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HomeMy WebLinkAboutagenda.council.worksession.20171107 CITY COUNCIL WORK SESSION November 07, 2017 4:00 PM, City Council Chambers MEETING AGENDA I. Budget: Component Unit Funds (including APCHA funds) II. We-Cycle Funding request P1 2018 Proposed Budget November 7, 2017 P2I. 2 APCHA Funds Housing Administration Fund (620) Smuggler Housing Fund (622)P3I. Housing Administration Fund 3 •City / County Subsidy Need Increases •Maintenance Reimbursements Truscott II and ACI Labor Costs Truscott I and Marolt Shared Equipment •Property Management Fees 12% of Rental Income for Most PropertiesCity of Aspen Subsidy $320,350 Pitkin County Subsidy $320,350 Property Management Fees $465,600 Foreclosures & Other 1st Time Sales $600,000 Annual Turnover Sales $275,000 Maintenance Reimbursements $163,120 Other Revenues $114,410 Revenues = $2,258,830 2017 2018 2019 2020 2021 2022 $259,200 $320,350 $396,800 $439,720 $448,535 $457,490 Increase:24%24%11%2%2%P4I. Housing Administration Fund 4 •Capital: $1.5M $950,000 Database Project ▪Future Costs for Data Collection / Scrubbing $500,000 Foreclosure (Placeholder) $27,000 Fleet Replacement •Supplemental: $10,000 Cleaning Services •Debt Service for New Office Space Maintain Park Central West Lease Administrative $847,860 Property / Facilities Maintenance $240,890 Housing Sales & Rental Services $623,970 Annual Debt Service $160,000 Capital $1,477,000 Expenditures = $3,349,720 P5I. Housing Administration Fund 5 2018 2019 2020 & Beyond HIMS & HERS Project $950,000 Systemwide Data Collection (Contractor)$300,000 Data Entry and Cleaning (Contractor)$105,000 Miscellaneous (Licensing, Maintenance, Training)$50,000 Subtotal Project Costs $950,000 $455,000 Licenses (On-Going)$50,000 Maintenance / Hosting (On-Going)$10,000 Training (On-Going)$10,000 Subtotal Operational Costs $70,000 $1.4 Million (from Fund Balance)P6I. Housing Administration Fund 6 2017 Budget (Last Year’s Plan) $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 2017 2018 2019 2020 2021 2022 Ending Fund Balance Revenue Expense 12.5% Reserve $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 2017 Forecast 2018 2019 2020 2021 2022 Ending Fund Balance Revenue Expense 12.5% Reserve 2018 Proposed Budget P7I. Smuggler Housing Fund 7 •APCHA Owned Property 11 Units Catetory 1 •Rent Increase: 1.5% Rental Income $71,500 Other Revenues $6,770 Revenues = $78,270 P8I. Smuggler Housing Fund 8 •Base Budget Increase: 1.3% •No Supplementals •Capital: $5,400 Annual appliance / hot water authority Administrative $16,100 Property / Facility Maintenance $37,550 Capital $5,400 Property Management Fees $8,600 Expenditures = $67,650 P9I. Smuggler Housing Fund 9 Net Change to Fund Balance: $10,620 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 2017 Forecast 2018 2019 2020 2021 2022 Ending Fund Balance Revenue Expense 12.5% Reserve P10I. 10 Tax Credit Properties Truscott II Affordable Housing Fund (641) Aspen Country Inn Affordable Housing Fund (642)P11I. Truscott II Housing Fund 11 •LLLP Owns Property (April 2001) General Partner: APCHA Limited Partner: Boston Financial ▪2017 Buyout Option: $350,000 •Rental Rate Increase: 1.5% •State Section 8 Housing Assistance Rental Income $990,000 Rental Subsidy $29,800 Other Revenues $35,640 Revenues = $1,055,440 P12I. Truscott II Housing Fund 12 Administrative $86,280 Property / Facility Maintenance $311,180 Sales, Rental and Management Services $116,000 Debt Service $396,940 Expenditures = $910,400 •No Capital in 2018 •Supplemental Share of Maintenance Vehicle •Debt Oustanding CHFA Mortgage (May 2003): $5,650,000 Subordinate City Note (Sep. 2001): $2,900,000 P13I. Truscott II Housing Fund 13 Net Change to Fund Balance: $145,040 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 2017 Forecast 2018 2019 2020 2021 2022 Ending Fund Balance Less Req. Reserve Revenue Expense 12.5% Reserve P14I. Aspen Country Inn Housing Fund 14 Rental Income $393,820 Rental Subsidy $6,700 Other (Laundry, Late Fees, Misc) $8,475 Revenues = $408,995 •LLLP Owns Property (Oct 2016) Managing General Partner: City of Aspen Investment Limited Partner: Boston Capital Administrative Partner: APCHA •Rental Rates: 1.5% Increase •State Section 8 Housing Assistance P15I. Aspen Country Inn Housing Fund 15 •Property Renovation Wraps Up 2017 •Annual Debt Payments: $132K ▪CHFA Loan: $2,388,000 •Management Fees: 12% of Rent •Supplemental: $15,000 ▪Electricity for Heat Tape ▪HE Boilers Administrative $23,154 Partnership Costs $3,060 Property / Facility Maintenance $151,974 Property Management Fees $47,824 Debt Service $132,160 Expenditures = $358,172 P16I. Aspen Country Inn Housing Fund 16 Net Change to Fund Balance: $50,823 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 2018 2019 2020 2021 2022 Adjusted Ending Fund Balance Revenue Expense Required Operating Reserve P17I. Aspen Country Inn Housing Fund 17 ‘‘WaterFall’’ For Disbursement of Annual Operating Income ▪1st: Replacement Reserve: $14,000 /yr ▪2nd: Past Due Payments to Investment Limited Partner (N/A Unless Get Behind) ▪3rd: Asset Management Fee ($3,000/yr) ▪4th: Replenishment of Operating Reserve (maintain $122,190 target) ▪5th: Deferred Developer Fee (City owed $186,000) ▪6th:Partnership Management Fee: ($3,000/yr) ▪7th: Repayment of Seller Loan ($2.7M to City) ▪8th:Repayment of City Original Loan ($3.9M to City) ▪9th:Excess 90% Investment Partner, 9.95% General Partners, and 0.05% to Class B Limited Partners P18I. MEMORANDUM TO: Mayor and City Council FROM: R. Barry Crook, Assistant City Manager DATE OF MEMO: November 3, 2017 MEETING DATE: November 7, 2017 RE: We-Cycle Funding Request REQUEST OF COUNCIL: We-Cycle requests funding from the City Council in the amount of either $145,000 or $183,333.33. PREVIOUS COUNCIL ACTION: City Council and other public sector entities have provided funding to We-Cycle since 2012 and supported the effort since its launch in the summer of 2013. DISCUSSION: If Council wishes to provide the requested funding, you should determine the amount and direct staff to amend the proposed 2018 budget. City Funding* City/County Grant Funding EOTC Funding RFTA Funding Pitkin County Funding Basalt Funding Eagle County Funding TOTAL Comments 2012 235,000$ 235,000$ CMAQ Funding for stations 2013 26,000$ 26,000$ We-Cycle launches service in Aspen / Canary Program promotion ($15K) / traded parking spaces at Hopkins and Cooper We-Cycle passes for city employees ($11K) 2014 -$ 2015 17,500$ 17,500$ City purchased 50% bike station at city hall 2016 101,680$ 4,500$ 7,500$ 48,000$ 161,680$ City provided operational support ($25K), purchased bikes, stations, equipment ($52,500), Drive Less season passes ($17K), and Canary Program promotion ($7180). 2017 14,700$ 100,000$ 30,000$ 20,000$ 284,700$ Drive Less Program Season Passes / EOTC operational support / cumulative RFTA operational support since 2012 Proposed 2018 145,000$ 196,000$ 100,000$ 100,000$ 541,000$ Pending City funding request / Pending CMAQ grant request for additional bike stations at Burlingame, AABC & Buttermilk / EOTC operational support / RFTA Funding for an FTE to do planning Projected 2019 100,000$ 100,000$ 200,000$ Projected 2020 100,000$ 100,000$ TOTAL 304,880$ 435,500$ 300,000$ 420,000$ 7,500$ 78,000$ 20,000$ 1,565,880$ 120,000$ * City has also provided some in-kind contributions: 6 station locations in the ROW or city property, free storage space, free use of a parking space in the garage ($200/mo), and paid for free passes to Drive Less participants (558 total). P19 II. RECOMMENDED ACTION: An agreement of some kind should be created to clarify the services to be offered and the conditions for those services. That agreement should clarify that the Mobility Lab decisions around bicycles are not subject to veto by We-Cycle. CITY MANAGER COMMENTS: P20 II. TO: Aspen City Council FROM: Mirte Mallory, WE-cycle, Co-Founder and Director RE: 2018 Bike Transit Services Proposal for the City of Aspen PROPOSAL: In the summer of 2018, the City of Aspen provides “No-Fare to the User” bike transit services, for the first 30 minutes of each ride only, as one of its on-demand mobility offerings. This fare adjustment would align bike transit fares with that of other City of Aspen transportation modes. The City of Aspen has established a public transportation landscape and precedent in which around town public transit, in-town RFTA routes and The Downtowner, are offered at no cost to the rider and are funded solely by the City of Aspen. The City’s transit landscape is poised to change again in the summer of 2018 with potential new travel modes to be introduced through the Aspen Mobility Lab. Because of changes in the public transportation landscape, it is becoming increasingly challenging for WE-cycle, the Roaring Fork Valley’s bike transit provider, to secure reliable funding through its public/private partnership model. Private funding sources – Pass Sales and Sponsorship – are impacted by this no-fare business environment. Below is a proposal for the City Aspen to consider which would make the bike transit user experience consistent with other public transit within the community and concurrently provide the City of Aspen with Presenting Sponsor recognition and messaging surfaces for its investment. PROPOSAL DETAILS: WE-cycle is proposing that the City of Aspen fund the community’s bike transit services as it does the community’s fixed-route RFTA services, on-demand Downtowner service, and other ancillary services and becomes the Aspen System’s Presenting Sponsor, as follows: • The City of Aspen contracts WE-cycle to operate 20 stations and 100 bikes from May – October, 2018. Terms, service levels, and reporting requirements to be mutually agreed-upon. • WE-cycle’s bike transit services become “no-fare to the user” for the first 30 minutes only. WE- cycle remains committed to its founding principal of being a bike transit system, not a bike rental service. Hence, significant Overtime Fees would still apply to rides over 30 minutes and messaging would direct recreational riders to local bike shops. • As Presenting Sponsor, select sponsorship surfaces on bikes and stations would be available for the City of Aspen to use as it so chooses (ie promote its other transit services, its community initiatives, the Mobility Lab, etc.) P21 II. Bike transit is aligned with Council’s goals of providing enhanced mobility solutions that diminish reliance on single-occupancy vehicles. With 161,000 rides since opening, it has become a proved and relied-upon mode of travel. According to WE-cycle Season Passholders, 46% of their WE-cycle rides replace car trips. With five years of experience operating safe, reliable, and proven bike transit services in Aspen, WE-cycle can help residents and the City of Aspen’s workforce mode shift from car to bike by making WE-cycle fare free. The City of Aspen is one of WE-cycle’s ten Founding Partners. The City of Aspen has been a consistent and generous supporter of WE-cycle over the past five years through securing Federal grant funding, staff time, station purchases, pass underwriting, cross-promotional marketing, system planning, and providing funding through its participation in RFTA and the EOTC. This proposal provides an opportunity for the City of Aspen and WE-cycle to work together even more closely in a framework that is consistent with the City’s other transit contracts. I believe a strong partnership between the City of Aspen and WE-cycle will greatly enhance the success and growth of bike transit ridership. Thank you for your consideration of this proposal given the City of Aspen’s changed, and changing, transportation landscape. Change is good. WE-cycle recognizes that it too is an agent of change and is eager to help the City of Aspen work towards its stated goal of reducing traffic congestion by providing healthy, car-free transit services. Respectfully, Mirte Mallory WE-cycle: Co-Founder | Executive Director P22 II. APPENDIX FINANCIAL BACKGROUND: Seven years ago, WE-cycle, a 501(c)(3) nonprofit, presented to the Aspen City Council the organization’s goal to bring bike transit to Aspen through a public/private partnership as an active, healthy, car-free, and carbon-neutral form of transportation. The vision was to offer shared bikes as a first/last mile connection to the valley’s highly-functioning RFTA service and as a fast, convenient, and flexible mode of travel for residents, the workforce, and lastly, visitors. WE-cycle outlined a plan to launch in Aspen and then eventually within the Roaring Fork Valley to create a seamless and integrated regional bike-bus-bike transit system. Founded as public/private partnership (P3), WE-cycle’s start-up infrastructure was funded 65% by the private sector (Founding Partners, individual donors, and grants) and 35% by the public sector (Federal CMAQ funding and respective local matches from the City of Aspen and Pitkin County). WE-cycle’s business model sought to support annual operations through three revenue streams, taking into consideration the reasonable market sizes of each: public investment, pass sales, and sponsorship. One of WE-cycle’s objectives in establishing itself as a public/private partnership was to broaden support for the initiative, speed adoption, and generate cost efficiencies. This model has proven successful from the private sector with local businesses sponsoring WE-cycle and subsequently nurturing a culture within their organization that encourages and facilitates the use of multi-modal transit, including WE-cycle. WE-cycle attributes much of its ridership growth to its collaborative partnerships with small and large local businesses and is committed to maintaining these relationships and engagement. From the beginning, this model of transit funding was distinct within the City of Aspen. The keys to its success and ongoing financial viability rely on charging a fare for an in-town transit service and engaging the private sector to fund the program through sponsorship. In its first years, private sponsorship and grants accounted for the large majority of WE-cycle’s revenue, followed by pass sales, and then the public sector. Each year, as WE-cycle becomes more established, the three revenue streams have moved closer towards an equilibrium in which the annual operating budget is comprised of: 1/3 – Public Investment. 1/3 – Pass Sales, 1/3 – Sponsorship. However, the diminishment of any of these three funding sources poses serious financial and practical consequences to WE-cycle’s ongoing ability to provide bike transit services in the City of Aspen. Beginning in 2016, the business proposition of offering public transit in the City of Aspen changed. The City introduced a new no-fare to the user, on-demand mobility service, The Downtowner. In stark contrast to WE-cycle, The Downtowner is funded 100% by the City of Aspen and does not require private sponsorship dollars to operate, nor did it require an investment in capital. WE-cycle is a believer and supporter of multiple mobility modes and sees The Downtowner as an enhancement to the City’s transportation options by giving individuals more choices to get out of their cars. However, the introduction of this service has compromised the future sustainability of WE-cycle to reliably generate revenue from two of its three funding sources: Pass Sales and Sponsorship. Why would someone choose to pay to ride a bike across town when they hail a free shuttle service and be driven? Why would a local business sponsor a WE-cycle station when the City of Aspen provides other on-demand transit services that don’t require their participation? WE-cycle questions the alignment of community values given that riding a bike for transit purposes, i.e. bike share, is now the only short-haul public transit service for which a user must pay to ride in the Upper Roaring Fork Valley. Given this changing transportation ecosystem, WE-cycle must continue to adapt its revenue model, WE-cycle is grateful to the public sector for continuing to align its investment in bike transit with that of its other transit offerings. As illustrated in the following financials, the EOTC and RFTA’s investment in regional bike transit service, and thereby the City of Aspen’s investment through their participation in these entities, was essential to WE-cycle’s financial viability in 2017. P23 II. Of note in reviewing WE-cycle’s financials: • The majority of bike share systems throughout the country have staff within the transportation or parking department of a particular jurisdiction who manage, secure funds, promote the system, conduct station planning and lead bike share integration with the other transit offerings. This is not the case for bike transit in the Roaring Fork Valley. WE-cycle financials include 100% of the costs of operating bike transit services and maintaining an integrated mobility app. • WE-cycle’s Basalt revenues and expenses are accounted for separately. Wherever possible, revenues and expenses are allocated directly to their respective cost center. • WE-cycle continues to operate a lean and nimble organization out of its commitment to both environmental and financial sustainability. 5 years and over 161,000 rides later, WE-cycle still only has 2 year-round employees. 2017 Aspen System - Revenues and Expenses (Projected) Revenue Amount % Description Public Investment $125,000 42% First Year EOTC funding: $100,000, RFTA: $25,000 Pass Sales $67,377 22% Pay-per-Ride Passes, Purchased Season Passes, No- Fare to User Season Passes courtesy of the City of Aspen’s Drive Less Program, and Overtime Fees. Down from 2016 by ~ 14%. Private Sponsorship $107,323 36% Sponsorships on bikes, of stations, of Community Panels, of events. Sponsors’ receive No-Fare to the User Season Passes to give to their employees as a benefit. Down from 2016 by ~ 24%. PROJECTED* REVENUES $299,700 * 2017 revenues and expenses are projected, as WE-cycle’s season does not conclude until November. Projections are based on actuals. Expense Amount Description Payroll $182,662 Year-Round Staff 2 full-time employees Organizational leadership, fundraising, planning, sponsorship, marketing and communications, graphic design and website, pass sales, rider outreach, events, passholder help line, partner engagement, grant writing, equity programming, financials, budgeting, reporting, insurance, compliance, human resources, office management, mobility app development and integrations, software evolution and innovation. Seasonal Operations Staff 2 full-time employees 6 part-time employees Day-to-day operations including bike balancing and cleaning, monthly bike check- overs, station maintenance and cleaning, on-street customer service, software and hardware management. 12 hours per day, 7-days a week, May – October. Operations & Maintenance $60,678 Parts, maintenance, tools, equipment, balancing vehicles, cellular connectivity, software fees, insurance, installs, storage. Organizational $47,045 Office and shop rent, administrative expenses, marketing and advertising, website and app development, events and outreach, promotional materials, pass materials. PROJECTED EXPENSES** $290,386 ** Any delta between revenues and expenses is allocated to WE-cycle to a capital account for equipment repair and replacement. P24 II. 2018 Budgeted Revenues and Expenses As WE-cycle enters its sixth season, it will place an increased emphasis on the connectivity and integration of its regional service in partnership with its transit partner, RFTA. Regional transit implementation requires deliberate and thorough planning, cultivating of multi-jurisdictional partnerships, focusing on integration opportunities and ridership growth, and communicating about priorities to further a seamless and coordinated multi-modal system. WE-cycle, as the Roaring Fork Valley’s established bike transit system and provider, and mobility app innovator, is integral to the current focus on reducing congestion from single occupancy vehicles up and down the valley. Over the years, over 90 public and private partners have made significant financial investments in WE- cycle’s existing infrastructure. It is WE-cycle’s mission and fiduciary responsibility to maintain service levels, assets, and continue to provide a sustainable and integrated valley-wide service. To this end, in 2018 WE-cycle will invest more significant time and resources in its integration with RFTA and commitment to being the valley-wide bike share operator and valley-wide mobility app aggregator to help facilitate that the valley’s existing, and future, multi-modal transit offerings connect seamlessly. RFTA has a made a multi-year commitment of a minimum of $100,000 per year for the next three years to support ongoing collaboration, integration, and local and regional planning. As a funder of RFTA, the City of Aspen will benefit from this investment on a City level by being the beneficiary of focused long- term bike transit planning for the Aspen area, multi-modal pass integration, optimization of resources, implementation of best management practices, and possible cost-savings platforms, At a regional level, the City will benefit as WE-cycle advances in implementing bike share in other communities to help provide the first mile of the commute to Aspen’s workforce. 2018 Aspen System - Revenues and Expenses - (Budgeted) Funding Source Amount Description Committed EOTC Investment $100,000 A two-year commitment, subject to annual appropriations, will allow WE-cycle to plan on a longer horizon and thereby retain core and highly-skilled staff which both translate into cost-savings and enhanced service levels. The City of Aspen is an EOTC funder. Proposed City of Aspen Investment $145,000 No-Fare to the User WE-cycle for the first 30 minutes only every ride + The City becomes WE-cycle’s Presenting Sponsor thereby receiving select on bike and station messaging surfaces. Private Sponsorship $30,000 Sponsorships on bikes, of Community Panels, of events. WE-cycle remains committed to its private partnerships both to diversity its income and to cultivate collaborations which lead to enhanced ridership engagement. BUDGETED REVENUES $275,000 Expense Amount Description Payroll Aspen System $170,000 Year-Round Organizational Staff and Seasonal Operations Staff Operations & Maintenance $56,000 Parts, maintenance, tools, equipment, balancing vehicles, cellular connectivity, software fees, insurance, installs, storage. Organizational $49,000 Office and shop rent, administrative expenses, marketing and advertising, website and app development, events and outreach, promotional materials, pass materials. BUDGETED EXPENSES $275,000 P25 II. City of Aspen Investments in WE-cycle since 2013 The City of Aspen has been a partner of WE-cycle since its founding and as a community has benefited from the services provided by the public/private partnership. According to WE-cycle Season Passholders, 46% of their rides replace car trips. The following investments have helped replace over 51,980 car trips in and around the City of Aspen thereby directly helping the City fulfill its traffic congestion reduction goals. Capital Investments Year Amount Description 2012 $6,023 CMAQ local contribution to match Federal contribution of $28,977 2014 $17,500 Contribution of 50% to purchase of 11-dock City Hall Station, other 50% paid for by private partners. 2016 $52,500 Contribution to purchase “Experiment Kit” consisting of 3 brains, 25 docking stations, 9 bikes. TOTAL: $76,023 Operating Investments Year Amount Description 2016 $25,000 To support WE-cycle operations in adjacency to Aspen but routes as an enhancement to the City of Aspen multi-modal transportation system. 2016 $4,500 CMAQ local contribution to match federal contribution of $28,977 TOTAL: $29,500 Drive Less Program – WE-cycle Pass Underwriting Year Amount Description 2016 $17,000 Underwriting of 330 No-Fare WE-cycle Season Passes for individuals who chose WE-cycle as their Drive Less Program Pledge Perk AND underwriting of 79 No- Fare WE-cycle Season Passes for those who activated their RFTA Seasonal Zone Pass as a WE-cycle Pass. 2017 $14,700 Underwriting of 178 No-Fare WE-cycle Season Passes for individuals who chose WE-cycle as their Drive Less Program Pledge Perk AND underwriting of 116 No- Fare WE-cycle Season Passes for those who activated their RFTA Seasonal Zone Pass as a WE-cycle Pass. TOTAL: $31,700 Environmental Sustainability Investments Year Amount Description 2013 $15,000 Canary Initiative investment to promote the Canary Initiative and its goals on all WE-cycle stemcaps for 2013 and 2014. 2016 $7,180 Canary Tags investment in electric balancing bike to grow number of bikes balanced without a vehicle. In 2017, 70% of WE-cycle balancing occurred by balancing bike. This scale is unprecedented in the bike share industry. TOTAL: $22,180 In-Kind Year Amount Description 2012 – Present TBD Staff support and expertise in securing Federal CMAQ grants and ongoing support of, and collaboration with, WE-cycle. 2016 TBD Office space and utilities in the Rio Grande Building then Power House. P26 II.