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HomeMy WebLinkAboutAgenda - Mail Packet - 4/21/2020 - City Council Finance Committee Agenda - April 20, 2020Finance Administration 215 N. Mason 2nd Floor PO Box 580 Fort Collins, CO 80522 970.221.6788 970.221.6782 - fax fcgov.com 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: 2 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 4 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, 6 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 8 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 9 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. 10 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