DF07C0-7E1C-4BBF-8933-9593E7E43BC3
City of Fort Collins Council Finance
and Audit Committee
March 30, 2020
Page 4
ACCOUNTING & AUDITING MATTERS
The following matters are, in our judgment, relevant to the planned scope of the audit as well as
your responsibilities in overseeing the financial reporting process.
Segregation of accounting duties
Revenue recognition, including receivables and unearned revenue
Related-party transactions
Component units
Commitments and contingencies
Significant estimates
Cash and investments
Capital assets
Accounts payable and accrued liabilities
Long-term debt
Components of net position and fund balance
Proper classification of special revenue funds in accordance with Governmental
Accounting Standards Board Statement No. 54
Expense/expenditures
Compliance with federal award programs
CONSIDERATION OF ERROR OR FRAUD
One of the most common questions we receive from audit committees is, “How do you address
fraud in a financial statement audit?” Our responsibility, as it relates to fraud, in an audit of
financial statements is addressed in auditing standards generally accepted in the United States
of America.
Our audit approach includes such procedures as:
Engagement Team Brainstorming
o Discussions include how and where we believe the entity’s financial statements
might be susceptible to material misstatement due to error or fraud, how
management could perpetrate and conceal fraudulent financial reporting and how
assets of the entity could be misappropriated
o An emphasis is placed on the importance of maintaining the proper state of mind
throughout the audit regarding the potential for material misstatement due to error
or fraud
DocuSign Envelope ID: 87DF07C0-7E1C-4BBF-8933-9593E7E43BC3
City of Fort Collins Council Finance
and Audit Committee
March 30, 2020
Page 5
Inquiries of Management and Others
o Personnel interviewed include the Council Finance and Audit Committee Chair, the
City Manager, the Chief Financial Officer, the Accounting Director, the Controller
and others
o Inquiries are directed towards the risks of error or fraud and whether personnel have
knowledge of any fraud or suspected fraud affecting the entity
Reviewing Accounting Estimates for Bias
Evaluating Business Rationale for Significant Unusual Transactions
Incorporating an Element of Unpredictability Into the Audit Each Year
* * * * *
This communication is intended solely for the information and use of those charged with
governance (City Council and Council Finance and Audit Committee) and management and is
not intended to be and should not be used by anyone other than these parties.
Sincerely,
Christopher J. Telli, CPA Anna L. Thigpen, CPA
Partner Senior Manager
DocuSign Envelope ID: 87DF07C0-7E1C-4BBF-8933-9593E7E43BC3
$100,000
$5,500
$65,000
$8,000
$65,000
$18,000
$200,000
$499,500
42% of $164,000 $68,880
75% of $60,000 $45,000
$113,880
SCO
Atl Option - Furniture (TBC) - Consoles and Collaboration Table $186,302.00
Atl Option - Furniture (Evans) - Consoles and Collaboration Table $308,024.00
$2,000/Ea. $2,000
1/2 of $6,000 $3,000
$1,100/Ea. $6,900
6,500/Ea. $6,500
$3,500/Ea $7,000
$6,500/Ea. $6,500
$50,000 $50,000
$50,000 $50,000
$22,889.00 $11,445
$3,757.00 $1,879
$12,717.00 $6,359
$39,000.00 $19,500
$24,951.00 $12,476
$6,488.00 $3,244
$72,655.00 $36,328
$9,080.00 $4,540
$12,831.00 $6,416
$18,831
Core AV CMS Signal Management $258,474.00 $258,474.00
Unisee Dual 4x3 Videowalls $313,394.00 $313,394.00
Auxiliary Wall Displays - (6) 65" / (1) 46" $49,089.00 $49,089.00
Console Monitors - (25) 32" 4K 24/7 $26,085.00 $26,085.00
Alt Option - Interactive Table $13,740.00 $13,740.00
Spare Parts $18,309.00 $18,309.00
FF& E Sub-total $1,240,030
L & P Total $2,614,538
Renovation Total Cost $4,364,623
1/2 NCO-SCO Lighting
1/2 NCO-SCO Carpet
1/2 NCO-SCO Server Raise Flooring
1/2 NCO-SCO Server Raise Flooring
1/2 NCO-SCO Sound masking
1/2 NCO-SCO Lighting
1/2 NCO-SCO Carpet
1/2 NOC-SCO Conference Room Furniture
1/2 Kitchen
Light & Power Cost Breakout
SCO area
1/2 Conf
6 - Re-use work stations
L&P Workstations (displacement)
Broadband -Cost Breakout
Hard Construction Cost
Large Conf Rm (Energy)
Split Conf Room (Poudre/Horsetooth)
Sm Conf Room (Jetson)
PMPD - Project Mgt
Broadband Workstations (displacement)
NOC
1/2 Kitchen
Server Room
Lab
1/2 Conf Room
Hard Cost Sub-Total
Indirect Cost
Permit Fees
Asbestos Remediation
Material Testing
1 Managers Office
Commissioning
IT Expenses
Art in Public Places
Contingency
Indirect Cost Sub-Total
Design Fees
58% of AU Workshop
1/4 of Diversified
Design Fees Sub-Total
Furniture/Fixtures/Equipment (FF&E)
1 Workbench Lab Area
6 Cubical workshations
1 Lg Conference Rm Furnishings
2 Medium Conference Rm Furnishings
1/2 NOC-SCO Conference Room Furniture
1/2 NOC-SCO Conf. Rm. Shades
1/2 NOC-SCO Floor Boxes
1/2 NOC-SCO Ceiling Tiles
1/2 NCO-SCO Wall Treatments
1/2 Kitchen Furnishings
PMPD - Project Mgt
2 Restrooms
Small Conf at Entry
Sm Conf in Work Area
Commons Area (showers and coffee)
Swing Space
Server Room
Sub-Total
Indirect Cost
Permit Fees
Asbestos Remediation
1 Managers Office
Commissioning
IT Expenses
Art in Public Places
Contingency
Indirect Cost Sub-Total
Design Fees
42% of AU Workshop
3/4 of Diversified
Design Fees Sub-Total
Furniture/Fixtures/Equipment (FF&E)
Reduction in Furniture Cost (Karen)
Temp SCO Setup
Temp SCO Setup (Rebuilding Consoles)
Special A/V Consultant
1/2 NOC-SCO Conf. Rm. Shades
1/2 NOC-SCO Floor Boxes
1/2 NOC-SCO Ceiling Tiles
1/2 NCO-SCO Wall Treatments
1/2 NCO-SCO Sound masking
1 New Lobby Rm Furnishings
2 Coffee Bar Furnishings
1 Small Conference Rm Furnishings
Material Testing
75% of $60,000 $45,000
$113,880
SCO $45000/Ea. $225,000
$2,000/Ea. $2,000
1/2 of $6,000 $3,000
$2500/ Ea $2,500
$1,100/Ea. $6,900
$5,500/Ea $132,000
6,500/Ea. $6,500
$3,500/Ea $7,000
1/2 of $7,500 $3,750
$6,500/Ea. $6,500
$100,000 $100,000
$80,000 $80,000
FF& E Sub-total $575,150
L & P Total $2,062,890
Renovation Total Cost $3,691,734
L&P Workstations (displacement)
Broadband -Cost Breakout
Hard Construction Cost
Large Conf Rm (Energy)
Split Conf Room (Poudre/Horsetooth)
Sm Conf Room (Jetson)
PMPD - Project Mgt
Broadband Workstations (displacement)
NOC
1/2 Kitchen
Server Room
Lab
1/2 Conf Room
Hard Cost Sub-Total
Indirect Cost
Permit Fees
Asbestos Remediation
Material Testing
1 Managers Office
Commissioning
IT Expenses
Art in Public Places
Contingency
Indirect Cost Sub-Total
Design Fees
58% of AU Workshop
1/4 of Diversified
Design Fees Sub-Total
Furniture/Fixtures/Equipment (FF&E)
13 Desk Stations
1 Workbench Lab Area
6 Cubical workshations
14 Monitors on Wall (Unisee)
1 - Collaboration Table
1 Lg Conference Rm Furnishings
2 Medium Conference Rm Furnishings
1 Small Conference Rm Furnishings
1/2 of SCO Conf. Rm. Furnishings
1/2 Kitchen Furnishings
Indirect Cost
Light & Power Cost Breakout
SCO area
1/2 Conf
1/2 Kitchen
2 Restrooms
Small Conf at Entry
Sm Conf in Work Area
Commons Area (showers and coffee)
Swing Space
Server Room
Sub-Total
3/4 of Diversified
Permit Fees
Asbestos Remediation
Material Testing
PMPD - Project Mgt
Commissioning
IT Expenses
Art in Public Places
Contingency
Indirect Cost Sub-Total
Design Fees
42% of AU Workshop
1 Small Conference Rm Furnishings
Design Fees Sub-Total
Furniture/Fixtures/Equipment (FF&E)
5 Control Stations/Consols
1 Managers Office
1/2 Kitchen Furnishings
1 Collaboration table
6 - Re-use work stations
24 TV Monitors on Wall
1 New Lobby Rm Furnishings
2 Coffe Bar Furnishings
1/2 of SCO Conference Room Furnishings
Temp SCO Setup
Special A/V Coordination Consultant
$65,000
$8,000
$65,000
$18,000
$200,000
$484,500
42% of $164,000 $68,880
75% of $60,000 $45,000
$113,880
SCO $45000/Ea. $225,000
$2,000/Ea. $2,000
1/2 of $6,000 $3,000
$2500/ Ea $2,500
$1,100/Ea. $6,900
$13,500/Ea $325,000
$2,500/Ea $12,500
$1,875/Ea $75,000
$8,500/Ea $8,500
6,500/Ea. $6,500
$3,500/Ea $7,000
1/2 of $25,000 $12,500
$6,500/Ea. $6,500
1/2 of 13,500 $6,750
$275,000 $275,000
SCO Spare Parts $25,000 $25,000
$100,000 $100,000
$100,000 $100,000
FF& E Sub-total $1,199,650
L & P Total $2,737,928
Renovation Total Cost $5,002,898
Accoustical Treatment
1/2 of SCO Conf. Rm. Smart Glass
1/2 of SCO Conf. Rm. Smart Glass
SCO Core Processing/Audoio/UPS/Control
NCO Core-Processing/UPS/Contol?Etc.
1 - Work area with desk top screen
Design Fees
42% of AU Workshop
3/4 of Diversified
Design Fees Sub-Total
Furniture/Fixtures/Equipment (FF&E)
5 Planar 65" Monitors
40 - 32"Monitors as Dsktop Consoles
Commissioning
IT Expenses
Art in Public Places
1/2 Kitchen Furnishings
1/2 Kitchen Furnishings
1/2 of SCO Conference Room Furnishings
Temp SCO Setup
Special A/V Coordination Consultant
1 New Lobby Rm Furnishings
2 Coffe Bar Furnishings
1 Small Conference Rm Furnishings
5 Control Stations/Consols
1 Managers Office
1 Collaboration table
6 - Re-use work stations
24 TV Monitors on Wall (Unisee)
Contingency
Indirect Cost Sub-Total
Indirect Cost
Permit Fees
Asbestos Remediation
Material Testing
PMPD - Project Mgt
1/2 Conf
1/2 Kitchen
Broadband -Cost Breakout
Large Conf Rm (Energy)
Split Conf Room (Poudre/Horsetooth)
Sm Conf Room (Jetson)
L&P Workstations (displacement)
Broadband Workstations (displacement)
NOC
1/2 Kitchen
Server Room
Hard Construction Cost
58% of AU Workshop
1/4 of Diversified
Design Fees Sub-Total
Furniture/Fixtures/Equipment (FF&E)
SCO area
Permit Fees
Asbestos Remediation
Material Testing
PMPD - Project Mgt
Commissioning
IT Expenses
Art in Public Places
Contingency
Indirect Cost Sub-Total
Design Fees
14 Desk Stations
1 Managers Office
1 Workbench Lab Area
6 Cubical workshations
2 Planner 65" Monitors on Wall
Lab
1/2 Conf Room
Hard Cost Sub-Total
Light & Power Cost Breakout
Indirect Cost
1 Lg Conference Rm Furnishings
2 Medium Conference Rm Furnishings
1 Small Conference Rm Furnishings
1/2 of SCO Conf. Rm. Furnishings
1 - Collaboration Table
14 Monitors on Wall (Unisee)
Sub-Total
2 Restrooms
Small Conf at Entry
Sm Conf in Work Area
Swing Space
Server Room
Commons Area (showers and coffee)
Acoustical Treatment (Ceiling & Walls
75% of $60,000 $45,000
$113,880
SCO $45000/Ea. $225,000
$2,000/Ea. $2,000
1/2 of $6,000 $3,000
$2500/ Ea $2,500
$1,100/Ea. $6,900
$5,500/Ea $132,000
6,500/Ea. $6,500
$3,500/Ea $7,000
1/2 of $7,500 $3,750
$6,500/Ea. $6,500
$100,000 $100,000
$80,000 $80,000
FF& E Sub-total $575,150
L & P Total $2,062,890
Renovation Total Cost $3,691,734
L&P Workstations (displacement)
Broadband -Cost Breakout
Hard Construction Cost
Large Conf Rm (Energy)
Split Conf Room (Poudre/Horsetooth)
Sm Conf Room (Jetson)
Broadband Workstations (displacement)
NOC
1/2 Kitchen
Server Room
Lab
Indirect Cost Sub-Total
1/2 Conf Room
Hard Cost Sub-Total
Indirect Cost
Permit Fees
Asbestos Remediation
Material Testing
PMPD - Project Mgt
Commissioning
IT Expenses
Art in Public Places
Contingency
1 Managers Office
1 Workbench Lab Area
6 Cubical workshations
14 Monitors on Wall (Unisee)
Design Fees
58% of AU Workshop
1/4 of Diversified
Design Fees Sub-Total
Furniture/Fixtures/Equipment (FF&E)
13 Desk Stations
1 - Collaboration Table
1 Lg Conference Rm Furnishings
2 Medium Conference Rm Furnishings
1 Small Conference Rm Furnishings
1/2 of SCO Conf. Rm. Furnishings
Commons Area (showers and coffee)
1/2 Kitchen Furnishings
Light & Power Cost Breakout
SCO area
1/2 Conf
1/2 Kitchen
2 Restrooms
Small Conf at Entry
Sm Conf in Work Area
Swing Space
Server Room
Sub-Total
Indirect Cost
Permit Fees
Design Fees Sub-Total
Asbestos Remediation
Material Testing
PMPD - Project Mgt
Commissioning
IT Expenses
Art in Public Places
Contingency
Indirect Cost Sub-Total
Design Fees
42% of AU Workshop
3/4 of Diversified
24 TV Monitors on Wall
1 New Lobby Rm Furnishings
2 Coffe Bar Furnishings
Furniture/Fixtures/Equipment (FF&E)
5 Control Stations/Consols
1 Managers Office
1/2 Kitchen Furnishings
1 Collaboration table
6 - Re-use work stations
1/2 of SCO Conference Room Furnishings
1 Small Conference Rm Furnishings
Temp SCO Setup
Special A/V Coordination Consultant
501013 Operational Technology
5010130000 Operational Technology Capital Parent Account Adam Bromley Planning 0% $180,000 $0 $0 $180,000 100.0%
5010132718 Operational Technology (GIS/GWD/ADMS BRII) Adam Bromley Mike Margenau Construction 25% $2,400,000 $1,746,663 $421,544 $231,792 9.7%
2020
https://coftc.sharepoint.com/teams/LightPower/Files/Finance/CIP/Master/Master_Capital_Budget_File.xlsx | Current Capital Budget 4/7/2020 12:19 PM 1 of 2
501012F022 Distribution Transformer Purchases & Replacements $ 1,002,000 $ 1,042,000 $ 824,000 $ 877,000 $ 825,000 $ 906,000 $ 2,651,000 $ 2,825,000
501012 System Improvements & Replacements Total $ 2,244,000 $ 2,324,000 $ 1,783,000 $ 1,897,000 $ 1,641,000 $ 1,802,000 $ 5,668,000 $ 6,023,000
501013 Operational Technology
501013G001 ADMS Strategic Upgrades ‐ Business Releases 3‐6 $ 730,000 $ 775,000 $ 730,000 $ 775,000
501013G003 eSCADA Hardware/Software $ 70,000 $ 75,000 $ 70,000 $ 77,000 $ 140,000 $ 152,000
501013G004 AMI Local Area Network (LAN) $ 130,000 $ 138,000 $ 130,000 $ 143,000 $ 260,000 $ 281,000
501013G005 AMI Wide Area Network (WAN) $ 450,000 $ 478,000 $ 450,000 $ 492,000 $ 900,000 $ 970,000
501013G006 AMI Fiber Optic Backhaul Network $ 65,000 $ 69,000 $ 170,000 $ 186,000 $ 235,000 $ 255,000
501013G007 AMI Test Network Expansion $ 180,000 $ 197,000 $ 180,000 $ 197,000
501013G008 AMI New Technology Testing and Miscellaneous Capital $ 100,000 $ 107,000 $ 100,000 $ 110,000 $ 200,000 $ 217,000
501013G009 LED Streetlight Control and Automation $ 130,000 $ 138,000 $ 120,000 $ 132,000 $ 250,000 $ 270,000
501013G010 Distribution Automation/FLISR $ 200,000 $ 213,000 $ 200,000 $ 219,000 $ 400,000 $ 432,000
501013G011 Radio System Upgrades $ 40,000 $ 43,000 $ 590,000 $ 645,000 $ 630,000 $ 688,000
501013G013 Energy Services Peak Partners $ 640,000 $ 679,000 $ 175,000 $ 192,000 $ 815,000 $ 871,000
501013 Operational Technology Total $ 2,555,000 $ 2,715,000 $ 2,185,000 $ 2,393,000 $ 4,740,000 $ 5,108,000
501601 System Conversions
501601O001 Taft and Drake Overhead Conversion (Milfred) $ 336,000 $ 347,000 $ 336,000 $ 347,000
501601O002 Taft and Drake Overhead Conversion (Craws) $ 228,000 $ 235,000 $ 228,000 $ 235,000
501601O003 Taft and Drake Overhead Conversion (Tefft) $ 480,000 $ 495,000 $ 480,000 $ 495,000
501601O004 Taft and Drake Overhead Conversion (Drake) $ 24,000 $ 25,000 $ 24,000 $ 25,000
501601O005 College and Trilby Overhead Conversion $ 732,000 $ 754,000 $ 732,000 $ 754,000
501601O006 Overland Trail and Mulberry Overhead Conversion $ 36,000 $ 38,000 $ 36,000 $ 38,000
501601O007 North College and Willox Overhead Conversion $ 24,000 $ 25,000 $ 24,000 $ 25,000
501601O008 West Vine and Shields Overhead Conversion $ 24,000 $ 25,000 $ 24,000 $ 25,000
501601 System Conversions Total $ 1,884,000 $ 1,944,000 $ 1,884,000 $ 1,944,000
501998 Streetlighting (New)
501998F023 Streetlight System Replacement $ 360,000 $ 382,000 $ 360,000 $ 394,000 $ 720,000 $ 776,000
501998 Streetlighting (New) Total $ 360,000 $ 382,000 $ 360,000 $ 394,000 $ 720,000 $ 776,000
501999 System Relocations (New)
501999J001 System Relocations ‐ Road & Intersection Projects $ 450,000 $ 478,000 $ 250,000 $ 274,000 $ 700,000 $ 752,000
501999 System Relocations (New) Total $ 450,000 $ 478,000 $ 250,000 $ 274,000 $ 700,000 $ 752,000
502 Water
502000 Water Fund
502000C003 Environmental Learning Center Dam Reconstruction $ 3,000,000 $ 3,183,000 $ 3,000,000 $ 3,183,000
502000L002 Water Lab Construction $ 10,000,000 $ 10,609,000 $ 10,000,000 $ 10,609,000
502000RW01 SOS 24" Poudre Pipeline Lining $ 10,000,000 $ 10,928,000 $ 10,000,000 $ 10,928,000
502000RW02 SOS 27" Poudre Pipeline Repairs $ 1,300,000 $ 1,339,000 $ 1,300,000 $ 1,339,000
502000RW05 SOS Halligan Water Supply Project Permitting (add'l funds) $ 6,000,000 $ 6,366,000 $ 6,000,000 $ 6,366,000
502000 Water Fund Total $ 1,300,000 $ 1,339,000 $ 19,000,000 $ 20,158,000 $ 10,000,000 $ 10,928,000 $ 30,300,000 $ 32,425,000
502033 Treatment Facilities Improvments
502033WT01 Water Treatment Facility Master Plan Update $ 500,000 $ 531,000 $ 500,000 $ 531,000
502033WT02 WTF Replacement $ 1,000,000 $ 1,061,000 $ 1,000,000 $ 1,093,000 $ 2,000,000 $ 2,154,000
502033WT03 T4 Sedimentation Basin Coating $ 500,000 $ 531,000 $ 500,000 $ 531,000
502033WT04 WTF East Backwash Waste Pond Liner $ 1,535,000 $ 1,629,000 $ 1,535,000 $ 1,629,000
502033WT05 WTF Finished Water Metering $ 850,000 $ 902,000 $ 850,000 $ 902,000
502033WT07 WTF Solids Thickening System ‐ Construction $ 4,500,000 $ 4,775,000 $ 4,500,000 $ 4,775,000
502033 Treatment Facilities Improvments Total $ 8,885,000 $ 9,429,000 $ 1,000,000 $ 1,093,000 $ 9,885,000 $ 10,522,000
502082 Watershed Protection
502082WP01 Watershed Protection $ 80,000 $ 85,000 $ 80,000 $ 88,000 $ 160,000 $ 173,000
502082WR01 Water Rights Acquisitions ‐ 1 $ 750,000 $ 796,000 $ 750,000 $ 796,000
502082WR02 Water Rights Acquisitions ‐ 2 $ 750,000 $ 820,000 $ 750,000 $ 820,000
502082 Watershed Protection Total $ 830,000 $ 881,000 $ 830,000 $ 908,000 $ 1,660,000 $ 1,789,000
502631 Water Production Replacement Program
502631FM01 WTF Sand/anthracite filter media replacement and under drain repairs $ 500,000 $ 531,000 $ 500,000 $ 547,000 $ 1,000,000 $ 1,078,000
2020 2021 2022 Total Budget $ Total Inflated $
FY1920 FY2122
https://coftc.sharepoint.com/teams/LightPower/Files/Finance/CIP/Master/Master_Capital_Budget_File.xlsx 4/| 9/Capital 2020 3:Improvement 35 PM Plan 1 of 2