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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/18/2008 - FIRST READING OF ORDINANCE NO. 034, 2008, APPROPRI ITEM NUMBER: 15 AGENDA ITEM SUMMARY DATE: March 18, 2008 FORT COLLINS CITY COUNCIL STAFF: Matt Baker Mike Herzig SUBJECT First Reading of Ordinance No. 034, 2008, Appropriating Unanticipated Revenue and Prior Year Reserves in the Street Oversizing Fund for Transfer to the Capital Projects Fund - Drake and Ziegler Road Improvements Project, Phase III For Construction of Road Improvements. RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. FINANCIAL IMPACT This Ordinance appropriates unanticipated revenue of$516,383 from the Contributions-in-Aid line item in the Street Oversizing Fund and transfers $1,824,462 from existing Street Oversizing appropriations into the Capital Projects Fund for the Drake and Ziegler Road Improvement Project. The funds are needed to construct the remaining roadway improvements for the Drake and Ziegler Road Project, Phase 3, from Environmental Drive to Horsetooth Road. The unanticipated revenue is from a Developer letter of credit from the Rigden Farm Development. This appropriation will provide the funds needed to proceed with construction of the roadway improvements immediately and construction will completed this fall. EXECUTIVE SUMMARY The arterial street improvements have been planned for the construction of Ziegler Road, from Environmental Drive south to Horsetooth Road (approximately 4,500 linear feet). This project is the third phase of the Drake and Ziegler Project,which began construction in 2005 with Drake Road from Timberline to Environmental Drive. A second phase completed drainage improvements last year. This is the third and final phase of improvements which will complete the arterial roadway. The Drake and Ziegler project has been a City project using funds from Street Oversizing Fees and developer contributions from Rigden Farm and Sidehill developments. BACKGROUND This project is the final phase of the Drake and Ziegler Project, which will realign Ziegler Road to the west side of the Fossil Creek Reservoir Inlet Ditch, and replaces the existing substandard one March 18, 2008 -2- Item No. 15 lane bridge on CR-13 (County Road 13,now named Ziegler Road). This portion is funded through the Street Oversizing Program and developer contributions. The first phase of the project, completed in 2005, constructed Drake Road from Timberline to Environmental Drive. The second phase of the project completed the earthwork and storm drainage improvements necessary to construct the realignment of Ziegler. The project included an outfall channel for storm water detention from the Rigden Pond 216 to the Poudre River. Funding for the outfall channel was from developer contributions from Rigden Farm and Sidehill developments. The outfall channel runs through the existing LaFarge gravel mining operation to the Poudre River. The project also included a bridge over the Fossil Creek Reservoir Inlet Ditch for access to the McDowell property, funded by developer contributions. This winter the City's Utility Department constructed a new trunk sewer line within the roadbed of the future Ziegler Road. The earthwork provided from Phase 2 of the project was required before the sewer could be installed. This sewer line has now been installed and the Utilities contractor is now vacating the site. In order to complete the construction of Ziegler Road this year, construction needs to proceed immediately. The City and the Rigden Farm Developers have been negotiating on the cost sharing agreements for several months. However several issues are not yet resolved. While negotiations over the final numbers for some of the public improvement items are close, further negotiations are necessary. A letter of credit,provided by the Developer of Rigden Farm in the amount of$659,438, was posted by the developers to ensure that monies would be available to cover the developer's share of the public improvement costs in the event they were needed to complete the project. Staff determined that in order to ensure that Ziegler Road improvements were built this construction season, it was necessary to draw on the letter of credit. The amount drawn was $516,383, the Developer's estimated share for the project. Staff will continue to negotiate with the developer of Rigden Farm over the remaining items. The remaining amount of the letter of credit will remain in the bank to cover any currently unanticipated needs . If the letter of credit had not been drawn,this project would not have been built this year. 4 Rigden Pond 2 4 Environ men Drake Road QO � Poudre River corridor C — 3 Roadway Project Limits CD Fossil tree Inlet Ditch (FRID ) LL McDowell ° Prop erty Pond 216 Outfall channel ( built 2007 ) Horsetooth Roa CD ----------- DrakeI Ziegler Phase Roadway Improvements W E City of FDA rallinw March 12 , 2008 ORDINANCE NO. 034, 2008 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED REVENUE AND PRIOR YEAR RESERVES IN THE STREET OVERSIZING FUND FOR TRANSFER TO THE CAPITAL PROJECTS FUND -- DRAKE AND ZIEGLER ROAD IMPROVEMENTS PROJECT, PHASE III FOR CONSTRUCTION OF ROAD IMPROVEMENTS WHEREAS, Phase I of the Drake and Ziegler Road Improvements Project resulted in the construction of improvements to Drake Road from Timberline Road east to Environmental Drive, including the widening of Drake Road to minor arterial street standards and the construction of the Environmental Drive connection; and WHEREAS, the Phase I improvements, constructed in 2005, also included the installation of curb-and-gutter, sidewalks, asphalt paving, bike lanes, and storm sewers; and WHEREAS, Phase II of the Drake to Ziegler Road Improvements Project resulted in the relocation of a portion of the Fossil Creek Reservoir Inlet Ditch ("FCRID") to accommodate the arterial roadway, the construction of a bridge over the FCRID, and the construction of an outfall channel from the existing Rigden Pond to the Poudre River; and WHEREAS, Phase III(the final phase)of the Drake to Ziegler Road Improvements Project will include the realignment of Ziegler Road to the west side of the FCRID and will replace the existing substandard one lane bridge on Ziegler Road; and WHEREAS, the estimated cost of the Phase III improvements is $2,340,847; and WHEREAS, to complete construction of Phase III appropriations totaling $2,340,847 are available in the form of developer contributions, totaling $516,384, and prior year reserves in the Street Oversizing Fund, totaling $1,824,463; and WHEREAS, Article V, Section 9, of the Charter of the City of Fort Collins (the "Charter") permits the City Council to make supplemental appropriations by ordinance at any time during the fiscal year,provided that the total amount of such supplemental appropriations,in combination with all previous appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS,Article V, Section 9,of the Charter also permits the City Council 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, City staff has determined that the appropriation of developer contributions, totaling $516,384, will not cause the total amount appropriated in the Street Oversizing Fund to exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, it is the desire of the City Council to appropriate unanticipated revenue ($516,384) and prior year reserves ($1,824,463) in the Street Oversizing Fund for transfer to the Capital Projects Fund - Drake and Ziegler Road Improvements capital project, for appropriation therein, to construct Phase III improvements of the Drake and Ziegler Road Improvement s Project. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That there is hereby appropriated from unanticipated revenue in the Street Oversizing Fund, the sum of FIVE HUNDRED SIXTEEN THOUSAND THREE HUNDRED EIGHTY-FOUR DOLLARS($516,384)for transfer to the Capital Projects Fund-Drake and Zeigler Road Improvements-Phase III capital project,and appropriated therein,to be used to construct Phase III improvements to Drake and Ziegler Roads. Section 2. That there is hereby appropriated from prior year reserves in the Street Oversizing Fund, the sum of ONE MILLION EIGHT HUNDRED TWENTY-FOUR THOUSAND FOUR HUNDRED SIXTY-THREE DOLLARS ($ 1,824,463) for transfer to the Capital Projects Fund - Drake and Ziegler Road Improvements Project - Phase III capital project, and appropriated therein, to be used to construct Phase III improvements to Drake and Ziegler Roads. Introduced, considered favorably on first reading, and ordered published this 18th day of March, A.D. 2008, and to be presented for final passage on the 1 st day of April, A.D. 2008. Mayor ATTEST: City Clerk Passed and adopted on final reading on the 1 st day of April, A.D. 2008. Mayor ATTEST: City Clerk