CAPITAL IMPROVEMENTS PROJECTS FUND

Project Updates

Holistic Health and Fitness Park:

In 2017, the Arvada City Council passed Resolution R17-038 authorizing an Agreement between the City of Arvada and DHM Design Corporation for architectural landscape design services for the Holistic Health and Fitness Park. The Holistic Health & Fitness Park is a collaborative public park endeavor aimed to meet an increasing population’s recreation demand in the Arvada Ridge Transit Area and support Red Rocks Community College’s curriculum, degrees and certificates - such as Holistic Health, Reflexology, Yoga, and Rehabilitation - through a unique design program unlike other typical neighborhood parks. The park will fulfill community park and recreation needs identified in the:

• 2007 Arvada Transit Station Framework Plan,

• 2009 Pedestrian and Bicycle Access Plan,

• 2016 Arvada Parks, Trails and Open Space Master Plan

The site consists of two parcels totaling approximately 8.5 acres combined:

• 5470 Miller Street, owned by City of Arvada

• 5420 Miller Street, owned by the State Board for Community Colleges and Occupational Education, represented by Red Rocks Community College (RRCC)

Initially presented in concept to RRCC Staff and Foundation in early 2016, RRCC is supportive of the shared land use. In July of 2022, RRCC and the City of Arvada entered into a no-cost, 100-year lease agreement through July of 2122, paving the way for the construction of the park and shared land use. Another critical step in achieving the realization of this new park was obtaining the utility easement to relocate the existing above-ground utility to below-ground through a utility boring. RRCC is also a fullyinvolved project partner with staff and students having previously invested in the design process in visioning this truly unique outdoor health and wellness center. Anchored by the Arvada Ridge Transit Station, medium to high density residential development, and the public health sciences campus, the new park site will broaden and democratize access to healthy opportunities and provide an outlet for residents, as well as students, to champion their own health through outdoor-based healing modalities.

Beyond typical park amenities such as irrigation, grading, and accessible routes, the new park will include a number of other new amenities within Phase I, including two plazas with shade shelters, an intergenerational natural play area, activity lawn, exercise stairs, interactive art, educational obelisks, labyrinth, yoga/qi gong outdoor classroom, bike racks, benches, trash receptacles, therapeutic and sensory gardens, safety lighting, three entry plazas, a refexology path, a compass rose/astronomy plaza, natural stone retaining walls, 1,200 linear feet of 10-foot wide concrete paths, and 400 linear feet of soft surface trail.

The Park is the crowning piece of a larger vision to connect people to art and health on a daily basis. When built, the park will provide an outlet for diverse groups – ranging from the general public, health practitioners, faculty, students, and visitors – to champion their own health. The construction package for this project is on schedule to go to bid to general contractors and landscape contractors in April 2022. Arvada Parks & Urban Design is excited to begin the work on this park and realize the vision that has been a long time coming for the residents of Arvada.

Parks & Urban Design has already identifed the capital improvement funding necessary for Phase I of the design and construction of Holistic Health and Fitness Park.

Water Fund Overview

The Water Fund accounts for all activities within the scope of the water utility operations including administration, operations, capital water projects, financing and related debt service and billing and collection.

Revenue Highlights

• Water Charges revenue is in-line with the budget.

• Tap Fees revenue is over budget due to the HS Arvada Olde Town Ventures new construction project on the east side of Arvada. The payment for 252 residential units and 2 commercial units was received all at once.

• Other revenue is over budget due to a large payment received from Canyon Pines

Metropolitan District for the pump station construction project.

Expenditure Highlights

• Ongoing expenditures are under budget from two items, residual disposal charges and software upgrades. The water treatment plant sludge amounts vary year to year and this year there was not as much sludge for disposal as calculated. Computer software upgrade costs came in lower than anticipated.

• Capital expenditures are under budget due to delays in the large valve replacement projects. The slow response times from vendors did not allow the projects to proceed as planned.

Wastewater Fund

Overview

The Wastewater Fund accounts for all activities necessary in the collection, transmission and disposal of sewage and wastewater.

Revenue Highlights

• Tap Fee revenue is over budget due to the HS Arvada Olde Town Ventures new construction project which has 252 residential units and 2 commercial units. The payment for the wastewater and water tap fees received near the end of the 2022 was for all units.

• Other Revenue is over budget due to a large payment received from Jefferson Center Metropolitan District (JCMD) for the Alkire Lift Station project not expected to be received in 2022.

Expenditure Highlights

• Metro District expenditures are over budget due to a price increase by Denver Metro Water Recovery. Their exact costs are unknown from year-to-year and only realized once the bill is received.

• Capital expenditures and Major Capital Maintenance expenditures are under budget due to projects being delayed for supply chain issues and project management turnover. Additionally, the Wastewater program’s manager retired so new projects were delayed until the new manager could realign the projects to their priorities.

Stormwater Fund

Overview

The Stormwater Fund accounts for all activities necessary to maintain a stormwater management plan.

Revenue Highlights

• Total Revenues are in-line with the budget.

• Other revenue was under budget due to no recovered costs received from the stormwater rate study audit.

Expenditure Highlights

• Ongoing expenditures are under budget due to Stormwater program staff turnover and vendor staffing issues as well. This resulted in operating projects being delayed.

• Capital expenditures are under budget due to personnel issues. Project management turnover slowed the progress of capital projects.

Golf Rounds by TypeJanuary -

the increased food and labor costs.

• Restaurant expenditures increased $187,353 or 9.9% due to support costs.

Golf Courses, including food service operations. to the increase in golf rounds played which results in higher

• Golf Course expenditures increased $240,035 or 9.4% due

Expenditure resumed. capacity. Also, tournaments and smaller social events have Highlights restaurants are finally able to accommodate guests at full

• Restaurant revenue increased $461,495 or 23.7% over 2021.

.7% over 2021.

Golf rounds played at both courses had a minimal increase of

• Golf course revenue increased 7.3% or $337,236 over 2021.

2021.

• Overall revenues increased in 2022 $335,137 or 4.8% over

ENTERPRISE FUNDS Golf Fund Overview

Solid Waste Fund

Overview

In 2020, the Arvada City Council approved a new waste and recycling program. The City entered into an agreement with a single trash company to provide waste and recycling collection for residents. The trash and recycling services started in July 2021.

Revenue Highlights

• Charges & Fees revenue is under budget due to a lower number of households signing up for trash and recycling services than previously anticipated.

Expenditure Highlights

Operating expenditures are under budget due to the lower than expected number of program participants for trash and recycle services. Part of the Republic Services charge is based on the number of participating households.

Internal Service Funds Overview

There are five Internal Service Funds – Insurance Fund (Risk Management), Computer Fund, Print Services Fund, Vehicles Fund and Building Fund. Internal Service Funds charge internal programs and departments for use of goods and services. The Funds then pay for all associated costs of things such as purchasing insurance, vehicle purchases and maintenance, computer purchases and maintenance, and buildings maintenance.

Insurance Fund

The Insurance Fund, administered by the Risk

Management Program of the City Attorney’s Office, accounts for the City’s self-insurance against loss. It is funded with contributions by all City departments and programs based on their levels and types of exposure. The Fund is also used for loss prevention programs, the protection of City personnel and the preservation of City property and assets.

*Per GASB Statement 10, an additional $2,518,436 in cash is currently held in the Risk Management fund to cover potentially incurred liabilities as of the beginning of the year. This figure was reached by the

Revenue Highlights

Revenues

Expenditures

• Overall revenues increased $274,641 or 11.7% from 2021 and exceeded the 2022 budget by 1.5%.

• The increase in revenues was primarily due to increases in contributions from other funds when compared to 2021.

Expenditure Highlights

• Overall expenditures decreased $158,090 or 4.7% from 2021 and were 4.6% below the budget.

• However, a year-end adjustment to record potential incurred liabilities has not been received from the actuary and has not been included in 2022 expenditures.

• Property damage claims increased $383,796 or 75.4% over 2021. Property insurance premiums saw a higher than expected increase along with a few big claims like the Arvada Center fire and vandalism at Stenger Soccer Complex.

• Liability costs increased $183,404 or 37.2% over 2021 due to payments of large claims that resulted from the two water main breaks in 2022.

• Workers compensation claims increased $107,271.40 or 19.0% over 2021 due to an increase in the medical cost and the number of claims paid.

• Professional Services increased by $87,441 or 113.1% over 2021 primarily due to homeless camps clean-up costs.

Computer Fund

Overview

The Computer Fund provides resources for both ongoing maintenance and replacement of the City’s computers, network hardware, and other electronic infrastructure. It is funded with contributions by all City departments based on their levels of use of this technology.

Revenue Highlights

• Total Revenues are in-line with the budget.

Expenditure Highlights

• Maintenance expenditures are under budget due to cost savings and cost avoidance. Oracle software support was procured at a lower cost through a third-party vendor resulting in cost savings. The Journal Tech software upgrade was planned for 2021 which would have resulted in a higher annual maintenance cost. Since the project was not implemented, the new cost was not incurred.

• Replacement expenditures are under budget due to three large projects not occurring in 2022 – the Server Storage replacement project, the Phone System replacement project, and the Enterprise Resource Planning (ERP) replacement project. The Server Storage project and the Phone System project were delayed due to staffing issues and the need to further review the project requirements. The ERP project will begin in 2023. It will be a very large effort so the project scope and vendor selection tasks are crucial to the project’s success.

Vehicle Fund

Overview

The Vehicles Fund provides resources for the maintenance and replacement of City vehicles and heavy equipment. It is funded with contributions by all City departments based on their vehicle inventory and use.

Revenue Highlights

• Overall revenues increased 3.8% from 2021. The increase in revenue is largely due to transfers from other departments for the purchase of new vehicles not included in the annual replacement contributions or increases in purchase costs related to inflation.

Expenditure Highlights

• Expenditures have decreased 15.0% from 2021, this is primarily due to supply chain issues and the inability to receive all vehicles ordered in 2022. In the 4th quarter of 2022, the City purchased:

• 4 Ford F350 Super Cab Trucks

• John Deere High Lift Loader

• 2023 Chevy Bolt

• 2023 2500 Double Cab Truck

• 3 Ford F350 Utility Trucks

• John Deere Compact Track Loader

• 2022 Ford F150

These vehicles will be delivered and paid for in 2023

Print Services Fund

The Print Services Fund provides ongoing operational support for the City’s printing needs.

Revenue Highlights

• Overall revenue decreased $14,426 or 4.3% from 2021 and was 4.9% below the budget.

• Printing revenue increased $9,203 or 4.8% over 2021 due to increased print jobs.

• Copier revenue decreased $23,629 or 16.9% from 2021 due to lower use of copiers in 2022.

Expenditure Highlights

• Overall expenditures increased $5,613 or 1.8% over 2021 and were 26.7% below the budget.

• Printing expenditures increased $16,019 or 6.8% over 2021 primarily due to an increase in internal service fund charges to cover risk management, building and vehicle use.

• Copier expenses decreased $10,405 or 12.6% from 2021 due to fewer supply purchases and lower repair and maintenance expenditures.

• There was $96,000 budgeted for equipment replacement in 2022; however, the equipment will not be replaced until 2023.

Buildings Fund

The Buildings Fund provides resources for maintaining major portions of facility infrastructure as replacement becomes necessary. The primary types of infrastructure are HVAC equipment, parking lots, roofs, and carpet. It is funded with contributions by all City departments based on their facility occupancy.

Revenue Highlights

• Revenues include savings related to the Ameresco Energy Performance contract being transferred to the Buildings fund to help offset the original construction costs. Other revenues include interest on investments.

Expenditure Highlights

• Replacement spending includes condensers at the Arvada Water Treatment Plant and HVAC renovations at the Olde Wadsworth Shops. The large expenditure item in Equipment in 2021 was the final payment on the completion of the Ameresco Energy Performance contact. No equipment was purchased in 2022.

Overview:

On November 6, 2018 the citizens of Arvada approved Ballot Issue 3F to fund improvements to Ralston Road and West 72nd Avenue. Municipal bonds are commonly used by cities to fund capital improvement projects. In 2018, the City finished paying off a previous bond issue, freeing up $4.5 million in annual payments already accounted for in the City’s current budget. “Debt re-authorization” allows the money from the previous bond to be applied to a new bond whose funds will be used for these new capital improvement projects.

Ralston Road Yukon to Garrison Bond Project

Description: Ralston Road is an arterial roadway and a major east-west corridor for Arvada’s transportation network, serving 23,000 vehicle trips each day. It provides connectivity to major north-south corridors including three State Highways. The Regional Transportation District (RTD) operates five bus lines using portions of Ralston Road. The Citizens Capital Improvement Plan Committee has twice ranked Ralston Road improvements as the number one transportation priority and recommended it for funding to the City Council. The project also addresses concerns expressed in recent Arvada Citizen Surveys. The 2014 Comprehensive Plan generated transportation models indicating that the congestion, operation, and safety of Ralston Road will deteriorate with the build-out of the City, and roadways will perform at the lowest levels of services

Progress:

Roadway:

• During the fourth quarter of 2022, the contractor completed a significant amount of work on the south side of Ralston Rd. The following activities were completed on the south side of Ralston between Garrison and Carr St: Excavation of the soil, proof rolling/subgrade preparation and Geogrid placement; pouring of concrete driveways, sidewalks, curb and gutter (flatwork), and contaminated soil excavation to waste management at the Sinclair gas station site.

Drainage:

• The contractor also completed a significant amount of storm sewer and water line work on the south side between Garrison and Carr St, including manhole work, storm sewer pipe replacement and waterline connections. Currently, the contractor is working on a storm sewer and water line tie-in work on the south side of Ralston between Ammons and Yukon St.

Dry Utilities:

• Most of the dry utilities (Xcel, Comcast and Century link) work on the north side and part of the south side is done. Currently project team is coordinating with Xcel and century link for a couple of utility conflicts associated with the construction activities between Ammons to Yukon St.

Wet Utilities:

• The 15 feet deep waterline tie-in work at Allison is ongoing and anticipated to be complete by the second week of March 2023.

• Fire hydrants work is ongoing on the south side of Ralston Rd between Ammons and Yukon St. Ralston Court (Private Development):

• Waiting on pricing from Hamon for water and sanitary sewer connections to the development.

Challenges:

• Due to insufficient underground utility information the revisions and redesign of the storm sewer pipe network caused significant delays on the project.

• Contaminated soil hauling to waste management was not accounted for/anticipated in the project schedule and this also caused a significant delay to the construction.

• Due to delays, the City had to extend some of the parcels Temporary construction easements on this project which caused additional financial burden to the project budget.

• Due to severe weather in the past few months construction work has slowed down and the City continues to receive complaints from citizens and business owners about the inconvenience of the construction zone, faded striping and potholes. Contractor is constantly working on filling the potholes and re-striping the road as soon as possible. Through the City’s social media outlets, the project webpage, and direct contact with project team members, the City attempts to explain the challenges of the construction zone and upcoming work and any road closures. The project team recognizes the challenges with a construction zone and the City and Contractor teams are taking all reasonable steps to avoid as much inconvenience as possible.

• Due to school being in session the contractor is not able to close the Balsam St to work on the underground storm sewer work and asphalt removal. To avoid the inconvenience to school, the contractor is planning this work during the summer break.

Next Steps:

• Contractor is preparing the road base and planning to pave the bottom two lyfts from Garrison to Carr St around the end of April or beginning of May.

• ROW acquisition required on this project is complete.

W. 72nd Avenue Bond Project

Description: W. 72nd Avenue is an arterial parkway and a major east-west corridor for Arvada’s transportation network, serving 21,000 vehicle trips each day. It provides connectivity to major north-south corridors including three State Highways. The regional corridor not only serves all of Arvada, it provides access to Westminster and Golden/Jefferson County. The Citizens Capital Improvement Plan Committee twice ranked improvements to W. 72nd Avenue as a high priority. The project also meets concerns expressed in recent Arvada Citizen Surveys. The 2014 Comprehensive Plan generated transportation models indicating the congestion, operations, and safety of W. 72nd Avenue will deteriorate with the build-out of the City and roadways will perform at the lowest levels of service

Progress:

• Construction Package 1 - CP-1 (tree removal, utility relocation for the entire corridor, and new utilities). Xcel, Comcast, and Lumen are working to relocate utilities in the corridor. SEMA has met their contract deadline and is complete with CP-1.

• Construction Package 2 - CP-2 (Swadley to Oak). Work includes utilities and full roadway reconstruction. 100% Plans signed/stamped were received in February 2022. CP-2 began in March 2022. Currently, CP2 is on schedule to be completed in Feb 2024. Some delays have been experienced due to dry utility companies’ failure to relocate their facilities; however they have not impacted the critical schedule. CP-2 is $22.6 million.

• Construction Package 3 - CP-3 (Oak to Kipling, including the UPRR underpass) has five components: 1) bridge structure; 2) railroad shoofly; 3) temporary vehicular bypass; 4) roadway design plans; and 5) Construction and Maintenance Agreement (C & M Agreement), which are at varying stages of review by UPRR (Union Pacific Railroad) and the City. UPRR reviews have been occurring outside the expected timelines. 60% bridge plans have been returned with comments from UPRR and have been resubmitted Feb 2023. We are expecting to hear back from UPRR in mid-March. Anticipated Notice to Proceed is Q2 of 2024.

• Project scheduling will remain fluid until there is a better understanding of the UPRR coordination and response time. Construction Package 2 underway. UPRR reviews and timelines continue to be unpredictable.

Project Challenges:

• For the underpass excavation component of CP-3, the project team is developing a plan to mitigate underpass excavation and dewatering issues and possible environmental issues. Options include discharging groundwater to the public sanitary sewer system and treating for heavy metals using a Baker Truck removal system, thus allowing discharge into the storm sewer system. A possible test hole is being considered at a City-owned property at the 72nd and UPRR intersection to better understand the dewatering method needed to waterproof the underpass excavation limits.

• Sonheim Underground Stream - The project team is assessing how the underpass may cut off underground stream flow to several properties on the south side of 72nd. A french drain is being proposed to recharge the water table in that location. Assessments are ongoing.

• UPRR has returned 60% bridge plans with comments. Plans resubmitted Feb 2023.

• The project team continues to work with dry utility contractors to get their infrastructure relocated and to keep our contractor, SEMA, moving on the roadway and utility portion of the project

Right of Way (ROW):

• 71 of the 72 parcels to be acquired have been closed. The final parcel is expected to close this month

Other Challenges:

• The Arvada’s citizens’ interest remains high in the construction progress. The City’s team of representatives continues to respond to all inquiries in a professional and timely fashion.

• Comments from our citizens range from temporary/permanent fence, traffic, signals, walls, potholes, stairs, and safety.

• The project team has made a significant effort to keep all users safe during construction.

• We have been coordinating with both schools in the area to understand typical drop-off and pick-up patterns.

• Periodically we have project team members at the major intersections to remind students/pedestrians to be safe while waiting to cross the street.

• We have lowered the speed limit through the construction zone to 25 mph.

• We have asked the Arvada Police Department to periodically enforce through the construction zone. We have seen the police department doing just that at different times over the last few months.

• We have deployed digital speed signs to inform drivers of their speed and hopefully make them aware that they should slow down.

• We have circulated pedestrian maps to show the public which sidewalks are open through the construction zone.

Next Steps:

• Continue working with the UPRR to have them review plans in a timely manner and to get the on-site visit review complete. The City to begin negotiation of the C & M (Construction and Maintenance) Agreement in late 2023.

• Continue development of a construction organizational chart to allow the City team to forecast construction staffing needs for the different construction packages. Inspections will be a combination of City staff and Owner’s Rep staff.

• Continue coordination efforts with stakeholders, including the UPRR, Xcel Energy, Jefferson County School District, and Lincoln Academy, to allow a smooth transition from design to construction.

Item to note: The project team has worked with zero injuries and zero lost work days