HomeMy WebLinkAboutMINUTES-11/05/1991-Regular' November 5, 1991
COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
Council -Manager Form of Government
Regular Meeting - 6:30 p.m.
A regular meeting of the Council of the City of Fort Collins was held on Tuesday,
November 5, 1991, at 6:30 p.m. in the Council Chambers of the City of Fort
Collins City Hall. Roll call was answered by the following Councilmembers:
Edwards, Fromme, Kirkpatrick, Maxey and Winokur.
Councilmembers absent: Azari and Horak.
Staff Members Present: Burkett, Krajicek, Roy.
Citizen Participation
Nancy York, 130 S. Whitcomb, urged a more aggressive bicycle transportation
environment. She further encouraged recycling, waste minimization, and energy
conservation efforts.
Jerry Richardson, LaPorte, President of Mountain Flyers Aviation, Inc., the fixed
base operator at the Fort Collins -Loveland Airport, requested Council assistance
in screening applications for an annual scholarship for a private pilot's
license.
Jack Fisher, 37295 Northwest Drive, Windsor, asked Council support for a non-
profit organization called Racing Against Time which would provide automobile -
related activities for teens.
Mary Fagan Bates, 609 Duke, expressed thanks to the Bill of Rights celebration
supporters and sponsors and invited participation in the celebration at Colorado
State University on November 9.
James Crumb, 636 Hanna, representing ASCSU, reiterated the request by ASCSU to
present a public forum by the end of the semester to discuss the Old Town
incident on July 4th. He requested changes in the noise ordinance to broaden the
definitions. He further requested a voter registration office at Colorado State
University.
Mayor Kirkpatrick responded that a letter would be sent providing information
concerning the activities of the Health and Safety Committee, discussion of
public policy on complaints against police officers, and the possibility of a
presentation to ASCSU
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November 5, 1991
Agenda Review
City Manager Steve Burkett requested that Item #9, Hearing and First Reading of
Ordinance No. 124, 1991 Amending Section 29-678(7) of the Code of The City of
Fort Collins Eliminating the Requirement to Convert Existing Overhead Utility
Facilities to Underground Prior To Issuance Of a Building Permit, and Item # 28,
Resolution 91-145 Excusing the Absences of Councilmember Fromme From Past Council
Meetings, be withdrawn from the agenda.
Councilmember Fromme requested that Item #17, Resolution 91-141 Making Findings
of Fact Regarding the Appeal of the Planning and Zoning Board Approval of the
Laurie Subdivision PUD, Preliminary Plan, and Upholding the Decision of the
Board, be withdrawn from the Consent Calendar
Consent Calendar
This Calendar is intended to allow the City.Council to spend its time and energy
on the important items on a lengthy agenda. Staff recommends approval of the
Consent Calendar. Anyone may request an item on this calendar to be "pulled" off
the Consent Calendar and considered separately. Agenda items pulled from the
Consent Calendar will be considered separately under Agenda Item #22, Pulled
Consent Items.
7.
EM
Consider aoproval of the minutes of the regular meeting of September 3.
This Ordinance, which was unanimously adopted on First Reading on October
15, amends certain sections of the Zoning Code. These changes are
considered to be minor and/or "housekeeping" in nature. Some of the
proposed amendments are necessary due to previous revisions of the Code or
situations presently not addressed which have recently come to the
attention of staff. Other amendments are intended to add clarification to
the Code in order to facilitate interpretation and enforcement.
Ordinance No. 85, 1991 adopted by City Council on July 16, 1991 amended
various chapters of the City Code including Section 26-495 entitled
"Duties of Storm Drainage Board". Revision were made to reflect current
duties of the Storm Drainage Board in the area of advising Council on
technical and policy matters relating to stormwater management and
designating the Storm Drainage Board as the Hearing Board for variances to
the City's "Storm Drainage Design Criteria and Construction Standards."
Section 2, Division 30 of the Code relates to the Storm Drainage Board and
a
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November 5, 1991
specifically Section 2-413 identifies the same duties of the Storm
Drainage Board as shown in Section 26-495. This ordinance, which was
unanimously adopted on First Reading on October 15, revises Section 2-413
and makes the two sections of the Code consistent.
The recommended changes are in response to Section 2 - Item J of
Resolution 91-99 adopting Council goals and work policy specifically
addressing North College Avenue revitalization. Currently, the Code
requires the conversion of existing low voltage overhead electric power
lines to underground as a condition for development. Non -city utilities
have overhead lines in the North College area which would have to be
converted in order for development to occur. In the past, this
requirement has presented a deterrent to development. This ordinance
deletes the conversion requirement, thus removing a significant financial
deterrent to development.
The property owner, David Haimson, is initiating this request for Local
Landmark Designation for the "Shenk House," located at 629 West Mountain
Avenue. A public hearing was held by the Commission on October 2, 1991,
at which the Commission unanimously voted to recommend designation of this
property.
On October 21, 1991, the Planning and Zoning Board approved the Fairbrooke
5th Filing P.U.D. In addition, at a public hearing on October 14, 1991,
the Planning Director approved the Fairbrooke 4th Filing P.U.D., a Minor
Subdivision. Together, the Fairbrooke 4th and 5th Filings replat most of
the property previously platted by the Charleston P.U.D. First Replat.
Charleston Way is the only street which was constructed on dedicated
right-of-way in the Charleston P.U.D. First Replat. The new development,
Fairbrooke 5th Filing, utilizes the existing street and dedicates the
right-of-way necessary for Charleston Way as it is constructed. In
addition, to accommodate the new configuration of lots in the Fairbrooke
4th and 5th Filings, the right-of-way dedicated for Rutledge Court has
changed and hence the previously platted right-of-way is no longer needed.
Therefore, the final action needed is to vacate the rights -of -way
previously platted by the Charleston P.U.D. First Replat. This Ordinance
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12.
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November 5, 1991
in no way affects the new street rights -of -way described and dedicated on
the Fairbrooke 5th Filing P.U.D.
The Fort Collins Youth Baseball Association has leased a building in City
Park at 211 South Bryan since 1983. The lease has lapsed, and this
ordinance would establish a new five-year lease. Fort Collins Youth
Baseball uses this building as an office and base of operations for its
program. It is also used for year-round storage for program equipment,
uniforms, and records. In lieu of lease payments, Youth Baseball is
responsible for paying all utilities and for keeping the building in good
repair.
The City Charter authorizes the City Council to provide by ordinance for
payment of any expense from prior year reserves. It also authorizes the
City Council, after the expiration of eight months of the budget year, to
appropriate actual revenue realized in excess of budget estimates. The
Charter also authorizes the City Council to appropriate unanticipated
revenue received as a result of rate or fee increases or new revenue
sources. Additionally it authorizes the City Council to transfer any
unexpended appropriated amounts from one fund to another upon
recommendation of the City Manager.
These items are historically presented in November in order to "clean-up"
any outstanding issues which have arisen during the year. If these
appropriations are not approved, the City runs the risk of receiving an
unfavorable opinion from its auditors, or being in violation of the City
Charter if appropriations are exceeded, or having to reduce expenditures
even though revenue and reimbursements have been received.
For the past four years, Fort Collins Police Services has applied for
project funding to the Colorado Division of Criminal Justice for federal
drug grant monies. For project year 1991/1992 Police Services has again
joined with the Loveland Police Department and.Larimer County Sheriff's
Department, in one application, for a multijurisdictional project to be
administered by Police Services. As administrator of the grant, Police
November 5, 1991
Services will assure funding to the other participating agencies for their
share of the federal funds.
The City has recently received notification of a grant award in the amount
of $104,480. The participating agencies will be providing match monies in
the amount of $146,051. Fort Collins portion of the match is $70,507
which is met through application of the budgeted salary and fringe
benefits of an existing officer assigned to the Special Investigations
Unit and the salary and benefits of a Secretary I who is also assigned to
that unit.
15. Items Relating to the Expansion and Upgrade of the Citv's Pavement Marking
Program.
A. Resolution 91-139 Authorizing the Mayor to Execute an
Intergovernmental Agreement with the Colorado Department of
Transportation Allocating $100,000 of the City of Fort Collins'
Federal -Aid Urban System (FAUS) Money to the Pavement Marking
Upgrade Project.
B. Hearing and First Reading of Ordinance No. 130, 1991, Appropriating
Unanticipated Revenue in the Streets Department portion of the
Transportation Fund.
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17.
This Resolution authorizes the approval of an intergovernmental agreement
with the Colorado Department of Transportation allocating $100,000 for the
upgrading of crosswalks, pavement markings, railroad crossing stencils,
and bike trail markings. These funds are to be used for material
procurement and installation of the pavement markings.
This Resolution authorizes the purchase of land from the Poudre School
District R-1 for a neighborhood park site in the Clarendon Hills area in
southwest Fort Collins. This 10.271.acre site is adjacent to the new
southwest elementary school, and is near Front Range Community College.
A joint school/park site will allow for shared facilities such as parking
and play fields, similar to the Troutman Park/Lopez Elementary School
location.
On August 26, 1991 the Planning and Zoning Board voted 7-0 to approve the
Laurie Subdivision PUD, Preliminary Plan. On September 9, 1991, an appeal
of that final decision was made by Ginger L. Hitz.
November 5, 1991 '
On October 15, 1991, Council voted 5-0 to uphold the decision of the
Planning and Zoning Board. In order to complete the record regarding this
appeal, the Council should adopt a Resolution making findings of fact and
finalizing its decision on the appeal.
Resolution 91-142 Making Appointments to the Electric Board.
At its August 20, 1991 meeting, Council adopted on second reading
Ordinance No. 100, 1991 creating an Electric Board. The Board's duties
are to advise the Council on policy matters pertaining to the municipal
electric system, to act as the final appeal and hearing body for customer
complaints, except as is otherwise provided in Chapter 26, Article XII of
the Code regarding termination of utility service, and to act as a
sounding board to staff for the purpose of identifying the ratepayers'
service delivery expectations.
Following creation of the Board,
advertisements
were placed.
Councilmembers Horak and Azari conducted
interviews and
are recommending
the following individuals be appointed
to the Board to
serve terms as
indicated below.
Name
Expiration of Term
Dane Brandt
July 1,
1993
'
William Orendorff
July 1,
1993
Larry Walsh
July 1,
1994
George Smart
July 1,
1994
Barbara Rutstein
July 1,
1995
Mark Fidrych
July 1,
1995
John Allum
July 1,
1995
19. Resolution 91-143 Making Appointments to Various Boards and Commissions.
Vacancies exist on the Commission on Disability due to the resignations of
Lori Gehricke and Jeanne Morris, and a term deemed vacant when it was
discovered that Dale Dirks did not live within the Urban Growth Area.
Councilmembers Kirkpatrick and Maxey reviewed the applications on file and
are recommending that the individuals listed below be appointed to fill
the terms as set forth after each name.
Name Exoiration of Term
Debra Kalin July 1, 1992
Robert Porter July 1, 1993
Ray Sanderson July 1, 1994
A vacancy currently exists on the Commission on the Status of Women due to I
the resignation of Douglas Gertner. Councilmembers Azari and Kirkpatrick
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November 5, 1991
reviewed the applications on file and are recommending that Betty Medina
be appointed to fill the term which expires July 1, 1993.
Councilmembers Horak and Maxey reviewed the applications on file for the
Storm Drainage Board and are recommending that Joseph Bergquist be
appointed to fill a vacancy created by the resignation of Mike Applegate.
The term expires July 1, 1992.
A vacancy currently exists on the Zoning Board of Appeals due to the
resignation of Jim Garber. Applications were solicited in September and
October and Councilmembers Kirkpatrick and Maxey conducted interviews on
October 29. Councilmembers Kirkpatrick and Maxey are recommending that
Glenn Perica be appointed to fill the vacant term which expires July 1,
1995.
20. Resolution 91-
At its meeting on October 11, the Council Legislative Review Committee
recommended that Mayor Pro Tem Ann Azari be appointed to represent the
City of Fort Collins on the Colorado Municipal League Policy Committee.
' Appointments to the CML Policy Committee are made each fall and members
serve for a one-year period. Each member municipality of the League is
entitled to a representative, and all cities over 100,000 are entitled to
designate two representatives.
21. Routine Deeds and Easements.
a. Powerline easement from Theo C. Otte and Phoebe Weitz Otte, 2425 W.
Elizabeth, needed to install new streetlight. Monetary
consideration: $10.
b. Powerline easement from Jeffrey M. Donaldson & Guy G. Egging, 517 W.
Myrtle Street, needed to underground existing overhead electric
services. Monetary consideration: $10.
C. Powerline easement from Leon R. and Ruth B. Hetherington, 627 Cowan,
needed to provide electric service and make provisions for future
conversion of the electric system in the area to underground.
Monetary consideration: $10.
Ordinances on Second Reading were read by title by City Clerk Wanda Krajicek.
Item #7.
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Item #8. Second Reading of Ordinance No. 118, 1991, Amending Section 2-413 of
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November 5, 1991 '
the Code Pertaining to the Storm Drainage Board.
Ordinances on First Reading were read by title by City Clerk Wanda Krajicek.
Item #9.
Item #10.
Item #11.
Item #12.
Item #13.
Item #14.
Item #15B.
Transportation Fund.
Councilmember Edwards made a motion, seconded by Councilmember Winokur, to adopt
and approve all items not removed from the Consent Calendar. Yeas:
Councilmembers Edwards, Fromme, Kirkpatrick, Maxey and Winokur. Nays: None.
THE MOTION CARRIED.
Resolution 91-141 Making Findings of Fact
Regarding the Appeal of the Planning and Zoning Board
Approval of the Laurie Subdivision PUD, Preliminary
Plan, and Upholding the Decision of the Board. Adopted
The following is staff's memorandum on this item:
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"EXECUTIVE SUMMARY
November 5, 1991
On August 26, 1991 the Planning and Zoning Board voted 7-0 to approve the Laurie
Subdivision PUD, Preliminary Plan. On September 9, 1991, an appeal of that final
decision was made by Ginger L. Hitz.
On October 15, 1991, Council voted 5-0 to uphold the decision of the Planning and
Zoning Board. In order to complete the record regarding this appeal, the Council
should adopt a Resolution making findings of fact and finalizing its decision on
the appeal.
BACKGROUND:
The appellant's notice of appeal was based on the allegation that:
The Planning and Zoning Board failed to conduct a fair hearing in that:
1. The board considered evidence relevant to its findings which was
substantially false or grossly misleading.
At the October 15, 1991 hearing on this matter, Council considered the testimony
of City staff, the appellant and the applicant of the Laurie Subdivision PUD.
' In subsequent discussion at this hearing, Council determined that the Planning
and Zoning Board did not consider evidence relevant to its findings that was
substantially false or grossly misleading; and determined to uphold the decision
of the Board."
Councilmember Fromme withdrew from the discussion on this item due to a perceived
conflict of interest.
Councilmember Edwards made a motion, seconded by Councilmember Maxey, to adopt
Resolution 91-141. Yeas: Councilmembers Edwards, Kirkpatrick, Maxey and Winokur.
Nays: None. (Councilmember Fromme withdrawn)
THE MOTION CARRIED.
Councilmember Reports
Councilmember Fromme expressed thanks to the Council and Fort Collins for their
support during her absence.
Mayor Kirkpatrick stated she would be participating in .a National Endowment for
-
the Arts program on urban design.
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November 5, 1991 '
Appeal of the September 23, 1991 Final Decision
of the Planning and Zoning Board Approving, With Conditions,
the Request for Administrative Change to Nash Finch/Steele's
Market at Harmony Market, Filing Three, Final P.U.D.,
Planning and Zoning Decision Overturned
The following is staff's memorandum on this item:
"EXECUTIVE SUMMARY:
On September 23, 1991, the Planning and Zoning Board voted 6-0 to approve, with
three conditions, the request for an administrative change to Nash Finch/Steele's
Market at Harmony Market, Filing Three, Final P.U.D. The appeal relates only to
the locational aspect of condition number three of the Planning and Zoning
Board's final decision. Condition number three reads as follows:
"The three signs on the lower fascia be lowered off the fascia and be of
blue color to carry the established signage theme across all three anchors and
to promote consistency."
The project was a referral of an administrative change to the Planning and Zoning
Board. The applicant's request was to add wall signage to the north elevation
of Nash Finch/Steele's Market over the allowable amount approved on the original ,
P.U.D. The Planning and Zoning Board approved the request subject to three
conditions. Conditions number one and two were agreed to by the applicant. The
third condition relates to the proposed location of three, individual lettered
signs advertising separate and distinct tenants within the structure. The appeal
takes issue with the locational aspect of the condition number three, not the
color aspect. It is the appellant's desire to place three, individual -lettered,
wall signs upon the lower fascia of the north elevation.
SUMMARY OF THE APPELLANT'S ALLEGATIONS:
The appellant alleges that the Planning and Zoning Board abused its discretion,
in that its decision was arbitrary and without the support of competent evidence
in the record, and that the Board failed to receive all relevant evidence offered
by the appellant.
SCOPE OF COUNCIL CONSIDERATION:
The issue that Council must resolve in this appeal is as follows:
Did the board fail to conduct a fair hearing by:
Abusing its discretion, in that its decision was arbitrary and without the
support of competent evidence in the record?
Improperly failing to receive all relevant evidence offered by the ,
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November 5, 1991
appellant?
The attached background memorandum contains the appellant's specific allegations
and a summary of the public record."
City Attorney Steve Roy explained the appeal procedure.
Mayor Susan Kirkpatrick acknowledged a potential perceived conflict of interest
but stated she believed that her ability to participate objectively in the appeal
was not impaired.
Councilmember Maxey acknowledged an aircraft partnership with one of the proposed
tenants but stated his belief that. this partnership would not affect his
participation or decision on the appeal.
Councilmember Winokur made a motion, seconded by Councilmember Edwards, to hear
the appeal on the basis that the grounds alleged conform to the requirements of
the City Code. Yeas: Councilmembers Edwards, Fromme, Kirkpatrick, Maxey and
Winokur. Nays: None.
THE MOTION CARRIED.
' City Planner Ted Shepard, project planner, made a presentation.
Greg Fisher, project architect for the new building with Neenan Company,
outlined arguments supporting the grounds for the appeal.
Russ Kates, an owner of Steele's Market, supported the signage request, stating
that a travel agency, dry cleaner and mail box rental are not businesses
typically located in a grocery store.
Bill Brown, owner of Ambassador Travel, supported the signage request.
Kathy Anderson, co-owner of Mail Boxes, etc., explained that the franchise is an
independent business tenant which needs visibility.
Bill Burger, Country Cleaners owner, supported the signage request.
Councilmember Edwards made a motion, seconded by Councilmember Maxey, to overturn
the decision of the Planning and Zoning Board and grant approval of the signage
request of the appellant. Based on the testimony and review of the record, the
Planning & Zoning Board was unable to establish a relationship between the
location of the signs and the uses of those businesses. The decision made by the
Board does not conform to All Development Criteria #233 or 246.
City Attorney Roy clarified that if Councilmember Edwards' motion passed, it
would not be necessary to address the other ground for the appeal.
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November 5, 1991 '
Councilmember Fromme inquired if Steele's Market attempted to give evidence that
the Board refused to receive.
Greg Fisher replied that the evidence was presented, but the Board focused on
other issues and overlooked some issues brought up early in the presentation.
Councilmember Winokur spoke in support of the motion.
Mayor Kirkpatrick supported the motion.
Councilmember Maxey, after referencing a citizen letter of concern, supported the
motion.
The vote on Councilmember Edwards' motion to overturn the decision of the
Planning and Zoning Board and.grant the request of the appellant was as follows:
Yeas: Councilmembers Edwards, Fromme, Kirkpatrick, Maxey and Winokur. Nays:
None.
THE MOTION CARRIED.
Ordinance No. 131, 1991, Authorizing the Issuance
of Storm Drainage Revenue Bonds Series 1991 Dated '
December 1, 1991 in the Aggregate
Principal Amount of $6,235,000, Adopted on First Reading
The following is staff's memorandum on this item:
"FINANCIAL IMPACT
The Stormwater Utility proposed 1991 Budget identified bond proceeds in the
amount of $5,133,700 in 1992 and $1,216,600 in 1995. To take advantage of the
extremely favorable market for bonds, staff is proposing to combine the two
issuances into one in the amount of $6,235,000 and to market those bonds before
the end of the year. This would amount to savings of about $167,300 in bond
amount, debt service, bank qualified and bond insurance costs. The debt service
on the bonds will be paid from the revenues generated by the Stormwater Utility
monthly capital fees and developer basin fees. The combined coverage for the
proposed 1991 bonds and the bonds issued by the utility in 1988 is 1.5% in 1993
and 2.29% in 2003.
1992 1997 Increase over 5 years
Minimum fee $1.90 $3.58 $1.62
Maximum fee $3.58 $3.94 $0.36
EXECUTIVE SUMMARY:
This Ordinance provides for the issuance of $6,235,000 of Storm Drainage revenue '
bonds to cover the cost of capital projects in the City's storm drainage system.
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' November 5, 1991
The proposed 1992 Budget identified the issuance of revenue bonds for the
Stormwater Utility. The market is extremely favorable for the issuance of bonds,
and this Ordinance provides for the issuance of $6,235,000 of Storm Drainage
revenue bonds before the end of the year to take advantage of this market. The
net proceeds of the sale of the bonds are to be expended for the acquisition of
ROW, design, and construction of improvements in the Stormwater Utility capital
improvements program. Capital projects are recommended that protect the health,
property, safety and welfare of existing and future basin inhabitants where the
total benefits are greater than the costs. .The debt service on the bonds will
be paid from the revenues generated by the Stormwater Utility monthly capital
fees and developer basin fees from those basins using the bonds. By using debt
service financing for capital projects, the cost of improvements are spread over
time which helps to level out fees. It also allows for future development in the
basin and helps pay for improvements of benefit to basin inhabitants.
The Finance Committee has reviewed this bond issue.
BACKGROUND:
Since the inception of the Stormwater Utility in 1980, it has been anticipated
that revenue bonds would be issued to assist in the financing of capital
improvements for the utility allowing the cost of improvements to be spread over
' time. The debt service associated with bond issuances is paid by monthly capital
fees. The projected capital project needs of the Stormwater Utility for 1992 and
the next three years are great enough to warrant the issuance of these bonds.
The proposed 1992 Budget for the Stormwater Utility included a provision to issue
bonds. The proposed 1992 Budget estimated a bond issuance in the amount of
$5,133,700 and an additional issuance in 1995 in the amount of $1,216,000. The
Storm Drainage Board recommended approval of the proposed 1992 budget. Presently
the market for bonds is extremely favorable. Current interest rates are
approximately 6.587, the lowest the market has been in 10 years. The 1988 Storm
Drainage bond issuance received a 7.62Y interest rate. To take advantage of this
market staff has combined the proposed 1992 and 1995 issuances into one issuance
in the amount of $6,235,000 and propose to issue those bonds before the end of
the year.
The Storm Drainage Board has discussed this bond issuance and is satisfied that
there is a need for the capital projects and recommends approval of the issuance
of the bonds at this time to take advantage of the market. A recommendation from
the Board and excerpts of the minutes are also attached.
The improvements to be funded by the issuance of these bonds include right-of-way
acquisition, design, installation and construction of grass -lined open channels,
spi11 structures, storm sewer, regional detention ponds, box culverts, street and
culvert crossings and canal improvements in six of the City's nine storm drainage
basins as follows:
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Dry Creek Basin $ 396,000
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November 5, 1991 '
Fossil Creek Basin $ 480,000
McClelland -Mail Creek Basin $ 283,101
Spring Creek Basin $1,100,000
Foothills Basin $ 900,000
Canal Importation Basin $2,278,000
$5,437,101
Attached is a detailed explanation of the proposed capital projects and a map
locating the projects in the basins in the City.
Marketability of the utility's 1988 bonds was enhanced by a rating of A-1 from
Moody's Investor Services in New York. Contacts with Moody indicate that rating
is continuing. The range of Moody's ratings, in ascending order, is Baa, Baa-1,
A, A-1, AA and AAA. A-1 is an extremely favorable utility bond rating which is
a strong, positive comment on the Stormwater Utility and its underlying credit.
Other A-1 utility bonds include those of the Denver Water Board, Platte River
Power Authority, the Northern Colorado Water Conservancy District and the Metro
Denver Sewer Disposal Authority, all of which have an extensive operating and
rating history.
The use of bond proceeds are as follows:
Reserve Fund $ 623,500 '
Costs of Issuance $ 43,312
Insurance Costs()) $ 53,149
Underwriters' Discount(2) $ 77,938
Storm Drainage Capital Projects $5,437,101
Total Bond Proceeds $6,235,000
(1) Insurance on the bonds will only take place if the benefits exceed costs.
(2) This amount (1.25%) is the maximum amount anticipated as the underwriters'
discount.
Bonds will be marketed upon passage of the Ordinance on First Reading. Interest
rates will then be available and inserted in the Ordinance prior to Second
Reading."
Finance Director Alan Krcmarik explained the financing of the bonds in the
favorable bond market.
Councilmember Winokur made a motion, seconded by Councilmember Maxey, to adopt
Ordinance No. 131, 1991 on First Reading. '
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November 5, 1991
Councilmember Winokur clarified that rate increases in the Stormwater Utility
will fund long-term capital improvements and are not due .to the issuance of these.
bonds. He inquired about the $623,000 reserve fund.
Krcmarik replied that in order to improve the security for the bondholders and
obtain a good rating on revenue bonds, money is borrowed and placed in a reserve
fund. He outlined the bond process. Issuing the bonds in 1991 will maximize the
benefits to the City. Staff is watching the market closely.
Councilmember Maxey asked about improvements on properties outside the City
limits.
Stormwater Civil Engineer Susan Hayes replied there is no mechanism to collect
funds for properties outside the City limits. As property is annexed, it would
fall under the funding program and would pay the monthly fees. The County does
not collect monthly fees nor development fees. The City has been working with
the County to try to establish those fees.
Councilmember Maxey clarified that the benefits of marketing the bonds early
don't accrue to the City but to the drainage basins by allowing projects to be
built more quickly.
' Krcmarik clarified that rating agencies view this debt (utility debt) as separate
from general government tax -supported debt. The total outstanding debt will be
$156 million including this issue.
Councilmember Winokur supported the issuance of the bonds at this time as the
best way to pay for the needed capital improvements.
Councilmember Edwards supported the borrowing of money to make the storm drainage
improvements in order to protect property and the welfare of the community.
Mayor Kirkpatrick commended the existence of the Stormwater Utility and the
commitment of this capital improvement.
The vote on Councilmember Winokur's motion to adopt Ordinance No. 131, 1991 on
First Reading was as follows: Yeas: Councilmembers Edwards, Fromme, Kirkpatrick,
Maxey and Winokur. Nays: None.
THE MOTION CARRIED.
Ordinance No. 132, 1991 Amending Chapter 25
of the City Code Regarding
Sales and Use Tax. Adopted on First Reading
' The following is staff's memorandum on this item:
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November 5, 1991 1
"FINANCIAL IMPACT
The Ordinance is intended to be revenue neutral. Staff does not foresee any
significant financial gain or loss of revenue through adoption of this Ordinance.
No additional costs will be incurred except administrative costs for revising the
Code.
EXECUTIVE SUMMARY:
This ordinance proposes standardized definitions and dispute resolution
procedures. Added are procedures for coordinated local audits as well as
provisions for a centralized clearinghouse for information. Staff has also
included some housekeeping changes and is taking this opportunity to clarify
remitting guidelines for sales and use tax collections.
BACKGROUND:
The Colorado Municipal League ("CML") has worked for several years to make the
sales tax collection system more cooperative among all taxing entities. Last
year CML was successful in drafting an intergovernmental agreement to be signed
by various Colorado municipalities that made it easier for taxpayers to receive
refunds when sales and use taxes were remitted to the wrong municipality. The '
City Council authorized the Mayor to enter into such agreements by adopting
Ordinance No. 108, 1990. CML is now requesting that home -rule municipalities
adopt an ordinance that will further standardize and simplify the sales and use
tax collection system of Colorado municipalities. This ordinance is the result
of listening to our customers. It proposes standardized definitions and a
coordination of audits.
Summary
Staff has reviewed the CML ordinance, made minor changes, and believes that there
will be no significant negative impact to the City in adopting this legislation.
Ninety-five percent of the changes are of minimal impact. In no way is the
City's sales and use tax base eroded nor does the City relinquish any control of
its ability to collect payments in a timely manner, enforce its Code, and conduct
audits.
Definitions
Section 1 of the ordinance adopts standardized sales and use tax definitions set
forth by CML as a direct response to requests from business interests. The
definitions are designed to provide uniformity relating to specific taxes and
exemptions. The definitions comprise the bulk of ordinance changes.
New definitions include "city" or "town", "exempt commercial packaging '
materials", "construct ion materials", "consumer", "exempt organization license",
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November 5, 1991
"license", "linen service", "lodging services", "medical supplies", "mobile
machinery and self-propelled construction equipment", "municipality",
"newspaper", "pay television", "person", "preprinted newspaper supplements",
"prescription drugs for animals", "return", "sales tax", "security system
services", "sound system services", "tax deficiency", "taxable services",
"taxable sales", "total tax liability" and "use tax". These additions improve
our current ordinance by providing clarity and ease of interpretation for the
City's taxpayers.
Other new definitions such as "private communication services", "recreation
services" and VATS/800 Services" have no bearing on currently imposed City
taxes, but are included for uniformity purposes.
Definitions for "access services" "auction" "automotive vehicle" "business"
"charitable organization", "engaged in business in the city", "farm close-out"
sale", "financial officer", "food", "gross sales", "prosthetic devices", "price"
or "purchase price", "purchase or sale", "retailer", "retail sales", "tangible
personal property", "tax", "taxpayer", "telecommunication services", "wholesale
sale" and "wholesaler" have been amended so they are consistent with CML's
simplification ordinance.
Although not included in CML's simplification ordinance, staff has retained the
' following existing definitions in order to retain continuity and clarity in the
ordinance: "construction equipment", "city manager", "fuel", "local exchange
company", "purchaser", "storage" and "use".
The definitions have been amended to provide state-wide uniformity for home -rule
taxation and should have no negative impact on the City. Any impacts are
perceived to be positive for interpretive purposes and should be revenue neutral.
Remittance Guidelines
In addition to the proposed CML ordinance amendments, staff has included
amendments to Section 25-126 that will clarify remittance guidelines for the
payment of sales and use taxes. These changes are designed to provide specific,
understandable direction for any taxpayer remitting sales and use tax. The
changes provide:
(1) A taxpayer whose monthly tax due is less than twenty-five
dollars may file returns and pay tax annually, quarterly,
or monthly.
(2) A taxpayer whose monthly tax due is less than fifty
dollars may file returns and pay tax quarterly or
monthly.
' (3) A taxpayer whose monthly tax due is fifty dollars or more
shall file and pay tax monthly.
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November 5, 1991 '
(4) The reporting period for a final return shall end on the
date of the transfer of ownership of a business.
(5) The reporting period for an initial use tax return shall
be the calendar month of the date of sale if a business
was purchased or opening day of business if a business is
new.
(6) The reporting period for a vendor selling tangible
personal property at a temporary location or special
event inside the City shall end on the date the temporary
location closes or special event concludes.
Standardized Dispute Resolution Procedures
Section 25-147 has been amended, in accordance with CML recommendations, to
extend the time period for appeals of denied refunds from ten (10) days to twenty
(20) days. This standardization measure is intended to assist businesses and
taxpayers who desire to appeal such determinations.
Section 25-168 has also been amended to reflect an extended appeal period to
twenty (20) days for taxpayers who have been notified of a tax deficiency. The ,
previous deadline for taxpayer action was ten (10) days. While this amendment
allows the taxpayer an additional ten day grace period for payment, it is not
expected to have a significant negative effect on cash flows.
Coordinated Audit
CML is offering the coordinated audit as a remedy to taxpayer complaints of the
frequency of visits from municipal auditors. The coordinated audit would allow
any vendor licensed in the City and licensed in at least four other Colorado
municipalities that administer their own sales tax collection to request that a
single audit be conducted on behalf of those taxing jurisdictions. The results
of the audit are shared by all participating municipalities. As a protection to
the municipalities, the requesting taxpayer must sign a waiver of any
passage -of -time limitation upon the City's right to recover tax owed by the
vendor for the audit period. Provisions for the coordinated audit have been
added to this ordinance in Section 25-173.
It is anticipated that the coordinated audit process may be requested by major
retailers and national companies who currently must accommodate requests for
audits for as may as 42 different Colorado taxing authorities. Several of such
taxpayers currently do business in Fort Collins, however their tax records are
located out-of-state. In order for Fort Collins to participate in the
coordinated audit process, out-of-state travel will be necessary. Staff has
proposed that direct costs resulting from the coordinated audit process be '
recovered directly from the proceeds of the audit.
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November 5, 1991
Section 25-224 of the Code has been amended to allow direct costs incurred in
performing coordinated audits, contact audits, hearings and through use of
collection agencies be paid from the proceeds of the taxes collected. Presently,
these costs are paid from the general fund. This change is not anticipated to
have any negative financial impacts, but is intended to allow greater use of
procedures that are designed to promote compliance and equity among taxpayers as
well as generate additional revenues.
Interest Rate Guidelines
Section 25-188 of the Code currently provides for interest to be calculated
pursuant to a rate established by the state Commissioner of Banking. In 1990,
the State of Colorado made a statutory change whereby the interest rate is no
longer set by the Commissioner of Banking.
It is proposed that a simple annual rate of 12.0% be used for both past due
accounts and audit assessments. This rate allows for ease of calculation for
taxpayers and eliminates complex programming changes to our computerized sales
tax system.
Standardized Refund Practices
' This simplification measure proposed by CML is designed to enable businesses that
have remitted sales taxes to the wrong jurisdiction to have the remittance
transferred to the correct jurisdiction. It addresses a specific concern and
frustration of businesses which operate in more than one jurisdiction and
generally follows the intergovernmental procedures adopted by Council in
Ordinance 108, 1990. The provisions for intercity claims for recovery have been
added to the ordinance in Section 25-200.
Centralized Clearinghouse for Home Rule Sales Tax Information
Section 25-226 provides that Fort Collins will provide its current sales and use
tax ordinance and subsequent amendments prior to their effective dates to the
Colorado Municipal League. CML has agreed to serve as the central clearinghouse
for the 42 home rule municipalities collecting their own taxes.
This change was requested by business representatives who asked that a central
location be maintained to house information on locally -collected sales taxes.
Because this information is already being provided to CML by the City, this
change will have no impact.
Permanent Joint Committee of Business and Municipal Officials
Section 25-227 provides that the city will cooperate and participate in a
permanent committee to be convened by CML. The committee is designed to provide
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November 5, 1991 '
to Locally -collected taxes."
Finance Director Alan Krcmarik presented the history of the development of this
ordinance. He credited Mayor Kirkpatrick, former Councilmember Mabry,
Councilmember Winokur, Sales Tax Auditor Sherrie Temple, Assistant City Attorney
Marty Heffernan, and Treasury Administrator Bob Eichem for their involvement.
Sales Tax Auditor Sherrie Temple outlined the 6 main features that CML requested
the home -rule cities to incorporate into their ordinances.
Councilmember Maxey made a motion, seconded by Councilmember Edwards, to adopt
Ordinance No. 132, 1991 on First Reading.
Krcmarik clarified that the interest rate of 1% per month on overdue sales and
use taxes is an amount set locally and can be changed in the future by ordinance.
He further clarified that an audit budget is adopted each year, but in a joint
audit there might be a need for additional funds for refund or administrative
costs.
Councilmember Fromme expressed concerns about using proceeds from an audit to
finance travel and inquired as to the number of coordinated audits each year.
Krcmarik replied that this practice is done by other cities and other state '
governments. This practice would not pertain to the regular audits but would be
limited to coordinated audits and would be paid as a reimbursement only. While
there is no way to project the number of coordinated audits per year, any
taxpayer with businesses in more than 5 communities can invoke an audit.
Treasury Administrator Bob Eichem explained the City has 10 days to respond to
a coordinated audit request.
Councilmember Winokur inquired about the definition of "charitable organization"
and inquired about vendor fee collection discussion.
Krcmarik replied the City's definition remains different from the state
definition and there will be no drop in revenue.. There would be no change in the
status of Girl Scout cookie sales. Because vendor fees would have a revenue
impact, that issue was not addressed.
Bruce Lockhart, 2500 E. Harmony Road, was concerned about sales tax on
newspapers.
Krcmarik stated that newspapers will still be exempt.
Councilmember Maxey spoke in favor of the ordinance and the cooperation involved.
Councilmember Winokur spoke in support of the ordinance. '
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November 5, 1991
Mayor Kirkpatrick commended staff on their efforts at the state level.
The vote on Councilmember Maxey's motion to adopt Ordinance No. 132, 1991 on
First Reading was as follows: Yeas: Councilmembers Edwards, Fromme,
Kirkpatrick, Maxey and Winokur. Nays: None.
THE MOTION CARRIED.
Other Business
Councilmember Maxey requested staff prepare a 2-page memo on water service fees
for non -subdivided developed properties served by the City.
Councilmember Winokur requested staff review the traffic and parking issues
associated with increased use caused by the proposed development of the Boltz
Junior High sports and youth complex. He further requested staff review of the
landscaping along the fence.
Mayor Kirkpatrick recommended discussion of bicycle options',in the context 'of the
Transportation Plan.
I
Executive Session Authorized
Councilmember Edwards made a motion, seconded by Councilmember Maxey, to adjourn
into Executive Session for the purpose of conducting the annual review of the
Municipal Judge. Yeas: Councilmembers Edwards, Fromme, Kirkpatrick, Maxey and
Winokur. Nays: None.
THE MOTION CARRIED.
The meeting adjourned into Executive Session at 8:30 p.m.
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November 5, 1991
Adjournment
At the conclusion of the Executive Session, Councilmember Edwards made a motion,
seconded by Councilmember Maxey, to adjourn the meeting to 5:30 p.m. on November
12 for the purpose of adjourning into Executive Session to conduct the annual
performance reviews of the City Manager and City Attorney. Yeas: Councilmembers
Edwards, Fromme, Kirkpatrick, Maxey and Winokur. Nays: None.
THE MOTION CARRIED.
The meeting adjourned at 9:30 p.m.
ATTEST:
City Clerk
ayor
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