HomeMy WebLinkAboutMINUTES-07/06/1993-RegularJuly 6, 1993
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,
July 6, 1993, 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, McCluskey, and Winokur.
Councilmembers Absent: Horak and Kneeland.
Staff Members Present: Burkett, Krajicek and Roy.
Citizen Participation
Mayor Azari presented plaques to Chris Allison and Laurie O'Dell for their eight
years of service on Boards and Commissions.
David Lipp, 626 Remington, stated his concerns about high rent in Fort Collins
and its impact on the ordinary people in the community. He urged Council to form
a task force to study the issue of housing and to come up with a strategy to
stabilize the rents in Fort Collins.
' Roy Vratil, 1401 Shamrock, stated he was concerned with the response time on
complaints filed with the Police Department. He stated the amount of time the
Police spent on patrolling the "Ride of the Rockies" was far too much and cost
the taxpayers a considerable amount of money.
Al Bacilli, 520 Galaxy Court, stated he was concerned with the selection process
of the SouthRidge Golf Pro. He urged Council to listen to the concerns that the
public has regarding the D.A.R.E. Program.
Ed Cullan, 1741 Brookhaven Circle, stated 214 South College would now be occupied
in two weeks by Edward D. Jones and Company and invited Council to come in and
visit.
Sandy Lemberg, 6851 Poudre Canyon Highway, stated he would like information
regarding the police complaint process and the citizen liaison committee.
Lisa Gleason, on behalf of Bob Alberts, asked for an ordinance change regarding
the skunk incident and the animal control complaint process.
Ward Luthi, 1630 West Swallow, stated he owned property at 1701 Broadview Place
and was concerned with traffic and safety around the "bull farm" housing project.
He urged Council to discuss the project at the July 20 Council meeting.
' Roy Vratil, 1401 Shamrock, stated he was concerned with the speeding throughout
the City.
Councilmember Janett stated that creating an Affordable Housing Task Force will I
be discussed at the July 20 Council meeting. She stated that Counci1's Work Plan
includes reviewing the development fee structure that affects the cost of
housing.
Councilmember Apt stated the "bull farm" housing issue should be placed on an
upcoming agenda for public discussion and for a formal Council recommendation on
this project.
Mayor Azari asked if Council could consider changing the Code regarding wild
animals in the City of Fort Collins and asked that the animal control contract
be reviewed. She asked for an update on the police complaint process and asked
if the report regarding the golf pro issue could be made available to the public
for its review.
Agenda Review
City Manager Burkett stated that Items 32 and 36 have been revised and will be
reviewed during the presentations.
Mayor Azari requested that Item #17, first Reading of Ordinance No. 70, 1993,
Authorizing the City Manager or Designee to Execute Certain Intergovernmental
Agreements, be withdrawn from the 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 N28, Pulled
Consent Items.
7.
8.
This Ordinance was unanimously adopted on First Reading on March 16, 1993.
In August of 1986, the City issued $30,060,000 of Sales and Use Tax
Revenue Bonds. These bonds refunded prior City issues, including the
August 1981, October and December 1982, and November 1984 Sales and Use
Tax Bond issues, the SouthRidge Bond Anticipation notes, and the Block 31
Intergovernmental Agreement. The net effective interest rate on the 1986
Bonds was 7.36%.
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9.
After First Reading on March 16, the municipal bond market rates rose to
approximately 5.75% in the 2009 maturity. As the rates on the bonds rose,
the savings to City declined to less than 2% net present value.
Therefore, staff recommended that completion of the refunding wait until
the higher savings level was achievable. That higher level of 3.128% or
$736,000 net present value savings was attained on June 9. However, the
sale and supporting documents were not completed in time for Second
Reading on June 15. All documents are now complete and staff recommends
adoption of the Ordinance on Second Reading. The net effective interest
rate on the bonds is 5.06%.
1993.
The City's current banking contract expires September 30, 1993. This
Ordinance, which was unanimously adopted on First Reading on June 15,
permits the contract to be extended for three months so that the contract
and the costs associated with it may coincide with the budget year. This
extension would save the City an estimated.S15,500 in 1993 because the new
contract is expected to be more expensive.
The City Code limits contract terms to five years. The original contract
for banking services began on October 1, 1988 and expires on September 30,
1993. Council needs to amend the original ordinance approving this
contract in order to extend the contract to coincide with the budget year.
Future contracts would then begin on January 1, 1994 and would follow the
budget year. The City's current provider, First Interstate Bank, has
agreed to the three month extension without a change in other provisions
of the contract.
On June 28, 1993, the Planning and Zoning Board is scheduled to consider
preliminary and final approval of the Greenbriar Village P.U.D., 1st
Filing which replats a portion of the Sundance Hills P.U.D. Filing Two.
This Ordinance which was unanimously adopted as amended on First Reading
on June 15, empowers the developer of Greenbriar Village P.U.D., 1st
Filing to vacate a portion of the right-of-way for Butch Cassidy Drive
being replatted with Greenbriar Village P.U.D., First Filing. Staff and
the Planning and Zoning Board members are asking the Council to endorse
the right-of-way vacation.
Language has been included to indicate that the easement can be used for
public pedestrian and bicycle access purposes as well as utility and
drainage.
KIN
II.
i1MI
This Ordinance was unanimously adopted on First Reading on June 15. The
1.49 acre property to be rezoned, located north of Horsetooth Road and
east of Timberline Road, is currently owned by the State Board of
Agriculture, but is being traded to Timberline Partners, Ltd., a Colorado
Limited Partnership, by G.B. Ventures, a Colorado General Partnership,
General Partner, William W. Reynolds, Managing Partner, for a 1.71 acre
parcel owned by Timberline Partners, Ltd. The subject property is to be
included within the Dakota Ridge PUD residential development project and
needs to be rezoned from its current T-Transitional zoning to the R-P,
Planned Residential, District in order for the residential' development
project to proceed.
This Ordinance was unanimously adopted on First Reading on June 15. One
of the objectives of the Downtown Development Authority is to construct
public improvements within the district. These improvements are usually
done' at the request of and in a partnership with private improvement
projects as a way of helping to revitalize the downtown economic climate.
In 1992, the Board authorized DDA financial participation in a number of
minor capital projects that were to be financed from the Capital Project ,
Fund in conjunction with the 1988 tax increment bond refunding. However,
the Finance Department closed out this account in late 1992 with the
intent that the money be transferred to the 1993 DDA Operating Budget for
continued use in minor capital projects funding. These projects were not
included in the Annual Appropriation Ordinance for 1993.
13. Items Relating to the Ethics Review Board.
A. First Reading of Ordinance No. 64, 1993, Amending Section 2-569 of
the Code Pertaining to Opinions of the Ethics Review Board.
B. First Reading of Ordinance No. 65, 1993, Amending Section 2-570 of
the City Code Pertaining to Council Appointments to Private
Agencies.
Ordinance No. 64, 1993, would amend Section 2-569 of the Code, dealing
with conflicts of interest, in two respects. First, language would be
added to provide that advisory opinions and recommendations of the Ethics
Review Board would be subject to review by the City Council. Secondly,
opinions adopted by the City. Council would serve as an affirmative defense
to any civil or criminal action or any other sanction against a
Councilmember or board or commission acting in reliance on the opinion.
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' Ordinance No. 65, 1993, would amend Section 2-570 of the City Code so as
to clarify that the City Council may appoint any number of its members to
serve in any capacity with either governmental or private agencies. Such
service would be considered service in an official capacity of the City
Councilmember and would generally not be considered as creating a conflict
of interest for Councilmembers in participating in any decision related to
such agencies.
14.
The proposed Ordinance would make certain changes to the appeals
provisions of the City Code. First, it would exclude from the definition
of an appealable "final decision" those decisions of boards and
commissions which consist solely of a recommendation of the City Council.
Secondly, it would require that all notices of appeal be signed by the
appellants. Finally, it would permit the introduction of new evidence on
appeal when the evidence is offered in support of or in opposition to an
allegation that a board or commission based its decision on false or
misleading evidence.
15.
The funds will be used for Foothills. Mall Outlet Box Office equipment and
for banquet tables, replacement thermostats, carpet/tile rotation, and an
electric transformer.
16. First Reading of Ordinance No. 69, 1993, Appropriating Prior Year Savings
Realized from Increased Productivity and Operating Efficiencies.
In 1992, City Council adopted the Service Productivity Incentive Policy,
effective for 1992 and years thereafter. The goal of the policy is to
provide a framework within which a manager can develop a long-range
strategic plan for service delivery rather than rely on a short-term,
line -item cost approach.
An operating manager that has unspent and uncommitted appropriations as a
result of increased productivity and operational efficiency can carry-over
those dollars in their own reserve savings account. Managers may request
the use of the savings through the City Manager and City Council must
approve the request by an appropriation ordinance. Use of productivity
savings will be presented to Council twice a year for appropriation in the
current year.
The total savings as of year end 1992 from increased productivity and
operational efficiency amounts to $204,696.
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17.
Mile
19.
20.
The City Charter authorizes the Council, by ordinance or resolution, to
enter into intergovernmental agreements and cooperative or joint
activities with other governmental bodies. The proposed Ordinance would
delegate to the City Manager or his designee the authority to execute
certain kinds of routine intergovernmental agreements.
A. First Reading of Ordinance No. 71, 1993, Designating the Woolworth
Building/Welch Block as a Historic Landmark Pursuant to Chapter 14
of the Code of the City of Fort Collins.
B. Resolution 93-94 Authorizing the Issuance of a Building Permit for
the Woolworth Building/Welch Block.
This request for Local Landmark Designation for 107 N. College Avenue,
known as the F.W. Woolworth Building/Welch Block, is being initiated by
Tom Schmittling, owner/operator of Pour La France Restaurant, one of the
tenants. Mr. Schmittling intends to use the State Tax Credit for Historic
Preservation and the building must be historically designated for him to
do so. The owner and also a tenant of the building, Jacques Rieux, has
consented to the local designation. A public hearing was held by the
Commission on June 23, 1993, at which time the Commission voted to
recommend designation of this property.
The Landmark Preservation Commission and City Staff are pleased to
recommend the building located at 107 N. College Avenue as a local
landmark for its historical importance.
The property owners of the tracts in the Raintree P.U.D. abutting
Snowberry Street have requested the vacation of the right-of-way for
Snowberry Street as originally platted with that P.U.D., located west of
Shields Street on the north side of Drake Road. The request is being
initiated in conjunction with the proposed development of the Preserve
Apartments P.U.D. which replats that portion of the Raintree P.U.D.
including the old Snowberry Street right-of-way.
The Airport Manager has negotiated a lease of property to the Virga
Corporation. The Virga Corporation will construct a 20 unit T-Hangar on
the property. These units will be rented (or sold subject to the
underlying lease), by the Virga Corp., to aircraft owners/operators. The
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airport will receive one percent of the rents. At the end of the Virga
Corporation lease, the T-Hangars will revert to the ownership of the
Cities. The term of the lease is 25 years with three, five-year extension
options.
In addition to generating new revenue for the Airport, the hangars will
meet aircraft storage needs of local airplane owners who now store their
aircraft at other airports, some in other counties.
The Airport Manager has negotiated a lease of property to Keith Griffith
for the construction and sublease of aircraft hangars. The lease includes
Lot 3 and the West 34.29 feet of Lot 2 of the Barnstorm Second Addition to
the City of Loveland. Keith Griffith will build one hangar on each of the
12 lots. Each hangar will provide at least 1,764 square feet of aircraft
storage space and will generate a maximum of $4,700 in land rents annually
upon complete build-out/sub-lease to aircraft owners/operators. The
hangars will be sublet (or sold subject to the underlying lease) to
aircraft owner/operators by Keith Griffith, with the Airport receiving one.
percent of the rents. This is a twenty-five year lease, with three five-
year extension options, bringing the total length of the lease to forty
years. At the expiration of the lease, the improvements revert to the
ownership of the Cities.
I
The construction of the hangars will generate new revenue for the Airport
and help meet the aircraft storage needs of local aircraft owners.
22.
Item 3 of the Fort Collins -Loveland Airport Master Plan, which is
currently being completed by Isbill Associates of Denver, indicates
modification and upgrading of the Airport sign system of a major capital
priority.
In order for the Fort Collins -Loveland Municipal Airport to be authorized
to land aircraft with more than 31 passenger seats, the Federal Aviation
Administration must inspect and certify the Airport. The current sign
system at the Airport does not meet the certification standards of the
FAA. The Fort Collins -Loveland Municipal Airport is currently pursuing
FAA certification so that Continental Express may begin serving the
Airport with ATR 42's, a 46 passenger aircraft, this September. This
grant will provide funding.necessary to improve the signs on the aircraft
parking ramp, taxiways and runways.
23.
24.
25.
Resolution 93-96 Authorizing the Mayor to Execute a Grant Agreement with
the State of Colorado Division of Aeronautics for Financial Assistance to I
Purchase Snow Removal Equipment and a Mass Casualty Trailer Unit.
This resolution authorizes acceptance of a grant of $50,067 from the
Colorado Department of Transportation. These grant funds will be used to
pay a portion of the cost of two airport improvement projects. These
improvements are consistent with the capital improvement section of the
Airport's five year master plan currently being completed by Isbill
Associates of Denver and intended to enhance the safety and operations of
the Airport.
Council previously considered this matter and adopted a similar Resolution
(Resolution 92-36) on February 18, 1992. This item has been brought
forward upon the recommendation of the Council Legislative Review
Committee and is urgent because of the timing of critical Congressional
hearings.
The Forest Service is attempting to acquire 18,761 acres of land owned by
the Union Pacific Company in Cherokee Park for incorporation into the
Roosevelt National Forest. In 1992, the Forest Service requested that
Congress appropriate funds for this acquisition in the FY 1993 Interior
Appropriations bill. Congress did not approve the appropriation. This '
year, a similar request has been made with hopes that the measure will be
included in the 1994 budget. The appropriation would be for $2.7 million
from the Land and Water Conservation Fund (LWCF). Adoption of the
Resolution will support the Forest Service's request.
At its April 20, 1993 meeting, during discussion relating to boards and
commissions liaison appointments and committee assignments, Council
determined that the functions of the previously established Water Demand
Management Committee and Water Quality/Water Treatment Master Plan
Committee should be consolidated into one committee responsible for
addressing water -related issues.
On June 1, 1993, Council adopted Resolution 93-78 establishing a
consolidated Water Planning Committee and appointing Councilmembers Apt,
Janett, and McCloskey to serve on the Committee. In keeping with the
composition of the Water Demand Management -Committee and the Water
Quality/Water Treatment Master Plan Committee before they were
consolidated into one committee, Resolution 93-78 should have included a
section providing for three members of the Water Board to serve on the
Water Planning Committee in addition to the three Councilmembers.
112
This Resolution amends Resolution 93-78 to establish that the Water Board
' shall select three of its members to serve on the Water Planning
Committee.
26. Resolution 93-99 Finding Substantial ComDliance and Initiatina Annexation
27.
The property being considered for annexation is approximately 5 acres in
size and is located on the south side of Harmony Road, approximately one
half mile east of Timberline Road (County Road 11). The.property is under
single ownership and is located within the Fort Collins Urban Growth Area.
The property is currently vacant and zoned FA-1, Farming, in the County.
The proposed zoning for this annexation is E-P, Employment Park, due to
its proximity to the Harmony Road corridor. For the purposes of
annexation, the property is being split roughly in half, the north 2.763
acres being Ricketts First Annexation and the south 2.065 acres being
Ricketts Second Annexation.
The proposed Resolution determines that the two annexations comply with
the Municipal Annexation Act and the Intergovernmental Agreement for the
Fort Collins Urban Growth Area, determines that a hearing should be
established regarding the annexations, and directs that proper notice be
given of the hearing. The hearing will be held at the time of first
reading of the annexation and zoning ordinances on August 17, 1993.
NG11 rCLC1 DVll MIIIICAGLI VII QIIV LVII 111V VIILII VV I LV.
A. Resolution 93-100 Setting Forth Findings of Fact and Determinations
Regarding the Frame Annexation.
B. Hearing and First Reading of Ordinance No. 75, 1993, Annexing
Property Known as the Frame Annexation to the City of Fort Collins,
Colorado.
C. Hearing and First Reading of Ordinance No. 76, 1993, Amending the
Zoning District Map Contained in Chapter 29 of the Code of the City
of Fort Collins and Classifying for Zoning Purposes the Property
Included in the Frame Annexation.
D. Resolution 93-101 Setting Forth Findings of Fact and Determinations
Regarding the Karl Peterson Annexation and Zoning.
Hearing and First Reading of Ordinance No. 77, 1993, Annexing
Property Known as the Karl Peterson Annexation to the City of Fort
Collins, Colorado.
Hearing and First Reading of Ordinance No. 78, 1993, Amending the
Zoning District Map Contained in Chapter 29 of the Code of the City
of Fort Collins and Classifying for Zoning Purposes the Property
Included in the Karl Peterson Annexation.
113
On June 1, 1993, the City Council considered and approved Resolutions
determining that the proposed annexations are in compliance with State '
law. The Resolutions also initiated the annexation process for those
properties by establishing the date, time, and place when a public hearing
would be held regarding the Ordinances annexing and zoning the areas.
Public Hearing and First Reading of the Ordinances annexing and zoning the
property were scheduled for July 6, 1993.
Because of a notification error, the scheduled hearing cannot proceed on
July 6, and staff recommends that items pertaining to the Frame and Karl
Peterson Annexations be postponed until July 20. Postponement will meet
legal requirements, delay the annexation process by only two weeks, and
avoid the necessity of starting the annexation initiation process over
again.
Items on Second Reading were read by title by City Clerk Wanda Krajicek.
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10.
11.
12.
Second Reading of Ordinance No, 57, 1993, Vacating a Portion of the Right -
of -Way for Butch Cassidy Drive as Dedicated With the Plat of Sundance I
Hills P.U.D.. Filing Two. and Retaining the Same for a Utility, Drainage
and Public Pedestrian and Bicycle Access Easement.
Items on First Reading were read by title by City Clerk Wanda Krajicek.
13. Items Relating to the Ethics Review Board.
14.
A. First Reading of Ordinance No. 64, 1993, Amending Section 2-569 of
the Code Pertaining to Opinions of the Ethics Review Board.
B. First Reading of Ordinance No. 65, 1993, Amending Section 2-570 of
the City Code Pertaining to Council Appointments to Private
Agencies.
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18.
19.
20.
21.
27.
A. First Reading of Ordinance No. 71, 1993, Designating the Woolworth
Building/Welch Block as a Historic Landmark Pursuant to Chapter 14
of the Code of the City of Fort Collins.
Sublease of Aircraft Hangars.
B. Hearing and First Reading of Ordinance No. 75, 1993, Annexing
Property Known as the Frame Annexation to the City of Fort Collins,
Colorado.
C. Hearing and First Reading of Ordinance No. 76, 1993, Amending the
Zoning District Map Contained in Chapter 29 of the Code of the City
of Fort Collins and Classifying for Zoning Purposes the Property
Included in the Frame Annexation.
E. Hearing and First Reading of Ordinance No. 77, 1993, Annexing
Property Known as the Karl Peterson Annexation to the City of Fort
Collins, Colorado.
F. Hearing and First Reading of Ordinance No. 78, 1993, Amending the
Zoning District Map Contained in Chapter 29 of the Code of the City
of Fort Collins and Classifying for Zoning Purposes the Property
Included in the Karl Peterson Annexation.
115
33. Items Related to the Sale of a Tract of Land in the Cunningham Corners PUD
and the Disposition of the Cunningham Corner Barn.
B. First Reading of Ordinance No. 79, 1993, Authorizing the Sale to the
Shields Street Corporation of Real Property Described as a Tract of
Land in the Cunningham Corner PUD.
37. Items Relating to Utility Enterprise Ordinances.
A. Hearing and First Reading of Ordinance No. 60, 1993, Establishing
the City's Electric Utility as an Enterprise of the City and
Amending Chapter 26 of the Code.
B. Hearing and First Reading of Ordinance No. 61, 1993, Establishing
the City's Water Utility as an Enterprise of the City and Amending
Chapter 26 of the Code.
C. Hearing and First Reading of Ordinance No. 62, 1993, Establishing
the City's Wastewater Utility as an Enterprise of the City and
Amending Chapter 26 of the Code.
D. Hearing and First Reading of Ordinance No. 63, 1993, Establishing
the City's Stormwater Utility as an Enterprise of the City and
Amending Chapter 26 of the Code.
Councilmember Winokur made a motion, seconded by Councilmember McCluskey, to
adopt and approve all items not removed from the Consent Calendar. ,
The vote on Councilmember Winokur's motion was as follows: Yeas: Councilmembers
Apt, Azari, Janett, McCluskey, and Winokur. Nays: None.
THE MOTION CARRIED.
Ordinance No. 70, 1993
Authorizing the City Manager or Designee to
The following is staff's memorandum on this item.
IYIY.•
The City Charter authorizes the Council, by ordinance or resolution, to enter
into intergovernmental agreements and cooperative or joint activities with other
governmental bodies. The proposed Ordinance would delegate to the City Manager
or his designee the authority to execute certain kinds of routine
intergovernmental agreements.
116 1
BACKGROUND:
The City Charter provides in Article II, Section 16, that the Council may, by
ordinance or resolution, enter into agreements to furnish governmental services
and make charges for such services, or enter into cooperative or joint activities
with other governmental bodies. Section 29-1-203 of the Colorado Revised
Statutes also authorizes such agreements, but only if they are approved by the
legislative bodies of each contracting party or "other authority having the power
to so approve."
Frequently, the Council is presented with resolutions authorizing the Mayor to
execute these kinds of agreements. Many of these are routine in nature and are
either necessary to implement previous Council direction or entail little, if
any, expenditure of funds by the City. The purpose of this proposed Ordinance
is to expedite the processing of such agreements by authorizing the City Manager
or his designee to execute certain kinds of intergovernmental agreements rather
than requiring all such agreements to be reviewed by the Council.
The authority delegated by this Ordinance would be limited to those agreements
which fall into one of two categories:
Category 1: Agreements that entail no significant policy issues and
less than a $5,000 expenditure by the City; and
Category 2: Agreements that implement previous Council direction
and: (a) are required by state or federal law OR (b)
' involve less than a $50,000 City expenditure.
Examples of agreements which could be administratively approved under this policy
are the following:
Category 1: (No policy issues/less than $5,000 expenditure)
CSU Water Testing Agreement'
CSU/Computer System (CAD) Agreement
Category 2: (Implement existing policy direction/required by law or less than
$50,000 expenditure)
Poudre R-1 Development Liaison Agreement
CSU Fish and Benthic Biosurvey Agreement
FAUS/STP Funding for Bicycle Lanes Agreement
Larimer County/Library Services Agreement
Examples of agreements which would still require Council approval would include:
Poudre R-I Master Agreement
ASCSU Transit Services Agreement
Larimer County/Social and Human Services Agreement
D.A.R.E. Agreement
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If this ordinance is adopted by the Council, it is anticipated there would still '
be a need for a case -by -case determination as to whether particular cooperative
arrangements with other governmental entities required formal Council approval.
In those instances where the answer was unclear, it would be staffs intention
to submit those agreements to Council for review."
City Attorney Roy explained the Ordinance provisions and listed the criteria for
executing the agreement.
Councilmember Apt asked if there could be a notification mechanism placed on
agreements below the $50,000 mark. He stated that Council does not need to
formally review them, but needs to be informed.
City Manager Burkett stated there was no provision in the Ordinance to notify
Council; however, if Council wanted to include a provision between $50,000 and
some lower number it could be done.
Councilmember Janett asked why the long standing policy needs to be changed.
City Manager Burkett stated its only been within the last year or two that
routine intergovernmental agreements have been brought before Council. He stated
several months ago Council asked staff to provide an Ordinance to address this
issue.
Councilmember Winokur made a motion, seconded by Councilmember McCluskey, to
adopt Ordinance No. 70, 1993 on First Reading.
Councilmember Winokur asked for additional language to be placed in the Ordinance '
that would provide Council notice of the lower dollar agreements. He asked if
that additional options of the language could be provided on second reading.
City Manager Burkett stated the additional language could be included in the
Ordinance on Second Reading.
Councilmember Apt stated that between $25,000 and $50,000 a notice would be
provided to Council.
The vote on Councilmember Winokur's motion was as follows: Yeas: Councilmembers
Apt, Azari, Janett, McCluskey, and Winokur. Nays: None.
THE MOTION CARRIED.
City Manager Burkett updated Council on the clean-up after the wind storm that
occurred on Saturday, July 3. He estimated that 175 hours were spent by various
City crews trying to clean-up the areas impacted the most by the storm. He
stated about 60 public trees were lost and acknowledged the hard work by the
crews in order to prepare City Park for the celebration of the Fourth of July.
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Councilmember Reports
Councilmember Winokur referenced several items on the Consent Calendar and stated
that Item #8 is just another example of the Finance Department assuring the
financial health of the City. He stated that it made sense to extend the
depository contract to the end of the year for fiscal year purposes and would
provide for effective competitive bidding. He extended compliments to the City
Manager and Councils who developted the productivity and operating efficiencies
concept. He believed that he did not have any conflict of interest on Item #24
and that he supported the purchase by the Forest Service. He referenced the
meeting with representatives from Fitches Investment Agency regarding the PRPA
bond rating.
Resolution 93-91
Adopting the Financial and Management Policies
Relating to the 1994 Annual Budget and Adopting a
Revenue Allocation Formula to Define the City's Contribution to the
Poudre Fire Authority for the Year 1994.
The following is staff's memorandum on this item.
'EXECUTIVE SUMMARY
Financial and Management Policies are used to establish guidelines for the Annual
Budget and long-range financial plans. The policies reflect Council direction
and commitment to sound financial planning and management.
Council postponed consideration of this Resolution on the June 15 agenda to allow
the Council Finance Committee opportunity to further review and recommend changes
to the policies. The Council, by unanimous motion, adopted "Option 2 - 70th
Percentile with a Lag" as the total compensation policy. That policy has been
incorporated into the policies referenced in Resolution 93-91.
BACKGROUND:
I. Financial and Management Policies.
The Financial and Management Policies form the basis for the City of Fort
Collins' Annual Budget. The Council Finance Committee and staff have reviewed
the proposed changes to the policies. Only material changes or additions to the
Financial and Management Policies have been listed below. The complete Financial
and Management Policies, with additions, changes, and deletions, are shown in
Exhibit "A" to the Resolution.
Section 1.2 Revenue and Expenditure Limitation has been added. This section
gives a general overview of the revenue and expenditure limitations imposed by
Article X, Section 20 of the State Constitution.
Section 2.5 Private Contributions has been expanded to address question of
' application of Article X, Section 20 of the State Constitution to private
contributions.
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Section 3.2 Payment in Lieu of Taxes (PILOT). Language has been added to clarify I
that the rate charged is based on the franchise and property tax that would be
charged to a privately -owned utility.
Section 3.4 Human Resource Management and Productivity Policy has been modified
to reflect the alternative methodology, 70th percentile with a lag, adopted by
motion of the Council on June 15. Language was added to.clarify that the
policies apply to all City employees, except hourly, seasonal, and temporary
employees.
Medical Insurance and Retirement Plan has been amended to indicate
to the General Employee Retirement Plan are anticipated in the next
year.
Section 3.7 Poudre Fire Authority - Revenue Allocation Formula has been amended.
The change recognizes the limits imposed by Article X, Section 20 and arrives at
a contribution formula that is equitable for Poudre Fire Authority and the City.
Section 4.2(a) Light & Power Utility has been modified to clarify that all
significant changes to the purchase power reserve shall be reported to the
Council.
Section 5.2 Restricted Reserve for Emergencies has been added to achieve
compliance with Article X, Section 20 of the State Constitution. In 1993,= one
percent must be reserved, two percent in 1994, and for all later years, three e
percent of fiscal year spending, excluding bonded debt service, must be reserved. o
All City funds, excluding the Utilities, will contribute the required percentage '
into the General Fund which will be held in the Restricted Reserve for
Emergencies. The General Fund required percentage will be funded from the
existing Designated Reserve for Financial Uncertainty. The Emergency Reserve can c
be used only for declared emergencies.
Section 5.2 Designated for Financial Uncertainty has been amended to read that
the amount of money to be held in this reserve plus the General Fund portion held
in the Restricted Reserve for Emergencies should be a minimum of 3.5% of approved
General Fund operating expenditures.
Section 5.2 Designated for Eouipment Replacement has been changed to Designated
for Equipment Replacement Loans. This reserve is established in place of the
equipment replacement reserve. The reserve will provide a revolving loan pool
for the timely replacement of operating equipment using existing resources.
Operating managers could borrow from this loan pool to bridge the period of time
when the equipment is needed and the next available lease/purchase package,
typically presented to Council twice a year. Any loan plus interest would be
paid back into the pool. The loan pool reserve will be self -funding.
II. Revenue Allocation Formula.
In December 1981, Council entered into an agreement with the Poudre Valley Fire
Protection District, creating the Poudre Fire Authority.
120
According to the Intergovernmental Agreement between the City of Fort Collins and
the Poudre Valley Fire Protection District, the City will contribute funding for
maintenance and operating costs to the Authority based on a "Revenue Allocation
Formula" ("RAF"). The RAF is to be set annually based upon a percentage of sales
and use tax revenues (excluding dedicated sales and use tax revenues that must
be spent on specific projects) and a portion of the operating mill levy of the
City's property tax.
Section 2 of this Resolution will set the RAF at a sum equal to .303 of one cent
of the 2.25 cent sales and use tax applicable to all taxable sales and uses plus
67.09% of the operating property tax levy. It is anticipated that the resulting
contribution to Poudre Fire Authority will adequately meet the proposed 1994
expenditures as detailed in its Master Plan."
City Manager Burkett presented background information on action from the June 15
meeting pertaining to this item. He stated Alan Krcmarik would review the
proposed changes in the financial policies segment and Pete Dallow would review
the total compensation issues.
Alan Krcmarik, Director of Finance, explained the changes to various sections of
the financial policies. He noted that all budget activities of the City of Fort
Collins will be consistent with Amendment 1.
Pete Dallow, Director of Administrative Services, reviewed the process and the
impacts of Option 2 on the employees. He stated Council identified this issue
as an item to review as part of the its work plan and policy agenda. He stated
the Personnel Board and staff recommend the policy remain at the 70th percentile.
Councilmember McCluskey made a motion, seconded by Councilmember Apt, to adopt
Resolution 93-91 deleting Section 3.4 and directing Council to revisit that
component of the financial policies on July 20.
Councilmember Winokur asked for clarification on Section 5.2 regarding the fund
distribution. He stated he was pleased with the rewording of the retirement
program for the general employees. He asked if the Pension Plan would be a form
of deferred compensation or unfunded liability.
Krcmarik replied the distribution of funds will remain separate. He stated the
Emergency Reserve would be funded from a portion of the fund designated for
financial uncertainty. He stated the Plan would not be a form of deferred
compensation, but would remain a Pension Plan.
Councilmember Janett asked for specific examples of employee salaries under the
old methodology versus the new methodology.
Councilmember Apt believed Council was unclear on the meaning of what the 70th
percentile is and how it is calculated. He stated that City employees are valued
and do outstanding work.
Councilmember Winokur asked for the specifics on what impact all the suggested
' changes to the retirement plan would have on total compensation.
121
Molly Davis, City Clerk, stated she has been a classified City employee for over '
19 years. She read and presented Council with petitions containing over 600
signatures from the City employees. She stated the City employees who signed the
petitions have around 6,347 years of service with the City and referenced the
petition language.
David Meyer, Water and WasteWater, suggested reviewing previous salary years of
the 70th percentile compared to the new methodology. He stated reviewing
historical statistics would better show the variance between the two suggested
plans. He stated that 3 or 4 different pay lines should also be taken into
consideration.
Susanne Edminster, Finance, stated she has been employed with the City for over
12 years. She noted that employee attendance was low at the June 15 meeting
because employees believed their opinions did not matter to Council. She stated
many of the City employees are in attendance at this meeting because they are
concerned about the motion which Council adopted on June 15. She stated not all
of the City employees in attendance will address Council, but confirmed that many
of the employees are the crews from Light and Power, Parks & Rec, Golf, Forestry,
Streets, Cemeteries, Traffic, Building Inspectors, Police Officers and many more.
She believed the City employees are partners with Council in creating good
government to serve the needs of the City's customers. She stated that City
employees want the opportunity to work with Council to resolve problems and to -
anticipate any problems before they may happen-. She urged Council to reconsider
the June 15 decision and reaffirm its confidence in the employees of the City.
She asked Council to send a message to all the City employees that they are
valued and appreciated. z '
John Van Gorder, Poudre Fire Authority, stated he has been an employee for 15
years. He stated that Council does not directly set the pay plan for the Poudre
Fire Authority; however, the PFA Board follows many of the policies that are --set by Council. He stated the proposed policy's effects are drastic and stated that .4
it would drop the PFA compensation to the 40 percentile of the cities that PFA
compares with. He appreciated Council postponing this segment of the financial
policies for a chance to get better acquainted with the various effects that a
proposal of this sort would have on the employees. He stated the PFA employees
urge Council to leave the current policy in place.
Dennis Sumner, Light and Power, stated that many of the employees worked several
hours of overtime preparing the City for the Fourth of July weekend. He stated
that a Councilmember comment on using the pay plan to weed out employees is
highly unacceptable. He stated a misconception of the 70th percentile is that
City employees receive 20 percent more than the average pay. He appreciated the
support and enthusiasm that Council is giving to the General Employees Retirement
Program.
122 1
John Moran, Poudre Fire Authority, provided statistics comparing PIA', current
pay plan to the Mountain Region and National average pay plans. He stated that
the City hires high caliber people who perform their jobs better, cheaper and
with less personnel than many other cities. He stated the employees of the City
are striving for excellence and are willing to provide extra effort to make Fort
Collins the "Choice City". He stated if Council adopts Option 2 the morale of
the employees will drop considerably. He urged Council to retain the current
compensation policy.
Janet Meisel, Planning, commended Council on efforts put forth on the retirement
segment of the Financial Policies Plan. She stressed that the retirement plan
included survivor benefits and the changing of the vesting program. She asked
that the Retirement Committee bring such information to Council in a short time
period.
Stephanie Schultz, Finance, stated that she has been a resident of Fort Collins
for 22 years and commends previous Councils for the efforts taken to improve this
City. She stated the path that Council undertook on June 15 is not a favorable
one. She stated the employees of the City strive to do the best job for the
residents to make this community the best it can be. She stated as a full-time
City employee for over 17 years, she has given over 100 percent on every project.
She stated she has put forth over 400 hours of donated time to the City in order
to provide the very best service for its customers. She stated she takes pride
in the job she has done for the City and believed she would be hard pressed to
be more productive or work harder for less wages.
' Donna Visocky, Parks and Recreation, appreciated Council taking the time to
review this portion of the financial policies in order to make the best choice
for the employees of the City. She stated the City of Fort Collins is a
beautifully planned and well maintained City due to the hard work of the
employees of the City. She stated the majority of the over 900 employees are not
upper management and do not receive $50,000, $60,000 or $70,000 in pay. She
stated most City employees are also struggling to support a family. She stated
the needs of the City employee's families are the same as those in the community.
She did not believe it was right to pay the employees less than what they are
worth, just because that is what the market in Fort Collins will to allow. She
stated the people she works with strive to provide the very best product and
service they can for the community. She stated if Council does not value the
City employees, what kind of value do they place on the services they provide.
Patti Schneeberger, City Clerk, stated she has worked for the City for 22 months
and has provided the best service possible for Council and the public. She
stated she has donated several hours of time in order to achieve the high quality
of work put forth to Council and the public. She asked Council to respect the
high quality of City employees. She stated City employees respect Council for
what they provide to the community as well as to the City employee. She stated
that if Council adopts Option 2 of the policy, the message is sent that the
employee does not matter. She stated if that message is sent that Council does
not care anymore, why should the City employees care about what services they
provide for Council and the community. She urged Council to retain the 70th
percentile because the City employees are worth that and much more.
123
Jim Broderick, Police Department, stated that many Police Department employees '
alone donate time to the City and believed that is the culture throughout all
City departments. He believed that adopting Option 2 would erode that culture
that has been developed throughout the departments and once that culture is gone
it is very hard to get back. He stated it is just not monetary value that
concerns the employees as much as it is Council respect and recognition. He
believed the Police employees would sacrifice their salaries for a year or two
in order to put more cops on the street.
Todd Juergens, Engineering Department, stated he has worked for the City for four
years and believed it was unjust to expect the City employees to welcome their
cost of living raise a year behind everyone else in the community. He urged
Council to reconsider its decision of June 15 and allow the City employees a
chance to keep up with the cost of living.
Troy Krenning, Police Department, stated that the decision to postpone this
portion of the financial policies was very wise. He believed the new
Councilmembers have made an effort to work with the employees and appreciated the
positive feedback.
Mike Thornton, Police Department, stated it is hard to make sacrifices, only to
have a policy making body make the statement that the City should try to pay less
but obtain the same level of service. He stated the statistics show that City
employees have done more work for less pay and less cost to the City than most
other surrounding cities. He asked Council to take a different approach to the
compensation policy and involve the employees in the process.
Ray Martinez, Police Department, believed the City could not afford to pay the '
employees their real worth and urged Council to retain the 10th percentile. He
stated it concerns him when an officer states he/she does not need cover or can
someone clear a call to come and assist him/her. He stated that concerns of that
magnitude project there is low manpower of officers. He stated the Constitution
of the United States does not say "We the Government", but that it states "We the
People". He urged Council to represent "We the People" and not the small
minority who can scream the loudest. He stated Council's own motto is "together
we're better."
Kirsten Whetstone, Planning Department, stated City employees are highly skilled,
efficient, professional, and dedicated. She stated highly qualified employees
make the City of Fort Collins a great place to live. She stated employees are
an asset to the entire community and urged Council to send the employees and the
citizens a positive message of retaining the loth percentile.
Councilmember McCluskey stated he agrees with several of the statements made from
the employees; however, his main concern was to review the process and maybe
provide a longer term policy. He believed consistency with the policy should
take priority over reviewing the policy every year.
Councilmember Apt stated he appreciated the feedback the employees offered on
this item.
124
fl
,t
Councilmember Janett appreciated the input from the employees. She stated she
would review the City's overtime policy.
Councilmember Winokur stated the employees of the City have the chance to voice
their concerns, unlike many who work for the Federal Government. He stated he
can appreciate knowing what it feels like to be one of the six lowest paid
employees of the City. He stated he understands the concept of donating time and
not getting compensated. He stated the options for the Financial Policy did not
emanate from Council, but were presented from staff. He stated a longer term
policy is a good idea and stated he was totally dissatisfied with the General
Employees Retirement Plan. He believed the overall general policies have
improved over the past several years.
Mayor Azari congratulated all the work and effort put into preparing the
Financial Policies. She suggested that an annual meeting take place between
Council and the employees to discuss these issues. She believed the language of
the 70th percentile is misleading and should be reworded in a way that is
understandable to the Council, the employees, and the community. She believed
Council and the employees should strive to do the very best for the citizens of
Fort Collins.
The vote on Councilmember McCluskey's motion was as follows: Yeas:
Councilmembers Apt, Azari, Janett, McCluskey, and Winokur. Nays: None.
THE MOTION CARRIED.
Resolution 93-102
Adopting the Recommendation of the
Cultural Resources Board Reaardina Fort Fund Disbursements, Adopted.
The following is staff',s memorandum on this item.
'EXECUTIVE SUMMARY
The following disbursements from funds in the City's Cultural Development and
Programming Account were recommended by the Cultural Resources Board at its
regular meeting of June 23, 1993.
Hatton Gallery,
CSU
Event
"Painting in Paris"
High Plains Arts 1993-94 Season
Council (Friends of Traditional Dance)
Fort Collins Museum
Fort Collins Symphony
Skookum Days
Beethoven in Bluejeans
125
Amount Amount
Reaueste Recommended
3,400 3,400
5,500 5,000
800 800
2,000 1,700
One West Art Center
Outdoor Cafe
Theatre/CSU
Ft. Collins Symphony
Front Range Chamber
Canyon Concert Ballet
Human Race Committee
Lutheran Family
Services
YIPS, Poudre R-1
Volunteer Clearing
House
Ice Skating Club of
Fort Collins
OpenStage Theatre
CSU/Environmental
Learning Center
National MS -Colo.
Chapter
CO - WY Biennial
"America Today..."
1993 Theatre Season
Sinfonietta Concerts
"Summer Notes"
"Amahl & Night Visit."
New West Fest Program
10th Annual Human Race
Resolution Run
Odyssey of the
Mind Tour
Sing Out Saturday
Night
Skate Fest
Student Dress Previews
"Critterman & the
Wolves"
The New MS 150
2,500
1,350
2,000
2,000
3,000
3,000
1,600
10,000
1,000
7,493
1,300
4,000
4,500
1,500
5,000
2,100
1,000
2,000
1,500
2,000
1,800
1,000
2,000
600
4,000
1,000
2,100
2,100
'
500
1,000
TOTAL f 61,943 $ 35,600"
Dave Siever, Director of Cultural Services, gave a brief presentation on this
project.
Councilmember Winokur made a motion, seconded by Councilmember Janett, to adopt
Resolution 93-102.
Karen Warren, representative of the Cultural Resources Board, stated the Board
recommended these allocations because they benefit the community. She urged
Council to adopt the Resolution.
Councilmember Janett asked if the Board has a system when prioritizing the
requests for funding.
Warren replied there are certain guidelines for submitting applications and the
Board has a list of criteria it follows when allocating the funds.
4 126
I
Chip Grant, 3500 Rolling Green, representative of the Human Race Committee,
stated he appreciated the opportunity to apply to Fort Fund, but believed there
was not a sufficient amount of funds allocated to the 10th Annual Human Race.
He stated the amount asked for would allow for a higher quality race and would
I increase the tax base in Fort Collins.
Councilmember Winokur stated he appreciated the time and effort put forth by the
Cultural Resources Board.
Mayor Azari believed cultural activities expand the monetary value and the
psychic wealth of the community. She stated the City would continue working on
projects such as this in order to build up funds for the opportunity to bring
more cultural events to this community.
The vote on Councilmember Winokur's motion was as follows: Yeas: Apt, Azari,
Janett, McCluskey, and Winokur. Nays: None.
THE MOTION CARRIED.
Items Related to the Sale of a Tract of
Land in the Cunningham Corners PUD and the
Disposition of the Cunningham Corner Barn.
The following is staff's memorandum on this item.
"FINANCIAL IMPACT
The property was acquired by the City in satisfaction of the City's lien for
special assessments levied against it. In securing the deeds, the City also paid
for appraisals, title work, environmental audits, general taxes, and property
maintenance. Section 22-97(f) of the Code authorizes the City to deduct those
expenses from the proceeds of sale and credit the remainder to the special
assessment fund to pay principal and interest. A breakdown of the application
of the proceeds for the proposed sale is included in the body of this agenda item
summary.
Various options for disposition of the
expenditure of a minimum of $8,000 t
sources also vary with each option.
EXECUTIVE SUMMARY
o
Cunningham Corner Barn would require the
a maximum of about $80,000. Funding
A. Resolution 93-103 Determining the Final Disposition of the Cunningham
Corner Barn.
B. First Reading of Ordinance No. 79, 1993, Authorizing the Sale to the
Shields Street Corporation of Real Property Described as a Tract of Land
in the Cunningham Corner PUD.
127
In February of 1993 staff rejected
May an offer of $75,000 because
restoration and use of the barn.
Issues for Consideration
Price
an offer for the property of $102,500 and in
of the low amount. The lower bid included
Appraised value for multi -family use is $300,000 or $50,000/acre (without the
barn). However, there is only one property in the City that recently sold for
this amount. It was near the Raintree/Senior Citizen Center site where most of
the development amenities are in place. Development of Tract C at Cunningham
Corners requires purchase of a single family home for the purpose of extending
Richmond Drive to Shields Street and providing an additional point of access.
This is likely to depress the offering price but has been considered in the most
recent appraisal.
Sale of the property for commercial use may result in an offer of $360,000 or
more but commercial development is not likely for another three years. There is
currently $273,000 of debt on the property which increases by about $1300 per
month ($15,600 per year). Holding the property for three years should bring an
offering of at least $320,000 to allow the City to break even.
The following is an itemization of the assessment lien and City costs on Tract
D:
Assessment Lien:
Principal
Interest (to 1211193)
Total
Costs:
General Taxes
Title Policy and other
Total
Total All Costs:
In order to evaluate the
will provide the City in
the per acre sales price
versus the appraised pe
Tract D
$172,822
98.497
$271,319
7,245
1,200
$ 8,445
$279.764
bid offers, it is important
terms of debt payment. The
needed to pay all costs or
r acre value of the land.
Iry
to know what the sales price
following chart illustrates
principal and interest only
ti
1
1
In February of 1993 staff rejected an offer for the property of $102,500 and in
May an offer of $75,000 because of the low amount. The lower bid included
restoration and use of the barn.
Issues for Consideration
Price
Appraised value for multi -family use is $300,000 or $50,000/acre (without the
barn). However, there is only one property in the City that recently sold for
this amount. It was near the Raintree/Senior Citizen Center site where most of
the development amenities are in place. Development of Tract C at Cunningham
Corners requires purchase of a single family home for the purpose of extending
Richmond Drive to Shields Street and providing an additional point of access.
This is likely to depress the offering price but has been considered in the most
recent appraisal.
Sale of the property for commercial use may result in an offer of $360,000 or
more but commercial development is not likely for another three years. There is
currently $273,000 of debt on the property which increases by about $1300 per
month ($15,600 per year). Holding the property for three years should bring an
offering of at least $320,000 to allow the City to break even.
The following is an itemization of the assessment lien and City costs on Tract
D:
Assessment Lien:
Principal
Interest (to 1211193)
Total
Costs:
General Taxes
Title Policy and other
Total
Total All Costs•
Tract D
$172,822 �
98.497
$271,319
7,245
1.200
$ 8,445
$279,764
In order to evaluate the bid offers, it is important to know what the sales price
will provide the City in terms of debt payment. The following chart illustrates
the per acre sales price needed to pay ail costs or principal and interest only
versus the appraised per acre value of the land.
129
Price per Acre
To recover all costs: $ 46,627
To recover P & I: 45,220
Per appraisal: 50,000
Current offer: $ 43,334
Options for the Shields Street Offer
Shields Street bid as offered and find a use for the barn.
2. Accept the Shields Street bid with modifications to the contract.
3. Either of the above and demolish the barn.
4. Reject .the offer and continue marketing the property.
Staff asks that the Council provide direction on the current offer for the
Cunningham Corner property as acceptance (adoption of the Ordinance as written),
rejection, or amendment (propose a counteroffer).
Barn Disposition
Experience shows that the barn is a liability to development. If the barn is
removed a higher dollar amount is bid than if the barn is restored. This makes
good economic sense because the cost of restoration as estimated by Dick
Beardmore of CSU is about $20/sf. At 3000 sf, the barn would cost $60,000 to
renovate. This does not include a new concrete slab foundation or a bathroom
facility. So anyone bidding who is willing to keep the barn on site is likely
to reduce the purchase offer by $60,000 to $80,000.
Staff has been exploring options for City use in the event there is no choice but
to remove the barn. Natural Resources is considering using the building as a
"resource center" on one of the natural areas. There is also the option of
dismantling the barn in sections and storing it on City property until a site is
found. These options are difficult to implement because dismantling the barn in
sections can only be done by experts and moving the barn in one piece will cost
a minimum of $20,000. Not many departments have the financial resources to
undertake this project. Funding might be available from the state, but the
application process is time-consuming.
The Landmark Preservation Commission addressed this issue at its meeting on June
23. The recommendation, which is attached, is that the City relocate the barn
to suitable City property and restore it as a landmark for public use. Funding
could be obtained through grants and volunteers as well as City resources. The
Commission did not recommend use of the Historic Preservation Account.
If the Shields Street Corporation offer is accepted, the City must remove the
barn from the site within sixty days of closing either by relocation or
demolition.
130 '
Options for the Cunningham Corner Barn
1. Move the barn to a City -owned property and restore and renovate it for
public use. Approximate cost of $80,000 - funding from Historic
Preservation Account.
2. . Move the barn to a privately -owned property and let the property owner
restore it for private use. Approximate cost of $20,000 - funding from
Historic Preservation Account.
3. Demolish the barn and remove the remains from the site. Approximate cost
of $8,000 - funding source not identified.
Staff recommends adoption of Option 2."
City Manager Burkett gave a brief description of the various components involved
in this item.
Susanne Edminster, Financial Policy Analyst, stated the property was received by
the City in lieu of assessment payments for Special Improvement District #82.
She stated the offer for sale on the property contains a contingency which
requires the City to remove the barn. She stated the Landmark Preservation
Commission recommends Council to,adopt Option 1 for the Barn.
Councilmember McCluskey made a motion, seconded by Councilmember Winokur, to
adopt Resolution 93-103 Option 2.
Councilmember McCluskey asked if time could be given to the Landmark Preservation
f ; Commission to raise funding to restore the Barn. He suggested if funding could
not be found that the City would resort to Option 2.
Ruth Weatherford, representative of the Landmark Preservation Commission, stated
it might be possible to obtain funding. She stated Natural Resources could have
a possible use for the Barn if it were moved to open space.
Councilmember Winokur asked what the process would be if the Resolution were to
pass.
Edminster stated if Option 2 were adopted there would be a modified request for
proposals from individuals who have an interest in obtaining the Barn and placing
it on their private property.
Councilmember Janett asked if the City would be reimbursed the $20,000 moving
cost.
Edminster stated the City would not be reimbursed.
Councilmember Apt ask what is included in the $60,000 renovation cost.
Edminster stated that cost would be for complete restoration of the roof, floors,
and electrical.
131
Edminster stated the PUD contingency has been removed; however, there is a
contingency that requires the purchaser to be allowed to secure construction
financing for the project.
Councilmember Winokur made a motion, seconded by Councilmember McCluskey, to
adopt Ordinance No. 79, 1993 on First Reading.
Councilmember Janett asked what happens if financing is not found by December 1,
1993.
Edminster stated according to the contract the closing is scheduled for December
1, 1993. If the contingencies are not met, the deal will fall through.
Tom Sibbald, prospective buyer, Shields Street Corporation, stated there is a
provision allowing the Corporation to waive that contingency.
Councilmember Janett asked when the process would go through Planning and Zoning.
Sibbald stated the process would go through Planning and Zoning before the
closing.
Councilmember Winokur stated he appreciated the amount of work put forth by staff
on this issue. He believed historic preservation and affordable housing are two
of Council goals that would be met by the passing of these two issues. He
believed the offer is reasonable and provides many benefits to the City and the
community.
Councilmember McCluskey stated he supported the Resolution and believed the City
has a valid offer and should act on it immediately.
Mayor Azari stated this offer would benefit the entire community as well as the
City.
The vote on Councilmember Winokur's motion was as follows: Yeas: Councilmembers
Apt, Azari, Janett, McCluskey, and Winokur. Nays: None.
THE MOTION CARRIED.
Resolution 93-104
Authorizing Waivers from the UGA Public Street Capacity
Requirement to Construct Off -Site Street Improvements and for
The following is staff's memorandum on this item.
"FINANCIAL IMPACT
A waiver to the public street capacity requirement results in the payment of a
waiver fee of $700 per additional lot for development of this site, for a total
of $21,700.
a
132
' Edminster stated the PUD contingency has been removed; however, there is a
contingency that requires the purchaser to be allowed to secure construction
financing for the project.
Councilmember Winokur made a motion, seconded by Councilmember McCluskey, to
adopt Ordinance No. 79, 1993 on First Reading.
Councilmember Janett asked what happens if financing is not found by December 1,
1993.
Edminster stated according to the contract the closing is scheduled for December
1, 1993. If the contingencies are not met, the deal will fall through.
Tom Sibbald, prospective buyer, Shields Street Corporation, stated there is a
provision allowing the Corporation to waive that contingency:
Councilmember Janett asked when the process would go through Planning and Zoning.
Sibbald stated the process would go through Planning and Zoning before the
closing.
Councilmember Winokur stated he appreciated the amount of work put forth by staff
on this issue. He believed historic preservation and affordable housing are two
of Council goals that would be met by the passing of these two issues. He
believed the offer is reasonable and provides many benefits to the City and the
community.
' Councilmember McCluskey stated he supported the Resolution and believed the City
has a valid offer and should act on it immediately.
Mayor Azari stated this offer would benefit the entire community as well as the
City.
The vote on Councilmember Winokur's motion was as follows: Yeas: Councilmembers
Apt, Azari, Janett, McCluskey, and Winokur. Nays: None.
THE MOTION CARRIED.
Resolution 93-104
Authorizing Waivers from the UGA Public Street Capacity
Requirement to Construct Off -Site Street Improvements and for
Contiguity to Existing Development for Fox Hills Preliminary PUD, Failed.
The following is staff's memorandum on this item.
A waiver to the public street capacity requirement results in the payment of a
waiver fee of $700 per additional lot for development of this site, for a total
of $21,700. '
133
EXECUTIVE SUMMARY '
The requests pertain to the Fox Hills Preliminary County PUD, located 112 mile
-west of Taft Hill Road, south of County Road 38E. The preliminary plan consists
of subdividing a 19.9 acre site into 31 single-family lots and three open
space/drainage tracts. The site is zoned FA -I Farming and the surrounding land
uses consist of large -lot single-family residential uses. The site is not
eligible for annexation because it does not meet the 116 contiguity requirement.
City limits are presently located 114 mile east of this site.
In order for a property to be subdivided in the Urban Growth Area, it must be
shown that the property will conform to the UGA Phasing Criteria. Of the four
Phasing Criteria, the proposed development meets the requirement for public water
capacity (provided by Fort Collins -Loveland Water District) and public sewer
capacity (provided by South Fort Collins Sanitation District). Waivers are being
requested for the requirements for public street capacity and for contiguity to
existing development.
Under the Phasing Criteria for public street capacity, the developer would be
responsible for improving Red Fox Road from the site to County Road 38E, to
current City local street standards, and for improving County Road 38E, an
arterial street, from the site to Taft Hill Road. Improvements to Taft Hill Road
to the Horsetooth/Taft Hill intersection would also be required. The addition
of 31 homes in this area does not warrant the extensive improvements that would
be required, given that this area has developed, to a large extent, through the
County's Minor Residential Development (MRD) process, which does not require
street improvements. ,
The site does not meet the 116 contiguity requirement. There is a County -
approved subdivision, Westridge Estates, adjacent to this site to the south;
however, the contiguous boundary on the southern property line does not meet 116
of the perimeter of the Fox Hills site, falling approximately 300' short.
The intent of the waiver process is to avoid the imposition of unnecessary
impediments to infill development proposals or sites. Infill development sites
are those in essentially developed portions of the Urban Growth Area whose impact
on existing services and facilities is relatively minimal. Infill sites are
differentiated, in the Larimer County Supplemental Regulations, from sites that
require the extension or upgrading of basic infrastructure and other services and
facilities, so that the development or use of the site can proceed (which, in the
County's Regulations are referred to as "Sequential Development Proposals").
The Larimer County Commissioners may waive phasing criteria provided that:
The waiver will not result in unplanned public expense for provision of
public services, improvements, or facilities;
The waiver Ys consistent with the intent and purpose of the County and
adjoining municipality's Comprehensive Plan or Policies;
134 1
' 3. The waiver application contains material indicating approval may be
granted without substantial detriment to the intent and purposes of the
Supplementary Regulations which apply to the area;
4. The waiver application contains material indicating there are exceptional
circumstances which apply to the specific piece of property which do not
apply generally to the remaining property in the Urban Growth Area; and
5. The waiver application contains material indicating approval would not
impair the public health and safety by creating undesirable traffic
conditions, unhealthy sanitary conditions or adverse environmental
influences in the area.
This site is considered an Will site. The basic infrastructure needed to serve
the site is in place. The area has developed through a series of County -approved
MRD's and the site is considered in-fi11 development. Staff is recommending
approval of the waiver request with the following condition:
The waiver fee of $700 per
additional lot be collected at the time
of building permit."
Ken Waido, Chief Planner, gave a
brief explanation of the waiver process.
He
stated a development within the
UGA has to meet all four phasing criteria
in
order to be approved.
Councilmember Apt asked how the
figure for the street fee was calculated.
Waido stated the acreage figures
and traffic generation figures were totalled
to
arrive at total traffic counts
and were divided into the dollar amount
to
establish fees for a residential
unit.
Councilmember Janett made a motion, seconded by Councilmember McCluskey, to adopt
Resolution 93-104.
Councilmember Janett asked if the City plans on annexing this area in the future.
Waido replied that the particular site has not achieved contiguity to the
existing city limits. He stated there is a possibility of doing an enclave
annexation in the future.
Councilmember Janett asked if County Road 38E would meet the City's arterial
street requirements.
Waido stated that at this time County Road 38E does not meet the arterial street
requirements. He stated the street fees will be able to provide some
improvements to County Road 38E; however, it is unlikely that it will ever meet
the City's requirements.
Councilmember Janett asked about the outcome if Council chose not to approve this
waiver.
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Waido stated the City's role according to the UGA Agreement is to provide a '
recommendation to the Board of County Commissioners. He stated the Board of
County Commissioners has the final decision regarding the waiver.
Council member Winokur asked if these developments were approved prior to the road
improvement requirements in the UGA.
Waido stated most of the developments were approved in the County prior to the
UGA Agreement.
Councilmember Apt asked if there overall strategies or policies exist for these
fringe areas in the UGA.
Waido stated there is a foothills section located in the UGA Agreement which
outlines policies, development regulations, densities and land uses for that
area.
Councilmember Janett stated she was concerned with road improvements to County
Road 38E. She asked if future road improvements could be incorporated into the
Resolution.
Waido stated the County has a Capital Improvement Program and in the future could
allocate monies to help improve County Road 38E.
Councilmember Apt stated he would not support the Resolution and believed that
this does not benefit the taxpayers of this community.
Mayor Azari stated if the waiver was granted, the City could not expect these
'
developments to meet City standards due to being approved before the UGA
Agreement.
Waido stated since the developments were approved before the UGA Agreement they
are not required to meet any of the City's development standards. He stated the
Fox Hills Development is currently under the new criteria, but the pre-existing
developments are not.
Steve Sivon, developer, stated the streets in the Fox Hills Development are all
constructed to City standards.
Councilmember Winokur asked if this issue had been reviewed by the Planning and
Zoning Board or the UGA Review Board.
Waido replied this project was reviewed by the UGA Review Board. He stated as
a condition to approve this project, the developers were required to sign an
annexation agreement.
Councilmember Apt stated he would like a Foothills Policy to be written in order
to protect areas such as this. He stated before this agreement could be
approved, he would like some policies in place that apply City standards.
Mayor Azari stated she would support the Resolution because of the pre-existing '
agreements between the County and the City.
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' The vote on Councilmember Janett's motion was as follows: Yeas: Councilmembers
Azari and McCluskey. Nays: Councilmembers Apt, Janett, and Winokur.
THE MOTION FAILED.
Resolution 93-105
Authorizing a Waiver of the UGA Public Sewer Capacity
Reauirement for the Adamson Rezoning, Adopted.
The following is staff's memorandum on this item.
'EXECUTIVE SUMMARY
The request pertains to the Adamson Rezoning, located on the west side of Highway
287, at its intersection with Colorado Highway 1. The rezoning consists of a
request to rezone 1.5 acres from the County's 0-Open to C-Commercial zones, to
allow the sale of bedding plants and farm produce. The site presently contains
a vacant building (1945 North College) and the surrounding land uses consist of
commercial uses and a mobile home park to the west. The site is not eligible for
annexation having no contiguous boundary to current city limits.
In order for a property to be rezoned in the Urban Growth Area, it must be shown
that the property will conform to the UGA Phasing Criteria. Of the four Phasing
Criteria, the proposed development meets the requirement for public water
capacity (provided by the City of Fort Collins), public street capacity (Highway
287 is considered to be an improved arterial at this location) and contiguity to
existing development.
A waiver is being requested for the requirement for public sewer capacity. The
site is currently served by a septic system. Public sewer is approximately 850
feet from the site.
The intent of the waiver process is to avoid the imposition of unnecessary
impediments to infill development proposals or sites. Infi11 development sites
are those in essentially developed portions of the Urban Growth Area whose impact
on existing services and facilities is relatively minimal. Infill sites are
differentiated, in the Larimer County Supplemental Regulations, from sites that
require the extension or upgrading of basic infrastructure and other services and
facilities, so that the development or use of the site can proceed (which, in the
County's Regulations are referred to as "Sequential Development Proposals").
The Larimer County Commissioners may waive phasing criteria provided that:
The waiver will not result in unplanned public expense for provision of
public services, improvements, or facilities;
The waiver is consistent with the intent and purpose of the County and
adjoining municipality's Comprehensive Plan or Policies;
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3. The waiver application contains material indicating approval may be '
granted without substantial detriment to the intent and purposes of the
Supplementary Regulations which apply to the area;
4. The waiver application contains material indicating there are exceptional
circumstances which apply to the specific piece of property which do not
apply generally to the remaining property in the Urban Growth Area; and
5. The waiver application contains material indicating approval would not
impair the public health and safety by creating undesirable traffic
conditions, unhealthy sanitary conditions or adverse environmental
influences in the area.
This site is considered an infill site. The basic infrastructure needed to serve
the site is in place. The area has developed without public sewer service and
the site is served by a septic system. A note will be placed on the plat of the
property requiring the property to connect to public sewer when sewer service is
provided within 400 feet of the property. As a condition of granting the sewer
waiver, the property also commits to entering into a special improvement district
for the extension of sewer service in the area. The proposed rezoning provides
for reuse of an existing building and impacts are expected to be minimal. Staff
is recommending approval of the waiver request."
Ken Waido, Chief Planner, gave a brief description of the requested waiver.
Councilmember Janett asked what would trigger notification to the landowner to
hook onto the sewer. '
Waido stated a notation is placed on the plat and as part of granting the waiver
the applicant is required to agree to enter into a special improvement district.
Councilmember Janett made a motion, seconded by Councilmember Apt, to adopt
Resolution 93-105.
The vote on Councilmember Janett's motion was as follows: Yeas: Councilmembers
Apt, Azari, Janett, McCluskey, and Winokur. Nays: None.
THE MOTION CARRIED.
Resolution 93-106
Approving the Forms of a Fifth Supplemental Indenture and a
Forbearance Agreement and Authorizing the Execution of the
Fifth Supplemental Indenture and Other Documents Relating to the
City's Industrial Development Revenue Bonds,
The following is staff's memorandum on this item.
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6
'FINANCIAL IMPACT
The industrial development revenue bonds are not obligations of the City of Fort
Collins. Repayment of the debt is made from revenues generated by the project
or other revenues available to the owner. Therefore, there is no direct
financial risk to the City. There is indirect risk to the City and to the
.Downtown Development Authority because of the tax increment bonds. Beginning in
1995, the tax increment is projected to fall short of the annual debt service.
The proponents of the refinancing project have requested a reduction in the
assessment. While this would reduce the annual increment and increase the
projected shortfall, it is projected to improve the viability of the project.
Interest earnings, monies held in reserves, and a special reserve in the sales
tax fund are available to cover the debt service for several more years.
EXECUTIVE SUMMARY
To assist in the financing and the redevelopment of The Opera House Project, the
City of Fort Collins has issued $5.8 million of tax-exempt industrial development
revenue bonds and $1 million of taxable industrial development revenue bonds.
The bond issues were done with an agreement by the project owners and developers
that the tax increment from the project would be sufficient to pay a
proportionate share of the Downtown Development Authority's tax increment bond
debt service. In addition to these amounts, Investors Real Estate Trust has
loaned the project about $750,000 for construction and tenant finish. Fund
America also has a $237,000 lien on the project. Despite the investment of these
resources much of the project is vacant.
' The Opera House Project Bonds were first approved by the City in 1986. To
complete the project, a series of modifications have been made to the original
financing documents for the project and all have been approved by the Council.
The bonds for the project are now or will be owned by Houlihan, Lokey, Howard &
Zukin (Houlihan Lokey), a financial investment company that specializes in
distressed property sales, restructuring, and refinancing.
Through the changes to the trust indenture and the forbearance agreement, the
bondholder will reissue only a portion of the tax-exempt revenue bonds. In
addition, the bondholder will transfer additional cash to the project to complete
the construction and interior of the project so that the vacant space may be
leased. The combination of these two events, lower debt and finished space, are
projected to allow the project to cover its costs.
The Opera House Project has a history that reaches back to 1984. The developer
of the project sought tax-exempt industrial development revenue bonds at that
time. Due to some difficulties in finalizing the transaction, the project
financing was not completed in 1984. An expanded project was conceived in 1986
and this project was approved for industrial development revenue bonds in the
amount of $5.8 million.
139
The Opera House Project is a mixed use commercial development consisting of '
retail, restaurant and office space. The project is located in the middle of the
100 block of North College Avenue. The project includes three buildings and an
enclosed mall and atrium which also serve as a covered pedestrian link between
the LaPorte America parking lot and North College Avenue. The project consists
of 27,200 square feet of net rentable retail and restaurant space and 46,500
square feet of net rentable office space.
The financing for the project includes:
S 5,800,000 Tax -Exempt Industrial Development Revenue Bonds
1,000,000 Taxable Industrial Development Revenue Bonds
750,000 Loan from Investors Real Estate Trust
(Loaned to the Opera House Partnership to satisfy
mechanics liens, construct tenant improvements, maintain
reserve levels, and other related costs.)
The Opera House Partnership agreed that it would not seek reassessment of the
project (to lower property taxes) for the life of the DDA tax increment, 2006.
The current owners of the project are bound by this agreement.
The Opera House Partnership conveyed title to the pedestrian mall to the DDA in
return for the DDA reimbursing the Partnership for the costs of constructing such
improvements. The bondholder agreed not to seek reassessment of the project for
a period of 5 years commencing July 20, 1990.
The proposal from Houlihan Lokey has the following objectives: '
• Remarket $2.8 million of Tax -Exempt Bonds (the Senior bonds)
• Establish a Capitalized Interest Reserve Fund which will be used to meet
interest payments on the Senior Bonds during the initial leasing period
• Retire, in full, all Taxable Bonds Repay the Investors Real Estate Trust
Loan Pay all past due real estate taxes
• Set up a Tenant Improvement Fund of about $1,050,000
• Create an Operating Reserve Fund of about $200,000 to fund cashflow
shortfalls during the lease period.
Houlihan Lokey has also expressed an interest in having the annual property taxes
on the project reduced in order to increase the chances of a successful project.
City and DDA staff have indicated that this is problematic in that by 1995 the
tax increment bonds will need additional monies to cover annual debt service.
The DDA will place debt service savings in 1992, 1993, and 1994 into a reserve
account which will be used to offset tax increment shortfalls in subsequent
years. In addition to the debt service savings, interest earnings on all
reserves the City established a sales and use tax reserve of $200,000 to be used
to cover shortfalls in the DDA tax increment collections, should the other
140
sources be completely used. The DDA Board discussed this item at its June 3 and
June 30 meetings. The DDA Board agreed that the property tax agreement should
be modified to assist in improving the economic viability of the project.
Staff recommends approval of the resolution contingent on finalizing an agreement
regarding the tenant finish for the project, parking arrangements and
commitments, and the level of property taxes anticipated to be paid by the
project in future years. Councilmember Horak, liaison to the DDA Board, has
provided a memo summarizing his views on this subject."
Alan Krcmarik, Director of Finance, gave a brief description of this item. He
stated there is no direct debt that the City would need to cover with respect to
Industrial Development Bonds. He stated the City would need to approve a
modification to the agreement and approve a forbearance agreement.
Rick Goodale, DDA Board Chairperson, stated the Board supports the Resolution and
stated the goal is to increase the economic viability of the downtown area. He
believed the Opera Galleria is an opportunity to increase that viability. He
stated the Board believed the LaPorte -America lot is also a priority to secure
as permanent parking.
Councilmember Winokur made a motion, seconded by Councilmember McCluskey, to
adopt Resolution 93-106.
Councilmember McCloskey asked if the Board had an ownership preference of the
LaPorte -America lot.
Chip Steiner, DDA Executive Director, responded that the Board did not have a
specific preference, but wanted to resolve the issue of the parking lot. He
stated if the City purchases the lot, it is removed from the tax roles.
City Manager Burkett stated that Council has authorized the City to acquire the
lot. He stated Council has also authorized condemnation proceedings. He stated
the City would be working with the owners to acquire the property and try to work
out an arrangement.
Councilmember Winokur asked if the values would increase if improvements were
made to the building.
Steiner stated the values would increase. He stated the Assessor would recognize
the funds needed to complete tenant finish which would add to the value of the
building.
Councilmember Janett asked about the City's risk.
Krcmarik stated the worst case would be that the City would still have a project
that does not perform. He stated another case would be if the property were
bought and the tenant space was not completely utilized.
City Manager Burkett stated there are no guarantees. He stated if the City
decided not to agree to a reduction in the property tax, then the deal to
purchase could fall through.
141
Steiner stated that an agreement would require the purchaser to place any tenant I
finish funds in escrow, which would provide the City with the documentation
stating that the money is being spent for taxable improvements.
Councilmember Janett stated the City owned part of the Galleria should provide
easy access to the public for functions that might be held in the atrium. She
stated that the reservation process for the atrium should occur locally.
Steiner stated the property is managed by a receiver who does not give the
property much attention. He stated if this deal were to go through, a local
management firm might be chosen.
Councilmember Winokur asked if the buyer were to fail to fulfill its portion of
the agreement, will the City be released from any further obligations.
City Attorney Roy stated if the buyer were to breach the agreement it will
relieve the City of any obligations under that specific agreement.
Councilmember Winokur stated he would support the Resolution. He stated the
project has potential opportunities that deal with the parking lot. He stated
as the project moves forward, the overall plan for parking in the downtown area
should be reviewed. He believed that from a financial view point this project
makes the most sense to the City.
Councilmember McCluskey stated he would support the Resolution and expressed
appreciation for the hard work the DDA has put forth on this project.
Mayor Azari stated she would support the Resolution and was glad the parking lot I
was part of the project.
The vote on Councilmember Winokur's motion was as follows: Yeas: Councilmembers
Apt, Azari, Janett, McCluskey, and Winokur. Nays: None.
THE MOTION CARRIED.
Items Relating to Utility Enterprise Ordinances. Adopted.
The following is staff's memorandum on this item.
'EXECUTIVE SUMMARY
A. Hearing and First Reading of Ordinance No. 60, 1993, Establishing the
City's Electric Utility as an Enterprise of the City and Amending Chapter
26 of the Code.
B. Hearing and First Reading of Ordinance No. 61, 1993, Establishing the
City's Water Utility as an Enterprise of the City and Amending Chapter 26
of the Code.
C. Hearing and First Reading of Ordinance No. 62, 1993, Establishing the
City's Wastewater Utility as an Enterprise of the City and Amending '
Chapter 26 of the Code.
142
D. Hearing and First Reading of Ordinance No. 63, 1993, Establishing the
City's Stormwater Utility as an Enterprise of the City and Amending
Chapter 26 of the Code.
The City Charter was recently amended to enable the Council by ordinance to
establish each of the City's existing utilities as enterprises within the meaning
of Amendment 1. By the adoption of these ordinances, Council would implement the
authority granted by the voters.
BACKGROUND:
On April 6, 1993, a majority of the registered electors of the City approved an
amendment to Article V, Part II, Section 19.3, of the City Charter, pertaining
to the issuance of revenue securities. The purpose of this amendment was to
ensure that the City's existing utilities could qualify as "enterprises" within
the meaning of Article X, Section 20, of the Colorado Constitution ("Amendment
I"). The significance of qualifying as an Amendment I enterprise is that such
enterprises are exempt from the election requirements and the spending
limitations of Amendment 1.
Under Amendment 1, an enterprise is defined as "a government -owned business
authorized to issue its own revenue bonds and receiving under ten percent of
annual revenue in grants from all Colorado state and local governments combined."
Clearly, the City utilities receive less than ten percent of their annual
revenues in grants from state or local governments. Prior to the City Charter
amendment, however, only the City itself was authorized to issue revenue bonds.
' Thus, the Charter amendment was intended to ensure that the City's utilities
could qualify as Amendment 1 enterprises by authorizing the utilities to issue
its own revenue bonds.
It is important to note that the new Charter language merely enables Council to
establish the City's utilities as enterprises. To implement this authority,
Council would need to adopt an ordinance for each utility it wished to establish
as an enterprise. Pursuant to direction received from Council at its May 25 work
session, ordinances have been prepared for each of the City's existing utilities:
electric, water, wastewater and stormwater.
The only effect of the ordinances would be to establish the utilities as,
enterprises and to empower the enterprises to issue their own revenue bonds. In
all other respects, the operations of the utilities would remain the same and the
powers of the City Council, City Manager and Utilities Services Director and
other officials and employees of the City would remain the same. Except for
having to convene as an enterprise board in order to issue revenue bonds for the
enterprise, the Council's relationship to each utility would remain unchanged by
the passage of these ordinances, as would the operation of the utility itself.
From a financial standpoint, staff recommends that the electric, water,
wastewater and stormwater utilities be established as enterprises. The rationale
for this recommendation is the same as was presented to Council in support of
Charter Amendment 1. In the materials supporting that amendment (which are
' attached), staff concluded that the City's utilities should be excluded from
Amendment No. 1 for the following reasons:
143
I . Enterprises were intended (by the author of Amendment 1) to be '
excluded.
2. The City has historically operated its utilities as self-
supporting enterprises under its Council -adopted Financial and
Management Policies.
3. Retaining the utilities in the City's Amendment No. 1
calculations could pose a financial risk to tax -supported City
services. (The risk stems from the volatility _in the
utilities' revenue growth that may be caused by a number of
factors outside the control of the City, including weather
fluctuations, local construction cycles and customer driven
demand for additional services.)
4. The financial health of the utilities would likely be harmed
if its revenues and expenditures were governed by Amendment I
limitations, because demand for services is not correlated
with the two basic components of the growth limit.
In summary, staff believes that operating the utilities as enterprises will be
consistent with both Amendment I and the governmental accounting principles that
the City has followed for many years and the customers of all City services will
be better served."
City Attorney Roy presented Council with background information on this item.
He stated the voters approved a Charter Amendment which enabled Council to '
establish by Ordinance any of the existing utilities as enterprises within the
meaning of Amendment 1.
Councilmember Winokur made a motion, seconded by Councilmember Apt, to adopt
Ordinance No. 60, 1993 on First Reading.
Councilmember Winokur stated he would support the Ordinances. He stated that the
utilities are owned by the citizens and believed the utilities primary purpose
is to meet the needs of the citizens.
The vote on Councilmember Winokur's motion was as follows: Yeas: Councilmembers
Apt, Azari, Janett, McCluskey, and Winokur. Nays: None.
THE MOTION CARRIED.
Councilmember Winokur made a motion, seconded by Councilmember Janett, to adopt
Ordinance No. 61, 1993 on First Reading.
The vote on Councilmember Winokur's motion was as follows: Yeas: Councilmembers
Apt, Azari, Janett, McCluskey, and Winokur. Nays: None.
THE MOTION CARRIED.,
Councilmember McCluskey made a motion, seconded by Councilmember Winokur, to '
adopt Ordinance No. 62, 1993 on First Reading.
144
' The vote on Councilmember McCluskeyyIs motion was as follows: Yeas:
Councilmembers Apt, Azari, Janett, McCluskey, and Winokur. Nays: None.
THE MOTION CARRIED.
Councilmember Apt made a motion, seconded by Councilmember McCluskey, to adopt
Ordinance No. 63, 1993 on First Reading.
The vote on Councilmember Apt's motion was as follows: Yeas: Councilmembers
Apt, Azari, Janett, McCluskey, and Winokur. Nays: None.
THE MOTION CARRIED.
Resolution 93-107
Making Appointments to Various Boards and Commissions Adopted
The following is staff's memorandum on this item.
'EXECUTIVE SUMMARY
Vacancies currently exist on various boards and commissions due to resignations
from board members and the expiration of terms of members of boards and
commissions.
Applications were recruited during March and April. Council received copies of
the applications and Council teams interviewed applicants during May and June.
At its June 15 meeting, Council made appointments to 16 boards and commissions.
This Resolution, which contains the names of those individuals recommended for
appointment by each Council interview team, makes appointments to the following
boards and commissions:
Election Board
Liquor/Massage Licensing Authority
Planning and Zoning Board
Retirement Committee
Senior Advisory Board
Interviews for the Electric Board, Storm Drainage Board, and.the Water Board (for
a vacancy created by a resignation) have not been completed. These appointments
will be made at a later meeting."
Councilmember Winokur made a motion, seconded by Councilmember Apt, to adopt
Resolution 93-107.
Councilmember Janett stated that Joe Carroll was not reappointed to the Planning
and Zoning Board. She stated there was a lot of support in favor of Mr. Carroll,
but believed.the two new people appointed would further the Council's policy
agenda. She thanked Mr. Carroll for his time and effort on the Planning and
Zoning Board.
145
The vote on Councilmember Winokur's motion was as follows: Yeas: Councilmembers
Apt, Azari, Janett, McCluskey, and Winokur. Nays: None. I
THE MOTION CARRIED.
Other Business
Councilmember Apt stated he would like the "Bull Farm" item to become apart of
the July 20th agenda and asked for more information on the Police complaint
process.
Councilmember Winokur made a motion, seconded by Councilmember Janett, to adjourn
to 6:15 p.m. on Tuesday, July 13, 1993, to discuss mid -year performance reviews
of the City Attorney, City Manager, and Municipal Judge.
The vote on Councilmember Winokur's motion was as follows: Yeas: Councilmembers
Apt, Azari, Janett, McCluskey, and Winokur. Nays: None.
THE MOTION CARRIED.
The meeting adjourned at 11:40 p.m.
City Clerk •
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