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HomeMy WebLinkAbout2018-04-16 (Regular) Meeting Agenda Packet Please note: If you have a disability and need auxiliary aids or services, please notify the City of Englewood (303-762-2405) at least 48 hours in advance of when services are needed. 1000 Englewood Pkwy – Council Chambers Englewood, CO 80110 AGENDA City Council Regular Meeting Monday, April 16, 2018 ♦ 7:00 PM 1. Call to Order 2. Roll Call 3. Invocation 4. Pledge of Allegiance 5. Consideration of Minutes of Previous Session a. Minutes of the Regular City Council Meeting of April 2, 2018. City Council Regular - 02 Apr 2018 - Minutes - Pdf 6. Recognition of Scheduled Public Comment The deadline to sign up to speak for Scheduled Public Comment is Wednesday, prior to the meeting, through the City Manager’s Office. Only those who meet the deadline can speak in this section. (This is an opportunity for the public to address City Council. There is an expectation that the presentation will be conducted in a respectful manner. Council may ask questions for clarification, but there will not be any dialogue. Please limit your presentation to five minutes.) a. Cathy Schmidt will address Council regarding Giving Heart. b. Owen Beaver, an Englewood resident, will address Council about the late night speeding of cars. c. Jerry Walker, an Englewood resident, will address Council. d. Coween Dickerson, an Englewood resident, will address Council. e. Elaine Hults, an Englewood resident, will address Council. f. LynnAnn Huizingh will address Council regarding homelessness. g. Doug Cohn, an Englewood resident, will address Council regarding historic preservation. h. Joe Anderson, an Englewood resident, will address Council. 7. Recognition of Unscheduled Public Comment Speakers must sign up for Unscheduled Public Comment at the beginning of the meeting. (This is an opportunity for the public to address City Council. There is an expectation that the presentation will be conducted in a respectful manner. Council may ask questions for clarification, but there will not be any dialogue. Please limit your presentation to three minutes. Time for unscheduled public comment may be limited to 45 minutes, and if limited, shall be continued to General Discussion.) Council Response to Public Comment. 8. Communications, Proclamations, and Appointments Page 1 of 248 Englewood City Council Regular Agenda April 16, 2018 Please note: If you have a disability and need auxiliary aids or services, please notify the City of Englewood (303-762-2405) at least 48 hours in advance of when services are needed. a. Arbor Day Arbor Day 2018 9. Consent Agenda Items a. Approval of Ordinances on First Reading i. CB 12 - Retail Liquor Tasting Permit CB 12 - Pdf Staff is recommending Council approve a Bill for an Ordinance establishing a Retail Liquor Tasting Permit in accordance with C.R.S. 12-47-301(10) and applicable provisions of the Englewood Municipal Code with an effective date of May 7, 2018. Staff: Deputy City Clerk Jackie McKinnon. b. Approval of Ordinances on Second Reading. i. CB 10 - Revisions to Floodplain Regulations CB 10 - Revision to EMC 16-4-2 - Pdf Staff recommends approval of an Ordinance that revises the Englewood Municipal Code Chapter 16, Section 4, paragraph 2 Jurisdiction and Applicability. Staff: Engineering Manager Paul Weller. ii. CB 11 - Colorado Brownfields Revolving Loan Fund - Memorandum of Agreement Amendment 5 CB 11 - Pdf Staff recommends that Council approve an Ordinance allowing the City of Englewood to execute the proposed Colorado Brownfields Revolving Loan Fund Memorandum of Agreement Amendment 5. This amendment contains housekeeping measures and allows Englewood to remain a part of the coalition of member cities involved in the administration and oversight for the Colorado Brownfields Revolving Loan Fund. Staff: Economic Development Manager Darren Hollingsworth. c. Resolutions and Motions i. LDC Plaza Reconstruction Conceptual Design Masterplan Little Dry CreekPlaza Reconstruction Conceptual Design - Pdf Staff recommends that Council approve by motion a contract for a conceptual design for renovation of the Little Dry Creek Plaza. Staff: Open Space Manager Dave Lee ii. Esri Small Municipal and County Government Enterprise Agreement Esri Small Municipal and County Government Enterprise Agreement - Pdf The Information Technology Department recommends Council approve by Motion the Esri Small Municipal and County Government Enterprise Agreement (EA) that will grant our organization access to Esri license software on an unlimited basis including maintenance on all software offered through the EA for the term of the agreement. Staff: IT Director Margaret Brocklander. Page 2 of 248 Englewood City Council Regular Agenda April 16, 2018 Please note: If you have a disability and need auxiliary aids or services, please notify the City of Englewood (303-762-2405) at least 48 hours in advance of when services are needed. 10. Public Hearing Items 11. Ordinances, Resolutions and Motions a. Approval of Ordinances on First Reading b. Approval of Ordinances on Second Reading c. Resolutions and Motions i. WWTP Raw Sewage Pump Impellers Purchase WWTP Raw Sewage Pump Impellers Purchase - Pdf The Littleton/Englewood Wastewater Treatment Plant (L/E WWTP) staff recommends Council approve, by Motion, a purchase per quote with ABI, Inc. for the purchase of four Raw Sewage Pump (RSP) Impellers in the amount of $94,676.00. This recommendation was approved by the L/E WWTP Supervisory Committee on March 15, 2018. Staff: Director of 0&M Solutions Kurt Carson. ii. Xcel Energy Renewable Connect Program Xcel Energy Renewable Connect Program - Pdf City Council shall review the recommendation of the City Manager for the approval of an agreement with Xcel Energy for the Renewable Connect program and determine whether or not to support the recommended contract terms. The Council will then need to provide the City Manager with authorization to subscribe to the program through the Xcel Energy online portal for the Renewable Connect program if there is consensus to approve the City's participation. Staff: City Manager Eric Keck 12. General Discussion a. Mayor's Choice b. Council Members' Choice 13. City Manager’s Report 14. City Attorney’s Report 15. Adjournment Page 3 of 248 MINUTES City Council Regular Meeting Monday, April 2, 2018 1000 Englewood Pkwy – Council Chambers 7:00 PM 1 Call to Order The regular meeting of the Englewood City Council was called to order by Mayor Pro Tem Russell at 7:08 p.m. 2 Invocation The invocation was given by Council Member Barrentine. 3 Pledge of Allegiance The Pledge of Allegiance was led by Council Member Barrentine. 4 Roll Call COUNCIL PRESENT: Mayor Pro Tem Russell Council Member Laurett Barrentine Council Member Dave Cuesta Council Member Amy Martinez Council Member Linda Olson Council Member Cheryl Wink COUNCIL ABSENT: None STAFF PRESENT: City Manager Keck City Attorney McKenney Brown Assistant City Manager Woulf City Clerk Carlile Deputy City Clerk McKinnon Director Rinkel, Finance and Administrative Services Director Hargrove, Parks, Recreation and Library Open Space Manager Lee, Parks, Recreation and Library Engineering Manager Weller, Public Works Economic Development Manager Hollingsworth,Community Development Senior Planner Stitt, Community Development Technical Support Specialist II Munnell, Information Technology Commander Martin, Police Department Page 1 of 7 Draft Page 4 of 248 City Council Regular April 2, 2018 5 Consideration of Minutes of Previous Session a) Minutes of the Regular City Council Meeting of March 19, 2018. Moved by Council Member Linda Olson Seconded by Council Member Laurett Barrentine TO APPROVE THE MINUTES OF THE REGULAR CITY COUNCIL MEETING OF MARCH 19, 2018. For Against Abstained Amy Martinez x Linda Olson (Moved By) x Laurett Barrentine (Seconded By) x Rita Russell x Cheryl Wink x Dave Cuesta x 6 0 0 Motion CARRIED. 6 Recognition of Scheduled Public Comment a) Lacey Epperson addressed Council regarding Giving Heart. b) Chris Carr addressed Council regarding homelessness in Englewood. c) Elaine Hults, an Englewood resident, addressed Council regarding a forensic audit on EEF (Englewood Environmental Foundation). d) Doug Cohn, an Englewood resident, addressed Council regarding historic preservation. e) Mike Lindgren, addressed Council regarding Giving Heart. 7 Recognition of Unscheduled Public Comment a) Harvey Wittmier addressed Council regarding Giving Heart. b) Jerry Walker, an Englewood resident, addressed Council regarding homelessness. c) JJ Margiotto, an Englewood resident, addressed Council regarding homelessness. d) Joe Anderson, an Englewood resident, addressed Council regarding homelessness. e) Scott Moore addressed Council regarding Police Reports and homelessness. Page 2 of 7 Draft Page 5 of 248 City Council Regular April 2, 2018 Council Responded to Public Comment. 8 Communications, Proclamations, and Appointments a) Resolution appointing Eric Broda to the Firefighters Pension Board. Moved by Council Member Laurett Barrentine Seconded by Council Member Dave Cuesta RESOLUTION NO. 14, SERIES OF 2018 A RESOLUTION APPOINTING ERIC BRODA TO THE FIREFIGHTERS PENSION BOARD FOR THE CITY OF ENGLEWOOD, COLORADO. For Against Abstained Amy Martinez x Linda Olson x Laurett Barrentine (Moved By) x Rita Russell x Cheryl Wink x Dave Cuesta (Seconded By) x 6 0 0 Motion CARRIED. 9 Consent Agenda Items Esri Small Municipal and County Government Enterprise Agreement The Information Technology Department recommends Council approve by Motion the Esri Small Municipal and County Government Enterprise Agreement (EA) that will grant our organization access to Esri license software on an unlimited basis including maintenance on all software offered through the EA for the term of the agreement. Motion MOTION CARRIED. a) Approval of Ordinances on First Reading i) CB 11 - Colorado Brownfields Revolving Loan Fund - Memorandum of Agreement Amendment 5 COUNCIL BILL NO. 11 INTRODUCED BY COUNCIL MEMBER WINK A BILL FOR AN ORDINANCE AUTHORIZING AN INTERGOVERNMENTAL AGREEMENT ENTITLED “COLORADO Page 3 of 7 Draft Page 6 of 248 City Council Regular April 2, 2018 BROWNFIELDS REVOLVING LOAN FUND MEMORANDUM OF AGREEMENT, AMENDMENT 5” PERTAINING TO THE COLORADO BROWNFIELDS REVOLVING LOAN FUND BETWEEN THE CITY OF ENGLEWOOD, THE CITY AND COUNTY OF DENVER, COMMERCE CITY, THE CITY OF LAKEWOOD, THE CITY OF LOVELAND, THE CITY OF WESTMINSTER AND EL PASO COUNTY COLORADO AS WELL AS THE COLORADO HOUSING AND FINANCE AUTHORITY AND THE COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT. b) Approval of Ordinances on Second Reading. i) CB 6 - IGA Amendment for Englewood Trolley Cost Sharing ORDINANCE NO. 4, SERIES OF 2018 (COUNCIL BILL NO. 6, INTRODUCED BY COUNCIL MEMBER OLSON) AN ORDINANCE AUTHORIZING A FOURTH AMENDMENT TO THE INTERGOVERNMENTAL AGREEMENT AMENDING THE “ART” SHUTTLE COST SHARING INTERGOVERNMENTAL AGREEMENT BETWEEN THE REGIONAL TRANSPORTATION DISTRICT AND THE CITY OF ENGLEWOOD. ii) CB 9 - An Ordinance Amending Title 1, Chapter 5, Section 1-5-2-8 of the Englewood Municipal Code 2000, Adopting "Bob's Rules of Order" as the Rules of Procedure Governing Meetings of the City Council of the City of Englewood, Colorado ORDINANCE NO. 5, SERIES OF 2018 (COUNCIL BILL NO. 9, INTRODUCED BY COUNCIL MEMBER OLSON) AN ORDINANCE AMENDING TITLE 1, CHAPTER 5, SECTION 1-5-2- 8 OF THE ENGLEWOOD MUNICIPAL CODE 2000, ADOPTING “BOB’S RULES OF ORDER” AS THE RULES OF PROCEDURE GOVERNING MEETINGS OF THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO. c) Resolutions and Motions i) Purchase of Skid Loader Attachments APPROVAL OF A CONTRACT WITH WAGNER EQUIPMENT COMPANY, FOR SKID LOADER ATTACHMENTS IN THE AMOUNT OF $35,521.00. Moved by Council Member Cheryl Wink Seconded by Council Member Amy Martinez Motion to approve Consent Agenda Items 9 (a) (i), 9 (b) (i-ii) and 9 (c) (i). Page 4 of 7 Draft Page 7 of 248 City Council Regular April 2, 2018 For Against Abstained Amy Martinez (Seconded By) x Cheryl Wink (Moved By) x Linda Olson x Laurett Barrentine x Rita Russell x Dave Cuesta x 6 0 0 Motion CARRIED. 10 Public Hearing Items No public hearing was scheduled before Council. 11 Ordinances, Resolutions and Motions a) Approval of Ordinances on First Reading i) CB 10 - Revisions to Floodplain Regulations Moved by Council Member Linda Olson Seconded by Council Member Cheryl Wink COUNCIL BILL NO. 10 INTRODUCED BY COUNCIL MEMBER OLSON A BILL FOR AN ORDINANCE AMENDING TITLE 16, CHAPTER 4, SECTION 2 OF THE ENGLEWOOD MUNICIPAL CODE 2000, REGARDING UPDATES TO THE JURISIDICTION AND APPLICABILITY OF THE FLOODPLAIN REGULATIONS OF THE CITY OF ENGLEWOOD, COLORADO. For Against Abstained Amy Martinez x Linda Olson (Moved By) x Laurett Barrentine x Rita Russell x Cheryl Wink (Seconded By) x Dave Cuesta x 6 0 0 Motion CARRIED. Page 5 of 7 Draft Page 8 of 248 City Council Regular April 2, 2018 b) Approval of Ordinances on Second Reading There were no additional Ordinances on Second Reading (See Agenda Item 9 (b) (i-ii). c) Resolutions and Motions i) Contract for Transit Shuttle Services Moved by Council Member Linda Olson Seconded by Council Member Amy Martinez Motion approving an agreement between the City of Englewood and MV Public Transportation, Inc. for the 2018 management, operation, and maintenance of the Englewood Trolley. The contract amount is $346,208.40. For Against Abstained Amy Martinez (Seconded By) x Linda Olson (Moved By) x Laurett Barrentine x Rita Russell x Cheryl Wink x Dave Cuesta x 6 0 0 Motion CARRIED. ii) Resolution in support of Jason Park Playground Grant Moved by Council Member Linda Olson Seconded by Council Member Laurett Barrentine RESOLUTION NO. 15, SERIES OF 2018 A RESOLUTION SUPPORTING THE CITY OF ENGLEWOOD’S ARAPAHOE COUNTY OPEN SPACE (ACOS) GRANT APPLICATION FOR JASON PARK PLAYGROUND REPLACEMENT. For Against Abstained Amy Martinez x Linda Olson (Moved By) x Laurett Barrentine (Seconded By) x Rita Russell x Cheryl Wink x Page 6 of 7 Draft Page 9 of 248 City Council Regular April 2, 2018 Dave Cuesta x 6 0 0 Motion CARRIED. 12 General Discussion a) Mayor's Choice b) Council Members' Choice 13 City Manager’s Report 14 City Attorney’s Report 15 Adjournment MAYOR PRO TEM RUSSELL MOVED TO ADJOURN. The meeting adjourned at 8:50 p.m. City Clerk Page 7 of 7 Draft Page 10 of 248 P R O C L A M A T I O N Declaring April 22nd, 2018 as Arbor Day within the City of Englewood and encouraging all residents to support efforts to care for our trees and woodlands WHEREAS, in 1872 J. Sterling Morton proposed to the Nebraska Board of Agriculture that a special day be set aside for the planting of trees; and WHEREAS, this holiday, called Arbor Day, was first observed with the planting of more than a million trees in Nebraska; and WHEREAS, Arbor Day is now observed throughout the United States and the world; and WHEREAS, trees can reduce the erosion of our precious topsoil by wind and water, cut heating and cooling costs, moderate the temperature, clean the air, produce oxygen and provide habitat for wildlife; and WHEREAS, trees are a renewable resource giving us paper, wood for our homes, fuel for our fires and countless other wood products; and WHEREAS, trees in the City of Englewood increase property values, enhance the economic vitality of business areas, and beautify our community; and WHEREAS, trees, wherever they are planted, are a source of joy and spiritual renewal; and WHEREAS, the City of Englewood, Colorado has been recognized for 32 consecutive years as a Tree City USA by The National Arbor Day Foundation and desires to continue its tree-planting ways; and WHEREAS, the State of Colorado will celebrate Arbor Day on April 22nd, 2018; NOW THEREFORE, I Rita Russell, Mayor Pro Tem of the City of Englewood, Colorado, hereby proclaim ARBOR DAY in the City of Englewood, Colorado, and I urge all Englewood citizens to support our City's efforts to protect our trees and woodlands. Further, I urge all Englewood citizens to plant trees to gladden the hearts and promote the well being of present and future generations. GIVEN under my hand and seal this 16th day of April, 2018. Rita Russell, Mayor Pro Tem Page 11 of 248 COUNCIL COMMUNICATION TO: Mayor and Council FROM: Jackie McKinnon DEPARTMENT: City Clerk's Office DATE: April 16, 2018 SUBJECT: CB 12 - Retail Liquor Tasting Permit DESCRIPTION: CB 12 - Retail Liquor Tasting Permit RECOMMENDATION: Staff is recommending Council approve a Bill for an Ordinance establishing a Retail Liquor Tasting Permit in accordance with C.R.S. 12-47-301(10) and applicable provisions of the Englewood Municipal Code with an effective date of May 7, 2018. Tastings are a sampling of malt, vinous, or spirituous liquors that may occur on the premises of a retail liquor store licensee or liquor-license drugstore licensee by adult patrons of the licensee pursuant to the provisions of section 12-47-301(10), C.R.S. ANALYSIS: The City Clerk's office has received many inquires from local retail liquor store owners requesting to have tastings at their liquor store. An alcohol beverage Tastings Permit allows a retail liquor store to conduct sample tastings of alcohol beverages within their own establishments. The City Clerk's office has researched surrounding cities policies and ordinances when considering the Tasting Permit. FINANCIAL IMPLICATIONS: A licensing and application fee will be charged for a Tasting Permit. Staff is recommending a $100.00 fee. The cost recovery is 100%. The estimated revenue from the fees based on 14 licensed Liquor Stores in Englewood would generate approximately $1400.00. A Resolution will come forward May 7, 2018 with the proposed fees. CONCLUSION: Staff is recommending approval of the Retail Liquor Store Tasting Ordinance in accordance with C.R.S. 12-47-301(10) and applicable provisions of the Englewood Municipal Code for 2018 (effective February 6, 2018). ATTACHMENTS: Ordinance Alcohol Beverage Tasting General Information Proposed Rate Change Information Page 12 of 248 1 BY AUTHORITY ORDINANCE NO. _____ COUNCIL BILL NO. 12 SERIES OF 2018 INTRODUCED BY COUNCIL MEMBER ________________ A BILL FOR AN ORDINANCE AMENDING TITLE 5, CHAPTER 3A, SECTION 9, OF THE ENGLEWOOD MUNICIPAL CODE 2000 PERTAINING TO SPECIAL EVENT AND ALCOHOL TASTING PERMITS, INCLUDING AUTHORIZATION OF ALCOHOL BEVERAGE TASTINGS, AND LICENSURE THEREOF, AND AMENDING TITLE 5, CHAPTER 3B, SECTION 8, REGARDING APPLICABLE FEES, ALL WITHIN THE CITY OF ENGLEWOOD, COLORADO. WHEREAS, the Colorado General Assembly, through C.R.S. 12-47-301(10), allows licensees of retail liquor stores or liquor-licensed drugstores to conduct alcohol beverage tastings on the premises; and WHEREAS, the Colorado General Assembly, through C.R.S. 12-47-301(10), allows the City Council to authorize by ordinance alcohol beverage tastings within the City in conformance with that statute. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, AS FOLLOWS: Section 1. The City Council of the City of Englewood, Colorado hereby authorizes amending Title 5, Chapter 3A, Section 9 of the Englewood Municipal Code 2000 as follows: 5-3A-9: Special Event and Alcohol Tasting Permits for Consumption of Beverages containing Alcohol or Liquor. A. Special Event Permits for the consumption of beverages containing alcohol or liquor are hereby authorized within the City in accordance with C.R.S.12-48-101, et seq. 1. The authority may grant to an applicant a special event permit in accordance with the Colorado Liquor Code and subject to the limitations as set forth in C.R.S.12-48-101 , et seq. as the same may be amended from time to time. 2. A special event permit under this Section is a permit for the sale, by the drink only, of fermented malt beverages, as defined in C.R.S. 12-46-103, or the sale, by the drink only, of malt, spirituous, or vinous liquors, as defined in C.R.S. 12-47-103, to organizations and political candidates qualifying under C.R.S. 12-48-102, subject to the applicable provisions of and limitations imposed by State law. Page 13 of 248 2 B. Alcohol Tastings for the sampling of beverages containing alcohol or liquor are hereby authorized within the City in accordance with.C.R.S. 12-47-301(10). 1. The authority may grant to a holder of a City of Englewood retail liquor license or liquor-licensed drug-store (licensee) an Alcohol Beverage Tastings Permit in accordance with the provisions of this Chapter and subject to the limitations as set forth in C.R.S. 12-47-301(10), as the same may be amended from time to time. 2. Terms applicable to tasting events for beverages containing alcohol or liquor as set forth in C.R.S. 12-47-301(10) include, but are not limited to: a. Tasting of a beverage containing alcohol or liquor is the sampling of malt, vinous, or spirituous liquors that may occur on the premises of a retail liquor store or liquor-licensed drugstore by patrons 21 years of age older pursuant to the terms of a permit authorized in accordance with the provisions of C.R.S. 12-47-301(10). b. The size of an individual alcohol sample provided at a tasting shall not exceed one ounce of malt or vinous liquor or one-half of one ounce of spirituous liquor. c. Tastings shall not exceed a total of five hours in duration per day, which need not be consecutive. d. Tastings shall be conducted only during the operating hours in which the licensee on whose premises the tastings occur is permitted to sell beverages containing alcohol or liquor and in no case earlier than 11 a.m. or later than 7 p.m. e. The licensee shall not serve more than four individual samples to a patron during a tasting. f. Samples of beverages containing alcohol or liquor shall be in open containers and shall be provided to a patron free of charge. Section 2. The City Council of the City of Englewood, Colorado hereby authorizes amending Title 5, Chapter 3B, Section 8 of the Englewood Municipal Code 2000 as follows: 5-3B-8: Special Events and Alcohol Tasting Permit Fees shall be set by City Council Resolution and shall be in addition to any fees imposed by the State. Section 3. General provisions applicable to interpretation and application of this Ordinance: Applicability of Title 1, Chapter 2, Saving Clause. The provisions of Title 1, Chapter 2, Saving Clause apply to interpretation and application of this Ordinance, unless otherwise set forth in Section 1 above, including, but not limited to, the provisions regarding severability, inconsistent ordinances or code provisions, effect of repeal or modification, and legislation not affected by repeal. Page 14 of 248 3 Enforcement. The provisions of Title 1, Chapter 42, General Penalty mandate that except as otherwise provided within specific Titles, Chapters, or Sections of the Englewood Municipal Code, the violation of any provisions of the Code or of any secondary code adopted therein shall be punished by a fine not exceeding two thousand six hundred and fifty dollars ($2,650.00) or imprisonment for a term not exceeding three hundred sixty (360) days or by both such fine and imprisonment. Safety Clauses. The City Council hereby finds, determines, and declares that this Ordinance is promulgated under the general police power of the City of Englewood, that it is promulgated for the health, safety, and welfare of the public, and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The City Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be obtained. Introduced, read in full, and passed on first reading on the 16th day of April, 2018. Published by Title as a Bill for an Ordinance in the City’s official newspaper on the 19th day of April, 2018. Published as a Bill for an Ordinance on the City’s official website beginning on the 18th day of April, 2018. Rita Russell, Mayor Pro Tem ATTEST: Stephanie Carlile, City Clerk I, Stephanie Carlile, City Clerk of the City of Englewood, Colorado, hereby certify that the above and foregoing is a true copy of a Bill for an Ordinance introduced, read in full, and passed on first reading on the 16th day of April, 2018. Stephanie Carlile Page 15 of 248 ALCOHOL BEVERAGE TASTING GENERAL INFORMATION City of Englewood Retail Liquor Stores At all times, including during tastings, state statutes and local ordinances governing Retail Liquor Stores apply. The reader is strongly advised to read and become familiar with the requirements and restrictions contained in Section 12-47-301(10), C.R.S  An Alcohol Beverage Tastings Permit is valid only for the period of the existing liquor license.  An Alcohol Beverage Tastings Permit application must be submitted to the City at least 30 days prior to the first event. To avoid delay in the approval of the yearly permit, applicants must provide complete information as requested on the application form.  The licensee may amend an approved tastings schedule by delivering to the Office of the City Clerk a Notice of Amendment at least 48 hours prior to the unscheduled event.  Only persons who have completed state-approved server training may conduct or participate in tastings events. Certificates of Training must be filed with the City Clerk prior to the event.  A valid Alcohol Beverage Tastings Permit must be posted prominently on the licensed premises during all tasting events.  The alcohol used in a tasting shall be purchased through a licensed wholesaler, licensed brewpub, or licensed winery.  The size of the individual samples shall not exceed one ounce of malt or vinous liquor or one-half ounce of spirituous liquor. The licensee shall not serve more than four individual samples to a patron during a Tasting.  Tastings shall not exceed a total of five hours in duration per day, which hours need not be consecutive, and shall be conducted only during the operation hours in which the licensee on whose premises the tastings occur is permitted to sell alcoholic beverages, and in no case earlier than 11 a.m. or later than 7 p.m.  Tastings may occur on no more than four of the six days from a Monday to the following Saturday, not to exceed one hundred four days per year.  The licensee shall prohibit patrons from leaving the licensed premises with an unconsumed alcohol sample. Page 16 of 248  The licensee shall promptly remove all open and unconsumed alcohol beverage samples from the licensed premises or shall destroy the samples immediately following the completion of the Alcohol Beverage Tasting.  Alcohol samples shall be in open containers and shall be provided to a patron free of charge.  No manufacturer of spirituous or vinous liquors shall induce a licensee through free goods or financial or in-kind assistance to favor the manufacturer’s products being sampled at a tasting. The licensee shall bear the financial and all other responsibility for a tasting. Page 17 of 248 Proposed Rate Change Information for Council 2-5-2018 Regular Council Meeting Rate Name: Tastings Permit Description: Retail Liquor Tastings Permit Fee What: Application Fee Impacted parties: Retail Liquor Stores Rate Changes: Proposed Current Prior Proposed 2/1/2018 Change: Rate Installed: Rate Installed: $100.00 Reason for rate change: New Tasting License Reason for rate change: Reason for rate change: How the current proposed rate was determined: Average staff salary including benefits = $ 97.00 per hour. Cost of License and Supplies = $3.00 Fees from comparable cities: Wheat Ridge: $100.00 Centennial: $50.00 Hayden: $125.00 Idaho Springs: $100.00 Denver: $100.00 Castle Rock: $200.00 Aurora: $133.00 Lone Tree: $50.00 Cost Recovery %: 100 Estimated Revenue from the rate/fee increase: 14 Licensed Liquor Stores = $1400.00 Page 18 of 248 COUNCIL COMMUNICATION TO: Mayor and Council FROM: Paul Weller DEPARTMENT: Public Works DATE: April 16, 2018 SUBJECT: CB 10 - Revisions to Floodplain Regulations DESCRIPTION: CB 10 - Revisions to Floodplain Regulations RECOMMENDATION: Staff recommends approval of Council Bill 10 that revises the Englewood Municipal Code Chapter 16, Section 4, paragraph 2 Jurisdiction and Applicability. PREVIOUS COUNCIL ACTION: Council passed a resolution acknowledging the submission of the Harvard Gulch and Dry Gulch Flood Hazard Area Delineation Report to the Colorado Water Conservation Board on January 16, 2018. SUMMARY: Sub-paragraph A1 is to be modified to reflect the new effective date on all Flood Insurance Rate Maps (FIRM) based on revisions to floodplain mapping for Coon Creek, Dutch Creek and Coal Creek on FIRM panels 08005CO431L and 08005CO432L. None of the revised mapping took place within the City of Englewood, and all of the floodplains within the City of Englewood as shown on the FIRM from December 17, 2010 are unchanged. Sub-paragraph A3 is to be added to include the Flood Hazard Area Delineation for Harvard Gulch and Dry Gulch. This is being added to meet the expectations of the Colorado Water Conservation Board and the Urban Drainage and Flood Control District and their acceptance of the Dry Gulch Floodplain. ANALYSIS: The attachment dated January 3, 2018 is an official notice from FEMA regarding the new effective date of FIRM panels 08005CO431L and 08005CO432L. Revisions to the flood insurance mapping of Coon Creek, Coal Creek and Dutch Creek were made to these panels. These revisions do not affect any defined floodplain within the City of Englewood. The revision to the municipal code is to only recognize the new effective date of these panels. Page 19 of 248 The attachment dated October 18, 2017 is a preliminary notice regarding the changes to these panels and it includes a message from Terri Fead from the Urban Drainage and Flood Control District confirming that no changes are made to floodplains with the City of Englewood with this revision. The addition of Sub-paragraph A3 incorporates the defined floodplain for Dry Gulch into Englewood Municipal Code for regulatory purposes. The Flood Hazard Area Delineation for Harvard Gulch and Dry Gulch, Dated February, 2017 prepared by Matrix Design Group was accepted by the Colorado Water Conservation board at their regular board meeting on January 23, 2018. The inclusion of this floodplain mapping into the municipal code will keep the City in good standing with the Colorado Water Conservation Board and FEMA. Dry Gulch will remain a locally controlled floodplain and will not be submitted to FEMA for incorporation into the National Flood Insurance Program without additional public meetings and direction from the Englewood City Council. The public has been notified three times about the Master Plan and Flood Hazard Area Delineation for Dry Gulch. An open house was held in November of 2015 to review the Master Plan and three alternate plans to reduce the effect of flooding. The clear choice of those attending was the "100 year all pipe" option. A meeting was held in February of 2017 to review the Flood Hazard Area Delineation plan and to discuss the consequenses of submitting the plan to FEMA for regulation. A lot of the discussion at this meeting revolved around the mandatory insurance requirements and the insurance rates that would come with FEMA regulation. In November of 2017, a letter was sent to property owners and residents to update them on the status of the floodplain designation. Out of 387 letters sent out two calls and one letter were received. Staff has had one meeting with a home seller and their potential buyer. FINANCIAL IMPLICATIONS: As of December 31, 2017, there were 43 flood insurance policies with a total value of $15,920,800 issued by the NFIP for properties within the City of Englewood. Failure to recognize the new effective date of the FIRM may result in the cancellation of these policies. Failure to include Dry Gulch into the Floodplain Regulations in the Englewood Municipal Code endangers future funding from the UDFCD for the $20M storm sewer project for Dry Gulch as well as funding annual maintenance projects, which in 2018 amounts to $135,000. CONCLUSION: Approval of these revisions will meet the expectations of the Urban Drainage and Flood Control District, Colorado Water Conservation Board, FEMA and the National Flood Insurance Program. ATTACHMENTS: Council Bill #10 FEMA Letter dated January 3, 2018 FEMA Letter Dated October 18, 2017 with clarification from UDFCD Proposed Revision to EMC Section 16-4-2 Jurisdiction and Applicability Page 20 of 248 1 BY AUTHORITY ORDINANCE NO. ____ COUNCIL BILL NO. 10 SERIES OF 2018 INTRODUCED BY COUNCIL MEMBER OLSON AN ORDINANCE AMENDING TITLE 16, CHAPTER 4, SECTION 2 OF THE ENGLEWOOD MUNICIPAL CODE 2000, REGARDING UPDATES TO THE JURISIDICTION AND APPLICABILITY OF THE FLOODPLAIN REGULATIONS OF THE CITY OF ENGLEWOOD, COLORADO. WHEREAS, The legislature of the State has in Title 29, Article 20 C.R.S., as amended, delegated the responsibility to local governmental units to adopt regulations designed to promote the public health, safety, and general welfare of its citizenry by minimizing flood losses; WHEREAS, The flood hazard areas of the City are subject to periodic inundation which can result in loss of life and property, health and safety hazards, disruption of commerce and governmental services, extraordinary public expenditures for flood protection and relief, and impairment of the tax base, all of which adversely affect the public health, safety, and general welfare; WHEREAS, These flood losses are caused by the cumulative effect of obstructions in special flood hazard areas that cause an increase in flood heights and velocities, and by the occupancy of flood hazard areas by uses vulnerable to floods and hazardous to other lands because they are inadequately anchored, elevated, flood proofed or otherwise protected from flood damage; WHEREAS, It is the purpose of the adopted Floodplain regulations of the City to promote the public health, safety and general welfare, and to minimize public and private losses due to flood conditions in specific areas; and WHEREAS, The City of Englewood has until April 18, 2018 to adopt and have the Department of Homeland Security’s Federal Emergency Management Agency (FEMA) Regional Office approve updated floodplain management measures that satisfy 44 C.F.R. Section 60.3(d) of the National Flood Insurance Program regulations to maintain federal flood insurance for properties within the City. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, AS FOLLOWS: Section 1. Amendment of Title 16, Chapter 4, Section 2. Title 16, Chapter 4, Section 2 of the Englewood Municipal Code shall be amended as follows: 16-4-2: Jurisdiction and Applicability. A. Applicability. The provisions of this Chapter shall apply to all land within the City defined as: 1. The special flood hazard areas identified by the Federal Emergency Management Agency in a scientific and engineering report entitled "Flood Insurance Study - Arapahoe County, Colorado, and Incorporated Areas" dated December 17, 2010, April 18, 2018 with Page 21 of 248 2 accompanying Flood Insurance Rate Maps and Flood Boundary-Floodway Maps (FIRM and FBFM) and any revisions thereto, and 2. The boundaries of the West Harvard Gulch Flood Hazard Area as shown on Sheets 13 and 14 in a report entitled "Flood Hazard Area Delineation, Harvard Gulch, West Harvard Gulch, and Dry Gulch" dated December 1979, prepared by Gingery Associates, Inc., and approved by the Colorado Water Conservation Board on January 30, 1980. 3. Flood Hazard Area delineated as Harvard Gulch and Dry Gulch prepared by Matrix Design Group in February of 2017, and approved by the Colorado Water Conservation Board on January 23, 2018. The above Official Flood Studies are hereby adopted by reference and declared to be a part of this Title. B. Basis for Establishing Special Flood Hazard Areas. The City hereby establishes floodplains and floodways whose boundaries are those of the designated 100-year floodplain, special flood hazard areas and the designated floodways as are shown or tabulated in the Flood Insurance Study for the City of Englewood. C. Compliance. No structure or land located in a special flood hazard area shall hereafter be constructed, located, extended, converted, altered or have its use changed without full compliance with the terms of this Chapter and all other applicable regulations. These regulations meet the minimum requirements set forth by the Colorado Water Conservation Board and the National Flood Insurance Program. 1. Floodplain Development Permit. A Floodplain Development Permit shall be required prior to commencement of any construction or other development to ensure conformance with the provisions of this Chapter. 2. Certificate of Compliance. a. No vacant land shall be occupied or used and no building shall be hereafter erected, altered, or moved on the floodplains of any watercourse, nor shall such buildings be occupied, until a certificate of compliance has been issued by the Floodplain Administrator. b. The applicant shall submit a certification by a registered Colorado professional engineer to the Floodplain Administrator that the finished fill and building floor elevations, floodproofing measures, or other protection factors were accomplished in compliance with the provisions of this Chapter. This certification shall also state whether or not the structure contains a basement. Within ten (10) days after receipt of such certification from the applicant, the Floodplain Administrator shall issue a certificate of compliance only if the building or premises and the proposed use thereof, conform with all of the requirements of this Chapter. D. Abrogation and Greater Restrictions. The regulations of this Chapter shall be construed as being supplementary to the regulations imposed on the same lands by the underlying zone classification. This Chapter is not intended to repeal, abrogate, or impair any existing easement, covenants, or deed restrictions. However, where this Chapter and other ordinance, easement, covenant, or deed restriction conflict or overlap, whichever imposes the more stringent restrictions shall apply. E. Interpretation. In their interpretation and application, the provisions of this Chapter shall be held to be minimum requirements, shall be liberally construed in favor of the City, and shall be deemed neither to limit nor repeal any other powers granted under State Statutes. Page 22 of 248 3 F. Warning and Disclaimer of Liability. The degree of flood protection intended to be provided by this Chapter is considered reasonable for regulatory purposes and is based on engineering and scientific considerations. Larger floods may occur on occasions, or the flood height may be increased by man -made or natural causes, such as ice jams and bridge openings restricted by debris. This Chapter does not imply that the areas outside of special flood hazard areas or land uses permitted within such areas will always be free from flooding or flood damages. This Chapter shall not create liability on the part of the City or any officer or employee thereof for any flood damages that result from reliance on this Chapter or any administrative decision lawfully made thereunder. G. Severability. See Section 16-1-10 EMC, (Severability). Section 2. Standard ordinance provisions. Applicability of Title 1, Chapter 2, Saving Clause. The general provisions of Title 1, Chapter 2, Saving Clause apply to interpretation and application of this Ordinance, including, but not limited to, the provisions regarding severability, inconsistent ordinances or code provisions, effect of repeal or modification, and legislation not affected by repeal. Safety Clauses. The City Council hereby finds, determines, and declares that this Ordinance is promulgated under the general police power of the City of Englewood, that it is promulgated for the health, safety, and welfare of the public, and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The City Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be obtained. Introduced, read in full, and passed on first reading on the 2nd day of April, 2018. Published by Title as a Bill for an Ordinance in the City’s official newspaper on the 4th day of April, 2018. Published as a Bill for an Ordinance on the City’s official website beginning on the 3rd day of April, 2018. Read by Title and passed on final reading on the 16th day of April, 2018. Published by Title in the City’s official newspaper as Ordinance No.__, Series of 2018, on the 19th day of April, 2018. Published by title on the City’s official website beginning on the 18th day of April, 2018 for thirty (30) days. This Ordinance shall take effect thirty (30) days after publication following final passage. Rita Russell, Mayor Pro Tem ATTEST: Page 23 of 248 4 _________________________________ Stephanie Carlile, City Clerk I, Stephanie Carlile, City Clerk of the City of Englewood, Colorado, hereby certify that the above and foregoing is a true copy of the Ordinance passed on final reading and published by Title as Ordinance No. ___, Series of 2018. Stephanie Carlile Page 24 of 248 Page 25 of 248 Page 26 of 248 CERTIFIED MAIL IN REPLY REFER TO: RETURN RECEIPT REQUESTED 115-N October 18, 2017 The Honorable Joe Jefferson Community: City of Englewood, Mayor, City of Englewood Arapahoe County, 1000 Englewood Parkway Colorado Englewood, Colorado 80110 Community No.: 085074 Map Panels Affected: See FIRM Index Dear Mayor Jefferson: On March 10, 2016, the Department of Homeland Security’s Federal Emergency Management Agency (FEMA) provided you with Preliminary copies of the revised Flood Insurance Rate Map (FIRM) and Flood Insurance Study (FIS) report for Arapahoe County, Colorado and Incorporated Areas for your review and comment. Those Preliminary copies presented revised flood hazard information for your community, but did not present any proposed addition of and/or modification to Base (1-percent annual chance) Flood Elevations, base flood depths, Special Flood Hazard Areas (SFHAs), zone designations, or regulatory floodways. Therefore, no appeal period was required. Your community was provided with a 30-day review period, and that period has now elapsed. No comments or concerns about the Preliminary copies of the revised FIRM and FIS report were submitted to FEMA; therefore, the revised FIRM panels, as referenced above, will be effective as of April 18, 2018, and revise the FIRM that was in effect prior to that date. For insurance rating purposes, the community number and new suffix code for the FIRM panels being revised are indicated on the panels and must be used for all new policies and renewals. The modifications are pursuant to Section 206 of the Flood Disaster Protection Act of 1973 (Public Law 93-234) and are in accordance with the National Flood Insurance Act of 1968, as amended (Title XIII of the Housing and Urban Development Act of 1968, Public Law 90-448), 42 U.S.C. 4001- 4128, and 44 CFR Part 65. Because of the modifications to the FIRM and FIS report for your community made by this map revision, certain additional requirements must be met under Section 1361 of the 1968 Act, as amended, within 6 months from the date of this letter. Prior to April 18, 2018, your community is required, as a condition of continued eligibility in the National Flood Insurance Program (NFIP), to adopt or show evidence of adoption of floodplain management regulations that meet the standard of Paragraph 60.3(d) of the NFIP regulations. These standards are the minimum requirements and do not supersede any State or local requirements of a more stringent nature. It must be emphasized that all the standards specified in Paragraph 60.3(d) of the NFIP regulations must be enacted in a legally enforceable document. This includes the adoption of the effective FIRM and FIS report to which the regulations apply and the modifications made by this map revision. Some of the standards should already have been enacted by your community. Any additional requirements can be met by taking one of the following actions: Dutch Creek, Coon Creek, Coal Creek, No revisions within Englewood Page 27 of 248 2 1. Amending existing regulations to incorporate any additional requirements of Paragraph 60.3(d); 2. Adopting all the standards of Paragraph 60.3(d) into one new, comprehensive set of regulations; or 3. Showing evidence that regulations have previously been adopted that meet or exceed the minimum requirements of Paragraph 60.3(d). Communities that fail to enact the necessary floodplain management regulations will be suspended from participation in the NFIP and subject to the prohibitions contained in Section 202(a) of the 1973 Act as amended. A Consultation Coordination Officer (CCO) has been designated to assist your community with any difficulties you may be encountering in enacting the floodplain management regulations. The CCO will be the primary liaison between your community and FEMA. For information about your CCO, please contact: Ms. Jeanine Petterson Director, Federal Insurance and Mitigation Division Federal Emergency Management Agency, Region VIII Denver Federal Center, Building 710 P.O. Box 25267 Denver, CO 80225-0267 (303) 235-4830 To assist your community in maintaining the FIRM, we reviewed our records to determine if any previous Letters of Map Change (i.e., Letters of Map Amendment, Letters of Map Revision) will be superseded when the revised FIRM panels become effective. According to our records, no Letters of Map Change were issued previously for the affected FIRM panels. The FIRM panels have been computer-generated. Once the FIRM and FIS report are printed and distributed, the digital files containing the flood hazard data for the entire county can be provided to your community for use in a computer mapping system. These files can be used in conjunction with other thematic data for floodplain management purposes, insurance purchase and rating requirements, and many other planning applications. Copies of the digital files or paper copies of the FIRM panels may be obtained by calling our FEMA Map Information eXchange (FMIX), toll free, at 1-877-FEMA MAP (1-877-336-2627). In addition, your community may be eligible for additional credits under our Community Rating System if you implement your activities using digital mapping files. If you have any questions regarding the necessary floodplain management measures for your community or the NFIP in general, we urge you to contact the Director, Mitigation Division of FEMA in Denver, Colorado at (303) 235-4830 for assistance. If you have any questions concerning mapping issues in general, please call our FMIX at the toll free number shown above. Additional information and resources your community may find helpful regarding the NFIP and floodplain management, such as The National Flood Insurance Program Code of Federal Regulations, Answers to Questions About the National Flood Insurance Program, Use of Flood Insurance Study (FIS) Data As Available Data, Frequently Asked Questions Regarding the Effects that Revised Flood Hazards have on Existing Structures, and National Page 28 of 248 3 Flood Insurance Program Elevation Certificate and Instructions, can be found on our website at http://www.floodmaps.fema.gov/lfd. Paper copies of these documents may also be obtained by calling our FMIX. Sincerely, Luis Rodriguez, P.E., Director Engineering and Modeling Division Federal Insurance and Mitigation Administration cc: Community Map Repository Brook Bell, Planner II and Interim Floodplain Administrator, City of Englewood Page 29 of 248 1 Paul Weller From:Terri Fead <tfead@udfcd.org> Sent:Tuesday, October 24, 2017 4:49 PM To:Paul Weller Cc:Brabenec, Dawn (dawn.brabenec@fema.dhs.gov); Porter, Stephanie; Shea Thomas; Bruce A. Behrer Subject:Letter of Final Determination for Dutch Creek, Coon Creek, and Coal Creek Physical Map Revision to City of Englewood Attachments:App_085074_Englewood_City_Colorado_115N.PDF; ProjectScope_Dutch,Coon,CoalCreekPMR.pdf Importance:High Hello Paul,    Given the current concerns regarding floodplain mapping within the City of Englewood, I wanted to explain a recent  letter that went to your Mayor.  The Letter of Final Determination (LFD) for the Dutch Creek, Coon Creek and Coal Creek  Physical Map Revision (PMR) was issued on October 18, 2017 (see attached letter).  As Floodplain Administrator, I  wanted to make sure that you knew about the letter, and that the Dutch Creek, Coon Creek and Coal Creek PMR  does  not result in any revisions within the City of Englewood jurisdiction.  The community received this letter because a  Flood Insurance Rate Panel (FIRM) affecting the City of Englewood was impacted, even though the revised study was  outside your jurisdiction.      Please let me know if you have questions or require additional information.    Thanks,  Terri    Terri Fead, P.E. Project Manager | Watershed Services URBAN DRAINAGE AND FLOOD CONTROL DISTRICT 2480 W. 26TH Ave. Suite 156-B | Denver, CO 80211 P: 303.455.6277 | www.udfcd.org Protecting people, property, and the environment   Page 30 of 248 Project Scope Coon Creek City and County of Denver 2 FIRM panels – 251H and 252H 1 Index Page 31 of 248 Project Scope Arapahoe County 10 FIRM panels – 216L, 217L, 218L, 219L, 240L, 431L, 432L, 507L, 530L, 550L 2 Index panels Communities affected: Aurora (no revised study), Englewood (no revised study), Littleton, Columbine Valley Dutch Creek Coal Creek Page 32 of 248 16‐4‐2: ‐ Jurisdiction and Applicability.   A. Applicability. The provisions of this Chapter shall apply to all land within the City defined as: 1. The special flood hazard areas identified by the Federal Emergency Management Agency in a scientific and engineering report entitled "Flood Insurance Study - Arapahoe County, Colorado, and Incorporated Areas" dated December 17, 2010, April 18, 2018 with accompanying Flood Insurance Rate Maps and Flood Boundary-Floodway Maps (FIRM and FBFM) and any revisions thereto, and 2. The boundaries of the West Harvard Gulch Flood Hazard Area as shown on Sheets 13 and 14 in a report entitled "Flood Hazard Area Delineation, Harvard Gulch, West Harvard Gulch, and Dry Gulch" dated December 1979, prepared by Gingery Associates, Inc., and approved by the Colorado Water Conservation Board on January 30, 1980. The above Official Flood Studies are hereby adopted by reference and declared to be a part of this Title.         3.      Flood Hazard Area delineated as Harvard Gulch and Dry Gulch prepared by Matrix Design          Group in February of 2017, and approved by the Colorado Water Conservation Board on          January 23, 2018.  B. Basis for Establishing Special Flood Hazard Areas. The City hereby establishes floodplains and floodways whose boundaries are those of the designated 100-year floodplain, special flood hazard areas and the designated floodways as are shown or tabulated in the Flood Insurance Study for the City of Englewood. C. Compliance. No structure or land located in a special flood hazard area shall hereafter be constructed, located, extended, converted, altered or have its use changed without full compliance with the terms of this Chapter and all other applicable regulations. These regulations meet the minimum requirements set forth by the Colorado Water Conservation Board and the National Flood Insurance Program. 1. Floodplain Development Permit. A Floodplain Development Permit shall be required prior to commencement of any construction or other development to ensure conformance with the provisions of this Chapter. 2. Certificate of Compliance. a. No vacant land shall be occupied or used and no building shall be hereafter erected, altered, or moved on the floodplains of any watercourse, nor shall such buildings be occupied, until a certificate of compliance has been issued by the Floodplain Administrator. b. The applicant shall submit a certification by a registered Colorado professional engineer to the Floodplain Administrator that the finished fill and building floor elevations, floodproofing measures, or other protection factors were accomplished in compliance with the provisions of this Chapter. This certification shall also state whether or not the structure contains a basement. Within ten (10) days after receipt of such certification from the applicant, the Floodplain Administrator shall issue a certificate of compliance only if the building or premises and the proposed use thereof, conform with all of the requirements of this Chapter. D. Abrogation and Greater Restrictions. The regulations of this Chapter shall be construed as being supplementary to the regulations imposed on the same lands by the underlying zone classification. This Chapter is not intended to repeal, abrogate, or impair any existing easement, covenants, or deed restrictions. However, where this Chapter and other ordinance, easement, covenant, or deed restriction conflict or overlap, whichever imposes the more stringent restrictions shall apply. Page 33 of 248 E. Interpretation. In their interpretation and application, the provisions of this Chapter shall be held to be minimum requirements, shall be liberally construed in favor of the City, and shall be deemed neither to limit nor repeal any other powers granted under State Statutes. F. Warning and Disclaimer of Liability. The degree of flood protection intended to be provided by this Chapter is considered reasonable for regulatory purposes and is based on engineering and scientific considerations. Larger floods may occur on occasions, or the flood height may be increased by man- made or natural causes, such as ice jams and bridge openings restricted by debris. This Chapter does not imply that the areas outside of special flood hazard areas or land uses permitted within such areas will always be free from flooding or flood damages. This Chapter shall not create liability on the part of the City or any officer or employee thereof for any flood damages that result from reliance on this Chapter or any administrative decision lawfully made thereunder. G. Severability. See Section 16-1-10 EMC, (Severability). (Ord. 10-44, § 1; Ord. 8-13, § 6) Page 34 of 248 COUNCIL COMMUNICATION TO: Mayor and Council FROM: Darren Hollingsworth DEPARTMENT: Community Development DATE: April 16, 2018 SUBJECT: CB 11 - Colorado Brownfields Revolving Loan Fund - Memorandum of Agreement Amendment 5 DESCRIPTION: CB 11 - Colorado Brownfields Revolving Loan Fund - Memorandum of Agreement Amendment 5 RECOMMENDATION: Staff recommends that Council approve the Bill for Ordinance allowing the City of Englewood to execute the proposed Colorado Brownfields Revolving Loan Fund Memorandum of Agreement Amendment 5. This amendment contains housekeeping measures and allows Englewood to remain a part of the coalition of member cities involved in the administration and oversight for the Colorado Brownfields Revolving Loan Fund. PREVIOUS COUNCIL ACTION: Council approved Ordinance 31, series 2000 for the Intergovernmental agreement entitled, “Colorado Brownfields Revolving Loan Fund Memorandum of Agreement.” This agreement established the Colorado Brownfields Revolving Loan Fund. SUMMARY: This amendment contains housekeeping measures and allows Englewood to remain a part of the coalition of member cities involved in the administration and oversight for the Colorado Brownfields Revolving Loan Fund. This document also enables the CBRLF to apply for additional funding opportunities as grants through the US EPA, should additional funding become available. In 2001 Englewood benefited from its membership in the coalition when the City borrowed funds from the Colorado Brownfields Revolving Loan Fund to finance the environmental cleanup of a former municipal landfill and transform the site into Centennial Park. In 2017 BLVD Builders received a $1.08 M loan to fund the environmental cleanup of the former General Iron Works site in Engewlood. ANALYSIS: The City of Englewood is a party to the Colorado Brownfields Revolving Loan Fund (CBRLF) coalition, which was founded in 2001. CBRLF was created through a partnership among the cities of Englewood, Lakewood, Loveland, Denver, Commerce City, the Colorado Housing and Finance Authority (CHFA), and the Colorado Department of Public Health and Environment (CDPHE). The initial focus of the fund was to finance environmental cleanups along the Colorado Front Range within the five member cities. Later, after infusions of additional funding Page 35 of 248 from EPA, El Paso County became a partnering member of the fund, and the focus of the fund was expanded to include financing environmental cleanup on a state-wide basis. Responsibilities of the CBRLF partners have remained consistent since the fund was established. CDPHE is responsible for managing the Cooperative Agreements that make up the fund, and CHFA serves as the fund’s fiscal agent, responsible for administering loans and sub-grants. CDPHE, CHFA, and other CBRLF members are responsible for outreach and marketing the CBRLF. The Board meets on an as needed basis to conduct necessary business and to consider loan and sub-grant applications. Board members have no fiscal responsibility to the fund, other than the time and effort of delegated board members. The CBRLF is capitalized through a number of Federal Brownfields grants provided by EPA Region VIII. The fund accomplishes its mission of facilitating environmental clean-up and infill redevelopment through the issuance of low cost loans and awards sub-grants to eligible local governments and non-profits. It is the intent of the CBRLF Board to use loan repayments and other program income to develop a true revolving loan fund to provide new loans and other assistance for authorized purposes. If properly managed, such funds can operate in perpetuity. FINANCIAL IMPLICATIONS: Englewood has no financial commitment to participate in the coalition. The only non-monetary commitment is very minimal staff time involved with the periodic meetings to review loan applications and conduct CBRLF business. ATTACHMENTS: Council Bill 11 Memorandum of Agreement Amendment 5 Original Agreement and Amendments #2-4 (Amendment #1 was not executed) Page 36 of 248 BY AUTHORITY ORDINANCE NO. ____ COUNCIL BILL NO. 11 SERIES OF 2018 INTRODUCED BY COUNCIL MEMBER WINK AN ORDINANCE AUTHORIZING AN INTERGOVERNMENTAL AGREEMENT ENTITLED “COLORADO BROWNFIELDS REVOLVING LOAN FUND MEMORANDUM OF AGREEMENT, AMENDMENT 5” PERTAINING TO THE COLORADO BROWNFIELDS REVOLVING LOAN FUND BETWEEN THE CITY OF ENGLEWOOD, THE CITY AND COUNTY OF DENVER, COMMERCE CITY, THE CITY OF LAKEWOOD, THE CITY OF LOVELAND, THE CITY OF WESTMINSTER AND EL PASO COUNTY COLORADO AS WELL AS THE COLORADO HOUSING AND FINANCE AUTHORITY AND THE COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT. WHEREAS, the Colorado Brownfields Revolving Loan Fund was established to facilitate the reuse and/or redevelopment of contaminated sites by making low cost funding available for financing environmental cleanups through grants from the Environmental Protection Agency; WHEREAS, Englewood is represented in a coalition of Front Range communities, which was established to finance environmental cleanups along the Colorado Front Range within the seven local governments as well as the State overall; WHEREAS, this coalition is comprised of participants from City of Englewood, Commerce City, Lakewood, Loveland, Westminster, El Paso County, the Colorado Housing and Finance Authority, the Colorado Department of Health and Environment and the City and County of Denver; WHEREAS, the Colorado Brownfields Revolving Loan Fund presents an opportunity for the Englewood business community by providing financing for environmental cleanup activities; WHEREAS, the City Council of the City of Englewood authorized the City to enter into an IGA which established the Colorado Brownfields Revolving Loan Fund with the passage of Ordinance Number 31, Series of 2000; WHEREAS, the passage of this ordinance authorizes an amendment to describe the organization and the responsibilities of the Colorado Brownfields Revolving Loan Fund Board, and describes meeting and voting requirements and also describes the various Page 37 of 248 cooperative agreements that have capitalized the Colorado Brownfields Revolving Loan Fund. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, AS FOLLOWS: Section 1. The “Colorado Brownfields Revolving Loan Fund Memorandum of Agreement, Amendment 5” attached hereto as "Exhibit A," is hereby accepted and approved by the Englewood City Council. Section 2. The Mayor is authorized to execute and the City Clerk to attest and seal the “Colorado Brownfields Revolving Loan Fund Memorandum of Agreement, Amendment 5” for and on behalf of the City of Englewood, Colorado. Section 3. The coalition uses Federal Brownfields Revolving Loan Funds. Introduced, read in full, and passed on first reading on the 2nd day of April, 2018. Published by Title as a Bill for an Ordinance in the City’s official newspaper on the 4th day of April, 2018. Published as a Bill for an Ordinance on the City’s official website beginning on the 3rd day of April, 2018. Read by Title and passed on final reading on the 16th day of April, 2018. Published by Title in the City’s official newspaper as Ordinance No.__, Series of 2018, on the 19th day of April, 2018. Published by title on the City’s official website beginning on the 18th day of April, 2018 for thirty (30) days. This Ordinance shall take effect thirty (30) days after publication following final passage. Rita Russell, Mayor Pro Tem ATTEST: _________________________________ Stephanie Carlile, City Clerk Page 38 of 248 I, Stephanie Carlile, City Clerk of the City of Englewood, Colorado, hereby certify that the above and foregoing is a true copy of the Ordinance passed on final reading and published by Title as Ordinance No. ___, Series of 2018. Stephanie Carlile Page 39 of 248 1 COLORADO BROWNFIELDS REVOLVING LOAN FUND MEMORANDUM OF AGREEMENT Amendment 5 (MOA) Introduction Purpose The purpose of the Colorado Brownfields Revolving Loan Fund (CBRLF and/or Fund), as represented by its Board of Directors (Board or Board of Directors), is to facilitate the reuse and/or redevelopment of contaminated sites by making low-cost funding available for financing environmental cleanups. The funding for this endeavor is through grants from the U.S. Environmental Protection Agency (EPA). Brownfields are defined as abandoned, idled, or under-utilized industrial and commercial facilities where expansion or redevelopment is complicated by real or perceived environmental contamination. A major barrier to redeveloping brownfields sites in Colorado is that contaminated sites face not only the environmental challenge of cleanup, but also marginal economic potential. In the Colorado real estate market, properties are being avoided because of liability and cleanup cost concerns. The City and County of Denver; the Cities of Commerce City, Englewood, Lakewood, Loveland and Westminster; El Paso County (collectively, Local Governments); the Colorado Housing and Finance Authority (CHFA); and the Colorado Department of Public Health and Environment (CDPHE) (collectively, CBRLF Coalition) have agreed to cooperate and to create the Colorado Brownfields Revolving Loan Fund (CBRLF). The focus of the Fund is to finance environmental cleanups along the Colorado Front Range within these seven Local Governments as well as the State overall. Each of the Local Governments was eligible for, applied for and was awarded by EPA, brownfields cleanup revolving loan funds. In order to consolidate the administrative requirements and to pool the available revolving loan funds, CDPHE prepared a coordinated application to EPA for funding the CBRLF. CDPHE has also been awarded brownfields cleanup revolving loan funds, making CBRLF available statewide. The CBRLF Coalition was first awarded brownfields revolving loan funds in 2002. That grant expired in 2010 and the associated cooperative agreement has been closed. Under the terms of that agreement, CBRLF was allowed to retain all repayments of principal, interest, and loan earnings as “program income.” Since the original award in 2002, CDPHE, on behalf of the CBRLF Coalition, has applied for and received several additional awards of brownfields revolving loan funds from EPA. It is the intent of the Board to use program income, existing grant funds, and future awards and program income to continue operating CBRLF. In general, CHFA and the other participants will be responsible for outreach and marketing the CBRLF. CHFA will provide financial expertise for reviewing loan applications to the Fund. CDPHE will provide the technical knowledge needed to ensure successful environmental cleanups and help Local Governments review applications for consistency with CBRLF requirements and assist the Chair in conducting business of the CBRLF. This arrangement is shown in a graph as Exhibit 1. Exhibit A Page 40 of 248 2 CBRLF is envisioned to be a source of capital for cleanup of both publicly and/or privately held property. Due to statutory limitations, CHFA will serve as the fiscal agent for CDPHE, operating and servicing loan and sub-grant agreements. Repayment of loan funds, including any interest and principal, will be to CBRLF through CHFA. Duration This Memorandum or Agreements (MOA) becomes effective upon signature by the nine (9) entities at the end of the document (Effective Date). It will automatically terminate on June 30, 2022. It can be extended in 5-year periods by mutual agreement of the signing parties, and its effectiveness on a signing party can be terminated at any time, for any reason, with a 30-day written notice provided to the Board by such signing party. Each of the Local Governments agrees to appoint a person to the Board of Directors through June 30, 2022. In April 2022 the Board shall review this MOA and make changes as necessary, and the participating entities can reaffirm their desire to participate. This MOA may be amended, as needed, by a unanimous decision of the Board of Directors. Board of Directors Organization CBRLF will be administered through a Board of Directors as its organizational entity, with members chosen from each of the participating cities and counties, CHFA, and CDPHE. The Board will meet to discuss issues and make decisions regarding the use of the CBRLF. This MOA prescribes operating guidelines for the Board of Directors. Roles and Responsibilities The Board of Directors may provide assistance with financial and environmental issues impacting the sale, use, reuse, and/or redevelopment of both publicly and privately held property throughout Colorado. The Local Government Board members are responsible for: (1) attending scheduled board meetings, (2) ensuring that projects funded under this program are consistent with the goals and objectives of CBRLF, (3) providing loan fund policy direction to CHFA and CDPHE, and (4) providing assistance with development of applications for additional CBRLF grants. The Board of Directors has the ultimate responsibility for approving or denying applications for funding to CBRLF. CDPHE, acting as the “Lead Agency” under EPA grants BL98811601, RP98899701, BF98899601 and 2B97863101, must assure that the Board actions are in accordance with the terms of the respective cooperative agreements (each a “Cooperative Agreement” and, collectively, the “Cooperative Agreements”). The Board must not spend funds except for their intended use as defined in the Cooperative Agreements and the EPA Brownfields Cleanup Revolving Loan Fund Administrative Manual (OSWER, EPA 500-B-98.001, May 1998) located via Internet at www.epa.gov/Brownfields. Brownfields Board MembersCBRLF Members. Pursuant to this MOA, the CBRLF is currently comprised of the following members: The City and County of Denver, the Cities of Commerce City, Englewood, Lakewood, Loveland and Westminster; El Paso County (collectively, Local Governments); the Colorado Housing and Finance Authority (CHFA); and the Colorado Page 41 of 248 3 Department of Public Health and Environment (CDPHE) Board of Directors . The Board of Directors shall be comprised of one member from each of the Local Governments and one member from each of CHFA and CDPHE. Each member must be authorized, in writing, to participate on the Board and must be delegated the authority, by his/her organization, to make decision necessary to conduct the business of the CBRLF, including but not limited to, decisions regarding the use of funds available to the CBRLF. Chair. The Board shall select a Chair who shall preside over all Board meetings. The Chair shall, in consultation with other members of the Board, prepare agendas and facilitate Board meetings. The Chair may designate a member of the Board to assume the duties of Chair in his/her absence. The Chair will also distribute quarterly budget updates to all members. Additional Duties. Board members shall perform such other duties and functions as may be required from time to time by the Board. Vacancies. Should the office of Chair become vacant, the Board shall select a successor at the next regular meeting or at a special meeting called for this purpose. Conflict of Interest. No member of the Board may vote on projects in which that Board member has a direct personal financial interest in any contract or Brownfields Project, existing or proposed, that may be brought before the Board. For purposes of this section, “financial interest” shall mean a substantial interest held by a member, or member’s immediate family, such as:  an ownership interest in a business;  employment or prospective employment for which negotiations have begun;  an ownership interest in real or personal property;  a loan or other debt or interest in business or real property; or  a position as director or officer of a business. To the degree a member of the Board has a preexisting actual or appearance of a conflict of interest, he or she shall immediately disclose the same, in writing, to the Board, and such disclosure shall be entered into the Minutes of the Board. Meetings Frequency. The Chair may, when he/she deems necessary, call a meeting of the Board for the purpose of transacting business the Chair designates for such meeting. Such meeting shall also be called by the Chair upon the request of two members of the Board for the purpose of transacting business these members designate in the call for such meeting. No meeting shall be held unless all Board members are given written notice a minimum of seven (7) days in advance. Order of Business. At meetings of the Board, the order of business shall follow a written agenda provided to the members by the Chair. Quorum. For the nine-member Board, a quorum shall consist of five members, at least three of whom are local government members. If the number of members changes, the quorum will be redefined by the Board. A Board member must be present either in person or by telephone to be counted in the quorum. In the event of a Board member absence, that Board member may send a substitute to participate and vote. Additionally, voting by written proxy will be allowed. Page 42 of 248 4 Decision Making. The Board of Directors shall have the sole authority to approve disbursement of CBRLF funds for loans and sub-grants. The Board shall also approve terms and conditions associated with loans and sub-grants and make other decision related to operation of the fund as appropriate. As a guiding principle, it is the intent of the Board to make decisions affecting more than one member by member consensus whenever possible. In the event consensus cannot be reached, a simple majority vote will decide the issue. The Chair, in coordination with CHFA, will be responsible for conducting the day-to-day business of the fund, and shall have wide discretion to decide a variety of issues related to loans and sub-grants that have been approved by the Board. Any questions or decision that proposes increases of approved loan/sub-grant values or significant changes to loan terms and/or conditions, shall be submitted to a vote of the Board. Manner of Voting. Voting by the Board may be by acclamation, by ballot or by e-mail ballot, as the Chair may designate. Record of Decision. The outcome and reasoning behind Board decisions resulting in the approval or denial of any project funding or other expenditure shall be recorded in writing and maintained in adherence with Cooperative Agreement record keeping guidelines. Minutes of any other Board meeting or action are not required; such documentation may be recorded at the discretion of the Chair. Meeting Location. The meeting location will be at the Colorado Housing and Finance Authority’s facility at 1981 Blake Street, Denver, Colorado, 80202. When necessary, meetings may be held at an alternate location as determined by the Chair. Meeting locations will be communicated to Board Members in writing and noted on the meeting agenda distributed to Board Members prior to each meeting. Term of Office. Board members will serve indefinite terms at the pleasure of their respective management. Public Meetings. All meetings of the Board shall be noticed and held as public meetings in accordance with the Colorado Open Meetings Law, C.R.S. §§ 24-6-401, et seq. Changes in Membership Membership in this program is expected to change over time. Current members may choose to leave after achieving their community’s brownfields goals. Other entities may seek to join the coalition in order to benefit from the economy of scale offered by the existing CBRLF infrastructure. The following sections outline how membership changes will be accommodated. 1. Exiting Members: Members seeking to leave CBRLF must submit their resignation request, in writing, to the Chair and must give a 30-day written notice. 2. New Members: New members will be allowed to join CBRLF after submitting their request, in writing, to the Chair and receiving the approval of the Board of Directors. New members will be required to sign and abide by this MOA. Federal funds added to the CBRLF will be managed in accordance with the applicable Cooperative Agreement, this MOA, and the CBRLF Administrative Manual. Any non-federal funds and/or program income added to CBRLF will be accounted for and managed separately. (Note: potential new members are strongly encouraged to discuss CBLRF membership with existing Board members prior to submitting their CBRLF grant Page 43 of 248 5 proposal to EPA.) 3. Membership Eligibility: In order to be considered for CBRLF membership, potential members must have contributed to CBLRF either: a) an EPA RLF grant, or b) a public/private source of funding equivalent to a CBLRF grant (minimum of $50,000.00). Colorado Department of Public Health and Environment The CDPHE agrees to perform the following duties with respect to this MOA: 1. CDPHE is the Cooperative Agreement Recipient, Lead Agency, and Site Manager. 2. CDPHE has entered into the Cooperative Agreements with the EPA. 3. CDPHE will process cleanup applications in accordance with Colorado’s Voluntary Cleanup and Redevelopment Act. Fees for the Colorado Voluntary Cleanup Program (VCP) application review and approval are to be paid by the applicant in accordance with the requirements of that program. 4. CDPHE is responsible for assuring that all cleanups are conducted in a manner that is not inconsistent with CERCLA and the National Contingency Plan (NCP) for non-time critical removals. 5. CDPHE will review the Analysis of Cleanup Alternatives and write the Action Memorandum as required by the Brownfields Cleanup Revolving Loan Fund Administrative Manual. 6. CDPHE will identify a Brownfields Site Manager for each site receiving a loan from CHFA and conducting a cleanup under the VCP. The Site Manager will be an environmental professional employed by the State. The Site Manager is responsible for overseeing cleanups at specific sites including field visits. Colorado Housing and Finance Authority CHFA is under contract with the State of Colorado to act as its fiscal agent for managing and servicing the loan agreements. As the fiscal agent to the State, CHFA will: 1. be responsible for advertising and marketing the revolving loan fund under the supervision of the participating local government entities and the Board of Directors; 2. conduct the financial portion of the loan reviews and provide loan underwriting and servicing as required by this program; 3. be responsible for providing the participating local government entities and the Board of Directors with an assessment of the financial strength of each project, prior to final approval of the project by the Board of Directors; 4. provide closing documents and disburse loan and sub-grant funds, as appropriate, to successful applicants; 5. be responsible for managing the funds in the trust accounts, and revenues it subsequently receives as loan repayments, in accordance with the Cooperative Agreement, applicable laws and regulations, prudent lending practices, and the policies, instructions and directions Page 44 of 248 6 of the Board of Directors; 6. keep all records for each loan made for a period of not less than ten (10) years; and 7. prepare and provide the financial portion of the EPA-required quarterly reports to CDPHE at least one week prior to the reporting due date. Member Cities and Counties Member Local Governments agree to participate for a full 5-year period from the date of signature on this MOA. In the past, both loan and administrative funds have been available for use by member cities and counties. Currently, only loan/sub-grant funds are available to members, pursuant to a successful application approved by the Board. Loan/subgrant funds available to Member Local Governments and other applicants includes both existing funds and program income. Member Local Governments agree to use or direct the use of existing grant funds received, s, in accordance with the terms and conditions contained in the Cooperative Agreement from the U.S. Environmental Protection Agency. Funds received from program income shall be used in accordance with the terms and conditions contained in the cooperative agreement close- out agreements between EPA and CDPHE. Description of Funds CBRLF is made up of several loan pools derived from various Cooperative Agreements received from EPA. Each of these pools has different federal requirements, which mandate that they be managed separately. A general description of each pool is as follows: 1. EPA Cooperative Agreement BL98811601 is the original Cooperative Agreement that established CBRLF. This Cooperative Agreement has expired, and CDPHE and EPA have completed administrative close-out of it. Under the terms of this Cooperative Agreement, CBRLF has retained all funds from repayment of principal, interest, and loan earnings, and these funds are considered program income. It is the intent of the Board to use these funds, along with future program income, to continue operating a brownfields revolving loan fund. Program income funds will be managed in general accordance with the requirements of the original Cooperative Agreement. 2. EPA Cooperative Agreement RP98899701 was awarded through CERCLA Section 128(a) State and Tribal Response Program. This Cooperative Agreement has expired and undergone administrative close-out. Under the terms of the close-out agreement CBRLF has retained all funds from repayment of principal, interest, and loan earnings, and these funds are considered program income. It is the intent of the Board to use these funds, along with future program income, to continue operating a brownfields revolving loan fund. 3. EPA Cooperative Agreement BF98899601 was awarded under CERCLA Section 104(k)(3). These funds require a 20% matching payment. The funds under this award have been segregated into two separate loan pools: funds in the petroleum loan pool can be used only at sites that have petroleum contamination, while a separate pool has been established for sites contaminated with hazardous substances. The borrower must show that it performed all appropriate inquiry before acquiring the property and that it is not liable for the cleanup under CERCLA Section 107. Sub-grants are allowed for up to 40% Page 45 of 248 7 of the funds awarded under this Cooperative Agreement. Sub-grants will be considered on a site-by-site basis. 4. EPA Cooperative Agreement 2B97863101 was awarded under the American Recovery and Redevelopment Act, and is intended to provide sub-grants to local governments and non- profits. The Cooperative Agreement has expired and undergone administrative close-out. All loan pool funds available under this agreement have been disbursed as sub-grants. Page 46 of 248 8 Signatures Colorado Brownfields Revolving Loan Fund Memorandum of Agreement, Amendment 5 City and County of Denver ___________________________________ Eric Hiraga, Director Office of Economic Development Page 47 of 248 9 Signatures Colorado Brownfields Revolving Loan Fund Memorandum of Agreement, Amendment 5 City of Commerce City City Manager City Clerk Robert Sheesley, City Attorney Page 48 of 248 10 Signatures Colorado Brownfields Revolving Loan Fund Memorandum of Agreement, Amendment 5 City of Englewood TBD – Mayor Date Page 49 of 248 11 Signatures Colorado Brownfields Revolving Loan Fund Memorandum of Agreement, Amendment 5 Colorado Housing and Finance Authority Cris A. White, Executive Director and CEO Date Page 50 of 248 12 Signatures Colorado Brownfields Revolving Loan Fund Memorandum of Agreement, Amendment 5 ATTEST: CITY OF LAKEWOOD ____________________________________ __________________________________ Margy Greer, City Clerk Kathleen E. Hodgson, City Manager Recommended for approval: Approved as to form: ____________________________________ ___________________________________ Jay Hutchison, Director Gregory D. Graham, Deputy City Attorney Department of Public Works ____________________________________ Larry Dorr, Director Finance Department Date Page 51 of 248 13 Signatures Colorado Brownfields Revolving Loan Fund Memorandum of Agreement, Amendment 5 City of Loveland Stephen C. Adams, City Manager Date Page 52 of 248 14 Signatures Colorado Brownfields Revolving Loan Fund Memorandum of Agreement, Amendment 5 City of Westminster J. Brent McFall, City Manager Date Page 53 of 248 15 Signatures Colorado Brownfields Revolving Loan Fund Memorandum of Agreement, Amendment 5 El Paso County Darryl Glenn, President Board of County Commissioners Attest: Date Page 54 of 248 16 Signatures Colorado Brownfields Revolving Loan Fund Memorandum of Agreement, Amendment 5 Colorado Department of Public Health and Environment Dr. Larry Wolk, Executive Director Date Page 55 of 248 17 Borrower Applies for Loan CDPHE Receives and Reviews Loan Application Colorado Brownfields Revolving Loan Fund Board of Directors Initial Loan Application Screening Declined with Letter of Rejection CDPHE VCUP Review and Approval Colorado Housing and Finance Authority Underwriting Analysis Colorado Brownfields Revolving Loan Fund Board of Directors Final Loan Application Vote Approved Approved Colorado Housing and Finance Authority Loan Commitment/Documentation Disbursement Declined with Letter of Rejection CDPHE Site Manager Draw Review/Approval Borrower Conducts Cleanup Approved CBRLF Repayment Page 56 of 248 OO_.O_~>UOmmo<<z_.._m_.ummm<or<_zm _:O>Z mczo _sm_som>zuc_sO_...>ommm2_mza _::on:n:o_._ _u:_.uomm ._.:mnczuomm23moo_oEaom_.o<s.:,_m_ammm<o_<3oram:.83 Emmi mm _.mu_.mmm3ma3=mmama20.806623¢wom_.&a8?mo__:m~mSm amcmmm:a§ $am<m_ou3m:.omno_.:m3_:m6qmzmm3amino_o<<oom?managem<m=m_u_ma1_:m=o_.8 m:<=.o:3m2m_n_mm_.=._um..:..mFaniamosdm3a3am:amm<o1m m m8<§_m_% Qmmacnmm<o_<_:o_.om:3.3Bmmr?mama.$03Emm:<_3:3m_.:m__u_.9mo:o: >mm:n<. m3¢<=mnEmmam%m=&mmmumaaoannrEma“o_._=:§.SaN&_:nEm:.E ea 83:53:3.32 2:2.»mxumnmmozo_._.mam<m_ouBm_:mmooauzn?agE.839.322a m=S.3E:o:B_ oo=S==.:mao=.>32.0..vmioa8_.2_m<m_oE_._mm3.s_maam32E :5 9.03%5.2:Wmamm mamwEmmun"2::aosnmnms?na£3mmon=995.:5m=<:.o=Bm:§_n=m=mammo?_§%.9: 2.8.amo=m<m3&3.22533uo8=:m_.m<o=3:5.m_.o§.:mno_o_.maowon.238 aa_§. _.a_.3§Edcmmzmw<oEm..._cmnmcmmon52:?wagn_mm=:unonnoaomam. .58038cmOo:.=.:m_.on05¢m=m_9<oon_.hmwm?oom.ro<m_m=Pea Um=<mr:5 9.03% IocmameaEsmsom>_._:_o1QAOEW3man:5no_o:aoUmum:Bm=.om?_u__.o $35.ea m=<?o_.=.:9.:AOUE.:.U=w<mswung8oooum_.u8man89.33Em 9.03%ws§_ma_% Wm<o_<imrow:MEE..25iiimoncmo?_=.mea2:.an8mnwanmn:s._.oE=o=S_amwscnm Roam:80o_oBn_o3.03Wmsmn2:3:Emm<moaom.mo_.Em:n_.:.nomm..mnoo..&=m8m §.=2a2_mo_.EaamumEmmiguana8noBE=nm._=&:mE"rm.Sm:.ouo=B=wnmm. .25nmwan?mnam9:2:m<nuJam?om32:cm»...wo_.EmBaumaeama 3 En 233$ccamo? 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En_.=_nuEn1=n.?n_.eaEd.283%W:nxnummom9a 5693 ulnnmnmw9»:do Hanna;mu Bowedmanoanaaman:.an23$5Enmnwrm..o1n=o.wamuc?omnm2.8 no<n« maE_=Wq..:7.nnomm.... J453833.;umunu?a?Ea?4;:Basis u Ea mow.nEE.auonociumannmm 2:1:5...u:m..o_nmunmam2.3mm%nw_a_aawSnnoonnnmm<nu?un?n?.Rnmnmnuc. ._.o%8u.=_an9»uEu_.on1u..n259::2.Eom1Luinoaa S am"we.mm.._:amu.mm<n . nunnnmnm.Eaauaumuumm.:1_no:mEn..Ennounnnnummmhx6onn....:uwwnxrmEdm?.. Snm,a=uc_:n\2.o9290:03_.nmoE.num_Enuonwozoaw_m<n_ea 23.22 SEE 9.9SmW1.on:E332.......=2m;o_._.EnnuaacantmH9.m_.nu.mv3:59». non:.===E:_5Enmoan?25Enuaanmnunummnaga3.mnwrn32.5.:Page 78 of 248 Page 79 of 248 Bud etBreakdownb Cit Coalillon EPA Loan City's Admin."QrlFA‘s‘flmfn,City Award Amount Budget BudgalC Denver 3%500,000 $425,000 $20,000 $40,000 Englewood $500,000 $425,000 $20,000 $40,000 Lakewood $350,000 $297,500 $14,000 $28,000 Loveland $350,000 $297,500 $14,000$28,000 Total $1,700,000 $1,445,000 $68,000 $136,000 Footnote:The following approximate budget willbe added to lhe Revolving Loan Fund upon lranfer of the Sand Creek Revolving Loan fund grant to lhis revolving loan fund. Commerce City 13 500,000 $425,000 $20,000 $40,000 EXHIBIT3 LINE ITEM BUDGET 04/30/2000 Colorado Department of Public Health &Environment Cost Loan Fund CHFA Administrative Charges (estimated) Cities Adminstrative Budgets 69*$é?-69 51,000 1,445,000 136,000 68,000 $1 ,700,000 a..warn:- '*‘l1'Page 80 of 248 Page 81 of 248 Page 82 of 248 Page 83 of 248 Page 84 of 248 Page 85 of 248 Page 86 of 248 Page 87 of 248 re...>mn=n<U58.2.5.53>mmmmS=nn?ommdoo row:m.oo_§.de.o?.oo Hon:>a:._am:m:<nwanna.,.E_m.§.00 eoaz.,.3.&9m$.oo rewam 05.2m=m_9<ooa38.9:.8 00:35:553:3:2.8o.8o.o. aoa>rm§&.9:.o. bow:_.._=.%><m=uE¢S. _ 3.83. _SE1:.=:.:m=cm:::._.oS_ row:wnonnmasmnommmSo.3o.oo Fog:woo_$8.m8.8 23.So.oo was$0835o=m>IILEEBII 3??§.?..so.oo Fou:m\m=rm..n=$ Oo_o_.mmowno?zmnim10:33:05m_8.ooo.oo ._.O._.>_..m_ 8.898 rev:5:.%><n=uEam~m$oo.oo Zesasa mcamnus.Hon: Pom:Tonnmaamnuwmmm3.ooo.8 row:m.oo_m$o.o8.8 $a.8o.oo Pom:308:30_.:u>ma.o8.8 q.OH.>_..mdo.ooo.oo rou=m\m=_.m:::m ._.O._.>_..o ><»=uEam$o.8o.oo mic:H:9...2 m_=_==B.Smo._>_.=M.Boa 0:ran 03::I 2o=.§m8_:..a _x_=%A035 #m$mm_.ao: ma»:wnmmammm5.3 EE w§<a.a_%Wm<=w=smmo=>2 m—»us..mo=mmzumnwanmm.§2&2.Na 53..A033 #E..m.m$3oc ma»:wzmmaamm$5 55 w8§...a_&w2.§_§&..=>3 wa3_.....=.Oe=§=_.:m:S..MAE»258..w...5.69 A033 #ommoogc Page 88 of 248 mx_._.U=M-oo_o_.maow..o<<_._:m_am_...m<o_<_:uPom:_u_.oommm1.92 0...»:3:5 _.oom_n..o<m33m:_m mm<_m<<m_u3_mo. _u3_mn~oo_._m.m.m:.2:: O5._um<m_o_u3m3Em: 00cm“:2_u_._u__o13.3 mm:<=o:_.:m:. <o_E:m_.<o_$=.%_u8n_.m3 Imnmzmm>uu__om:o: monoémq >nt=mm‘onrow Um...3:: _.m§3_m_ ._._oo_oS..._om6<<:=m_n_mIm<o_<_:m_.om:ESQ woman2_u_.8o8G 003:2.:=.m__om:muu_.om:o:mnamazm O0022o._u:_u__o_._mm=: Wm:<_3:3m3>E=o<3 <o_::_mQO_mm:.:u_u8n_.m3l mm<_m<<m>Eu8<m_ Oo_o«mQoIocmmzo mag_u_:m:om>S:o3< _u_:m:owm_mm<_m<< $3 Oo_o«maow3<<3_.m_nmmm<o_<_:mrow:«Ea woman2U__,mo8_‘m m=._m__om:muu3<m_ ImUm<rom:_umn___._mn5:: _.m=m_.2mm_mn._o: +>_uu_o<mn Oo_oBQoIocmimman._u_:m:om>:3o:€ _mm:mrow: 00Umu.2_u_.a_aImm_3w m:<_8:3m:. m_.mgunman- mo:.o<<m_‘ Oo:n_:o.mO_mm:-cn lv mma¢<m_ouS¢a Page 89 of 248 01 mE.%u.ooU222maopooo?mwooo S980 m=m_n¢<oon_mm00.000 m?mboo mM0.000 m_ N3 _ MA Famo?oom mwm0.000 mNou.0Q@\_m_ P000 M3.000 _..o<n_u=n_mumoboo muo?ooo m3.000 m3.000 95328 0:2 mtaua ma0Pm _ 4 m9mM?mama <<nm:=m:m8_.w0.000.000 mm0u.000 mE0.000 mA0.000 m.vumono::Q wmooboo mwooboo 03:39: HSmB_um.. mm...»>$.m_.n_ban:woe. £52,. >._=:.:m:.m:<a w.ama Eamawaaaaawmm .99.:m. 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SUMMARY: In the 1989 the city constructed a water feature and accompanying landscaping on Little Dry Creek at the northwest corner of Hampden and Broadway as part of a reconstruction of the Plaza area. After a number of years the fountain was removed due to unsustainable operating costs. The specialized fabric on the dam has been repaired several times over the years and additional landscaping and minor repairs have been made to the pond area. Knowing that the dam was reaching the end of its expected life cycle, staff had budgeted in the Open Space Fund approximately $250,000 for expected replacement in 2017. Unfortunately, only one fabricator/installer was identified and their initial estimate for replacement of the dam was in excess of $500,000. The technology had changed substantially in the almost 30 years since construction and retrofitting a new dam into the space would require custom design, manufacture and installation. Even as staff was exploring these options the fabric on the dam failed irreparably and is no longer functional. Staff is currently working to remove the unusable dam eq uipment, ensure pedestrian safety, and allow safe water flows through the area as a short term improvement. Staff has reached out to the Urban Drainage and Flood Control District to discuss a possible construction and funding partnership. While Urban Drainage expressed an interest in helping with any restoration of the area their capital funds through 2022 have already been fully allocated. Recognizing that not only the dam but also associated infrastructure, from landscaping to pedestrian access, require additional investment in order for the site to remain safe and attractive, staff felt that moving forward on dam replacement in the absence of a long-term solution would not be cost effective. Engaging a design firm to provide options and cost estimates for renovation of the area will provide the additional information necessary to help Council reach a decision about any future investment in the site. Page 110 of 248 ANALYSIS: This portion of the Little Dry Creek drainage and open space is highly visible and is viewed by many as an iconic symbol of Englewood. Leaving the pond empty and failing to maintain the surrounding access and landscaping would be detrimental to the value of surrounding properties, require additional investment to ensure protection from safety hazards, and detract from efforts to improve the city's urban landscape. FINANCIAL IMPLICATIONS: The proposed contract amount is $32,933 and will be taken from the Open Space Fund. The 2018 appropriation to the Open Space Fund was $615,000 of which $18,596.13 has been expended as of February 28, 2018. ATTACHMENTS: Bid approval memo Contract Approval Summary DHM Contract Budget Page for Open Space Fund LDC Plaza Photos (8) Page 111 of 248 To Promote and ensure a high quality of life, economic vitality, and a uniquely desirable community identity. www.englewoodco.gov MEMORANDUM TO: Dorothy Hargrove; Director, Parks, Recreation and Library Dave Lee; Open Space Manager, Parks, Recreation and Library Larry Nimmo; Interim Director, Public Works Paul Weller; Engineering Manager, Public Works FROM: Elysa Loewen; Engineer III, Public Works DATE March 9, 2018 RE: Little Dry Creek Plaza Reconstruction Conceptual Design Masterplan Public Works has distributed the attached RFP on February 13, 2018 for professional design services related to reconstruction of the Little Dry Creek Plaza. The scope of services requested firms to prepare three conceptual masterplan alternatives that will be developed into a final conceptual masterplan with project phasing and construction cost estimates. Four RFP’s were distributed and proposals were received by the following qualified firms: 1. DHM Design 2. Norris Design 3. Goodbee & Associates Technical Criteria All proposals were considered to be complete and incorporate design and schedule requirements as stated in the RFP. All proposals were subject to an additional technical score, based on a criteria developed by Public Works staff. Technical scoring of the proposals were completed independently by the Departments of Community Development, Parks, Recreation and Library, and Public Works. The results are summarized below: Department Technical Criteria Score DHM Design Norris Design Goodbee & Associates Community Development 87 80 85 Public Works 89 78 83 Parks, Recreation and Library (Dave L.) 92 54 90 Parks, Recreation and Library (Dorothy H.) 85 68 86 TOTAL 353 280 344 Page 112 of 248 To Promote and ensure a high quality of life, economic vitality, and a uniquely desirable community identity. www.englewoodco.gov Proposal Fee The fees provided by all three firms are summarized below. In addition, two firms provided an additional scope of work utilizing Merrick & Company; a civil engineering firm to assist with channel hydraulic analysis. It should be noted, this was not required, nor outlined in the scope of work: Firm Base Fee Base Fee + Additional Scope (Merrick & Company) DHM Design $24,560.00 $32,933.00 Norris Design $23,850.00** Not Included Goodbee & Associates $34,458.60 $44,811.60 ** Additional fees for meetings and coordination were not included in the total fees We recommend that the contract be awarded to DHM Design. Our analysis of the three competing proposals has determined that DHM Design’s proposal is complete and although they provided a slightly higher base fee than Norris Design proposed, DHM received the highest technical score of all three firms base on our scoring criteria. In addition, Norris Design’s Base fee did not include a portion of the scope, which will result in an increase in their listed base fee. DHM Design is a Landscape design firm founded in 1975. The company has offices in Colorado and Montana, with their main office headquarters located in Denver. DHM has been recognized for their Landscape Architecture, Land Planning, Urban Design and Ecological Planning. DHM Design has also provided a list of their relevant project experience in channel and plaza reconstruction, which includes experience working with the City of Englewood. Some of these projects include: · South Platte River Run Project (City of Englewood & Sheridan): Included a multi- use trail design, vegetation, interpretive features, trailhead improvements and seating area overlooking “water play features” in the river. · Croke Reservoir (City of Northglenn): The project included trail and landscape design as well as lighting, irrigation, shoreline improvements and enhancements to the park area. · Englewood Town Center: Included Urban Design, Site Design and Landscape Architecture to the 60 acres of mixed use land outside the Englewood Civic Center. Per Section VII of the City of Englewood Purchasing Policies and Procedures (2016), Director, City Manager and City Council approval will be required to proceed with the design. A Professional Services Agreement will also need to be completed. Page 113 of 248 Contract Approval Summary V10/25/2017 Page | 1 Contact Identification Information (to be completed by the City Clerk) ID number:Authorizing Resolution/Ordinance: Recording Information: City Contact Information Staff Contact Person: Dave Lee Phone: x2553 Title: Director, Parks/Recreation/Library Email: dhargrove@englewoodco.gov Vendor Contact Information Vendor Name: DHM Design Vendor Contact: Bill Neumann Vendor Address: 300 S Broadway, Suite 300 Vendor Phone: 303-892-5566 City: Denver Vendor Email: bneumann@dhmdesign.com State: CO Zip Code: 80209 Contract Type Contract Type :Professional Services Description of ‘Other’ Contract Type: Description of Contract Work/Services: Attachments: ☒Contract -- ☐Original ☐Copy ☐Addendum(s) ☐Exhibit(s) ☐Certificate of Insurance Summary of Terms: Start Date: End Date:Total Years of Term: 1 Total Amount of Contract for term (or estimated amount if based on item pricing):$ 32,933 If Amended: Original Amount $ Amendment Amount $ Total as Amended: $ Renewal options available: Payment terms (please describe terms or attach schedule if based on deliverables): Payment upon completion - invoiced Attachments: ☐Copy of original Contract if this is an amendment Conceptual design for renovation of the open space at Little Dry Creek at the Plaza Page 114 of 248 Contract Approval Summary V10/25/2017 Page | 2 ☐Copies of related Contracts/Conveyances/Documents Source of funds: Budgeted Funds: $615,000 Line Item Description: Fabri-Dam Replacement Line Item Total Funding: $ 615,000 Portion of Line Item spent to date: $ 18,596.13 Funding Source:Fund: Open Space Fund Division Code: 10 Note (if needed): Attachments: ☒Copy of budget page from current budget book if contract value $25,000 or over or requires Council approval. Process for Choosing Vendor: ☐Bid: ☐ Bid Evaluation Summary attached ☐ Bid Response of proposed awardee ☒RFP: ☒ RFP Evaluation Summary attached ☒ RFP Response of proposed awardee ☐Quotes: Copy of Quotes attached ☐Sole Source: Explain Need below ☐Other: Please describe Page 115 of 248 PROFESSIONAL SERVICES AGREEMENT Contract Number PSA/18-13 Conceptual Design Services $32,933 This Professional Services Agreement (the "Agreement") is made as of this day of _____ ,, 20_, (the "Effective Date") by and between DHM Design, a Colorado corporation ("Consultant"), and The City of Englewood, Colorado, a municipal corporation organized under the laws of the State of Colorado ("City"). City desires that Consultant, from time to time, provide certain consulting services, systems integration services, data conversion services, training services, and/or related services as described herein, and Consultant desires to perform such services on behalf of City on the terms and conditions set forth herein. In consideration of the foregoing and the terms hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows: 1.Definitions. The terms set forth below shall be defined as follows: (a)"Intellectual Property Rights" shall mean any and all (by whatever name or term known or designate d) tangible and intangible and now known or hereafter existing (1)rights associate with works of authorship throughout the universe, including but not limited to copyrights, moral rights, and mask­ works, (2) trademark and trade name rights and similar rights, (3) trade secret rights, (4) patents, designs, algorithms and other industrial property rights, (5) all other intellectual and industrial property rights (of every kind and nature throughout the universe and however designated) (including logos, "rental" rights and rights to remuneration), whether arising by operation of law, contract, license, or otherwise, and (6) all registrations, initial applications, renewals, extensions, continuations, divisions or reissues hereof now or hereafter in force (including any rights in any of the foregoing). (b)"Work Product" shall mean all patents, patent applications, inventions, designs, mask works, processes, methodologies, copyrights and copyrightable works, trade secrets including confidential information, data, designs, manuals, training materials and documentation, formulas, knowledge of manufacturing processes, methods, prices, financial and accounting data, products and product specifications and all other Intellectual Property Rights created, developed or prepared, documented and/or delivered by Consultant, pursuant to the provision of the Services. 2.Statements of Work. During the term hereof and subject to the terms and conditions contained herein, Consultant agrees to provide, on an as requested basis, the consulting services, systems integration services, data conversion services, training services, and related services (the "Services") as further described in Schedule A (the "Statement of Work") for City, and in such additional Statements of Work as may be 1000 Englewood Parkway, Englewood, Colorado80110-2373 (303)762-2300 www.englewoodgov.org l'S,VI 8-IJ l',m.:crcuol o.:,;�,. 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Subs39$.‘._.u3.mS._.uS.m:._...B.::9313 aomx?a3...8 .ao.a~m.:u.8_..9333§:.d~_.%9m:Bmbco ~.~3.$o 33.8 .ao.Sm:93“_.m.$.m_._g.3..3»._u$_m.:RN38 ».~.a.oS 2 «E8 Joanatuba..3u.m=.93.3»33.3.S~.8..33.8.....a.o8 :3239%»_u_m.um539.539.33 :8.S..::.a.3.um:39.80 «..m:...8¢«...:.8_«..mm~.$...«33.3»«9398»u 393;m noyso M ...om.$m 3..us.3.8:..a.?..\.:.AAu\o .u..=§..38.;$.3.\..8.8.; ruauw...a$.uS.13..8rtwsuaux»...- M_.a.8...Mapud«‘No.399~82:Mmoouua M "838 M 89.8 Umumnimsn_u2_a..man_»mo$m=o: _uEa _<_m__m<036..._...:£ oumz m_u>om mczu msasaa.3 «Ea mocuomm.cmmm2...Osmsmmm_:«Ea mu_m:om Nmooboo E ._.wmo_ooo ma ruopooo anmws m...o.o8 o non Mos no:moa 83 moi 88 >95.>95.>nEm_>Q:m_>ncm_mm.__.:m.m mcanm. m.o8_o8 Au8_8o ._ 898° 82.8 05.onm:o_m<<ooa.oo_oqmno mcoomq no;Page 131 of 248 Page 132 of 248 Page 133 of 248 Page 134 of 248 Page 135 of 248 Page 136 of 248 Page 137 of 248 Page 138 of 248 Page 139 of 248 CoverSheet-3-1-16 CITY OF ENGLEWOOD STANDARD CONTRACT/AGREEMENT COVER SHEET CONTRACT DATE April 16, 2018 IDENTIFICATION NO.    Number to be assigned by City Clerk Division Title or Purpose:LDC Plaza Reconstruction Conceptual Design Masterplan Contractor’s Name or other parties to Agreement:DHM Design Responsible Department: Parks, Recreation & Library Contact Person:Dave Lee Authorizing Resolution/Ordinance Previously reviewed by City Attorney staff:Yes No Related Contracts/Conveyances: Type of Agreement/Contract: Intergovernmental Agreement RECORDING INFORMATION Professional Services Maintenance Agreement Construction Agreement Contractual Services ORIGINAL Lease COPY Easement Encroachment Other THIS CONTRACT/AGREEMENT TERMINATES:July 6, 2018 ==================================================================================== Page 140 of 248 COUNCIL COMMUNICATION TO: Mayor and Council FROM: Margaret Brocklander DEPARTMENT: IT DATE: April 16, 2018 SUBJECT: Esri Small Municipal and County Government Enterprise Agreement DESCRIPTION: Esri Small Municipal and County Government Enterprise Agreement RECOMMENDATION: The Information Technology Department recommends Council approve by Motion the Esri Small Municipal and County Government Enterprise Agreement (EA) that will grant our organization access to Esri license software on an unlimited basis including maintenance on all software offered through the EA for the term of the agreement. PREVIOUS COUNCIL ACTION: The ESRI Small Municipal and County Government Enterprise Agreement project was presented to Council at the 2018 Budget Session and included in the adopted FY-2018 Budget. SUMMARY: The GIS implementation of an enterprise wide GIS digital infrastructure is a planned and budgeted project for 2018. The system will provide digital mapping and centralized storage of geospatial data that can be used by staff, business applications or citizens using online digital interactive mapping. Environmental Systems Research Institute (ESRI) is the leading software used for mapping and analysis. This project will expand the current restricted licensing to an enterprise wide solution that better supports the mapping needs or the city. FINANCIAL IMPLICATIONS: The financial impact is a three-year master agreement billed annually at $35,000. The project was included in the FY-2018 IT capital projects fund for $23,333.00. The remaining $11,667 was included in the FY-2018 Utilities budget. ALTERNATIVES: In order to procure the enterprise wide licenses the City is required to enter into a three year software master agreement directly with ESRI. The agreement is not available through third party resellers or value added resellers. ATTACHMENTS: Contract Approval Summary SGEA Proposal - Esri Enterprise Level Agreement Page 141 of 248 Sole Source Memorandum Budget Book Page Program Sheet: Good Governance, Program: 9382 - Technology Administration Page 142 of 248 Contract Approval Summary V10/25/2017 Page | 1 Contact Identification Information (to be completed by the City Clerk) ID number:Authorizing Resolution/Ordinance: Recording Information: City Contact Information Staff Contact Person: Margaret Brocklander Phone: 303-782-2381 Title: Director IT Email: mbrocklander@englewoodco.gov Vendor Contact Information Vendor Name: Environmental Systems Research, Inc. Vendor Contact: Lisa Ward Vendor Address: 380 New York Street Vendor Phone: 909-793-2853 City: Redlands Vendor Email: lward@esri.com State: CA Zip Code: 92373 Contract Type Contract Type :Choose an item. Description of ‘Other’ Contract Type: Small Government Enterprise License Agreement Description of Contract Work/Services: Attachments: ☒Contract -- ☐Original ☒Copy ☐Addendum(s) ☐Exhibit(s) ☐Certificate of Insurance Summary of Terms: Start Date: May 1, 2018 End Date: May 1, 2021 Total Years of Term: 3 Total Amount of Contract for term (or estimated amount if based on item pricing):$105,000 If Amended: Original Amount $ Amendment Amount $ Total as Amended: $ Renewal options available:Renewal Every Three Years Payment terms (please describe terms or attach schedule if based on deliverables): This contract is Attachments: ☐Copy of original Contract if this is an amendment Geographic Information System (GIS) Software licenses for enterprise mapping software to assist with utilities, development, etc, for the public and internal city use. Page 143 of 248 Contract Approval Summary V10/25/2017 Page | 2 ☐Copies of related Contracts/Conveyances/Documents Source of funds: Budgeted Funds: $35,000 (annual) Line Item Description: Information Technology – Capital Projects Fund Utilities – Water Fund Utilities – Sewer Fund Line Item Total Funding: $23,333.00 $5,833.50 $5,833.50 Portion of Line Items spent to date: $0 Funding Source:Fund:31, 41 & 40 Division Code:0701, 1607 Note (if needed):Program: 9382 – Technology Administration Attachments: ☒Copy of budget page from current budget book if contract value $25,000 or over or requires Council approval. Process for Choosing Vendor: ☐Bid: ☐ Bid Evaluation Summary attached ☐ Bid Response of proposed awardee ☐RFP: ☐ RFP Evaluation Summary attached ☐ RFP Response of proposed awardee ☐Quotes: Copy of Quotes attached ☒Sole Source: Explain Need below In order to procure the enterprise wide licenses the City is required to enter into a three year software master agreement directly with ESRI. The agreement is not available through third party resellers or value added resellers. ☐Other: Please describe Page 144 of 248 380 New York Street 909 793 2853 esri.com Redlands, California 92373-8100 USA info@esri.com March 8, 2018 Jeromy King City of Englewood 1000 Englewood Pkwy Englewood, CO 80110 Dear Jeromy, The Esri Small Municipal and County Government Enterprise Agreement (EA) is a three‐year agreement that will grant your organization access to Esri® term license software on an unlimited basis including maintenance on all software offered through the EA for the term of the agreement. The EA will be effective on the date executed and will require a firm, three‐year commitment. Based on Esri's work with several organizations similar to yours, we know there is significant potential to apply geographic information system (GIS) technology in many operational and technical areas within your organization. For this reason, we believe that your organization will greatly benefit from an enterprise agreement. An EA will provide your organization with numerous benefits including: ▪ A lower cost per unit for licensed software ▪ Substantially reduced administrative and procurement expenses ▪ Maintenance on all Esri software deployed under this agreement ▪ Complete flexibility to deploy software products when and where needed The following business terms and conditions will apply: ▪ All current departments, employees, and in-house contractors of the organization will be eligible to use the software and services included in the EA. ▪ If your organization wishes to acquire and/or maintain any Esri software during the term of the agreement that is not included in the EA, it may do so separately at the Esri pricing that is generally available for your organization for software and maintenance. ▪ The organization will establish a single point of contact for orders and deliveries and will be responsible for redistribution to eligible users. ▪ The organization will establish a Tier 1 support center to field calls from internal users of Esri software. The organization may designate individuals as specified in the EA who may directly contact Esri for Tier 2 technical support. Page 145 of 248 Small Government EA ▪ The organization will provide an annual report of installed Esri software to Esri. ▪ Esri software and updates that the organization is licensed to use will be automatically available for downloading. ▪ The fee and benefits offered in this EA proposal are contingent upon your acceptance of Esri’s Small Municipal and County Government EA terms and conditions. ▪ Licenses are valid for the term of the EA. This program offer is valid for 90 days. To complete the agreement within this time frame, please contact me within the next seven days to work through any questions or concerns you may have. To expedite your acceptance of this EA offer: 1. Sign and return the EA contract with a Purchase Order or issue a Purchase Order that references this EA Quotation and includes the following statement on the face of the Purchase Order: "THIS PURCHASE ORDER IS GOVERNED BY THE TERMS AND CONDITIONS OF THE ESRI SMALL MUNICIPAL AND COUNTY GOVERNMENT EA, AND ADDITIONAL TERMS AND CONDITIONS IN THIS PURCHASE ORDER WILL NOT APPLY." Have it signed by an authorized representative of the organization. 2. On the first page of the EA, identify the central point of contact/agreement administrator. The agreement administrator is the party that will be the contact for management of the software, administration issues, and general operations. Information should include name, title (if applicable), address, phone number, and e-mail address. 3. In the purchase order, identify the "Ship to" and "Bill to" information for your organization. 4. Send the purchase order and agreement to the address, email or fax noted below: Esri Attn: Customer Service SG-EA 380 New York Street Redlands, CA 92373-8100 e-mail: service@esri.com fax documents to: 909-307-3083 I appreciate the opportunity to present you with this proposal, and I believe it will bring great benefits to your organization. Thank you very much for your consideration. Best Regards, Lisa Ward Page 146 of 248 Material Qty Description Unit Price Total 110036 1 Populations of 25,001 to 50,000 Small Government Term Enterprise License Agreement - Year 1 35,000.00 35,000.00 110036 1 Populations of 25,001 to 50,000 Small Government Term Enterprise License Agreement - Year 2 35,000.00 35,000.00 110036 1 Populations of 25,001 to 50,000 Small Government Term Enterprise License Agreement - Year 3 35,000.00 35,000.00 Item Total:105,000.00 Subtotal:105,000.00 Sales Tax:0.00 Estimated Shipping & Handling(2 Day Delivery) :0.00 Contract Pricing Adjust:0.00 Total:$105,000.00 The items on this quotation are subject to and governed by the terms of this quotation and of your signed agreement with Esri, if applicable, and the most current product specific scope of use document found at http://www.esri.com/~/media/Files/Pdfs/legal/pdfs/e300.pdf. If no such agreement covers any item, then Esri’s standard terms and conditions, and current product specific scope of use, found at http://www.esri.com/legal/software-license apply to your purchase of that item. Federal government entities and government prime contractors authorized under FAR 51.1 may purchase under the terms of Esri’s GSA Federal Supply Schedule. Acceptance of this quotation is limited to the terms of this quotation. State and local government entities in California or Maryland buying under the State Contract are also subject to the terms and conditions found at http://www.esri.com/legal/supplemental- terms-and-conditions. Esri objects to and expressly rejects any different or additional terms contained in any purchase order, offer, or confirmation sent to or to be sent by buyer. All terms of this quotation will be incorporated into and become part of any additional agreement regarding Esri’s offerings. The quotation information is confidential and may not be copied or released other than for the express purpose of system selection and purchase/license. The information may not be given to outside parties or used for any other purpose without consent from Environmental Systems Research Institute, Inc. (Esri). Delivery is FOB Origin. If sending remittance, please address to: Esri, P.O. Box 741076, Los Angeles, CA 90074-1076 This offer is limited to the terms and conditions incorporated and attached herein.WARDL For questions contact:Lisa Ward Email:lward@esri.com Phone:(909) 793-2853 x8231 Esri may charge a fee to cover expenses related to any customer requirement to use a proprietary vendor management, procurement, or invoice program. Environmental Systems Research Institute, Inc. 380 New York St Redlands, CA 92373-8100 Phone: 909-793-2853 Fax: 909-307-3049 DUNS Number: 06-313-4175 CAGE Code: 0AMS3 Quotation # 20525143 Date: Customer # 312867 Contract # City of Englewood Information Technology Dept 1000 Englewood Pkwy Englewood, CO 80110 ATTENTION: Jeromy King PHONE: (303) 783-6831 FAX: (303) 762-2395 To expedite your order, please attach a copy of this quotation to your purchase order. Quote is valid from: 03/08/2018 To: 06/06/2018 March 8, 2018 Page 147 of 248 Esri Use Only: Cust. Name Cust. # PO # Esri Agreement # Page 1 of 6 January 26, 2018 SMALL ENTERPRISE AGREEMENT COUNTY AND MUNICIPALITY GOVERNMENT (E214-2) This Agreement is by and between the organization identified in the Quotation ("Customer") and Environmental Systems Research Institute, Inc. ("Esri"). This Agreement sets forth the terms for Customer's use of Products and incorporates by reference (i) the Quotation and (ii) the Master Agreement. Should there be any conflict between the terms and conditions of the documents that comprise this Agreement, the order of precedence for the documents shall be as follows: (i) the Quotation, (ii) this Agreement, and (iii) the Master Agreement. This Agreement shall be governed by and construed in accordance with the laws of the state in which Customer is located without reference to conflict of laws principles, and the United States of America federal law shall govern in matters of intellectual property. The modifications and additional rights granted in this Agreement apply only to the Products listed in Table A. Table A List of Products Uncapped Quantities Desktop Software and Extensions (Single Use) ArcGIS Desktop Advanced ArcGIS Desktop Standard ArcGIS Desktop Basic ArcGIS Desktop Extensions: ArcGIS 3D Analyst, ArcGIS Spatial Analyst, ArcGIS Geostatistical Analyst, ArcGIS Publisher, ArcGIS Network Analyst, ArcGIS Schematics, ArcGIS Workflow Manager, ArcGIS Data Reviewer Enterprise Software and Extensions ArcGIS Enterprise and Workgroup (Advanced and Standard) ArcGIS Enterprise Extensions: ArcGIS 3D Analyst, ArcGIS Spatial Analyst, ArcGIS Geostatistical Analyst, ArcGIS Network Analyst, ArcGIS Schematics, ArcGIS Workflow Manager Enterprise Optional Servers ArcGIS Image Server Developer Tools ArcGIS Engine ArcGIS Engine Extensions: ArcGIS 3D Analyst, ArcGIS Spatial Analyst, ArcGIS Engine Geodatabase Update, ArcGIS Network Analyst, ArcGIS Schematics ArcGIS Runtime (Standard) ArcGIS Runtime Analysis Extension Limited Quantities One (1) Professional subscription to ArcGIS Developer* Two (2) Esri CityEngine Advanced Single Use Licenses 100 Level 1 ArcGIS Online Named Users 100 Level 2 ArcGIS Online Named Users 17,500 ArcGIS Online Service Credits 100 Level 2 ArcGIS Enterprise Named Users 3 Insights for ArcGIS for use with ArcGIS Enterprise OTHER BENEFITS Number of Esri User Conference registrations provided annually 3 Number of Tier 1 Help Desk individuals authorized to call Esri 3 Maximum number of sets of backup media, if requested** 2 Self-Paced e-Learning Uncapped Five percent (5%) discount on all individual commercially available instructor-led training classes at Esri facilities purchased outside this Agreement (Discount does not apply to Small Enterprise Training Package) *Maintenance is not provided for these items **Additional sets of backup media may be purchased for a fee Page 148 of 248 Page 2 of 6 January 26, 2018 Customer may accept this Agreement by signing and returning the whole Agreement with a signed sales quotation, purchase order, or other document that matches the Quotation and references this Agreement ("Ordering Document"). ADDITIONAL OR CONFLICTING TERMS IN CUSTOMER'S ORDERING DOCUMENT WILL NOT APPLY, AND THE TERMS OF THIS AGREEMENT WILL GOVERN. This Agreement is effective as of the date of Esri's receipt of Customer's Ordering Document incorporating this Agreement by reference, unless otherwise agreed to by the parties ("Effective Date"). Term of Agreement: Three (3) years This Agreement supersedes any previous agreements, proposals, presentations, understandings, and arrangements between the parties relating to the licensing of the Products. Except as provided in Article 4— Product Updates, no modifications can be made to this Agreement. Accepted and Agreed: (Customer) By: Authorized Signature Printed Name: Title: Date: CUSTOMER CONTACT INFORMATION Contact: Telephone: Address: Fax: City, State, Postal Code: E-mail: Country: Quotation Number (if applicable): Page 149 of 248 Page 3 of 6 January 26, 2018 1.0—ADDITIONAL DEFINITIONS In addition to the definitions provided in the Master Agreement, the following definitions apply to this Agreement: "Case" means a failure of the Software or Online Services to operate according to the Documentation where such failure substantially impacts operational or functional performance. "Deploy", "Deployed" and "Deployment" mean to redistribute and install the Products and related Authorization Codes within Customer's organization(s). "Fee" means the fee set forth in the Quotation. "Maintenance" means Tier 2 Support, Product updates, and Product patches provided to Customer during the Term of Agreement. "Master Agreement" means the applicable master agreement for Esri Products incorporated by this reference that is (i) found at http://www.esri.com /legal/software-license and available in the installation process requiring acceptance by electronic acknowledgment or (ii) a signed Esri master agreement or license agreement that supersedes such electronically acknowledged master agreement. "Product(s)" means the products identified in Table A—List of Products and any updates to the list Esri provides in writing. "Quotation" means the offer letter and quotation provided separately to Customer. "Technical Support" means the technical assistance for attempting resolution of a reported Case through error correction, patches, hot fixes, workarounds, replacement deliveries, or any other type of Product corrections or modifications. "Tier 1 Help Desk" means Customer's point of contact(s) to provide all Tier 1 Support within Customer's organization(s). "Tier 1 Support" means the Technical Support provided by the Tier 1 Help Desk. "Tier 2 Support" means the Esri Technical Support provided to the Tier 1 Help Desk when a Case cannot be resolved through Tier 1 Support. 2.0—ADDITIONAL GRANT OF LICENSE 2.1 Grant of License. Subject to the terms and conditions of this Agreement, Esri grants to Customer a personal, nonexclusive, nontransferable license solely to use, copy, and Deploy quantities of the Products listed in Table A—List of Products for the Term of Agreement (i) for the applicable Fee and (ii) in accordance with the Master Agreement. 2.2 Consultant Access. Esri grants Customer the right to permit Customer's consultants or contractors to use the Products exclusively for Customer's benefit. Customer will be solely responsible for compliance by consultants and contractors with this Agreement and will ensure that the consultant or contractor discontinues use of Products upon completion of work for Customer. Access to or use of Products by consultants or contractors not exclusively for Customer's benefit is prohibited. Customer may not permit its consultants or contractors to install Software or Data on consultant, contractor, or third-party computers or remove Software or Data from Customer locations, except for the purpose of hosting the Software or Data on Contractor servers for the benefit of Customer. 3.0—TERM, TERMINATION, AND EXPIRATION 3.1 Term. This Agreement and all licenses hereunder will commence on the Effective Date and continue for the duration identified in the Term of Agreement, unless this Agreement is terminated earlier as provided herein. Customer is only authorized to use Products during the Term of Agreement. For an Agreement with a limited term, Esri does not grant Customer an indefinite or a perpetual license to Products. 3.2 No Use upon Agreement Expiration or Termination. All Product licenses, all Maintenance, and Esri User Conference registrations terminate upon expiration or termination of this Agreement. 3.3 Termination for a Material Breach. Either party may terminate this Agreement for a material breach by the other party. The breaching party will have thirty (30) days from the date of written notice to cure any material breach. 3.4 Termination for Lack of Funds. For an Agreement with government or government- owned entities, either party may terminate this Agreement before any subsequent year if Page 150 of 248 Page 4 of 6 January 26, 2018 Customer is unable to secure funding through the legislative or governing body's approval process. 3.5 Follow-on Term. If the parties enter into another agreement substantially similar to this Agreement for an additional term, the effective date of the follow-on agreement will be the day after the expiration date of this Agreement. 4.0—PRODUCT UPDATES 4.1 Future Updates. Esri reserves the right to update the list of Products in Table A—List of Products by providing written notice to Customer. Customer may continue to use all Products that have been Deployed, but support and upgrades for deleted items may not be available. As new Products are incorporated into the standard program, they will be offered to Customer via written notice for incorporation into the Products schedule at no additional charge. Customer's use of new or updated Products requires Customer to adhere to applicable additional or revised terms and conditions in the Master Agreement. 4.2 Product Life Cycle. During the Term of Agreement, some Products may be retired or may no longer be available to Deploy in the identified quantities. Maintenance will be subject to the individual Product Life Cycle Support Status and Product Life Cycle Support Policy, which can be found at http://support.esri.com/en /content/productlifecycles. Updates for Products in the mature and retired phases may not be available. Customer may continue to use Products already Deployed, but Customer will not be able to Deploy retired Products. 5.0—MAINTENANCE The Fee includes standard maintenance benefits during the Term of Agreement as specified in the most current applicable Esri Maintenance and Support Program document (found at http://www.esri.com/legal). At Esri's sole discretion, Esri may make patches, hot fixes, or updates available for download. No Software other than the defined Products will receive Maintenance. Customer may acquire maintenance for other Software outside this Agreement. a. Tier 1 Support 1. Customer will provide Tier 1 Support through the Tier 1 Help Desk to all Customer's authorized users. 2. The Tier 1 Help Desk will be fully trained in the Products. 3. At a minimum, Tier 1 Support will include those activities that assist the user in resolving how-to and operational questions as well as questions on installation and troubleshooting procedures. 4. The Tier 1 Help Desk will be the initial point of contact for all questions and reporting of a Case. The Tier 1 Help Desk will obtain a full description of each reported Case and the system configuration from the user. This may include obtaining any customizations, code samples, or data involved in the Case. 5. If the Tier 1 Help Desk cannot resolve the Case, an authorized Tier 1 Help Desk individual may contact Tier 2 Support. The Tier 1 Help Desk will provide support in such a way as to minimize repeat calls and make solutions to problems available to Customer’s organization. 6. Tier 1 Help Desk individuals are the only individuals authorized to contact Tier 2 Support. Customer may change the Tier 1 Help Desk individuals by written notice to Esri. b. Tier 2 Support 1. Tier 2 Support will log the calls received from Tier 1 Help Desk. 2. Tier 2 Support will review all information collected by and received from the Tier 1 Help Desk including preliminary documented troubleshooting provided by the Tier 1 Help Desk when Tier 2 Support is required. 3. Tier 2 Support may request that Tier 1 Help Desk individuals provide verification of information, additional information, or answers to additional questions to supplement any preliminary information gathering or troubleshooting performed by Tier 1 Help Desk. 4. Tier 2 Support will attempt to resolve the Case submitted by Tier 1 Help Desk. Page 151 of 248 Page 5 of 6 January 26, 2018 5. When the Case is resolved, Tier 2 Support will communicate the information to Tier 1 Help Desk, and Tier 1 Help Desk will disseminate the resolution to the user(s). 6.0—ENDORSEMENT AND PUBLICITY This Agreement will not be construed or interpreted as an exclusive dealings agreement or Customer's endorsement of Products. Either party may publicize the existence of this Agreement. 7.0—ADMINISTRATIVE REQUIREMENTS 7.1 OEM Licenses. Under Esri's OEM or Solution OEM programs, OEM partners are authorized to embed or bundle portions of Esri products and services with their application or service. OEM partners' business model, licensing terms and conditions, and pricing are independent of this Agreement. Customer will not seek any discount from the OEM partner or Esri based on the availability of Products under this Agreement. Customer will not decouple Esri products or services from the OEM partners' application or service. 7.2 Annual Report of Deployments. At each anniversary date and ninety (90) calendar days prior to the expiration of this Agreement, Customer will provide Esri with a written report detailing all Deployments. Upon request, Customer will provide records sufficient to verify the accuracy of the annual report. 8.0—ORDERING, ADMINISTRATIVE PROCEDURES, DELIVERY, AND DEPLOYMENT 8.1 Orders, Delivery, and Deployment a. Upon the Effective Date, Esri will invoice Customer and provide Authorization Codes to activate the nondestructive copy protection program that enables Customer to download, operate, or allow access to the Products. If this is a multi-year Agreement, Esri may invoice the Fee before the annual anniversary date for each year. b. Undisputed invoices will be due and payable within thirty (30) calendar days from the date of invoice. Esri's federal ID number is 95-2775-732. c. If requested, Esri will ship backup media to the ship-to address identified on the Ordering Document, FOB Destination, with shipping charges prepaid. Customer acknowledges that should sales or use taxes become due as a result of any shipments of tangible media, Esri has a right to invoice and Customer will pay any such sales or use tax associated with the receipt of tangible media. 8.2 Order Requirements. Esri does not require Customer to issue a purchase order. Customer may submit a purchase order in accordance with its own process requirements, provided that if Customer issues a purchase order, Customer will submit its initial purchase order on the Effective Date. If this is a multi-year Agreement, Customer will submit subsequent purchase orders to Esri at least thirty (30) calendar days before the annual anniversary date for each year. a. All orders pertaining to this Agreement will be processed through Customer's centralized point of contact. b. The following information will be included in each Ordering Document: (1) Customer name; Esri customer number, if known; and bill-to and ship-to addresses (2) Order number (3) Applicable annual payment due 9.0—MERGERS, ACQUISITIONS, OR DIVESTITURES If Customer is a commercial entity, Customer will notify Esri in writing in the event of (i) a consolidation, merger, or reorganization of Customer with or into another corporation or entity; (ii) Customer's acquisition of another entity; or (iii) a transfer or sale of all or part of Customer's organization (subsections i, ii, and iii, collectively referred to as "Ownership Change"). There will be no decrease in Fee as a result of any Ownership Change. 9.1 If an Ownership Change increases the cumulative program count beyond the maximum level for this Agreement, Esri reserves the right to increase the Fee or terminate this Agreement and the parties will negotiate a new agreement. 9.2 If an Ownership Change results in transfer or sale of a portion of Customer's organization, that portion of Customer's organization will transfer the Products to Customer or uninstall, remove, and destroy all copies of the Products. Page 152 of 248 Page 6 of 6 January 26, 2018 9.3 This Agreement may not be assigned to a successor entity as a result of an Ownership Change unless approved by Esri in writing in advance. If the assignment to the new entity is not approved, Customer will require any successor entity to uninstall, remove, and destroy the Products. This Agreement will terminate upon such Ownership Change. Page 153 of 248 TO: Eric Keck, City Manager CC: Mark Woulf, Assistant City Manager Margaret Brocklander, Director IT Tom Brennan, Director Utilities FROM: Jeromy King, Deputy Director IT DATE: March 10, 2018 SUBJECT: Sole Source BACKGROUND AND PROJECT GOAL: A planned and budgeted project for 2018 is the implementation of an enterprise wide GIS digital infrastructure. The system will provide digital mapping and centralized storage of geospatial data that can be used by staff, business applications or citizens using online digital interactive mapping. Environmental Systems Research Institute (ESRI) is the leading software used for mapping and analysis. This project will expand the current restricted licensing to an enterprise wide solution that better supports the mapping needs or the organization. QUOTES AND CONTRACTOR SELECTION: City of Englewood Municipal Code 4-1-3-1 requires justification for sole or single source purchase. In order to procure the enterprise wide licenses the City is required to enter into a three year software master agreement directly with ESRI. The agreement is not available through third party resellers or value added resellers. FINANCIAL IMPACT: The financial impact is a three-year master agreement billed annually at $35,000. The project is included in the capital projects fund for $23,333.00. The remaining cost of the project is included in the Utilities budget. This is a three-year agreement; however, the agreement does provide for termination for lack of funds, “For an Agreement with government or government owned entities, either party may terminate this Agreement before any subsequent year if Customer is unable to secure funding through the legislative or governing body's approval process”. PROCUREMENT INFORMATION: Page 154 of 248 Project: 31 0701 Task: 16 RECOMMENDED ACTION: Staff recommends entering into the three-year enterprise agreement for government with ESRI. Approved: ______________________________ Page 155 of 248 Page 156 of 248 2018 Program Briefs – Operating Budget Specific Supporting Community Goal Definition(s): Fosters financial sustainability, operational excellence, trust and transparency through accountability, honesty, efficiency, innovation and best practices Protects, manages, optimizes and invests in its human, financial, physical and technology resources Specific Linkage to 2017-2019 Strategic Plan: CAPITAL IMPROVEMENTS 1) Develop multi-year capital projects/equipment replacement plan (Capital Improvement Plan). 2) Facilitate quarterly CIP work sessions with department directors. 3) Identify and pursue diverse funding sources for priority projects. 4) Develop a capital projects “scorecard” to communicate with public. 5) Implement project management system. ASSET MANAGEMENT 1) Develop preventative maintenance and asset protection program. 2) Complete an inventory and document building operations systems and equipment. 3) Evaluate and integrate overall maintenance plan for all facilities. 4) Implement asset management system. INNOVATION 1) Actively encourage a culture of innovation throughout the city. 2) Create an internal work group that tackles efficiency problems. 3) Track, monitor, and reward innovative solutions Program Summary: Information Technology Administration is responsible for setting policy, systems administration, security and data integrity which includes files, database and virtual servers. The servers are home to business applications that support Police, Municipal Court, Finance, Library, Recreation, Community Development, Human Resources, Utilities, Public Works, and Waste Water. Summary of Program Budget: Category 2017 (Adopted)2017 (Projected)2018 (Proposed) Program Costs $729,642 $753,318 $1,697,467 Allocation of Administration Costs $0 $0 $0 Total $729,642 $753,318 $1,697,467 Community Goal(s): Good Governance Program: 9382 - Technology Administration Page 157 of 248 Part of “Englewood 5”? Yes ☐ No ☒ Differences from Prior Budget Cycles: Differences from prior budget cycles include reorganizing GIS to include ESRI’s geographic software enterprise wide and consolidating software maintenance and support agreements. Upgrading the current GIS system to an enterprise system will advance the use of spatial analysis in problem solving and bridge the gap across departments. With the enterprise system all users will be able to manage, share, and use spatial data and related information to address a variety of needs, including data creation, modification, visualization, analysis, and dissemination. The annual software maintenance and support is directly related to the Information Technology initiatives to centralize and standardize IT operations across the organization. This year the Information Technology Department initiated efforts to inventory and consolidate software maintenance and support costs within the IT Department operations budget for improved management of systems. Explanation of Personnel Adjustments (if any): In addition to upgrading the GIS system it will be necessary to increase personnel by one (1) FTE in the IT Department responsible for managing the GIS initiatives. The GIS positions in Public Works, Utilities and Community Development will serve as expert resources in their departments as well as provide data collection. The new GIS position will be responsible for managing and advancing the GIS initiatives and supporting the distributed team in their respective departments. Alternatives to Proposed 2018 Program Budget: A successful GIS implementation requires more than just technology, without oversight and leadership the GIS initiatives will not advance. Maintain current practice of decentralized software maintenance and support agreements. Page 158 of 248 COUNCIL COMMUNICATION TO: Mayor and Council FROM: Kurt Carson DEPARTMENT: WWTP DATE: April 16, 2018 SUBJECT: WWTP Raw Sewage Pump Impellers Purchase DESCRIPTION: WWTP Raw Sewage Pump Impellers Purchase RECOMMENDATION: The Littleton/Englewood Wastewater Treatment Plant (L/E WWTP) staff recommends Council approve, by Motion, a purchase per quote with ABI, Inc. for the purchase of four Raw Sewage Pump (RSP) Impellers in the amount of $94,676.00. This recommendation was approved by the L/E WWTP Supervisory Committee on March 15, 2018. PREVIOUS COUNCIL ACTION: Council approval of the 2018 Littleton/Englewood Wastewater Treatment Plant Budget. SUMMARY: The Littleton/Englewood Wastewater Treatment Plant is seeking to purchase new impellers for four of its six Fairbanks-Morse raw sewage pumps. These pumps are used to convey incoming wastewater up and through the treatment plant processes. These impellers were identified for replacement during a regular condition assessment initiated through the plant's asset management system. Maintaining all raw sewage pumps in an operational condition is important to keeping water flowing through the plant and ensuring operational redundancy. ANALYSIS: An impeller is a critical component of a centrifugal pump. It is the rotating component in contact with the wastewater that transfers the motor energy to fluid energy. A recent condition assessment of the raw sewage pumps revealed moderate to heavy wear to the impellers of four pumps. These impellers will require replacement in the near future. Staff intends to install two impellers in the 2018 calendar year with the other serving as on-shelf backups until their planned installation in the 2019 calendar year. Staff would like to purchase all four at this time. This strategy would ensure consistency and take advantage of economies of scale, bulk price discounts, and reduced shipping costs. The LEWWTP contacted the two vendors that are known to the plant to be capable of providing Fairbanks-Morse 19.85" dynamically balanced impellers that meet original manufacturer specifications. Confidence in meeting these specifications is important due to the tight Page 159 of 248 tolerances and high level of precision required for these critical components.These vendors provided quotations for the four replacement impellers that are summarized below: Vendor Cost ABI, Inc. $94,676.00 Ambiente H20 Inc. $126,084.00 ABI, Inc. was identified as the apparent low quote. Based on staff review, ABI’s quote is responsive and complete. FINANCIAL IMPLICATIONS: The proposal amount has been budgeted and is available under the 2018 Commodities Budget. Costs will be shared by the Cities of Englewood and Littleton. ALTERNATIVES: N/A CONCLUSION: Raw sewage pumps are a critical component of the treatment process. They ensure continuous wastewater flow throughout the treatment plant and are thereby critical to adherence to permit requirements, and continuity of service to our communities. Purchase of four new impellers will ensure continued high efficiency operation of these pumps. ATTACHMENTS: Contract Approval Summary Form – RSP Impellers ABI Proposal – RSP Impellers WWTP 2018 Budget Page – RSP Impellers Approved Supervisory Committee Meeting Minutes – RSP Impellers PowerPoint Presentation – RSP Impellers Page 160 of 248 Contract Approval Summary V10/25/2017 Page | 1 Contact Identification Information (to be completed by the City Clerk) ID number: Authorizing Resolution/Ordinance: Recording Information: City Contact Information Staff Contact Person: Kurt Carson John Kuosman Phone: 303-762-2632 303-762-2602 Title: Deputy Director of Operations & Maintenance WWTP Director Email: kcarson@englewoodco.gov Vendor Contact Information Vendor Name: ABI, Inc. Vendor Contact: Bruce Kempton Vendor Address: 7797 South Datura Street Vendor Phone: 303-797-6061 City: Littleton Vendor Email: bhkempton@comcast.net State: Colorado Zip Code: 80120 Contract Type Contract Type:Other (describe below) Description of ‘Other’ Contract Type: Purchase per Quote Description of Contract Work/Services: Attachments: ☐Contract -- ☐Original ☐Copy ☐Addendum(s) ☒Exhibit(s) (Quote) ☐Certificate of Insurance Summary of Terms: Start Date: April 2, 2018 End Date: December 31, 2018 Total Years of Term: NA Total Amount of Contract for term (or estimated amount if based on item pricing): $94,676.00 If Amended: Original Amount Amendment Amount Total as Amended: Renewal options available: NA Payment terms (please describe terms or attach schedule if based on deliverables): Attachments: ☐Copy of original Contract if this is an amendment Raw Sewage Impeller Purchase Page 161 of 248 Contract Approval Summary V10/25/2017 Page | 2 ☐Copies of related Contracts/Conveyances/Documents Source of funds: Budgeted Funds: $100,000 Line Item Description: Commodities Line Item Total Funding: $ 2,926,555 Portion of Line Item spent to date: $92,909.16 Funding Source: Fund: 90 Division Code: 1711-52501 Note (if needed): Attachments: ☒Copy of budget page from current budget book if contract value $25,000 or over or requires Council approval. Process for Choosing Vendor: ☐Bid: ☐ Bid Evaluation Summary attached ☐ Bid Response of proposed awardee ☐RFP: ☐ RFP Evaluation Summary attached ☐ RFP Response of proposed awardee ☒Quotes: Copy of Quotes attached ☐Sole Source: Explain Need below ☒Other: Please describe Pre-selected vendors capable of providing equipment to original manufacturer specifications. Page 162 of 248 ABI,Inc. High Quality Sealing Products 7797 South Datura Street Littleton,Colorado 80120 Phone:(303)797-6061 A Fax:(303)730-81 39 3/6/18 Littleton/Englewood WI IP 2900 S.Platte River Dr. Englewood,CO.80110 Paul Gaetano Impeller pricing for the Fairbanks Morse C5711L 20"Raw Sewage Pumps,Serial K4H1-079376: 150 hp motor @ 705 rpm 14583/6944GPM 31.0/29.0FT HD L20A|AU impeller lmpeller 19.85”Cast Iron 3%Ni,CW Rotation Dynamically Balanced Price per each for 2 impellers &2 impeller wear rings $23,279.46/ea.**$46,558.92 Price per each for 3 impellers&3 impeller wear rings $22,332.00/ea**.$66,996.00 Price per each for 4 impellers &4 impeller wear rings $22,323.00/ea.**$89,292.00 Ceramic coated impeller Adder $1096.00/impeller Freight Charges:$550.00 for 2 impellers &2 impeller wear rings.$750.00 for order of 3 impellers and 3 impeller wear rings.$1000.00 for 4 impellers &4 impellers wear rings. **impeller price and 41055 impeller wear ring installed for minimum purchase of 2 impellers. Pricing valid through April 16*“2018,purchase order no later than April 23,2018 Regards, Bruce Kempton Sales Manager Page 163 of 248 Department City Manager’s Office Fund Littleton/Englewood Wastewater Treatment Plant Littleton/Englewood Wastewater Treatment Plant 6 BUDGET 2018 History and Budget Actual Actual Actual Actual Actual Budget Estimate Budget 2012 2013 2014 2015 2016 2017 2017 2018 Revenue Taxes - - - - - - - - Licenses & Permits - - - - - - - - Intergovernmental - - - - - - - - Charges for Services 12,683,922 12,840,644 13,446,490 13,650,689 13,299,210 14,752,381 14,692,308 15,456,934 Fines & Forfeitures - - - - - - - - Investment Income 12,920 (3,100) 8,419 6,035 8,492 23,447 23,447 23,447 Other 1,210,526 1,151,813 1,086,577 779,542 952,141 4,379,414 2,119,217 11,389,410 LT Debt Proceeds - - - - - - - - Transfers In - - - - - - - - Total Revenue 13,907,368 13,989,357 14,541,486 14,436,267 14,259,843 19,155,242 16,834,972 26,869,791 Percent Change 9.69%0.59%3.95%-0.72%-1.22%34.33%-12.11%59.61% Expenditure Personnel 6,204,395 6,425,244 6,680,552 7,037,402 7,047,867 7,411,788 7,587,165 8,386,675 Commodities 2,434,588 2,277,475 2,384,463 2,354,167 2,188,195 2,610,000 2,592,800 2,926,555 Contractual 3,808,150 3,937,808 3,988,412 4,065,975 3,809,019 5,053,454 4,830,704 4,456,561 Capital 1,460,235 1,348,831 1,488,059 978,723 1,214,763 4,080,000 1,824,303 11,100,000 Debt Service - - - - - - - - Transfer Out - - - - - - - - Total Expenditure 13,907,368 13,989,357 14,541,486 14,436,267 14,259,843 19,155,242 16,834,972 26,869,791 Percent Change 9.69%0.59%3.95%-0.72%-1.22%34.33%-12.11%59.61% - Employees FTE 77.50 77.50 77.40 77.40 77.40 77.40 78.40 86.00 Percent Change FTE 0.00%0.00%-0.13%0.00%0.00%0.00%1.29%9.69% Page 164 of 248 MINUTES SUPERVISORY COMMITTEE MEETING Thursday, March 15, 2018 2900 South Platte River Drive, Englewood CO 80110 L/E WWTP Conference Room 9:00 am ATTENDING: Supervisory Committee: Eric Keck Englewood City Manager Larry Nimmo Acting Englewood Public Works Director Keith Reester Acting Littleton Public Works Director Mark Relph Littleton City Manager Staff: Kacie Allard Communications & Data Supervisor Tom Brennan Englewood Utilities Director Kurt Carson Deputy Director, Operations & Maintenance Solutions Blair Corning Deputy Director, Strategic Programs Jenifer Doane Deputy Director, Manager of Business Admin. & Communications John Kuosman L/E WWTP Director Alison McKinney Brown Englewood City Attorney Matt Montgomery Hill & Robbins, Plant Attorney Brenda Varner Government Relations Specialist Chong Woo Capital Project and Asset Leadership Manager GUESTS: Cynthia Lane Platte Canyon Water & San. District, Asst. Mgr. I. Call to Order The March Supervisory Committee (Committee) meeting was called to order by John Kuosman, Director of the Littleton / Englewood Wastewater Treatment Plant (L/E WWTP). II. Approval of Meeting Minutes of Previous Supervisory Committee Meeting The February Committee meeting minutes were unanimously approved via email on March 2, 4, and 6, 2018. Page 165 of 248 SUPERVISORY COMMITTEE MEETING MINUTES March 15, 2018 Page 2 of 3 III. Action Item(s) Administration Building HVAC Kurt Carson discussed the L/E WWTP Administration Building HVAC purchase with the Committee. L/E WWTP staff recommend that the Committee approve a purchase order agreement with Centennial Controls for the replacement of L/E WWTP Administration Building HVAC Automation System at a cost of $49,625.00. Staff further recommends the approval of an approximate 10% contingency in the amount of $5,875, resulting in a total appropriation request of $55,000.00. Three (3) qualified vendors were contacted to provide quotation and staff selected the lowest quote. This purchase is needed to maintain proper environmental control of the Administration Building HVAC system and the contingency is recommended to allow the prompt and economical addressing of unforeseen conditions that may arise as a result of retrofitting outdated control systems. ACTION TAKEN – The Supervisory Committee made a motion to approve the purchase order agreement with Centennial Controls for the replacement of the L/E WWTP Administration Building HVAC Automation System, in the amount of $49,625, with an approximate 10% change order contingency in the amount of $5,875, for a total purchase cost of $55,000. Mark Relph moved, Larry Nimmo seconded, three (3) ayes, no nays. City Manager, Eric Keck was absent. Motion approved. The L/E WWTP staff plans to present this purchase to the Englewood City Council for consideration in April 2018. Raw Sewage Pump Impellers Purchase Kurt Carson discussed the L/E WWTP Raw Sewage Pump Impellers purchase with the Committee. The L/E WWTP staff recommends that the Supervisory Committee approve a purchase order agreement with ABI, Inc. for the purchase of four (4) Raw Sewage Pump (RSP) Impellers in the amount of $94,676.00. The L/E WWTP utilizes six (6) identical Fairbanks Morse raw sewage pumps to pump wastewater from the sanitary sewer collection system up to and through the treatment plant processes. Kurt discussed a recent condition assessment of the RSP’s that revealed moderate to heavy wear to the pump impellers. Two (2) qualified vendors were contacted to provide a quote and staff selected the lowest quote. Purchase of the RSP impellers is critical to maintain continuity of plant operations, permit compliance, and service to the Plant’s collection system communities. ACTION TAKEN – The Supervisory Committee made a motion to approve the purchase order agreement with ABI, Inc. for the replacement of four (4) Raw Sewage Pump (RSP) Impellers, in the amount of $94,676. Mark Relph moved, Larry Nimmo seconded, Eric Keck abstained, three (3) ayes, no nays. Motion approved. The L/E Page 166 of 248 SUPERVISORY COMMITTEE MEETING MINUTES March 15, 2018 Page 3 of 3 WWTP staff plans to present this purchase to the Englewood City Council for consideration in April 2018. IV. Informational Items The Supervisory Committee discussed these informational items with staff:  Anaerobic Digester Emergency Repair Update o Kurt Carson discussed successful completion of emergency repairs completed on Digester #3. The L/E WWTP staff is preparing documents to review with the Committee next month and Englewood City Council afterwards.  Community Education and Outreach Department  Capital Budget Accounting and Project Status Update  Three (3)-Month Outlook for Supervisory Committee Action Items  Time Change for April 2018 Supervisory Committee Meeting  Financial Summary from January 2018  WWTP Influent Flow and Load Summary: o The measured flow to the L/E WWTP averaged 20.4 mgd in February 2018, which is a decrease of 0.2 mgd from January 2018. The measured flow split was 42.7% and 57.3% between the cities of Littleton and Englewood, respectively. V. Adjournment The next Supervisory Committee meeting is scheduled for Thursday, April 19, 2018. This meeting will be held from 10:00 am – 11:30 am, at the Littleton / Englewood Wastewater Treatment Plant. Adjourned at 9:36 am Recording Secretary Signature Brenda J. Varner The L/E WWTP Supervisory Committee approved the March 15, 2018 meeting minutes via email on March 20 and 21, 2018. Eric Keck, Mark Relph, Larry Nimmo, and Keith Reester all ayes, no nays. Minutes approved. Page 167 of 248 Littleton/Englewood WWTP Raw Sewage Pump Impellers Purchase Page 168 of 248 Summary Page 169 of 248 •Condition assessments revealed heavy wear to pump impellers Analysis Page 170 of 248 •In-house mechanics will be performing the work •Pump impellers experience heavy mechanical wear. Epoxy coated to extend service life •Anticipated repair •1 RSP rebuilt in 2017 •1 RSP rebuilt in 2016 Analysis Page 171 of 248 RSP Impeller •Representation of new impeller Page 172 of 248 RFQ Solicited •RFQ sent Feb 14, 2018 •2 quotes received ABI, Inc.$94,676.00 Ambiente H20 Inc.$126,084.00 Page 173 of 248 Recommendation of Funds •ABI, Inc. •Well established vendor of wastewater treatment plant equipment •Asking for approval of $94,676.00 Page 174 of 248 Budget •Approval of $94,676.00 •Cost shared by the Cities of Englewood and Littleton Page 175 of 248 Questions?Page 176 of 248 COUNCIL COMMUNICATION TO: Mayor and Council FROM: Eric Keck DEPARTMENT: City Manager's Office DATE: April 16, 2018 SUBJECT: Xcel Energy Renewable Connect Program DESCRIPTION: Xcel Energy Renewable Connect Program RECOMMENDATION: City Council shall review the recommendation of the City Manager for the approval of an agreement with Xcel Energy for the Renewable Connect program and determine whether or not to support the recommended contract terms. The Council will then need to provide the City Manager with authorization to subscribe to the program through the Xcel Energy online portal for the Renewable Connect program if there is consensus to approve the City's participation. PREVIOUS COUNCIL ACTION: None SUMMARY: Staff presented Council with a brief overview of the Xcel Energy Renewable Connect program late 2017 and how the program could potentially save the City money on its electrical utility accounts as well as help reduce our greenhouse gas emissions. As more of the program details have become clear through webinars and meetings with Xcel Energy representatives, staff has determined that participation in the program would indeed be advantageous to the City. The Renewable Connect program is available due to Xcel's power purchase agreement on the construction of a 50 Mega Watt solar installation located near Deer Trail, Colorado. The program costs are on a subscription basis and participants are able to keep the renewable energy credits or RECs during either a month to month, 5 year or 10 year agreement term. The Renewable Energy Credits are the currency used to measure renewable energy produced and used to meet renewable energy goals. Participants in the Renewable Connect program can claim that they are offsetting their energy usage through the use of renewable energy. The pricing for participation is based upon the net price per Kilowatt hour which is the difference between the program charge, which reflects the actual cost to acquire the solar resource and to administer the program, and the program credit, which gives you a discount for the fossil fuels costs and power plant costs that are no longer needed. The City currently pays 4.3 cents per kilowatt hour for electricity. After analyzing the costs for the program, the City would be best served to lock in the pricing provided by Renewable Connect under the 10 year term. Under this scenario, the net price per kWh would be 0 cents or no additional cost to the City. Additionally, the City can claim that reduction in greenhouse gas emissions as a result as well. Page 177 of 248 The price for Renewable Connect could change over time, however. The net price may be a premium in some years and a discount in others. This is driven mostly by the cost of fossil fuels such as coal and natural gas that are used in the generation of power. If the fossil fuel prices decrease in later years, the Renewable Connect credit would decrease and the net price would go up as a result. Conversely, if fuel prices increase, the Renewable Connect credit would increase and the net price would decrease as a result. Just as important with this program is the fact that the City will be able to claim a reduction in fossil fuel dependency and as such a reduction in greenhouse gas emissions. A review of the City's March statement indicated that approximately 325,000 kWh of electricity was utilized. Utilizing the EPA's greenhouse gas equivalent calculator, this equates to 242 metric tons of greenhouse gas or 51.8 passenger vehicles driven in a year. The City would be able to enunciate the elimination of this amount of greenhouse gas just based on one month's usage. ANALYSIS: Participation in the Xcel Energy Renewable Connect program will allow the City to achieve the goal of reducing greenhouse gas emissions as well as being able to enunciate that the preponderance of its energy is from renewable sources. Participation in the program does have a potential cost depending upon the fossil fuel market. However, for the current year the cost is netted out by the cost of fossil fuels. In an analysis of the fossil fuels market performed by the United States Energy Information Administration or EIA, reports indicate that coal will continue to trend upward in cost owing to the fact that it is a diminishing resource as well as a contributor to greenhouse gas emissions. Natural gas has been a commodity that has come down in price but the demand for natural gas will increase as the dependence upon coal wanes. Given this fact, natural gas prices are also predicted to increase in the future and renewable energy sources will become more affordable. Please see the attached report from the EIA. The small print in the agreement to participate within the Renewable Connect program does contain a penalty should the City decide to remove an account from the program. That fee is $100 per C Class account. Staff is recommending that Council approve the participation in the program and authorize the City Manager to electronically approve the agreement for a 10 year participation in the program. This term will lock in the pricing of the energy obtained from the renewable solar energy from the Deer Trail project. Please see attached sample agreement for details. This agreement has been reviewed and approved by the City Attorney's Office. FINANCIAL IMPLICATIONS: The Renewable Connect charge per kWh is 4.1 cents. The net price for 2018 to participate in the program is 0 cents per kWh. Other charges on City accounts such as transmission cost adjustment, electrical commodity adjustment, demand side management cost, purchased capacity cost adjustment, and the Clean Air-Clean Jobs Act would continue to apply. Electrical costs are predicated upon the usage and it is difficult to predict what the City's costs would be moving forward. However, with a ten year agreement, the City will most likely see a decrease to its base commercial rate assessed per kilowatt hour as the net cost in this first year is already predicted to be 0 cents per kWh. Page 178 of 248 ATTACHMENTS: US Energy Information Administration Outlook Sample Renewable Connect Agreement Page 179 of 248 Annual Energy Outlook 2017with projections to 2050January 5, 2017www.eia.gov/aeo#AEO2017U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration2Overview/key takeaways 3Critical drivers and uncertainty 31Petroleum and other liquids 40Natural gas51Electricity generation 67Transportation 89Buildings101Industrial115References125Table of contentsPagePage 180 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information AdministrationOverview/key takeawaysEIA’s Annual Energy Outlook provides modeled projections of domestic energy markets through 2050, and includes cases with different assumptions of macroeconomic growth, world oil prices, technological progress, and energy policies. With strong domestic production and relatively flat demand, the United States becomes a net energy exporter over the projection period in most cases.U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration4• Projections in the Annual Energy Outlook 2017 (AEO2017) are not predictions of what will happen, but rather modeled projections of what may happen given certain assumptions and methodologies. • The AEO is developed using the National Energy Modeling System (NEMS), an integrated model that aims to capture various interactions of economic changes and energy supply, demand, and prices.• Energy market projections are subject to much uncertainty, as many of the events that shape energy markets and future developments in technologies, demographics, and resources cannot be foreseen with certainty. • More information about the assumptions used in developing these projections is available shortly after the release of each AEO.• The AEO is published pursuant to the Department of Energy Organization Act of 1977, which requires the U.S. Energy Information Administration (EIA) Administrator to prepare annual reports on trends and projections for energy use and supply.The Annual Energy Outlook provides long-term energy projections for the United States Page 181 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration5• The Reference case projection assumes trend improvement in known technologies, along with a view of economic and demographic trends reflecting the current central views of leading economic forecasters and demographers. • It generally assumes that current laws and regulations affecting the energy sector, including sunset dates for laws that have them, are unchanged throughout the projection period. • The potential impacts of proposed legislation, regulations, or standards are not reflected in the Reference case. • EIA addresses the uncertainty inherent in energy projections by developing side cases with different assumptions of macroeconomic growth, world oil prices, technological progress, and energy policies.• Projections in the AEO should be interpreted with a clear understanding of the assumptions that inform them and the limitations inherent in any modeling effort.What is the Reference case?U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration6• Oil prices are driven by global market balances that are mainly influenced by factors external to the NEMS model. In the High Oil Price case, the price of Brent crude in 2016 dollars reaches $226 per barrel (b) by 2040, compared to $109/b in the Reference case and $43/b in the Low Oil Price case.• In the High Oil and Gas Resource and Technology case, lower costs and higher resource availability than in the Reference case allow for higher production at lower prices. In the Low Oil and Gas Resource and Technology case, more pessimistic assumptions about resources and costs are applied.• The effects of economic assumptions on energy consumption are addressed in the High and Low Economic Growth cases, which assume compound annual growth rates for U.S. gross domestic product of 2.6% and 1.6%, respectively, from 2016–40, compared with 2.2% annual growth in the Reference case. • A case assuming that the Clean Power Plan (CPP) is not implemented can be compared with the Reference case to show how the absence of that policy could affect energy markets and emissions.What are the side cases?Page 182 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration0204060801001201401980 1990 2000 2010 2020 2030 2040Total energy consumptionquadrillion British thermal units2016history projectionsHigh Economic GrowthLow Oil PriceHigh Oil PriceHigh Oil and Gas Resource and TechnologyReference Low Oil and Gas Resource and Technology Low Economic Growth7Energy consumption varies minimally across all AEO cases—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration8• In the Reference case, total energy consumption increases by 5% between 2016 and 2040.• Because a significant portion of energy consumption is related to economic activity, energy consumption is projected to increase by approximately 11% in the High Economic Growth case and to remain nearly flat in the Low Economic Growth case.• Although the Oil and Gas Resource and Technology cases affect the production of energy, the impact on domestic energy consumption is less significant.• In all AEO cases, the electric power sector remains the largest consumer of primary energy.• Projections of total energy consumption (and supply) are sensitive to the conversions used to represent the primary energy content of noncombustible energy resources. AEO2017 uses fossil-equivalence to represent the energy content of renewable fuels.—bounded by the High and Low Economic Growth cases Page 183 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration0510152025303540451980 1990 2000 2010 2020 2030 2040Energy consumption (Reference case)quadrillion British thermal unitspetroleum and other liquidsnatural gasother renewable energycoalnuclearhydroliquid biofuels2016history projections9Domestic energy consumption remains relatively flat in the Reference case—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration10• Overall U.S. energy consumption remains relatively flat in the Reference case, rising 5% from the 2016 level by 2040 and somewhat close to its previous peak. Varying assumptions about economic growth rates or energy prices considered in the AEO2017 side cases affect projected consumption. • Natural gas use increases more than other fuel sources in terms of quantity of energy consumed, led by demand from the industrial and electric power sectors. • Petroleum consumption remains relatively flat as increases in energy efficiency offset growth in the transportation and industrial activity measures. • Coal consumption decreases as coal loses market share to natural gas and renewable generation in the electric power sector.• On a percentage basis, renewable energy grows the fastest because capital costs fall with increased penetration and because current state and federal policies encourage its use.• Liquid biofuels growth is constrained by relatively flat transportation energy use and blending limitations. —but the fuel mix changes significantlyPage 184 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration0204060801001201401980 1990 2000 2010 2020 2030 2040Total energy productionquadrillion British thermal unitsHigh Oil and Gas Resource and Technology High Oil PriceHigh Economic GrowthReference Low Economic GrowthLow Oil PriceLow Oil and Gas Resource and Technology 2016history projections11Energy production ranges from nearly flat in the Low Oil and Gas Resource and Technology case—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration12• Unlike energy consumption, which varies less across AEO2017 cases, projections of energy production vary widely. • Total energy production increases by more than 20% from 2016 through 2040 in the Reference case, led by increases in renewables, natural gas, and crude oil production. • Production growth is dependent on technology, resources, and market conditions.• The High Oil and Gas Resource and Technology case assumes higher estimates of unproved Alaska resources; offshore Lower 48 resources; and onshore Lower 48 tight oil, tight gas, and shale gas resources than in the Reference case. This case also assumes lower costs of producing these resources. The Low Oil and Gas Resource and Technology case assumes the opposite.• The High Oil Price case illustrates the impact of higher world demand for petroleum products, lower Organization of the Petroleum Exporting Countries (OPEC) upstream investment, and higher non-OPEC exploration and development costs. The Low Oil Price case assumes the opposite.—to continued growth in the High Resource and Technology casePage 185 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration0510152025303540451980 1990 2000 2010 2020 2030 2040Energy production (Reference case)quadrillion British thermal unitsdry natural gascrude oil and lease condensatecoalother renewable energynuclearnatural gas plant liquidshydro2016history projections13U.S. energy production continues to increase in the Reference case—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration14• Natural gas production accounts for nearly 40% of U.S. energy production by 2040 in the Reference case. Varying assumptions about resources, technology, and prices in alternative cases significantly affect the projection for U.S. production. • Crude oil production in the Reference case increases from current levels, then levels off around 2025 astight oil development moves into less productive areas. Like natural gas, projected crude oil production varies considerably with assumptions about resources and technology.• Coal production trends in the Reference case reflect the domestic regulatory environment, including the implementation of the Clean Power Plan, and export market constraints. • Nonhydroelectric renewable energy production grows, reflecting cost reductions and existing policies at the federal and state level that promote the use of wind and solar energy.• Nuclear generation declines modestly over 2017–40 in the Reference case as new builds already being developed and plant uprates nearly offset retirements. The decline in nuclear generation accelerates beyond 2040 as a significant share of existing plants is assumed to be retired at age 60.—led by growth in natural gas and renewablesPage 186 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration-30-20-100102030401980 1990 2000 2010 2020 2030 2040Low Oil PriceLow Oil and Gas Resource and TechnologyHigh Economic GrowthReference Low Economic GrowthHigh Oil PriceHigh Oil and Gas Resource and TechnologyNet energy trade quadrillion British thermal units2016history projectionsnet importsnet exports15The United States becomes a net energy exporter in most cases—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration16• The United States is projected to become a net energy exporter by 2026 in the Reference case projections, but the transition occurs earlier in three of the AEO2017 side cases.• Net exports are highest in the High Oil and Gas Resource and Technology case as favorable geology and technological developments combine to produce oil and natural gas at lower prices.• The High Oil Price case includes favorable economic conditions for producers, but consumption is lower in response to higher prices. Without substantial improvements in technology and more favorable resource availability, U.S. energy production declines in the 2030s.• In the Low Oil Price and Low Oil and Gas Resource and Technology cases, the United States remains a net importer over the analysis period. • In the Low Oil and Gas Resource and Technology case, the conditions are unfavorable for U.S. crude oil production at levels that support exports.• In the Low Oil Price case, prices are too low to provide a strong incentive for high U.S. production.—and under high resource and technology assumptions, net exports are significantly higher than in the Reference case Page 187 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration05101520253035401980 1990 2000 2010 2020 2030 2040Energy trade (Reference case)quadrillion British thermal unitsexportsimports2016history projections-10-50510152025301980 1990 2000 2010 2020 2030 2040Net energy trade (Reference case)quadrillion British thermal unitspetroleumand other liquidselectricitycoal and cokenatural gas2016history projectionsnet importsnet exports17The United States becomes a net energy exporter in the Reference case—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration18• The United States has been a net energy importer since 1953, but declining energy imports and growing energy exports make the United States a net energy exporter by 2026 in the Reference case projection.• Crude oil and petroleum products dominate U.S. energy trade. The United States is both an importer and exporter of petroleum liquids, importing mostly crude oil and exporting mostly petroleum products such as gasoline and diesel throughout the Reference case projection.• Natural gas trade, which has historically been mostly shipments by pipeline from Canada and to Mexico, is projected to be increasingly dominated by liquefied natural gas exports to more distant destinations.• The United States continues to be a net exporter of coal (including coal coke), but its exports growth is not expected to increase significantly because of competition from other global suppliers closer to major markets.—as natural gas exports increase and net petroleum imports decreasePage 188 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration012345671980 1990 2000 2010 2020 2030 2040Energy-related carbon dioxide emissionsbillion metric tons of carbon dioxide2016history projectionsNo Clean Power PlanHigh Economic GrowthLow Oil PriceHigh Oil and Gas Resource and TechnologyReference High Oil PriceLow Oil and Gas Resource and Technology Low Economic Growth19Energy-related carbon dioxide emissions decline in most AEO cases—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration20• The electric power sector accounted for about 40% of the U.S. total energy-related carbon dioxide (CO2) emissions in 2011, with a declining share in recent years.• The Clean Power Plan (CPP), which is currently stayed pending judicial review, requires states to develop plans to reduce CO2 emissions from existing generating units that use fossil fuels. • Combined with lower natural gas prices and the extension of renewable tax credits, the CPP accelerates a shift toward less carbon-intensive electricity generation.• The Reference case includes the CPP and assumes that states select the mass-based limits on CO2 emissions. An alternative case in AEO2017 assumes that the CPP is not implemented.• AEO2016 included extensive analysis of the CPP and presented several side cases that examined various compliance options available to states.—with the highest emissions projected in the No Clean Power Plan casePage 189 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration0.00.51.01.52.02.53.01980 1990 2000 2010 2020 2030 2040transportationelectric powerindustrialresidentialcommercial2016history projections0.00.51.01.52.02.53.01980 1990 2000 2010 2020 2030 2040petroleumnatural gascoal2016history projections21Reference case energy-related carbon dioxide emissions fall—U.S. energy-related carbon dioxide emissions (Reference case)billion metric tons of carbon dioxide billion metric tons of carbon dioxideU.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration22• From 2005 to 2016, energy-related carbon dioxide (CO2) emissions fell at an average annual rate of 1.4%. From 2016 to 2040, energy-related CO2 emissions fall 0.2% annually in the Reference case.• In the industrial sector, growth in domestic industries, such as bulk chemicals, leads to higher energy consumption and emissions. • In the electric power sector, coal-fired plants are replaced primarily with new natural gas, solar, and wind capacity, which reduces electricity-related CO2 emissions.• Direct emissions in the residential and commercial building sectors are largely from space heating, water heating, and cooking equipment. The CO2 emissions associated with the use of electricity in these sectors exceed the direct emissions from these sectors.• Energy-related CO2 emissions from the transportation sector surpassed those from the electric power sector in 2016. Transportation CO2 emissions remain relatively flat after 2030 as consumption and the carbon intensity of transportation fuels stay relatively constant.—but at a slower rate than in the recent pastPage 190 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration0501001502002503003504001980 2010 2040U.S. populationmillion people2016history23Although population and economic output per capita are assumed to continue rising—010203040506070801980 2010 2040Gross domestic product per capitathousand dollars per person2016history024681012141980 2010 2040Energy intensitythousand British thermal units per dollar2016history0102030405060701980 2010 2040Carbon intensitymetric tons CO2 per billion British thermal units2016historyReferenceU.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration24• In the United States, the amount of energy used per unit of economic growth (energy intensity) has declined steadily for many years, while the amount of CO2 emissions associated with energy consumption (carbon intensity) has generally declined since 2008.• These trends are projected to continue as energy efficiency, fuel economy improvements, and structural changes in the economy all lower energy intensity.• Carbon intensity declines largely as a result of changes in the U.S. energy mix that reduce the consumption of carbon-intensive fuels and increase the use of low- or no-carbon fuels.• By 2040, energy intensity and carbon intensity are 37% and 10% lower than their respective 2016 values in the Reference case, which assumes only the laws and regulations currently in place.—energy intensity and carbon intensity are projected to continue falling in the Reference casePage 191 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration051015202530352000 2020 2040Gross domestic producttrillion 2009 dollars2016history projectionsHigh EconomicGrowthReference Low Economic Growth25Different macroeconomic assumptions address the energy implications of the uncertainty—01002003004005002000 2020 2040Populationmillions2016history projections0.00.51.01.52.02.52000 2020 2040Price index (2016 = 1.0)GDP chain-type price index2016history projectionsU.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration26• The Reference, High Economic Growth, and Low Economic Growth cases illustrate three possible paths for U.S. economic growth. The High Economic Growth case assumes higher annual growth and lower annual inflation rates (2.6% and 1.9%, respectively) than in the Reference case (2.2% and 2.1%, respectively), while the Low Economic Growth case assumes lower growth and higher inflation rates (1.6% and 3.2%, respectively).• In general, higher economic growth (as measured by gross domestic product) leads to greater investment, increased consumption of goods and services, more trade, and greater energy consumption.• Differences among the cases reflect different expectations for growth in population, labor force, capital stock, and productivity. These changes affect growth rates in household formation, industrial activity, and amounts of travel, as well as investment decisions for energy production. • All three cases assume smooth economic growth and do not anticipate business cycles or large economic shocks. —surrounding future economic trendsPage 192 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration0501001502002502000 2020 2040North Sea Brent oil price2016 dollars per barrel2016history projections0246810122000 2020 2040Henry Hub natural gas price2016 dollars per million Btu2016history projections27Reference case oil prices rise from current levels while natural gas prices remain relatively low—Low Oil and Gas Resource and TechnologyHigh Oil PriceReferenceLow Oil PriceHigh Oil and Gas Resource and Technology U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration28• In real terms, crude oil prices in 2016 (based on the global benchmark North Sea Brent) were at their lowest levels since 2004, and natural gas prices (based on the domestic benchmark Henry Hub) were the lowest since prior to 1990. Both prices are projected to increase over the projection period.• Crude oil prices in the Reference case are projected to rise at a faster rate in the near term than in the long term. However, price paths vary significantly across the AEO2017 side cases that differ in assumptions about U.S. resources and technology and global market conditions.• Natural gas prices in the Reference case also rise and then remain relatively flat at about $5 per million British thermal units (MMBtu) over 2030–40, then rise again over the following decade (not shown on the graph). Projected U.S. natural gas prices are highly sensitive to assumptions about domestic resource and technology explored in the side cases. —price paths in the side cases are very different from those in the Reference casePage 193 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration0246810121416182000 2010 2020 2030 20402016history projectionsCrude oil productionmillion barrels per day010203040502000 2010 2020 2030 20402016Dry natural gas productiontrillion cubic feethistory projections29United States crude oil and natural gas production depends on oil prices—High Oil PriceHigh Oil and Gas Resourceand Technology Reference Low Oil PriceLow Oil and Gas Resource and TechnologyU.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration30• Projections of tight oil and shale gas production are uncertain because large portions of the known formations have relatively little or no production history, and extraction technologies and practices continue to evolve rapidly. Continued high rates of drilling technology improvement could increase well productivity and reduce drilling, completion, and production costs. • In the High Oil and Gas Resource and Technology case, both crude oil and natural gas production continue to grow.• Crude oil prices affect natural gas production primarily through changes in global natural gas consumption/exports, as well as increases in natural gas production from oil formations (associated gas). • In the High Oil Price case, the difference between the crude oil and natural gas prices creates more incentive to consume natural gas in energy-intensive industries and for transportation, and to export it overseas as liquefied natural gas, all of which drive U.S. production upward. Without the more favorable resources and technological developments found in the High Oil and Gas Resource and Technology case, U.S. crude oil production begins to decline in the High Oil Price case, and by 2040, production is nearly the same as in the Reference case.—as well as resource availability and technological improvementsPage 194 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information AdministrationCritical drivers and uncertaintyVarious factors influence the model results in AEO2017, including: new and existing laws and regulations, updated data, changing market conditions, and model improvements since AEO2016.U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration32• California state law SB-32, which was passed in 2016, requires statewide greenhouse gas emissions to be 40% below the 1990 level by 2030. This law has cross-cutting effects in California, particularly on electricity and transportation emissions, and also has national implications because of the size of California’s energy market. • The second phase of Federal Greenhouse Gas and Fuel Efficiency standards for medium- and heavy-duty vehicles was issued in 2016. These standards, which ramp up through model year 2027, reduce energy consumption in the transportation sector in the midterm.New laws and regulations reflected in the Reference CasePage 195 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration33• Data from the 2012 Commercial Buildings Energy Consumption Survey (CBECS) were released in 2016, leading to revised estimates of commercial building mix and energy consumption.• Updated data on lower battery costs increased EIA’s outlook for sales of battery electric vehicles and plug-in hybrid electric vehicles.Significant data updatesU.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration34• This AEO is the first projection to include model results through 2050, which are available on the AEO page of the EIA website. The graphics in this presentation focus on projections through 2040. • AEO2017 better captures the dynamics of well productivity that occur when tight oil development moves into less productive areas and as tighter well spacing in established areas diminishes the productivity of each well.• In contrast to prior AEOs, the AEO2017 Reference case does not assume all nuclear plants that operate through the end of a 60-year period (a 40-year initial operating license plus a 20-year license renewal period) will apply for and receive a subsequent license renewal (SLR) and operate for an additional 20 years. Instead, 25% of reactors reaching age 60 are assumed to retire. Model improvementsPage 196 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration35• Continuing the trend in previous AEOs, demand for crude oil imports weakens as Lower 48 onshore tight oil development continues to be the main driver of total U.S. crude oil production, accounting for about 60% of cumulative domestic production between 2016 and 2040 in the Reference case. • Policy-driven economic incentives accelerate renewable generation. With a continued (but reduced) tax credit, solar capacity growth continues throughout the projection period, while tax credits provided for plants entering service until, but no later than 2024, provide incentives for new wind capacity in the near term.• With solar energy's declining capital costs and solar electricity output that is highest during times of high (on-peak) demand, solar capacity is anticipated to grow throughout the projection period.Changing market conditionsU.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration36Electric Power• Energy storage: Improve the representation of energy storage to accommodate multiple grid services including spinning reserve and renewables integration.• Renewable generation: Include improved representation of intermittent generation resources such as wind and solar. Examine the potential for transmission enhancements to mitigate regional effects of high levels of wind and solar generation. Develop higher resolution time-of-day and seasonal value and operational impact of wind.• Utility rate structure: Estimate the impact of high levels of distributed photovoltaic generation on utility rate structure. • Generator retirement: Assess the vintage of the electric generation fleet and potential for future retirements and life extension for all technologies, including existing nuclear, coal, natural gas, and renewable fleets. EIA will continue to update and refine the market dynamics and technologies in future AEOs, especially with the projection extended to 2050. Ongoing work aims to: diihPage 197 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration37Liquid Fuels• Natural gas plant liquids: Re-examine and improve natural gas plant liquids production to allow for changing proportions in produced natural gas over time.• Technology: Update biofuels and emerging technological assumptions for gas-to-liquids, coal-to-liquids, and carbon sequestration. Improve feedstock curves for all biofuel technologies.Natural Gas• Transmission: Improve representation of natural gas market flows with a redesigned NEMS module, allowing for increased flexibility to respond to changing market dynamics (i.e., changing regional flows/bi-directional flow). Improve regional and temporal granularity.EIA will continue to update and refine the market dynamics and technologies in future AEOs, especially with the projection extended to 2050. Ongoing work aims to: diihU.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration38Transportation• Technology: Add autonomous vehicle technologies in the transportation sector and consider their implications for on-road fuel economy and total travel demand. Develop the capability to evaluate scenarios where commercial delivery vehicles can operate without human operators and do not require occupant protection features. • Behavior: Examine the impact of ridesharing programs on travel behavior, including the amount of travel and vehicle choice decisions.• Fleet mix: Examine determinants of the evolution of the light-duty vehicle fleet mix, which can affect fuel use given the different fuel economy standards for passenger cars and light trucks.EIA will continue to update and refine the market dynamics and technologies in future AEOs, especially with the projection extended to 2050. Ongoing work aims to: diihPage 198 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration39Buildings• Distributed generation: Conduct further research and enhance building representation of distributed generation such as photovoltaic, including battery technologies.• Technology: Review the spread of light emitting diodes and other efficient technologies in buildings. Investigate the adoption of sensor technologies for lights and heating/air conditioning in buildings.Industrial• Technology: Incorporate technological change into the industrial model. Apply ongoing technology assessment research in metal-based durables and bulk chemicals to revise energy-intensity projections in those industries.• Environment: Research the feasibility of carbon capture and storage and implement for carbon-intensive industries such as bulk chemicals, steel, and cement.EIA will continue to update and refine the market dynamics and technologies in future AEOs, especially with the projection extended to 2050. Ongoing work aims to: diihU.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information AdministrationPetroleum and other liquidsU.S. crude oil production rebounds from recent lows, driven by continued development of tight oil resources. With consumption flat to down compared to recent history, net crude oil and petroleum product imports as a percentage of U.S. product supplied decline across most cases.Page 199 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration05101520251980 2000 2020 2040Petroleum product consumptionmillion barrels per day2016history projections41U.S. petroleum product consumption remains below 2005 levels through 2040 in most AEO2017 cases—05101520251980 2000 2020 2040Crude oil productionmillion barrels per day2016history projectionsHigh Oil and Gas Resource and TechnologyHigh Oil PriceHigh Economic GrowthReferenceLow EconomicGrowthLow Oil and Gas Resource and TechnologyLow Oil PriceU.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration42• In all cases, U.S. petroleum consumption is projected to remain below the 2005 level, the highest recorded to date, through 2040.• Low oil prices result in increased domestic consumption in the Low Oil Price case. Simultaneously, low prices drive down domestic production, resulting in generally higher import levels. • The domestic wellhead price does not change significantly in the economic growth cases, resulting in consumption that is similar to the Reference case level.• Reference case U.S. crude oil production is projected to recover from recent declines, as upstream producers increase output because of the combined effects of the rise in prices from recent lows and cost reductions. • In the Reference case, higher refinery inputs in the near term absorb higher forecast levels of U.S. crude oil production, limiting changes to imports. Eventually, net crude oil imports increase because domestic crude production does not keep pace with refinery inputs as domestic refiners expand product exports.—while crude oil production rebounds from recent declinesPage 200 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration0246810121416182000 2010 2020 2030 2040Crude oil production million barrels per dayU.S. totaltight oilnon-tight oil 2016history projectionsReference43Tight oil dominates U.S. production in the Reference case—2020 2030 2040Low Oil and Gas Resource & Technology2016projections2020 2030 20402016projectionsHigh Oil and Gas Resource & TechnologyU.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration44• Despite rising prices, Reference case U.S. crude oil production levels off between 10 and 11 million barrels per day as tight oil development moves into less productive areas and as well productivity gradually decreases. • Lower 48 onshore tight oil development continues to be the main driver of total U.S. crude oil production, accounting for about 60% of the total cumulative domestic production in the Reference case domestic between 2016 and 2040.• Announced discoveries in deepwater Gulf of Mexico lead to production increases in the Lower 48 states offshore through 2020. Reference case offshore production then declines until 2034, with the rate of decline slowing through 2040 as production from new discoveries offset declines in legacy fields.• In the High Oil and Gas Resource and Technology case, higher well productivity reduces development and production costs per unit, resulting in more resource development than in the Reference case. These assumptions are based on higher initial estimated ultimate recovery per well, larger volumes of onshore Lower 48 tight oil and shale gas resources, and higher rates of long-term technology improvement.—but other types of oil production continue to yield significant volumesPage 201 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration0.00.51.01.52.02.53.02000 2010 2020 2030 2040Lower 48 onshore crude oil production by region (Reference case) million barrels per day2016history projectionsSouthwestDakotas/Rocky Mountains Gulf CoastMidcontinentWest CoastEast 45The Southwest and Dakotas/Rocky Mountains regions lead growth in tight oil production in the Reference case—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration46• Growth in Lower 48 onshore crude oil production is projected to occur mainly in the Southwest, Dakotas/Rocky Mountains, and Gulf Coast regions.• Growth in crude oil production in the Southwest is supported by increases in the Permian basin, which includes both tight and non-tight formations. • Growth in the Dakotas/Rocky Mountains crude oil production is driven by increased production from the Bakken play, which is exclusively tight oil. • Production in the Gulf Coast region, primarily from the Eagle Ford and Austin Chalk plays, increases throughout most of the projection period. —and the Gulf Coast region remains an important contributor to overall production levelsPage 202 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration47-40-200204060802000 2005 2010 2015 2020 2025 2030 2035 2040Petroleum net imports as a percentage of products suppliedpercentLow Oil PriceLow Oil and GasResource and TechnologyReferenceHigh Oil PriceHigh Oil and GasResource and Technologynet importsnet exports2016history projectionsIn most cases, the United States remains a net petroleum importer—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration48• In the Reference case, net crude oil and petroleum product imports as a percentage of U.S. product supplied fall through 2030.• The Low Oil Price case results in lower U.S. crude oil production because of the lack of economic incentive for producers to drill in higher-cost tight oil formations and offshore crude oil reserves. Relatively lower prices in this case result in higher domestic product demand that promotes higher crude oil and petroleum product imports.• In the High Oil Price case, high crude oil prices lead to increased U.S. crude oil production from higher-cost production areas and result in lower domestic petroleum product demand, which leads to lower product imports.• In the High Oil and Gas Resource and Technology case, U.S. crude oil and petroleum liquids exports are higher compared with the Reference case.—but in the High Oil Price and the High Oil and Gas Resource and Technology cases, the United States becomes a net exporterPage 203 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration0246810122000 2010 2020 2030 20402016history projectionsconsumptionexports49U.S. motor gasoline consumption and exports are sensitive to changes in prices—Motor gasoline consumption and gross exportsmillion barrels per day0123456782000 2010 2020 2030 20402016history projectionsReferenceHigh Oil PriceLow Oil PriceMotor gasoline retail pricesU.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration50• U.S. average retail prices for motor gasoline are driven largely by changes in crude oil prices because crude oil is the main input used to produce motor gasoline.• Improvements in vehicle fuel efficiency contribute to falling U.S. motor gasoline consumption, while high levels of refinery output result in continued growth of motor gasoline exports through 2040.• In the Low Oil Price case, greater domestic motor gasoline consumption and lower domestic crude oil production results in lower exports of motor gasoline. • The High Oil Price case results in lower domestic motor gasoline consumption and greater exports, reflecting the domestic gasoline demand response to higher prices as well as the U.S. refining industry’s competitive advantage. —although efficiency improvements result in declining consumption across all casesPage 204 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information AdministrationNatural gasAcross most cases, natural gas production increases despite relatively low and stable natural gas prices, supporting higher levels of domestic consumption and natural gas exports. Projections are sensitive to resource and technology assumptions.U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information AdministrationPage 205 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration01020304050601980 2000 2020 2040Natural gas consumptiontrillion cubic feet2016history projections02040608010012014016001020304050601980 2000 2020 2040Natural gas productionHigh Oil and Gas Resource and TechnologyHigh Oil PriceHigh Economic GrowthReferenceLow EconomicGrowthLow Oil PriceLow Oil and Gas Resource and Technologybillion cubic feet per day2016history projections53U.S. natural gas consumption increases across most cases through most of the projection period—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration54• In the Reference case, natural gas production over the 2016–20 period is projected to grow at about the same rapid rate (nearly 4% annual average) as it has since 2005. Since 2005, technologies to more efficiently produce natural gas from shale and tight formations have driven prices down, spurring growth in consumption and net exports. • Beyond 2020, natural gas production in the Reference case is projected to grow at a lower rate (1.0% annual average) as net export growth moderates, domestic natural gas use becomes more efficient, and prices slowly rise. Rising prices are moderated by assumed advances in oil and natural gas extraction technologies.• Near-term production growth is supported by large, capital-intensive projects, such as new liquefaction export terminals and petrochemical plants, built in response to low natural gas prices.• Despite decreasing in the near term, in all cases, other than the Low Oil and Gas Resource and Technology case, U.S. natural gas consumption is expected to increase during much of the projection period. —and in combination with growing net exports, supports production growthPage 206 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration0246810121990 2000 2010 2020 2030 2040Natural gas spot price at Henry Hub 2016 dollars per million British thermal unitsLow Oil and Gas Resource and TechnologyReferenceHigh Oil and Gas Resource and Technology2016history projections01020304050601990 2000 2010 2020 2030 2040Dry natural gas productiontrillion cubic feetLow Oil and Gas Resource and TechnologyHigh Oil and Gas Resource and TechnologyReference2016history projections55Natural gas prices are projected to increase—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration56• The range of projected Henry Hub natural gas prices depends on the assumptions about the availability of oil and natural gas resources and drilling technology. • In the Reference case, the natural gas spot prices at the U.S. benchmark Henry Hub in Louisiana rise because of increased drilling levels, production expansion into less prolific and more expensive-to-produce areas, and demand from both petrochemical and liquefied natural gas export facilities. • Reference case prices rise modestly from 2020 through 2030 as electric power consumption increases; however, natural gas prices stay relatively flat after 2030 as technology improvements keep pace with rising demand.• In the High Oil and Gas Resource and Technology case, lower costs and higher resource availability allow for increased levels of production at lower prices, increasing domestic consumption and exports. • In the Low Oil and Gas Resource and Technology case, prices near historical highs drive down domestic consumption and exports.—and are sensitive to the availability of new technology and resourcesPage 207 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration01020304050601995 2005 2015 2025 2035Dry natural gas production by type trillion cubic feetReferenceshale gas and tight oil playstight gasother Lower 48 onshoreLower 48 offshoreother2016history projections0204060801001201401602020 2030 20402016projectionsHigh Oil and Gas Resourceand Technologybillion cubic feet per day57U.S. natural gas production growth is the result of continued development of shale gas and tight oil plays—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration58• Production from shale gas and associated gas from tight oil plays is the largest contributor to natural gasproduction growth, accounting for nearly two-thirds of total U.S. production by 2040 in the Reference case. • Tight gas production is the second-largest source of domestic natural gas supply in the Reference case, but its share falls through the late-2020s as the result of growing development of shale gas and tight oil plays.• As new discoveries offset declines in legacy fields, offshore natural gas production in the United States increases over the projection period.• Production of coalbed methane generally continues to decline through 2040 because of unfavorable economic conditions for producing that resource.—which account for nearly two-thirds of natural gas production by 2040Page 208 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration051015202530352000 2010 2020 2030 2040Shale gas production by region trillion cubic feetEastGulf Coastrest of U.S.Reference case2016history projections0102030405060708090051015202530352020 2030 2040billion cubic feet per dayHigh Oil and GasResource andTechnology2016projections59Plays in the East lead production of U.S. natural gas from shale resources in the Reference case—353333333333333333U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration60• Continued development of the Marcellus and Utica plays in the East is the main driver of growth in total U.S. shale gas production and the main source of total U.S. dry natural gas production. • Production from the Eagle Ford and Haynesville plays along the Gulf Coast is a secondary contributor to domestic dry natural gas production, with production largely leveling off in the 2030s.• Continued technological advancement and improvement in industry practices is expected to lower costs and to increase the expected ultimate recovery per well. These changes have a significant cumulative effect in plays that extend over wide areas and have large undeveloped resources (Marcellus, Utica, and Haynesville).—but Gulf Coast onshore production also growsPage 209 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration02040608010005101520253035402010 2016 2020 2030 2040Natural gas consumption by sector trillion cubic feetelectric powerindustrialtransportationcommercialresidentialbillion cubic feet per dayhistory projections61Increasing demand from industrial and electric power markets drive rising domestic consumption of natural gas in the Reference case—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration62• The industrial sector is the largest consumer of natural gas during most years in the Reference case projections. Major natural gas consumers include the petrochemical industry (where natural gas is used as a feedstock in the production of methanol, ammonia, and fertilizer), other energy-intensive industries that use natural gas for heat and power, and liquefied natural gas producers.• After a brief near-term decline attributable to strong growth in renewables generation and price competition with coal, natural gas used for electric power generation generally increases after 2020. In particular, the Clean Power Plan (CPP) and the scheduled expiration of renewable tax credits in the mid-2020s result in an increase in the electric power sector’s natural gas use. Natural gas consumption in the electric power sector is about 6% higher in the Reference case in 2040 than the No CPP case.• Natural gas consumption in the residential and commercial sectors remains largely flat as a result of efficiency gains that balance increases in the number of housing units and commercial floor space. • Although natural gas use rises in the transportation sector, it remains a small share of both total natural gas consumption and transportation fuel demand. —with comparatively little growth in the residential and commercial sectors Page 210 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration051015202502468102000 2010 2020 2030 2040Liquefied natural gas exportstrillion cubic feetbillion cubic feetper day2016history projections0123456782000 2010 2020 2030 2040Oil-to-natural gas price ratioenergy-equivalent terms2016history projections63U.S. LNG export levels vary across cases and reflect both the level of global demand—ReferenceHigh and Low Oil and Gas Resource and TechnologyHigh and LowOil PriceU.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration64• Currently, most liquefied natural gas (LNG) is traded under oil price-linked contracts, in part because oil can substitute for natural gas in industry and for power generation. However, as the LNG market expands, contracts are expected to change, weakening their ties to oil prices.• When the oil-to-natural gas price ratio is highest, as in the High Oil Price case, U.S. LNG exports are at their highest levels. Demand for LNG generally increases as consumers move away from petroleum products, and LNG produced in the United States has the advantage of domestic spot prices that are less sensitive to global oil prices than supplies from other sources. In the Low Oil Price case, LNG exports from the United States are at their lowest levels throughout the projection period.• In the High Oil and Gas Resource and Technology case, low U.S. natural gas prices make U.S. LNG exports competitive relative to other suppliers. Conversely, higher U.S. natural gas prices in the Low Oil and Gas Resource and Technology case result in lower U.S. LNG exports.—and the difference between domestic and global natural gas prices, with the latter more heavily influenced by oil prices Page 211 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration-6-226-6-4-2024681980 1990 2000 2010 2020 2030 2040Natural gas tradetrillion cubic feet2016history projections22161050-5-10-16liquefied natural gas (LNG) exportspipeline exports to CanadaMexicopipeline imports fromCanadaLNG importsbillion cubic feet per day65Increased natural gas trade is dominated by liquefied natural gas exports in the Reference case—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration66• In the Reference case, liquefied natural gas (LNG) is projected to dominate U.S. natural gas exports by the early-2020s. The first LNG export facility in the Lower 48, Sabine Pass, began operations in 2016, and four more LNG export facilities are scheduled to be completed by 2020. • After 2020, U.S. exports of LNG grow at a more modest rate as U.S.-sourced LNG becomes less competitive in global energy markets.• U.S. natural gas exports to Mexico continue to rise in the short term as pipeline infrastructure currently under development allows for rising exports to meet Mexico’s increased demand for natural gas to fuel electric power generation. • U.S. imports of natural gas from Canada, primarily from the West where most of Canada’s natural gas is produced, continue to decline, while U.S. exports to Canada—primarily to the East—continue to increase because of Eastern Canada’s proximity to abundant natural gas resources in the Marcellus basin. —while pipeline imports into the United States continue to declinePage 212 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information AdministrationElectricityAs demand grows modestly, the primary driver for new capacity in the Reference case is the retirement of older, less efficient fossil fuel units—largely spurred by the Clean Power Plan (CPP)—and the near-term availability of renewable energy tax credits. Even if the CPP is not implemented, low natural gas prices and the tax credits result in natural gas and renewables as the primary sources of new generation capacity. The future generation mix is sensitive to the price of natural gas and the growth in electricity demand.U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information AdministrationPage 213 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration05001,0001,5002,0002,5001980 1990 2000 2010 2020 2030 2040U.S. net electricity generation from select fuels billion kilowatthoursnatural gas2016history projectionspetroleumcoalrenewableenergynuclear Reference case2020 2030 20402016projectionsNo Clean Power Plan69Fuel prices and current laws and regulations drive growing shares of renewables and natural gas in the electricity generation mix—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration70• Fuel prices drive near-term natural gas and coal shares. As natural gas prices rebound from their 20-year lows which occurred in 2016, coal regains a larger generation share over natural gas through 2020.• Federal tax credits drive near-term growth in renewable generation, displacing growth in natural gas.• In the longer term, policy (Clean Power Plan, renewables tax credits, and California’s SB32) and unfavorable economic conditions compared with natural gas and renewables result in declining coal generation and growing natural gas and renewables generation in the Reference case. —as coal’s share declines over time in the Reference casePage 214 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration-30-20-100102030402005 2010 2015 2020 2025 2030 2035 2040Annual electricity generating capacity additions and retirements (Reference case) gigawattshistory projectionssolarwindoil and gasnuclearothercoaladditionsretirements71Lower capital costs and the availability of tax credits boost near-term wind additions and sustain solar additions—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration72• In the Reference case, nearly 70 gigawatts (GW) of new wind and solar photovoltaic (PV) capacity is added over 2017–21, encouraged by declining capital costs and the availability of tax credits. • Most of the wind capacity used to comply with the Clean Power Plan (CPP) is built prior to the scheduled expiration of the production tax credit for wind plants coming online by the end of 2023, although wind is still likely to be competitive without the tax credits.• Continued retirements of older, less efficient fossil fuel units under the CPP support a consistent market for new generating capacity throughout the projection period.• After 2030, new generation capacity additions are split primarily between solar and natural gas, with solar capacity representing more than 50% of new capacity additions in the Reference case between 2030 and 2040. —whereas coal-fired unit retirements in the Reference case are driven by low natural gas prices and the Clean Power PlanPage 215 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration05001,0001,5002,0002,5001980 2000 2020 20402016history projectionsReference caseElectricity generation from selected fuelsbillion kilowatthoursnatural gasrenewablescoal73Natural gas resource availability affects prices that plays a critical role in determining the mix of coal, natural gas, and renewable generation—2015 20402016projections2015 2040High Oil and GasResource and Technology2016projectionsLow Oil and GasResource and TechnologyU.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration74• Lower natural gas prices, which occur in the High Oil and Gas Resource and Technology case, lead to natural gas-fired electricity generation displacing coal-fired generation. In this case, and relative to the Reference case, natural gas maintains its market-share lead over coal through 2040, and it displaces some renewables market share relative to the Reference case.• Higher natural gas prices, which occur in the Low Oil and Gas Resource and Technology case, favor growth of renewables. Relative to the Reference case, coal-fired generation regains market share from natural gas in the near term, but because of carbon emission limits imposed by the Clean Power Plan, renewables ultimately gain a larger market share.—as seen in the resource and technology casesPage 216 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration02004006008001,0001,2001,4001,6001,800199020162040199020162040199020162040199020162040Electricity use by end-use demand sector billion kilowatthoursdirect useelectricity salesresidential industrialcommercial transportation-202468101960 1980 2000 2020 2040Electricity use growth rate percent growth (three-year rolling average)2016history projections75Electricity use continues to increase—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration76• In recent history, the growth in electricity demand has slowed as older equipment was replaced with newer, more efficient stock, as efficiency standards were implemented and technology change occurred, particularly in lighting and other appliances. The demographic and economic factors driving this trend included slowing population growth and a shifting economy toward less energy-intensive industries.• While growth in the economy and electricity demand remain linked, historically the linkage has continued to shift toward much slower electricity demand growth relative to economic growth.• Growth in electricity demand, while relatively low historically, begins to rise slowly across the projection period as demand for electric services is only partially offset by regulatory compliance and efficiency gains in electricity-using equipment.• Growth in direct use generation above growth in sales is primarily the result of the adoption of rooftop photovoltaic (PV) and natural gas-fired combined heat and power (CHP).—but the rate of growth remains lower than historic averages in the Reference casePage 217 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration01002003004005006002000 2005 2010 2015 2020 2025 2030 2035 2040Renewable electricity generation (Reference case)billion kilowatthours2016history projectionswindutility-scale and end-use solarhydroelectricbiomassgeothermal77Wind and solar generation become the predominant sources of renewable generation in the Reference case—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration78• The Clean Power Plan (CPP) and state-defined Renewable Portfolio Standards (RPS) increase demand for wind and solar electricity generation throughout the projection period. • The scheduled expiration of production tax credits encourages an increase in wind capacity additions ahead of CPP implementation. While many wind projects would be economic without the tax credits, most of the profitable wind capacity will be added to take advantage of the tax credits prior to their expiration.• Substantial cost reductions, performance improvements, and a permanent 10% investment tax credit support solar generation growth throughout the projection period.• Some geothermal resources are also competitive sources of new generation, but these lowest-cost resources are geographically limited and are only expected to be exploited slowly.—with each surpassing hydroelectric generationPage 218 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration0501001502002502010 2020 2030 2040utility-scaledistributedSolar electricity generation (Reference case) billion kilowatthours2016history projections79Most electric generation from solar resources comes from utility-scale installations—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration80• Although utility-scale photovoltaic (PV) generation typically costs less than distributed PV, in some circumstances distributed PV remains economically attractive. Distributed PV competes against higher retail electricity prices, which do not necessarily reflect time-of-day or seasonal variation in the cost of electricity.• With a continued (but reduced) tax credit, declining costs, and on-peak generation profile, both utility and distributed solar builds occur throughout the projection period.• AEO2017 projections include higher time-of-day and seasonal resolution of both utility-scale and distributed solar output as compared to AEO2016, as well as higher geographic resolution (at the ZIP code level) of distributed solar. The net result of these model changes is to reduce projected utility-scale solar generation and increase distributed solar generation, although not to the same degree. —but generation from distributed photovoltaics is a significant contributor Page 219 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration0204060801001202010 2020 2030 2040Nuclear electricity generating capacitygigawatts2016history projectionsReferencecase-4-3-2-101232015 2020 2025 2030 2035 2040Year-over-year nuclear capacity changes gigawattsadditionsretirementsassumed upratesnew reactorsactual/announcedretirementsprojectedretirementsReferencecase81Assumptions about license renewals in AEO2017 increase nuclear retirements—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration82• No new, unannounced nuclear capacity is added in the Reference case over the projection period because of the combination of low natural gas prices, higher renewables penetration, low electricity load growth, and relatively high capital costs. • New capacity additions are limited to reactors under construction from 2017 onward and to projected uprates at existing reactors. From 2018 through 2040, 4.7 gigawatts (GW) of additional capacity at existing units is projected to come online, based on an assessment of the remaining uprate potential.• A significant reduction in nuclear capacity occurs because of 6.4 GW of total announced retirements; 3.0 GW of projected retirements in 2019–20 to address near-term, market uncertainty; and approximately 10.6 GW of long-term retirements through 2040 to address the uncertainty of reactors achieving a subsequent license renewal. As many nuclear plants reach the 60-year subsequent license renewal decision after 2040, retirements continue, with another 11.7 GW of nuclear capacity projected to retire by 2050.• All nuclear plant retirements other than those already announced were modeled as capacity reductions for the regional nuclear fleets (i.e., as generic derates), rather than as retirements of specific plants.—leading to net nuclear capacity decreases Page 220 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration02004006008001,0001,2001,40020002010202020302040Coal productionmillion short tonstotalWestAppalachiaInterior2016history projectionsNo Clean Power PlanReference02004006008001,0001,2001,4002000 2010 2020 2030 2040Coal consumption in electric power sector million short tons2016history projectionsNo CleanPower PlanReference83Coal production decreases—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration84• The impacts of the Clean Power Plan (CPP) are not shared equally across the major coal supply regions because of differences in coal quality, regional natural gas and coal prices, and how the electricity markets served by each region are affected with respect to coal retirements and renewables penetration.• Coal production increases through 2020 to more than 800 million short tons in the Reference case as a projected rise in natural gas prices improves the competitiveness of existing coal generating units. • After 2020, coal production in the Reference case declines, reaching nearly 620 million short tons per year in 2040, which is lower than the over 850 million short tons per year projected to be produced in 2040 in the No CPP case.• The Interior region market share grows from 20% of U.S. coal production in 2016 to 26% by 2040, with Appalachia and Western production losing market share in both the Reference and No CPP cases.• Coal production declines gradually after 2030 in the Reference case as retiring nuclear capacity is replaced, in part, by natural gas-fired electricity generation, requiring a reduction in existing carbon-emitting generation to maintain the CPP emission cap.—primarily in the Western regionPage 221 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration85Including available federal tax credits, wind and solar units will be among the most competitive sources of new generation in 2022—Source:U.S. Energy Information Administration, Levelized Cost and Levelized Avoided Cost of New Generation Resources in the Annual Energy Outlook 2017Note: Capacity additions include planned and unplanned additions.0 20406080100120140HydroSolar PVWindBiomassGeothermalAdvanced nuclearAdvanced combined cycle0.513.454.20.10.84.41.60 204060HydroSolar PVWindBiomassGeothermalAdvanced NuclearAdvancedCombined CycleProjected capacity additions, 2018-2022gigawatts (GW)Levelized cost projections by technology, 20222016 dollars per megawatthourLevelized cost of electricity (LCOE)including tax creditsLevelized avoided cost of electricity (LACE)U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration86• Comparisons of levelized cost of electricity (LCOE) across technologies can be misleading as different technologies serve different market segments.• Levelized avoided cost of electricity (LACE) can be used to compare the cost (LCOE) of an electricity generation resource against the value (LACE) of the electricity generation and capacity that it displaces.• Wind plants entering service in 2022 that started construction in 2018 will receive an inflation-adjusted $14/MWh federal production tax credit; solar plants entering service in 2022 will receive a 26% investment tax credit, assuming a two-year construction lead time.• See more information in EIA’s LACE/LCOE reporton EIA’s website. —when levelized costs of electricity and levelized avoided costs of electricity are consideredPage 222 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration87The value of energy (LACE) for wind and solar is more sensitive to differences in policy and market assumptions than the cost (LCOE)—0 20406080100120140160Solar PV LCOELACERange of levelized cost and levelized avoided cost by case, 20222016 dollars per megawatthourReferenceWithout tax creditsLow Oil and Gas Resource and TechnologyLow Economic GrowthHigh Oil and Gas Resource and TechnologyHigh Economic Growth0 20406080100Onshore wind U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration88• The availability of tax credits affects the effective cost of generation from solar and wind, but other policies may affect value.• High or low natural gas prices, as respectively reflected in the Low and High Oil and Gas Resource and Technology cases, affect the cost of generation that wind or solar displaces, and thus play a big role in determining the value of these resources to the electric grid.• Faster demand growth under high macroeconomic growth conditions increases the value of new generation resources. Slower macroeconomic growth, leads to relatively flat demand growth and less demand for new generation.—particularly assumptions that affect natural gas price projectionsPage 223 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information AdministrationTransportationTransportation energy consumption peaks in 2018 in the Reference case because rising fuel efficiency outweighs increases in total travel and freight movements throughout the projection period.U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information AdministrationPage 224 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration051015202530352000 2010 2020 2030 2040Transportation sector consumption quadrillion British thermal units2016history projectionsmotorgasolinedistillatefuel oiljet fuelelectricityother051015202530352000 2010 2020 2030 2040Transportation sector consumptionquadrillion British thermal units2016history projectionslight-dutyvehiclesmedium- and heavy-dutyvehiclesaircommerciallight trucksrailmarineother91Transportation energy use declines between 2018 and 2034 in the Reference case—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration92• Total transportation-related energy consumption peaks in 2018 in the Reference case and then declines through 2034 even as total travel and freight movement increases.• Similarly, despite increases in light-duty travel, light-duty vehicle energy use also peaks in 2018 and then declines through 2040 as a result of higher fuel efficiency.• Because the increase in freight travel demand is offset by rising fuel economy standards, heavy-duty vehicle energy consumption is approximately the same in 2040 as it was in 2016. • Demand for air transport rises over the projection period, leading to an increase in energy used by air travel despite efficiency improvements. —driven by improvements in fuel economyPage 225 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration010203040502000 2010 2020 2030 2040Light-duty stock fleet fuel economymiles per galloncarfleetaveragetruck2016history projections20%30%40%50%60%70%2000 2010 2020 2030 2040Light-duty vehicle sales sharespercenttruckcar0%2016history projections93Average light-duty fuel economy improves in the Reference case—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration94• Light-duty stock fuel economy is projected to rise from 22.2 miles per gallon (mpg) in 2016 to 34.6 mpg in 2040 in the Reference case. Current regulations require annual increases in fuel economy and reductions in greenhouse gas emissions through model year 2025, leading to a significant decrease in gasoline consumption.• The sales share of light-duty trucks, which have lower fuel economy compared with passenger vehicles, limits the increase of the average fuel economy of the light-duty fleet.• The shift toward light-duty trucks is driven by lower fuel costs and a changing preference for pickup trucks and sport utility vehicles rather than cars.• Light-duty truck sales decrease after 2018 with the rise in popularity of front-wheel drive crossover vehicles that are classified as passenger cars.—even as the share of light-duty trucks increases Page 226 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration0501001502002503003504004502000 2020 20402016history projectionstravel indicatorbillion vehicle-miles traveled95With the second phase of fuel efficiency regulations, medium- and heavy-duty vehicle energy consumption declines over 2023–33—0246810122000 2020 20402016history projectionsstock fuel economymiles per gallon012345672000 2020 20402016history projectionsenergy consumptionquadrillion British thermal unitsMedium- and heavy-duty vehicle metricsU.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration96• The second phase of the fuel efficiency and greenhouse gas regulations for medium- and heavy-duty vehicles takes full effect in 2027.• Fuel economy of new medium- and heavy-duty vehicles increases by 38% from 2016–32 before leveling off, but stock fuel economy continues to increase through 2040 as less fuel efficient vehicles retire.• Energy consumption from medium- and heavy-duty vehicles decreases from 2023 through 2033 before increasing in the Reference case, where fuel economy standards for trucks do not increase beyond 2027.• Diesel remains the dominant fuel for trucks despite increasing use of alternative fuels.—despite continued increase in miles traveled Page 227 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration02004006008001,0001,2001,4002010 2015 2020 2025 2030 2035 2040New light-duty vehicle sales thousands of vehiclesbatteryelectricplug-in hybrid2016history projectionsfuel cell97Sales of battery electric, plug-in electric hybrid, and fuel cell vehicles increase in the Reference case—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration98• Battery electric vehicles (BEV) sales increase from less than 1% to 6% of total light-duty vehicles sold in the United States over 2016–40, and plug-in hybrid electric vehicle (PHEV) sales increase from less than 1% to 4% over the same period. Hydrogen fuel cell vehicle (FCV) sales grow to approximately 0.6% of sales by 2040.• In 2025, projected sales of light-duty battery electric, plug-in hybrid electric, and hydrogen fuel cell vehicles reach 1.5 million, about 9% of projected total sales of light-duty vehicles.• Regional programs such as California’s Zero-Emission Vehicle regulation, which has been adopted by nine additional states, and California’s SB-32, which requires a reduction in greenhouse gas emissions, spur alternative vehicle sales, especially electric and fuel cell vehicles.• Updated data that indicate lower battery costs have increased EIA’s outlook for BEV and PHEV sales.—because of lower projected battery costs and existing state policies Page 228 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration0.00.51.01.52.02.52000 2020 20402016history projectionsAir transportation metricstravel indicatortrillion seat-miles available99Even with improving commercial aircraft efficiency—01020304050607080902000 2020 20402016history projectionsstock fuel economyseat-miles per gallon0123452000 2020 20402016history projectionsjet fuel consumptionquadrillion British thermal unitsU.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration100• Jet fuel consumption increases more than 40% between 2016 and 2040 in the Reference case, asdemand for air travel more than offsets projected efficiency gains in aircraft. • With slow fleet turnover, aircraft stock efficiencies rise more than 12% between 2016 and 2040, as measured by seat-miles per gallon.• U.S. load factors (fraction of filled seats and cargo space) for domestic and U.S. international routes, which increased significantly over 1995–2010, are projected to remain relatively flat over 2016-40.• Even with the rise in aircraft efficiency, U.S. seat-miles more than double and freight revenue ton-miles nearly double through 2040, yielding a net increase in jet fuel consumption in the transportation sector.—jet fuel use rises in the Reference case with increased travel Page 229 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information AdministrationBuildingsDespite growth in the number of households and the amount of commercial floorspace,improved equipment and efficiency standards contribute to residential and commercial consumption remaining relatively flat or declining slightly from 2016 to 2040 in the Reference case.U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information AdministrationPage 230 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration01234561980 1990 2000 2010 2020 2030 2040Residential sector delivered energy consumption quadrillion British thermal units2016history projections01234561980 1990 2000 2010 2020 2030 2040Commercial sector delivered energy consumption quadrillion British thermal units2016history projections103Residential and commercial fuel consumption are relatively stable in the Reference case—electricity natural gas petroleum and other liquids otherU.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration104• Laws and regulations to introduce and update appliance standards and building codes have continued to increase energy efficiency in the residential and commercial sectors.• Electricity demand in both sectors has been relatively flat in recent years, and it continues to be flat in the near term. Eventually, the increased adoption and saturation of new uses not currently covered by appliance standards increases consumption.• Continued population shifts toward warmer parts of the country tend to lower heating demand and increase cooling demand. More energy is used for heating, so the result is a decrease in net delivered energy.• Consumption of natural gas, used primarily for space heating, water heating, and cooking, has historically grown slower than electricity, and this trend generally continues through the projection.• Use of petroleum-based fuels such as propane and heating oil continues to decline in the residential sector and remains relatively flat in the commercial sector.—as energy efficiency and other factors offset growth in end-use energy service demandPage 231 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration02468101214161980 1990 2000 2010 2020 2030 2040Electricity prices2016 cents per kilowatthour2016history projectionsresidentialcommercial0246810121416181980 1990 2000 2010 2020 2030 20402016history projectionsNatural gas prices2016 dollars per thousand cubic feetresidentialcommercial105Gradual increases in electricity and natural gas prices—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration106• Following modest price increases from 2016 to 2030 in both residential and commercial sectors, electricity prices stabilize after 2030. • As electricity prices flatten from 2030 to 2040, along with factors such as geographic population shifts and floorspace growth, electricity consumption rises at an increased rate in both sectors.• Residential natural gas consumption is relatively stable, despite steadily increasing residential natural gas prices.• Commercial natural gas prices increase in the near term, while commercial natural gas consumption remains flat; in the longer term, as price increases slow after 2030, commercial natural gas consumption begins to increase. —affect residential and commercial energy consumptionPage 232 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration0246heatingcoolingwater heatinglightingrefrigerationotherResidential sector delivered energy consumptionquadrillion British thermal units201620400246heatingcoolingwater heatinglightingrefrigerationotherCommercial sector delivered energy consumption quadrillion British thermal units20162040107Energy consumption decreases for most major end uses in the residential and commercial sectors—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration108• Energy consumption for lighting declines in the residential and commercial sectors as light-emitting diodes and compact fluorescent lamps continue to replace incandescent lamps and other bulb types. • Energy consumption most residential and commercial applications either remains flat or declines slightly from 2016 to 2040 in the Reference case, despite growth in the number of households and the amount of commercial floorspace.• Utility rebates contribute to a decrease in energy consumption. These rebates are expected to increase with the implementation of the Clean Power Plan (CPP) because energy efficiency programs are one of the available compliance strategies, and they are expected to grow more than they would in the absence of the CPP.• In the residential sector, most of the growth in the Othercategory comes from increasing market penetration of smaller electric devices, most of which are not covered by efficiency standards.• In the commercial sector, increased energy consumption for Otherprimarily reflects an increase in non-building uses such as telephone and technology networks.—with improved equipment efficiency and standards in the Reference case Page 233 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration01234other usesTVs and PCscookinglaundry and dishwashingrefrigerators and freezerswater heatingheatinglightingcoolingResidential electricity use per householdthousand kilowatthours per household20162040109Per-household electricity use continues to decline in the Reference case—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration110• Electricity use per household continues to decrease in the Reference case, as household growth exceeds growth in residential electricity use.• By 2040, the average household uses less than half as much electricity for lighting as they did in 2016, as customers replace incandescent bulbs with more energy efficient light-emitting diodes (LEDs) and compact fluorescent lamps (CFLs).• Space cooling consumption for the average household declines by nearly 20%, as energy efficiency improvements more than offset the increased demand for space cooling.• Per household electricity use by miscellaneous loads, a category that encompasses a wide range of equipment such as small electronic devices, home security systems, and pool pumps, increases slightly as efficiency improvements only partially offset the increased adoption and market penetration of new devices.• Residential on-site electricity generation, mostly from photovoltaic solar panels, lowers total purchased delivered electricity from the electric grid.—led by efficiency improvements in lighting, cooling, and heatingPage 234 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration02040otheroffice PCsoffice non-PCscookingrefrigerationwater heatinglightingventilationcoolingheatingAEO2016AEO2017Commercial energy intensities, 2016thousand British thermal units per square foot01020mercantile/servicelodgingfood salesfood servicehealth careothereducationsmall officewarehouseassemblylarge officeCommercial floorspace by type, 2016million square feetAEO2016AEO2017revisedupreviseddown111AEO2017 includes new data from EIA’s Commercial Buildings Energy Consumption Survey—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration112• AEO2017 is based on the latest Commercial Buildings Energy Consumption Survey (CBECS), which was released during 2015 and 2016 and is the first update to be included in the AEO since AEO2007. The sample of buildings surveyed was drawn from the set of commercial buildings as of 2012. • The latest CBECS provides a better understanding of the makeup of the commercial sector as well as the energy consumption associated with different end uses.• Overall commercial floorspace is larger than previous estimates, especially for large offices and assembly buildings. • Some end uses, particularly lighting and water heating, have changed significantly since the previous CBECS, which was based on the set of commercial buildings as of 2003 and did not consider as many building types as the latest CBECS.• Categorization of some end uses in commercial buildings has changed. For instance, the category of office personal computers (PCs) now includes data center servers and all video screens; this equipment was previously categorized as other end-uses.—leading to revisions in commercial building mix and energy consumption Page 235 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration0204060801002010202020302040Buildings sector on-site electric generating capacitygigawatts2016history projectionsresidential solar photovoltaiccommercial solarphotovoltaiccombined heatand powerall other113On-site electricity generation in residential and commercial buildings increases in the Reference case—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration114• Solar photovoltaic (PV) systems account for most of the growth in buildings-sector on-site (or distributed) electricity generation in the AEO2017.• Solar PV adoption grows from a 2010 base of less than 2 gigawatts (GW) in the residential and commercial sectors to more than 125 GW of capacity in 2040 in the Reference case. • Other technologies such as small wind and combined heat and power, mostly in the commercial sector, grow more slowly and reach about 13 GW of capacity by 2040.• Federal investment tax credits for solar technologies currently cover 30% of installed cost through 2019, dropping to 26% in 2020 and to 22% in 2021. In 2022, residential tax credits expire, and commercial credits are reduced to 10%.• The differences from AEO2016 come from expected technology cost declines and changes in the way that EIA projects buildings will employ solar PV over time (adoption modeling). Additionally, EIA’s new residential PV adoption projection uses econometric modeling of ZIP code-level solar resources, electricity rates, and financial metrics.—reflecting declining technology costs and the continued availability of incentives for solar technologies to all sectors through 2021Page 236 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information AdministrationIndustrialWith economic growth and relatively low energy prices, energy consumption in EIA’s three industrial sub-sectors (energy-intensive manufacturing, non-energy-intensive manufacturing, and nonmanufacturing) increases during the projection period across all cases. Energy intensity declines across all cases as a result of technological improvements. U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information AdministrationPage 237 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration117Industrial delivered energy consumption grows in all cases—182022242628303234361980 1990 2000 2010 2020 2030 20402016history projections//High Oil PriceHigh Economic GrowthHigh Oil and Gas Resourceand Technology Reference Low Oil and Gas Resource and TechnologyLow Economic GrowthLow Oil PriceIndustrial energy consumptionquadrillion British thermal unitsU.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration118• Reference case industrial energy consumption is projected to grow more than 25%, from 26 to 32quadrillion British thermal units between 2016 and 2040. • Industrial energy consumption is greatest in the High Oil Price case. Although industrial energy use grows in all cases, more energy is used to produce steel, fabricated metal products, and machinery in the High Oil Price case than the Reference case because of greater demand for these products. • Combined heat and power (CHP) generation in the High Oil Price case is about 26%, or about 53 billion kilowatthours, above the Reference case by 2040 largely because of higher CHP generation for coal-to-liquids and gas-to-liquids. Coal-to-liquids and gas-to-liquids are economical in the High Oil Price case in the mid-2020s and after.—but is highest in the High Oil Price case and the High Economic Growth cases over most of the projection Page 238 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration2010 2020 2030 2040Industrial energy consumption quadrillion British thermal units2016history projectionsnon-manufacturingother non-energyintensivemetal durablesrefiningbulk chemical feedstockbulk chemical heat & powerfoodiron & steelpaperother energy intensive119Industrial sector energy consumption grows faster than in other demand sectors in the Reference case—051015202530351980 2000 2020 2040Industrial energy consumptionquadrillion British thermal units2016history projectionscoalelectricityrenewablesnatural gashydrocarbongas liquidspetroleumU.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration120• Driven by economic growth and supported by relatively low energy prices, industrial energy consumption in EIA’s three main industrial sub-sectors (nonmanufacturing, energy-intensive manufacturing, and non-energy-intensive manufacturing) increases during the projection period across all cases.• Natural gas (used for heat and power in many industries) and petroleum (a feedstock for bulk chemicals) make up the majority of delivered industrial energy consumption, followed by purchased electricity, renewables, and coal.• Total industrial energy consumption growth averages nearly 1% per year from 2016–40 in the Reference case, the highest growth rate of any demand sector, as economic growth exceeds efficiency gains. • Industrial coal usage declines by 24% over the projection period as its use in combined heat and power (CHP) is largely replaced by lower-cost natural gas.• Hydrocarbon gas liquids (HGL) such as ethane, propane, and butane are largely produced by processing liquids from wet natural gas wells. HGL, which are widely used as feedstock in chemical processes, are a major source of growth in overall industrial use of petroleum.—led by increases in petroleum and natural gas consumptionPage 239 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration0123456789nonenergy intensivemanufacturingnonmanufacturingenergy intensivemanufacturingindustrial totalIndustrial energy intensity (Reference case) trillion British thermal units per billion dollars of shipments20162040121Industrial energy intensity declines across all subsectors—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration122• Overall industrial energy intensity, measured as energy consumption per industrial shipment, declines byapproximately 0.9% per year from 2016 to 2040 in the Reference case, consistent with historic trends.• Manufacturing energy intensity declines as a result of continued efficiency gains in industrial equipment as well as a shift in the share of shipments from energy-intensive manufacturing industries to other industries. • Energy-intensive industries, which include food, paper, bulk chemical, glass, cement, iron and steel, and aluminum products, dominate overall industrial energy use consumption, accounting for less than 25% of industrial shipments but more than 60% of industrial energy use. —moderating energy consumption increasesPage 240 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration0501001502002502010 2020 2030 2040Combined heat and power output billion kilowatthours2016history projectionsrefiningbulk chemicalotherpaperfood0501001502002502010 2020 2030 2040Combined heat and power outputbillion kilowatthours2016history projectionsnaturalgasothercoalrenewables123Industrial combined heat and power use grows in the Reference case—U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration124• Natural gas is the most common fuel used in combined heat and power (CHP), but renewables are used in the paper industry. Specialty fuels such as blast furnace gas and still gas are used in the iron and steel industry and the refining industry, respectively.• Industrial CHP is most commonly found in large, steam-intensive industries, such as bulk chemicals, refining, paper, and food. • The median size of an industrial sector CHP facility is 30 megawatts (MW), and an average size of 65MW. CHP offsets approximately 0.5 quadrillion British thermal units (Btu) of purchased electricity in 2016 and 0.7 quadrillion Btu in 2040. —as bulk chemicals and food are the fastest growing industries through 2040Page 241 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information AdministrationReferencesU.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration126ContactsAEO Working Groups https://www.eia.gov/outlooks/aeo/workinggroup/AEO Analysis and Forecasting Expertshttps://www.eia.gov/about/contact/forecasting.php#longtermPage 242 of 248 U.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information Administration127Topic Subject matter expert contact informationGeneral questions Angelina LaRose 202-586-6135 angelina.larose@eia.govCarbon dioxide emissions Perry Lindstrom 202-586-0934 perry.lindstrom@eia.govCoal supply and prices David Fritsch 202-287-6538 david.fritsch@eia.govCommercial demand Kimberly Klaiman 202-586-1678 kimberly.klaiman@eia.govEconomic activity Vipin Arora 202-586-1048 vipin.arora@eia.govElectricity generation, capacity Jeffrey Jones 202-586-2038 jeffrey.jones@eia.govElectricity generation, emissions Laura Martin 202-586-1494 laura.martin@eia.govElectricity prices Lori Aniti 202-586-2867 lori.aniti@eia.govEthanol and biodiesel Sean Hill 202-586-4247 sean.hill@eia.govIndustrial demand Kelly Perl 202-586-1743 eia-oeceaindustrialteam@eia.govInternational oil demand Linda Doman 202-586-1041 linda.doman@eia.govInternational oil production Laura Singer 202-586-4787 laura.singer@eia.govNational Energy Modeling System Daniel Skelly 202-586-1722 daniel.skelly@eia.govNuclear energy Michael Scott 202-586-0253 michael.scott@eia.govOil and natural gas production Terry Yen 202-586-6185 terry.yen@eia.gov Oil refining and markets William Brown 202-586-8181 william.brown@eia.govRenewable energy Chris Namovicz 202-586-7120 chris.namovicz@eia.govResidential demand Kevin Jarzomski 202-586-3208 kevin.jarzomski@eia.govTransportation demand John Maples 202-586-1757 john.maples@eia.govWholesale natural gas markets Kathryn Dyl 202-287-5862 kathryn.dyl@eia.govWorld oil prices Laura Singer 202-586-4787 laura.singer@eia.govU.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information AdministrationU.S. Energy Information Administrationwww.eia.gov/aeo#AEO2017U.S. Energy Information AdministrationU.S. Energy Information AdmU.S. Energy Information Adm128U.S. Energy Information Administration homepage | www.eia.govShort-Term Energy Outlook | www.eia.gov/steoAnnual Energy Outlook | www.eia.gov/aeoInternational Energy Outlook | www.eia.gov/ieoMonthly Energy Review | www.eia.gov/merToday in Energy | www.eia.gov/todayinenergyFor more informationJanuary 5, 2017www.eia.gov/aeo#AEO2017Page 243 of 248 SAMPLE Renewable*ConnectSM Program Agreement This Renewable*ConnectSM Program Agreement (the “Agreement”) is entered into on XX/XX/20XX (the “Agreement Date”) by and between Public Service Company of Colorado, a Colorado corporation (“Xcel Energy” or the “Company”) and __________________________________ (“Customer”) (individually “Party” and together, “Parties”). The “Effective Date” of Agreement will begin either the date the Renewable*Connect program begins producing solar energy or the Agreement Date, whichever occurs first. 1. General terms. The Company agrees to sell and the Customer agrees to buy solar energy through the Company’s Renewable*Connect program, subject to this Agreement and the terms and conditions of service as specified in the Company’s Electric Tariff, including the Renewable*Connect Service Tariff (“RC Tariff”) (Rate Schedule RC) on file with the Public Utilities Commission of the state of Colorado (“Colorado PUC”) as the same may be changed from time to time. A copy of the Electric Tariff, including Rate Schedule RC, is available from the Company’s website at http://www.xcelenergy.com/staticfiles/xe/Regulatory/Regulatory%20PDFs/rates/CO/psco_elec_entir e_tariff.pdf. Most Colorado libraries provide Internet access and can help the Customer view that Web site. In the event of any conflict between the terms of this Agreement and the Electric Tariff, the provisions of the Electric Tariff shall control. 2. Subscription premises. The Customer’s premise is as follows. Premise Address City State Customer ID Premise ID 3. Representations. Customer hereby makes the following representations and warranties to Company: a) Customer warrants that the person signing this Agreement on behalf of Customer is individually authorized and competent to sign this Agreement and to bind Customer to the terms hereof. b) Customer receives electric service from Company at the Premise Address set forth above, and is the person in whose name electric service is listed at the service premise. 4. Selection of participation share. The Customer has chosen to participate in a ___ kW share of the solar system reserved for the program (“Subscription Share”). Each month the Company will use the Customer’s Subscription Share to calculate the amount of solar energy produced by the Customer’s share of the system. 5. Original Agreement, Renewal Term and Option to Terminate Without Penalty. The minimum term of this Agreement shall be ___ year(s) (“Original Agreement”). The term of the Original Agreement shall be calculated from the Effective Date of this Agreement. After expiration of the Minimum Term, the Customer agrees that their participation in the Renewable*Connect program will be automatically renewed for another term of ____ year(s) (“Renewal Term”). This renewal process shall continue at the expiration of each subsequent Renewal Term until the life of the Renewable*Connect program has been reached. Ninety days prior to the end of the Original Agreement and each Renewal Term, the Customer will be notified (“Notification Date “) pursuant to the RC Tariff that they will be re- enrolled in the Renewable*Connect program. The Customer will then have 90 days from the Notification Date to terminate their participation in the Renewable*Connect program with no early Exhibit 6 Page 1 of 5 Page 244 of 248 SAMPLEtermination fee. Customers will receive reminder notifications 60 and 30 days prior to re-enrollment. Customer’s failure to terminate participation in the Renewable*Connect program within the 90 day between the Notification Date and re-enrollment date will be deemed to be Customer’s voluntary commitment to a Renewal Term. 6. Early Termination Fee. The Customer agrees to terminate participation in the Renewable*Connect program pursuant to the provisions of Paragraph 5 above. Should the Customer fail to terminate participation in the Renewable*Connect program pursuant to the provisions of Paragraph 5 above, the Customer will be charged an early termination fee of $50 for Residential customers, $100 for C class customers, and $25 per subscribed kW for all other customer classes. 7. Subscription Transferability. If During the Original Agreement or a Renewal Term the Customer transfers its subscription associated with a current subscribing premise to a different subscribing premise within the Company’s certificated service territory, the Customer’s participation in the Renewable*Connect program will automatically be transferred to the Customer’s new subscribing premise without penalty, and the original subscription term will continue to apply to the transferred subscription. One year after the Customer’s subscribing premise transfer, the Company will reexamine the Customer’s use at the new subscribing premise. If the Customer’s first twelve (12) months of energy usage is lower at the new subscribing premise than the energy usage at the previous subscribing premise, the Company will readjust the Customer’s capacity subscription so that the solar energy produced will be no greater than the Customer’s last twelve (12) months energy usage at the new subscribing premise, and the customer will pay a pro-rata portion of the penalty that applies for early termination, calculated using the percentage decrease in the subscribed amount multiplied by the full penalty amount for the customer. The Company will provide notice of the change and penalty to the Customer. If the Customer’s first twelve (12) months of energy usage is higher at the new subscribing premise than the energy usage at the previous subscribing premise, the capacity subscription that was established for the Original Agreement will remain in effect. 8. Customer Moves Outside of Service Area. If the Customer moves outside of the Company’s certificated service territory and the Customer has not met its obligations under this agreement, the Customer’s participation in Renewable*Connect program will be cancelled and the Customer will be charged the early termination fee described above in Paragraph 6. 9. Customer Changes to Capacity Subscription. Based on the availability of solar energy in the program, the Company may make available to participating customers the opportunity to increase their subscription at any point during the Original Agreement or a Renewal Term without penalty. The RC Charge pricing for the resulting kW addition will be at the applicable pricing level as stated in Exhibit A in this agreement. 10. Cancellation by Company. The Company shall have the unilateral right to cancel this Agreement at any time if the solar photovoltaic facility(ies) supporting Renewable*Connect or the Dedicated Photovoltaic Solar (PV Solar) System as defined in the Company’s RC Tariff do(es) not achieve commercial operation or do(es) not perform pursuant to the Company’s contract with the RC Producer. 11. Force Majeure. a. “Force Majeure” means an event or circumstance that prevents a Party from performing its obligations under this Agreement, which event or circumstance: i. is not within the control of or the result of the fault or negligence of the Party claiming its occurrence, and ii. which by exercise of due diligence and foresight could not reasonably have been avoided, including acts of God; sudden action of the elements such as floods, earthquakes, hurricanes, or tornados, lightning, fire, ice storms, smoke or other particulates from volcanoes; sabotage; vandalism beyond that which could reasonably be prevented; terrorism; war; riots; explosion; blockades; insurrection; except as set forth in subsection (e) below, labor strikes, slowdowns or labor disruptions (in which case the affected Party shall have no obligation to settle the strike or labor dispute on terms it deems unreasonable); actions or inactions by any Governmental Authority taken after the date hereof (including the adoption or change in any rule, Applicable Law or regulation or Exhibit 6 Page 2 of 5 Page 245 of 248 SAMPLEenvironmental constraints lawfully imposed by such Governmental Authority) but only if such requirements, actions, or failures to act prevent or delay performance; and inability, despite due diligence, to obtain any licenses, permits, or approvals required by any Governmental Authority, provided, however, that Force Majeure shall not include: (a) inability, or excess cost, to procure any equipment necessary to perform the obligations of this Agreement; (b) acts or omissions of a third party, unless such acts or omissions are themselves excused by reason of Force Majeure; (c) mechanical or equipment breakdown or inability to operate, attributable to circumstances occurring within design criteria and normal operating tolerances of similar equipment unless such breakdown or condition was itself caused by an event of Force Majeure; (d) changes in market conditions; or (e) any labor strikes, slowdowns, work stoppages, or other labor disruptions limited to Company, Company’s Affiliates, or any third party employed by Company. b. Company may also declare a Force Majeure event if: i. An RC Producer as defined in the Company’s RC Tariff materially breaches the purchase power agreement governing the solar resource; or, ii. The Company declares an event of default against the an RC Provider as defined in the Company’s RC Tariff, and the RC Producer fails to cure the event of default in the cure period applicable under the purchase power agreement. c. Applicability of Force Majeure. 1. Neither Party shall be responsible or liable for any delay or failure in its performance under this Agreement, nor shall any delay, failure, or other occurrence or event become an event of default, to the extent such delay, failure, occurrence or event is substantially caused by conditions or events of Force Majeure, provided that: i. the non-performing Party gives the other Party prompt written notice describing the particulars of the occurrence of the Force Majeure; ii. the suspension of performance is of no greater scope and of no longer duration than is required by the Force Majeure; iii. the non-performing Party proceeds with reasonable diligence to remedy its inability to perform and provides weekly progress reports to the other Party describing actions taken to end the Force Majeure; and iv. when the non-performing Party is able to resume performance of its obligations under this Agreement, that Party shall give the other Party written notice to that effect. 2. Except as otherwise expressly provided for in this Agreement, the existence of a condition or event of Force Majeure shall not relieve the Parties of their obligations under this Agreement (including, but not limited to, payment obligations) to the extent that performance of such obligations is not precluded by the condition or event of Force Majeure. a) Limitations on Effect of Force Majeure. In no event will any delay or failure of performance caused by any conditions or events of Force Majeure extend this Agreement beyond its applicable Minimum or Renewal Term. In the event that any delay or failure of performance caused by conditions or events of Force Majeure continues for an uninterrupted period of three hundred sixty-five (365) days from its occurrence or inception, the Party not claiming Force Majeure may, at any time following the end of such three hundred sixty-five (365) day period, terminate this Agreement upon written notice to the affected Party, without further obligation by either Party except as to costs and balances incurred prior to the effective date of such termination. The Party not claiming Force Majeure may, but shall not be obligated to, extend such three hundred sixty-five (365) day period, for such additional time as it, at its sole discretion, deems appropriate, if the affected Party is exercising due diligence in its efforts to cure the conditions or events of Force Majeure. 12. If any of the representations of the Customer are false or incorrect, such false or incorrect representation shall constitute a material breach of this Agreement. Exhibit 6 Page 3 of 5 Page 246 of 248 SAMPLE13. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Colorado. 14. If any disputes arise concerning this Agreement, including but not limited to enforcement of any term or condition of the Agreement, the prevailing Party in any action brought for the purpose of enforcing such provisions shall be entitled to recover its reasonable attorney fees, expenses and costs of such action from the non-prevailing Party. Each Party hereby irrevocably and unconditionally waives any right to a trial by jury for the resolution of any dispute arising under this Agreement. Failure of either Party to enforce any term or condition of this Agreement shall not constitute a waiver of that term or condition or of any other term or condition of this Agreement. 15. This Agreement may be executed in two or more counterparts, each of which is deemed original but all constitute one and the same instrument. The Parties agree that a facsimile copy of a signature will be deemed original and binding. 16. Except as otherwise specifically provided herein, this Agreement is not intended to, and shall not, create rights, remedies, or any benefits of any character whatsoever, in favor of any person, corporation or other entity other than the Parties hereto, and the obligations herein assumed are for the use and benefit of the Parties, their successors in interest, and permitted assigns. 17. This Agreement and the rights and obligations of the parties hereunder shall be subject to all valid applicable state, local and federal laws, rules, regulations, ordinances, orders and decisions issued or promulgated for or by any court or regulatory agency having or asserting jurisdiction over this Agreement, the services to be performed hereunder or either of the Parties hereto. . As a qualified Xcel Energy customer, I have read, understand, and agree to the terms of the Agreement set forth above: For the Customer: ____________________________________________________ Company Name ____________________________________________________ __________________ Signature Date ____________________________________________________ Printed Name and Title For Public Service Company of Colorado, a Colorado Corporation, d/b/a Xcel Energy: ____________________________________________________ __________________ Signature Date ____________________________________________________ Printed Name and Title Exhibit 6 Page 4 of 5 Page 247 of 248 SAMPLEExhibit A Renewable*ConnectSM Annual Pricing Although the customer is obliged to remain in the program only for the stated term, the amount the customer will be charged is a known amount for the full life of the program. If the Customer chooses to remain in the program over the total program life, the costs listed in the table will be charged to the customer during the stated calendar year. The stated costs are on a kWh basis and will be added to the Customer’s bill every month the Customer is enrolled in the program. Participating Year Renewable*Connect Charge ($/kWh) Year 1 $0.04077 Year 2 $0.04072 Year 3 $0.04077 Year 4 $0.04082 Year 5 $0.04087 Year 6 $0.03859 Year 7 $0.03863 Year 8 $0.03868 Year 9 $0.03872 Year 10 $0.03876 Year 11 $0.03881 Year 12 $0.03886 Year 13 $0.03890 Year 14 $0.03895 Year 15 $0.03900 Year 16 $0.03905 Year 17 $0.03910 Year 18 $0.03916 Year 19 $0.03921 Year 20 $0.03926 . Exhibit 6 Page 5 of 5 Page 248 of 248