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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/02/2021 - FIRST READING OF ORDINANCE NO. 140, 2021, APPROPRI Agenda Item 8 Item # 8 Page 1 AGENDA ITEM SUMMARY November 2, 2021 City Council STAFF Jim McDonald, Cultural Services Director Ken Mannon, Operations Services Director Ted Hewitt, Legal SUBJECT First Reading of Ordinance No. 140, 2021, Appropriating Prior Year Reserves and Authorizing Transfers of Appropriations for the Renovation of the Historic Carnegie Library and Related Art in Public Places. EXECUTIVE SUMMARY With the passage of the 2015 Community Capital Improvement Program (CCIP) ballot measure, the historic Carnegie Library, currently the Carnegie Center for Creativity, was scheduled for renovation beginning in 2024. With projected inflation per the ballot materials, the approved total allotment is $2,218,000. The ballot measure also included five years of operations and maintenance support in the amount of $25,000 per year. Currently, the building is closed to the community due to the installation of a new elevator to meet Americans with Disabilities Act standards. With the building closure and the elevator construction currently underway, staff recommends commencing the renovation work in 2021 to leverage the current situation and minimize future closure time. In addition to funding the renovation project, this appropriation request will also authorize a transfer of one percent of the total project cost ($22,180) to the Cultural Services & Facilities Fund to satisfy the required contribution to the Art in Public Places program per the City Code. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION In April 2015, the voters of Fort Collins passed a 10-year quarter-cent tax renewal dedicated to community capital improvements. Projects outlined for funding in the ballot measure included ongoing funds to support affordable housing, intersection improvements, bicycle infrastructure, implementation of Nature in the City and the renovation of the historic Carnegie Library. Authorizing Ordinance No. 013, 2015, stated “This project will renovate the historic 1904 Carnegie Library building to enhance its use as a Community Center. The Center will host special events, community meetings, art exhibits, and symposiums in the heart of Downtown.” The historic 1904 Carnegie building is one of the oldest, continuously operating public buildings in Fort Collins, designated as a local Historic Landmark District by Resolution in 1978. The building is also a contributing structure to the Laurel School Historic District, National Register 10/3/1980, 5LR.463. Now the Carnegie Center for Creativity, it offers an affordable community-focused cultural space for gallery exhibitions, performances, classes, and special events. It also serves as the home and studio of Fort Collins Public Media and the Fort Collins Downtown Creative District. Agenda Item 8 Item # 8 Page 2 The project focuses on infrastructure and historic restoration to ensure the building will continue to function as a public resource into the future. Some of the work to be completed includes uncovering and restoring windows; adding a main staircase to connect floors; renovating and adding restrooms; upgrading electrical and mechanical systems; restoring interior floors and finishes; and restoring and repairing exterior masonry (eaves and cornice.) CITY FINANCIAL IMPACTS This Ordinance will appropriate $2,218,000 of Community Capital Improvement Program (CCIP) Fund reserves for transfer to the Capital Projects Fund for the renovation of the historic Carnegie Library. In addition, one percent of this total appropriation request, $22,180, will be transferred to the Cultural Services & Facilities Fund as a contribution to the City’s Art in Public Places (APP) program as required by the City Code. Of this amount, $17,300 will be assigned for the purchase / acquisition of artwork, $4,436 for operation of the APP program, and $444 for maintenance of the program’s assets. BOARD / COMMISSION RECOMMENDATION Council Finance Committee unanimously supported this appropriation at its October 6, 2021, meeting. ATTACHMENTS 1. Council Finance Committee Minutes (excerpt) (PDF) Finance Administration 215 N. Mason 2nd Floor PO Box 580 Fort Collins, CO 80522 970.221.6788 970.221.6782 - fax fcgov.com Finance Committee Meeting Minutes October 6, 2021 3:00 – 5:00 pm Hybrid Meeting - 222 Colorado River Community Room / Zoom Council Attendees: Julie Pignataro, Kelly Ohlson, Emily Francis, Shirley Peel Staff: Kelly DiMartino, Carrie Daggett, Kyle Stannert, Travis Storin, Blaine Dunn, Brad Buckman, Jim McDonald, Ryan Malarky, Gerry Paul, Dave Lenz, Amanda Newton, Ken Mannon, Nina Bodenhamer, Lance Smith, Carolyn Koontz ____________________________________________________________________________________ Meeting called to order at 3:01 pm Julie Pignataro; I conferred with the City Manager and the City Attorney and have determined that the Committee should conduct this meeting as a hybrid meeting allowing both in person and remote participation because meeting in person may not be prudent for some or all persons due to the current public health situation. Approval of minutes from the September 1, 2021, Council Finance Committee Meeting. Emily Francis moved for approval of the minutes as presented. Kelly Ohlson seconded the motion. Minutes were approved unanimously via roll call by; Julie Pignataro, Kelly Ohlson and Emily Francis. A. Community Capital Improvement Plan (CCIP) Status Update Blaine Dunn, Accounting Director EXECUTIVE SUMMARY The purpose of this item it to provide Council Finance Committee information on the Community Capital Improvement Program. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED Inform and educate Council Finance Committee on Community Capital Improvement Program Does Council Finance desire any additional information? Does Council Finance support move forward with an appropriation for Carnegie? BACKGROUND/DISCUSSION Fort Collins is fortunate to have a long history of voter-approved sales tax initiatives to fund major capital projects. Since 1973, these voter approved sales tax capital programs have supported efforts to build the city we know and love today. ATTACHMENT 1 The current initiative, Community Capital Improvement Program (CCIP), was approved in 2015. CCIP is a quarter cent (0.25%) tax which equates to 25-cents on a $100 purchase. Over the 10-year period of the tax (2016-2025), CCIP was originally projected to collect $83.3 million dollars. After the first five years, CCIP is now projected to collect $88.6 million over the 10-year period. City Council and the community went through an extensive process to determine the 17 projects that ultimately ended up on the ballot. This process started with a call for projects with the community and Council. The project list started with over $500 million in projects identified. Through extensive high-touch community and stakeholder engagement, including multiple Council work sessions and a Council off site meeting, the list was narrowed down to its final form. After the passage of the ballot measure, staff worked to determine the cadence of the various projects and programs approved by the voters. The cadence of how items would be funded was not part of the ballot language. All the projects and programs on the ballot are guaranteed, at a minimum, to get the amount approved by the voters. This happens through the BFO process each year and ties back to the original ballot amounts. Council can appropriate funds for the original 17 projects in a different manner than staff has outlined, based on funding availability. Once all projects have been completed Council has the authority to appropriate residual funds for virtually any purpose. Below is a listing of projects with their total cost and current project status. PROJECT LISTING 1 – Affordable Housing ($4,000,000) – Ongoing This was set up as a program to accumulate funds throughout the life of CCIP. Staff works with community partners and across departments to identify projects for development and rehabilitation in the affordable housing space. To date these funds have been utilized for project fee offsets in relation to affordable housing. 2 – Arterial Intersection Improvements ($6,000,000) – Ongoing This was set up as a program to accumulate funds and identify arterials in need of improvement. The goal of the program is to update major arterial intersections to improve safety and reduce congestion. To date the funding has improved the Vine and Shields intersection and the Horsetooth and College intersection. The next project that will be worked on is the College and Trilby intersection. 3 – Bicycle Infrastructure Improvements ($5,000,000) – Ongoing This program was built to align with the 2014 Bicycle Master Plan. The projects being completed include infrastructure improvements to enhance safety, provide wayfinding, and improve comfort and access for bicyclists. Completed projects include a protected bike lane on Mulberry, and the Laporte and Loomis intersection crossing. 4 – Bike/Pedestrian Grade Separated Crossing Fund ($6,100,000) – Ongoing This was set up as a program receiving funds in certain years to be used toward grade separated crossings. The funds will be used for construction of top priority crossings across arterial roadways. Current projects that will be utilizing these funds include power trail over Harmony, Siphon overpass south of Harmony, and an underpass at Timberline north of Zephyr. 5 – Bus Stop Improvements ADA Upgrades ($1,000,000) – Ongoing This program receives annual appropriations set aside for bus stop upgrades. Part of the Safe Routes to Everywhere program, this project aligns with ADA accessibility to improve bus stops throughout the City. The improvement of these bus stops in a continuing project. 6 – Carnegie Building Renovation ($2,343,000) – Scheduled This project is currently scheduled to receive CCIP funding in 2024. The project will renovate the historic 1904 Carnegie library building to enhance its use as a community center. 7 – City Park Train ($350,000) – Delayed This project was to bring back the City Park train in a new and expanded location in City Park. The project has run into some additional challenges and is currently delayed while staff work through alternatives. 8 – Club Tico Renovation ($250,000) – Completed This projected renovated Club Tico at City Park. The renovation included adding restrooms and a second story deck overlooking Sheldon Lake and City Park Pool. 9 – Poudre River Whitewater Park ($4,494,000) – Completed This project was for a new whitewater park east of Vine on the Poudre River. The whitewater park includes a viewing/picnic area and pedestrian bridge over the river. The work done lowered the river channel and improved flood mitigation. 10 – Gardens on Spring Creek Visitor’s Center Expansion ($2,385,000) – Completed This project renovated and expanded the Garden’s visitor center. The square footage of the visitor’s center doubled in size and added additional amenities for visitors and staff. 11 – Lincoln Avenue Bridge ($5,721,000) – Completed This project was for funding to design and construct right-of-way improvements to the west segment of Lincoln Avenue, including the Poudre River Bridge. 12 – Linden Street Renovation ($3,521,000) – In Progress This project will renovate Linden Street between Jefferson Street and Walnut Street. The design recommends transforming this section of Linden into a “convertible street,” which can be closed to vehicular and bicycle traffic and transformed into a pedestrian gathering space during special events. Construction was originally planned for 2020 but had been postponed to 2021 due to the coronavirus outbreak. In January 2021, the City announced that the bulk of the project will be postponed due to ongoing economic recovery efforts. 13 – Nature in the City ($3,500,000) – Ongoing This is a program to support projects that connect people and wildlife to high-quality habitat and diversity of experiences in nearby nature. Funds are transferred to the program on an annual basis and staff determines the best projects to apply funding towards. 14 – Pedestrian Sidewalk ADA Compliance ($14,000,000) – Ongoing This program is to implement compliance across the City’s pedestrian network. The projects selected help eliminate gaps in the network and improve ADA compliance. Projects completed to date include widening of the sidewalks on Drake and new sidewalks on South Timberline and Harmony roads. Upcoming projects include widening of the sidewalks on East Prospect. 15 – Southeast Community Center with Pool ($18,811,000) – Scheduled This project is scheduled to receive CCIP funding starting in 2022. The project will include the construction of a community center in southeast Fort Collins including a large outdoor leisure pool, water slide, and open swimming area. 16 – Transfort Bus Replacement ($2,000,000) – Ongoing This program is for replacement of buses during the lifetime of CCIP. Funds are leveraged to receive an 80% of federal and state grant funding. 17 – Willow Street Improvements ($3,487,000) – Completed This project completed the design and construction of improvements to Willow Street between College Avenue and Linden Street. DISCUSSION / NEXT STEPS: GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED Inform and educate Council Finance Committee on Community Capital Improvement Program Does Council Finance desire any additional information? Does Council Finance support moving forward with an appropriation for Carnegie? Kelly Ohlson; ballot timing concern resolved – 2025 at latest So, an experienced Council would have input on projects after ballot process Projects received at a minimum the amount projected Current fund balance of $7.5M due to favorability in revenue Within the 10-year interval when a project is completed and closed out we can allocate to another project Kelly Ohlson; Slide 5 on projects list and original budget – well done Southeast Community Center – going up $4.8M – updated construction costs Travis Storin; these were the projected amounts in 2015 - When we layered them out and added inflation and additional O&M - Not updated for current construction costs - BFO offers always tie out to the ballot – if there is a cost overrun we have to come back Kelly Ohlson; BOB 1 - BOB 2 - Was BCC before that- Council built 3-5 years of O&M in How many years of O&M did you build in? An example would be the Southeast Community Center - O&M could be as much as $1M per year once it is open Blaine Dunn; we built in 5 years Emily Francis; we are projected to collect an extra $5M from the tax How is that allocated and where does it go? Blaine Dunn; collected on an annual basis and at this point it has not been directed by Council to go anywhere so we have not directed any of that Emily Francis; how does Council know that they have the option to direct that money to allocate? Blaine Dunn; on an annual basis, we give Council an update on all Fund Balances. That would be the first place for Council to ask questions – thinking we would want to have a Work Session before Travis Storin; staff gave the Fund Balance presentation in June of this year - we are working through BFO process upstream of recommending it to Council – here are the reserve balances we are working with and here are the strings attached to those reserve balances At the end of the ballot period – you would see it as a funding source within the City Manager’s Recommended Budget - $5M is sort of building up as a residual –that cannot be tapped until all 17 projects are completed Carrie Daggett; under the ballot language Council needs to expressly approve the uses for the funding. As those expenditures came forward Travis Storin; the process is designed based on the condition you just outlined Kelly DiMartino; this is why the conversation about the City Park train is going to be a big decision point for this Council - because the funding won’t be freed up for other uses until all 17 items on this list are complete - then it becomes an available revenue stream Travis Storin; an example – we were waiting on the completion of the restrooms at City Park which had to take place and be completed before Vine & Lemay - Unable to recommend you access the funds tied to projects – the $5M of overage is locked up until each of these projects is addressed Emily Francis; What does completion of the train look like? Is it the $- still committed / limited to just the train? Travis Storin; the staff application has been around the actual delivery of the project so in this case an operational train Carrie Daggett; that is correct – it is interesting because the train has raised so many issues As the project was more specifically developed – that is why there are mechanism in the ballot language related to determining that it is not feasible any longer I believe the finding of not being feasible is something that Council can make as their own decision. If Council wanted to extract the project out - there would also be the option to go back to the voters to ask for approval Emily Francis; if we completed all projects – we would have the $5M to spend on any purpose that Council sees fit. When we went through the reserves and balances it was not clear there was an overage – it could be made a little clearer on what is means when we have overages - Feedback would be how do we make that clearer to Council members? Julie Pignataro; this is a great update – exactly what I was hoping for I thought we were going to bring Carnegie forward again at the same time. Travis Storin; there are some fund-raising needs for Carnegie over and above the CCIP contribution from the philanthropic community. The level of consent I am hoping for from the committee today is when we have the fund-raising questions sorted out would Carnegie need to come back to Council Finance or if it could go directly to Council? The proposal was to take the 2024 amount of $2.2M which is the guaranteed legal minimum per the ballot – so the question was when does it get to that minimum – we had suggested bringing that amount forward to this year since the facility is closed – since that time we have identified a couple fund raising gaps we want to address Jim McDonald; there is an opportunity that is in front of us which is a state revitalization grant. Carnegie fits perfects – the Governor is awarding the one-time grant which is $65M across the state. I have met with the Director of CCI and others – there is a lot of interest. Of course, grants are never guaranteed. The application deadline is December 1st. If we can get approval in November from Council and you are supportive of this allocation. On the budget issue, we are working with architects and with Operations Services to revisit the numbers. Hoping to get it to Council on November 2nd. Ken Mannon; we have a meeting tomorrow to further understand the gap Julie Pignataro; I would be comfortable going directly to Council - if timing worked out possibly bring it back to Council Finance for an update. But the next Council meeting is November 2nd and next Council Finance Committee Meeting is November 3rd. Emily Francis; I am in agreement Kelly Ohlson; I am fine with Carnegie coming to Council because of the grant and because nothing else suffers. Juie Pignataro: When you are working over a 10-year period - what are the risks of having a project that simply becomes outdated or irrelevant. Kelly Ohlson; the City Park train could possibly be the first time we have had anything go from $350K to $5M. I believe we have always completed every project - a 98.7 score Kelly DiMartino; that is absolutely accurate. I had looked back to the Building Community Choices days and all of those items were completed. The $5M number for the City Park train includes relocating pickle ball and tennis courts. The costs escalation is partly due to the fact that we don’t think it is viable to remove pickle ball and tennis courts and not put newer ones in a different location. The reality is that this project was a last-minute addition that was chosen to be added to the list for very good reasons - so there was a fast assessment done just for replacing the train anticipating it would be in its original location but due to subsequent learnings about ADA requirements and the actual amount of space that would be required for the train and that it would not fit in its original location – that led to a much bigger planning process – determining the best place for the train – the scope changed significantly from what was originally envisioned. Julie Pignataro; if we continue to do these types of taxes, we will apply what we learn - what works and what doesn’t. We have had a lot of discussion about what we want to do regarding Transit. Travis Storin; that item is on the Council Finance December 1st agenda Julie Pignataro; what is the definition of a capital project? Travis Storin; a defined beginning and end - time bound and the budget does not lapse at end of year Julie Pignataro; for the capital part – would transit fit into something like this or is it totally different? Travis Storin; consistent with things like affordable housing and other ongoing items (in blue) that have come forward - I would think that Transit items could come forward as a ballot item in the next 10-year cycle –that is one of the options - In December we are going to talk about dedicated revenue over and above the existing ¼ cent – there are several other configurations there – short answer is yes we would have that flexibility Kelly DiMartino; when we bring this forward in December – we have a history of putting fleet bus replacement in these capital taxes – because it is a physical thing and although we have O&M associated with these capital projects it is more which comes first – the capital comes first then we acknowledge there is an O&M component – if we are thinking of switching this to a Transit O&M that will be completely different – if it is constructing certain pieces of transit it would be different than an ongoing transit tax. Kelly Ohlson; I would like to see an update of the complete current costs of the Vine / Lemay interchange even though it is not completed - Currently $8.8M over 10 years but things are changing – higher than 10 years ago Kelly Ohlson; what is our 2022 guess of what ¼ cent brings in? Travis Storin; $9.5M Kelly Ohlson; When we get to the revenue source discussion in December – in my opinion, other than hiring a new City Manager and the budget, the biggest things this Council will try to tackle some serious affordable housing costs, serious transit and gaps in parks and recreation maintenance. The December agenda – it doesn’t get much bigger than this – could be a 30–50-year impact. Sometimes there is a real lag on spending unless you know exactly what the O&M will be. Travis Storin; at the end of every year, we can give you reserve balances - O&M is prescriptive to ballot – we would do a set aside Kelly Ohlson; It mentions that we are going to do sidewalks on East Prospect – what about West Prospect – life and safety issues – are we looking at sidewalk on the southside on West Prospect. Brad Buckman; sidewalks on Prospect Road have a lot of Hollywood 2 ½ feet sidewalks - We consider that totally inadequate - a missing sidewalk on our inventory - East Prospect – just east of College – east of Remington and Prospect - We went all the way to the school – 1 mile down the road – widened both sides - We are kind of incrementally doing this with some arterial roads We did this with both sides of Drake - We widened it to 8 feet where possible – good path for both peds and bikes. We are also looking at doing those other sections of Prospect that need it - we are incrementally moving through the program - between Shields and College within the next 2 years Travis Storin; we did receive the report on Vine and Lemay recently – we are on time and on budget Carrie Daggett; when that measure was put on the ballot in 2015 - there had been a lot of learning from the prior measures – so the language was written very intentionally that does give Council a certain amount of discretion that maybe was not there in previous ballot measures. I wanted to note in particular – the language about revenues that remain unspent or unencumbered are freed up under the ballot measure once all of the projects have been completed unless Council has made a formal finding that it is not feasible –it frees that money up - there is a fair amount of latitude written into the ballot language. -1- ORDINANCE NO. 140, 2021 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES AND AUTHORIZING TRANSFERS OF APPROPRIATIONS FOR THE RENOVATION OF THE HISTORIC CARNEGIE LIBRARY AND RELATED ART IN PUBLIC PLACES WHEREAS, in 2015 the voters of Fort Collins passed a tax renewal dedicated to community capital improvements, including the renovation of the historic Carnegie Library (“Library”); and WHEREAS, the approved total allotment of the tax for the Library renovation is $2,218,000, plus five years of operations and maintenance support in the amount of $25,000 per year; and WHEREAS, renovation of the Library was scheduled to commence in 2024; and WHEREAS, the Library is currently undergoing construction to install a new elevator and commencing the renovation project in 2021 would minimize overall Library closure time; and WHEREAS, this appropriation benefits the public health, safety, and welfare of the residents of Fort Collins and serves the public purpose of renovating a historic community building that is used for special events, meetings, art exhibits and symposia; 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 & 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 this appropriation is available and previously unappropriated from the Community Capital Improvement Program Fund and will not cause the total amount appropriated in the Community Capital Improvement Program 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; 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 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 -2- 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 $22,180 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 Community Capital Improvement Program Fund the sum of TWO MILLION TWO HUNDRED EIGHTEEN THOUSAND DOLLARS ($2,218,000) for expenditure from the Community Capital Improvement Program Fund for transfer to the Capital Projects Fund for the renovation of the historic Carnegie Library and appropriated therein. Section 3. That the unexpended and unencumbered appropriated amount of SEVENTEEN THOUSAND THREE HUNDRED DOLLARS ($17,300) 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 4. That the unexpended and unencumbered appropriated amount of FOUR THOUSAND FOUR HUNDRED THIRTY-SIX DOLLARS ($4,436) 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. Section 5. That the unexpended and unencumbered appropriated amount of FOUR HUNDRED FORTY-FOUR DOLLARS ($444) 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 2nd day of November, A.D. 2021, and to be presented for final passage on the 16th day of November, A.D. 2021. __________________________________ Mayor ATTEST: _______________________________ Interim City Clerk -3- Passed and adopted on final reading on the 16th day of November, A.D. 2021. __________________________________ Mayor ATTEST: _______________________________ Interim City Clerk