HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/15/2016 - FIRST READING OF ORDINANCE NO. 039, 2016, APPROPRIAgenda Item 6
Item # 6 Page 1
AGENDA ITEM SUMMARY March 15, 2016
City Council
STAFF
Josh Birks, Economic Health Director
Mike Beckstead, Chief Financial Officer
SUBJECT
First Reading of Ordinance No. 039, 2016, Appropriating General Fund Reserves for the Construction of a
Pedestrian Underpass at Foothills Parkway and College Avenue and Authorizing the City Manager to Enter
Into Related Agreements.
EXECUTIVE SUMMARY
The purpose of this item is to appropriate funds to partially fund the construction of the pedestrian underpass
at Foothills Parkway and College Avenue as part of the Foothills Mall Redevelopment Project. The Ordinance
will appropriate $150,000 of City funds from General Fund Reserves and will also appropriate another
$300,000 from the General Fund Reserves representing monies the City anticipates to soon receive from the
Colorado Department of Transportation (“CDOT”). The underpass project has exceeded the original cost
estimated by $600,000. As a result, CDOT has agreed to fund $300,000 of this cost overrun under an
intergovernmental agreement with the City (the “CDOT IGA”). Walton Foothills Holdings VI, LLC (the
“Developer”) has requested the City of Fort Collins cover $150,000 of the cost overruns with the Developer
contributing the remaining $150,000.
The City’s contribution through this appropriation will support:
1. Increasing the life expectance of the bridge structure significantly from 10 to 15 years to a typical full life
span of 50 to 60 years;
2. Disrupting the flow of traffic along College Avenue fewer times as the need to replace the structure under
the south bound lanes is avoided in the next 10 to 15 years;
3. Avoiding future costs to the City related to repairing or upgrading the pedestrian facilities approaching and
within the underpass beneath the south bound lanes in 10 to 15 years; and
4. Improving safety and aesthetics by constructing a new concrete box underpass tunnel with a constant
width, grade, materials, and ceiling level.
The Ordinance also authorizes the City Manager, after consultation with the City Attorney, to enter into the
amendment to the Foothills Mall Redevelopment and Reimbursement Agreement and the CDOT IGA that will
both be needed to facilitate this additional funding.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
As part of the Redevelopment and Reimbursement Agreement (the “Agreement”) for the Foothills Mall
Redevelopment, the Developer is obligated to construct the pedestrian underpass at Foothills Parkway and
College Avenue (the previous alignment of Larimer County Canal No. 2 an irrigation ditch).
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The Developer intended to reuse the existing Larimer County Canal No. 2 bridge across College Avenue after
relocating the irrigation ditch to facilitate construction of the pedestrian underpass. The construction of the
underpass is within CDOT’s rights-of-way and requires approval from that agency.
Soon after the execution of the Agreement, construction commenced on the Larimer County Canal No. 2
realignment–an associated project. Field inspections determined the actual depth of a large CenturyLink fiber
optic and copper pair line as well as a City electric line within College Avenue right-of-way. The field inspection
determined that these two utility lines were two feet shallower than previous estimates and were in direct
conflict with the required 8-foot clearance height for the pedestrian underpass.
The CenturyLink fiber optic and copper pair line is a major regional utility serving much of northern Colorado.
There were discussions of lowering the line to accommodate the underpass; however, cost and age of the
utility line make that option infeasible.
The Developer originally presented a design that would replace the Larimer County Canal No. 2 bridge
structure with a new structure only under the north bound lanes of College Avenue to accommodate the
shallow depth of the two utility lines. The original design kept the existing bridge structure under the south
bound lanes of College Avenue. The existing south bound bridge portion was built in the early 1970s with an
estimated remaining life expectancy of 10 to 15 years. The bridge will be part of CDOT’s bridge inventory and
will remain their responsibility to maintain and replace in the future, if necessary. The City will have
responsibility to maintain the pedestrian facilities approaching and within the underpass.
Proposed Underpass Design
The current underpass design includes a twelve foot wide pedestrian path for the entire length of the tunnel
structure. The clearance height will generally remain eight feet except for the portion of the structure that
travels over the two utility lines where the floor will raise reducing clearance to seven feet four inches. The
proposed alignment follows the original path of the Larimer County Canal No. 2, which includes a kink beneath
the north bound lanes. Despite the kink, a sight-line remains through the entire tunnel structure to the opposite
end allowing for a pedestrian or bicyclist entering the tunnel to see daylight on the other side, as shown in
Attachment 1.
In addition, the bridge and entrance design will include some minimal design features. These features will
include: use of previously acquired Art in Public Places concrete forms on the entrance walls to provide relief
and texture; and landscaping around the entrances. The interior of the tunnel will comply with City standards
including the required lighting and paint. Table 1 below provides an overview and comparison of the previous
design and the current proposal.
Table 1
Design & Construction Comparison
Description Original Design Proposed Design
Vertical Clearance Minimum 7’ 4” 7’ 4”
Underpass Alignment Existing Alignment Partial Kink Existing Alignment Partial Kink
Bridge Demolition North Bound Only Both Directions
Appropriation Request:
After months of discussion between the Developer, the City, and CDOT, it was determined that although
reusing the existing bridge structure underneath the south bound lanes may be viable, the better decision
would be to replace the entire bridge structure. The existing Larimer County Canal No. 2 bridge structure
would be replaced, in this option, by a new concrete box structure underneath both north and south bound
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lanes. This option avoids the need to replace a portion of the bridge structure (underneath the south bound
lanes) in the near future (10 to 15 years). Replacing the entire bridge structure with a new concrete box costs
more than originally estimated for the underpass, approximately $600,000 more.
Benefits of the proposed design include:
1. Increasing the life expectance of the bridge structure significantly from 10 to 15 years to a typical full
life span of 50 to 60 years;
2. Disrupts the flow of traffic along College Avenue fewer times as the need to replace the structure
under the south bound lanes is avoided in the next 10 to 15 years;
3. Avoids future costs to the City related to repairing or upgrading the pedestrian facilities approaching
and within the underpass beneath the south bound lanes in 10 to 15 years; and
4. Improves safety and aesthetics by constructing a new concrete box underpass tunnel with a constant
width, grade, materials, and ceiling level.
The additional cost provides benefit to the City, CDOT, and the Developer. Therefore, it is the recommendation
of City staff to participate in this added cost. The Developer is requesting the City agree to fund $150,000 of
the remaining $300,000 with the Developer contributing an additional $150,000 to fund the increased costs.
Table 2 shows the breakdown of funding contributions by entity, including the Foothills Metro District, CDOT,
City, and Developer. As the table shows, the requested City contribution will fund approximately 6 percent of
the total underpass construction cost. However, it should be noted that the Developer will contribute
approximately 14 percent or $322,000 towards the total cost of constructing the underpass; this amount
includes the additional $150,000 needed to replace the entire bridge as well as funds already contributed
towards the construction of the underpass. These funds come from the Developer’s equity and construction
financing and exceed the Foothills Metro District contribution of $1.6 million, as shown.
Table 2
Construction Cost
Description Amount Percentage
Metro District Funds $1,579,979 67%
CDOT Contribution $300,000 13%
Requested City Contribution $150,000 6%
Subtotal $2,029,979 86%
Developer Contribution $321,824 14%
Total Cost $2,351,803 100%
Amendment to the Agreement
An amendment to the Agreement will be required in order to provide additional funding to the pedestrian
underpass project. City staff has begun to develop a potential amendment; however, all the details of that
amendment have not yet been negotiated with the Developer, but the Ordinance provides that the City’s
expenditure of the City’s $150,000 will be conditioned on the City and the Developer entering into the needed
amendment approved by the City Manager and it authorizes the City Manager to enter into that amendment
after consultation with the City Attorney.
This amendment to the Agreement will include the following:
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Stipulate a date certain for completion of the project – currently estimated to be October 15, 2016
(Attachment 2);
Require liquidated damages charged daily for failure to complete the project by the given date –
amount to be negotiated;
Stipulate the City funds will be applied only after all other funds have been expended – the City funds
should be the last in; and
Describe the process by which the City will review and approve the design, construction costs, and
use of contingency funds.
Finally, CDOT has indicated a preference to have their contribution of $300,000 flow through the City under the
CDOT IGA. Therefore, the Ordinance also appropriates these anticipated funds from CDOT. In addition, the
Ordinance authorizes the City Manager to enter into the CDOT IGA after consultation with the City Attorney.
City staff will be preparing this IGA for execution by the City Manager.
CITY FINANCIAL IMPACTS
This Ordinance appropriates the $150,000 from the City’s General Fund Reserves for the purpose of
supporting the construction of the pedestrian underpass at Foothills Parkway and College Avenue. The
$150,000 is a direct cost to the City and reduces the General Fund Reserve proportionally. However,
participating in constructing the underpass as proposed replaces an aging bridge structure. The City would
incur costs in the future associated with replacing the bridge structure at the end of its useful life, estimated at
10 to 15 years.
BOARD / COMMISSION RECOMMENDATION
The Council Mall Redevelopment Committee reviewed the proposed appropriate and recommended the item
be brought before the full City Council for consideration.
No other board or commission outreach was conducted due to time constraints.
PUBLIC OUTREACH
No public outreach was conducted due to time constraints.
ATTACHMENTS
1. Tunnel Line of Sight Drawing (PDF)
2. Underpass Timeline (PDF)
TUNNEL LINE OF SIGHT
(signified by yellow highlighting) ATTACHMENT 1
Numbers
signify maximum
visible width
East
to the
Mall
East to
the Mall
9' 6"
5' 6"
Option1: PROPOSED -
Replaces bridge under current
width of College Avenue.
Option 2: ALTERNATIVE -
Extends bridge 10' to the west
to accommodate an at grade
pedestrian sidewalk on the west
side of College Avenue. (No longer
applicable - the pedestrian bridge
will be relocated from further west.)
8' 0"
5' 0"
DeveloperPurchases
FoothillsMall
FoothillsMallTIFDistrict
Created
Redevelopment&
ReimbursementAgreement
Approved
CouncilApproves1st
AmendmenttoAgreement
DeveloperDiscoversUtility
LinesNotasShallow
2ndAmendmentApproved
ReducingMinimum
Clearance
DiscussionsBegintoResolve
DesignIssuesw/CDOT
ConceptualDesignRecieves
ApprovalfromCDOT
BeginConstructionDrawings
&FinalEngineering
Today
NoticetoProceedon
Construction
FinalizeDesignofthe
Underpass
BeginConstructionofthe
Underpass
PlannedCompletionofthe
Underpass
JanͲ12 JunͲ12 DecͲ12 JunͲ13 DecͲ13 JunͲ14 DecͲ14 JunͲ15 DecͲ15 JunͲ16 DecͲ16 JunͲ17 NovͲ17
FoothillsMallUnderpassTimeline
October15,2016
ATTACHMENT #2
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ORDINANCE NO. 039, 2016
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUND
AND UNANTICIPATED REVENUE IN THE GENERAL FUND FOR
CONSTRUCTION OF A PEDESTRIAN UNDERPASS AT FOOTHILLS PARKWAY
AND COLLEGE AVENUE AS PART OF THE FOOTHILLS MALL
REDEVELOPMENT PROJECT AND AUTHORIZING THE CITY MANAGER
TO ENTER INTO RELATED AGREEMENTS
WHEREAS, the City of Fort Collins (the “City”) and Walton Foothills Holdings VI,
L.L.C. (the “Developer”) entered into a Redevelopment and Reimbursement Agreement (the
“Agreement”) for the Foothills Mall Redevelopment; and
WHEREAS, the Developer is obligated under the Agreement to construct a pedestrian
underpass at Foothills Parkway and College Avenue (the “Underpass”); and
WHEREAS, the cost to construct the Underpass has exceeded the original cost
estimated by $600,000; and
WHEREAS, the Colorado Department of Transportation (“CDO”) has agreed to fund
$300,000 of this cost overrun through an intergovernmental agreement with the City (the
“CDOT IGA”) and the Developer and the City will each pay $150,000 of the cost overruns
under an amendment to the Agreement; and
WHEREAS, Article V, Section 9, of the City Charter permits the City Council to
make supplemental appropriation by ordinance at any time during the fiscal year, provided
that the total amount of such supplemental appropriation, in combination with all previous
appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated
revenues to be received during the fiscal year; and
WHEREAS, Article V, Section 9 of the City Charter further authorizes 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
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations
and findings contained in the recitals set forth above.
Section 2. That there is hereby appropriated from prior year reserves in the General
Fund the sum of ONE HUNDRED FIFTY THOUSAND DOLLARS ($150,000) for expenditure
from the General Fund for the City’s contribution to the construction of the Underpass.
-2-
Section 3. That there is hereby appropriated from unanticipated revenue in the
General Fund the sum of THREE HUNDRED THOUSAND DOLLARS ($300,000) the City
will receive from CDOT under the CDOT IGA, representing CDOT’s contribution for the
construction of the Underpass.
Section 4. Notwithstanding the foregoing, this total $450,000 appropriated amount
shall only be expended by the City in accordance with a written amendment to the Agreement
and the CDOT IGA.
Section 5. That the City Manager is hereby authorized to enter into a written
amendment to the Agreement and the CDOT IGA on the City’s behalf, after consultation with
the City Attorney, provided that the same shall be consistent with the terms of this Ordinance.
Introduced, considered favorably on first reading, and ordered published this 15th day of
March, A.D. 2016, and to be presented for final passage on the 5th day of April, A.D. 2016.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 5th day of April, A.D. 2016.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk