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HomeMy WebLinkAbout311-20 RESOLUTION ^OF GP1 ,\ /1 .1i1( S qKa N_ 113 West Mountain Street Fayetteville,AR 72701 (479)575-8323 Resolution: 311-20 File Number: 2020-1039 RECYCLING AND TRASH COLLECTION FUND REIMBURSEMENT: A RESOLUTION TO APPROVE REIMBURSEMENT TO THE RECYCLING AND TRASH COLLECTION FUND FOR THE PROPERTY LOCATED AT RAZORBACK ROAD AND INDIAN TRAIL THAT IS BEING CONVEYED TO THE UNIVERSITY OF ARKANSAS,AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS,the City and the University of Arkansas have entered into an agreement in which the University has agreed to convey approximately 62.4 acres on the western slope of Markham Hill to the City and the City has agreed to convey approximately 10 acres at the southeast corner of Razorback Road and Indian Trail to the University of Arkansas;and WHEREAS,the City's property was originally purchased in 1981 for the amount of$71,573.47 for use by the Recycling and Trash Collection Division but was never used for that purpose;and WHEREAS,it would be appropriate to reimburse the Recycling and Trash Collection Fund for the historical costs paid as adjusted for inflation to current value in dollars. NOW THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,ARKANSAS: Section 1:That the City Council of the City of Fayetteville,Arkansas hereby approves a reimbursement to the Recycling and Trash Collection Fund in the amount of$204,700.12 which is the historical cost of the property located at Razorback Road and Indian Trail as adjusted for inflation to current value. Section 2: That the City Council of the City of Fayetteville,Arkansas hereby approves a budget Page 1 Printed on 12/17/20 Resolution: 311-20 File Number: 2020-1039 adjustment,a copy of which is attached to this Resolution. PASSED and APPROVED on 12/15/2020 Approve Attest: ('242 441i/11 � • �':4' Lioneld Jord , M or Kara Paxton, City Clerk Treasurer ; FAike �T Fl S • 1 •: VSAS ••' Page 2 Printed on 12/17/20 oFF�YETTE�, City of Fayetteville, Arkansas 113West Mountain Street Fayetteville,AR 72701 (479)575-8323 AFL_ I / 9'�KA PS> Text File NS File Number: 2020-1039 Agenda Date: 12/15/2020 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: A.8 RECYCLING AND TRASH COLLECTION FUND REIMBURSEMENT: A RESOLUTION TO APPROVE REIMBURSEMENT TO THE RECYCLING AND TRASH COLLECTION FUND FOR THE PROPERTY LOCATED AT RAZORBACK ROAD AND INDIAN TRAIL THAT IS BEING CONVEYED TO THE UNIVERSITY OF ARKANSAS,AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS,the City and the University of Arkansas have entered into an agreement in which the University has agreed to convey approximately 62.4 acres on the western slope of Markham Hill to the City and the City has agreed to convey approximately 10 acres at the southeast corner of Razorback Road and Indian Trail to the University of Arkansas;and WHEREAS,the City's property was originally purchased in 1981 for the amount of$71,573.47 for use by the Recycling and Trash Collection Division but was never used for that purpose;and WHEREAS, it would be appropriate to reimburse the Recycling and Trash Collection Fund for the historical costs paid as adjusted for inflation to current value in dollars. NOW THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,ARKANSAS: Section 1:That the City Council of the City of Fayetteville, Arkansas hereby approves a reimbursement to the Recycling and Trash Collection Fund in the amount of$204,700.12 which is the historical cost of the property located at Razorback Road and Indian Trail as adjusted for inflation to current value. Section 2: That the City Council of the City of Fayetteville,Arkansas hereby approves a budget adjustment,a copy of which is attached to this Resolution. City of Fayetteville,Arkansas Page 1 Printed on 12/16/2020 City of Fayetteville Staff Review Form 2020-1039 Legistar File ID 12 15 2020 City Council Meeting Date-Agenda Item Only N/A for Non-Agenda Item Paul Becker 11/25/2020 CHIEF FINANCIAL OFFICER (110) Submitted By Submitted Date Division/ Department Action Recommendation: Administration requests the Council to approve reimbursement to the Recycling and Trash Collection Fund for the historical cost in today's dollars for the property located on Razorback Road and Indian Trails and to approve a budget adjustment. The property was purchased in 1981 for$71,573.47. The Bureau of Labor Statistics consumer index indicates that the inflation rate between 1981 and now is 2.73% per year. Therefore, the historical cost paid for the property converted to today's dollar would be $204,700.12. Budget Impact: 4470.090.8900-5805.00 Sales Tax Capital Improvement Account Number Fund 20020 Razorback Land Sale/Purchase U of AR (1421) Project Number Project Title Budgeted Item? No Current Budget $ - Funds Obligated $ - Current Balance Does item have a cost? Yes Item Cost $ 204,700.00 Budget Adjustment Attached? Yes Budget Adjustment $ 204,700.00 Remaining Budget $ V201 80321 Purchase Order Number: Previous Ordinance or Resolution# Change Order Number: Approval Date: Original Contract Number: Comments: CITY OF FAYETTEVILLE CITY COUNCIL MEMO d ARKANSAS MEETING OF DECEMBER 15, 2020 TO: Mayor and City Council THRU: Mayor: Lioneld Jordon FROM: Paul Becker, Chief Financial Officer DATE: November 25, 2020 SUBJECT: To provide for a reimbursement to the Recycling and Trash Collection Fund for the historical cost of the property located on Razorback Road and Indian Trails. RECOMMENDATION: The administration requests the Council to approve the reimbursement to the Recycling and Trash Collection Fund for the historical cost in today's dollars for the property purchased in 1981 located on Razorback Road and Indian Trails. BACKGROUND / DISCUSSION: The City is currently completing a transaction between the University of Arkansas and the City which exchanges property on the Western Slope of Markham Hill to the City, and transfers ownership of property on Razorback Road and Indian Trails to the University of Arkansas. It is the intent of the City to use the newly acquired property on the western slope of Markham Hill for the preservation of greenspace and tree canopy and the creation of nature and bike trails as described in Resolution 197-20 approved by the City Council. The property on Razorback Road and Indian Trails was originally purchased for use by the Recycling and Trash Collection Fund but was never used for that purpose. Since the Trash and Recycling Fund is an enterprise fund and the newly acquired property will be used for the purpose aforementioned, which are of a general use purpose, it would be appropriate to reimburse the Recycling and Trash Collection Fund for the historical costs paid as adjusted to today's value in dollars. The property was purchased in 1981 for $71,573.47. The Bureau of Labor Statistics consumer index indicates that the inflation rate between 1981 and now is 2.73% per year. Therefore, the historical cost paid for the property converted to today's dollars would be $204,700.12. This request is to reimburse the Recycling and Trash Collection Fund in that amount for the value of the property at the Razorback Road and Indian Trails location and to record the newly acquired property on the Western Slope of Markham Hill to a General Fixed Asset property. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 BUDGET/STAFF IMPACT: This transaction would provide a cash payment of$204,700.12 from the Sales Tax Capital Fund to the Recycling and Trash Collection Fund and record the Western Slope of Markham Hill property as a General Fixed Asset for the intended uses as described previously. Attachments: Staff Review form, Staff Memo, Budget Adjustment 2 City of Fayetteville, Arkansa_ _udget Adjustment Form (Legistar; Budget Year Division Adjustment Number /Org2 CHIEF FINANCIAL OFFICER (1 10) 2020 Requestor: Paul Becker BUDGET ADJUSTMENT DESCRIPTION /JUSTIFICATION: The administration requests the Council to approve reimbursement to the Recycling and Trash Collection Fund for the historical cost in today's dollars for the property located on Razorback Road and Indian Trails and to approve a budget adjustment. The property was purchased in 1981 for$71,573.47.The Bureau of Labor Statistics consumer index indicates that the inflation rate between 1981 and now is 2.73% per year.Therefore,the historical cost paid for the property converted to today's dollar would be$204,700.12. COUNCIL DATE: 1 2/15/2020 LEGISTAR FILE ID#: 2020-1039 Roily Slack/ 11/23/2020 10:05 AM Budget Director Date TYPE: D - (City Council) JOURNAL #: GLDATE: RESOLUTION/ORDINANCE CHKD/POSTED: / TOTAL 3,21 1,350 3,21 1,350 v.20201112 Increase / (Decrease) Project.Sub# Account Number Expense Revenue Project Sub.Detl AT Account Name 4470.001.9470-4999.99 204,700 RE Use Fund Balance-Current 4470.090.8900-5805.00 204,700 20020 EX Land -Acquisition 5500.750.5000-6881.02 133,127 20020 RE Gain/Loss Assets-Gain/Loss Sale of Asset 5500.750.5000-4999.99 (133,127) RE Use Fund Balance-Current 4470.001.9470-4881.02 3,006,650 20020 RE Gain/Loss-Sale of Assets 4470.090.8900-5805.00 3,006,650 - 20020 EX Land -Acquisition H:\Budget Adjustments\2020_Budget\City Council\12-15-2020\2020-1039 BA Razorback Rd_Indian Trails for West Markham Hill 1 of 1