HomeMy WebLinkAboutStudy Session Packet 08/01/2011STUDY SESSION AGENDA
CITY COUNCIL MEETING
CITY OF WHEAT RIDGE, COLORADO
Seniors' Resource Center
3227 Chase St.
August 1, 2011
6:30p.m.
Individuals with disabilities are encouraged to participate in all public meetings
sponsored by the City of Wheat Ridge. Call Heather Geyer, Public Information
Officer at 303-235-2826 at least one week in advance of a meeting if you are
interested in participating and need inclusion assistance.
APPROVAL OF AGENDA
.L Staff Report(s)
a) Off-leash Dog Park Volunteer Committee
2. Tour of Seniors' Resource Center
~ Ye Olde Fire House
4 . Stormwater & Street Utility
5. Update of Exempla Sales and Use Tax Agreement
6. USA Pro Cycling Challenge
~~A .f .... ,. City of _.~WheatBi_dge ~ARKS AND RECREATION
1f~J.
Memorandum
TO: Mayor and City Council
THROUGH: Patrick Goff, City Manager~
FROM: Joyce Manwaring, Parks and Recreation Director
DATE: August 1, 2011
SUBJECT: Ye Olde Firehouse-3232 Depew Street
ISSUE:
The Seniors' Resource Center and the City met in June to discuss the possibility of transferring
ownership of Ye Olde Firehouse from the City to the Seniors' Resource Center. The Center is
requesting that Ye Olde Firehouse ownership be transferred free of charge.
PRIOR ACTION:
No prior action has been taken regarding this item.
FINANCIAL IMPACT:
Filing fees for the transfer of the deed. Operation and maintenance costs for 2010 total $10,274.
Revenue totals $4,616. Detailed costs and rental revenues are attached.
BACKGROUND:
Ye Olde Firehouse, located at 3232 Depew Street, was purchased for $16,000 by the City from
the JEFFCO School District in 1980. The building consists of a one-room building with two
restrooms and is 900 square feet in size. The total lot size is 2,842 square feet.
The Firehouse is contiguous on three sides, north, south and east, to the Seniors' Resource
Center property. The property line on the north side of the Firehouse is 21 feet from the
building, on the east and south sides it is four feet, and the west side it is 30 feet to the sidewalk.
Since the purchase in 1980, the Parks and Recreation Department has scheduled and maintained
the building. Over the course of time, the building has been used for a variety of programs as
well as serving as a rental space to the general public for meetings and private rentals. Currently
the building is used mainly for outside group rentals, community meetings and various programs
sponsored by the Seniors' Resource Center.
Ye Olde Firehouse-3232 Depew Street
August 1, 2011
Page 2
Attached is information regarding the 201 0 list of user groups, the number of hours used by each
group, and the associated revenue.
The Seniors' Resource Center was the most frequent user at 275 hours in 2010. T he Center is
not charged for usage of the building.
RECOMMENDATIONS:
Staff supports transferring ownership of Y e Olde Firehouse to t he Seniors ' Resource Center for
the following reasons:
1) The City is no longer using the building for any programming sponsored by the City
2) Costs to maintain and schedule the building exceed revenues
3) It would reduce labor of Facility Maintenance, Parks Maintenance and the Facility Rental
Coordinator staff
4) Costs of operation and maintenance will be incurred by the agency that uses the building
the majority of the time
Staff would also request that if ownership of the building is transferred to the Seniors' Resource
Center that the building remain available to the public for use.
ATTACHMENTS:
1. Y e Olde Firehouse Expenditure/Revenue report
2. Ye Olde Firehouse Usage Report
JM/dr
2
Ye Olde Firehouse
3232 Depew
2010 expenditures
Julie D.
Mike
Utilities
Parks
Janitorial
Carpet Cleaning
Maintenance & Paper Supplies
Boiler & Hot Water Heater Maint.
Total Expenditures
2010 Revenue
5% of her time $
5% of his time $
X eel $
Sanitation $
Water $
Irrigation Maintenance $
$
2~ear-$
$
$
$
$
2,000
3 ,250
1,340
135
735
464
1,500
200
500
150
10,274
4,616
Attachment 1
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Ye Olde Firehouse-2010
Organization Frequency Headcount Hourly Rate Total Hours Total Revenue
Andye Murphy -Spiritual Workshop Once 25 $ 20 .00 2 .0 $ 41.20
Children's Discovery Workshop Month ly 20 $ 20 .00 12 .5 $ 180.25
Colorado Community Hospice 2-3 times/mo 20-35 $ 20.00 42.0 $ 865.20
Dean Jackson-Herbalife As needed 15 $ 20.00 2.0 $ 30.90
Denver Speed [)emons Once 25 $ 20 .00 2.0 $ 41.20
Earth Temple 4-5 times/mo 20 $ 10 .00 93.0 $ 957.90
Earth Temple 2 Monthly 20 $ 10.00 24.0 $ 247 .20
Jeffco Public Library Once 50 $ 20.00 4 .0 $ 80 .00
Jeffco Republicans As needed 20 $ 10.00 6 .5 $ 66.95
JM Designs Weekly 10 $ 10 .00 102.0 $ 525.30
Mounta in View Friends Weekly 15 $ 20 .00 48.5 $ 970.00
Old Stanley Fidelity Once 20 $ 20 .00 3.0 $ 61 .80
Philadelphia Church of God As needed 25 $ 20 .00 21 .0 $ 347.20
Rocky Mountain Aeromode lers Monthly ? $ 20 .00 6.0 $ 61.80
Seniors Resource Center As needed Varied No charge 275.0 $
US Census As needed Varied No charge 98.5 $
WR Avalanche Soccer Monthly ? $ 10.00 18.0 $ 139.05
Totals 760.0 $ 4,615.95
Attachment 2
----~··-----·--.-. -~._.... ___ .. _,_____________ --~-------:----~-·--~.--·-··-·· .. --...... ____ .. ~-:--·----·-:-··-~--:-~~--·--· ......... ...._ .. __ ,..,. __________ ,, _______ ~----·------... --
~ A~ ~~ ~ City of r?.'Wheat~dge ~PUBLIC WORKS
Memorandum
TO: Patrick Goff, City Manager ..({}
FROM: Tim Paranto, Director of Public Works
DATE: July 25,2011 (for Study Session of August 1, 2011)
SUBJECT: Utilities as Potential Revenue Sources
The 2011 City Budget provides that the Capital Investment Program (CIP) be funded from
general fund cash reserves. This year the cash reserves will be reduced from $1 0.3M to $8.1 M
to provide a minimal funding of the Street Preventive Maintenance Project, which is primarily
street resurfacing. Additionally, no improvements to the City's storm drainage system or street
system are contemplated until additional revenue sources become available.
Many cities across the country are creating utilities to fund existing and special programs. These
utilities are successful because they are equitable, with the users paying for the service provided
by the utility, similar to a water or electric utility. Two sources of dedicated revenue, a
stormwater utility and a street utility, have been discussed by the City Council at several study
sessions over the last year. Each of these utilities would collect user fees based upon demands
placed upon the utilities by properties within the City.
Utilities can be developed to finance routine operation and maintenance expenses, as well as
capital improvements. There are many worthy projects identified throughout the community that
lack funding at this time.
Streets
Preventive maintenance projects
Reconstruction projects
Street improvement projects
Storm Drainage
Minor improvement projects
Major improvement projects
Stormwater Utility
$3,000,000
$2,000,000
$78,000,000
$4,000,000
$40,000,000
A stormwater utility was first suggested in 2004 to fund the federally mandated stormwater
management program, but could also fund infrastructure improvements. A stormwater utility
would be funded by fees collected from property owners based upon the impervious area of their
properties. The utility fee for single-family residential properties would be based on the average
impervious area of all ofthe single-family properties in the City. Twenty-three cities in
Colorado have stormwater utilities, with monthly single-family residential property fees ranging
from $1.98 to $14.26 per month.
Utilities as Potential Revenue Sources
August 1, 2011
Page 2
Street Utility
Street utilities are heavily used in Oregon to finance maintenance and improvement of municipal
street systems. Street utilities are also in place in Austin, Texas and, most recently, Mission,
Kansas. Loveland is the only city in Colorado with a street utility at this time. The City of
Arvada is currently contemplating a street utility to provide dedicated revenue for street
maintenance. Street utilities are funded by fees based upon average daily vehicular trips to and
from individual properties.
Other Revenue Sources
As discussed with the City Council (most recently at the April16, 2010 City Council Retreat),
other infrastructure funding vehicles include sales tax, property tax, special tax assessments and
impact fees .
Suggested Yearly CIP Budget
A minimum yearly funding of the Capital Investment Program is necessary to maintain the
existing City streets and drainage facilities.
Preventive street maintenance
Minor street improvements
Minor drainage improvements
$2,000,000
$500,000
$150,000
$2,650,000
Additional yearly funding is necessary to finance major improvements to the street or drainage
systems. Because of the large cost of the individual projects, several years of earmarked revenue
will be required to fund any improvement. A 30-year program or a 50-year program to complete
the current list of street and drainage improvement projects would require the following yearly
revenue (assuming 5% average inflation):
Major street improvement projects
Major drainage improvement projects
Conclusion
30 year
$5,000,000
$2,600,000
$7,600,000
50 year
$4,300,000
$2,200,000 .
$6,500,000
The City's current revenues are funding the City's operating budgets at insufficient levels.
General fund cash reserves are being utilized to maintain a minimum Street Preventive
Maintenance Program, with no funding for other street or drainage infrastructure improvements.
Once the cash reserves are depleted, many streets will deteriorate to a condition that will require
major reconstruction to return them to serviceable status. The many needed stormwater
improvements will also remain unfunded. Utilities should be considered to provide additional,
dedicated revenue.
.... ~ ' ~ .... ~ "' City of . A!Pfr Wheat:Bi_dge ~OFFICE OF THE CrrY MANAGER
Memorandum
TO: Mayor and City Council
FROM: Patrick Goff, City Manager .ill-
DATE: July 25, 2011 (F or Study Session of August 1, 2011)
SUBJECT: Lutheran Sales and Use Tax Agreement
Mayor DiTullio and Council Member Jay asked that a discussion concerning the
Lutheran Sales and Use Tax Agreement be added to the June 6, 2011 Study Session
agenda. A consensus was reached at the June 61h meeting to direct staff to conduct a more
detailed analysis of the current status of the Agreement and to determine if the City
should renegotiate the contract with Lutheran. Following is a summary ofthe history of
negotiations between the City and Lutheran:
1992 Agreement
• Court ordered settlement was reached between Lutheran and the City
concerning the hospitals tax exempt status on March 17, 1992
• Agreement stipulated Lutheran would make an annual payment in lieu of sales
and use tax (excluding building use tax) to the City in the amount of
$100,600; with an increase of 5% every other year
• Payment amount negotiated between the parties on the basis of the nature and
quantity of municipal services being provided to Lutheran (no calculations or
formulas could be found on how this payment was determined)
• The City was required to add the following tax exemption to Code: "all
medical supplies and medical equipment which are purchased by, or for use
and/or consumption within, a charitable or not-for-profit health care facility
to which an exempt institution license has been issued by the treasurer. "
• Agreement was terminated by Lutheran on December 4, 200 1, as Lutheran
believed the City breached the settlement agreement for including the
following additional language to the code; "provided said not-for-profit
health care facility employs more than one hundred (1 00) persons within the
City of Wheat Ridge, provides more than one hundred (1 00) hospital bed
spaces on an ongoing basis, and provided said health care facility has entered
into an agreement, approved by the Wheat Ridge City Council, provided for
ongoing payments to the City of Wheat Ridge relating to the mutual services
provided by and between the City and the health care facility.
• Lutheran filed a Motion to Reinstate pursuant to the Court's order dated
March 17, 1992 with the Jefferson County District Court
1ffflt 5 .
Exempla Sales and Use Tax Agreement
August 1, 2011
Page 2
2002 Agreement (Attachment 2)
• Negotiations were held between the City and Lutheran to settle the sales and use
tax dispute
• An analysis was conducted to determine the increase or decrease in Lutheran
activities since the approval of the 1992 Agreement to determine the impact on
municipal services provided to Lutheran (see Table 1 below)
• The City proposed a one-time adjustment of 12.5% to the annual payment to
account for the significant increase in the activities at Lutheran
• The City proposed an annual adjustment of 5% to account for both inflation and
anticipated future growth at the Lutheran facility
• Lutheran's response was that the annual payment and annual increase percentage
should remain the same due to the facts that the growth in Lutheran services
directly benefited Wheat Ridge residents and Lutheran paid a substantial amount
of building use tax and permit fees for its expansion which should have more than
paid for any increased municipal services
• The City accepted Lutheran's proposal and the following terms were approved in
the 2002 Agreement:
o Exempla will make monthly payments to the City during the term of the
agreement. The payments due in calendar years 2002 and 2003 will be
$11,274 per month (a 5% increase over the payments made in 2001). The
monthly payments will increase by 5% every second year thereafter (i.e.,
2004, 2006, 2008, etc.).
o The term of the agreement will be two years, with automatic renewal
unless either party gives notice to terminate during the final month of the
two-year term.
o The pending litigation will be dismissed with prejudice.
o The agreement will commence January 1, 2002.
The terms of the 2002 Agreement are still in force today. Lutheran currently remits a
monthly payment of $13,764 to the City pursuant to this Agreement.
TABLE 1 LUTHERAN HOSPITAL ACTIVITY COMPARISONS
Opcnttions 1989 2000 20 I 0
Exempla Sales and Use Tax Agreement
August 1, 2011
Page 3
CONCLUSION
Historically, there has been little dispute that not-for-profit hospitals qualify for charitable
tax exemption. Typically, hospitals are exempted from federal income tax ifthey qualify
as charitable organizations under section 501 ( c )(3) of the Internal Revenue Code and
provide care to all patients in need-regardless oftheir ability to pay. However, the
scrutiny of not-for-profit health care organizations' tax exemption status has been stepped
up across the country. With the pending healthcare reform changes in 2014, some would
argue that hospitals will not be able to claim charitable status as they will be serving
fewer patients without health insurance.
However, today most hospitals in Colorado have received sales and use tax exemptions
from the municipalities in which they reside (Attachment 2). It is unknown at the time
this memorandum was drafted if these hospitals entered into any special agreements for a
payment in lieu of sales and use tax. However, it is known that the new St. Anthony's
Hospital in Lakewood is exempt from sales and use tax and they have not entered into
any agreements with the City of Lakewood to make payments in lieu of these taxes.
A comparison of Lutheran Hospital activities in 2010 to those in 2000 (see Table 1)
indicates that total activities that may have an impact on municipal services have actually
decreased. In-patient admissions, out-patient visits and E.R. visits have all decreased
during the ten-year period between 2000 and 2010. Lutheran continues to expand its
operations; however the direct impact on municipal services today or in the future is
unknown.
In light of these facts, Staff recommends that the City continues to allow the current 2002
Agreement to automatically renew with the current terms. Stafiwill monitor Lutheran
activity levels to determine if renegotiations ofthis Agreement are warranted in the
future.
Attachments:
1. 2002 Agreement Relating to City of Wheat Ridge Sales and Use Taxes
2. Sales and Use Tax Exemption Comparison
AGREEMENT RELATING TO CITY OF WHEAT RIDGE
SALES AND UsE TAXES
This Agreement Relating to City of Wheat Ridge City Sales and Use Taxes (this
"Agreement") is entered into effective as of January 1, 2002, by and between the City of Wheat
Ridge, Colorado, a Colorado home-rule municipal corporation (the "City"), and Exempla, Inc, a
Colorado not-for-profit corporation ("Exempla").
RECITALS
1. The Wheat Ridge City Code (the "City Code") contains provisions imposing a
sales tax (City Code section 22-56) and a use tax (City Code section 22-66(a)). The City sales
tax and use tax are referred to collectively in this Agreement as the "Taxes."
2. City Code sections 22-58(a)(25.5) and 22-67(2) exempt from the Taxes medical
supplies and medical equipment that are purchased by, or for use and/or consumption within, a
charitable or not-for-profit health care facility to which an exempt institution license has been
issued by the City's treasurer, provided that the health care facility employs more than 100
persons within the City, provides more than 100 hospital bed spaces on an ongoing basis and
enters into an agreement approved by the City's City Council providing for ongoing payments to
the City relating to the mutual services provided by and between the City and the health care
facility.
3. Exempla has been granted an exempt institution license by the City's treasurer.
Exempla owns and operates a charitable health care facility within the City that employs more
than 100 persons within the City and that provides more than 100 hospital bed spaces on an
ongoing basis .
4. The City and Exempla wish to enter into an agreement of the type described in
City Code section 22-58(a)(25.5), so that the exemption provided for in that section will apply to
Exempla's purchase, use and consumption of medical supplies and medical equipment.
5. The City and Exempla previously entered into certain Short-Term Agreements
Relating to City of Wheat Ridge Sales and Use Taxes effective as of January 1, 2002, March 1,
2002 and May 1, 2002 (the "Interim Agreements") pending the execution ofthis Agreement.
AGREEMENT
For and in consideration of the recitals, the mutual covenants and agreements set forth
below and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the City and Exempla agree as follows:
#8 25671 v6
Attachment 1
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1. Payments
(a) Monthly. Exempla will pay to the City $11,274 per month (the "Monthly
Payment") on or before the last day of each calendar month during the term of this Agreement.
The first Monthly Payment will be due on or before July 31, 2002 (the "Monthly Payment").
The payments due for the calendar months January 2002 through June 2002 are provided for in
paragraph 1(b) below. The amount of the required Monthly Payment will increase by 5 percent
in every second calendar year, beginning in January 2004.
(b) On Execution. Pursuant to the Interim Agreements, Exempla has paid to the City
$10,737 per month in each of the calendar months January 2002 through June 2002. The Interim
Agreements provide that if these payments are less than the payments provided for in this
Agreement, Exempla will pay the difference to the City. Accordingly, Exempla will pay to the
City $3,222 upon execution of this Agreement, which will compensate the City for the difference
between the payments made pursuant to the Interim Agreements and the Monthly Payment set
forth in paragraph 1 (a) above.
2. Exemption
(a) Scope. The exemption from the Taxes contained in City Code section 22-
58(a)(25.5) shall apply to Exempla so long as this Agreement remains in effect.
(b) Private Physician Purchases Not Covered. The City and Exempla expressly
recognize that the exemption from the Taxes contained in City Code section 22-58(a)(25.5) does
not extend to purchases of medical supplies and medical equipment by, or for the use of,
physicians in the private, for profit practice of medicine.
3. Term and Termination
(a) Initial. The initial term of this Agreement (the "Initial Term") began on January
1, 2002 and will end on December 31, 2003.
(b) Automatic Renewal. This Agreement will automatically renew for successive
additional two-year terms ("Renewal Terms") upon the expiration of the Initial Term or any
Renewal Term unless the City or Exempla gives written notice to the other party of its intention
not to renew this Agreement during the final month of the Initial Term or a Renewal Term. If
~ notice of intent not to renew is timely given, then this Agreement shall terminate at the close of
the fmal month of the Initial Term or Renewal Term in which the notice of intent not to renew
is timely given.
(c) Loss of 50l(c)(3) Status. This Agreement shall terminate if Exempla receives a
final determination that it is no longer exempt from federal income tax pursuant to section 50 l(a)
of the Internal Revenue Code of 1986, as amended (the "Code"), by virtue of being an
organization described in section 50l(c)(3) of the Code.
NR2%71 v6
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(d) Merger of City. In the event that the City merges with another city, Exempla
shall have the option to terminate this Agreement effective on such merger date.
(e) Proration on Termination . In the event of a termination of this Agreement during
a calendar month, amounts payable by Exempla pursuant to the Agreement shall be prorated
based on the number of days during the calendar month the Agreement is in effect.
4. Tax Policy Decision
A determination by the City not to renew this Agreement pursuant to paragraph 3(b) shall
be considered a tax policy decision for the purposes of Article X, Section 20(4) of the Colorado
Constitution. Termination of this Agreement for any other reason, including without limitation a
determination not to renew by Exempla, shall not be considered a tax policy decision.
5. Authorization for Execution
(a) City. By executing this Agreement, the Mayor of the City represents that this
Agreement has been duly approved by the Wheat Ridge City Council and by all other procedures
necessary to cause this Agreement to be binding on the City, that she has authority to execute
this Agreement on behalf of the City and that by executing this Agreement she makes this
Agreement binding on the City.
(b) Exempla. By executing this Agreement, the person signing this Agreement on
behalf of Exempla represents that this Agreement has been duly approved by all corporate action
necessary to cause this Agreement to be binding on Exempla, that he or she has authority to
execute this Agreement on behalf of Exempla and that by executing this Agreement he or she
makes this Agreement binding on Exempla.
6. Miscellaneous
(a) Subject to paragraph 3(d) above, the rights and obligations of the parties pursuant
to this Agreement shall be binding upon and inure to the benefit of the parties and their
respective successors and assigns.
(b) This Agreement shall be governed by and construed in accordance with the laws
of the State of Colorado, without regard to the choice oflaw rules of that state.
(c) This Agreement may be amended only by a writing specifically referring to this
Agreement and signed by both parties.
(d) The paragraph headings in this Agreement are for convenience of reference only
and shall not affect the meaning or interpretation of this Agreement.
(e) Notices given pursuant to this Agreement shall be effective only if hand-delivered
or delivered by United States mail, postage prepaid, return receipt requested, in either case
addressed as follows:
fl82567l v6
for notices to Exempla:
with a copy to:
for notices to the City:
with a copy to:
ChiefFinancial Officer
Exempla, Inc.
600 Grant St., Suite 700
Denver, CO 80203
General Counsel
Exempla, Inc .
600 Grant St., Suite 700
Denver, CO 80203
Mayor
City of Wheat Ridge
7500 West 29th Ave.
Wheat Ridge CO 80033
The duly appointed
City Attorney.
A notice shall be deemed given on the date that it is received at the addresses provided. Either
party may give notice to the other party from time to time in the foregoing manner changing the
address to which notices to that party should be sent.
7. Dismissal of pending litigation.
Immediately after this Agreement has been fully executed, the parties will enter into and
file a joint stipulation to dismiss with prejudice the civil action currently pending in the Jefferson
County District Court under the name of Traylor, et al., v. The City of Wheat Ridge, et al., Civil
Action No . 90 CV 1352, with each party to bear his, her or its own attorneys fees and costs. In
the event the court does not dismiss said action pursuant to the stipulation, this Agreement shall
be void ab initio.
#825671 v6
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To verify the foregoing, the City and Exempla have executed this Agreement on the dates
indicated below.
David Williamson (#8530)
Counsel to the City
Approved as to form:
es D. Butler (#6325)
sel to Exempla
#825671 v6
EXEMPLA, INC.
F iii ac ·ty C"ty I oun c ty p
St. Anthony North Hospital Westminster Adams
Littleton Adventist Ho~tal Littleton Arapahoe
A vista Adventist Hospital Louisville Boulder
Porter Adventist Hospital Denver Denver
St. Anthony Central Hospital Denver Denver
Pai'Ker Adventist Hospital Pai'Ker Douglas
Penrose Community Hospital Colorado Springs El Paso
Penrose Hospital Colorado S_prings El Paso
St. Francis Health Center Colorado Springs EIPaso
St. Thomas Moore Hospita(1l Canon City Fremont
St. Mary Corwin Medical Center Pueblo Pueblo
Summit Medical Center Frisco Summit
(1) Wellness Center Under Construction : Non-Exempt
Attachment 2
T roperty ax
Exempt
Exempt
Exempt
Exempt
Exempt
Exem_pJ
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
aes se ax
State
Sl &U T
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
Non-Exempt
s se ax
City
Sale & U T
Non-Exempt
Exempt
(Except Bldg Use)
ExemQt
Exempt
(Except Bldg Use)
Exempt
(Except Bldg Use)
Exempt
Exempt
Exempt
Exempt
Exempt
Exempt
Non-Exempt
(But They Don't
Have a Use Tax)
~ ~ 4'
.... ~ r-City of • ~Wheat&__dge ~ADMINISTRATIVE SERVICES
Memorandum
TO: City Council
THROUGH: Patrick Goff
FROM: Nathan Mosley, Management Analyst
DATE: August 1, 2011
SUBJECT: USA Pro Cycling Challenge
ISSUE:
On Sunday August 28, 2011 the USA Pro Cycling Challenge will travel from Golden to Denver.
As part of the route the race will pass through Wheat Ridge. The event will require a full curb to
curb closure of the race route. This closure will affect all north-south routes that dissect the race
course through Wheat Ridge in addition to the race course itself.
FINANCIAL IMPACT:
Currently the race organizer has agreed to pay $2000 to help offset costs incurred during the
race. Approximately $1500 will be used to pay overtime to Police Officers and the remainder
will be used to cover overtime for Public Works employees and to purchase additional cones
needed for the event. Other costs could be incurred depending on the level of involvement that
the City would like to do above and beyond the minimum necessary to provide a safe route for
the racers. Any additional financial impacts should be identified by mid-August and will be
brought to Council for consideration.
BACKGROUND:
This August 22"a through 28 1h the State of Colorado will play host to the USA Pro Cycling
Challenge. The world's top professional cyclists will compete in a seven day, 518 mile race over
one of the highest altitude courses ever created. This event will be covered internationally on
Versus and NBC.
On Sunday August 28, the sixth and final stage of the race, cyclists will be racing from Golden,
up Lookout Mountain, through the western metro area and finishing at the Capitol. As part of
the route the racers will be traveling through the City of Wheat Ridge. We are considered a
"pass through" City in terms of the race route. Colorado State Patrol (CSP) and Colorado
Department of Transportation (COOT) are coordinating the majority of the race route since it
will occur on State roads. As a "pass through" City, Wheat Ridge will be responsible for
coordinating logistics for the race within our boundaries. The race organizers are offering to pay
approximately $2000 to help offset the costs we will incur regarding the race. Although the
amount of time the racers will be in Wheat Ridge is fairly limited, the event will still require a
significant amount of planning and resources to ensure the event passes through as safely as
USA Pro Cycling Challenge
August 1, 2011
Page2
possible and with as little negative impact to the community as possible.
Based on information from the event organizer the racers will enter the City of Wheat Ridge
around noon and then will be out ofthe City within 15 minutes. Because of the swift nature of
the event, our plan is to do a static or complete closure of the race course 30 minutes before the
race will pass through Wheat Ridge. We will continue to allow north-south travel across the
course until 15 minutes before the riders come through. This should minimize the amount of
traffic congestion associated with the event. As part of the operation plan the City will have a
total of 20 police officers dedicated to this event as well as 45 to 50 volunteers to help with
traffic control.
In order to effectively execute the operation plan we will be using several different media
platforms to provide information regarding road closures and general race information to the
public. Some things like the use of reverse 911, website updates, newsletters, WRTV 8 and
flyers to residents can be absorbed in current budgets. Paid advertising and large variable
message boards could also be used at an additional expense if deemed necessary.
Staff will be meeting on a weekly basis until the race occurs to make sure all aspects ofthe event
are covered . We will provide Council with regular updates prior to the event as well as a recap.
Council Direction Request:
Because of the broad impact ofthis event and its relative short time span, staff would like
Council direction on a couple items that would require additional staff time or expenditures.
Marketing-This event will be carried on live international TV. As a "pass through" City we
will only be able to take advantage of the 12 to 15 minutes the riders will be traveling through
Wheat Ridge. In order to market Wheat Ridge during the race we could provide banners along
the route or create an aerial display that would be visible from the helicopter cameras. Both the
display and the banner would require the allocation of additional funds ranging from $500 to
$2,500.
ROW Maintenance-In order to present Wheat Ridge in the most positive light possible we
could do additional maintenance and cleaning of the rights-of-way along the race route. Some of
this work could be done by City staff but most would require additional funds for contractual
services.
Closure Notification-There will be road closures throughout Wheat Ridge for this event.
Although the closures will be for a short amount of time the City could provide variable message
signs in key locations starting the Friday before the race to inform residents and commuters of
the event and alternative routes. Paid advertising in the Transcript could be used to supplement
notification to residents. Costs for additional notification could be in the thousands of dollars.
If additional needs are identified during the upcoming meetings then those will be brought to
Council for consideration.
USA Pro Cycling Challenge
August 1, 2011
Page 3
Attachments:
1. USA Pro Cycling Challenge Stage 6 Course Map
2. Aerial promotional display
,. .. ..
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Stage&
Golden to Denver
Sunday, August 28 , 2011
Start Time: TBD
Total Distance: 0.0 mi./0 .0 km
Finish ETA: TBD
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Attachment 2