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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/21/2022 - ITEMS RELATING TO APPROPRIATIONS FOR SOUTHRIDGE GO Agenda Item 7 Item # 7 Page 1 AGENDA ITEM SUMMARY June 21, 2022 City Council STAFF Amanda Newton, Sr. Treasury Analyst Blaine Dunn, Accounting Director John Duval, Legal SUBJECT Items Relating to Appropriations for Southridge Golf Course Irrigation System Installation and Fleet Shop Expansion. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 072, 2022, Making Supplemental Appropriations in the Golf Fund from Anticipated Lease Financing Proceeds and Authorizing Transfers from the Golf Fund for the Southridge Golf Course Irrigation Project and Related Art in Public Places. B. First Reading of Ordinance No. 073, 2022, Making Supplemental Appropriations from Anticipated Lease Financing Proceeds and Prior Year Reserves in the Equipment Fund and Authorizing Transfers From the Equipment Fund for the Fleet Shop Expansion Project and Related Art in Public Places. The purpose of this item is to consider two ordinances related to the appropriation for Southridge Golf Course Irrigation System Installation and Fleet Shop Expansion, in order to allow work to proceed expeditiously in light of increasing costs. Council has previously approved Ordinance No. 062, 2022, authorizing the issuance of 2022 COPS for the financing of these projects. Payments paid with the 2022 appropriation will be reimbursed with the proceeds from the 2022 COPs and put back in the appropriate reserve fund. Council has adopted Resolution 2022-058 to declare City’s official intent to reimburse the applicable City funds for initial expenditures with the proceeds from the issuance of the 2022 COPs. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. BACKGROUND / DISCUSSION Southridge Golf Irrigation System Project The project is to install a new irrigation system at Southridge golf course located at 5750 South Lemay Avenue. It is an 18-hole golf course situated on 128 acres in southeast Fort Collins and is operated and maintained by the City. The current irrigation system has exceeded its typical life expectancy and is experiencing losses of water, costly repairs, and high labor needs. A new system will produce significant savings through better water application efficiency and flexibility and reduced labor and repair costs. Fleet Shop Expansion Project The Fleet Shop Expansion project is to provide two garage bays to maintain compressed natural gas (CNG) fueled fleet vehicles in compliance with City and State laws and regulations. A comprehensive facility audit conducted in 2018 determined the existing garage facility located at 835 Wood Street did not meet all Agenda Item 7 Item # 7 Page 2 applicable laws and regulations. The expansion will also help meet the increasing demand for more maintenance workspace as the City’s vehicle fleet grows. Council has previously approved Ordinance No. 062, 2022, authorizing the issuance of 2022 COPS for the financing of these projects. CITY FINANCIAL IMPACTS Southridge Golf Course Irrigation System Installation Appropriation The total cost for Southridge Golf Course irrigation system installation is estimated at $5 million, and staff is recommending financing the entire amount through the issuance of the 2022 COPs. The principal borrowed is the balance of the $5.18 million costs after accounting for the closing costs of $0.18 million In 2019, $125,000 was appropriated out of General Fund Irrigation Reserves for this project. In 2022, $375,000 was appropriated out of General Fund Irrigation Reserves and $825,000 was appropriated out of Golf Fund Reserves for the Art in Public Places (APP) contribution and contingency in case the system cost exceeds the original estimate. The APP contribution was $13,250. Payments paid with the 2022 appropriation will be reimbursed with the proceeds from the 2022 COPs and put back in Golf Reserves. Council has previously adopted Resolution 2022-058 to declare City’s official intent to reimburse the applicable City funds for initial expenditures with the proceeds from the issuance of the 2022 COPs. This Ordinance will appropriate a total of $3,981,415. The source and use of the funds are as follows: Source of Funds Use of Funds COPs $5,181,415 Project Payment $4,963,250 Prior Appropriation (1,200,000)Closing Costs 181,415 Art in Public Places 36,750 Reimburse Prior Appropriation (1,200,000) Total $3,981,415 Total $3,981,415 This appropriation will increase the total appropriations in the Golf fund by $3.98 million, and transfer $36,750 to the Cultural Services Fund for APP. Fleet Shop Expansion The total cost of the project is estimated at $4.51 million. $431,000 was appropriated for the cost of construction design in the City’s 2022 annual appropriation. With this previous appropriation the City is planning on using $1.08 million from prior year reserves in the Equipment Fund and seeking $3 million from the issuance of 2022 COPs to finance the construction costs of this project. The principal borrowed is the balance of the $3.11 million costs after accounting for the closing costs of $0.11 million. This ordinance will appropriate a total of $4,187,746. The source and use of the funds are as follows: Source of Funds Use of Funds COPs $3,106,746 Project Payment $4,035,880 Equipment Fund Reserves $1,081,000 Closing Costs 106,746 Art in Public Places 45,120 Total $4,187,746 Total $4,187,746 This appropriation will increase the total appropriations in the Equipment Fund by $4.19 million, and will transfer $45,120 to the Cultural Services Fund for APP -1- ORDINANCE NO. 072, 2022 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING A SUPPLEMENTAL APPROPRIATIONS IN THE GOLF FUND FROM ANTICIPATED LEASE FINANCING PROCEEDS AND AUTHORIZING TRANSFERS FROM THE GOLF FUND FOR THE SOUTHRIDGE GOLF COURSE IRRIGATION PROJECT AND RELATED ART IN PUBLIC PLACES WHEREAS, on June 7, 2022, the City Council adopted Ordinance No. 062, 2022, to authorize and approve the issuance of certificates of participation in a lease-lease back transaction for the funding of certain City capital projects (“2022 COPs”); and WHEREAS, one of the City capital projects designated to be funded with some of the proceeds from the 2022 COPs is the installation of a new irrigation system at the City’s Southridge Golf Course (the “Project”); and WHEREAS, the purpose of this appropriation and transfer of funds is to authorize the use of a portion of the proceeds the City will be receiving from the issuance of the 2022 COPs to fund the Project and the related expenditures under the City’s Art in Public Places program (“APP Program”); and WHEREAS, this appropriation and transfers benefit the public health, safety and welfare of the citizens of Fort Collins and serve the public purpose of funding a new irrigation system for the Southridge Golf Course and providing public art under the APP Program; and WHEREAS, since 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 use in the APP Program; and WHEREAS, the total cost of the Project is $5,181,415 and includes a prior appropriation of $125,000 completed in the City’s 2019 annual appropriation and a prior appropriation of $1,200,000 in Ordinance No. 001, 2022, (“Ordinance No. 001”) and the total cost of the Project, excluding the closing costs of $181,415, has been used to calculate the contributions to the APP Program; and WHEREAS, contributions to the APP program in the total amount of $13,250 was included in Ordinance No. 001 and the total amount to be contributed in this Ordinance is $36,750; and WHEREAS, it is intended that $1,200,000 of the proceeds received from the 2022 COPs are to be used to reimburse the Golf Fund for the funds appropriated in and previously expended under Ordinance No. 001 for the Project by depositing such proceeds in the reserves of the Golf Fund, as such reimbursement has been authorized by City Council in Resolution 2022-058; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council, upon recommendation of the City Manager, to make a supplemental appropriation by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriation, in -2- combination with all previous appropriations for that fiscal year, do 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 appropriations described herein and determined that these appropriations are available and previously unappropriated from the Golf Fund and will not cause the total amount appropriated in the Golf Fund to exceed the current estimate of actual and anticipated revenues and all other funds to be received in this Fund during this fiscal year, which will include proceeds from the issuance of the 2022 COPs; 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 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 $36,750 from the Golf Fund to the Cultural Service & Facilities Fund and determined that the purpose for which the transferred funds are to be expended remains unchanged; and WHEREAS, Article V, Section 11 of the City Charter authorizes the City Council to designate in the ordinance when appropriating funds for a capital project that such appropriation shall not lapse at the end of the fiscal year in which the appropriation is made but continue until the completion of the capital project; and WHEREAS, the City Council wishes to designate the appropriation herein for the Project as an appropriation that shall not lapse until the completion of the Project. 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 new revenue or other funds in the Golf Fund the sum of THREE MILLION NINE HUNDRED EIGHTY-ONE THOUSAND FOUR HUNDRED FIFTEEN DOLLARS ($3,981,415) to be expended in the Golf Fund for the Project. Section 3. That the unexpended and unencumbered appropriated amount of TWENTY-EIGHT THOUSAND SIX HUNDRED SIXTY-FIVE DOLLARS ($28,665) in the Golf Fund is hereby authorized for transfer to the Cultural Services and Facilities Fund and appropriated therein for the APP Program art projects. -3- Section 4. That the unexpended and unencumbered appropriated amount of SEVEN THOUSAND THREE HUNDRED FIFTY DOLLARS ($7,350) in the Golf Fund is authorized for transfer to the Cultural Services and Facilities Fund and appropriated therein for the APP Program operation costs. Section 5. That the unexpended and unencumbered appropriated amount of SEVEN HUNDRED THIRTY-FIVE DOLLARS ($735) in the Golf Fund is authorized for transfer to the Cultural Services and Facilities Fund and appropriated therein for the APP Program maintenanc e costs. Section 6. That the appropriation herein for the Project is hereby designated, as authorized in Article V, Section 11 of the City Charter, as an appropriation that shall not lapse at the end of this fiscal year but continue until the completion of the Project. Section 7. That ONE MILLION TWO HUNDRED THOUSAND DOLLARS ($1,200,000) of the proceeds received from the 2022 COPs shall be deposited into the reserves of the Golf Fund to reimburse it for the funds appropriated in and previously expended under Ordinance No. 001, 2022 for the Project, as intended by City Council Resolution 2022-058. Introduced, considered favorably on first reading, and ordered published this 21st day of June, A.D. 2022, and to be presented for final passage on the 5th day of July, A.D. 2022. Mayor ATTEST: City Clerk Passed and adopted on final reading this 5th day of July, A.D. 2022. Mayor ATTEST: City Clerk -1- ORDINANCE NO. 073, 2022 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING SUPPLEMENTAL APPROPRIATIONS FROM ANTICIPATED LEASE FINANCING PROCEEDS AND PRIOR YEAR RESERVES IN THE EQUIPMENT FUND AND AUTHORIZING TRANSFERS FROM THE EQUIPMENT FUND FOR THE FLEET SHOP EXPANSION PROJECT AND RELATED ART IN PUBLIC PLACES WHEREAS, on June 7, 2022, the City Council adopted Ordinance No. 062, 2022, to authorize and approve the issuance of certificates of participation in a lease-lease back transaction for the funding of certain City capital projects (“2022 COPs”); and WHEREAS, one of the City capital projects designated to be funded with some of the proceeds from the 2022 COPs is the construction of two garage bays to maintain the City’s fleet vehicles that use compressed natural gas (the “Project”); and WHEREAS, the purpose of these appropriations and transfers of funds is to authorize the use of a portion of the proceeds the City will be receiving from the issuance of the 2022 COPs to fund the Project, as well as prior year reserves in the Equipment Fund, to fund the Project and the related expenditures under the City’s Art in Public Places program (“APP Program”); and WHEREAS, these appropriations and transfers benefit the public health, safety and welfare of the citizens of Fort Collins and serve the public purpose of funding the Project and providing public art under the APP Program; and WHEREAS, since this 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 use in the APP Program; and WHEREAS, the total project cost of $4,618,746 includes a prior appropriation of $431,000 completed in the City’s 2022 annual appropriation and the total project cost, excluding the closing costs of $106,746, has been used to calculate a $45,120 contribution to the APP Program; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council, upon recommendation of the City Manager, to make a supplemental appropriation by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriation, in combination with all previous appropriations for that fiscal year, do 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 from the anticipated proceeds of the issuance of the 2022 COPs described herein and determined that this appropriation is available and previously unappropriated from the Equipment Fund and will not cause the total amount appropriated in the Equipment Fund to exceed the current estimate of -2- actual and anticipated revenues and all other funds to be received in this Fund during this fiscal year; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council, upon the recommendation of the City Manager, to make supplemental appropriations 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 from prior year reserves in the Equipment Fund described herein and determined that this appropriation is available and previously unappropriated from the Equipment Fund and will not cause the total amount appropriated in the Equipment Fund to exceed the current estimate of actual and anticipated revenues and all other funds to be received in this 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 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 $45,120 from the Equipment Fund to the Cultural Service & Facilities Fund and determined that the purpose for which the transferred funds are to be expended remains unchanged; and WHEREAS, Article V, Section 11 of the City Charter authorizes the City Council to designate in the ordinance when appropriating funds for a capital project that such appropriation shall not lapse at the end of the fiscal year in which the appropriation is made but continue until the completion of the capital project; and WHEREAS, the City Council wishes to designate the appropriation herein for the Project as an appropriation that shall not lapse until the completion of the Project. 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 new revenue or prior year reserves in the Equipment Fund the sum of FOUR MILLION ONE HUNDRED EIGHTY-SEVEN THOUSAND SEVEN HUNDRED FORTY-SIX DOLLARS ($4,187,746) to be expended in the Equipment Fund for the Project. -3- Section 3. That the unexpended and unencumbered appropriated amount of THIRTY-FIVE THOUSAND ONE HUNDRED NINETY-FOUR DOLLARS ($35,194) in the Equipment Fund is hereby authorized for transfer to the Cultural Services and Facilities Fund and appropriated therein for the APP Program art projects. Section 4. That the unexpended and unencumbered appropriated amount of NINE THOUSAND TWENTY-FOUR DOLLARS ($9,024) in the Equipment Fund is authorized for transfer to the Cultural Services and Facilities Fund and appropriated therein for the APP Program operation costs. Section 5. That the unexpended and unencumbered appropriated amount of NINE HUNDRED TWO DOLLARS ($902) in the Equipment Fund is authorized for transfer to the Cultural Services and Facilities Fund and appropriated therein for the APP Program maintenance costs. Section 6. That the appropriation herein for the Project is hereby designated, as authorized in Article V, Section 11 of the City Charter, as an appropriation that shall not lapse at the end of this fiscal year but continue until the completion of the Project. Introduced, considered favorably on first reading, and ordered published this 21st day of June, A.D. 2022, and to be presented for final passage on the 5th day of July, A.D. 2022. Mayor ATTEST: City Clerk Passed and adopted on final reading this 5th day of July, A.D. 2022. Mayor ATTEST: City Clerk