Loading...
HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/05/2019 - FIRST READING OF ORDINANCE NO. 036, 2019, REAPPROPAgenda Item 8 Item # 8 Page 1 AGENDA ITEM SUMMARY March 5, 2019 City Council STAFF Darin Atteberry, City Manager Mike Beckstead, Chief Financial Officer Lawrence Pollack, Budget Director John Duval, Legal SUBJECT First Reading of Ordinance No. 036, 2019, Reappropriating Funds Previously Appropriated in 2018 But Not Expended and Not Encumbered in 2018. EXECUTIVE SUMMARY The purpose of this item is to reappropriate monies in 2019 that were previously authorized by City Council for various expenditures in 2018 for various purposes. The authorized expenditures were not spent or could not be encumbered in 2018 because: • there was not sufficient time to complete bidding in 2018 and therefore, there was no known vendor or binding contract as required to expend or encumber the monies, • the project for which the dollars were originally appropriated by Council could not be completed during 2018 and reappropriation of those dollars is necessary for completion of the project in 2019, or • to carry on programs, services, and facility improvements in 2019 with unspent dollars previously appropriated in 2018 In the above circumstances, the unexpended and/or unencumbered monies lapsed into individual fund balances at the end of 2018 and reflect no change in Council policies. Monies reappropriated for each City fund by this Ordinance are as follows: STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. Agenda Item 8 Item # 8 Page 2 BACKGROUND / DISCUSSION The Executive Team has reviewed the reappropriation requests to ensure alignment with organization priorities and the Budget staff reviewed the requests to verify that all met qualification requirements. GENERAL FUND Natural Areas 1. Instream Flows - $28,491 Purpose for funds: The purpose of this offer is to fund work on instream flow related matters. This budget has been utilized to support efforts to improve Poudre River Flows. They have been invested to improve diversion structures and to plan and develop an instream flow augmentation plan with the State of Colorado and numerous regional partners. The plan requires collaboration from many agencies and potentially from the state legislature. Reason funds not expensed in 2018: While much progress has been made, there have been obstacles to overcome which have resulted in delays. Thus, the funds allocated to the plan have not yet been completely spent. The remaining funds in this budget will be used to continue to support a revised IGA among the partners which was adopted by City Council in 2018. The funds will be fully expended in 2019. Park Planning & Development 2. Community Opportunity Funds to Leverage Private Contributions- $25,000 (plus an additional $25,000 in Capital Projects Fund totals $50,000 for request) Purpose for funds: Community Opportunity Fund funding is being requested to leverage a private donation to improve Eastside Park. The funds will be used to pay the salary of a Park Planner to design the park improvements. Reason funds not expensed in 2018: Funds were not spent in 2018 due to the timing of the project discussions and an agreement on how to move forward with the project came too late in the year to complete the project. Parks 3. Medians Lifecycle Funding- $20,490 Purpose for funds: The medians and streetscape offer provides funding for maintenance of city owned medians along major arterials of the city. The lifecycle funding is used for renovating aging medians including major plant replacement, re-mulching or rocking, and irrigation system renovations Reason funds not expensed in 2018: Funds were not fully expended in 2018 due to insufficient funding and time to complete the next lifecycle project. The re-appropriated funds will be added to 2019 funding to renovate aging irrigation systems to assist with water conservation efforts on the medians and streetscapes. 4. Parks Lifecycle Funding- $50,904 (plus an additional $9,546 in KFCG totals $60,450 for request) Purpose for funds: The Parks lifecycle program provides funding for repair and replacement of park assets and infrastructure throughout the park system. Initiated in 1993, this program supports repair, replacement and renovation of over 1,000 varied Park assets within many different component categories including: buildings, fields, trails, courts, structures, playgrounds, irrigation, sidewalks, parking lots, and water related park components. This program is essential to keeping park facilities and infrastructure in safe usable condition as well as enhancing the infrastructure to support growing demand in the parks. Agenda Item 8 Item # 8 Page 3 Reason funds not expensed in 2018: Funds were not fully expended in 2018 due to insufficient funding and time to complete the next lifecycle project. The re-appropriated funds will be added to 2019 funding to replace an aging bridge.at Rolland Moore Park. City Clerk’s Office 5. Election Improvements- $20,000 Purpose for funds: We were working with Operations Services on a number of changes in the fall of 2018 to make improvements related to elections. These included a new ballot box for City Hall (purchase and install), a camera (purchase and install, as well as running electricity to the site) to watch activity surrounding the box 24/7, and improvements to the conference rooms, including Clickshare technology, to be used for webinars, training and viewing items staff teams and election help is working on. Unfortunately, these items were not fully completed or billed to 2018. There is no money in our 2019 budget to cover these charges; we are requesting 2018 funds as intended. Reason funds not expensed in 2018: We had additional election money since there was no coordinated election with the County for 2018. We intended to have all of this work completed in 2018 in preparation for our upcoming election in April 2019, but this did not occur. At this point, a lot of the work has been completed and the rest will be finalized by the end of February. None of what we are requesting monies for has been billed. Municipal Court 6. Temporary Judge- $10,000 Purpose for funds: In March 2018, Council adopted Resolutions 2018-021 and 2018-022 appointing two Temporary Judges to whom Chief Judge Lane could assign to hear civil case(s) filed in Municipal Court. Since no additional funding for personnel costs was appropriated for the Court's budget at that time to cover this new cost, a supplemental appropriation of $5,000 was approved by Council in August of 2018. However, in 2018 a civil case assigned to Temporary Judge Lisa Hamilton-Fieldman required the Court to expend $14,500 in additional personnel costs due to the case’s complexity. Nevertheless, at the end of 2018 the Court still had $10,000 of unexpended and unencumbered funds available to pay personnel costs. Reason funds not expensed in 2018: The civil case filed in April of 2018 is very complex with multiple parties and attorneys involved. A total of 49 individual filings have been filed to date. The case should reach final disposition in 2019, so the Court is requesting the use of the 2018 funds for the estimated personnel costs to be paid in 2019. Communications & Public Involvement 7. Enhanced Engagement of Underserved Populations - $10,000 Purpose for funds: To support expanded public engagement activities within underserved populations. Reimagining community engagement is a Council priority. In 2018, staff began working with local consultants to engage diverse and underserved parts of the community. This funding will be used to expand and formalize a partnership with a local cultural broker to help the City deepen its relationship and engagement with underrepresented populations. Reason funds not expensed in 2018: The City made good strides on efforts to reach underserved populations in 2018. A new strategy was identified later in the year to utilize a cultural broker partnership. Efforts to identify an appropriate partner and to evaluate how the partnership would work took longer than anticipated which prevented the funds from being expensed in 2018. This funding will be utilized to Agenda Item 8 Item # 8 Page 4 continue implementation of this strategy to enhance community engagement and expand our reach, particularly with underserved populations like Fort Collins' Spanish-speaking population. Community Development & Neighborhood Services 8. City Plan - $50,000 Purpose for funds: As an Economic Health enhancement offer, these funds are used to support the development of updates to three major City policy plans: City Plan (the community's comprehensive plan), the Transportation Master Plan, and the Transit Master Plan. City Plan provides high-level direction for the community and decision-makers on long-range, community-wide topics and fulfills state requirements to have a plan in place to guide future growth and development in the community and the adjacent Growth Management Area. Reason funds not expensed in 2018: In developing major policy plans, extensive community outreach and engagement takes place throughout the update process, which can span multiple years and require significant funding to facilitate engagement activities and events. City Council directed staff at Council work sessions in both November and December 2018 to continue targeted outreach activities with underrepresented populations. In order to achieve this direction, the reappropriation of funds is needed to continue these efforts in 2019 leading up to plan adoption. 9. Landmark Rehabilitation Loan- $22,866 Purpose for funds: The zero-interest, landmark rehabilitation loan program for designated Fort Collins landmarks is the Historic Preservation Division's central incentive program that supports rehabilitation of our community's important historic resources. The 2018 program funded $38,451 in loans, with the remainder of the balance budgeted for administrative program fees associated with recording and loan closings. These loans resulted in $69,401 in improvements to seven Fort Collins landmarks. Three of the loans were not closed due to circumstances beyond the control of program staff and property owners and require reappropriation in order to fulfill the commitments we made to property owners and close out the 2018 loan recipient award group. Reason funds not expensed in 2018: The remaining budget from 2018 constitutes $17,549 in landmark rehabilitation loans plus the related loan servicing fees that will be paid to Impact Development Fund at the time of closing. Three loan applicants met the 2018 application deadline and received approval to proceed with the work but the loans were not closed in 2018 due to extenuating circumstances (weather-related, personal illness, unexpected complications related to project scope). Each of these will be finalized in Q1 2019 and the loans can be closed and funds issued. Economic Health Office 10. Metro Districts- $8,552 Purpose for funds: The Economic Health Office provides oversight and management of the City's review of Metro District Service plans. Part of that process includes receiving funds from applicants to offset City costs incurred during review. The funds included in this reallocation request represent funds deposited with the City by the Metro Districts at the I-25 and Prospect interchange. The funds have been used to offset the City's review costs. Additional costs may be accrued in 2019. Any balance of funds must be returned to the applicant if unused. Therefore, the City will need to either expend these funds on additional review or refund them to the applicants. All funds are needed for these obligations. Reason funds not expensed in 2018: Funds are either expended at the time of review or refunded after the analysis is complete. Additional work continues related to the interchange funding, including the financing; therefore, these projects have not been closed out and no refunds have been issued. It is anticipated that the projects will close and funds will be expended in 2019. Agenda Item 8 Item # 8 Page 5 Social Sustainability 11. Affordable Housing Programs - $93,927 Purpose for funds: The Affordable Housing Funds are allocated annually through the Competitive Process to support critical affordable housing needs in the City of Fort Collins. All funds were awarded to housing programs or projects to further the goals identified in the City's Affordable Housing Strategic Plan. Reason funds not expensed in 2018: The $93,927 represents $900 in unspent program support costs and $93,027 in funding that have been committed to housing programs, CARE Housing rehabilitation and the Homebuyer Assistance Program, but not yet contracted. These are matching funds for federal grants requirements of the CDBG/HOME program. Under federal guidelines, CARE Housing project cannot be contracted until the federal requirements have been met. The HBA funding cannot be contracted until individual homeowners make application to program for specific properties under contract. Housing projects often span multiple years and are not contracted in the year they receive the initial allocation. KEEP FORT COLLINS GREAT FUND Natural Areas 12. West Nile Virus- $2,200 Purpose for funds: Offer 85.1 provides operational funds for the City's West Nile Virus (WNV) mitigation program. This offer funds proactive measures, such as mosquito larval control, to reduce the frequency and geographic extent of adult mosquito treatment via pesticide application. Additionally, funds provide for community outreach and education centered on reducing mosquito breeding habitat and personal protective options to reduce infection risk. Reason funds not expensed in 2018: The WNV program typically operates with very little annual underspend. However, in 2018, the City's purchasing department required the renegotiation of the mosquito pool testing contract with CSU. This renegotiation realized a savings of $8,406. Unanticipated costs to the program in 2018 included banner installation by the Utilities Department - approximately $2,200. This amount was charged by the Utilities department in early 2019. Parks 13. Parks Lifecycle Funding- $9,546 (plus an additional $50,904 in General Fund totals $60,450 for request) Please see description in #3 under General Fund. Communications & Public Involvement 14. Climate Action Plan Messaging and Engagement- $16,049 Purpose for funds: To continue implementation of the Climate Action Plan messaging campaigns in 2019. Community engagement has been noted as one of the top two challenges for achieving the community's climate action goals (financing is the other top challenge). In 2018, staff piloted a marketing campaign (Take Two) and reached over 5,000 Fort Collins households. This funding will be leveraged for the launch of the 2019 campaigns, which are designed to engage a wide range of households and businesses in simple, easy actions they can take that will save them time, money and energy (and help achieve the 2020 climate action goal). Reason funds not expensed in 2018: Expenditures of these funds were delayed in 2018 to ensure that a full evaluation of the Take Two pilot could take place. Lessons learned from the pilot are being incorporated into the proposed campaigns for 2019, and this funding will be used to continue community Agenda Item 8 Item # 8 Page 6 engagement and expand our reach, particularly with underserved populations, e.g., Fort Collins' Spanish- speaking population. TRANSPORTATION FUND Streets 15. Street Maintenance Program- $584,000 Purpose for funds: Streets is requesting $584,000 to be re-appropriated from the 2018 Street Maintenance Program (SMP) budget to cover the costs of the three projects listed below which were scheduled to be completed in 2018: • University Acres 1 – Garfield St. between Lemay Ave. and Green St. ($116,000) • Lakeside Neighborhood ($162,000) • Hickory St. ($306,000) Reason funds not expensed in 2018: The projects were postponed because Utilities needs to complete work prior to the street maintenance work being performed. The utilities work has been, or will be completed in 2019, and the Streets department will be able to complete the projects in 2019. CAPITAL PROJECTS FUND Park Planning & Development 16. Community Opportunity Funds to Leverage Private Contributions- $25,000 (plus an additional $25,000 in General Fund totals $50,000 for request) Please see description in #1 under General Fund. EQUIPMENT FUND Operation Services 17. 2018 Hail Damage Insurance Appropriation - $900,000 Purpose for funds: These funds are intended to fix about 350 vehicles from the June 19, 2018 hailstorm. The 2018 supplemental appropriation to cover this unanticipated expense was for $1.5M, which was based upon a per vehicle estimate at that time. This reappropriation request is for 100% of the remaining repair expenses based on the current bid that was recently completed. The repair contractor estimates three months to complete all the repairs. Reason funds not expensed in 2018: We were not able to do complete any of the work last year because of challenges that occurred with the RFP and finalizing the amount of the settlement. The RFP issues were resolved and we re-issued a second one later in the year. When the vendor was selected, it was too late to complete all the repairs within the calendar year. LIGHT AND POWER FUND Utility Customer Connection 18. Non-Residential Solar Rebates- $100,000 Purpose for funds: Rebates are offered for approved project applications in support of midsize non- residential solar projects through up front rebates. Projects of this type are generally located on large Agenda Item 8 Item # 8 Page 7 commercial rooftops and are “net metered” to benefit the project owner through reduction in on site utility bills. Reason funds not expensed in 2018: Utilities approved a group of solar rebate applications in late 2018 for which requisitions were submitted in order to generate a purchase order for each project. One of the requisitions was not entered into the system in time to be incorporated into the normal purchase order carryover review process. Completion of this reappropriation will preserve the 2019 funds for the intended Council purpose of additional solar projects. DATA & COMMUNICATIONS FUND Information Technology 19. Electronic Record Search- $103,000 Purpose for funds: The funds requested are to fund the implementation of an Electronic Record Search (eDiscovery) tool set and process that will enable organizations across the City to collaborate effectively and efficiently when Open Records and other searches are requested. The primary departments that will utilize this functionality are IT, City Attorney, City Clerk, Fort Collins Police Services, and various other departments within the City depending on the nature of the request. This project will enable the City to leverage the Office 365 (O365) workloads and applications the City is already paying for as a part of our tenant and will integrate other technology as identified and deemed necessary for an automated, thorough, and compliant process. Reason funds not expensed in 2018: The original idea was to bring in a completely new tool to meet identified electronic search functionality goals and run concurrently with the O365 project. As IT completed the O365 Exchange and Office deployment, IT became aware of the eDiscovery features in O365 and decided to evaluate that tool set as the feature set of O365 as it was not well known or understood at the time. After more in-depth evaluation and analysis, the eDiscovery in O365 appeared to be a good match. However, IT was unable to engage professional services in time to begin the project before year-end due to bandwidth capacity of implementing other large scale, high-priority projects in 2018. CITY FINANCIAL IMPACTS This Ordinance increases 2019 appropriations by $2,080,025. A total of $340,230 is requested for reappropriation in the General Fund, $27,795 from the Keep Fort Collins Great Fund and $1,712,000 is requested from various other City funds. Reappropriation requests represent amounts budgeted in 2018 that could not be encumbered at year-end. The appropriations are from 2018 prior year reserves. -1- ORDINANCE NO. 036, 2019 OF THE COUNCIL OF THE CITY OF FORT COLLINS REAPPROPRIATING FUNDS PREVIOUSLY APPROPRIATED IN 2018 BUT NOT EXPENDED AND NOT ENCUMBERED IN 2018 WHEREAS, City Council authorized expenditures in 2018 for various purposes in the General Fund, Keep Fort Collins Great Fund, Transportation Fund, Capital Projects Fund, Equipment Fund, Data and Communications Fund, and Light and Power Fund; portions of which were not spent or encumbered in 2018; and WHEREAS, Article V, Section 11 of the City Charter requires that all appropriations unexpended or unencumbered at the end of the fiscal year lapse to the applicable general or special fund, except that appropriations for capital projects and federal or state grants do not lapse until the completion of the capital project or until the expiration of the federal or state grant; 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 WHEREAS, City staff have determined that the amounts to be appropriated as described herein are available and currently unappropriated; and WHEREAS, it is in the best interests of the City and its residents to re-appropriate funds for the expenditures below, in furtherance of these expenditures authorized in 2018 for which such appropriated funds were not expended and not encumbered during 2018. 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 General Fund the sum of THREE HUNDRED FORTY THOUSAND TWO HUNDRED THIRTY DOLLARS ($340,230) for the following purposes: Instream Flows Community Opportunity Funds to Leverage Private Contributions $28,491 25,000 Medians Lifecycle Funding 20,490 Parks Lifecycle Funding 50,904 Election Improvements 20,000 Municipal Court: Temporary Judge Enhanced Engagement of Underserved Populations 10,000 10,000 City Plan 50,000 -2- Landmark Rehabilitation Loan Metro Districts Affordable Housing Programs 22,866 8,552 93,927 Total General Fund $340,230 Section 3. That there is hereby appropriated for expenditure from prior year reserves in the Keep Fort Collins Great Fund the sum of TWENTY-SEVEN THOUSAND SEVEN HUNDRED NINETY-FIVE DOLLARS ($27,795) for the following purposes: West Nile Virus $2,200 Parks Lifecycle Funding 9,546 Climate Action Plan Messaging and Engagement 16,049 Total Keep Fort Collins Great Fund $27,795 Section 4. That there is hereby appropriated for expenditure from prior year reserves in the Transportation Fund the sum of FIVE HUNDRED EIGHTY-FOUR THOUSAND DOLLARS ($584,000) for the following purpose: Street Maintenance Program $584,000 Section 5. That there is hereby appropriated for expenditure from prior year reserves in the Capital Projects Fund the sum of TWENTY-FIVE THOUSAND DOLLARS ($25,000) to be used for the following purpose: Community Opportunity Funds to Leverage Private Contributions $25,000 Section 6. That there is hereby appropriated for expenditure from prior year reserves in the Equipment Fund the sum of NINE HUNDRED THOUSAND DOLLARS ($900,000) for the following purpose: 2018 Hail Damage Insurance Appropriation $900,000 Section 7. That there is hereby appropriated for expenditure from prior year reserves in the Light and Power Fund the sum of ONE HUNDRED THOUSAND DOLLARS ($100,000) for the following purpose: Non-Residential Solar Rebates $100,000 Section 8. That there is hereby appropriated for expenditure from prior year reserves in the Data and Communications Fund the sum of ONE HUNDRED THREE THOUSAND DOLLARS ($103,000) for the following purpose: Electronic Records Search $103,000 -3- Introduced, considered favorably on first reading, and ordered published this 5th day of March, A.D. 2019, and to be presented for final passage on the 19th day of March, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 19th day of March, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk