HomeMy WebLinkAbout012 - 02/03/2009 - APPROPRIATING $1.2 MILLION PRIOR YEAR RESERVES IN THE STORMWATER FUND, AND SELF-INSURANCE FUND AND I 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 Tinmath, Colorado for improvements to the Boxelder Overflow Project.
Section 3. That there is hereby appropriated for expenditure from the Self-Insurance
Fund in the sum of TWO HUNDRED THOUSAND DOLLARS($200,000)to be contributed to the
Town of Tinmath, 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 ternis
and conditions stated therein.
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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.
i
Mayo
ATTEST:_
_ 2
City Clerk'
Passed and adopted on final reading on the 3rd day of February, A.D. 2009.
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May
ATTEST:
City Clerk
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