Agenda Date: 08/07/2018
Subject:
Title
An ordinance on second reading amending Ordinance No. 23, series of 2017, known as the Annual Appropriation Bill for all municipal purposes for the fiscal year beginning January 1, 2018 and ending December 31, 2018
Body
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Presented By: |
Tiffany Hooten, Finance Director |
REQUESTED COUNCIL ACTION:
Does city council support an amendment to the 2018 annual appropriation?
BACKGROUND:
At the council workshop February 3 and the March 6 council meeting, staff briefed council on additional resources needed to implement the 2018 Strategic Imperatives. This memo outlines these resources and others needed for the 2018 budget.
1. Strategic Imperatives Amendments
The following budget amendments are directly related to implementation of the Strategic Imperatives.
A. General Fund
1) Two-year termed budget analyst position - $25,000 in 2018, with an additional $109,750 in 2019 and $69,500 in 2020.
The finance department is requesting funding to add a two-year termed budget analyst to the finance department. The city has several projects that are impacting the level of service which the finance department can provide. These are anticipated to continue through at least the next few years. An experienced budget analyst will provide accounting and budget support to supplement the many projects, enhancements, and improvements of the finance department. This person will be responsible for developing, preparing, and monitoring the annual budget for the city. Additional duties include monitoring the capital improvement plan by reviewing projects and working with departments to maintain current capital needs. This position will work closely with all departments throughout the city for budget information and needs. Due to the two-year term of this position, it will be budgeted over three fiscal years; thus, the 2019 and 2020 requested amounts will be included in budget discussions for each respective year.
2) Two-year termed transportation planner position - $25,000 in 2018, with an additional $109,750 in 2019 and $69,500 in 2020.
The public works department is requesting to add a two-year termed transportation planner in support of the Transportation Master Plan in addition to supporting enhanced strategic planning, regional cooperation, grants acquisition, and management for ADA compliance, community engagement, and alternative mode enhancements such as bicycle and pedestrian programming. This position will also play a lead role in regional transportation issues and the development of the city’s Transportation Master Plan. The city has not received any significant transportation grant revenue in the last 18 years. This position has the potential to become revenue neutral in the future through the acquisition of transportation-related grants. This position was not originally included in previous discussions; however, this position is requested after evaluating the public works department capacity.
3) Communications Consultant - $22,000.
An important aspect of the success of Envision Littleton is communication, both internally and externally. It is vital that we have an outside resource to provide specialized knowledge and skills, in addition to time and management, to ensure staff is meeting the directive from council. Staff is requesting $22,000 in 2018 to supplement current communication efforts for the vision process. The creation of a community input based well vetted vision will help ensure a solid foundation for the comprehensive plan. It is anticipated that additional funding for communications related to the comprehensive plan will be needed in 2019 and will be requested through the budget process.
B. Impact Fees Fund
1) Transportation Master Plan - $150,000.
A Transportation Master Plan will also be developed in close coordination with the relevant aspects of the Comprehensive Plan process. This expenditure was originally anticipated to be funded from the General Fund; however, after evaluating this plan, it is appropriate to use transportation impact fees.
As noted in the scope of the Vision to Comprehensive Plan Process, components of the Transportation Master Plan will include:
• Road Classification Model and Analysis
• System-wide Vehicle Count Analysis
• Signal Fiber/ITS Strategic Analysis
• Regional Transportation Model - DRCOG
• Deliverable: City of Littleton Transportation Master Plan
2. Other Amendments
The following budget amendments are additional resources needed for the specific purposes listed below.
A. General Fund
1) Engineering Development review - $200,000.
Development review activity is projected to be 25% higher than 2017. The public works department has historically relied heavily on outside consulting firms to supplement staff to complete reviews in a timely manner. Due to the increase in the volume of work, staff is seeking to supplement the 2018 budget to support utilizing consultants through the end of 2018. At the current rate of expenditure, the department will run out of funds by mid-July. The funds being expended throughout the year equate to 1.6 FTEs. In the 2018 budget, the city implemented Engineering Development Review Fees for the first time. Through May 31, 2018, these fees have generated $130,400. It is anticipated there will be enough revenues generated in 2018 to fully offset these costs.
B. Consolidated Special Revenue Fund
1) PEG Funds - $50,000.
On July 24, the Channel 8 video server went down during a severe thunderstorm. It is irreparable and is only running at a limited capacity due to a loaner device being shipped to the city. The current vendor has no replacement devices. Staff had previously researched and budgeted for replacement of this hardware and software in the 2019 budget due to its age and technology advances. As Channel 8 will remain at limited capacity until a new broadcast video server is purchased and installed, staff recommends purchasing the replacement product immediately utilizing PEG funds that as stipulated in the Comcast franchise agreement, can only be used to purchase equipment for Channel 8.
C. Capital Projects Fund
1) Santa Fe and Mineral concept design and traffic signal structural review - $400,000.
As discussed with council in February, 2018, $400,000 was budgeted in the 2017 Capital Projects Budget for the construction of the signal portion of the Prince and Church intersection, and completing advanced designs of traffic signals in case funding became available for construction. This project is being moved to the 2019 construction schedule so it is not split into two phases impacting the area around the intersection two summers in a row. Funding is planned to be available in 2019 including the signal portion of the project. After a review and assessment of urgent issues, staff believes that reallocating these funds to two other projects would better serve the community. There are currently no concept designs reviewed with CDOT for the possible future interchange alignments at Santa Fe and Mineral. As a result, there is no foundation to preserve needed right-of-way (ROW) around the project area. The northern section of Santa Fe Park has submitted development plans that are adjacent to the existing intersection. It is critical that the city work with the developer to preserve the necessary ROW for future improvements or at the least, create a no-build zone for structures to allow future ROW acquisition. Two hundred thousand dollars ($200,000) would be applied to develop concept designs to allow preservation. All the work developed in this project would be incorporated in the Planning and Environmental Linkages (PEL) study targeted to begin in late-2019 based on regional and state funding availability.
The second project is safety related. Earlier this year, the traffic signal pole at County Line and South Park Lane failed, causing the pole to collapse and fall. In this case, no persons or property were hurt or damaged but this scenario could occur again. The city has several signal poles that are of similar age, construction specifications, and materials and may be susceptible to the same potential failure. The additional $200,000 would be allocated to a structural review of all the poles in the system. A specialty mechanical engineering firm will be needed to complete the project.
2) Armored police vehicle - $305,000.
The LPD is requesting replacement of its SWAT armored vehicle due to its age, deteriorating mechanical condition, and inadequate ballistic protection. The current LPD armored vehicle is a 1990 surplus Wells Fargo money truck donated to the department in 2001. When acquired, the vehicle was given a projected life expectancy by Littleton Fleet Management of 10 years (2011). The vehicle has now been in LPD service for 17 years and has 224,642 miles on the odometer. The vehicle's condition is deteriorating rapidly and is no longer considered mechanically reliable. Fleet advises replacement parts are no longer available.
This request is being made at this time, rather than during the regular budget cycle, due to the lead-time necessary to manufacture the vehicle (9-12 months from order). As demonstrated by recent tragic events in Douglas and Adams Counties, this vehicle is necessary to protect officers and the community from a very real and ever-increasing lethal threat.
The city has an opportunity to join with multiple police departments in a regional Computer Aided Dispatch (CAD) system which would be hosted by the Arapahoe County Sheriff’s Office (ACSO) but allows LPD to customize its part of the CAD as needed for its operations. Since LPD agreed to join the regional CAD, the Arapahoe County E911 Authority is paying for nearly all CAD-related costs to purchase and implement the system. This option saved Littleton $300,000. For the 2018 budget, this $300,000 was removed from the five-year Capital Projects Budget, leaving $700,000 budgeted for Records Management System (RMS) replacement.
While the regional CAD is being paid for through the E911 Authority, the LPD RMS replacement is entirely at the city’s expense. The sheriff and chiefs of the regional CAD board began discussions with the CAD vendor about the possibility of a combined RMS system that is hosted by the ACSO but customized for each individual department's needs. The CAD board worked with the vendor and as a result of LPD's decision to participate in a combined RMS, the new cost for LPD's RMS is approximately $500,000. This is a $200,000 savings from the five-year capital plan budget for a stand-alone RMS.
Staff is requesting to use the $200,000 savings towards the replacement of the SWAT vehicle, which leaves $105,000 to be funded from the capital projects fund balance. The city is utilizing government pricing for this vehicle.
To address recent citizen concerns regarding this expenditure, it is important to note this is a replacement of a current armored vehicle that has been utilized in Littleton for 17+ years without community complaint or concern. The new vehicle serves the exact same purpose and will be utilized in the same way as the old one, only with current mechanics, technology, and armor. This vehicle is designed to be used in municipal environments and since it is built on a Ford F150 chassis will allow city fleet staff to provide maintenance and repairs. Vehicles of this type have been used both locally and nationally to resolve lethal threats in a safe manner in a variety of situations.
D. Open Space Fund
1) Arapahoe County Open Space Grant - $337,950.
At the council meeting on April 3, 2018, council approved a resolution supporting an application by the city on behalf of Littleton Public Schools for an Arapahoe County Open Space grant for playground improvements at Field Elementary School. Typically, grants are included in the original budget; however, this grant was not. This request is to formally amend the 2018 budget, in the event the city is awarded the grant.
The city would be the recipient of the grant and is required to appropriate the grant portion, $287,942, as well as the city’s matching portion, $50,000, for a total of $337,942 (appropriation rounded). The city’s portion of $50,000 would be funded from fund balance. The estimated ending fund balance for the Open Space Fund at the end of 2018 is $2,139,800.
2) Elati and Promise Park playground improvements - $34,000.
South Suburban Parks and Recreation District (SSPRD), in partnership with the City of Littleton, has planned playground upgrades at Promise and Elati Parks in 2018. Due to market conditions and other factors, the bids came in above SSPRD’s engineer’s estimate of $400,000. These additional funds are specific to providing upgraded poured rubberized surfaces in the playgrounds versus wood chip; improving playground safety and accessibility for all users. These projects are now estimated to be $225,737 for Elati Park and $241,446 for Promise Park. These project costs are split 50/50 with SSPRD.
E. Impact Fees Fund
1) Three police vehicles - $170,000.
Council approved an increase in LPD sworn staffing by nearly 10% over the 2017-2018 budget. This expansion was due to the steady increase in calls for service and time per call related to Littleton's increasing residential development.
At the time of this request, LPD did not ask for additional fleet vehicles due to budgetary concerns and the lead time necessary to fill the seven sworn positions. As the positions are being filled, the fleet must be expanded to accommodate the additional personnel. This is an expansion of the police fleet and not replacement vehicles; thus, it is appropriate to use impact fees. These vehicles will be maintained for more than five years, as they will be transferred to the School Resource Officer program after their useful life is exhausted on patrol, thereby minimizing the impact of growth on that program.
2) Facilities Building Condition Assessment - $37,000.
The city has more than 300,000 square-feet of facilities space yet there is no asset management in place to know the condition, replacement cycles, short-term maintenance planning, or long-term capital planning for these facilities. This project will utilize a specialty firm to assess all city facilities including HVAC, MEP systems, and interior and exterior components. This work will be paired with an upgrade to the city's current facilities software (not included in this supplemental) to develop short and long-term maintenance and capital plans for all city facilities. This will put the city in a position to budget maintenance and planning dollars to proactively support the city's facilities today and the future. This will also allow staff to move forward with building scenarios for future facility upgrades or replacement. Up to this point, the city has managed facilities budgeting on reactive work and some projected maintenance upgrades. This change will allow staff to better utilize time and resources to support facilities more effectively and efficiently. An additional $14,000 is needed for this assessment which will be funded from the existing 2018 general fund budget.
The cost breakdown for the facilities assessment project between general fund and facilities impact fees is based on the components of the project and the value of the time horizon for each. The commonly accepted timeline for asset value must exceed five years for the utilization to be funded by impact fees. The general fund portion is for the upgrading of facilities asset management software and training associated with this change, the generally accepted time horizon for computers and software is 36 months. The facilities impact fee portion is for the assessment of all city facilities and component systems providing the basis for long-term maintenance and capital planning that will exceed 10 years. The resulting 10-year capital plan will include maintenance and capital needs for all facilities based on industry standard practices, OEM recommendations, and city maintenance and replacement practices. The plan will also provide the foundation for 20-year capital planning for facility upgrades, additional expansions, or needed acquisitions.
PRIOR ACTIONS OR DISCUSSIONS:
This amendment to the 2018 budget was discussed with council at the study session on June 12. The ordinance passed on first reading at the July 17, 2018 regular meeting.
STAFF ANALYSIS:
Amending the budget is a common process throughout the year.
OPTIONS/ALTERNATIVES:
Option 1: Approve the amendment to the 2018 annual appropriation on second reading.
Option 2: Do not approve the amendment to the 2018 annual appropriation and not fund the items included in this amendment.
FISCAL IMPACTS:
The financial impact of this 2018 budget amendment is as follows:
|
Amendments |
General Fund |
Cons. Spec. Rev. Fund |
Capital Projects Fund |
Open Space Fund |
Impact Fees Fund |
Total |
|
Strategic Imperatives |
$ 72,000 |
$ - |
$ - |
$ - |
$ 150,000 |
$ 222,000 |
|
Other |
$ 200,000 |
$ 50,000 |
$ 705,000 |
$ 371,950 |
$ 207,000 |
$ 1,553,950 |
|
Total |
$ 272,000 |
$ 50,000 |
$ 705,000 |
$ 371,950 |
$ 357,000 |
$ 1,755,950 |
Funding Sources
General Fund - Newly implemented engineering development review fees are anticipated to offset the additional $200,000 for engineering development review costs in the General Fund in 2018. The remaining $72,000 will be funded from fund balance. The 2019 and 2020 amounts, $219,500 and $139,000 respectively, related to personnel positions, will be incorporated into the budget process of these years.
Consolidated Special Revenue Fund - The PEG fund is a sub-fund of the Consolidated Special Revenue fund. This project will be funded from the fund balance in the PEG sub-fund.
Capital Projects Fund - A savings of $200,000 will be realized from the police RMS project which was planned in 2020. This will partially offset these costs in the five-year fiscally constrained plan. Four hundred thousand dollars ($400,000) of this is a carryover of unused funds from 2017. The remaining $105,000 will be funded from fund balance.
Open Space Fund - The city’s matching portion of $50,000 for the grant will be funded from fund balance.
Impact Fees Fund - Costs associated with the Impact Fees will be funded from fund balance. As of May 2018, there is $137,858 available in transportation impact fees. It is anticipated that there will be enough revenues through the remainder of the year for the Transportation Master Plan costs. As of May 2018, there is $209,449 available in police impact fees. As of May 2018, there is $1,660,981 available in facility impact fees.
STAFF RECOMMENDATION:
Staff recommends approval of the amendment to the 2018 annual appropriation.
PROPOSED MOTION:
Proposed Motion
I move to approve the ordinance on second reading amending Ordinance No. 23, series of 2017, known as the Annual Appropriation Bill.