HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/18/2017 - SECOND READING OF ORDINANCE NO. 090, 2017, REAPPROAgenda Item 5
Item # 5 Page 1
AGENDA ITEM SUMMARY July 18, 2017
City Council
STAFF
Lawrence Pollack, Budget Director
Mike Beckstead, Chief Financial Officer
SUBJECT
Second Reading of Ordinance No. 090, 2017, Reappropriating Funds Previously Appropriated in 2016 But Not
Expended and Not Encumbered in 2016.
EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading on July 5, 2017, reappropriates 2016 appropriations
authorized by City Council that lapsed at the end of 2016. The authorized expenditures were not spent or
could not be encumbered in 2016 because:
there was not sufficient time to complete bidding in 2016 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
2016 and reappropriation of those dollars is necessary for completion of the project in 2017
to carry on programs, services, and facility improvements in 2017 with unspent dollars previously
appropriated in 2016.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. First Reading Agenda Item Summary, July 5, 2017 (PDF)
2. Ordinance No. 090, 2017 (PDF)
Agenda Item 20
Item # 20 Page 1
AGENDA ITEM SUMMARY July 5, 2017
City Council
STAFF
Lawrence Pollack, Budget Director
Mike Beckstead, Chief Financial Officer
SUBJECT
First Reading of Ordinance No. 090, 2017, Reappropriating Funds Previously Appropriated in 2016 But Not
Expended and Not Encumbered in 2016.
EXECUTIVE SUMMARY
City Council authorized expenditures in 2016 for various purposes. The authorized expenditures were not
spent or could not be encumbered in 2016 because:
there was not sufficient time to complete bidding in 2016 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
2016 and reappropriation of those dollars is necessary for completion of the project in 2017
to carry on programs, services, and facility improvements in 2017 with unspent dollars previously
appropriated in 2016.
In the above circumstances, the unexpended and/or unencumbered monies lapsed into individual fund
balances at the end of 2016 and reflect no change in Council policies.
Monies reappropriated for each City fund by this Ordinance are as follows:
Fund 2016 Amended
Budget
Reappro-
priation Ord.
No. 058,
2017
Additional
Reappropriation
Request
% of 2016
Amended
Budget
General Fund $144,587,414 $948,174 $360,768 0.7%
Keep Fort Collins Great Fund 30,582,621 691,195 5,000 2.3%
Light and Power Fund 144,568,778 107,933 0.1%
Data and Communications
Fund
11,544,230 301,600 2.6%
Utility Customer Service and
Administration
18,168,083 40,608 0.0%
TOTAL $349,451,126 $2,048,902 $406,376 0.7%
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
During the February Council Finance Committee meeting, the Committee requested that the executive team
(ELT) review all 2017 reappropriation requests to ensure they were still organizational priorities and compare
ATTACHMENT 1
Agenda Item 20
Item # 20 Page 2
those with the other potential 2017 additional funding needs which were also presented during that same
meeting.
During the March Council Finance Committee meeting, the Committee voiced concerns with year-to-date sales
tax collections and questioned whether all 2016 Reappropriation requests had to be brought forward at that
time before having a better understanding of the City’s overall revenue picture. ELT then evaluated the
original requests and separated them out into those brought forward (totaling $2,048,902) and those that could
be postponed.
In May, Council approved the Reappropriation items brought forward in Ordinance No. 058, 2017. That
ordinance contained the majority, but not all the original requests. The remaining items have been further
vetted and remain as priorities to be considered for reappropriation. In the vetting process, several items were
excluded from consideration due to not being able to complete the work within fiscal year 2017 due to the
timing of the second ordinance. All the items included in the remaining 2017 reappropriation request are
considered organizational priorities and can be completed in 2017.
The postponed requests were discussed with the Council Finance Committee in its May 2017 meeting, when
an update of overall City revenue was discussed. Council Finance Committee is supportive of bringing the
remaining 2017 Reappropriation items forward for full Council consideration.
GENERAL FUND
Community Development & Neighborhood Services
1. Development of Transition Standards for Old Town and Downtown Plans - $30,000 (plus an
additional $5,000 in KFCG totals $35,000 for request)
Purpose for funds: During the course of both the Old Town Neighborhoods Plan and the Downtown Plan,
the community identified several concerns specifically related to architectural design, building height,
parking, and other development impacts in the areas of transition between the Downtown and the adjacent
Old Town Neighborhoods. The new transition standards created with these funds implement one of the
highest priority issues identified in the two Plans.
Reason funds not expensed in 2016: Funds were not fully expended by December 2016 for the
Downtown Plan and Old Town Plan since the Downtown Plan vendor did not accomplish specific goals
established, and they experienced scheduling issues with respect to delivering their final product. Staff
has determined that focusing on this high priority action item, identified in both Plans, would be a fiscally
responsible use of the remaining funds and address an issue of community concern.
Environmental Services
2. Advanced Waste Stream Optimization - $118,785
Purpose for funds: This offer proposed four general tasks to enable the City to become more systematic
about managing the community’s waste stream for optimal benefit that included systematically evaluating
“waste” materials using Sustainable Materials Management (SMM) framework, supporting innovation in
waste to clean energy, and focusing on organics, including building regional partnerships/infrastructure.
The funds will be used to further these objectives through:
1. Support economic development of recycling businesses/industry cluster in Fort Collins using a
competitive process for issuing small grants. ($60K)
2. Conduct extensive community educational campaign to reduce food waste at the source. ($20k)
3. Create toolkit and protocol for conducting waste sorts (residential, business, etc.) to easily and
regularly audit waste materials and improve diversion practices through reliable local data. ($10K)
4. Pilot systems analysis research to identify waste-related GHG reduction opportunities ($28k)
Agenda Item 20
Item # 20 Page 3
Reason funds not expensed in 2016: The funds that were used supported a broad and diverse number of
projects and programs in 2015 and 2016. Several additional strategies that are central to further advancing
Sustainable Materials Management were identified but delayed based upon staff availability and alignment
with regional planning efforts.
Parks
3. East Park Satellite Shop - $59,000
Purpose for funds: Funds will be used to purchase supplies and equipment for the satellite shop that will
serve the new east park district and Forestry crew. The shop is located at the Bacon park site next to
Bacon Elementary school on Timberline Road. When the permanent facility is constructed on the new
East Park site these items will be transferred and used at the new permanent location to be built in 2018 or
2019.
Reason funds not expensed in 2016: Funds were not spent in 2016 because the existing house that is
being repurposed as a satellite shop will not be available until the tenant moves out in spring 2017.
4. Parks Lifecycle Projects - $93,655
Purpose for funds: Funds will be used to renovate restroom/storage area at Edora Park and tennis courts
at Troutman Park.
Reason funds not expensed in 2016: Funds were not spent at the Edora restroom/storage area because
the complexity of the project delayed the bidding process. There were not sufficient funds remaining to
replace the tennis courts at Troutman Park. Reappropriated funds will be added to 2017 funds to complete
this project.
Social Sustainability
5. Neighborhood Renewal Project - $59,328
Purpose for funds: These funds were for the Renewal of Neighborhoods in a State of Change BFO
Enhancement administered by the Social Sustainability Department. The intent of the offer is to focus
public investment in older neighborhoods “in order to stabilize them or begin a restoration process”.
Reason funds not expensed in 2016: Staff planned and implemented a variety of projects from this fund in
2016 which met the goals defined in the original offer. There were additional projects identified to utilize
the remaining funds; however, time ran out towards the end of the calendar year and staff was not able to
begin the required procurement process needed to utilize the funds. Staff has been working with
Purchasing to create an RFP early in 2017 to facilitate a pilot “asset mapping” project in the North College
corridor area to design and implement a robust community engagement process and design a strategy
document. This will result in a neighborhood vision which will allow immediate action once the funds are
re-appropriated.
With recent feedback from residents in the Alta Vista neighborhood regarding the proposed sidewalk
construction project, staff envisions a portion of these reappropriated funds will go towards making
additional improvements in that neighborhood.
Agenda Item 20
Item # 20 Page 4
KEEP FORT COLLINS GREAT FUND
Community Development & Neighborhood Services
6. Development of Transition Standards for Old Town and Downtown Plans - $5,000 (plus an
additional $30,000 in General Fund totals $35,000 for request)
Please see description in #1 under General Fund.
UTILITY CUSTOMER SERVICE AND ADMINISTRATION
Utility Technology & Customer Service
7. Cyber Security Consulting Services - $40,608
Purpose for funds: IT Application Services for Utilities is currently working with a third party cyber security
consultant to help identify any risks in the computing environment/infrastructure that needs to be mitigated
for the Utilities Billing System. This vendor will also be performing a cyber security assessment on the
Electric SCADA System. The third party consultant (AESI) will be working with Utilities to recommend a
good Cyber Security Governance Framework. Staff is now using the previously committed funds after
working through a cyber security assessment of the Utilities Billing System. Staff would like to have the
remaining $40,608 of the original BFO approved offer reappropriated for work focused on additional
Utilities critical systems. Being able to use these funds would help Utilities to stay ahead of ongoing risks,
and improve the cyber security maturity level of the overall Utilities Service Area.
Reason funds not expensed in 2016: During the initial BFO year that the Cyber Security funds were
approved (2015), the staff member responsible for carrying out the cyber security program for Utilities was
seriously injured in a non-work related accident. She missed many months of work initially, and was not
able to return to full-time work until September 2016. As a result, staff was only able to finalize an RFP
and select a vendor in late 2016. In addition, staff believes the current vendor did not understand the full
requirements of the project, which required additional negotiation and led to further delay. Having these
funds will help staff keep moving in this vitally critical area.
CITY FINANCIAL IMPACTS
This Ordinance increases 2017 appropriations by $406,376. A total of $360,768 is requested for
reappropriation in the General Fund, $5,000 from the Keep Fort Collins Great Fund and $40,608 is requested
from Utility Customer Service and Administration. Reappropriation requests represent amounts budgeted in
2016 that could not be encumbered at year-end. The appropriations are from prior year reserves.
ATTACHMENTS
1. Powerpoint presentation (PDF)
-1-
ORDINANCE NO. 090, 2017
OF THE COUNCIL OF THE CITY OF FORT COLLINS
REAPPROPRIATING FUNDS PREVIOUSLY APPROPRIATED IN 2016
BUT NOT EXPENDED AND NOT ENCUMBERED IN 2016
WHEREAS, City Council authorized expenditures in 2016 for various purposes in the
General Fund, Keep Fort Collins Great Fund, and the Utility Customer Service and
Administration Fund, portions of which were not spent or encumbered in 2016; 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, 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, 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 2016 for which
such appropriated funds were not expended and not encumbered during 2016.
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 ONE THOUSAND FOUR HUNDRED
FORTY DOLLARS ($301,440) for the following purposes:
Development of Transition Standards for Old Town and
Downtown Plans
$30,000
Advanced Waste Stream Optimization 118,785
East Park Satellite Shop 59,000
Parks Lifecycle Projects 93,655
Total General Fund $301,440
-2-
Section 3. That there is hereby appropriated for expenditure from prior year reserves
in the Keep Fort Collins Great Fund the sum of FIVE THOUSAND DOLLARS ($5,000) for the
following purposes:
Development of Transition Standards for Old Town and
Downtown Plans
$5,000
Introduced, considered favorably on first reading, and ordered published this 5th day of
July, A.D. 2017, and to be presented for final passage on the 18th day of July, A.D. 2017.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 18th day of July, A.D. 2017.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk