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HomeMy WebLinkAboutMINUTES-05/17/2005-RegularMay 17, 2005 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, May 17, 2005, 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: Hutchinson, Kastein, Manvel, Ohlson, Roy, and Weitkunat. Councilmembers Absent: Brown Staff Members Present: Atteberry, Krajicek, Roy. Citizen Participation Steve Musiel, Kel-Mar strip business owner at 5848 South College Avenue, opposed the southwest enclave annexation. Courtney Speshky, incoming ASCSU Director of Community Affairs, thanked the Mayor for attending the community picnic on May 7. She stated she was looking forward to continuing the dialogue with the City on issues such as the "three unrelated" ordinance. Brian Chaco, Colorado Lifestyle Furniture owner, opposed the southwest enclave annexation and stated the businesses in the area were in opposition to the annexation due to increased fees and utility costs. Greg Ost, small business owner in the Kel-Mar business district, stated affected residents and business owners in the proposed southwest enclave annexation were concerned about the purpose, process and likely outcomes. Tony Mann, 5201 Greenview Drive, small business owner, spoke against the southwest enclave annexation. Lynn Colter, Applewood Estates resident, opposed the proposed southwest enclave annexation and the costs to the residents and the City. She noted that thousands of signatures had been gathered on petitions opposing the annexation. Brian Schumm, 5948 Colby Street, spoke in favor of the annexation of the Kel-Mar strip and stated the businesses in that area were currently benefitting from City services. He noted that he had attempted to work through a number of issues with the City and the County for the last few years. He stated the City had "control" in the enclave due to the Growth Management Area, the intergovernmental agreement with the County, and previous Council direction regarding land use within that zone. He asked that the Council direct the City Manager and staff to follow the Structure :: May 17, 2005 Plan and to process rezonings within the City rather than allow them to be processed by the County within the Growth Management Area. Neil Hurst, President of the Fossil Creek Homeowners Association, stated he represented 240 residents and opposed the southwest enclave annexation. He stated there should be a public vote on the annexation, which would represent "taxation without representation." Charlene Hayes, Sidekick Flea Market owner, opposed the southwest enclave annexation. John Cockson, 5108 Plateau Court, spoke against the southwest enclave annexation and stated the annexation would be costly to the residents of the annexation area and the City. Al Baccili, 520 Galaxy Court, opposed the costly southwest enclave annexation. Mark Brophy, 1109 West Harmony Road, spoke against the "tyrannical" forced southwest enclave annexation. He urged Councilmembers to indicate their views during Citizen Participation Follow- up about the comments made during Citizen Participation. Lee Fairman, 5823 Auburn Drive, spoke regarding the purchase of the Abraxis Building for $750,000. Mayor Hutchinson stated this was an agenda item and that there would be an opportunity for Citizen Participation at that time if the item was withdrawn from the Consent Calendar. Gail Zirtzlaff, 2048 Manchester Drive, expressed concerns regarding enforcement of the "three unrelated" ordinance. Citizen Participation Follow-up Mayor Hutchinson thanked those who spoke during Citizen Participation. He stated Citizen Participation Follow-up was an opportunity for Council to give feedback rather than to debate the issues in a town meeting format. Councilmember Ohlson commented that the open space in the southwest part of the City was not purchased with the intent of creating an annexation enclave. He stated those open space purchases were based on plans and five overwhelming citizen votes. He stated the enclave was created upon the annexation of those open spaces and that he did not believe that the annexation of the open space was necessary or appropriate. Councilmember Kastein agreed with Councilmember Ohlson's comments about the purchase of the open space and that he believed that it was appropriate for the City to annex that open space because it was City -owned property. He stated he was now evaluating the need to annex the southwest enclave annexation area. He thanked the speaker who spoke about the "three unrelated" ordinance. 0 May 17, 2005 Agenda Review City Manager Atteberry stated there was a revision to item #20 Resolution 2005-054 Making an Appointment to the Downtown Development Authority to insert the name "George Brelig" and that there was a revision to item #21 Resolution 2005-045 Making an Appointment to the Fort Collins Housing Authority Board of Commissioners to insert the name "Karen Weitkunat." Mark Brophy, 1109 West Harmony Road, withdrew item #8 Items Relating to the Purchase and Lease of Property Located as 212 LaPorte Avenue from the Consent Calendar. Bev Weiss withdrew item #14 First Reading of Ordinance No. 057, 2005, Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands Necessaryfor the Construction of Public Improvements in Connection with the Dry CreekDrainage Improvements Project - East Vine Diversion Channel from the Consent Calendar. Councilmember Roy withdrew item #15 First Reading of Ordinance No. 058, 2005, Authorizing an Easement for a Pedestrian Bridge for Opera Gardens Lofts from the Consent Calendar. CONSENT CALENDAR 6. Consideration and approval of the regular Council meeting minutes of April 19, 2005 and the adiourned Council meeting minutes of April 26, 2005. 7. Second Reading of Ordinance No. 049, 2005, Appropriating Unanticipated Revenue in the General Fund to the Fort Collins Housing Authority to Fund Affordable Housing and Related Activities. The Fort Collins Housing Authority ("Authority") paid the City of Fort Collins $12,033 as a 2004 payment for public services and facilities. The Authority annually requests that the City refund the Payment in Lieu of Taxes (PILOT) to fund sorely needed affordable housing related activities and to attend to the low-income housing needs of Fort Collins residents. Resolution 1992-093 reinstated the requirement that the Authority make annual PILOT payments to the City. The City may spend the PILOT revenues as it deems appropriate in accordance with law, including remitting the funds to the Authority if the Council determines that such remittal serves a valid public purpose. The Council has remitted the PILOT payment to the Authority annually since 1992. Ordinance No. 049, 2005, was unanimously adopted on First Reading on May 3, 2005. 8. Items Relating to the Purchase and Lease of Property Located as 212 LaPorte Avenue. A. Second Reading of Ordinance No. 050, 2005, Appropriating Unanticipated Revenue in the Capital Projects Fund - Building Community Choices - New Main Library / Acquisition and Design Capital Project and Authorizing the Transfer Between Funds of Existing Revenue to be used to Purchase Property Located at 212 LaPorte Avenue. .M May 17, 2005 B. Resolution 2005-049 Authorizing the City Manager to Execute a Lease Agreement for 212 Laporte Avenue, Fort Collins, Colorado to Abraxis Art Glass & Doors, Inc. The City of Fort Collins developed the Downtown Civic Center Master Plan in 1996. At that time, the Plan called for Block 32 to have municipal government offices and a library. The Plan includes a pedestrian corridor through the middle of the block. The City has purchased most of the Block, but there are currently two properties still under individual ownership. The City constructed its new office building on the east half of Block 32 and the Plan contemplates the construction of the new Library on the westerly side of Block 32. This Library is part of the Building Community Choices. The owner of 212 West LaPorte Avenue is moving his business and has approached the City to purchase the property. This is a good opportunity to purchase this site for the City's future use on the Block. With this property, the City will own the entire Block except for the southwesterly corner. Buying today with a willing seller will save the City money in the future and, until the Block is developed, the City will rent the property to generate income. 9. Second Reading of Ordinance No. 051, 2005, Amending Section 2380) of the Fort Collins Traffic Code Pertaining to License Plates. At the time of the adoption of the Traffic Code, it was the understanding of staff and Council that the Traffic Code would most likely be subject to future amendments, not only for the purpose of clarification and correction of errors, but also for the purpose of ensuring that the Traffic .Code remains consistent with State traffic laws. This amendment will require motorcycles, trailers, and other vehicles to attach license plates to the rear of the vehicle. This change is necessary for the section to be consistent with state law. Staff will submit the changes to Colorado Department of Transportation (CDOT) for approval pursuant to statute. As this amendment is made to conform to state law, it is anticipated that CDOT will approve the amendment. Ordinance No. 051, 2005, was unanimously adopted on First Reading on May 3, 2005. 10. First Reading ofOrdinance No. 053, 2005, Appropriating Prior Year Reserves in the General Fund for Cultural Development and Programming Activities and Tourism Capital. This Ordinance appropriates lodging tax revenues that were in excess of 2004 budgeted lodging tax receipts to Cultural Development and Programming ("CDP"), Visitor Events, and Tourism Capital fiend accounts. Lodging tax revenue for 2004 was estimated to be $573,600 and the 2005 budget appropriated an equal amount. However, actual receipts totaled $601,143 for 2004 and the difference of $27,543 has not been appropriated. This Ordinance also appropriates the CDP and Visitor Events funds in the General Fund reserves for lodging taxes to be used to support events that provide a public benefit to the 91 May 17, 2005 Fort Collins Community and promote the utilization of public accommodations within the city. The City's Cultural Resources Board reviews applications for these funds and makes recommendations to the City Council. 11. First Reading of Ordinance No. 054, 2005, Authorizing the Transfer of Appropriations from the Street Oversizing Fund to the Capital Project Fund - Timberline Road Improvements Project to Be Used for Completion of Engineering Design and Establishing Appropriations for Railroad Crossing Improvements at the Proiect. Developers have contributed $100,000 to the City to begin the engineering design of Timberline Road from Prospect to Drake. There are additional engineering design costs with the project to be funded by Street Oversizing. This item appropriates $184,000 into the project budget for the completion of the final engineering design. In addition, railroad crossing permits with Great Western Railroad for widening the track on both Timberline Road and Prospect Road need to be submitted one year in advance of the construction in order to schedule the railroad crews. The permit requires that funds for the crossing material and labor be budgeted and available in the project. $280,000 will be appropriated and earmarked for the railroad crossing agreement in order to submit the required permits and work orders. The total transfer amount is $464,000 and is available in existing Street Oversizing Fund appropriations. 12. First Reading of Ordinance No. 055, 2005, Authorizing the Purchasing Agent to Enter into an Agreement for the Financing by Lease -Purchase of Vehicles and Equipment. This Ordinance authorizes the Purchasing Agent to enter into a lease -purchase financing agreement with Koch Financial Corporation at 4.96 percent interest rate. The agreement is for an original term from the execution date of the agreement to the end of the current fiscal year. The agreement provides for renewable one-year terms thereafter, to a total term of five (5) years, subject to annual appropriation of funds needed for lease payments. The total lease terms, including the original and all renewal terms, will not exceed the useful life of the property. This lease -purchase financing is consistent with the financial policies of the City of Fort Collins. All equipment shall be purchased following the City's purchasing ordinances and procedures to ensure that the City realizes all cost savings. The vehicles and equipment financed under the agreement will comply with applicable City policies, and will be in accordance with the goal of optimizing City resources without impacting service to the community. 13. First Reading of Ordinance No. 056, 2005, Amending the Zoning Man of the City of Fort Collins by Changing the Zoning Classification for that Certain Property Known as the Schrader Rezoning. This is a request to rezone a parcel owned by Schrader Oil Company and the abutting Burlington Northern Santa Fe right-of-way, presently zoned T (Transition), to RDR (River 92 May 17, 2005 Downtown Redevelopment). The subject site consists of 5 f acres located south of Willow Street and east of College Avenue. 14. First Reading of Ordinance No. 057, 2005, Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands Necessary for the Construction of Public Improvements in Connection with the Dry Creek Drainage Improvements Project - East Vine Diversion Channel. The design portion of the Dry Creek Drainage Improvements Project ("Project") began in 2003. The construction of the Project began in April 2005 with completion scheduled for 2006. The total project involves a combination of sub -projects in the upper, middle and lower basins of Dry Creek with the goal of reducing the likelihood of flooding in Fort Collins and Larimer County. The approval of this ordinance does not automatically result in the filing of a petition in eminent domain; it simply allows staff to use the process if good faith negotiations fail to result in an agreement between the City and affected property owners. Staff is hopeful that all acquisitions will be accomplished by agreement. 15. First Reading of Ordinance No. 058, 2005, Authorizing an Easement for a Pedestrian Bridge for Opera Gardens Lofts. The development of Opera Garden Lofts was approved as a minor amendment to the Opera Galleria, contingent upon the developer being able to provide off-street parking to the users of the new mixed -use building and also contingent upon negotiating permission from the City for a bridge between the Opera Galleria and the Civic Center Parking Structure ("CCPS"). The developer cannot commence construction until this easement is granted. The developer has indicated that this bridge is important to make the Opera Garden Lofts project more attractive to lenders and potential purchasers of units. The Opera Gardens Lofts project will add two floors to the Opera Galleria. The easement request is to construct an above -grade pedestrian bridge from the 4th floor of the CCPS to one of the new floors of the Opera Galleria. This pedestrian bridge will not replace the existing bridge, which is a public bridge. The new bridge will be a private bridge to be used by users of the mixed -use structure. 16. Resolution 2005-050 Authorizing a Revocable Permit to Coburn Development, Inc., for a Period of Up to Two Years on Property Owned by the City for the Purpose of Access and Performing Due Diligence Activities. The City of Fort Collins conducted a Request for Proposal ("RFP") process that requested proposals for the development of a portion of Block 33 in accordance with adopted City plans. The property included in this RFP was 75% of the block, excluding the Car Barn and associated parking. Through this process, the City selected Coburn's firm to complete the requested work in the RFP. At that time, the City and Coburn entered into an Exclusive 93 May 17, 2005 Negotiating Agreement. The goal for this project is for Coburn to eventually acquire the property from the City and develop it in accordance with the approved plans. Coburn has done a preliminary design for the property and is proceeding into conceptual review. In order for Coburn to continue its work, the firm needs to have permission from the City to access the property and to perform due diligence work on the property including surveying and geotechnical drilling. They will also need on -going access to the site as the project develops. Issuing this Permit allows Coburn to continue the work as required by the Exclusive Negotiating Agreement for the property on Block 33. This Permit is not intended to include construction activities. 17. Resolution 2005-051 Authorizing the City to Enter into a Contract with Public Strategies Group. Inc., for the Purchase of Services to Develop the 2006 and 2007 Budget Using the Budgeting for Outcomes Format, as an Exception to the Competitive Process. Public Strategies Group, Inc., has developed a unique process for budgeting — Budgetingfor Outcomes. Because the City is facing a structural change in its revenues, this approach is being used to match citizen expectations with available resources. 18. Resolution 2005-052 Adopting the Recommendations of the Cultural Resources Board Reearding Fort Fund Disbursements. The guidelines for the Cultural Development and Programming and Tourism Programming accounts (Fort Fund) provide a three -tiered funding system. Organizations may apply for grants from these accounts to fund community events. Tier # 1 was established as an annual programming fund for organizations whose primary purpose is to present three or more public events annually. These groups may apply for funding from Tier # 1 each April. Tier #2 allows organizations that are not eligible for Tier #1 support to apply for funding of events that are not fund-raising in nature and do not generate more than $5,000 in proceeds after expenses. Tier #3 allows organizations that are not eligible for Tier # 1 support to apply for funding of events that generate more than $5,000 in proceeds after expenses and are fund-raising in nature. Applications for support from Tier #2 and Tier #3 are accepted each January and June. 19. Resolution 2005-053 Authorizing the City Manager to Enter into an Intergovernmental Agreement with the Board of The Great Outdoors Colorado Trust Fund and an Intergovernmental Agreement With Three Partner Entities for the Laramie Foothills: Mountains to Plains Grant Proiect. On December 1, 2004, Great Outdoors Colorado (GOCO) awarded the City, Larimer County, Legacy Land Trust, and The Nature Conservancy an $11.6 million grant for the Laramie Foothills Mountains -to -Plains Project. A portion of this grant in the amount of $976,000 will be allocated directly to the City of Fort Collins to help support the project. A Grant Agreement between the partner entities is required to set out the respective obligations of the parties and to enable the City to receive the grant award. A Project 99 May 17, 2005 Agreement also is necessary to designate a "grant agent" for the local partners. Larimer County will serve as the grant agent. 20. Resolution 2005-054 Makin an n Appointment to the Downtown Development Authority. A vacancy currently exists on the Downtown Development Authority due to the resignation of Mary Brayton. Resolution 2005-054 making an appointment to the Downtown Development Authority has been prepared to insert a name for the Council appointment to replace Mary Brayton. 21. Resolution 2005-045 Making an Appointment to the Fort Collins Housing Authority Board of Commissioners. A vacancy currently exists on the Housing Authority due to the resignation of Marty Tharp. Resolution 2005-045 making an appointment to the Housing Authority has been prepared to insert a name for the Council appointment to replace Marty Tharp. 22. Routine Easements. A. Easement for construction and maintenance of public utilities from Archer Homes, Inc., to relocate existing electric system to accommodate additional units, located at 400 Jackson. Monetary consideration: $10. B. Easement for construction and maintenance of public utilities from Pheasant Run Investments, to place existing overhead electric system underground at 1229 East Mulberry. Monetary consideration: $360. C. Easement for construction and maintenance of public utilities from Jeffrey Jay and Carol Shuster Johnson, located at 132 Yale to install electric oval vault to place existing overhead electric system underground. Monetary consideration: $200. D. Easement for construction and maintenance of public utilities from South Link Lane Condominium Association, located at 401 Link Lane to place existing overhead electric system underground. Monetary consideration: $1920. ***END CONSENT*** Ordinances on Second Reading were read by title by City Clerk Krajicek. Second Reading of Ordinance No. 049, 2005, Appropriating Unanticipated Revenue in the General Fund to the Fort Collins Housing Authority to Fund Affordable Housing and Related Activities. 8A. Second Reading of Ordinance No. 050, 2005, Appropriating Unanticipated Revenue in the Capital Projects Fund - Building Community Choices - New Main Library / Acquisition and 51 May 17, 2005 Design Capital Project and Authorizing the Transfer Between Funds of Existing Revenue to be used to Purchase Property Located at 212 LaPorte Avenue. 9. Second Reading of Ordinance No. 051, 2005, Amending Section 238(1) of the Fort Collins Traffic Code Pertaining to License Plates. Ordinances on First Reading were read by title by City Clerk Krajicek. 10. First Reading of Ordinance No. 053, 2005, Appropriating Prior Year Reserves in the General Fund for Cultural Development and Programming Activities and Tourism Capital. 11. First Reading of Ordinance No. 054, 2005, Authorizing the Transfer of Appropriations from the Street Oversizing Fund to the Capital Project Fund - Timberline Road Improvements Project to Be Used for Completion of Engineering Design and Establishing Appropriations for Railroad Crossing Improvements at the Project. 12. First Reading of Ordinance No. 055, 2005, Authorizing the Purchasing Agent to Enter into an Agreement for the Financing by Lease -Purchase of Vehicles and Equipment. 13. First Reading of Ordinance No. 056, 2005, Amending the Zoning Map of the City of Fort Collins by Changing the Zoning Classification for that Certain Property Known as the Schrader Rezoning. 14. First Reading of Ordinance No. 057, 2005, Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands Necessary for the Construction of Public Improvements in Connection with the Dry Creek Drainage Improvements Project - East Vine Diversion Channel. 15. First Reading of Ordinance No. 058, 2005, Authorizing an Easement for a Pedestrian Bridge for Opera Gardens Lofts. 26C. First Reading of Ordinance No. 059, 2005, Appropriating Unanticipated Revenue and Authorizing the Transfer of Appropriations Between Program Years in the Community Development Block Grant Fund. 26D. First Reading of Ordinance No. 060, 2005, Appropriating Unanticipated Revenue in the HOME Investment Partnerships Fund. Councilmember Kastein made a motion, seconded by Councilmember Ohlson, to adopt and approve all items not withdrawn from the Consent Calendar. The vote on the motion was as follows: Yeas: Councilmembers Hutchinson, Kastein, Manvel, Ohlson, Roy and Weitkunat. Nays: None. THE MOTION CARRIED. May 17, 2005 Consent Calendar Follow-up Councilmember Ohlson spoke regarding item #12 First Reading of Ordinance No. 055, 2005, Authorizing the Purchasing Agent to Enter into an Agreementfor the Financing by Lease -Purchase of Vehicles and Equipment and requested additional information prior to Second Reading. City Manager Atteberry stated the City owned approximately 2,000 pieces of equipment and vehicles, including vehicles and small equipment. Councilmember Reports Councilmember Roy thanked those who participated in the successful Old Town Marathon and spoke regarding the revenue generated for the City by such events. Councilmember Ohlson thanked staff for their help in orienting the new Councilmembers during the transition period. Councilmember Kastein reported on the discussions of the North Front Range Transportation and Air Quality Planning Council relating to a presentation regarding the RTA formed in the Pikes Peak area. Items Related to the Completion of the Spring Cycle of the Competitive Process for Allocating City Financial Resources to Affordable Housing and Community Development Projects/ Programs and Community Development Activities Utilizing Community Development Block Grant (CDBG) and HOME Investment Partnership Funds, Adopted The following is staff's memorandum on this item. "EXECUTIVE SUMMARY A. Resolution 2005- 055 Approving the Fiscal Year 2005 Community Development Block Grant Programs and Projects and the Use of Unprogrammed FY 04 CDBG Entitlement Grant Funds, Reprogrammed FY 03 HOME Grant Funds, Unprogrammed FY 04 HOME Grant Funds, and the HOMEFY 04-05 Community Housing Development Organization SetAside Funds for the City ofFort Collins. B. Resolution 2005-056 Approving the Fiscal Year 2005 Home Investment Partnerships Program for the City of Fort Collins. C. First Reading of Ordinance No. 059, 2005, Appropriating Unanticipated Revenue and Authorizing the Transfer of Appropriations Between Program Years in the Community Development Block Grant Fund. D. First Reading of Ordinance No. 060, 2005, Appropriating Unanticipated Revenue in the HOME Investment Partnerships Fund. 97 May 17, 2005 The Community Development Block Grant (CDBG) Program and HOME Investment Partnership 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. The City Council is being asked to consider the adoption of two resolutions related to funding under the CDBG and HOME Programs. The first resolution (Resolution 2005-055) establishes which programs and projects will receive fording with CDBG funds for the FY 2005 Program year, which starts on October 1, 2005, and the Use of Unprogrammed FY 04 CDBG Entitlement Grant Funds, Reprogrammed FY 03 HOME Grant Funds, Unprogrammed FY 04 HOME Grant Funds, and the HOMEFY04-05 Community Housing Development Organization Set Aside Funds. The CDBG Commission presents a list ofrecommendations as to which programs and projects should receiveftnding. The second resolution (Resolution 2005-056) establishes the major funding categories within the HOME Program for the FY2005 Program year, which also starts on October 1, 2005. Specific projects for the use ofHOMEfunds will be determined in November as a result of the fall fording cycle of the competitive process for the allocation of the City's f nancial resources to affordable housing programs/projects and community development activities. The following are the allocations recommended by the Community Development Block Grant Commission to the Fort Collins City Council. PLANNING AND ADMINISTRATION Maximum 20% of CDBG Grant Funds - $230,817 Amount of Request I Recommendation I Applicant — Project $193,046 1 $193,046 1 City o FortCollins-CDBGAdministration $20, 000 $0 1 North Fort Collins Business Association — Urban Renewal Action Plan AFFORDABLE HOUSING PROJECTS Amount o Re uest Recommendation Applicant — Project $200,000 $200,000 City of Fort Collins Advance Planning - Home Buyer Assistance $300, 000 $300, 000 Fort Collins Housing Corporation - Village on Plum Preservation Phase II $152, 735 $152, 735 Fort Collins Housing Corporation - Village on Bryan Avenue Senior Apartments, Rehabilitation $240, 000 $51,000 Habitat for Humanity - Vacant Property Acquisition $251, 611 $251, 611 Neighbor to Neighbor - Rehabilitation of A ordable Housin $500, 000 $0 CARE Housing - Affordable Housing Land Collaborative $90,000 $0 Collins Colorado Housing, LLC - "Access Sumac" Acquisition and Rehabilitation All affordable housing project fording allocations are a Due -on -sale Loan with a 5%fee M. May 17, 2005 PUBLIC FACILITY APPLICATIONS Amount of Request Recommendation Applicant — Project $47,376 $0 City of Fort Collins Engineering - Daisy Street Improvements $97, 572 $0 City of Fort Collins Engineering - Scott Avenue Improvements $211,500 $0 City of Fort Collins Engineering - North Mason Road Improvements $84, 600 $0 City of Fort Collins Engineering - Alpine Street Improvement $97, 010 $0 City of Fort Collins Engineering - Pinon Street Improvements $12,000 $12,000 City of Fort Collins Facilities - Crossroads Sa ehouse Rehabilitation $7, 000 $7, 000 Northern Colorado AIDS Project - Facility Purchase All public facility funding allocations are a Due -on -sale Loan with a 5%fee PUBLIC SERVICE APPLICATIONS Amount o Re uest Recommendation Applicant — Project $20,000 $0 Project Self -Sufficiency $17,500 $15,000 Springfield Court Early Learning Center — Sliding Fee Scholarshi Program $12,464 $0 Court Appointed Special Advocates $5,200 $0 Ensi ht Skills Center —Home Safety $6, 669 $6, 669 Elderhaus — Eagle's Club $20,000 $0 Win shadow - Outreach Program $10,000 $8,500 Education and Life Training Center - Employment Skills Training $10, 000 $10, 000 Respite Care - Sliding Fee Scholarship Program $9,490 $0 Meals on Wheels —Meal Subsidy Project $19, 685 $19,685 B.A.S.E. Cam - Sliding Fee Scholarship Program $14,000 $12,250 Sunshine School - Sliding Fee Tuition Scholarship $15,000 $3,599 Rehabilitation and Visiting Nurses Association — Home Health Care Scholarship Fund $4,000 $0 FirstCall - 2-1-1 Enhanced Information and Referral $30,000 $25,000 Neighbor to Neighbor — Comprehensive Housing Counseling $14, 000 $4, 640 Northern Colorado AIDS Project - Case Management and Homeless Prevention $25,500 $23,500 United Day Care - Sliding Scale Tuition Scholarship $11,750 $7,750 The Family Center/La Familia El Nidito Child Care Center May 17, 2005 $30, 000 $26, 000 Catholic Charities Northern — Shelter and Su ortive Services or the Homeless $15,000 $0 Women's Resource Center - Dental Care Assistance and Health Care Assistance $10,520 $10, 520 Disabled Resource Services - Access to Independence Program All public services funding allocations are a Grant. Total amount of funding requested = $2,805,228 A summary of the Commission's CDBG funding recommendations by category is as follows: Recommended Funding % of Total Category $ 193,046 14.4% Planning and Administration (Maximum $230,817 based on 20% of CDBG Entitlement Grant 955,346 71.3% Affordable Housin 19,000 1.4% Public Facilities 173,113 12.9% Public Services (Maximum $173,113 based on 15% of CDBG Entitlement Grant $1 340 505 100.0% 1 Total CARRYOVER FUNDING for the Fall Cycle of the Competitive Process Amount Source $121,436 Unprogrammed FY2005 CDBG Entitlement Grant 11,831 Unprogrammed FY2004 CDBG Entitlement Grant 46,265 Reprogrammed FY 2003 HOME Grant 159,663 Unprogrammed FY 2004 HOME Grant 23,330 Unprogrammed FY 2004-05 HOME CHDO Set Aside $362 525 1 Total Unprogrammed funding is the amount ofgrantfunds available from a fiscal year federal grant that has yet to be allocated to a specific project. Reprogrammed funding is the amount of grant funds that were previously allocated to a project(s) but have been returned to the City due to failure to complete the project(s). Presented below is a series of tables summarizing the CDBG Commission's recommendations by funding source. Unprogrammed FY 04 CDBG Entitlement Grant $12, 000 1 City of Fort Collins Facilities - Crossroads Sa ehouse Rehabilitation 7,000 Northern Colorado AIDS Project -Facility Purchase $19,000 61.6%Allocated 11,831 38.4% Unprogrammed $38 831 Total 100 May 17, 2005 FY 05 CDBG Entitlement Grant $193, 046 City of Fort Collins - CDBG Administration 200,000 City o Fort Collins Advance Planning - Home Buyer Assistance 300,000 FCHC — Village on Plum Preservation Phase II 166,491 Neighbor to Neighbor - Rehabilitation ofAffordable Housing $859,537 87.6% Allocated 121,436 12.4% Unprogrammed $980 973 1 Total FY 05 CDBG Entitlement Grant —Public Services ($173,117 maximum) $ 17,500 1 Springfield Court Early Learning Center — Sliding Fee Scholarship Program 6,669 Elderhaus — Eagle's Club 8,500 Education and Lie Training Center - Employment Skills Training 10,000 Respite Care - Sliding Fee Scholarship Program 19,685 B.A.S.E. Cam - Sliding Fee Scholarship Program 12,250 Sunshine School - Sliding Fee Tuition Scholarship 3,599 Rehabilitation/Visiting Nurses Association — Home Health Care Scholarship Fund 25,000 Neighbor to Neighbor — Comprehensive Housing Counseling 4,640 Northern Colorado AIDS Project - Case Management/Homeless Prevention 23,500 United Day Care - Sliding Scale Tuition Scholarship 7,750 The Family Center/La Familia El Nidito Child Care Center 26,000 Catholic Charities Northern — Shelter/Supportive Services or the Homeless 10520 Disabled Resource Services - Access to Independence Program $ 73113 100.0%Allocated Reprogrammed FY 03 HOME Grant $152, 735 1 FCHC - Village on Bryan Avenue Senior Apartments 51,000 Habitat or Humanity - Vacant Property Acquisition $203,735 81.5%Allocated 46,265 18.5% Unprogrammed $250 000 Total Unprogrammed FY 04 HOME Grant $ 0 0.0%Allocated $159,663 100.0% Unprogrammed $159 663 Total HOME FY 04-05 Community Housing Development Organization Set Aside $ 85,120 Neighbor to Neighbor - Rehabilitation o A ordable Housing $ 85,120 78.5%Allocated $ 23,330 21.5% Unprogrammed $108 450 Total 101 May 17, 2005 BACKGROUND The Community Development Block Grant (CDBG) Program and HOME Investment Partnership 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. The City Council is being asked to consider the adoption of two resolutions related to funding under the CDBG and HOME Programs. The first resolution (Resolution 2005-055) establishes which programs and projects will receive funding with CDBG funds for the FY 2005 Program year, which starts on October 1, 2005, and also how some unprogrammed and reprogrammedfunds from both the CDBG and HOMEPrograms will be utilized during the coming year. The CDBG Commission presents a list of recommendations as to which programs and projects should receivefunding. The second resolution (Resolution 2005-056) establishes the major funding categories within the HOME Program for the FY2005 Program year. Specific projects for the use of HOME funds will be determined in November as a result of the fall funding cycle of the competitive process for the allocation of the City's financial resources to affordable housing programs/projects and community development activities. The resolution establishing which programs and projects will receive CDBG funds represents the culmination of the spring cycle of the competitive process approved in January 2000 by the Council for the allocation of the City's financial resources to affordable housing programs/projects and community development activities. Additional background material about the competitive process is included in Attachment 1. Since early January ofthis year, the CDBG Commission and members of the City staff's Affordable Housing Team have conducted public hearings to assess community development and housing needs in Fort Collins, conducted technical assistance training workshops for applicants, and solicited applications for CDBG funding. The City's Affordable Housing Board reviewed the written applications for affordable housing projects and forwarded a priority ranking of proposals, as well as comments and questions, to the CDBG Commission. See Attachment 2 for a copy ofthe Board's materials sent to the CDBG Commission. The CDBG Commission, in addition to reviewing the written applications, personally interviewed each applicant, analyzed the applications, and formulated a list of recommendations to the City Council as to which programs and projects should receive funding. The competitive process established refined criteria to determine priorities between proposals received by the City. The ranking criteria are divided into five major categories. Each category is given a total number ofpoints that has been weighed according to its importance with respect to local and federal priorities. The five major categories are: 1. Impact/Benefit 2. Need/Priority 3. Feasibility 4. Leveraging Resources 5. Capacity and History 102 May 17, 2005 The Impact/Benefit criteria provide greater rewards to proposals that target lower income groups. The Need/Priority criteria help assure the proposal meets adopted City goals and priorities. The Feasibility criteria reward projects for timelines and documented additional funding. The Leveraging Resources criteria reward proposals which will return funds to the City (loans) and for their ability to leverage other resources. And, the Capacity and History criteria help gage an applicant's ability to do the project and reward applicants that have completed successful projects in the past (have good track records). The ranking sheet used to assist the CDBG Commission and the Affordable Housing Board is presented in Attachment]. The Commission also considered the funding guidelines contained in the updated Priority Affordable Housing Needs and Strategies report adopted by the Council on July 20, 2004. These guidelines include: CDBG funds should generally be allocated as follows: 65% for Housing projects; 15%for Public Services; and the balance for Administration and Public facilities; funds allocated to housing should generally be divided as follows: 70%for rental projects and 30%for homeownership opportunities; and the average subsidy should be $7,400 per unit, with relatively more funding to projects producing housing for lower income families. The CDBG Program is an ongoing grant administration program funded by the Department of Housing and Urban Development (HUD). The City of Fort Collins has received CDBG Program funds since 1975. In 1975 and FY 1976-1977 the City received HUD CDBG discretionary grants. Since FY1977-1978, the City has been an Entitlement Grant recipient ofCDBGfunds, meaning the City is guaranteed a certain level of funding each year. The level of funding 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 ofpopulation, income levels, housing stock conditions, etc. Additional background information on the City's Community Development Block Grant Program is presented in Attachment 3. AVAILABLE FUNDS The amount ofthe City's CDBG Entitlement GrantforFY2005-2006 is $1,154,087. The Entitlement Grant will be combined with $30,831 of Unprogrammed FY2004 CDBG funds and $518,113 of HOME Program funds to create a total of $1, 703, 030 offunds available for programs and projects during the next CDBG Program year. The following summarizes the amount and sources of available funds: 103 May 17, 2005 AMOUNT SOURCE $1,154,086 FY 2005 CDBG Entitlement Grant 30,831 CDBG FY 2004 Unprogrammed Funds 250,000 HOME FY 2003 Reprogrammed Funds 159,663 HOME FY 2004 Reprogrammed Funds 108,450 HOME FY 2004-2005 CHDO Funds $1 730 030 1 Total Unprogrammed funding is the amount ofgrant funds available from a fiscal year federal grant that has yet to be allocated to a specific project. Reprogrammed funding is the amount ofgrant funds that were previously allocated to a project(s) but have been returned to the City due to failure to complete the project(s). Below is a summary of recent CDBGfunding levels allocated from HUD to the City of Fort Collins: Year Entitlement Grant Reprogrammed Funds Program Income Total Funds 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 1998 $1,162,000 $216,875 $ 50,000 $1,428,875 1999 $1,169,000 $ 0 $ 50,000 $1,219,000 2000 $1,175,000 $ 34,358 $ 93,544 $1,30Z902 2001 $1,227,000 $403,151 $ 89,651 $1,719,802 2002 $1,209,000 $767,262 $ 87,712 $2,063,974 2003 $1,243,000 $ 0 $182,686 $1,425,686 2004 $1 219 000 $220 400 $ 0 $1 439 400 SELECTION PROCESS The selection process for the City Is FY2005-2006 CDBG Program began on January 6, 2005, when the CDBG Commission held a public hearing to obtain citizen input on community development and affordable housing needs. The CDBG Program office placed legal advertisements in local and regional newspapers starting in January to solicit requests for CDBGfundedprograms and projects for FY2005-2006. The application deadline was Thursday February 24. At the close of the deadline the City received 36 applications requesting a total of approximately $2.8 million. Copies of all applications were forwarded through the City Manager's office to the City Council on March 3 and placed in the Council Office for review. Also on March 3, copies of the housing applications were distributed to the Affordable Housing Board and copies of all applications were distributed to the CDBG Commission. On Thursday, March 24 the Affordable Housing Board conducted a special meeting to review the housing proposals and prepare a priority listing of applications to the CDBG Commission. On Tuesday March 29, Wednesday March 30, and Thursday March 31, the Commission met to hear 104 May 17, 2005 presentations and ask clarification questions from each applicant. The Commission then met on Thursday April 7 for the purpose of preparing a recommendation to the City Council as to which programs and projects should be funded for the FY 2005-2006 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 2004-2005 CDBG funds or funding in other previous years. The Commission then worked on the formulation of their list of recommendations. CDBG COMMISSION'S LIST OF RECOMMENDATIONS HUD CDBG regulations limit the amount of available CDBG funds which can be allocated to various generic categories. Funds for Planning and Administrative purposes are limited to 20% of the total of the Entitlement Grant and any Program Income. This means the 20% limitation for Planning and Administrativepurposes is $230,817. CDBG funds for Public Services are limited to 15% of the total of the Entitlement Grant and Program Income, making the amount $173,113. The Commission, thus, not only had to decide which applicants presented programs and projects which best fit into the City's CDBG Program, but also had to insure funding allocations were kept within HUD regulations and follow the funding guidelines contained in the Priority Affordable Housing Needs and Strategies report. Listed below is a summary of each applicant's initial request for funding and the Commission's list of recommendations. PLANNING AND ADMINISTRATION AD-2 City of Fort Collins - CDBG Administration Amount of Request: $193,046 Recommendation: $193,046 Proposal covers the administrative costs of the FY 2005-2006 CDBG Program Administration including salary, benefits and operating expenses for 2.4 staff positions. PA-1 North Fort Collins Business Association — Urban Renewal Action Plan Amount of Request: $20, 000 Recommendation: $0 This proposal will cover costs to help implement the North College Urban Renewal Plan beyond the City's efforts to conduct a market study for the area and update the North College Corridor Plan. May 17, 2005 AFFORDABLE HOUSING PROJECTS HO-I City of Fort Collins Advance Planning - Home Buyer Assistance Amount of Request: $200,000 Due -on -sale loan with 5%fee Recommendation: $200,000 Due -on -sale loan with 5%fee This program is administered by the Advance Planning Department and provides zero percent interest loans to eligible first-time homebuyers. The assistance covers down payment and closing costs to a maximum of $9,576 for households at 51 % to 80% of Area Median Income (AMI) and $19,152 for buyers at or below 50% ofAM1 who are receiving section 8 assistance or Habitat loans. Approximately 40 households will be assisted in the next year with this portion of the funding. Matching HOME funds will be requested in the fall cycle. HO-2 Fort Collins Housing Corporation - Village on Plum (aka Sleepy Willow) Preservation Phase H Amount of Request: $300,000 Due -on -sale loan with 5%fee Recommendation: $300,000 Due -on -sale loan with 5%fee The Village on Plum is located at Taft Hill Road and West Plum Street. The Fort Collins Housing Corporation is requesting funding for various upgrades to improve marketability and retention, based upon the recommendations of the private consultant that conducted a study last fall. Improvements include: replacement of aluminum windows and window coverings, electrical replacements/fixtures, boilers, air conditioners, site -work and parking. HO-3 Fort Collins Housing Corporation - Village on Bryan Avenue Senior Apartments, Rehabilitation Amount of Request: $152,735 Due -on -sale loan with 5%fee Recommendation: $152,735 Due -on -sale loan with 5%fee The Village on Bryan Avenue, Senior Apartments are located on the corner of Bryan Avenue and Mountain Avenue. The Fort Collins Housing Corporation is requestingfundingfor immediate needs of the property including: air conditioning, accessible tub surrounds, security, wheel chair accessible automatic door, and concrete repair. HO-4 Habitat for Humanity -Vacant Propertv Acguisition Amount of Request: $240,000 Due -on -sale loan with 5%fee Recommendation: $51,000Due-on-sale loan with 5%fee Habitat for Humanity is requesting money to purchase four lots at $60, 000 per lot. 106 May 17, 2005 HO-5 Neighbor to Neighbor -Rehabilitation of Affordable Housing Amount of Request: $251,611 Due -on -sale loan with 5%fee Recommendation: $251,611 Due -on -sale loan with 5%fee Neighbor to Neighbor (N2N) is requesting funds to improve and preserve existing affordable housing. N2N recently completed a Capital Needs Assessment of their properties, and this application addresses their priority needs for nine of their properties. HO-6 CARE Housing -Affordable Housing Land Collaborative Amount of Request: $500,000 Due -on -sale loan with 5%fee Recommendation: $0 CARE Housing proposes to acquire 35 acres of land at Rigden Farm, to be used in a collaborative development with the Fort Collins Housing Authority, and Fort Collins Habitatfor Humanity. The collaborative partnership would result in the development of at least 109 multi family rental units and 56 single-family homes. HO-7 Collins Colorado Housing. LLC - "Access Sumac"Acquisition and Rehabilitation Amount of Request: $90,000 Due -on -sale loan with 5%fee Recommendation: $0 Collins Colorado Housing is requestingfunding to acquire, preserve as affordable, and rehabilitate for accessibility, an existing 4 plex located at 3303 Sumac Street. $50,000 of the request is for acquisition and $40, 000 for rehabilitation of two units. These units will provide housing for those who are disabled and want to remain in their homes. Residents would also be connected with local resources through direct referral. PUBLIC FA CILITY APPLICA TIONS PF-I City of Fort Collins Engineering - Daisy Street Improvements Amount of Request: $47,376 Grant Recommendation: $0 Engineering is requestingfundingto upgrade the existing roadwayfrom a sidewalk -less, gravel and dirt roadway to a paved roadway, including: an asphalt surfaced road, concrete sidewalks, and a curb and gutter drainage system. PF-2 City of Fort Collins Engineering - Scott Avenue Improvements Amount of Request: $97,572 Grant Recommendation: $0 107 May 17, 2005 Engineering is requestingfunding to upgrade the existing roadwayfrom a sidewalk -less, gravel and dirt roadway to a paved roadway, including: an asphalt surfaced road, concrete sidewalks, and a curb and gutter drainage system. PF-3 City of Fort Collins En ins eering - North Mason Road Improvements Amount of Request: $211,500 Grant Recommendation: $0 Engineering is requestingfunding to upgrade the existing roadwayfrom a sidewalk -less, gravel and dirt roadway to a paved roadway, including: an asphalt surfaced road, concrete sidewalks, and a curb and gutter drainage system. PF-4 City of Fort Collins Engineering - Alpine Street Improvements Amount of Request: $84,600 Grant Recommendation: $0 Engineering is requestingfunding to upgrade the existing roadwayfrom a sidewalk -less, gravel and dirt roadway to a paved roadway, including: an asphalt surfaced road, concrete sidewalks, and a curb and gutter drainage system. PF-5 City of Fort Collins Engineering - Pinon Street Improvements Amount of Request: $97,010 Grant Recommendation: $0 Engineering is requestingfunding to upgrade the existing roadwayfrom a sidewalk -less, gravel and dirt roadway to a paved roadway, including: an asphalt surfaced road, concrete sidewalks, and a curb and gutter drainage system. PF-6 City of Fort Collins Facilities - Crossroads Safehouse Rehabilitation Amount of Request: $12,000 Due -on -sale loan with 5%fee Recommendation: $12,000 Due -on -sale loan with 5%fee The City of Fort Collins, Facilities developed the Crossroads Safehouse Master Plan in September of 2004. This application requests funding to address priorities of the plan including: a new furnace, new sidewalk, and insulation improvements to increase energy efficiency and improve the comfort of the residents. WoN May 17, 2005 PF-7 Northern Colorado AIDS Proiect - Facility Purchase Amount of Request: $7, 000 Due -on -sale loan with 5%fee Recommendation: $7,000 Due -on -sale loan with 5%fee Northern Colorado AIDS Project is seeking funding to complete the acquisition of their facility at 400 Remington Street. PUBLIC SERVICE APPLICATIONS PS -I Project Self -Sufficiency Amount Requested: $20,OOOGrant Recommendation: $0 The mission of Project Self -Sufficiency is to assist single parents in their efforts to build and maintain strong, healthy families, achieve economic independence, and become free from community and government assistance. CDBG funds of $20, 000 will be used to pay salaries of advisors who work with Fort Collins participants. PS-2 Springfield Court Early Learning Center — Sliding Fee Scholarship Program Amount Requested: $17, 500 Grant Recommendation: $15,000 Grant Offeringfull-day childcare services, Springfield Court Early Learning Center scholarshipprogram provides sliding scale day care to benefit low-income families. CDBG funding of $17,500 will provide sliding scale day care for 32 children, at a requested subsidy of $547 per child. PS-3 Court Appointed Special Advocates Amount Requested: $12, 464 Grant Recommendation: $0 CASA recruits and trains community volunteers to work as Court Appointed Special Advocates to represent children who are in the court system due to abuse and/or neglect. CDBG funding of $12,464 will provide partial salaries for the Case Supervisors and the Volunteer Coordinator. PS-4 Ensight Skills Center — Home Safety Amount Requested: $5,200 Grant Recommendation: $0 Ensight provides visual rehabilitation to people with diseases of the eye. CDBG funding of $5,200 will provide the partial salaryfor one of two part-time Occupational Therapists to do home visits. 109 May 17, 2005 PS-5 Elderhaus — Eagle's Club Amount Requested: $6, 669 Grant Recommendation: $6,669 Grant Eagle's Club is a men's group designed to meet the biopsychosocial needs of the members and to encourage participation so that their caregivers can receive some needed time away. CDBG funds of $6, 669 would be used to pay the partial salary of the Program Director. PS-6 Wingshadow - Outreach Program Amount Requested: $20,000Grant Recommendation: $0 The Outreach Program includes six services: Street Intervention, Wolf Paws, G.E.D. classes, Community Service Projects and the Challenge Course. CDBG funds of $20, 000 would be used to pay the entire salary of an outreach assistant. PS-7 Education and Life Training Center - Employment Skills Training AmountRequested: $10, 000 Grant Recommendation: $8,500 Grant ELTC equips clients, many ofwhom are often low- and moderate- income, for immediate entry into the job market through a variety of skills training. CDBG funds of $10,000 would be used to provide salaries and benefits ofteachers who provide computer courses, medical office courses and literacy courses. PS-8 Respite Care - Sliding Fee Scholarship Program Amount Requested: $10,OOOGrant Recommendation: $10,000 Grant Respite Care offers day and overnight care as a service for families with developmentally disabled children up to age 21. CDBG funds of $10, 000 could be used to provide sliding fee scholarships to low-income families. The subsidy requested is $500 per child for specialized care. PS-9 Meals on Wheels — Meal Subsidy Proiect Amount Requested: $9,490 Grant Recommendation: $0 Meals on Wheels provides meals and social interaction to homebound clients in Fort Collins five days a week. CDBG funds of $9, 490 would be used to completely subsidize a year's worth of meals to 10 extremely -low and low-income persons. 110 May 17, 2005 PS-10 B.A.S.E. Camp -Sliding Fee Scholarship Program Amount Requested: $19, 685 Grant Recommendation: $19,685 Grant BASE Camp provides before and after school day care for 1800 elementary -aged children at 25 school sites. CDBG funds of $19, 685 would be used to support sliding fee scholarships for low- income families. The requested subsidy is $197 per child, for children receiving part-time care. PS-11 Sunshine School- Sliding Fee Tuition Scholarship Amount Requested: $14, 000 Grant Recommendation: $12,250 Grant Sliding Fee Tuition Scholarship provides qualityfull-day childcare services to low-income families of children 2-112 to 6 years of age. CDBG funds of $14, 000 would be used to support sliding fee scholarships for 16 low-income children. The requested subsidy is $875 per child. PS-12 Rehabilitation and Visiting Nurses Association —Home Health Care Scholarship Fund Amount Requested: $15, 000 Grant Recommendation: $3,599 Grant RVNA provides home care services, skilled and unskilled, as well as acute and long-term care. CDBG funds of $15,000 would provide services to 25 frail, elderly and/or disabled who have minimal or no access to healthcare needs. The requested subsidy per person served is $600. PS-13 FirstCall - 2-1-1 Enhanced Information and Referral Amount Requested: $4,000Grant Recommendation: $0 2-1-1 provides information about services that are available and makes appropriate referrals to the programs which will best serve the caller's needs. CDBG funds of $4, 000 will be used to support the staff salary of one referral specialist. PS-14 Neighbor to Neighbor —Comprehensive Housing Counseling Amount Requested: $30, 000 Grant Recommendation: $25,000 Grant Housing Counseling consists of Emergency Rent Assistance Counseling, Pre -rental Counseling, Landlord/Tenant Counseling, Pre purchase Counseling/Homebuyer Training, Mortgage Default Counseling and Reverse Mortgage Counseling. CDBG funds of $30, 000 would be used to support 111 May 17, 2005 the staff salaries of direct -service employees. The requested subsidy is $9 per person served, for the variety of services provided. PS-15 Northern Colorado AIDS Project -Case Management and Homeless Prevention Amount Requested: $14, 000 Grant Recommendation: $4,640 Grant The Case Management and Homeless Prevention Program help families and individuals coping with HIV/AIDS retain their stability and health as their ability to be financially independent diminishes. CDBG funds of $14, 000 will provide partial funding for two case managers, and a special fund to provide short-term housing assistance, prescription assistance and utility assistance to keep clients housed and in stable living situations. PS-16 United Day Care -Sliding Scale Tuition Scholarship Amount Requested: $25,500 Grant Recommendation: $23,500 Grant United Day Care provides full -day early child care and education programs. CDBG funds of $25, 500 would be used to subsidize the difference between the parent fee and the actual cost of care for 47 low-income children. The requested subsidy per child is $543. PS-17 The Family Center/La Familia El Nidito Child Care Center Amount Requested: $11,750 Grant Recommendation: $7, 750 Grant The Family Center provides bilingual early childhood development care as well as other educational programs to provide a full -range of services for the child and his family. CDBG funds of $11,750 would be used to support the staff salaries of three teachers to help retain a stable staffing environment. The requested subsidy translates to $181 per person served. PS-18 Catholic Charities Northern —Shelter and Supportive Services for the Homeless Amount Requested: $30, 000 Grant Recommendation: $26,000 Grant The Mission provides overnight shelter to homeless individuals and families. CDBG funds of $30, 000 would be used to support salaries to staff The Mission. The requested subsidy translates to $33 per person served. 112 May 17, 2005 PS-19 Women's Resource Center -Dental Care Assistance and Health Care Assistance Amount Requested: $15, 000 Grant Recommendation: $0 Dental Care and Health Care assist low-income women with their dental health needs and information on HIV/AIDS prevention. CDBG funds of $15, 000 would provide support for staff salaries. PS-20 Disabled Resource Services -Access to Independence Program Amount Requested: S10,520Grant Recommendation: $10,520 Grant The DRS Independent Living Center provides short and long-term help to low-income disabled. CDBGfunds of $10,520 would be used to support staffsalaries. Total amount of funding requested = $2,805,228 A summary of the Commission's CDBG funding recommendations by category for the total amount offunds available is as follows: Recommended Funding % of Total Category $ 193,046 14.4% Planning and Administration (Maximum $230,817 based on 20% o CDBG Entitlement Grant 955,346 71.3% A ordableHousin 19,000 1.4% Public Facilities 173,113 12.9% Public Services (Maximum $173,113 based on 15% of CDBG Entitlement Grant $1 340 505 100.0% 1 Total CARRYOVER FUNDING or the Fall Cycle of the Competitive Process Amount Source $121,436 Unprogrammed FY2005 CDBG Entitlement Grant 11,831 Unprogrammed FY2004 CDBG Entitlement Grant 46,265 Reprogrammed FY2003 HOME Grant 159,663 Unprogrammed FY 2004 HOME Grant 23,330 Un ro rammed FY2004-05 HOME CHDO Set Aside $362 525 1 Total The total amount of CDBG funding requests considered by the CDBG Commission was approximately $2.8 million, however, only $1.7 million of CDBG and HOME funds are available. With the amount of total requests far exceeding available funding, obviously not all applications could be funded. Due to HUD funding limitations, some Public Service applications received no 113 May 17, 2005 funding or less funding than requested in order to keep the generic category within program maximums. The CDBG Commission has recommended full funding for eleven (11) proposals. In the Commission's opinion, these applications recommended for full funding best fit CDBG Program national objectives, the selection criteria, and the funding guidelines. The CDBG Commission has recommended partial fundingfor ten (10) proposals. Proposals, which did not receive full funding, were deemed of a lower priority and, in some cases, a lack of funds, program category limitations (especially in the Public Services category), or funding guidelines prohibited their full funding. The Commission has recommended no funding for fifteen (15) proposals. The Commission's reasons for either full funding, partial funding, or no funding are presented in Attachment 4. A comparison of the Commission's funding recommendations according to the priority ranking of affordable housing proposals developed by the Affordable Housing Board is presented below. The table lists the Board's ranking of affordable housing proposals and presents each proposal's request for funding and the funding recommendation by the Commission. Priority Applicant Funding Funding Ranking Project Request Recommendation 1 City of Fort Collins $200,000 $200,000 Home Buyer Assistance Program 2 Ft. Collins Housing Corporation Bryan $152, 735 $152, 735 Avenue Senior Apartments, Rehabilitation 3 Ft. Collins Housing Corporation $300,000 $300,000 Village on Plum Preservation Phase II 4 CARE Housing $500, 000 $0 Affordable Housing Land Collaborative 5 Neighbor -to -Neighbor $251,611 $251,611 Rehabilitation of,41fordable Housing 6 Collins Colorado Housing $90, 000 $0 "Access Sumac" Acquisition and Rehabilitation 7 Habitatfor Humanity $240,000 $51,000 Vacant Property Acquisition Again, the Commission's reasons for eitherfull funding, partial funding, or no funding are presented in Attachment 4. " 114 May 17, 2005 City Manager Atteberry introduced the agenda item and stated staff and CDBG Chair Bob Browning were available to answer questions. Ken Waido, Chief Planner, presented background information regarding the agenda item. He noted that the Council had conducted a study session on this matter. He stated the funds being allocated came from two sources — the Community Development Block Grant program and the HOME program. He stated the City received 36 proposals requesting over $2.8 million and that there was just over $1.7 million available to allocate. He stated some proposals could not be funded and that some proposals could not be fully funded. He stated the CDBG Commission was making recommendations for funding after extensive review of the proposals, interviews and deliberations regarding the merits of the proposals. He stated the Commission was recommending the allocation of $1.3 million, with over 71 % going toward affordable housing proposals. He stated $173,113 was recommended for allocation in the public services area and that some funding was recommended for public facilities and program administration. He stated 80% of the funding was recommended for allocation to programs and projects. He stated the Commission was also recommending that $362,000 be carried over to the fall cycle to be combined with other monies that would become available for new proposals. Mayor Hutchinson stated audience participants would each have three minutes to speak. Sandra Collogi, Director of Community Outreach for Crossroads Safehouse, stated the $12,000 recommended for Crossroads Safehouse facility master plan upgrades was critical funding. Mark Brophy,1109 West Harmony Road, asked how much would be paid by the federal government and how much would be paid by the City. Nancy Jackson, Disabled Resource Services Director, thanked the City for the full funding received by the agency. Erin Fugler, Fort Collins Program Manager for Neighbor -to -Neighbor, thanked the City for the funding received by the program. Linda Preston, Base Camp Executive Director, expressed appreciation for CDBG funding for the program. Julia Crommer, Neighbor -to -Neighbor Asset Manager, thanked the City for the CDBG funding received by the program. Ann Porter, United Day Care Center Executive Director, thanked the Council for CDBG funding support for the program. Councilmember Roy asked staff to answer Mr. Brophy's question. Waido stated all of the funds being allocated were federal funds from the Department of Housing and Urban Development through the CDBG and HOME Investment programs. 115 May 17, 2005 Councilmember Weitkunat made a motion, seconded by Councilmember Manvel, to adopt Resolution 2005-055, Resolution 2005-056, Ordinance No. 059, 2005 on First Reading and Ordinance No. 060, 2005 on First Reading. Councilmember Weitkunat expressed appreciation for the work of the CDBG Commission. She stated she had concerns about administrative dollars and the North College project. She asked staff and the Commission to consider the work session discussion during the fall cycle. Councilmember Roy stated the Council had received quality background information on this agenda item and that there had been a work session discussion. He stated this program served "core needs" of the community. Councilmember Manvel stated this was "vital funding" and that there were many worthwhile projects that could not be funded. He stated the CDBG Commission had a difficult job in developing a recommendation. The vote on the motion was as follows: Yeas: Councilmembers Hutchinson, Kastein, Manvel, Ohlson, Roy and Weitkunat. Nays: None. THE MOTION CARRIED. Resolution 2005-057, Approving Certain Key Outcomes for the Budgeting for Outcomes Budeet Preparation Process, Adopted The following is staffs memorandum on this item. "EXECUTIVE SUMMARY After years of using a base plus incremental budget approach to the City's service and financial planning, the existing economic realities present an opportunity to move to an innovative and more responsive budget process —Budgeting for Outcomes. As policy makers, City Council has a key role in the development and adoption ofthe City's service and financial plan. In past years, the Council's policy agenda has been indirectly linked to preparation ofthe biennial budget. Budgetingfor Outcomes offers afresh approach to developing the budget more directly linked to Council policies and based on results. City Council strongly endorsed this approach and its role in the process. One ofthe initial steps in Budgeting for Outcomes is to identify key results or outcomes upon which the budget is to be prepared. Taking into account data from the communityfeedbackfrom citizens to Council members and survey data —the City Council, at its May 3 work session, identified seven results or outcomes on which the 2006-2007 biennial budget will focus. These include: 116 May 17, 2005 Improve Economic Health: Fort Collins produces quality jobs, is economically diverse and builds on our core community strengths such as higher education, downtown, natural environment, and arts and culture. Improve Environmental Health: Fort Collins creates a clean and sustainable environment. Improve Neighborhood Quality: Fort Collins improves the safety, livability, choices and affordability of neighborhoods. Safer Community: People in Fort Collins are safer at home, work, and play. Improve Cultural, Recreational, and Educational Opportunities: Fort Collins provides quality cultural, recreational, open space/natural areas, and educational opportunities to enrich lives. Improve Transportation: Fort Collins improves the safety and ease of traveling to, from, and throughout the city. A High Performing Government: Fort Collins is a model for an entrepreneurial, high performing City government These outcomes or results form the foundation of the development of the 2006-2007 biennial budget and the City Manager's recommended budget that will be presented to City Council in September 2005. Additionally, the Council intends to use these key outcomes in the development of its 2005- 2007 Policy Agenda. " City Manager Atteberry stated this was an important agenda item and would formalize direction given at previous meetings by the City Council. He strongly recommended that the Council approve the Resolution. Diane Jones, Deputy City Manager, stated the Resolution would outline the foundation for Budgeting for Outcomes. She stated this was an effort to identify the "key results" that mattered to citizens of the community: (1) to improve the economic health of Fort Collins; (2) to improve environmental health; (3) to improve neighborhood quality; (4) to ensure a safer community; (5) to improve the cultural, recreational and educational opportunities; (6) to improve transportation; and (7) to be a high performing government. She stated this would be the foundation for the budget process and for some of the policy work that would be done by the Council over the next few years. She stated dollars would be allocated among the seven result areas and that the City was reviewing the factors (activities, services) that would produce those results. She stated based on the framework, the staff would prepare "offers" or "packages" of services and programs that would relate to producing those results. She stated there would be a process of ranking and selecting the offers for development of the recommended budget to be submitted to the City Council in September. 117 May 17, 2005 Mark Brophy,1109 West Harmony Road, stated the City should not be "entrepreneurial" and should be the "referee" between competing entrepreneurs. He stated there needed to be enough government spending to ensure a safer community but that too much spending would make people "afraid" of the government. Councilmember Kastein asked when the Council will set the policy agenda. City Manager Atteberry stated had not yet been determined. He stated there would be a connection between the policy agenda process and the Budgeting for Outcomes process. He stated staff could make recommendations on the policy agenda process and that the Council would determine the process. He stated the two processes could be overlapping or separate. He suggested that the Council determine its preference and stated a detailed policy agenda discussion by Council would improve the quality of the process. Mayor Hutchinson stated the seven key results were the foundation and that adoption of the Resolution would give the staff the basis for further work. He suggested that the Leadership Team put together a proposed schedule for Council's discussion by e-mail. Councilmember Kastein stated it was important to have a policy agenda process in place that the Council could agree on. He stated he believed that the policy agenda needed to be in place early in the Budgeting for Outcomes process. Mayor Hutchinson stated the Leadership Team would put together a proposed schedule for Council's discussion. Councilmember Ohlson asked if the wording in the first six key outcomes was the exact language arrived at during the work session. City Manager Atteberry replied in the affirmative. Councilmember Ohlson asked about the seventh key outcome relating to "high performing government" and suggested that the language be "high performing City government." He asked for an explanation of how staff viewed "entrepreneurial high performing City government" and stated he felt that it was important that everyone understand what that meant. City Manager Atteberry stated the dictionary definition of "entrepreneurial" related to capitalistic ways and profit centers. He stated was not the "spirit" in which this outcome had been discussed. He stated he viewed an "entrepreneurial high performing City government" as one that was innovative and creative, made up of initiators, proactive in bringing forth new policy recommendations, problem solving oriented, and energetic. He stated the concept related to the energy level and spirit of the workforce. Councilmember Manvel stated he hoped that "high performing" would also include "efficient and economical." City Manager Atteberry stated those concepts were embedded in the overall concept of "high performing." He stated this would become apparent in the requests for results, the three indicators, the results maps and the causal factors. He stated "best practices" did not always mean the most expensive and "glamorous." He stated "efficient" was implicit within the concept of"high performing." 118 May 17, 2005 Councilmember Manvel stated he believed that "entrepreneurial' spoke to doing things in new, creative ways to save money i.e. finding ways for people to do business with the City on the Internet. Councilmember Kastein made a motion, seconded by Councilmember Weitkunat, to adopt Resolution 2005-057. Councilmember Kastein stated the definition of "high performing government' must be refined during development of the policy agenda. He stated this could mean adding dimensions such as "efficient, cost effective and proactive" and specifying what those terms meant. He stated the policy agenda should provide more direction for staff and should assign priorities. Councilmember Roy asked staff to outline the time line of events in the budget process. City Manager Atteberry stated he must deliver a recommended budget to the City Council by the first Tuesday in September. He stated staff would be working with the Council in the interim. He stated a work session was scheduled for June 9 for Council to review the work done by staff teams on the Request for Results. He stated staff teams were working to prepare "offers" for evaluation by various results teams that would be working on funding recommendations. He stated this would be an open and collaborative staff process. Councilmember Roy stated he wanted to make the citizens aware of the new Budgeting for Outcomes process and to make sure that the citizens had opportunities to provide feedback. He asked if there was a way to allow such feedback via the City website. City Manager Atteberry stated this had not been done but would be easy to accomplish. Mayor Hutchinson asked that the policy plan process and budget milestones be shown together on the information to be sent to the Council. The vote on the motion was as follows: Yeas: Councilmembers Hutchinson, Kastein, Manvel, Ohlson, Roy and Weitkunat. Nays: None. THE MOTION CARRIED. Items Relating to the Purchase and Lease of Property Located at 212 LaPorte Avenue, Adopted The following is staff s memorandum on this item. "FINANCIAL IMPACT Ten months ofrental payment ($30,000) will be paid to the City ofFort Collins at the time ofclosing and will be used as part of our purchase price of the property. Rent collected after the tenth month will result in unanticipated revenue to Operation Services. The tenant will pay all expenses for maintenance, utilities, janitorial and taxes. 119 May 17, 2005 EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 050, 2005, Appropriating Unanticipated Revenue in the Capital Projects Fund - Building Community Choices - New Main Library /Acquisition and Design Capital Project and Authorizing the Transfer Between Funds of Existing Revenue to be used to Purchase Property Located at 212 LaPorte Avenue. B. Resolution 2005-049 Authorizing the City Manager to Execute a Lease Agreement for 212 Laporte Avenue, Fort Collins, Colorado to Abraxis Art Glass & Doors, Inc. The City of Fort Collins developed the Downtown Civic Center Master Plan in 1996 At that time, the Plan called for Block 32 to have municipal government offices and a library. The Plan includes a pedestrian corridor through the middle of the block. The City has purchased most of the Block, but there are currently two properties still under individual ownership. The City constructed its new office building on the east half of Block 32 and the Plan contemplates the construction of the new Library on the westerly side of Block 32. This Library is part of the Building Community Choices. During the design phase of the office building at 215 North Mason, staff attempted to acquire the property 212 West LaPorte Avenue. The owner did not want to sell. The decision was made to design and construct the building without impacting the property at 212 West LaPorte Avenue. The existing building impacted the continued flow of the pedestrian corridor and there have been parking issues since the City's occupation of the office building. The owner of 212 West LaPorte Avenue is moving his business and has approached the City to purchase the property. This is a good opportunity to purchase this site for the City's future use on the Block. With this property, the City will own the entire Block exceptfor the southwesterly corner. Buying today with a willing seller will save the City money in the future and, until the Block is developed, the City will rent the property to generate income. The purchase price is $625,000. The seller will be leasing the premises after closing until his building is built. At the time of closing, the purchase price will be credited by $30, 000 for ten month's rent of the property. The balance due after this credit is $595, 000, of which $250, 000 is available in the capital Projects fund - Building Community Choices - New Main Library/Acquisition and Design capitalproject. In addition, staffis recommending that Council use existing appropriations in the Capital Projects Fund - Major Building Maintenance, totaling $345, 000, for the balance of the purchase price. Ordinance No. 050, 2005, which approves funding for the acquisition of this property, was unanimously adopted on First Reading on May 3, 2005. Until the time this property is neededfor construction ofthe Library, the City will rent the property. The first tenant will be the existing occupant of the building, Abraxis Art Glass & Doors, Inc. The owner of this company is constructing a new building at another location and until the construction is complete, the company will rent this space from the City at the rate of $3, 000 per month. At the time of closing, the tenant will pay to the City $30, 000, representing 10 month's rental payment. 120 May 17, 2005 The term of this Lease is for one year, with an option to renew for a second year. The lease also allows the tenant to terminate the lease without penalty upon thirty (30) days notice to the City. During the term of this lease, the tenant will be responsible for the following costs: building maintenance, taxes, janitorial and all utilities. " City Manager Atteberry stated staff could present a brief summary and respond to questions. Mayor Hutchinson requested a brief staff presentation. Helen Matson, Real Estate Manager, presented background information relating to the proposed purchase of the building at 212 LaPorte Avenue for future library use for $625,000. She stated the building would be rented back to the seller for 10 months and that $595,000 would be paid by the City at closing. Ken Marmon, Operations Services Director, stated the plan was to keep the purchase price down by continuing to rent the property until it was needed by the City in the future. Mark Brophy, 1109 West Harmony Road, stated the City had become a "land baron" and that the City should not be in the real estate business. He stated there was land around the current building for expansion. He stated moving the library to the new location would impact property values around the current location. He stated library patrons at a downtown location would have to park in a parking garage. He stated $595,000 would be spent to provide a library that would give "worse service" than the existing library. He stated the budget should be cut and that this would be a good place to do that. Councilmember Weitkunat asked for clarification that the purchase of land would be done through Building Community Choices money and that the voters approved the purchase of land for a library. Matson replied in the affirmative. Councilmember Weitkunat stated this piece of land was not available when the original land purchase was completed. Councilmember Ohlson asked for a one -page memo regarding the restrictions on the existing library site regarding how the land could be used. City Manager Atteberry stated construction on current main library site was limited. Councilmember Manvel stated it was his understanding that there were two ballot issues on which ballots were case — one to build a new library on that site and the second to leave that block as mostly open space. He stated both issues passed and that the current building footprint was the maximum that could be allowed. He stated that at this time the maximum square footage was already taken up by the current library. Councilmember Kastein asked how much of the $625,000 was Building Community Choices money. Matson stated there was a balance of $345,000 in Building Community Choices money and that the rest would be taken from facilities maintenance and would be repaid at a later time. 121 May 17, 2005 Councilmember Ohlson asked if taking money from facilities maintenance would delay any building repair. Marmon stated the money was coming specifically from Facility Capital Maintenance, which could be used only for specific purposes. Councilmember Ohlson made a motion, seconded by Councilmember Roy, to adopt Ordinance No. 050, 2005 on Second Reading and to adopt Resolution 2005-049. The vote on the motion was as follows: Yeas: Councilmembers Hutchinson, Kastein, Manvel, Ohlson, Roy and Weitkunat. Nays: None. THE MOTION CARRIED. Ordinance No. 057, 2005, Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands Necessary for the Construction of Public Improvements in Connection with the Dry Creek Drainage Improvements Project - East Vine Diversion Channel. Adopted on First Reading The following is staff s memorandum on this item. "FINANCIAL IMPACT Property acquisition costs for the construction of the Dry Creek Drainage Improvements Project will be covered by available project funds. Appropriations for the Project consist of $1, 700, 000 in 2003, $3,000,000 in 2004 and $3,400,000 in 2005. EXECUTIVE SUMMARY The design portion of the Dry Creek Drainage Improvements Project ("Project') began in 2003. The construction of the Project began in April 2005 with completion scheduled for 2006. The total project involves a combination ofsub projects in the upper, middle and lower basins of Dry Creek with the goal of reducing the likelihood of flooding in Fort Collins and Larimer County. The approval of this ordinance does not automatically result in the filing of a petition in eminent domain; it simply allows staff to use the process if good faith negotiations fail to result in an agreement between the City and affected property owners. Staff is hopeful that all acquisitions will be accomplished by agreement. Staff intends to follow the standard City acquisition process: Staff will conduct an internal value finding. If the preliminary valuation of the property indicates that the value of the property to be acquired exceeds $5, 000 staff will order an appraisal from a certified appraiser. 122 May 17, 2005 2. Staff will attempt to meet with each property owner onsite, and may include the appraiser in this meeting. 3. Staff will mail and/or hand deliver letters of intent to the owners with written offers based on the internally prepared valuefindings or appraisals. 4. Staff will negotiate in good faith to reach a mutually acceptable agreement. 5. Staff will inform the owners that they always have the right to consult with their own appraiser and/or attorney at any time in the process. BACKGROUND Dry Creek, a tributary to the Poudre River, extends from the Wyoming border to where it joins the Poudre River near the intersection of Mulberry Street and Timberline Road. The Dry Creek Basin ("Basin') is approximately 23 miles long and six miles wide, encompassing approximately 62 square miles. The upper and middle portions of the basin are primarily used as rangeland, irrigated hay meadows andpastures. The majority ofthe lower basin is developedfor commercial, industrial and residential uses. The 100 year floodplain and floodway were originally mapped as part of a Federal Emergency Management Agency ("FEMA') Flood Insurance Study in 1979 and revised in 1996 The original master plan was completed in 1980. In 2002, Fort Collins Utilities mapped a revisedfloodplain and foodway for portions of the Basin as part of a comprehensive update of the City's stormwater master plan. The floodplain and floodway map reflect the higher rainfall standard adopted by City Council in 1999. Dry Creek is a FEMA designatedfloodplain and is subject to the City's floodplain regulations. The total project includes modifications to Douglas Lake spillway, construction of two detention ponds, installation of a SCADA system, construction of an irrigation water supply pipeline from Reservoir #4 to Terry Lake, and construction of open channels to carry stormwater flows from the Larimer & Weld Canal to near the confluence of Dry Creek and the Poudre River. Sub projects in the lower basin are currently in the final design phase. In the lower basin one of these sub projects, the East Vine Diversion Channel, requires the purchase of a permanent storm water and access easement and a temporary construction easement from a private property owner. Staff has initiated the negotiation and education process and is reviewing the proposed improvements with the affected property owners. However, to ensure that the City will be able to secure all of the property interests needed in time to begin construction of the sub project, it is necessary to initiate the first step of the eminent domain process, including passage of this ordinance authorizing acquisition by eminent domain. Staff has advised the affected property owners that it is not unusual for the City to authorize the use of eminent domain at the same time as negotiations are takingplace and that it is the City 's intention to continue goodfaith negotiations for the property interests. " 123 May 17, 2005 City Manager Atteberry introduced the agenda item. Helen Matson, Real Estate Manager, stated staff was requesting permission to go forward with eminent domain proceedings only if a mutually agreed satisfactory price could not be negotiated between the City and the Weiss family. She stated the property was needed for the Dry Creek Drainage Improvement Project - East Vine Diversion Channel. Dean Saye, Utilities Project Manager, gave a brief overview of the Dry Creek project and how this property would be affected by the East Vine Diversion Channel. He addressed the potential for flooding in the North College trailer parks and businesses. He described the stormwater mitigation components of the project involving detention and conveyance. He stated Douglas Reservoir and two reservoirs to be built would be used for detention and that the Larimer-Weld Canal would convey flood flows around the northeast part of Fort Collins to a site spill weir to the new East Vine Diversion Channel. He stated the Weiss property was bounded on the north by the Larimer-Weld Canal and on the south by Vine Drive. He stated this property would have some benefit due to the removal of about 10 acres from the flood fringe. He stated the proposed alignment of the East Vine Diversion Channel was chosen because it was the shortest route that could be taken without using a diagonal route. He stated this route would also allow utilization of the Lindenmeier Lake Outlet Channel as a flood control. He stated this alignment would also provide some buffering to the Lindenwood Estates if development occurred in the area. He stated at some point outfall would be needed for the Dry Creek basin to drain the North College area and that the outfall would likely parallel the proposed Vine Street realignment. He stated the same crossings at the Vine Drive and Burlington Northern -Santa Fe Railroad could be used. He stated the intent was to combine the ability to bring the flood flows into one crossing location. He presented visual information showing the relationship between the proposed channel and the Weiss property. He stated he had met with the Weiss family to discuss the easement and the need for the project and that efforts had been made to optimize the design to limit the easement to only 1.02 acres. He stated this required acquisition of another .7 acre easement on the Lindenwood HOA property. He stated side slopes were steepened to minimize the width and length of the easement. He stated staff had worked to minimize impacts to the Weiss farm by scheduling work in November. He stated the property would be used for a stormwater structure and that it could also be used in density calculations for future development projects and as a buffer area. Bev Weiss, property owner, stated her family was not notified of this meeting. She asked that this agenda item be pulled and held. She stated the trail mentioned by Mr. Saye did not belong to Lindenwood and that the Lindenwood residents were trespassing on the ditches. She stated the property owner had been told by the City and County that Lindenwood and all property owners would share in this project. She stated Mr. Saye had now indicated that the City did not want to "disturb" Lindenwood and wanted to take about two acres of the Weiss property. She stated this would shorten the field for farming and make it difficult to irrigate because water must come from the north irrigation ditch. She invited the Council to see the site with an independent engineer. She stated the property had been in the family for 75 years and that there had been no flooding during that time. She stated the property had a high value and that placing the Vine Drive alignment through the property and this stormwater project on the property would devalue the whole property. 124 May 17, 2005 She stated she had been "lied to" by the City many times and that she found out about this meeting only last Friday. She asked that this be tabled. Mark Brophy, 1109 West Harmony Road, stated the property owners should be informed before eminent domain proceedings were put on the Council agenda. He stated there were many other options for moving stormwater around. He stated the City should find a way to do this without using the "despotic power" of eminent domain. He suggested that the City appropriate $30,000 to give to Mrs. Weiss to hire a lawyer to argue for her on the real value of the property. He stated money for appraisers and lawyers should be paid by the City rather than Mrs. Weiss. Councilmember Weitkunat asked for clarification about the recommended action, i.e. that this was not the condemnation. Matson stated staff was asking permission to go to eminent domain if necessary because Mrs. Weiss had indicated repeatedly that she was not willing to grant an easement to the City. She stated staff was requesting up front approval so that eminent domain could proceed if needed. She stated the City would continue to negotiate with the Weiss family and that eminent domain would be the last option. She stated the City had ordered an appraisal and that Mrs. Weiss would have an opportunity to have an appraisal of her choosing done. She stated the City would reimburse the cost of the property owner's appraisal in accordance with City policy. Councilmember Weitkunat asked for clarification regarding the shared project referenced by Mrs. Weiss. Saye stated Larimer County was originally part of this project and was no longer participating due to funding problems. He stated the City was now asking for a 1.02 acre easement on the Weiss property and that the project had been relocated to the west to minimize the size of the easement. He stated the City was negotiating with the Lindenwood HOA for a .7 acre easement and a 13 acre easement on another neighboring property. Councilmember Weitkunat noted that there were other properties involved. Saye stated there would be three properties involved. Councilmember Weitkunat asked for clarification of the map showing the Weiss property and whether the property was approximately 110 feet by 65 feet. Saye stated the property was approximately 65 feet wide and one location. Councilmember Weitkunat noted that Mrs. Weiss seemed to indicate that half of the field would be taken. Saye stated the entire tract was roughly 100 acres and that the City was asking for 1.02 acre for the easement. Councilmember Weitkunat asked if the diversion channel and drainage would be closed or open. Saye stated it would be a grass -lined channel that would be maintained by the City. Councilmember Weitkunat asked if that would be true for the length of the diversion channel. Saye noted the diversion channel would be grass -lined roughly to the existing Lindenmeier Lake outlet channel. He stated the portion across the Weiss property would be fenced. 125 May 17, 2005 Councilmember Weitkunat asked if there would be water in the channel only during flooding conditions. Saye stated there would be water only if there was groundwater and noted that there was high groundwater in the Lindenwood area. Councilmember Weitkunat asked about the impact of the project on the irrigation of the Weiss property. Saye stated he did not believe that the irrigation would be affected because the channel was at the highest part of the property and would not intercept any irrigation. Councilmember Roy noted that Mrs. Weiss indicated that she found out about this meeting late on Friday and asked staff to address that. Matson stated she called Mrs. Weiss on Friday to let her know about the agenda item. She stated it was her understanding that Mrs. Weiss was aware that this would eventually happen. She stated she assured Mrs. Weiss that this agenda item was simply to ask for permission for eminent domain if needed, rather than actually proceeding to eminent domain. Councilmember Kastein asked about the process to analyze where stormwater improvements would be placed, how property owners were brought into the discussion, and what public meetings were held. Saye stated the Dry Creek problem had been an issue for the City and County for at least 15 years. He stated over that period of time the City and County had been working together to develop a master plan on how to control flooding in Dry Creek. He stated in 2002 the two entities hired an engineer to develop a master plan for improvements in the basin. He stated several open houses were held. Bob Smith, Stormwater Planning Manager, stated a number of meetings and open houses were held to look at concepts and that the project was at a more detailed analysis stage at this point. Councilmember Kastein asked why this authorization was needed at this point in the negotiations. Matson stated past experience showed that there was a lag time after commencement of eminent domain that could impact construction. She stated up front approval made it possible to proceed with eminent domain if needed on a more timely basis. Saye stated he had met with the Weiss family many times and that he had been told repeatedly that an easement would not be granted unless the City wanted to buy the entire farm. He stated this project had 12 separate components that would be built and that eight of those were being built around irrigation systems, ditches, lakes and reservoirs. He stated there were difficult scheduling problems. He stated staff had made an effort to develop an optimized design and "rational' easements. He stated a delay could take the construction into irrigation season or planting season. He stated staff was trying to preserve the ability to build this project. Councilmember Kastein asked if the piece that was in question was the cross hatched section on the map. Saye used visual information to show the property that was needed for the easement. City Manager Atteberry stated the City had been aware from the beginning that this easement would become the subject of an eminent domain proceeding. He stated preapproval of eminent domain was a normal way for the City to do business because of the construction delay problem. He stated he would talk with staff about how property owners could be notified of such actions. He stated he believed that it was important to preserve the option to seek preapproval of eminent domain proceedings. 126 May 17, 2005 Mayor Hutchinson asked if this action was time sensitive and whether the Council must act on it at this time. Matson stated Council action was needed to avoid construction delays. City Attorney Roy stated there would be a Second Reading of the Ordinance on June 7 and that additional discussions could occur prior to Second Reading. He stated it was important to have enough lead time to be able to go to court in a timely fashion if necessary. He suggested adoption on First Reading with direction for any additional work the Council felt was necessary prior to Second Reading. Councilmember Roy asked about the culvert or diversion under East Vine in conjunction with another project. Saye stated Dry Creek in a 100-year event could carry as much as 900 cubic feet of stormwater per second at the Vine Drive intersection. He stated there would be 500 cubic feet per second coming down the channel at the same time. He stated there was currently a 24 inch culvert under Vine Drive and that as part of this project a series of box culverts would be built under Vine Drive to carry 1,400 cubic feet per second. He stated the Street Master Plan showed the realignment of Vine Drive and that a channel or pipe system would be built to take the stormwater off of the North College business area under Vine and the railroad. Councilmember Roy asked if the diversion would be for both projects, even though this canal diversion was being built first. Saye replied in the affirmative. He stated the culvert would have the ability to handle the flows from both projects. He stated without the project there would be 6,000 cubic feet per second of flow. He noted that the irrigation structures could not be used if water was not taken out of the ditches. Mayor Hutchinson stated it appeared that a problem with an irrigation ditch to the north was being moved to Dry Creek i.e. all of the problems were being put into one place. He asked for clarification that the ditches would be used for a stretch and then the water would be taken back out to be sent back down Dry Creek. Saye replied in the affirmative. Mayor Hutchinson stated part of the Weiss property and the other properties would be removed from the flood fringe. Saye stated the floodplain came through the area and that the property owner would realize a benefit from the project because the floodplain would be vastly reduced on the property. He stated the flood fringe would be removed from a portion of the Weiss property. Councilmember Weitkunat made a motion, seconded by Councilmember Kastein, to adopt Ordinance No. 057, 2005 on First Reading. Councilmember Roy stated the City was "ahead of itself' on this. He stated the Weiss family deserved a registered letter from the City giving notification. He stated he would not support the motion. He stated the future realignment of Vine would be done to some degree at the expense of the Weiss family. He stated a project would be built to deal with one flow and that a valuable piece of real estate would be removed from the floodplain. He stated he was not comfortable with the process of eminent domain. He stated timely notice should be given. Councilmember Ohlson stated he supported improvements to the notification process. He stated he would not support the motion and that, except in an emergency situation, he would vote against any 127 May 17, 2005 measure in the future when the Council was told that it had to "vote tonight' even though work had gone forward for several years. Councilmember Weitkunat stated she would support the motion. She stated this process had been used for many years and that it was appropriate to use this process in this case. She stated a different notification process may be needed. She stated this action would authorize staff to proceed if necessary. She stated this was one of the most important projects done in the northern part of the City. She stated a "creative engineering feat' would help take the northern area out of a serious floodplain. She stated time was of the essence and that the Ordinance should be adopted. Councilmember Manvel agreed that better notification was needed and this project was important to development in the northern part of the City. He stated he would therefore support the motion. Councilmember Kastein stated "this was process was not broken." He stated he was satisfied with staff s response regarding the process to date, including discussion with this property owner. He stated he would support the motion with the understanding that staff would contact the property owner one more time prior to Second Reading to discuss the issue. Mayor Hutchinson stated he would support the First Reading adoption of the Ordinance because it was a precautionary first step. The vote on the motion was as follows: Yeas: Councilmembers Hutchinson, Kastein, Manvel and Weitkunat. Nays: Councilmembers Ohlson and Roy. THE MOTION CARRIED. Ordinance No. 058, 2005, Authorizing an Easement for a Pedestrian Bridge for Opera Gardens Lofts. Adopted on First Reading The following is staffs memorandum on this item. "FINANCIAL IMPACT The compensation for the easement across the alley will be $10,000 and the compensation for the attachment to the Civic Center Parking Structure, which will result in the loss of one parking space and costs associated with reconfiguration of parking spaces, is $16, 000. The total revenue for the Transportation/Parking Fund will be $26, 000. 128 May 17, 2005 EXECUTIVE SUMMARY The development of Opera Garden Lofts was approved as a minor amendment to the Opera Galleria, contingent upon the developer being able to provide off-street parking to the users of the new mixed -use building and also contingent upon negotiatingpermission from the Cityfor a bridge between the Opera Galleria and the Civic Center Parking Structure (" CCPS ). The developer cannot commence construction until this easement is granted. The developer has indicated that this bridge is important to make the Opera Garden Lofts project more attractive to lenders and potential purchasers of units. The Opera Gardens Lofts project will add two floors to the Opera Galleria. The easement request is to construct an above -grade pedestrian bridge from the 4th floor of the CCPS to one of the new floors of the Opera Galleria. This pedestrian bridge will not replace the existing bridge, which is a public bridge. The new bridge will be a private bridge to be used by users of the mixed -use structure. Staff has worked with the developer to negotiate the terms of the easement, which will be for a term of up to 99 years. The City may not terminate this easement during the first 31 years, which is the expected period for initial construction and mortgage financing. After that time, the City may terminate the easement with 120 days notice to the easement holder. The easement is contingent upon the developer entering into a development agreement with the City by October 31, 2005. The design of the pedestrian bridge and schedule for construction is subject to City approval. The Ordinance also makes the grant of this easement contingent upon execution of the easement for the City's public pedestrian bridge, which had been negotiated several years ago but was never signed by the Opera Galleria owner. The Ordinance authorizes the easement under the terms and conditions as discussed above, and generally in the form of Easement Agreement onfile in the City Clerk's Office. " City Manager Atteberry introduced the agenda item. Gary Diede, Transportation Services, stated there had been a question regarding whether Opera Galleria could take access to the Civic Center Parking Structure. He stated staff had been working with the applicant to determine the conditions of that access. He stated consensus had been reached between staff and the applicant regarding how to provide access through a pedestrian bridge to the Parking Structure. He stated the proposed Ordinance would allow that and would require certain payments by the applicant. Councilmember Roy stated the Opera Galleria was one of the most recognizable structures in Old Town and that the agenda material suggested that there was some support for adding two floors. He stated he would like to see a rendering of what the structure would look like and would like to know the level of support for changing the structure. Mikal Torgerson, applicant, presented information regarding the proposed changes. He stated the two floors that would be added would not be visible from College Avenue and that the design would 129 May 17, 2005 be sensitive to the historic architecture. He stated the Landmark Preservation Commission was "enthusiastic" about this design approach. He stated the only substantive comment by the Commission was that the design look at gabled roofs. He stated there would be three penthouse units with roof -top gardens. He stated the proposed bridge connecting the Parking Structure to the project would be visible. He stated the new addition would be visible from the alley down LaPorte Avenue and from the Parking Structure. He stated it would screen the existing mechanical units on the Opera Galleria. Councilmember Roy asked for a frontscape. Mr. Torgerson showed visual information giving a "pedestrian -eye view" from the east side of College Avenue. He noted that the project would not be visible from that perspective. Councilmember Roy asked how this renovation would impact historic designation and grants. Mr. Torgerson stated the portion of the building being added onto was the portion that was added onto the historic building in 1989 and was adjacent to the historic structure. He stated it was his understanding that this would not have an impact on the historic status of the project. Councilmember Roy asked staff about the effect of the project on the historic structure. Karen McWilliams, Historic Preservation Planner, stated the property was designated on the National Register of Historic Places. She stated the project plans were reviewed by staff and the Landmark Preservation Commission. She stated everyone was in agreement that it would meet the nationally recognized Secretary of Interior Standards relating to alterations to historic structures. Councilmember Roy asked if this determination had been made only at the local level. McWilliams stated the National Register program was administered by the Colorado Historical Society. She stated the City was a Certified Local Government and as such was able to make such determinations on behalf of the Colorado Historical Society. She stated the design made the addition virtually invisible from the streetscape and that the addition was being made to a previous addition. She stated there was minimal impact to the historic structure and viewshed. Councilmember Ohlson asked why a project of this size was considered as a Minor Amendment to the Opera Galleria PUD. City Manager Roy stated he would need time to respond to the question. Councilmember Ohlson asked the applicant about his understanding of that review. Mr. Torgerson stated the project was approved almost two years ago contingent on the bridge easement and the provision of proper parking. He stated his recollection was that this was in the approved Opera Galleria PUD and that additions within the PUD were processed as Minor Amendments. Councilmember Ohlson stated he would address that matter under comments. He asked for an explanation of the language in the read -before memo that indicated that the project "would have no significant effect on the historic status of the building." McWilliams stated any kind of construction on the building would have an effect. She stated the terminology used with regard to National Register and local landmark properties was whether it would be a "significant effect," i.e. a change that would be obvious, notable, etc. and whether the effect would be adverse or positive. She stated in this case, because of the placement of the dwelling units on new construction in a manner that 130 May 17, 2005 would not be visible from most corridors, the determination was that this would not have any "significant effect." Councilmember Ohlson asked for clarification that this addition would not be on the historic structure. McWilliams stated it was on an addition that was already added at the rear of the historic structure in the 1980's. Councilmember Ohlson asked if the City was getting a fair value for the taxpayers. Helen Matson, Real Estate Manager, stated the $10,000 for the easement was figured on square footage and at a 33% value because of the low impact on the alley below. She noted that some parking spaces were being lost. Diede stated one parking space would be lost due to access to the pedestrian bridge and that the value of that was determined by the cost of the parking structure divided by the number of parking spaces with an adjustment because this was a handicapped parking space ($16,000). Councilmember Ohlson asked to see the streetscape view again, noting that one person indicated that the project would be "virtually invisible" and the applicant indicated that it would be "invisible" from College Avenue. Mr. Torgerson stated the applicant found that it was invisible except for a "small sliver of the roof." City Attorney Roy stated in general the Land Use Code distinguished between Minor and Major Amendments and established different processes. He stated the CPES was in the position to decide whether it was a Minor Amendment (to go through an administrative process) or a Major Amendment (to go through a Type 1 or Type 2 Review). He stated staff would provide information to the Council before Second Reading on why this was considered to be a Minor Amendment. Mayor Hutchinson noted that this agenda item was authorization for an easement rather than the anything to do with the addition. City Attorney Roy agreed. Councilmember Roy stated an e-mail was sent to Council on May 16 indicating that each on -street parking stall could generate up to $300,000 in annual retail sales. He stated the agenda item summary for this indicated that the developer could not commence construction until the easement was granted and that the developer had indicated that this easement was important to make the Opera Garden Lofts project more attractive to lenders and potential purchasers of units. He stated there would be at least a 31-year arrangement and that the $300,000 value of a parking space was in last year's dollars. Councilmember Kastein stated this was not on -street parking. Diede stated it was fourth level parking in the parking garage. Councilmember Kastein asked if the $300,000 would apply to the fourth level in the parking garage. City Manager Atteberry stated Councilmember Roy was referring to a study done several years ago by a consultant on the Downtown Strategic Plan. He stated the value of retail dollars generated per parking space identified in the plan applied specifically to on -street parking. He stated the handicapped parking space in this matter was on the fourth floor of the parking structure and that the value was the capital value of the lost parking space. 131 May 17, 2005 Councilmember Roy stated for at least 31 years and up to 99 years the City would capture $16,000 for a space that would be used exclusively by the private tenants of a development that would be "high end." He stated he did not believe that $16,000 would capture what the lost parking space was worth over 31 years. Matson stated the parking space would be used for the construction of the bridge rather than for occupancy by the Opera Lofts residents and that those residents would buy permits for parking each year. She stated the value was calculated on the capital cost of the space. Councilmember Roy made a motion, seconded by Councilmember Manvel, to adopt Ordinance No. 058, 2005 on First Reading. Councilmember Roy stated this kind of in -fill redevelopment was the right direction. He stated he did have concerns about marketing something below the fair value and that he did have a concern about the loss of a public parking space to create an opportunity for private citizens to have an "exceptional lifestyle" in the downtown. He stated the project was well thought out and that he supported this type of activity in the downtown. He stated this kind of arrangement needed to be made equitably for all the taxpayers rather than to the advantage of the private residents and development principals. Councilmember Weitkunat asked if the easement was being granted because of the City alley or because of the parking lot. Matson stated the air easement was being granted over the City alley and attached to the City Parking Structure. Councilmember Ohlson stated he looked forward to seeing the explanation of why this project was a Minor Amendment. He stated he did support in -fill redevelopment projects and that this was a worthwhile project even if the City did not get "market value" in the trade off. He stated he wanted to see that kind of information (opportunity costs, lost revenue, etc.) in the staff reports on this kind of agenda item in the future i.e. the Council needed to see the cost for loss of the parking spot in this case. He stated the information should be available so that the Council could make a decision on whether to "help" such projects, knowing all of the costs to the City. He stated he hoped that the actual project matched what was seen on the computer graphics as far as elevations. He stated he was supportive of the project and would support the motion. Councilmember Manvel stated the City would lose revenue and would also gain revenue due to the residential occupancy. He noted that the fourth floor of the Parking Structure was largely empty much of the time. Councilmember Kastein stated this was an excellent project and that it would have a positive effect on the downtown. He stated residential units would be built to help keep the Old Town vibrant. He stated he was very supportive of the City's part in this easement. Mayor Hutchinson stated he was comfortable with the parking space situation. The vote on the motion was as follows: Yeas: Councilmembers Hutchinson, Kastein, Manvel, Ohlson, Roy and Weitkunat. Nays: None. 132 " fa"TCO L INEONUMCI9a Other Business May 17, zoos Mayor Hutchinson stated the Leadership Team had discussed the Economic Vitality and Sustain ability Action Group (EVSAG) and a loss of momentum. He stated the hope was to build on EVSAG's work on economic strategies and that the discussion was that the work of the EVSAG would be "trivialized" or "lost" without an economic action plan. He stated the Leadership Team discussed rechartering the EVSAG to emphasize the group's activities in light of economic conditions. He stated the economy was a top issue in the recent election campaigns and that he believed that this Council was poised to play a more active role in economic planning. He stated he would like the Council to discuss this in a structured way and that he would like support to ask the City Manager to schedule a time to discuss these issues in a focused way with a meeting facilitator. He stated the main goal was to "harness the brainpower and accomplishments" of the EVSAG and make the strategies part of the planning process. Councilmember Ohlson noted that there were other major issues, including the budget and policy agenda processes. He stated the economy was one of the seven key points adopted by the Council and that it would now be receiving special consideration. Mayor Hutchinson stated this was a "proactive" Council and that this would allow a detailed discussion to determine whether the Council supported "kick starting" work on one of the most important issues, i.e. attention to the economy. He stated he hoped to focus on getting the larger process started to keep the EVSAG from losing momentum. Councilmember Roy stated the original EVSAG created a large array of options and choices (branding, niche marketing, etc.). He questioned whether the second EVSAG was "losing steam" and noted that the efforts of the original EVSAG were still having a "powerful" and "positive" effect in the community. Councilmember Kastein stated he believed that the Council would identify development of an economic plan as a key element during discussions on the budget and the policy agenda. He stated he supported having a discussion on the economic issues sooner rather than later. Councilmember Ohlson stated there would be discussions on the policy agenda and that those discussions would include the economy. He questioned pulling out one of the items for special discussion and stated this could send a message to staff and the community that the other six key outcomes were not as "valued." Councilmember Roy asked for clarification regarding the Mayor's concerns about the current EVSAG. Mayor Hutchinson stated he was concerned that the first EVSAG did some "wonderful work" that was not part of a plan of action. He stated the same thing was happening with the second EVSAG. He stated the City had chartered a group of "brilliant people" representing a cross section of the 133 May 17, 2005 community and that their excellent work was not being turned into any kind of action plan. He stated an economic action plan would take some of that work and get staff to work on some of the issues. Councilmember Roy asked if the Mayor was suggesting a new group. Mayor Hutchinson stated he was not suggesting a new group. He stated the concern was that the work done by EVSAG was not being worked on by the staff. He stated he would like to see the work of the EVSAG be the core of an action plan to revitalize the economy. He stated the economy was the number one issue in the community. Councilmember Roy asked about the status of an Economic Advisor position on staff. City Manager Atteberry stated his intent was to advertise the position as soon as possible. He stated he would e- mail the job description and salary range to the Council. Councilmember Roy stated this would be one of the first steps in addressing the Mayor's concerns. Mayor Hutchinson stated this would be a complementary action. He stated the economic plan did not hinge on hiring that person. He stated he wanted to get the process started on something that would take awhile and to give the EVSAG more "directed employment" in working on an economic plan. He stated the EVSAG had done the strategic work and had not yet done an economic plan. Councilmember Ohlson stated the Council goal was to get 90% of the 80% agreed on done. He stated he was not sure if something else would not get done if this was to get done and if this would send a message that this was a higher priority than anything else. He stated there were many other things that were equally important. Mayor Hutchinson stated this was a unique situation because the EVSAG had already been created and had done some "brilliant work." Councilmember Weitkunat stated the EVSAG had provided information for the retreat on what had been done and that the EVSAG had no direction from Council on what came next. She stated the Council needed to decide on the direction to give the EVSAG. Mayor Hutchinson stated he would like to see a discussion of the EVSAG and its work and how that group should proceed with an action plan. He noted that he did not believe that there would be much Council or staff work needed on this until well after the budget process was concluded. Councilmember Ohlson stated he would support having that discussion. Mayor Hutchinson asked the City Manager to schedule a structured and facilitated discussion on this matter. 134 May 17, 2005 Councilmember Weitkunat noted that there was no opportunity for the public to comment on the Consent Calendar portion of the agenda without pulling an item for separate discussion at the end of the meeting. Councilmember Kastein stated there could be an opportunity for public comment before or after the motion to approve the Consent Calendar. Councilmember Manvel stated this option could be offered. Mayor Hutchinson noted that citizen and Council comments on the Consent Calendar could take place before the vote on the Consent Calendar. Councilmember Ohlson stated this would not work because items had to be pulled from the Consent Calendar before that. He stated the problem was having audience members and staff wait until the end of the meeting just to make a comment on a pulled Consent Calendar item. He suggested having staff look at ways to avoid that situation. City Attorney Roy stated the Mayor could ask if anyone wanted to comment on or pull a Consent Calendar item and could explain the difference. Mayor Hutchinson asked staff to work on that and make suggestions on how this could be handled. Adjournment The meeting adjourned at 9:30 p.m. Mayor ATTEST: 135