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HomeMy WebLinkAbout11536RESOLUTION NO. 11536 A RESOLUTION AUTHORIZING THE CITY OF PUEBLO TO SUBMIT A GRANT APPLICATION TO THE COLORADO DEPARTMENT OF LOCAL AFFAIRS ENERGY MINERAL IMPACT ASSISTANCE FUND RELATING TO THE CITY OF PUEBLO MUNICIPAL JUSTICE CENTER PROJECT AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME WHEREAS, it is a goal of the Pueblo City Council modernize City facilities and infrastructure including the Pueblo Municipal Justice Center to serve the police department, municipal court and information technology department; BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PUEBLO, that: SECTION 1. A grant application requesting $2,000,000 from the Colorado Department of Local Affairs Energy Mineral Impact Assistance Fund for funding to assist with the construction, equipment and furnishings of the Pueblo Municipal Justice Center, a copy of which is attached hereto, is hereby approved. SECTION 2. The President of the City Council is hereby authorized to execute and deliver the grant application in the name of and on behalf of the City of Pueblo, a Municipal Corporation, and the City Clerk shall affix the seal of the City thereto and attest same. INTRODUCED: February 23, 2009 7 Judy Weaver Councilperson APPR D' } �- PRESIDENTaf Cfty Council A77TSTED DY: CITY CLERK ON aim I ff. NO= Background Paper for Proposed RESOLUTION AGENDA ITEM # 4 DATE: FEBRUARY 23, 2009 DEPARTMENT: PLANNING AND COMMUNITY DEVELOPMENT JERRY M. PACHECO, DIRECTOR TITLE A RESOLUTION AUTHORIZING THE CITY OF PUEBLO TO SUBMIT A GRANT APPLICATION TO THE COLORADO DEPARTMENT OF LOCAL AFFAIRS ENERGY MINERAL IMPACT ASSISTANCE FUND RELATING TO THE CITY OF PUEBLO MUNICIPAL JUSTICE CENTER PROJECT AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME ISSUE Should the City Council approve the submittal of a grant application to the Colorado Department of Local Affairs Energy Mineral Impact Assistance Fund monies relating to the Pueblo Municipal Justice Center Project and authorize the President of City Council to execute same? RECOMMENDATION Approval of the Resolution. BACKGROUND The grant request is for supplemental funds in the amount of $2,000,000 to assist with the construction, equipment and furnishings of the Pueblo Municipal Justice Center currently under construction at Main and D Streets. This project is addressing a priority goal of the Pueblo City Council to modernize City facilities and infrastructure including the Pueblo Municipal Justice Center to serve the police department, municipal court and information technology department. FINANCIAL IMPACT If awarded, the DOLA Energy Mineral Impact Assistance Fund grant will reduce the contribution from the City's General Fund to the Pueblo Municipal Justice Center project by $2,000,000 and make available $2,000,000 to the Vestas Project to satisfy the State of Colorado's Commitment. STATE OF COLORADO (For Use by State) Department of Local Affairs ENERGY AND MINERAL IMPACT ASSISTANCE PROGRAM APPLICATION Public Facilities /Public Services /Community Development Projects (Refer to back page for application filing information) Applications Must Be Typewritten A. GENERAL AND SUMMARY INFORMATION 1. Name/Title of Proposed Project: Pueblo Municipal Justice Center 2. Applicant: City of Pueblo (In the case of a multi jurisdictional application, name of the "lead" municipality, county, special district or other political subdivision). In the case of a multi - jurisdictional application, names of other directly participating political subdivisions: 3. Chief Elected Official (In the case of a multi - jurisdictional application, chief elected official of the "lead" political subdivision): Name: Vera Ortegon Title: President of City Council Mailing Address: 1 City Hall Place Pueblo, CO 81 D03 Phone: (719) 553 -2655 City /Zip: Pueblo, 81003 Fax: (719) 553 -2698 E -mail Address: vorteoon(ar?pueblo.us 4. Designated Contact Person (will receive all mailings) for the Application: Name: Scott Hobson Title: Assistant City Manager for Community Investment Mailing Address: 211 E. D Street Phone: (719) 553 -2244 City /Zip: Pueblo, 81003 Fax: (7191553 -2359 E -mail Address: shobsonno pueblo. us 5. Amount of Energy /Mineral Impact Funds requested: $ $2.0 million Brief Project Description: (10o words or less and including construction or equipments pecifications, if applicable. For example: 2 -bay, 2,000 sq. ft. metal fire building): This proiect will fund the furniture, fixtures and equipment (FF &E) for the City of Pueblo's new Police, Municipal Courts and Information Technology building located on a 7.5 -acre site in downtown Pueblo adjacent to the Union Avenue Historic District and near the Historic Arkansas Riverwalk. The building will be a three (3) story, 104.000 square feet structures, with the main entrance facing the corner of Main and D Street. The FF &E items that will be included for the building include office partitions desks chairs couches office equipment and artwork. 6. a. Local priority if more than one application from the same local government (e.g., 1 of 2, 2of 2, etc.). Page 1 of 8 B. DEMOGRAPHIC AND FINANCIAL INFORMATION 1. Population a. What was the 2000 population of the applicant jurisdiction? City: 102,121 b. What is the current estimated population for the applicant jurisdiction? City: 106, 079 (2007 Estimate) (Current/most recent lottery distribution estimate is acceptable.) What is the source of the estimate? Colorado State Demooraphv Office c. What is the population projection for the applicant in 5 years? City: 110, 434 What is the source of the projection? City of Pueblo Planning Dept. 2. Financial Information (Current Year): In the column below labeled "Applicant' provide the financial information for the municipality, county, school district or special district directly benefiting from the application. In the columns below labeled "Entity", provide the financial information for any public entities on whose behalf the application is being submitted (if applicable). Complete items "a through I" for ALL project types: o. Tap Fee Applicant Entity: Entity: a. Assessed Valuation (AV) Year: 2007 $696,599,0586 b. Mill Levy 15.633 c. Property Tax Revenue (mill levy times AV) $10,889,933 d. Sales Tax (Rate /Estimated Annual Revenue) 3.5°/x/$47,106,000 %/ $ %/ $ e. Total General Fund Budget $72,176,252 f. Total Applicant Budget Amount Sum of General Fund and all Special or Enterprise Funds $166,271,506 g. Total Multi -year Debt Obligations for all Fund Types* 2006 total $19,072,604 h. Total Lease - Purchase and Certificates of Participation obligations* 2006 total $3,619,267 i. General Fund Balance (Reserves) as of January 1 of this current calendar year. $23,374,544 For projects to be managed through a Special Fund other than the General Fund (e.g. County Road and Bridge Fund) or managed through an Enterprise Fund (e.g. water, sewer, county airport), complete items `Ij through n"• Identify the relevant Special Fund or Enterprise Fund: j. Special or Enterprise Fund Budget Amount N/A k. Special or Enterprise Fund Multi -Year Debt Obligations* N/A I. Special or Enterprise Fund Balance (Reserves) on January 1 of this calendar year N/A m. Special or Enterprise Fund Lease - Purchase and Certificate of Participation Obligations* N/A n. Special Fund Mill Levy (if applicable) N/A For Water and Sewer Project Only complete items "o through q ": o. Tap Fee N/A p. Average Monthly User Charge (Divide sum of annual residential revenues by 12 and then divide by the number of residential taps served.) N/A q. Number of Taps Served by Applicant N/A ` Include the sum of the year-end principal amounts remaining for all multi -year debt obligations, lease purchase agreements or certificate of participation notes. Page 2 of 8 C. PROJECT BUDGET Expenditures Revenue (Dollar for Dollar Cash Match is Encouraged) Funding Committed List Budget Line Items (Examples: architect, engineering, construction, equipment items etc.) List the sources of matching funds and indicate either cash or in -kind contribution Cash In -Kind Yes /No Land Acquisition $ 959,527 Energy /Mineral Impact Fund City of Pueblo General Fund $ 959,527 NA NA Y Police, Municipal Courts and Information Technology Building Construction $21,600,000 Energy /Mineral Impact Fund City of Pueblo General Fund $21,600,000 NA NA Y Site Construction Costs $ 1,131,101 Energy /Mineral Impact Fund City of Pueblo General Fund $ 1,131,101 NA NA Y Soft Costs $ 2,300,000 Energy /Mineral Impact Fund City of Pueblo General Fund $ 2,300,000 NA NA Y Furniture, Fixtures & Equipment $ 2,288,966 Energy /Mineral Impact Fund City of Pueblo General Fund $ 2,000,000 $ 260,766 NA NA N Y Sub -Total City Rev - $26,251,394 EIAF Rev - $ 2,000,000 TOTAL $27,840,034 TOTAL $28,251,394 NA Please attach a more detailed budget if available Loans with a 5% interest rate may only be awarded for potable water and sewer projects. Leave blank if a loan is not requested. Page 3 of 8 D. PROJECT INFORMATION The statutory purpose of the Energy and Mineral Impact Assistance program is to provide financial assistance to 1. Social and Economic Impact a. Describe how the applicant is impacted by the development, production, or conversion of energy and mineral resources. Although employment figures for the energy and mineral sectors of Pueblo's economy have shown a healthy growth trend in recent years, they are directly affected by the volatility of the market for tubular steel and rail products produced by Rocky Mountain Steel. The Xcel Comanche power plant expansion has generated about 1,300 jobs during the current construction phase, but these jobs will be eliminated once the plant becomes operational in about 4 years. The additional staff required to operate the new plant is estimated at 40 employees. A recent study found the City has a population of 102,000, but the purchasing power of a community of 60,000. b. To further document impact, cite the type of past, current or proposed energy /mineral impact activities in the area, the names of the companies involved, the number of employees associated with the activities impacting the jurisdiction and other relevant, quantitative indicators of energy /mineral impact. Until the early 1980's CF &I Steel, the predecessor of Rocky Mountain Steel Mills employed over 6,000 workers. By 1999, this had declined to 600 workers. Rocky Mountain Steel is presently operating with a work force of just under 1,000 employees. Once the construction phase of the Xcel power plant expansion is completed, Pueblo will lose over 1,300 skilled construction jobs. If these employees cannot be rehired in a similar project, many of them may permanently leave the Pueblo community. Please see attached "Related Employment" data. c. Cite actual usage statistics that document impact and the need for the project. For example, "heavy truck traffic related to energy development activities is impacting a county road that needs improvement. A traffic count done in May 2006 showed that heavy truck traffic increased from 100 trips per day to 300 trips ". (If documentation is not available, consider undertaking the necessary research before submitting an application.) The Pueblo Municipal court processed a caseload of 36,961 cases in 2008. The Pueblo Police Department responded to 104, 358 calls in 2008. A total number of 292 employees will be housed in the new Municipal Justice Center. The Pueblo Municipal Court has 16 employees, Information Technology has 12 employees and the Pueblo Police Department has 207 officers and 57 civilian employees. The Pueblo Municipal Justice Center project relocates the Pueblo Police Department, Information Technology Department and Pueblo Municipal Court to a new centralized location in the heart of downtown Pueblo. This area has traditionally been the hub for City of Pueblo governmental offices and the Union Avenue Historic Shopping District in the Pueblo region. This area has been particularly hard hit in the past few months when the Union Avenue Historic District lost a building in the heart of the historic district, as well as a fire in another Historic building. By constructing the new Municipal Justice Center in the heart of downtown, it will add more emphasis in the ongoing redevelopment activities within Pueblo's central core area. Many of Pueblo's energy and mineral sector employers are heavily impacted by changing demand for their products. Over time, they tend to be subject to cyclical trends which impact the Pueblo area, not only in terms of immediate job gains or losses but also in terms of the secondary retail and service sector jobs that are either generated or lost. Please seethe attached document item D.2.a for historic employment trends. Page 4 of 8 2. Project Significance a. Why is the project needed and what are the goals of the project? The project is needed to address a significant priority of the Pueblo City Council to modernize community facilities and infrastructure. The relocation of The Pueblo Police, Information Technology and Municipal Court departments into one building will remedy a problem of having older City buildings located within a mile distance of each other. This project helps to fund the equipment, furniture and fixtures for a building that is being relocated in a central location that is the first major step in the development of a City municipal complex. The relocation of these departments will allow for better communication between the police and court departments. As, well as to provide a more safe and secure location for the Court, as they currently do not have police officers on site at the Pueblo Municipal Court. Goals of the project include: 1. City Council goal to modernize community facilities and infrastructure. 2. Relocate Police and Court facilities to improve public safety and improve efficiency of the municipal court. 3. Provide a centralized location for the residents of the City of Pueblo. 4. Utilize existing City personnel and equipment in an efficient manner that does not add additional operating costs for city residents. b. How will project implementation benefit public health and safety, improve the effectiveness or efficiency of service delivery systems and /or generally improve the quality of life for residents? The relocation of the Pueblo Police, Information Technology and Municipal Court departments will improve customer service to city residents. The Justice Center will be a modern facility that will improve public safety and customer service. City of Pueblo residents will no longer have to drive several blocks away to receive service from both Police Records and Municipal Court. In conjunction with the construction of a new Justice Center, the City's police department will improve its ability to provide protection services to the Municipal Court Staff and customers. Since the City will not have to increase the overall number of service facilities, it will be able to provide improved public safety services at approximately the same cost as it is currently two other city departments. The Municipal Justice Center is the first part of the development of the Pueblo Municipal Complex that is planned to include an Administrative Building for municipal offices that will be connected to the City's Municipal Parking Structure (see attached Municipal Complex Site Plan). c. What are the consequences if the project is not awarded funds? If funds are not awarded for this project the FF &E items will be paid for with City General Funds. This will reduce the amount of City General Funds that can be made available to assist in the funding of the public infrastructure expenses for the new South 1 -25 Corridor Industrial Park. This new industrial park is the site for the Vestas Wind Tower Factory that is currently under construction and is projected to open in September 2009. The new industrial park is also anticipated to include other new energy related companies that will make Pueblo one of the leading New Energy cities in Colorado. The other consequence is the reduction in City General Funds to initiate the next phase of the Pueblo Municipal Complex that will include a combined Planning, Public Works and Development Review Building. The relocation and construction of the Pueblo Municipal Justice Center is key to improving the image of the downtown area. Without DOLA funding, the coordinated plan to pay for the necessary furniture, fixtures and equipment for the City of Pueblo Police, Municipal Courts and Information Technology building will have a significant reduction in providing the public a highly attractive atmosphere when visiting the Municipal Justice Center. 3. Local Commitment a. Explain the origin of your local cash match. (Note: Local government cash match on a dollar for dollar basis is encouraged.) Page 5 of 8 The City will provide $26,251,394 in local matching funds for the Municipal Justice Center Project. The use of these funds for the project was approved by Pueblo voters to assist with the construction of the. The project includes funding for site acquisition, architectural design, construction of the building and furniture, fixtures and equipment (FF &E). The DOLA funds will be used for the FF &E items. b. Describe any in -kind contributions (type and value). Although an in -kind contribution is not included as part of a cash match value, the City's Public Works Department, Planning Department, and Police Department representatives will be working as a project team to coordinate the completion of project. c. Does the applicant have sufficient financial capability in reserve funds and/or unused debt capacity that can be used to secure local matching funds? Yes X No _ Explain: d. Has the applicant's tax rate, user charges or fees been reviewed recently to address funding for the proposed project? Yes _ No X Has the applicant recently modified the tax rate, user charges or fees? Yes — No X If the tax rate, user charges or fees were modified, when did this change occur? e. What other sources of local, state and federal funds as well as foundation funds has the applicant pursued? Explain. The funds that were generated for the City's General Fund were from a pre - payment of taxes by Xcel Energy that was part of the annexation agreement and water supply agreement to insure a continual supply of water to the power plant facilities. Pueblo has a 0.5 -cent sales tax, which is used to attract primary jobs, and we use numerous funding sources to create affordable housing and community amenities. 4. Relationship to Community Goals a. Is the project identified in the applicant's budget, capital improvement plan, equipment replacement plan, comprehensive plan, utility plan or other local or regional strategic management or planning document? The project is identified in the 2008 -2012 Capital Improvement Program. The construction of the Pueblo Municipal Justice Center is included in the Capital Improvement Program and is identified in the City Council goal to modernize community facilities and infrastructure including the Pueblo Police Department, and Municipal Court. The modernization of the City's Police, Municipal Court and Information Technology facilities and upgrading of police services within the urbanized areas of the city are identified in several plans adopted by the City of Pueblo over the past decade. b. How did the applicant develop project cost estimates? If applicable, has a preliminary architectural /engineering study been completed? Yes X No _ What additional design work must still be completed? Explain. (Attach one copy of any preliminary engineering reports, architectural drawings, cost estimates, detailed project budget.) The City has awarded a $21.6 million construction contract for the building construction which does not include approximately $2.28 million for furniture, fixtures and equipment expenses that will be needed for the new building. 5. Management Capacity a. For construction, renovation or equipment acquisition projects, does the applicant maintain reserve funds for capital improvement, or replacement of equipment items? No . The City appropriates funds annually for capital improvement and replacement of equipment items. In addition, the City has General Fund reserves, which may be appropriated, on a critical needs basis or to be determined basis. b. Are taxes, user charges and fees established at a level that allows the applicant to maintain and operate its current facilities and the proposed project services on a self- sufficient basis? No . Page 6 of 8 The proposed project will be supported by general taxes. Although the facility is not self - sufficient, and any change to the tax rate would be subject to voter approval. The City's establishes an annual budget for capital improvements and maintenance of Police, Municipal Court and Information Technology Department equipment and facilities. c. Does the applicant have the technical, financial and managerial capacity to operate and maintain the facilities or services developed through the project for the entire life cycle? Explain. (If applicable, attach the operational /maintenance plan for the project.) Yes, the City maintains an annual operational budget of 527, 698,022 for the Police, Municipal and Information Technology Departments within the City of Pueblo. The budget is divided between $24,668,140 for personnel and $2,379,862 for operations. The estimated cost for the operation of the new police, municipal court, and IT buildings is projected to be similar to the current expenses due to the consolidation of operations into one building and the energy efficiencies designed into the new building. The City's police department personnel had 104, 358 emergency calls last year. The Pueblo Police Department provides services to mitigate the effects of a variety of emergency situations, including fires, medical emergencies, motor vehicle accidents, physical entrapments, and releases of hazardous materials. In 2008, Pueblo Municipal Court processed 36, 961 cases. In 2008, the Information Technology department fielded over 2500 work orders for City Employees. d. Have a number of implementation options been considered? Can the project be accomplished within budget? Are contingencies considered within the project budget? Does the project duplicate service capacity already established? (Has consolidation of services with another provider been considered ?) The project is a relocation and construction of a new Municipal Justice Center that will allow the city to maintain one building that will house several City of Pueblo departments that will meet the criteria for central location for the public. By relocating and providing a new Municipal Justice Center, the city can operate the departments more cost effectively, while not sacrificing public safety and service to our residents. The project can be completed within budget. Contingencies have been included in the budget. The project does not duplicate service capacity already established, it improves the ability to provide police protection to the industries that utilize the mining products, as well as serve existing and new development areas of the city. e. Has the applicant managed similar projects in the past with success? The City of Pueblo has managed the construction of several big projects that have been added to the city over the years including the Joseph Edwards Senior Center, Historic Arkansas Riverwalk Project, improvements at the Pueblo Memorial Airport and Industrial Park, as well as many other development projects within the City. E. TABOR COMPLIANCE 1. Does the applicant jurisdiction have the ability to receive and spend state grant funds under TABOR spending limitations? Yes X No _ Explain: 2. Has the applicant jurisdiction been subject to any refund under TABOR or statutory tax limitations? Yes X No _ Explain: Since the inception of TABOR limitations, the City has been subject to refunds on several different occasions. In some cases, a refund was given by a temporary property tax credit to avoid over collection during the year, or to refund a specific amount. 3. Has the applicant sought voter approval to keep revenues above fiscal spending limits? Yes X No _ Explain: In the case of the revenue collected in connection with the Xcel annexation, in 2004, the voters approved the excess revenues collected to assist with the construction of the Police Building, Municipal Court and two fire stations. When required, the City has sought voter approval to keep revenues above fiscal annual spending limits. Only once has the City not received voter approval. In 2003 a broad based citizen initiative to remove the City from TABOR spending limits failed. Page 7 of 8 4. If the applicant jurisdiction is classified as an enterprise under TABOR, will acceptance of a state grant affect this status? Yes No X Explain: N/A F. ENVIRONMENTAL REVIEW Indicate below whether any of the proposed project activities: 1. Will be undertaken in flood hazard areas. Yes — No X List flood plain maps /studies reviewed in reaching this conclusion. Describe alternatives considered and mitigation proposed. 2. Will affect historical, archeological or cultural resources, or be undertaken in geological hazard area? Yes ^ No X Describe alternatives considered and mitigation proposed. The Pueblo Municipal Justice Center Project is located near but not within a designated historic district and will be located on properties that contained no historical structures. 3. Address any other related public health or safety concerns? Yes No X Describe: *t* To the best of my knowledge and belief, the statements and data in this application are true and correct. Signature, Chief Elected Offici I Vera Ortegon Name (typed or printed) President of City Council Title February 23, 2009 Date * ** Please submit one original and two copies to Bret Hillberry Department of Local Affairs 1313 Sherman St., Room 521 Denver, Colorado 80203 Also submit: ► Copy to the local county impact team (if applicable) Attachments List (check and submit if applicable; one set per application): ► Preliminary Engineering Reports ► Architectural Drawings X ► Cost Estimates X ► Detailed Budget X ► Map showing location of the project X ► Attorney's TABOR decision Page 8 of 8 PUEBLO MUNICIPAL COMPLEX PRELIMINARY DESIGN SUBMITTAL POLICE /COURTS/INFO TECH BUILDING PUEBLO,CO PUEBLO MUNICIPAL COMPLEX D PUEBLO. COLORADO F 7 � ' - PUEBLO MUNICIPAL COMPLEX D PUEBLO. 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