HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/02/2012 - SECOND READING OF ORDINANCE NO. 078, 2012, AMENDINDATE: October 2, 2012
STAFF: Ellen Martin
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 19
SUBJECT
Second Reading of Ordinance No. 078, 2012, Amending Article XII of Chapter 23 of the City Code relating to Art in
Public Places.
EXECUTIVE SUMMARY
This Ordinance was adopted on First Reading on August 21, 2012 by a vote of 4-2 (Nays: Ohlson, Poppaw). At that
time, Council provided direction to staff and the Art in Public Places (APP) Board to reexamine the modification
included in the Ordinance that caps the total annual contribution to APP from each Utility Fund (Water, Waste Water,
Stormwater, and Light & Power) at $100,000. A revised Ordinance is being presented for Second Reading that
includes a revised cap option for Council consideration and approval.
BACKGROUND / DISCUSSION
On First Reading of this Ordinance, Council provided direction to staff and the Art in Public Places (APP) Board to
reexamine the modification to the APP program that caps the total annual contribution to APP from each Utility Fund
(Water, Waste Water, Stormwater, and Light & Power) at $100,000. APP, Utility staff and the APP Board reviewed
different options for the cap and are presenting for Council consideration on Second Reading a revised method of
calculating the Utility cap.
APP UTILITY CAP REVISION FOR SECOND READING
Art in Public Places continues as a 1% program, meaning City capital projects with a budget over $250,000 designate
1% of their project budget for art. The revised Ordinance for Second Reading includes the following APP cap for Utility
projects:
The APP Utility contribution cap would be set as .5% of each Utility’s annual budgeted Operating Revenue.
• Operating Revenue is made up of the payments received from the rate payer.
• Each Utility’s revenue from the rate payer varies in accordance with the size of that Utility; therefore the cap
would vary and be right-sized for each Utility fund.
• This option specifically limits the maximum impact to the rate payer to no more than .5% of the Operating
Revenue per Utility.
• Using a percentage allows the cap amount to potentially change over time, if Operating Revenue increases
or decreases, but never impact the rate payer more than .5%.
• The cap limits contributions from the largest Utility projects. For example, the Mulberry Water Reclamation
Project was budgeted at $25,650,000 in 2009. The uncapped APP contribution was $265,500. A cap
calculated at .5% of Wastewater Operating Revenue would have been $90,803 (.5% of $18,160,570 Operating
Revenue in 2009). Therefore the Wastewater APP contribution would have been capped at $90,803, a
reduction of $165,967. Other large projects that would have been or will be capped under this scenario are
the Spring Creek and Fossil Creek Basins; Canal Importation; Drake Water Reclamation Project; Halligan
improvements; or service center improvements.
The Average Cap at .5% of Operating Revenue, based on 2008-2012 actuals, would be:
Light & Power: $461,813*
Water: $130,425
Wastewater: $90,491
Stormwater: $68,348
*Because the Light & Power Operating Revenue is the highest of the four Utility Funds, averaging over $90 million
October 2, 2012 -2- ITEM 19
annually, the .5% cap is also the highest cap. A lower percentage cap on Light & Power could be considered. At .25%,
the average cap on Light & Power would be $230,906. Although still above the average Light & Power APP
contribution amount of approximately $73,836, the .25% cap would further limit potential Light & Power contributions
to APP.
In 2012, the total Utility Budget is $180,401,672 with Operating Revenues of $164,341,682. Art in Public Places actual
contributions were $100,266 or .019% of the total Utility Budget. Below are two tables showing the Utility Rate Payer
Typical Customer Bill for 2012 and 2013. The tables illustrate the relationship between APP and the rate payer bill,
based on actual and projected APP budgets and show the maximum impact to the rate payer if the .5% or .25% of
Operating Revenues caps is reached.
2012
2012 Rates APP Actual APP Maximum APP Cap
Typical Cost/Month per Rate Payer .5% of bill .25% of bill
Electric $ 59.68 $ 0.01 $ 0.30 $ 0.15
Water $ 33.66 $ 0.06 $ 0.17 $ 0.08
Wastewater $ 30.26 $ 0.04 $ 0.15 $ 0.08
Stormwater $ 14.26 $ 0.01 $ 0.07 $ 0.04
Monthly Total $ 137.85 $ 0.12 $ 0.69 $ 0.34
Annual Total $ 1,654.23
$
1.41 $ 8.27 $ 4.14
(1) Electric total of 8075 kWh over 12 months (2010 monthly average use)
(2) Water total of 98213 gallons over 12 months (2010 monthly average use)
(3) Wastewater 4600 Gallons Winter Quarter Water Use
(4) 8600 sq ft lot with light run off
2013
2013 Est. Rates APP Actual APP Maximum APP Maximum
Typical Cost/Month per Rate Payer .5% of bill .25% of bill
Electric $ 62.26 $ 0.01 $ 0.31 $ 0.16
Water $ 35.01 $ 0.07 $ 0.18 $ 0.09
Wastewater $ 30.26 $ 0.05 $ 0.15 $ 0.08
Stormwater $ 14.26 $ 0.02 $ 0.07 $ 0.04
Monthly Total $ 141.79 $0.15 $ 0.71 $0.35
Annual Total $ 1,701.48 $1.79 $ 8.51 $4.25
Average Increases for 2013: Electric 4.33%; Water 4.%; Wastewater 0%; Stormwater 0%
The revised Ordinance on Second Reading includes the .5% of Operating Revenue cap option. The following two
tables detail the past five years and next five years of Utility total budgets, Operating Revenue, actual or projected APP
contributions from capital projects, and both the .5% and.25% cap options with impacts to APP for comparison.
October 2, 2012 -3- ITEM 19
APP Utility Cap as .5% or .25% of Operating Revenue 2008-2012
2008 2009 2010 2011 2012 Total
Light &Power
Total Budget 100,843,892 95,792,694 107,246,097 106,977,193 112,752,791 523,612,667
Operating Revenue 83,752,596 86,957,098 91,213,692 95,892,159 103,997,211 461,812,756
Actual contribution to APP 138,815 49,256 142,835 16,950 21,326 369,182
APP as % of Total Budget .138% .051% .133% .016% .019% 0.071%
APP as % of Op Rev .166% .057% .157% .018% .021% 0.080%
Cap at .5% of Op Rev 418,763 434,785 456,068 479,461 519,986 N/A
Reduction to APP w Cap 000000
Cap at .25% of Op Rev 209,381 217,393 228,034 239,730 259,993 N/A
Reduction to APP w Cap 000000
Wastewater 2008 2009 2010 2011 2012
Total Budget 31,681,336 50,588,597 23,115,680 22,431,628 21,235,473 149,052,714
Operating Revenue 16,305,707 18,160,570 17,622,768 18,713,219 19,688,506 90,490,770
Actual contribution to APP 89,000 256,500 28,750 38,050 24,450 437,750
APP as % of Total Budget 0.281% 0.507% 0.124% 0.170% 0.120% 0.294%
App as % of Op Rev 0.546% 1.412% 0.163% 0.203% 0.129% 0.484%
Cap at .5% of Op Rev 81,529 90,803 88,114 93,566 98,443 N/A
Reduction to APP w Cap 7,471 165,697000 173,169
Cap at .25% of Op Rev 40,764 45,401 44,057 46,783 49,221 N/A
Reduction to APP w Cap 48,236 211,099000 259,334
Water 2008 2009 2010 2011 2012
Total Budget 30,618,969 40,031,414 32,851,744 30,370,924 32,063,681 165,936,732
Operating Revenue 26,789,947 25,430,648 26,448,689 25,008,022 26,748,036 130,425,342
Actual contribution to APP 35,850 123,550 72,400 40,600 47,000 319,400
APP as % of Total Budget 0.117% 0.309% 0.220% 0.134% 0.147% 0.192%
APP as % of Op Rev 0.134% 0.486% 0.274% 0.162% 0.176% 0.245%
Cap at .5% of Op Rev 133,950 127,153 132,243 125,040 133,740 N/A
Reduction to APP w Cap 000000
Cap at .25% of Op Rev 66,975 63,577 66,122 62,520 66,870 N/A
Reduction to APP w Cap 0 59,973 6,278 0 0 66,252
Stormwater 2008 2009 2010 2011 2012
Total Budget 17,470,888 16,644,536 15,723,422 14,229,352 14,349,727 78,417,925
Operating Revenue 13,328,099 13,588,955 13,724,845 13,798,078 13,907,929 68,347,906
Actual contribution to APP 73,650 66,650 37,100 32,100 7,400 216,900
APP as % of Total Budget 0.422% 0.400% 0.236% 0.226% 0.052% 0.277%
APP as % of Op Rev 0.553% 0.490% 0.270% 0.233% 0.053% 0.317%
Cap at .5% of Op Rev 66,640 67,945 68,624 68,990 69,540 N/A
Reduction to APP w Cap 7,0100000 7,010
Cap at .25% of Op Rev 33,320 33,972 34,312 34,495 34,770 N/A
Reduction to APP w Cap 40,330 32,678 2,788 0 0 75,795
October 2, 2012 -4- ITEM 19
APP Utility Cap as .5% or .25% of Operating Revenue 2013-2017
2013 2014 2015 2016 2017 Total
Light & Power
Total Budget 119,604,695 124,868,020 123,447,384 126,631,643 135,807,745 630,359,487
Operating Revenue 109,235,769 113,794,095 117,217,900 122,872,600 127,804,700 590,925,064
Projected contribution to APP 13,075 13,337 12,642 12,894 86,402 138,350
APP as % of Total Budget 0.011% 0.011% 0.010% 0.010% 0.064% 0.022%
APP as % of Op Rev 0.012% 0.012% 0.011% 0.010% 0.068% 0.023%
Cap at .5% of Op Rev 546,179 568,970 586,090 614,363 639,024 N/A
Reduction to APP w Cap 0 0 0 0 0 0
Cap at .25% of Op Rev 273,089 284,485 293,045 307,182 319,512 N/A
Reduction to APP w Cap 0 0 0 0 0 0
Wastewater 2013 2014 2015 2016 2017
Total Budget 22,471,641 21,190,275 22,078,143 22,350,465 20,529,664 108,620,188
Operating Revenue 19,450,506 19,524,904 20,110,651 20,713,971 21,335,391 101,135,423
Projected contribution to APP 33,563 39,864 50,000 50,000 30,000 203,427
APP as % of Total Budget 0.149% 0.188% 0.226% 0.224% 0.146% 0.187%
App as % of Op Rev 0.173% 0.204% 0.249% 0.241% 0.141% 0.201%
Cap at .5% of Op Rev 97,253 97,625 100,553 103,570 106,677 N/A
Reduction to APP w Cap 0 0 0 0 0 0
Cap at .25% of Op Rev 48,626 48,812 50,277 51,785 53,338 N/A
Reduction to APP w Cap 0 0 0 0 0 0
Water 2013 2014 2015 2016 2017
Total Budget 32,836,906 34,588,260 32,025,578 32,524,130 32,476,435 164,451,309
Operating Revenue 26,553,614 27,569,551 28,692,805 29,840,397 30,737,475 143,393,842
Projected contribution to APP 50,037 74,789 50,000 50,000 50,000 274,826
APP as % of Total Budget 0.152% 0.216% 0.156% 0.154% 0.154% 0.167%
APP as % of Op Rev 0.188% 0.271% 0.174% 0.168% 0.163% 0.192%
Cap at .5% of Op Rev 132,768 137,848 143,464 149,202 153,687 N/A
Reduction to APP w Cap 0 0 0 0 0 0
Cap at .25% of Op Rev 66,384 68,924 71,732 74,601 76,844 N/A
Reduction to APP w Cap 0 5,865 0 0 0 5,865
Stormwater 2013 2014 2015 2016 2017
Total Budget 13,857,411 14,046,997 12,343,383 13,553,945 12,971,959 66,773,695
Operating Revenue 13,853,000 13,974,000 14,043,870 14,114,089 14,184,659 70,169,618
Projected contribution to APP 23,129 25,040 26,857 27,394 27,942 130,361
APP as % of Total Budget 0.167% 0.178% 0.218% 0.202% 0.215% 0.195%
APP as % of Op Rev 0.167% 0.179% 0.191% 0.194% 0.197% 0.186%
Cap at .5% of Op Rev 69,265 69,870 70,219 70,570 70,923 N/A
Reduction to APP w Cap 0 0 0 0 0 0
Cap at .25% of Op Rev 34,633 34,935 35,110 35,285 35,085 N/A
Reduction to APP w Cap 0 0 0 0 0 0
October 2, 2012 -5- ITEM 19
UPDATES TO “ACCOUNTS ESTABLISHED” FOR SECOND READING
APP worked with Finance to address the non-lapsing status of APP projects to improve accountability and
transparency. This change was primarily addressed through an administrative policy change; however, in making the
changes as requested, Finance is recommending some updates to the APP Code to accurately reflect the accounting
process, update terminology, and make section titles clearer and more easily understood.
The updates recommended for consideration on Second Reading are as follows:
• 23-302 Definitions: remove the “APP reserve account” definition and add the new defined term “cost center”
to accurately describe the fund for APP. Also remove the wording “reserve account” throughout the Ordinance.
• 23-303 Accounts Established: retitle this section to “Accounting Methods” and revise language in the Code
to explain where the money is going, use current terminology, and reflect the administrative change of budgets
for works of art as non-lapsing. Administration and maintenance budgets will remain as lapsing. Utility funds
will still be held separately, but the wording is updated.
• Change the headings for Sections 23-304, 23-305, 23-306 to more accurately reflect the three program levels
of APP.
FINANCIAL / ECONOMIC IMPACTS
Implementing a cap on APP contributions from each Utility Fund (Water, Waste Water, Stormwater, Light and Power)
as a calculation of .5% of the budgeted Operating Revenues in each fund will reduce the contributions from Utility
Capital Projects to APP. If the .5% of Operating Revenue cap were in place from 2008-2012, $180,179 would not have
been contributed to the APP program from Utility capital projects, a reduction of 13%.
Compared to the $100,000 cap proposed on First Reading, had it been in place for the same time period, $261,700
would not have been contributed to APP from Utility capital projects.
Looking ahead (2013-2017) at the projected Utility capital projects, if the .5% of Operating Revenue cap is in place,
APP Utility budgets will fall well below the projected cap amount, unless new projects are added.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
BOARD / COMMISSION RECOMMENDATION
The APP Board reviewed the revised Cap option at its September 19, 2012 meeting. The APP Board supports the
.5% of Operating Revenue Cap as presented in the revised Ordinance. The APP Board’s recommendation is attached.
ATTACHMENTS
1. Copy of First Reading Agenda Item Summary - August 21, 2012 (w/o attachments)
2. APP Board Memo Recommendation
3. APP Board Draft Minutes, September 19, 2012
4. Powerpoint presentation
COPY
COPY
COPY
COPY
ATTACHMENT 1
DATE: August 21, 2012
STAFF: Ellen Martin
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 18
SUBJECT
First Reading of Ordinance No. 078, 2012, Amending Article XII of Chapter 23 of the City Code relating to Art in Public
Places.
EXECUTIVE SUMMARY
At the January 24, 2012 Council Work Session, Council reviewed the Art in Public Places (APP) program and
requested that staff develop several modifications to address Council concerns with the program. Staff has identified
proposed changes, additions and clarifications to the program to address Council concerns that require revisions to
Article XII of Chapter 23 of the City Code relating to Art in Public Places.
BACKGROUND / DISCUSSION
Section 23-303 of the City Code, added in 1995, established the Art in Public Places Reserve Account, and designated
it for use in acquiring or leasing works of art, maintenance, repair or display of works of art, and administrative
expenses related to the Art in Public Places Program, in accordance with the Art in Public Places Guidelines adopted
by Ordinance No. 020, 1995. The Council permanently adopted the Art in Public Places Program, and reenacted City
Code Chapter 23, Article IX, with certain modifications in 1998.
At the January 24, 2012 Council Work Session, Council reviewed the Art in Public Places (APP) program and
requested staff develop modifications to the program to address Council concerns.
The following changes, additions, and clarifications are proposed to Article XII of Chapter 23 of the City Code relating
to Art in Public Places:
1. Modify the definition of a “construction project” in the City Code to reduce ambiguity and exempt non-
traditional capital projects from the APP program. The proposed change would exclude vehicles, and
equipment not affixed to public property, excluding projects like advanced metering and bus acquisitions.
2. Amend the City Code to remove the requirement to fully fund the 1% contribution from non-restricted funding
sources when there are project funding sources that cannot be used for art. For example, under the current
Code, if 50% of a capital project is funded by a Federal grant that cannot legally be used for art, 1% of the total
project cost would be contributed to APP from the unrestricted 50% funding source. With the proposed
modification, the APP contribution would be 1% of the unrestricted project funds.
3. Reduce the level of Utility contributions to APP by amending the City Code to cap the total annual contribution
to APP from each Utility Fund (Water, Waste Water, Stormwater, and Light & Power) at $100,000. Utility
contributions represent approximately 75% of the APP program revenue (estimated over the five year period
of 2006 – 2010). The proposed $100,000 annual cap equates to a 24%reduction in Utility APP funding and
an estimated 18% reduction to the total program for the same time period. By implementing this modification,
APP will have less funding for projects. Examples of projects that would likely not be funded include the
Linden/Willow pocket park with a water feature and the Fort Collins Museum of Discovery Utility based exhibits
now in development.
Staff explored several other options for limiting the level of Utility contributions to APP through various cap
options, eliminating underground projects from contributing, or requiring integration of art into functional project
elements. Staff recommends the Utility Cap as the most straightforward way of addressing changes to Utility
contributions to APP. This option provides a clear and discernable contribution amount and avoids the
inherent difficulty of determining the amount of the contribution under the other options.
4. Fix a long-standing issue with the City Code by clarifying that monies credited to APP Utility reserve accounts
may be expended on maintenance, repair or display of art, and expenses of administering utility –funded APP
COPY
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August 21, 2012 -2- ITEM 18
projects.
APP staff is also working with Finance to address the non-lapsing status of APP projects to improve accountability and
transparency. This will be addressed through a proposed administrative policy change, and is not included in the
Ordinance.
FINANCIAL / ECONOMIC IMPACTS
Implementing the $100,000 annual contribution cap for each Utility Fund (Water, Waste Water, Stormwater, Light and
Power) reduces APP funding, particularly for projects that are not located on the project site. The $100,000 cap
equates to a 24% reduction in Utility APP funding and an estimated 18% reduction to the total program. Projects like
the Linden/Willow pocket park with a water feature that is now in development may not be possible in the future with
reduced funding. Other Utility APP projects may be delayed or reduced in scope, such as the Water Weir Wall (Water
Restoration Project) and the Pickle Plant site.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BOARD / COMMISSION RECOMMENDATION
The APP Board reviewed the proposed changes as submitted by staff. The APP Board does not recommend the
capping of Utility contributions. The APP Board’s recommendation is attached.
ATTACHMENTS
1. Work Session Summary, January 24, 2012
2. APP Board Memo Recommendation
3. APP Board Minutes, July 18, 2012
4. Cultural Resources Board memo, August 15, 2012
1
Cultural Services
Art in Public Places
Lincoln Center
417 W. Magnolia St
Fort Collins, CO 80521
970.416-2789
970.221-6373 – fax
www.fcgov.com/artspublic
To: Mayor and Councilmembers
From: Art in Public Places Board
Date: September 26, 2012
RE: Amending Article XII of Chapter 23 of the City Code relating to Art in Public Places
Second reading
Dear Fort Collins Mayor and City Council Members,
The Art in Public Places (APP) Board and Staff have worked, as directed by Council at the
August 21st Council meeting, to find a nuanced yet effective process for capping Utility fund
contributions to the APP program. With considerable input from the Utility Finance staff we, the
APP Board, support the recommendation to cap the APP contribution of each Utility at 0.5
percent of each Utility’s annual budgeted operating revenue. While the APP Board would prefer
no-cap, we feel the 0.5 percent cap is a reasonable compromise.
We also feel it is important to remind the Council that considerable effort went into the
development and inception of the APP Program to help create a world-class creative community
in Fort Collins. We are concerned that short term fiscal issues will hobble the APP program
directly and the goals of the community in general.
With the change in the APP accounting process and the Utility fund caps the APP Board feels
we have met the goals laid out by City Council as well as staying true to the goals of the
community as expressed in the last citizen’s survey and by the latest vote to keep Fort Collins
great.
Thank you,
The 2012 Fort Collins Art in Public Places Board
York, Dwight Hall, Shelby Sommer, Jane Nevrivy, Liliane Francuz, Liz Good, and Jill Kreutzer
CC: Ellen Martin, Jill Stillwell, Marty Heffernan
ATTACHMENT 2
ART IN PUBLIC PLACES MINUTES
Wednesday, September 19, 2012
Lincoln Center Columbine Room
Council Liaison: Lisa Poppaw Staff Liaison: Ellen Martin
Chairperson: York Vice Chair: Dwight Hall
MEMBERS PRESENT: Liz Good, Jane Nevrivy, York, Liliane Francuz, Jill Kreutzer
MEMBERS ABSENT: Dwight Hall, Shelby Sommer
STAFF PRESENT: Ellen Martin, Anne Bossert, Jill Stilwell,
CRB LIAISON: Carol Ann Hixon, absent
I. Call to order: 3:33 p.m. by Mr. York
II. Consideration of the current agenda
III. Review of Minutes from August and Special September meetings
Discussion was had regarding a clarification in the August minutes.
Ms. Nevrivy moved to accept the minutes with the discussed changes.
Ms. Francuz seconded the motion.
Unanimously approved
IV. Citizen Participation
Ms. Stilwell introduced the intern who is helping with a research project.
V. APP Work Session Follow-up
The Board discussed questions from City Council from the August 21 meeting. Ms. Stilwell joined the
discussion to give the board an overview of considered options of a more logical and nuanced cap on future
APP Utility contributions. After meeting with Utility finance staff, APP staff is working on information to
give Council regarding a .5% cap on the annual operating revenue, which is revenue from the rate payer.
This would allow the cap to fluctuate between each year and specific utility funds. Ms. Stilwell discussed
how this would affect the APP contributions in the past and future years. The board discussed this proposed
change and the other changes listed in the Agenda Item Summary. The board suggested inviting Utility
Finance staff to the City Council meeting to help answer Utility budget questions.
The board discussed sending a memo to Council in support of the APP Program and the suggested APP
Utility contribution cap at 0.5% of each Utility’s annual budgeted operating revenue as defined in the
Agenda Item Summary. The board discussed the importance of this memo because they have changed their
position.
Ms. Kreutzer moved to express support of the 0.5% cap as discussed for the City Council meeting on Oct. 2
by having Mr. York write a letter of support as Chair, with Mr. Hall as Vice Chair corroborating,
authorizing them to write and submit on the board’s behalf.
Ms. Good seconded the motion.
Unanimously approved
ATTACHMENT 3
1
1
Second Reading of
Amendments to
Article XII of Chapter 23
of the City Code
Relating to Art in Public Places
City Council Meeting
October 2, 2012
2
First Reading of Ordinance No. 078, 2012
Council approved the following modifications:
• Redefine “construction project” in the City Code to reduce
ambiguity and exempt non-traditional capital projects, like
advanced metering
• Remove the requirement to fully fund the 1% APP
contribution from non-restricted funding when other project
funding sources cannot be used for art
• Although approved, Council directed staff and the APP
Board to reexamine the proposed flat $100,000 cap on
Utility APP projects, and find a more nuanced approach
between First and Second Reading.
• Other minor fixes
ATTACHMENT 4
2
3
Changes for Second Reading
Cap Utility contributions to APP at .5% of each Utility’s annual
budgeted Operating revenue.
Operating Revenue is made up of the payments received
from the rate payer
Each Utility’s revenue from the rate payer varies in
accordance with the size of that Utility; therefore the cap
would vary and be right-sized for each Utility fund
Specifically limits the maximum impact to the rate payer
Cap amount can change over time, as Operating Revenue
changes (but never more than .5%)
Limits contributions from the largest Utility Projects
4
Approximate Cap Amounts
Average Cap at .5% of Operating Revenue, based
on 2008-2012 actuals:
Light & Power: $461,813*
Water: $130,425
Wastewater: $90,491
Stormwater: $68,348
* A cap at .25% of Operating Revenue for Light & Power would
average $230,906
3
5
Impact of the New Cap
• Limit impact to Utility Rate Payer Standard Customer Bill to
$0.71 maximum a month (2013). 2013 actual APP is
anticipated at $0.15 per month.
• If new cap had been in place 2008-2012, $180,179 would
not have been contributed to APP from Utility capital
projects (or a reduction of 13%).
• In 2013-2017, projected Utility Capital projects show the
APP Utility budgets will fall well below the projected cap
amounts unless new projects are added.
6
Changes to “Accounts Established”
for Second Reading
Finance is recommending updates to accurately reflect the
accounting process and current financial terminology:
• 23-302 Remove “reserve account” and add “cost center”
• 23-303 Revise “Accounts Established” to “Accounting
Methods”; update terminology, reflect financial process and
change budgets for works of art as non-lapsing
• 23-304, 305, 206 Change section headings
ORDINANCE NO. 078, 2012
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING ARTICLE XII OF CHAPTER 23 OF THE CITY CODE
RELATING TO ART IN PUBLIC PLACES
WHEREAS, on April 25, 1995, the City Council adopted Ordinance No. 020, 1995,
establishing the Art in Public Places (APP) Program, adopting the Art in Public Places Guidelines,
and setting goals and requirements for the acquisition, maintenance and exhibition of public art by
the City; and
WHEREAS, On April 7, 1998, the City Council adopted Ordinance No. 047, 1998, which
reenacted the APP Provisions of the City Code with certain modifications; and
WHEREAS, at the January 24, 2012 Council Work Session, the City Council reviewed the
APP Program and asked staff to develop some modifications to the Program to address City Council
concerns related to the types of City projects that are required to contribute to the Program; and
WHEREAS, City staff is proposing several amendments to the APP provisions in Article XII
of Chapter 23 of the City Code; and
WHEREAS, the proposed amendments would exempt certain types of construction projects
from the APP requirements, and would reduce the level of Utility contributions to the Program; and
WHEREAS, an additional recommended changes would clarify the uses for which Utility
APP funds may be spentupdate the description of how APP funds are accounted for, and would
revise the titles of several City Code sections to make them clearer and more accurate; and
WHEREAS, the Council desires to amend Article XII of Chapter 23 of the City Code as
provided herein.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the definition "APP reserve account" contained in Section 23-302 of the
Code of the City of Fort Collins is hereby deleted in its entirety as follows:
APP reserve account shall mean the art in public places reserve accounts established
by this Article.
Section 12. That the definition of "Construction project" contained in Section 23-302 of
the Code of the City of Fort Collins is hereby amended to read as follows:
Construction project shall mean the construction, rehabilitation, renovation,
remodeling, or improvement of any building, structure, street, sidewalk, park, utility
or other public improvement by or for the City, including all associated landscaping,
parking, design, engineering, equipment or furnishings for such improvement, and
all other costs, but excluding the cost of real property acquisition, vehicles,
equipment not affixed to public property, and any improvements made by any special
improvement district.
Section 3. That Section 23-302 of the Code of the City of Fort Collins is hereby amended
by the addition of a new definition of "Cost center" which reads in its entirety as follows:
Cost center shall mean a group of related accounts in the general ledger system
maintained by the Finance Department.
Section 2. That Section 23-303(b) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 23-303. Accounts established.
. . .
(b) There are hereby established separate reserve accounts within the light and
power fund, the sewer fund, the water fund and the storm drainage fund to be known
as the APP reserve account for each such fund. Said reserve accounts shall be
credited with such funds as the City Council may determine and with all funds from
§ 23-304 that are paid by the utility for which said fund was established. The amount
paid into each such reserve account shall be capped at one hundred thousand dollars
($100,000) per year. Monies credited to such reserve accounts shall be expended
only for the acquisition or lease of works of art that provide a betterment to such
utility or that are otherwise determined by the City Council to be for a specific utility
purpose that is beneficial to the rate payers of such utility; or for the maintenance,
repair or display of such works of art; or to defray the expenses of administering
utility-funded APP projects. Any limitations in other provisions of this Code on the
purposes for which monies in the light and power fund, the sewer fund, the water
fund or the storm drainage fund may be used shall not prohibit the use of monies in
the APP reserve account for such fund from being expended for the acquisition or
lease of works of art or for the maintenance, repair or display of works of art.
Section 4. That Section 23-303 of the Code of the City of Fort Collins is hereby amended
to read as follows:
Sec. 23-303. Accounts establishedAccounting methods.
(a) There is hereby established a reserve account within the cultural services and
facilities fund to be known as the APP reserve account. Said reserve account shall
be credited with such funds as the City Council may determine; with all funds from
§ 23-304, except funds from the light and power, water and wastewater or
stormwater utilities; and with all funds received by the City for art in public places,
whether contributed, earned, secured through grants or otherwise obtained. Monies
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credited to such account shall be expended only for the acquisition or lease of works
of art, the maintenance, repair or display of works of art, and the expenses of
administration of this Article.Cost centers shall be established by the Finance
Department in the appropriate funds to account for program contributions and
spending. Monies remaining at the end of each year shall be accounted for in the
appropriate fund balance accounts. Revenue and expenses for the acquisition or
lease of works of art will be kept in separate cost centers from those that pertain to
program administration, maintenance, repairs, and display costs.
(b) There are hereby established separate reserve accounts within the light and
power fund, the sewer fund, the water fund and the storm drainage fund to be known
as the APP reserve account for each such fund. Said reserve accounts shall be
credited with such funds as the City Council may determine and with all funds from
§ 23-304 that are paid by the utility for which said fund was established. Monies
credited to such reserve accounts shall be expended only for the acquisition or lease
of works of art that provide a betterment to such utility or that are otherwise
determined by the City Council to be for a specific utility purpose that is beneficial
to the rate payers of such utility, and for the maintenance, repair or display of such
works of art. Any limitations in other provisions of this Code on the purposes for
which monies in the light and power fund, the sewer fund, the water fund or the
storm drainage fund may be used shall not prohibit the use of monies in the APP
reserve account for such fund from being expended for the acquisition or lease of
works of art or for the maintenance, repair or display of works of art.Budgets for the
acquisition or lease of works of art will be non-lapsing. Budgets for the
maintenance, repair, display and administration of the APP program will lapse at the
end of each year.
(c) Contributions to APP for each Utility will be kept and spent in such Utility’s
own fund, with the exception of maintenance, administration, repair and display
costs. Each Utility fund will pay its share of maintenance, administration, repair and
display costs annually to the APP program cost center in the Cultural Services and
Facilities Fund.
Section 35. That Section 23-304 of the Code of the City of Fort Collins is hereby amended
to read as follows:
Sec. 23-304. Funds for works of artConstruction projects greater than
$250,000.
(a) Subject to the cap on funding for each utility reserve account as provided in
§23-303(b), aAll requests submitted to the City Council for appropriations for
construction projects estimated to cost over two hundred and fifty thousand dollars
($250,000.) shall include an amount equal to one (1) percent of the estimated cost of
such project for works of art. This requirement shall also apply to appropriations
partially funding a project that will have a total estimated cost of over two hundred
and fifty thousand dollars ($250,000.) even if such individual appropriations are
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equal to or less than said amount. When the City Council approves the appropriations
for any such project, one (1) percent of the appropriated amount shall be deposited
into the appropriate reserve accountcost center. If any construction project is
partially funded from any source which precludes a work of art as an object of
expenditure of such funds, the appropriation for works of art shall be equal to one (1)
percent of the portion of the estimated project cost that will be funded from project
funding sources that are not so restricted. Money collected in the APP reserve
accountcost centers shall be expended by the City for projects as prescribed by the
APP Guidelines.
(b) The amount of annual contributions to the APP program from each Utility
fund shall be limited to one-half (.5) percent of the budgeted operating revenue in
such Utility fund for that year.
Section 6. That the title of Section 23-305 of the Code of the City of Fort Collins is
hereby amended to read as follows:
Sec. 23-305. Project designConstruction projects between $50,000 and
$250,000.
Section 7. That the title of Section 23-306 of the Code of the City of Fort Collins is
hereby amended to read as follows:
Sec. 23-306. Incorporating art in purchasesConstruction projects under
$50,000 and purchases.
Section 8. That Section 23-308 of the Code of the City of Fort Collins is hereby amended
to read as follows:
Sec. 23-308. Acquisition of works of art.
The APP Board shall make recommendations to the City Council concerning the use
of reserve account funds in excess of ten thousand dollars ($10,000.) for the
acquisition, installation and maintenance of works of art. The construction project
from which the reserve account funds were generated should generally be the site
where the funds will be used. However, funds may be expended at other sites when
the APP Board determines such expenditure is appropriate based on the
considerations set forth in the guidelines. The APP Board may appoint a selection
committee to make recommendations to the APP Board concerning the selection of
artists, works of art and the placement of works of art. The selection committee may
include artists, architects, City representatives and members of the public.
Section 9. That Section 23-309 of the Code of the City of Fort Collins is hereby amended
to read as follows:
Sec. 23-309. Acquisition of donated artwork.
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All works of art with a value of three hundred dollars ($300.) or more donated to the
City to be placed in a public area may be accepted only with approval of the APP
Board, and all such works with a value of ten thousand dollars ($10,000.) or more
may be accepted only with approval of the City Council, upon review of such
proposed donation and the recommendation of the APP Board. The City shall accept
ownership and responsibility for maintenance only of works of art that meet the
objectives of the APP Program, and the criteria for works of art and site selection set
forth in the APP Guidelines. Funds for the installation and maintenance of donated
works of art will come frombe funded by the APP reserve accountprogram. Those
works of art donated to the Fort Collins Museum for its collection purposes shall be
exempt from this process.
Introduced, considered favorably on first reading, and ordered published this 21st day of
August, A.D. 2012, and to be presented for final passage on the 2nd day of October, A.D. 2012.
_________________________________
Mayor Pro Tem
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on the 2nd day of October, A.D. 2012.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
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