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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/04/2022 - FIRST READING OF ORDINANCE NO. 001, 2022, APPROPRI Agenda Item 1 Item # 1 Page 1 AGENDA ITEM SUMMARY January 4, 2022 City Council STAFF Scott Phelps, Parks Sr. Manager Mike Calhoon, Director of Parks Ingrid Decker, Legal SUBJECT First Reading of Ordinance No. 001, 2022, Appropriating Prior Year Reserves in th e General Fund and Golf Fund and Authorizing Transfers of Appropriations for the Southridge Golf Course Irrigation Project. EXECUTIVE SUMMARY The purpose of this item is to appropriate $375,000 from the General Fund Southridge Golf Irrigation Reserve and $825,000 from the Golf Fund to purchase materials for the irrigation system and pond lining construction project scheduled to begin in October of 2022. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The life expectancy of a typical irrigation system varies from 25 -30 years. The irrigation system at Southridge Golf Course breaks down frequently, resulting in costly repairs. A dedicated crew is necessary to keep the systems running throughout the season, which draws on resources needed for other duties. A new irrigation system will produce significant savings through better water application efficiency and flexibility and reduces labor and repair costs. Golf courses have documented 20 percent or m ore savings in labor and repair costs and water use efficiency compared to previous irrigation systems. New, efficient systems will save an estimated 10.5 million gallons of water annually and improve turf and playing conditions. The condition of a golf course is the most important component in attracting repeat golfers. During the 2014/2015 budget process, $500,000 was set aside in the General Fund Council Priority Reserve to begin accumulating funds to replace the Southridge irrigation system. In the 2019 BFO Offer #26.3, $125,000 of those funds was authorized for design and cost estimates to replace the irrigation system. In March of 2021 the irrigation system cost estimates were still in line with the estimates received in the spring of 2020. In the fal l of 2021, the City received proposals to replace the irrigation system at South ridge beginning in October of 2022. Since March of 2021, the cost of the irrigation system replacement has risen 25 -30 percent and continues to rise at this time. At the November 2021 Council Finance Committee meeting, support was given to fund this project in 2022. To minimize the impact of inflation between now and the proposed bond funding of the project, the Golf Division is requesting the appropriation of the remaining $3 75,000 from the General Fund Southridge Golf Irrigation Reserve and $825,000 from the Golf Fund Reserves to purchase the materials. The $375,000 from the General Fund Reserve will be transferred to the Golf Fund. Per Chapter 23 of the City Code, Article XII (addressing Art in Public Places), Section 23-304, all appropriations for construction projects estimated to cost over $250,000 shall include an amount equal to one Agenda Item 1 Item # 1 Page 2 percent of the estimated cost for works of art. As such, the total APP contribution to be appropriated with this action, and transferred to the Cultural Services and Facilities Fund, is $13,250. CITY FINANCIAL IMPACTS Appropriating these funds will save $126,000 immediately and set aside funds to avoid further price increases in the future. The following is a summary of the project funding: Prior Project Appropriation Prior Appropriation from General Fund Southridge Golf Irrigation Reserve (transferred to the Golf Fund via 2019 BFO Offer 26.3 $125,000 Total Prior Project Appropriation $125,000 Project Funds to be Appropriated with this Action General Fund Southridge Golf Irrigation Reserve (to be transferred to the Golf Fund) $375,000 Golf Fund Reserves $825,000 Total Project Funds to be Appropriated with this Action $1,200,000 Subtotal Project Funds $1,325,000 Less: Transfer to Art in Public Places $13,250 Total Project Funds 1,311,750 BOARD / COMMISSION RECOMMENDATION Because of the timing of board meetings, this need was not presented to the Golf Advisory Board. It will be presented to them at their normally scheduled board meeting January 12, 2022. It was supported at the Council Finance Committee meeting in November 2021. ATTACHMENTS 1. Council Finance Committee Minutes - November 3, 2021 (PDF) ATTACHMENT 1 ATTACHMENT 1 ATTACHMENT 1 ATTACHMENT 1 ATTACHMENT 1 ATTACHMENT 1 ATTACHMENT 1 -1- ORDINANCE NO. 001, 2022 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUND AND GOLF FUND AND AUTHORIZING TRANSFERS OF APPROPRIATIONS FOR THE SOUTHRIDGE GOLF COURSE IRRIGATION PROJECT WHEREAS, the City’s Parks Department has been setting aside funds for replacement of the irrigation system at Southridge Golf Course since 2014; and WHEREAS, the existing irrigation system breaks down frequently, requiring costly repairs; and WHEREAS, the estimated cost to replace the irrigation system has increased by nearly 30 percent since March of 2021 and continues to rise, and the Council Finance Committee, at its regular meeting on November 3, 2021, supported funding the replacement project in 2022; and WHEREAS, approval of this Ordinance would appropriate $375,000 from the General Fund Southridge Golf Irrigation Reserve and $825,000 from the Golf Fund to purchase materials for the irrigation system and pond lining construction project scheduled to begin in October of 2022 (the “Project”); and WHEREAS, this appropriation benefits public health, safety and welfare of the citizens of Fort Collins and serves the public purpose of providing an improved irrigation system on a public golf course that will produce significant savings for the City through better water application efficiency and flexibility while also reducing costs for labor and repairs; and WHEREAS, because the Project involves construction estimated to cost more than $250,000, 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, the total Project cost of $1,325,000 includes a prior appropriation of $125,000 completed in the 2019 Budget and the total Project cost has been used to calculate the contribution to the 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 General Fund and the Golf Fund, as applicable, and will not cause the total amount appropriated in the General Fund or the Golf 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 -2- 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 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 $375,000 from the General Fund to the Golf 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 General Fund the sum of THREE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS ($375,000), which sum is authorized for transfer to the Southridge Irrigation System Project in the Golf Fu nd and appropriated therein. Section 3. That there is hereby appropriated from prior year reserves in the Golf Fund the sum of EIGHT HUNDRED TWENTY-FIVE THOUSAND DOLLARS ($825,000) for expenditure from the Golf Fund for the Southridge Irrigation System Project. Section 4. That the unexpended and unencumbered appropriated amount of TEN THOUSAND THREE HUNDRED THIRTY-FIVE DOLLARS ($10,335) in the Golf Fund is hereby authorized for transfer to the Cultural Services and Facilities Fund and appropriated therein for the Art in Public Places Program art projects. Section 5. That the unexpended and unencumbered appropriated amount of TWO THOUSAND SIX HUNDRED FIFTY DOLLARS ($2,650) in the Golf Fund is authorized for transfer to the Cultural Services and Facilities Fund and appropriated therein for the Art in Public Places Program operation costs. Section 6. That the unexpended and unencumbered appropriated amount of TWO HUNDRED SIXTY-FIVE DOLLARS ($265) in the Golf Fund is authorized for transfer to the Cultural Services and Facilities Fund and appropriated therein for the Art in Public Places Program maintenance costs. -3- Introduced, considered favorably on first reading, and ordered published this 4th day of January, A.D. 2022, and to be presented for final passage on the 18th day of January, A.D. 2022. __________________________________ Mayor ATTEST: _______________________________ Interim City Clerk Passed and adopted on final reading on the 18th day of January, A.D. 2022. __________________________________ Mayor ATTEST: _______________________________ City Clerk