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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/02/2017 - SECOND READING OF ORDINANCE NO. 058, 2017, REAPPROAgenda Item 7 Item # 7 Page 1 AGENDA ITEM SUMMARY May 2, 2017 City Council STAFF Lawrence Pollack, Budget Director Mike Beckstead, Chief Financial Officer SUBJECT Second Reading of Ordinance No. 058, 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 April 18, 2017, reappropriates 2016 appropriations approved by City Council that lapsed at the end of 2016. 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. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, April 18, 2017 (w/o attachments) (PDF) 2. Ordinance No. 058, 2017 (PDF) Agenda Item 16 Item # 16 Page 1 AGENDA ITEM SUMMARY April 18, 2017 City Council STAFF Lawrence Pollack, Budget Director Mike Beckstead, Chief Financial Officer SUBJECT First Reading of Ordinance No. 058, 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 Reappropriation Amount % of 2016 Amended Budget General Fund $143,734,196 $948,174 0.7% Keep Fort Collins Great Fund 25,849,423 691,195 2.7% Light and Power Fund 143,023,302 107,933 0.1% Data and Communications Fund 11,544,230 301,600 2.6% TOTAL $324,151,151 $2,048,902 0.6% STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION During the February Council Finance Committee meeting, the Committee requested the executive team (ELT) to review all 2017 reappropriation requests to ensure they were still organizational priorities and compare those with the other potential 2017 additional funding needs which were also presented during that same meeting. ATTACHMENT 1 Agenda Item 16 Item # 16 Page 2 The ELT met and first evaluated the potential 2017 additional funding needs and came to the following conclusions:  Police Campus West Substation Build-out: Brought forward to Council as a supplemental appropriation for First Reading on March 7and adopted on Second Reading on March 21.  Three Jail Beds: Being brought forward to Council as a supplemental appropriation on a future TBD date  3D Printing: Being brought forward to Council as a supplemental appropriation for First Reading on March 21 and considered on Second Reading on April 18.  It was determined that all other items presented to Council Finance Committee would be postponed until more information was solidified. That left the original 2017 reappropriation items being considered. The ELT did a review of all of those items and determined that they were all still organizational and community priorities. As such, those exact same items were brought forth again for Council’s consideration. During the March Council Finance Committee meeting, the Committee voiced concerns with year-to-date sales tax collections and questioned whether all Reappropriation requests had to be brought forward at this time before having a better understanding of the City’s overall revenue picture. The executive team then evaluated the original requests and separated them out into those being brought forward in this Ordinance (totaling $2,048,902) and those that could be postponed. The postponed requests will be included in a discussion with the Council Finance Committee in their May 2017 meeting when an update of overall City revenue will be discussed. GENERAL FUND Communications & Public Involvement 1. Engagement Platform Replacement - $4,000 (plus an additional $8,400 in KFCG totals $12,400 for request) Purpose for funds: Funding will be used to purchase an online public engagement platform. The online platform offers a suite of tools that allow for additional outreach and input to significantly enhance the City's public engagement efforts. It's customizable ‘toolbox’ approach allows for a mix of tools that leverage IAP2 (International Associations of Public Participation) best practices, and mirrors the City's in-person approach to public engagement. This platform will be an instrumental tool in engaging residents during the City's upcoming comprehensive plan updates. Reason funds not expensed in 2016: Funding from 2016 was earmarked to replace the City's former platform, MindMixer, which no longer meets the needs of the City. The City's public engagement team researched other platforms throughout the year, but a suitable replacement platform was not identified until Q4. Due to the selection timing, the contract was not finalized by year-end. The contract was finalized in January, and the platform will be implemented in Q1 2017. Environmental Services 2. CAP Initiatives and Implementation - $76,719 Purpose for funds: To complete project work on the 2016 Work Plans associated with the 2016 off-cycle appropriations for the Road to 2020 program. The reappropriated funds will be used primarily ($50K) to address how to divert the 70,000 ash trees in Fort Collins from landfill disposal in the event of an Emerald Ash Borer (EAB) infestation. The remaining funds will be utilized to complete work associated with four of the other funded projects. This work will be accomplished using consultants and/or an hourly program intern to ensure completion in 2017. Agenda Item 16 Item # 16 Page 3 Reason funds not expensed in 2016: The Biomass Feasibility Study Team study, designed to explore diverting wood waste from landfills by developing a regional biomass burner, concluded that a biomass burner is not a suitable solution for managing the large volume of woody material anticipated to come from dead ash trees as a result of Emerald Ash Borer (EAB). The parameters of the study were to research biomass burning only - not other approaches to wood utilization or landfill diversion mechanisms. Although the initial goals of the study have been achieved, no solution has been identified to address waste-wood issues caused by an EAB infestation. Reappropriating the funds will allow staff to redesign/expand the study to examine additional options for use of urban waste-wood from City Forestry Division activities. The study would remain focused on the threat of EAB- generated woody material, but would also examine options for the wood generated by private properties. This option best addresses the overall emission reduction potential, as well as the Road to Zero Waste goals. FC Moves 3. Lincoln Corridor Plan Neighborhood Projects - $201,199 Purpose for funds: These funds originally provided for the design and construction of a total of ten neighborhood infrastructure projects identified in the Lincoln Corridor Plan, mostly located within the Northside Neighborhoods (Buckingham, Andersonville, San Cristo/Via Lopez, and Alta Vista). Staff coordinated the design and implementation of the projects with a Neighborhood Advisory Committee comprised of neighborhood residents. Six of the ten projects have been completed, and one is being completed in coordination with the development department. This reappropriation will fund the remaining three projects: neighborhood art, park improvements, and brewery wayfinding. Reason funds not expensed in 2016: These projects are a multi-year effort, including design and construction of projects on varying timelines. Of the ten funded neighborhood projects, six have been completed, and four are nearing completion. At the direction of Council and executive leadership, staff worked extensively with a citizen Neighborhood Advisory Committee to ensure the projects meet the diverse needs and desires of the neighborhoods involved. For the remaining projects, this coordination, context sensitive design, and development of a public art approach took most of 2016. The remaining projects are on track to be completed in 2017, if funds are reappropriated. Natural Areas 4. Instream Water Flow - $168,445 Purpose for funds: The funds will provide for environmental flows within the urban reach of the Cache la Poudre River. This includes both stream flow and mechanisms to measure and convey water past existing diversion structures. Fish passageways are the preferred means to convey and measure water as construction of these features provide for increased aquatic connectivity and thereby increase the overall health of the Poudre River. Reason funds not expensed in 2016: The Natural Areas Department (NAD) helped design and install one fish passageway on the Fossil Creek Reservoir Inlet Structure. The passageway is functional but additional work is needed to enhance the connection of the passageway to live stream flows under low flow conditions. NAD plans to use a portion of the remaining funds (approximately $40,000) to design and construct the modification to the passageway in 2017 and, once completed, will be able to finalize the water measurement component of the project. In addition, Natural Areas is working with the Cache la Poudre Reservoir Company (CLPRC) to design and install fish passage/water measurement on the Timnath Reservoir Inlet Ditch (aka Timnath Inlet). NAD met several times in 2016 with CLPRC to discuss designs, contracted with Anderson Consulting Engineers to develop preliminary designs, and is in the process of developing an agreement with CLPRC outlining roles, responsibilities, funding, and operational needs of the diversion. These conversations were not completed in time to allow construction in 2016. This project represents multi-year planning and design and the remaining funds are needed to help complete the construction phase planned for 2017. It’s also important to note the cost of the project will Agenda Item 16 Item # 16 Page 4 exceed current funding levels; therefore the remaining funds are needed to help match and leverage the outside funding sources needed to complete the project. Operation Services 5. Edora Pool Ice Center (EPIC) Entrance Concrete Work - $125,000 Purpose for funds: A building modification study done in late 2015 determined that the entrance to EPIC requires some slope modifications in order to comply with current Americans with Disabilities Act regulations. These modifications were not identified prior to starting the interior work in the EPIC lobby in 2016. Once the interior was under construction, it increased the urgency to complete the exterior work. This modification will create fully accessible parking spaces and a compliant path of travel to the front door. The project scope extends from the front doors to the handicap stalls in the parking lot and will include a heating system embedded in the concrete. Reason funds not expensed in 2016: This work was added late to the lobby renovation project that was completed in 2016. Surveys and design took more iterations to determine the best course of action for the modification work than originally anticipated. The design for implementation was not finalized until late December in 2016, and there was not enough time to get bids on the work in order to tie up the funds. This request is to complete the construction phase based on the design from 2016. Parks 6. Median Renovation Project - $120,093 Purpose for funds: Funds will be used to renovate medians at Harmony Road and JFK Parkway. Reason funds not expensed in 2016: Due to coordination of this project with Engineering the project was delayed until 2017. Funds will be used to renovate medians at Harmony Road and JFK Parkway. Social Sustainability 7. Affordable Housing and Homebuyer Assistance (HBA) Programs - $252,718 (plus an additional $200,000 in KFCG totals $452,718 for request) Purpose for funds: The Affordable Housing Funds and KFCG funds dedicated to housing are allocated annually to support critical affordable housing needs in the City of Fort Collins. All funds were awarded to housing service providers to further the goals identified in the City’s Affordable Housing Strategic Plan. The funding awarded in the Spring Competitive process was allocated upon second reading of the ordinance approving the allocation of the funds on May 17, 2016. The balance of funding was awarded to eligible housing projects in the Fall 2016 Competitive Process. The first reading of the resolution approving the allocation of the funds occurred November 15, 2016. Any un-allocated funds are intended to accumulate in the fund to meet future affordable housing needs. Reason funds not expensed in 2016: Although the funds were committed, it isn't always possible to negotiate and complete project contracts prior to the year end, which means that PO’s cannot be established. Some funds are allocated as match funding for projects receiving federal HOME/CDBG dollars. Under federal guidelines, these projects cannot be contracted until all CDBG/HOME requirements have been met. The HBA program is a City managed program, funds dedicated to that program aren’t contracted or PO’d, they’re wired to closing as individual loans are approved. From the time of initial funding commitments to completions of development, most housing projects take multiple years to complete. Agenda Item 16 Item # 16 Page 5 KEEP FORT COLLINS GREAT FUND Communications & Public Involvement 8. Engagement Platform Replacement - $8,400 (plus an additional $4,000 in General Fund totals $12,400 for request) Please see description in #3 under General Fund. Natural Areas 9. Land Improvement - $90,792 Purpose for funds: This offer was funded to support extensive ecological restoration of the Poudre River floodplain and channel improvements for the purpose improving wildlife habitat and restoring biodiversity. Due to the complexity and scale of this work, Natural Areas requested funds and received $125K/yr to support and match Natural Areas funding. The primary work intended include restoration planning and construction of restoration at Kingfisher Point Natural Area. Reason funds not expensed in 2016: The conceptual restoration plan for Kingfisher Point was completed in 2015. In 2016 the final design process was initiated as was the permitting with FEMA and the Army Corps of Engineers, but there wasn't time within that year to complete the projects. This reappropriation amount is needed to complete those projects. Some may push into 2018, but this requested KFCG money will be spent in 2017. 10. Northern Integrated Supply Project (NISP) Analysis and Response - $162,604 Purpose for funds: These funds are intended to support the City's effort and engagement with NISP (the Northern Integrated Supply Project) planning and permitting process. This process has been underway since 2008. The City's anticipated future engagement is likely to be extensive and will require these funds for technical and legal assistance. Reason funds not expensed in 2016: These funds were not used fully in 2016 because the permitting process has not passed expected milestones. For example these funds are needed to support the City's evaluation and response to the Final Environmental Impact Statement expected late 2017. The City's engagement with NISP is multi-year and multifaceted and some aspects and associated processes are in their early stages still. The money we requested was in 2015 was for use in the City's response to NISP, which is incomplete due to the delayed timeline as determined by the Army Corps of Engineers. So in 2016 we were unable to spend this money for its intended application because the external support will be needed (increasingly) as the process reaches the final EIS. Parks 11. ADA Playground Improvements - $37,552 Purpose for funds: Funds will be used to upgrade aging playground infrastructure at Lee Martinez Park to current ADA playground standards. Reason funds not expensed in 2016: The ADA improvement funds were not spent in 2016 due to having insufficient funds to complete the full upgrade at Lee Martinez Park playground, which delayed construction. Funds have been secured for the full upgrade in the 2017 budget. These requested ADA improvement funds will be added to 2017 funding to complete this project. 12. Equipment for Twin Silos Community Park - $9,771 Purpose for funds: Funds will be used to purchase equipment for Twin Silos Community Park. Agenda Item 16 Item # 16 Page 6 Reason funds not expensed in 2016: Funds were not spent in 2016 due to not having sufficient funds to purchase a toolcat for Twin Silos Community Park. The requested funds will be added to 2017 equipment funding to complete this purchase. 13. Parks Lifecycle Projects - $163,076 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. Re-appropriated funds will be added to 2017 funds to complete this project. Social Sustainability 14. Affordable Housing and Homebuyer Assistance (HBA) Programs - $200,000 (plus an additional $252,718 in General Fund totals $452,718 for request) Please see description in #15 under General Fund. Traffic 15. Traffic Operations-Arterial Ped Crossing & Neighborhood Mitigation Re-installation - $19,000 Purpose for funds: Funds are intended to complete projects already underway but were not able to be fully completed in 2016. The projects include enhanced crosswalks at Drake/Illinois (a rectangular rapid flash beacon) and Mulberry/Sherwood (HAWK) and neighborhood calming projects on Starflower, Larkbunting and Springfield. Reason funds not expensed in 2016: The need to complete in 2017 instead of 2016 is due to a concrete contractor that ran out of good weather in the fall to pour concrete, a boring contractor who couldn’t schedule the bore in December, and the Streets Department was unable to accommodate the re- installation of speed tables after a late season chip seal. These are neither new projects, nor whole projects that could be eliminated. (For instance at Drake and Illinois the RRFB is already installed, but the concrete work is not yet compete.) They are ongoing projects that were delayed across the end of year due to weather and construction/contractor timing. We expect to complete the projects this spring. LIGHT & POWER FUND Economic Health Office 16. Broadband Strategic Planning - $107,933 Purpose for funds: The City of Fort Collins, local education institutions, data oriented businesses, and community leaders recognize the increasing importance of broadband services to the community. The purpose of the Broadband Strategic Plan is to better understand the community’s current and future expectations regarding both residential and business broadband services and to then define a strategy for how those expectations can best be met. Reason funds not expensed in 2016: The broadband team accomplished many goals in 2016 including statistically-valid market demand studies (residential and small businesses), financial feasibility analysis, citizen outreach and multiple site visits to municipal broadband providers. December 20, 2016, Council directed staff to develop a Broadband Utility Business Plan and continued work on due diligence with a Agenda Item 16 Item # 16 Page 7 potential third party alternative model. The remaining funds will be used for consultation on the due diligence and site visits for the City's executive team to meet with failed broadband projects. DATA & COMMUNICATIONS FUND Information Technology 17. Electronic Plan Review Implementation - $301,600 Purpose for funds: The purpose of these funds is to continue the implementation of the Electronic Plan Review system for the Community Development and Neighborhood Services department that was approved by City Council on 7/19/16 per Ordinance #84. The system enables the City to provide electronic plan review as part of the building permit and development review process that includes streamlined processes for plan submittal, routing and review of construction/development plans, reduction of paper, automated online access of review comments, and overall greater efficiency of the review process. Reason funds not expensed in 2016: As originally stated in the Agenda Item Summary, this complex project requires about an 18-month project timeline to complete. To date, the purchase of the software licensing, at a cost of $182,400, was completed in October 2016 and systems configuration and design have since commenced. The requested funds will be used for the completion of this project and are for two purposes: (1) Fund the consulting services necessary to complete the custom configuration of the involved systems and to provide training; (2) Once the systems configuration is near completion, end user systems will be receive hardware and minor software upgrades that will enable staff to process and review the large-scale electronic documents efficiently at their desks and in conference rooms. CITY FINANCIAL IMPACTS This Ordinance increases 2017 appropriations by $2,048,902. A total of $948,174 is requested for reappropriation in the General Fund, $691,195 from the Keep Fort Collins Great Fund and $409,533 is requested from various other City funds. Reappropriation requests represent amounts budgeted in 2016 that could not be encumbered at year-end. The appropriations are from 2016 prior year reserves. ATTACHMENTS 1. Powerpoint presentation (PDF) -1- ORDINANCE NO. 058, 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, Light & Power Fund and the Utility Customer Service and Administration Fund, portions of which were not spent or encumbered in 2016; 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 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 NINE HUNDRED FORTY EIGHT THOUSAND ONE HUNDRED SEVENTY FOUR DOLLARS ($948,174) for the following purposes: Engagement Platform Replacement $4,000 CAP Initiatives and Implementation 76,719 Lincoln Corridor Plan Neighborhood Projects 201,199 Instream Water Flow 168,445 EPIC Entrance Concrete Work 125,000 Median Renovation Project 120,093 Affordable Housing and HBA Programs 252,718 Total General Fund $948,174. -2- Section 3. That there is hereby appropriated for expenditure from prior year reserves in the Keep Fort Collins Great Fund the sum of SIX HUNDRED NINETY ONE THOUSAND ONE HUNDRED NINETY-FIVE DOLLARS ($691,195) for the following purposes: Engagement Platform Replacement $8,400 Land Improvement 90,792 NISP Analysis and Response 162,604 ADA Playground Improvements 37,552 Equipment for Twin Silos Community Park 9,771 Parks Lifecycle Projects 163,076 Affordable Housing and HBA Programs 200,000 Traffic Operations Multiple locations 19,000 Total Keep Fort Collins Great Fund $691,195. Section 4. That there is hereby appropriated for expenditure from prior year reserves in the Light and Power Fund the sum of ONE HUNDRED SEVEN THOUSAND NINE HUNDRED THIRTY-THREE DOLLARS ($107,933) for the following purpose: Broadband Strategic Planning $107,933. Section 5. That there is hereby appropriated for expenditure from prior year reserves in the Data and Communications Fund the sum of THREE HUNDRED ONE THOUSAND SIX HUNDRED ($301,600) to be used for the following purpose: Electronic Plan Review Implementation $301,600. Introduced, considered favorably on first reading, and ordered published this 18th day of April, A.D. 2017, and to be presented for final passage on the 2nd day of May, A.D. 2017. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 2nd day of May, A.D. 2017. __________________________________ Mayor ATTEST: _______________________________ City Clerk