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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/05/2007 - SECOND READING OF ORDINANCE NO. 074, 2007, APPROPR ITEM NUMBER: 12 AGENDA ITEM SUMMARY DATE: June 5, 2007 FORT COLLINS CITY COUNCIL STAFF: Ken Mannon Marty Heffernan SUBJECT Second Reading of Ordinance No.074,2007,Appropriating Prior Year Reserves and Unanticipated Revenue Designated for Library Improvements in the Capital Improvement Expansion Fund and Prior Year Reserves in the General Fund for Transfer to the City's Capital Projects Fund to Construct a Southeast Branch Library. RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. EXECUTIVE SUMMARY This Ordinance,unanimously adopted on First Reading on May 15,2007,appropriates an additional $1.1 million for the branch library project. Staff is now estimating the cost of the branch library project,including furnishings,technology,books and materials at$6.6 million. This is$1.1 million more than previously estimated. Funding is available from library capital expansion impact fees, from library equipment and savings reserves and from donations to the library. Adoption of this Ordinance appropriates $1.1 million from these sources to the branch library project. Actual costs may be less than estimated. The City will only pay actual costs. Staff will work hard to contain actual costs without compromising the quality of the project. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary- May 15, 2007. ATTACHMENT 1 ITEM NUMBER: 26 A-B AGENDA ITEM SUMMARY DATE: May 15, 2007 FORT COLLINS r M FF: Ken Mannon Marty Heffernan SUBJECT Items Relating to the Southeast Branch Library. RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading and adoption of the Resolution. FINANCIAL IMPACT On March 6, 2007 Council ap pn Cd .. ql.o h pital expansion fees to design, construct, furnish and provide chnoloeria r asoutheast branch library. The cost of the project is now esti ted tn. Ad tion of Ordinance No. 074, 2007 appropriates an additional $1. mi on Of this amount, $479,613 is available from library capital improvement expansion(impact) fees,$339,304 is available from library equipment replacement and saving reserves, and $281,083 is available from donations made to the library. Library impact fees have been collected from new residential construction in Fort Collins since 1996. These fees are collected to pay for the impact of growth on the quality of library services. Funds must be spent within a reasonable time of collection (approximately 10 years) to provide library materials or facilities. Future equipment replacement needs of the library will be provided by the new library district. The ballot language creating the new library district authorized and provided funding for the district to operate the southeast branch library once it is constructed. The annual operating budget would be approximately$750,000 - $1,200,000 depending on staffing levels. EXECUTIVE SUMMARY 1. Resolution 2007-054 A on E Viontto the ompetitive Process for the City to Enter into a Contract with ayer Propertiehe Construction of the Southeast Branch Library. B. First Reading of Ordinance No. 074, 2007, Appropriating Prior Year Reserves and Unanticipated Revenue Designated for Library Improvements in the Capital Improvement Expansion Fund and Prior Year Reserves in the General Fund for Transfer to the City's Capital Projects Fund to Construct a Southeast Branch Library. May 15, 2007 -2- Item No. 26 A-B Resolution 2007-054 increases the amount of the sole source authorization for the City with Bayer Properties from $1.5 million to $2,219,176 for construction of the core and shell of the branch library. On March 6, 2007, Council adopted Resolution 2007-020, which provided sole source authorization up to $1.5 milli;n(Elo sh tythetilma now has better estimates from Bayer and from independent e co o i kelyexceed$1.5 million. The City will only pay for the acst this o butted cost of the work is now $2,219,176. �� Ordinance No.074,2007 appropriates an additional$1.1 million for the branch library project. Staff is now estimating the cost of the branch library project,including furnishings,technology,books and materials at$6.6 million. This is$1.1 million more than previously estimated. Funding is available from library capital expansion impact fees, from library equipment and savings reserves and from donations to the library. Adoption of this ordinance appropriates $1.1 million from these sources to the branch library project. Actual costs maybe less than estimated. The City will only pay actual costs. Staff will work hard to contain actual costs without compromising the quality of the project. At its meeting on May 7, 2007, the Library District Board of Trustees unanimously approved a motion supporting Council's adoption of the Resolution and Ordinance. BACKGROUND The City is working with Bayer rties t ' c ud l 7,400` e-foot library in the Front Range Village development. 16,000 square feet of the library will be located on the second floor of an attractive, centrally located building with 1,400 feet on the first floor. The first floor space will include a lobby,a stairway and two elevators. The library will be owned by the City and will provide convenient and much needed library services for the community. Area voters recently approved the new library district,including new funds to pay for the operation of the Southeast Branch Library. This branch will help meet the goals identified in the Library Capital Improvement Plan of four books per capita and .7 square feet per capita of library space by 2015. The library is currently at 2.56 books per capita and .4 square feet per capita. Resolution 2007-054 Bayer Properties has retained a t cti con r f 11 buildings in the Front Range Village development, includi the and el of a it ng the library will occupy. By coordinating the construction f the li' c ell ough Bayer, the City will realize efficiencies,benefit from econ s e e edite th mpletion of the library. The core and shell includes the foundation, walls, roof and associated elements of the building. Because Bayer's contractor will be constructing the first floor core and shell, it would be difficult and inefficient to bring in a separate contractor to build the core and shell for the second floor. Having two contractors working on the structure of the same building would also create significant coordination issues and cause confusion regarding responsibility for warranty work. The cost of the library's portion of the core and shell will be determined by the final design of the library space but is not anticipated to exceed $2,219,176. Under the City's agreement with Bayer, the City must May 15, 2007 -3- Item No. 26 A-B approve the design and all costs associated with construction of the core and shell on a line item basis. The City has hired an independent estimator to verify the reasonableness of all costs. Staff intends to utilize a compctltl'V&To e o cto o finish the library space. The finish work includes the entirCternior s ce o e br , ing from drywall and electrical to carpeting, lighting and shel • Partnering with Bayer on the Library project maximizes use of the impact fees designated for library services and materials. Bayer's contribution to the library project is substantial. • Bayer is providing the land for the library building and paying for the infrastructure costs associated with bringing necessary utilities and streets to the development and to the library building itself. • Bayer is also providing the adjacent parking lots and paying the associated offsite development costs and fees. • Operation Services has estimated that the cost savings to the City by partnering with Bayer is approximately 2.2 million dollars compared to the cost of the City building a stand alone branch library. Ordinance No. 074, 2007C, � Opy The City would use remaining library impact fees of $479,613, library equipment and savings reserves of$339,304 and library donations of$281,083 to pay for the estimated$1.1 million increase in cost for the design,construction and furnishing of the library,for library technology and forbooks and materials. Staff has determined the estimated increase in cost is reasonable based on the following: Data used to estimate cost numbers for the Development Agreement phase for the Southeast Branch Library were put together with conceptual drawings only in order to keep the agreement time-frame moving on track. The City commissioned Capstone Planning&Control to generate a"conceptual" estimate for the 16,000 square foot area before any of the library design for the core and shell was accomplished. The City also asked Bayer Properties for the unit cost per square foot estimate that Bayer would be using for retail/office space in the buildings in this development. Although Bayer's numbers were somewhat highe e' bets were the only itemized estimate staff had before the D lopiQ e w w and authorized. Bayer's unit cost estimate for retail/office space the s t$88 per uare foot. The Capstone numbers were somewhat less. After dra during reliminary design for the library core and shell, the City asked Bayer's general contractor to provide a detailed estimate of the core and shell costs based upon the design drawings. The current design area of the Southeast Branch Library has increased to 17,415 square feet with the inclusion of 1,415 square feet on the first floor dedicated for the library. The estimate came in at approximately$127 per square foot. With this new information in hand,Operations Services analyzed the estimated costs and discussed the estimate with Bayer and their general contractor Hoar Construction. In addition,we have done May 15, 2007 -4- Item No. 26 A-B unit price cost comparisons of other Libraries in our market area,specifically along the Front Range, and have consulted with our architect/engineer, Aller-Lingle and Associates relative to the costs. We believe the estimate received from Bayer at the$127 per square foot is reasonable and that these costs fall within an acceptable r r 1 s innr market area at this time. We are recommending that the bud t be br'o t up et e c t design estimated cost to produce the kind of project we can all we'rg oud t e as a Ci facility. The Development Agreement provides that the City will be paying actual costs for the library core and shell. The general contractor is required to provide the receipts showing this cost. Some notable facts concerning the current construction market and this particular project include: • Total cost of the Southeast Branch Library is estimated at $259 per square foot. (for construction only). • This cost falls within the range for Libraries nationwide adjusted for location. • Cost for the new Arvada Library is very comparable in price to the proposed Southeast Branch. • Construction cost escalation has been running as much as 30%above last year's prices,with the costs of concrete and steel being a primary driver. • Cost trends in the building industry continue to climb at an unprecedented rate. • Conceptual costs for a Vnom d-alo a libr including land, site costs, development fees, permits, etc in 2005 w d at 2 e q e f of so the City receives at least a $250 per square foot e r a st d faci that was estimated in 2005. It is anticipated that construction of the new library will be completed by fall of 2008. • .e P ORDINANCE NO, 074, 2007 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES AND UNANTICIPATED REVENUE DESIGNATED FOR LIBRARY IMPROVEMENTS IN THE CAPITAL IMPROVEMENT EXPANSION FUND AND PRIOR YEAR RESERVES IN THE GENERAL FUND FOR TRANSFER TO THE CITY'S CAPITAL PROJECTS FUND TO CONSTRUCT A SOUTHEAST BRANCH LIBRARY WHEREAS, on March 20, 2007, the City Council adopted Ordinance No. 037, 2007, appropriating prior year reserves in the Capital Improvement Expansion Fund designated for library capital improvements ($4.5 million) and prior year reserves in the General Fund ($1 million), for construction of a 17,400 square foot southeast branch library at the proposed Front Range Village (the"Branch Library"), and for the purchase of books and materials for that library; and WHEREAS, significant increases in the cost of construction materials and a more complete estimate of material needs has resulted in a revised cost estimate for construction of the Branch Library; and WHEREAS, the revised estimate to construct the Branch Library is$5.6 million,excluding the $1 million previously appropriated for the purchase of books and materials; and WHEREAS, staff recommends using the following sources to fund the additional $1.1 million needed for construction of the branch library: General Fund prior year reserves $ 620,387 Capital Improvement Expansion Fund prior year reserves designated for library capital improvements $ 394,198 Capital Improvement Expansion Fund unanticipated revenue 85,415 total $1,100,000 WHEREAS, the proposed General Fund prior year reserves ($620,387) to be used for this purpose consist of an appropriation from General Fund undesignated prior year reserves, totaling $339,304, and an appropriation from General Fund prior year reserves representing unspent and unencumbered general library donations, totaling$281,083; and WHEREAS,City Code Section 7.5-27(a)requires that librarycapital improvement expansion fee funds be used only for capital improvements related to the provision of general library services as those improvements may be identified in the capital improvements plan for library services; and WHEREAS, on May 19, 1998, the City Council adopted Resolution 1998-83 creating the Capital Improvements Plan for the library,which plan recommends that the library strive to provide 4.0 books per city resident and provide 0.7 square foot per capita; and WHEREAS, the construction of the Branch Library and the purchase of books and other library materials needed for the Branch Library are consistent with the Capital Improvements Plan; and WHEREAS, the request for appropriation of fees is consistent with the uses of the fees set forth in Chapter 7.5 of the City Code; and WHEREAS, Article V, Section 9, of the Charter of the City of Fort Collins(the"Charter") 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, Article V, Section 9, of the Charter also 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 forthat fiscal year, does not exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, staff has determined that the appropriation of 2007 Library Capital Expansion Fee revenue, as described herein, will not cause the total amount appropriated in the Capital Improvement Expansion Fund to exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, pursuant to Section 23-304 of the City Code, one percent of the funds appropriated for the construction of capital projects should be set aside in the Art in Public Places Reserve account in the Cultural Services & Facilities Fund, for use in the acquisition or leasing of works of art, maintenance, repair or display of works of art, and administrative expenses related to the Art in Public Places Guidelines adopted by Council in Ordinance No. 047, 1998; and WHEREAS, Article V, Section 10,of the Charter authorizes the City Council to transfer by ordinance any unexpended and unencumbered 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; and WHEREAS, it is the desire of the City Council to: (a)appropriate the sum of$620,387 from prior years reserves in the General Fund, $394,198 from prior year reserves designated for library capital improvements in the Capital Improvement Expansion Fund,and$85,415 from unanticipated revenue, in the form of 2007 Library Capital Expansion Fees, for transfer to the Capital Projects Fund - Southeast Branch Library project for construction of a branch library at the proposed Front Range Village; and (b) provide funding for the City's Art in Public Places program by authorizing the transfer of$56,000 from the Capital Projects Fund - Southeast Branch Library project, and $10,000 from the General Fund 2007 Library budget, to the Cultural Services & Facilities Fund. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: -2- Section 1. That there is hereby appropriated from prior year reserves in the General Fund, the sum of SIX HUNDRED TWENTY THOUSAND THREE HUNDRED EIGHTY-SEVEN DOLLARS ($620,387), for transfer to the Capital Projects Fund- Southeast Branch Library capital project,and appropriated therein,to be used with previously appropriated funds to construct a 17,400 square foot branch library at the proposed Front Range Village. Section 2. That there is hereby appropriated from prior year reserves designated for library capital improvements in the Capital Improvement Expansion Fund,the sum of THREE HUNDRED NINETY-FOUR THOUSAND ONE HUNDRED NINETY-EIGHT DOLLARS ($394,198), for transfer to the Capital Projects Fund - Southeast Branch Library capital project, and appropriated therein, to be used with previously appropriated funds to construct a 17,400 square foot branch library at the proposed Front Range Village. Section 3. That there is hereby appropriated for expenditure from unanticipated revenue in the Capital Improvement Expansion Fund, the sum of EIGHTY-FIVE THOUSAND FOUR HUNDRED FIFTEEN DOLLARS ($85,415), for transfer to the Capital Projects Fund- Southeast Branch Library capital project, and appropriated therein, to be used with previously appropriated funds, to construct a 17,400 square foot branch library at the proposed Front Range Village. Section 4. That the unexpended appropriated amount of FIFTY-SIX THOUSAND DOLLARS ($56,000) is hereby authorized for transfer from the Capital Projects Fund - Southeast Branch Library capital project to the Art in Public Places Reserve Account in the Cultural Services and Facilities Fund for appropriation therein to be used for purposes consistent with the City's Art in Public Places Program. Section 5. That the unexpended appropriated amount of TEN THOUSAND DOLLARS ($10,000) is hereby authorized for transfer from the General Fund 2007 Library budget to the Art in Public Places Reserve Account in the Cultural Services and Facilities Fund for appropriation therein to be used for purposes consistent with the City's Art in Public Places Program. Introduced and considered favorably on first reading and ordered published this 15th day of May, A.D. 2007, and to be presented for final passage on the 5th day of June, A.D. 2007. 4MayoC� ATTEST: City Clerk -3- Passed and adopted on final reading this 5th day of June, A.D. 2007. Mayor ATTEST: City Clerk -4-