HomeMy WebLinkAbout172 - 12/17/2002 - APPROPRIATING PRIOR YEAR RESERVES IN THE TRANSPORTATION SERVICES FUND FOR TRANSFER TO THE NORTH FRON ORDINANCE NO. 1729 2002
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES IN THE TRANSPORTATION SERVICES
FUND FOR TRANSFER TO THE NORTH FRONT RANGE TRANSPORTATION
&AIR QUALITY PLANNING COUNCIL FUND FOR THE PURPOSE OF PROVIDING
AN INTEREST-BEARING LOAN TO THE METROPOLITAN PLANNING
ORGANIZATION
WHEREAS, the North Front Range Transportation & Air Quality Planning Council (the
"NFRT&AQPC") is the Metropolitan Planning Organization (MPO) and lead air quality
planning agency for the North Front Range region; and
WHEREAS, the MPO promotes regional transportation and transportation related air
quality planning, and cooperation and coordination among federal, state, and local governments
in the North Front Range area; and
WHEREAS, voting members of the MPO include Fort Collins, Greeley, Loveland,
Larimer County, Weld County, Evans, Timnath, Windsor, Berthoud, LaSalle, Johnstown,
Milliken, Garden City, the State of Colorado Transportation Commission, and the State of
Colorado Air Quality Control Commission; and
WHEREAS, the funds for the administration of the MPO program are federal
transportation program funds appropriated by the federal government and administered by the
Colorado Department of Transportation (CDOT), based on the federal fiscal year of October 1
through September 30; and
WHEREAS, under the terms of an Intergovernmental Agreement, dated May 17, 2001,
between the City and the MPO, entitled Intergovernmental Agreement for the Provision of
Support Services, the City provides support services to the MPO, including accounting and
financial services, purchasing services, risk management services, budgeting services, human
resource services, and legal services, and accordingly, manages federal grant revenue and
matching funds received on behalf of the MPO; and
WHEREAS, in February 2001, the MPO retained Corona Research, Inc. to analyze and
report on the implications of an independent MPO; and
WHEREAS, the Corona Report (the "Report"), issued in July 2001, identified the MPO's
current relationship with the City of Fort Collins in the area of cash management, whereby the
MPO's accounts receivable and accounts payable flow through the City's accounting system,
and from which the MPO benefits through the use of the City's large cash reserves and funding
streams; and
WHEREAS, the aforementioned benefit derived by the MPO, is clearly in conflict with
the MPO's desire to become a regional government, operating as a joint venture supported by its
members; and
WHEREAS, the Report recommends that the MPO secure a low/no interest line of credit
(or"Float") from a member entity or entities, for a term of three to five years, during which time
the MPO would attempt to secure other long-term, independent, funding streams; and
WHEREAS, the MPO has requested financial support in the amount of$100,000, in the
form of an advance, loan, or other financial transaction from the City of Fort Collins, the City of
Greeley, the City of Loveland, Larimer County, and Weld County for a total of$500,000; and
WHEREAS, while staff is in agreement that the City of Fort Collins and four other
member entities should contribute to establishing financial support for the MPO, the City, in
order to address the MPO's cash flow issues in 2002, proposes setting up a loan, not to exceed
$300,000, for the MPO; and
WHEREAS, staff has identified prior year reserves in the City's Transportation Services
Fund ($300,000) to be used for the loan to the MPO; and
WHEREAS, under the terms of said loan, the City will transfer only the amounts needed
by the MPO in 2002 to maintain a positive cash flow; and
WHEREAS, reimbursement to the City by the MPO, may come from payments to the
MPO from other member entity loans, advances, or MPO grant reimbursements; and
WHEREAS, the City anticipates that the MPO will reimburse the City for the principal
loaned and interest, upon the MPO obtaining the necessary funding sources for the payment of
interest,; and
WHEREAS, City Council adopted Resolution 2002-108, on November 19, 2002,
authorizing the Mayor to enter into an intergovernmental agreement with North Front Range
Transportation & Air Quality Planning Council, a body politic and corporate (the "MPO"), for
the purpose of providing an interest-bearing loan to the North Front Range Transportation & Air
Quality Planning Council; and
WHEREAS, Article V, Section 9, of the Charter of the City of Fort Collins (the
"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, it is the desire of the Council to appropriate the sum of $300,000 from
Transportation Services Fund prior year reserves for transfer to the North Front Range
Transportation & Air Quality Planning Council Fund, for appropriation therein, as an interest-
bearing loan to the Metropolitan Planning Organization.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS that there is hereby appropriated from prior year reserves in the Transportation
Services Fund the sum of THREE HUNDRED THOUSAND DOLLARS ($300,000) for transfer
to the North Front Range Transportation & Air Quality Planning Council Fund and appropriated
therein as an interest-bearing loan, providing the Metropolitan Planning Organization with the
necessary financial support, pending receipt of grant reimbursements, and providing support for
the MPO becoming a regional government, operating as a joint venture supported by its
members.
Introduced and considered favorably on first reading and ordered published this 19th day
of November, A.D. 2002, and to be considered for final passage on the 17th day of December,
A.D. 2002.
Mayor ` .
ATTEST:
U -A
City Clerk
Passed and adopted on final reading this 17th day of December, A.D. 2002.
Mayor
ATTEST:
5ML A
City Clerk