To: Honorable Mayor and Members of Town Council
From: Trish Muller, Finance Director
Title
Ordinance Approving Changes Of Appropriations For The Year 2016 Third Budget Amendment (Second Reading)
Body
________________________________________________________________________________
This ordinance was approved on first reading on June 14, 2016 by a vote of 6 to 0.
Executive Summary
The changes of expenditure appropriation in this proposed Third Amendment to the 2016 Budget include the following items to be considered for supplemental appropriation:
• Land Purchase and estimated closing costs for the Crystal Valley Fire Station $135,000
• Appraisal and environmental/soil study $20,000
• Architect initial site evaluation & remainder need for Architect oversite of Crystal Valley Fire Station project $35,000
• Community Center Roof replacement project amendment $237,471
Attachment B includes the supplemental appropriation items and Attachment C details estimated ending funds available for 2016.
Discussion
In 2007, the Town purchased the current site for the Crystal Valley Fire Station. This site is located in the Heckendorf development parcel originally designated as commercial property. Heavy rain storms occurred in 2013 and the storm sewer pipes located on the mid-southern end of the site failed leading to severe erosion of the site. The proposed land purchase would allow the Fire Department to move the planned Fire Station to the north end of the site to increase distance from the storm sewer line. This purchase would ensure sufficient space for the station and give the department full access to the property immediately adjacent to the station. The purchase price with estimated closing costs being requested at $135,000 includes 4.25 acres, located in and around the adjacent retention pond. The additional acreage of the retention pond is beneficial to the Utilities Department as they maintain the retention pond and this would also give them access to this area. The additional funds being requested includes an environmental assessment, a site engineering survey, and an appraisal estimated to cost $20,000 and an architect initial site evaluation and an Architect’s oversite of the Crystal Valley Fire Station for approximately $35,000. The 2016 budget currently includes the architectural design of the future Crystal Valley Fire Station. The Fire Department is seeking an increase in appropriation for completion of the above referenced items associated with the proposed Fire Station. These expenditures were originally anticipated to occur in 2017; however, in order to obtain a complete architectural design of the proposed Crystal Valley Fire Station, the Fire Department requests completion in 2016 to avoid future erosion issues on the currently owned site and prevent additional costs to update the station design.
The Parks and Recreation Department requests that additional funds be appropriated to accommodate the Community Center Roof replacement. This request addresses the third amendment to Equipment and Services Acquisition Agreement with Colorado Commercial Roofing Inc. for the replacement of the Community Recreation Center metal roof that was presented to and approved by Town Council on May 3, 2016 (Resolution 2016-52). This resolution identified that a budget amendment would be required since this is an unbudgeted amendment to the project for 2016. Costs for this project will be shared between the Community Center Fund (85%) and the General Long-term Planning Fund (15%) for a total of $237,471.
The roof replacement project is requested due to problems associated with the damaged roof are causing both operational and safety concerns. Colorado Commercial Roofing began work on the Recreation Center roof in November of 2015. The original replacement was expected to take between two to three months for completion but was delayed due to inclement weather on several occasions. In March, during the course of completing the initial scope of work, Colorado Commercial Roofing discovered wet insulation and decking materials in several areas of the roof. A stoppage of work was ordered to further investigate the cause of the issue and determine a solution for repairing damaged areas prior to completing the roof replacement as contracted. Colorado Commercial Roofing hired a consultant, Bodis Group Inc., who confirmed there was saturated insulation and decking in several areas of the roof. Both core sampling and thermal imagery were used to help confirm the damaged areas of the sub roof, which total about 8,000 square feet. The Parks and Recreation Department is requesting additional funds to complete the roof replacement to avoid any future safety issues or negative impacts to attendance.
The changes of appropriation in this proposed Third Budget Amendment include items requested for consideration for supplemental appropriation. Attachment B includes the supplemental appropriation request.
Budget Impact
As presented in Attachment C, the Finance Department has ensured that funding is available within the fund balance of each fund. A summary of the proposed total change in 2016 expenditure appropriation changes by fund is shown in the following table:
|
Fire Capital Fund |
190,000 |
|
General Long-Term Planning Fund |
35,621 |
|
Community Center Fund |
201,850 |
|
TOTAL |
$ 427,471 |
Staff Recommendation
Staff recommends that Town Council approve the Ordinance on first reading. Staff plans to bring the second reading of the Ordinance to the June 21, 2016 Council meeting.
Proposed Motion
I move to approve an Ordinance approving the Third Amendment to the 2016 Budget, First Reading
Attachments
Attachment A: Ordinance
Attachment B: Requests for Supplemental Appropriation
Attachment C: Estimated Ending Funds Available for 2016