HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/05/2022 - SECOND READING OF ORDINANCE NO. 074, 2022, APPROPR Agenda Item 4
Item # 4 Page 1
AGENDA ITEM SUMMARY July 5, 2022
City Council
STAFF
Dana Hornkohl, Capital Projects Manager
Brad Buckman, Manager, Civil Engineering
Aaron Guin, Legal
SUBJECT
Second Reading of Ordinance No. 074, 2022, Appropriating Prior Year Re serves and Authorizing Transfers of
Appropriations for the Linden Street Renovation Project and Related Art in Public Places.
EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading on June 21, 2022, appropriates additional funding for
the Linden Street Renovation project (the “Project”). The Project is experiencing inflationary pressures and the
cost to complete the work now exceeds the appropriated budget requiring either : (1) delay final delivery of the
Project; and/or (2) securing additional funds to complete the Project. To reduce the scope of the Project means
delivering a project that fails to meet established City standards for urban design and landscaping. To delay
final delivery until funding becomes available will negatively impact other transportation capital projects
currently in the delivery pipeline. Staff recommends supplemental appropriation of $500,000 to allow for
completion of the Project as intended when construction commenced. This request is being made to Council
now to avoid additional negative cost impacts due to potentially pausing and restarting an active construction
project.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. First Reading Agenda Item Summary, June 21, 2022 (w/o attachments) (PDF)
2. Ordinance No. 074, 2022 (PDF)
Agenda Item 8
Item # 8 Page 1
AGENDA ITEM SUMMARY June 21, 2022
City Council
STAFF
Dana Hornkohl, Capital Projects Manager
Brad Buckman, Manager, Civil Engineering
Aaron Guin, Legal
SUBJECT
First Reading of Ordinance No. 074, 2022, Appropriating Prior Year Reserves and Authorizing Transfers of
Appropriations for the Linden Street Renovation Project and Related Art in Public Places.
EXECUTIVE SUMMARY
The purpose of this item is to appropriate additional funding for the Linden Street Renovation project (the
“Project”). The Project is experiencing inflationary pressures and the cost to complete the work now exceeds
the appropriated budget requiring either: (1) delay final delivery of the Project; and/or (2) securing additional
funds to complete the Project. To reduce the scope of the Project means delivering a project that fails to meet
established City standards for urban design and landscaping. To delay final delivery until funding becomes
available will negatively impact other transportation capital projects currently in the delivery pipeline. Staff
recommends supplemental appropriation of $500,000 to allow for completion of the Project as intended when
construction commenced. This request is being made to Council now to avoid additional negative cost impacts
due to potentially pausing and restarting an active construction project.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
The Project will transform Linden Street between Jefferson and Walnut Streets into a “convertible street” – a
roadway that can be closed to vehicular and bicycle traffic and transformed into a pedestrian gathering space
during specialty events. Construction originally was planned for 2020, with the entire project to be built at once.
Due to the onset of the COVID-19 pandemic, construction was postponed and broken into two phases to
minimize impacts to the businesses within the footprint of the project. Phase 1 of construction was completed in
2021. Phase 2 of construction began in February of this year and completion is anticipated in July. Staff
anticipated that splitting the project into two phases would result in increased mobilization and oversight costs.
An additional $400,000 was appropriated via a 2022 Budget for Outcomes offer to address this cost increase.
Beginning in the Summer of 2021, the nation, the State of Colorado, and the northern Colorado region began
experiencing significant inflation in construction costs (Attachments 1, 2, and 3). The two most recent Colorado
Department of Transportation Colorado Construction Cost Index reports indicate annual percentage changes of
17.45% (Q4 2021) and 31.79% (Q1 2022). These inflationary pressures impacted the Project as pricing was
being finalized for Phase 2 construction in the Fall of 2021. Price increases for many unit price work items led
to an increase of approximately $500,000 to deliver the identified scope of work.
ATTACHMENT 1
COPY
Agenda Item 8
Item # 8 Page 2
Staff has identified two alternatives to reach project completion:
• Option 1: Delay non-essential scope of work items until additional funding can be secured. Specifically, the
temporary scope reduction likely would include delays in construction of landscaping, irrigation, seat wall
caps, and outdoor furniture. This option, however, would result in the project not meeting the identified project
goals within the promised time frame, expose the remaining work to the likelihood of continued inflation of
costs, and negatively impact the schedule and budgets for other transportation capital projects in the design,
acquisition, and construction pipeline.
• Option 2: Secure supplemental appropriation to complete the identified scope of work on schedule.
Figure 1 - Project Budget (Option 2)
CITY FINANCIAL IMPACTS
The following is a summary of the current and proposed funding appropriations for the Linden Street Renovation
project.
Prior Appropriated Funds
CCIP Fund (2019-2020 BFO Offer 1.10), 2019 $563,000
CCIP Fund (2019-2020 BFO Offer 1.10), 2020 $2,898,000
CCIP Fund (2019-2020 BFO Offer 1.10), 2022 $400,000
Total Prior Appropriation $3,861,000
Prior Transfer to Art in Public Places $38,610
Funds to be Appropriated with this Action
CCIP Fund Reserves $500,000
Total Funds to be Appropriated per this Action $500,000
Transfer to Art in Public Places per this Action $5,000
Total Current Project Budget $4,361,000
Total Transfer to Art in Public Places $43,610
BOARD / COMMISSION RECOMMENDATION
Staff presented this request for supplemental appropriation for the Project to the Council Finance Committee on
June 2, 2022, receiving a recommendation from the Committee (Attachment 4). Prior to construction, the Project
was presented to several boards and commissions including Council, Council Finance Committee, Downtown
Development Authority Board, and Transportation Board. Minutes from previous Board and Commission
meetings were attached to earlier City Council agenda items and updates regarding this Project.
PUBLIC OUTREACH
Prior to and during construction the Project has been presented at numerous public outreach events beginning
in 2019, including an open house held in December of 2021.
Project Funding TCEF CCIP - Project
Specific TOTAL Increase
Existing 400,000$ 3,461,000$ 3,861,000$
Proposed -$ 500,000$ 500,000$
Total 400,000$ 3,961,000$ 4,361,000$
Linden Street
Renovation 13%COPY
Agenda Item 8
Item # 8 Page 3
ATTACHMENTS
1. Engineering News Record, Construction Cost Index History – As of June 2022 (PDF)
2. Engineering News Record, City Cost Index – Denver – As of May 2022 (PDF)
3. Colorado Construction Cost Index Report (PDF)
4. Council Finance Committee Minutes (draft) (PDF) COPY
-1-
ORDINANCE NO. 074, 2022
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES AND AUTHORIZING TRANSFERS OF
APPROPRIATIONS FOR THE LINDEN STEET RENOVATION PROJECT AND
RELATED ART IN PUBLIC PLACES
WHEREAS, the Linden Street Renovation Project (the “Project”) was approved by City
Council to transform Linden Street between Jefferson and Walnut Streets into a “convertible
street” – a roadway that can be closed to vehicular and bicycle traffic and transformed into a
pedestrian gathering space during specialty events; and
WHEREAS, construction of this Project originally was planned to begin in 2020, with the
entire Project to be built at once; and
WHEREAS, due to the onset of the COVID-19 pandemic, construction was postponed and
broken into two phases to minimize impacts to the businesses within the footprint of the project;
and
WHEREAS, Phase 1 of the Project’s construction was completed in 2021, and Phase 2 of
construction began in February of this year, with completion anticipated in July; and
WHEREAS, City staff anticipated that splitting the project into two phases would result in
increased mobilization and oversight costs; accordingly, an additional $400,000 was appropriated
via a 2022 Budget for Outcomes offer to address this increase; and
WHEREAS, beginning in the Summer of 2021, the nation, the State of Colorado, and the
northern Colorado region began experiencing significant inflation in construction costs, reflected
in the two most recent Colorado Department of Transportation Colorado Construction Cost Index
reports, indicating annual percentage changes of 17.45% (Q4 2021) and 31.79% (Q1 2022); and
WHEREAS, these inflationary pressures impacted the Project as pricing was being
finalized for Phase 2 of construction in the Fall of 2021, resulting in price increases for many unit
price work items and an increase in overall costs of approximately $500,000 to deliver the
identified scope of work; and
WHEREAS, City staff has identified two options to reach project completion; and
WHEREAS, the first option would be to delay non-essential scope of work items until
additional funding can be secured by delaying construction of landscaping, irrigation, seat wall
caps, and outdoor furniture; and
WHEREAS, the second option would be to secure supplemental appropriation totaling
$500,000 at this time to meet the Project requirements; and
WHEREAS, approving a supplemental appropriation at this time is preferred because the
first option would result in the project not meeting the identified project goals within the promised
-2-
time frame, it would expose the remaining work to the likelihood of continued inflation of costs,
and it would negatively impact the schedule and budgets for other transportation capital projects
in the design, acquisition, and construction pipeline; and
WHEREAS, this appropriation benefits the public health, safety, and welfare of the
residents of Fort Collins and serves the public purpose of improving transportation infrastructure
within the City; and
WHEREAS, this Project involves construction estimated to cost more than $250,000 and,
as such, City Code Section 23-304 requires one percent of these appropriations to be transferred
to the Cultural Services and Facilities Fund for a contribution to the Art in Public Places program
(the “APP Program”); and
WHEREAS, the total project cost of $4,361,000 includes a prior appropriation of
$3,861,000 completed in the 2019-20 Budget, and the total project cost has been used to calculate
the required contribution to the APP program; and
WHEREAS, a contribution to the APP program in the amount of $38,610 was included in
the 2019-20 Budget; therefore, the amount to be contributed to the APP Program by this Ordinance
will be $5,000; 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 appropriations described
herein and determined that these appropriations are available and previously unappropriated from
the Community Capital Improvement Project Fund, and will not cause the total amount
appropriated in the Community Capital Improvement Program Fun, 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
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 $5,000 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; and
-3-
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.
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 FIVE HUNDRED THOUSAND DOLLARS
($500,000) to be expended in the Community Capital Improvement Program Fund for transfer to
the Capital Projects Fund for the Linden Street Renovation project and appropriated therein.
Section 3. That the unexpended and unencumbered appropriated amount THREE
THOUSAND NINE HUNDRED DOLLARS ($3,900) in the Capital Projects Fund is hereby
authorized for transfer to the Cultural Services and Facilities Fund and appropriated and expended
therein to fund art projects under the APP Program.
Section 4. That the unexpended and unencumbered appropriated amount of ONE
THOUSAND DOLLARS ($1,000) in the Capital Projects Fund is authorized for transfer to the
Cultural Services and Facilities Fund and appropriated and expended therein for the operation
costs of the APP Program.
Section 5. That the unexpended and unencumbered appropriated amount of ONE
HUNDRED DOLLARS ($100) in the Capital Projects Fund is authorized for transfer to the
Cultural Services and Facilities Fund and appropriated and expended therein for the maintenance
costs of the APP Program.
Section 6. That the appropriation herein for the Linden Street Renovation 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
-4-
Passed and adopted on final reading this 5th day of July, A.D. 2022.
Mayor
ATTEST:
City Clerk