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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 07/07/2015 - FIRST READING OF ORDINANCE NO. 074, 2015, AUTHORIAgenda Item 9 Item # 9 Page 1 AGENDA ITEM SUMMARY July 7, 2015 City Council STAFF Jon Haukaas, Water Engr Field Operations Mgr Phil Ladd, Utilities Customer Accounts Supervisor SUBJECT First Reading of Ordinance No. 074, 2015, Authorizing the Transfer of Previously Appropriated Funds in the Storm Drainage Fund From Individual Stormwater Basin Capital Projects into the Stormwater Basin Improvement Capital Project. EXECUTIVE SUMMARY The purpose of this item is to transfer and consolidate previously appropriated funds from the nine individual stormwater basin capital projects and the Drainage System Replacement Project into the citywide Stormwater Basin Improvement Capital Project. All appropriations will continue to be used for stormwater basin management improvement projects, while improving transparency and flexibility to fund and construct the highest priority stormwater improvements that are required citywide. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION Prior to 1998, monthly stormwater capital improvement fees were collected individually by each separate drainage basin and could only be used for the basin in which the fees were collected. Ordinance No. 168, 1998 changed the collection and use of monthly stormwater fees from the individual basins to a consolidated uniform and citywide basis. Since 2006 (Ordinance No. 136, 2005) stormwater plant investment fees have also been collected on a citywide basis. With the change in funding, prioritization of stormwater capital improvements is done on a citywide basis for the safety and well-being of all citizens. Each basin’s capital improvement project retains some unspent funding previously appropriated to that specific basin. Basin specific projects continued to be funded with these remaining appropriations. Since the adoption of the 2013-2014 Budget new appropriations are made to the citywide Stormwater Basin Improvements Project and not to individual basins. At this time, there are appropriations remaining in each basin project at a level that is either (A) insufficient to pay for any particular project or (B) the monies remain in basins that do not have immediate capital project needs. The consolidation of all these appropriations into the citywide Stormwater Basin Improvement Project will allow staff to fund larger capital projects benefiting the City as a whole, as well as the specific basin for which the funds were created. The individual Stormwater Fund Basin accounts to be consolidated are shown in the following table: Old Town Basin Improvements $11,184 Dry Creek Basin Improvements $1,043,059 Agenda Item 9 Item # 9 Page 2 W. Vine Basin Improvements $763,585 Foothills Basin Improvements $4,778 Canal Importation Basin Improvements $602,946 Cooper Slough Boxelder Basin Improvements $353,956 Fossil Creek Basin Improvements $224,548 Cache La Poudre Drainageway Basin Improvements $167,780 Drainage System Replacements $174,020 Total Transfer to Stormwater Basin Improvements Capital Project $3,345,855 If the Ordinance is adopted, these project account balances will be moved under the citywide Stormwater Basin Improvement Capital Project account and all open projects within the specific basins will also be under the citywide project for accounting purposes. CITY FINANCIAL IMPACTS The Ordinance does not appropriate any new funding. The Ordinance provides for the consolidation of existing appropriations to improve transparency and flexibility of using the existing stormwater basin improvement appropriations to fund the highest priority projects. This Ordinance is also consistent with the objectives stated by City Council in Ordinance No. 168, 1998, for uniform and citywide operation, maintenance, and improvements to the stormwater system. Stormwater funds will continue to be spent in alignment with the Stormwater Enterprise requirements and approved Stormwater Master Plans. BOARD / COMMISSION RECOMMENDATION Funding of Stormwater Master Plan projects has been discussed with the Water Board many times over the past several years. At its June 18, 2015 meeting, the Board recommended consolidation of the remaining stormwater basin budgets as presented by staff on a vote of 7-1. (Attachment 2) ATTACHMENTS 1. Ordinance No. 168, 1998 (PDF) 2. Water Board minutes (draft), June 18, 2015 (PDF) ATTACHMENT 1 Excerpt from Unapproved Water Board Minutes June 18, 2015 Stormwater Basin Consolidation Budget Ordinance (Attachments available upon request) Jon Haukaas, Water Engineering & Field Services Operations Manager stated the purpose of this item is to transfer and consolidate previously appropriated funds from the nine individual stormwater basin capital projects and the Drainage System Replacement Project into the citywide Stormwater Basin Improvement Capital Project. All appropriations will continue to be used for stormwater basin management improvement projects, while improving transparency and flexibility to fund and construct the highest priority stormwater improvements that are required citywide. Ordinance No. 168, 1998 changed the collection and use of monthly stormwater fees from the individual basins to a consolidated uniform and citywide basis. With the change in funding, prioritization of stormwater capital improvements is done on a citywide basis for the safety and well-being of all citizens. The funds in the individual stormwater basin accounts are not receiving new money, but are not being depleted due to a lack of stormwater projects in the respective basin. Currently, the balance of the idle stormwater capital project funds is approximately $3.3 million. This is equivalent to about one year of citywide capital improvement funding within the $14 million stormwater fund. Discussion Highlights  A board member inquired how this affects the prioritization of stormwater projects. Mr. Haukaas responded that this would not cause any change in the City’s prioritization list for stormwater projects, but would result in more money being available for such City projects.  A board member commented about the public perception of dedicated funds for a specific locality within the City being used for other areas. The general concern was one of equity or the perception of equity for those residents in stormwater basins that currently have a surplus in the individual fund. The City could hear negative feedback about this. Mr. Haukaas acknowledged the concern.  A board member expressed concern about the transparency of Utility funding for stormwater projects. The board member was concerned that shifting the funds into the City’s stormwater budget and priority list would make the use of these funds less transparent than they would be if kept in the individual stormwater basin accounts. Mr. Haukaas disagreed and stated that moving the funds into a single account would make the use of such funds more transparent under the Master Plan process underway at the Utility.  A board member inquired about situations in which one project overspends and uses more money than anticipated and budgeted. Mr. Haukaas responded that projects continue to be funded in priority to the full extent to finish the project, such that one project could delay and impact the availability of funds for a subsequent project. ATTACHMENT 2  A board member inquired how quickly the reallocated funds would likely be spent under a citywide program, and whether it would be prudent to wait to utilize the new funds until the stormwater master plan has been refreshed. Mr. Haukaas agreed that waiting for a revision to the master plan would make sense, but also said that there were immediate needs and project for the funds. Board Member Brian Brown made a motion that the Water Board recommend consolidation of the remaining stormwater basin budgets as presented by staff. Board Member McKinley seconded the motion. Vote on the motion: Seven in favor. One opposed. The dissenting vote was due to concerns about the lack of transparency that would result when the stormwater funds are consolidated into the single citywide stormwater capital projects fund. - 1 - ORDINANCE NO. 074, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE TRANSFER OF PREVIOUSLY APPROPRIATED FUNDS IN THE STORM DRAINAGE FUND FROM INDIVIDUAL STORMWATER BASIN CAPITAL PROJECTS INTO THE STORMWATER BASIN IMPROVEMENT CAPITAL PROJECT WHEREAS, this Ordinance provides for the consolidation of existing appropriations to improve transparency and flexibility of using the existing stormwater basin improvement appropriations to fund the highest priority projects, consistent with the objectives stated by City Council in Ordinance No. 168, 1998, for uniform and city-wide operation, maintenance, and improvements to the Stormwater system; and WHEREAS, at this time, there are appropriations remaining in each basin project either (A) at a level that is insufficient to pay for any particular project or (B) not needed because the basin project does not have immediate capital project needs; and WHEREAS, the consolidation of all these appropriations into the citywide Stormwater Basin Improvement Project will allow staff to fund larger capital projects benefiting the City as a whole, as well as the specific basin for which the funds were created; and WHEREAS, the specifics of this re-appropriation were reviewed at the June 18, 2015, Water Board meeting and the Board recommended consolidation of the remaining stormwater basin budgets as presented by staff; and WHEREAS, this Ordinance does not appropriate any new funding; and WHEREAS, Article V, Section 10, of the City Charter authorizes the City Council to transfer by ordinance any unexpended and unencumbered appropriated amount or portion thereof from one fund (project) to another fund (project), provided that 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 that the following funds are hereby authorized for transfer and appropriated for expenditure for the purposes stated below. Appropriation FROM these projects in the Storm Drainage Fund: Old Town Basin Improvements $11,184 Dry Creek Basin Improvements $1,043,059 W. Vine Basin Improvements $763,585 Foothills Basin Improvements $4,778 Canal Importation Basin Improvements $602,946 Cooper Slough Boxelder Basin Improvements $353,956 Fossil Creek Basin Improvements $224,548 Cache La Poudre Drainageway Basin Improvements $167,780 Drainage System Replacements $174,020 - 2 - TOTAL $3,345,855 Appropriation TO this project in the Storm Drainage Fund: Stormwater Basin Improvements Capital Project $3,345,855 Introduced, considered favorably on first reading, and ordered published this 7th day of July, A.D. 2015, and to be presented for final passage on the 21st day of July, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on this 21st day of July, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk