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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/19/2021 - FIRST READING OF ORDINANCE NO. 135, 2021, APPROPRI Agenda Item 9 Item # 9 Page 1 AGENDA ITEM SUMMARY October 19, 2021 City Council STAFF Kurt Friesen, Director of Park Planning & Development Ted Hewitt, Legal SUBJECT First Reading of Ordinance No. 135, 2021, Appropriating Prior Year Reserves and Authorizing Transfers of Appropriations for the East District Maintenance Facility Project and Related Art in Public Places. EXECUTIVE SUMMARY The purpose of this item is to appropriate additional funding for the East District Maintenance Facility. An additional appropriation of $1.2 million is needed for the East District Maintenance Facility, proposed to be constructed near the intersection of Drake & Ziegler. The maintenance facility will house equipment and staff for the East Park District, which includes multiple parks on the east side of the City. The additional appropriation is needed to fund necessary elements of the project, as well as to account for material cost escalations which are largely the result of the COVID-19 pandemic. Additional appropriations will come from dedicated park impact fees. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION Facility Location and Need A new East District Maintenance Facility (EDMF) is proposed for construction near the intersection of Drake and Ziegler. The facility will house Parks maintenance staff and equipment to serve a total of eight parks located within the East Park District. Parks within the district include Twin Silo, Stew Case, English Ranch, Harmony, Radiant, and the Archery Range. New parks including Bucking Horse Park, scheduled for completion in 2022, and East Community Park, will also be served by the EDMF. Currently, maintenance staff and equipment for these parks is being housed in temporary facilities adjacent to the Fossil Creek Park maintenance facility, located in Fossil Creek Park. Staff are moving equipment and staff daily from this shop location to the east side of the city to provide maintenance in the East Park District. There is an immediate need for the new maintenance facility to relieve pressure on the facilities in Fossil Creek Park that were designed to accommodate only two crews. The Forestry Division has seen significant growth with an average of 1,500 trees per year being added to the existing 57,000 public tree inventory. One of the Forestry teams will also work out of the EDMF to enhance the level of service and operational efficiencies gained by a precinct model. In 2019, the City purchased the triangular 3.1 acre parcel for the maintenance facility, located south of the Drake Water Reclamation Facility. This site was selected for the maintenance facility as it is conveniently located near the proposed East Community Park site and provides direct access to the other neighborhood parks and trails in the area, including Bucking Horse Park, a new neighborhood park planned for construction in 2022. Agenda Item 9 Item # 9 Page 2 Appropriation History A total of $6.125 million has been appropriated for the project to date. This includes $1.075 million from the Neighborhood Parkland Fund, and $5.05 million from the Community Parkland Fund. As outlined in Ordinance 58, approved in 2000, maintenance facilities are essential to the health and longevity of parks and must be included as part of the overall park building plan, with 20% of the cost being associated with neighborhood parks and 80% with community parks. Budget Shortfall Design of the EDMF has been underway for approximately one year. All 100% construction documents and multiple cost estimates for the project have been prepared. An initial Guaranteed Maximum Price (GMP) was prepared in May 2021, which aligned with the available budget, but identified many necessary project elements as unfunded alternates. Additionally, significant cost escalations have taken place because of the COVID-19 pandemic. To deliver a complete project, an additional appropriation of $1.2 million is needed, as outlined: East District Maintenance Facility Project Cost Summary Maintenance Facility Costs ($M) Existing Budget Current Projection $ Increase Construction $ 3.925 $ 5.094 $ 1.169 Fees/Utilities/Furnishings $ 1.800 $ 1.800 $ 0.000 Land $ 0.400 $ 0.431 $ 0.031 TOTAL $ 6.125 $ 7.325 $ 1.200 Of the $1.2million total appropriation request, $1.169 million is for construction, and the remaining $31,000 is appropriated to the East Community Park account. The East Community Park account paid for the land purchase, as the maintenance facility was originally planned to be on the park site. This $31,000 appropriation will backfill the East Community Park account completely. The funds in this $1.2 million appropriation request allocated to construction costs are subject to the City’s Municipal Code requirement to contribute 1% of the total costs to the Art in Public Places (APP) program; the funds allocated to land acquisition costs are exempt from that requirement. As such, the total amount to be passed through the project to the APP program is $11,690. That amount is split into three portions: $9,118 (78%) for the cost of artwork, $2,338 (20%) for program operations, and $234 (2%) for program maintenance. The total project cost represents a 20% increase over the 2020 estimate. This is in line with material pricing changes that have occurred since 2020. Raw material shortages and manufacturing issues contributed to sharp increases in building materials over the past year. The chart below illustrates the commodity level pricing changes for non-residential projects in the Denver Metro Area from 2019 through Q1 of 2021. Source: M.A. Mortenson Agenda Item 9 Item # 9 Page 3 This summary suggests an overall average material cost escalation of approximately 26%. Cost escalations of this magnitude are common in the market today and align with both Northern Colorado and Denver construction cost indices, where a 5% increase was observed in the first quarter of 2021. Primary drivers for these cost escalations include material shortages, skilled labor shortages, and an increase in transportation related expenses. Next Steps Construction of the maintenance facility is anticipated to begin in the fall of 2021, with the facility opening in the summer or fall of 2022. CITY FINANCIAL IMPACTS Staff proposes the additional funding be split between neighborhood and community park sources. $390,000 is proposed to be added from the Neighborhood Parkland Fund and $810,000 added from the Community Parkland account within the Capital Expansion Fund. These funds are comprised of dedicated impact fees that can only be used for new park development, including new park maintenance facilities. The Neighborhood Parkland reserves will be expended from the Neighborhood Parkland Fund, while the Community Parkland reserves in the Capital Expansion Fund will be transferred to the Capital Projects Fund to be expended there. Typically, each fund is forecasted to generate approximately $1.5 million annually. Actual revenues vary and are driven by the pace and quantity of residential development occurring throughout the city. Based on normally forecasted revenue levels, the proposed additional appropriations could delay the development of both the next new neighborhood and community park by approximately 6 months. Maintenance Facility Funding ($M) Existing Budget Current Projection $ Increase Neighborhood Parkland Impacts Fees $ 1.075 $ 1.465 $ 0.390 Community Parkland Impact Fees $ 5.050 $ 5.860 $ 0.810 TOTAL $ 6.125 $ 7.325 $ 1.200 Agenda Item 9 Item # 9 Page 4 Upon completion of the EPMF, it will need to be equipped with a one-time purchase of shop equipment and supplies costing approximately $65,000. It will be staffed with a 1.0 FTE full time Worker I position and require ongoing supplies. This will increase ongoing costs to the City by approximately $85,000 per year. BOARD / COMMISSION RECOMMENDATION The Parks and Recreation Board approved the additional appropriation request at the September 22, 2021 Board Meeting. (Attachment 1) PUBLIC OUTREACH Two neighborhood meetings have been conducted to date for the project. The first was held November 20, 2019, and the second on May 27, 2021. At both meetings, community members were given the opportunity to provide feedback on both the maintenance facility and a new neighborhood park proposed in the Bucking Horse neighborhood. Support for both projects was positive. The maintenance facility project was also reviewed and approved by the Planning and Zoning Commission on April 20, 2021. ATTACHMENTS 1. Parks and Recreation Board Minutes (PDF) PARKS AND RECREATION BOARD TYPE OF MEETING – REGULAR Date, Time: Wednesday, September 22nd, 2021, 5:30pm Location: Hybrid meeting: Zoom & 413 S. Bryan Ave. 9/22/2021– MINUTES Page 1 NEW BUSINESS O EAST MAINTENANCE FACILITY (EDMF) APPROPRIATION - KURT FRIESEN Maintenance facilities provide localized equipment to perform daily maintenance tasks. Fort Collins has facilities spread around the community. EDMF would serve Bucking Horse Park, the Archery Range, East Community Park, Stewart Case Park, English Ranch Park, Harmony Park, Twin Silo Park, Radiant Park and the trail system. Park Planning is seeking Board support for the project in order to submit an additional funding appropriation request to Council due to significant price escalations in costs of construction materials. Construction began Fall 2021. Estimated completion: Summer/Fall 2022 The Board supported this request. Ken Christensen provided a motion of support to increase the overall East District Maintenance Facility project budget by $1.2 million, Shari Heymann seconded it. Motion passed 6 approved, 0 opposed. ATTACHMENT 1 -1- ORDINANCE NO. 135, 2021 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES AND AUTHORIZING TRANSFERS OF APPROPRIATIONS FOR THE EAST DISTRICT MAINTENANCE FACILITY PROJECT AND RELATED ART IN PUBLIC PLACES WHEREAS, the City seeks to construct a maintenance facility in the East Park District near the intersection of Drake Road and Ziegler Road to serve Twin Silo, Stew Case, English Ranch, Harmony, Radiant, and Archery Range Parks and, in the future, the new Bucking Horse and East Community Parks; and WHEREAS, to date the City has appropriated $6.125 million for the maintenance facility; and WHEREAS, all construction documents and multiple cost estimates have been prepared for the maintenance facility; and WHEREAS, material shortages, skilled labor shortages, and an increase in transportation related expenses, along with other factors, have increased the costs to deliver a completed maintenance facility, requiring an additional appropriation of $1.2 million; and WHEREAS, this appropriation benefits the public health, safety, and welfare of the residents of Fort Collins and serves the public purpose of allowing for the proper maintenance of the City’s parks; and WHEREAS, this project involves construction estimated to cost more than $250,000; therefore, Section 23-304 of the City Code requires one percent of these qualified appropriations to be transferred to the Cultural Services and Facilities Fund for a contribution to the Art in Public Places (APP) program; 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, the Interim City Manager has recommended the appropriation described herein and determined that these appropriations are available and previously unappropriated from the Neighborhood Parkland Fund and the Community Parkland Capital Expansion Fund (“Capital Expansion Fund”), as applicable, and will not cause the total amount appropriated in the Neighborhood Parkland Fund or the Capital Expansion Fund, as applicable, to exceed the current estimate of actual and anticipated revenues and all other funds to be received in these Funds during this fiscal year; and WHEREAS, Article V, Section 10 of the City Charter authorizes the City Council, upon recommendation by the City Manager, to transfer by ordinance any unexpended and -2- unencumbered appropriated amount or portion thereof from one fund or capital project to another fund or capital project, provided that the purpose for which the transferred funds are to be expended remains unchanged, the purpose for which the funds were initially appropriated no longer exists, or the proposed transfer is from a fund or capital project in which the amount appropriated exceeds the amount needed to accomplish the purpose specified in the appropriation ordinance; and WHEREAS, the Interim City Manager has recommended the transfer of $11,690 from the Capital Projects Fund to the Cultural Services & Facilities Fund and determined that the purpose for which the transferred funds are to be expended remains unchanged. 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 from prior year reserves in the Neighborhood Parkland Fund the sum of THREE HUNDRED NINETY THOUSAND DOLLARS ($390,000) for expenditure from the Neighborhood Parkland Fund for the East District Maintenance Facility project. Section 3. That there is hereby appropriated from prior year reserves in the Capital Expansion Fund the sum of EIGHT HUNDRED TEN THOUSAND DOLLARS ($810,000) for expenditure from the Capital Expansion Fund for transfer to the Capital Projects Fund for the East District Maintenance Facility project and appropriated therein. Section 4. That the unexpended and unencumbered appropriated amount of ONE THOUSAND EIGHT HUNDRED TWENTY-FOUR DOLLARS ($1,824) in the Neighborhood Parkland Fund is hereby authorized for transfer to the Cultural Services & Facilities Fund and appropriated therein for the Art in Public Places Program art projects. Section 5. That the unexpended and unencumbered appropriated amount of SEVEN THOUSAND TWO HUNDRED NINETY-FOUR DOLLARS ($7,294) in the Capital Projects Fund is hereby authorized for transfer to the Cultural Services & Facilities Fund and appropriated therein for the Art in Public Places Program art projects. Section 6. That the unexpended and unencumbered appropriated amount of FOUR HUNDRED SIXTY-EIGHT DOLLARS ($468) in the Neighborhood Parkland Fund is authorized for transfer to the Cultural Services & Facilities Fund and appropriated therein for the Art in Public Places Program operation costs. Section 7. That the unexpended and unencumbered appropriated amount of ONE THOUSAND EIGHT HUNDRED SEVENTY DOLLARS ($1,870) in the Capital Projects Fund is authorized for transfer to the Cultural Services & Facilities Fund and appropriated therein for the Art in Public Places Program operation costs. -3- Section 8. That the unexpended and unencumbered appropriated amount of FORTY- SEVEN DOLLARS ($47) in the Neighborhood Parkland Fund is authorized for transfer to the Cultural Services & Facilities Fund and appropriated therein for the Art in Public Places Program maintenance costs. Section 9. That the unexpended and unencumbered appropriated amount of ONE HUNDRED EIGHTY-SEVEN DOLLARS ($187) in the Capital Projects Fund is authorized for transfer to the Cultural Services & Facilities Fund and appropriated therein for the Art in Public Places Program maintenance costs. Introduced, considered favorably on first reading, and ordered published this 19th day of October, A.D. 2021, and to be presented for final passage on the 2nd day of November, A.D. 2021. __________________________________ Mayor ATTEST: _______________________________ Interim City Clerk Passed and adopted on final reading on the 2nd day of November, A.D. 2021 __________________________________ Mayor ATTEST: _______________________________ Interim City Clerk