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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/01/2003 - ITEMS RELATING TO THE SECOND SHEET OF ICE AT EPIC AGENDA ITEM SUMMARY ITEM NUMBER: 9 A-B DATE: April 1, 2003 FORT COLLINS CITY COUNCIL FROM: Jean Helburg SUBJECT : Items Relating to the Second Sheet of Ice at EPIC. RECOMMENDATION: Staff recommends adoption of the Ordinances on Second Reading. EXECUTIVE SUMMARY: A. Second Reading of Ordinance No. 043, 2003, Reauthorizing a Lease Agreement Between the City and Twice the Ice,Inc.,for the Use of Certain City Property at EPIC for the Sale of Advertising Space. B. Second Reading of Ordinance No. 044, 2003,Appropriating Unanticipated Revenue in the Building Community Choices Capital Projects Fund - EPIC Second Sheet of Ice Capital Project, Authorizing the Transfer of Related Art in Public Places Funds, and Increasing the Total Project Budget Accordingly. The second ice arena at Edora Pool Ice Center(EPIC)is scheduled for completion in March,2003. This project is a joint effort between the City through Building Community Choices (BCC) and Twice the Ice (TTI) a private fundraising group that agreed to raise 22% of the project costs. Ordinance No. 043, 2003, and Ordinance No. 044, 2003, were both unanimously adopted on First Reading on March 25, 2003. ORDINANCE NO. 043,2003 OF THE COUNCIL OF THE CITY OF FORT COLLINS REAUTHORIZING A LEASE AGREEMENT BETWEEN THE CITY AND TWICE THE ICE,INC., FOR THE USE OF CERTAIN CITY PROPERTY AT EPIC FOR THE SALE OF ADVERTISING SPACE WHEREAS, the City of Fort Collins is the owner of the property at 1801 Riverside Drive, Fort Collins,Larimer, County,Colorado,commonly known as the Edora Pool Ice Center("EPIC"); and WHEREAS,in 1997 the City Council authorized the City Manager,through Ordinance No. 199, 1997, to enter into a lease agreement with Twice the Ice, Inc ("TIT'), a not-for-profit 5016 corporation, to sell advertising at EPIC; and WHEREAS,M,Inc.has had,for the past five years and terminating on February 15,2003, an agreement with the City of Fort Collins, to use certain City property at EPIC for the sale of advertising space; and WHEREAS,the express purpose of this agreement was to allow TTI to use the space to help raise 22% of the total cost to complete a second ice arena at EPIC,a Building Community Choices project; and WHEREAS,TTI was successful in raising over$110,000 by selling advertising on the dasher boards and the ice resurfacer at EPIC over the five year period of the agreement; and WHEREAS, $206,502 remains in the Building Community Choices capital fund for the second ice arena; and WHEREAS, TTI wishes to extend its agreement with the City to sell advertising at EPIC through December 31, 2003; and WHEREAS,additional revenue from selling advertising atEPIC,along with otherTTI fund- raising, will be used to leverage the$206,502 in the Building Community Choices capital account for the second ice arena to pay for needed additional items at the new facility; and WHEREAS,TTI agrees to abide by the same requirements and procedures as were described in the initial lease agreement; and WHEREAS, under Section 23-114 of the Code of the City of Fort Collins, the Council is authorized to lease any and all interests in real property in the name of the City, provided that Council first finds the lease is in the best interests of the City; and WHEREAS, the Council, having considered the benefits to the City of the proposed lease arrangement that staff has negotiated with TIT, finds that the proposed agreement and the grant to Twice the Ice of the right to use certain portions of EPIC for the sale of advertising is in the best interests of the City. NOW,THEREFORE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the City Council hereby determines that reauthorization of the proposed Lease Agreement for use of certain positions of EPIC by Twice the Ice, Inc. for the sale and display of advertising for a term to commence at the time of signing of the agreement through December 31, 2003,is in the best interests of the City, and hereby authorizes the City Manager to enter into such agreement consistent with the terms hereof. Introduced,considered favorably on first reading,this 25th day of March,A.D. 2003,and to be presented for final passage on the 1st day of April, A.D. 2003. Mayor ATTEST: City Clerk Passed and adopted on final reading this 1st day of April, A.D. 2003. Mayor ATTEST: City Clerk . ORDINANCE NO. 044, 2003 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED REVENUE IN THE BUILDING COMMUNITY CHOICES CAPITAL PROJECTS FUND - EPIC SECOND SHEET OF ICE CAPITAL PROJECT, AUTHORIZING THE TRANSFER OF RELATED ART IN PUBLIC PLACES FUNDS, AND INCREASING THE TOTAL PROJECT BUDGET ACCORDINGLY WHEREAS, on April 8, 1997, the voters of the City approved Ordinance No. 31, 1997, authorizing the imposition of a quarter cent sales and use tax for the purpose of generating revenues to construct certain capital projects described in the"Building Community Choices"("BCC")capital improvement program; and WHEREAS,one such project approved for funding by the voters was the construction of a studio ice rink (the "Studio Ice Rink") at the Edora Pool &Ice Center("EPIC"); and WHEREAS,Ordinance No.31, 1997,requires that the proposed ice rink be smaller than the existing EPIC ice arena, and requires that it be added to enhance the EPIC facility to provide more ice time for programs such as the City's leam-to-skate program, figure skating, youth and adult hockey, and drop-in skating; and WHEREAS, pursuant to Ordinance No. 31, 1997, the construction of the EPIC Studio Ice Rink Project is expressly contingent upon a determination by the City Council that the City has received supplemental funding, or in-kind contributions, for such project from the private sector, having a value of at least 22%of the estimated cost of the project as determined by the City Council, and upon a further determination by the City Council as to whether to proceed with said project,after receiving a report and recommendation to proceed from the City Manager and the City's Financial Officer, no later than December 31, 2005; and WHEREAS,on November 20,2001,City Council adopted on second reading Ordinance No. 197, 2001 (the City's 2002 Adopted Budget),which included an appropriation of$3,273,801 from BCC sales and use tax proceeds for the construction of the second sheet of ice at EPIC; and WHEREAS, on February 5, 2002, City Council adopted on second reading Ordinance No. 11, 2002, whereby City Council determined that the conditions in Ordinance No. 31, 1997, for the construction of the Studio Ice Rink had been met,authorizing that construction be commenced,and appropriating $865,136 received from Twice the Ice, a private fund-raising group, through fund- raising efforts,in-kind contributions,and advertising proceeds earned through the sale of advertising on the dasher boards at EPIC; and WHEREAS, appropriation of the aforementioned private sector contributions, totaling $865,136, allowed the City to leverage its 78% share from BCC funds, totaling $3,067,299, and begin construction of the Studio Ice Rink, at a total cost of$3,932,435; and WHEREAS, since January 2002, Twice the Ice has continued its efforts, through fund- raising,in-kind contributions,and the sale of advertising,in order to raise an additional$58,244 in private sector funds and thus leverage the additional $206,502, in City BCC funds, needed to complete the Studio Ice Rink; and WHEREAS, Ordinance No. 011, 2002, further provided that if additional private contributions were raised prior to completion of final design for the Studio Ice Rink, City staff would return to the City Council to request that additional private donations be appropriated for the project, and to request that the City Council approve the increased project cost and expenditure of the additional $206,502 in order to provide for enhancement of the quality of the project using the additional BCC and privately donated funds; and WHEREAS,staff has determined that the additional funds in the total amount of $264,746, if available, will fund a number of enhancements to the Studio Ice Rink, including replacement of lost parking spaces by completion of new parking improvements,and the addition of rental lockers, a divider curtain and furnishings for the conditioning/meeting room, and spot lighting for the Art in Public Places artwork for the facility; and WHEREAS,Under Article V,Section 10 of the Charter,the City Council may,by ordinance, upon the recommendation of the City Manager, transfer any unexpended and unencumbered appropriated amount or portion thereof from one fund or capital project to another fund of capital project account provided that the purpose for which the transferred funds are to be expended remains unchanged or the proposed transfer is from a fund or capital project account in which the amount appropriated exceeds the amount needed to accomplish the purpose specified in the appropriation ordinance; and WHEREAS, pursuant to Section 23-304 of the City Code, one percent (1%) 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 and 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. 47, 1998; and WHEREAS,Article V,Section 9,of the Charter of the City of Fort Collins 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 then current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS,City staff has determined that the appropriation of the additional private sector contributions to be added with the previously appropriated BCC funds will not cause the total amount appropriated in the relevant funds 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 the sum of$58,244 in private sector funding, upon receipt from Twice the Ice, to be used with existing appropriations, totaling $206,502, to complete improvements associated with the construction of the Studio Ice Rink at EPIC,approve a new total project cost of the Studio Ice Rink of$4,197,181,in order to provide for enhancement of the quality of the project,and to provide funding for the City's Art in Public Places program by authorizing the transfer of$2,647 from the Capital Projects Fund Building Community Choices -EPIC Second Sheet of Ice capital project to the Art in Public Places Reserve Account in the Cultural Services and Facilities Fund. NOW,THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby determines that the total estimated cost of the Studio Ice Rink is Four Million One Hundred Ninety-Seven Thousand, One Hundred and Eighty- One Dollars ($4,197,181). Section 2. That the supplemental funding, or in-kind contributions, for the Studio Ice Rink from the private sector,having a value of at least 22%of the estimated cost of the project,must be received prior to expenditure of the previously appropriated additional BCC funds in the amount of$206,502. Section 3. That there is hereby appropriated for expenditure from unanticipated revenue in the Capital Projects Fund Building Community Choices - EPIC Second Sheet of Ice capital project the sum of FIFTY-EIGHT THOUSAND TWO HUNDRED FORTY-FOUR DOLLARS ($58,244), upon receipt, from private sector contributions thereon to be used with existing appropriations to complete improvements associated with the construction of the Studio Ice Rink at EPIC. Section 4. That the unexpended appropriated amount of TWO THOUSAND SIX HUNDRED FORTY-SEVEN DOLLARS($2,647)is hereby authorized for transfer from the Capital Projects Fund Building Community Choices -EPIC Second Sheet of Ice capital project to the Art in Public Places Reserve Account in the Cultural Services and Facilities Fund, and appropriated therein, to be used for art associated with the completion of improvements to the Studio Ice Rink at EPIC. i Introduced, considered favorably on first reading, this 25th day of March, A.D. 2003, and to be presented for final passage on the 1st day of April, A.D. 2003. :' — Mayor ATTEST: City Clerk Passed and adopted on final reading this 1st day of April, A.D. 2003. Mayor ATTEST: City Clerk AGENDA ITEM SUMMARY ITEM NUMBER: 13 A-C 10 FORT COLLINS CITY COUNCIL DATE: March 18, 2003 STAFF: Jean Helburg SUBJECT: Items Relating to the Second Sheet of Ice at EPIC. RECOMMENDATION: Staff recommends adoption of e Reso tion both Ord antes on First Reading. FINANCIAL IMPACT: This item appropriates an additional $58,244, upon receipt, in the Capital Projects Fund Building Community Choices(BCC)—EPIC Second Sheet of Ice capital project(the"Project"),representing additional private sector fundin rom Twice the Ice .he ap ropriation allows the City to leverage existing BCC appropriations, �taling$ <6150 e lti in do al Project cost of$4,197,181. In addition, the ordinance autho 1 es the t sfer $' 4 from e Project to the Cultural Services and Facilities Fund, for appropr t glethe b ed for AArt in Public Places program. EXECUTIVE SUMMARY: A. First Reading of Ordinance No. 043,2003,Reauthorizing a Lease Agreement Between the City and Twice the Ice, Inc., for the Use of Certain City Property at EPIC for the Sale of Advertising Space. B. First Reading of Ordi ce 44, 3 ppropri ng Unanticipated Revenue in the Building Community Choices Capt a Pr is Fund - IC Second Sheet of Ice Capital Project,Authorizing the Transfer of Related Art in Public Places Funds, and Increasing the Total Project Budget Accordingly. C. Resolution 2003-031 Approving Revisions to the Policy for Indoor Advertising at EPIC. The second ice arena at Edora Pool Ice Center(EPIC)is scheduled for completion in March, 2003. This project is a joint effort between the City through Building Community Choices (BCC) and Twice the Ice (TTI) a private fundraising group that agreed to raise 22% of the project costs. DATE: ITEM NUMBER: The project fund still contains $206,502 of BCC tax revenue. TTI has continued to actively raise funds to leverage these dollars for items that have not yet been funded and could still be included in the project. The Council-approved ad sales agreement with TTI on the dasher boards in the current rink expired on February 15, 2003. Businesses have expressed interest to TTI to advertise in the new rink. TTI would like to extend its agreement with the City to sell advertising to raise more funds to leverage the remainder of the BCC project money. Ordinance No.043,2003 would give authorization to TTI to sell advertising on the dasher boards and scoreboards in both rinks and the ice resurfacers until December 31, 2003 or until the $58, 244 is raised, for the express purpose of leveraging the remaining BCC money. At t t pgjnt h 't o o esponsibility for any and all advertising sales throughout t facili IL Ordinance No. 044, 2003, appropriates un nti pate !onations from Twice the Ice, not to exceed $58,244, as private contributions matching the remaining $206,502 in BCC project funds and increases the total project budget to include these additional funds. ,This funding would be used to complete the list of items described in the Background section. The Ordinance also transfers required funds for Art in Public Places to the Art in Public Places account. Resolution 2003-031 approves revisions to the EPIC indoor advertising policy to include the new rink in the policy and clarify some of the language. This update is needed regardless of TTI's interest in selling additional ads. BACKGROUND INFORLIONI In 1997, the voters approved Ordinance No. 31, 1997, which provided for a second 'ice rink at the Edora Pool Ice Center as part of the BCC capital improvement program. The Ordinance required a public/private partnership for this project,contingent upon the private sector providing funding or in-kind contributions for at least 22% of the estimated cost of the project. A private 501 (C)(3) fundraising group, Twice the Ice (TTI), stepped forward to raise the 22% private match. In November 2001, the City Council adopted the 2002 annual budget, which appropriated $3,273,801 from BCC tax revenues for this project. At City Council's direction,the City conducted a competitive RFP(Request fo rop pro ss a sig6uild firm to develop drawings and a cost estimate for the ect, w the d in g �t the project would continue to completion if the cost estimat as wt ht bud a Neena ompany was hired,and the initial project cost estimate was $3,9327 Approval of Ordinance No. 011, 2002 in early 2002 appropriated the TTI contribution of$865,136 and approved the spending of$3,067,299 from the BCC budget for a total of $3,932,435. This initiated the project. $206,502 remains in the BCC project fund, awaiting a possible 22% contribution from TTI($58,244) for completion of the project. The following chart represents the status of the fundraising efforts by the private sector and how the fundraising affects available City funds: DATE: ITEM NUMBER: PRIVATE CITY (BCC) MATCH FUNDS TOTAL Current Project Budget $865,136 $3,067,299 $3,932,435 Possible Additional Resources 58 244 206,502 264,746 Total $932,380 $3,273,801 $4,197,181 The easiest way to understand the private match requirement is that$1 donated by the private sector leverages approximately$3.5C- g C es t p 'ect. he maximum amount of BCC money appropriated for this p an be v isYeprivate 3,801. At this point, the private sector has leveraged$3,067,2 enue n 206,5ains to be leveraged. The total project budget, including the oj t.b dge nd the match and matched BCC funds, is $4,197,181. One percent of the newly available funds, or$2,647, is being transferred to II the Art in Public Places Account. TTI has continued to raise funds since last January 2002 to leverage the remaining project money. TTI will again sponsor and host an ice show this spring to feature the young EPIC figure skaters, with the proceeds going toward its fundraising efforts. Proceeds from the corporate tables at the 2002 ice show were donated to TTI. The group has been selling tiles for$100,to be installed on a designated wall in the new rink. gp_d_;e Valley Heal ste donated money to furnish and equip the first aid room. TTI has rec '"Lew n ki don io�o>pkteequipment and flags for the new rink. The group has also been n nteres r -vanous b businesses to advertise on the dasher boards and scoreboard in theee k. of thesebusinesses are also interested in advertising in both rinks. i Several issues arose during the project that added unplanned costs. Some of the major items included the following: • storm water and storm detention changes • a change in the power service to the building • a required upgrade to the fire alarm system that affected the entire building • additional pho n tQdoion Py The following items from the p -ect h3vcnding limitations. These items will be restored with the additional I'IIC funds: • Replacement of the parking on the east side of the building. The addition of the second rink eliminated 12 parking spaces. This parking would be replaced on the east side of Riverside Drive and is primarily for staff and service vehicles. • Rental lockers. These lockers will provide a lucrative revenue stream for the facility and will allow regular hockey players to leave their equipment at the facility. • Divider curtain for the conditioning/meeting room, which will greatly increase the usefulness of this room. • Furnishings for the conditioning/meeting room,vending/lobby area,referee's room, and skate staff room. • Spot lighting for the Art in Public Places artwork. DATE: marcn IS, 2uuj 4 ITEM NUMBER: The Parks and Recreation Board at its February 26, 2003, meeting reviewed and unanimously supported the two Ordinances,allowing TTI to continue to raise funds through December 31,2003, or until the group raises $58,244. Minutes from that Board meeting are attached(Attachment A). Advertising Policy Update On October 4, 1988,the City Council,by Resolution 88-126,adopted a policy for indoor advertising at Edora Pool Ice Center(EPIC) (Attachment B). The intent of the policy was to allow, but limit, advertising within the facility. The recommended revised adv po ' tac bi to the Resolution,is written to include the second ice rink. additi ,afte o It on the City Attorney's office, some wording changes have been de to f er advertisi of alcohol products to make the policy more clear, and to m ten ith othe imilaz City policies, such as the guidelines for advertising on bus benches. The Parks and Recreation Department is very cautious about allowing advertising in parks or recreation facilities where it detracts from the users'experience. Limitations on advertising in ice arenas is very common because of this effect. In the 16 years of EPIC operation, advertising has brought forth very few concerns. This revised advertising policy for EPIC w evie_ e n uppoged by the Parks and Recreation Board at its meeting on Dece r 4,200 Min es f t Bo d eeting are included(Attachment