HomeMy WebLinkAboutMINUTES-08/06/1996-Regular' August 6,1996
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, August 6, 1996,
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: Apt, Azari, Janett, Kneeland, McCloskey and Smith.
Councilmembers Absent: Wanner.
Staff Members Present: Fischbach, Roy, Krajicek.
Citizen Participation
Sara Shields, 2225 West Lake, urged the City to explore non -lethal methods in relocating prairie dog
colonies.
Paula Martin, representing Prairie Ecosystem Conservation Alliance, stated there are no health risks
in prairie dog relocation and spoke of statistic of relocation success at Rocky Mountain Arsenal. She
spoke of costs involved, stating her group performed relocation for approximately $50 a day.
Bruce Lockhart, 2500 E. Harmony Road, expressed concerns regarding the abandonment of trailer
houses in the Pioneer Mobile Home Park and believed it was a terrible loss for the people who
owned their trailers.
Citizen Participation Follow -tip
Councilmember Smith thanked Mr. Lockhart for his comments and spoke of the importance of
addressing mixed -use and economic diversity issues.
Councilmember Kneeland concurred with comments by Councilmember Smith and pointed out Item
#15 on the Agenda authorizes the City to issue revenue bonds for an affordable housing project.
Councilmember Apt spoke of alternatives for prairie dog relocation and stated he would look into
the situation.
Councilmember Janett stated Council has supported relocation efforts of residents of Pioneer Mobile
Home Park and receives a bi-weekly update regarding the status of residents. She reported 100
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August 6, 1996
families have obtained housing and assured Mr. Lockhart Council will continue to monitor the '
problem and help when possible.
Agenda Review
City Manager John Fischbach reported there were no changes to the Agenda as published.
Bruce Lockhart, 2500 E. Harmony Road, requested Item #15, Resolution 96-89 Setting Forth its
Intent to Issue Multi-Fan2ily Housing Revenue Bonds For the County Ranch (Oak Farms)
Apartments Project, be withdrawn from the Consent Agenda.
***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 by the Public will be considered separately under
Agenda Item #20, Public Pulled Consent Items.
7. Second Reading of Ordinance No 98, 1996, Amending Section 3-76 of the City Code
Relating to Alcoholic Beverage License Occupation Tax. '
On April 23, 1996, Governor Romer signed House Bill 1 168 which creates a new class of
alcoholic beverage license referred to as a "brew pub license". A brew pub license will be
issued to retail establishments that manufacture not more than 1,860,000 gallons of malt
liquor on the premises each year. As a result of this new class of license, Section 3-76 of
the City Code needs to be amended to set an annual occupation tax for brew pub licenses.
Ordinance No. 98, 1996, which was unanimously adopted on First Reading on July 16, 1996,
amends Section 3-76 by adding the brew pub license and setting the annual occupation tax
at $1,500 per year. This amount in consistent with the amount previously assessed to hotel
and restaurant licensees operating licensed breweries.
8. Second Reading of Ordinance No. 99, 1996, Amending Chapter 26 of the Code of the City
of Fort Collins Relating to Fees for Raw Water Requirements of the Water Utility.
Ordinance No. 99, 1996, which was unanimously adopted on First Reading on July 16, 1996,
increases the cash rate charged developers for satisfaction of raw water requirements from
$1,500 to $1,800 per acre foot. The cash rate which is adjusted periodically to reflect the
current price of raw water, is also the basis for a surcharge paid by nonresidential customers
for water used in excess of their annual allotment.
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August 6, 1996
t9. First Reading of Ordinance No 101 1996 Appropriating Unanticipated Revenue in the
Conservation Trust Fund for Construction of the Fossil Creek Trail Underpass.
The City has received a $50,000 grant from Colorado State Parks and Great Outdoors
Colorado Trust Fund for the construction of a trail underpass of Taft Hill Road for the Fossil
Creek Trail. Funding is available in the Conservation Trust Fund for design of the underpass
($30,000) and the City construction share ($80,000). Construction of the underpass is
planned for the spring of 1997.
The trail underpass will provide a safe crossing of Taft Hill Road for trail users on the Fossil
Creek Trail through the Cathy Fromme Prairie from Shields Street to County Road 38E.
Construction of this trail segment will start in 1996 and be completed by 1997. A trail link
to Webber Junior High School and Westfield Park is being completed with developer
assistance.
10. First Reading of Ordinance No. 102, 1996 Appropriating Unanticipated Revenue in the
General Fund for the Clean Air Colorado Program.
The Clean Air Colorado program is administered by the Colorado Department of Public
Health and Environment for public education and information programs that improve air
quality. CDPHE works jointly with the City of Fort Collins and other Colorado communities
to define air quality improvement programs for funding under Clean Air Colorado. The City
receives an annual monetary award from the state for these purposes; the Natural Resources
Department uses these funds for a variety of public outreach, special projects, and data
collection efforts to improve local air quality.
11. First Reading
of Ordinance No. 103, 1996 of the
Council
of the City of Fort Collins
Appropriating
Prior Year Reserves From the
Storm
Drainage Fund into the
Evergreen/Greenbriar Drainage Basin Project for Capital
Improvements
Increased development activity in the Evergreen/Greenbriar drainage basin has resulted in
the need to construct improvements earlier than anticipated. The proposed appropriation
would be used to construct channels and storm sewers to relieve several detention ponds that
are nearing capacity. This would alleviate the potential of flooding streets and adjacent
properties. The improvements include a channel and storm sewer along Redwood Street
between Conifer Street and Willox Lane, and near the detention ponds at Conifer Street and
Lemay Ave. The timing of the improvements would coincide with other improvements in
the area, so as to minimize future impacts to area residents and new infrastructure, i.e. cutting
new streets. City crews and adjacent developers will construct the drainage improvements.
12. First Reading of Ordinance No. 104. 1996. Amending Section 2-397 of the Code of the City
' of Fort Collins Relating to the Functions of the Senior Advisory Board
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August 6, 1996
The Senior Advisory Board recently revised its bylaws. As part of that revision, the group '
added 2 functions. Board and Commission functions are specifically identified in the City
Code; therefore, a Code change is necessary to officially authorize these changes.
The Senior Advisory Board, with the assistance of the City Attorney's Office, recommends
the following two items be added to the Board's functions in Section 2-397 of the City Code:
* To advocate policies and practices within the community that respect and consider
the needs and interests of senior citizens.
* To work to dispel stereotypes about aging through education and awareness
activities.
13. First Reading of Ordinance No. 106, 1996, Authorizing the Sale of Real Property Described
as the Cherry Creek Property.
This item authorizes the City to sell the Property to which it now holds title. The sale
proceeds will offset costs of improvements made to Property within the two special districts.
The bonds for these special districts are secured by the properties which benefit from the
improvements made. Council created the Boardwalk SID in 1982 for the purpose of
acquiring, constructing, and installing of electrical, water and sewer lines, storm drainage, '
streets, sidewalks, curbs and gutters within the district. Council created the Heart SID in
1984 for the purpose of acquiring, constructing and installing street, water, sanitary sewer,
storm drainage, and irrigation ditch improvements in a separate but nearby area.
14. First Reading of Ordinance No. 107, 1996, Authorizing the Sale of Certain Real Property to
Hector M. And Jacqueline G. Hernandez and Appropriating Unanticipated Revenue in the
Waste Water Fund.
When Von Vihl Heights Subdivision was developed there was a 26.6 foot wide strip that was
never platted by the original developer and has become a "no man's land" between 2818 and
2830 Virginia Dale Drive. At the time of development to the north of Von Vihl Heights, the
City installed a sanitary sewer line to serve the new neighborhood. This line encroaches on
the 26.6 foot strip. Upon discovery of this encroachment, staff worked with the heirs of the
estate to obtain fee simple title to the tract and to clear up the title problems on this strip.
Because the City Water Utility only needs an easement for the sanitary sewer line under a
minor portion of this tract, fee ownership is not required. As a result, the Water Utility
offered to sell this strip to both of the adjoining neighbors. During this process, it was
suggested that Parks and Recreation use the strip for additional access to Overland Trail
Park. This was referred to Parks and Recreation and they responded that adequate public '
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August 6, 1996
access to the park already exists approximately 350 feet away. Because of the neighborhood
interest in this property, a letter was sent to both adjoining property owners and another
interested neighbor offering the property for sale. Only one owner made an offer to purchase
the property. Therefore, contingent upon Council approval, the City will Quit Claim Deed
this strip to Hector and Jacqueline Hernandez for the consideration of $2,000 (the cost of
clearing title). The actual value of the Property to be conveyed is unsubstantial, given its
location and size. The City will reserve the strip necessary for City utilities and restrict the
new owners from planting any trees which will interfere with the sewer line through an
easement.
15. Resolution 96-89 Setting Forth its Intent to Issue Multi -Family Housing Revenue Bonds For
the County Ranch (Oak Farms) Apartments Project.
On July 23, 1996, the City received a proposal from Country Ranch Limited Partnership
("Country Ranch') for the City to issue private activity bonds for the purpose of acquiring
property, constructing and equipping a multi -family housing project in Fort Collins. The
Country Ranch Project is a low to medium income apartment project. The Project is located
at the Southwest Corner of County Road 9 and Harmony Road. The site is approximately
ten acres. Zoning for the site supports up to I IS units of multifamily housing. The project
applicant, Country Ranch Limited Partnership, a Colorado Limited Partnership, has indicated
' that they may request zoning approval to increase the number of units to 168. At least 20%
of the units would be affordable for persons in the 70% of median income category.
Passage of the Inducement Resolution would allow the City to issue $7,920,000 in tax
exempt private activity bonds for the purpose of constructing the Project. The proposal is
consistent with the City's adopted policies regarding issuance of this type of bonds. The
Project is consistent with the Council goat of increasing the quantity of affordable housing
in the City. for 1996, the City has a private activity bond allocation from the state for
$2,400,000. The Company will have to apply for and receive additional allocation from the
state. The deadline for the statewide allocation process is August 30, 1996.
16. Resolution 96-90 Authorizing the Purchase of Approximately Forty Acres of Land for
Natural Area Purposes.
Resolution 96-90 authorizes the purchase of approximately 40 acres of land for public natural
area purposes. The land is located on both sides of the Poudre River south of Prospect Road.
It is surrounded by City -owned natural areas, Drake Water Reclamation Plant, and the CSU
Environmental Learning Center. The parcel was identified as a high priority acquisition site
in the Natural Areas Policy Plan, is part of an open space and trail corridor in the Parks and
Recreation Master Plan, and is part of the Poudre River Corridor delineated in the City Plan
Structure Plan. Acquisition would further the adopted goals of these plans.
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August 6, 1996
Resolution 96-91 Supporting the Total Ban of Commercial Sightseeing Aircraft Operations ,
Over Rocky Mountain National Park.
The Federal Aviation Administration (FAA) through the U.S. Department of Transportation
(USDOT) is proposing to establish a Special Federal Aviation Regulation to preserve the
natural quiet of RMNP from any potential adverse impact from aircraft -based sightseeing
overflights. The Latimer County Commissioners have officially requested that the USDOT
adopt Alternative One and that the Fort Collins City Council support their position through
resolution. The ban is also supported by the National Park Service.
Resolution 96-92 Nominating a New Representative from the City to the Larimer Emergency
Telephone Authority.
Ordinance No. 164, 1989, authorized the Mayor to enter into an intergovernmental
agreement with other governing bodies located within Larimer County, to create the Larimer
Emergency Telephone Authority ("Authority") and further provides that the City of Fort
Collins shall nominate one person to the governing board of the Authority. This Resolution
nominates Deputy Chief Deryle O'Dell to serve as the City's representative on the Authority.
Until his resignation, former Police Chief Fred Rainguet was the City's representative on the
Authority.
Routine Deeds and Easements. I
A. Deed of Easement from Oak Farm Inc., for the purpose of permanent right-of-way
located east of Timberline Road and north of Harmony Road. Monetary
consideration: $10.
B. Deed of Easement from Oak Farm Inc., for the purpose of permanent right-of-way
located east of Timberline Road and north of Harmony Road. Monetary
consideration: $10.
C. Deed of Easement from Oak Farm Inc., for the purpose of temporary utilities located
east of Timberline Road and north of Harmony Road. Monetary consideration: $0.
D. Deed of Easement from Oak Farm Inc., for the purpose of temporary drainage located
east of Timberline Road and north of Harmony Road. Monetary consideration: $0.
E. Deed of Easement from B.K. Maxwell Co, Inc., for the purpose of permanent access
and utility located south of Mulberry Street and west of College Avenue. Monetary
consideration: $0.
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August 6, 1996
F. Deed of Easement from B.K. Maxwell Co, Inc., for the purpose of permanent utility
located south of Mulberry Street and west of College Avenue. Monetary
consideration: $0.
G. Deed of Easement from Sundering Townhomes Homeowners Association for the
purpose of permanent right-of-way located east of Shields Street and south of
Prospect Road. Monetary consideration: $0.
H. Deed of Easement from Windtrail LLC for the purpose of permanent utility located
south of Prospect Road and east of Shields Street. Monetary consideration: $0.
I. Deed of Easement from Joseph Bouchard for the purpose of temporary grading and
construction located south of Harmony Road and west of College Avenue. Monetary
Consideration: $10.
J. Power line Easement from Colorado State Board of Agriculture for Colorado State
University located along South Mason and West Pitkin, needed to underground
electric system. Monetary consideration: $3,255.
The following tracts of land (K-M) are needed by the Stormwater Utility Department for
drainage/detention purposes. These tracts will be transferred by Quit Claim Deed to the City
of Fort Collins:
K. Tract A, Sunstone Village PUD, Sixth Filing and Tract A, Sunstone Village PUD,
Seventh Filing from Geneva Homes, Inc., a Colorado Corporation. Monetary
Consideration: $0.
L. Tract A, Regency Park PUD Second Filing, from Key Bank of Colorado. Monetary
Consideration: $0.
M. Tract B, Huntington Hills First Filing from 327006 Alberta, Ltd. Monetary
Consideration: $0.
Items on Second Reading were read by title by City Clerk Wanda Krajicek.
7. Second Reading of Ordinance No. 98, 1996, Amending Section 3-76 of the City Code
Relating to Alcoholic Beverage License Occupation Tax.
8. Second Reading of Ordinance No. 99. 1996, Amending Chapter 26 of the Code of the City
of Fort Collins Relating to Fees for Raw Water Requirements of the Water Utility_
' Items on First Reading were read by title by City Clerk Wanda Krajicek.
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August 6, 1996
9. First Reading of Ordinance No. 101, 1996, Appropriating Unanticipated Revenue in the '
Conservation Trust Fund for Construction of the Fossil Creek Trail Underpass.
10. First Reading of Ordinance No. 102, 1996 Appropriating Unanticipated Revenue in the
General Fund for the Clean Air Colorado Program.
11. First Reading of Ordinance
No. 103, 1996 of the
Council
of the City of Fort Collins
Appropriating Prior Year
Reserves From the
Storm
Drainage Fund into the
Evergreen/Greenbriar Drainage
Basin Project for Capital
Improvements.
12. First Reading of Ordinance No 104 1996 Amending Section 2-397 of the Code of the City
of Fort Collins Relating to the Functions of the Senior Advisory Board.
13. First Reading of Ordinance No 106, 1996 Authorizing the Sale of Real Property Described
as the Cherry Creek Property,
14. First Reading of Ordinance No 107 1996 Authorizing the Sale of Certain Real Property to
Hector M. And Jacqueline G. Hernandez and Appropriating Unanticipated Revenue in the
Waste Water Fund,
23. First Reading of Ordinance No. 108, 1996, of the Council of the City of Fort Collins Calling '
a Special Municipal Election to Be Held in Conjunction with the November 5. 1996 General
Election and Submitting a Ballot Measure to a Vote of the Registered Electors of the City.
24. Public Hearing and First Reading of Ordinance No 109, 1996, Authorizing and Approving
the Issuance of Pollution Control Refunding Revenue Bonds for the Anheuser-Busch
Pollution Control Project.
25. First Reading of Ordinance No. 110, 1996, Amending Chapter 24 of the City Code So as to
Increase the Amount of the Street Oversizing Fee.
Councihnember Apt made a motion, seconded by Councilmember McCluskey, to adopt and approve
all items not removed from the Consent Agenda. Yeas: Councilmembers Azari, Apt, Kneeland,
Janett, McCluskey and Smith. Nays: None.
THE MOTION CARRIED.
Resolution 96-89
Setting Forth its Intent to Issue Multi -Family
Housing Revenue Bonds For the County
Ranch (Oak Farms) Apartments Project Adopted. ,
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August 6, 1996
The following is staff's memorandum on this item.
"Financial Impact
The private activity bonds that are tieing requested would not be obligations of the City of Fort
Collins. The City serves only as the "sponsor" of the project. The debt service ors the private
activity bonds do not constitute a debt of the City.
The applicants have paid a $1,000 application fee and if the bonds are issued will pay all issuer's
fee based on the debt service of the project. These proceeds may be used by the City for economic
development or affordable housing.
F,xecutive Summary
On July 23, 1996, the City received a proposal from Country Ranch Limited Partnership ("Country
Ranch') for the City to issue private activity bonds far the purpose of acquiring property,
constructing and equipping a multi family !rousing project in Fort Collins. The Comity Ranch
Project is a low to medium income apartment project. The Project is located at the Southwest
Corner of County Road 9 curd Hannon.v Road. The site is approximately ten acres. Zoning for the
' .rite supports up to 118 units of nudtifamily housing. The project applicant, Country Ranch Limited
Partnership, a Colorado Limited Partnership, lots indicated that they may request zoning approval
to increase the number of units to 168. At least 20% of the units would be affordable for persons
in the 70% of median income category.
Passage of the Inducement Resolution would allow the City to issue $7, 920,000 in tar exempt private
activity bonds for the purpose of constructing the Project. The proposal is consistent with the City's
adopted policies regarding issuance of this type of bonds. The Project is consistent with the Council
goal of increasing the quantity of affordable housing in the City. for 1996, the City has a private
activity bond allocation from the state for $2,400,000. The Company will have to apply for and
receive aclditional allocation front the state. The cleadline for tlhe s•tctewide allocation process is
August 30, 1996.
BACKGROUND:
In response to the housing needs of the residents of Fort Collins, the City Council has established
as one oj•its goads to increase the quality and affordability, of housing. In 1984, the Council adopted
specific criteria for the issuance of tax-exempt bonds that would acquire, rehabilitate, or maintain
the supply of low-income housing. Through the adoption of Resolution 84-179, specific criteria
were adopted which allow the City the opportunity to pursue its commitment to affordable housing
in accordance with state and fecleral legislation and regulations. Since the policy was adopted,
' changes in federal tax law and limits on issuer's capacity have sharply reduced the City's ability to
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August 6, 1996
support low-income housing through tax exempt financing. One of the few remaining means to do '
so is through the State of Colorado's Private Activity Bond allocation program. This program also
provides financing for industrial development revenue bonds.
In 1996, the City was allocated $2,462,775 for use in the program. The Courtney Parks Apartments
project requested use of this money and they sought additional state allocation earlier this year. The
State Allocation Board rejected their proposal indicating that they preferred new construction
projects to the Courtney Park rehabilitation project.
The state's allocation process for all private activity bonds is based on the calendar year. Each
year, the City receives an allocation of private activity bonds. The state also sets a deadline by
which the allocation must be used. If it is not used, then the money reverts to the statewide balance
and any number of projects may compete for the use of the funds.
If the City has more than one project that wants to compete for the statewide balance, the City needs
to rank the projects. Funding the Country Ranch Project will not require a ranking because it is the
only project the City has received that will be able to meet the application deadlines established by
the state.
For 1997, the process will start again with the City receiving an allocation and the state setting the
process and deadlines for projects to apply for monies fi-om the statewide balance. '
The County Ranch Project envisions construction of 168 new units of housing to be located near
the southwest corner of County Road 9 and Harmony Road
The proposed issue of bonds is presently estimated at $7,920,000. The difference between the City s
allocation of $2,462,775 and $7,920,000 will be provided by the state if the Project is successful in
the statewide balance allocation process. The bonds will be paid through rents and other revenue
generated by the Project. The bonds are not an obligation of the City of Fort Collins.
Evaluation of the Application
The City's criteria for the issuance of multi family revenue bonds as set forth in Resolution 84-179,
are used to evaluate the application for the Project.
The first criteria requires that 20% of the units must be rented to families at or below 70% of median
income. Since this Project is planned to have 168, 34 units would be designated as affordable. This
policy criterion is net by the proposed Project.
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August 6, 1996
Criterion #2
Base rents for 20% of the units must be set at 30% of 70% of existing median income for Fort
Collins as established by the U.S. Department of Housing and Urban Development. 1996 median
incomes for Fort Collins are:
One Person $33,435
Two Persons $36,720
Three Persons $41,280
Four Persons $45,900
Calculation of the nmxintwn monthly rents at 70% of median income with 30% allocated to rent is
as follows:
One Bedroont/One Person $585
One Bealroont/Two Persons $643
Two Bedroont/Two Persons $643
Two Bedroom/Three Persons $722
Two Bedroom/Four Persons $803
The Project has tax credit writs and private activity Bond -rate restricted units. the projected rents
are displayed below:
Private Activity Bond Units (48)
2 Bedroom/One Bath $650
3 BedroontMvo Bade $750
4 Bedroom/Two Bath $825
Tax Credit Units (120)
2 Bedroom/One Bath $598
3 Bedroom/Two Bath $691
4 Bedroont/Two Bath $761
Criterion #3
The City requests the owner of projects provide an additional rent subsidy for the 20% restricted
units. (The rent subsidy is provided in lieu of collecting the City's nonnal issuance fee). The Project
applicant has agreed with this request.
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August 6, 1996
Criterion #4 1
This criterion requires use of Criterion #2 & #3 be used to calculate the actual rents for the
restricted units. The applicant has agreed to do so.
Criterion #5
Final approval for the Project by the Planning and Zoning Board is required. Further, rights for
appeal need to have expired. The applicant intends to request a zoning change to allow for
additional density. This has not yet been concluded.
Criterion #6
This requires that amenities for the low-income units be the same as other units in the project. This
criteria has been met.
Criterion #7
The applicant must meet all federal and state requirements for the bonds. It is the applicant's
intention to do so. All bond related documents will be written in a manner complying with the
requirements.
Criterion #8
Responsibility for monitoring the project meeting #7 is assigned to the bond trustee. Bond
documents will be drafted with this stipulation.
Criteria #9 and #10
The City Council has the right to deny a project even if all criteria are met or to vary criteria one
through four.
Staff recommends the passage of the Inducement Resolution, as it supports Council's goad of
increasing the quality and affordability of housing and is consistent with adopted polices for
multifamily housing.
The Affordable Housing Board will meet on August 1 to review the project. The Board's
recommendation will be provided to Council prior to the August 6 regular Council meeting. "
Finance Director Alan Krcmarik gave the staff presentation on this item and outlined the allocation
criteria and process.
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August 6, 1996
Councilmember Kneeland made a motion, seconded by Councilmember Smith, to adopt Resolution
96-89.
Krcmarik stated issuance of the bonds would pose no financial liability to the City.
Rusty Collins, Executive Director of Neighbor to Neighbor, stated 120 of the 168 units would be
affordable and remain that way, for a minimum of 15 years.
Bruce Lockhart, 2500 E. Harmony Road, asked what break is received on interest rates and how
much of the funds would be used to pay City fees. He stated it would be more beneficial to lower
the percentile to 50% or less of the median income.
Betty Maloney, member of the Affordable Housing Task Force, spoke in support of the project.
Krcmarik clarified this project qualifies for affordable housing rebates.
Dr. Joel Levitz, representing Country Ranch Project, clarified approximately 80% of the units are
designated at the 50 - 60% of median with the remainder at market median, which is calculated at
63%. He stated if additional funds were available through other programs, more of the 60% of
median units would be lowered to 50%_
Councilmember Janett spoke in support of the motion commenting not many people take advantage
of these type of bonds for housing projects.
The vote on Councilmember Kneeland's motion was as follows: Yeas: Councilmembers Azari, Apt,
Kneeland, Janett, McCloskey and Smith. Nays: None.
THE MOTION CARRIED.
Councilmember Reports
Councilmember Smith stated the Public Access Committee met and discussed the City's role in the
progression of telecommunications infrastructure for the entire City.
Councilmember Kneeland spoke of the time frame involved to make a decision regarding the above
mentioned telecommunications issue.
Transportation Services Director Ron Phillips reported on a meeting held by the NFRTAQPC. He
reported passenger rail corridor issues were discussed, and reported the IC3 train would be travelling
through Colorado at the end of the month.
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August 6, 1996
Councilmember McCluskey stated he and Councilmember Janett recently represented the City of ,
Fort Collins in the Larimer County Parade.
Councilmember Janett stated the Governance Committee met with representatives of the Charter
Review Committee and received an update on the Committee's progress.
Councilmember Kneeland stated the Health and Safety Committee held an open house to discuss
youth access to tobacco products.
Councilmember Janett pointed out that tonight was "National Night Out" and encouraged everyone
to participate. She thanked staff for its efforts in the selling of the Cherry Creek SID_
Ordinance No.108,1996,
of the Council of the City of Fort Collins
Calling a Special Municipal Election to Be Held
in Conjunction with the November 5, 1996
General Election and Submitting a Ballot Measure to a
Vote of the Registered Electors of the City. Adopted on First Reading.
The following is staff's memorandum on this item.
"Financial Impact I
The estimated cost for conducting the special election in November is $30,000. The City will pm
a proportional cost of the total election cost.
Executive Summary
On June 18, the Council adopted Resolution 96-74, expressing an intent to place a ballot measure
on a special municipal election to be held in conjunction with the November 5, 1996 General
Election. The Council Finance Committee has recommended that the questions of retaining revenue
from 1995 that surpassed the growth limit be placed before the voters.
The Ordinance calling the special election sets out the full text of the measure to be submitted to the
voters and the ballot language for the measure.
The City must enter into an intergovernmental agreement with Lorimer County for conduct of the
election no later than September 6, and the City Clerk must certify the ballot content for the special
election by September 10. The ordinance authorizes both of these actions. "
City Clerk Wanda Krajicek gave the staff presentation outlining the purpose and timing of the
Ordinance.
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August 6, 1996
Finance Director Alan Krcmarik reviewed the ballot language of the Ordinance.
Councilmember McCluskey gave a brief synopsis of the Finance Committee's perspective regarding
revenue retention and commented on outreach that would be conducted.
Councilmember McCluskey made a motion, seconded by Councilmember Kneeland, to adopt
Ordinance No. 108, 1996 on First Reading.
Bruce Lockhart, 2500 E. Harmony Road, opposed the motion, stating he supported refunding excess
revenues to the public.
Councilmember Kneeland believed this was a responsible way to let the voters decide what should
be clone with the funds.
Councilmember Apt stated Council is responding to residents requests regarding the need for more
transportation planning.
Councilmember McCluskey clarified the term" de-Brucing" and commented on other such measures
that have been adopted throughout Colorado to allow the retention of excess revenue.
' Councilmember Janett supported the motion stating additional money needs to be used for street
maintenance.
The vote on Councilmember McCluskey's motion was as follows: Yeas: Councilmembers Azari,
Apt, Kneeland, Janett, McCluskey and Smith. Nays: None.
THE MOTION CARRIED.
Ordinance No. 109, 1996
Authorizing and Approving the Issuance of
Pollution Control Refunding Revenue Bonds for the
Anheuser-Busch Pollution Control Project, Adopted on First Reading.
The following is staf 's memorandum on this item.
"Financial Impact
The bonds are not and can not constitute an obligation of the City of Fort Collins. The bonds will
be paid by Anheuser-Busch. The City charges an issuance fee for such transactions which is
determined by the structure of the debt service. Staff estimates the issuance fee to be between
$45,000 and $60,000. The proceeds of the fee can be used for economic development.
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August 6, 1996
Executive Summary I
In 1984, the City issued $35,000,000 of pollution control revenue bonds for the Anheuser-Busch
breivery (the "Company"). In 1986, the bonds were reissued in the amoamt of $20,000,000. The first
call date for the 1986 bonds is September 4, 1996. The bonds were used to finance the costs of
acquiring, constructing, installing and equipping pollution control facilities, sewage facilities, annd
solid waste disposal facilities to be owned by the Company or one of its subsidiary companies.
Because of the change in interest rates, the Company would like to refinance the outstanding bonds
to attain debt service savings. The 1986 bonds carry an interest rate of 7.375%. The refinanced
rate of interest is expected to be around 6.5%. The proposed refinancing will extend the maturity
of the bonds,fron 2014 to 2036.
BACKGROUND:
The Original 1984 Issue
The Series 1984 Bonds was originally issued on December 3, 1984, in the amount of'$35,000,000
to provide financing to Anheuser-Busch Companies, Inc., (the "Company") for pollution control
facilities and equipment. The 1984 bonds were issued at a floating rate of*interest. $9 million of
the 1984 bonds were retired in 1985 and additional $6 million were retired in 1986. In 1986, the
remaining bonds were reissued and remarketed at a lower fixed interest rate, 7.375%. The bonds
art referred to as special and limited obligations of the City as Issuer. The bonds do not constitute '
general obligations of'the City or a charge against the general credit or taxing powers of the Cihl-
a- the State of Colorado.
The Citv issued the bands under the provisions of the Colorado County and Municipality
Development Revenue Bond Act, as supplemented and amended. Tine bonds are payable solely fora
the revenues derived fron the Company's facilities.
1986 Refinancing
In 1986, the Company requested that the City renharket and reissue the bonds. This step was
envisioned at the time of the original issue because of the historically high interest rates. The
structure of tine transaction was changed from a floating interest rate to a fixed interest rate. The
bonds were to mature in 2014. The market provided an interest rate of 7.375% on the bonds.
Proposed Refinancing
One of the general rules of financing projects is that the term (length) of the financing should not
exceed the useful life of the facilities and equipment. Financing over time matches cash flows
associated with the project with their associated costs. In the proposed financing, Anheuser-Busch
has requested to extend the term of the financing by up to 22 years, 2014 to 2036. As of first
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reading, the term has not yetbeen decided. The extension of'maturity corresponds with a recent
engineering firm's estimate of the projece's usefid life. The expected rates for the refunding bonds
will be in the range of 6.20% to 6.50%, provided that the markets remain stable from now mail sale
date. The proposed finance structure calls for a tern bond, that is, all bonds will be payable in the
last year of the financing. The bonds will be callable in ten years with a 2% premium. "
Mayor Azari thanked the City Manager and staff for putting this item on the Agenda allowing an
opportunity for public input.
Director of Finance Alan Krcmarik stated the ten year call date on the bonds is due to expire soon.
He spoke of the interest rate market, noting Anheuser-Busch requested the City refinance the
outstanding bonds and also requested an extension on the term of the bonds. He clarified the bonds
can not become a liability of the City. He reported that Anheuser-Busch would pay the issuance fee
and clarified those fees are available to use for economic development purposes.
Councihnember Apt made a motion, seconded by Councilmember Smith, to adopt Ordinance No.
109, 1996 on First Reading. Yeas: Councilmembers Apt, Azari, Janett, Kneeland, McCluskey and
Smith. Nays: None.
THE MOTION CARRIED.
Ordinance No. 110, 1996,
Amending Chapter 24 of the City Code So as to Increase
the Amount of the Street Oversizing Fee, adopted on First Reading*.
The following is staff's memorandum on this item.
"Financial Impact
Increases in the Street Oversizing Fee are necessary to cover the effects of inflation on construction
costs and other operational improvements which affect the expenditures to the Street Oversizing
Fund. The proposed changes increase the fee from $584/du to $895/du for single-family and add
a new category for multi family residential at $554/du. Additional changes are:
Light Industrial: from $5,252/ac to $7,292/ac Office: from $10,504/ac to $14,583/ac
Heavv Industrial: front $7,003/ac to $9, 722/ac Retail Conmnercial: from $14,005/ac to
$19,443/ac
Executive Summary
City Engineering staff annually reviews the Street Oversizing Program. Revenues and expenditures
are tracked through the Development Tracking System and Financial System. In addition, projected
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liabilities, land use, legal, operation improvements, and regional transportation data are reviewed '
annually. Over the past year, several policy changes have been implemented which will impact the
expenditures to the Street Oversizing program. In order to provide a financially stable fund to
support the Street Oversizing program, modifications to the existing fees are necessary. However,
some of the issues highlighted by the review of the Street Oversizing program are complex and
require further analysis and input from affected parties.
Staff recommends a two phase approach to these modifications. The first phase will be a fee
increase in August of 1996 to adjust for the increase in the inflation of construction costs caul for
operational changes in the existing street oversizing model. In the second phase, staff will clarify
the more complex issues and undertake an outreach program to define alternatives. Staff will then
bring these issues back for Council's consideration in early 1997.
There are three minor modifications to the current street oversizing model that should be
implemented now: inflation adjustment, operational improvements, and fee category changes. (In
addition, Section 24-113 has been reformatted so as to separate the types of residential ruses by
handling each qpe in a separate subparagraph and by handling non-residential uses in a separate
subparagraph.)
staff is Pronosine the Followine Modifications for Aurtst. 1996 Consideration:
• Inflation Adjustment
• Operational Improvements to the Street Oversizing Model '
Reclassification of'streets
Additional Traffic Signals
Double left turns, right turn lanes, bike lames through intersection.
• Fee Categories - single fantily vs. multi fannily
Inflation Adjustment
The first modification is an inflation adjustment to raise the fee revenues to cover the inflation in
construction costs last year. The original fee rate was calculated in July of 1988 and construction
costs have remained constant for five to six years. However, over the past 18 mondts, construction
costs have increased significantly. Analysis of the actual expenditures to the Street Oversizing Fund
show an increase of 10.19% over this period. Staff recommends that the fees be increased to cover
the actual inflation amount in construction costs.
Operational Improvements
The other modification is an adjustment to the Street Oversizing Model to account for policy changes
in street design of new development projects. These policy changes are operational improvements
to the Street Oversizing Model and include the changes listed below.
1. We have been building collector streets every one-third mile along an arterial, rather
than every half -mile. The previous collector street standard was to bisect a square- '
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mile section both North to South and East to West. This design encouraged cut -
through traffic on collector streets such as Swallow Road. Current policy
discourages the direct connection of collector streets through numerous
neighborhoods. Adding more collector streets lowers traffic volumes to
neighborhoods and eliminates the heavy single collector. Traffic studies show that
more collector streets are necessary when designed in this fashion.
Increases in the number of traffic signals needed for development impacts fi-onn three
signals per square mile to five signals per square mile. This increase is a direct
correlation to the increased number of collector streets needed.
3. Building doable left turn lanes and right -turn -only lanes. The major distribution of
traffic from outl-ving development areas is directed to activity centers, rather than
evenly on the arterial network. These development volumes require additional
imnprovenhents to many intersections. These improvements increase the costs jbr
intersections, both by increasing the construction costs and requiring the additional
purchase of right of way beyond the standard arterial street.
4. Bike lames are constructed through intersections. The current construction model
is based on the arterial standard street of 70 foot width and the collector standard
street of 50 foot width. In the past, intersection striping configurations,for left turns.
right turns, and medians could be squeezed into these widths by eliminating the
bicycle lanes at the intersection and having the bicyclists use one of the vehicle lanes.
The policy has now shifted to extend bicycle lanes comhpletely through intersections
to provide a safer delineated route for bicyclists. Again this increases the cost by
requiring additional pavement and right of way at intersections.
5. As local and regional traffic studies are completed, the Master Street plan is revised
to indicate to developments what adjacent street improvements are required. The
Northeast Area Transportation Plan element was recently completed, which revised
several street classifications. Some streets were reclassified to a lower level - from
arterial to minor arterial, and a few segments of streets were upgraded.froin arterial
to major arterial. The Street Oversizing fee calculation was updated to reflect these
reclassifications. Several other adopted plans have ached costs to the Street
Oversizing Program, such as the Harmony Road Plan and the Prospect Corridor
Plan. These elements are included in the Street Oversizitng Fee increase.
Single Family vs. Multi -Family Fee Categories
The Affordable Housing Board and citizen input fi-on other impact fee studies suggest the City vary
innpactfees for different types of housing. The trip generation data indicates multi fnmily dwelling
units generate 62% of the traffic of a stand-alone single fnmily dwelling unit. Based on this
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available data, the residential fee category could he expanded to two categories, single f unily
residential and multi family residential.
The current residential Street Oversizing fee is charged to all types of dwelling units. The
modifications would increase this fee to $810 per dwelling unit. Further expanding the residential
category to single family and nadti family rates based on trip generation would indicate the
following fee rates:
Proposed 1996 street oversizing fee for expanded residential categories:
Single-family residential $8951DU
Multi family residential $5541DU
Summary
These modifications are adjustments to the current Street Oversizing model and are necesscn.y for
the fund to recover the higher costs. The inflation factor adjustment is a /0.19% increase in the fees
based on actual construction prices of expenditures. In addition, there are additional left turn lanes.
right turn lanes, bike lanes through intersections, more collector streets and traffic signs, changes
in street classifications and different fee rates for single family and multi family dwelling units.
These adjustments to the fund would raise the current Street Oversizing impact fees charged to new
construction as follows:
CurrentStreet
Inflation `
Operational
Proposed 1996'
Oversizing Fee
-Adjustinwtt
ltnpi&entents to
Street'
" . ` ',
Model
Oversizing Fee,
Residential -_ ;='
$584/du
Add $59/du
add $167/clu
$895/du (SF)
$554/du (MF)
Light Industrial `" `
$5252/ac
add $535/ac
add $1505/ac
$7292/ac
Heavy Industrial -
$7003/ac
add $713/ac
add $2006/ac
$9722/ac
Office
$10504/ac
add $1070/ac
add $3009/ac
$14,583/ac
Retail Commercial,
$14005/ac
add $1426/ac
add $4012/ac
$19,443/ac
Staff believes that the inflation and operational improvement modifications are necessary
acjustments to tine current program. Staff recommends tliat these modifications be considered by
Council in August of /996. "
Special Improvement District Coordinator Matt Baker gave the staff presentation and outlined staff
recommendations. He stated a fee increase has been proposed to recover costs currently being used
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August 6, 1996
for costs associated with operational improvements and inflation. He spoke of the need for
operational improvements and stated traffic studies show more improvements are needed at
intersections such as double left turn lanes and additional right turn lanes requiring additional right-
of-way and additional pavement widths that would increase costs at many intersections. He stated
the Street Oversizing Fee is an impact fee and spoke of the need to determine which portion of the
improvements are reasonably necessary to offset the impacts of development. He stated staff is
proposing a public outreach program to help clarify the issues in a wider community forum. He
summarized by stating staff is requesting operational improvements, inflation increases and
separation of single fee rate into a single-family and multi -family fees.
Baker responded to Council questions stating fees are reviewed every year, clarifying if construction
prices decreased the street oversizing fee would be reduced.
Councilmember Kneeland made a motion, seconded by Councilmember Smith, to adopt Ordinance
No. 110, 1996 on First Reading.
Baker stated the implementation date would be delayed for 30 days allowing home builders time to
adjust their fees.
City Manager John Fischbach clarified the last time fees were increased, implementation was
deferred for 60 days.
Betty Maloney, representing the Affordable Housing Task Force, stated she realized it was necessary
to increase fees. She spoke of her concerns that impact fees would have a direct effect on affordable
housing.
Bruce Lockhart, 2500 E. Harmony Road, stated impact fees are passed along to renters as costs are
raised and paid by property owners.
Councilmember Kneeland offered a friendly amendment to her previous motion, that the increase
be effective 30 days after adoption on Second Reading. Councilmember McCloskey seconded the
motion.
Councilmember Smith as seconder to the original motion stated he did not support the motion and
did not support the motion as a friendly amendment.
Councilmember Kneeland made a motion, seconded by Councilmember McCluskey, to amend
Ordinance No. 110, 1996 on First Reading, adding language that the increase be effective 30 days
after adoption on Second Reading.
Baker clarified the last time the fee was adjusted was in 1989 when it was lowered by approximately
$20 per unit.
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August 6, 1996
Councilmember Kneeland stated she would not be willing to differentiate between residential and
commercial/industrial/retail and to offer it as a package to be in effect 30 days after Second Reading.
The vote on Councilmember Kneeland's amendment was as follows: Yeas: Councilmembers Azari,
Kneeland and McCluskey. Nays: Councilmembers Apt, Janett and Smith.
THE MOTION FAILED.
Mayor Azari stated she would not support the motion until input from the community has been
received regarding what types of hardships this might create.
The vote on Councilmember Kneeland's original motion to adopt Ordinance No. 1 10, 1996 on First
Reading was as follows: Yeas: Councilmembers Apt, Kneeland, Janett, McCluskey and Smith.
Nays: Mayor Azari.
THE MOTION CARRIED.
Other Business
Councilmember Kneeland stated she has received calls from constituents reporting an increase in
DIA air traffic over the City of Fort Collins, and reported Airport Manager Fred Anderton and
Assistant City Manager Frank Bruno have scheduled a meeting with DIA and will question them
regarding flight patterns.
COm]Cilmember Apt spoke of the increased flight paths over Rocky Mountain National Park. He
requested information regarding Prairie Dog relocation efforts.
Councilmember Smith requested follow-up information on the issue of "Bicycle Friendly City". He
spoke of the neighborhood liaison program and the possibility of designating a staff member from
patrol or police services to act as neighborhood liaisons.
City Manager John Fischbach stated the possibility is currently being discussed with members of
Police Services.
Councilmember Janett requested information about installation of underground conduit for cable
television. She asked if the City was installing the conduit and if the cable company is required to
use it, and if not could they be used for other utilities.
Mayor Azari requested information regarding construction inflation costs.
ES
The meeting adjourned at 8:55 p.m.
' ATTEST:
"a,�,L-,�
City Clerk
Adjournment
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August 6, 1996