HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/05/2022 - SECOND READING OF ORDINANCE NO. 075, 2022, APPROPR Agenda Item 5
Item # 5 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. 075, 2022, Appropriating Prior Year Re serves and Making Supplemental
Appropriations and Authorizing Transfers of Appropriations for the South Timberline Corridor and Related Art
in Public Places.
EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading on June 21, 2022, appropriates additional funding for
the South Timberline Corridor project (the “Project”). The Project is experiencing inflationary pressures and
the cost to complete the work now exceeds the appropriated budget requiring either : (1) reduction in scope of
the Project; (2) delay final delivery of the Project; and/or (3) secure 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 a total supplemental
appropriation of $2,332,770 to allow for completion of the Project as i ntended when construction commenced.
The total includes $2,148,000 in new funding plus $184,770 in developer contributions committed to the project
scope. This request is being made to Council now to avoid additional negative cost impacts due to potential ly
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. 075, 2022 (PDF)
Agenda Item 9
Item # 9 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. 075, 2022, Appropriating Prior Year Reserves and Making Supplemental
Appropriations and Authorizing Transfers of Appropriations for the South Timberline Corridor and Related Art
in Public Places.
EXECUTIVE SUMMARY
The purpose of this item is to appropriate additional funding for the South Timberline Corridor project (the
“Project”). The Project is experiencing inflationary pressures and the cost to complete the work now exceeds
the appropriated budget requiring either: (1) reduction in scope of the Project; (2) delay final delivery of the
Project; and/or (3) secure 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 a total supplemental appropriation of $2,332,770 to allow for completion
of the Project as intended when construction commenced. The total includes $2,148,000 in new funding plus
$184,770 in developer contributions committed to the project scope. 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, which is identified in the City’s Master Street Plan, will reduce congestion, improve safety, and
enhance bicycle and pedestrian facilities along the corridor between Stetson Creek Road and Zephyr Road. The
Project includes construction of a combination of buffered bike lanes and a raised multi-use path; new sidewalks
(currently there are no sidewalks in this corridor); multimodal intersection improvements at two intersections
(includes improved geometry, green striping for bicycles, and American with Disabilities Act (“ADA”) compliant
ramps and pushbuttons); and the Mail Creek Trail underpass with connections to Timberline Road and the future
Mail Creek Trail (a significant safety improvement for Bacon Elementary and future neighborhood park).
Construction was set for two phases. Phase 1 included the structural road elements and box culverts for the Mail
Creek Ditch and the Mail Creek Trail underpass. Phase 1 work began in December 2021 and is anticipated to
reach final completion in June 2022. Phase 2 work will include all remaining corridor improvements. Phase 2
was funded in part by a Surface Transportation Block Grant administered by the Colorado Department of
Transportation (“CDOT”). The grant requires a formal concurrence from CDOT before the City can advertise the
construction contract, but concurrence was not granted by CDOT until February of 2022.
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
ATTACHMENT 1
COPY
Agenda Item 9
Item # 9 Page 2
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 bids were
received in March 2022. Most unit price work items saw significant inflation over the estimated price, which
resulted in the lowest responsible bid exceeding the project budget by approximately $2,148,000.
Staff has identified three options to reach project completion (see Attachment 4 options exhibit):
• Option 1 (see Attachment 4 options exhibit) would be to remove elements from the Project design.
Removal of City-owned landscaping elements would reduce costs by $550,000 (Option 1A). Removal
of new traffic signal improvements at Kechter Road would reduce costs by another $520,000 (Option
1B). While the existing signal at Kechter Road may be utilized, it does not provide the amount of
clearance recommended for the corridor and will need to be replaced at some point in the near future to
improve ADA compliance.
• Option 2 would be to delay final delivery of the Project until additional funding can be secured.
Options 1 and 2 would result in the project not meeting the identified project goals within the promised time
frame, would expose the remaining work to the likelihood of continued inflation of costs, and would impact the
schedule and budget for other transportation capital projects in the design, acquisition, and construction pipeline.
• Option 3: Secure supplemental appropriation to complete the identified scope of work on schedule.
Figure 1 - Project Budget (Option 3)
Development related contributions to the Project totaling $184,770 are included in the proposed supplemental
appropriation. This additional funding request is intended to cover the costs of additional work performed for
adjacent development within the Project corridor. The additional funding request includes contributions for local
frontage along the Timberline corridor.
CITY FINANCIAL IMPACTS
The following is a summary of the current and proposed funding appropriations for the South Timberline Corridor
project.
Prior Appropriated Funds
TCEF Fund $4,701,111
CCIP Bicycle Pedestrian Grade Separated Crossing Fund $700,000
Bridge Program Fund $265,000
CCIP Pedestrian Sidewalk Fund $35,000
Transportation Fund $10,325
Surface Transportation Block Grant (STBG) $2,694,602
Total Prior Appropriation $8,406,038
Prior Transfer to Art in Public Places $23,930
Funds to be Appropriated with this Action
Development Contributions to Construction $184,770
Payment in Lieu (local road frontage) $156,773
Contribution in Aid of Construction (Mail Creek Ditch box culvert) $27,997
Project Funding STBG (Grant)Trans. Fund TCEF Gen. Fund Bridge
Program
CCIP - Art. Int.
Imp.
CCIP -
Ped/Bike Gr.
Sep. Cr.
CCIP - Ped.
Sid.Dev.TOTAL Increase
Existing 2,694,602$ 10,325$ 4,701,111$ -$ 265,000$ -$ 700,000$ 35,000$ 317,190$ 8,723,228$
Proposed -$ 200,000$ 774,000$ 774,000$ -$ 400,000$ -$ -$ -$ 2,148,000$
Total 2,694,602$ 210,325$ 5,475,111$ 774,000$ 265,000$ 400,000$ 700,000$ 35,000$ 317,190$ 10,871,228$
South Timberline
Corridor 25%COPY
Agenda Item 9
Item # 9 Page 3
TCEF Fund Reserves $774,000
General Fund Reserves $774,000
Transportation Fund Reserves $200,000
CCIP Arterial Intersections Fund $400,000
Total Funds to be Appropriated per this Action $2,332,770
Transfer to Art in Public Places per this Action $23,328
Total Current Project Budget $10,738,808
Total Transfer to Art in Public Places $47,258
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 (see Attachment 5). Prior to construction, the
Project was presented to several boards and commissions including City Council, Council Finance Committee,
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 staff met with several property owners individually and at open house
events. Staff continue to contact and meet residents, property owners, and other stakeholders through the
remainder of construction.
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. South Timberline Corridor Options (PDF)
5. Council Finance Committee Minutes (draft) (PDF) COPY
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ORDINANCE NO. 075, 2022
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES AND MAKING SUPPLEMENTAL
APPROPRIATIONS AND AUTHORIZING TRANSFERS OF APPROPRIATIONS FOR THE
SOUTH TIMBERLINE CORRIDOR AND
RELATED ART IN PUBLIC PLACES
WHEREAS, the South Timberline Corridor Project (the “Project”) is part of the City’s
Master Street Plan and was approved by City Council to reduce congestion, improve safety, and
enhance bicycle and pedestrian facilities along the corridor between Stetson Creek Road and
Zephyr Road; and
WHEREAS, the Project includes construction of a combination of buffered bike lanes and
a raised multi-use path, new sidewalks, multimodal intersection improvements at two
intersections, and the Mail Creek Trail underpass with connections to Timberline Road and the
future Mail Creek Trail; and
WHEREAS, construction of this Project was set for two phases; and
WHEREAS, Phase 1, which began in December 2021 and is expected to reach final
conclusion during June 2022, included the construction of structural road elements and box
culverts for the Mail Creek Ditch and the Mail Creek Trail underpass; and
WHEREAS, Phase 2 work includes construction of all remaining corridor improvements;
and
WHEREAS, Phase 2 was funded in part by a Surface Transportation Block Grant from the
North Front Range Metropolitan Planning Organization that is administered by the Colorado
Department of Transportation (“CDOT”); and
WHEREAS, the Grant requires formal concurrence from CDOT before the City can
advertise the construction contract, but said concurrence was not granted until February of 2022;
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 bids were received in
March 2022, increasing costs for most unit price work items and resulting in the lowest responsible
bid exceeding the project budget by approximately $2,148,000; and
WHEREAS, City staff has identified three options to reach project completion; and
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WHEREAS, the first option would be to remove elements from the Project design, such as
removal of City-owned landscaping elements (estimated reduction of costs by $550,000) and
removal of new traffic signal improvements at Kechter Road (estimated reduction of costs by
$520,000), although the existing signal at Kechter Road ultimately will need to be replaced in the
future to address shortcomings; and
WHEREAS, the second option would be to delay non-essential scope of work items until
additional funding can be secured; and
WHEREAS, the third option would be to secure supplemental appropriation totaling
$2,148,000 at this time to meet the Project requirements; and
WHEREAS, staff has recommended that Council make a supplemental appropriation at
this time because the first and second options would result in the project not meeting the identified
project goals within the promised time frame, would expose the remaining work to the likelihood
of continued inflation of costs, and 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
(“APP Program”); and
WHEREAS, a portion of the funds appropriated in this Ordinance for the South Timberline
Corridor Project are ineligible for use in the APP Program due to restrictions placed on them by
the Surface Transportation Block Grant administered by the Colorado Department of
Transportation; and
WHEREAS, the total project cost of $10,738,808 includes a prior appropriation of
$8,406,038 completed in the 2019-20 Budget, and the total project cost (excluding an
administrative error of $762,620 and the Surface Transportation Block Grant of $2,694,602) has
been used to calculate the contribution to the APP program; and
WHEREAS, a contribution to the APP program in the amount of $23,930 was included in
the prior appropriation; therefore, the amount to be contributed to the APP Program in this
Ordinance will be $23,328; 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
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WHEREAS, the Interim City Manager has recommended the appropriations described
herein and determined that these appropriations are available and previously unappropriated from
the Transportation Capital Expansion Fee Fund, General Fund, Transportation Fund, and the
Community Capital Improvement Program Fund, as applicable, and will not cause the total amount
appropriated in the Transportation Capital Expansion Fee Fund, General Fund, Transportation
Fund, and the Community Capital Improvement Program 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
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 $23,328 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
WHEREAS, the Interim City Manager has recommended the appropriation described
herein and determined that this appropriation is available and previously unappropriated from the
Transportation Services Fund and will not cause the total amount appropriated in the
Transportation Services 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 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 new revenue or other funds in the
Transportation Services Fund the sum of ONE HUNDRED EIGHTY-FOUR THOUSAND
SEVEN HUNDRED SEVENTY DOLLARS ($184,770) to be expended in the Transportation
Fund for transfer to the Capital Projects Fund for the Timberline South Corridor project and
appropriated therein.
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Section 3. That there is hereby appropriated from prior year reserves in the
Transportation Capital Expansion Fee Fund the sum of SEVEN HUNDRED SEVENTY-FOUR
THOUSAND DOLLARS ($774,000) to be expended in the Transportation Capital Expansion Fee
Fund for transfer to the Capital Projects Fund for the Timberline South Corridor project and
appropriated therein.
Section 4. That there is hereby appropriated from prior year reserves in the General
Fund the sum of SEVEN HUNDRED SEVENTY-FOUR THOUSAND DOLLARS ($774,000) to
be expended in the General Fund for transfer to the Capital Projects Fund for the Timberline South
Corridor project and appropriated therein.
Section 5. That there is hereby appropriated from prior year reserves in the
Transportation Fund the sum of TWO HUNDRED THOUSAND DOLLARS ($200,000) to be
expended in the Transportation Fund for transfer to the Capital Projects Fund for the Timberline
South Corridor project and appropriated therein.
Section 6. That there is hereby appropriated from prior year reserves in the Community
Capital Improvement Program Fund the sum of FOUR HUNDRED THOUSAND DOLLARS
($400,000) to be expended in the Community Capital Improvement Program Fund for transfer to
the Capital Projects Fund for the Timberline South Corridor project and appropriated therein.
Section 7. That the unexpended and unencumbered appropriated amount of
EIGHTEEN THOUSAND ONE HUNDRED NINETY-SIX DOLLARS ($18,196) 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 8. That the unexpended and unencumbered appropriated amount of FOUR
THOUSAND SIX HUNDRED SIXTY-FIVE DOLLARS ($4,665) 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 9. That the unexpended and unencumbered appropriated amount of FOUR
HUNDRED SIXTY-SEVEN DOLLARS ($467) in the Capital Project 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 10. That the appropriation herein for the Timberline South Corridor 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.
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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