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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 03/06/2001 - FIRST READING OF ORDINANCE NO. 38, 2001, APPROPRIA AGENDA ITEM SUMMARY ITEM NUMBER: 17 FORT COLLINS CITY COUNCIL DATE: March 6, 2001 is I STAFF: John Fischbach SUBJECT: First Reading of Ordinance No. 38, 2001, Appropriating Prior Year Reserves and Authorizing the Transfer of Appropriations for a Centralized Police Facility. RECOMMENDATION: Staff recommends adoption of the Ordinance on First Reading. FINANCIAL IMPACT: This Ordinance appropriates and transfers $1,535,968 from prior year reserves in the Choices 95 Capital Projects Fund to the Police Services Facility capital project. The Ordinance also authorizes the transfer of$297,355 from the Building Community Choices Police Building/Land Acquisition capital project to the Police Services Facility capital project. EXECUTIVE SUMMARY: A new central Police Services building is part of the Police Services Strategic Plan and the City's Facility Master Plan. The existing building was not designed for a police agency and is no longer suitable for a department the size of Police Services with over 225 members. A new facility is necessary to maintain service to the community, conduct business, and provide public safety. Land acquisition and/or initial design for a new Police Building was included in the voter-approved Building Community Choices (BCC) capital program. A needs assessment facility study was completed and indicated 92,811 square feet is needed for a centralized facility and 101,606 square feet is needed for a decentralized(two buildings)facility. City Council and staff have expressed the preferred option is a centralized facility. The preliminary estimated cost of a centralized facility is $27 million dollars. At its February 13, 2001 Study Session, City Council discussed options for financing a new Police Facility. The favored financing strategy is to use a combination of existing and anticipated reserves, the Capital Improvement Expansion Fund, and General Fund monies that would be earmarked in future budgets. More specifically, the financing strategy to be followed is: DATE: March 6. 001 2 ITEM NUMBER: 17 a. BCC Police land acquisition existing approp. $ 297,355 b. BCC Sales Tax (approved for land acq &design) $ 1,806,190 C. Choices 95 Balance $ 1,535,968 d. Projected interest earnings through 2005 $ 265,000 e. Capital Improvement Expansion Fund(Police) $ 2,200,000 (2) f. BCC Surplus $ 4,000,000(3' Total $10,104,513 Balance to Finance $16,900,000 It is anticipated that certificates of participation would be issued as a part of a lease-lease back arrangement to finance the portions of the facility that would not be covered by the other sources specified above. The amount paid by the General Fund to service those certificates of participation would be approximately$1.6 million per year for 20 years(4). Council asked that an ordinance be prepared to set aside(appropriate)the Choices 95 reserve dollars specifically for the Police Facility Project. (The voter-approved ordinance that established the Choices 95 sales and use tax authorized the Council to use excess Choices 95 revenues for any icapital project approved by the Council.) Approval of this Ordinance will do so. In addition, this Ordinance will transfer$297,355 of existing appropriations from the BCC Police Building/Land Acquisition capital project to the Police Services capital project to consolidate appropriated monies for the project for more effective tracking purposes. The balance remaining from the $326,355 appropriated in 1998 for site studies is $297,355 ($29,000 of the $326,355 was spent for a preliminary study). I i I i 1. Estimated investment earnings of balance in Police Facility project through 2005. 2. The City's Capital Improvement Expansion Fee is a form of impact fee imposed on new development. The fees collected fund capital improvements for: Library, Community Parkland, Police Services, Fire Services and General Government Facilities. 3. This is the anticipated balance remaining after the expiration of the BCC Community Enhancement Package, December 31, 2005. 4. Beginning in 2002,$320,000 would be appropriated in additional ongoing monies each year through 2006 to be used for this purpose. The $1.6 million per year payments would begin in 2006 and continue through 2025. I I I • ORDINANCE NO. 38, 2001 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE CHOICES 95 CAPITAL PROJECTS FUND AND AUTHORIZING THE TRANSFER OF APPROPRIATED AMOUNTS FOR THE POLICE FACILITY WHEREAS, Police Services is currently located in the old "City Hall East" building (26,550 square feet) at 300 LaPorte Avenue; and WHEREAS, the aforementioned facility is no longer suitable for an agency the size of Police Services, with over 225 people; and WHEREAS, a new central Police Services building is necessary to maintain service to the community, conduct business, provide public safety, and is part of the Fort Collins Police Services Strategic Plan and the City's Facility Master Plan; and WHEREAS, a needs assessment facility study was completed in 2000, through a joint effort by Roth, Sheppard Architects and Aller, Lingle Architects, and indicated that 92,811 square feet is needed for a centralized facility and 101,606 square feet is needed for a decentralized (two buildings) facility; and WHEREAS, City staff is recommending a centralized facility, not to exceed 93,000 square feet (the "Project") at an estimated cost of$27 million; and WHEREAS, a financing strategy has been developed for the Project, with staff identifying approximately $10.1 million from the following sources: Building Community Choices - Police Building/Land Acquisition Project Existing appropriations $ 297,355 Building Community Choices - Police Building/Land Acquisition Future appropriations (2002) 1,806,190 Choices 95 Prior Year Reserves 1,535,968 Projected Interest Earnings through 2005 265,000 Capital Improvement Expansion Fund Projected balance for Police Services (2005) 2,200,000 Building Community Choices - Community Enhancements Projected balance (2005) 4,000,000 $ 10,104,513 with the balance ($16.9 million) to be paid through the issuance of certificates of participation in a lease-lease back arrangement; and WHEREAS, the amount needed for lease payments associated with the certificates of participation would be approximately $1.6 million per year for 20 years, and would be paid from General Fund resources; and WHEREAS, under Ordinance No. 9, 1989, excess Choices '95 sales and use tax revenues may be used for any capital project approved by the City Council; and WHEREAS, it is the desire of City Council to earmark available funds for the future Police Services Facility by appropriating the sum of$1,535,968, from prior year reserves in the Choices 95 Capital Projects Fund for transfer to the Police Services Facility capital project, and authorizing the transfer of $297,355 from the Building Community Choices Police Building/Land Acquisition capital project to the Police Services Facility capital project; 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 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 the purpose for which the transferred funds are to be expended remains unchanged. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That there is hereby appropriated for expenditure from prior year reserves in the Choices 95 Capital Projects Fund, the sum of ONE MILLION FIVE HUNDRED THIRTY-FIVE THOUSAND NINE HUNDRED SIXTY-EIGHT DOLLARS ($1,535,968) for transfer to the Police Facilities capital project and appropriated therein to be used for land acquisition, design, and construction of a centralized police facility. Section 2. That the unexpended appropriated amount of TWO HUNDRED NINETY- SEVEN THOUSAND THREE HUNDRED FIFTY-FIVE DOLLARS ($297,355) is hereby authorized for transfer from the Building Community Choices Police Building/Land Acquisition project to the Police Facilities capital project and appropriated therein to be used for land acquisition and design of a centralized police facility. . Introduced and considered favorably on first reading and ordered published this 6th day of March, A.D. 2001, and to be presented for final passage on the 20th day of March, A.D. 2001. Mayor ATTEST: City Clerk Passed and adopted on final reading this 20th day of March, A.D. 2001. Mayor ATTEST: . City Clerk •