Title
A Resolution by City Council Rescinding Resolution No. 99-23 and Adopting a New Resolution in Favor of the City of Fountain’s Request to Join the Pikes Peak Rural Transportation Authority (PPRTA)
Presenter:
Travis Easton, P.E., Deputy Chief of Staff
Randy Helms, Councilor, PPRTA Board Chair
Body
Summary:
The City of Fountain (Fountain) has requested to be added as a new member to the Pikes Peak Rural Transportation Authority (PPRTA). The PPRTA Board has referred the matter of adding Fountain as a party to the Establishing Intergovernmental Agreement (Establishing IGA) to the governing bodies of El Paso County, Colorado, the City of Colorado Springs, the City of Manitou Springs, the Town of Green Mountain Falls, the Town of Ramah, and the Town of Calhan (Member Governments) for consideration of the matter of adding Fountain as a party to the Establishing IGA.
On July 25, 2023, City Council approved Resolution No 99-23 in favor of Fountain joining PPRTA. PPRTA’s attorney has requested clarifying language regarding the City’s condition of adequate representation.
Background:
On July 25, 2023, City Council approved Resolution No 99-23 in favor of Fountain joining PPRTA. PPRTA’s attorney has requested the following clarifying language be added to the end of Section 2 regarding the City’s condition of adequate representation in the resolution: “as is currently set forth in the Establishing IGA.”
Section 2 of the resolution is proposed as follows:
“Section 2. The City Council consents to the City of Fountain becoming a member of the Pikes Peak Rural Transportation Authority pursuant to the terms of the Establishing IGA, and upon condition of adequate representation of the City of Colorado Springs on the Pikes Peak Rural Transportation Authority Board of Directors as is currently set forth in the Establishing IGA.”
Previous background from July 25, 2023, meeting:
The City of Fountain has requested to be added as a new member to the Pikes Peak Rural Transportation Authority, a party to the Fifth Amended and Restated Intergovernmental Agreement among El Paso County, Colorado, the City of Colorado Springs, the City of Manitou Springs, the Town of Green Mountain Falls, Town of Ramah, and the Town of Calhan for Creation of the Pikes Peak Rural Transportation Authority (Establishing IGA), and to have the territory within the City of Fountain limits included into the boundaries of the PPRTA. Enclosed herewith is a resolution of the Board of Directors of the PPRTA (Board) approved at the June 14, 2023, meeting in response to this request.
Of specific note is paragraph 3 of the resolution which recognizes that Section 12.3 of the Establishing IGA states that Fountain may only become a party to the Establishing IGA if the current parties to the Establishing IGA unanimously consent to such addition of a new party as determined by a majority vote of the governing bodies of each existing party. As such, the PPRTA Board has, by the adoption of the resolution, referred the matter of adding Fountain as a party to the Establishing IGA to the governing bodies of El Paso County, Colorado, the City of Colorado Springs, the City of Manitou Springs, the Town of Green Mountain Falls, the Town of Ramah, and the Town of Calhan (Member Governments) for consideration of the matter of adding Fountain as a party to the Establishing IGA and requests that each governing body take action on such matter on or before August 2, 2023.
As part of the discussion of this matter, it was explained that the addition of Fountain would not require an amendment to the Establishing IGA, and therefore the PPRTA is not referring a revised Establishing IGA to the Member Governments at this time. However, the Board requests that Member Governments provide any proposed conditions to the approval required by Section 12.3 of the Establishing IGA to add Fountain as soon as reasonably possible. The Board further encouraged an open dialogue between the representatives of the Member Governments and the PPRTA, including, but not limited to, their respective legal counsel, in order to reach mutually acceptable revisions to the Establishing IGA, if any should be required.
Potential impacts of adding Fountain to PPRTA are summarized as follows:
1. Financial impact
2. Representation and voting
3. Transit operations
Financial Impact: The addition of Fountain is anticipated to increase annual PPRTA revenue by $3.75M in 2022 dollars; however, maintenance and capital funding allocated to the City of Colorado Springs is anticipated to be reduced. Maintenance funding and planning for capital funding allocation is based on the 2020 census data. Fountain’s population would capture 4.15% of maintenance and planned capital allocation. The City of Colorado Springs’ population-based share would decrease from 69.65% to 66.76%.
To illustrate the impact on a PPRTA annual budget of $150M (initial budget amount for 2022 and 2023), the City of Colorado Springs’ maintenance funding would decrease by approximately $700,000, starting in 2024. If Fountain were to add capital projects starting in 2025 as anticipated, the City of Colorado Springs would expect a decrease by approximately $1.1M in capital funding starting in 2025. Currently, funding impacts for transit operations are not anticipated. The net annual decrease is anticipated to be $1.8M.
It is important to note that Fountain annexed and developed property that was within unincorporated El Paso County in 2004 when PPRTA was established. This annexed area, referred to as Venetucci and including a Walmart and Sam’s Club, is reported to result in approximately $1M in revenue annually to PPRTA and without providing any benefit within the Fountain city limits. The City of Colorado Springs and El Paso County were the primary recipients of this $1M annually generated within the Fountain city limits.
Representation and Voting: The Establishing IGA would allow Fountain to appoint a Director to the PPRTA Board and the weighted voting calculation would apply. A total of nine votes remain for the Board and the formulation preserves one-third of the votes for the City of Colorado Springs (3 votes), one-third of the votes for El Paso County (3 votes) and divides the remaining third (3 votes) by the remaining member governments. The addition of Fountain would divide 3 votes with the City of Manitou Springs, the Town of Green Mountain Falls, the Town of Ramah, and the Town of Calhan.
For example, when the City of Colorado Springs and El Paso County are removed from the number of member governments, 4 current entities remain. The remaining 3 votes are divided by the 4 current entities, and they each receive 0.75 votes (3/4=0.75). If Fountain is added, then the 3 votes would be divided by 5 entities, and they each receive 0.6 votes (3/5=0.6). The proposed formulation would remain in place and be recalculated as other member governments may be added in the future.
Transit: Currently, the addition of Fountain would not impact transit funding for the City of Colorado Springs (dba Mountain Metro Transit (MMT)). Fountain has stated they intend to continue to operate their separate transit service. If Fountain were to request transit funding from PPRTA, an amendment to the Establishing IGA, and potentially a ballot initiative, would be required before they could receive transit funding. Section 11 of Establishing IGA permits amendments to the Establishing IGA upon the unanimous consent of all member governments and consent shall be manifested by a two-thirds affirmative vote of the membership of each governing body.
Previous Council Action:
Passing Resolution No 99-23 regarding Fountain joining PPRTA.
Financial Implications:
As presented above.
City Council Appointed Board/Commission/Committee Recommendation:
N/A
Stakeholder Process:
N/A
Alternatives:
Disapprove the resolution would prohibit Fountain from joining the PPRTA.
Approve the resolution and include conditions on Fountain joining the PPRTA.
ecommended Action
Proposed Motion:
Recommend Approval of a Resolution by City Council Rescinding Resolution No. 99-23 and Adopting a New Resolution In Favor of the City of Fountain’s Request to Join the Pikes Peak Rural Transportation Authority (PPRTA) as presented.
Summary of Ordinance Language
N/A