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HomeMy WebLinkAboutPACKET Town Board Study Session 2013-07-09 Tuesday, July 9, 2013 TOWN BOARD 4:30 p.m. – 6:30 p.m. STUDY SESSION Town Hall Rooms 202/203 4:30 p.m. Future Study Session Agenda Items. (Board Discussion) 4:45 p.m. Recreational Marijuana – Town Options. (Attorney White & Chief Kufeld) 5:15 p.m. Break for Dinner. 5:30 p.m. Proposed Amendments to Policy 101- Board Assignments. (Trustee Ericson) 6:00 p.m. Capital Improvement Plan. (Assistant Town Administrator Richardson) 6:30 p.m. Meeting Adjourn. AGENDA To: Honorable Mayor Pinkham Board of Trustees Town Administrator Lancaster From: Jackie Williamson, Town Clerk Date: July 5, 2013 RE: Future Town Board Study Session Items July 23, 2013 Role of Liaisons Management of Town Properties LMD Appointments August 13, 2013 Community Survey Ice Rink Future Items Comprehensive Plan Modernization Sign Code Revisions Town’s Role in Events Strategic Planning Compensation/Classification Study – Policy Decisions Capital Plan for 2014 Senior Center/Museum Master Plan Revise Stanley Historic District Agreement Town Clerk’s Office Memo Town Attorney Memo To: Honorable Mayor Pinkham Board of Trustees From: Gregory A. White, Town Attorney Date: July 2, 2013 RE: Town Options - Amendment 64 - Retail Marijuana Background: In November 2012, Colorado’s voters passed Amendment 64 that legalizes the personal possession, use, and limited home-growing of marijuana by adults 21 years of age and older, and authorizes the operation of marijuana establishments which include marijuana cultivation facilities, marijuana product manufacturing facilities, marijuana testing facilities, and retail marijuana stores. Amendment 64 required the Colorado Department of Revenue (“DOR”) to adopt regulations governing the operation of marijuana establishments no later than July 1, 2013; requires local governments to adopt regulations identifying the entity within the local government responsible for processing license applications for marijuana establishments no later than October 1, 2013; authorizes local governments to adopt licensing procedures and regulations governing certain aspects of the operation of marijuana establishments; and authorizes local governments to prohibit the operation of marijuana establishments by adoption of an ordinance or through an initiated or referred measure. During the 2013 legislative session, the Colorado Legislature passed three bills: HB 13- 1317, HB 13-1318, and SB 13-283 to implement the licensing and regulatory framework for retail marijuana establishments and to submit a single question to the voters in November, 2013 to implement State sales and excise taxes on the retail sale of marijuana. On July 1, 2013, DOR adopted emergency rules for the regulation of the State’s retail marijuana industry by the Department’s Marijuana Enforcement Division. By the adoption of these emergency rules, DOR met the July 1 deadline mandated by both the State statute and Amendment 64. Page 2 On February 12, 2013, the Town Board imposed a temporary moratorium on the establishment and/or operation of all marijuana establishments as defined in Amendment 64 to October 1, 2013. October 1, 2013 is the date which the Town, if the Town Board so determines, must either “opt out” of allowing retail marijuana establishments within the Town or establish local licensing procedures for retail marijuana establishments. Options: 1. Opting Out. Section 16 (5)(f) of Amendment 64 provides in part as follows: “A locality (the Town), may prohibit the operation of marijuana cultivation facilities, marijuana product manufacturing facilities, marijuana testing facilities, or retail marijuana stores through the enactment of an ordinance or through an initiated or referred measure; provided any initiated or referred measure to prohibit the operation of marijuana cultivation facilities, marijuana product manufacturing facilities, marijuana testing facilities, or retail marijuana stores must appear on a general election ballot during an even numbered year.” The Town Board has the option, by adopting an ordinance, to prohibit retail marijuana establishments within the Town boundaries. This option includes prohibition of all or some of the four (4) types of facilities. This ordinance must be effective on or before October 1, 2013. Although Amendment 64 does not require the ordinance to be effective by October 1, 2013, that is the date that the DOR’s Marijuana Enforcement Division is required to begin accepting applications for retail marijuana establishments. The Town Board may refer an ordinance to the voters to ban retail marijuana establishments in the Town. However, the first election may not occur until November of 2014. Also, electors may, through the initiative process, initiate an ordinance to ban retail marijuana establishments in the Town. The initiated ordinance also may not be on the ballot until November of 2014. Affects of Opting Out. In the event the Town Board adopts an ordinance prohibiting the operation of retail marijuana establishments, the following are possible consequences: a. Loss of Revenue. Retail marijuana establishments would be required to pay sales tax on the sale of retail marijuana products including the Town’s 4% sales tax. A ban on retail marijuana establishments would deprive the Town of any local sales tax revenue from retail sales of marijuana and marijuana products. The Town will also lose the potential return of revenues from license fees collected by the State for licensing retail marijuana establishments. One-half of all application fees collected by the State for Page 3 retail marijuana establishments shall be returned to the local jurisdiction in which the license is proposed to be issued. The current license fee is $5,000 per establishment. There is the proposed excise tax of 15% and retail sales tax of 10% which have been referred by the Legislature to the voters in November, 2013. Fifteen percent (15%) of the sales tax would be returned to the local jurisdiction. The excise tax will not as it is earmarked for school capital construction. b. If the Town opts out and prohibits all of the classifications of retail marijuana establishments, then the Town does not have to adopt an ordinance designating the entity within the local government responsible for licensing and/or issue licenses. 2. Local Licensing. If the Town decides not to opt out, then prior to October 1, 2013, the Town must adopt an ordinance that designates the entity within the local government responsible for licensing in the event the State fails to issue any licenses by January 1, 2014, or if the State licensing authority fails to act within 90 days of submittal of an application. The Town also has the right, but is not required, to adopt rules, regulations, and procedures for the issuance, suspension, and revocation of any license issued. In the event the Town determines not to opt out and address local regulation, there are numerous questions which would need to be reviewed. Please see pages 3 and 4 of the CML information sheet attached hereto. 3. Current Town Ordinance Relating to Marijuana. Chapter 9.28 of the Municipal Code, copy attached, addresses use and possession of drugs and drug paraphernalia including marijuana. Section 9.28.10 specifically refers to marijuana. This section needs to be amended in order to only prohibit the unlawful use of marijuana by persons under the age of 21 years as required by Amendment 64 including the possession and use of marijuana paraphernalia. Section 16 (3)(d) of Amendment 64 states that the consumption of marijuana is limited as follows: …“ nothing in this Section shall permit consumption that is conducted openly and publicly or in a manner that endangers others”. The Town may adopt an ordinance which prohibits the open and public consumption and use of marijuana by all persons or that endangers others. Neither the State Legislature nor Amendment 64 gives any clarification or definition to the terms “openly”, “publicly”, or “in a manner that endangers others”. Page 4 4. Medical Marijuana. In 2010, the Town adopted Ordinance No. 23-10 which banned medical marijuana establishments within the Town. Amendment 64 does not affect the Town’s ban on medical marijuana establishments. Attached hereto are the following documents: • Chapter 9.28 of the Municipal Code • CML informational sheet of May, 2013 - Marijuana Legislation Implementation • News Release date July 1, 2013 from DOR concerning the emergency rules adopted for Colorado retail marijuana sales • Rule 1401 from the Temporary Rules which addresses local jurisdiction and law enforcement procedures. Chapter 9.28  Drug Paraphernalia  9.28.010 Purpose.  The Board of Trustees determines that items of drug paraphernalia encourage the illicit use of   controlled substances; that the availability, display and sale of such items lends a permissiveness and   apparent legitimacy to the unlawful use of controlled substances; and that the availability, display and   sale of such items greatly threatens the peace, health, morals and safety of the citizens of the   community and that such activities should be prohibited. (Ord. 15‐97, 1997)    9.28.020 Definitions.  As used in this Chapter, the following definitions shall apply  (1) Controlled substance means a drug as defined in Section 12‐22‐303(7), C.R.S. 9‐21  (2) Items or item of drug paraphernalia means all equipment, products or materials of any   kind which are used, intended for use or designed for use in planting, propagating, cultivating,  growing, harvesting, manufacturing, compounding, converting, producing, processing,  preparing, testing, analyzing, packaging, repackaging, storing, containing, concealing, injecting,  ingesting, inhaling or otherwise introducing into the human body a controlled substance in  violation of the laws of this state or the United States. (Ord. 15‐97, 1997)     9.28.030 Sale unlawful.  It is unlawful for any person to sell, deliver, possess with intent to sell or deliver, or manufacture   with intent to sell or deliver equipment, products or materials knowing, or under circumstances where   one reasonably should know, that such equipment, products or materials could be used as drug   paraphernalia. (Ord. 15‐97, 1997; Ord. 11‐03 §1, 2003)    9.28.040 Prosecutions; evidence.   In any prosecution for violation of Section 9.28.030, the following factors shall be considered in   determining whether the defendant knowingly offered for sale or sold drug paraphernalia:   (1) Statements by an owner or anyone in control of the item concerning its use;  (2) The proximity of the item to a controlled substance;   (3) Knowledge by the defendant of the use to which a purchaser or prospective purchaser   intends to put the item;  (4) Oral or written instructions provided in connection with the item concerning its use;  (5) Descriptive materials accompanying the object or displayed in connection with the item   suggesting, explaining or depicting its use;   (6) National or local advertising suggesting, explaining or depicting the use of the item;   (7) The circumstances and manner in which the item is displayed for sale;  (8) The character and nature of other merchandise displayed or sold;   (9) Knowledge by the defendant of a common use to which the item is put in the community;   (10) The existence of common lawful uses for the item in the community;   (11) Expert testimony concerning the use of the item; or  (12) All other relevant evidence showing the character and nature of the item and the   circumstances surrounding its sale or offering for sale. (Ord. 15‐97, 1997) 9‐22    9.28.050 Possession of drug paraphernalia.   A person commits possession of drug paraphernalia if he or she possesses drug paraphernalia and   knows or reasonably should know that the drug paraphernalia could be used under circumstances in   violation of the laws of the State. (Ord. 11‐00 §1, 2000)    9.28.100 Possession or use of marihuana.  (a) It is unlawful for any person to possess less than one (1) ounce of marihuana or marijuana   concentrate.  (b) It is unlawful for any person to openly and publicly display, consume or use not more than   one (1) ounce of marijuana or marijuana concentrate.  (c) Marihuana or marijuana means all parts of the plant Cannabis sativa L., whether growing or   not, the seeds, the resin extracted from any part of the plant, and every compound,  manufacture, salt,  derivative, mixture or preparation of the plant, its seeds or its resin. It does  not include fiber produced  from the stalks, oil or cake made from the seeds of the plant, or  sterilized seed of the plant which is incapable of germination, if these items exist apart from any  other item defined as marihuana. Marihuana does not include marihuana concentrate as  defined in this Section.  (d) Marihuana concentrate means hashish, tetrahydrocannabinols, or any alkaloid, salt,   derivative, preparation, compound or mixture, whether natural or synthesized, of   tetrahydrocannabinols.  (e) A person may possess, display, consume or use marihuana or marijuana concentrate if said   person is under the direction of a person licensed or authorized by law to prescribe, administer  or  dispense marihuana or marijuana concentrate for bona fide medical needs. (Ord. 15‐97,  1997; Ord. 19‐03 §1, 2003)    9.28.110 Sentencing.  (a) Immediately upon a plea of guilty or no contest (except when such a plea is entered in   conjunction with a deferred sentence) or a verdict of guilty by the Court or jury to a violation of  Subsection 9.28.100(a) or (b) by a minor driver, in addition to any other penalty, the Court shall   require the offender to immediately surrender his or her minor driver's or provisional driver's  license to the Court. The court shall forward to the Colorado Department of Revenue a notice of   conviction, together with the offender's license, not later than ten (10) days after the conviction  becomes final.   (b) It is unlawful for any minor driver to fail to surrender his or her license to the Court within   three (3) days of his or her plea of guilty or no contest, or verdict of guilty to a violation of  Subsection  9.28.100(a) or (b).  (c) The Court may, in its discretion and as part of the sentence to be imposed, require a person   convicted of violating any portion of this Chapter to complete Court‐approved public service in  an amount to be set by the Court. (Ord. 19‐03 §2, 2003)  Marijuana LegisLation iMpLeMentation By Rachel Allen, Colorado Municipal League staff attorney, and Kevin Bommer, deputy director Important actIon Item for munIcIpalItIes: By oct. 1, municipalities must enact a local ordinance as described in the “Local Ordinance” section on page 2 of this document unless the governing body of the municipality opts out of retail marijuana pursuant to provisions in Amendment 64. CML will draft a boilerplate ordinance and collect samples that will be available upon request. It also will be available at www.cml.org/marijuana.aspx. introduction In November 2012, Colorado voters passed Amendment 64 to the Colorado Constitution, legalizing the personal use and possession of marijuana for adults 21-years-of-age and older, as well as allowing for the retail sale, cultivation, and testing of marijuana and the production of marijuana-infused products. Gov. John Hickenlooper assembled the Amendment 64 Implementation Task Force on Dec. 10, 2012, in Executive Order B2012-004. The task force was asked to identify the legal, policy, and procedural issues that needed to be resolved, and to offer suggestions and proposals for legislative, regulatory, and executive actions necessary for the effective and efficient implementation of Amendment 64. The task force met for two months and delivered its final report on March 13. Late in the 2013 legislative session, the Colorado General Assembly passed legislation to implement the licensing and regulatory framework for retail marijuana establishments, as well as legislation submitting a single question to voters to implement state sales and excise taxes. This paper is intended to be a general introduction to the constitutional amendment, state legislation, upcoming regulatory actions by the state, and some of the options municipalities have to regulate local retail marijuana operations. It is not intended as an exhaustive legal analysis, and it should not serve as a substitute for advice from your municipal attorney. state legislation Three predominant bills encompass the state marijuana law pertaining to retail marijuana regulation and taxation: HB 13-1317, HB 13-1318, and SB 13-283. HB 13-1317 HB 13-1317 contains the bulk of the task force recommendations and establishes the regulatory framework for licensing by the state and local jurisdictions. The established language of the Colorado Medical Marijuana Code (CMMC) was used to fill in the process-related components of the new Colorado Retail Marijuana Code (CRMC), but differences in the licensing process between the two led to significant changes in the legislation as it progressed.1 1 It is worth noting that the licensing process in the CMMC was significantly altered by HB 13-1238 to mirror licensing under Amendment 64 going forward. Municipalities are encouraged to familiarize themselves with these changes regarding any new medical marijuana license applications in the future. CML is available for further assistance. HB 13-1317 contains the following significant provisions: • At the state level, all future medical and retail marijuana sales and excise tax revenue, as well as all state licensing and application fees, will be deposited into a single fund for the newly rebranded Marijuana Enforcement Division of the Department of Revenue. • On oct. 1, an existing medical marijuana licensee may apply to the state licensing authority for a state retail marijuana establishment license. Under certain circumstances, including local approval, the licensee may continue to operate part of the licensed premises for medical marijuana (MMJ) and part for retail marijuana (RMJ). The state is required to act upon such applications between 45 and 90 days, and conditional licenses (explained later) must be issued before Jan. 1, and will be effective on Jan. 1. • After Jan. 1, any person not already licensed for MMJ may submit a notice of intent to apply for a retail license. A notice fee may be collected and half will be sent to the local jurisdiction. The person may apply for a state license on July 1, 2014. • Under all circumstances, one-half of the application fee collected will be sent to the local jurisdiction unless the jurisdiction has opted out pursuant to its authority to do so under Amendment 64. • Consistent with Amendment 64, local jurisdictions may enact ordinances and regulations governing the time, place, manner, and number of marijuana establishments. Under these provisions, a local jurisdiction has the option to create a local licensing requirement. The Knowledge Now series features practical research on timely topics from the Colorado Municipal League. KNOWLEDGE NOW 1 Marijuana legislation implementation, May 2013 The Voice of Colorado’s Cities and Towns the inforMation you need to serve your MunicipaLity and residents knowledge now • The duties of the state licensing authority and the manner in which it interacts with local jurisdictions is established in Part 2. A state license will be conditionally approved within 45 and 90 days, provided the applicant meets state licensing standards, but the state license only becomes operational upon approval from the local jurisdiction. A RMJ establishment cannot operate legally without both a state license and local approval, in whatever form that approval is granted as chosen by the local jurisdiction. • Once the conditional license has been issued, local jurisdictions are required to acknowledge to the state licensing authority whether or not the application is either approved or denied by the local jurisdiction. There is no time frame established in the statute under which this approval or denial must occur. • Definitions and appropriate limitations are created on each of the four state license types under Amendment 64. • Numerous unlawful acts related to state licensure are established. There are numerous other provisions in the bill. It is important to note that, consistent with Amendment 64, local governments may adopt ordinances and regulations that are more restrictive as long as they do not conflict with Amendment 64, state statutes, or state rules. Municipalities that do not choose to opt out will need to consider the manner in which they will approve or deny any state application for an establishment. While there is no requirement to have a local license, the decision to require establishments to meet local licensing requirements provides an additional element of local control, especially as it relates to enforcement. (In the Colorado Liquor Code, there are some types of licenses — such as limited winery licenses and manufacturers’ licenses — that may be issued without local government approval, and CML occasionally fields complaints and concerns from members about a lack of local control on the establishments. Several municipalities requested HB 13-1317 clearly establish the option for a local licensing requirement to maintain a clear local interest in RMJ establishments within their respective jurisdictions.) HB 13-1318 HB 13-1318 contains the statutory implementation of a special sales tax and an excise tax, as well as refers a single question on the adoption of both to voters on the November ballot. If approved by the voters, both the sales and excise tax described in the “Revenue and taxation” section below become operational. sB 13-283 SB 13-283 enacts several provisions that were generally identified as “consensus items” by the Amendment 64 Task Force. The bill • enacts permissive language allowing local governments the ability to prohibit the use of compressed, flammable gas in a residential setting for use as a solvent in the extraction of cannabinoids or THC; • establishes the legality and enforceability of contracts pertaining to lawful activities authorized by Amendment 64; • creates several required state reports and studies on various social and health impacts of legalization of possession and use of marijuana; • includes marijuana smoke within the Clean Indoor Air Act’s prohibition on smoking in public places; and • establishes a prohibition on open containers of marijuana or marijuana products within a motor vehicle that mirrors the same prohibition on open containers of alcohol. As introduced, the legislation also included consensus language on criminal matters in Title 18, including key definitions and related prohibitions on terms stated in Amendment 64 but left undefined. All of this language was stripped, and the bill instead requires a report by the Colorado Commission on Criminal and Juvenile Justice (CCJJ) by the end of the year with the intention of introducing a bill in the next legislative session. The result is a failure to have a standard language in the state’s criminal code of “openly and publicly,” “enclosed, locked space,” and other language connected to the now legalized possession and use of cannabis until legislation is enacted next year. In the meantime, municipalities may choose to address these issues within their respective municipal codes. constitutional requirements state rulemaking The Colorado Department of Revenue (DOR) Marijuana Enforcement Division (MED) must adopt regulations implementing Amendment 64 by July 1, 2013.2 Should the state fail to meet this deadline, applicants may submit license applications directly to local jurisdictions starting on Oct. 1, 2013, and the local jurisdiction must act on the application within 90 days.3 This local license is issued under authority of the constitutionally mandated local ordinance discussed below, and the licensee is not subject to any regulation or enforcement by MED while the local license is active. local ordinance By oct. 1, every municipality and county (that has not already prohibited retail marijuana establishments) must adopt an ordinance that designates the entity within the local government responsible for licensing under three specific circumstances: • if the state fails to adopt regulations by the July 1 deadline; • if the state fails to issue any licenses by Jan. 1, 2014; or • if the state licensing authority fails to act within 90 days upon an application submitted to it. Should the state fail to license under any of the three scenarios above, then applicants may apply directly to the local jurisdiction for a local license under the required ordinance unless that municipality has opted to prohibit retail marijuana operations. Amendment 64 recognizes that a local jurisdiction will not have any state assistance in this case, and allows the local jurisdiction to establish procedures for the issuance, suspension, and revocation of any license issued by the local jurisdiction. 2 COLO. CONST.art. XVIII, § 16(5)(a), PERSONAL USE AND REGULATION OF MARIJUANA (also known as “Amendment 64”). 3 Id. at § 16(5)(i). 2 COLORADO MUNICIPAL LEAGUE A local license in this scenario is different than a local license that may be required by a local jurisdiction as part of dual state and local licensing. The former scenario is in lieu of the state’s license, and the latter (described in more detail below) is in conjunction with a state license. To maintain harmony with the apparent intent of Amendment 64, local governments that want to prohibit the operation of any or all of the retail marijuana licenses should adopt an ordinance to do so prior to Oct. 1, and in a manner consistent with the language of Amendment 64. Moratoriums should be worded sufficiently to apply enough force of law to be recognized as the “opt-out” allowed by Amendment 64. While a retail marijuana business cannot become operational without local approval, the only guarantee against the state processing any applications for state licenses within jurisdictions that do not want them is to choose to prohibit retail marijuana operations via ordinance. Only the governing body can opt its jurisdiction out prior to Oct. 1, as well as any time thereafter. Initiated or referred questions to opt out cannot be voted on until November 2014, or any even year thereafter. Referenda, initiatives, and referred questions to opt back into Amendment 64 are not prohibited or restricted by Amendment 64 and can apparently occur at any time.4 options permitted under the constitution In conjunction with the adoption of the required ordinance mentioned above, Amendment 64 also permits local ordinances governing local fees, local regulations, and the time, place, manner, and number of marijuana establishments within a city or town.5 fees While the constitution allows the establishment of application, operating, and licensing fees, only the operating fee may be collected by the local government unless the state fails to enact rules by July 1 or fails to act upon an individual state license 4 Id. at § 16(5)(f). 5 Id. application within 90 days.6 Operating fees, while not defined in Amendment 64, are defined by HB 13-1317 as “fees that may be charged by a local jurisdiction for costs, including but not limited to inspection, administration, and enforcement of retail marijuana establishments.”7 local licenses Even though it is not expressly permitted or prohibited by Amendment 64, HB 13-1317 establishes the ability for local jurisdictions to require a local license under local “time, place, and manner” conditions. This should not be confused with the constitutional requirement mentioned above that directs local jurisdictions to establish a local licensing procedure based on the state’s failure to meet certain deadlines. A local licensing requirement under “time, place, and manner” is purely optional and is meant to work similar to alcohol beverage dual licensing. Key decision points The legislation from the 2013 session addressing state and local authority to license and regulate retail marijuana establishments and the text of Amendment 64 leave cities and towns with numerous options for local regulation. Some of the considerations for local regulation might include: 1. Whether to allow retail marijuana establishments to exist at all? 2. Whether to prohibit the establishment of licensed retail marijuana businesses permanently, or to do so only until a certain date in the future at which time the municipality would reevaluate whether or not to allow such businesses to exist after some later date? 3. Which of the four distinct types of retail marijuana establishments will be allowed? a) retail marijuana stores? b) retail marijuana cultivation facilities? c) retail marijuana products manufacturers? d) retail marijuana testing facilities? 6 Id. 7 Id.; C.R.S. § 12-43.4-103(11). 4. Whether to provide a phase-in period during which only current medical marijuana licensees may be allowed to convert to retail marijuana establishments or add a retail marijuana license to current operations? a) if so, for how long? b) allow changes of ownership during the phase-in period? c) allow changes in location during the phase-in period? 5. Whether to allow collocation (i.e., dual use of the same location) for medical marijuana businesses and retail marijuana businesses? 6. Whether to limit the number of businesses allowed in any of the four classes of state licensing and, if so, determine how to prioritize those who would compete for the limited number of approvals. 7. Whether to establish and administer a separate local licensing requirement, per se, or instead depend entirely on other laws (e.g., zoning and land use laws) to enforce “time, place, and manner” restrictions on retail marijuana establishments? 8. Whether to adopt counterpart local regulations addressing some or all of the same subject matter being addressed in state regulations, or instead focus local regulations entirely on aspects of “time, place, and manner” that are not being regulated by the state? a) character and background checks for state license applicants? b) business operational standards? c) product standards? 9. Whether to establish hearing procedures and approval criteria for retail marijuana establishments? a) only for retail marijuana stores, or for other classes of state licensing as well? b) mandate public hearing requirements? c) criteria for approval: “needs and desires” and “reasonable requirements of the neighborhood” as it is for liquor licensing or something else? d) apply same approval procedures and criteria equally KNOWLEDGE NOW 3 to existing medical marijuana licensees who seek to convert to or add a retail marijuana license? 10. Whether to impose spacing restrictions? a) for retail marijuana stores, or for other classes of state licensing as well? b) carry forward any existing spacing requirements currently imposed upon medical marijuana centers? c) carry forward any existing grandfathering provisions currently enjoyed by medical marijuana centers and cultivators under previous city licensing and zoning laws? d) adopt new forms of spacing requirements to be applied to retail marijuana establishments? 11. Whether to impose other location restrictions on retail marijuana establishments through zoning or otherwise, e.g., by identifying specific zone districts in which retail marijuana establishments are or are not allowed? 12. Whether to impose special restrictions on signs and advertising? a) defer to state restrictions? b) carry forward restrictions previously imposed on medical marijuana centers and apply the same to retail marijuana establishments? c) adopt new restrictions? 13. To the extent a municipality establishes a local licensing and regulatory regime, what is an appropriate annual “operating fee” to impose upon licensed retail marijuana establishments? 14. Whether board or council members want to allow retail marijuana businesses to exist in the municipality at all if the state defaults on its licensing and regulatory responsibility by failing to adopt necessary regulations by July 1, 2013; or, failing to act on any license application, the state licensing authority receives within 90 days? 15. In general, any implementing ordinance allowing retail marijuana establishments to exist should establish “civil penalties” for violation of city requirements. 16. Any implementing ordinance allowing retail marijuana establishments to exist should: a) clearly identify a single point of contact with whom the state licensing authority will interact to determine whether or not a particular license application or other licensing action complies with local requirements; and b) specify deadlines for responding to the state regarding new license approvals and other licensing actions. revenue and taxation The major marijuana taxation bill of the session was HB 13-1318, which refers a single question to the November 2013 statewide ballot with two revenue raising components: a wholesale 15 percent excise tax on cultivated marijuana earmarked for school capital construction as described in Amendment 64; and a special 10 percent sales tax to be imposed over and above the state’s normal 2.9 percent sales tax. The legislature will have the ability through legislation to increase the tax. Of the special 10 percent sales tax revenue, 15 percent will be shared with the local jurisdictions in which the tax is collected, similar to the cigarette tax share back, with the exception that local governments would not be penalized for retaining their own sales tax authority and existing taxes. Both HB 1317 and 1318 capture sales tax and fee revenue derived from retail marijuana businesses and dedicate these revenues to the “direct and indirect costs” of administering the state regulatory regimes for both medical and retail marijuana. However, the local share-back of revenue derived from the special 10 percent sales tax is not earmarked by 1318 for any particular purpose.8 Policy makers should consider a variety of options including: • Whether to budget and appropriate monies to provide additional resources for marijuana-related regulatory enforcement and services? • Whether to require marijuana establishments to post a marijuana tax bond to ensure the payment of local taxes by these retail establishments? • Whether to refer to the ballot a question imposing additional local sales or excise tax on marijuana? — if your board or council decides to refer a ballot question - at what rate? - earmark the revenues for a purpose? — additional tax considerations include - what to do with state share back? - what to do with existing sales tax revenues derived from medical and/or retail marijuana operations? - opt to levy an additional sales or excise tax? • Whether to impose operating fees on retail marijuana establishments? faQs Is dual licensing at both the state and local level (like liquor licensing) contemplated in the legislation? Dual licensing is expressly allowed, but not mandated. However, unlike liquor licensing, an applicant will get conditional state approval before any local approval is considered.9 can an adult purchase and consume marijuana in the same location? No, consumption of marijuana is prohibited on public premises that are licensed to sell retail marijuana or products.10 8 The ballot title designates that tax revenues will be used “to fund the enforcement of regulations on the retail marijuana industry and other costs related to the use and regulation of retail marijuana.” Some may argue this creates a limitation. 9 C.R.S. § 12-43.3-104(3) (2013). 10 Id. at § 12-43.4-901(4)(c). 4 COLORADO MUNICIPAL LEAGUE reports of co-ops and mobile marijuana delivery services have emerged after the passage of amendment 64. Does the legislation curb these activities? Co-ops, and mobile delivery of marijuana are prohibited.11 Municipalities may be better served by enacting clearer local prohibitions in zoning ordinances or other local land use and regulatory tools. social clubs (where adults gather in a commercial space to consume but not sell marijuana) have become another recent concern. What options do local governments have to regulate these? The state legislation prohibits on-site consumption in licensed establishments,12 and language added to HB 13-1317 late in the session is largely insufficient to effectively prohibit social clubs. Some municipalities have regulated private cannabis clubs with local ordinances under their land use authority. can a person be charged with stoned driving, similar to DuI? Yes. In addition to existing laws prohibiting driving under the influence, the legislature passed a “driving under the influence of drugs” (DUID) bill this session, specific to marijuana, which creates a “permissive inference” of intoxication if a person tests positive for five or more nanograms of active THC.13 can adults use marijuana while operating a motor vehicle or possess an open container? No, the open container law has been amended to include marijuana in addition to alcohol.14 Does the clean Indoor air act apply to marijuana smoking in addition to cigarette smoking indoors? Yes, the Clean Indoor Air Act was amended to prohibit marijuana smoke in an identical manner to the existing prohibition on cigarette smoke.15 11 C.R.S. 12-43.4-901(4)(c) and (h) (2013). 12 Id. at § 12-43.4-901(4)(c). 13 C.R.S. 42-4-1301 (2013). 14 C.R.S. § 42-4-1305.5 (2013). 15 C.R.S. § 25-14-203 to 204, et seq. (2013). Do the same 1,000-foot distance requirements from a school; an alcohol or drug treatment facility; the principal campus of a college, university, or seminary; or a residential child care facility, as medical marijuana establishments apply to retail marijuana operations? No, there is no 1,000-foot distance limitation for retail marijuana establishments as it pertains to qualifications for a state license, so municipalities should consider addressing this in their local ordinances or rules. can a municipality act as the grower or owner? No, state law prohibits government-run retail marijuana operations.16 Does the same requirement for the state to issue a state license between 45 and 90 days also apply to local jurisdictions? No. There is no constitutional or statutory requirement specifying how long a local government may take to indicate its approval or denial of a conditional state license. However, in the event the state fails to meet any of the obligations that would otherwise cause an applicant to apply directly to the local government under the constitutionally required local licensing ordinance, then the local government must act within 90 days.17 If we choose to license retail marijuana establishments, can the city or town prohibit use in public buildings and parks? Yes. While consumption of marijuana “openly and publicly”18 is not allowed, Amendment 64 specifically allows for the prohibition of marijuana possession, consumption, use, display, transfer, sale, transportation, or growing in public buildings.19 The state legislation does not define “open and public,” so municipalities might consider doing so in their local codes. 16 C.R.S. § 12-43.4-103 (2013). 17 COLO. CONST. art. XVIII, § 16(5)(h). 18 Id. at § 16(3)(d). 19 Id. at § 16(6)(d). can a municipality limit the size of personal home grows authorized by amendment 64? While Amendment 64 allows each adult to grow six plants “provided that the growing takes place in an enclosed, locked space, is not conducted openly and publicly, and is not made available for sale,”20 the law does not define those terms, so municipalities may consider clearly defining what constitutes an “enclosed, locked space” in their municipal codes. Much like they can with medical marijuana, municipalities can use land use, building, and fire codes to regulate home grows. Some municipalities have limited the number of plants per household (regardless of the number of residents), some have dictated the minimum space needed per plant, others have restricted indoor grows to specific types of lights, while others have prohibited home grows in multifamily housing. additional resources CML has sample ordinances and a table tracking municipal actions on retail marijuana at www.cml.org/ marijuana.aspx. Please contact CML Staff Attorney Rachel Allen at 303-831-6411, 866-578-0936, or rallen@cml.org to request copies of additional sample ordinances. If you have questions, please contact CML Deputy Director Kevin Bommer (kbommer@cml.org) or CML Staff Attorney Rachel Allen (rallen@cml. org). Both can be reached at 303-831- 6411 or 866-578-0936. Special thanks CML would like to extend a special “thank you” and acknowledgement to Denver Assistant City Attorney David Broadwell for authoring the “Key Decision Points” section of this document. 20 Id. at § 16(3)(b). KNOWLEDGE NOW 3 NEWS RELEASE  For Immediate Release  Contact: Daria Serna  DOR Communications Director  Phone Number: 303‐866‐5303    Julie Postlethwait  Marijuana Enforcement Division PIO  Phone Number: 303‐205‐2360  Colorado Department of Revenue ∙1375 Sherman Street ∙ Denver, CO 80261 ∙ www. Colorado.gov/revenue    Emergency Rules Adopted for Colorado Retail Marijuana Sales July 1, 2013 – Denver, CO. The Colorado Department of Revenue (DOR) has adopted emergency rules for the regulation of the state’s Retail Marijuana Industry by the Department’s Marijuana Enforcement Division. The adoption of these emergency rules ensured that the Department met a July 1st deadline mandated by state statute and constitutional amendment. Upon the passage of Amendment 64 in November 2012, Colorado Governor Hickenlooper established a task force that brought together a wide variety of stakeholders to provide recommendations to the Governor, General Assembly, and Attorney General regarding implementation of the Amendment. These recommendations were the groundwork used by the Joint Select Committee of the legislature, made up of members from both houses of the General Assembly (Senate and House of Representatives), to generate initial draft legislation, after which three separate bills were introduced and passed via the legislative process. Through each step of the process decision makers heard extensive testimony from interested parties and this input was used to develop the emergency rules. These emergency rules, which expire within 120 days of adoption, will provide the foundation upon which the formal rulemaking process will begin. This will allow the time necessary to produce well vetted final rules prior to any Retail Marijuana businesses opening for operation on January 1, 2014. “I am so pleased with the amount of collaboration between the legislature, stakeholders, and constituents that has brought us to this point,” said Barb Brohl, Executive Director of the Department of Revenue and State Licensing Authority, “This open exchange of information allowed DOR staff and legal counsel the tools necessary to formulate emergency rules of a much higher quality than is normally possible when state agencies begin the formal rulemaking process. Regulation of the Retail Marijuana industry is a matter of utmost public concern and having the opportunity to work hand-in-hand with a variety of stakeholders has proven invaluable. We look forward to continuing our collaborative approach and maintaining the instrumental role public involvement has played. Our work is not done and we will continue to move forward and provide our state with a well regulated industry that maintains a clear focus on public safety.” While stakeholder input will continue to play a significant role in the process, anyone unable to participate earlier in the process will have the opportunity to provide input in the formal Public Comment phase of the process via written comment, public testimony or both. Additional information will be made available at www.colorado.gov/revenue/amendment64. ###  To: Honorable Mayor Pinkham Board of Trustees Town Administrator Lancaster From: John Ericson, Trustee Date: July 5, 2013 RE: Proposed Amendments to Policy 101- Board Assignments When we were discussing Policy 101 several months ago, I got to thinking about how the Board assigns its members to the Board Committees. As a result, I developed the attached worksheet for our discussion on 7/9. The basis of my thoughts is to align the Committee Assignments with our Liaison responsibilities (a hierarchy, if you would). The sheet is just a starting point for discussion - Indeed; some Board Liaison roles may not take place (Hospital for insistence) The staff liaison column shows which department would represent staff, i.e. the PD is Police which is aligned with the PUP Board Committee. While I was at it, I added the MOU & IGA s we should have (some may not currently exist). If anyone has any questions, I will be glad to discuss them with you. I look forward to talking about this next Tuesday at our Study Session. TOWN BOARD Memo Administration Memo To: Honorable Mayor Pinkham Board of Trustees Town Administrator Lancaster From: Lowell Richardson, Assistant Town Administrator Date: July 9, 2013 RE: Capital Improvement Plan Background: Please find attached the draft Capital Improvement Plan (CIP). Since 2010 the Town has used the CAMP (Capital Asset Management Plan) process for identifying and approving capital projects, improvements and purchases. As a continuous process for improvement staff researched the various management practices of government for capital planning. As it turned out the Town’s CAMP process actually was identified as an overall capital asset management practice that incorporates; asset management, asset scheduling, asset inventories and capital planning. Based on the research staff has initiated the development of a CIP to be incorporated into the Town’s CAMP starting within the 2014 budget process. A CIP is a mid-range planning tool (4-10 years) used to manage and plan out the expenditure of funds for large one-time capital expenditures. In the case of this CIP capital expenditures are defined as any improvement, purchase or new construction with a cost of $50,000 or more and a useful life of five years or more. The intent of the CIP is to present all capital activities by this definition in one document where activities and expenditures are readily available for review and identification. Also, to remain in conformance with the CIP Policy currently under consideration for approval by the Town Board the CIP is a five year planning document. The CIP process will require changing internal operational processes currently used by staff. It will require the application and use of a systematic approach to developing capital expenditures beyond a one year period and require planning out those expenses. The CIP process requires organizing significant capital activities for the purpose of scheduling, reporting, tracking and completing projects and improvements. Provided for discussion is the basic outline of the CIP being recommended for use for the 2014 budget process. Staff previously presented a CIP policy to the Town Board for discussion and review and is bringing that document forward approval at the Town Board meeting scheduled for July 9th 2013. It should be noted that the document before you is a draft containing examples only, there are no real numbers, the intent was to provide some visuals for discussing the usefulness of the documents, forms and processes.                        Town of Estes Park: Capital Improvement Plan      12014‐2018 CIP   SUBMITTED TO THE MAYOR AND TOWN BOARD OF TRUSTEES  PREPARED BY   The Capital Improvement Plan Team  Rueben Bergsten Utilities Director  Alison Chilcott Community Development Director  Steve McFarland Finance Director  Scott Zurn Public Works Director  Lowell Richardson Assistant Town Administrator                                               Town of Estes Park: Capital Improvement Plan      22014‐2018 CIP Chapter 1 – Introduction  1.1 Definitions Terms and Phrases …………………………..    5  1.2 CIP Purpose    ……………………………    13  1.3 Definition of a Capital Project ……………………………    16  1.4 Importance of a CIP  ……………………………    16  1.5 Capital Project Financing …………………………..    16  1.6 CIP and Annual Capital Budget Process ………………    17  1.7 Relationship with Town of Estes Park Strategic Plan        18  1.8 Project Selection Criteria       ………………………………….    21  1.9 Project Categories      …………………………………    22  Chapter 2 – Summary of Capital Needs   2.1 Summary of Total Identified Funding for CIP ………    24   2.2  Summary of Total Costs of CIP FY2104 – FY2018 ………    26   2.3 Summary of FY 2014 CIP  ………………………………    27   2.4 Summary of FY 2015 CIP  ……………………………..    27   2.5 Summary of FY 2016 CIP  ………………………………    28   2.6 Summary of FY 2017 CIP  ……………………………..    28   2.7 Summary of FY 2018 CIP  ……………………………..    28   2.8 Financial   …………………………….    29    Chapter 3 – Facilities        Facilities Improvement Projects     36  Chapter 4 ‐ Transportation and Streets     Transportation Improvement Projects …………….    39  Chapter 5 –Parks and Trails/Open Space     Parks/Trails/Open Space Improvement Projects    41  Chapter 6 – Storm Drainage        Storm Drainage Improvement Projects ……    42  Chapter 7 – Water        Water Improvement Projects ……………………………    43                         Town of Estes Park: Capital Improvement Plan      32014‐2018 CIP Chapter 8 ‐ Light and Power      Light and Power Improvement Projects …………    44  Chapter 9 – Information Technology   I.T. Improvement Projects ………………………………….  45  Chapter 10 – Vehicle & Equipment Replacement   Vehicle & Equipment Replacement  ……………  46  Chapter 11 – Special Projects         Special Improvement Projects ………………………..  47  Appendices    Appendix A …………………………………………………………….  48  Appendix B …………………………………………………………….  50  Appendix C …………………………………………………………….  51  Appendix D …………………………………………………………….  52                                           Town of Estes Park: Capital Improvement Plan      42014‐2018 CIP CHAPTER 1  INTRODUCTION  1. Introduction  The Town of Estes Park’s Capital Improvement Plan or CIP is a short to mid‐range planning  document spread out over five years outlining recommended capital projects, purchases  and improvements recommended by Town Staff. Located within the Town’s overall Capital  Asset Management Plan (CAMP) the CIP addresses improvements to Town owned assets,  new construction, purchases or replacement purchases of a Town asset. Town assets are  categorized into one of the following categories:  ™ New Construction  ™ Infrastructure Improvements   ™ Equipment or Real Property (Purchases or Replacement)  In the fiscal year 2014 the Town of Estes Park will adopt its first Capital Improvement Plan  (CIP) for the budget years 2014‐2019. The CIP is a recommended schedule of capital  expenditures for the next five years to meet capital needs. Each capital project or capital  expenditure will contain estimates of cost and proposed funding sources for each capital  initiative. The CIP will become part of the Town’s annual budgeting process which allows for  revisions and updates to the Five Year CIP on an annual basis.  As a planning document the CIP process requires each Town Department to submit their  letter of recommendations for capital initiatives (purchases, replacements, improvements  and/or new construction) for review through an adopted administrative process. Once  vetted the CIP is submitted to the Town Board during the budget process for review,  prioritization of projects, and approval.   With few exceptions identified and recommended capital initiatives for the Town of Estes  Park’s CIP shall be based on one or more of the following criteria:  ™ Life/Safety  ™ Legal Requirements  ™ Essential Improvement  ™ Quality of Life Improvement  ™ Efficiency Improvement                         Town of Estes Park: Capital Improvement Plan      52014‐2018 CIP ™ Revenue Producing Improvement  ™ Service Improvement  ™ Service Expansion Improvement  ™ Self‐Funded Replacement Schedule  It should be noted a recommended capital initiative does not require more than one criteria  item to move forward, however the more criteria items affixed to a capital initiative the  more likely the initiative becomes weighted as a significant capital need.  The CIP is one part of the Town’s overall Capital Asset Management Plan (CAMP)  1.1 Definitions Terms and Phrases  Accrual Basis of Accounting – a method of accounting whereby income and expense items  are recognized and recorded when income is earned and expense is incurred, regardless of  when cash is actually received or paid.  Amortization ‐ the systematic reduction of the amount owed on a debt issue through  periodic payments of principal.   Annual Operating Budget – Projected revenues and expenditures for operating and  reoccurring services for a period of one year.  Anticipation Notes ‐ an instrument of debt financing where a specific source of tax revenue  is pledged for repayment.  Appropriation – an authorization made by the Town Board of Trustees which allows for the  Town of Estes Park to incur obligations and to make expenditures.  Assessed Valuation – a valuation established upon real estate or other real property by the  Larimer County Assessor’s Office as a basis for levying ad valorem taxes.  Balanced Budget‐ a balanced budget occurs when the total sum of money collected by the  Town of Estes Park is equal to the amount spent on goods, services and debt services.  Basis Point ‐ the smallest measure in quoting yields on notes and bonds. A basis point is one  one‐hundredth of one percent. For example, 100 basis points = 1.00% or .01.  Benchmark ‐ a standard used to compare and evaluate the performance of an investment.                         Town of Estes Park: Capital Improvement Plan      62014‐2018 CIP Bond Ratings – an evaluation by a rating company of the probability that a particular bond  issue will default. Ratings range from AAA (highest quality) to D (in default) for debt  instruments and A1/P1 (highest quality) to D (in default) for money market instruments.  Book Value ‐ the adjusted cost of a bond, which may differ from the current market value of  the bond.  Book Yield ‐ The yield of an investment calculated using its book value.  Budgeting Process – the budget process allows the Mayor and Town Board of Trustees with  the opportunity to match the needs of the community and available resources with the  intent of gaining the maximum return for each dollar collected by the Town of Estes Park.  The budget serves as a policy document, an operations tool and a communication device.  Building Permits – a document authorizing to construct a building of a particular kind on a  particular lot that is issued by the Town of Estes Park.  Capital Expenditures – the appropriation of bonds or operating revenues for improvements  to infrastructure, facilities, roads, bridges, land, for new construction and capital purchases.  These expenditures typically have a cost of $50,000 or more with a useful life of three years  or more.  Capital Improvements – improvements to land, facilities, equipment and infrastructure.  Costs associated with capital improvements typically have a cost of $50,000 or more with a  useful life of five years or more.   Capital Outlay – are fixed assets which have a value of $5,000 or more with a minimum  useful of one year or more.   CD ‐ a Certificate of Deposit, also known as a CD, is a debt instrument issued by a bank  where the investor gets a higher interest rate than a standard savings account, but cannot  access the money for a set period of time.  Certificate of Participation ‐ a lease‐financing mechanism where the government enters into  an agreement to make annual lease payments for the use of an asset over some period,  after which the title for the asset transfers to the government.  Certificate of Occupancy (CO) – a document used to certify the legal use and occupancy of a  building and describe how a building may be occupied. A CO will be issued when the                         Town of Estes Park: Capital Improvement Plan      72014‐2018 CIP completed work complies with submitted plans, codes, ordinances and when all fees and  fines are resolved and when all approvals have been obtained.   CIP (Capital Improvement Plan) – a short to mid‐range plan (4‐10) years outlining capital  needs and identifying associated funding sources required to meet those associated capital  expenditures.  Commercial Paper ‐ a short‐term debt instrument issued by a corporation.  Contractual Services – services such as rentals, insurance, maintenance, etc…that are  purchased by the Town of Estes Park to meet operational needs.  Debruced ‐ a term used by Colorado governmental entities that describes when the Tabor  requirements have been lifted through referendum. Douglas Bruce is largely responsible for  the TABOR amendment that is why the action is referred to as “debrucing”.   Debt Instrument ‐ a generic term for an entity's promissory note to repay money borrowed  from investors, along with interest, at a certain maturity date, e.g. a bond or CD.  Debt Service‐ the long term payment of principal and interest on borrowed monies, such as  bonds or bank loans.  Department – a unit of Town government functionally responsible for the delivery of a  unique service.  Depreciation – expiration of the service life of a capital asset typically attributable to wear  and tear, deterioration, actionable use of the physical element of the item and/or an  inadequacy or obsolescence of the item.  Development Impact Fees – those fees generated by building, development and growth in a  community. Included are the building and street permits, development review fees, zoning,  platting and subdivision fees.  Division – an organized unit found within a Town Department.  Encumbrance – the commitment of appropriated funds to purchase an item or service. To  encumber funds means to set aside or commit funds for a specified future expenditure.                         Town of Estes Park: Capital Improvement Plan      82014‐2018 CIP Enterprise Fund – a governmental accounting fund in which services provided are financed  and operated similarly to those of private business. The rate schedules for those services  are established to ensure that user revenues are adequate to meet necessary expenditures.  Expenditure/Expense – terms used to refer to the outflow of funds paid for an asset  obtained and for goods or services obtained.  Fees – fees are charges for specific services.  Fiscal Policy – a government’s policies with respect to revenues, spending and debt  management as they relate to services, programs and capital investments. A fiscal policy  provides for an agreed upon set of principles for the planning and programming of  government budgets and their funding.  Financial Overview – is a combined statement of revenues, expenditures and fund balance  for the current years adopted budget.  Fiscal Year – any consecutive twelve month period that may or may not coincide with the  calendar year. The Town of Estes Park’s fiscal year is based on the calendar year.  Fixed Income Security ‐ a security that pays a fixed rate of interest until maturity.  Fund – a set of interrelated accounts to record revenues and expenditures associated with a  specific purpose. The Town of Estes Park has five funds (General, Enterprise, Special  Revenue, Internal Service and Fiduciary).   Fund Balance ‐ fund balance is the excess of assets over liabilities and reserves and is  therefore known as surplus funds or SPACE SAVINGS.  Generally Accepted Accounting Principles (GAAP) – a standard established by the  Accounting Practices Board of American Institute of Certified Public Accountants. These  rules, conventions and procedures define accepted accounting practices.  General Obligation Bonds (GO Bonds)‐ are debt instruments used by municipalities to raise  funds for capital public projects. The difference between these bonds and Revenue Bonds is  they are backed by the full faith and credit of the municipality. Meaning the municipality  commits it full resources to paying back the loan which includes taxes and their ability to  raise more funds through credit.                         Town of Estes Park: Capital Improvement Plan      92014‐2018 CIP Government Finance Officers Association (GFOA)‐ the national government finance officers  association sets accounting and budgeting standards for government organizations.  Grants – financial contributions provided by a government agency or other entity in support  of a particular function or operation. Grants support either operational or capital expenses  within an organization offsetting such expenses within a defined period of time. Typically  grants require some form of a cash match or in‐kind match of real property, staff time,  equipment etc…and some require no matching at all.  Highway User Tax Fund (HUFT) ‐ this revenue is generated through the collection of state  taxes for fuel, vehicle registration, driver’s license fees, court fines and fees, motor vehicle  penalty assessments, miscellaneous fees and passenger mile tax. These funds are restricted  and may be used only for public roads and all expenses associated with maintaining and  constructing roads.   Internal Service Fund – a fund used to account for the financing of goods and services  provided by one Town Department to another on a cost basis reimbursement.  Liability ‐ an entity's current and future obligations and debts.  Liquidity ‐ how easily an investment or asset can be converted into cash. Something that can  be converted easily is said to be "highly liquid."  Market Value ‐ the value of an asset based on current market prices.  Maturity ‐ the date at which the principal amount of a bond, note, or other debt instrument  is payable to investors.  Modified Accrual Method of Accounting – the accounting process of recognizing revenues in  the period when they become available and measurable (known). To be used to pay  expenditures incurred, regardless of when receipt or payment of cash takes place.   Money Market Fund ‐ a mutual fund that aims at stability and liquidity by investing in short‐ term securities.  Operating Budget – the operating budget is the plan for current expenditures and the  proposed means of financing them. It includes all personnel costs, operating and  maintenance costs, capital outlay costs and debt service allocations outside the CIP.                         Town of Estes Park: Capital Improvement Plan      102014‐2018 CIP Ordinance – a formal legislative enactment by the governing body of a given municipality. If  it is not in conflict with any higher form of law, such as a state statute or a constitutional  provision, it has the full force and effect of law within the boundaries of the municipality to  which it applies.   Pay‐As‐You‐Go Capital Improvement Projects – capital projects whose funding source is  derived from Town revenue sources other than through the sale of voter approved bonds.  Performance Measures Indicators – these are quantifiable measurements agreed to  beforehand that reflect the critical success factors of an organization. Performance  selectors used must reflect the organization’s goals, they must be key to its success, and  they must be quantifiable. Performance measures are typically long term and their  definitions usually do not change. A particular performance indicator may change as the  organization’s goals change or as it gets closer to achieving a goal.  Prudent Investor Standard – an investment standard outlining the fiduciary responsibilities  of public fund investors relating to investment practices. The Colorado Uniform Prudent  Investor Act (CRS 15‐1.1‐102) establishes certain considerations that determine prudence.   Public Infrastructure – refers to the Town of Estes Park’s public infrastructure that is located  within the geographical boundaries of the Town and within the approved services areas of  Town. Most common Town of Estes Park public infrastructure is:  a) Light and Power system  b) Water system  c) Information Technology  d) Roads, parking lots, parking structures, pedestrian systems (sidewalks, crosswalks etc…)  and bridges  e) Free Town WI‐FI  f) Master planned drainage systems  g) Parks and Trails  h) Equipment  i) Public Buildings  j) Traffic control systems  k) Open spaces                         Town of Estes Park: Capital Improvement Plan      112014‐2018 CIP Public Private Partnership‐ partnerships created between a municipality and a private  organization to achieve community goals through research, planning, financing and  construction of new community facilities or for the repair or revitalization of said facilities.  Realized Gain/ Loss ‐ a profit/loss that results from the sale of an asset when the current  market value exceeds or is less than the adjusted cost basis of the asset. The gain/loss is  realized because the asset has been sold.  Repurchase Agreement ‐ an agreement of one party to sell securities at a specified price to a  second party, and a simultaneous agreement of the first party to repurchase the securities  at a specified price or at a specified later date.  Reserve‐ an account which records a portion of the fund balance which must be segregated  for some future use and which is not available for further appropriations or expenditure.   Resolution‐ a formal expression of opinion or intention made, usually after voting, by a  formal organization, legislature, council or board.   Revenue Bonds – are municipal bonds that finance‐income producing projects. The income  generated by these projects pays revenue bondholders their interest and principal. Projects  funded by revenue bonds serve only those in the community who pay for their services.  General Obligation Bonds, in contrast, finance projects that do not produce income but  provide services for the entire community. The Town financed both Utility Department’s  capital projects using Revenue Bonds. These bonds are not backed by the full faith and  credit of the Town. Because of this they carry a somewhat higher risk default for which they  offer higher interest rates. (Morningstar, Inc. 2010) These types of bonds can be used by the  Town to fund future capital infrastructure projects for both Utility Departments.  Town of Estes Park Sales Tax – is a tax based on 4% for the selling of goods and services. As  a statutory community the state of Colorado collects all sales tax on behalf of the Town of  Estes Park. Those revenues typically are recorded and reported back to the Town between  45 and 60 days in arrears.   Security ‐ a generic term for a financial investment representing a share of debt (like a bond)  or equity (a share of stock) in an institution. There are different types of investments usually  referred to as securities: Agency Securities, issued by an agency of the Federal Government,  Treasury Securities, issued by the Federal Government itself (either in short‐term T‐Bills or                         Town of Estes Park: Capital Improvement Plan      122014‐2018 CIP longer‐term Treasury Bonds), and Mortgage‐Backed Securities, which represents a share in  the obligations of a group of mortgages.  Stewardship of Resources – generally means responsible for taking good care of resources.  Tax Payers Bill of Rights (TABOR) – is a constitutional amendment with a provision requiring  that increases in overall tax revenue be tied to inflation and population increases unless  larger increases are approved by referendum. Revenue in excess of the TABOR limit,  commonly referred to as the “TABOR surplus,” must be refunded to taxpayers, unless  voters approve a revenue change as an offset in a referendum, known as “debrucing”.  Taxes – are a compulsory charge levied by a government for the purpose of financing  services performed for the common benefit. This term does not include specific charges  made against particular persons or property for current or permanent benefits such as  special assessment. Neither does the term include charges for services rendered only to  those paying such charges, like water service fees.   Treasury Bill ‐ a Treasury Bill, or T‐Bill, is a short‐term investment issued by the Federal  Government. T‐Bills have maturities under one year (usually one, three, or six months) and  do not bear interest by coupon payments, but by discount. That is, the security is bought for  less than the face value returned at maturity.  Treasury Bond ‐ a Treasury Bond is the longest‐term investment issued by the Federal  Government. They have maturities between ten and thirty years and pay interest every six  months until maturity.  Treasury Notes ‐ a Treasury Note is a longer‐term investment issued by the Federal  Government. They have maturities between one and ten years and pay interest every six  months until maturity.  Trust ‐ an arrangement where someone (trustee) controls a property or investment  portfolio for the benefit of another person or group (beneficiary).  Unrealized Gain/Loss ‐ a financial gain or loss caused by an increase or decrease in the  current market value of an asset relative to its purchase cost but which has not technically  occurred because the asset has not been sold.  User Charges – the payment of a fee for direct receipt of a public service provided for the  party who benefits from the service.                          Town of Estes Park: Capital Improvement Plan      132014‐2018 CIP 1.2 CIP Purpose  Definition of a CIP  The primary purpose of a Capital Improvement Plan is to catalog and schedule capital  improvements over a multi‐year period. A CIP lists the specific improvement projects  envisioned in the Town Board’s vision, mission, goals and objectives. A CIP matches those  projects with sources of funding (although a funding source is not always available for all  projects).   Relationship Between CIP and Other Critical Town Planning Documents  A CIP is one of three critical planning documents involved in the delivery of capital  improvements for the Town of Estes Park. Those three components are:  1) The Town’s overall strategic plan of vision, mission and goals.  2) The multi‐year Capital Improvement Plan.  3) The annual Budget.   The Town’s overall strategic plan serves as the long range planning vision for the future of  Estes Park and establishes those guidelines for the ambitions and desires for the future  characteristics of the community.  The CIP is an analysis document or a tool if you will that links the vision of the Town’s  overall strategic plan with a list of physical improvements that intend to fulfill that vision. A  CIP identifies the projects necessary to accomplish the goals of the Town and proposes an  implementation schedule for those projects based on the availability of funding.  The annual Town Budget is the implementation document that prioritizes the identified  physical improvements in the CIP and links them with available financial resources for the  upcoming year. The Annual Town Budget only refers to those projects specifically  programmed for the next fiscal year, in contrast to the CIP, which refers to projects over a  multi‐year period. The greatest distinction of the two documents is the Town Budget is a  legally adopted operating budget, while the CIP does not necessarily commit the Town to a  particular expenditure in a particular year.  All three elements are specific to meeting the needs and delivering the identified needs  found within the CIP.                          Town of Estes Park: Capital Improvement Plan      142014‐2018 CIP   Incorporation of the Annual Town Budget into the CIP  This document incorporates the Annual Budget’s Community Reinvestment Fund (FY 2014)  into the Five Year CIP (FY 2014/2015/2016/2017/2018). The CRF Budget comprises many of  the capital projects approved by the Town Board. Other Town funds within the budget  identify capital projects and expenditures as well and in some instances those financial  activities are funneled through the CRF while others are not. One of the purposes of the CIP  is to centrally locate all capital activities into one document location where project,  purchases and funding sources are identified for all capital activities identified within the  Town’s budget.  As part of the development and incorporation of the CIP and the Town’s budget processes a  CIP Flowchart is developed it demonstrates the process for review and approval of the CIP  and the Annual CIP within the Town Budget process. See figure “A”.                         Town  Board  Strategic   Plan CIP Annual  Capital  Budget                        Town of Estes Park: Capital Improvement Plan      152014‐2018 CIP FIGURE A  CIP FLOWCHART    Department Heads draft and submit their recommended  CIP needs and recommendations for the upcoming  budget year to the CIP team. Completed request are  submitted to the CIP Team by June 1 of each year. CIP team reviews, priortitizes submitted projects and  purchases (based on one of the nine CIP criteria),  reviews for completion, reviews for conformance with  Town Board's strategic outcomes. Once completed the  CIP Team submits their recommendations to the Town  Administrator by  July 1 of each year. Town Administrator receives CIP Team's  recommendations for submitted CIP intiatives. Town  Administrator reviews CIP submittals. The Town  Administrator submits his/her recommendations to the  Town Board for the first study session scheduled in  August of each year. The  results and any changes  recommended by the Town Board are incorporated into  the CIP the Town Administrator then forwards CIP to the  CIP Team  for revision completions and submittal for  annual budget session.  Town Administrator sends back submitted CIP requests  to Department heads for clarification or corrections. Town Board receives CIP  requests from Town  Administrator and/or CIP Team  at annual budget session. TOWN BOARD REVISES/DENIES  CIP CIP is Approved                        Town of Estes Park: Capital Improvement Plan      162014‐2018 CIP 1.3 Definition of a Capital Project  The CIP is composed of a list of capital projects which involve the purchase, improvement or  construction of major fixed assets which are typically large in size, expensive, non‐ reoccurring and permanent. Examples of capital projects include the construction of traffic  and transportation systems, public buildings, parks, water delivery systems and electric  systems. Street and sidewalk maintenance is not a capital project and therefore is found  within the specific maintenance line items of the individual department’s budget. These  expenses over $5,000 can be found in the Capital line item of the department budget and is  considered a capital outlay. Currently the Town does not have a capital maintenance  program and as such all these expenditures are within the annual budget.    1.4 The Importance of a CIP  As previously mentioned the CIP is one of three critical planning documents involved in the  delivery of capital improvements for the Town of Estes Park. In coordination with the other  three planning documents the CIP assists in delivering capital improvements in an efficient  manner. The CIP provides the following benefits for the Town:    ™ Facilitates scheduling of public improvements that take place over one or more years  ™ Facilitates scheduling of improvements requiring expenditures and appropriations over  one or more fiscal years. Because capital improvements typically are carried out and  paid for over several years a scheduling tool is needed that forecasts funding and  expenditures over several year periods.  ™ It allows projects to be compared against the Town’s goals.  ™ It facilitates the orderly management and scheduling of capital projects.  ™ It provides a forum for public input.   ™ Adopted CIP’s increases the Town’s opportunities for grants both state and federal.  ™ It assists in the future planning for the development and planning of the Town’s capital  infrastructure, capital improvements, new construction and acquisitions.     1.5 Capital Project Financing  Unfunded Projects  Current estimates for capital projects within the CIP are at $23 million dollars. Considering  these estimates exceed available funding capabilities of the Town it is important to list  these needs in the Five Year CIP and in any future CIP’s simply that in the event any  funding opportunities become available to fund any of these future projects.                          Town of Estes Park: Capital Improvement Plan      172014‐2018 CIP Sources of Funding  Capital Projects, improvements and purchases are funded in a variety of ways. Below are  snapshots of the current funding sources:    ™ General Fund  ™ Enterprise Fund  ™ Internal Service Fund  ™ Special Revenue Fund  ™ Open Space Fund  ™ Grants  ™ Highway User Tax Fund  Basis and Limitations of Project Cost Estimates  Generating project cost estimates for a CIP is an inexact science. Some projects can be  estimated with a great deal of specificity (based on land, material and labor costs) but  others cannot. Future projects, in many cases, have no identified location, design or  timeframe, making it impractical to produce an estimate with accuracy. Town staff  produced project cost estimates based on best information available (typically from:  construction costs for similar projects completed/planned by other jurisdictions, cost  estimates from Master Plans, expenses from previous years, etc…). Engineering, planning  legal and contingency costs were estimated and added to the overall project cost when  appropriate. Estimates are typically refined to a greater level of detail when they are  assigned to the current fiscal year.   1.6 CIP and Annual Capital Budget Process  Preparation of the CIP and the Annual Capital Budget  The CIP and the Annual Budget were developed through a coordinated effort between the  Town Administrator’s office, the Leadership Team and the CIP committee. In a systematic  approach, staff members identified necessary infrastructure improvements, projected  estimated costs and searched for potential sources of funding. A project description was  prepared for all identified projects, whether funded or unfunded, and incorporated into  the draft CIP. These can be located within the given category chapter of the CIP.    Review Process   All CIP applications are reviewed by the CIP Team who uses the following criteria and  priorities based on one or more of the nine CIP criteria identified in section 1 of the CIP                         Town of Estes Park: Capital Improvement Plan      182014‐2018 CIP document. These prioritized submittals are then aligned with one or more of the Town  Board’s seven strategic key outcomes. The final phase is to categorize submitted  applications as funded or unfunded submittals.     1.7 Relationship with Town of Estes Park’s Strategic Plan  In 2013, the Town Board held their annual vision, mission and goal setting retreat. At this  retreat the Town Board developed a strategic plan setting priorities for both short term (1  year objectives) and mid‐range goals (5‐7 year).  Incorporated within this planning process  the Town Board reviewed and set their vision and mission statements as well, see below:  2014 STRATEGIC PLAN  (Draft  July 1st, 2013)  VISION  The Town of Estes Park will enhance our position as a premier mountain community  MISSION  The Mission of the Town of Estes Park is to provide high‐quality, reliable services for the  benefit of our citizens, guests, and employees, while being good stewards of public  resources and our natural setting.    KEY OUTCOME AREAS    1. Robust Economy ‐  We have a diverse, healthy year round economy  2. Infrastructure ‐ We have reliable, efficient and up to date infrastructure serving our  residents, businesses and guests  3. Exceptional Guest Services  ‐ We are the preferred Colorado mountain destination  providing an exceptional guest experience.  4. Public Safety, Health and Environment ‐  Estes Park is a safe place to live, work, and  visit with an emphasis on our quality natural environment  5. Outstanding Community Services       ‐   Estes Park is an exceptionally vibrant, diverse,  inclusive and active mountain community in which to live, work and play. Housing is  available within Estes Park for all segments in our community.  6. Governmental Services and Internal Support  ‐    We provide high‐quality, reliable  basic municipal services for the benefit of our citizens, guests, and employees, while  being good stewards of public resources                         Town of Estes Park: Capital Improvement Plan      192014‐2018 CIP 7. Transportation ‐ We have safe, efficient and well maintained multi‐modal  transportation systems for pedestrians, vehicles and transit.      GOALS  (5‐7 YEARS )    1) Robust Economy  a) Town codes and regulations are easy to use and understand, yet effective and  enforceable and support development (encourage the new Board of Appeals to  look at our regulations and codes and give suggestions)      b) The Town encourages events, activities and development that enhance a year  round economy  c) The Town participates as a partner in State, Regional and Local Economic  Development Efforts   d) Optimize the use of the PRPA fiber infrastructure    2) Infrastructure  a) Address parking options that serve downtown.  b) Continue to pursue grants and utilize available open space funding to develop  connectivity of trails in the Estes Valley in partnership with other local entities as  described in the Estes Valley Trails Master Plan.  c) Provide safe access for users to the trail system  d) All Town Streets are classified at a fair condition (~70%) or above  (need some  clarification from PW here.  Is the intention that NO roads are at a condition less  than 70% or that the transportation network has an average condition of no less  than 70%.  The Network standard is apparently a more common standard in the  industry)  e) Review the potential redevelopment of areas affected by the FLAP grant   f) Upgrade the Glacier Creek Water Treatment plan to maintain redundant water  treatment.    3) Exceptional Guest Services  a) The MPEC  meets the 2013 CH Johnson pro‐forma financial projections    4) Public Safety, Health and Environment  a) Maintain safe and healthy environments on Town owned properties.    5) Outstanding Community Services  a) Plan and implement the celebration of the 100th  Anniversary of the Town.  b) Increase the capacity for the Museum and the Senior Center, considering the  recommendations of the Museum and Senior Center Master Plan                         Town of Estes Park: Capital Improvement Plan      202014‐2018 CIP   6) Governmental Services and Internal Support  a) Maintain an adequately trained and educated workforce  b) Implement an enterprise wide document management system  c) Ensure town finances are strong with adequate fund balance and sustainable  reserves.  d) Biennially conduct a citizen survey to measure our performance and citizen  preferences    7) Transportation  a) Adequately address downtown traffic issues    2014 TOWN BOARD OBJECTIVES (1 YEAR TIMEFRAME) DRAFT    1) Robust Economy  a) Simplify regulations and code as they apply for specific businesses.  (Staff  requested more clarification here.  What does simplify mean?  Is this all codes and  regulations? What is meant by the term “specific businesses?)  b) Continue to participate in county, regional, and state economic planning  2) Infrastructure  a) Complete the environmental studies required for the extension of the Fall River  Trail using the Paul Sarbanes Grant  b) Develop options for the improvements or replacement of Glacier Creek Water  Treatment Plant  c) Develop sustainable funding plan for facility maintenance   d) Explore capitalizing on the PRPA fiber infrastructure for residents and businesses  3) Exceptional Guest Services  a) Implement and evaluate the operating and marketing plans for the MPEC  b) Develop a strategy for evaluating, recruiting and retaining special events in the  Town, including a strategy for events.  4) Public Safety, Health and Environment  a) Pursue emergency public advisory radio services  b) Evaluate and address potential required changes in radio frequencies  c) Finalize an agreement  with the Colorado Department of Public Health and  Environment on a remediation plan for the Elm Road Landfill  5) Outstanding Community Services  a) Revise the sign code  b) Update the comprehensive plan  c) Define the Town’s role in community housing issues  d) Complete the next phase  of the development of Bond Park  e) Develop and adopt a policy for accepting public art, memorials and donations                          Town of Estes Park: Capital Improvement Plan      212014‐2018 CIP f) Consider the recommendations of the Community Recreation and Wellness Center  Feasibility Study  6) Governmental Services and Internal Support  a) Complete a Citizen Survey  b) Increase compliance with business licenses/ permits of vacation home rentals, and  including tax collection.  c) Implement the capital planning process.  d) Go to the voters in April with a sales tax proposal to support streets and other  infrastructure improvements.  (Kate raised the point that is this the best way to  announce to the citizens that this is going on the ballot?  Could just announcing this  as part of the objectives be counterproductive or should this be something a little  more general at this point such as “Ask the citizens about long term funding to  support…”)  7) Transportation  a) Evaluate and prioritize implementation of Transportation Visioning Committee  signage recommendations    GOAL/OBJECTIVE LINKAGE TO 5 YEAR CIP  Below are the identified relevant Town Board Goals and objectives to the five year CIP:  Robust Economy  o Fiber Optic  Infrastructure  o Parking options  o Trails system  o Streets  Exceptional Guest Services  o Specific goals for developing Fairgrounds, MPEC and Conference Center  Public Safety, Health and Environment  o Safety of the environment in our Town owned urban areas  Governmental Services  o Implement a town wide document management system    1.8 Project Prioritization Criteria  The task of prioritizing capital projects is critically important since there will not be  funding available for the Town to accomplish every project listed in the CIP. The CIP assists  in the prioritization process by outlining criteria in which to evaluate individual projects.  The methodology set forth by the CIP to evaluate capital projects is outlined below:                         Town of Estes Park: Capital Improvement Plan      222014‐2018 CIP   Step One: Identifier components of a Capital Project establishing need:  1. Life/Safety  2. Legal Requirements  3. Essential Improvements  4. Quality of Life Improvements  5. Efficiency Improvements  6. Revenue Producing  7. Service Improvements  8. Service/Space Expansion  Step Two: Once step one is complete fit capital project into one of the following priority  levels:  1. Essential (Highest Priority)  2. Desirable (Moderate Priority)  3. Deferrable (Lowest Priority)   Step Three: Further prioritize based on the following questions (in no particular order)  ‐ How does the project relate to the most recent adopted Town Board strategic  priorities?  ‐ What is the extent to which the cost is justified in terms of the number person(s)  benefited by the project?  ‐ What is the extent the project will be cost‐effective in terms of future public operating  costs?  ‐ What is the extent in which economic development is stimulated?  ‐ What is the extent the project is consistent with other public and private projects?  ‐ What is the extent the project will affect housing needs and growth?  ‐ What is the extent in which the project improves areas in most need?  ‐ What are the consequences of not doing the project?  ‐ Are the planned projects equitably allocated between various geographic parts of the  community?  ‐ Are the planned projects equitably distributed among the various services provided  for the community? (streets, transportation, fairgrounds, police etc…)  ‐ Does the Town have adequate staff to design, manage, administer, inspect and  maintain the projects?    1.9 Categories within CIP Framework  The CIP framework consists of acquisitions, capital services, infrastructure and public  facilities (see Town Board CIP Policy section 103.4.5 for reference). The derivatives from                         Town of Estes Park: Capital Improvement Plan      232014‐2018 CIP the CIP framework are several sub‐categories. CIP projects and purchases are organized  into nine sub‐categories or funding groups for purposes of the planning and reporting  process, they are:    1. Facilities  2. Transportation/Streets/Transit/Parking   3. Parks and Trails  4. Storm Drainage  5. Water  6. Electric  7. I.T.   8. Vehicle and Equipment Replacement  9. Special Projects  A detailed description of each project category is included before the individual project  descriptions. Each project category is further divided into two groups:  1. Current projects  2. Future projects  Future projects are projects with no projected source of funding and are unlikely to be  constructed during the life of the CIP. It is important to list these projects in the CIP, so  that the Town is prepared to act if a potential funding source becomes available in the  future.                                       Town of Estes Park: Capital Improvement Plan      242014‐2018 CIP CHAPTER 2  Finance  2.1 Summary of Total Identified Funding Sources for CIP Projects and Purchases  The following table summarizes the funding sources for projects listed in the CIP.    Funding Source FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 No Year   Assigned  Total  Thousands of Dollars Federal Grants  FLAP  0 0 0 0 $20,000 $20,000 NEPA  0 0 0 0 $7,000 $7,000 FHWA $3,863 0 0 0 0 0 $3,863 Subtotal $3,863 0 0 0 0 $27,000 $30,863 State Grants  Paul Sarbanes $337 0 0 0 0 0 $337 GOCO  0 0 0 0 $500 $500 Subtotal $337 0 0 0 0 $500 $837 Local Grants  Subtotal     General Fund   *Fund Balance $3,261 $3,361 $3,461 $3,561 $3,761 $17,405 Subtotal $3,261    Special Revenues  Community  Reinvestment  $2,350 $200 $200 $200 $200 0 $3,150 Conservation Trust $30 $20 $20 $20 $20 0 $90  Open Space $261 $245 $245 $245 0 0 $996 Subtotal $2,641 $465 $465 $465 $220 0 $4,236 Enterprises  Light and Power $5,879 $4,278 $3,765 $4156 $2,785 0 $20,863 Water $3,374 $2,267 $1,945 $2,432 $2,976 0 $12,994 Subtotal $9,253 $6,545 $5,710 $6,588 $5,761 0 $33,857 Internal Service  I.T. $228 $121 $90 0 0 $388 $727 Vehicle  Replacement  $3,235 $3,156 $2,856 $3,009 $2,765 0 $15,021 Subtotal $3,463 $3,277 $2,946 $3,009 $2,765 $388 $15,748                        Town of Estes Park: Capital Improvement Plan      252014‐2018 CIP Other Revenue Sources  Highway User Trust  Fund (HUFT)  $252 $252 $252 $260 0 $263 $1,279 License and Permits $1 $1,2 $1,3 $1,4 0 $1,5 $6,4 Motor Vehicle  Registration  $26 $27 $27 $28 0 $28 $136 Road and Bridge $60 $61 $60 $58 0 $51 $290 Subtotal $339 $352 $352 $360 0 $357 $1,760      Total Sources of  Funding  $23,157 $10,639 $9,473 $10,422 $8,746 $35,245 $87,301      Unidentified  Funding           Current Project  Requests      Future Project  Requests      Grand Total Projects                                                                  Town of Estes Park: Capital Improvement Plan      262014‐2018 CIP   2.2 Summary of Total Costs of CIP Projects and Purchases FY(S) 14‐18  Current Project Cost Summary‐All Categories  Project Category FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 No Year  Assigned  Total  Thousands of Dollars Facilities $575 $500 Transportation (Streets, Transit, Parking) $1,495  $1,495  Parks & Trails $348 $348 Storm Drainage $175 $175 Water $1,246 $1,246 Light & Power ‐0‐ 0 I.T.   ‐0‐ 0 Vehicle & Equipment Replacement ‐0‐ 0 Special Projects ‐0‐ 0 Totals $3,839 $3,839   Future Projects Cost Summary – All Categories  Project Category FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 No Year  Assigned  Total  Thousands of Dollars Facilities $575 $200 $200 0 0   Transportation (Streets, Parking, Transit) $1,488 $197 $214 $0 $278     Parks & Trails 0 0 0 0 0   Storm Drainage $175 $175 $175 0 0   Water $627 $781 $517 $867 0   Light & Power 0 $209 $811 $688 0   I.T. 0 0 0 0 0   Vehicle & Equipment Replacement 0 0 0 0 0   Special Projects 0 0 0 0 0   Totals $2,565 $1,562 $1,917 $1,555 $278  $7,877    All Projects (Future and Current) Cost – All Categories   Project Category FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 No Year  Assigned  Total  Thousands of Dollars Facilities $500 $275 $200 $200 0   Transportation (Streets, Parking, Transit) $1,495 $1,488 $197 $214 $0     Parks & Trails $348 0 0 0 0   Storm Drainage $252 $175 $175 $175 0   Water $1,246 $627 $781 $517 $867   Light & Power ‐0‐ 0 $209 $811 $688   I.T. ‐0‐ 0 0 0 0   Vehicle & Equipment Replacement ‐0‐ 0 0 0 0   Special Projects ‐0‐ 0 0 0 0                          Town of Estes Park: Capital Improvement Plan      272014‐2018 CIP Totals $3,841 $2,565 $1,562 $1,917 $1,555  $11,718 2.3 Summary of FY 2014 Approved Capital Projects and Purchases  Project Category Funding Sources  Other Funding  Sources  Town Funds Other  Funding  Source  Amounts  2014 Approved  Capital  Expenditures    Thousands of Dollars  Facilities CRF/Enterprise  $575 $575  Transportation  (Streets, Transit,  Parking)  CRF  $1,495 $1,495  Parks and Trails Sarbanes Grant  $348 $348  Storm Drainage CRF  $175 $175  Water Enterprise  $1,246 $1,246  Light & Power Enterprise  0 0  I.T. Internal Service  0 0  Vehicle & Equipment  Replacement  Internal Service  0 0  Special Projects    0 0 0  Totals    $3,839    2.4 Summary of FY 2015 Capital Projects and Purchases  Project Category Fund Sources Other Funding  Sources  Town Funds Other  Funding  Source  Amounts  2013 Approved  Capital  Expenditures    Thousands of Dollars  Facilities     Transportation  (Streets, Transit,  Parking)     Parks and Trails     Storm Drainage     Water     Light & Power     I.T.     Vehicle &  Equipment  Replacement     Special Projects     Totals                            Town of Estes Park: Capital Improvement Plan      282014‐2018 CIP   2.5 Summary of FY 2016 Capital Projects and Purchases  Project Category Fund Sources Other  Funding  Sources  Town Funds Other  Funding  Source  Amounts  2014 Approved  Capital  Expenditures    Thousands of Dollars  Facilities     Transportation  (Streets, Transit,  Parking)     Parks and Trails     Storm Drainage     Water     Light & Power     I.T.     Vehicle &  Equipment  Replacement     Special Projects     Totals         2.6 Summary of FY 2017 Capital Projects and Purchases  Project Category Fund Sources Other  Funding  Sources  Town Funds Other  Funding  Source  Amounts  2015 Approved  Capital  Expenditures    Thousands of Dollars  Facilities     Transportation  (Streets, Transit,  Parking)     Parks and Trails     Storm Drainage     Water     Light & Power     I.T.     Vehicle &  Equipment  Replacement     Special Projects     Totals                              Town of Estes Park: Capital Improvement Plan      292014‐2018 CIP   2.7  Summary of FY 2018 Projects and Purchases  Project Category Fund Sources Other  Funding  Sources  Town Funds Other  Funding  Source  Amounts  2016 Approved  Capital  Expenditures    Thousands of Dollars  Facilities     Transportation  (Streets, Transit,  Parking)     Parks and Trails     Storm Drainage     Water     Light & Power     I.T.     Vehicle &  Equipment  Replacement     Special Projects     Totals        2.8 Financial  Affordability  The infrastructure needs of the Town of Estes Park are significant. In formulating this plan it is  estimated that $22,779,307 in capital needs exists. It is important to note that there are many  worthwhile projects and initiatives. However, due to the economic climate, operating costs,  the desire to maintain reasonable taxes and the loss of our URA, the Town will be unable to  directly fund all of its current capital needs. Furthermore, this plan must carefully project and  limit the amount of debt to be carried in future year budgets.     General Fund Financing Considered a Source of Last Resort  Historically the Town Board of Trustees has worked diligently to develop the practice of “pay  as you go” for funding capital needs. Unfortunately, circumstances previously mentioned  have affected this practice requiring a different approach for funding capital needs. To meet  these ends, Town staff developed four overarching principles in developing the CIP and to  assist in determining which of the many projects should receive funding under this option.  These principals intend to:                           Town of Estes Park: Capital Improvement Plan      302014‐2018 CIP 1) Preserve Current Investments   The Town of Estes Park, through its Capital Improvement Plan, will undertake projects  that protect, extend and maintain current Town assets and grow local sales tax revenues.  Such undertakings will ensure that prior investments of tax dollars will continue to serve a  high‐performing public function. The CIP will prioritize projects that address Town  buildings, infrastructure, land and facilities at risk of future decay. Such projects include  roof repairs, new construction, structural building improvements, streets and substantial  improvements to Town property.  2) Account for Future Costs  The CIP must account for future costs in three ways. First, it will target investments to  area items that would reduce any potential future liability either legally, financially, or as a  hindrance to the provision of core services. Such investments are designed to identify and  defray future costs. Second, the CIP will identify future costs associated with any  proposed investments. Third, the CIP will project future costs. To meet this objective an  analysis of potential future obligations will be completed. By identifying these costs early  in the process, strategies can be implemented to reduce them over time.  3) Limit Expenses Based on Priority  The Town has significant capital needs; however, current economic times have limited our  resources creating challenges to identify responsible methods to fund these capital needs.  As such, a system has been developed to prioritize capital expenditures over the course of  the next five years.  4) Leverage Assets to offset Capital Improvement Costs   Whenever appropriate or prudent Town staff shall investigate the possibility to sell  current assets of no public service value directly related to providing core services. The  sale of these assets should be applied to offsetting capital expenditures whenever  possible.     Together, these financing principles will ensure the Town meets the capital planning  objectives in a fiscally responsible manner.    Revenue Sources  Staff has estimated the proposed five year capital improvement projects at $22.7 million.  Revenues currently generated within the Town’s General Fund are categorized as unrestricted  and restricted revenues. The unrestricted revenues (Community Reinvestment Fund) are at  $280 annually and the restricted capital revenues are at $250K (Open Space Fund) and $253K                         Town of Estes Park: Capital Improvement Plan      312014‐2018 CIP (Highway User Trust Fund).  Other revenues may include grants, excess unbudgeted revenues  or sale of Town assets. The latter three revenue sources are unreliable in a planning sense  limiting the Town’s ability to effectively plan for long term capital improvements. Considering  the age of many of the Town’s capital assets along with identified economic drivers as part of  the CIP the need to identify and select best practices for funding these municipal projects is  necessary.  The options identified would support the Town’s ability to address capital projects  in a more timely fashion while maintaining fiscally responsible practices of public funds. Those  options are:  • Bonded Debt Financing  • Certificates of Participation (COPS) Financing  • Sales tax increases  • A combination of all three    The Town owns all of its facilities/buildings meaning the Town can take on debt through a  COPS instrument without having to go to the voters. However, when taking on any debt the  amount of debt is relative to what the Town can afford to pay back on an annual basis. As  stated previously the Town has available within its Community Reinvestment Fund amounts  that are unrestricted and can be applied for loan repayments.     Examining Funding Sources  In order to ensure affordability, the CIP can be funded through a variety of sources, all  designed to reduce the impact on local property taxes. As with buying a house, a well‐ managed debt plan can allow one to buy large items (e.g. a house) when a purchase of that  magnitude would not necessarily fit into a single year’s annual budget. Estes Park’s debt  payments represented over two decades of Town projects and improvements have been in  public utilities. The most recent of these projects is the Mary’s Lake Water Treatment Facility  and the Mary’s Lake Substation improvements. Considering there are many other public  services Estes Park residents and guests utilize on a daily basis, many managed through the  Town’s general fund, these projects will allow the Town to maintain a standard of quality  service and infuse new sales tax dollars stimulating our local economy. Some of those include:    • A new conference center roof, renovations and I.T. upgrades  • Expansion of the Visitor Center  • Town wide Information technology upgrades  • Other public building improvements                         Town of Estes Park: Capital Improvement Plan      322014‐2018 CIP • Street improvements  • Water infrastructure improvements  • Storm drainage improvements  • Trails  • Parking structures    Types of Funding Options    Revenue Bonds  Revenue Bonds are municipal bonds that finance‐income producing projects. The income  generated by these projects pays revenue bondholders their interest and principal. Projects  funded by revenue bonds serve only those in the community who pay for their services.  General Obligation Bonds, in contrast, finance projects that do not produce income but  provide services for the entire community. The Town financed both Utility Department’s  capital projects using Revenue Bonds. These bonds are not backed by the full faith and credit  of the Town. Because of this they carry a somewhat higher risk default for which they offer  higher interest rates. (Morningstar, Inc. 2010) These types of bonds can be used by the Town  to fund future capital infrastructure projects for both Utility Department.     General Obligation Bonds  GO Bonds (short for General Obligation) are debt instruments used by municipalities to raise  funds for capital public projects. The difference between these bonds and Revenue Bonds is  that GO Bonds are backed by the full faith and credit of a municipality. Meaning the  municipality commits its full resources to paying back the loan which includes taxes and their  ability to raise more funds through credit.     Certificates of Participation (COPS)  Certificates of Participation are normally issued to finance the acquisition of property and  equipment. Simply put, a COP is a share of the lease revenues of a project. COP holders own a  proportionate share of the lease payments, based on how many COPs are owned. COPs are  structured whereby a city, county or school district leases a facility from a created authority.  The authority constructs or purchases the facility, issues the COPs, and pays the COP holders.  At the end of the term of the lease (maturity date of the bond issue), the city, county or  school district takes ownership of the facility. Municipal COPs often have contingencies that                         Town of Estes Park: Capital Improvement Plan      332014‐2018 CIP must be met, such as requirements that the borrower must annually appropriate funds for  principal and interest payments.    Grants  The Town will seek to reduce bond funds wherever possible by looking to grants for projects  such as trails, parking structures, buildings, rehabilitation of roads, transportation and energy  efficiency projects. Various sources for grants is available through the State and federal  Government. Currently the Town of Estes Park has been the recipient of many of these grants  and will continue this practice to fully fund or cash match capital projects. The Town will also  pursue nongovernmental private grants when applicable. Gaining access to grant funds will  require the Town to write grants from within the municipal government or to contract with  grant writing firms.    Reoccurring Revenues   Through transfers and healthy fund balance reserves the Town’s General Fund and Enterprise  Funds pay for the larger portion of capital improvements. However, the Town does receive  special revenues from other sources to pay for or maintain our capital assets. From the  Town’s General Fund the Community Reinvestment Fund receives annual transfers of  $800,000 and any TABOR excess revenues. This fund has been established by practice as the  primary capital improvement funding source for all General Fund projects. Other funding  sources are:    1) Open Space Funds  2) Highway User Trust Funds  3) Conservation Trust Fund   4) Community Reinvestment Funds    Under its legal authorization, these revenues are used for capital project improvements. In  this plan, some of these funds are planned to offset the annual debt costs associated with  Stanley Fairground improvements (e.g. MPEC and stall barns), street improvements and Bond  Park improvements. The amount available for these projects on an annual basis considers  both future revenues and future costs of possible COPS payments. A year‐by‐year estimate of  the use of these funds is detailed in the Plan Overview section of this document.                           Town of Estes Park: Capital Improvement Plan      342014‐2018 CIP To maintain its other capital assets; vehicles and information technology equipment the Town  operates internal services funds. These funds are generated by each Town department that  requires services from either of these two Town operations. Each Town department pays into  these funds annually to offset maintenance, repair and replacement of those capital items.     One‐Time Revenue  One time revenue is not a good funding source for the Town’s annual operating budget  because operating costs recur year‐to‐year. In year two of any scenario, use of one time  revenue leads to either budget cuts or increased reliance on taxes. However, one‐time  revenue is an excellent funding source for capital projects. For example, a one‐time court  settlement in the Town’s favor could be used to offset the cost of a one‐time purchase of a  snow plow. This would both reduce reliance on bond financing water line improvements and  eliminate potential future impacts on rate increases. In order to limit the long‐term costs  associated with the CIP, one‐time revenue will be used wherever possible in lieu of debt  financing.    General Fund Revenue  The Town’s General Fund Budget will ultimately pay a portion of the annual debt costs  associated with this project. The Town has made reductions in expenses and personnel over  the past three years. It should be noted that general fund expenditures can reduce the need  for future capital improvement projects. For example, funding for a Facilities maintenance  staff member reduces the need for major building renovations necessitated by unaddressed  building issues. Vehicle maintenance staff can, and has, substantially prolonged the life of  Town vehicles. Proper funding of these program areas is essential in the preservation of Town  assets, (ex.  The Town’s the Vehicle Replacement program). In addition, some items that  would aid in this maintenance, and are too small in value to be considered a true capital  improvement, should be paid for from the Town’s annual budget. For example, custodial and  maintenance equipment that aids in facility upkeep would fall under this category. Regular  software updates also reduce the need for major file conversion projects that can occur when  systems are out of date.    Sales Tax Increase for Capital Projects  Another option to generate revenues to fund capital improvement projects is a possible sales  tax increase. Any tax increase would require an approval by the voters. In the case of the  Town of Estes Park it is important to note our community is a destination community which                         Town of Estes Park: Capital Improvement Plan      352014‐2018 CIP generates nearly $8 million a year in sales tax, based on a 4% sales tax. Conversely the Town  manages a very low property tax currently at 1.8 mills. To request a property tax increase  would require a significant mill levy increase to cover any front end debt acquired for capital  projects.     Debt Characteristics  The Town of Estes Park's current bond rating is AA+ this bond rating is assigned by Standards  and Poor. S&P conducts research on governmental and commercial entities and assigns  ratings based on the investment attractiveness of a particular organization. Essentially, S&P  ratings identify the rate of risk to an investor when purchasing municipal bonds. Ratings  below Baa3 are not considered investment grade.    Overview  It is anticipated Estes Park’s CIP will expend $22,779,307 in the following categories: building  repairs, drainage improvements, street repair and replacement, sidewalk repair, curb and  gutter repair and replacement, construction of new buildings and environmental remediation.  A detailed description of each proposed project is provided in the pages below. Currently, the  plan is to debt finance a portion of the projects and to seek some form of a sales tax increase  for the remaining total costs of these projects. The Town will work to identify any grants  funds that may be available to reduce the cost of these projects or enhance the scope of  projects. Annual revenue sources will be used to offset debt service costs. These sources are:  unrestricted revenue funds from the Community Reinvestment Fund, and; restricted revenue  funds from the Highway User Trust Fund, Open Space Fund and Conservation Trust Fund.  Revenue from these accounts can help offset annual debt service costs.                                       Town of Estes Park: Capital Improvement Plan      362014‐2018 CIP CHAPTER 3  FACILITIES IMPROVEMENT PROJECTS  Strategic Plan Linkage  Located within the table below are the Town Board’s identified key outcome areas. Each  corresponding goal and objective is marked once or more depending on the number of objectives  or goals identified under one of the key outcome areas as applicable to this component of the CIP.  The detailed components of each goal and objective can be found in section 1.7 of the CIP.  Town  Boards  Strategic  Plan  Robust  Economy  Infrastructure Exceptional  Guest  Services  Public Safety,  Health and  Environment  Outstanding  Community  Services  Governmental  Services and  Internal  Support  Transportation   Goals X X  X X     Objectives  X   X       This fund group includes projects such as proposed construction of a new building like the Multi‐ Purpose Event center, or a maintenance upgrade or improvement to an existing building such as  the Conference Center. For many of the projects in this category no identified funding source has  been identified. The Town staff will need to identify and recommended possible funding sources to  pay for any improvements.   The critical project within this category is the funding and construction of a museum storage  facility. Currently, the Town Board has committed to funding through the CRF (Community  Reinvestment Fund) for the construction of this facility. Originally, the project was estimated to be  partially funded by the Town and partially funded by the Friends of the Museum.   Next in this category is the development of a Facilities Master Plan which will facilitate the planning  and identification of future projects for Town owned facilities.  Project No. Description  Estimated Cost Funding Source Identified Funding  Source TBD    Thousands of Dollars  Current Projects  FA 01‐14 Museum Storage Facility $2,300 $1,000 $1,300 FA 02 Facilities Maintenance Master  Plan  $80 $80 Future Projects  FA 03 Visitor Center Upgrades $250 $250 FA 04 Conference Center Upgrades $250 $250                        Town of Estes Park: Capital Improvement Plan      372014‐2018 CIP FA 01‐14 Museum Storage Facility (As An Example)  Category:  Facilities Improvement Projects  Location:  200 Fourth Street  Department(s): Community Services  Status:    Current Project – Master Plan and Basic Design complete    Description/Rationale for Proposed Project: Many of the Town collections for the museum not on  display are stored in the old light and power shop building, a metal building with no climate  control, comprising the integrity of Town owned assets. The museum/senior center campus master  plan is currently under consideration by the Town Board. The Town Board approved for the FY  2013 budget $200,000 towards construction of a storage facility.    The Town Board’s adopted strategic plan included a goal for increasing the capacity of the  museum. The location of the storage facility is yet to be determined.    Relationship with the Strategic Plan: This project specifically furthers the Key Outcome Areas of  the Strategic Plan under 5) Outstanding Community Services “increase the capacity for the museum  and senior center, considering the recommendations of the Museum/Senior Center Master Plan”.      Estimated Expenses FY 14 FY15 FY16 FY17 FY18 No Year  Assigned   Total   Thousands of Dollars Planning/Engineering/Design    $100 $100 Legal   $5 $5 Labor and Materials    $2,200 $2,200 Project Management    $100 $100 Contingency   $100 $100 Totals   $2,505 $2,505   Sources of Funding FY 14 FY15 FY16 FY17 FY18 No Year  Assigned   Total   Thousands of Dollars CRF $400 $600 $800 $1,000 0  $1,000 TBD   $1,505 $1,505 Totals   $2,505 $2,505                                  Town of Estes Park: Capital Improvement Plan      382014‐2018 CIP FA 01‐14 Visitor Center Remodel and Upgrades (As An Example)  Category:  Facilities Improvement Projects  Location:  500 Big Thompson Avenue  Department(s): Community Services  Status:    Future Project    Description/Rationale for Proposed Project:     Relationship with the Strategic Plan:     Estimated Expenses FY 14 FY15 FY16 FY17 FY18 No Year  Assigned  Total   Thousands of Dollars Labor and Materials  $200  $200 Contingency  $50  $50 Totals     $250   Sources of Funding FY 14 FY15 FY16 FY17 FY18 No Year  Assigned  Total   Thousands of Dollars CRF   $250 $250 Totals     $250                                                      Town of Estes Park: Capital Improvement Plan      392014‐2018 CIP CHAPTER 4   TRANSPORTATION (STREETS, TRANSIT, PARKING) IMPROVEMENT PROJECTS  Strategic Plan Linkage  Located within the table below are the Town Board’s identified key outcome areas. Each  corresponding goal and objective is marked once or more depending on the number of objectives  or goals identified under one of the key outcome areas as applicable to this component of the CIP.  The detailed components of each goal and objective can be found in section 1.7 of the CIP.  Town  Boards  Strategic  Plan  Robust  Economy  Infrastructure Exceptional  Guest  Services  Public Safety,  Health and  Environment  Outstanding  Community  Services  Governmental  Services and  Internal  Support  Transportation   Goals  X X    X X  Objectives  XX      X X    The capital projects listed under the Transportation Improvement Projects category are intended to  improve the safety, efficiency and reliability of the Town’s transportation needs across all modes of  travel. The projects in this category are primarily intended to further the goals and objectives of the  Town Board.  In addition, some of the larger projects listed are intended to address the state of  Colorado’s strategic transportation plan for the greater Estes Park area.   Projects in this category are primarily funded through the Town’s general fund, community  reinvestment fund, highway user trust fund, licenses, permits and vehicle registrations. The STIP  (Street Improvement Program) funds are now located within the Town’s CRF. Fortunately  additional funding has been acquired by the Public Works staff through state and federal grant  programs. Unfortunately sufficient funds do not exist to meet the needs of all the transportation  projects under this category.   Table of Transportation Improvement Projects  Project No. Description  Estimated Cost Funding Source  Identified  Funding  Source TBD    Thousands of Dollars  Current Projects  TR 14‐01 Dry Gulch reconstruct $1,316 $1,316   Totals  $1,316 Future Projects  TR 14‐01 Elkhorn/Moraine Ave One‐way  Couplet   $30,000 $30,000                            Town of Estes Park: Capital Improvement Plan      402014‐2018 CIP TR 01‐14 Dry Gulch Reconstruct (As An Example)  Category:  Transportation (Streets, Parking, Transit System)  Location:  Elkhorn/Moraine  Department(s): Public Works  Status:    Pending Project     Description/Rationale for Proposed Project:     Relationship with the Strategic Plan:       Estimated Expenses FY 14 FY15 FY16 FY17 FY18 No Year  Assigned   Total   Thousands of Dollars Planning/Engineering/Design    $100 $100 Legal   $5 $5 Labor and Materials    $2,200 $2,200 Project Management    $100 $100 Contingency   $100 $100 Totals   $2,505 $2,505   Sources of Funding FY 14 FY15 FY16 FY17 FY18 No Year  Assigned   Total   Thousands of Dollars CRF $400 $600 $800 $1,000 0  $1,000 TBD   $1,505 $1,505 Totals   $2,505 $2,505                                      Town of Estes Park: Capital Improvement Plan      412014‐2018 CIP CHAPTER 5  PARKS/ TRAILS/OPEN SPACE IMPROVEMENT PROJECTS    Strategic Plan Linkage  Located within the table below are the Town Board’s identified key outcome areas. Each  corresponding goal and objective is marked once or more depending on the number of objectives  or goals identified under one of the key outcome areas as applicable to this component of the CIP.  The detailed components of each goal and objective can be found in section 1.7 of the CIP.  Town  Boards  Strategic  Plan  Robust  Economy  Infrastructure Exceptional  Guest  Services  Public Safety,  Health and  Environment  Outstanding  Community  Services  Governmental  Services and  Internal  Support  Transportation   Goals  XX X X X X   Objectives  X   XXX       This category of projects is intended to improve the availability of and access to Town owned parks,  trails and Town owned open space. These projects intend to further the goals, objectives and  policies of the Town of Estes Park for the enjoyment of our residents and guests alike. Primary  funding for these initiatives are through the Larimer County Open Space tax and grants.   Project No. Description  Estimated Cost Funding Source  Identified  Funding Source TBD   Thousands of Dollars  Future Projects                          Future Projects                                       Town of Estes Park: Capital Improvement Plan      422014‐2018 CIP CHAPTER 6   STORM DRAINAGE IMPROVEMENT PROJECTS  Strategic Plan Linkage  Located within the table below are the Town Board’s identified key outcome areas. Each  corresponding goal and objective is marked once or more depending on the number of objectives  or goals identified under one of the key outcome areas as applicable to this component of the CIP.  The detailed components of each goal and objective can be found in section 1.7 of the CIP.  Key Outcome Areas Table   Robust  Economy  Infrastructure Exceptional  Guest  Services  Public Safety,  Health and  Environment  Outstanding  Community  Services  Governmental  Services and  Internal  Support  Transportation   Goals     X  X   Objectives     X  X     This category intends to address the storm drainage infrastructure of the Town based on the  current master plan in place.   Project No. Description  Estimated Cost Funding Source  Identified  Funding Source TBD   Thousands of Dollars  Future Projects                          Future Projects                                         Town of Estes Park: Capital Improvement Plan      432014‐2018 CIP CHAPTER 7  WATER IMROVEMENT PROJECTS    Strategic Plan Linkage  Located within the table below are the Town Board’s identified key outcome areas. Each  corresponding goal and objective is marked once or more depending on the number of objectives  or goals identified under one of the key outcome areas as applicable to this component of the CIP.  The detailed components of each goal and objective can be found in section 1.7 of the CIP.  Town  Boards  Strategic  Plan  Robust  Economy  Infrastructure Exceptional  Guest  Services  Public Safety,  Health and  Environment  Outstanding  Community  Services  Governmental  Services and  Internal  Support  Transportation   Goals  X X X  X   Objectives  X  X         This category intends to address the Town owned water services provided to its customers  ensuring its infrastructure provides a reliable product and services.  Project No. Description  Estimated Cost Funding Source  Identified  Funding Source TBD   Thousands of Dollars  Future Projects                          Future Projects                                         Town of Estes Park: Capital Improvement Plan      442014‐2018 CIP CHAPTER 8  LIGHT AND POWER IMROVEMENT PROJECTS  Strategic Plan Linkage  Located within the table below are the Town Board’s identified key outcome areas. Each  corresponding goal and objective is marked once or more depending on the number of objectives  or goals identified under one of the key outcome areas as applicable to this component of the CIP.  The detailed components of each goal and objective can be found in section 1.7 of the CIP.  Town  Boards  Strategic  Plan  Robust  Economy  Infrastructure Exceptional  Guest  Services  Public Safety,  Health and  Environment  Outstanding  Community  Services  Governmental  Services and  Internal  Support  Transportation   Goals  X X X  X   Objectives                This category intends to address the Town owned electric services provided to its customers  ensuring its infrastructure provides a reliable product and services.  Project No. Description  Estimated Cost Funding Source  Identified  Funding Source TBD   Thousands of Dollars  Future Projects                          Future Projects                                         Town of Estes Park: Capital Improvement Plan      452014‐2018 CIP CHAPTER 9   I.T. IMPROVEMENT PROJECTS     Strategic Plan Linkage  Located within the table below are the Town Board’s identified key outcome areas. Each  corresponding goal and objective is marked once or more depending on the number of objectives  or goals identified under one of the key outcome areas as applicable to this component of the CIP.  The detailed components of each goal and objective can be found in section 1.7 of the CIP.  Town  Boards  Strategic  Plan  Robust  Economy  Infrastructure Exceptional  Guest  Services  Public Safety,  Health and  Environment  Outstanding  Community  Services  Governmental  Services and  Internal  Support  Transportation   Goals X X          Objectives  X            This category of projects is intended to address the Town’s information technology infrastructure  which includes the network, public communication through the internet, fiber optics and  equipment necessary for this infrastructure operate efficiently and effective.    Project No. Description  Estimated Cost Funding Source  Identified  Funding Source TBD   Thousands of Dollars  Future Projects                          Future Projects                                       Town of Estes Park: Capital Improvement Plan      462014‐2018 CIP CHAPTER 10  Vehicle and Equipment Replacement  Strategic Plan Linkage  Located within the table below are the Town Board’s identified key outcome areas. Each  corresponding goal and objective is marked once or more depending on the number of objectives  or goals identified under one of the key outcome areas as applicable to this component of the CIP.  The detailed components of each goal and objective can be found in section 1.7 of the CIP.  Town  Boards  Strategic  Plan  Robust  Economy  Infrastructure Exceptional  Guest  Services  Public Safety,  Health and  Environment  Outstanding  Community  Services  Governmental  Services and  Internal  Support  Transportation   Goals              Objectives                This category intends to address vehicle and equipment replacements and new purchases for the  furtherance of Town operations.   Project No. Description  Estimated Cost Funding Source  Identified  Funding Source TBD   Thousands of Dollars  Future Projects                          Future Projects                                       Town of Estes Park: Capital Improvement Plan      472014‐2018 CIP CHAPTER 11   SPECIAL PROJECTS  Strategic Plan Linkage  Located within the table below are the Town Board’s identified key outcome areas. Each  corresponding goal and objective is marked once or more depending on the number of objectives  or goals identified under one of the key outcome areas as applicable to this component of the CIP.  The detailed components of each goal and objective can be found in section 1.7 of the CIP.  Town  Boards  Strategic  Plan  Robust  Economy  Infrastructure Exceptional  Guest  Services  Public Safety,  Health and  Environment  Outstanding  Community  Services  Governmental  Services and  Internal  Support  Transportation   Goals              Objectives                This category intends to address those special projects which may include partnering with other  governmental entities, such as the Community Center project under consideration.   Project No. Description  Estimated Cost Funding Source  Identified  Funding Source TBD   Thousands of Dollars  Future Projects                          Future Projects                                         Town of Estes Park: Capital Improvement Plan      482014‐2018 CIP APPENDIX A (EXAMPLE)  Project Selection Worksheet [FY2013 –Future Years]  The following tables list the projects in the CIP, beginning in FY2013, that have an identified source  of funding that has been scheduled for a particular fiscal year. The projects without an identified  fiscal year will be listed in the “no fiscal year assigned” table.  Fiscal Year 2013  In Thousands   FA 13‐01 Multi‐Purpose Event Center $5,433  FA 13‐02 Stall Barn $2,167  FA 13‐03 Remodel Utilities/Public Works Offices $66  FA  13‐04  Museum Storage Facility $200  Trans 13‐05  Visitor Center Parking Structure $4,459  Water 13‐01 Big Horn Drive line replacement $178  Water 13‐02 UTSD/Capacity increase $134  Water 13‐03 Automatic meter reader replacement $135  Water 13‐04 System Master Plan $65  Water 13‐05 Security equipment $8  Water 13‐06 SCADA equipment and software $46  Water 13‐07 Biomass Reader $7  Water 13‐08 GPS data collection $25  L&P 13‐01 Software development $50  L&P 13‐02 Substation equipment $40  L&P 13‐03 Equipment scanner $10  L&P 13‐04 GPS field assets $50  L&P 13‐05 Transformers $125  L&P 13‐06 Tools $15  L&P 13‐07 IR sensor $20  L&P 13‐08 Street lights $20  L&P 13‐09 HWY 7 led lights $60  L&P‐13‐10 Allenspark Phase II $688  L&P 13‐11 Conductor system upgrade $112  L&P 13‐12 Engineering design upgrades $25  L&P 13‐13 Fall River/Big Thompson double circuit $498  L&P 13‐14 Underground conductor $150  I.T. 13‐01 Equipment $45  I.T. 13‐02 Servers/Board Room $10                         Town of Estes Park: Capital Improvement Plan      492014‐2018 CIP I.T. 13‐03 Communication Equipment $125  SP 13‐01 Bleachers $40  SP 13‐02 Fencing Birch Ruins $18  Total $16,574    FY 2014  In Thousands            FY 2015  In Thousands            FY 2016  In Thousands            FY 2017  In Thousands            FY 2018  In Thousands            No Fiscal Year Assigned  In Thousands                                   Town of Estes Park: Capital Improvement Plan      502014‐2018 CIP APPENDIX B  Project Selection Worksheet   The worksheet below can be used in preparation of the annual CIP as a tool to decide what projects  to allocate resources towards based on available funds.  Project Name and Number: Category:   Step One: Categorize based on the following priority levels:  1) Essential (Highest Priority)    2) Desirable (Moderate Priority)  3) Deferrable (Lowest Priority)  Step Two:  Further prioritization within those categories based on the following questions (The  questions have not been placed in particular order)  o What is the extent in which the cost is justified in terms of number of persons  to benefited?  o What is the extent that economic development will be stimulated?  o What is the extent that the project is consistent with other public and private  projects?  o What is the extent that the project will affect workforce housing needs?  o What is the extent that the project equitably distributes improvements to  areas in need?  o What are the consequences of not doing the project?  o Are projects equitably allocated among various types of projects (e.g. between  parks and transportation)?  o Does the Town have adequate staff to design, manage, administer, inspect,  and maintain the projects?                                   Town of Estes Park: Capital Improvement Plan      512014‐2018 CIP APPENDIX C  Example of a CIP Schedule Sheet (see file attachment)                                                                                                     Town of Estes Park: Capital Improvement Plan      522014‐2018 CIP Appendix D  References    1) Quincy CIP 2010  http://www.quincyma.gov/cip    2) Doerfinger, Preston, (2012. Capital Asset Management Plan)   Secretary of Finance and Revenue State of Oklahoma     3) 1997. Developing a Capital Improvements Plan   Prepared by municipal data management and technical assistance bureau    4) Gauthier, Stephen J., (2012. GAFFR Governmental Accounting, Auditing and Financial  Reporting: Government Finance Officers Association Blue Book, Chapter 25.     5) East Palo Alto CIP FY2012/2013 – FY2017/2018  http://www.ci.east‐palo‐alto.ca.us     6) Capital Improvement Programming: A Guide for Smaller Governments, GFOA, 1996.     7) Recommended Budget Practices: A Framework for Improved State and Local Government     8) Budgeting, National Advisory Council on State and Local Budgeting, GFOA, 1998.    9) GFOA Best Practice, “Establishing Appropriate Capitalization Thresholds for Tangible Capital  Assets,” 2001.    10) GFOA Best Practice, “Establishing the Useful Life of Capital Assets,” 2002.    11) Capital Budgeting and Finance: A Guide for Local Governments, International City/County  Management Association, 2004.    12) “Managing the Capital Planning Cycle: Best Practice Examples of Effective Capital Program  Management,” Government Finance Review, June 2004.    13) GFOA Best Practice, “Establishment of Strategic Plans,” 2005.    14) National Capital Planning Commission “Federal Capital Improvements Program” for the  national capital region, 2009‐2014 and 2012‐2017.                           Town of Estes Park: Capital Improvement Plan      532014‐2018 CIP 15) Capital Improvement Plan “City of Menlo Park California” 2011‐2015.   www.menlopark.org/cip/5yCIP.pdf.     EXAMPLE OF SUMMARY CIP SHEET USING 2013 DATA  1  2.3 Summary of FY 2013 Annual Capital Improvement Plan (Projects, Improvements and Purchases)  Project and Purchases  Federal Grants State Grants Local Grants Town Funds Tax/Other Revenue  InitiativesOther Sources TBD Grand Total   Special Revenue General Fund Enterprise Internal Service HUTF‐Permit‐Fees/ R&B Open Space/Conservation Trust COP Bonds CRF   In Thousands of DollarsEstimated Funds Available for  FY 2013  $87000$9,253$2,088$339$271$6,000 $2,500   Facilities FA. 13‐01 MPEC $4,320 $1,113  $5,433 FA. 13‐02 Stall Barn   $1,680 $387  $2,167 FA 13‐03 Public Works/Utilities Office Remodel  $30 $36    FA 13‐04 Museum Storage Facility    $200  $200 FA.13‐05 Visitor Center Remodel     $200 $200 FA 13‐06 Conference Center Upgrades     $500 $500 Subtotal   $30 $36$6,000 $1,700 $700 $8,466 Transportation (Streets, Parking, Transit System)  TR13‐01 Visitor Center Parking Structure $3,328   $1,131     TR13‐02 Performance Park Overlay    $20     TR13‐03 Transportation Hub Irrigation    $150    TR‐13‐04 Street Improvement Program      $339 $51    Subtotal  $3,328  $339 $1,358  $5,025 Parks and Trails Parks 13‐01 Bond Park Phase IV   $255    Subtotal    $255   $255 Storm Drainage Storm 13‐01   Elm Road       $175    Subtotal     $175  $175 Light and Power L & P 13‐01 Software Development   $50    L & P 13‐02 Substation equipment   $40    L & P 13‐03 Equipment Scanner   $10    L & P 13‐04 GPS Field Assets   $50    L & P 13‐05 Transformers   $125    L & P 13‐06 Tools      $15    L & P 13‐07 IR sensor   $20    L & P 13‐08 Street Lights   $20    L & P 13‐09 HWY 7 LED lights   $60    L & P 13‐10 Allenspark Phase II   $688    L & P 13‐11 Conductor System Upgrade   $112    L & P 13‐12 Engineering Design Upgrades   $25    L & P 13‐13 Fall River/Big Thompson Double Circuit   $498    L & P 13‐14 Underground Conductor   $150     EXAMPLE OF SUMMARY CIP SHEET USING 2013 DATA  2  Project and Purchases  Federal Grants State Grants Local Grants Town Funds Tax/Other Revenue  InitiativesOther Sources TBD Grand Total   Special Revenue General Fund Enterprise Internal Service HUTF‐Permit‐Fees/ R&B Open Space/Conservation Trust COP Bonds CRF   In Thousands of DollarsL & P 13‐14 Underground Conductor   $150    Subtotal    $1,863   $1,863 Water Water 13‐01 Big Horn Drive   $178    Water 13‐02 UTSD/Capacity  Increase   $134    Water 13‐03 Auto Meter Reading Replacement   $135    Water 13‐04 System Master Plan   $65    Water 13‐05 Security Equipment   $8    Water 13‐06 SCADA equip and software   $46    Water 13‐07 Biomass Reader   $7    Water 13‐08 GPS data collection   $25    Subtotal    $552   $552 Information Technology I.T. 13‐01 Equipment   $45    I.T. 13‐02 Servers/Board Room   $10    I.T. 13‐03 Communication equipment   $125    Subtotal    $180   $180 Vehicle and Equipment Replacement EQ 13‐01 Bleachers     $40   EQ13‐02 Fencing Birch Ruins    $18   VEH13‐01 Replace Grader   $130    VEH13‐02 Replace Heavy Equipment   $120    VEH13‐03 Replace Heavy Equip 4X4   $135    Subtotal    $385 $58  $443  Grand Total  $3,328 $30 $2,631$385$339$255$6,000 $3,291 $700 $16,959     EXAMPLE CIP PROJECT SHEETProposed Projects Project StartedProject Completed Fund SourceCapital Improvement Projects2012 Expenditures 2013 Proposed 2014 Proposed2015 Proposed 2016 Proposed2017 Proposed2018 Proposed 2019 Proposed2020 Proposed Proposed TotalsApproved TotalsCompleted Totals Fund SourceFacilitiesPD Remodel$140,000$140,000 CRFCVB Building Strcutural Repairs$50,000$50,000 CRFMuseum Master Plan$80,000$80,000 CRFMPEC $40,000$40,000 CRFRemodel Public Works/Utilities$100,000$100,000ENTERPRISE/CRFMuseum Storage Facility$200,000$200,000 CRFCVB Remodel $250,000250,000CRFConference Center Improvements$250,000250,000CRFTransportationTransportation HUB $147,985$147,985 CRFMoraine Ave Streetscape$278,650$278,650 Grant/CRFNEPA study$197,932$197,932 Grant/CRFCVB Parking Structure$40,000 $4,460,000$4,500,000 Grants/CRFPerformance Park Overlay$20,000$20,000 STIPStanley Ave./MacGregor Ave, Virginia Dr/Park Lane$1,200,102$1,200,102ENTERPISE/CRFRiverwalk (Park Theater River Bank Improvements)$540,000$540,000 CRF(Cleave Street Collector)$512,000$512,000 Riverside Collector)$626,100$626,100(Dry Gulch Road Collector)$1,316,000$1,316,000(Brodie Ave Collector)$461,000 $461,000(Community Drive Collector)$557,500 $557,500(Stanley Ave Collector)$179,000$179,000(MacGregor Ave Collector, Park Lane and Virginia Drive )$192,000$192,000(Fir Avenue Replacement) coordinated project with water$70,000(Elm Avenue Replacement) coordinated project with water$142,000(Driftwood Replacement) coordinated project with water$35,600 $35,600(Columbine Replacement) coordinated project with water$80,500 $80,500(Birch Avenue Replacement) coordinated project with water$162,100 $162,100Capital Improvement Projects2012 Expenditures 2013 Requests 2014 2015 2016 2017 2018 2019 2020 Proposed TotalsApproved TotalsCompleted Totals Fund Source EXAMPLE CIP PROJECT SHEETTransportation(Aspen Avenue Replacement) coordinated project with water$287,000 $287,000 TBD(1st Street Replacement) coordinated project with water$162,100 $162,100 TBD(2nd Street Replacement) coordinated project with water$287,000 $287,000 TBD(3rd Street Replacement) coordinated project with water$88,700 $88,700 TBD(4th Street Replacement) coordinated project with water$125,300 $125,300 TBD(5th Street Replacement) coordinated project with water$161,400 $161,400 TBD(South Court Replacement) coordinated project with water$220,200 $220,200 TBD(North Court Replacement) coordinated project with water$107,700 $107,700 TBD(Annual Street Improvement Program) $88,700 $88,700 $177,400 CRFParks and TrailsBond Park Phases I ‐ V$511,335 $405,784 $348,560$1,265,679Open Space/CRFWeist Retaing Wall$69,500$69,500 CRFStanley Fairgrounds Sewer  Line$250,000GRANT/CRFBleacher replacement$42,000$42,000 CRFBirch Ruins Fencing$18,000$18,000 CRFLandscaping irrigation system  HUB $150,000$150,000 CRFKiowa Ridge Openspace$10,000$10,000 CRFKiowa Ridge Water Storage Parcel$40,000$40,000 ENTERPRISEStorm Drainage Elm Road Mitigation Efforts$110,000 $175,000 $252,083 $252,083 $252,083 $252,083 $1,183,332 $110,000 CRFWaterHydro Electric Power Grant Olympus dam$425,000$425,000 EnterpriseMLWTP 3rd stage treatmentEnterpriseBig Horn drive water replacement$12,000$12,000 EnterpriseVirginia Drive and Park Lane water main replacement$271,726$271,726 EnterpriseStanley Circle Drive water main replacement $197,184$197,184 EnterpriseBOR infratsructure replacement phase I$396,927$396,927 EnterpriseBOR infratsructure replacement phase II$396,927 $396,927 EnterpriseBOR infratsructure replacement phase III$204,127 $204,127 EnterpriseBOR infratsructure replacement phase IV$300,527 $300,527 EnterpriseBOR infratsructure replacement phase V$288,477 $288,477 EnterpriseBOR infratsructure replacement phase VI$228,227 $228,227 EnterprisePanorama Circle Drive water main replacement$459,680 $459,680 Enterprise EXAMPLE CIP PROJECT SHEETHill Streets replacement phase II$229,970 $229,970 EnterpriseSpruce drive water main replacement$268,320$268,320 EnterprisePark View and cyteworth water main replacement$574,080 $574,080 EnterpriseThunder Mountain pump house expansion$292,500 $292,500 EnterpriseProspect Mountain pressure reducing valve$250,000$250,000 Enterprise$4,370,672 EnterpriseLight and PowerEnterpriseL&P Shop Roof Replacement$75,000$75,000 EnterpriseCovert Moraine Circuit to underground $755,000$755,000 EnterpriseConvert South Line to underground$408,000 $408,000 EnterpriseRebuild/Upgrade Fall River circuit$743,000 $743,000 EnterpriseRebuild/Upgrade Allenspark phase I$688,000$688,000 EnterpriseRebuild/Upgrade Allenspark phase II$688,000$688,000 EnterpriseRebuild/Upgrade Allenspark phase III$403,000$403,000 EnterpriseRebuild/Upgrade Big Thompson Circuit$209,500 $209,500 Enterprisenew underground loop feed moraine circuit$290,000 $290,000 EnterpriseLine rebuild/Upgrade Beaver Point circuit$688,000 $688,000 EnterpriseLine rebuild/upgrade Mall Rd circuit$403,000 $403,000 EnterpriseI.T.Vehicle & EquipmentSpecial Projects