HomeMy WebLinkAboutMINUTES-06/02/1998-RegularJune 2,1998
COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
Council -Manager Form of Government
Regular Meeting - 6:00 p.m.
A regular meeting of the Council of the City of Fort Collins was held on Tuesday, June 2, 1998, at
6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered
by the following Councilmembers: Azari, Bertschy, Byrne, Kneeland, Mason and Smith.
Councilmembers Absent: Wanner arrived at 6:25 p.m.
Staff Members Present: Fischbach, Krajicek, Roy.
Agenda Review
City Manager Fischbach noted that two resolutions relating to grant revenue to fund specialized
transit services have been prepared for consideration under Other Business.
Kelly Ohlson, 2040 Bennington Circle, requested that Item # 16 First Reading of Ordinance No.101,
1998, Authorizing the Issuance of City of Fort Collins, Colorado, Downtown Development Authority
Taxable Subordinate Tax Increment Revenue Bonds, Series 1998, Dated July 1, 1998, for the
Purpose of Financing Certain Capital Improvements and Capital Projects, and Providingfor the
Pledge of Certain Incremental Ad Valorem Tax Revenues to Pay the Principal of, Interest on and
Any Premium Due in Connection with the Redemption of the Bonds be withdrawn from the Consent
Agenda.
CONSENT CALENDAR
Second Reading of Ordinance No 92, 1998, Appropriating Prior Year Reserves and
Unanticipated Revenue in the General Fund.
Ordinance No. 92, 1998, which was unanimously adopted on First Reading on May 19,
1998, appropriates 1997 lodging tax receipts dedicated to Cultural Development and
Programming (CDP), Visitor Events, and Tourism Capital. In addition, it appropriates
unexpended 1997 appropriations for CDP and visitor events, and revenue received for CDP
in 1997 and 1998 for use in the specified programs.
June 2, 1998
8. Second Reading of Ordinance No. 93, 1998, Apnrororiatin , Prior Year Reserves in the
Capital Expansion Fund for hnprovements Relating to the Provision of Library Services.
The Library staff and the Library Board have been working on updating the Capital
Improvements Plan for the Library. The Board submitted its long-range plan, entitled "Into
the 21 st Century" to Council in October of 1995, but did not request Council approval of that
Plan. Since that time, Council authorized certain capital improvement expansion fees,
including a fee for library capital improvements. These fees are found in Chapter 7.5, Article
II of the City Code. This Article provides that the expansion fees may only be spent on
improvements identified in the Capital Improvements Plan for library services and further
provides that this Plan must be part of the City's Comprehensive Plan. Ordinance No. 93,
1998, was unanimously adopted on First Reading on May 19, 1998 and appropriates the
funds for this purpose.
9. Second Reading of Ordinance No. 94, 1998, Appropriating Funds from the Affordable
Housing Trust Fund Reserve for Use as Matching Funds for the Larimer Home hnprovement
Rehabilitation Program.
The Larimer Home Improvement Program (LHIP) is a multi -jurisdictional program that
focuses on providing loans to low income households for the purpose of making safety and
structural repairs to their homes. Since its inception in 1994, the program has issued 41
home rehabilitation loans to low income households in Fort Collins. The program is
administered by the Loveland Housing Authority and uses State of Colorado HOME funds
as the primary funding source. In addition to the HOME funds, the State requires each
participating jurisdiction to provide 25% in matching funds. The City of Fort Collins match
has continued to be $22,500 annually. Ordinance No. 94, 1998, which was unanimously
adopted on First Reading on May 19,1998, appropriates matching funds from the Affordable
Housing Trust Fund Reserve for the Larimer Home Improvement Rehabilitation Program.
10. Second Reading of Ordinance No. 95, 1998, Appropriating Unanticipated Revenue and
Authorizing the Transfer of Appropriations to be Used for the Construction of the Second
Segment of the Harmony Road Bikeway Project.
Resolution 98-85, which was unanimously adopted on May 19, 1998, approved the contract
between the City and CDOT to proceed with the final design documents and construction of
the second phase of the Harmony Road Bikelane Project. Ordinance No. 95, 1998, which
was also unanimously adopted on First Reading on May 19, 1998, authorizes the transfer of
funds for the second segment of Project.
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June 2, 1998
11. Second Reading of Ordinance No. 96, 1998, Amending the Zoning Map of the City of Fort
Collins by Changing the Zoning Classification for That Certain Property Known as the
Northstar Mobile Home Community Rezoning.
Ordinance No. 96,1998, which was unanimously adopted on First Reading on May 19,1998,
rezones approximately 2.79 acres located north of LaPorte Avenue and west of Fishback
Avenue from the T, Transition, Zoning District to the LMN, Low -Density Mixed -Use
Neighborhood, Zoning District.
APPLICANTS: Mike Bond/Robyn Laird
NorthStar Mobile Home Community
1700 LaPorte Avenue
Fort Collins, CO 80521
OWNERS: Same
12. Second Reading of Ordinance No. 97, 1998, Adjustingthe he Capital Improvement Expansion
and Neighborhood Parkland Fees for Increases in Inflation Based on the Denver -Boulder
Consumer Price Index.
With the adoption of Ordinance No. 172, 1997, Council approved increases in the Capital
Improvement Expansion Fees. Upon receipt of the most recent updates to the City Code,
staff noted that two of the fee amounts in the Fire Protection Capital Improvement Fee
Schedule were incorrect. When Council adjusted the fee schedules for the increase in the
Denver -Boulder Consumer Price Index, all fees were to increase by 7.32%. Two fee
categories, those for housing units from 1,701-2,200 square feet and those 2,200 square feet
and over received incorrect adjustments. Ordinance No. 97, 1998, which was unanimously
adopted on First Reading on May 19, 1998, makes the corrections to the fee schedule,
effective as of the intended date for the new fees, January 1, 1998.
13. Second Reading of Ordinance No. 98, 1998, Authorizing the Conveyance of Certain Real
Property at Maxwell Open Space and an Access Easement to Fort Collins -Loveland Water
District in Exchange for Certain District Property.
In the fall of 1997, the District requested that the City assist in correcting two problems that
affect the District's foothills water storage site. First, the District proposed that the City
work with the District to clarify and adjust the legal boundaries of the District's water storage
site, to reflect the actual location of the District's water tanks. Second, the District requested
that the City formalize an access easement that has been used historically by the District in
connection its water storage facility.
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June 2, 1998
The District originally purchased the water storage site from Venture Development, Inc., in
1972. Since the time of that purchase, the site has been surrounded by the City's Maxwell
Open Space. As a result, the City's cooperation is needed to assist the District in correcting
the listed problems.
The District's access is across Colorado State University property, up the Dixon Lateral
Road, and finally up the hillside over an access road which has been used by the District
since 1972 but is not of record. This access can be best resolved by the City conveying an
access easement to the District over the existing access road.
The proposed boundary line adjustment reflects the existing configuration and location of
the District's facilities, and will result in no net loss of property for the City. It is proposed
that the City and District exchange by quitclaim deed land parcels to result in District
ownership of the property on which District facilities are located. Ordinance No. 98, 1998,
was unanimously adopted on First Reading on May 19, 1998.
14. Second Reading of Ordinance No. 99, 1998, Authorizing the Conveyance of a Non -
Exclusive Easement for a Sanitary Sewerline to the Boxelder Sanitation District.
Ordinance No. 99,1998, which was unanimously adopted on First Reading on May 19,1998,
authorizes the conveyance of a non-exclusive easement for a sanitary sewerline to help the
Colorado Department of Transportation ("CDOT") in correcting a serious problem with the
failure of CDOT's highway rest station septic system.
15. First Reading of Ordinance No. 100, 1998, Appropriating Unanticipated Revenue in the
Capital Projects Fund for the Design and Construction of the Civic Center Parking Structure.
This Ordinance appropriates proceeds from the receipt of funds from Larimer County in
order to proceed with the design and construction of the Civic Center Parking Structure on
Block 21 in downtown Fort Collins, consistent with the Civic Center Master Plan and
Downtown Parking Plan. The total cost of the project is expected to be $11.2 million. The
entire structure to be constructed is expected to have about 900 parking spaces and
approximately 15,000 square feet of retail and office space.
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June 2, 1998
16. First Reading of Ordinance No. 101, 1998, Authorizing the Issuance of City of Fort Collins.
Colorado, Downtown Development Authority Taxable Subordinate Tax Increment Revenue
Bonds, Series 1998, Dated July 1, 1998, for the Purpose of Financing Certain Capital
Improvements and Capital Projects: and Providing for the Pledge of Certain Incremental Ad
Valorem Tax Revenues to Pay the Principal of, Interest on and Any Premium Due in
Connection with the Redemption of the Bonds.
At its November, 1996 Board of Directors meeting, the Downtown Development Authority
(DDA) considered the development of a mixed -use development project to be located at the
site of the old Mawson Lumber Store on the southeast comer of East Mountain Avenue and
Mathews Street. The proposal consists of a bank (Home State Bank), ground level retail,
upper level rental housing and owner -occupied housing to the rear of the site.
17, First Reading of Ordinance No. 102,1998, Amending Ordinance No. 170,1979, by the Local
Landmark Designation of the Public Rights -of -Way and Certain Other Real Property Owned
by the City of Fort Collins and by the Downtown Development Authority, Located within
the Perimeter of the Old Town Fort Collins Historic District Pursuant to Chapter 14 of the
City Code.
This Ordinance designates the public rights -of -way and certain other real property, owned
by the City of Fort Collins and by the Downtown Development Authority located within the
perimeters of the Old Town Fort Collins Historic District, and not previously specifically
described as a part of the local landmark district in Ordinance No. 170, 1979, in order to
conform the legal description to that intended.
18. First Reading of Ordinance No. 103, 1998, Authorizing the Sale of Approximately
Square Feet of Land Located North of the Eastside Neighborhood Park Site to Elmer J.
Herbertson.
In 1994, the City purchased 1.89 acres of land to be added to the Laurel School site, creating
a total of 9.7 acres for the Eastside Neighborhood Park. A portion of the 1.89 acres purchase
included a remnant of land north to Laurel Street. The remnant has never been used as part
of the park site since there is joint school/park access off of Laurel. Since the purchase, staff
has been negotiating with the property owner to the north to exchange the remnant for a strip
of land along his southerly property boundary. The owner has finally agreed to this
exchange. The additional land (8285 square feet) on the park's northerly property boundary
provides a larger landscaped buffer between the Laurel School playground area and the park
pathway. Landscape improvements for the new park will be completed by the City in late
1998 or Spring of 1999.
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June 2, 1998
19. First Reading of Ordinance No. 104, 1998, Authorizing the Grant of Two Permanent Non -
Exclusive Storm Drainage Easements and Three Related Temporary Construction Easements
to First Healthcare Corporation.
First Healthcare Corporation is requesting two (2) storm drainage easements and related
temporary easements which are in the floodplain located on Fossil Creek Community Park
to convey drainage from the Vencor site to the Fossil Creek channel. Pipelines are being
used to minimize potential erosion. The runoff from the Vencor site is to be treated in water
quality ponds prior to discharge into the channel and any park area disturbed will be re-
seeded with native grasses. Parks Planning and Natural Resources staffs, and the Stormwater
Utility have approved the easements.
20. Items Relating to Adoption of the Martinez PUD.
A. First Reading of Ordinance No. 105, 1998, Amending Ordinance No. 86, 1997 to
Vacate the Easement and Right -of -Way for Public Street as Recorded February 9,
1976, in Book 1684 at Page 895.
B. First Reading of Ordinance No. 106, 1998, Amending Ordinance No. 193, 1997 to
Include a Revised Legal Description to the Grant of Drainage Easement to
Wonderland Hill Development Company for Drainage Facilities and an Outfall to
the Poudre River.
C. Resolution 98-88 Accepting the Revised Legal Description for the Deed of
Dedication of Additional Parkland which Was Recorded in Larimer County Records
June 30, 1997, at Reception No. 9704110.
Last year, City staff worked with the Lee Martinez Neighborhood Association, Wonderland
Hill Development Corporation and the Downtown Development Authority on the
development of an 11.38 acre parcel of land bordering Lee Martinez Park. Wonderland
purchased the land from Trillium Corporation for a co -housing development and worked
closely with the Neighborhood Association and the City to make the development compatible
with the neighborhood and the park. As part of that effort, Council adopted Ordinance No.
86, 1997, vacating a Grant of Easement and Right -of -Way and also adopted Ordinance No.
193, 1997 granting certain easements to Wonderland Hill Development Company in
exchange for a Deed of Dedication from Wonderland for additional parkland. Since that
time, the consulting engineering firm for the project has identified a change in the pattern
of drainage flows from earlier assumptions, which requires a larger easement to better
accommodate the drainage and swale design. In addition, the firm discovered errors in the
legal descriptions it provided for the vacation and the dedication documents. In order to
accommodate the different storm water flows and correct the legal descriptions, staff is
requesting Council's adoption of these items.
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June 2, 1998
21. Items Relating_to the Selection of Sites for Building Community Choices Capital
Improvement Projects.
A. Resolution 98-89 Directing Staff to Acquire a Site fora New Performing Arts Center
to be Located in the Downtown Area.
B. Resolution 98-90 Identifying a Site for the New Northside Aztlan Community
Center.
On May 12, Council, the Cultural Resources Board, the Parks and Recreation Board and staff
met in a Study Session to discuss site selection for a new Performing Arts Center and the
new Northside Aztlan Community Center. The projects are both apart of the voter -approved
Building Community Choices capital improvement program.
22. Routine Deeds and Easements.
A. Deed of Easement from A & E Miller Enterprises LTD, for permanent drainage
easement and storm water detention pond, located at 1015 South Taft Hill Road.
Monetary consideration: $10.
B. Deed of Easement from Arthur Mauldin and Ronald Rockvam, for an access,
drainage and stormwater detention easement, located on the east side of 4800 block
of South College Avenue. Monetary consideration: $0.
C. Deed of Easement from Arthur Mauldin and Ronald Rockvam, for a drainage and
grading easement, located on the east side of the 4800 block of South College
Avenue. Monetary consideration: $0.
D. Deed of Easement from Arthur Mauldin and Ronald Rockvam, for a temporary
construction easement, located on the east side of the 4800 block of South College
Avenue. Monetary consideration: $0.
E. Deed of Easement from James M. And Martha M. Dwyer, for Johnson Drive ROW
dedication, located between Johnson Drive, South College Avenue, and Spring
Court. Monetary consideration: $0.
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June 2, 1998
F. Deed of Easement from James M. and Martha M. Dwyer, for a drainage and utility
easement, located west of South College Avenue and south of Johnson Drive.
Monetary consideration: $0.
G. Deed of Easement from James K. Anstett, for a drainage and utility easement, located
west of South College Avenue and south of Johnson Drive. Monetary consideration:
$0.
H. Deed of Easement from Robert and Linda Wilson for a utility, grading, drainage and
access easement, located at the southwest corner of Centre Avenue and Worthington
Avenue. Monetary consideration: $10.
I. Deed of Easement from Westridge Estates Homeowners' Association, for the Fossil
Creek Trail System and buffer for Taft Canyon PUD, located in the northeasterly
corner of Track `B" of Westridge Estates PUD. Monetary consideration: $10.
J. Deed of Easement from New Belgium Brewing Company, to install new
underground electric system, located at 500 Linden. Monetary consideration: $10.
K. Deed of Easement from Ray B. and Audrey A. Hess, to relocate electric vault to
underground electric system, located at 400 Jefferson. Monetary consideration:
$693.
Items on Second Reading were read by title by City Clerk Wanda Krajicek.
Second Reading of Ordinance No. 92, 1998, Appropriating Prior Year Reserves and
Unanticipated Revenue in the General Fund.
Second Reading of Ordinance No. 93, 1998, Appropriating Prior Year Reserves in the
Capital Expansion Fund for Improvements Relating to the Provision of Library Services.
9. Second Reading of Ordinance No. 94, 1998, Appropriating Funds from the Affordable
Housing Trust Fund Reserve for Use as Matching Funds for the Larimer Home Improvement
Rehabilitation Program.
10. Second Reading of Ordinance No. 95, 1998, Appropriating Unanticipated Revenue and
Authorizina the Transfer of Appropriations to be Used for the Construction of the Second
Segment of the Harmony Road Bikeway Project.
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June 2, 1998
11. Second Reading of Ordinance No. 96, 1998, Amending the Zoning Map of the City of Fort
Collins by Changing the Zoning_ Classification for That Certain Property Known as the
Northstar Mobile Home Community Rezoning.
12. Second Reading of Ordinance No. 97,1998, Adjusting the Capital Improvement Expansion
and Neighborhood Parkland Fees for Increases in Inflation Based on the Denver -Boulder
Consumer Price Index.
13. Second Reading of Ordinance No. 98, 1998, Authorizing the Conveyance of Certain Real
Property at Maxwell Open Space and an Access Easement to Fort Collins -Loveland Water
District in Exchange for Certain District Property.
14. Second Reading of Ordinance No. 99, 1998, Authorizing the Conveyance of a Non -
Exclusive Easement for a Sanitary Sewerline to the Boxelder Sanitation District.
Items on First Reading were read by title by City Clerk Wanda Krajicek.
15. First Reading of Ordinance No. 100, 1998, Appropriating Unanticipated Revenue in the
Capital Projects Fund for the Design and Construction of the Civic Center Parking Structure.
16. First Reading of Ordinance No. 101, 1998 Authorizing the Issuance of City of Fort Collins
Colorado Downtown Development Authority Taxable Subordinate Tax Increment Revenue
Bonds Series 1998, Dated July 1, 1998, for the Purpose of Financing Certain Capital
Improvements and Capital Projects• and Providing for the Pledge of Certain Incremental Ad
Valorem Tax Revenues to Pay the Principal of, Interest on and Any Premium Due in
Connection with the Redemption of the Bonds.
17. First Reading of Ordinance No. 102,1998, Amending Ordinance No. 170,1979, by the Local
Landmark Designation of the Public Rights -of -Way and Certain Other Real Property Owned
by the City of Fort Collins and by the Downtown Development Authority. Located within
the Perimeter of the Old Town Fort Collins Historic District Pursuant to Chapter 14 of the
City Code.
18. First Reading of Ordinance No. 103, 1998, Authorizing the Sale of Approximately 8,284
Square Feet of Land Located North of the Eastside Neighborhood Park Site to Elmer J.
Herbertson.
19. First Reading of Ordinance No. 104, 1998, Authorizing the Grant of Two Permanent Non -
Exclusive Storm Drainage Easements and Three Related Temporary Construction Easements
to First Healthcare Corporation.
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June 2, 1998
20. Items Relating to Adoption of the Martinez PUD.
A. First Reading of Ordinance No. 105, 1998, Amending Ordinance No. 86, 1997 to
Vacate the Easement and Right -of -Way for Public Street as Recorded February 9,
1976, in Book 1684 at Page 895.
B. First Reading of Ordinance No. 106, 1998, Amending Ordinance No. 193, 1997 to
Include a Revised Legal Description to the Grant of Drainage Easement to
Wonderland Hill Development Company for Drainage Facilities and an Outfall to
the Poudre River.
25. Items Relating to the City's Fiscal Year 1998-99 Community Development Block Grant and
Home Investment Partnerships Programs.
A. First Reading of Ordinance No. 107,1998, Appropriating Unanticipated Revenue and
Authorizing the Transfer of Appropriations Between Program Years in the
Community Development Block Grant Fund.
B. First Reading of Ordinance No. 108,1998, Appropriating Unanticipated Revenue and
Authorizing the Transfer of Appropriations Between Program Years in the Home
Investment Partnerships Fund.
26. Items Relating to Economic Policies.
A. First Reading of Ordinance No. 109, 1998, Continuing a Temporary Manufacturing
Equipment Use Tax Rebate Program for Fort Collins Manufacturers.
B. First Reading of Ordinance No. 110, 1998, Suspending the Street Oversizing Fee
Exemption Program for an Indefinite Period.
C. First Reading of Ordinance No. 111,1998, Suspending the Development Impact Fee
Rebate Program for an Indefinite Period.
Councilmember Bertschy made a motion seconded by Councilmember Smith to adopt and approve
all items not removed from the Consent Agenda. The vote on the motion was as follows: Yeas:
Councilmembers Azari, Bertschy, Byrne, Kneeland, Mason and Smith. Nays: None.
THE MOTION CARRIED.
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June 2, 1998
Councilmember Reports
Councilmember Mason reported on the Growth Management Committee meeting, which discussed
where convenience stores are allowed under the Land Use Code, and possible seeding strategies for
encouraging developments in the downtown area, commercial areas, and medium density mixed use
neighborhoods. Ken Waido also made a presentation on the population growth rate.
Councilmember Kneeland reported that the Growth Management Committee also discussed regional
intergovernmental agreements with representatives from the towns of Loveland, Windsor and
Timnath.
Councilmember Byme reported on the Finance Committee meeting which discussed the Celestica
development fees and reviewed the economic impact model. The Committee also discussed
municipal districts.
Councilmember Mason noted that the Finance Committee also discussed the productivity savings
policy and the need to issue a request for proposals for the annual audit.
Councilmember Kneeland reported that the Council representatives to the Poudre School District
Liaison Committee met with staff and discussed Building Community Choices guidelines and
criteria.
Councilmember Smith stated that he attended the National League of Cities Youth Education and
Families Committee and Colorado Municipal League Youth Issues Committee meetings, which
discussed an integrated community for young people.
Councilmember Bertschy noted that applications are needed for the Planning and Zoning Board and
the CDBG Committee.
Items Relating to the City's Fiscal Year 1998-99
Community Development Block Grant and
Home Investment Partnerships Programs, Adopted on First Reading
The following is staff s memorandum on this item.
"Executive Summary
A. Public Hearing and Resolution 98-91 Adopting Fiscal Year 1998-99 Community
Development Block Grant Programs and Projects.
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June 2, 1998
B. Public Hearing and Resolution 98-92 Adopting Fiscal Year 1998-99 Home Investment
Partnerships Programs and Projects.
C. Resolution 98-93 Establishing a Policy for the Allocation of Funding in the Form of Loans
versus Grants for Certain Types of Housing Projects.
D. First Reading of Ordinance No. 107, 1998, Appropriating Unanticipated Revenue and
Authorizing the Transfer of Appropriations Between Program Years in the Community
Development Block Grant Fund.
E. First Reading of Ordinance No. 108, 1998, Appropriating Unanticipated Revenue and
Authorizing the Transfer of Appropriations Between Program Years in the Home Investment
Partnerships Fund.
The Community Development Block Grant (CDBG) Program and the Home Investment Partnerships
(HOME) Program provide Federal funds from the Department of Housing and Urban Development
(HUD) to the City of Fort Collins which can be allocated to housing and community development
related programs and projects, thereby reducing the demand on the City's General Fund Budget to
address such needs. Resolution 98-91 will establish which programs and projects will receive
funding with CDBG funds for the FY 1998-99 program year which starts on October 1, 1998, while
Resolution 98-92 will establish which programs and projects will receive funding with HOMEfunds
for the FY 1998-99 program year which also starts on October 1, 1998. Resolution 98-93
establishes a policy for the allocation of funding from the CDBG and HOME programs in the form
of loans versus grants for certain types of housing projects.
BACKGROUND:
The City Council is being asked to consider two resolutions establishing which programs and
projects will receive funding with CDBG and HOME funds for the FY 1998-99program year, which
start on October 1, 1998.
Since early January ofthis year, the CDBG Commission and the City's CDBG and HOME Program
staffs have conducted public hearings to assess community development and housing needs in Fort
Collins and solicited applications for CDBG and HOME funding. Further, the Commission has
reviewed the written applications, personally interviewed applicants, analyzed the applications, and
formulated a list ofrecommendations to the City Council as to which programs and projects should
receive funding. The Commission utilized several criteria to determine priorities in the process to
establish its list of recommendations, including:
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June 2, 1998
• leveraging, -
acquisition versus operations;
• success rate;
• ability to complete proposal;
• meeting community needs;
• long-term impact;
• full or partial funding;
• competing projects or providers; and
• alternate funding.
The CDBG Program is an ongoing grant administration program funded by HUD. The CityofFort
Collins has received CDBG Program funds since 1975. In 1975 and FY 1976-77 the City received
HUD CDBG discretionary grants. Since FY 1977-78, the City has been an Entitlement Grant
recipient ofCDBGfunds, meaning the City is guaranteed a certain level offunding each year. The
level offunding is dependent on the total amount offunds allocated to the program by Congress and
on a formula developed by HUD, which includes data on total population, minorities as a
percentage of population, income levels, housing stock conditions, etc. Additional background
information on the City's Community Development Block Grant Program is presented in Appendix
"A"attached to this report.
The HOME Program was authorized by the National Affordable Housing Act of 1990 to provide
funds for a variety of housing related activities, to strengthen the ability of local governments to
provide housing, and to expand the capacity of non-profit community -based housing development
organizations to provide affordable housing. In May of 1994, the City received designation as a
Participating Jurisdiction in the HOME Program, which in effect is similar to the City's designation
as an Entitlement communityfor the CDBG Program, meaning the City is guaranteed a certain level
offunding each year. Additional background information on the City'sHOMEProgram is presented
in Appendix "B" attached to this report.
AVAILABLE FUNDS
The amount of the City's CDBG Entitlement Grant for FY 1998-99 is $1,162, 000. The Entitlement
Grant will be combined with $50,000 of CDBG Program Income and $216,875 of CDBG
Reprogrammed Funds. Combining all sources of funds/income provides the City with a total of
$1,428,875 of CDBG funds available for programs and projects during the next CDBG Program
year.
The City's HOME Program grant for the FY 1998-99 is $569, 000 which will be combined with
$50, 000 of HOME Program Income and $59, 900 of HOME Reprogrammed Funds to make a total
of $678, 900 available for programs and projects during the next HOME Program year.
The following summarizes the amount and sources of available funds:
AMOUNT
SOURCE
$1,162,000 FY'98 CDBG Entitlement Grant
50,000 CDBG Program Income
216,875 CDBG Reprogrammed Funds
$1, 428, 875
CDBG Sub -Total
June 2, 1998
AMOUNT SOURCE
$ 569,000 FY'98 HOME Participating Jurisdiction Grant
50,000 HOME Program Income
59,900 HOME Reprogrammed Funds
$ 678,900 HOME Sub -Total
CDBG Program Income includes funds returned to the City through the payment of past housing
rehabilitation loans. CDBG Reprogrammed Funds are funds which were not expended during the
previous program year; $166,875 were reserved for contingency purposes and $50,000 were
previously approved for use by TRAC in connection with the now defunct Parkway Townhouses
Phase II project.
HOMEProgram Income includes funds returned to the City through the repayment of down payment
assistance grants. HOME Reprogrammed Funds are funds which were not expended during the
previous program year.
Below is a summary of recent CDBG funding levels allocated from HUD to the City of Fort Collins:
Entitlement
Reprogrammed
Program
Year
Grant
Funds
Income
Total Funds
1989
679,000
90,000
100,000
869,000
1990
645,000
50,000
30,000
725,000
1991
728,000
160,000
30,000
918,000
1992
802,000
30,000
50,000
88Z 000
1993
1,091,000
50,000
90,000
1,231,000
1994
1,187,000
30,000
50,000
1,267,000
1995
1,231,000
0
40,000
1,271,000
1996
1,202,000
0
40,000
1,242,000
1997
1,188,000
181,273
50,000
1,419,273
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June 1, 1998
1998 1,162,000 216,875 50,000 1,428,875
Below is a summary of recent HOMEfunding levels allocated from HUD to the City of Fort Collins:
HOME
Reprogrammed
Program
Year
Grant
Funds
Income
Total Funds
1994
500,000
0
0
500,000
1995
455,000
0
0
455,000
1996
539,000
0
0
539,000
1997
533,000
0
0
533,000
1998
569,000
59,900
50,000
678,900
SELECTIONPROCESS
The selection process for the City's FY 1998-99 CDBG and HOME Programs began on January 8,
1998, when the CDBG Commission held a public hearing to obtain citizen input on community
development and housing needs. The CDBG and HOME Program offices placed legal
advertisements in local newspapers starting in January and running through March, to solicit
requests for CDBG and HOME funded programs and projects for FY 1998-99. The application
deadline was Thursday, March 26. At the close of the deadline the City received 32 applications
requesting total ofapproximately $4.7 million (two applications were specificallyHOMEProgram
applications requesting $260, 000).
Copies ofall applications were forwarded through the City Manager's office to the City Council on
April 8 and placed in the Council Office for review. Copies of all applications were distributed to
the CDBG Commission on April 9.
On Wednesday, April29, and Thursday, April30, the Commission met to hearpresentations and ask
clarification questions from each applicant. The Commission then met on Wednesday, May 6, for
the purpose ofpreparing a recommendation to the City Council as to which programs and projects
should be funded for the FY 1998-99 program year. At this meeting the Commission reviewed the
written applications, the applicant's verbal presentation, the information provided during the
question and answer session, and reviewed the performance of agencies who received FY 1997-98
CDBG and/or HOME funds or funding in other previous years. The Commission then worked on
formulation of its list of recommendations. A copy of the Commission's minutes from the meeting
is attached.
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June 2, 1998
CDBG COMMISSION'S LIST OF RECOMMENDATIONS
HUD CDBG regulations limit the amount of available funds which can be allocated to various
generic categories. Funds for Planning and Administrativepurposes are limited to 20%ofthe total
of the Entitlement Grant and any anticipated Program Income. This means the 20% limitation for
Planning and Administrative purposes is $242, 400. CDBG funds for Public Services are limited to
15% of the total of the Entitlement Grant and anticipated Program Income, making the amount
$181, 800.
HUD HOME Program regulations limit the amount of available funds which can be allocated for
Administrative purposes to 10% of the HOME Grant. This means the 10% limitation for
Administrative purposes is $56,900. HOME Program regulations also require that 15% of the
HOME Grant be set aside for projects by community -based housing development organizations
(CHDOs). This means that $85,350 must be set aide for CHDOs. At this time, CARE Housing, Inc.,
is the only approved CHDO in the city.
The Commission, thus, not only had to decide which applicants presented programs and projects
which best fit into the City's CDBG and HOME Programs, but also had to insure funding
allocations/requirements were kept within HUD regulations.
The Commission utilized several criteria to determine priorities in the process to establish its list
of recommendations. These criteria were established after a discussion with the City Council at a
study session conducted in December 1995, and include:
HIGHER PRIORITY CRITERIA
1. Leveraging
Guideline: The leveraging of private and non-federal funds is a very im op rtant
consideration in making an allocation of CDBG and HOMEfunds. Applicants will be asked
to indicate the amount of leveraging, including in -kind services, dollars, and/or labor
associated with their CDBG and HOME proposal.
2. Acquisition versus Operations
Guideline: Acquisition proposals which provide assets to the community will be given
greater weight over proposals which are operational in nature.
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June 2, 1998
3. Success Rate
Guideline: Applicants who demonstrate continued success in achieving community needs
will receive extra consideration for funding. On the other hand, applicants who have failed
to achieve their proposal in a timely manner may not receive additional funding.
4. Ability to Complete the Proposal During a Program Year
Guideline: Applicants who provide information indicating a capability to complete their
proposal during the program year will receive consideration for funding over applicants
whose abilities can be questioned.
S. Meeting Community Needs
Guideline: Applicants mustprovide support oftheir application through some sort ofneeds
assessment, preferably through the use of an objective data source, and not rely solely on
anecdotal information. An applicant may also submit a service history of projects from
other communities. Funding allocations will be made to proposals which meet the greatest
community needs.
6. Long -Term Impact
Guideline: Applicants whose proposal has additional long-term impacts beyond the
specifics of the proposal will receive greater consideration for funding.
LOWER PRIORITY CRITERIA
1. Full or Partial Funding
Guideline: Iffunds are not available to support a proposal at the lowest acceptable level,
no funds will be granted to the proposal.
z Competing Projects or Providers
Guideline: Applicants will need to demonstrate theirproposal is not a duplication ofeffort
or a duplication of service provision, including administrative, volunteer efforts, and
acquired service ability.
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June 2, 1998
3. Alternate Funding
Guideline: An applicant will need to discuss what otherfunding sources are available. Full
disclosure of available and applied for funds is considered essential, required, and
mandatory. The Commission needs to know if the project can continue if CDBG/HOME
funds cease to exist.
OTHER CONSIDERATIONS
1. Equal Competition
Guideline: All proposals are considered equally, there is no preference given to new
proposals requesting "seed" money, and likewise, there is no preference given to proposals
which were previous recipients ofCDBG/HOME funds. Continued CDBG/HOMEfunding
from one year to the next is not guaranteed and funding is not a "right" of any applicant.
2. Sequential Grant Limit
Guideline: There is no limit to the number of times an applicant may receive funding from
the CDBG/HOME Program, all applicants are considered equally, however, continued
CDBG/HOME funding from one year to the next is not guaranteed.
Listed below is a summary ofeach applicant's initial request for funding and the Commission's list
of recommendations. Requests and Recommendations specifically for funding with HOME funds
are identified by an H:
PLANNING and ADMINISTRATION
(20% of CDBG Entitlement Grant and Program Income)
(10% of HOME Grant)
RECOMMENDED
REQUEST FUNDING APPLICANT PROGRAM/PROJECT
$121, 353
56,900 H
$121,353
56,900 H
City of Ft. Collins
City of Ft. Collins
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CDBG Program Administration
HOME Program Administration
June 2, 1998
ACQUISITION
RECOMMENDED
REQUEST FUNDING APPLICANT PROGRAMIPROJECT
$ 27,000 (1) X DDA Facade/Sidewalk Improvement
Program
300,000 0 Woman's Center ServiceNet Building
99,500 0 Hahitatfor Humanity Acquisition, Construction and
Development Costs (1 unit)
656,750(2) 0 Palladian Const. Co. Acquisition of Land (259 SF units and
21 accessory units)
HOUSING
RECOMMENDED
REQUEST FUNDING APPLICANT PROGRAM/PROJECT
$ 28,500 28,500 Habitat for Humanity Development Costs (3 units)
749,305 200,000 Ft. Collins Housing Senior Apartments (72 units)
Investors, L.P.
250,000 138,222 Concorde Capital Richard's Lake Townhomes (54
Corporation units)
400,000 400,000 CARE Housing Site Development for Affordable
200, 000 H 2O0, 000 H Housing (50 units)
319,000 319,000 City of Ft. Collins Homebuyer Assistance Program (137
369,750 H 369,750 H units)
60,000 0 Neighbor -Neighbor Neighbors in Need
.:
June 2, 1998
REHABILITATION
RECOMMENDED
REQUEST FUNDING APPLICANT PROGRAMIPROJECT
$ 5,000 5,000 Disabled Resources Architectural Barrier Removal (3
projects)
35,300
313,000
60, 000 H
35,300 H Neighbor -Neighbor Minor Rehabilitation (19 units)
0 DMA Plaza, Inc. Exterior Structural Insulation
PUBLIC FACILITIES
RECOMMENDED
REQUEST FUNDING APPLICANT PROGRAMITROJECT
$ 65,000 25,000 Catholic Charities Hospitality Kitchen Renovation
Northern
37,000 10,000 Elderhaus
322,000 0 Food Distribution
182,509 0 United Way
ADA Restroom Renovation
Remove/replace Parking lot Asphalt
Ceiling Sheathing
Safety Renovation Project
PUBLIC SERVICES
(15% of CDBG Entitlement Grant and Program Income)
RECOMMENDED
REQUEST FUNDING APPLICANT PROGRAM/PROJECT
$ 16,500 16,500 Disabled Resources Youth Employment Program
109,429 20,000 Healthy Start, Inc.
53,426 53,426 Child Care
Collaborative
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Medical and Dental Care (Social
Work)
Sliding Scale Tuition Assistance
June 2, 1998
21,000 10,500 New Bridges, Inc. Daytime Shelter and Human Referral
Center
15,000 15,000 Catholic Charities Shelter and Supportive Services for
Northern the Homeless
6,000
0
Catholic Charities
Senior Services to Frail and Elderly
Northern
and Homebound Elderly
8,000
4,000
Lutheran Family
Prevention of Child Abuse Program
Services
24,992
15,000
Education and
Adult Literacy Services
Life Training
35,000
24,984
Neighbor to
Comprehensive Housing Counseling
Neighbor
and Case Management
20,000
16,000
Project
Self Reliance Support
Self -Sufficiency
Programs for Single Parents
8,236
0
Woman's Center
Health/Dental Care Program
6,390
6,390
Woman's Center
Child Care Resource and Referral
2,882
0
Woman's Center
Career Quest
Total amount of initial CDBG funding requested = $4,681,072.
Total amount of initial HOME funding requested = $686,650.
NOTES:
(1) The DDA withdrew their application indicating there is a such a dire need for affordable
housing in the community and that it did not want to compete for funds with applicants
trying to produce housing.
(2) Palladian Construction Company reduced their request from $656,750 to $500,000
With the amendments, the total amount of CDBG funding requested = $4,448,332.
June 2, 1998
A summary of the Commission's CDBG funding recommendation by category for the total amount
of funds available is as follows:
RECOMMENDED % of
FUNDING
TOTAL
CATEGORY
$ 121,353
8.5
PLANNING and ADMINISTRATION (Maximum $247,600
based on 20% of Entitlement Grant and Program Income)
1,085,722
76.0
HOUSING
5,000
0.3
REHABILITATION
35,000
2.5
PUBLIC FACILITIES
181,800
12.7
PUBLIC SERVICES (Maximum $181, 800 based on 15% of
Entitlement Grant and Program Income)
$1,428,875
100.0
TOTAL
A summary of the Commission's HOME funding recommendation by category for the total amount
offunds available is as follows:
RECOMMENDED
% of
FUNDING
TOTAL
CATEGORY
$ 56,900
8.4
ADMINISTRATION (Maximum $56,900 based on 10% of
HOME Grant)
569,750
83.9
HOUSING
35,300
5.2
REHABILITATION
16,950
2.5
UNPROGRAMMED
$ 678,900
100.0
TOTAL
The total amount of CDBG funded requests considered by the CDBG Commission was
approximately $4.4 million, however, only $1.4 million of CDBG funds were available. The total
amount of HOME funded requests considered by the CDBG Commission was approximately
$686, 650, with about $678, 900 available. With the amount a tal requests far exceeding available
funding, obviously not all applications could be funded. Due to HUD funding limitations, some
Public Service applications received no funds or less funds than requested in order to keep the
generic category within program maximums. No applicant is recommended to receive more funds
than requested.
June 2, 1998
Projects Recommended for Full Fundine
The CDBG Commission has recommended full funding for thirteen (13) proposals. In the
Commission's opinion, the thirteen applications recommended for full funding best fit CDBG
national program objectives, the City CDBGpolicies (presented in Appendix "A'), and the selection
criteria. The following summarizes the Commission's reasoning for full funding, as indicated,
minutes of the May 6 meeting are attached:
City of Fort Collins - CDBG Program Administration
Requested/Recommendation: $121,353
Only the most direct administrative costs for the program are taken from the CDBG grant.
City of Fort Collins - HOME Program Administration
Requested/Recommendation: $56,900
All administrative costs for the program are taken from the HOME grant.
Habitat for Humanity - Development Costs for Affordable Housing
Requested/Recommendation: $28,500
Excellent leveraging of CDBG funds. The agency has an excellent track record.
CARE - Site Development for Affordable Housing
Requested/Recommendation: $400,000
Requested/Recommendation: $200,OOOHOME
The applicant has an excellent track record for completing projects and shows a clear
understanding of building affordable housing. The applicant serves a population that no one else
serves and is increasing its scope to include seniors.
City of Fort Collins - Homebuyer & Closing Costs Assistance
Requested/Recommendation: $319,000
Requested/Recommendation: $369,750HOME
This program has proven to be one of the more effective ways of moving people in the lower income
range into homeownership. The goal of 137+/- units will provide a lot of housing opportunities.
This should also operate as a loan program.
Disabled Resource Services - Architectural Barrier Removal Program
Requested/Recommendation: $5,000
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June 2, 1998
The request was for a very small amount for an important project
Neighbor to Neighbor - Minor Rehabilitation
Request: $35,300
Recommendation: $35,300HOME
The project would provide upgrades to 19 units.
Disabled Resources Services - Supported Youth Employment Program
Requested/Recommendation: $16,500
This agency has a good track record and has demonstrated an ability to perform very well with the
funds they are allocated.
Child Care Collaborative - Sliding Scale Tuition Assistance
Requested/Recommendation: $53,426
The Commission believes this program is critical because it provides services to working parents
and helps keep them in the workforce so they can be self-sufficient. The agencies involved have
good track records in providing service with the funds they receive.
CCN - Shelter and Support Services for the Homeless
Requested/Recommendation: $15,000
The Commission believes that agency does a good job for the homeless and securing funds from
other sources.
Women's Center - Child Care Resource and Referral
Requested/Recommendation: $6,390
The Commission believes this proposal will provide a good service by helping workingparents find
quality daycare providers.
Proiects Recommended for Partial Funding
Proposals which did not receive full funding were deemed of a lower priority and, in some cases,
a lack of funds or program category limitations, especially in the Public Services category,
prohibited their full funding. The following describes the specific reasons why the Commission
believes certain projects should not receive their full funding amount:
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June 2, 1998
Ft. Collins Housing Investors, L.P. - Senior Housing
Requested: $749,305 Recommendation: $200,000
The proposal was for about 50% of the available CDBG funds. The Commission recommends, as
the applicant requested, that the allocation be in the form of a 7% loan. The project is for needed
senior housing and the applicants have a good track record in the city.
Concorde Capital Corporation - Richard's lake Townhomes
Requested: $250,000 Recommendation: $138,222
The Commission recommends, as the applicant requested, that the allocation be in the form of a
loan, 5%-7% for 20 years.
CCN- Hospitality Kitchen Renovation
Requested: $65,000 Recommendation: $25,000
Because the Mission recently expanded its overnight capabilities there is a corresponding need to
expand the food service component.
Elderhaus - ADA Restroom Renovation
Requested: $37,000 Recommendation: $10,000
The request seems too high for one bathroom, but the Commission supports a reduced amount
because of the need.
Healthy Start - Medical and Dental Care
Requested: $109,429 Recommendation: $20, 000 -Social Work
The Commission supports only the social work aspect of the proposal and believes that the agency
should be receiving more funds from other sources, i.e., Poudre Valley Hospital District.
New Bridges - Daytime Shelter and Human Referral Center
Requested: $21,000 Recommendation: $10,500
The agency provides a service by having a place for homeless people to go to during the day. The
Commission noted that there is a viable contingency fund available in their budget.
Lutheran Family Services - Prevention of Child Abuse Program
Requested: $8,000 Recommended: $4,000
The applicant demonstrated that they have secured a lot of funding from other sources. The
program has a good track record and has a long term impact on the community.
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June 2, 1998
Education & Life Training Center -Adult Literacy Services
Requested: $24,992 Recommendation: $15,000
The Commission understands that this service fills a critical community need and the agency has
a good history ofservice. Traditionally it is hard for this program to find funds from other sources.
Neighbor to Neighbor, Inc. - Comprehensive Housing Counseling and Case Management
Requested: $35,000 Recommendation: $24,984
The Commission understands that this service fills a critical community need and the agency has
a good history of service. The reduction in funding was partially due to the limited amount offunds
which can be allocated in the Public Services category.
Project Self -Sufficiency -Project Self -Sufficiency .
Requested: $20,000 Recommendation: $16,000
The Commission supports this program and the agency has a good track record in the services
provided. The reduction in funding was partially due to the limited amount of funds which can be
allocated in the Public Services category.
Proiects Recommended to Receive No Fundine
The following applications did not receive a recommendation for funding. The following
summarizes the specific reasons why the Commission believes these projects should not receive their
requested funding:
Women's Center - ServiceNet Building
Requested: $300,000
The Commission did not believe a downtown site was necessary and that less expensive sites exist
in the community.
Habitat forHumanity -Acquisition, Construction and Development Costs forAffordable Housing
Requested: $99,500
Too much money for one unit. There were too many unknowns about this proposal
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June 2, 1998
Amshell Corporation - Prospect Commons Townhomes
Requested: $74, 000
The Commission believed there was too much inaccurate and incomplete information in the
proposal. Other builders seem to be able to produce for -sale units at $105, 000 without subsidy.
Palladian Construction Company - Acquisition of Landfor Affordable Housing
Requested: $500,000
The Commission had concerns because the site is in the f oodplain and the applicant has no track
record developing affordable housing.
Neighbor to Neighbor, Inc. - Neighbors in Need
Requested: $60,000
The Commission was not convinced that this would be a one time request and that there are many
ways to avoid foreclosure.
DMA Plaza, Inc. - Exterior Structural Insulation
Requested: $313,000
Requested: $ 60, 000 HOME
The requests are for a significant amount of the available funds. The Commission believes the
project would not be as cost effective as indicated in the proposal.
Food Distribution Center - Parking Lot Asphalt and Ceiling Sheathing
Requested: $322,000
The Commission has recommended funds to this agency in the past, but is now concerned that the
agency is not doing an adequate job of budgeting for routine maintenance needs of the facility.
United Way - Safety Renovation Project
Requested: $182,509
CDBG funds were used to help build the project with the understanding that rents would cover
operating expenses and maintenance costs.
CCN - Senior Services to Frail and Homebound Elderly
Requested: $6,000
The Commission does not believe there is sufficient demand to substantiate the service. In
comparing the service to other agencies, the dollars per person ratio seemed too high.
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June 2, 1998
Women's Center - Health/Dental Care Program
Requested: $8,236
The Commission believes this is duplication of services already provided within the community.
Women's Center - Career Quest
Requested: $2,882
The Commission believes that theproposal is a duplication ofservices alreadyprovided within the
community.
Establishinea Policy for the Allocation ofFundine in the Form ofLoans versus Grants for Certain
Types of Housing Protects
As indicated above, the City typically receives over $1 million in CDBG funds and $500, 000 in
HOME funds from HUD on an annual basis. It is not known how long these programs will exist
at the Federal level. As Congress seeks ways to reduce taxes and balance the Federal Budget,
funding for some programs will need to be reduced or the programs eliminated completely. It is
possible that the CDBG and HOME Programs could be eliminated in the same way the Revenue
Sharing Program was eliminated several years ago.
The City allocates its CDBG and HOMEfunds to a variety ofcommunity development needs in the
city, especially affordable housing projects and related public service programs. Most allocations
are in the form ofgrants, but some are in the form of loans which are repaid to the City and which
are then reallocated to affordable housing projects and public service programs. Expanding the
amount offunds allocated in the form of loans rather than grants would only increase the amount
of "Program Income" returned to the City in future years. As the amount of Program Income
grows, it could provide a buffer to possible CDBG/HOME funding reductions or program
elimination.
The issue before Council contained in Resolution 98-93 is to establish a policy for the allocation of
funding in the form of Loans versus Grants for certain types of housing projects as follows:
A. Funds allocated through the Homebuyer Assistance Program will be in the form of
Deferred Payment Loans, Due on Sale. (In order to protect the City's investment,
a condition of the Deferred Loan would be that the City has the first right of refusal
in the case of foreclosure.)
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June 2, 1998
B. Funds for Land Acquisition and/or Development Costs will be based on the
developer of the project as follows:
Allocations to projects developed by for profit entities will be in the form of
5% - 7% Loans for a period of up to 20 years.
2. Allocations to projects developed by non-profit entities will be in the form of
Grants.
It will be thefor profit applicant's responsibility to provide a proforma so the interest rate and other
conditions for the loan can beset. It will also be the non-profit applicant's responsibility to prove
to the City that the project needs a grant and can't possibly proceed if funding is in the form of a
loan. All decisions as to whether a project receives a funding allocation in the form of a grantor
loan will rest with the City Council when funding decisions are made.
This issue was discussed at the May 26, 1998, Council/CDBG Commission Study Session."
Chief Planner Ken Waido gave details concerning the five items before Council for consideration
and summarized the process that has been followed, noting that the City's process has been used by
HUD as a model for other communities.
Chris Corcoran, Elderhaus Adult Day Programs, thanked the CDBG Commission for recommending
funding for the ADA restroom renovation project.
("Secretary's Note: Councilmember Wanner arrived at 6:25 p.m.)
Councilmember Mason made a motion, seconded by Councilmember Bertschy, to adopt Resolution
98-91.
Waido stated that the Resolution deals with the CDBG program and the regulations for that program,
which limit the money that can be put into certain categories. Public service requests are limited to
only 15% of a combination of the grant and program income, which amounts to $181,800. The
Commission recommendation is to put that entire amount into that category.
Councilmember Smith asked for confirmation that the 15% is an absolute limit. Waido stated that
this is an absolute limit and funds can not be taken from other categories.
Councilmember Byrne asked about the overall need in the community for homeless shelters. Waido
stated that agencies providing this service say there is never enough funding.
Mayor Azari asked for clarification concerning the funding for administration, expressing support
for fully using CDBG funds for programs rather than administrative costs. Waido stated that the
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June 2, 1998
CDBG administrative budget only covers a portion of the cost to administer the program and noted
that the other source of funding would be the General Fund.
Mary Cosgrove, Project Self -Sufficiency, thanked the Council for its long term support of Project
Self -Sufficiency and asked that the award be increased from $16,000 to $20,000, which was the
group's funding request. She also expressed thanks for the support of the City's volunteer program
for the Project's car repair program.
Joyce Whitten, New Bridges, stated that last year the agency served 1,765 homeless adults and 95
children. She spoke of cooperative efforts between agencies to build a community building that
would replace current high rent locations.
Councilmember Kneeland stated that while Project Self -Sufficiency is worthwhile, the CDBG
Commission struggles every year with how to best meet overall community needs.
Councilmember Bertschy asked the CDBG Chair to speak about the process for the Commission to
arrive at its recommendations, and asked about the Commission's philosophy on whether or not an
agency receives full funding when the need exceeds the available funding.
Holly Sample, CDBG Chair, summarized the dynamic process followed by the Commission to shape
its final recommendation, which attempts to balance needs.
Councilmember Byrne asked about programs dealing with medical or dental social work.
Councilmember Smith asked about the Catholic Community/Northern program.
Councilmember Smith stated that there is an intricate web of public service and volunteer agencies
making the community work. He thanked the CDBG Commission for its hard work.
Councilmember Byme commented that the needs are large and growing.
Councilmember Bertschy thanked the CDBG Commission for its work, noting the difficulty of
working through the process as funds shrink and thanked the community's volunteer agencies. He
noted the significance of the allocation of some funding for affordable housing.
Councilmember Mason noted the importance of Project Self -Sufficiency and the difficulty of
working within the 15% limit. He thanked the CDBG Commission for its efforts.
Councilmember Kneeland commented that this type of funding is unpredictable, but the CDBG
Commission has made an effort to look at performance rather than previous funding allocations.
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June Z 1998
Mayor Azari commented on the value ofthe CDBG program as a benefit to the positive development
of communities.
The vote on Councilmember Mason's motion was as follows: Yeas: Councilmembers Azari,
Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None.
THE MOTION CARRIED.
Councilmember Bertschy made amotion, seconded by Councilmember Wanner, to adopt Resolution
98-92.
Councilmember Bertschy asked if ways can be found in the future to fund administration in other
ways.
Holly Sample, CDBG Commission Chair, stated that the Commission's recommendation for funding
of administration is well below the level of funding allowed by HUD.
Rusty Collins, Neighbor -to -Neighbor, expressed appreciation for funding from the CDBG and
HOME programs.
Sister Mary Alice Murphy, CARE Housing, expressed appreciation for the way the CDBG and
HOME programs and the CDBG Commission work together.
The vote on Councilmember Bertschy's motion was as follows: Yeas: Councilmembers Azari,
Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None.
THE MOTION CARRIED,
Councilmember Kneeland made a motion, seconded by Councilmember Wanner, to adopt
Resolution 98-93.
Waido explained policies for loans versus grants for housing projects.
Councilmember Kneeland commented that the Council discussed this in detail at a study session.
Councilmember Smith thanked the CDBG Commission, staff and the for profit agencies that came
forward for loans. He encouraged innovative approaches that add to the community.
Councilmember Bertschy commented that the loan program is innovative and encouraged supporting
projects that serve the lower income.
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June 2, 1998
Mayor Azari asked what happens if a loan is in default. Jackie Davis, CDBG Program, stated that
the City would have the first right of foreclosure.
The vote on Councilmember Kneeland's motion was as follows: Yeas: Councilmembers Azari,
Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None.
THE MOTION CARRIED.
Councilmember Mason made a motion, seconded by Councilmember Bertschy, to adopt Ordinance
No. 107, 1998 on First Reading. The vote on the motion was as follows: Yeas: Councilmembers
Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None.
THE MOTION CARRIED.
Councilmember Bertschy made amotion, seconded by Councilmember Wanner, to adopt Ordinance
No. 108, 1998 on First Reading. The vote on the motion was as follows: Yeas: Councilmembers
Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None.
THE MOTION CARRIED.
Items Relating to
Economic Policies, Adopted on First Reading
The following is staff s memorandum on this item.
"Financial Impact
These items relate to the rebate, and/or exemption of Manufacturing Use Tax, Development Impact
Fees, and Street Oversizing Impact Fees. There are no immediate financial impacts associated with
these policy items. However, actual application of the programs does require that the specific
financial impacts be indicated on a case -by -case basis for Council consideration and action.
"Executive Summary
A. First Reading of Ordinance No. 109, 1998, Continuing a Temporary Manufacturing
Equipment Use Tax Rebate Program for Fort Collins Manufacturers.
B. First Reading of Ordinance No. 110, 1998, Suspending the Street Oversizing Fee Exemption
Program for an Indefinite Period.
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June 2, 1998
C. First Reading of Ordinance No. 111, 1998, Suspending the Development Impact Fee Rebate
Program for an Indefinite Period.
During the April 14, 1998 City Council Study Session on Economic Policy, Council requested that
staff bring the preceding items forward for consideration and action. During the March 19, and
April 16, 1998 meetings of the Council Finance Committee, members of the Committee also
considered the City's financial incentive programs. The focus of the Committee in reviewing these
programs was an overall concern for fairness and effectiveness. The Finance Committee
subsequently recommended that these items be brought forward for Council consideration, with the
changes to the Manufacturing Use Tax Rebate as indicated below.
MANUFACTURERS USE TAX REBATE
Program Background:
The Manufacturers Use Tax Rebate Program was initiated in 1996, and was intended to
focus on encouraging the reinvestment made by local manufacturing firms in new
manufacturing equipment. This type ofinvestment used to be made every three or four years;
in this day and age such investments are being made every fifteen to eighteen months. This
would result in a relative windfall for a community since there is little added cost or impact
associated with serving existing firms. In the first year of this program the City rebated
approximately $380,287 to ten local firms out of twenty-seven that were eligible for rebates.
The total Manufacturing Use Tax Rebate for 1997 will be approximately $500, 000.
Suggested Program Modifications:
The filing deadline was changed from January 30 to March 31.
A provision was added that would allow firms to apply for a "direct pay" agreement with
the Cityfor large one-time expansions or retooling projects. The purpose of the direct pay
is to allow manufacturers to remit use tax directly to the City rather than pay the 3.0% sales
tax to vendors who are required to collect Fort Collins tax.
A provision was added that would limit all rebates to 75% of the eligible amount. The
purpose of this provision is to reduce the rebates to exclude the three 114 cent dedicated
sales and use taxes. In prior years, the rebate was not adjusted for that dedicated portion,
resulting in a General Fund subsidy of the rebate of quarter -cent taxes.
Program Modifications that were Suggested but are NOT Recommended:
The 10% employment growth requirement was left as part of the program.
Waiting period for companies to become eligible for the rebate remains at three years.
The rebate continues to apply only to use taxes. The direct pay provision will provide an
option for companies to pay sales tax directly to the City in the form of a use tax.
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June 2, 1998
0 The cap for a maximum rebate of $2.4 million remains as part of the program.
A copy of the Program Description indicating the recommended changes is attached.
DEVELOPMENT IMPACT FEE REBATE
Program Background:
The Development Impact Fee Rebate Program was initiated in 1990 with City Council
approval. Theprogram was originally a fee waiverprogram, with the General Fund actually
bearing the burden for the firm. The program was modified in 1994, and converted to a
rebate program. In this way the firm pays the fees up front, and then receives a rebate ofthe
impact fees (as approved by Council) over time using the sales and use taxes received from
the firm. The program was intended to assist in the location and expansion of basic
industrial firms by reducing the initial costs associated with the construction/expansion of
the firms facilities. Since the program 's inception, roughly $980, 000. has been approved by
Council. NOTE: Three firms that have to date announced expansion plans by letter to the
City, will be considered for Development Fee Rebates. This includes Celestica, Hewlett
Packard, and Advanced Energy.
STREET OVERSIZING FEE EXEMPTION
Program Background:
The Street Oversizing Fee Exemption Program was initiated in August 1989, and was
intended to assist in the location and expansion of smaller basic industrial firms. The
program functions administratively, and can be approved up to a maximum of $50, 000. The
City Council has appropriated $100, 000. each year for the past nine years for the program.
The funding is limited to the yearly $100, 000 appropriation, and does not carry-over from
year-to-year. Since the program 's inception, roughly $170, 000 has been spent. The typical
amount of an exemption is in the $3, 000 to $5, 000 range.
The suspension of the Development Impact Fee Rebate Program and the Street Oversizing Impact
Fee Exemption Program will remain in effect until such time as the City Council takes action to re-
authorize, or reinstate them. In addition to the above actions, Council has requested that staff
further refine the Manufacturing Use Tax Rebate Program with the intent ofproviding overall tax
fairness to local businesses makingfrequent re -investment decisions which impact both the business
and the community.
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June 2, 1998
FURTHER DIRECTION:
City Council also requested that staff modify the City's Overall Economic Policy that was last
amended in 1994, to include the focus on small business development through the Virtual Business
Incubator Partnership, Microloan Guarantee Program, and small business outreach efforts with
other agencies. Additionally, the revised policy will include the use ofnewly-developed economic,
community, and environmental measures, as well as the possible formation of a City Economic
Policy Advisory Board. The measures will be used to track the relative condition of the local
community and economy. The Board's function may relate to the evaluation of the aforementioned
measures, consideration of new policy direction, and, in general, advice to the City Council
regarding matters involving economic policy.
This work will be concluded by November 30, 1998."
Frank Bruno, Assistant City Manager, gave background on the issues and summarized the purposes
and provisions of the ordinances, which have been brought forth for Council consideration in
response to direction received at the April 14, 1998 Study Session.
Councilmember Kneeland asked about collaboration with the business community on these issues.
Bruno stated that there have been opportunities to speak with business groups, but there has not been
a large outreach effort on this proposal.
Councilmember Bertschy asked if this extends the rebate just for calendar year 1998.
Bruno stated that is correct for the manufacturing use tax rebate. The Finance Committee would like
to see further work done on the policy to further simplify what is in place now. Staff will work with
citizens to review suggested modifications and will present a more complete package regarding use
tax by November 30.
Councilmember Wanner stated that the Finance Committee looked at the manufacturer's use tax
rebate and had a concern that the outcome for the community was not known. This was established
as a temporary program. The City is short on money for transportation and it does not make sense
to waive street oversizing fees for companies wanting to relocate here.
Councilmember Mason stated that the objective criteria for manufacturer's use tax needs to be
restructured to reflect the recent trend for companies to retool more often. The current rebate
program puts Council in a position of having to make decisions on a case by case basis instead of
based on a firm economic policy based on objective criteria.
Councilmember Byme commented that the goal is fairness and simplification. Even a good
economic impact model is highly subjective. The dynamic of manufacturing has changed and some
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June Z 1998
companies must pay a lot of use tax when they retool. Staff will continue to review broader
economic policies. The goal is a process that is more clearly understood and is equitable.
Councilmember Smith asked about the impact ofthe debrucing measure approved at the last election
and whether rebated fees still count in the cap.
Alan Krcmarik, Finance Director, stated that the City collects money subject to the limit. In the
event the City is over the limit, the City does not have to give the money back to the voters, but it
must be used for four specified purposes.
Councilmember Smith commented on the use ofthe fiscal and environmental impact model to better
understand the network of flows of funds and effects that occur in the community on major
programs. Suspension of the development impact fee rebate program may create a complicated set
of interactions, and he asked if further study will be done before November 30 to better understand
a new tool that is available.
Bruno stated that as staff proceeds using the impact model, information will be developed on the
flows within the economy to better understand the sectors of the economy.
Fischbach stated that staff is looking at the entire framework for the November 30 report to the
Finance Committee and Council.
Councilmember Wanner stated that the main reason for looking at this issue is policy making.
Councilmember Mason made a motion, seconded by Councilmember Wanner, to adopt Ordinance
No. 109, 1998 on First Reading.
Roland Mower, President of the Fort Collins Economic Development Corporation, spoke in support
ofthe ordinance. The Corporation's Board also supports the creation of an economic advisoryboard
to work with the Finance Committee to review this policy. Fairness, equity, simplicity and
predictability are important guiding principles.
Mike Hauser, Executive Director of the Fort Collins Chamber of Commerce, spoke in support ofthe
ordinance. He spoke of the importance of looking at tax policies in the information age because the
nature of business is changing rapidly. He urged moving up the time frame because business
decisions are made at a rapid pace.
Councilmember Kneeland supported the ordinance and spoke about the reasons for instituting the
rebate program initially. She commented on of the importance of having good paying jobs in the
community.
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June 2, 1998
Councilmember Mason supported the ordinance because it provides an opportunity to retool the
policy.
The vote on Councilmember Mason's motion was as follows: Yeas: Councilmembers Azari,
Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None.
THE MOTION CARRIED.
Councilmember Mason made a motion, seconded by Councilmember Wanner, to adopt Ordinance
No. 110, 1998 on First Reading.
City Manager Fischbach stated that staff hopes to bring all three issues to closure and develop an
economic policy for Council consideration by November 30.
Kelly Ohlson, 2040 Bennington Circle, opposed growth subsidies and urged elimination ofthe street
oversizing fee exemption program and development impact fee rebate program. He stated that
consistency in policies is important and urged creating a broad fiscal and budget board.
The vote on Councilmember Mason's motion was as follows: Yeas: Councilmembers Azari,
Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None.
THE MOTION CARRIED
Councilmember Wanner made a motion, seconded by Councilmember Mason, to adopt Ordinance
No. 111, 1998 on First Reading.
Councilmember Smith commented that on the importance ofhaving an open review process on these
issues.
Mayor Azari stated that there is a lot of work to be done on economic issues. The first step is to
develop broad principles, then a policy that fits the principles.
The vote on Councilmember Wanner's motion was as follows: Yeas: Councilmembers Azari,
Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None.
THE MOTION CARRIED.
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June 2, 1998
Ordinance No. 101,1998,
Authorizing the Issuance of City of Fort Collins, Colorado,
Downtown Development Authority Taxable Subordinate
Tax Increment Revenue Bonds, Series 1998, Dated July 1, 1998,
for the Purpose of Financing Certain Capital Improvements
and Capital Projects; and Providing for the Pledge of Certain Incremental
Ad Valorem Tax Revenues to Pay the Principal of, Interest on and Any
Premium Due in Connection with the Redemption of the Bonds Adopted on First Reading
The following is staff s memorandum on this item.
"Executive Summary
At its November, 1996 Board of Directors meeting, the Downtown Development Authority (DDA)
considered the development of a mixed -use development project to be located at the site of the old
Mawson Lumber Store on the southeast corner of East Mountain Avenue and Mathews Street.
The proposal consists of a bank (Home State Bank), ground level retail, upper level rental housing
and owner -occupied housing to the rear ofthe site. The DDA was strongly supportive ofthis project
for the following reasons:
The emergence offznancial services well to the east ofthe main downtown financial district
and away from most ofthe redevelopment activity occurring in the central business district;
2. The push the project will give to the very -slowly redeveloping East Mountain Avenue area.
The presence of this project is expected to provide momentum to the effort initiated by
Adventure Ouyitters and NRCE (Harmony Mill redevelopment);
3. It has redeveloped a parcel of land that has been vacant since 1986;
4. It may instigate additional redevelopment in the area including the Paramount building; and
S. It introduces additional housing opportunities into the central business district and the first
owner -occupied opportunity since Parklane Towers was built in the 1960's.
The design of the project picks up on common downtown architectural themes including the use of
brick andprominent cornerfeatures. Right-of-way improvements are considerably beyond minimum
City requirements and establish a strong pedestrian orientation which should be precedent setting
as the rest of East Mountain Avenue redevelops. The project meets all the objectives and code
requirements of the recently adopted City Plan.
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June 2, 1998
Because of the project's positive impact, the DDA agreed to fund $190,000 in right-of-way
improvements subject to City Council approval to enter into a borrowing arrangement with a local
lender for a very short-term obligation.
Fundine
The DDA has excess monies available in its tax increment reserve fund to cover this expenditure.
However, Colorado Statute requires that tax increment monies only be used to service debt.
Therefore, to spend the $190,000 a debt instrument must first be created. This requirement would
be met through entering into a short-term loan from a local bank. The money will be borrowed and
the debt retired immediately so that interest costs are almost non-existent. Five local banks have
expressed written interest in participating in this deal. The best proposal allows the borrowing to
occur with no fees incurred. In summary, the City will borrow $190, 000, grant the money to the
DDA for payment to the project developer, and will immediately repay the debt using excess tax
increment reserve monies.
As with almost all DDA projects, the funds will not be released until all the work is completed and
a certificate ofoccupancy issued by the City Building Department. This ensures that the expenditure
has actually leveraged the intended project.
Council action authorizes the City to enter into a short term debt obligation, and appropriation and
payment of the loan proceeds for the subject project improvements and the appropriation and
expenditure of tax increment monies to retire the debt."
Alan Krcmarik, Finance Director, presented background information concerning the project. He
noted that there are seven prerequisites for the project that should be met in the next several weeks.
This is a bond ordinance pledging tax increments, and staff can certify that there are sufficient
revenues to meet obligations.
Councilmember Wanner made a motion, seconded by Councilmember Bertschy, to adopt Ordinance
No. 101, 1998 on First Reading.
Councilmember Smith asked for clarification about the interest rate.
Kelly Ohlson, 2040 Bennington Circle, stated he does not oppose the project and noted he had
questions about the information that was available to the public about where the money is being
spent. He also expressed concerned that the Downtown Development Authority is becoming more
of a political action committee paid for with public funds.
Councilmember Mason spoke in support of the project as an enhancement for the downtown.
June 2, 1998
Councilmember Byrne spoke concerning the design, funding and costs for the parking structure,
noting that actual projects costs are on target.
Councilmember Bertschy complimented the Downtown Development Authority on the project.
Councilmember Wanner stated this project adds a lot to the downtown and commented that the DDA
operates strictly within the purposes for which it was established.
Councilmember Smith thanked the DDA and Home State Bank for their involvement in the project.
The vote on Councilmember Wanner's motion was as follows: Yeas: Councilmembers Azari,
Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None.
THE MOTION CARRIED.
Other Business
Items Relating to Grant Revenue to Fund Specialized
Transit Services in the Non -urbanized Area Adopted
The following is staffs memorandum on this item.
A. Resolution 98-94 Authorizing the Mayor to Enter into an IntergovernmentalAgreement with
the State Department of Transportation, Division of Transportation Development, for the
Provision of Public Transportation Services in Non -urbanized Areas.
B. Resolution 98-95 Authorizing theMayor to Enter into an IntergovernmentalAgreement with
the State Department of Transportation, Division of Transportation Development, for the
Provision of Transportation Services for Elderly and Persons with Disabilities.
FINANCIAL IMPACT:
The Colorado Department of Transportation grants provide capital and operating/administration
funding for Dial -A -Ride paratransit services in the non -urbanized area, and
operating/administration funding for Fox Trot bus services. These two grants purchase one(l)
paratransit vehicle for non -urbanized service and one (1) full size bus for service on the Fox Trot
route.
Grant 5310 (capital)
(Paratransit)
Federal Share $ 38,500
Local Share $ 9,625
TOTAL $48,125
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Grant 5311 (Fox Trot Bus)
Federal Share $192,000
Local Share $ 48,000
TOTAL $240.000
June 2, 1998
The local share will be provided by the service agencies (Larimer County, Loveland, City of Fort
Collins) and transportation grants from Office on Aging, Larimer County and United Way. These
funds will be appropriated later into Transfort/Dial-A-Ride budgets to purchase the equipment.
EXECUTIVE SUMMARY.
These resolutions authorize the execution of intergovernmental agreements with the Colorado
Department of Transportation for federal transportation grant funds. The subject grantfunds will
be used to purchase anew replacement mini -bus for service in the non -urbanized areas surrounding
Fort Collins, and a new full size bus to operate on the Fox Trot route. Staff was notified by the
Colorado Department of Transportation regarding these grant funds too late to include this item
in the agenda materials for the June 2nd meeting; however, in order to expedite processing and
permit ordering of the funded vehicles in time for September delivery and under the current pricing
scheme, this item is being presented as an "Other Business" item.
BACKGROUND:
The paratransit vehicle will provide operating assistance to Estes Park, Berthoud Area
Transportation (BATS), Senior Alternatives in Transportation (SAINT), Loveland, Larimer County,
and the City of Fort Collins(non-urbanDial-A-Ride and Fox Trot). Theseprogramsprimarily serve
the elderly and disabled. In addition, capital funding will be provided to purchase one (])full size
bus for service on the Fox Trot route.
These grants were previously administered by Larimer County, but following some organizational
restructuring, the County was looking for another agency to administer the grants. Transfort staff
offered to do the administration. The grant program is funded for the next two years and includes
money to cover the administration expenses. Transfort will hire a half-time person to work with
state and local agencies in administering the grants. "
Multi -Modal Transportation Group Leader Tom Frazier, stated that the two Resolutions relate to
intergovernmental agreements with the Colorado Department of Transportation to buy a full sized
transit bus and a minibus to be used for paratransit for the elderly and disabled in non -rural areas.
These items appear under Other Business because notice of the grant was received from CDOT last
week and there is a short time frame for ordering the vehicles. The vehicles can not be ordered until
the funds are approved, and a purchase order is needed by mid -June for the order to remain in the
1998 manufacturer's schedule at 1998 prices.
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June 2, 1998
Councilmember Mason asked if the full sized transit bus is for Foxtrot and asked about the
possibility of placing bike holders on the bus.
Councilmember Byrne asked about the source of local funding and the status of appropriating the
money.
Councilmember Mason made a motion, seconded by Councihnember Wanner, to adopt Resolution
98-94. The vote on the motion was as follows: Yeas: Councilmembers Azari, Bertschy, Byrne,
Kneeland, Mason, Smith and Wanner. Nays: None.
THE MOTION CARRIED.
Councilmember Wanner made amotion, seconded by Councilmember Bertschy, to adopt Resolution
98-95. The vote on the motion was as follows: Yeas: Councilmembers Azari, Bertschy, Byrne,
Kneeland, Mason, Smith and Wanner. Nays: None.
THE MOTION CARRIED.
Councilmember Bertschy stated that he has received a request from Ed Robert, representing an
aviation group, concerning funding for an aviation memorial. The requesting group is willing to
undertake fund raising for the project and has been working on many of the details of the project.
He asked if Councilmembers would be interested in directing staff to investigate the true costs and
feasibility of the project. The consensus was in favor of directing the staff to investigate the project
to obtain more information to be presented to Council.
Mayor Azari spoke concerning developing community partnerships surrounding Building
Community Choices.
City Manager Fischbach stated that the new Budget Committee met last week. This is an internal
committee working with the City Manager. The Committee will meet every three weeks.
Councilmember Smith suggested looking for members from CSU. Councilmember Mason asked
how committee members have been selected. Councilmember Byrne stated that the Finance
Committee will be receiving information about the Budget Committee's work. Councilmember
Bertschy supported looking to CSU as a source of good advise on the Budget Committee and
stressed the importance of Council having a continued opportunity to suggest members for the
Committee. Mayor Azari stated there has been good progress in achieving more community input
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June 2, 1998
on the budget and a more active role for the Finance Committee. Councilmember Smith suggested
discussing underlying process issues in the future.
The meeting adjourned at 8:40 p.m.
ATTEST:
City Clerk
Adjournment
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