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HomeMy WebLinkAbout09-21-2026 Study Session Agenda PacketSTUDY SESSION AGENDA CITY COUNCIL MEETING CITY OF WHEAT RIDGE, COLORADO Monday, September 21, 2026 6:30 p.m. This meeting will be conducted as a virtual meeting, and in person, at: 7500 West 29th Avenue, Municipal Building, Council Chambers. City Council members and City staff members will be physically present at the Municipal building for this meeting. The public may participate in these ways: 1. Attend the meeting in person at City Hall. Use the appropriate roster to sign up to speak upon arrival. 2. Provide comments in advance at www.wheatridgespeaks.org (comment by noon on September 21, 2026) 3. Virtually attend and participate in the meeting through a device or phone: Click here to pre-register and provide public comment by Zoom (You must preregister before 5:00 p.m. on September 21, 2026) 4. View the meeting live or later at www.wheatridgespeaks.org, Channel 8, or YouTube Live at https://www.ci.wheatridge.co.us/view Individuals with disabilities are encouraged to participate in all public meetings sponsored by the City of Wheat Ridge. The City will upon request, provide auxiliary aids and services leading to effective communication for people with disabilities, including qualified sign language interpreters, assistive listening devices, documents in Braille, and other ways of making communications accessible to people who have speech, hearing, or vision impairments. To request auxiliary aid, service for effective communication, or document in a different format, please use this form or contact ADA Coordinator, (Kelly McLaughlin at ada@ci.wheatridge.co.us or 303-235-2885) as soon as possible, preferably 7 days before the activity or event. Public Comment on Agenda Items 1. Election Integrity and Election Security – 2026 Election 2. Housing Updates 3. 2J Bond Budget Realignment to Accommodate West 38th Utility Undergrounding Project 4. Staff Report(s) 5. Elected Officials’ Report(s) ITEM NO.1 Memorandum TO: Mayor and City Council FROM: Patrick Goff, City Manager Eric Kellogg, Division Chief DATE: September 21, 2026 SUBJECT: Election Integrity and Election Security – 2026 General Election ISSUE: The purpose of this study session is to provide City Council with an overview of election integrity and election security measures for the 2026 General Election, including: • The legal protections applicable to voters and election workers; • Prohibited conduct and voter-intimidation laws; • Restrictions concerning firearms and election locations; • The respective roles of Jefferson County Elections and local law enforcement; • Wheat Ridge Police Department's training and operational preparations; and • Protocols for responding to potential election-related incidents, including the potential presence of federal law enforcement. The City of Wheat Ridge does not administer elections. Jefferson County Elections is responsible for administering elections within the County, including voting centers, ballot drop boxes, ballot processing, and election administration. The City's role is primarily to provide public safety and law-enforcement support when requested or when circumstances require a law-enforcement response. BACKGROUND: Jefferson County Elections has been coordinating with local law-enforcement agencies in preparation for the November 3, 2026, General Election. The County has provided law-enforcement agencies with election guidance and is requesting specific patrol and response support during the election period. Colorado law provides specific protections intended to ensure that voters can participate in elections free from intimidation, threats, interference, or coercion. Colorado also establishes restrictions on firearms at and around election locations. The Secretary of State's voter-rights guidance identifies voter intimidation as illegal and emphasizes that voters have the right to cast a ballot without interference. Colorado law also prohibits carrying firearms within voting locations and within specified areas surrounding ballot drop boxes and election facilities. In 2025, Colorado enacted the Freedom from Intimidation in Elections Act, which further prohibits intimidation, threats, or coercion directed at individuals who are voting, assisting others with voting, administering elections, or who have participated in election administration. The law also establishes a presumption of intimidation in certain circumstances involving visible firearms or imitation firearms, subject to statutory exceptions. VOTER INTIMIDATION Examples of conduct that may constitute voter intimidation or unlawful interference include: • Blocking or interfering with a person's access to a voting location or ballot drop box; • Confronting or threatening voters or election workers; • Shouting, harassment, threats, or coercive conduct; • Interfering with an individual's ability to cast a ballot; • Attempting to discourage or prevent an individual from voting; and • Certain conduct involving firearms or imitation firearms. The Colorado Secretary of State specifically advises voters that election watchers and members of the public may not interfere with a voter casting a ballot, and that voters are not required to answer questions about their registration status or how they voted. Colorado's 2025 Freedom from Intimidation in Elections Act also protects individuals involved in election administration, including vote counting, canvassing, and election certification. FIREARMS AT ELECTION LOCATIONS Current state law prohibits carrying a firearm, subject to statutory exceptions, at polling locations and central count facilities and within 100 feet of ballot drop boxes and buildings containing polling or central count facilities. The restrictions were expanded in 2024 to prohibit carrying a firearm in any manner at specified election locations and within the applicable 100-foot areas. Statutory exceptions include circumstances involving law-enforcement officers acting within the scope and authority of their duties and certain uniformed security personnel acting within the scope of their authorized duties. 100-FOOT ELECTION BUFFER Electioneering and certain election-related activities are restricted within the applicable 100-foot area. Colorado's election statutes also address voter interference within 100 feet of a polling or drop-off location or ballot drop box. Wheat Ridge Police Department personnel are being briefed on these requirements so officers understand the distinction between lawful election-related activity and conduct that may constitute a violation of state law. ROLE OF ELECTION WORKERS AND LAW ENFORCEMENT Election workers are the primary personnel responsible for managing election locations and enforcing election procedures. In general, law enforcement officers should not be routinely stationed inside election facilities or otherwise interfere with the normal administration of elections. Election workers are trained to: • Explain and enforce election rules; • Address routine violations; • De-escalate tense situations; • Request assistance when a situation exceeds their authority or training; and • Contact law enforcement when there is a public-safety concern or potential criminal violation. The role of local law enforcement is therefore principally to provide public safety, emergency response, and assistance when requested, while respecting the authority and responsibilities of election officials. WHEAT RIDGE POLICE DEPARTMENT PREPARATION The Wheat Ridge Police Department has distributed Jefferson County Elections' election guidance materials (attached) to sworn personnel and is incorporating election- specific information into department briefings. Training and refresher briefings include: • Electioneering laws and the 100-foot buffer surrounding voting locations and ballot drop boxes; • Firearm restrictions at and near election locations; • Voter intimidation and enhanced protections for voters and election workers; • Requirements governing election watchers; • Appropriate response and removal procedures for interference or rule violations; • Voting-center operating hours and ballot-drop-box procedures; • De-escalation and situational-awareness expectations; and • Appropriate law-enforcement response to election-related calls. Based on Jefferson County's requests and the Police Department's assessment of potential needs, Wheat Ridge Police Department is preparing for the following: 1. Ballot Drop Box Checks From October 5 through November 2, officers will conduct a daily drive-by of ballot drop boxes within the Wheat Ridge patrol area and visually check for damage, vandalism, or other apparent concerns. 2. Voting Center Checks From October 19 through November 3, officers will conduct daily walkthroughs of voting centers within the Wheat Ridge patrol area during voting hours, Monday through Friday. These contacts are intended to be unobtrusive and supportive rather than disruptive to election operations. 3. Election Day Presence On November 3, officers will conduct walkthroughs of voting centers during voting hours and will be prepared for an expedited response to calls for assistance. At the County's request, officers will also be positioned near ballot drop-box locations during the period surrounding the 7:00 p.m. election-day deadline to provide public-safety support as ballots are secured and transported. 4. Threat Assessments The Police Department will conduct threat assessments of election locations in advance of Election Day, considering location-specific risk factors, traffic patterns, prior incidents, and other relevant information. 5. Contingency Staffing If an incident involving voter agitation, intimidation, threats to election workers, or another public-safety concern occurs, the Police Department will use available resources, including overtime staffing and specialized units when appropriate, to provide an immediate response and stabilize the situation. FEDERAL LAW ENFORCEMENT Jefferson County does not currently anticipate a federal law-enforcement presence at election locations during the 2026 General Election. County election officials are nevertheless preparing protocols for the possibility that federal law-enforcement personnel, or individuals purporting to be federal law enforcement, may appear at an election location. The County's protocol distinguishes between individuals who establish lawful authority to be present and individuals who cannot establish such authority. If federal agents present appropriate identification and documentation establishing lawful authority: 1. Election workers will contact the election leadership team; 2. County election leadership will notify appropriate authorities and legal counsel; and 3. Local law enforcement would generally not be requested unless there is a voter or staff safety concern. If individuals claiming to be federal agents cannot establish legal authority to be present or refuse to provide documentation necessary to establish their authority: 1. Election workers will contact 911 and request local law enforcement assistance in determining the circumstances; 2. Election workers will contact County election leadership; and 3. County election leadership will coordinate with appropriate authorities and legal counsel. This approach recognizes that the presence of law enforcement at an election location does not, by itself, establish authority to conduct activity within the location. Election officials will coordinate with appropriate authorities to determine the applicable legal requirements. CONCLUSION Wheat Ridge Police Department has been coordinating with Jefferson County Elections and preparing personnel for the 2026 General Election. The City's objective is to provide a calm, professional, and appropriately scaled public-safety response while allowing election officials to administer the election and voters to exercise their rights without unlawful interference or intimidation. Staff will continue to coordinate with Jefferson County Elections and will adjust operational preparations as additional information or circumstances warrant. ATTACHMENT: 1. 2026 SPRI Jefferson County LEO Quick Guide QUICK GUIDE For Law Enforcement Coordination Roles •Elections staff: contact law enforcement for voter intimidation, safety threats, traffic issues, etc •Jefferson County Sheriff’s Office: coordinate major incidents, such as bomb threats •Local law enforcement: respond to issues at drop box locations and vote centers in that jurisdiction Electioneering Law(s): C.R.S. § 1-6-114, 1-13-714, 1-13-724, 1-5-105 Penalty: Class 2 Misdemeanor �� Not Allowed: Electioneering within 100 feet of a drop box or Voter Service and Polling Center •Campaigning, wearing campaign apparel, displaying signs, collecting signatures �� Allowed: •“Comfort teams” may offer snacks or water •Electioneering outside the 100-foot buffer zone Firearms Law(s): C.R.S. § 1-13-724 Penalty: Unclassified Misdemeanor �� Not Allowed: Open or concealed carry within: •Voter Service & Polling Centers (VSPCs) •Central count facilities •Within 100 feet of ballot drop boxes or buildings where VSPCs/count sites are located �� Allowed: Only for: •Law enforcement, peace officers or uniformed security guards •Individuals on their own private property within the buffer zone Voter Intimidation Laws Law(s): C.R.S. § 1-13-713 Penalty: Class 1 Misdemeanor �� Not Allowed: Interfering with a voter's right to vote or intimidating election workers, including: •Blocking access to vote •Asking for ID or questioning eligibility •Confronting voters •Displaying firearms or imitation firearms •Shouting, threats, harassment Enhanced Intimidation Protections Law(s): C.R.S. § 1-13-726 Penalty: Class 1 Misdemeanor Displaying a firearm or imitation firearm near voters or election staff is now presumed intimidation, unless proven otherwise. This includes voter registration and all forms of ballot casting as protected activities. Law(s): C.R.S. § 1-13-708 Penalty: Class 5 Felony �� Not Allowed: •Unauthorized access/tampering with systems •Sharing confidential info like passwords NEW STATE PRIMARY JUNE 2026 ATTACHMENT 1 Protecting Elections & Officials Law(s): C.R.S. § 1-13-701 Penalty: Class 2 Misdemeanor �� Not Allowed: • Obstructing, intimidating, coercing, or threatening election officials • Influencing or preventing them from doing their duties Voter Challenges Law(s): C.R.S. § 1-9-201-203 and 209 Must be: • Written and signed under oath • Made in person, using a specific form • Based only on: citizenship, age, residency, or property ownership in a special district • All unresolved challenges go to the District Attorney Election Watchers Watchers are officially appointed by parties, candidates, or issue committees to observe election activities—but must follow strict rules. �� Not Allowed: • Interfere with voting or election processes • Touch ballots, machines, or voter records • Use phones for video, photo, or audio • Get within 6 feet of voters or voting equipment • Watch voter check-in, record any voter- identifying info or how someone voted • Disclose any results before polls close � Disqualification/Removal Triggers: • Interruption or repeated unauthorized challenges • Handling election materials • Breaking their oath, being abusive, or violating election laws and rules Ballot Drop Boxes: • Open: Friday, June 5, 2026 • Close: Tuesday, June 30 at 7 p.m. sharp • Voters in line at 7 p.m. can still vote; late arrival ballots collected but not counted Voter Service and Polling Centers: • Stage 1 (5 locations): June 22–30 Weekdays 8 a.m.–5 p.m., Sat 9 a.m.–1 p.m., June 30: 7 a.m.–7 p.m. • Stage 2 (1 location): June 29-30 only June 29: 8 a.m.-5 p.m., June 30: 7 a.m.-7 p.m. • Contingency: If a VSPC closes unexpectedly, a backup will open at Arvada City Hall Traffic & Safety Alerts: • Expect increased traffic at busy sites—plan accordingly for peak times Key Dates • May 15 – Military ballots mailed • June 5 – Drop boxes open • June 8 – Local ballots mailed • June 30 – Election Day • Post-election audit and certification due by late July ITEM NO. 2 Memorandum TO: Mayor and City Council THROUGH: Patrick Goff, City Manager FROM: Shannon Terrell, Senior Housing Planner Jana Easley, Planning Manager Lauren Mikulak, Community Development Director DATE: September 21, 2026 SUBJECT: Housing Updates ISSUE: The purpose of this agenda item is to present an update on the city’s housing-related programs, policies, and partnerships. This includes an overview of accomplishments to date, current initiatives, and planned work over the next two to three years. Council is also being asked to provide direction on Proposition 123, assignment of the city’s right of first refusal/offer, and the future role of the Wheat Ridge Housing Authority. This memo is organized as follows: Part 1 - Informational Housing Updates • Affordable Housing Strategy Overview • Projects and Accomplishments • Policies in Progress • Housing Fund Part 2 - Discussion Items Requiring Direction • Proposition 123 • Reassessing the Role of the Wheat Ridge Housing Authority • Assignment of the City’s Right of First Offer/Refusal PART 1 – HOUSING UPDATES Affordable Housing Strategy Overview The city’s Affordable Housing Strategy and Action Plan (AHS), adopted in January 2023, established a foundation for the city’s housing policy and program work. Since adoption of the plan,resources andmade significant progress in establishing the capacity needed to advance housing affordability, including creating a dedicated Housing Fund and staff position, committing to Proposition 123, supporting affordable housing development September 21, 2026 Page 2 through financial and land resources, and updating zoning regulations to expand housing opportunities. This work has positioned the city to pursue and secure significant outside funding. Since 2025, the city has received approximately $10 million in state and federal grant funding to support the preservation and creation of affordable housing, public improvements, design and permitting costs, and housing-supportive code amendments. Most of this funding was awarded in 2026 alone. This work will directly support the preservation of potentially 56 units of naturally occurring affordable housing (NOAH) and support the development of approximately 350 new affordable units in Wheat Ridge, including projects at Lutheran Legacy Campus, Ridge Road, the Ives Campus, and Archway. Together, these investments have created a foundation for the city’s housing work over the next several years. They also provide an opportunity to establish longer-term policies and programs that can continue beyond the current grant funding. Staff anticipate a formal update to the AHS in 2027. The passage of Senate Bill 24-174, Sustainable Affordable Housing Assistance, created more requirements and guidelines for jurisdictions in relation to housing needs assessment and housing action plans. In August of 2025, Council made the decision to participate in DRCOG’s regional housing needs assessment, which allowed the city to comply with the housing needs assessment portion of SB 24-174. The Colorado Department of Local Affairs (DOLA) completed a review of the AHS for compliance with the secondary component, Housing Action Plans, and found the AHS needed to add a few more elements to fully comply. Staff has evaluated DOLA’s feedback and are preparing an addendum to the AHS and will present that to Council in the spring or summer of 2027. Compliance keeps the city competitive for future grant funds. Projects and Accomplishments Over the past year, the city has supported affordable housing development through a combination of direct financial assistance, development review, infrastructure investment, and grant administration. • Supporting the acquisition of Fruitdale School Lofts: In 2025, Council approved the allocation of a $2 million federal grant to Foothills Regional Housing to acquire Fruitdale School Lofts. Staff have been supporting the seller and Foothills in navigating the federal grant and environmental process, with closing anticipated to occur in mid-October. This preserves the long-term affordability of 16 units. • Expediting the development review process for Ives II: Staff successfully implemented and piloted an expedited review process for Ives II, which is under construction and adds 98 affordable units. Staff completed site plan review September 21, 2026 Page 3 within 66 days, engineering review in 77 days, and building permit review in 36 days. Due to early implementation, the city was eligible to receive $50,000 from the DOLA, which is funding the Linkage Fee Nexus Study. • Supporting public infrastructure for the Ridge Road Master Plan: The city was awarded $4.5 million in state grant funding from DOLA to support Foothills in the construction of public improvements for the Ridge Road Master Plan, which will include 200 units of affordable housing for families and seniors, and include a new nursing facility for Red Rocks Community College. The city was eligible for this grant due to its work in implementing House Bill 24-1313, Housing in Transit- Oriented Communities, and was the first jurisdiction to be certified. In addition to the infrastructure investment, the city will support development of the affordable units through additional grant-funded rebates for plan review fees, use tax, and eligible soft costs of design work. • Supporting the acquisition of the Lutheran Legacy Affordable: The city submitted an application to the Proposition 123 Land Banking Grant Program on behalf of the MGL Partners to support the development of 50 units of affordable housing for seniors. Similar to Ridge Road, the city will provide additional support through grant-funded rebates for plan review fees, use tax, and eligible soft costs. Policies in Progress While grant funding is supporting current development projects, the city is also working on policies that will shape housing development and Housing Fund programming in the longer term. Two major efforts underway are the housing impact linkage fee nexus study and a zoning code audit paired with housing-supportive code amendments. Housing Impact Linkage Fee In August, the city hired Economic & Planning Systems, Inc. (EPS) to complete a nexus study for a potential housing impact linkage fee. The study will continue the city’s work toward developing an inclusionary housing ordinance while also evaluating a potential secondary revenue source for the Housing Fund. The study will evaluate both residential and non-residential development to determine whether a new housing impact fee can be legally supported by a demonstrated nexus between new development and the need for affordable housing. EPS officially kicked off the project at the end of August, and the analysis is expected to take approximately four to six months. Once the initial analysis is complete, staff will bring the findings to Council in early 2027 to discuss potential next steps, including whether to pursue an ordinance and adopt a fee. If Council ultimately chooses to move forward, Council would also need to determine the appropriate fee amount and the uses for the revenue generated. The September 21, 2026 Page 4 nexus study is therefore an important step not only in determining whether a linkage fee is legally and technically feasible, but also in helping the city identify a secondary revenue use to determine how the Housing Fund will grow and expand over time. Zoning Code Audit and Potential Code Amendments Both the AHS (2023) and the City Plan (2025) call for a zoning code audit to identify barriers to residential and commercial development. The city received funding through the Colorado Energy Office (CEO) Local Implementation, Mitigation, and Policy Action (IMPACT) Accelerator Grant to complete this work. The housing-related work being proposed includes: • The creation of a Residential (R-4) zone district, which is intended to provide a missing-middle housing option that fits within the existing community character and provides a transition in scale between the existing Residential-Three (R-3) district and Mixed-Use districts. It would also provide an alternative to the Planned Residential Development (PRD) process for projects larger than one acre by establishing development standards that are appropriately calibrated to the surrounding neighborhood context. • Exploring a “no net loss” strategy, or preservation zoning strategy, intended to preserve the number of existing housing units when a residential property redevelops. While redevelopment that results in fewer units is not expected to occur frequently, a one-for-one replacement policy could help prevent the loss of existing housing units over time. • Evaluating the zoning standards for existing residential zone districts by reviewing lot size and lot width requirements and aligning the City Plan’s Place Types with existing zoning standards. The city is in the process of hiring a consultant to complete the zoning code audit. The contract award is expected to occur next month. Once the audit is complete in early 2027, the consultant will present the findings to Council for direction, after which staff will lead the development and adoption of any recommended code amendments. Housing Fund The Housing Fund was created in 2023 as a dedicated fund to receive, hold, and deploy financial resources specifically in support of affordable housing activities. Based on Council policy, it is currently supported by a portion of the city’s short-term rental tax revenue (approximately $360,000 annually), which is sufficient to sustain a full-time housing staff position and provide the local match for the grants the city has received. In addition to these ongoing revenues, the city will receive a one-time $1M contribution from the Aura apartment development (formerly the American Motel), which was September 21, 2026 Page 5 negotiated by Renewal Wheat Ridge (Urban Renewal Authority, or URA) as part of their tax increment financing agreement. The approximately $10 million in grant funding received in 2026 has significantly expanded the city’s near-term ability to invest in housing and created a framework for Housing Fund programming over the next two to three years. These funds will support a range of housing activities, including NOAH acquisition, public infrastructure, gap financing, and policy work. As part of this grant funding, staff allocated approximately $2.45 million from the Colorado Energy Office (CEO) Local IMPACT Accelerator Grant. The grant guidelines allow for three rebate programs designed to reduce development costs and support housing production: • Accessory Dwelling Units (ADUs): Rebates for a portion of eligible building plan review and permit fees. • Multifamily housing: Rebates for eligible plan review fees and use tax, including for affordable housing projects. • Affordable housing soft costs: Rebates for eligible design, engineering, and other project-related soft costs. These programs are intended to provide near-term financial assistance to qualifying development projects and will remain available through April 2029, when the grant funding expires. The city’s approach to housing funding is guided by the Housing Strategy, which identifies pursuing grants and other outside funding opportunities as a key implementation strategy. Grant funding has been, and is expected to remain, the city’s largest source of housing investment. The approximately $10 million secured in 2026 has provided substantially more funding than could be generated through the city’s ongoing local revenue sources and is currently supporting specific programs and projects identified through those grant awards. Staff will continue to aggressively pursue grant opportunities as they become available. The city is also evaluating potential long-term local revenue sources for housing. The city previously evaluated inclusionary zoning and determined not to pursue an ordinance at this time. The current nexus study will evaluate whether a housing impact fee could provide a feasible supplemental revenue source. If Council ultimately elects to pursue such a fee, it would provide periodic additional funding rather than replace the city’s ongoing or grant-funded housing resources. As the city’s current grant funding is programmed for specific purposes, there is not currently a significant pool of flexible Housing Fund revenue available for new programming ideas. If additional flexible funds become available or the city anticipates September 21, 2026 Page 6 a meaningful new source of unrestricted housing revenue, staff will return to Council to discuss priorities and options for programming those funds. In the meantime, staff’s focus is on implementing the programs already funded, pursuing additional grant opportunities, evaluating an impact fee, and completing the policy work identified in the Housing Strategy to position the city for future housing investments. PART 2 – DISCUSSION ITEMS Proposition 123 Commitment Status In 2023, the city participated in Proposition 123 by committing to increase the number of affordable housing units in the community by 3 percent annually, resulting in a total commitment of 218 units during the first three-year cycle. The first Proposition 123 cycle ends this year, and the city currently has 43 eligible units, with a deficit of 175 units needed to comply. Fortunately, changes to state law and regional partnerships will help fill this deficit. Changes to State Law In 2026, the State Legislature adopted changes to Proposition 123 through House Bill 26-1313. These changes include: • New calculation for unit goals: Jurisdictions may meet their commitment using a new calculation based on the number of housing units permitted annually and the county’s annual job growth rate, rather than solely increasing the baseline number of affordable units by 3 percent. • Good Faith Effort Waiver: Jurisdictions that are unable to meet their commitment but can demonstrate that they have made a good faith effort to advance the goals of Proposition 123 may apply for a waiver to remain eligible for the second cycle. • Unit Goal Adjustment Waiver: Jurisdictions may request an adjustment to their annual unit increase based on verifiable data. These changes provide an opportunity for the city to remain eligible for the second Proposition 123 funding cycle even though it will not meet its original 218-unit commitment. The city intends to pursue the Good Faith Effort Waiver and will document the actions it has taken to advance affordable housing, including implementing a fast-track development review policy verified by DOLA and receiving technical assistance from the Proposition 123 team. Regional Partnerships In addition to state legislative changes, the city has been working with Jefferson County and other municipalities on an agreement that would allow jurisdictions with a surplus of eligible units to share those units with Wheat Ridge. This regional approach would September 21, 2026 Page 7 allow Wheat Ridge to meet the requirements necessary to remain eligible for the second funding cycle. The proposed intergovernmental agreement (IGA) would: • Allow Wheat Ridge to receive surplus affordable housing units from other cities and Jefferson County; • Establish the unit-sharing Memorandum of Understanding (MOU) required by DOLA; and • Establish a commitment among the participating jurisdictions to continue implementing initiatives that advance affordable housing. The agreement has been drafted and will be presented to Council on September 28. Recommendation and Next Steps Staff recommend that Council continue the city’s participation in Proposition 123, because it has qualified the city and Foothills Regional Housing to receive over $3 million in grant funds in the last 3 years. If Council agrees, then on September 28, staff will return to Council with the unit-sharing intergovernmental agreement and the city’s second-cycle Proposition 123 commitment. Council approval of these items will allow staff to proceed with the following sequence: 1. Execute the Jefferson County Unit Sharing IGA; 2. Allow participating jurisdictions to enter into the required Unit Sharing MOUs so Wheat Ridge can secure sufficient eligible units for the first commitment cycle; 3. Submit the Good Faith Effort Waiver to DOLA for the first commitment cycle; and 4. File the city’s commitment for the second Proposition 123 funding cycle. Reassessing the Role of the Wheat Ridge Housing Authority Background The Wheat Ridge Housing Authority (WRHA) was established by City Council in 2001 to expand the city’s ability to support affordable housing, particularly through grant-funded housing rehabilitation and homeownership programs. At the time, the Authority provided a structure through which the city could access outside funding and partner with other housing organizations to acquire, rehabilitate, and resell homes to income- qualified households. Unlike traditional housing authorities, WRHA has never owned, operated, or developed housing. It has no dedicated staff and no ongoing revenue stream. It has historically relied on city staff support, partnerships with Foothills Regional Housing, and grant funding to carry out its work. Over its 25-year history, WRHA has made a meaningful and lasting contribution to the city’s housing landscape. The Authority acquired, rehabilitated, and resold 50 dwelling units, including 33 condominium units, 6 duplex units, and 11 single-unit homes to September 21, 2026 Page 8 income-qualified households. WRHA also played a pivotal role in the redevelopment of the Fruitdale School, resulting in 16 affordable apartment units and the preservation of a historic community landmark. These accomplishments reflect years of dedicated work to expand housing opportunity, stabilize neighborhoods, and support residents with limited incomes. In the time since WRHA was established, the role and resources of the city have changed significantly. Changes in grant funding, the availability of other housing organizations and developers, and the city’s increasing capacity to directly administer housing programs have further reduced the need for a separate housing authority. After two strategic planning sessions and the conclusion of the Fruitdale School Lofts redevelopment, the WRHA Board formally placed the Authority in dormant status in 2018 due to limited funding and staff resources. Since that time, the Board has generally met once each year to complete required administrative, budget, audit, and partnership-related matters. Current Status and Projects WRHA is currently a limited partner in three affordable housing ownership structures. These partnerships have provided a mechanism for the properties to receive property tax exemptions and support the long-term affordability of the developments. With the impending sale of Fruitdale School Lofts to Foothills Regional Housing (FRH), the Authority will have a limited partner role in two projects: Town Center and Town Center North Apartments. Although the Authority is dormant, its continued existence requires ongoing administrative work by city staff, including annual budget and audit requirements and maintenance of the Authority’s agreements. City staff also continue to receive housing- related inquiries and connect residents with appropriate resources, including the city’s housing navigation program, Foothills Regional Housing, United Way, and other regional housing partners. These services are provided through the city’s broader housing program and do not depend on the continued existence of WRHA. In recent years, the city has also developed substantially greater internal capacity to address housing issues. The city now has three dedicated housing staff (two navigators and a planner), a Housing Fund, an adopted Housing Strategy, established relationships with affordable housing developers and regional partners, and significant experience pursuing and administering outside funding. The city is increasingly able to address housing needs directly through policy, funding, partnerships, and grant programs rather than through a separate housing authority. The 2023 Affordable Housing Strategy anticipated this transition and specifically called for the city to reassess the role of WRHA and determine how its role should September 21, 2026 Page 9 complement the work of Foothills Regional Housing and the city’s emerging housing capacity. Recommendation and Next Steps Staff recommend that the city formally retire Wheat Ridge Housing Authority rather than maintain the Authority in dormant status. This recommendation does not represent a reduction in the city’s commitment to housing. Rather, it recognizes that the city’s role in housing has evolved. The city now has the staff expertise, funding mechanisms, policy framework, and partnerships necessary to advance its housing goals without maintaining a separate housing authority. Staff do not recommend creating a new housing-specific board or committee to replace WRHA. City Council has appropriately and effectively provided leadership on housing policy in recent years, and staff recommend continuing that approach rather than creating another volunteer body with limited ongoing business. In terms of timing, the remaining Fruitdale-related actions are expected to occur in October, including the planned forgiveness of WRHA’s outstanding loan and the sale to FRH to ensure the project’s long-term affordability. This provides an appropriate point at which to conclude the Authority’s role and recognize the significant contribution WRHA has made to housing in Wheat Ridge over the past 25 years. If Council supports retiring WRHA, staff will work with the City Attorney’s Office to prepare a resolution addressing the Authority’s outstanding responsibilities and assets. This will include ensuring that the Authority’s existing obligations and affordable housing partnerships are appropriately assumed or transferred. Any remaining unobligated Authority funds could be transferred to the city’s Housing Fund for housing purposes. Assignment of the City’s Right of First Refusal/Right of First Offer Background In 2024, the Colorado legislature established a statewide Right of First Refusal (ROFR) and Right of First Offer (ROFO) allowing the opportunity for local governments to purchase certain multifamily properties for the purpose of preserving or creating long- term affordable housing. The law also allows a local government to assign these rights to a local or regional housing authority. Colorado’s ROFR and ROFO apply to different types of multifamily properties. The ROFR applies to existing affordable housing with five or more units that are subject to recorded affordability restrictions. The ROFO applies more broadly to multi-unit rental September 21, 2026 Page 10 properties that are at least 30 years old and contain between 15 and 100 units, regardless of whether the property is currently income-restricted. Both ROFR and ROFO are currently scheduled to sunset on December 31, 2029. The city currently serves as the intermediary for these opportunities in Wheat Ridge. When a qualifying property is subject to a ROFR or ROFO notice, city staff must receive and process the notice, evaluate whether the city intends to preserve or waive its rights, and coordinate with potential affordable housing partners. There are strict timelines for these actions in state statute, and this structure has added an additional step to transactions that are ultimately intended to be pursued by an affordable housing organization. Foothills Regional Housing is the regional housing authority serving Wheat Ridge and has the expertise and capacity to evaluate and pursue affordable housing preservation opportunities. In fact, FRH has already submitted a Letter of Intent to purchase Paramount Gardens, a 40-unit apartment property for which the city received a ROFR notice and is working through the statutory steps to pursue that acquisition. Assigning the city’s ROFR and ROFO rights to FRH would allow these opportunities to move directly to the organization best positioned to evaluate and act on them. Recommendation and Next Steps Staff recommend that the city assign its ROFR and ROFO rights to Foothills Regional Housing. This would remove the city from the intermediary role in these transactions and allow FRH to directly receive, evaluate, and respond to qualifying opportunities in Wheat Ridge. If Council agrees, formal action would be advanced at a future meeting after coordination with the City Attorney’s Office and FRH. RECOMMENDATIONS/DISCUSSION ITEMS FOR COUNCIL: At the September 21, 2026, study session, Council will be asked to provide direction on the following items: 1. Does Council agree with staff’s recommendation regarding Prop 123 next steps, including direction for staff to pursue the Good Faith Effort Waiver, unit-sharing agreements with regional partners, and the submittal of a second-cycle Prop 123 commitment? 2. Does Council agree with staff’s recommendation to retire the Wheat Ridge Housing Authority including direction for staff to coordinate with the City Attorney’s Office to coordinate the transition and address the Authority’s remaining obligations, partnerships, and funds? September 21, 2026 Page 11 3. Does Council agree with staff’s recommendation to assign the city’s Right of First Refusal and Right of First Offer rights to Foothills Regional Housing, with staff to return with any necessary formal action to complete the assignment? ITEM NO. 3 Memorandum TO: Mayor and City Council FROM: Patrick Goff, City Manager DATE: August 24, 2026 SUBJECT: 2J Bond Budget Realignment to Accommodate West 38th Utility Undergrounding Project ISSUE: This memorandum provides an update on staff’s work to realign the 2J Bond Budget to accommodate approximately $7.0 million for utility undergrounding as part of the West 38th Avenue project, while maintaining as much of the Council-approved 2J investment program as possible and bringing the overall program within available resources. At Council’s direction, staff reviewed the 2J program on a project-by-project basis, considering commitments already made, grant funding, project readiness, community benefit, and the ability to defer or reduce projects without losing prior investments. BACKGROUND: The 2J Bond Budget currently includes investments in three primary areas: 1. Transportation corridors 2. Drainage and stormwater 3. Sidewalks and bicycle/multimodal improvements The West 38th Avenue project, from Youngfield Street to Kipling Street, is a significant 2J investment and is currently programmed at approximately $25.2 million. Staff has identified an additional $7.0 million needed to underground utilities as part of that project. The objective of the budget realignment is to incorporate the utility undergrounding without increasing the overall 2J program beyond available resources. Based on staff’s analysis, the revised program totals approximately $96.1 million, compared with approximately $96.1 million in currently identified project funds and grants. Staff used the following principles in developing the recommended realignment: 1. Protect the West 38th project and utility undergrounding. The undergrounding opportunity is most cost-effective if completed as part of the roadway project rather than pursued as a separate future project. 2. Protect projects that are already completed or substantially underway. 3. Protect grant-funded projects where possible. Reducing or eliminating projects with outside grant funding could result in the loss of significant non-2J resources. 4. Prioritize projects that address safety, mobility, drainage and critical infrastructure needs. 5. Defer or eliminate lower-priority projects before reducing major corridor or multimodal investments. 6. Maintain flexibility for future Council decisions. 7. Projects identified for reduction or deferral can be reconsidered in the future if additional funding becomes available. PROJECTS THAT WILL REMAIN IN THE PROGRAM 1. West 38th Avenue – Youngfield to Kipling The West 38th Avenue project remains a priority and will proceed with approximately $25.2 million currently programmed for the roadway project. In addition, staff recommend adding approximately $7.0 million for utility undergrounding, bringing the combined West 38th investment to approximately $32.2 million. This approach allows the City to coordinate the undergrounding with the roadway reconstruction and avoid significantly greater disruption and cost that could occur if undergrounding were pursued independently at a later date. 2. 38th Avenue Refresh The approximately $12.3 million 38th Avenue Refresh project from Wadsworth Boulevard to Sheridan Boulevard remains in the program. This project is currently under design. 3. Traffic Signal Improvements The 44th Avenue and Tabor Street traffic signal project, approximately $1.6 million, remains funded. The 44th Avenue HAWK signal improvements, approximately $890,000, also remain in the program. This project is grant funded. 4. Drainage Staff recommend maintaining the planned drainage investments, including: Emergency Storm Sewer Repair at approximately $3.6 million and Storm Sewer Prioritized Repairs/Corrections at approximately $1.8 million for a total cap of $5.4 million. $3.75 million of this work has already been completed between 2024 and 2026. The remaining projects address existing infrastructure needs and provide the City with the ability to respond to emergency and high-priority stormwater deficiencies until a Stormwater Utility is implemented. 5. Multimodal and Sidewalk Projects The following projects remain funded: • 35th Avenue Multimodal Improvements – approximately $6.75 million; grant funded • Tabor Street Multimodal Improvements – approximately $14.63 million; grant funded • Sidewalk Gap Construction – Round 1 – approximately $8.25 million – includes Dover Street, Parfet Street, I-70 Frontage Road and Harlan Street • Sidewalk Gap Construction – Round 2 – approximately $5.5 million after reduction; staff will continue to pursue a $1 million grant opportunity – includes Miller Street • ADA Transition Plan – $200,000, completed • 32nd Avenue Bike Lanes and Sidewalk/Trail – $50,000 for design only The Round 2 sidewalk program represents a significant adjustment from the original plan. Staff recommend reducing this program by approximately $9.25 million, while retaining approximately $5.5 million for priority work. Previously Completed Projects The following 2J-funded projects are complete and therefore are not affected by the realignment: • Improve Wadsworth – $5.0 million • Preventative Street Maintenance – approximately $2.0 million • ADA Transition Plan – $200,000 • Sidewalk and Concrete Maintenance – approximately $809,000 PROJECTS THAT WILL NOT PROCEED UNDER THE CURRENT 2J PROGRAM To accommodate the $7.0 million utility undergrounding investment and balance the overall program, staff recommend eliminating or deferring several projects. 1. Ridge Road – Nelson to Quail Sidewalk Gap Approximately $2.1 million is removed from the current 2J program. This project could be reconsidered if additional funding becomes available or if future capital planning identifies an alternative funding source. 2. ADA Pedestrian Ramp Installation Approximately $120,000 is removed from the current program. 3. 35th Avenue–Tabor Court Cul-de-sac Trail Connection Approximately $425,000 is removed from the current program. 4. Oak & Twilight Pedestrian Crossing Approximately $400,000 is removed from the current program. 5. Administration Staff has also reduced planned administrative expenditures by approximately $800,000 over four years. These reductions help maximize the amount of 2J funding that can be directed toward physical infrastructure and projects with direct community benefit. FINANCIAL SUMMARY Under the revised program: • Total identified 2J project expenditures: approximately $96.1 million • Total identified resources: approximately $96.1million o Project funds: approximately $82.6 million o Grant funding: approximately $13.5 million CONCLUSION Staff believe this approach provides the best opportunity to accomplish the Council’s objective of incorporating utility undergrounding into the West 38th Avenue project without abandoning the broader goals of the 2J program. The realignment does require difficult tradeoffs. Several projects will be deferred or removed from the current program, and the Round 2 sidewalk program will be substantially reduced until additional revenue is identified. However, the recommended approach preserves the major West 38th investment, maintains critical drainage work, protects significant grant-funded projects, and retains substantial investments in sidewalks, multimodal connectivity, safety and infrastructure. The projects identified for deferral are not necessarily permanently eliminated. They can be reconsidered as part of future capital planning if additional 2J resources become available, if the 2A ballot question is approved in November 2026, project costs change, grants are secured, or other funding opportunities are identified. Staff will continue to refine project scopes and schedules and will return to Council with any necessary budget actions as the West 38th project advances. ATTACHMENT: 1. 2J Budget 2J Project-by-Project Prioritization Category Project Total Notes Corridors $0 $752,276 $1,911,963 $4,500,000 $18,000,000 $0 $0 $25,164,239 Corridors $0 $0 $0 $7,000,000 $0 $0 $0 $7,000,000 Corridors 38th Avenue Refresh $0 $0 $636,000 $1,000,000 $10,650,000 $0 $0 $12,286,000 Corridors $0 $0 $1,592,133 $0 $0 $0 $0 $1,592,133 Corridors $0 $0 $890,000 $0 $0 $0 $0 $890,000 Grant Funded Corridors Improve Wadsworth $0 $5,000,000 $0 $0 $0 $0 $0 $5,000,000 Completed Corridors $0 $2,018,647 $0 $0 $0 $0 $0 $2,018,647 Completed Corridors subtotal $0 $7,770,923 $5,030,096 $12,500,000 $28,650,000 $0 $0 $53,951,019 Drainage $1,000,000 $1,269,138 $500,000 $800,000 $0 $0 $0 $3,569,138 Drainage Prioritized $0 $0 $972,227 $850,000 $0 $0 $0 $1,822,227 Drainage subtotal $1,000,000 $1,269,138 $1,472,227 $1,650,000 $0 $0 $0 $5,391,365 Sidewalks $0 $0 $300,000 $1,430,000 $3,700,000 $1,320,000 $0 $6,750,000 Grant Funded Sidewalks $0 $0 $300,000 $3,908,000 $10,417,000 $0 $0 $14,625,000 Grant Funded Sidewalks Construction – Round $0 $0 $4,952,462 $3,200,000 $100,000 $0 $0 $8,252,462 Includes Dover, Parfet, I-70 Frontage and Sidewalks Construction – Round $0 $0 $0 $500,000 $5,000,000 $0 $0 $5,500,000 Reduce by $9.25M; Includes Miller - Sidewalks $0 $0 $0 $0 $0 $0 $0 $0 Cut $2.1M Sidewalks $0 $0 $0 $0 $0 $0 $0 $0 Cut $120,000 Sidewalks ADA Transition Plan $0 $0 $200,000 $0 $0 $0 $0 $200,000 Completed Sidewalks 32nd Avenue Bike Lanes & Sidewalk/Trail $0 $0 $50,000 $0 $0 $0 $0 $50,000 Complete design only Sidewalks $0 $508,947 $300,000 $0 $0 $0 $0 $808,947 Completed Sidewalks Court Cul-de-sac $0 $0 $0 $0 $0 $0 $0 $0 Cut $425,000 Sidewalks $0 $0 $0 $0 $0 $0 $0 $0 Cut $400,000 $0 $508,947 $6,102,462 $9,038,000 $19,217,000 $1,320,000 $0 $36,186,409 $0 $147,086 $216,950 $207,118 $0 $0 $0 $571,154 Cut $800,000 over 4 years Revenue Project Funds $82,599,947 Grants $13,500,000 Interest $0 $0 Surplus ATTACHMENT 1