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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/07/2017 - FIRST READING OF ORDINANCE NO. 039, 2017, APPROPRIAgenda Item 13 Item # 13 Page 1 AGENDA ITEM SUMMARY March 7, 2017 City Council STAFF Mark Jackson, PDT Deputy Director SUBJECT First Reading of Ordinance No. 039, 2017, Appropriating Prior Year Reserves in the Transportation Fund for Regional Contribution to Larimer County for North I-25 Improvements. EXECUTIVE SUMMARY The purpose of this item is to appropriate Transportation Reserve funds in the amount of $445,947, to be remitted to Larimer County as part of an annual regional contribution of local matching funds for the Colorado Department of Transportation’s (CDOT) North I-25 Improvements Project. With Resolution 2016-077, adopted on October 4, 2016, Council authorized the Mayor to enter into an intergovernmental agreement (IGA) with Larimer County and participating local agencies, including the City, to contribute local matching funds for this purpose. This is the first of five annual installments of these payments to Larimer County under the IGA. Local matching fund commitments accelerate the improvements to I-25 in Northern Colorado. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION Council adopted Resolution 2015-100 (Attachment 1) on November 17, 2015, stating its support for a Larimer County proposal to use increased County mill levy funds as a method to facilitate funding for Interstate 25 (I- 25) improvements. Larimer County proposed to temporarily reapportion part of its General Fund mill levy funds to the County’s Road and Bridge Fund for a period of five years. These reapportioned funds are estimated to generate a total of $10 million over the course of the five year period. The increase in the County Road and Bridge Mill Levy revenues received by the City and the other municipalities will be available to fund construction of roads and streets within their boundaries. The County proposed using these contributions as a local match for improvements on the I-25 Corridor within Larimer County. All eight Larimer County municipalities adopted resolutions supporting the proposal. Council adopted Resolution 2016-077 (Attachment 2) on October 4, 2016, authorizing the Mayor to enter into an IGA with Larimer County and other local agencies for the purpose of providing local funds to Larimer County to be contributed to the North I-25 Corridor Improvements Project as described above. This regional collaboration and agreement will result in $10 million of matching funds to help accelerate the project. The IGA was fully executed on December 27, 2016 (Attachment 3). Fort Collins’ total contribution to this five year funding commitment is $2,229,735. Fort Collins’ annual share of funds is $445,947 in each of the five years. This appropriation request authorizes fulfillment of the first annual payment per the IGA. The North I-25 Improvements project will begin construction in late 2017 and is scheduled to be completed by December 2020. The $237 million project is funded using federal, state and local dollars. The project boundaries are State Highway 14 (Mulberry Road) on the north and State Highway 402 in Loveland to the south. It will add a third managed lane in each direction, make key improvements to bridges, connect the regional bicycle/pedestrian trail under I-25, and provide an additional park and ride with bus slip ramps at Kendall Parkway in Loveland. Improvements will help ease congestion, provide additional multi-modal capacity Agenda Item 13 Item # 13 Page 2 for auto and bus traffic, make key bicycle/pedestrian trail linkages, and improve safety and stormwater issues. (Attachment 4) CITY FINANCIAL IMPACTS Larimer County’s proposal does not modify the total mill levy, and does not decrease the amount of Road and Bridge Levy funds currently received by the City of Fort Collins. Creation of a source of local match funding is advantageous in order to take advantage of funding partnerships and grant opportunities that may arise to help improve the I-25 corridor. This contribution, combined with additional commitments from regional agencies and private development, results in $25 million identified and committed for local match. This regional collaboration and commitment helped accelerate the schedule for I-25 improvements in Northern Colorado by fifteen years. The City of Fort Collins’ Transportation Reserve Fund estimated balance at year end 2016 is $12.5 million. Of those funds, approximately $6 million are undesignated and can be used for unforeseen needs. The local share amount of Larimer County Road & Bridge Levy funds received by Fort Collins in 2016 was $1.05 million, an increase of $500,000 over the amount received in 2015. BOARD / COMMISSION RECOMMENDATION Staff presented information related to the IGA with Larimer County as well as overall North I-25 Improvements Project updates to the Transportation Board at their February and November 2016 meetings. Board response was positive and supportive. PUBLIC OUTREACH The Colorado Department of Transportation (CDOT) held numerous open house meetings and provided project information for many years about I-25 improvements, including the I-25 Environmental Impact Statement (2011), and more recent improvements including the I-25/SH-392 interchange, Berthoud Hill Climbing Lane project and Crossroad Boulevard Bridge Improvement project. City of Fort Collins has been an active partner in CDOT efforts impacting Fort Collins. ATTACHMENTS 1. Resolution 2015-100 (PDF) 2. Resolution 2016-077 (PDF) 3. North I-25 Funding IGA, December 27, 2016 (PDF) 4. I-25 Project Fact Sheet (PDF) ATTACHMENT 1 ATTACHMENT 2 Page 1 of 15  INTERGOVERNMENTAL AGREEMENT FOR FUNDING I-25 IMPROVEMENTS This Intergovernmental Agreement for Funding I-25 Improvements (“Agreement”) is made and effective on ____________________, 2016, by and among the Board of County Commissioners of Larimer County, Colorado (referred to as “County”), and the City of Fort Collins, Colorado, the City of Loveland, Colorado, the Town of Estes Park, Colorado, the Town of Timnath, Colorado, the Town of Berthoud, Colorado, the Town of Windsor, Colorado, the Town of Wellington, Colorado, and the Town of Johnstown, Colorado (individually referred to as “Municipality” or collectively as “Municipalities”). (The County and Municipalities will jointly be referred to as the “Parties.”) I. RECITALS A. Interstate 25 (“I-25”) serves as the primary north-south highway connection for Northern Colorado, including the County and the Municipalities. B. I-25 is the primary roadway route for regional connectivity to commerce, health care, education and employment. C. I-25 is designated as a federal freight route. D. I-25 in Northern Colorado is considered significantly congested such that traffic flow is impaired and quality of life is adversely affected. E. The Colorado Department of Transportation (“CDOT”) completed an Environmental Impact Statement in August 2011 that identified and evaluated multi-modal transportation improvements along approximately 60 miles of the I-25 corridor from the Fort Collins/Wellington area to Denver. The Statement identified areas of I-25 and associated structures such as bridges that needed to be expanded and/or improved. F. CDOT has proposed to expand I-25 from two lanes (north and south) to three lanes (north and south) for approximately fourteen miles between State Highway14 and State Highway 402, replace the Cache la Poudre Bridge and the Union Pacific Railroad Bridge north of State Highway 34, expand the Kendall Parkway Crossing under I-25 and expand the Bridge over the Big Thompson River and the Bridge over the Great Western Railway to accommodate a third travel lane (collectively “Project”). G. Funding for the Project is proposed to include contributions from government at federal, state, county, and municipal levels and other sources. H. Increased property values for Larimer County property owners in 2015 have provided an opportunity to increase the County Road and Bridge Mill Levy within the County’s total Mill Levy commencing in 2016 and for a period of four years thereafter by an estimated EXHIBIT A Page 2 of 15  amount sufficient to generate an additional $2 million annually without detriment to other County programs, without decreasing the amount shared back to the Municipalities in 2015 pursuant to C.R,S. §43-2-202(2) (the “2015 Share Back”), and without increasing the total County Mill Levy. I. The increased County Road and Bridge Mill Levy is projected to generate approximately $10 million in excess of the 2015 Share Back (the “Increased Municipal Share Back”) over five years commencing with calendar year 2016 for CDOT’s use on the Project. J. The Municipalities have each adopted Resolutions expressing their willingness to contribute funds to County annually for five years for CDOT’s use on the Project subject to the terms of this Agreement. K. County and Municipalities are authorized pursuant to Article XIV, Section 18 of the Colorado Constitution and Section 29-1-201, et seq., Colorado Revised Statutes, to enter into intergovernmental agreements for the purpose of providing any service or performing any function which they can perform individually. II. CONSIDERATION NOW, THEREFORE, in consideration of the covenants and obligations herein expressed, the County and Municipalities agree as follows. III. TERMS AND CONDITIONS 1. Commencing in calendar year 2017 and continuing for calendar years 2018, 2019, 2020 and 2021, each Municipality shall pay to County from such Municipality’s general fund or such other fund as such Municipality may designate, an annual contribution in an amount equal to that portion of the Increased Municipal Share Back paid by the County to each Municipality pursuant to C.R.S. §43-2-202 (2) (“Municipality Contribution”) to be used as a portion of the “local match” for the Project, subject to the terms set forth in this Agreement. 2. County shall notify (“Notification”) each Municipality in writing no later than January 31 in calendar years 2017, 2018, 2019, 2020, and 2021 the total amount of the Increased Municipal Share Back” received by such Municipality during the previous calendar year. 3. Within 30 days after receipt of the Notification, each Municipality shall give written notice to the County stating whether or not such Municipality has budgeted and appropriated funds for the current calendar year to make its annual Municipality Contribution as set forth in Paragraph 1 above. 4. Provided the Municipality has budgeted and appropriated funds, such Municipality shall pay its Municipality Contribution to County within 60 days following such Municipality’s receipt from County of its Notification. Page 3 of 15  5. County shall contribute an amount equal to the County’s share of the County Road and Bridge Mill Levy revenues received pursuant to C.R.S. §43-2-202(2) attributable to the increase in the County Road and Bridge Mill Levy specified in Recital H above (“County Contribution). No later than February 28 in calendar years 2017, 2018, 2019, 2020 and 2021, County shall give written notice to each Municipality affirming that County has (or has not) budgeted and appropriated funds for the current calendar year to make its annual County Contribution. 6. County shall deposit the County Contribution and the Municipality Contributions into a separately identifiable account (“Contributions Fund”) and shall maintain records as to such account sufficient to identify all deposits and withdrawals from such account. 7. County is authorized to pay to CDOT funds in the Contributions Fund for CDOT’s use in the Project pursuant to an intergovernmental agreement to be executed between County and CDOT. 8. County shall maintain accurate accounts of any and all amounts paid to CDOT from the Contributions Fund. County shall provide to Municipalities information detailing Project payments to CDOT from the Contributions Fund. 9. If County or a majority of Municipalities, after consultation with the other Parties, determines all or any part of the Project is not feasible due to inadequacy of funds or other impediments, and provided amounts remain in the Contributions Fund, County shall so notify Municipalities in writing. Within 90 days after such notification, a. County shall make a payment to County and to each Municipality of any amount remaining in the Contributions Fund attributable to County and such Municipality’s respective percentage contribution , OR, b. In lieu of such payment, the Parties may agree in writing to an alternative use of the Contribution Funds, provided such alternative use benefits roads or transportation systems located within the jurisdiction(s) of the Parties so agreeing. 10. Any notice or other communication given by any party to another relating to this Agreement must be hand-delivered or sent by registered or certified mail, return receipt requested, or by overnight commercial courier, addressed to such other party at its respective addresses set forth in Exhibit “A” attached hereto and such notice or other communication will be deemed given when so hand-delivered or three (3) business days after so mailed, or the next business day after being deposited with an overnight commercial courier. 11. The obligations of the County and Municipalities to commit or expend funds after calendar year 2016 are subject to and conditioned on the annual appropriation of funds sufficient and intended to carry out said obligations by the respective governing bodies of County and Municipalities in their sole discretion. Page 4 of 15  12. This Agreement is to be construed according to its fair meaning and as if prepared by all parties hereto and is deemed to be and contain the entire understanding and agreement between the parties hereto. There shall be deemed to be no other terms, conditions, promises, understandings, statements, or representations, expressed or implied, concerning this Agreement unless set forth in writing and signed by the Parties hereto. 13. This Agreement cannot be modified except in writing signed by all Parties. 14. This Agreement will be governed by and its terms construed under the laws of the State of Colorado. Venue for any action shall be in Larimer County, State of Colorado. 15. Nothing contained herein is deemed or should be construed by the Parties or by any third party as creating the relationship of principle and agent, a partnership or a joint venture between the Parties, or an employment relationship between the Parties. 16. This Agreement is made for the sole and exclusive benefit of County and Municipalities, their successors and assigns, and it is not made for the benefit of any third party. 17. If any term or condition of this Agreement is held to be invalid by final judgment of any court of competent jurisdiction, the invalidity of such a term or condition, will not in any way affect any of the other terms or conditions of this Agreement, provided that the invalidity of any such term or condition does not materially prejudice any Party in their respective rights and obligations under the valid terms and conditions of this Agreement. 18. No party will be deemed in violation of this Agreement if prevented from performing any of its respective obligations hereunder by reason of strikes, boycotts, labor disputes, embargoes, shortage of energy or materials, acts of God, acts of public enemies, acts of superior governmental authorities, weather conditions, rights, rebellions, sabotage, or any other circumstances for which it is not responsible or that are not within its control. 19. This Agreement may be signed by the Parties in counterpart. Page 5 of 15  BOARD OF COUNTY COMMISSIONERS OF LARIMER COUNTY, COLORADO By: _____________________________________ Title: ____________________________________ ATTEST: ___________________________________ Approved as to form: ___________________________________ County Attorney Jshdocs/county/Agreement for funding I-25 improvements Final Page 6 of 15  CITY OF FORT COLLINS, COLORADO By: _____________________________________ Title: _____________________________________ ATTEST: ___________________________________ Approved as to form: ___________________________________ City Attorney Page 7 of 15  CITY OF LOVELAND, COLORADO By: _____________________________________ Title: _____________________________________ ATTEST: ___________________________________ Approved as to form: ___________________________________ City Attorney Page 8 of 15  TOWN OF ESTES PARK By: _____________________________________ Title: _____________________________________ ATTEST: ___________________________________ Approved as to form: ___________________________________ Town Attorney Page 9 of 15  TOWN OF TIMNATH, COLORADO By: _____________________________________ Title: _____________________________________ ATTEST: ___________________________________ Approved as to form: ___________________________________ Town Attorney Page 10 of 15  TOWN OF BERTHOUD, COLORADO By: _____________________________________ Title: _____________________________________ ATTEST: ___________________________________ Approved as to form: ___________________________________ Town Attorney Page 11 of 15  TOWN OF WINDSOR, COLORADO By: _____________________________________ Title: _____________________________________ ATTEST: ___________________________________ Approved as to form: ___________________________________ Town Attorney Page 12 of 15  TOWN OF WELLINGTON, COLORADO By: _____________________________________ Title: _____________________________________ ATTEST: ___________________________________ Approved as to form: ___________________________________ Town Attorney Page 13 of 15  TOWN OF JOHNSTOWN, COLORADO By: _____________________________________ Title: _____________________________________ ATTEST: ___________________________________ Approved as to form: ___________________________________ Town Attorney Page 14 of 15  EXHIBIT “A” To County: County Manager Larimer County, Colorado P.O. Box 1190 Fort Collins, CO 80522 To Fort Collins: City Manager City of Fort Collins P.O. Box 580 Fort Collins, CO 80522 With copy to: City Attorney City of Fort Collins P.O. Box 580 Fort Collins, CO 80522 To Loveland: City Manager City of Loveland 500 East 3rd Street, Suite 330 Loveland, CO 80537 With copy to: City Attorney City of Loveland 500 East 3rd Street, Suite 330 Loveland, CO 80537 To Estes Park: Town Administrator P.O. Box 1200 Estes Park, CO 80517 To Timnath: Page 15 of 15  Town Manager 4800 Goodman Street Timnath, CO 80547 To Berthoud: Town Administrator P.O. Box 1229 Berthoud, CO 80513 To Windsor: Town Manager 301 Walnut Street Windsor, CO 80550 To Wellington: The Town of Wellington 3735 Cleveland Avenue P.O. Box 127 Wellington, CO 80549 With copy to: March, Olive and Pharris, LLC Attn: Brad March 1312 S. College Ave. Fort Collins, CO 80524 To Johnstown: Town Manager 450 S. Parish Ave. Johnstown, CO 80534 "UUBDINFOU ATTACHMENT 3 "UUBDINFOU ATTACHMENT 4 -1- ORDINANCE NO. 039, 2017 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE TRANSPORTATION FUND FOR REGIONAL CONTRIBUTION TO LARIMER COUNTY FOR NORTH I-25 IMPROVEMENTS WHEREAS, on November 17, 2015, City Council passed Resolution 2015-100 stating its support for a Larimer County proposal to use increased County mill levy funds as a method to facilitate funding for Interstate 25 (I-25) improvements; and WHEREAS, on October 4, 2016, City Council passed Resolution 2016-077 authorizing the Mayor to enter into an Intergovernmental Agreement with Larimer County (the “IGA”) and other local agencies for the purpose of providing local funds to Larimer County to be used as a contribution to the North I-25 Corridor Improvements Project; and WHEREAS, the IGA was signed by the parties and dated December 27, 2016; and WHEREAS, the $237 million North I-25 Improvements project will begin construction in late 2017 and is scheduled to be completed by December 2020; and WHEREAS, the project boundaries are State Highway 14 (Mulberry Road) on the north and State Highway 402 in Loveland to the south and the project will add a third managed lane in each direction, make key improvements to bridges, connect the regional bicycle/pedestrian trail under I-25, and provide an additional park and ride with bus slip ramps at Kendall Parkway in Loveland; and WHEREAS, the purpose of this item is to appropriate Transportation Fund reserves in the amount of $445,947 to be remitted to Larimer County as part of an annual (five year) regional contribution of local matching funds under the IGA for CDOT’s North I-25 Improvements Project; and WHEREAS, this is the first of five annual payments to Larimer County under the IGA, with a total funding commitment from the City of $2,229,735; and WHEREAS, Fort Collins received approximately $1.05 million in 2016 from the Larimer County Road and Bridge Fund representing an incremental increase in revenue from increased property valuations of approximately $500,000.00 for 2016; and WHEREAS, the increase in the City’s share of the County Road and Bridge Mill Levy revenues will be utilized to fund construction of roads and streets within its corporate boundaries in accordance with C.R.S. §43-2-202(4), making other funds available from the City’s Transportation Fund reserves for contribution to the Project; and WHEREAS, Article V, Section 9 of the City 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 -2- WHEREAS, City staff have determined that the appropriations as described herein are available and previously unappropriated in the Transportation Fund; 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 for expenditure from prior year reserves in the Transportation Fund the sum of FOUR HUNDRED FORTY-FIVE THOUSAND NINE HUNDRED FORTY-SEVEN DOLLARS ($445,947) for regional contribution to Larimer County under the IGA for North I-25 Improvements. Introduced, considered favorably on first reading, and ordered published this 7th day of March, A.D. 2017, and to be presented for final passage on the 21st day of March, A.D. 2017. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 21st day of March, A.D. 2017. __________________________________ Mayor ATTEST: _______________________________ City Clerk