CITY OF THORNTON CITY MANAGER’S OFFICE

05/02/2019

A G E N D A Planning Session

Training Room May 7, 2019

5:45 p.m.

I. CALL TO ORDER AND REVIEW OF AGENDA

II. CITY MANAGER AND CITY ATTORNEY COMMENTS

III. STAFF BRIEFINGS

A. Prioritization of the Eligible Projects for 2019 Community Development Block Grant Funding (Estimated 30 Minutes)

B. Discussion Regarding a Resolution Declaring a Parcel of Land at 81st Avenue and Steele Street as Surplus Property and Authorizing its Disposition (Estimated 10 Minutes)

C. Discussion Regarding a Resolution Approving Temporary and Perpetual

Easements to NWC Development, LLC on Thornton’s Farms 25, 79, and 92-3 (Estimated 10 Minutes)

D. Discussion Regarding a Resolution Approving Temporary and Perpetual

Easements to Cheyenne Connector Pipeline, Inc. on Thornton’s Farms 11, 16. 40-5, 60-19. 79, and 96E (Estimated 10 Minutes)

E. Executive Session pursuant to C.R.S. 24-6-402(4)(b), conferences with the

City Attorney for purposes of receiving legal advice on specific legal questions related to the judicial application process, and (f) to discuss personnel matters specifically related to the recommendation of judicial candidates (Estimated 30 Minutes)

F. Executive Session pursuant to C.R.S. 24-6-402(4)(f) to discuss personnel

matters regarding the Municipal Judge performance evaluation process (Estimated 30 Minutes)

IV. OPEN DISCUSSION

A

PLANNING SESSION COMMUNICATION PAGE 2 2. Fund every project/program at some amount:

• Home repair programs (Help for Homes and Home Repair Loan) = $60,000 • GRID solar panels = $40,000 • ADA entryway access button for Mountainland Pediatrics (if eligible) = $13,000 • Construction or utilities for southwest Thornton park = $144,563 • Construction or utilities of new fire station = $144,563 • Rent/Mortgage/Utility Cost Assistance = $6,000 • Chore Service for Seniors = $4,000

3. Prioritize funding based on ability to use the funds in 2019 and 2020:

• Home repair programs (Help for Homes and Home Repair Loan) = $60,000 • Community Reach Center boiler = $180,450 • ADA entryway access button for Mountainland Pediatrics (if eligible) = $13,000 • Construction costs for southwest Thornton park = $339,126 • Reserve projects (can be funded if another project or program cannot start by grant timeframe,

cancels, or has funds remaining after completion): GRID solar panels, Construction or utilities of new fire station, Rent/Mortgage/Utility Cost Assistance, Chore Service for Seniors

4. Individually select projects for funding and list the other projects as reserve projects. BACKGROUND (ANALYSIS/NEXT STEPS/HISTORY): (includes previous City Council action) CDBGs are federal funds from HUD. The City has used CDBG funds in Thornton since 1983. In March 2010, Thornton became its own entitlement community, allowing the City to receive grant funds directly from HUD. Projects funded through CDBG must meet one or more of the national objectives to benefit low- and moderate-income persons; aid in the prevention or elimination of slum and blight; or meet urgent community needs. City staff notified nonprofit organizations about the opportunity to apply for CDBG funding and discussed several projects with staff in the Infrastructure, Fire, and Community Services departments. All applications and project ideas were evaluated to determine if the projects were eligible activities per the Code of Federal Regulations (CFR) and meet a national objective of the program. Exhibit A describes the eligible projects, the requested amount or total estimated cost, whether the project meets a priority need listed in the 2015-2019 Consolidated Plan, and how many people or households would be served by the project. Thornton developed the list of priority needs for the last Consolidated Plan through extensive public input. HUD wants to see that entitlement communities use the priority needs list as a guide for awarding HUD funds over a five-year period. The projects that the City plans to fund with 2019 CDBG or list as reserve projects are described in the Annual Action Plan. Reserve projects are those that can be funded if other projects are not able to start or complete by the HUD timeframes or are not able to use all the assigned funding. HUD requires an entitlement jurisdiction to submit an Annual Action Plan each year prior to receiving the CDBG funding (24 CFR § 91.15) and hold a 30-day comment period followed by a public hearing to obtain the views of citizens on the proposed Plan and use of grant funding (24 CFR § 570.431). The public comment

PLANNING SESSION COMMUNICATION PAGE 3 period for the Annual Action Plan runs May 2, 2019 to June 3, 2019. The public hearing on the Annual Action Plan is scheduled for June 11, 2019.

2019 Community Development Block Grant

Projects

May 7, 2019

2019 CDBG Funds

$740,720 80% of the grant will fund projects

($592,576)

Up to 20% of the grant will fund administration ($148,144)

Process to Identify Potential Projects

• Notified nonprofit organizations about 2019 funding

• Identified and evaluated several City projects

• Determined if the projects met a national objective

• Determined if the project would benefit an area or an individual person or household

• Evaluated all project ideas for CDBG funding eligibility

New CDBG Eligible Areas

Effective April 1, 2019

Home Repair Programs• Help for Homes: minor home repair • 20 low- or moderate-income residents served each year• 516 households served since program start in 2003• Use about $55,000 a year • Average repair cost = $2,745

• Home Repair Loan: 0% interest loan for health, safety, and accessibility repairs

• Serve one resident per year• Average loan = $9,181

Solar Panel Installation

• GRID has enough CDBG funds from previous years to serve 17 more households

• Served 25 Thornton households in the last three years

• Average cost per house = $8,833

Energy Efficient Boiler for Medical Facility

• Need to replace andupgrade the 30 yearold boiler in order tolimit serviceinterruption due tolack of heat

Community Reach’s Center at 8801 Lipan StreetServices at the Center: Intensive residential and outpatient

treatment of substance use disorder

Example of boiler

Handicap Accessible Entryway at Mountainland Pediatrics

Install an electronic button to open the doors at the front entrance

*Waiting on confirmation of eligibility

Construction Costs for Parkin Southwest Thornton

The City is in the process of purchasing land this spring.

Construction Costs for Fire Station 1The City is designing the new station, which will be located in

the north parking lot area at Community Park.

*Waiting on confirmation of eligibility

Emergency Mortgage/Rent and Utility Assistance

• Provide financial assistance to residents who are unable to pay rent/mortgage or utility bills

• Residents are helped once• Almost Home helped 22 Thornton residents last year

through this program• Average grant = $500

Chore Service for SeniorsSenior Resource Center runs a chore service program to help seniors, age 60 and above, with strenuous household tasks, such as washing windows, packing boxes for moving, or yard work.

All chore staff are background checked. $4,000 of CDBG funds can provide 72 hours of service to Thornton residents.

Program/Project SummaryAmount = $592,576

1. Help for Homes

2. Home Repair Loan

3. Solar Panel Installation

4. Boiler at Community Reach Lipan Facility

5. Handicap Access at Mountainland Pediatrics

6. Construction Costs of Park in Southwest Thornton

7. Construction Costs for Fire Station

8. Emergency Mortgage/Rent and Utility Assistance

9. Chore Service

Exhibit A ‐ 2019 CDBG Project Proposals

Agency Name Project Description RequestProject Status

Con. Plan Priority

People/ Households 

Served

Brothers RedevelopmentThe Help for Homes program funds minor home repairs for eligible low‐income homeowners. On average, 20 residents are served annually at a total cost of $55,000. Average repair cost = $2,745. The organization currently has $28,162 of previous years' CDBG for this program.

$100,000  Eligible High  33 Households

Brothers Redevelopment

The Home Repair Loan program offers 0% interest loans to homeowners for large or complex home repairs. Loans are up to $12,000, with a 10 year loan repayment period for those who are 61‐80% AMI and deferred loan for those with lower AMI. Homeowners must pay a $500 closing cost fee plus 5% down payment.  The program serves one resident a year on average. Average loan is $9,181. Currently, this program has $15,830 of previous years' CDBG available.

$24,000  Eligible High  2‐3 households

GRIDGRID Alternatives installs solar photovoltaic systems on the homes of low- and moderate-income homeowners to offset electricity costs. The average cost per home is $8,833 and GRID spends between $66,000 and $83,000 a year. GRID currently has $156,776 of CDBG funds available. 

$120,000  Eligible Low 11 Households

No eligible projects, due to change in the CDBG‐eligible areas as of April 1, 2019

Community Reach Center Install new energy‐efficient boiler for substance abuse treatment facility at 8801 Lipan Street.   $180,450  Eligible Low 320 people

Community Reach Center ADA entryway access for Mountainland Pediatrics (waiting on HUD's confirmation of eligibility). $13,000  ? Low 1785 youth

City of Thornton ‐ Community Services

Complete engineering drawings and install water utilities, sidewalk, lighting, and equipment for park in SW Thornton. City is using 2018 CDBG funds to help purchase the property and design the park. 

up to $592,576

Eligible Low 20,983 people

City of Thornton ‐ FireContribute funds to install utilities for new Fire Station #1. Total estimated cost of constuction = $17.5 million. (waiting on HUD's confirmation of eligibility).

up to $592,576

? None11,740 

households

Almost Home

Rent/Mortgage/Utility Cost Assistance for low‐income Thornton residents, plus case worker's time to discuss long‐term solutions. Almost Home served 88 Thornton households with this assistance in 2017 and 119 households in 2018.  Average grant = $500. Using $11,500 a year. Program has $25,800 of previous years' CDBG.

$37,911  Eligible Low 40 households

Seniors' Resource Center

Chore service for residents age 60 or older, such as deep cleaning of kitchens and baths, yard work, and other strenuous chores.  CDBG can fund a one‐time chore service. Average cost per hour = $55. The number of Thornton residents using this program has increased 42% in the last two years; there is wait list for this program. Currently, this program has $3,500 in previous years' CDBG funds. 

$4,000  Eligible High  24 people

HOUSING

INFRASTRUCTURE

PUBLIC SERVICE ‐ Subject to the public service cap of 15% of the overall CDBG allocation

PUBLIC FACILITIES

B

PLANNING SESSION COMMUNICATION PAGE 2

If this resolution is approved but the City and DTI, or its successors in interest or assignees, do not successfully negotiate the purchase and sale of the Parcel a new resolution authorizing an alternative manner of disposition will be presented to Council. The Parcel is in Unincorporated Adams County and is surrounded by other properties, also in Unincorporated Adams County. Along with the request to declare the Parcel surplus, staff recommends disconnecting (de-annexing) the Parcel. This action will be brought before Council, at a later date, if the Parcel is indeed declared surplus.

PurposeDeclare the Parcel of land at 81st Avenue and Steele Street as surplus property and authorize its disposition.

Agenda• History• Issue• Recommendation

1

History• In 1981 the Parcel was conveyed to the City as part of the

West Gravel Lakes purchase.• The Parcel is no longer integral to the West Gravel Lakes. • DTI Holdings, LLC owns two parcels located adjacent to

the north and south side of the Parcel. • DTI Holdings has expressed an interest in purchasing the

Parcel.

IssueThornton’s options:• Declare the Parcel as surplus and authorize its disposition.• Don’t declare the Parcel as surplus.

2

3

4

RecommendationApprove a resolution declaring the Parcel as surplus and authorize its

disposition.

Questions?

5

C

PLANNING SESSION COMMUNICATION PAGE 2

easement value would be approximately $3,603. Oil and gas easements are being purchased by pipeline companies at a significantly higher rate than appraised value to expedite projects and avoid the eminent domain process. Because of the range of difference between the compensation amount and the 2017 appraised amount, staff does not recommend incurring the expense of obtaining a formal appraisal for this transaction. By working with NWC on the easement alignments, the City can negotiate the best terms and avoid NWC exercising its powers of eminent domain. NWC is the natural gas pipeline collection company in the area of these Farms and these lines will serve existing and future wells drilled under the City’s oil and gas leasing program. The City has recently granted several easements to other pipeline operators under the same terms for wells drilled previously as part of the City’s oil and gas leasing program. The City purchased the Farms in 1986 as part of Thornton’s Water Project. The Farms have farmhouses and other various improvements. Most of the Farms are being leased to tenants and continue to produce irrigated crops. Some of the Farms are no longer leased to grow irrigated crops but have been revegetated to self-sustaining natural grasses. Any damage or other impact to the Farms will be corrected by NWC per the terms of the easements.

PLANNING SESSION COMMUNICATION PAGE 3

VICINITY MAP

PurposeA discussion regarding approving temporary and perpetual easements to NWC Development, LLC on Thornton’s Farms 25, 79, and 92-3.

Agenda• History• Issue• Recommendation

1

History• NWC Development, LLC (NWC), a natural gas collection pipeline

company, requested easements from the City in order to constructnatural gas collection lines on Thornton’s Farms 92-3, 25, and 79.

• The requested easements are for pipelines only and do not grantany rights to drill oil and gas wells.

IssueThornton’s options:• Grant the easements to NWC, which will ensure the location and

terms of the easements are favorable to the City.

• Do not approve a resolution granting the easements to NWC, whichmay result in NWC exercising it rights of eminent domain.

2

VICINITY MAP – AULT TRUNK LINE

79

25

92-3

Ault

3

RecommendationApprove a resolution granting easements to NWC to ensure the location and terms of the easements are in the City’s favor.

Questions?

4

D

PLANNING SESSION COMMUNICATION PAGE 2

range of difference between the compensation amount, and the 2017 appraised amount, staff does not recommend incurring the expense of obtaining a formal appraisal for this transaction. By working with Cheyenne on the easement alignments, the City can negotiate the best terms and avoid Cheyenne exercising its powers of eminent domain. Cheyenne is a major interstate pipeline company and the alignment across the Farms is part of their larger Cheyenne Connector pipeline project. The City purchased the Farms in 1986 as part of Thornton’s Water Project. The Farms have farmhouses and other various improvements. Most of the Farms are currently leased to tenants and continue producing irrigated crops. Some of the Farms are no longer leased to grow irrigated crops but have been revegetated to self-sustaining natural grasses. Any damage or other impact to the farm will be corrected by Cheyenne per the terms of the easements.

PLANNING SESSION COMMUNICATION PAGE 3

VICINITY MAP

PurposeA discussion regarding approving temporary and perpetual easements to Cheyenne Connector Pipeline, Inc. on Thornton’s Farms 11, 16, 40-5, 60-19, 79, and 96E.

Agenda• History• Issue• Recommendation

1

History• Cheyenne Connector Pipeline, Inc. (Cheyenne), a natural gas

pipeline company, requested easements from the City in order toconstruct their Summit Tallgrass Pipeline on Thornton’s Farms 11,16, 40-5, 60-19, 79, and 96E.

• The requested easements are for a pipeline only and do not grantany rights to drill oil and gas wells.

IssueThornton’s options:• Grant the easements to Cheyenne which will ensure the location and

terms of the easements are favorable to the City.

• Do not bring forward a resolution granting the easements to Cheyenne, which may result in Cheyenne exercising it rights of eminent domain.

2

3

RecommendationApprove a resolution granting easements to Cheyenne to ensure the location and terms

of the easements are in the City’s favor.

Questions?

4