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HomeMy WebLinkAboutPACKET Town Board Study Session 2025-04-22 Town of Estes Park TOWN BOARD STUDY SESSION April 22, 2025 from 3:30 p.m. – 5:00 p.m. Town Hall Board Room 170 MacGregor Ave, Estes Park Accessing Meeting Translations (Accediendo a las Traducciones de la Reunión) can be found on the Town website at www.estes.org/boardsandmeetings Public comment is not typically heard at Study Sessions, but may be allowed by the Mayor with agreement of a majority of the Board. This study session will be streamed live and available at www.estes.org/videos AGENDA 3:30 p.m. Electric Rate Study. (Director Bergsten) 4:10 p.m. Annexation Policy. (Senior Planner Hornbeck) 4:45 p.m. Trustee & Administrator Comments & Questions. 4:55 p.m. Future Study Session Agenda Items. (Board Discussion) 5:00 p.m. Adjourn for Town Board Meeting. Informal discussion among Trustees and staff concerning agenda items or other Town matters may occur before this meeting at approximately 3:15 p.m. © 2025 NEWGEN STRATEGIES AND SOLUTIONS, LLC ESTES PARK POWER AND COMMUNICATIONS RATE STUDY PROPOSED RATE PLAN April 8, 2025 2© 2025 NEWGEN STRATEGIES AND SOLUTIONS, LLC FINANCIAL FORECAST RESULTS AGENDA 2 1 Rate Study Process 2 Financial Forecast 3 Proposed Revenue Increase Plan 4 Next Steps 3© 2025 NEWGEN STRATEGIES AND SOLUTIONS, LLC RATE STUDY PROCESS: OVERVIEW 3 STEP 1 STEP 2 STEP 4 STEP 3 STEP 5 Determine the revenue requirements of the utility during the study period Unbundle costs by functions and services (source of supply, distribution, customer) Classify costs (demand, energy, customer costs, etc.) Allocate costs among customer classes Design rates Financial Forecast Cost Allocation Rate Design © 2025 NEWGEN STRATEGIES AND SOLUTIONS, LLC RATE STUDY PROCESS FINANCIAL FORECAST 4 Test Year Revenue Requirement and Rate Revenues EPPC Operating and Capital Expenses, Audited Rate Revenues Forecast Revenue Requirement and Revenues EPPC System Load, Rates and Expense Forecasts Adjust Use of Debt and Rate Changes to Cover Costs EPPC Customer Base Rate Changes and Annual Debt Issues 5© 2025 NEWGEN STRATEGIES AND SOLUTIONS, LLC RATE STUDY PROCESS: COST OF SERVICE 5 © 2025 NEWGEN STRATEGIES AND SOLUTIONS, LLC RATE STUDY PROCESS UNBUNDLE BY FUNCTION 6 Typical Electric Utility System Configuration © 2025 NEWGEN STRATEGIES AND SOLUTIONS, LLC RATE STUDY PROCESS UNBUNDLE BY FUNCTION 7 Platte River Power Authority (PRPA): Generation and Transmission Estes Park Power & Communications (EPPC): Distribution and Customer Service © 2025 NEWGEN STRATEGIES AND SOLUTIONS, LLC RATE STUDY PROCESS GENERATION FUNCTION AND TRANSMISSION – PRPA 8 •Generation: ̶The generation function is responsible for serving demand and producing energy. •The power plant portfolio is sized to meet the maximum demand requirements of the system (PRPA). •PRPA’s goal is to transition to a 100% noncarbon energy mix by 2030. •Transmission: ̶The transmission function is responsible for transmitting electricity from generation to the distribution system. ̶The utility must size transmission substations, transformers, and lines to serve the maximum demand requirements of the system. © 2025 NEWGEN STRATEGIES AND SOLUTIONS, LLC RATE STUDY PROCESS DISTRIBUTION FUNCTION AND CUSTOMER – EPPC 9 •Distribution: ̶The distribution function is responsible for distributing electricity from the transmission line to customers. ̶The utility must size distribution substations, transformers, lines, and services to serve the maximum local demand requirements of their customers. •Customer: ̶The customer function is responsible for utility billing and customer service. ̶EPPC future customer function: •DER Programs development and execution. •Communication and information. © 2025 NEWGEN STRATEGIES AND SOLUTIONS, LLC RATE STUDY PROCESS FIXED VS. VARIABLE COSTS AND REVENUES 10 Typical Cost Functions Typical Cost Classifications Source of Power Demand Related Energy Related Distribution Demand Related Customer Related Customer Customer Related Graphs are for illustrative purposes only. © 2025 NEWGEN STRATEGIES AND SOLUTIONS, LLC RATE STUDY PROCESS COST OF SERVICE TO RATE DESIGN 11 Cost of Service Revenue requirement. Functionalize. Classify. Guide for cost-based rates. Rate Making Policy decisions. Incentivize behavior to create win-win scenario between the utility and its customers. Industry practice is to move towards or align with COS. Rates Collect sufficient revenue. Support utility’s goals. Use resources in cost- effective manner Price signal to customer: •Convey information. •Change behavior. © 2025 NEWGEN STRATEGIES AND SOLUTIONS, LLC RATE STUDY PROCESS POTENTIAL OBJECTIVES AND BEST PRACTICES FOR RATE DESIGN 12 •Revenue stability •Simplicity •Legislative and regulatory compliance •Modernization, Distributed Generation, Virtual Power Plant, Electric Vehicles etc. •Alignment with cost of service: ̶Align a utility’s revenue collection with its cost causation (e.g., demand, energy, customer) •Incorporate utility policy •If rates are not well designed or not aligned with COS: ̶Financial instability ̶Potential for cost recovery not matching incurred costs ̶Potential to over- or under-recover costs ̶Does not ensure revenue adequacy © 2025 NEWGEN STRATEGIES AND SOLUTIONS, LLC FINANCIAL FORECAST RESULTS 2024 REVENUE REQUIREMENT 13 •Source of Supply makes up a large portion of total expenses •Other Operating Expenses: ̶Distribution ̶Customer Accounts ̶Administrative & General •General Fund Transfer (GFT): ̶$1.35M •Capital Improvement Plan •Debt Service © 2025 NEWGEN STRATEGIES AND SOLUTIONS, LLC FINANCIAL FORECAST RESULTS RESERVE FUND 14 •If no action is taken, the reserve fund levels will be drawn down annually. •Reserve fund drops below 90- day target in 2025. •Debt service coverage ratio drops below 1.25 target in 2026. •Rate increases need to maintain financial stability. © 2025 NEWGEN STRATEGIES AND SOLUTIONS, LLC PROPOSED RATE IMPLEMENTATION PLAN 15 •If no rate increases are implemented: ̶Draw down of cash reserves and Days Cash on Hand. ̶Reduction to Debt Service Coverage. ̶Higher rate increases need in later years. ̶Potential for rate shock. •Revenue Increase need 4% – 5%. ̶Dependent on decisions from Strategic Planning Meeting. © 2025 NEWGEN STRATEGIES AND SOLUTIONS, LLC HISTORICAL RATE INCREASES 16 © 2025 NEWGEN STRATEGIES AND SOLUTIONS, LLC NEXT STEPS 17 •Update model based on Strategic Planning Meeting Results •Cost of Service Analysis •Rate design: ̶Rate changes by customer class and rate component ̶Align with Cost of Service © 2025 NEWGEN STRATEGIES AND SOLUTIONS, LLC BOARD FEEDBACK 18 Our public engagement plan includes: 11/20/2024 Road Show Glen Haven; CIP Customer Update 11/25/2024 Road Show Library; CIP Customer Update 11/2/2024 Road Show Allenspark; CIP Customer Update 2/17/2025 Road Show Library; CIP Customer Update 4/15/2025 News release and social Post 4/22/2025 Study Session Board Report 5/2/2025 Tentative- Published 1st Legal Notice 5/2/2025 Tentative- Published 1st Newspaper Article 5/13/2025 Tentative- Board Action Set public hearing date 5/23/2025 Tentative - Direct Mail, Bill Insert & Message 5/30/2025 Tentative- Published 2nd Legal Notice 6/10/2025 Tentative- 1st Public Hearing 6/24/2025 Tentative- 2nd Public Hearing QUESTIONS? NEWGEN STRATEGIES AND SOLUTIONS, LLC 225 UNION BOULEVARD, SUITE 450 LAKEWOOD, CO 80228 MEGHAN HELPER SENIOR CONSULTANT (720) 808-1589 MHELPER@NEWGENSTRATEGIES.NET On-Peak Off-Peak Standard Customer Energy Energy Demand Rate for Customer Rate Class Year (2)Charge Consumption Consumption Charge May thru $/Month Charge Charge $/kW August $/kWh $/kWh $/kWh RESIDENTIAL (1)2024 $25.00 $0.1168 $0.0142 --- --- --- Oct 2024 $26.25 $0.1337 $0.0000 --- --- --- Jan 2025 $26.25 $0.1337 $0.00196 --- --- --- Apr Year 2025 TBD TBD TBD --- --- --- Jan 2026 TBD TBD TBD --- --- --- Jan 2027 TBD TBD TBD --- --- --- RESIDENTIAL DEMAND (1)2024 $28.50 $0.0627 $0.0142 --- $13.60 --- Oct 2024 $29.93 $0.0769 $0.0000 --- $14.28 --- Jan 2025 $29.93 $0.0769 --- $14.28 --- Apr Year 2025 TBD TBD TBD --- TBD --- Jan 2026 TBD TBD TBD --- TBD --- Jan 2027 TBD TBD TBD --- TBD --- RESIDENTIAL ENERGY TIME-OF-DAY (1)2024 $28.50 $0.1658 $0.0142 $0.0898 --- --- Oct 2024 $29.93 $0.1851 $0.0000 $0.1053 --- --- Jan 2025 $29.93 $0.1851 $0.1053 --- --- Apr Year 2025 TBD TBD TBD --- --- --- Jan 2026 TBD TBD TBD --- --- --- Jan 2027 TBD TBD TBD --- --- --- RESIDENTIAL ENERGY BASIC TIME-OF-DAY (1)2024 $28.50 $0.1719 $0.0142 $0.0959 --- $0.1168 Oct 2024 $29.93 $0.1915 $0.0000 $0.1117 --- $0.1226 Jan 2025 $29.93 $0.1915 $0.1117 --- $0.1226 Apr Year 2025 TBD TBD TBD TBD --- TBD Jan 2026 TBD TBD TBD TBD --- TBD Jan 2027 TBD TBD TBD TBD --- TBD SMALL COMMERCIAL (1)2024 $33.00 $0.1183 $0.0142 --- --- --- Oct 2024 $34.65 $0.1353 $0.0000 --- --- --- Jan 2025 $34.65 $0.1353 $0.00196 --- --- --- Apr Year 2025 TBD TBD TBD --- --- --- Jan 2026 TBD TBD TBD --- --- --- Jan 2027 TBD TBD TBD --- --- --- SMALL COMMERCIAL ENERGY TIME-OF-DAY (1)2024 $36.00 $0.1349 $0.0142 $0.0872 --- --- Oct 2024 $37.80 $0.1527 $0.0000 $0.1026 --- --- Jan 2025 $37.80 $0.1527 $0.00196 $0.1026 --- --- Apr Year 2025 TBD TBD TBD TBD --- --- Jan 2026 TBD TBD TBD TBD --- --- Jan 2027 TBD TBD TBD TBD --- --- LARGE COMMERCIAL (1)2024 $46.00 $0.0648 $0.0142 --- $18.00 --- Oct 2024 $48.30 $0.0791 $0.0000 --- $18.90 --- Jan 2025 $48.30 $0.0791 $0.00196 --- 18.90$ --- Apr Year 2025 TBD TBD TBD --- TBD --- Jan 2026 TBD TBD TBD --- TBD --- Jan 2027 TBD TBD TBD --- TBD --- LARGE COMMERCIAL TIME-OF-DAY (1)2024 $55.00 $0.0904 $0.0142 $0.0495 $20.00 --- Oct 2024 $57.75 $0.1060 $0.0000 $0.0630 $21.00 --- Jan 2025 $57.75 $0.1060 $0.00196 $0.0630 21.00$ --- Apr Year 2025 TBD TBD TBD TBD TBD --- Jan 2026 TBD TBD TBD TBD TBD --- Jan 2027 TBD TBD TBD TBD TBD --- Available to all residential customers not using electric thermal storage heat. These rates apply September through April. Standard rates apply May through August. Purchase Power Rider $/kWh Available to all residential customers and residential customers with electric heat up to 25,000 kWh annually. Available to existing customers on this rate, September through April. All other times the Residential energy charge would apply. Available to all residential customers who use electric thermal storage heat or who own an electric vehicle. Available to all commercial customers using electric thermal storage heat with demands of 35 kW or less Available to all commercial customers with demands exceeding 35 kW Available to all commercial customers with demands exceeding 35 kW TOWN OF ESTES PARK, COLORADO APPROVED Electric Rate Summary 2024 - Updated 2/10/25 Available to all commercial customers with demands of 35 kW or less. $0.00196 $0.00196 $0.00196 APPROVED Electric Rate Summary 2024 - Updated 8/16/24 TOWN OF ESTES PARK, COLORADO OUTDOOR AREA LIGHTING 2024 $36.49 --------- --- --- Oct 2024 $38.31 --------- --- --- Jan 2025 $38.31 --------- --- --- Apr Year 2025 TBD --------- --- --- Jan 2026 TBD --------- --- --- Jan 2027 TBD --------- --- --- RENEWABLE ENERGY CHARGE (1)2024 --- $0.0275 $0.0000 --- --- --- Oct 2024 --- $0.0275 $0.0000 --- --- --- Jan 2025 --- $0.0275 $0.0000 --- --- --- Apr Year 2025 --- TBD TBD --- --- --- Jan 2026 --- TBD TBD --- --- --- Jan 2027 --- TBD TBD --- --- --- MUNICIPAL RATE (1)2024 $27.00 $0.1106 $0.0142 --- --- --- Oct 2024 $28.35 $0.1161 $0.0000 --- --- --- Jan 2025 $28.31 $0.1161 $0.00196 --- --- --- Apr Year 2025 TBD TBD TBD --- --- --- Jan 2026 TBD TBD TBD --- --- --- Jan 2027 TBD TBD TBD --- --- --- RMNP ADMINISTRATIVE HOUSING 2024 $22.70 $0.0690 N/A --- --- --- Oct 2024 $23.84 $0.0725 N/A --- --- --- Jan 2025 $23.84 $0.0725 N/A --- --- --- Apr Year 2025 TBD TBD N/A --- --- --- Jan 2026 TBD TBD N/A --- --- --- Jan 2027 TBD TBD N/A --- --- --- RMNP SMALL ADMINISTRATIVE 2024 $33.37 $0.0456 N/A --- --- --- Oct 2024 $35.04 $0.0479 N/A --- --- --- Jan 2025 $35.04 $0.0479 N/A --- --- --- Apr Year 2025 TBD TBD N/A --- --- --- Jan 2026 TBD TBD N/A --- --- --- Jan 2027 TBD TBD N/A --- --- --- RMNP LARGE ADMINISTRATIVE 2024 $45.23 $0.0185 N/A --- 12.50$ --- Oct 2024 $47.49 $0.0194 N/A --- 13.13$ --- Jan 2025 $47.49 $0.0194 N/A --- 13.13$ --- Apr Year 2025 TBD TBD N/A --- TBD --- Jan 2026 TBD TBD N/A --- TBD --- Jan 2027 TBD TBD N/A --- TBD --- NOTES: (1) Purchase Power Rider is a pass-through of wholesale increases from PRPA; TBD Each Year, see Ordinance 12-11 (2)The rates remain in effective until new rates are adopted by the Town Board. These rates apply only September thru April usage (for May thru August, the standard Residential rate applies): ON-PEAK for Residential "Basic" Time-of-Day Customers: 4:00 pm to 7:00 pm weekdays Available for lighting outdoor private areas Voluntary participation available to all classes; charge per 100 kWh block Avoided Cost paid to Net Meter Customers = $0.0175, the wholesale cost of energy minus $0.01 for administrative costs Fees for other work performed, such as service upgrades or line extensions, the developer or customer must pay for work performed. Payment must be made before the work is scheduled. The payment covers the cost of labor, materials, equipment, and overhead. Updated 08-16-2024 Residential Energy Time-of-Day available only for residential customers who use electric thermal storage heat or who own an electric vehicle: OFF-PEAK for Residential Time-of-Day Customers: 1:00 pm to 3 pm and 10:00 pm to 6:00 am weekdays and all day on weekends and holidays (New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Eve and Christmas Day) ON-PEAK for Residential Time-of-Day Customers: 6:00 am to 1:00 pm and 3:00 pm to 10:00 pm weekdays Residential Energy "Basic" Time-of-Day is available for every residential customer except as stated above. OFF-PEAK for Residential "Basic" Time-of-Day Customers: 7:00 pm to 4:00 pm the following day and all day weekends and the following holidays: Labor Day, Thanksgiving Day, Christmas Eve, Christmas Day and New Years Day Smart Meter/Advanced Metering Infrastructure Opt-Out Fees - One Time Enrollment Fee of $75 and monthly fee of $20 Available for electricty use on municipal property Available to Rocky Mountain National Park residences having an alternate power source delivered to Estes Park's distribution system Available to RMNP administrative accounts having an alternate power source delivered to Estes Park's distribution system with demands of 35kW or less Available to RMNP administrative accounts having an alternate power source delivered to Estes Park's distribution system with demands exceeding 35kW P&C Policies and Procedures Town of Estes Park, Utilities 4/22/2022 Page 47 of 61 APPENDIX 1 - Rate Schedule Electric Rate Summaries are posted on the Town’s website P&C Policies and Procedures Town of Estes Park, Utilities 4/22/2022 Page 48 of 61 1. APPENDIX 1.1 POWER AND COMMUNICATIONS RATE SCHEDULE DETAIL a. Generally The schedule of rates set forth in this Chapter for the service of electric power and energy by the Town shall remain in effect until repealed or amended. None of the rates are available for resale service. (Ord. 2191 §1(part), 1991; Ord. 1993 §1(part), 1993) b. Rate Schedule Definitions Commercial service is defined as an electric customer whose majority of use is for commercial use including, but not limited to, the following: 1. Commercial accommodations; 2. Retail sales; 3. Bed and breakfast; 4. Restaurants; 5. Campgrounds; 6. Schools and churches; 7. Governmental and utility agencies; and 8. Service businesses. For purposes of the Light & Power rate schedules, a commercial accommodation shall include any dwelling or accommodation unit or units that are rented for a period of less than thirty (30) days during any portion of a calendar year.1 Residential service is defined as an electric customer whose majority of use is residential, excluding uses listed in the definition of commercial service. c. Residential 1. Applicability. The rates set forth in this Section shall be applicable in Estes Park service territory. a. Monthly minimum bill. The monthly minimum bill shall be the customer charge. 2. Availability. This schedule is available to residential customers for all domestic uses in individually metered single family private dwellings or individually metered apartments, except customers having electric heat as a primary or auxiliary energy source for space heating with annual consumption greater than twenty-five thousand (25,000) kWh. 1 The Town expects that the utility usage characteristics of a short-term rental would resemble hotels and other short- term commercial accommodations, including those in single-unit structures, as the use profile is substantially the same. Furthermore, the rate study methodology used to calculate rates for various classifications was premised on data that categorized short term rentals as commercial. P&C Policies and Procedures Town of Estes Park, Utilities 4/22/2022 Page 49 of 61 3. Conditions of service. Service provided under this rate schedule shall be subject to all Power and Communications Department general and administrative rules and regulations and extension policies, and such rules and regulations. 4. Wholesale power cost adjustment. This schedule is subject to the conditions set forth on the Wholesale power cost adjustment. (Ord. 12-11, 2011) d. Residential Demand 1. Applicability. The rates set forth in this Section shall be applicable in Estes Park service territory. 2. Availability. This schedule is available to existing residential customers having electric heat as a primary or auxiliary energy source for space heating in individually metered single family private dwellings or individually metered apartments. This schedule is also available for those residential customers who do not have electric heat as a primary or auxiliary energy source for space heating, but whose annual energy consumption is over fifteen thousand (15,000) kWh. 3. Rates are separated into the Winter season September 1—April 30 and Summer Season May 1 –August 31 4. Determination of billing demand. The billing demand shall be determined by suitable meter measurement of the highest fifteen-minute demand occurring during the monthly billing period. 5. Monthly minimum bill. The monthly minimum bill shall be the customer charge. 6. Payment. The above rates are net. Bills for electric service are due and payable within ten (10) days subsequent to mailing or delivery of the bill. 7. Conditions of service. Service provided under this rate schedule shall be subject to all Power and Communications Department general and specific rules and regulations and extension policies, and such rules and regulations as set forth in appropriate tariff sheets on file. Any account receiving service under this schedule shall be required to remain on this schedule for a minimum of twelve (12) months. 8. Summer rate will be in effect beginning with the first regular meter reading after April 30th and continuing until the first regular meter reading prior to September 1st. P&C Policies and Procedures Town of Estes Park, Utilities 4/22/2022 Page 50 of 61 9. Wholesale power cost adjustment. This schedule is subject to the conditions set forth on the Wholesale power cost adjustment. (Ord. 12-11, 2011) e. Residential Energy Time of Day 1. Applicability. The rates set forth in this Section shall be applicable in Estes Park service territory. 2. Availability. This schedule is available to all residential customers who use energy storage equipment for electric space heating. 3. Monthly minimum bill. The monthly minimum bill shall be the customer charge. 4. Time of day hours. The on and off-peak periods shall be as follows: a. On peak period: between 6:00 a.m. and 1:00 p.m. and between 3:00 p.m. and 10:00 p.m. on weekdays. b. Off peak period: between 1:00 p.m. and 3:00 p.m. and between 10:00 p.m. and the succeeding 6:00 a.m. on weekdays and all hours on weekends and holidays. c. Holidays: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Eve and Christmas Day. 5. Payment. The above rates are net. Bills for electric service are due and payable within ten (10) days subsequent to mailing or delivery of the bill. 6. Conditions of service. Service provided under this rate schedule shall be subject to all Power and Communications Department general and specific rules and regulations and extension policies and such rules and regulations as set forth in appropriate tariff sheets on file. Any account requesting service under this schedule shall be required to remain on this schedule for a minimum of twelve (12) months. The customer may be required to pay for special metering costs over and above single-phase self-contained metering. 7. Wholesale power cost adjustment. This schedule is subject to the conditions set forth on the Wholesale power cost adjustment. (Ord. 12-11, 2011) f. Residential Basic Energy Time of Day 1. Applicability. The rates set forth in this Section shall be applicable in Estes Park service territory. P&C Policies and Procedures Town of Estes Park, Utilities 4/22/2022 Page 51 of 61 2. Availability. This schedule is available to all residential customers not using electric thermal storage heat. 3. Monthly rates are seasonal. a. Winter period September 1-April 30 b. Summer period May 1-August 31 4. Time of day hours. The on and off-peak periods shall be as follows: a. On peak period: between 4:00 p.m. and 7:00 p.m. on weekdays. b. Off peak period: between 7:00 p.m. and the succeeding 4:00 p.m. on weekdays and all hours on weekends and holidays. 5. Holidays: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Eve and Christmas Day. 6. Monthly minimum bill. The monthly minimum bill shall be the customer charge. 7. Payment. The above rates are net. Bills for electric service are due and payable within ten (10) days subsequent to mailing or delivery of the bill. 8. Conditions of service. Service provided under this rate schedule shall be subject to all Power and Communications Department general and specific rules and regulations and extension policies and such rules and regulations as set forth in appropriate tariff sheets on file. Any account requesting service under this schedule shall be required to remain on this schedule for a minimum of twelve (12) months. The customer may be required to pay for special metering costs over and above single-phase self-contained metering. 9. Summer rate will be in effect beginning with the first regular meter reading after April 30th and continuing until the first regular meter reading prior to September 1st. 10. Wholesale power cost adjustment. This schedule is subject to the conditions set forth on the Wholesale power cost adjustment. (Ord. 12-11, 2011) g. Small Commercial 1. Applicability. The rates set forth in this Section shall be applicable in Estes Park service territory. 2. Availability. This schedule is available for business lighting and small power loads of thirty-five (35) kW maximum demands or less. All service will be supplied only through a single meter. This service is available at single or P&C Policies and Procedures Town of Estes Park, Utilities 4/22/2022 Page 52 of 61 three-phase at the established voltage of either the Town's primary or secondary distribution system. 3. Monthly minimum bill. The monthly minimum bill shall be the customer charge. 4. Payment. The above rates are net. Bills for electric service are due and payable within ten (10) days subsequent to mailing or delivery of the bill. The foregoing schedule shall be net where service is metered at secondary voltage of the Town's distribution system. Where service is metered under this schedule at primary voltage, the customer shall receive a credit of two percent (2%) of the monthly bill, less the customer charge. 5. Conditions of service. Service provided under this rate schedule shall be subject to all Power and Communications Department general and specific rules and regulations and extension policies and such rules and regulations as set forth in appropriate documents on file. 6. Wholesale power cost adjustment. This schedule is subject to the conditions set forth on the Wholesale power cost adjustment. (Ord. 12-11, 2011) h. Small Commercial Time of Day 1. Applicability. The rates set forth in this Section shall be applicable in Estes Park service territory. 2. Availability. This schedule is available to all small commercial customers who use energy storage equipment for electric space heating and have on peak demands of thirty-five (35) kW or less. 3. Time of day hours. The on and off-peak periods shall be as follows: a. On peak period: between 6:00 a.m. and 1:00 p.m. and between 3:00 p.m. and 10:00 p.m. on weekdays. b. Off peak period: between 1:00 p.m. and 3:00 p.m. and between 10:00 p.m. and the succeeding 6:00 a.m. on weekdays and all hours on weekends and holidays. c. Holidays: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Eve and Christmas Day. 4. Monthly minimum bill. The monthly minimum bill shall be the customer charge. 5. Payment. The above rates are net. Bills for electric service are due and payable within ten (10) days subsequent to mailing or delivery of the bill. The foregoing schedule shall be net where service is metered at secondary voltage P&C Policies and Procedures Town of Estes Park, Utilities 4/22/2022 Page 53 of 61 of the Town's distribution system. Where service is metered under this schedule at primary voltage, the customer shall receive a credit of two percent (2%) of the monthly bill less the customer charge. 6. Conditions of service. Service provided under this rate schedule shall be subject to all Power and Communications Department general and specific rules and regulations and extension policies and such rules and regulations as set forth in appropriate documents on file. Any account requesting service under this schedule shall be required to remain on this schedule a minimum of twelve (12) months. The customer may be required to pay for special metering costs over and above single-phase self-contained metering. 7. Wholesale power cost adjustment. This schedule is subject to the conditions set forth on the Wholesale power cost adjustment. (Ord. 12-11, 2011) i. Large Commercial 1. Applicability. The rates set forth in this Section shall be applicable in Estes Park service territory. 2. Availability. This schedule is required for electric lighting and power requirements of customers having maximum demands exceeding thirty-five (35) kW in any two (2) consecutive months. All service will be supplied only through a single meter. This service is available at single or three-phase at the established voltage of either the Town's primary or secondary distribution system. 3. Determination of billing demand. The billing demand shall be determined by suitable meter measurement of the highest fifteen-minute demand occurring during the monthly billing period. Billing demand shall be measured in kilowatts or kilovolt-amperes at the Town’s discretion. 4. Monthly minimum demand charge. The monthly minimum demand charge shall set by the current rate schedule. 5. Payment. The above rates are net. Bills for electric service are due and payable within ten (10) days subsequent to mailing or delivery of the bill. 6. Conditions of service. a. Service provided under this rate schedule shall be subject to all Power and Communications Department general and specific rules and regulations and extension policies, and such rules and regulations as set forth in appropriate tariff sheets on file. The customer may be required to pay for special metering costs over and above single-phase self-contained metering. P&C Policies and Procedures Town of Estes Park, Utilities 4/22/2022 Page 54 of 61 b. The customers shall be required to properly balance their loads. If the power factor during the time the billing demand is established falls below ninety five percent (95%) lagging, adjustment may be made by increasing the measured demand for each month by one percent (1%) for each one percent (1%) or major fraction thereof by which the power factor during the billing period is less than ninety five percent (95%) lagging. c. The foregoing schedule shall be net where service is metered at the secondary voltage of the Town's distribution system. Where service is metered under this schedule at primary voltage, the customer shall receive a credit of two percent (2%) of the monthly bill for service. Where service is taken at the Town's established primary voltage and the customer furnishes the transformers and distribution system, the customer shall receive a credit of four percent (4%) of the monthly bill. d. Any account requesting service under this schedule shall be required to remain on this schedule for a minimum of twelve (12) months. 7. Wholesale power cost adjustment. This schedule is subject to the conditions set forth on the Wholesale power cost adjustment. (Ord. 12-11, 2011) j. Large Commercial Time of Day 1. Applicability. The rates set forth in this Section shall be applicable in Estes Park service territory. 2. Availability. This schedule is available for electric Power and Communications requirements of customers having maximum demands exceeding thirty-five (35) kW in any two (2) consecutive months. All service will be supplied only through a single meter. This service is available at single or three-phase at the established voltage of either the Town's primary or secondary distribution system. 3. Monthly rate. The monthly minimum bill shall be the customer charge 4. Time of day hours. The on and off-peak periods shall be as follows: a. On peak period: between 6:00 a.m. and 10:00 p.m. on weekdays. b. Off peak period: between 10:00 p.m. and the succeeding 6:00 a.m. on weekdays and all hours on weekends and holidays. c. Holidays: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Eve and Christmas Day. P&C Policies and Procedures Town of Estes Park, Utilities 4/22/2022 Page 55 of 61 5. Determination of billing demand. The billing demand shall be determined by suitable meter measurement of the highest fifteen-minute demand occurring during the monthly on peak period. Billing demand shall be measured in kilowatts or kilovolt-amperes at the Town’s discretion. 6. Monthly minimum demand charge. The monthly minimum demand charge shall be $75.00. 7. Payment. The above rates are net. Bills for electric service are due and payable within ten (10) days subsequent to mailing or delivery of the bill. 8. Conditions of service. a. Service provided under this rate schedule shall be subject to all Power and Communications Department general and specific rules and regulations and extension policies, and such rules and regulations as set forth in appropriate tariff sheets on file. The customer may be required to pay for special metering costs over and above single-phase self-contained metering. b. The customers shall be required to properly balance their loads. c. If the power factor during the time the billing demand is established falls below ninety five percent (95%) lagging, adjustment may be made by increasing the measured demand for each month by one percent (1%) for each one percent (1%) or major fraction thereof by which the power factor during the billing period is less than ninety five percent (95%) lagging. d. The foregoing schedule shall be net where service is metered at the secondary voltage of the Town's distribution system. Where service is metered under this schedule at primary voltage, the customer shall receive a credit of two percent (2%) of the monthly bill for service. Where service is taken at the Town's established primary voltage and the customer furnishes the transformers and distribution system, the customer shall receive a credit of four percent (4%) of the monthly bill. e. Any account requesting service under this schedule shall be required to remain on this schedule for a minimum of twelve (12) months. 9. Wholesale power cost adjustment. This schedule is subject to the conditions set forth on the Wholesale power cost adjustment. (Ord. 12-11, 2011) k. Municipal Rate P&C Policies and Procedures Town of Estes Park, Utilities 4/22/2022 Page 56 of 61 1. Applicability. The rates set forth in this Section shall be applicable in Estes Park service territory. 2. Availability. Available for municipal street, park lighting and buildings as provided to the Town. 3. Wholesale power cost adjustment. This schedule is subject to the conditions set forth on the Wholesale power cost adjustment. (Ord. 12-11, 2011) l. Renewable Energy Charge 1. Applicability. The rates set forth in this Section shall be applicable in Estes Park service territory. 2. Availability. Available for any electric customer of the Town of Estes Park. 3. Monthly rate. (in addition to the normal electric rate) Platte River Power Authority Tariff-Schedule 7: Renewable Energy Service charge per kilowatt- hour determined annually by PRPA and charged per 100 kWh block. 4. Wholesale power cost adjustment. This schedule is subject to the conditions set forth on the Wholesale power cost adjustment. (Ord. 12-11, 2011) m. Wholesale Power Cost Adjustment 1. Applicability. The Wholesale Power Cost Adjustment rate shall be applicable in Estes Park's service territory to all applicable electric rate schedules. 2. Purpose. The wholesale power cost adjustment will pass on changes in the wholesale electric tariffs and wholesale renewable energy tariffs from our wholesale electric power provider. n. Outdoor area lighting 1. Applicability. The rates set forth in this Section shall be applicable in Estes Park service territory. 2. Availability. This schedule is available to any customer for the lighting of private outdoor areas, where such service can be provided directly from existing secondary distribution lines of the Light & Power Department. 3. Payment. The above rate is net. Bills for electric service are due and payable within ten (10) days subsequent to mailing or delivery of the bill. 4. Wholesale power cost adjustment. This schedule is subject to the conditions set forth on the Wholesale power cost adjustment. P&C Policies and Procedures Town of Estes Park, Utilities 4/22/2022 Page 57 of 61 a. The customer shall apply to the Town for this service. The customer shall provide such information as necessary for the Town to evaluate the request for service, including number and location of all fixtures and all neighboring structures, including structures located off the premises of the customer. The Town shall review the application and may grant the request for service in its sole discretion. b. The customer shall be required to deposit with the Town the estimate of the cost of installation of the outdoor area lighting equipment, including all equipment and labor charges. The customer shall deposit such sum with the Town prior to commencement of installation of this service. The Power and Communications Department shall have the right to make modifications to the equipment and plan in accordance with good engineering practice. In the event all costs of installation are either greater or less than the amount deposited by the customer, the difference shall be reflected in the customer's subsequent electric bill. c. All materials and equipment furnished and installed shall be the property of the Power and Communications Department. The Power and Communications Department shall have a reasonable time after the termination of service to disconnect area lighting facilities and remove the same from the premises. All costs of the removal of this system shall be the responsibility of the customer and shall be reflected on the customer's subsequent electric bill. d. The term burning dusk to dawn as used herein shall be construed to mean that all lamps shall be lighted by automatic control equipment from approximately sunset to sunrise. e. The customer shall notify the Power and Communications Department of any service failure. Burned out lamps shall be replaced as soon as practicable, subject to Power and Communications Department operating schedules, after notification by the customer of service failure. All maintenance, including replacement of lamps, will be accomplished during regular working hours. No credit shall be allowed on the customer's monthly bill for lamp outages. f. All service under this schedule shall be for a minimum of one (1) year and thereafter until termination. Termination shall be effective five (5) days following the receipt of written notice by the Power and Communications Department of the request for termination by the customer. P&C Policies and Procedures Town of Estes Park, Utilities 4/22/2022 Page 58 of 61 g. In the event maintenance is required to the outdoor area lighting for more than normal wear and tear, the Town may terminate this service. (Ord. 1993 §1(part), 1993) o. Rocky Mountain National Park Administrative Housing Service (electric power provided by the BOR) 1. Applicability. The rates set forth in this Section shall be applicable in Estes Park service territory. 2. Availability. This schedule is available to Rocky Mountain National Park service for administrative single housing accounts who have an alternate source of electric power (including an adjustment for losses) to be delivered over the Estes Park electric system. 3. Monthly minimum bill. The monthly minimum bill shall be the customer charge. 4. Payment. The above rates are net. Bills for electric service are due and payable within ten (10) days subsequent to mailing or delivery of the bill. 5. Conditions of service. Service provided under this rate shall be subject to all Power and Communications Department general and specific rules and regulations and extension policies and such rules and regulations as set forth in appropriate tariff sheets on file. 6. Wholesale power cost adjustment is not applicable p. Rocky Mountain National Park Small Administrative Service (electric power provided by the BOR) 1. Applicability. The rates set forth in this Section shall be applicable in Estes Park service territory 2. Availability. This schedule is available to Rocky Mountain National Park administrative service accounts who have an alternate source of electric power (including an adjustment for losses) to be delivered over the Estes Park electric system and who have lighting and small power loads of thirty-five (35) kW maximum demands or less. All service will be supplied only through a single meter. This service is available at single or three-phase at established voltages available at either the Town's primary or secondary distribution system. 3. Monthly minimum bill. This monthly minimum bill shall be the customer charge. P&C Policies and Procedures Town of Estes Park, Utilities 4/22/2022 Page 59 of 61 4. Payment. The above rates are net. Bills for electric service are due and payable within ten (10) days subsequent to mailing or delivery of the bill. The foregoing schedule shall be net where service is metered at secondary voltage of the Town's distribution system. Where service is metered under this schedule at primary voltage, the customer shall receive a credit of two percent (2%) of the monthly bill less the customer charge. 5. Conditions of service. Service provided under this rate shall be subject to all Power and Communications Department general and specific rules and regulations and extension policies and such rules and regulations as set forth in appropriate tariff sheets on file. 6. Wholesale power cost adjustment is not applicable q. Rocky Mountain National Park Large Administrative Service (electric power provided by the BOR) 1. Applicability. The rates set forth in this Section shall be applicable in Estes Park service territory. 2. Availability. This schedule is available to Rocky Mountain National Park large administrative service accounts who have an alternate source of electric power (including an adjustment for losses) to be delivered over the Estes Park electric system and who have maximum demands exceeding thirty-five (35) kW in any two (2) consecutive months. All service will be supplied only through a single meter This service is available at single or three-phase at the established voltage of either the Town's primary or secondary distribution system. This schedule is not available for resale service. 3. Determination of billing demand. The billing demand shall be determined by suitable meter measurement of the highest fifteen-minute demand occurring during the monthly billing period. Billing demand shall be measured in kilowatts or kilovolt-amperes at the Town’s discretion. 4. Monthly minimum bill. The monthly minimum bill shall be $55.00. 5. Payment. The above rates are net. Bills for electric service are due and payable within ten (10) days subsequent to mailing or delivery of the bill. 6. Wholesale power cost adjustment is not applicable 7. Conditions of service. Service provided under this rate shall be subject to all Power and Communications Department general and specific rules and regulations and extension policies and such rules and regulations as set forth in appropriate tariff sheets on file. The customers shall be required to properly balance their loads. If the power factor during the time the billing demand is P&C Policies and Procedures Town of Estes Park, Utilities 4/22/2022 Page 60 of 61 established falls below ninety five percent (95%) lagging, the Power and Communications Department may require the customer to correct the power factor and/or have the alternate electric power supplier provide the corrective reactive power. The foregoing schedule shall be net where service is metered at the secondary voltage of the Town's distribution system. Where service is metered under this schedule at primary voltage, the customer shall receive a credit of two percent (2%) of the monthly bill for service. Any account requesting service under this schedule shall be required to remain on this schedule for no less than twelve (12) months. P&C Policies and Procedures Town of Estes Park, Utilities 4/22/2022 Page 61 of 61 APPENDIX 2. - FEES CONNECTION AND METER FEES RATE SCHEDULE Service Fee Permanent Overhead Connect Fee $370.00 Overhead connections are no longer available where new facilities are being added to the distribution system Permanent Underground Connect Fee $270.00 Temporary Connect, Single Family Unit $50.00 This charge is in addition to the permanent underground connect fee where temporary service is desired. This meter will then be transferred to the permanent service. Construction Temporary Connect $100.00 A construction temporary can be used for construction of multiple dwellings as long as it remains in the same location. Construction temporary meters do not go into permanent installations; new meters will be set for all final installations. Additional connection charge for non-standard meter, i.e., TOU or CL-320 $300.00 Special Meter Reading, new move-in, etc. $12.00 Service Change/Upgrade Charge or Customer-requested disconnect/reconnect $300.00 for service changes or upgrades up to 125 AMP. For service changes or upgrades larger than 125 AMP, a site visit is required to determine the fee. CT Metering – Single Phase $1,000.00 Customer must provide their own CT cabinet for bar type CTs. CT Metering – Three Phase $1,500.00 Customer must provide their own CT cabinet for bar type CTs. COMMUNITY DEVELOPMENT Report To: Honorable Mayor Hall Board of Trustees Through: Town Administrator Machalek From: Paul Hornbeck, Senior Planner Date: April 22, 2025 RE: Annexation Policy Purpose of Study Session Item: The purpose of this study session is to: • Provide follow up information in response to the Town Board study session on November 12, 2024 • Seek input from Town Board on a potential annexation policy for the Town • Seek Town Board input on a potential intergovernmental agreement between the Town and Larimer County regarding annexation and development in the Estes Valley Town Board Direction Requested: Provide staff with direction on provisions to include within a proposed internal annexation policy and within an intergovernmental agreement with Larimer County. Present Situation: On November 12, 2024, Community Development Director Careccia provided an overview of the annexation process and sought preliminary direction regarding an annexation policy with Larimer County. Town Board asked a number of questions that staff has researched and provided analysis below. How are other jurisdictions within Larimer County treating annexations? Larimer County currently has intergovernmental agreements (IGAs) with Berthoud, Fort Collins, Loveland, Timnath, and Windsor regarding land use and development, including annexation. The full text of the IGAs can be found here. A summary of key points of those IGAs is provided below. 1. Geographic Boundaries. A geographic boundary defines the areas subject to the IGA. Most agreements utilize a Growth Management Area (GMA), an area beyond the current municipal boundary which is anticipated to be served by municipal services and infrastructure. Estes Park does not have a GMA but the Estes Forward Comprehensive Plan and other past planning initiatives have used the 32 square mile Estes Valley Planning Area to similar ends. 2. County to Use City/Town Comprehensive Plans. The county agrees to use City/Town plans for parks, land use, transportation, natural resources, etc. as a guide for development. 3. Development Regulations. County agrees to apply agreed upon standards to development within the IGA area and shall not amend standards without City/Town input. For the Estes Valley, these standards would likely be the existing Estes Valley zoning standards contained in the Larimer County Land Use Code. Establishing a new set of standards seems unnecessary at this time due to the close alignment between Town and County standards. 4. Referrals. County and City/Town agree to refer certain land use applications (subdivision, rezoning, etc.) to one another for review and comment on consistency with Comprehensive Plan and agreed upon standards (#3). 5. Annexations. a. The City/Town agrees to consider annexation of any property eligible for voluntary annexation. b. The City/Town agrees to pursue annexation of any property eligible for involuntary annexation (i.e. enclave annexation). c. The County will not accept for review certain land use applications (e.g. rezoning, PUD, subdivision, etc.) on properties eligible for annexation unless the City/Town has denied annexation. d. The County will require a binding agreement with certain land use applications (i.e. applications requiring Board of County Commissioners approval) that properties not currently eligible for annexation will pursue annexation when eligible. What is the cost/benefit of annexation? Detailed economic analysis of annexations are sometimes done for large annexations to help a governing body understand potential impacts. Such studies are probably not warranted for most potential annexations in Estes Park but could be pursued at the direction of Town Board. This would likely require the expertise of a third-party consultant at a cost to the Town or applicant. Alternatively, Town staff could prepare an analysis, likely with significant staff time. Alternatively, the existing or proposed land use of a potential annexation can allow us to make some generalizations of the likely fiscal impact to the Town. Numerous studies nationally have shown residential development is a net loss to cities and towns given the ongoing costs to serve residents. This is likely even more so in Colorado where local property tax rates are comparatively low. For example, a house in Estes Park valued at $700,000 would have an assessed value of $43,750, which translates to property tax revenue to the Town of $79 annually. More compact residential development is less of a cost burden and might be able to “pay for itself” due to more tax revenue and more efficient use of infrastructure (e.g. fewer miles of roads to maintain). Commercial development is typically a net positive given the higher property tax rate and potential sales tax generated. Fiscal impacts of an annexation are not the only consideration with annexations and other community goals may outweigh negative financial implications. How do Vacation Homes Impact Revenue of Annexing Residential Areas? Vacation Homes do generate more revenue for the Town than a single-family home. An average Vacation Home in Estes Park can be expected to generate approximately $2,684 in sales tax revenue to the Town annually. This is based on the 5% sales tax collected and assumptions from the Vacation Home Rental Fee Study, which states “the typical STR in Estes Park is rented 167 days per year and generates $53,684 in revenue annually.” Additionally, the 2025 Workforce Housing Regulatory Linkage Fee is $1460. Annexing a residentially zoned property that has a Vacation Home license in the County would present the Town Board with a policy decision. The cap on vacation home licenses in Town is 322, while Larimer County has a cap of 208 licenses in the unincorporated Estes Valley. Would Town Board increase cap to allow an annexed property to continue to operate as a vacation home? How does the Town treat extraterritorial service with provision of water? Existing extraterritorial water service is shown in Figure 1. Municipal Code Section 13.24.120 addresses extraterritorial water service. It requires all applicants for water service outside the boundaries of the Town to annex their property, if required by the Town. In cases where a property is not eligible for annexation, the code requires applicants to execute an agreement requiring annexation when eligible. Who determines if a property should be required by the Town to annex and based on what criteria is not defined by the code or policy. Staff recommends adding clarity to this process either through a Municipal Code amendment or through an annexation policy. Figure 1 – Extraterritorial Water Service Map Potential Annexation Areas Three areas were mentioned as possible candidates for annexation. High level staff analysis of those areas is provided below. Mary's Lake Road corridor The Marys Lake Road corridor(Figure 2) from the Big Thompson River to Peak View Drive is mostly built-out with single-family homes on lots of ½ to 1 acre in size. There are approximately 85 parcels that front directly on Marys Lake Road. There are some larger lots that could potentially accommodate development or redevelopment, including an 11-acre parcel owned by the Housing Authority. Very few properties are currently eligible for annexation. If the Town Board wants to be proactive in encouraging annexation of properties, it could consider annexing right-of-way, such as Marys Lake Road from the current Town boundary near Broadview Road south to Peak View Drive. This would make most properties, if not all, that front onto this section of road eligible for annexation. Property owners seeking to develop or redevelop their property could then pursue annexation if Town development standards offer greater flexibility than County standards or if Town water service is desired. Annexing Marys Lake Road would come with a cost as the Town would need to provide road maintenance and police service for the 1.3 mile section of road from Broadview Road south to Peak View Drive. Prospect Mountain The Prospect Mountain area (Figure 3) is also largely built-out with single family homes, mostly on lots of around 1 acre in size. There are approximately 80 properties in this area. Opportunities for development or redevelopment appear more limited here compared to Marys Lake Road corridor, meaning property owners would have less incentive to annex for the sake of development opportunity or connection to Town water. Another consideration for this area is that all of the approximately 1.6 miles of roads in the neighborhood are unpaved. Public Works has indicated they do not support annexing any roads that are not fully compliant with Town standards. A fully compliant road is typically one paved with at least 4” thick asphalt or concrete and includes curb and gutter and a sidewalk on at least one side. Incomplete, non-standard streets bring added maintenance costs to the Town. There can also be an expectation from tax payers that living within Town limits should come with higher level of services, such as paved roads. Accordingly, there may be pressure on the Town from newly annexed areas to upgrade infrastructure. It's worth noting that should the land owned by the Estes Tram around Prospect Mountain be annexed, it would likely create an enclave of the Prospect Mountain neighborhood, meaning the area could be unilaterally annexed by the Town after three years if so desired by Town Board. Figure 2 – Marys Lake Road Corridor Map Figure 3 – Prospect Mountain Area Map Figure 4 – Carriage Hills Area Map Carriage Hills Area The Carriage Hills area (Figure 4) includes approximately 550 properties and 11 miles of roads, the majority of which appear substandard. The area is mostly built out although there are a handful of unbuilt lots and some lots that are large enough to potentially be subdivided to allow additional development. Due to the dispersed nature of this area, annexing road right-of-way to encourage annexation seems like a less viable option compared to a corridor like Marys Lake Road. Mapping There was interest from the Board in seeing areas eligible for annexation mapped. County enclaves are mapped in Figure 5. An enclave is a property, or group of properties, in the unincorporated portion of the county that is completely surrounded on all sides by a municipality. Enclaves are exempt from certain requirements of the Municipal Annexation Act and can be annexed by a municipality unilaterally without the otherwise required property owner consent. It is often desirable to annex enclaves to provides more efficient and consistent level of government services. The Estes Valley has numerous areas that appear to be enclaves but upon closer inspection do not meet that statutory requirement as enclaves. This is because the enclave annexation technique is not available if any boundary of the enclave consists only of right-of-way. Staff has identified two areas that are eligible as enclaves as illustrated in Figure 5. Staff was not able to map non-enclave properties that are eligible for annexation at this time due to the sheer number of properties that would need to be analyzed. If there is interest from the board in narrowing the scope, such as eligible properties over a certain size threshold and are identified as undeveloped by the county, staff could produce a map for review. Figure 5 – County Enclave Map Proposal: Staff recommends creating two separate documents to guide annexations: 1. An internal annexation policy to provide high level guidance to Town Board, staff, property owners, and the community at-large regarding factors to consider with prospective annexations 2. An intergovernmental agreement with Larimer County to ensure cooperation regarding development and annexation in the Estes Valley An outline of an internal annexation policy based on topic areas in the Comprehensive Plan is provided below. The intent of the policy would be to serve as a guiding document and not a regulatory framework. Individual annexations could be considered for consistency with the policy, but the policy would not mandate that annexations meet any or all criteria in the policy or replace Town Board’s discretion. 1. Natural Environment - Annexation should help protect sensitive watersheds, forests, wildlife, and recreational areas. Example: Leverage annexations to protect sensitive areas through dedication of park land or conservation easements. 2. Built Environment – Annexation should enhance quality of life, preserve local character, balance a supportive mix of land uses, and align services and infrastructure needs. Example: Annexation should be consistent with the Future Land Use Map. Example: Annexation should not place undue burden on utility or service providers and costs to upgrade infrastructure should be borne by the properties being annexed. 3. Economy - Annexation should promote sustainable economic development and Town finances. Example: Annexation should support economic development that diversifies the local economy or provide services missing from the Estes Valley. Example: Tax revenues should offset costs associated to serve a property and maintain infrastructure. 4. Housing – Annexation should improve supply and affordability of workforce and attainable housing. Example: Annexation includes workforce or attainable housing. 5. Health & Social – Annexation should promote health and prosperity for all people in the community, and support services and quality of life amenities to maintain a healthy lifestyle. Example: Annexation improves access to facilities such as parks and daycare. 6. Transportation & Infrastructure – Annexation should support critical infrastructure, utilities, and transportation. Example: Annexation should facilitate construction of transportation facilities identified in the Transportation Master Plan or required by the Development Code. Example: Avoid annexing streets not up to Town standards. Example: Annexation reduces enclaves or patchwork of municipal and county boundaries to allows improved delivery of services, such as more efficient police service and street maintenance. The one area where staff recommends the annexation policy be mandatory is the internal process concerning extraterritorial water service. As mentioned above, the Municipal Code does not define who at the Town decides if annexation should be required or under what criteria. Staff recommends clarifying that requests for water service outside the boundaries of the Town, including any changes or enlargement of service, shall be reviewed by the directors (or designees) of Public Works, Utilities, and Community Development. Annexation should be pursued for all eligible properties unless all reviewers determine annexation would not be supported by the annexation policy. If Town Board is supportive of the IGA model used in other communities, staff can pursue a draft with the County to share at a future study session. At this time, staff anticipates the IGA would likely address additional collaboration on referrals, County use of Town master plans, and the Town's right of first refusal for development applications in the Estes Valley Planning Area (or other agreed upon area) Advantages: The creation of an annexation policy and an IGA with Larimer County is a component of both the 2024 and 2025 Strategic Plans. Such a policy would help provide consistency and clarity for those involved in the annexation process. Disadvantages: The creation of an annexation policy will require staff time from both Town and County personnel. Finance/Resource Impact: Creation of an annexation policy is established within the Strategic Plan, with staff time resourced from the base budget. For future annexation requests, an evaluation of potential budgetary impacts will need to occur with each request. Level of Public Interest: It is anticipated that the consideration of an annexation policy will generate a moderate level of public interest. Attachments: 1. Extraterritorial Water Service Map 2. Marys Lake Road Map 3. Prospect Mountain Area Map 4. Carriage Hills Area Map 5. County Enclaves Map LAKE ESTES MARYSLAKE G R EY F O XDR CARRIAGE DR D A V I S S T MILLSDR EAG L E C L I F F D R SCOTT A VE R O CKW O O DLN FISH C R E E K R D E L M R D B I G T H O M P S O N AVE M A R YSLA KE R D FI R A V E GE M L N M O SSRO CK DR J A C O B R D D E V ILS G U L C H R D KIO W A T R L H BAR G R D S S A I NT VRA IN A VE PR O S P E CT M O U N T A IN RD C U R R Y DR B I G HOR N DR MEA DOW LN NORTH LN ROCKRID G E R D DEVO N DR EAGLE CLIFF RD N SAINT VRAIN AVE M O R A I N E A V E EHIGHW AY 36 LIT T L E V A L L E Y R D DRY GULCHRD LONEP I NE DR PR I V A T E D R HIGHDR FISH HATCHERY RD WPEA K VIE W D R LEX INGTON LN HIGH WA Y 7 W E L K H O RN AV E WHI G H W A Y 3 4 PE NSTEMON D R LAR K S P U R R D CH A S M D R AS P E N A V E M C GRAW R ANCHRD RAINBOW DR M ANFORD AV E BRODIE AVE BROOK DR MESA D R LAKEFR O NTST P RIVA T E D R HIGHWA Y 3 6 P R I V AT E D R VA I L C T W I N D R I V E R T R L B E A R L A K E R D LONG VIEWDR NOT AIAHRD KORA L C T U T E LN M ACG R EGOR LN ASPENDR H E R M I T P A RK R D BAKER DR MIND ST LLOYD LN KE R R R D INDIA N T R L C L I FF RD CEDA R L N W ES T LN F A L L R IV E R DR R I DGE R D PRIVATE R D BLACK CA N Y ON R D DEVILS GULCHR D HIGH W AY 6 6 W H I GH WAY34 TUNNEL R D H I G HW A Y 3 6 HIGHWAY 7 £¤36 £¤34 £¤36 £¤34 £¤34 £¤36 UV7 UV66 UV43 Legend Major Roads Lakes Estes Valley Planning Boundary Town Limits Extraterritorial Water Customers This draft document was prepared for internal use by theTown of Estes Park, CO. The Town makes no claim as tothe accuracy or completeness of the data contained hereon. Due to security concerns, The Town requests that youdo not post this document on the internet or otherwisemake it available to persons unknown to you. 0 1,800 3,600Feet±Town of Estes ParkCommunity Development Extra-territorial Water Service ATTACHMENT 1 MARYS LAKE L O W E R B R O A D V I E W M A RY S LA K E RD GE M L N SPRU C E L A KE DR LARKSP U R R D MEA D O W L N STRONG A V E M O R A I N E A V E R I V E R S I D E D R EVE R G R E E N S T W P E A K VIE W D R VILLA GE L N HIGHWA Y 6 6 HIGH DR U P P E R B R O A DVIEW EL M RD ALPENGLOW LN P RIVATE DR GLACIER VIEW LN P O W E R P L A N T L I T TLE P R O SPEC T RD CENTER L N P R I V A T E DR H I L L R D G R I F F I TH CT P R O S P E RLN S U T T O N L N W I N D Y ROSE DR H I G HWAY36 KINNIKINNI C C T WILLOW L N SPUR LN BLUE M IS T LN M I D D L E B RO A DV IE W SPRING ST G I A N T T R A C K RD K A C HI N A C T C ULVE R R D T U R Q U O I S E T R L R A M S H O R N RD B R O A DVIEW RD W P R OSPEC T M O U NTAIN D R NU TC RA CK E R LN HO N DIUS CIR LLOYD LN H A L L ET THEIGH TS DR SHADC T H E I N Z PKWY KERR R D B A SECA M P D R P R O S P ECT PARKDR SILVER TREE LN VENNE R R A NCHRD P R I V A TED R BigThompso n Ri v e r B e a v e rBr o ok Legend Town Limits Federal Land Ownership Lakes Larimer Road Labels Stream Centerlines This draft document was prepared for internal use by theTown of Estes Park, CO. The Town makes no claim as tothe accuracy or completeness of the data contained hereon. Due to security concerns, The Town requests that youdo not post this document on the internet or otherwisemake it available to persons unknown to you. 0 340 680Feet±Town of Estes ParkCommunity Development Marys Lake Road Area ATTACHMENT 2 CHE R O K E E DR S SAINT VRAIN AVE MANFORD AVE S C OTT AVE FISH CREEK RD SHA DY LN J U N I P E R D R MATTHEW C I R PROSPECT E S T A TES D R P ROSPECTM O U N TA IN RD CURRY D R PAR L N TA L L PINES DR P INE KNOLL DR BIR D I E L N DEVON DR ELKH O L L O W C T LAND E R S ST AV A L O N D R PRIV ATED RGRAVES AVE CO M M U N I T Y D R BI R C H A V E L E XIN G TON LN VIL L A G E G R EENL N COUNTRY CLUB DR PONDE R O SA DR G O L F C O U R SE RD AS P E N A V E BRODIE AVE SAXON CT PEAK VIEW DR FA I RW A Y C L U B L N BROOK DR W OODLANDCT C O N C O R D LN BA I L E Y L N FAWNLN M O RG A N S T VAIL C T P INEWOOD L N LONGS DR E L K RI D G E C T BROOKCT INDI A N T R L EL M A V E FI R A V E TW I N D R NSHARON CT FAIRWA Y C L UB CIR HALBACH LN KO R A L C T AXM I N STER L N C L O V E R LN T R ANQ U I L L N SIXTH GREEN LN S A I N T V RA IN L N N M ORRISCT PAW N E E DR ACACIA DR CRAGS CT PRIVAT E DR STANLE Y A V E DEKKER CIR BALD P ATE CT M A R CUS L N PINEWO O D DR HOLI DAY LN D A R C Y D R P A W NEE LN MEEKER D R WOODSTOC K DR V IS T A VIEW MOCCASINCI R C L E DR H I G HACRES D R S UN N Y M EAD LN O URAYD R WILLOW LN CEDAR LN U NI V E R S I T YDR F ishCreek Legend Town Limits Federal Land Ownership Lakes Larimer Road Labels Stream Centerlines This draft document was prepared for internal use by theTown of Estes Park, CO. The Town makes no claim as tothe accuracy or completeness of the data contained hereon. Due to security concerns, The Town requests that youdo not post this document on the internet or otherwisemake it available to persons unknown to you. 0 340 680Feet±Town of Estes ParkCommunity Development ProspectMountainArea ATTACHMENT 3 W H I S P E RINGPIN E S D R G R E Y F OXDR CARRIAGE DR TW IN D R S COTT AVE R O C K W O O D L N F I S H C R E E K RD SSAINTVRAIN AV E KIOW A T RL UPLANDS C I R A R A P A H O R D PROSPECT E S TATE S DR BROOK DR F I S H CREEK W AY LAR K S P U R A V E LA K ES H O R E D R AV A L O N D R RAMBLING DR LONGS DR P RI VA T E D R B A K E R D R W I L D W O O D D R M O NID A C T F A I R W A Y L N S P R U C EAVE P O N D E R O S A A V E BROOK LN BROADV IE W L N P INEW OODLN S A D D L E B A C K LN LO N G V I E W D R U T E C T WILLOW CT S S H A R ONCT CH E R OK E E D R T Y R O L E R N E LN U T E L N N M O RRISCT P A W N E E D R ACACIA D R CRAGS CT RID G E L N ROCKW OOD L N E D EKK E RCIR ASPEN DR G O V E RN O R S L N EAGLECLIFFLN S U N S E T L N BALDP A TE CT G R E E N P I N E C T SUNRIS E CT A S P ENLN SAI N T F R A NCIS W AY HIDE A W AY LN C HALE T R I D GE CT L A K O T A C T D U N R A V E N LN PA W NEE LN RAMSHORN DR WILDLIF E L N SOLOM ON DR ME E K E R D R I N D I A N TRL PONDEROSALN L I T T L EVALLE Y R D CHEROKEE CT C H R I S T M A ST REELN S A N B O R N D R BLUEBIR D LN PINEMEADOWDR R A N C H C I R Fis h C r e ek FishCreek E a stFork F i s h C r e e k UV7 Legend Town Limits Federal Land Ownership Lakes Larimer Road Labels Stream Centerlines This draft document was prepared for internal use by theTown of Estes Park, CO. The Town makes no claim as tothe accuracy or completeness of the data contained hereon. Due to security concerns, The Town requests that youdo not post this document on the internet or otherwisemake it available to persons unknown to you. 0 410 820Feet±Town of Estes ParkCommunity Development Carriage HillsArea ATTACHMENT 4 MARYS LAKE S S A I N T VR A I N A V E GREY FOXDR CA R R I A G E D R W HI S P E R I N G P I N E S DR KI O W A T R L A R A P A H O R D LAR K S P U R A V E CARRIAGE DR M A R Y S L A K E RD W PEAKVIEW D R S S AINT V R AIN AV E P O W E R P L A N T BRO A D V IEW L N S P R U C E AVE P O N D E R O S A A V E KIOWA DR S I O U XCT C H ERO K E E D R U T E C T P R O MO N TO RY D R U T E L N RID G E L N S U N S E T L N G R E E N P I N E C T PI N E WOODDR L A K O T A C T D U N R A V E N LN PONDEROSALN P A W NEE DR K I O W A CT WILDLIF E L N RAMSHORNDR CHEROKEE CT S A N B O R N D R L A K E W OODCT UV7 Legend Town Limits Lakes Larimer Road Labels This draft document was prepared for internal use by theTown of Estes Park, CO. The Town makes no claim as tothe accuracy or completeness of the data contained hereon. Due to security concerns, The Town requests that youdo not post this document on the internet or otherwisemake it available to persons unknown to you. 0 410 820Feet±Town of Estes ParkCommunity Development CountyEnclaves ZI O LACT FISH HATCHERY RD FALLRIVERRD PRIVATEDR RECOV ERYCI R Y P S IL O NCIR DAVID DR C L O O P £¤34 Fawn Valley Enclave Highway 7 Enclave ATTACHMENT 5 Annexation Policy Town Board Study Session April 22, 2025 Direction Sought from Town Board Does Town Board support the general approach outlined today (i.e. two documents - one internal annexation policy to guide decision making and a separate intergovernmental agreement with Larimer County to guide processes)? If so, do the example IGAs cited serve as a good model to begin discussions with county staff? Is something missing? Does anything stand out as being inappropriate to the Estes Valley? Should staff engage with Larimer County staff on creating a draft agreement to bring back to the Board? Should staff work to refine an internal annexation policy based on the concepts shared today? Is using the Comprehensive Plan as an outline for that policy the right approach? How do other jurisdictions in Larimer County treat annexations? Intergovernmental Agreements (Berthoud, Fort Collins, Loveland, Timnath, Windsor). Highlights: 1.Geographic Boundaries. 2.County to Use City/Town Comprehensive Plans. 3.Development Regulations. 4.Referrals. 5.Annexations. a.The City/Town agrees to consider annexation of any property eligible for voluntary annexation. b.The City/Town agrees to pursue annexation of any property eligible for involuntary annexation (i.e. enclave annexation). c.The County will not accept for review certain land use applications (e.g. rezoning, PUD, subdivision, etc.) on properties eligible for annexation unless the City/Town has denied annexation. d.The County will require a binding agreement with certain land use applications (i.e. applications requiring Board of County Commissioners approval) that properties not currently eligible for annexation will pursue annexation when eligible. What is the cost/benefit of annexation? •Detailed economic analysis of annexations requires expert analysis •Residential development typically a net loss financially •Example house in Estes Park valued at $700,000 = assessed value of $43,750 = property tax revenue to the Town of $79 annually •More compact residential development is less of a cost burden •Commercial development is typically a net positive •Fiscal impacts of an annexation are not the only consideration How do Vacation Homes Impact Revenue of Annexing Residential Areas? •Average Vacation Home in Estes Park can be expected to generate approximately $2,684 in sales tax revenue to the Town annually (5% sales tax collected on average $53,684 revenue per Study) •2025 Workforce Housing Regulatory Linkage Fee is $1460. •Policy decision for Town Board - The cap on vacation home licenses in Town is 322, while Larimer County has a cap of 208 licenses in the unincorporated Estes Valley. Would Town Board increase cap to allow an annexed property to continue to operate as a vacation home? How does the Town treat extraterritorial water service? •Municipal Code Section 13.24.120 requires all applicants for water service outside the boundaries of the Town to annex their property, if required by the Town. •Ineligible properties must execute an agreement requiring annexation when eligible. •Who determines if a property should be required by the Town to annex and based on what criteria is not defined by the code or policy. •Staff recommends adding clarity to this process either through a Municipal Code amendment or through an annexation policy. Marys Lake Road Corridor •Mostly built-out with single-family homes on lots of ½ to 1 acre in size. •Approximately 85 parcels that front directly on Marys Lake Road. •Some larger lots that could potentially accommodate development or redevelopment, including an 11-acre parcel owned by the Housing Authority. •Very few properties are currently eligible for annexation. •Town Board could be proactive by annexing ROW Prospect Mountain •Largely built-out with single family homes, typically 1 acre •Approximately 80 properties •Opportunities for development or redevelopment appear more limited •All of the approximately 1.6 miles of roads in the neighborhood are unpaved. •Public Works does not support annexing any roads that are not fully compliant with Town standards. •Estes Park Aerial Tram could create enclave Carriage Hills Area •Approximately 550 properties •11 miles of roads, majority substandard. •Area is mostly built out although there are a handful of unbuilt lots and some lots that are large enough to potentially be subdivided to allow additional development. •Due to the dispersed nature of this area, annexing road right-of-way to encourage annexation seems like a less viable option compared to a corridor like Marys Lake Road. Enclaves •Enclave - area in unincorporated portion of the county completely surrounded on all sides by a municipality. •Exempt from certain requirements of the Municipal Annexation Act and can be annexed by a municipality unilaterally •Often desirable to annex enclaves to provides more efficient and consistent level of government services. •Estes Valley has numerous areas that appear to be enclaves but upon closer inspection do not meet that statutory requirement as enclaves. •Staff has identified two areas that are eligible as enclaves. •Staff was not able to map non-enclave properties that are eligible for annexation at this time due to the sheer number of properties that would need to be analyzed. If there is interest from the board in narrowing the scope, such as eligible properties over a certain size threshold and are identified as undeveloped by the county, staff could produce a map for review. Proposal Staff recommends creating two separate documents to guide annexations: 1.An internal annexation policy to provide high level guidance to Town Board, staff, property owners, and the community at-large regarding factors to consider with prospective annexations 2.An intergovernmental agreement with Larimer County to ensure cooperation regarding development and annexation in the Estes Valley Internal Annexation Policy Considerations Natural Environment - Annexation should help protect sensitive watersheds, forests, wildlife, and recreational areas. •Example: Leverage annexations to protect sensitive areas through dedication of park land or conservation easements. Built Environment – Annexation should enhance quality of life, preserve local character, balance a supportive mix of land uses, and align services and infrastructure needs. •Example: Annexation should be consistent with the Future Land Use Map. •Example: Annexation should not place undue burden on utility or service providers and costs to upgrade infrastructure should be borne by the properties being annexed. Economy - Annexation should promote sustainable economic development and Town finances. •Example: Annexation should support economic development that diversifies the local economy or provide services missing from the Estes Valley. •Example: Tax revenues should offset costs associated to serve a property and maintain infrastructure. Internal Annexation Policy Considerations Housing – Annexation should improve supply and affordability of workforce and attainable housing. •Example: Annexation includes workforce or attainable housing. Health & Social – Annexation should promote health and prosperity for all people in the community, and support services and quality of life amenities to maintain a healthy lifestyle. •Example: Annexation improves access to facilities such as parks and daycare. Transportation & Infrastructure – Annexation should support critical infrastructure, utilities, and transportation. •Example: Annexation should facilitate construction of transportation facilities identified in the Transportation Master Plan or required by the Development Code. •Example: Avoid annexing streets not up to Town standards. •Example: Annexation reduces enclaves or patchwork of municipal and county boundaries to allows improved delivery of services, such as more efficient police service and street maintenance. Direction Sought from Town Board Does Town Board support the general approach outlined today (i.e. two documents - one internal annexation policy to guide decision making and a separate intergovernmental agreement with Larimer County to guide processes)? If so, do the example IGAs cited serve as a good model to begin discussions with county staff? Is something missing? Does anything stand out as being inappropriate to the Estes Valley? Should staff engage with Larimer County staff on creating a draft agreement to bring back to the Board? Should staff work to refine an internal annexation policy based on the concepts shared today? Is using the Comprehensive Plan as an outline for that policy the right approach? May 13, 2025 • OHV/Golf Carts on Roads • Noise Ordinance Enforcement • Flock Safety Cameras May 27, 2025 • High Impact Project Process • Outside Entity Funding (Policy 671) Edits June 10, 2025 • State Wildfire Code • Cleave Street Redevelopment Update June 24, 2025 • Police Department Facility Update Items Approved – Unscheduled: • Estes Park Health Update • Overnight Parking • Police Department Facility Financing • Curb and Gutter Philosophy • Liquor License Process Items for Town Board Consideration: • None Future Town Board Study Session Agenda Items April 22, 2025