081820-Planning-Session-Packet

CITY OF THORNTON CITY MANAGER’S OFFICE

REVISED

A G E N D A Planning Session https://thorntonco.zoom.us/j/91815538099 August 18, 2020 5:45 p.m.

I. CALL TO ORDER, REVIEW OF AGENDA, AND STAFF COMMENTS

II. BRIEFINGS

A. COVID-19 Update (Estimated 30 Minutes)

B. Presentation by Commissioner Tedesco and Tim Stewart Regarding E-470 (Estimated 30 Minutes)

C. Recommendation of Art Piece Concept for the N Line 124th Station within Thornton (Estimated 10 Minutes)

D. Presentation of the Draft 2020-2024 Consolidated Plan and 2020 Annual Action Plan for Community Development Block Grant Funding (Estimated 15 Minutes)

E. Naturally Thornton: A Plan for Sustainable City Landscapes (Estimated 30 Minutes)

F. Review of Analysis of Retiree Health Care Benefit Before Medicare Eligibility (Estimated 30 Minutes)

III. OPEN DISCUSSION

8/17/20 PLANNING SESSION COMMUNICATION Meeting Date: Agenda Item: Agenda Location: Goal(s): Legal Review: st 1 Reading August 18, 2020 A N/A N/A 2nd Reading

Subject: COVID-19 Update

Recommended by: Kevin S. Woods KW Approved by: Kevin S. Woods KW Ordinance previously introduced by: Presenter(s): Kevin Woods, City Manager

SYNOPSIS:

Staff will provide City Council with updates on the COVID-19 pandemic.

RECOMMENDATION:

This item is for informational purposes only.

BUDGET/STAFF IMPLICATIONS:

None.

ALTERNATIVES:

This item is for informational purposes only.

BACKGROUND (ANALYSIS/NEXT STEPS/HISTORY): (includes previous City Council action)

Incident Overview

• Case & Hospital Data • Face Covering Executive Order Extended Authorized Spent To Committed, Remaining Council Authorized Covid-19 Funding Status Update Funds Date Not Spent Funds

CARES Act Funding ($11.2M)

1. Emergency Business Grant (EBG) $1,141,400 $1,120,697 $20,703 $- Grant program has ended. 152 applications approved and 44 denied

2. Thornton CARES Business Grant 1,000,000 500,000 500,000 22 applications approved, 30 under evaluation, 1 unqualified - 3. Regional Retail and Entertainment Grant 500,000 150,145 140,000 209,855 14 applications approved, 4 under evaluation, 1 unqualified

4. Thornton Business Assistance Center 1,000,000 9,000 664,297 326,703 Renovations ongoing, anticipated opening early September

5. Keeping Thornton Safe Grant 500,000 - 500,000 Finalizing grant details, should launch by end of this week - 6. Covid-19 Food Support 519,576 519,576 - - Markets/shopping continue, revamped Meals on Wheels menu

7. Covid-19 Housing Support 150,000 50,000 100,000 - Two families served so far

8. Covid-19 Mental Health Support 440,357 440,357 - - Starting to purchase technology and see clients

9. Covid-19 Bill Assistance 110,486 110,486 - - Assistance line went live last week

10. Covid-19 Testing 600,000 36,612 190,255 373,133 Weekly testing ongoing, averaging 100-200 tests per event

11. Hazard Pay 212,750 212,750 - - Payments issued in June/July

Total Authorized CARES Act Funding $6,174,569 $2,649,622 $1,615,255 $1,909,692

Pending CARES Act Funding ~$1,000,000

Remaining CARES Act Funding $4,030,732 Teacher / Schools Grant Program

• All districts have received CARES funds that were utilized for a variety of expenses – PPE, cleaning supplies – Software and other – Overtime, stipends remote learning supplies – Signage, barriers – Other technology • Inquiries indicate wide variety of other COVID- related needs still pending – Overall need for supplies for teachers and students due to new learning environments – Otherwise no consistency in requests across districts Teacher & Student Data Teachers living in Thornton Teachers Thornton Students Schools Mapleton 239 -- 3,825 9

Adams 12 1,000 -- 17,346 26

27J 150 -- 2,407 4

Adams 14 -- 41 695 0

Pinnacle -- 36 832 1*

TOTAL 1,389+ 77+ 25,105 40

* Partially located in Thornton and partially in Federal Heights -- Indicates data not provided by district CARES Funding Received

CARES Act Funds Mapleton $6.9M Adams 12 $25M 27J $12.9M Adams 14 $8.3M Pinnacle $1.5M TOTAL $54.6M Option #1: School & Teacher Supplies

Provide lump sum funding to each district designated for school & teacher supplies – Prorated per district based on student numbers • Approximately 25,000 total Thornton students – Total cost depends on per student amount • $5/student = $125,000 • $10/student = $250,000 • $20/student = $500,000 – District responsible for spending appropriately and maintaining required records Option #2: COVID-19 Misc. Expenses

Provide lump sum funding to each district with no designation on how money is used – Prorated per district based on Thornton student numbers (same as Option #1) – District responsible for spending appropriately and maintaining required records • Internet access • PPE & related • Teacher, student • Learning pods supplies • Other COVID-19 • Tech vans related expenses PLANNING SESSION COMMUNICATION Meeting Date: Agenda Item: Agenda Location: Goal(s): Legal Review: ___ 1st Reading August 18, 2020 B N/A N/A ___ 2nd Reading

Subject: Presentation by Commissioner Tedesco and Tim Stewart Regarding E-470

Recommended by: Jeff Coder JBC Approved by: Kevin S. Woods KW Ordinance previously introduced by: Presenter(s): Jeff Coder, Deputy City Manager of City Development

Kent Moorman, Regional Transportation Engineer ______Charles “Chaz” Tedesco, Chair E-470, Adams County Commissioner Tim Stewart, E-470 Executive Director

SYNOPSIS:

E-470 Board Chair Charles Tedesco and Executive Director Tim Stewart will present general information on E-470 and update Council on traffic trends, finances, current and future initiatives, Master Plan, projects policy, and future projects.

RECOMMENDATION:

For information purposes only.

BUDGET/STAFF IMPLICATIONS:

None.

ALTERNATIVES:

For information purposes only.

BACKGROUND (ANALYSIS/NEXT STEPS/HISTORY): (includes previous City Council action)

General E-470 Presentation

• E-470 is a toll highway that runs along the eastern perimeter of the Denver metropolitan area. The 75-mph highway extends 47 miles from State Highway C-470 at I-25 in Douglas County, to I-25 near 160th Avenue in the City. The highway travels through three counties and six municipalities. • E-470’s design accommodates future widening and to allow for the addition of continuous multi- use recreation paths and future median mass transit and/or high occupancy vehicle facilities. • E-470 is a major route to Denver International Airport. • E-470’s first segment opened on June 1, 1991 and the final segment (through the City) opened on January 3, 2003. • E-470 relies primarily on toll revenues, as well as vehicle registration fees, investment income, and other non-toll revenues. E-470 operates without State or Federal funding or taxes. PLANNING SESSION COMMUNICATION PAGE 2

• The E-470 Public Highway Authority (Authority) is a political subdivision of the State of Colorado established on January 13, 1988 through a contract entered into by Adams, Arapahoe, and Douglas counties. • The following five municipalities were admitted as members: o City of Aurora, admitted March 2, 1988 o Town of Parker, admitted July 14, 1989 o City of Thornton, admitted August 30, 1990 o City of Brighton, admitted May 3, 1991 o City of Commerce City, admitted January 12, 1995 • The current Board of Directors (voting) are: o Adams County ...... Commissioner Chaz Tedesco, Chair o Douglas County ...... Commissioner Roger Partridge, Vice Chair o Town of Parker ...... Council Member John Diak, Secretary o City of Aurora ...... Council Member Françoise Bergan, Treasurer o Arapahoe County ...... Commissioner Bill Holen o City of Brighton ...... Mayor Pro Tem Matt Johnston o Commerce City ...... Council Member Craig Hurst o City of Thornton…………………………………………....Mayor Pro Tem Jessica Sandgren

• The Authority also has affiliate members. Although they have no voting powers as affiliate members, each is represented on the board by an elected official: o Weld County o City and County of Broomfield o City of Arvada o City of Greeley o City of Lone Tree o Colorado Department of Transportation o Denver Regional Council of Governments o Regional Transportation District

E-470 in Your Community 2020 Update Background

. 47-mile all-electronic toll road

. 8 member jurisdictions

. 1991 – Opened first segment (south)

. 2003 – Opened last segment (north)

. 2009 – Conversion to all electronic tolling

. User-financed: NOT TAX FUNDED

. $1.4 billion in bond debt

. Annual debt payments over $100 million

. Scheduled to be paid off in 2041 Background

. Political subdivision of the State . Governed by PHA law and Board of Directors • 8 Voting Members • 8 Non-Voting Members • Adams County • Arvada • Arapahoe County • Broomfield • Douglas County • CDOT • Aurora • DRCOG • Brighton • Greeley • Commerce City • Lone Tree • Parker • RTD • Thornton • Weld County Traffic Trends 2012-Present

E-470 Monthly Transactions

9,250

8,750

8,250

7,750

7,250

6,750

6,250

5,750

5,250 Thousands 4,750

4,250

3,750

3,250

2,750

2,250

1,750 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Ratings Update

Year S&P Moody’s Fitch

2007 BBB- Baa2 BBB-

2013 BBB Baa2 BBB-

2015 BBB+ Baa1 BBB

2016 BBB+ A3 BBB

2017 A- A3 BBB+

2018 A A2 BBB+

2019 A A2 A

2020 A A2 N/A

Note: Does not reflect ratings with previous insurance; only years with ratings change shown above and changes in purple. * Fitch did not rate the 2020 bonds or underlying credit of the Authority 2020 Bond Deal

. 6/18/20 - Sold/restructured ~$250 M of callable bonds • Achieved $129 million cash flow savings • Achieved $79 million net present value savings . Reduced interest cost from ~5.25% to 2.8% . 2020 bonds and underlying ratings • Standard and Poor’s – reaffirmed “A” • Moody’s – reaffirmed “A2” . Investor Orders of 2020 Bonds - more than $4.4 billion in orders – 26x oversubscribed • Indication of strong financial metrics, planning and management of E- 470 . Lowered and leveled the future debt profile for considerable future . Still have flexibility and call dates to continue program . Approved updated debt policy which includes: • No new debt issuances that increase total debt • Do not extend debt past the current maturity (September 2041) • Build reserves to pay off debt early/refund callable debt for savings Debt Profile Comparison

$140,000,000 New Debt Structure - Post 2020 Bond Deal Debt Structure - Pre-2020 Bond Deal

$120,000,000

$100,000,000

$80,000,000

$60,000,000

$40,000,000

$20,000,000

$0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 Where Does $1 of Toll Revenue Go?

$1.00 $0.05 $0.90 Addition to Unrestricted Funds $0.80 $0.33 for Future Programs $0.70

$0.60 Capital and Renewal and Replacement Expenditures $0.50 $0.22

$0.40 Operating and Maintenance Expenditures $0.30

$0.20 $0.40 Debt Service Payments $0.10

$- $1 of Toll Revenue Current and Future Initiatives

. 2017 – Removed Highway Expansion Fees . 2018 – Removed Vehicle Registration Fees from Counties . 2018 – Reduced Toll Plaza C Toll Rate (DIA) . 2018-2021 – Frozen Toll Rates for ExpressToll customers . 2018 – Completed Master Capital Plan . 2019 – Adopted Strategic Plan . 2019 – Evaluation of toll rate restructure for 2020 (including commercial vehicles) . 2020 – Level debt service in 2020 (plan since 2004); 2021 toll rate freeze at 2018 rates . Goal to fund current and long-term capital needs without issuing new debt . Discussing/reviewing future toll rate reductions past 2021 Master Plan

. Level of Service Study • Roadway widening • Interchange improvements and additions . Continued maintenance improvements • Paving, lighting, signing, safety devices, etc. . Accommodate growth and improve safety . Implement mobility solutions . Identified ~$1.7 billion in capital, infrastructure, and improvements between 2018-2040 . Ongoing evaluation of cost estimates and timing for Master Plan projects (last updated in July 2020) 2040 Traffic Projections 38,200 vehicles per day today 62,500 vehicles per day in 2040

~60,000 in 2040 Key Takeaways: • E-470 traffic almost doubles between now and 2040 • In 2040, north end will be as busy as south end is today • Employment in E-470 area forecast to grow by 48% in next 20 years compared to 40% in Denver metro area • Population in E-470 area forecast to grow by 47% in next 20 years compared to 37% in Denver metro area

~100,000 in 2040

56,200 vehicles per day today 102,200 vehicles per day in 2040 Quincy to I-70 Widening

• Quincy Avenue to I-70 ( ~8 miles) • $99 million self-funded project • Adding lanes and widening bridges (6 lanes); grading for 8 lanes • Quincy ramp/Gun Club intersection improvements • 6 mile extension of High Plains Trail Projects Policy

. Prioritizes projects brought to the E-470 Board • Priority 1: E-470 projects included in Master Plan • Priority 2: E-470 projects not yet included in Master Plan • Priority 3: Other public projects • Physically connected to E-470 • Improve safety and/or increase toll revenue • Priority 4: Other public projects • Physically connected to E-470 • Of significant regional benefit • Priority 5: Other public projects not classified in Priority 4 . All projects follow established approval process E-470 as a Regional Partner

. Stephen D. Hogan Parkway – City of Aurora

. 38th Avenue Interchange - ARTA

. Quincy Interchange – Aurora and Arapahoe County

. Quebec Interchange – City of Thornton

. Tower Road Ramps – Commerce City

. Chambers Interchange – Douglas County

. Recreational Trails – Town of Parker and ACOS

. Electrical Charging – RAQC

. Future Intersection Signals – Master Plan UNINCORPORAT ED ADAMS E. 160th Ave. COUNTY Colo. Blvd. Signals (2029) York St. Holly St. Holly Quebec St.

CITY OF Quebec St. York St. Signals THORNTON Interchange Signals (2029) and Expansion (2025)

E. 144th Ave. Wash. St.

City of Thornton/E-470 Partnerships Toll Plaza Redevelopment • 1996 IGA – City provides financial assistance for (TBD) E-470 construction • 2005, 2008 and 2013 Annexations: ~ 6 miles E-470 now lie within Thornton City limits • IGA – City provides fire and emergency response E-470 Capital services on E-470 • 2011 IGA – Harmoush Regional Detention Pond Projects in the • 2002 IGA – Operation and maintenance at Interchanges City of Thornton • 2014 – Quebec Interchange opened Average Customer Location

Denver Metro Density Map Transponder by City (ExpressToll Customers) (Top 30 cities in Colorado) Total for COLORADO 1,657,633 DENVER 198,564 AURORA 151,234 COLORADO SPRINGS 106,045 LITTLETON 95483 PARKER 84,327 FORT COLLINS 78,641 BOULDER 62,181 LONGMONT 56,255 BROOMFIELD 49,926 CASTLE ROCK 49,130 CENTENNIAL 39,089 BRIGHTON 36,426 LOVELAND 36,159 THORNTON 35,680 ENGLEWOOD 34,256 ARVADA 33,765 HIGHLANDS RANCH 30,427 WESTMINSTER 26,939 GREELEY 23,811 ERIE 20,665 COMMERCE CITY 20,341 LAFAYETTE 17,742 LOUISVILLE 16,053 WINDSOR 16,041 GOLDEN 15,870 LAKEWOOD 14,093 MONUMENT 13,233 ELIZABETH 11,961 LONE TREE 10,508 PUEBLO 9,016 Thornton Density Map

Number of Transponders in Thornton: 36,680 Economic Impact in Region

. 2016 study to document the multiple facets of economic impact that E-470’s mobility contributes to the region . Study updated in 2020 to show that in 2019: Economic Impact in Thornton E-470 as a Regional Partner

. Commitment to Safety

• Wrong-way driver prevention

• Cable barrier to prevent crossover

. Protecting Wildlife

• Deer fence installation

. Improving Air Quality

. Solar Investment Questions? Contact Information

. Chaz Tedesco | Adams County Commissioner and E-470 Board Chair • [email protected] . Tim Stewart | E-470 Executive Director • 303-537-3745 • [email protected]

E-470.com | ExpressToll.com PLANNING SESSION COMMUNICATION Meeting Date: Agenda Item: Agenda Location: Goal(s): Legal Review: st 1 Reading August 18, 2020 C N/A N/A 2nd Reading Subject: Review of Additional Art Piece Concepts for the N Line 124th Station within Thornton

Recommended by: Seve Ghose SG Approved by: Kevin S. Woods KW Ordinance previously introduced by: Presenter(s): Deno Kalomos, TASHCO Public Art Subcommittee Member

Alisa Zimmerman, Arts and Culture Manager Jesse Jimenez, Arts and Culture Coordinator

SYNOPSIS:

At the August 11 Council Update, Thornton Arts, Sciences and Humanities Council (TASHCO) and staff presented public art recommendations for the Regional Transportation District (RTD) North Metro Line (N Line) station at 124th Avenue in Thornton. Council reviewed four proposed designs provided by the finalist, May & Watkins Design Studio, and asked TASHCO and staff to return on August 18 with the design concepts submitted by the 2nd and 3rd artist finalists for the 124th Avenue station.

At the August 11 Update, Council also asked staff to contact RTD to request an extension of the December 31, 2020 deadline to install art. On August 12, RTD responded by email, agreeing to amend the Intergovernmental Agreement (IGA) to extend the deadline for art piece installation at the 124th N Line station. It is the City’s intention to meet the obligations of the amended RTD IGA and install artwork at all three stations, with both parties using their best efforts to complete the art piece installations as planned.

Today’s request is to review other design concepts of prefabricated, large-scale public art pieces for the N Line station located on 124th Avenue as envisioned by the 2nd and 3rd artist finalists, Sandy Friedman and Daniel Hornung, and provide TASHCO and staff direction on what concepts to pursue. The chosen public art pieces will have strong visual impact, serve as focal points for the Eastlake station, and meet RTD’s amended schedule for installation. The purchased artwork will touch on the station’s overall theme of Historic Eastlake through contemporary artistic concepts and activate the physical space on the west side of 124th Avenue station. This public art, along with new installations at the 88th Avenue and 104th Avenue N Line stations, will position the City as a public art destination.

RECOMMENDATION:

Staff recommends Alternative No. 2, do not approve the 2nd or 3rd finalist’s art piece concept(s) for the 124th Avenue N Line station, within the City’s boundaries.

BUDGET/STAFF IMPLICATIONS:

The total amount of funds for the public art pieces recommended at the 124th Avenue station, within the City’s boundaries, is $40,000 with RTD contributing $40,000 and the City contributing $0.

ALTERNATIVES:

1. Approve the 2nd or 3rd finalist’s art piece concept(s) for the 124th Avenue N Line station, within the City’s boundaries. PLANNING SESSION COMMUNICATION PAGE 2

2. Do not approve the 2nd and 3rd finalist’s art piece concepts for the 124th Avenue N Line station, within the City’s boundaries.

BACKGROUND (ANALYSIS/NEXT STEPS/HISTORY): (includes previous City Council action)

The N Line will extend from Denver Union Station to the interim end-of-line station in the City, Eastlake at 124th Avenue. The N Line is expected to commence service in September 2020 with all artwork scheduled to be installed by December 31, 2020, per RTD funding requirements. Each of the three stations located in the City (Original Thornton at 88th Avenue, Thornton Crossroads at 104th Avenue, and Eastlake at 124th Avenue) have designated outdoor areas for installation of the art pieces and art wraps. The $191,500 budget for art pieces and art wraps was approved by Council on April 28, 2020. To meet RTD’s December 31, 2020 installation deadline, staff recommended utilizing art work and designs that were ready for purchase (as is) and met the scope of the project. Special consideration was given to artists who could fabricate design pieces in-house including modifications, have ready access to necessary materials, and could meet the project deadline as dictated by RTD. The process to identify ready-made art pieces included a nationwide call for artists on callforentry.org (CAFÉ) with preference given to those with a proven history of large-scale fabrication and installation. Submissions were due May 13, 2020, with 188 CAFÉ applications received of which 38 applicants (20%) were from Colorado. Online reviewing and scoring of 2,445 images and 66 videos were completed by the RTD art review panel from May 14-23. Applicants were scored based on their overall body of work, skill, creativity, and ability to meet the scope of the projects.

Three finalists were selected whose art pieces and concept recommendations received the highest scores. These submissions were presented to the TASHCO on June 8 who approved their recommendation to Council. Council reviewed these recommended concepts at the July 28 Council update and approved the first two concepts listed below. Staff returned on August 11 with additional design concepts from May & Watkins which were not approved.

1. The 88th Avenue station roundabout/bus loop art piece: C.J. Rench Design Studio of Hood River, Oregon, sculpture design entitled “Bloom.” 2. The 104th Avenue station retaining wall art piece: May & Watkins Design Studio of Brooklyn, New York, colorful, kinetic, relief design centered on connectivity. 3. For the 124th Avenue station’s two planter squares, three finalists’ concepts have been presented: May & Watkins Design Studio mosaic animal statues; Sandy Friedman’s steel block statues; and Daniel Hornung’s metal-cut animal statues.

The TASHCO Public Art Subcommittee adopted a new art review process for this project, engaging volunteer community stakeholders and incorporating guidelines supporting transparency, inclusion, and diversity. The RTD art review panel consisted of the following:

Name Ward City Connection Frank Newton Ward 1 TASHCO Member Deno Kalomas Ward 2 TASHCO Member Mary Payne Ward 3 TASHCO Member Stephanie Ortiz Ward 4 TASHCO Member Wanda Marshall Ward 1 Artform Stakeholder Chris Williams Ward 2 Public Stakeholder Jill Thornburg Ward 3 Artform Stakeholder PLANNING SESSION COMMUNICATION PAGE 3

Gina Garcia Ward 4 Community Stakeholder Caleb Flack N/A RTD Project Coordinator Svetlana Grechka N/A RTD Deputy Project Manager

RTD IGA Additional Art Piece Concepts for the 124th Avenue N Line Station

TASHCO requests Council review of additional art piece concepts and direction on whether to pursue final concept images per these examples. 124th Avenue Station-Eastlake Location Review Working Area: • Two planters • 35 feet by 45 feet each; landscaped

• Landscaped • On west side of station next to parking lot and bus loop RTD Art Review Process

Overview: • $40,000 project budget totally funded by RTD • This call for art received 47 applicants; 15 or 32% were Colorado-based artists. • With the smallest art piece budget of all three Thornton stations, this call did not generate a large pool of qualified artists whose conceptual designs aligned with the subcommittee's mission statement or project standards. RTD Art Review Panel Scoring Each applicant was scored on their overall body of work, skill, creativity, and ability to meet the scope of the project. Score Breakdown

Ranking Artist Home Base Yes No Maybe First May & Brooklyn, NY 50% 0% 50% Watkins Designs Second Sandy Colorado 50% 12% 38% Friedman Springs, CO Third Daniel Tucson, AZ 50% 25% 25% Hornung 2nd Finalist: Sandy Friedman

• Based in Colorado Springs, CO. • Primarily works in steel. • The panel felt Friedman’s work was not exciting in terms of design and material. • The proposed pieces did very little to activate the space or engage viewers about Eastlake’s unique and historic character. • Friedman also presented work installed in other cities. Title: WARNING: Life Changes Price: $4,800 Additional Examples: Friedman

Title: We Are All in This Together Title: Passage to Kindness, Courage… Price: $12,600 Price: $10,300 3rd Finalist: Daniel Hornung

• Based in Tucson, AZ. • Primarily works in steel, bronze and aluminum. • The panel felt Hornung’s work, although whimsical, was similar to other statuary already in the City’s public art collection. • The panel felt the work would not be grounded in the space and would look as if it were simply “dropped” in the area; not unique. Title: Mama Bear Price: $14,000 Additional Examples: Hornung

Title: Yellow Jacket Title: Running Man Price: $6,000 Price: $8,900 PLANNING SESSION COMMUNICATION Meeting Date: Agenda Item: Agenda Location: Goal(s): Legal Review: ___ 1st Reading August 18, 2020 D N/A N/A ___ 2nd Reading

Subject: Presentation of the Draft 2020-2024 Consolidated Plan and 2020 Annual Action Plan for Community Development Block Grant Funding

Recommended by: Seve Ghose SG Approved by: Kevin S. Woods KW Ordinance previously introduced by: Presenter(s): Jaylin Stotler, Community Connections Manager ______Adam Lyons, Grant and Housing Supervisor

SYNOPSIS:

Staff will present to Council a draft of the 2020-2024 Consolidated Plan, which includes the 2020 Annual Action Plan (AAP) for the use of Community Development Block Grants (CDBG). The Consolidated Plan is the City’s five-year strategic plan for the use of CDBG funds and outlines the priority needs and goals for this five-year period. The AAP outlines the projects and activities the City will undertake in the first year of the plan to address the priority needs and meet the goals of the Consolidated Plan. The US Department of Housing and Urban Development (HUD) has allocated $786,244, to the City, in CDBG funds for 2020. At the conclusion of the 30-day public comment period and Public Hearing, staff will submit the Consolidated Plan and AAP to HUD.

RECOMMENDATION:

Staff recommends Alternative No. 1, to submit the Consolidated Plan and AAP to the Public Hearing as written.

BUDGET/STAFF IMPLICATIONS:

The City will receive $786,244 of 2020 CDBG funds. Up to $20,000 of the total amount will be used for administration of the grant, which includes cost of ensuring compliance with the regulations, staff training, processing required grant paperwork, and creating reports. The remaining amount will fund projects.

ALTERNATIVES:

1. Submit the draft 2020-2024 Consolidated Plan and 2020 AAP to the Public Hearing as written. 2. Make changes to the Priority Needs and Goals of the Consolidated Plan prior to the Public Hearing. 3. Make changes to the proposed projects and activities included in the AAP, including changes to the levels of funding, prior to the Public Hearing. 4. Make changes to both the Priority Needs, Goals, and projects/activities prior to the Public Hearing.

BACKGROUND (ANALYSIS/NEXT STEPS/HISTORY): (includes previous City Council action)

CDBG funds are Federal funds from HUD. The City has used CDBG funds in Thornton since 1983. In March 2010, the City became its own entitlement community, allowing it to receive grant funds directly from HUD. Projects funded through CDBG must meet one or more of the national objectives to benefit low- and moderate-income persons; aid in the prevention or elimination of slum and blight; or meet urgent community needs. PLANNING SESSION COMMUNICATION PAGE 2

Staff notified nonprofit organizations providing public services about the opportunity to apply for CDBG funding and discussed potential projects with staff in the Infrastructure and City Development departments. All applications and project ideas were evaluated to determine if the projects were eligible activities per the Code of Federal Regulations (CFR) and met a national objective of the program.

The projects that the City proposes to fund with 2020 CDBG are described in the AAP. HUD requires entitlement jurisdictions to submit a Consolidated Plan every five years and an AAP each year prior to receiving the CDBG funding (24 CFR § 91.15) and to hold a 30-day comment period followed by a public hearing to obtain the views of citizens on the proposed Plans and use of grant funding (24 CFR § 570.431). The public comment period for the AAP runs July 23, 2020 to August 24, 2020. The Public Hearing on the Consolidated Plan and AAP is scheduled for August 25, 2020.

The projects proposed in the 2020 AAP include:

Administration: $20,000 • Cost of ensuring compliance with the regulations, staff training, processing required grant paperwork, and creating reports. Housing Improvement Programs: $100,000 • Continuation of the Help for Homes minor home repair program. Public Facility Improvements: $530,344 • Infrastructure improvement is support of affordable housing. • Accessibility improvements at City facilities, including sidewalk installation/upgrades. Public Services: $135,900 • Continuation of the City’s homelessness prevention programs in partnership with Maiker Housing Partners and Almost Home. • Domestic violence prevention program in partnership with Intervention, Inc. 2020-2024 Consolidated Plan and 2020 Annual Action Plan

1 2020-2024 Consolidated Plan and 2020 Annual Action Plan

Purpose: Provide an overview of the draft 2020-2024 Consolidated Plan and 2020 Annual Action Plan (AAP) for the use of Community Development Block Grants (CDBG).

Agenda: • Provide Overview of Consolidated Plan Process • Introduce 2020-2024 Priority Needs and Goals • Review Proposed Projects in Draft 2020 AAP • Questions and Direction from Council

2 CDBG Eligible Areas

3 2020-2024 Consolidated Plan

The Consolidated Plan is the City’s five-year strategic plan that identifies housing and community development needs such as affordable housing, public facilities and infrastructure, and public services, and sets priority needs and goals for the City to address through use of CDBG funds.

Public Participation is a important aspect in the development of the Consolidated Plan. • Housing Needs Assessment • Activity at Harvest Fest • County-wide resident needs survey • 30-day public comment period • Public Hearing

4 2020-2024 Consolidated Plan

Priority needs identified in the draft plan: • Affordable housing • Non-housing community development • Homelessness services • Non-homeless special needs • Affirmatively Further Fair Housing Choice Goals set to meet the priority needs: • Improve existing owner occupied units • Provide improvements to public facilities • Provide homeless prevention and supportive services • Increase and retain affordable housing units • Expand home ownership opportunities • Provide increased public services

5 2020 Annual Action Plan

The AAP outlines how the City will address the priority needs and meet the goals of the Consolidated Plan during the 2020 program year. At the conclusion of each program year, which runs from July to June, staff presents the program accomplishments in the Consolidated Annual Performance and Evaluation Report (CAPER).

In 2020, the City will receive $786,244 in CBDG funds.

6 2020 Annual Action Plan

Projects included the in the draft AAP:

Administration: ~$20,000

Housing Improvements: ~$100,000

• Continuation of the Help for Homes program that provides grant-funded repairs to low and moderate-income home owners. • Priority Need: Affordable housing • Goal: Improve Existing Owner Occupied Units.

7 2020 Annual Action Plan

Public Facilities: ~$530,344

• ~$200,000. Phase Two of the Crossing Pointe development by Maiker Housing Partners. CDBG funding is proposed to offset infrastructure costs in order to develop 142 units of affordable housing. • Priority Need: Affordable Housing • Goal: Increase and Retain Affordable Units

• ~$330,344. Accessibility Improvements. CDBG funding is proposed to fund accessibility improvements at public facilities and to sidewalks. • Priority Need: Non-Housing Community Development • Goal: Provide Improvements to Public Facilities

8 2020 Annual Action Plan

Public Service Programs: ~$135,900

• ~$130,000. Continuation of the City’s Homelessness prevention programs in partnership with Maiker Housing Partners (~$55,000) and Almost Home(~$75,000). • Priority Need: Homelessness Services • Goal: Provide Homelessness Prevention and Supportive Services

• ~5,900. Domestic violence prevention program in partnership with Intervention, Inc. • Priority Need: Non-homeless Special Needs • Goal: Provide Increased Public Services

9 2020 Annual Action Plan

Activity Purpose Amount

Administration Cost of ensuring compliance with the regulations, staff training, $20,000 processing required grant paperwork, and creating reports.

Help for Homes Continuation of the Help for Homes minor home repair program. $100,000

Crossing Pointe South Infrastructure improvement in support of affordable housing. $200,000

Accessibility Accessibility and Americans with Disabilities Act improvements at $330,344 Improvements City facilities, including sidewalk installation/upgrades.

Homeless Prevention Continuation of the City’s homelessness prevention programs in $55,000 partnership with Maiker Housing Partners.

Homeless Prevention Continuation of the City’s homelessness prevention programs in $75,000 partnership with Almost Home.

Domestic Violence Domestic violence prevention program in partnership with $5,900 Prevention Intervention, Inc.

Total $786,244

10 Questions and Direction

Questions?

Direction

Present the Draft 2020-2024 Consolidated Plan and 2020 AAP at the August 25 Public Hearing

Make changes to the priority needs, goals, and proposed projects/activities prior to presenting at the August 25 Public Hearing.

11 PLANNING SESSION COMMUNICATION Meeting Date: Agenda Item: Agenda Location: Goal(s): Legal Review: st ___ 1 Reading August 18, 2020 E N/A N/A ___ 2nd Reading

Subject: Naturally Thornton: A Plan for Sustainable City Landscapes

Recommended by: Seve Ghose SG Approved by: Kevin S. Woods KW Ordinance previously introduced by: Presenter(s): Paul Burkholder, Superintendent of Parks, Golf, & Forestry

Emily Hunt, Deputy Infrastructure Director ______

SYNOPSIS:

Beginning in late summer of 2020, the City will begin implementing Naturally Thornton: A Plan for Sustainable City Landscapes (Plan). This multi-year Plan will reduce irrigation and traditional maintenance (mowing and fertilizing) on select passive turf areas throughout the City in order to gradually transition toward more sustainable and resilient public landscapes in Thornton. Active and high-use turf areas will not be impacted.

RECOMMENDATION:

For information only purposes only.

BUDGET/STAFF IMPLICATIONS:

• Reduction of approximately $350,000 per year in Parks’ expenditures because of reduced irrigation and maintenance (mowing and fertilizing). • Upon completion of the full Plan, reduction of approximately $1,000,000 per year in Parks’ expenditures for water. • Upon completion of the full Plan, a reduction of approximately $1,000,000 per year in water fund revenue due to reduced irrigation. • Increase of approximately $250,000 per year in Parks’ expenditures over ten years to transition the selected landscapes.

ALTERNATIVES:

For information purposes only.

BACKGROUND (ANALYSIS/NEXT STEPS/HISTORY): (includes previous City Council action)

The process to transition from high-water use turf to a Naturally Thornton landscape will take several years at each site. City-wide, the Naturally Thornton conversions will be phased over a series of years in order to manage resources. It is estimated that full conversion to a natural and sustainable landscape of all the currently identified locations will be completed in 10 years. The process for each site is as follows:

Year 1: Bluegrass is chemically removed and the area is quickly reseeded prior to September 1. Native/sustainable grasses will begin to grow within weeks (growth rate is dependent on grass type) and will progressively become denser moving into year two; PLANNING SESSION COMMUNICATION PAGE 2

Years 2 to 5: Monitor and manage weed growth; supplemental irrigation to establish native vegetation; overseed if necessary; Years 5 and beyond: Limited mowing, irrigation, and weed control as conditions require.

Naturally Thornton landscapes will reduce environmental impacts via reduced mowing, pesticide, and fertilizer applications. These landscapes will also improve habitat by attracting pollinators, birds of prey, and other wildlife.

A communication strategy has been developed to inform the public of the selective transition towards more sustainable landscapes. This strategy includes direct neighborhood outreach once a location has been selected for conversion, a web page with a map detailing the proposed plan for each park, social media posts, utility bill inserts, newsletter communications, and on-site signage. In addition, a demonstration of a transition to a Colorado-friendly landscape will be showcased so that residents can become familiar with the conversion process.

Irrigation of outdoor landscapes by the City, residents, and businesses comprises approximately 50 percent of the City’s annual water demand. The non-native turf grass that covers most City and private landscapes in Thornton requires almost four-times the amount of water that Thornton receives in natural rainfall. It takes an Olympic-sized swimming pool full of additional water to irrigate a single acre of turf grass each summer. Community Services is the City’s largest water customer, using an average of 445,000,000 gallons a year, to irrigate approximately 635 acres of City parks and other public spaces. This equates to approximately seven percent of the City’s annual water demand, and is the equivalent amount of water used by approximately 5,300 single-family households each year.

For over five years, the City has incentivized residential and commercial water customers to convert high water use turf to more resilient, Colorado-friendly landscapes. To date, over 63 Thornton customers have participated in these programs, converting over 30,000 square feet of turf to water- wise landscapes.

Colorado is experiencing continuing aridification, which is defined as the long-term transformation to an increasingly water-scarce environment. In addition, Colorado is prone to intermittent, mild to severe droughts. Efficient and prioritized use of water ensures that Thornton’s water system can withstand both the long-term stresses of aridification and intermittent droughts.

Water efficiency is a key component of the City’s water security strategy because it improves the resiliency of the City’s water system. Water efficiency strategies ensure that water use can be managed and prioritized to meet critical needs first, and allow for discretionary uses of water when conditions allow. In 2019, Council adopted the Drought Management Plan, which prioritized water uses for the purpose of water demand management in times of water shortage. The priorities in the Plan are consistent with those defined in the Drought Management Plan.

Naturally Thornton: A Plan for Sustainable City Landscapes Purpose A briefing to Council to review the Naturally Thornton: A Plan for Sustainable City Landscapes (Plan) to gradually convert select passive turf areas to Colorado-friendly community landscapes. Agenda 1. Water Efficiencies 2. Benefits 3. Regional Trends 4. Passive vs. Active Turf 5. Conversion Process 6. Communication Strategy

7. Next Steps 1 Water Efficiencies WHY? HOW? Demand Management Water Security • ThorntonWater.com – Customer focused programs: • Aridification H2Overhaul, rebates, education, free • Drought services, home water reports • Water efficiency projects are cost • Utility management – System audits, leak detection, Advanced effective investments Metering Infrastructure • Colorado’s Water Plan prioritizes • Landscape Code and Rules municipal water efficiency • Naturally Thornton - Our H2Overhaul for Sustainable Landscapes Perspective: Thirsty Turf

Kentucky Bluegrass requires 3 feet of water each summer Each acre of Kentucky Bluegrass • about one foot of water comes requires an Olympic-sized from rain (if we’re lucky!) swimming pool worth of EXTRA • the remaining two feet of water water to keep it alive in Colorado comes from irrigation

The same amount of water as: • 33,000 loads of laundry • 10,560,000 glasses of water • 515,625 toilet flushes • Showering for 230 days straight Benefits Colorado-friendly • Drought and climate resilient • Reduces energy use and chemical applications • Improves wildlife habitat and attracts pollinators Improved Water Security • Prioritizes water uses • Reduces water demand Maximize Parks Resources • Less resource intensive – chemicals and mowing • Reduction in water bills Lead by Example • Encourage water customers to do the same Regional Trends Westminster Highlands Ranch Colorado Springs Greeley Passive Turf vs. Active Turf Passive Active Purpose: aesthetic and utility Purpose: play and recreation Conversion Process

Convert Low Use/Passive Turf to Native/Sustainable Landscapes

Process requires the chemical killing off of the current ground cover followed by seeding, watering, and weed control. Conversion Process

The full process will take approximately three to five years at each site, depending on conditions. Communication Strategy

• Website: https://www.thorntonco.gov/thornton -parks/Pages/sustainable- parks.aspx • Onsite signage • Social media • Utility bill insert • Newsletters • Video documentation of transformations Next Steps

1. Continue managing parks in 2020 using reduced resources 2. Continue implementing communication strategy 3. Pilot Tier 3 conversion – 15-20 acres in 2020 4. Other Tier 3 conversions as resources allow Questions? PLANNING SESSION COMMUNICATION Meeting Date: Agenda Item: Agenda Location: Goal(s): Legal Review: st ___ 1 Reading August 18, 2020 F N/A N/A ___ 2nd Reading

Subject: Review of Analysis of Retiree Health Care Benefit Before Medicare Eligibility

Recommended by: Joyce Hunt JH Approved by: Kevin S. Woods KW Ordinance previously introduced by: Presenter(s): Joyce Hunt, Assistant City Manager ______

SYNOPSIS:

A request was made to provide an estimate of the cost to provide a new Retiree Health Care Benefit for Police Officers and Firefighters who retire from the City. The information below provides cost estimates at various levels of contribution by the employer/retiree to pay the cost of the lowest Single Coverage Medical Plan (Benefit) offered to City employees. The other assumptions built into the cost estimates are as follows: • Benefit ceases upon becoming Medicare eligible or age 65, whichever occurs first • New retiree must have been enrolled in one of the medical plans offered by the City prior to retirement • New retiree has 25 years of continuous service with the City and is at least 55 years of age or has 30 years of continuous service with the City and is at least age 50 • Retiree may enroll their spouse and dependents but any cost above the Benefit is paid by them • Benefit ceases if coverage is dropped (cannot go in and out of coverage) • Benefit ceases if retiree contribution toward monthly premium is not paid • Cost estimates assume a start date of January 1, 2021

RECOMMENDATION:

For Council information. However, if Council moves forward and selects one of the cost alternatives included in the Background, staff recommends that: a) a report on the cost and use of the Benefit be provided to Council each year and considered as a part of the Budget deliberations; b) the Benefit may be altered annually as determined by Council; and c) the Benefit be considered as part of the compensation package utilized in determining pay in the union contract.

BUDGET/STAFF IMPLICATIONS:

The range of estimated annual costs, based on the percent of cost picked up by the City, are provided in the background.

ALTERNATIVES:

For Council information. PLANNING SESSION COMMUNICATION PAGE 2

BACKGROUND (ANALYSIS/NEXT STEPS/HISTORY): (includes previous City Council action)

Assumptions about Years of Service (YOS) and Retirement Age. One of the key factors in developing the cost estimates is the projected number of people participating in the program. For purposes of this analysis, staff utilized the numbers provided in the Leif Associates Employer Contribution Scenarios (March 2020) for the number of people eligible to participate and the number of people actuarially determined to participate, which is a smaller number and takes into account a variety of variables to calculate an estimated cost. The reason for using both of these numbers is to provide a range of potential cost. The Leif Associates analysis was based on the census information (age and hire date) for Police Officers and Firefighters employed by the City as of December 31, 2019. For purposes of determining eligibility, the Leif Associates analysis utilized the normal retirement criteria for the Colorado Fire and Police Pension Association (FPPA) because all but 63 of the 376 Police Officers and Firefighters included in the census on December 31, 2019 were in FPPA and subject to their retirement rules. All City Police Officers and Firefighters hired on or after July 1, 2017 are automatically enrolled in the Statewide Defined Benefit Plan and the majority of Police Officers and Firefighters who transferred to the FPPA also enrolled in the Statewide Defined Benefit Plan. Police Officers and Firefighters who were employed by the City prior to July 1, 2017 were given the option to choose to enroll in the FPPA and select one of the three plans the FPPA offers (Statewide Defined Benefit Plan, Statewide Hybrid Plan, or Statewide Money Purchase Plan). The FPPA defines normal retirement as age 55 and 25 YOS or age 50 and 30 YOS.

Assumptions for the Cost Estimate.

The following tables show the number of participants used to develop the cost of the Benefit for the two scenarios cited above (eligible to use/projected to use):

Police Officers (241 as of 12/31/19) Firefighters (135 as of 12/31/19) 25 YOS/Age 55 25 YOS/Age 25 YOS/Age 25 YOS/Age or 30 YOS/Age 55 or 30 55 or 30 55 or 30 50 Projected YOS/Age 50 YOS/Age 50 YOS/Age 50 Year Participants 100% Year Projected 100% Participate Participants Participate

2021 4 18 2021 1 3 2022 5 16 2022 1 5 2023 5 17 2023 1 4 2024 5 18 2024 1 4 2025 5 19 2025 1 4 2026 5 20 2026 1 5 2027 6 29 2027 1 5 2028 6 29 2028 2 12 2029 7 33 2029 2 15 2030 7 36 2030 3 19

PLANNING SESSION COMMUNICATION PAGE 3

Cost Estimates

1. Employer Picks Up 100% of lowest SINGLE Coverage Plan. (based on 2020 starting cost for Kaiser High Deductible Health Plan (HDHP) of $437.42/month total premium and annual estimated 5% increase)

Projected Participants Participate at 25YOS/Age 55 (12.31.19) All Eligible Participants Participate at 25YOS/Age 55 (12.31.19) Lowest Single Plan Year Lowest Single Year 100% Police Fire TOTAL Plan 100% Police Fire TOTAL $ 459 2021 $ 22,032 $ 5,508 $ 27,540 $ 459 2021 $ 99,144 $ 16,524 $ 115,668 $ 482 2022 $ 28,920 $ 5,784 $ 34,704 $ 482 2022 $ 92,544 $ 28,920 $ 121,464 $ 506 2023 $ 30,360 $ 6,072 $ 36,432 $ 506 2023 $ 103,224 $ 24,288 $ 127,512 $ 532 2024 $ 31,878 $ 6,376 $ 38,254 $ 532 2024 $ 114,761 $ 25,502 $ 140,263 $ 558 2025 $ 33,472 $ 6,694 $ 40,166 $ 558 2025 $ 127,193 $ 26,778 $ 153,971 $ 586 2026 $ 35,145 $ 7,029 $ 42,175 $ 586 2026 $ 140,582 $ 35,145 $ 175,727 $ 615 2027 $ 44,283 $ 7,381 $ 51,664 $ 615 2027 $ 214,036 $ 36,903 $ 250,939 $ 646 2028 $ 46,497 $ 15,499 $ 61,997 $ 646 2028 $ 224,738 $ 92,995 $ 317,733 $ 679 2029 $ 56,959 $ 16,274 $ 73,234 $ 679 2029 $ 268,523 $ 122,056 $ 390,579 $ 713 2030 $ 59,807 $ 25,632 $ 85,439 $ 713 2030 $ 307,581 $ 162,334 $ 469,915 TOTAL $ 389,355 $ 102,249 $ 491,604 TOTAL $ 1,692,326 $ 571,445 $ 2,263,771

2. Employer Picks Up 90% of lowest SINGLE Coverage Plan. (same assumptions as 1)

Projected Participants Participate at 25YOS/Age 55 (12.31.19) All Participants Participate at 25YOS/Age 55 (12.31.19) Lowest Single Plan Year Police Fire TOTAL Lowest Single Year Police Fire TOTAL 90% ER Plan 90% ER $ 413 2021 $ 19,841 $ 4,960 $ 24,802 $ 413 2021 $ 89,286 $ 14,881 $ 104,167 $ 434 2022 $ 26,042 $ 5,208 $ 31,250 $ 434 2022 $ 83,334 $ 26,042 $ 109,376 $ 456 2023 $ 27,344 $ 5,469 $ 32,813 $ 456 2023 $ 92,969 $ 21,875 $ 114,844 $ 479 2024 $ 28,711 $ 5,742 $ 34,453 $ 479 2024 $ 103,360 $ 22,969 $ 126,329 $ 502 2025 $ 30,147 $ 6,029 $ 36,176 $ 502 2025 $ 114,557 $ 24,117 $ 138,675 $ 528 2026 $ 31,654 $ 6,331 $ 37,985 $ 528 2026 $ 126,616 $ 31,654 $ 158,270 $ 554 2027 $ 39,884 $ 6,647 $ 46,531 $ 554 2027 $ 192,773 $ 33,237 $ 226,009 $ 582 2028 $ 41,878 $ 13,959 $ 55,838 $ 582 2028 $ 202,411 $ 83,756 $ 286,168 $ 611 2029 $ 51,301 $ 14,657 $ 65,958 $ 611 2029 $ 241,847 $ 109,930 $ 351,777 $ 641 2030 $ 53,866 $ 23,085 $ 76,951 $ 641 2030 $ 277,024 $ 146,207 $ 423,232 TOTAL $ 350,668 $ 92,089 $ 442,757 TOTAL $ 1,524,177 $ 514,669 $ 2,038,846

PLANNING SESSION COMMUNICATION PAGE 4

3. Employer Picks Up 80% of lowest SINGLE Coverage Plan. (same assumptions as 1)

Projected Participants Participate at 25YOS/Age 55 (12.31.19) All Participants Participate at 25YOS/Age 55 (12.31.19) Lowest Single Plan Year Police Fire TOTAL Lowest Single Year Police Fire TOTAL 80% ER Plan 80% ER $ 367 2021 $ 17,637 $ 4,409 $ 22,046 $ 367 2021 $ 79,365 $ 13,228 $ 92,593 $ 415 2022 $ 24,884 $ 4,630 $ 29,514 $ 415 2022 $ 79,630 $ 23,148 $ 102,778 $ 435 2023 $ 26,129 $ 4,861 $ 30,990 $ 435 2023 $ 88,837 $ 19,445 $ 108,282 $ 457 2024 $ 27,435 $ 5,104 $ 32,539 $ 457 2024 $ 98,766 $ 20,417 $ 119,183 $ 480 2025 $ 28,807 $ 5,359 $ 34,166 $ 480 2025 $ 109,466 $ 21,438 $ 130,903 $ 504 2026 $ 30,247 $ 5,627 $ 35,874 $ 504 2026 $ 120,989 $ 28,137 $ 149,125 $ 529 2027 $ 38,111 $ 5,909 $ 44,020 $ 529 2027 $ 184,205 $ 29,544 $ 213,749 $ 556 2028 $ 40,017 $ 12,408 $ 52,425 $ 556 2028 $ 193,415 $ 74,450 $ 267,865 $ 584 2029 $ 49,021 $ 13,029 $ 62,050 $ 584 2029 $ 231,098 $ 97,716 $ 328,814 $ 613 2030 $ 51,472 $ 20,520 $ 71,992 $ 613 2030 $ 264,712 $ 129,962 $ 394,674 TOTAL $ 333,760 $ 81,857 $ 415,617 TOTAL $ 1,450,483 $ 457,483 $ 1,907,967

4. Employer Picks Up 70% of lowest SINGLE Coverage Plan. (same assumptions as 1)

Projected Participants Participate at 25YOS/Age 55 (12.31.19) All Participants Participate at 25YOS/Age 55 (12.31.19) Lowest Single Plan Year Police Fire TOTAL Lowest Single Year Police Fire TOTAL 70% ER Plan 70% ER $ 322 2021 $ 15,432 $ 3,858 $ 19,290 $ 322 2021 $ 69,445 $ 11,574 $ 81,019 $ 338 2022 $ 20,255 $ 4,051 $ 24,306 $ 338 2022 $ 64,815 $ 20,255 $ 85,070 $ 354 2023 $ 21,267 $ 4,253 $ 25,521 $ 354 2023 $ 72,309 $ 17,014 $ 89,323 $ 372 2024 $ 22,331 $ 4,466 $ 26,797 $ 372 2024 $ 80,391 $ 17,865 $ 98,256 $ 391 2025 $ 23,447 $ 4,689 $ 28,137 $ 391 2025 $ 89,100 $ 18,758 $ 107,858 $ 410 2026 $ 24,620 $ 4,924 $ 29,544 $ 410 2026 $ 98,479 $ 24,620 $ 123,099 $ 431 2027 $ 31,021 $ 5,170 $ 36,191 $ 431 2027 $ 149,934 $ 25,851 $ 175,785 $ 452 2028 $ 32,572 $ 10,857 $ 43,429 $ 452 2028 $ 157,431 $ 65,144 $ 222,575 $ 475 2029 $ 39,901 $ 11,400 $ 51,301 $ 475 2029 $ 188,103 $ 85,501 $ 273,604 $ 499 2030 $ 41,896 $ 17,955 $ 59,851 $ 499 2030 $ 215,463 $ 113,717 $ 329,180 TOTAL $ 272,741 $ 71,625 $ 344,366 TOTAL $ 1,185,471 $ 400,298 $ 1,585,769

5. Employer Picks Up 60% of lowest SINGLE Coverage Plan. (same assumptions as 1)

Projected Participants Participate at 25YOS/Age 55 (12.31.19) All Participants Participate at 25YOS/Age 55 (12.31.19) Lowest Single Plan Year Police Fire TOTAL Lowest Single Year Police Fire TOTAL 60% ER Plan 60% ER $ 276 2021 $ 13,228 $ 3,307 $ 16,534 $ 276 2021 $ 59,524 $ 9,921 $ 69,445 $ 289 2022 $ 17,361 $ 3,472 $ 20,833 $ 289 2022 $ 55,556 $ 17,361 $ 72,917 $ 304 2023 $ 18,229 $ 3,646 $ 21,875 $ 304 2023 $ 61,979 $ 14,583 $ 76,563 $ 319 2024 $ 19,141 $ 3,828 $ 22,969 $ 319 2024 $ 68,907 $ 15,313 $ 84,219 $ 335 2025 $ 20,098 $ 4,020 $ 24,117 $ 335 2025 $ 76,371 $ 16,078 $ 92,450 $ 352 2026 $ 21,103 $ 4,221 $ 25,323 $ 352 2026 $ 84,411 $ 21,103 $ 105,513 $ 369 2027 $ 26,589 $ 4,432 $ 31,021 $ 369 2027 $ 128,515 $ 22,158 $ 150,673 $ 388 2028 $ 27,919 $ 9,306 $ 37,225 $ 388 2028 $ 134,941 $ 55,838 $ 190,778 $ 407 2029 $ 34,201 $ 9,772 $ 43,972 $ 407 2029 $ 161,231 $ 73,287 $ 234,518 $ 353 2030 $ 29,642 $ 15,390 $ 45,032 $ 353 2030 $ 152,446 $ 97,472 $ 249,917 TOTAL $ 227,510 $ 61,393 $ 288,903 TOTAL $ 983,881 $ 343,112 $ 1,326,993

PLANNING SESSION COMMUNICATION PAGE 5

6. Employer Picks Up 50% of lowest SINGLE Coverage Plan. (same assumptions as 1)

Projected Participants Participate at 25YOS/Age 55 (12.31.19) All Participants Participate at 25YOS/Age 55 (12.31.19) Lowest Single Plan Year Police Fire TOTAL Lowest Single Year Police Fire TOTAL 50% ER Plan 50% ER $ 230 2021 $ 11,023 $ 2,756 $ 13,779 $ 230 2021 $ 49,603 $ 8,267 $ 57,871 $ 241 2022 $ 14,468 $ 2,894 $ 17,361 $ 241 2022 $ 46,297 $ 14,468 $ 60,764 $ 253 2023 $ 15,191 $ 3,038 $ 18,229 $ 253 2023 $ 51,650 $ 12,153 $ 63,802 $ 266 2024 $ 15,951 $ 3,190 $ 19,141 $ 266 2024 $ 57,422 $ 12,760 $ 70,183 $ 279 2025 $ 16,748 $ 3,350 $ 20,098 $ 279 2025 $ 63,643 $ 13,399 $ 77,041 $ 293 2026 $ 17,586 $ 3,517 $ 21,103 $ 293 2026 $ 70,342 $ 17,586 $ 87,928 $ 308 2027 $ 22,158 $ 3,693 $ 25,851 $ 308 2027 $ 107,096 $ 18,465 $ 125,561 $ 323 2028 $ 23,266 $ 7,755 $ 31,021 $ 323 2028 $ 112,451 $ 46,531 $ 158,982 $ 339 2029 $ 28,500 $ 8,143 $ 36,643 $ 339 2029 $ 134,359 $ 61,072 $ 195,432 $ 356 2030 $ 29,925 $ 12,825 $ 42,751 $ 356 2030 $ 153,902 $ 81,226 $ 235,129 TOTAL $ 194,815 $ 51,161 $ 245,976 TOTAL $ 846,765 $ 285,927 $ 1,132,692

Monthly Premiums by Cost Alternative

Monthly Premiums by Cost Alternatives Annual 100% Alternative #1 Alternative #2 Alternative #3 Alternative #4 Alternative #5 Alternative #6 $ 5,511 Year 100% ER 90% ER 10% EE 80% ER 20% EE 70% ER 30% EE 60% ER 40% EE 50% ER 50% EE $ 5,787 2021 $ 459 $ 413 $ 46 $ 367 $ 92 $ 322 $ 138 $ 276 $ 184 $ 230 $ 230 $ 6,076 2022 $ 482 $ 434 $ 48 $ 415 $ 68 $ 338 $ 145 $ 289 $ 193 $ 241 $ 241 $ 6,380 2023 $ 506 $ 456 $ 51 $ 435 $ 71 $ 354 $ 152 $ 304 $ 203 $ 253 $ 253 $ 6,699 2024 $ 532 $ 479 $ 53 $ 457 $ 74 $ 372 $ 160 $ 319 $ 213 $ 266 $ 266 $ 7,034 2025 $ 558 $ 502 $ 56 $ 480 $ 78 $ 391 $ 167 $ 335 $ 223 $ 279 $ 279 $ 7,386 2026 $ 586 $ 528 $ 59 $ 504 $ 82 $ 410 $ 176 $ 352 $ 234 $ 293 $ 293 $ 7,755 2027 $ 615 $ 554 $ 62 $ 529 $ 86 $ 431 $ 185 $ 369 $ 246 $ 308 $ 308 $ 8,143 2028 $ 646 $ 582 $ 65 $ 556 $ 90 $ 452 $ 194 $ 388 $ 259 $ 323 $ 323 $ 8,550 2029 $ 679 $ 611 $ 68 $ 584 $ 95 $ 475 $ 204 $ 407 $ 271 $ 339 $ 339 $ 69,323 2030 $ 713 $ 641 $ 71 $ 613 $ 100 $ 499 $ 214 $ 353 $ 360 $ 356 $ 356

SUMMARY OF COSTS FOR ALTERNATIVES:

50% ER Contribution 60% ER Contribution 70% ER Contribution

Year Projected All Projected All Projected All

2021 $ 13,779 $ 57,871 $ 16,534 $ 69,445 $ 19,290 $ 81,019 2022 $ 17,361 $ 60,764 $ 20,833 $ 72,917 $ 24,306 $ 85,070 2023 $ 18,229 $ 63,802 $ 21,875 $ 76,563 $ 25,521 $ 89,323 2024 $ 19,141 $ 70,183 $ 22,969 $ 84,219 $ 26,797 $ 98,256 2025 $ 20,098 $ 77,041 $ 24,117 $ 92,450 $ 28,137 $ 107,858 2026 $ 21,103 $ 87,928 $ 25,323 $ 105,513 $ 29,544 $ 123,099 2027 $ 25,851 $ 125,561 $ 31,021 $ 150,673 $ 36,191 $ 175,785 2028 $ 31,021 $ 158,982 $ 37,225 $ 190,778 $ 43,429 $ 222,575 2029 $ 36,643 $ 195,432 $ 43,972 $ 234,518 $ 51,301 $ 273,604 2030 $ 42,751 $ 235,129 $ 45,032 $ 249,917 $ 59,851 $ 329,180 $ 245,976 $1,132,692 $ 288,903 $ 1,326,993 $ 344,366 $ 1,585,769

PLANNING SESSION COMMUNICATION PAGE 6

80% ER Contribution 90% ER Contribution 100% ER Contribution

Year Projected All Projected All Projected All

2021 $ 22,046 $ 92,593 $ 24,802 $ 104,167 $ 27,540 $ 115,668 2022 $ 29,514 $ 102,778 $ 31,250 $ 109,376 $ 34,704 $ 121,464 2023 $ 30,990 $ 108,282 $ 32,813 $ 114,844 $ 36,432 $ 127,512 2024 $ 32,539 $ 119,183 $ 34,453 $ 126,329 $ 38,254 $ 140,263 2025 $ 34,166 $ 130,903 $ 36,176 $ 138,675 $ 40,166 $ 153,971 2026 $ 35,874 $ 149,125 $ 37,985 $ 158,270 $ 42,175 $ 175,727 2027 $ 44,020 $ 213,749 $ 46,531 $ 226,009 $ 51,664 $ 250,939 2028 $ 52,425 $ 267,865 $ 55,838 $ 286,168 $ 61,997 $ 317,733 2029 $ 62,050 $ 328,814 $ 65,958 $ 351,777 $ 73,234 $ 390,579 2030 $ 71,992 $ 394,674 $ 76,951 $ 423,232 $ 85,439 $ 469,915 $ 415,617 $ 1,907,967 $ 442,757 $ 2,038,846 $ 491,604 $ 2,263,771

Current Post-Employment Health Care Benefit. City Code Section 54-326(b)(3) provides that effective January 1, 2020, an employee who retires pursuant to the provisions of Section 54-152 shall be entitled to continue the City’s health, dental, vision, and/or life insurance benefits until reaching age 65 or becoming Medicare eligible, whichever first occurs. It goes on to say that any access to the City’s health, dental, vision, and/or life insurance benefits is subject to and only available if permitted by the provisions of such plans as they may from time to time be amended, upon the employee’s payment of any applicable premiums prior to their due date. An employee’s decision not to continue coverage by the deadline established by law or by the provisions of the applicable insurance policy is irreversible. As of the end of February 2020, 20 retirees were participating in some combination of the City’s health, dental, and vision plans, paying 100% of the premium. Of the 20, 17 were in the health plans.

Employer contributions to a post-employment health plan up to Medicare eligibility is not a common practice of comparison cities. Adams County provides a $50/month benefit to all eligible retirees; Commerce City provides a benefit to Police retirees (20 years of continuous service) equal to the lowest single premium for single retiree and one-half of lowest employee plus dependent premium if retiree includes spouse pre-Medicare eligibility and $75/month towards Medigap Coverage, and a benefit of $410/month to general employee retirees hired prior to July 1, 2006; and Lakewood provides a benefit to all eligible retirees of $32.50/YOS up to 20 years with a maximum of $650 per month.

Definition of Retirement. City Code Section 54-152 provides that Regular employees may retire with all benefits accorded in Section 54-326 (above) specifically as it relates to the City’s health, dental, vision, and/or life insurance benefits if they meet one or more of the following criteria:

(1) Complete 20 years of continuous service with the City. (2) Complete at least 10 years of continuous service with the City and attain age 62. (3) Qualify for normal or disability retirement in accordance with the provisions of the applicable general employee or fire or police pension plan.

• Police Officers in the City’s Police 401a Money Purchase (Defined Contribution) Plan - normal retirement age as the later of age 55 or 10 YOS. PLANNING SESSION COMMUNICATION PAGE 7

• Firefighters in the City’s Fire 401a Money Purchase (Defined Contribution) Plan - normal retirement age is 50. • Police Officers and Firefighters in the FPPA - normal retirement is age 55 and 25 YOS for the Statewide Defined Benefit Plan or age 50 and 30 YOS for the Statewide Defined Benefit Plan.

Health Savings Accounts. The City provides a Retirement Health Savings (RHS) Account to General and Police full-time employees and contributes $350 annually to each participants RHS account. The employee is not allowed (IRS regulation) to directly contribute to this account but may forfeit the value of one floating holiday (8 hours) as well as up to 40 hours of vacation leave annually. The City contributes the dollar value of these hours to the employee’s RHS account. Based on a salary of $60,000, the value of these contributions over 20 years could grow to $50,000.

The City also contributes the equivalent of 1.75% of a Fire Fighter I’s salary to each employee, which was negotiated as part of the Fire Union Contract. The City transmits these funds to a third-party trustee identified by the Fire Union, currently Nationwide Insurance Company’s Post Employment Health Plan (PEHP).

Both the RHS and the PEHP Plans allow the employee to have control over the investment of the funds and allow the employee to use the money set aside to pay for medical expenses, including insurance premiums and out-of-pocket medical costs, including long-term care insurance, but operate under different IRS rules.

City Council Planning Session August 18, 2020

Police Officer and Firefighter Post-Retirement Healthcare Benefit Information Current Post-Retirement Healthcare Benefit

• Regular full-time employees who retire from the City entitled to continue in the City’s health, dental, vision, and/or life insurance plans until reaching age 65 or becoming Medicare eligible, whichever occurs first • Must pay 100% of the premiums • Retirement definition for those in City defined contribution plan: • Police - later of age 55 or 10 years of service • Firefighters – age 50 • Retirement definition Fire and Police Pension Association defined benefit plan: • Age 55 and 25 years of service, or • Age 50 and 30 years of service Healthcare Savings Plans

• Retirement Health Savings (RHS) Plan for Police (and General) Full- time Employees – Tax-advantaged savings account to pay future eligible health-care costs tax free – City contributes $350 per year; Employee can forfeit one floating holiday and up to 40 vacations hours per year and City contributes dollar value to account – Eligible to use at normal retirement, separation from service, if totally or permanently disabled • Post-Employment Health Plan (PEHP) for Firefighters Union Contract – Same tax-advantaged provisions as RHS – City contributes funds equivalent to 1.75% of Firefighter I salary to each employee Cost Estimate Assumptions

• Benefit is based on cost of lowest Single coverage medical plan offered to City employees [2020 Kaiser High Deductible Health Plan (HDHP) $437.42/month total premium and estimated annual 5% increase] • Alternatives range from 50% to 100% Employer contribution • Start date January 1, 2021 • Benefit ceases upon becoming Medicare eligible or age 65, whichever comes first • New retiree must have been enrolled in one of City medical plans prior to retirement • Utilized the estimates of Police and Fire eligible to participate as well as the number actuarially likely to participate to calculate estimated costs [actuarial number takes into account people entering/exiting for various reasons] Participant Estimates

Police Firefighters Officers (135 as of (241 as of 12.31.19) 12.31.19) 25 YOS/Age 55 25 YOS/Age 25 YOS/Age 25 YOS/Age 55 or 30 YOS/Age 55 or 30 55 or 30 or 30 YOS/Age 50 Projected YOS/Age 50 YOS/Age 50 50 100% Year Participants 100% Year Projected Participate Participate Participants

2021 1 3 2021 4 18 2022 1 5 2022 5 16 2023 5 17 2023 1 4 2024 5 18 2024 1 4 2025 5 19 2025 1 4 2026 5 20 2026 1 5 2027 6 29 2027 1 5 2028 6 29 2028 2 12 2029 7 33 2029 2 15 2030 7 36 2030 3 19 Range of Premiums Based on % Picked up by City

Monthly Premiums by Cost Alternatives 70% 80% Annual 100% Year 50% Employer 60% Employer Employer Employer 90% Employer 100% ER $ 5,249 2020 ER EE ER EE ER EE ER EE ER EE ER

$ 5,511 2021 $ 230 $ 230 $ 276 $ 184 $ 322 $ 138 $ 322 $ 138 $ 413 $ 46 $ 459

$ 5,787 2022 $ 241 $ 241 $ 230 $ 253 $ 338 $ 145 $ 338 $ 145 $ 434 $ 48 $ 482

$ 6,076 2023 $ 253 $ 253 $ 304 $ 203 $ 354 $ 152 $ 354 $ 152 $ 456 $ 51 $ 506

$ 6,380 2024 $ 266 $ 266 $ 319 $ 213 $ 372 $ 160 $ 372 $ 160 $ 479 $ 53 $ 532

$ 6,699 2025 $ 279 $ 279 $ 335 $ 223 $ 391 $ 167 $ 391 $ 167 $ 502 $ 56 $ 558

$ 7,034 2026 $ 293 $ 293 $ 352 $ 234 $ 410 $ 176 $ 410 $ 176 $ 528 $ 59 $ 586

$ 7,386 2027 $ 308 $ 308 $ 369 $ 246 $ 431 $ 185 $ 431 $ 185 $ 554 $ 62 $ 615

$ 7,755 2028 $ 323 $ 323 $ 388 $ 259 $ 452 $ 194 $ 452 $ 194 $ 582 $ 65 $ 646

$ 8,143 2029 $ 339 $ 339 $ 407 $ 271 $ 475 $ 204 $ 475 $ 204 $ 611 $ 68 $ 679

$ 8,550 2030 $ 356 $ 356 $ 353 $ 360 $ 499 $ 214 $ 499 $ 214 $ 641 $ 71 $ 713 Range of Cost Estimates

50% ER Contribution 60% ER Contribution 70% ER Contribution

Year Projected All Projected All Projected All

80% ER Contribution 90% ER Contribution 100% ER Contribution

Year Projected All Projected All Projected All

2021 $ 22,046 $ 92,593 $ 24,802 $ 104,167 $ 27,540 $ 115,668 2022 $ 29,514 $ 102,778 $ 31,250 $ 109,376 $ 34,704 $ 121,464 2023 $ 30,990 $ 108,282 $ 32,813 $ 114,844 $ 36,432 $ 127,512 2024 $ 32,539 $ 119,183 $ 34,453 $ 126,329 $ 38,254 $ 140,263 2025 $ 34,166 $ 130,903 $ 36,176 $ 138,675 $ 40,166 $ 153,971 2026 $ 35,874 $ 149,125 $ 37,985 $ 158,270 $ 42,175 $ 175,727 2027 $ 44,020 $ 213,749 $ 46,531 $ 226,009 $ 51,664 $ 250,939 2028 $ 52,425 $ 267,865 $ 55,838 $ 286,168 $ 61,997 $ 317,733 2029 $ 62,050 $ 328,814 $ 65,958 $ 351,777 $ 73,234 $ 390,579 2030 $ 71,992 $ 394,674 $ 76,951 $ 423,232 $ 85,439 $ 469,915 $415,617 $ 1,907,967 $ 442,757 $ 2,038,846 $ 491,604 $ 2,263,771 If Council moves forward with a Benefit for Police Officers and Firefighters Retirees recommend:

• Report on cost and use of benefit be provided to Council each year as part of budget deliberations • Benefit may be altered annually as determined by Council • Benefit be considered part of the compensation package utilized in determining pay in the union contracts as this is not currently common practice – Adams County provides $50/month to all eligible retirees – Commerce City provides benefit of lowest single premium or one-half lowest single plus dependent if employee plus spouse only to Police Officers; General employee retirees $410/month if hired prior to July 1, 2006 – Lakewood provides a benefit to all eligible retirees of $32.50/years of service up to $650/month