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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/02/2021 - FIRST READING OF ORDINANCE NO. 035, 2021, REAPPROP Agenda Item 6 Item # 6 Page 1 AGENDA ITEM SUMMARY March 2, 2021 City Council STAFF Lawrence Pollack, Budget Director John Duval, Legal SUBJECT First Reading of Ordinance No. 035, 2021, Reappropriating Funds Previously Appropriated in 2020 But Not Expended and Not Encumbered in 2020. EXECUTIVE SUMMARY The purpose of this item is to reappropriate monies in 2021 that were previously authorized by Council for expenditures in 2020 for various purposes. The authorized expenditures were not spent or could not be encumbered in 2020 because: • There was not sufficient time to complete bidding in 2020 and therefore, there was no known vendor or binding contract as required to expend or encumber the monies ; or • The project for which the dollars were originally appropriated by Council could not be completed during 2020 and reappropriation of those dollars is necessary for completion of the project in 2021. Additionally, there may have been sufficient unspent dollars previously appropriated in 2020 to carry on programs, services, and facility improvements in 2021 for those specific purposes. In the above circumstances, the unexpended and/or unencumbered monies lapsed into individual fund balances at the end of 2020 and reflect no change in Council policies. Monies reappropriated for each City fund by this Ordinance are as follows: General Fund $912,543 Keep Fort Collins Great Fund 226,690 Cultural Services Fund 55,000 Wastewater Fund 35,000 Total $1,229,233 STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The Executive Team has reviewed the Reappropriation requests to ensure alignmen t with organization priorities and the Budget staff reviewed the requests to verify that all met qualification requirements . The 2021 Reappropriation requests are as follows, by fund: Agenda Item 6 Item # 6 Page 2 GENERAL FUND City Attorney’s Office 1) Litigation Expenses - $6,626 Purpose for funds: Funds in the amount of $20,000 were transferred to the City Attorney's Office budget in September 2020 from the City Manager's Contingency Fund to cover unanticipated legal expenses for a litigation matter Council directed the City Attorney to file in August 2020. Of the original funds transferred, only $13,373 were expended in calendar year 2020. Reason funds not expensed in 2020: The original cost of litigation was estimated based on the nature of this case. This litigation matter is ongoing and the request for $6,626 is for the remainder of the funds not fully expensed in 2020. It is anticipated that the remainder of funds should be sufficient to cover the fees and costs to bring this matter to a close. Economic Health 2) PRPA Funds for Main Street Lending Program - $36,226 Purpose for funds: These funds are received from Platte River Power Authority (PRPA) and intended to support economic development activities within the City of Fort Collins. The Economic Health Office has earmarked these funds for use to initiate a Main Street Lending Program targeting underserved business owners in our community. Each year, PRPA distributes the funds based on direction by the City. The City , with approval from the Mayor, has earmarked these funds for a lending program until 2022. Reason funds not expensed in 2020: In 2019, the City selected Colorado Lending Source (CLS) as our partner to develop a Main Street Lending program. Unfortunately, the COVID -19 pandemic resulted in the termination of that program. The funds were returned by CLS and used to support a Larimer County Loan Fund targeting business recovery. Each year, PRPA provides funds to the City and the funds from 2020 were originally intended to be added to the 2019 CLS Main Street Lending Program. Near the end of 2020, conversations with CLS regarding re-opening the fund began. These conversations have not resulted in a new fund at this time. However, it is the intent of the Economic Health Office to initiate a new Main Street Lendi ng Program either with CLS or another partner in 2021 or 2022 depending on the availability of funds and interest from the market. These funds will be part of the re-launch. City Manager’s Office (formerly Human Resources) 3) Effective, Innovative, and High Performing Board - $30,000 Purpose for funds: This work would set the foundation for a leadership curriculum beyond the onboarding process and equip Council with the resources, training, and tools to be a highly effective and innovative governing body. Funding for this request provides assistance from a consultant to work with the Chief Human Resources Officer, City Manager, Council and key staff members as well as pay for development sessions already requested by Council members, such as navigating complex conversations where there are diverse opinions in Council listening sessions. Phase 1 of this project would be to work with the Mayor and Council on the model of leadership and required capabilities they would like to aspire to as a governing body. External research on high performing councils as well as insights from other sector boards will be considered to guide the dialogue. Reason funds not expensed in 2020 : As a result of COVID-19, interviews with each Councilmember occurred later than planned in 2020. At the same time, the City faced the decision to reduce funding across the City due to declining revenues resulting in the reduction of funding this offer for 2020 and deferred this work to 2021. Agenda Item 6 Item # 6 Page 3 Natural Areas 4) Northern Integrated Supply Project (NISP)- $24,683 Purpose for funds: The purpose of these funds is to provide consulting services for the City's efforts in engaging in the permitting and mitigation planning for the Northern Integrated Supply Project (NISP). Consulting services may be needed for any number of technical and discipline specific subjects to assist the City in efforts to protect City assets within the context of NISP being permitted and constructed. Technical support may be solicited for water quality, stream restorat ion, water resource engineering, and for development of effective and collaborative adaptive management programs. Reason funds not expensed in 2020: These funds were not fully expended in 2020 because the progress of the NISP permitting was greatly slowed last year. Consulting support is needed for NISP when the applicant is developing operational details of its mitigation program, which all but halted mid-year in 2020. When these talks stopped, the need to have technical support also slowed significant ly. Given the broad array of impacts to the City and anticipated related activities in 2021, these funds will be used for consulting support in 2021. Operation Services 5) Required Building Modifications - $91,344 Purpose for funds: This offer funded City facility modifications that are necessary to increase the City’s compliance with legal requirements. In 2016, the City went through a comprehensive process to identify those facilities that require accessibility modifications or improvements. Through this process, the City determined that various modifications at 46 existing facilities are necessary. These modifications were prioritized in the plan and the first two years have been completed. The remaining cost of these modifications is $5.7 million . This offer was funded at $600,000 per year to address the required building modifications. Reason funds not expensed in 2020: The City’s Operation Services offered $300,000 as a reduction in 2020 as an option to help offset the sales tax revenue shortfall. Operation Services was then notified in late September that the reduction was not accepted, and the funds were still available for use. It proceeded with getting design consultants on board to complete documents to allow for contractors to bid the w ork. Due to the short timeframe, it did not get a design completed for the required building modifications at the Downtown Transit Center. Operation Services is requesting the remaining funds be reappropriated to allow it to bid this work and move this project forward without using the 2021 funds which are already earmarked for other compliance related building modification projects. 6) EPIC Dehumidification System - $100,000 Purpose for funds: Each year, the humidity in the EPIC ice rink(s) causes conde nsation that is detrimental to the facility and becomes a skating safety hazard. In mid-2020, a dehumidification study/design was done to address this on-going issue. Reason funds not expensed in 2020 : The City’s Operation Services offered $675,000 from its maintenance program as reductions in 2020 as an option to help offset the sales tax revenue shortfall. Operation Services was notified in late September what reductions were accepted and what funds were still available for use. This delayed design work until late in the year. Operation Services was able to order the HVAC units but did not have time to bid the installation. 7) City Hall Data Center Redundant Cooling - $80,000 Purpose for funds: The redundant cooling at the City's main data center is well past its useful life and major components are starting to fail. It is imperative that this cooling system is reliable. It is currently scheduled for replacement. Agenda Item 6 Item # 6 Page 4 Reason funds not expensed in 2020 : The City’s Operation Services offered $675,000 from its maintenance program as reductions in 2020 as an option to help offset the sales tax revenue shortfall. Operation Services was notified in late September what reductions were accepted and what funds were still available for use. Operation Services was able to procure the construction costs but did not have time to competitively bid out the equipment package. Operation Services was able to procure the construction costs but did not have time to competitively bid out the equipment package. Park Planning & Development 8) Park Improvement Project Support - $33,160 Purpose for funds: This offer provided financial support for Park Planning staff to work on feasibility, design and community outreach for new features in existing parks. Requests come from the Parks Department, general public and private donors for these new features. Currently, Park Planning staff is funded through the community parkland capital expansion fee (Parks CEF). The Parks CEF is used to design and build new parks and cannot legally be used for improvements to existing parks. Requests for new features in existing parks often need to be analyzed, vetted and initial designs prepared before fundraising begins so donors can see what their contribution will provide. Park Planning staff needs a funding source to charge staff time and other ancillary costs associated with these requests since they cannot be paid from the Parks CEF. Reason funds not expensed in 2020: Park Planning staff is currently working on several projects including the Sugar Beet Art Donation, Oak Street Plaza renovation, Eastside Park Improvement donation project, Spring Canyon water quality pond improvements, Rossborough Cyclo-Cross improvements and Spring Canyon Community Park Veterans Plaza donation project. These are all improvements to existing parks. This funding from the general fund is needed to complete the work on these projects, as well as similar future projects that may develop during 2021. These funds were intended to be included in the City’s 2021 budget and annual appropriation but a budget offer for them was inadvertently not submitted. Social Sustainability 9) Childcare Workforce Development Funding - $20,000 Purpose for funds: This reappropriation supports the City's efforts to r espond to systems-level work emerging in the community around the issue of childcare affordability and accessibility. The lack of affordable childcare is one of the main barriers impacting workforce recruitment and retention in Fort Collins. The City's rol e is to assist with reducing barriers, increasing capacity, and responding to childcare needs. Specific funding opportunities for these funds will focus on childcare teacher workforce development. Two projects that are being spearheaded by the Early Childhood Council of Larimer County (ECCLC) will be considered for support with these funds, including: • Development of a new substitute teacher training and placement program that would benefit childcare providers community-wide. o The City’s support of this ‘sub pool’ model will catalyze the launch of a new program where childcare providers will be able to access certified substitutes as real-time needs emerge. o The program will be an attractive ‘gig’ work platform for teachers and retirees seeking flexi ble employment options. o Start-up costs supported with these funds may include program and policy development, background checks and fingerprinting, infant/child CPR and other pre-classroom training, and staff management web tool development. o ECCLC anticipates recruiting 50-100 substitute childcare teachers in the first year. • Scholarships for early childhood education (ECE) teachers to advance their training, certifications and career pathways. Agenda Item 6 Item # 6 Page 5 o Supporting these tuition scholarships increases the capacity, quality, and sustainability of an early childhood care provision in the community. o The cost for online ECE courses is 46% more expensive than in-person courses, and COVID is now necessitating online participation. Reason funds not expensed in 2020: These opportunity funds were partially intended to support the creation and launch of the ‘Larimer Thrive By Five’ public information campaign led by the Early Childhood Council of Larimer County (https://larimerthrivebyfive.org/). Due to budget press ures caused by the COVID-19 pandemic, the City decided to withhold the funding support for the project. The Larimer County Commissioners and other funders did support the project and it successfully launched in early 2021. 10) Principles of Community - $25,000 Purpose for funds: The purpose of this Offer is to support engagement with and dissemination of Principles of Community. A key deliverable identified by Council to advance the Equity and Inclusion priority, was to develop Principles of Community for the organization to foster and enhance a sense of belonging for coworkers and the community we serve. Adopting Principles of Community can serve as a model across Fort Collins (as CSU’s principles do), and these principles will specifically provide an internal focus for the City organization and how it serves the community. • While external input is being gathered in their development, the principles will not be imposed on any in the community. Upholding the Principles of Community will be a public commitment to the City’s strategic goals for equity and inclusion. • The funds will be used for printing and promotion costs as well as for training and engagement efforts as the Principles of Community are shared throughout the organization, as part of tale nt development and equity and inclusion work. Reason funds not expensed in 2020: With other priorities at the top of the list for 2020, the development of Principles of Community was delayed and is now moving forward toward completion by early in Q2 2021 . A working group of over 20 staff from across the organization is meeting bi -weekly to develop the Principles, with additional internal and external input. The funds associated with this offer will be utilized throughout the year to help embed them in the organizational culture and broadcast them to the community. 11) Seasonal Overflow Shelter Funds - $48,000 Purpose for funds: Seasonal Overflow Shelter (SOS) funds are used for additional overnight shelter space during the cold winter months (November through April) with funding going to the local shelter providers in Fort Collins to cover the costs of additional staff, security, food, and other needs. Reason funds not expensed in 2020: Funds were held back in 2020 knowing that increased needs and funding assistance would occur in 2021. The funds budgeted for SOS will be used for overnight shelter needs in 2021 which is expected to be higher than past years due to higher needs. Overnight shelter continues to be a high priority need with many people and families needing to utilize overnight shelter until they successfully find housing. 12) Affordable Housing Programs (AHF) - $417,504 (plus an additional $200,000 in Keep Fort Collins Great Fund (KFCG) totals $617,504 for request) Purpose for funds: The Affordable Housing Funds are allocated annually through the Competitive Process to support critical affordable housing needs in the City of Fort Collins. Because of the cyclical nature of housing development, funding may be either unallocated or unex pended during a program year. Pursuant to Ordinance No. 28, 1994, any amounts appropriated by Council and not expended during the fiscal year should lapse into the Affordable Housing Reserve. Reason funds not expensed in 2020 : $300,000 of the fiscal year 2020 budget was frozen and unallocated in case it was needed to meet the City’s budget reduction needs due to COVID -19. $100,777 remained Agenda Item 6 Item # 6 Page 6 unallocated in the Spring Competitive Process, $100,000 of which was subsequently frozen. $158,751 represents funding commitments to affordable housing projects that are not yet ready to contract, $55,338 represents the balance of funding that was previously committed to the Homebuyer Assistance Program, and $2,638 represents unexpended program funds. The balance of funds will be added to the Spring 2021 Competitive Process to be allocated to an eligible affordable housing project. KEEP FORT COLLINS GREAT FUND Natural Areas 13) West Nile Virus Management Program - $26,690 Purpose for funds: The purpose of this offer is to reduce the public health risks of West Nile virus (WNV). This offer funds proactive measures to reduce the frequency and geographic extent of adulticide fogging applications recommended by the Larimer County Department of Health and Environment. Elements of the program include a comprehensive municipal monitoring network; mosquito larvae control; site mapping; comprehensive public engagement and communication program; and quality control and virus testing services provided by Colorado State University. Reason funds not expensed in 2020: Expenditures for WNV public engagement and communications are timed to coincide with elevating mosquito production and human health risk. As COVID -19 impacted the City's 2020 budget, all outreach expenditures were paused to ensure direct mosquito management actions were funded. As the year progressed it became apparent funds would be available, yet the effective time for outreach had passed. Reappropriating these funds is critical to the 2021 WNV Program as the 20 21 budget reduction included in the 2021 adopted budget eliminated all outreach and reduced trapping and testing by approximately 3 weeks. Truncating the early season trapping and testing will deprive the program of early data comparisons helpful in assess ing the relative risk of WNV compared to previous years. Additionally, key outreach needs persist, such as distribution of notification door hangers, and translating of WNV web pages; currently, only the main page is translated. Social Sustainability 14) Neighborhood Affordable Housing Programs (AHF) - $200,000 (plus an additional $417,504 in General Fund totals $617,504 for request) Please see description in #12 under General Fund. CULTURAL SERVICES FUND Cultural Services 15) Exterior Lighting at Lincoln Center - $55,000 Purpose for funds: The original offer request was one-time funding to address the exterior and street lighting at and around the Lincoln Center (LC). This offer would allow LC to support the City’s commitment in upholding a culture of safety. In addition to City employees, this enhancement would increase the safety of guests as they enter and exit the facility. Staff routinely receive complaints from patrons about the lighting between LC and parking areas. New lights would offer optimal efficiency while adhering to the guidelines surrounding the Climate Action Plan and complying with the Night Sky Initiative. Reason funds not expensed in 2020: A work order was in place to complete this exterior lighting project. During a walkthrough in December, it was determined that the festoon lighting system fastened to two existing light poles needs to have additional structural support (in the form of guy wires) to ensure they could handle the additional structural load. The remaining funds are necessary to complete the design and installation of the support solution. Agenda Item 6 Item # 6 Page 7 WASTEWATER FUND Utility Environmental Services Division 16) Microplastics Study - $35,000 Purpose for funds: This offer supports the efforts to sustain and improve the healt h of the Cache la Poudre River and its watershed by building knowledge related to the impact that microplastics have on our watershed and the environment and lays the foundation for the development of effective strategies to reduce microplastics in the wastestream and/or mitigate their impacts. This offer was a response to the Council Priority of reducing plastic pollution and was aimed at tracking advances in treatment technologies for reducing or eliminating microplastics from water supplies. Funds will b e used to hire a consultant to review and synthesize the state of the science on this topic. Reason funds not expensed in 2020: This work did not occur in 2020 due to a lack of staff capacity primarily due to the impacts of the Cameron Peak Wildfire response and related budget uncertainties. CITY FINANCIAL IMPACTS This Ordinance increases 2021 appropriations by $1,229,233. A total of $912,543 is requested for reappropriation in the General Fund, $226,690 from the Keep Fort Collins Great Fund, and $90,000 is requested from various other City Funds. Reappropriation requests represent amounts budgeted in 2020 that could not be encumbered at year-end. The appropriations are from prior year reserves. -1- ORDINANCE NO. 035, 2021 OF THE COUNCIL OF THE CITY OF FORT COLLINS REAPPROPRIATING FUNDS PREVIOUSLY APPROPRIATED IN 2020 BUT NOT EXPENDED AND NOT ENCUMBERED IN 2020 WHEREAS, City Council authorized expenditures in 2020 for various purposes in the General Fund, the Keep Fort Collins Great Fund, the Cultural Services & Facilities Fund, and the Wastewater Fund, portions of which were not spent or encumbered in 2020; and WHEREAS, Article V, Section 11 of the City Charter requires that all appropriations unexpended or unencumbered at the end of the fiscal year lapse to the applicable general or special fund, except that appropriations for capital projects and federal or state grants do not lapse until the completion of the capital project or until the expirati on of the federal or state grant; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated; and WHEREAS, City staff have determined that the amounts to be appropriated as described herein are available and currently unappropriated; and WHEREAS, it is in the best interests of the City and its residents to re-appropriate funds for the expenditures below, in furtherance of these expenditures and their respective public purposes authorized in 2020 for which such appropriated funds were not expended and not encumbered during 2020. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That there is hereby appropriated for expenditure from prior year reserves in the General Fund the sum of NINE HUNDRED TWELVE THOUSAND FIVE HUNDRED FORTY-THREE DOLLARS ($912,543) for the following purposes: Litigation Expenses $6,626 PRPA Funds for Main Street Lending Program $36,226 Effective, Innovative, and High Performing Board $30,000 Northern Integrated Supply Project (NISP) $24,683 Required Building Modifications $91,344 EPIC Dehumidification System $100,000 City Hall Data Center Redundant Cooling $80,000 Park Improvement Project Support $33,160 -2- Childcare Workforce Development Funding $20,000 Principles of Community $25,000 Seasonal Overflow Shelter Funds $48,000 Affordable Housing Programs (AHF) $417,504 Total General Fund $912,543 Section 3. That there is hereby appropriated for expenditure from prior year reserves in the Keep Fort Collins Great Fund the sum of TWO HUNDRED TWENTY -SIX THOUSAND SIX HUNDRED NINETY DOLLARS ($226,690) for the following purposes: West Nile Virus Management Program $26,690 Affordable Housing Programs (AHF) 200,000 Total Keep Fort Collins Great Fund $226,690 Section 4. That there is hereby appropriated for expenditure from prior year reserves in the Cultural Services & Facilities Fund the sum of FIFTY-FIVE THOUSAND DOLLARS ($55,000) to be used for the following purpose: Exterior Lighting at Lincoln Center $55,000 Total Cultural Services & Facilities Fund $55,000 Section 5. That there is hereby appropriated for expenditure from prior year reserves in the Wastewater Fund the sum of THIRTY-FIVE THOUSAND DOLLARS ($35,000) for the following purpose: Microplastics Study $35,000 Total Wastewater Fund $35,000 Introduced, considered favorably on first reading, and ordered published this 2nd day of March, A.D. 2021, and to be presented for final passage on the 16th day of March, A.D. 2021. __________________________________ Mayor ATTEST: _______________________________ City Clerk -3- Passed and adopted on final reading on the 16th day of March, A.D. 2021. __________________________________ Mayor ATTEST: _______________________________ City Clerk