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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/05/2021 - SECOND READING OF ORDINANCE NO. 115, 2021, APPROPR Agenda Item 3 Item # 3 Page 1 AGENDA ITEM SUMMARY October 5, 2021 City Council STAFF Zoe Shark, Interim Natural Areas Director Ingrid Decker, Legal SUBJECT Second Reading of Ordinance No. 115, 2021, Appropriating Prior Year Reserves and Making Supplemental Appropriations in the Natural Areas Fund for Bobcat Ridge Natural Area Dump Clean-up Not Included in the 2021 Adopted City Budget. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on September 21, 2021, appropriates $1,388,000 in 2021 unanticipated revenues and reserves in the Natural Areas Fund to clean-up the dump at Bobcat Ridge Natural Area to protect the natural area and as required by Colorado Department of Public Health and Environment. Reserves and unanticipated revenues need to be appropriated into the budget before they can be used. This Ordinance appropriates $1,000,000 in unanticipated 2021 dedicated sales tax revenues and $388,000 in reserves in the Natural Areas Fund for use in 2021 for clean-up of the dump at Bobcat Ridge Natural Area. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, (w/o attachments), September 21, 2021 (PDF) 2. Ordinance No. 115, 2021 (PDF) Agenda Item 10 Item # 10 Page 1 AGENDA ITEM SUMMARY September 21, 2021 City Council STAFF Zoe Shark, Interim Natural Areas Director Ingrid Decker, Legal SUBJECT First Reading of Ordinance No. 115, 2021, Appropriating Prior Year Reserves and Making Supplemental Appropriations in the Natural Areas Fund for Bobcat Ridge Natural Area Dump Clean-up Not Included in the 2021 Adopted City Budget. EXECUTIVE SUMMARY The purpose of this item is to appropriate $1,388,000 in 2021 unanticipated revenues and reserves in the Natural Areas Fund to clean-up the dump at Bobcat Ridge Natural Area to protect the natural area and as required by Colorado Department of Public Health and Environment. Reserves and unanticipated revenues need to be appropriated into the budget before they can be used. This Ordinance appropriates $1,000,000 in unanticipated 2021 dedicated sales tax revenues and $388,000 in reserves in the Natural Areas Fund for use in 2021 for clean- up of the dump at Bobcat Ridge Natural Area. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The Cameron Peak Wildfire burned through Bobcat Ridge Natural Area in 2020, including a legacy dumping site that was in use prior to the City’s purchase of the land. In 2003, a Phase I Environmental Site Assessment was conducted ahead of the purchase of the property; an interview with the Ranch Manager at the time noted that there was a location where “…twine, wire and other fencing materials were located…”. The dump was not identified as a recognized environmental condition and the environmental consultant that conducted the site assessment noted that they searched for but could not locate the location of dumping activity. Some observations in recent years had indicated the location of the area of dumping activity and staff had consulted with an environmental consultant about how to manage the materials and the dump site. Then, during the 2020 Cameron Peak Fire, Bobcat Ridge and what has now been identified as the dump site (and likely the materials within) were burned. The City notified the Colorado Department of Public Health and Environment (CDPHE) about the site to facilitate proper clean-up and disposal. A compliance advisory was issued to the City in July 2021 by CDPHE that informed staff that the dump area is now considered a regulated work area (due to known asbestos material that was burned in the Cameron Peak Fire). Although the dump area is in a location not publicly accessible, staff must further secure the area, including fencing and signage and begin clean-up efforts. The Natural Areas Department (NAD) reappropriated $100,000 for Bobcat Ridge fire recovery in 2021. These funds are not sufficient to cover the required consulting work, fencing, signage, building an access road, and other clean-up expenses. A report from WSP Consultants estimated clean-up costs, including a 5% contingency, between $1,109,384 and $1,388,058 and staff identified several cost saving measures. ATTACHMENT 1 Agenda Item 10 Item # 10 Page 2 After this appropriation, Natural Areas will have a total fund balance of over $10 million for future land conservation, capital replacement, major restoration, and major trail projects. The fund balance can be used as necessary to cover revenue shortfalls. The funds for NAD come from the following designated sources of revenue: The City - Open Space Yes! ¼ Cent sales tax; the Larimer County - Help Preserve Open Space ¼ cent sales tax; and miscellaneous anticipated and unanticipated revenues. All these funds are restricted to the purposes of the Natural Areas Department, including unanticipated revenues which consist generally of income from sales tax revenues, easements, leases, or grants. CITY FINANCIAL IMPACTS This Ordinance increases 2021 appropriations in the City’s Natural Areas Fund by $1,388,000. The requested total appropriation represents 2021 unanticipated revenues ($1,000,000) and reserves ($388,000). These funds are restricted to the purposes of the Natural Areas Department. Natural Areas will have a remaining fund balance over $10 million for future projects that may be used as necessary to cover revenue shortfalls over the next few years. BOARD / COMMISSION RECOMMENDATION The Land Conservation and Stewardship Board unanimously recommended approval of the appropriation at its August 11, 2021, meeting. PUBLIC OUTREACH Citizen board review is the typical outreach method for appropriation items. ATTACHMENTS 1. Land Conservation and Stewardship Board Minutes (PDF) -1- ORDINANCE NO. 115, 2021 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES AND MAKING SUPPLEMENTAL APPROPRIATIONS IN THE NATURAL AREAS FUND FOR BOBCAT RIDGE NATURAL AREA DUMP CLEAN-UP NOT INCLUDED IN THE 2021 ADOPTED CITY BUDGET WHEREAS, the City is the owner of the property known as Bobcat Ridge Natural Area (the “Property”); and WHEREAS, a dump site used by prior owners of the Property has been found to contain some potentially hazardous materials such as asbestos, and was impacted when the Cameron Peak Fire burned through the Property in 2020; and WHEREAS, the City must now clean up and further secure the dump site in accordance with requirements of the Colorado Department of Public Health and Environment; and WHEREAS, this Ordinance would appropriate $1,000,000 in 2021 unanticipated revenues and $388,000 in reserve funds to cover consulting work, fencing, signage, building an access road, and other clean-up expenses; and WHEREAS, this appropriation benefits the public health, safety, and welfare of the residents of Fort Collins and serves the public purpose of managing and removing potentially hazardous materials from City property; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council, upon the recommendation of the City Manager, 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, Article V, Section 9 of the City Charter permits the City Council, upon recommendation of the City Manager, to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriations, in combination with all previous appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated revenues and all other funds to be received during the fiscal year; and WHEREAS, the Interim City Manager has recommended the appropriation described herein and determined that this appropriation is available and previously unappropriated from the Natural Areas Fund and will not cause the total amount appropriated in the Natural Areas Fund to exceed the current estimate of actual and anticipated revenues and all other funds to be received in that Fund during this fiscal year. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: -2- 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 from prior year reserves in the Natural Areas Fund the sum of THREE HUNDRED EIGHTY-EIGHT THOUSAND DOLLARS ($388,000) for expenditure in the Natural Areas Fund to be used to clean up the dump site at the Bobcat Ridge Natural Area. Section 3. That there is hereby appropriated from unanticipated 2021 dedicated sales tax revenues in the Natural Areas Fund the sum of ONE MILLION DOLLARS ($1,000,000) for expenditure in the Natural Areas Fund to be used to clean up the dump site at the Bobcat Ridge Natural Area. Introduced, considered favorably on first reading, and ordered published this 21st day of September, A.D. 2021, and to be presented for final passage on the 5th day of October, A.D. 2021. __________________________________ Mayor ATTEST: _______________________________ Interim City Clerk Passed and adopted on final reading on the 5th day of October, A.D. 2021. __________________________________ Mayor ATTEST: _______________________________ Interim City Clerk