HomeMy WebLinkAboutresolution.council.116-12 RESOLUTION#
(Series of 2012)
A RESOLUTION AUTHORIZING THE CITY OF ASPEN TO SUBMIT AN
APPLICATION TO THE COLORADO DEPARTMENT OF LOCAL AFFAIRS
FOR AN ENERGY AND MINERAL IMPACT ASSISTANCE GRANT.
WHEREAS, the City of Aspen Deputy Utility Director has prepared an
application for an Energy/Mineral Impact Fund grant from the Colorado Division
of Local Affairs ("DOLA"), in the amount of$200,000.00 to assist in the
construction of an additional waterline for the City's Aspen Airport Business
Center customers;
WHEREAS, DOLA requires official action from the governing body as part
of its application process;
WHEREAS, the Aspen City Council has determined that the Application, a
copy of which is attached as Exhibit A and incorporated by this reference, is
appropriate and in the best interests of the City and should be submitted.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF ASPEN, COLORADO:
That the Aspen City Council approves the Application and directs staff to submit
the Application for an Energy/Mineral Impact Grant to DOLA.
Dated:
Michael C. Irelajfd, Mayor
I, Kathryn S. Koch, duly appointed and acting City Clerk do certify that the
foregoing is a true and,accurate copy of that resolution adopted by the City Council
of the City of Aspen, Colorado, at a meeting held December 10, 2012.
Kath n S. Koch, City Clerk
Rev.7/12
STATE OF COLORADO #
(For Use by State)
Department of Local Affairs
ENERGY AND MINERAL IMPACT ASSISTANCE PROGRAM APPLICATION
Tier I or Tier II
Applications Must Be Submitted Electronically-Directions on Last Page
A. GENERAL AND SUMMARY INFORMATION
1. Name/Title of Proposed Project: AABC Waterline Tie-in
2. Applicant: City of Aspen
(In the case of a multi-jurisdictional application,name of the"lead"municipality,county,special district or other political subdivision).
In the case of a multi-jurisdictional application, provide the names of other directly participating political subdivisions:
3. Chief Elected Official (In the case of a multi-jurisdictional application, chief elected official of the"lead"political
subdivision):
Name: Mick Ireland Title: Mayor
Mailing Address: 130 South Galena Street Phone: (970) 920-5199
City/Zip: Aspen, CO 81611 Phone:
E-Mail Address: Mick.lreland @cityofaspen.com
4. Designated Contact Person (will receive all mailings)for the Application:
Name: Mike McDill Title: Deputy Utility Director
Mailing Address: 130 South Galena Street Phone: (970)429-1994
City/Zip: Aspen, CO 81611 Phone: (970) 319-9685
E-Mail Address: Mike.mcdill @cityofaspen.com
5. Amount of Energy/Mineral Impact Funds requested: (Tier I; Up to$200,000 or Tier II; Greater than$200,000 to
$1,000,000)
$200,000
6. Brief Description of the Project:
The reason for this project application in 100 words or less)
The City of Aspen currently serves the whole Aspen Airport Business Center(AABC) area of approximately 135
customers, including the Aspen Airport, through a single 18-inch line, which extends from the vicinity of the Aspen Lodge
to the southwest corner of this development. Any interruption of this 4,000-foot long line results in this whole area and the
Airport being without domestic water or fire protection. This project will bring an additional 12-inch waterline from the
southeast into this area's network to insure continuous availability of drinking water and fire protection.
7. Local priority if more than one application from the same local government(1 of 2,2 of 2,etc.) N/A
Page 1 of 8
B. DEMOGRAPHIC AND FINANCIAL INFORMATION.
1. Population
a. What was the 2010 population of the applicant jurisdiction? 6,658
b. What is the current population? 6,819
(Current/most recent conservation trust fund/lottery distribution estimate is acceptable.)
What is the source of the estimate? State Demographer
c. What is the population projection for the applicant in 5 years? 7,700
What is the source of the projection? 2.5% per year from State Demographer
2. Financial Information (Current Year):
In the column below labeled"Applicant'provide the financial information for the municipality,county,school district or special district directly
benefiting from the application. In the columns below labeled"Entity",provide the financial information for any public entities on whose behalf the
application is being submitted(if applicable).
Complete items "a through i"for ALL project types:
Applicant Entity Entity
a. Assessed Valuation (AV)Year: 2012 $1,280,000,000
b. Mill Levy 4.586 mills
c. Property Tax Revenue (mill levy x AV) $5,900,000
d. Sales Tax 2.1%/$11,200,000 %/$ %/$
Rate/Estimated Annual Revenue
e. Total General Fund Budget $21,900,000
f. Total Applicant Budget
(Sum of General Fund and all Special or Enterprise $95,200,000
Funds
g. Total Multi-year Debt Obligations for all Fund $2,800,000
Types*
h. Total Lease-Purchase and Certificates of
Participation obligations* N/A
i. General Fund Balance(Reserves) as of $9,200,000
January 1 of this current calendar year.
For projects to be managed through a Special Fund other than the General Fund (e.g. County Road and Bridge
Fund)or managed through an Enterprise Fund (e.g.water,sewer, county airport),complete items "j through
n,,.
Identify the relevant Special Fund or Enterprise Fund: City of Aspen Water Fund
j. Special or Enterprise Fund Budget Amount $9,491,746
2012
k. Special or Enterprise Fund Multi-Year Debt $_0_
Obligations*
I. Special or Enterprise Fund Balance (Reserves) $3,498,816
on January 1 of this calendar year 2013
m.Special or Enterprise Fund Lease-Purchase $_0_
and Certificate of Participation Obligations*
n. Special Fund Mill Levy (if applicable) N/A
For Water and Sewer Project Only complete items "o through q":
o. Tap Fee $8,060/ECU
p. Average Monthly User Charge
(Divide sum of annual residential revenues by 12 and then $24.50/Mo.
divide by the number of residential taps served.
q. Number of Taps Served by Applicant 3,850 taps
Include the sum of the year-end principal amounts remaining for all multi-year debt obligations, lease purchase
agreements or certificate of participation notes
Page 2 of 8
C. PROJECT BUDGET. List expenditures and sources of revenue for the project The totals on each side of the ledger must equal
Expenditures Sources of Revenue Funding
Dollar for Dollar Cash Match is Encouraged) Committed
List Budget Line Items(Examples: architect,engineering, construction, List the sources of matching funds and indicate either cash or Yes/No
equipment items,etc.) documentable in-kind contribution
Cash In-Kind
Construction $200,000 Energy/Mineral Impact Fund Grant $200,000 No
Request
*Energy/Mineral Impact Fund Loan $ -0- No
Request(If applicable)
Engineering Final Design and Bid $38,700 City of Aspen $38,700 Yes
Documents
Construction $809,600 City of Aspen $809,600 Yes
Construction testing &Observation $40,500 City of Aspen $40,500 Yes
TOTAL $888,800 TOTAL $888,800 $-0-
Please attach a more detailed budget if available *Loans with a 5%interest rate may only be awarded for potable
water and sewer projects. Leave blank if a loan is not requested.
Page 3 of 8
D. PROJECT INFORMATION.
The statutory purpose of the Energy and Mineral Impact Assistance program is to provide financial assistance to
"political subdivisions socially or economically impacted by the development, processing or energy conversion of
minerals and mineral fuels."
1. Demonstration of Need:
a. Why is the project needed at this time?
E city currently has a large area,which is served by only a single delivery point. Any interruption of that delivery
line will result in loss of domestic water and fire protection for that whole area, including our local airport. In 2012, the
made the budget commitment to start this second feed project.
b. How does the implementation of this project address the need?
This second feed pipe system to the AABC area will provide municipal standard redundancy of drinking water and fire
protection to this large area of ours stem.
c. Does this project, as identified in this application, completely address the stated need? If not, please describe
additional work or phases and the estimated time frame. Do you anticipate requesting Energy and Mineral Impact
Assistance funds for future phases?
This application will allow us to complete this project.
d. What other implementation options have been considered?
Because this area is bounded on the east by a deep canyon carrying the Roaring Fork River and on the west by State
Highway 82 and the Airport property,the project will be constructing this line over a very steep ridge and across a
sensitive conservation easement area. The alignment options are very limited. We did consider boring through the ridge,
or some portion of it, but initial cost estimates for all variations of this option were much higher than the standard trench
approach.
e. What are the consequences if the project is not awarded funds?
Eventually the City will need to fund the cost of this project to insure adequate water service to this area. The rate payers
in our community will be additionally burdened by this extra cost.
2. Measurable Outcomes:
a. Describe measurable outcomes you expect to see when implementation of this project is complete. How will the
project enhance the livability*of your region, county, city, town or community(e.g. constructing a new water plant will
eliminate an unsafe drinking water system and provide safe and reliable drinking water; the construction of a new
community center will provide expanded community services, or projects achieving goals regarding energy conservation,
community heritage, economic development/diversification, traffic congestion, etc.)?
*(Livability means increasing the value and/or benefit in the areas that are commonly linked in community development such
as jobs, housing,trans ortation,education,emergency mitigation,health and environment
Constructing this second feed pipeline will bring the dependability of our water system in the AABC area up to municipal
standards for both drinking water and firefighting needs.
b. How many people will benefit from the project? (i.e., region, county, city, town, community, subdivision, households or
specific area or group; or any portion thereof)
At an average on 4 people per commercial service and average airport use of 1,230 passengers per day, this project will
benefit about 1,770 people per day within this portion of our service area.
c. How will the outcome of the project be measured to determine whether the anticipated benefits to this population
actual) occur?
We will be able to isolate the two feed lines to flush, repair leaks, and otherwise maintain them separately,without
interrupting service in the area, and the wholes stem will be demonstrably more dependable.
d. Does this project preserve and protect a historic building, facility or structure? If yes, please describe.
No, not to my knowledge.
e. Will this project implement an energy efficiency/strategy that could result in less carbon footprint or conserve energy
use or capitalize on renewable energy technology? If yes, please describe.
Although the City of Aspen has a goal of providing 100% renewable power to our customers by 2015, this project will not,
in itself, reduce carbon footprint, conserve energy, or use any renewable energy technology.
3. Relationship to Community Goals
a. Is the project identified in the applicant's budget or a jurisdictionally approved plan (e.g. capital improvement plan,
equipment replacement plan, comprehensive plan, utility plan, road maintenance and improvement plan or other local or
re Tonal strategic management or planning document)? What is its ranking?
This project is identified in the 2012 and 2013 Water Fund budgets, in our Long Range Water Plan, and in our nearly
completed Water Utility Master Plan. It is one of only two major construction projects scheduled for 2013.
Page 4 of 8
4. Local Commitment and Ability to Pay
a. Why can't this project be funded locally?
Most(77%) of the project will be funded locally. Without this grant we will eventually fund it all, because of the significant
need. This grant assistance will allow the project to be completed in 2013 with less ultimate burden to our rate payers,
which will help preserve our capital fund to address the$48 million of needed repairs, upgrades, and replacements
identified in our nearly complete 2012 Master Plan.
b. Has this project been deferred because of lack of local funding? If so, how long?
It was originally programed for 2012, but other conflicts required it to be delayed until 2013. An affordable housing project
is being constructed at the southerly terminus of this new line and we had to wait for them to complete their portion of this
waterline in the summer of 2012 before we could contract for the rest of the connection. We still need to finalize two
easements toward the northern connection. Negotiations have progressed to the point that draft easement agreements
have been delivered to both of the parties. The conservation group is still finalizing the restoration plan across their
conservation easement. All of these items will be in place by the spring of 2013.
c. Explain the origin of your local cash match. (Note: Whenever possible, local government cash match on a dollar for
dollar match basis is encouraged.)
City funding will come from the Water Utility Fund, which is fully supported by water use fees.
d. What other community entities, organizations, or stakeholders recognize the value of this project and are
collaborating with you to achieve increased livability of the community? Please describe how your partners are
contributing to achieve the improvement to the livability of the community through this project. If in-kind contributions are
included in the project budget, detailed tracking will be required on project monitoring report.
This is solely a Water Utility project.
i. Please describe the level of commitment by each collaborator. (e.g. fee waivers, in-kind services, fundraising,
direct monetary contribution, policy changes.)
All of our local funding will be direct monetary contribution.
ii. Please list the value of the resources that each collaborator is bringing to the program.
e. Has the applicant dedicated the financial resources in their current budget, reserve funds and/or unused debt capacity
that are being used for the local matching funds? Explain if No
Yes.
f. Have the applicant's tax rates, user charges or fees been reviewed recently to address funding for the proposed
project?
The City Council will approve new rates with the 2013 budget for our waters stem based on a complete rate stud .
g. If the tax rate, user charges or fees were modified,what was the modification and when did this change occur?
City Council will approve an approximately 4% increase to go into effect January 1, 2013.
h. Has the applicant contacted representatives from local energy or mineral companies to discuss the project? If yes,
when was the contact and what was discussed.
The abandon mining operations in and around the City of Aspen and our drinking water source areas do not have any
current mineral operators.
i. Has the applicant requested financial support from the industry? If yes, when was the contact, what amount did you
request? What were the results? If no, why not?
No, none are available to my knowledge.
5. Readiness to Go
a. Assuming this project is funded as requested, how soon will the project begin? What is the time frame for
completion?
Our schedule is to complete the design and easement negotiations by end of February 2013; bid the work in March or
A ril; and start construction by the first of June, with completion by the end of the 2013 construction season.
b. Describe how you determined that the project can be completed within the proposed budget as outlined in this
application? Are contingencies considered within the project budget?
We have had a couple of contractors look at the project and confirm this Ian's constructability and approximate cost.
c. Has the necessary planning been completed? How? What additional design work or permitting must still be
completed, if any? When? How did the applicant develop project cost estimates? Is the project supported by bids,
professional estimates or other credible information? Please attach a copy of any supporting documents.
Our design consultant, Merrick&Co., provided the design and the current cost estimates with input from a couple of local
contractors.
6. Energy&Mineral Relationship
a. Describe how the applicant is, has been, or will be impacted by the development, production, or conversion of energy
and mineral resources.
f Page 5 of 8
The attached map illustrates the numerous historic mining claims in the immediate area around the City of Aspen. Some
of these mines, like the Durant, still discharge water which is managed through the City. Other abandon operation left
tailing piles, some of which threaten to contaminate either Maroon or Castle Creeks(our primary raw water sources). Two
areas in our service area have soil which are, or were, designated Super Fund Sites due to the high concentrations of
chemicals like arsenic and lead.
b. To further document the impact in the area, name the company or companies involved, the number of employees
associated with the activities impacting the jurisdiction and other relevant, quantitative indicators of energy/mineral impact.
Since these operations are all abandoned, this information is no longer readily available. It would take serious and
probably expensive research to develop this information.
7. Management Capacity
a. How will you separate and track expenditures, maintain funds and reserves for the capital expenditures and
im rovements as described in this project?
This project is budgeted as a separate account in the Water Fund and all expenses will be process through this account.
b. Describe the funding plan in place to address the new operating and maintenance expenses generated from the
r. ct?
improvement will actually make it easier to maintain this portion of our distribution system, because we will now be
to manage the two feeds separately, instead of only doing maintenance on the single line when all affected parties
ead and willing.
c. Describe the technical and professional experience/expertise of the person(s) and/or professional firms responsible to
manage this project.
Merrick&Company is a long standing professional consulting firm. Their local staff has been involved in nearly every one
of our water system improvements for the past eight years. Both the Deputy Director and the Utility Engineer for the
Water Utility are registered Colorado Professional Engineers. All of the local consulting and utility staff have multiple
ears of voiect management experience.
d. Does the project duplicate service capacity already established? Is the service inadequate? Has consolidation of
services with another provider been considered?
Ese City is the only water provider in this area. The single line serving this area does not meet a standard of looped
ice to p rovide the redundancy generally expected for fire protection and dependable domestic service. There is no
r water provider to consolidate with in this area.
E. HIGH PERFORMANCE CERTIFICATION (HPCP) PROGRAM COMPLIANCE.
Colorado Revised Statutes(C.R.S. 24-30-1301 to 1307) require all new facilities, additions, and renovation projects
funded with 25%or more of state funds to conform with the High Performance Certification Program (HPCP) policy
adopted by the Office of the State Architect(OSA) if:
• The new facility, addition, or renovation project contains 5,000 or more building square feet; and
• The project includes an HVAC system; and
• In the case of a renovation project,the cost of the renovation exceeds 25% of the current value of the property;
and
• The project has NOT entered the design phase prior to January 1, 2008.
The HPCP requires projects achieve the highest possible LEED certification with the goal being LEED Gold. Projects are
strongly encouraged to meet the Office of the State Architect's(OSA) Sustainable Priorities in addition to the LEED
prerequisites. Projects funded through DOLA are required to participate in the OSA's registration and tracking process.
See DOLA's HPCP web page for more information or contact your DOLA regional manager.
In instances where achievement of LEED Gold certification is not practicable, an applicant may request a modification of
the HPCP policy or a waiver if certain conditions exist.
Please answer the following questions:
1. What is the total building square footage of the new facility, addition, or renovation? None
2. Does the project include an HVAC system? Yes No X
3. Is the project a renovation? (If no, please skip to Question 6 below.) Yes No X
4. What is the current property value*? $
5. What is the total project cost for the renovation? $
6. Will you need assistance locating resources, third party consultants, or technical assistance for LEED requirements,
preparing cost estimates, or otherwise complying with the HPCP?
Page 6 of 8
x
APPLICATION SUBMISSION INSTRUCTIONS
AND
OFFICIAL BOARD ACTION DATE (REQUIRED)
Application and attachments must be submitted electronically in
WORD .DOC (Preferred) or .PDF Format (Unsecured) to: ImpactGrants(cD-state.co.us
In email subject line include: Applicant Local Government name and Tier for which you are applying
-example- Subject: Springfield County EIAF Grant Request, Tier 1
NOTE: Please do not submit a scanned application(scanned attachments A1.
(If you are unable to submit electronically please contact your DOLA regional manager)
For any questions related to the electronic submittal please call Bret Hillberry @ 303.866.4058
Attachments List(Check and submit the following documents, if applicable):
► Preliminary Engineering Reports
► Cover Letter X
► Architectural Drawings X
► Cost Estimates X
► Detailed Budget
► Map showing location of the project X
► Map showing local mine sites X
► Attorney's TABOR decision
Official Board Action taken on
December 10, 2012 '
Date
Submission of this form indicates official action by the applicant's governing board
authorizing application for these funds.
\(H:)\Grants\Aspen EIAF Grants\AABC EIAF Application
Page 8 of 8 ;
Yes No X Explain
F. TABOR COMPLIANCE.
1. Does the applicant jurisdiction have the ability to receive and spend state grant funds under TABOR spending
limitations? Explain:
Yes, the City voters approved lifting any TABOR spending and revenue limitations, except for ad valorem property tax, in
the November 1994 election, ballot question 2B, by a vote of 1368 to 561.
2. If the applicant jurisdiction receives a grant with Federal Mineral Lease funds, will the local government exceed the
TABOR limit and force a citizen property tax rebate?
No, receipt of a grant with Mineral Lease funds will not force a rebate, since the restrictions on spending and revenues
from all sources except property taxes were eliminated with the approval of the ballot question referenced above.
3. Has the applicant jurisdiction been subject to any refund under TABOR or statutory tax limitations? Explain.
No.
4. Has the applicant sought voter approval to keep revenues above fiscal spending limits? Explain.
Yes, see#1, above.
5. Are there any limitations to the voter approved revenues? (e.g., Can revenues only be spent on law enforcement or
roads?
There are no limitations to the voter approved revenues.
6. If the applicant jurisdiction is classified as an enterprise under TABOR, will acceptance of a state grant affect this
status? Explain.
No, because even with this$200,000 DOLA grant the enterprise fund will receive less than 10% of its annual revenues in
rants from all Colorado state and local governments combined.
G. ENVIRONMENTAL REVIEW.
Indicate below whether any of the proposed project activities:
1. Will be undertaken in flood hazard areas. Yes No X
List flood plain maps/studies reviewed in reaching this conclusion. Describe alternatives considered and mitigation
proposed.
2. Will affect historical, archeological or cultural resources, or be undertaken in geological
hazard area? Yes No X
Describe alternatives considered and mitigation proposed.
3. Address any other related public health or safety concerns? Describe. Yes No X
Page 7 of 8