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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/18/2010 - FIRST READING OF ORDINANCE NO. 058, 2010, APPROPRI DATE : May 18 , 2010 STAFF : Chuck Seest - rim First Reading of Ordinance No . 058 , 2010 , Appropriating $200 , 000 from Prior Year Reserves in the General Fund for the City's Contribution for the Boxelder Overflow Project. EXECUTIVE SUMMARY Ordinance No . 012 , 2009 , adopted on January 20 , 2009 , appropriated $ 1 . 2 million in the Stormwater Fund and Self- Insurance Fund and irrevocably pledged $800 , 000 in the General Fund to be contributed to the Town of Timnath , Colorado for improvements to the Boxelder Overflow Project . Ordinance No . 012 , 2009 states that the City will make four payments of $200 , 000 from the General Fund each year, starting in 2010 . This Ordinance appropriates the first payment of $200 , 000 for fiscal year 2010 . Subsequent payments will be appropriated in each of the next three years . BACKGROUND / DISCUSSION Fort Collins and Timnath have an intergovernmental agreement ( IGA) that resolved certain differences that arose between them regarding a variety of planning and growth management issues . The IGA was intended to firmly establish the Growth Management Areas (GMA) for each municipality. In addition , the IGA authorized the conveyance of an easement on Arapaho Bend Natural Area for a portion of the Boxelder Overflow Project, and the potential sale of the Vangbo Natural Areas property to Timnath . It also authorized a contribution by Fort Collins to Timnath ' s Boxelder Overflow Project. The IGA terminated overlapping annexations by Timnath and Fort Collins in the vicinity of Harmony and I -25 . Furthermore , the IGA made clear that the Riverwalk property, at the southwest corner of I -25 and Harmony will stay within the Fort Collins' GMA. FINANCIAL IMPACT This Ordinance increases 2010 appropriations in the City' s General Fund by $200 , 000 . The requested appropriation is from prior year reserves , representing 2009 appropriations that were unspent and unencumbered at year-end 2009 . STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading . ATTACHMENTS 1 . Ordinance No . 012 , 2009 . ATTACHMENT ORDINANCE NO. 012, 20.09 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING $1.2 MILLION PRIOR YEAR RESERVES IN THE STORMWATER FUND, AND SELF-INSURANCE FUND AND IRREVOCABLY PLEDGING AN ADDITIONAL $800,000 IN UNDESIGNATED RESERVES TO BE CONTRIBUTED TO THE TOWN OF TINMATH, COLORADO FOR IMPROVEMENTS TO THE BOXELDER OVERFLOW PROJECT WHEREAS,a dispute has arisen between the City of Fort Collins(the"City")and the Town of Timnath(the"Town")with regard to a number of land use and storm drainage issues and related matters,which dispute has been the subject of protracted mediation between the City and the Town; and WHEREAS, officials of the City and Town have, in the interest of regional cooperation, worked diligently to resolve these issues and have reached an agreement that has been approved by the City Council this same date by the adoption of Ordinance No.011,2009(the"Agreement");and WHEREAS,pursuant to the Agreement,the City Council has agreed to appropriate the sum of$1.2 million and to irrevocably pledge an additional$800,000 in General Fund reserves,to be paid to the Town as partial reimbursement for storm drainage improvements the Town intends to construct for the purposes of: (a) mitigating the flow of storm waters from portions of Boxelder Creek adjacent to the Town;and(b)removing certain areas within the Timnath Growth Management Area from the Boxelder Creek floodplain (the"Project"); and WHEREAS,the Agreement provides that such funds,as appropriated,are to be placed into an escrow account to be maintained by an independent institution, with the understanding that the Town will be eligible for reimbursement from such account for one-half of the costs it incurs for design, engineering, right-of-way acquisition and,construction costs incurred by the Town in connection with the Project up to a maximum of$2 million over the next four years: and WHEREAS, there is considerable benefit to the ratepayers of the Stormwater Utility in resolving any outstanding differences between the City and the Town with regard to the manner in which the disposition of storm waters from Boxelder Creek have historically been handled or the manner in which the current rainfall standards and floodplain were established for the areas adjacent to and within the Town; and WHEREAS, in particular, the Agreement benefits the Stornwater Utility ratepayers by expediting and faciliting the Project,thereby eliminating a longstanding dispute as to whether storm waters should be allowed to flow through two currently closed box culverts under Interstate 25 and alleviating the possible need to manage such additional flows by constructing within the city new storm drainage facilities at an estimated cost of over$4 million; and WHEREAS, there are other benefits to be derived by the City from the Agreement,such as avoiding costly litigation involving the competing annexations of contested areas, and fostering a long-term collaborative relationship with the Town; and WHEREAS, in recognition of the foregoing benefits to both the Stormwater Utility ratepayers and the general citizenry, the City Council believes it to be in the best interests of the Stormwater Utility ratepayers and of the residents of the City to appropriate the funds necessary to fund the City's financial obligations under the Agreement; and WHEREAS, funds to satisfy the City's obligations tinder the Agreement are available from prior year reserves in the Stormwater Fund, General Fund and Self-Insurance Fund; and WHEREAS, the City's Self-Insurance Program Fund exists for the purpose of covering potential costs and attorneys'fees that may be incurred by the City in defending against various kinds of liability claims and,pursuant to the recommendation of the City Manager and City Attorney,the City Council believes it to be appropriate to fund a portion of the City's contribution to the Boxelder Overflow Project from such fund; and WHEREAS,Article V.Section 9,of the Charter of the City of Fort Collins 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. NOW,THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That,pursuant to Article XII,Section 6 of the City Charter,the City Council hereby finds and determines that the appropriation of One Million and No/100 Dollars ($1,000,000.00)from the Stormwater Fund Prior Year Reserves and the expenditure of said amount to Timnath for the Project will be beneficial to the ratepayers of said utility, for the reasons stated above, and that said appropriation and expenditure are in the best interests of the City. Section 2. That there is hereby appropriated for expenditure from the Stormwater Fund Prior Year Reserves the sum of ONE MILLION DOLLARS ($1,000,000)to be contributed to the Town of Timmath, Colorado for improvements to the Boxelder Overflow Project. Section 3. That there is hereby appropriated for expenditure from the Self-Insurance Fund in the suns of TWO HUNDRED THOUSAND DOLLARS($200,000)to be contributed to the Town of Timmath, Colorado for improvements to the Boxelder Overflow Project. Section 4. That the City Council hereby irrevocably pledges the sum of Eight Hundred Thousand Dollars ($800,000.00) in undesignated General Fund Reserves for the purpose of satisfying the City's financial obligations under Section 7.3 of the Agreement,pursuant to the tents and conditions stated therein. -2- Introduced, considered favorably on first reading, and ordered published this 20th day of January, A.D. 2009, and to be presented for final passage on t 3rd day of February, A.D. 2009. Mayo ATTEST:- _ a'ti A � City Clerk" Passed and adopted on final reading on the 3rd day of February, A.D. 2009. A MayoU ATTEST: City Clerk -3- ORDINANCE NO. 058, 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING $200,000 FROM PRIOR YEAR RESERVES IN THE GENERAL FUND FOR THE CITY'S CONTRIBUTION FOR THE BOXELDER OVERFLOW PROJECT WHEREAS, the City and the Town of Timnath (the "Town") entered into an intergovernmental agreement dated February 17,2009,which was approved by the City Council by the adoption of Ordinance No. 011, 2009 (the "IGA"); and WHEREAS, the IGA states that the City and the Town will share the cost of the Boxelder Overflow Project (the "Project") as such Project is defined in the IGA ; and WHEREAS, pursuant to the IGA, the maximum amount of the City's contribution to the Project is $2 million, and the IGA establishes a schedule (the "Contribution Schedule") by which the City is to appropriate and transfer its contribution to an escrow account established pursuant to the IGA; and WHEREAS,the Contribution Schedule requires that the City irrevocably pledge toward the City's contribution the sum of$806,000 in undesignated General Fund reserves and such pledge was made by Ordinance No. 012, 2009 (the "Pledge"); and WHEREAS,the City's initial contribution under the Contribution Schedule is in the amount of$200,000; 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. WHEREAS,City staff has determined that the appropriation described herein will not cause the total amount appropriated in the General Fund to exceed the current estimate of actual and anticipated revenues to be received in that fund during the fiscal year. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated for expenditure in the General Fund the sum of TWO HUNDRED THOUSAND DOLLARS ($200,000) for transfer to the escrow fund for the Boxelder Overflow Project.. Introduced, considered favorably on first reading, and ordered published this 18th day of May, A.D. 2010, and to be presented for final passage on the 1 stday of June, A.D. 2010. Mayor ATTEST: City Clerk Passed and adopted on final reading on the 1 st day of June, A.D. 2010. Mayor ATTEST: City Clerk