HomeMy WebLinkAboutMINUTES-07/21/1998-RegularJuly 21,1998
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, July 21, 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, and Mason.
Councilmembers Absent: Smith. Wanner arrived at 6:35 p.m.
Staff Members Present: Fischbach, Krajicek, Roy.
July 14,1998
Adiourned Meeting
Mayor Azari noted that the Adjourned Meeting of July 14, 1998 was not held because Council
decided to forego conducting a mid -year review of the City Manager, City Attorney and Municipal
Judge. In addition, a quorum would not have been present.
Steve Roy, City Attorney, stated that pursuant to the City Code, the City Clerk convened the July 14,
1998 meeting at 6:00 p.m. and in the absence of all Councilmembers adjourned the meeting for lack
of a quorum.
Citizen Participation
Arvid Bloom, 1905 Cottonwood Point, spoke regarding concerns about changes to the
manufacturer's use tax program impacting small businesses.
Citizen Participation Follow-up
Councilmember Kneeland commented on the need to remember that more than 80% of Fort Collins
businesses are small businesses as the Council discusses changes to the manufacturer's use tax
program.
Agenda Review
City Manager Fischbach stated that an ordinance has been prepared for Council's consideration
under Other Business regarding termination of the lease for the mini -library.
144
July 21, 1998
CONSENT CALENDAR
7. Second Reading of Ordinance No 119 1998 Appropriating Unanticipated Revenue and
Authorizing the Transfer of Appropriations Between the Storm Drainage Fund the General
Fund and the Flood Mitigation Fund.
The City has received approval from the State Office of Emergency Management for two
grants funded by FEMA's Hazard Mitigation Grant Program. The City plans to utilize these
funds for the implementation of a Flood Warning Program and a Floodproofing Program.
Although the City has a comprehensive stormwater management program, funds have not
been available for a Floodproofing Program. The purpose of the Program is to mitigate
repetitive losses from shallow flooding. The Program will utilize grants to encourage
construction of cost-effective floodproofing measures. Ordinance No. 119, 1998 was
unanimously adopted on First Reading on July 7, 1998.
8. Second Reading of Ordinance No. 120 1998 Appropriating Unanticipated Revenue in the
General Fund for the Police Services 1998 Drunk Driving Enforcement Program.
The Colorado Department of Transportation awarded the Larimer County Sheriffs
Department a 1998 grant in the amount of $227,018 to help reduce the number of drunk
drivers in Larimer County. As part of that grant, Fort Collins Police Services was listed as
a sub -grantee and was awarded $34,320 to reduce the number of drunk drivers in the City
of FortCollins. This Ordinance was unanimously adopted on First Reading on July 7, 1998.
9. Second Reading of Ordinance No. 121 1998 Amending the City Code to hicrease the
Library Capital Improvement Expansion Fee Consistent with the Current Level of Library
Services.
Ordinance No. 121, 1998 was unanimously adopted on First Reading on July 7, 1998 and
increases the fee schedule for the Library Capital Improvement Expansion Fee. The increase
brings the fee in line with the level of library services being provided since the opening of
the Harmony Library.
10. Second Reading of Ordinance No. 122 1998 Amending Chanter 25 of the City Code
Regarding Tax and Utility Rebates.
Ordinance No. 122, 1998, was unanimously adopted on First Reading on July 7, 1998 and
standardizes the Code language to provide annual updates in the income guidelines to
conform with the HUD's annual area median gross income limits for public housing. The
income limits for the City's rebate programs will be set at 30% of the median family income
145
July 21, 1998
(rounded to the nearest $250) and adjusted for the number of family members. Thirty
percent (30%) of median income is consistent with the past levels that have been in place
since the rebate programs began. The income limits for the Utility rebate program will be
automatically updated by reference to Section 25-29, which was amended by this Ordinance.
11. Second Reading of Ordinance No 123 1998 Authorizing Execution of an Amended and
Restated Organic Contract Establishing Platte River Power Authority as a Separate
Governmental Entity and an Amendment Extending the Term of the Contract for the Supply
of Electric Power and Energy Between Platte River Power Authority and the City of Fort
Collins.
The Organic Contract between PRPA and the member cities of Estes Park, Fort Collins,
Longmont and Loveland, was originally signed in 1975 and last amended in 1980. A change
to the Organic Contract requires the approval of all four City Councils. The Fort Collins City
Council voted unanimously on July 7, 1998, to adopt Ordinance No. 123, 1998 on First
Reading.
12. Second Reading of Ordinance No. 124 1998 Amend Ordinance No 170 1979 by the
Local Landmark Designation of the Certain Real Property Owned by Progressive Old Town
Square, LLC, and by 238 East Mountain LLC Located Within the Perimeter of the Old
Town Fort Collins Historic District, Fort Collins Colorado Pursuant to Chapter 14 of the
City Code.
Ordinance No.124,1998, which was unanimously adopted on First Reading on July 7,1998,
designates certain real property, owned by Progressive Old Town Square, LLC, and by 238
East Mountain, LLC, 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.
13. Second Reading of Ordinance No. 125, 1998, Designating the Mittrv-Young House 1601
Sheely Drive, Fort Collins. Colorado as a Historic Landmark Pursuant to Chapter 14 of the
City Code.
The owners of the property, Per and Veda Hogestad, are initiating this request for Local
Landmark designation for their residence. The house is significant for its architectural
importance, as an excellent example of Post World War H Contemporary design. Ordinance
No. 125, 1998, was unanimously adopted on First Reading on July 7, 1998 and designates
the property at 1601 Sheely Drive a Historic Landmark.
146
July 21, 1998
14. Second Reading of Ordinance No 126 1998 Designating the Kickland House and Garage
430 West Mountain Avenue, as a Local Landmark Pursuant to Chanter 14 of the City Code
Ordinance No. 126,1998, which was unanimously adopted on First Reading on July 7,1998,
designates James Kelly and Elizabeth Markey's property at 430 West Mountain Avenue as
a Local Landmark. The home is important as an excellent example of the Craftsman style
of architecture in Fort Collins, as well as for its historical association with early physician
Dr. William A. Kickland.
15. First Reading of Ordinance No. 127 1998 Appropriating Unanticipated Revenue and Prior
Year Reserves in the Water Fund for a Water Exhibits Grant
The City has received approval from the U.S. Bureau of Reclamation for a Water Exhibits
Grant to construct hands-on water exhibits for the Discovery Center Science Museum. The
Grant is in support of the Bureau of Reclamation's Water Conservation Program and the
Eastern Colorado Area Office's Field Service Plan in supporting water conservation in the
Eastern Colorado Area. The City Utilities will be developing an exhibit that will teach about
water in the Fort Collins Area and will help to educate people about the many facets of water.
The Utilities propose to design and construct an exhibit to be displayed in the Center
covering such topics as chemical and physical properties of water, the importance and many
uses of water, sources of water, and how our actions affect water quality. The goal of the
exhibit is to provide education about water and to promote water conservation. Although the
targeted audience will be youth, the exhibit will be designed to benefit all ages.
This Ordinance appropriates $10,000 of unanticipated federal funds and $10,000 of prior
year reserves from the Water Fund for City in -kind matching expenditures for the Water
Exhibits Grant.
16. Resolution 98-106 Adopting the Recommendations of the Cultural Resources Board
Regarding Fort Fund Disbursements.
The Cultural Resources Board is authorized bythe City Code to review proposals for funding
from the Cultural Programming Account and to submit recommendations to the City Council
regarding such proposals for approval. Revenues for tourist related special events are not in
the Cultural Programming Account because they are generated from the portion of the
lodging tax that is designated for the promotion of convention and visitor activities. These
funds are deposited in the Tourism Programming Account. Ordinance No. 74, 1997,
amended Section 2-203 of the City Code to authorize the Board to review proposals for
funding from the Tourism Programming Account, in addition to the Cultural Programming
Account, following the Fort Fund Guidelines applicable to each type of funding, and to
submit recommendations regarding the proposals to the Council for approval.
147
July 21, 1998
17. Resolution 98-107 Supporting the 1998 Colorado Su_ lus Investment Package Ballot
Measure Proposed by House Bill 98-1256
This Resolution expresses Council's support for House Bill 98-1256, a measure passed by
the State General Assembly this year, which refers to the voters a proposal to invest a portion
of the state's TABOR surplus revenues in transportation and education capital construction
needs.
18. Resolution 98-108 Finding Substantial Compliance and initiating Annexation Proceedings
for the Ruff Annexation.
The applicant, WoodCraft Homes, Inc., c/o Cityscape Urban Design, Inc, on behalf of the
property owners, Ron and Paula Ruff, has submitted a written petition requesting annexation
of 106.16 acres located on the west side of County Road 9, south of Harmony Road, north
of County Road 36, and east of Timberline Road. The property is currently functioning as
a homestead and farmland. The requested zoning for this annexation is LMN - Low Density
Mixed Use Neighborhood. The surrounding properties are zoned RL - Low Density
Residential (to the north), FAl- Farming (to the east, in Larimer County), RL - Low Density
Residential (to the west), and FAl - Farming (to the south, in Larimer County).
The proposed Resolution makes a finding that the petition substantially complies with the
Municipal Annexation Act, determines that a hearing date should be established regarding
the annexation, and directs that notice be given of the hearing. The hearing will be held at
the time of First Reading of the annexation and zoning ordinances. Not less than thirty days
of prior notice is required by State law.
19. Resolution 98-109 Making an Appointment to the Poudre School District/City/Larimer
County Liaison Committee.
At its May 6, 1997 meeting, Council adopted Resolution 97-65 making board and
commission liaison assignments and committee appointments. Resolution 97-65 provided
for the appointment of Councilmembers Chris Kneeland, Mike Byrne and Scott Mason to
the Poudre School District/City/Larimer County Liaison Committee.
Councilmember Scott Mason has requested that Council appoint another Councilmember to
serve on this Committee in his place. Mayor Pro Tern William P. Smith has expressed an
interest in replacing Councilmember Mason.
This Resolution approves the appointment of Mayor Pro Tern William P. Smith to replace
Councilmember Scott Mason to serve on the Poudre School District/City/Larimer County
Liaison Committee.
148
July 21, 1998
20. Resolution 98-110 Making Appointments to Various Boards and Commissions
Vacancies currently exist on various boards and commissions due to resignations of board
members and the expiration of terms of members of boards and commissions. Applications
were solicited during March and April. Council received copies of the applications and
Council teams interviewed applicants during May and June and July.
This Resolution makes 13 appointments to 8 boards and commissions. Names of those
individuals recommended for appointment by each Council interview team have been
inserted in the Resolution.
Interviews are being held July 23 for the Affordable Housing Board and the Community
Development Block Grant Commission and appointments are scheduled for the August 4
meeting for these boards. The August 4 appointments will complete the annual appointment
process.
21. Routine Easement.
A. Deed of Easement from Velda M. Acott, to underground existing overhead electric
services, located at 117 West Lake. Monetary consideration: $10.
Items on Second Reading were read by title by City Clerk Wanda Krajicek.
7. Second Reading of Ordinance No. 119 1998 Appropriating Unanticipated Revenue and
Authorizing the Transfer of Appropriations Between the Storm Drainage Fund the General
Fund and the Flood Mitigation Fund.
8. Second Reading of Ordinance No. 120 1998 Appropriating Unanticipated Revenue in the
General Fund for the Police Services 1998 Drunk Driving Enforcement Program
9. Second Reading of Ordinance No. 121 1998 Amending the City Code to Increase the
Library Capital Improvement Expansion Fee Consistent with the Current Level of Librarv_
Services.
10. Second Reading of Ordinance No. 122, 1998, Amending Chanter 25 of the City Code
Regarding Tax and Utility Rebates.
lul
July 21, 1998
11. Second Reading of Ordinance No. 123 1998 Authorizing Execution of an Amended and
Restated Organic Contract Establishing Platte River Power Authority as a Separate
Governmental Entity and an Amendment Extending the Term of the Contract for the Suply
of Electric Power and Energy Between Platte River Power Authority and the City of Fort
Collins.
12. Second Reading of Ordinance No. 124 1998 Amending Ordinance No 170 1979 by the
Local Landmark Designation of the Certain Real Property Owned by Progressive Old Town
Square. LLC, and by 238 East Mountain LLC Located Within the Perimeter of the Old
Town Fort Collins Historic District, Fort Collins Colorado Pursuant to Chanter 14 of the
City Code.
13. Second Reading of Ordinance No 125 1998 Designating the Mittry-Young House 1601
Sheely Drive, Fort Collins. Colorado as a Historic Landmark Pursuant to Chapter 14 of the
City Code.
14. Second Reading of Ordinance No. 126, 1998 Designating the Kickland House and Garage
430 West Mountain Avenue, as a Local Landmark Pursuant to Chapter 14 of the City Code
Items on First Reading were read by title by City Clerk Wanda Krajicek.
15. First Reading of Ordinance No. 127 1998 Appropriating Unanticipated Revenue and Prior
Year Reserves in the Water Fund for a Water Exhibits Grant
24. First Readine of Ordinance No. 128,1998 Approving and Authorizing the City to Enter into
Agreements in Connection with the Execution and Delivery of Lease Certificates of
Participation for the Civic Center Facilities Project
25. First Reading of Ordinance No 129 1998 Approving and Authorizing a Rebate of Certain
Development Impact Fees Associated with the Construction of a New 200.000 Square Foot
Office Facility for Celestica Colorado.
Councilmember Mason made a motion, seconded by Councilmember Bertschy, to adopt and
approved all items on the Consent Calendar. The vote on the motion was as follows: Yeas:
Councilmembers Azari, Bertschy, Byrne, Kneeland and Mason. Nays: None.
THE MOTION CARRIED.
Consent Calendar Follow-UR
Councilmember Byme spoke concerning agenda item #17 Resolution 98-107 Supporting the 1998
Colorado Surplus Investment Package Ballot Measure Proposed by House Bill 98-1256, which was
150
July 21, 1998
approved on the Consent Calendar. He stated that if the ballot measure is approved by the voters,
there will be an allocation of approximately $200 million per year for five years for transportation
(50%), K-12 education (30%), and higher education (20%). The estimated share to Fort Collins for
transportation uses would be about $560,000 per year. He urged voters to familiarize themselves
with the ballot measure.
Mayor Azari suggested adding an item to allow an opportunity for Consent Calendar Follow -Up on
each agenda. The consensus was in favor of making this addition to future agendas.
Staff Reports
Mike Smith, Utilities Director, reported on peak water use and peak electric use during the recent
heat wave and gave information concerning peak capacity. He noted that the wider use of air
conditioning has increased peak use of electricity and noted that new transformer standards have
been developed to respond to the greater demand. Unlike some of the state's private utilities, the
City Utility did not experience any brownouts or scheduled blackouts during the heat wave. He also
gave a status report on the undergrounding of utilities, which is at about 90% completion and which
will continue for about six more years.
City Manager Fischbach stated that highest ever peak for electric use occurred on July 20, 1998.
Additional power has been purchased from Salt River in case the heat wave continues and demand
exceeds available resources.
Councilmember Mason spoke concerning the benefits ofapublic power utility in supplying low cost,
reliable power, even under extreme use conditions.
Mayor Azari spoke in appreciation of the work that has been accomplished to underground utilities.
Councilmember Reports
Councilmember Mason reported on Finance Committee discussions concerning the total
compensation pay plan and hiring of an auditor.
In Councilmember Smith's absence, Transportation Services Director Ron Phillips reported that the
public hearing for the regional transportation plan will be held on the first Thursday in August at the
Loveland City Council Chambers, and final adoption of the plan is scheduled for the first meeting
in September.
Councilmember Mason reported on the Legislative Review Committee discussions concerning the
Internet Taxation Bill and an update on the camera radar suit.
("Secretary's Note: Councilmember Wanner arrived at 6:35 p.m.)
151
July 21, 1998
Items Relating to the Financing and Development
of the Civic Center Parking Structure and Office Building Adopted
The following is staff s memorandum on this item.
"Financial Impact
The City's annual payment on the certificates ofparticipation lease financing will be approximately
$1, 450, 000 per year. The Parking Structure will cost about $11.2 million. The Office Building will
cost about $11.9 million. Larimer County will cover its share of the Parking Structure from the
lease purchase financing that it has already completed, contributing $4, 344, 000 on a reimbursement
basis. The Downtown Development Authority willparticipate in the repayment ofthe leasepurchase
by contributing $300, 000 per year through 2006 from tax increment revenue, which is included in
the $1.45 million annual payment.
The City will pay its share of the Parking Structure and the Office Building from revenue earmarked
and set aside in the General Fund. Up to $300, 000 per year will be applied to the lease payments
on the Parking Structure and $941,000 per year for the Office Building. The City and DDA
payments over the life of the financing will total approximately $29 million.
Executive Summary
A. Resolution98-111 Approvingthe Conceptual Design ofthe Civic Center Parking Structure.
On June 17, 1997, City Council approved Resolution 97-91 authorizing an Intergovernmental
Agreement with Lorimer County and the Downtown Development Authority providing for the
construction of a 900-space parking structure on the west half of Block 21 in downtown Fort
Collins. The Agreement requires approval of the conceptual design by the County Commissioners,
the Board of Directors ofthe Downtown Development Authority, and the Fort Collins City Council.
The Civic Center Parking Structure will be developed as a 4 % level, 284, 798 square foot, 905 space
public parking structure. Built adjacent to the Structure will be 15,890 square feet of commercial
space at the street level along Mason Street. The Parking Structure will provide parkingfor monthly
and hourly parking customers as well as hourly parking for the general public. The structure is to
accommodate parking for the Justice Center, existing public entities, as well as commercial
establishments in the area.
Maintaining the masonry building tradition of Fort Collins, the design incorporates several urban
design elements such as: a recognizable base, appropriate scale, vertical window openings,
staggered cornices, etc. The commercial space will encourage pedestrian activity throughout the
block. The design will accommodate a restaurant or eatery, and several quality commercial
establishments. Pedestrian access to the Opera Galleria via an overhead bridge connection is being
evaluated, and has not been finalized. Upon completion, the Civic Center Parking Structure will
fill a functional parking need for the City as well as contribute to the rich urban heritage of Fort
Collins.
152
July 21, 1998
B. First Reading of Ordinance No. 128,1998,ApprovingandAuthorizingtheCitytoEnterinto
Agreements in Connection with the Execution and Delivery of Lease Certificates of
Participation for the Civic Center Facilities Project.
The Civic Center Facilities Project includes the Civic Center Parking Structure and the Office
Building proposed to be built on the southeast corner of Block 32. It is anticipated that the Office
Building will be a 69,100 square foot, four-story building. The facility will allow the City to bring
together numerous Cityfunctions currently housed in leased spaces throughout the downtown Fort
Collins area. This will provide for easier customer access and more efficient service delivery.
The facilities will be financed through the use of a non-profit corporation and Lease Purchase
Certificates of Participation. The Certificates or COPS will be paid through an annual
appropriation. This financing technique does not entail a multiple year fiscal obligation of the City
under ArticleX, Section 20, ofthe State Constitution, because the City's lease payments to the non-
profit corporation will be subject to annual appropriation. Nor, under state law, will the
Certificates of Participation constitute debt of the City. Therefore, the City is not required to obtain
voter approval in order to finance capital projects or equipment using lease purchase financing.
BACKGROUND:
Civic Center Once Building and Parking Structure Financing Plan
All of the figures in the table below are subject to change due to changes in market conditions and
ongoing negotiations.
Parking
Sources of Funds Structure
New Issue Certificates of Participation $ 6,840,000
County 4,344,000
Contribution
Interest On Proceeds During -
Construction
Accrued Interest 22,872
Capital Improvement Expansion Fees
Total $11,206,872
Uses of Funds
Construction Cost $9,601,000
Project Costs 280,000
Office
Building
Combined
Facility
Cost
$10,305,000 $17,145,000
4,344,000
1,256,143
34,378
270,000
$11, 865, 521
1,256,143
57,250
270,000
$23, 072,393
$8,397,450 $17,998,450
1,889,000 2,169, 000
Percent
of Total
Cost
74.3%
18.8%
5.4%
0.2%
1.2%
100.0%
78.0%
9.4%
153
Land 600,000
Contingency 400,000
Art in Public Places 111,800
Subtotal Project Costs $10,992,800
Financing Costs
Debt Service Reserve Fund Surety
14,004
Underwriters Cost
44,460
Original Issue Discount
44,877
Bond Insurance
33,325
Cost of Issuance
51,046
Accrued Interest
22,872
Contingency
3,48g
Subtotal Financing $214, 072
Total Project Costs $11.206.872
THE ENTITIES AND THEIR ROLES
July 21, 1998
500,000 1,100, 000 4.8%
645,600 1,045,600 4.5%
115,495 227,295 1.0%
$11,547,545 $22,540,345 97.7%
22,126
36,130
0.2%
66,983
111,443
0.5%
66,898
111,773
0.5%
50,000
83,325
0.4%
76,904
127,950
0.6%
34,378
57,250
0.2%
689
4.177
0.0%
$317.976
$532.048
2.3%
$11.865 521
$23.072.393
100.0%
The City will be the owner ofthe Parking Structure and the Office Building. The City has identified
funding sources from its general revenues to cover one-third of the lease payments on the Parking
Structure and 100% of the lease payments on the Office Building. The amount is expected to be
approximately $1.24 million per yearfor the period 1999 to 2006. After 2006 and through 2018 the
City will be responsible for one-half of the DDA share. This amount is projected to be covered by
the tax increment from the City mill levy which will flow directly to the City.
The DDA, willparticipateinthefnancingoftheParking Structure. The DDA'sTax lncrementDebt
Service Fund will provide up to $300, 000 per year from 1999 through 2006 toward the annual lease
purchase payments for the parking Structure.
The County has agreed to provide an up front cash contribution to be used to cover costs of the
construction of the Parking Structure. The County's share is equivalent to one-third of the lease
payments on the Parking Structure. The County's total also includes one-half of the DDA
contribution for the years 2007 through 2018.
The Fort Collins Capital Leasing Corporation is a non-profit corporation to which the City will
lease the facilities under a Site Agreement. Through a Lease Agreement the City will lease back
from the Corporation the site and improvements. Upon f nal payment in 2018, the City will own the
facilities free and clear of the Site Agreement, Lease Agreement and other financing documents.
154
July 21, 1998
The Bank of Cherry Creek was selected to serve as the trustee. The Trustee will be assigned all
rents the Corporation from the City and the trustee will make payments to the investors that
purchase the certificates of participation in the lease purchase transaction.
George K Baum & Company will serve as the lead investment banker to help facilitate the sale of
the certificates ofparticipation.
These relationships are graphically displayed in the Flow Chart attached to the Agenda Item
Summary.
Ordinance No. 128, 1998, provides the authorization for the City to enter into the agreements
required to cause the transaction to take place. The agreements include the Site Agreement, Lease
Agreement, a Certificate Purchase Agreement. Other documents covered in the Ordinance include
the Indenture, the Parking Structure License Agreement, the Leasehold Deed of Trust, and the
Preliminary Official Statement. Drafts of all of these documents have been fled with the City
Clerk. "
City Manager Fischbach stated that this item relates to the financing and development of the civic
center parking structure and the City's office building.
Frank Bruno, Assistant City Manager, gave background on the issue and noted that this is an
important step in the development of the civic center master plan.
Jack Gianola, Project Manager, introduced members of the design/build team and spoke concerning
the conceptual design for the project. Design is anticipated to be complete and construction is
scheduled to begin in November, and the scheduled completion date is August/September, 1999.
The conceptual plan has been presented to the County Commissioners and the Downtown
Development Authority. He presented the plans for temporary parking during the construction of
the project and spoke concerning the joint funding for the project.
Councilmember Byrne asked about the process for the selection of the design. Gianola stated that
an eight -member committee with representatives from the City, County and the DDA was involved
in making the selection.
Councilmember Kneeland noted that staff worked with Council in the preliminary design phase to
identify the community values to be incorporated in the plan.
Alan Krcmarik, Finance Director, presented an overview of Ordinance No. 128, 1998 and spoke
concerning the proposed project financing package. The Ordinance would approve a series of legal
documents that are on file with the City Clerk's Office. He stated that the City's bond rating has
been upgraded by Moody's from AA2 to AA1, representing the first significant upgrade the City has
received since 1954. This upgrade should contribute to a lower interest rate for the bond issue. He
spoke regarding Lease Purchase Certificates ofParticipation and stated that financing will be through
a three-way partnership among the City, County and DDA.
155
July 21, 1998
City Manager Fischbach spoke concerning the license agreement that will be entered into between
the City and County.
Councilmember Byrne asked about the office building design. City Manager Fischbach stated that
the community will be involved in the design process.
Councilmember Mason spoke concerning the criticisms about the design of the parking garage and
asked about opportunities to get public feedback on the office building. Gianola spoke concerning
the design criteria and the process that was followed.
Councilmember Byrne asked about contingency planning for the project and asked about the need
for an archaeological survey. Gianola stated that the site has been researched extensively and soils
work has been done. He noted that a 5-6% contingency fund is normal for a project of this
magnitude to cover any design changes or unforeseen site conditions. City Manager Fischbach noted
that the Landmark Preservation Commission has reviewed the site and determined that there are no
features of historical significance.
Councilmember Mason commented that one advantage of building this facility is to save money
currently spent on leasing office space, and requested an estimate of the cost savings prior to Second
Reading of the Ordinance. He stated that the Finance Committee discussed the RFP for the
design/build team.
Councilmember Bertschy asked about funding of operation and maintenance of the structure and
discussions concerning parking charges.
Susanne Edminster, Transportation Planning and Parking Manager, stated that the license agreement
discussions with the County include the number of parking permits to be issued.
Kelly Ohlson, 2040 Bennington Circle, expressed concerns regarding the design, the lack of public
process on this public project, and the signing of contracts prior to Council approval.
Tim Johnson, 1337 Stonehenge Drive, spoke concerning the cost of parking spaces over the life of
the project, setting parking rates high enough to offset recovering operation and maintenance costs,
and funding for the office building from the General Fund.
Arvid Bloom, 1905 Cottonwood Point, spoke regarding the original design of City Hall West to
allow additions to be built to the north and south.
Glenn Colton, Planning and Zoning Board member, commented on his concerns expressed during
the board's review of the parking garage project.
Councilmember Byrne asked that staff outline the process that was followed for public input.
Gianola stated that staff spoke with neighborhood groups in the downtown, and the conceptual
design was presented at an official public meeting. The project was also presented to the
156
July 21, 1998
Transportation Board, the Planning and Zoning Board, the Air Quality Board, the Downtown
Development Authority, and the Larimer County Board of Commissioners.
Councilmember Bertschy asked for clarification on the signing of the contract with Hensel -Phelps
and asked if there could be additional opportunities for public input on the design before the project
proceeds. Gianola stated that the design/construction agreement has been negotiated and signed
contingent on Council approval of the proposed package. City Manager Fischbach stated that
additional public input could be scheduled as the project moves ahead.
Mayor Azari suggested making the design available at the Library with a comment board.
Councilmember Kneeland commented that the design incorporates ideas from numerous earlier
discussions which defined the values the community wants in a civic structure downtown. She noted
that there have been a number of discussions about the options for expansion of office space.
City Manager Fischbach stated that one option considered was to expand City Hall West, and a
determination was made that it would be too expensive, would not take care of the City's needs, and
would require an additional parking structure on this block. Numerous sites were discussed with
Council.
Councilmember Mason asked about recovery of the parking structure operation and maintenance
costs. Edminster stated that because the usage rate is unknown and it is not known how much
income will be generated from hourly customers who will use the structure after 5:00 p.m., it is
difficult to predict whether or not revenue will match costs at this point. However, parking rates
could be adjusted periodically.
Councilmember Bertschy asked if departments are charged a prorata rent to offset operation and
maintenance costs. Bruno stated that departments pay a charge back.
Councilmember Wanner made a motion, seconded by Councilmember Bertschy, to adopt Resolution
98-111.
Councilmember Byrne spoke concerning the need for parking structures and the City's commitment
to the downtown.
Councilmember Wanner stated that there has been a reasonable public process on this project and
commented that parking garages are part of the basic infrastructure for the downtown.
Councilmember Mason supported inclusion of commercial uses in the project and spoke in support
of the design, which fits the downtown.
Councilmember Kneeland supported the project and spoke concerning the need for a parking garage
to keep the justice center in the downtown and the need for a new office building to replace scattered
offices.
157
July 21, 1998
Councilmember Bertschy spoke in support and commented that the project will become a focal point
for the future prosperity of the downtown.
Mayor Azari noted that this has been a lengthy process and is part of the ongoing discussion of the
downtown civic center master plan. She expressed appreciation to Debra Passariello for her work
on this issue.
The vote on Councilmember Warner's motion was as follows: Yeas: Councilmembers Azari,
Bertschy, Byrne, Kneeland, Mason and Wanner. Nays: None.
THE MOTION CARRIED.
Councilmember Wanner made amotion, seconded byCouncilmember Kneeland, to adopt Ordinance
No. 128, 1998 on First Reading.
Councilmember Byrne spoke concerning the complexity of the financing package.
Councilmember Mason stated that how office space is provided is a City management decision;
however, the citizens of Fort Collins would likely not list City office space as a high priority.
Mayor Azari stated that the upgraded bond rating is excellent news. She spoke concerning the
advantages of outright purchases of property and the need to centralize services for the benefit of the
public.
The vote on Councilmember Warner's motion was as follows: Yeas: Councilmembers Azari,
Bertschy, Byrne, Kneeland and Wanner. Nays: Councilmember Mason.
THE MOTION CARRIED.
City Manager Fischbach thanked the staff team that has worked on the project: Susanne Edminster,
Alan Krcmarik, Jack Gianola, Frank Bruno, Debra Passariello, and other staff members who have
been involved. He noted that this is the first step needed to cement the vitality of the downtown area.
158
July 21, 1998
Ordinance No. 129,1998
Approving and Authorizing a Rebate of Certain Impact
Fees Associated with the Construction of a New 200,000
Square Foot Office Facility for Celestica Colorado Adopted on First Reading,
The following is staff's memorandum on this item.
"Financial Impact
The impact fees associated with this project are approximately $956,400. Staff recommends a
rebate not to exceed $336, 000. If Council approves the rebate of impact fees associated with a new
manufacturing facility for Celestica, the amount of the recommended rebate is expected to be
received by the City in the first year in the form of the initial building permit use tax payment, and
use tax from equipment purchases.
Executive Summary
In August 1994, City Council adopted Ordinance No.123,1994 which amended Article VII Chapter
5 of the Code of the City of Fort Collins so as to permit the rebate of impact fees for the purpose of
economic development. Prior to the adoption of Ordinance No. 123, 1994, the Code had permitted
the waiver of fees on a case -by -case basis. The rebate modification was suggested by staff in order
to further protect the City by linking thepayment ofan incentive to the performance of the company
requesting the incentive.
On June 16, 1998, City Council adopted Ordinance No. 111, 1998 which suspended the Impact Fee
Rebate Program indefinitely with the exception of companies who had filed a letter of intent to
request a rebate. Celestica f led a letter of intent prior the adoption of Ordinance No. 111, 1998.
Celestica Background.
Celestica Colorado ("CC') is part of the family of companies of Celestica, Inc. of Toronto, Canada.
CC is an international company that provides Electronic Manufacturing Services (EMS), Memory
Solutions and Power Systems to high tech companies. The EMS industry is growing at an average
of 30%per year. CC is currently focused on Hewlett-Packard, Inc. (H-P) workstation and systems
product lines but could potentially have other major computer manufacturers as clients.
CC has been in existence since August 1997, and currently employs 477 full time employees a well
as 225 temporary workers. The company operates three shifts, seven days a week, and currently
shares space with H-P. Seven production lines are maintained along with support staffoffice areas.
The Celestica Project.
The Celestica project will be located on 32 acres on East Harmony Road (southeast corner of
Harmony and County Road 9). Total building cost for the project is estimated to be $23, 000, 000.
At this time, Celestica is somewhat unsure of the scope of this project's first phase. Under the most
159
July 21, 1998
conservative plan, Celestica would employ an additional 195 workers, under the mid -range plan
Celestica would add 375 workers and the most aggressive plan has them hiring an additional 720
employees. Production lines are anticipated to cost between $3 and $4 million per line. Celestica
expects to spend $9.2 million on capital equipment by the end of 1998. An additional $2 million will
be spent on office equipment, furnishings, etc.
Fiscal and Environmental Model Analysis. Attached are two tables with summary information
derived from the model. Dr. Harvey Cutler and Dr. Stephen Davies ran three different employment
scenarios through the model based on information provided by Celestica. A mid -range plan where
Celestica proposes an addition of 375 workers was used for the final analysis.
The model shows that City government revenues will exceed costs by about $3 million (present value
discounted at 5% over estimated 5 years). The model also estimates that the present value of
increased pollution costs associated with this project will be about $3 million. The model estimates
that congestion will also be affected to the extent of adding 6.0 hours of travel time per capita per
year. On the other hand, the model estimates that increases to capital (profits to firms throughout
the community) resulting from the Celestica project will total roughly $33 million annually.
It should be noted that while the model provides a great deal of analytical information, it is limited
in its ability to evaluate a wide variety of external impacts. While the model currently addresses air
quality and traffic congestion, it does not currently focus on loss of open space, wildlife habitat,
trails, orspecies diversity. At somepoint in the future, such variables may be added. Dr. Cutler will
be at the meeting to discuss the model's findings in further detail. Based on the model's results, staff
has formulated the following recommendation.
Recommendation:
Celestica will be paying the following fees:
Pees Amount
Building Permit •
$77, 871
Plan Check Fee*
37,494
Street Oversizing
178,119
Capital Expansion Fees:
General Government
9,100
Police Capital
5,600
Fire Capital
6,100
Storm Water Fee
89,157
Water Plant Investment Fee
223,000
Sewer Plant Investment Fee
185,000
Water Meter
1,758
160
Fees
Electric
(*) Denotes fees other than impact fees.
143,000
July 21, 1998
Of these fees, $641,915 are utility related and the remaining $314,485 are general government
revenues. The building permit and plan check fees are not eligible for rebate, because they are
processing fees rather than impact fees. This leaves $841, 034 of fees eligible for rebate. If the
entire amount offees eligible for rebate were, in fact, rebated to Celestica, staff believes that the
rebate would have too great an impact on City finances, because all fees have to be paid from the
General Fund and, as indicated above, some of the health and safety impacts of the project will be
substantial.
Celestica is clearly eligible for a full rebate based on the parameters of the existing Rebate
Program. As the program currently exists, revenues must exceed twice the estimated street costs by
at least a 2 to 1 margin over 20 years. However, given the additional findings of the Fiscal and
Environmental Impact Model, staff recommends a reduced rebate consisting of only 40% of the fees
eligible for rebate, not exceed $336, 000.
Structuring the rebate in this mannerplaces a value on base industry as was intended in the existing
Impact Fee Rebate Program, while still recognizing that the bulk of the fees paid need to remain
available to be expended for the purposes for which they were collected.
Staff also proposes that no rebate be given until such time that the tax revenues received from this
project surpass the fee rebate granted.
It should be noted that Celestica has indicated that some portion of a rebate will be committed to
address the critical need for affordable housing. Some portion may also be designated to help
promote training and education through Front Range Community College, and the development of
a day care facility in southeast Fort Collins."
Frank Bruno, Assistant City Manager, spoke concerning the history and rationale of the rebate
program. In the case of Celestica, staff is recommending a rebate of $336,000 which represents
approximately 40% of the total eligible fees. He spoke concerning the use of the fiscal and
environmental impact model to track the relative impacts throughout the local economy of the
introduction of the Celestica facility. Staff has concluded that there are significant external impacts
associated with the plant, leading to the recommendation for a reduced rebate.
Dr. Harvey Cutler, Colorado State University, spoke concerning how the fiscal and environmental
impact model relates to the project and explained how the model was used to track economic impacts
of the Celestica project.
161
July 21, 1998
Councilmember Kneeland asked about using the model for existing companies and commented that
some segments of the community are not taken into account in the model. Bruno stated that the
model has not yet been used to take a look at existing companies, and the model does not provide
a total evaluation of projects.
Councilmember Byrne asked how long the rebate program has been in existence and what
expectations have been set for the next three rebate reviews as far as how the current policy applies.
Bruno noted that a waiver program was instituted in 1990 and was changed to a rebate program in
1994. The expectation is that staff will use the model to help analyze the impact of the projects
throughout the economy.
Councilmember Mason asked when the last rebate request was reviewed. Bruno stated that Hewlett-
Packard went through the process in 1996.
Mayor Azari asked about the rebate application criteria and spoke concerning the improvements to
the process resulting from using the model. Bruno stated that base industries that import income and
export products and services can apply, and items such as environmental policies and return on
investment have been evaluated.
Councilmember Byrne made a motion, seconded by Councilmember Wanner, to adopt Ordinance
No. 129, 1998 on First Reading.
Linda Stanley, 2040 Bennington Circle, opposed the rebate to Celestica and economic subsidies of
growth in general.
Tim Johnson, 1337 Stonehenge Drive, spoke in opposition to the subsidy and noted that the model
does not account for capital expansion fees.
Alan Apt, 1406 Freedom Lane, spoke in opposition to the Celestica rebate.
Mike Kelly, Communications Manager for Celestica, emphasized the importance of the rebate for
the company and spoke concerning contributions of the company to the community.
Arvid Bloom, 1905 Cottonwood Point, encouraged making a decision on Celestica consistent with
past decisions for other manufacturers.
Ralph Waldo, Chair -Elect of the Fort Collins Economic Development Corporation, supported the
rebate and noted the importance of jobs to the community.
Karen Girard, Executive Director of Funding Partners for Housing Solutions, spoke in support of
the rebate.
Glenn Colton, Planning and Zoning Board member, opposed any impact fee rebates in the interest
of fairness to the citizens.
162
July 21, 1998
JoAnn Monith, vice -chair of LLAC with the Fort Collins Chamber of Commerce and small business
owner, supported the rebate and urged awarding a 100% rebate.
Mike Maney, 2824 Teal Eye Court, opposed the rebate and urged spending tax dollars for
infrastructure improvements.
Sally Craig, Planning and Zoning Board member, opposed the rebate to Celestica and noted the
funding gap for streets and other services.
Sam Lein, President of Colorado Lein Company and representing the Fort Collins Area Chamber
of Commerce, supported the rebate to protect the economic health of the community.
Roland Mower, President Fort Collins Economic Development Corporation, supported the rebate
and noted the importance of Celestica for career employment opportunities in the community.
Nancy York, 130 South Whitcomb, opposed the rebate.
Kelly Ohlson, 2040 Bennington Circle, expressed concerns regarding the rate of population growth
and opposed the rebate to Celestica.
Maureen Kerrigan, Celestica employee, urged a full rebate and spoke concerning the importance of
the rebate dollars to Celestica and the contributions of the company to the community.
Councilmember Mason asked if the rules changed midstream during the application process. Bruno
stated that it was made clear through the process that the City would be using the model.
Mayor Azari noted that the agenda material indicates that Celestica is clearly eligible for a full rebate
and this appears to be a discrepancy given the impacts identified through the use of the model. She
asked how the City utilities make up the difference in plant investment fees should the rebate be
granted. Bruno stated that eligibility relates to the policy, not to the evaluation. He noted that the
company pays all fees up front, and fees are then rebated back to the company using General Fund
tax revenues.
City Manager Fischbach stated that the City Code sets out six criteria to be considered in making a
final determination concerning a rebate, and Celestica is clearly eligible for a rebate based on these
criteria.
Councilmember Bertschy asked about the time frame for the rebate given the tax revenue. Bruno
stated that a typical time frame is the first or second year.
Councilmember Kneeland asked if the model takes into account what a company pays in
manufacturing use tax. Dr. Cutler stated that figure was calculated for Celestica.
163
July 21, 1998
Councilmember Mason asked if there is an estimate concerning how many service and lower paid
jobs are created as a result of a high paid job. Dr. Cutler stated that the multiplier is about 3.5.
Councilmember Kneeland stated she would support the motion and noted the importance of jobs
provided by base industry. She commented that the City is in a transition period which demands
that we explore policies that make sense for supporting the broad spectrum of community values.
The model is a good tool that provides new information about companies; however, it does not yet
answer all questions. She suggested calibrating the model using existing companies.
Councilmember Mason commended Celestica for providing jobs in the community but spoke about
problems with the policy. He stated that no promise was made at any time during the process for a
100% rebate to Celestica and spoke in opposition to giving a rebate.
Councilmember Bertschy stated the $336,000 rebate is an investment in the community and in a
company that will give a return on the investment.
Councilmember Byrne spoke concerning the need to focus on issues which the City can influence.
He stated that the staff recommendation regarding this rebate is a fair judgement given all the factors.
Mayor Azari stated that the issue before the Council is grounded on current rather than future policy.
She commented that the rebate is a subsidy coming from the General Fund. Celestica does meet the
criteria to apply for a rebate, and no rebate is ever guaranteed. She stated that the decision needs to
be based on the best information available.
The vote on Councilmember Byrne's motion was as follows: Yeas: Councilmembers Azari,
Bertschy, Byrne, Kneeland and Wanner. Nays: Councilmember Mason.
THE MOTION CARRIED.
[rev
July 21, 1998
Resolution 98-112
Expressing the Council's Support for the U.S. Fish
and Wildlife Service's Efforts to Relocate the
National Black -Footed Ferret Conservation Center to a
Site on the City's Meadow Springs Ranch Adopted
The following is staff s memorandum on this item.
"Executive Summary
A few months ago the City was contacted by the U.S. Fish and Wildlife Service (USFWS) regarding
its efforts to relocate the National Black -Footed Ferret Conservation Center to northern Colorado.
Subsequent discussions with USFWS representatives has resulted in the potential of the
Conservation Center being located on the City -owned Meadow Springs Ranch. This location could
meet all the needs of a new Conservation Center which would be very beneficial to the ferret
recovery program. Locating the Conservation Center on the Ranch could also benefit the citizens
of Fort Collins. It is anticipated that the USFWS will need less than 35 acres (more likely about 20
acres) for the new Black footed Ferret Conservation Center.
The purpose of this Resolution is to formalize the City's support for the relocation of the National
Black footed Ferret Conservation Center to a site on the Meadow Springs Ranch. This formal
acknowledgment ofsupport will be very helpful to the USFWS's efforts to secure additional federal
funding and proceed with the project.
The project was discussed with the Natural Resources Advisory Board at its June 3 meeting. The
Board was very supportive of the potential relocation of the National Black footed Ferret
Conservation Center to a site on the Meadow Springs Ranch."
Mike Smith, Utilities Director, gave a briefpresentation on the possible move ofthe National Black -
footed Ferret Conservation Center. The Resolution would express support for the relocation to a site
on the Meadow Springs Ranch.
Councilmember Bertschy spoke concerning the benefits of locating the ferret center to this area.
Councilmember Bertschymade a motion, seconded by Councilmember Mason, to adopt Resolution
98-112.
Tim Johnson, 1337 Stonehenge Drive, supported the Resolution.
Mike Lockhart, U.S. Fish and Wildlife Service, spoke in support of the relocation of the facility and
explained the objectives of the ferret project.
Mayor Azari spoke in support of locating the facility at Meadow Springs.
165
July 21, 1998
The vote on Councilmember Bertschy's motion was as follows: Yeas: Councilmembers Azari,
Bertschy, Byrne, Kneeland, Mason and Wanner. Nays: None.
THE MOTION CARRIED.
Other Business
Ordinance No. 130,1998
Authorizing the Termination of the City's Lease
for the Mini Library at 132 Troutman Parkway Adopted on First Reading
The following is staff s memorandum on this item.
"Financial Impact
Termination of the City's lease of the property will save the City $95, 000 in rent and maintenance
expenses over the remainder of the term of the lease.
Executive Summary
In January of 1995, the City entered into a five year lease of the property at 132 Troutman Parkway
in order to establish a library in the south part offort Collins. The mini library was very successful
in this space, but the books, furniture, equipment, and staff from the mini library moved to the
Harmony Library upon its opening in late January. Staffbegan seeking a tenantfor the mini library
space in the fall of 1997, and sought Council approval for the sub -lease of the premises to the
Salvation Army in early April of this year. Subsequent to Council approval of this sub -lease, the
local chapter ofthe Salvation Army was informed that funding from its parent organization would
not be available to help them with the lease payments. Consequently, the sublease with the Salvation
Army was never concluded.
Since that time, staff has continued to seek tenants for the space and Larimer County has determined
the space is very suitable for its youth assessment center. The County has entered into anew lease
agreement with the owner of the premises and desires to begin using the space immediately. The
owner and the City therefore wish to terminate the City's lease ofthe property. This termination will
relieve the City of all further obligations with regard to this property. Because the City no longer
has a need to utilize the property, it is in the City's best interest to terminate the lease obligation
immediately.
By adopting this Ordinance, Council would authorize the City Manager to execute the termination
agreement and any other necessary documents to cause termination of the lease. "
City Manager Fischbach read Ordinance No. 130, 1998 into the record.
166
July 21, 1998
Councilmember Mason made a motion, seconded by Councilmember Kneeland, to adopt
Ordinance No. 130, 1998 on First Reading. The vote on the motion was as follows: Yeas:
Councilmembers Azari, Bertschy, Byrne, Kneeland, Mason and Wanner. Nays: None.
THE MOTION CARRIED.
Other Business
Councilmember Byrne stated the number one complaint heard at neighborhood meetings concerns
the safety of children on the way to school, and changes have been made to the state law that provide
for higher fines for traffic violations in school or construction zones.
Councilmember Byrne made a motion, seconded by Councilmember Kneeland, to recommend to
the Municipal Judge that fines for moving violations in school zones and construction areas be
increased, and that such fines generally be twice the amount imposed for similar violations in other
areas, and further that City staff work to develop appropriate signage to be posted in school zones
and construction areas indicating the higher fines, and that a public awareness campaign be
developed to announce this change in policy to the public. The vote on the motion was as follows:
Yeas: Councilmembers Azari, Bertschy, Byrne, Kneeland, Mason and Wanner. Nays: None.
THE MOTION CARRIED.
Councilmember Bertschy requested a two -page memo concerning the distinction between natural
areas and parks.
The meeting adjourned at 10:15 p.m.
ATTEST:
W 'a
City Clerk
Adiournment
167