Loading...
HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/05/2002 - SECOND READING OF ORDINANCE NO. 011, 2002, APPROPR AGENDA ITEM SUMMARY ITEM NUMBER: 16 FORT COLLINS CITY COUNCIL DATE: February 5, 2002FROM Michael Powers SUBJECT: Second Reading of Ordinance No. 011, 2002, Appropriating Unanticipated Revenue in the Building Community Choices EPIC Second Sheet of Ice Capital Project and Authorizing the Project to Proceed. RECOMMENDATION: Staff recommends adoption of the Ordinance on Second Reading. EXECUTIVE SUMMARY: Ordinance No. 011, 2002, which was unanimously adopted on First Reading on January 15. 2002, appropriates existing private sector cash contributions in the amount of $836,636, together with in-kind contributions valued at $28,500 (which are being appropriated to allow for more complete accounting of the total project cost) for a total appropriation of$865,136, or 22% of the 40 estimated project cost. The Ordinance also authorizes the project to proceed. AGENDA ITEM SUMMARY ITEM NUMBER: 31 DATE: January 15. 2002 ID FORT COLLINS CITY COUNCIL FROM: Michael Powers SUBJECT : First Reading of Ordinance No. 011, 2002. Appropriating Unanticipated Revenue in the Building Community Choices EPIC Sec.)nd Sheet of Ice Capital Project and Authorizing the Project to Proceed. RECOMMENDATION: Staff recommends adoption of the Ordinance on First Reading. EXECUTIVE SUMMARY: In 1997. the voters approved Ordinance No. 31, 1997, which provided for a Studio Ice Rink at the Edora Pool & Ice Center as part of the Building Community Choices (BCC) capital improvements program. The Ordinance required a public/private partnership for this project. by making the project contingent upon the private sector providing funding or in-kind contributions for at least 22% of the estimated cost of the project, as determined by the City Council. Under this formula, 78% of the project costs would be provided through BCC tax revenues. In November 2001. the City Council adopted the 2002 annual budget. which includes $3?71.801 from Building Community Choices tax revenues for this project. Based on the competitive purchasing process for the project. staff has estimated that the Studio Ice Rink project will cost $3,932.435 (including $3.370,674 for designlbuild and $561.761 for equipment/furnishings), unless project quality is enhanced through additional funding. If additional private contributions are raised prior to completion of Final Design for the project (approximately July 2002) City staff will return to the City Council to request that additional private donations be appropriated for this project, and to request that the City Council approve the increased project cost and the expenditure of the additional $206.502 that has already been appropriated as part of the 2002 Budget. This would enhance the quality of the project using the balance of BCC funds to match the private donations. Given the currently estimated total project cost. this Ordinance appropriates the existing private sector cash contributions in the amount of$836.636, together with in-kind contributions valued at $28.500 (which are being appropriated to allow for more complete accounting of the total project cost) for a total appropriation of $865.116. or 22% of the estimated project cost. The Ordinance also authorizes the project to proceed. 11 DATE: January IS 2002 1 2 1 ITEM NUMBER: The following chart represents the status of the fundraising efforts by the private sector and ho A the fundraising affects City funds available: PRIVATE CITY (BCC) TOTAL MATCH FUNDS CURRENT $865.136 $3.067299 $3,932,435 PROJECT (cash= $836,636) ESTIMATES (in-kind = $28,500) POSSIBLE ADDITIONAL $38.244 S206,502 S264,746 RESOURCES POSSIBLE FINAL PROJECT $923.380 $3.273,801 $4.197,181 COST The easiest way to understand the private match funding requirement is that for every $1 donated by the private sector. approximately $3.55 is leveraged from BCC monies for the project. The maximum amount of BCC money appropriated for this project that can be leveraged is $3.273.801. At this point. the private sector has leveraged $3,067,299 in tax revenues. BACKGROUND: The Building Community Choices (BCC) capital improvements program was referred to the voters by the City Council in April 1997. The EPIC Studio Ice Rink was one of the items in this package and it was.unique in terms of the public/private cooperative funding that was required. Materials provided voters described the project as: "A studio ice rink, that will be smaller than the EPIC ice arena, will be added to enhance the EPIC facility. The new rink trill provide more ice time for programs such as the city's learn-to-skate program. figure skating. youth and adult hockey and drop-in skating." Ordinance No. 31, 1997, the relevant ordinance of the three BCC ordinances adopted by the voters for the various BCC projects, further states: "...the construction of the EPIC Studio Ice Rink Project shall be expressly contingent upon the City's receipt of 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 CitN Council. Said cost determination and the determination whether to proceed with the EPIC Studio Ice Rink Project shall be made by the City Council after receiving a report and recommendation from the City Manager and the City's Financial Officer. no liter than December 31, 2005." Before adopting this Ordinance. the City Council must be assured that each of the requirements described in Ordinance No. 31. 1997, has been met. Requirement 1: "A studio ice rink, that will be smaller than the EPIC ice arena, will be added to enhance the EPIC facility." DATE: January 15. 2002 3 ITEM NUMBER: , The architect'builder selected through the City's RFP process has proposed that the City build an addition that will best meet the needs of the community in the long-term while also meeting the intent of the ballot language. The arena size — sheet of ice plus supporting facilities — for the proposed arena addition is 32.302 square feet, which is smaller than the 34.305 square feet for the existing arena. The studio ice rink will be an addition to the existing EPIC facility. This requirement has been met. Requirement 2: "The new rink will provide more ice time for programs such as the city's learn- to-skate program, figure skating, youth and adult hockey and drop-in skating." The proposed design of the new rink will accommodate all of the program needs authorized b} the voters. In addition. the new rink will support public skate, women's hockey, senior coffee club and CSU club hockey. The size of the sheet of ice will accommodate all of these uses including adult hockey. This studio rink will be used as a support area for the existing rink and arena. The existing arena which has more seating, will be used for all skating activities as well as "main events" and "big games". This requirement has been met. Requirement 3: "...the construction of the EPIC Studio Ice Rink Project shall be expressly contingent upon the City's receipt of supplemental funding, or in-kind contributions. for such project from the private sector, having a value of at least22% of the estimated cost of the project as determined by the City Council." Twice the Ice, a private fundraising group, will have given the City- a check prior to Second Reading of this Ordinance, executed in-kind pledge contracts totaling $28.500 and sold dasher board advertising and used other mechanisms to raise cash donations totaling $836.636. for total private contributions of $865.136. (A prior Council approved the sales of dasher board advertising as a mechanism for private fundraising, which is counted toward the private sector obligation.) Council's approval of this Ordinance will appropriate the dasher board revenue and the additional monies received and pledged from Twice the Ice (including the in-kind contributions, which are being appropriated to allow for more complete accounting of the total project cost) in the total amount of$865.136. A design/build contract will be awarded, following approval of this ordinance, to construct the studio ice rink for a cost not to exceed $3.370.674. Items to furnish and complete the project add $561.761. These items include the ice re-surfacer, scoreboard, clock. office furnishings and equipment, testing, development fees. administration and contingency. This is a total project budget of$3,932,435. This project can be adequately built in accordance with Ordinance No. 31, 1997. for this estimated project cost. In November 2001, the City Council adopted the 2002 annual budget. which includes $3.273.801 for this project. The 78% contribution from these BCC monies ($3.067,299) plus the private sector contribution creates a total budget for this project of $3.932,435. The amount received from Twice the Ice meets the 22% minimum requirement. This will leave $206.502 unspent in the BCC Studio Ice Rink account unless the private sector can raise additional contributions and the City Council chooses to increase the total project cost DATE: JanuaKy 15 2002 4 1 ITEM NUMBER: 11 at a later date. The private sector. represented by Twice the Ice, has been very successful in fundraising efforts to date. Twice the Ice is confident that additional contributions can be raised. If additional private contributions are raised prior to completion of Final Design for the project (approximately July 2002) City staff will return to the City Council to request that additional private donations be appropriated for this project. and to request that the City Council approve the increased project cost and the expenditure of the additional $206.502 that has already been appropriated as part of the 2002 Budget. These expenditures will enhance the quality of the project by adding various improvements, such as insulation to increase energy efficienc}', a cleaner burning natural gas system for the ice re-surfacer. additional parking, additional seating. and shelving for the storage room. When the BCC program terminates after December 31, 2005. any BCC funds remaining unspent for this project may be used by the Council for other projects in accordance with the BCC ordinances adopted by the voters. This requirement has been met. Requirement 4: "Said cost determination and the determination whether to proceed with the EPIC Studio Ice Rink Project shall be made by the City Council after receiving a report and recommendation from the City Manager and the City's Financial Officer. no later than December 31, 2005." The submission of this Ordinance for Council's consideration constitutes a recommendation from the City Manager and the City's Financial Officer that the total estimated cost for the Studio Ice Rink project be determined to be $3.932.435. that 22% of the estimated project cost has been contributed by the private sector, and that the project be allowed to proceed on that basis. This requirement has been met.