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HomeMy WebLinkAboutMINUTES-09/21/1993-Regular' September 21, 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, September 21, 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, Horak, Kneeland, McCluskey, and Winokur. Councilmembers Absent: Janett. Staff Members Present: Dallow, Krajicek and Roy. Citizen Participation Barbara Allison, 1212 Lynnwood Drive, asked if a box could be placed on the front of her house to read the two meters that are in the backyard. She stated that two dogs guard and protect her property and pose danger to the readers. She stated if a box could not be placed on the front of the house, then a letter should be written to relinquish all liability on her part if the dogs were to bite a City employee. ' Dixie Johnson, business owner on North College Avenue, stated the bike paths from Redwood to Linden and from Hickory to Lee Martinez Park have been postponed. She stated that the bike paths should not be postponed because bicycle and pedestrian safety is very important. Citizen Participation Follow-up Councilmember Winokur asked about the completion timeframe for the trail loop. Mike Powers, Director of Cultural, Library, and Recreational Services, stated the bike trail is to be completed by June 1994. Councilmember Horak asked about the status of the two bike paths (Redwood to Linden and Hickory to Lee Martinez Park). Greg Byrne, Director of Community Planning and Environmental Services, stated both projects that were approved for North College are federally funded. He stated the City is required to go through a state and federal review process before the construction can actually begin. He stated the funds which are being spent are from old federal dollars which have a November 30th approval deadline on a state-wide basis. He stated the design and engineering work will be done this fall and the review process will be through the winter. The construction ' on those projects will begin in early spring. Councilmember Horak asked what steps have been taken to respond to Ms. Allison's request. September 21, 1993 Peter Dallow, Director of Administrative Services (Acting City Manager), stated ' Ms. Allison received a notice asking her to read the meter because the meter reader could not get into the backyard due to the dogs. He stated it was not uncommon for a meter reader not to read a meter due to some difficulty with animals, etc. He stated it would cost the City between $500 to $950 to relocate the meter and the Utilities Department believes there are other alternatives. Agenda Review Dallow stated that Item 29, First Reading of Ordinance No. 109, 1993, Appropriating Funds and Authorizing the Purchase of Certain Downtown Properties Owned by Trillium Corporation, has been revised. He stated that Resolution 93- 143 Authorizing the Mayor to Execute Amendment No. 1 to the Grant Agreement with the United States Federal Aviation Administration for the Construction of the Airport Rescue Fire Fighting Station at the Fort Collins -Loveland Airport has been included under the Other Business portion of the meeting. ***CONSENT CALENDAR*** This Calendar is intended to allow the City Council to spend its time and energy on the important items on a lengthy agenda. Staff recommends approval of the Consent Calendar. Anyone may request an item on this calendar to be "pulled" off the Consent Calendar and considered separately. Agenda items pulled from the Consent Calendar will be considered separately under Agenda Item #22, Pulled ' Consent Items. 7. Second Reading of Ordinance No. 100, 1993, Appropriating Prior Year h1 The Recreation Fee Policy, adopted by City Council in 1990, provides for the establishment of reserves with excess fund balance. A portion of the excess fund balance maintains an operating reserve, and the remainder supports equipment, program and capital needs, and special revenue from fund-raising and donations. This Ordinance, which was unanimously adopted on First Reading on September 7, 1993, authorizes the request to fund improvements in two areas: 1) equipment, repair, and capital needs at the Edora Pool Ice Center as a result of needed remodeling and renovation; and 2) remodeling at the Park Shop and the Grandview Cemetery Office to accommodate existing recreation sports staff offices at the Park Shop. City Council approved the sale of .34 acres of land to Diana Short, Alexander McEwan and David Kent on August 3, 1993. This site was sold because the Water Utility Department had abandoned the water transmission line and standpipe in 1990. In order to give clear title, staff is 256 September 21, 1993 ' requesting that this Grant of Right of Way be vacated. This Ordinance was unanimously adopted on First Reading on September 7, 1993. Q After the Water Utility Department abandoned this water line and standpipe, all public and private utilities and other City departments were notified and there was no interest or need expressed in the site. Under Chapter 22 of the Code, the City is authorized to sell property at the annual tax sale conducted by the Larimer County Treasurer if special assessments levied against the property have not been paid. The property was sold at the 1988 tax sale and a tax certificate of purchase was issued to the City as there were no interested private investors. The property was conveyed to the City through a treasurer's deed. Last May, the City Council adopted Resolution 92-91 establishing policies for the sale of such property. The City offered this property for sale in April and the only bid received was less than appraised value and was rejected. This offer of $300,000 for 18.6 acres (or $16,129/ac) is the appraised value of the land. This Ordinance was adopted 6-1 on First Reading on September 7, 1993. ' The proposed buyer submitted a new and substantially changed contract in response to the Ordinance adopted on first reading. Submittal was not received soon enough for staff to evaluate and make a recommendation to the Council for the September 21st meeting. Therefore, staff recommends that second reading be postponed to October 5th to allow time for review of the new contract. 10. 11. Section 2-263 of the City Code describes the functions of the Human Relations Commission (HRC). After reviewing Section 2-263, the HRC decided it would like to make changes to the Code in order to more accurately reflect the work of the HRC and acknowledge some significant changes to the role of the Commission. The HRC met with the City Attorney and together drafted the language presented in this Ordinance, which was unanimously adopted on First Reading on September 7, 1993. On August 17, 1993, Council adopted Ordinance 90, 1993, amending Ordinance 108, 1988, (Investment and Deposit of Public Funds for the City of Fort ' Collins). These ordinances define the kinds of securities in which City funds may be invested. This Ordinance, which was unanimously adopted on First Reading on September 7, 1993, will incorporate these additional 257 September 21, 1993 12. 13. 14. kinds of securities into the Cash Management and Investment Policy of the I City. The Cash and Investment Management Policy was originally adopted by Council in April 1990. The policies state that they shall be reviewed periodically and may be amended by City Council as conditions warrant. The changes proposed in the Ordinance reflect changes in the investment industry and are intended to improve clarity in some areas. The investment policies of the City are relied upon by several users (auditors, broker -dealers, banks), so addressing technical issues and giving clarity are important. The City is required by federal pretreatment regulations to develop technically -based limits for pollutants discharged by industries into the City's wastewater treatment system. These limits have been developed by the Wastewater Utility using EPA guidelines. Some limits have become more stringent, some less stringent, some have been eliminated and some new limits have been added. These limits are designed to protect the City's wastewater treatment system, worker health and safety, and the environment. Revenue in the Streets Ueoartment Portion of the transportation tuna. ' The Streets Department Work for Others (WFO) Program is a "dollar -in, dollar -out" program. In other words, every dollar spent is matched with a dollar of revenue. The work performed in the WFO Program is at the request of other City Departments. For example, Engineering contracts for cracksealing and patching for the street overlay project, Light and Power pays to repatch its trenches, Storm Drainage contracts for mowing detention ponds and cleaning catch basins, and Traffic pays for new sign or pavement marking installation. Each year during the budget process, Streets works with other City departments to estimate the demand for services, and budgets the amount as part of the WFO portion of the budget. The original estimate for the WFO 1993 budget was $800,000. Since that time, unanticipated street overlay work for Engineering and Storm Drainage requires the appropriation of an additional $750,000. Staff recommends that $360,000 of the TUF proceeds be transferred from the Transportation Fund Reserves and appropriated for the Street Overlay & Sealcoat Project in the Capital Projects Fund. These TUF proceeds will then be expended during the remainder of 1993 and into 1994 for the street , maintenance activities described in the preceding paragraph. The remaining $89,000 will be appropriated in the Streets portion of the 258 September 21, 1993 U 15. 16. 17. Transportation Fund as part of the 1994 budget process, and these funds will also be expended for local street maintenance activities. The property owners of the parcels abutting the right-of-way for Logan Court have requested the vacation of that right-of-way as it was originally platted with the Replat of the North Lemay Subdivision 2nd Filing, located north of Lincoln Avenue and west of Lemay Avenue. The owners each have plans for replatting and/or redevelopment that do not require Logan Court for access. The right-of-way for Logan Court is no longer necessary to retain since the purpose of the street was strictly to provide access within the previously proposed development. In addition, Logan Court was never constructed and no utilities were ever installed in the old right-of-way, with the exception of a sewer line which crosses perpendicular to the right-of-way in the cul-de-sac. This portion of the right-of-way will be retained as a utility easement. Staff supports the owners' request to vacate the right-of-way for Logan Court. The applicant, Henry S. Dyjak, on behalf of the property owner, Imu-Tek Animal Health, Inc., has submitted a written petition requesting annexation of 5.1181 acres located south of East Vine Drive and approximately 1/2 mile west of Interstate 25. The property is currently used for industrial purposes. There are several existing structures on the property. The proposed zoning for this annexation is IL, Limited Industrial. The surrounding properties are zoned IL, with a planned unit development condition. The proposed Resolution makes a finding that the petition substantially complies with the Municipal Annexation Act, determines that a hearing should be established regarding the annexation, and directs that notice be given of the hearing. The hearing will be held at the time of first reading of the annexation and zoning ordinances. Not less than thirty days of prior notice is required by State law. On July 6, 1993, Council approved Resolution 93-106 which approved changes to the Opera House Project ("the Project") Industrial Development Revenue Bonds. The approved changes would allow the Project financing to be restructured, lowering annual debt service costs, and this, in turn, would increase the probability that the retail and office space within the Project may be leased. 259 September 21, 1993 1E The approvals contained in Sections 1 and 2 of Resolution 93-106 are expressly contingent upon the City Council's subsequent approval of an intergovernmental agreement to be executed by the City, the Downtown Development Authority, the Bondholders and all other parties having a recorded interest in the Project. This agreement is to address the level of tenant finish, parking facilities for the Project, levels of tax revenues and others to protect the interests of the City. The original deadline for completion of and Council approval of the agreement was set for August 3, 1993, which deadline was extended by Resolutions 93-114 and 93-119, to August 17, 1993, and September 21, 1993, respectively. This resolution allows additional time, until October 19, 1993, for approval of the intergovernmental agreement. While progress has been made on the intergovernmental agreement, staff does not believe that portions of the agreement will be finalized in time for the September 21 meeting. The additional time should be long enough to finish up the negotiations and the intergovernmental agreement. Resolution 93-137 Making Appointments to the Affordable Housing Board At its August 3, 1993 meeting, Council adopted on second reading Ordinance No. 84, 1993 creating the Affordable Housing Board. The Board's duties are (1) to advise the City Council on matters pertaining to affordable housing issues of concern to the City; (2) to aid and guide the development of city-wide affordable housing programs to address currently existing and potential affordable housing issues; (3) to promote citizen participation and public education on city-wide affordable housing issues; (4) to be aware of and coordinate with the various other City boards and commissions whose actions may affect affordable housing in the community; and (5) to perform other such duties and functions and have other powers as provided by the Council. Members of the Board shall possess expertise in affordable housing issues, including, without limitation, issues pertaining to development, finance, lending, charitable and low-income services, and general community issues. Following creation of the Board, advertisements were placed. Councilmembers Janett and Horak conducted interviews and are recommending the following individuals be appointed to the Board to serve terms as indicated below: Name Expiration of Term Mary Cosgrove July 1, 1995 Cliff Kight July 1, 1995 Joanne Greer July 1, 1995 Ann Sanders July 1, 1996 Thomas Sibbald July 1, 1996 Craig Welling July 1, 1996 Robert Browning July 1, 1997 Susan Forgue July 1, 1997 Christa Sarrazin July 1, 1997 260 September 21, 1993 ' 19. 20. A vacancy currently exists on -the Community Development Block Grant Commission due to the resignation of Carolyn Early. Additional applications were solicited for this vacancy. Councilmembers McCluskey and Winokur interviewed new applicants, and reviewed the applications received during the annual appointment process. The interview team is recommending that Richard Ramirez be appointed to complete the term which expires July 1, 1996. At its April 20, 1993 meeting, Council adopted Resolution 93-57 approving and endorsing the appointment of Councilmember Bob Winokur to the Larimer County Fair Board. At the September 7, 1993 City Council meeting, Councilmember Bob Winokur requested Council select another individual to replace him on the Board. Councilmember Bob McCluskey expressed interest in serving on the Fair Board. This Resolution approves and endorses the appointment of Councilmember McCluskey to the Larimer County Fair Board. 21. Routine Deeds and Easements. a. Deed of Dedication for right-of-way from Poudre R-1 School District for Hinsdale Drive over a portion of land south of and adjacent to Harmony Road and in Section 2, Township 6 North, Range 69 West, Fort Collins, Colorado. Monetary Consideration: $0. b. Deed of Easements from Poudre R-1 School District for utilities and drainage purposes located adjacent to Hinsdale Drive. Monetary Consideration: $0. C. Deed of Easements from 327006 Alberta, Ltd. for utilities and sight distance purposes over portions of land in Huntington Hills Subdivision 2nd Filing. Monetary Consideration: $0. d. Deed of Dedication for right-of-way from Poudre R-1 School District for Corbett Drive and Preston Parkway over a portion of land south of Harmony Road and in Section 5, Township 6 North, Range 68 West, Fort Collins, Colorado. Monetary consideration: $0. e. Deed of Dedication from Poudre R-1 School District for utility purposes over a 15' wide portion of land running adjacent to the ' west side of Corbett Drive in Section 5, Township 6 North, Range 68 West, Fort Collins, Colorado. Monetary Consideration: $0. 4-11 September 21, 1993 f. Deed of Dedication from Poudre R-1 School District for utility ' purposes over a 15' wide portion of land running adjacent to the south side of Preston Parkway in Section 5, Township 6 North, Range 68 West, Fort Collins, Colorado. Monetary Consideration: $0. Deed of Dedication from Poudre R-1 School District for utility purposes over a 30' wide portion of land south of Preston Parkway in Section 5, Township 6 North, Range 68 West, Fort Collins, Colorado. Monetary Consideration: $0. h. Deed of Dedication from Poudre R-1 School District for drainage and access purposes over a portion of land adjacent to and west of Corbett Drive in Section 5, Township 6 North, Range 68 West, Fort Collins, Colorado. Monetary Consideration: $0. Deed of Dedication from Poudre R-1 School District for a sanitary sewer over a 20' wide portion of land running north and south from Corbett Drive to the southernmost property of the planned Southeast Jr. High School. Monetary Consideration: $0. The following deeds (j-u) pertain to the rededication of Rocky Road. Deed of Dedication from Edith Miller of 3650 W. Wade Lane, Colorado Springs, CO, rededicating a portion of right-of-way of Orchard Place adjacent to the south side of Lot 1, Three M Subdivision. Monetary Consideration: $1. ' Deed of Dedication from Dorothy M. Nazarenus of 707 Rocky Road, Fort Collins, CO, rededicating a portion of right-of-way of Rocky Road adjacent to the east side of Lot 4, Three M Subdivision. Monetary Consideration: $1. Deed of Dedication from Dorothy M. Nazarenus of 707 Rocky Road, Fort Collins, CO, rededicating a portion of right-of-way of Rocky Road adjacent to the east side of Lot 1, North Forty Subdivision. Monetary Consideration: $1. Deed of Dedication from Gary M. and Cynthia Eichin of 707 Coronado Avenue, Fort Collins, CO, rededicating a portion of right-of-way of Rocky Road adjacent to the east side of Lot 2, North Forty Subdivision. Monetary Consideration: $1. n. Deed of Dedication from Ray B. and Audrey Ann Hess of 2115 Westview Road, Fort Collins, CO, rededicating a portion of right-of-way of Rocky Road adjacent to the east side of Lot 3, North Forty Subdivision. Monetary Consideration: $1. o. Deed of Dedication from George and Tamela Sechrist of P.O. Box 2550, El Cajon, CA, rededicating a portion of right-of-way of Rocky Road adjacent to the east side of Lot 4, North Forty Subdivision. Monetary Consideration: $1. ' 262 September 21, 1993 ' p. Deed of Dedication from Ron Lewis and Linda Hoglund of 618 Rocky Road, Fort Collins, CO, rededicating a portion of right-of-way of Rocky Road adjacent to the west side of Lot 5, North Forty Subdivision. Monetary Consideration: $30. q. Deed of Dedication from Kenneth H. and Sherri K. Kidd of 3354 Dudley Way, Fort Collins, CO, rededicating a portion of right-of-way of Rocky Road adjacent to the west side of Lot 6, North Forty Subdivision. Monetary Consideration: $1. r. Deed of Dedication from Donald W. and Belinda Sue Reeves of 700 Rocky Road, Fort Collins, CO, rededicating a portion of right-of-way adjacent to the west side of Lot 7, North Forty Subdivision. Monetary Consideration: $1. S. Deed of Dedication from Frances Dean and Nancy L. Teter, owners of 708 Rocky Road, Fort Collins, CO, rededicating a portion of right- of-way of Rocky Road adjacent to the west side of Lot 8, North Forty Subdivision. Monetary Consideration: $1. t. Deed of Dedication from Harold L. and Belinda L. Johnson of 716 Rocky Road, Fort Collins, CO, rededicating a portion of right-of-way of Rocky Road adjacent to the west side of 716 Rocky Road. Monetary Consideration: $1. ' U. Deed of Dedication from David and Joanne Evans of 175 West Main Street, Malone, New York, rededicating a portion of right-of-way of Rocky Road adjacent to the west side of Lot 2 Hess Subdivision. Monetary Consideration: $75. In January of 1985, the City vacated a portion of Rocky Road right-of-way through the Rogers Park site. Due to an incorrect legal description of the area being vacated, the City also vacated portions of Rocky Road and Orchard Place south of the park site. This area includes right-of-way adjacent to 15 lots. Deeds of rededication from three of the lot owners have been accepted by City Council in 1987 and 1991. The remaining twelve deeds are now being brought up for acceptance to rededicate the right-of-way and insure public access for property owners in the area. Procedures for preparing deeds for council approval have changed to prevent this type of a mistake in the future. Currently, all legal descriptions are checked before deeds are brought to council. Powerline Easement from Sylvia Jane Davis, 1302 LaPorte Avenue, needed to underground existing overhead electric services. Monetary consideration: $10. ' Items on Second Reading were read by title by City Clerk Wanda Krajicek. 7. Second Reading of Ordinance No. 100, 1993, Aoorooriating Prior Year Reserves in the Recreation Fund. 263 September 21, 1993 8. Second Reading of Ordinance No. 101 1993, Vacating a Grant of Right -of- ' Way Recorded in Larimer County Records June 26. 1915, in Book 334, Page 291. a 10. Items on First Reading were read by title by City Clerk Wanda Krajicek. Corporation. 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: Councilmember Apt, Azari, Horak, Kneeland, McCluskey, and Winokur. Nays: None. THE MOTION CARRIED. Staff Reports Jean Helburg, Recreation Manager, provided an update on the new Senior Center project. She stated there were five bids received on the construction of the new Senior Center. All five bids exceeded the estimated construction costs by a minimum of $407,000 or eight (8) percent. She stated that the project has been delayed and there are three options of obtaining more funding for the project. 264 September 21, 1993 ' Councilmember Reports Councilmember Apt stated he received a letter from the Commission on Disability announcing acceptance of nominations for community awards recognizing outstanding contributions made by individuals, business enterprises, organizations, and agencies exhibiting dedication to persons with disabilities. Councilmember Kneeland offered a word of thanks to everyone who participated in the Environmental Fair. She stated a special thanks should go to Edith Felchle who did an outstanding job in organizing the fair. Mayor Azari stated the diversity meeting with the four entities will be held on September 29, 1993. She provided a brief summary about her trip to Boise, Idaho relating to growth management issues and land use processes. Public Hearing on the Proposed 1994 Budget Mayor Azari stated that Council has held one worksession on the proposed budget and there will be a second worksession on September 28th. She stated the purpose of the public hearing is for Council to hear the concerns, needs and any suggestions from the community on the City's proposed budget. John Peacock, Committee Chairperson of the Front Range Railroad, urged Council to move forward in improving the environment for the City of Fort Collins by ' supporting the Front Range Railroad. He stated the Front Range Railroad is a passenger/cargo operation that addresses today's problems now. He stated the City of Fort Collins is eligible to receive ISTEA funding for this project and requested Council approve matching funds in order to complete the project. He asked that the City of Fort Collins put together a feasibility study for this project. J Geoff Wolfe, owner of City Park Railway to consider funding for a new concession storm. He stated that 12 percent of the to the City. He requested that Council possibility of providing some funding to Park Railway. and concession operator, asked Council stand that was damaged by the July 3rd gross revenue from the Railway is paid discuss, with Parks and Recreation the rebuild a concession stand at the City Bruce Hendee, 2830 Mercy Drive, member of Challenge Fort Collins, urged Council to put together a feasibility study on the Riverwalk project. He stated the Riverwalk provides a community focal point and adds to the attraction of Downtown Fort Collins. He stated the idea of the Riverwalk is not new, but encourages Council to continue the vision of creating something great for the community. He stated the Riverwalk project would service the elements of education, arts, sciences and environment. He stated there should be a Council appointed Riverwalk Task Force that would research various Riverwalks throughout the country. N-V September 21, 1993 Herb Schlict, 405 Camino Real, stated the Neighborhood Youth Basketball Program ' was started on July 5th with 50 young people and ended on August 28th with over 300 young people. He asked Council to consider providing some additional funding for the program that could not reach some of the young people in our community. Alex Barnett, Chairman of Fort Net, stated the organization is a public access computer information network, whose purpose is to connect Fort Collins area residents and businesses to community resources. He asked Council to make funding for Fort Net a part of the 1994 budget. Steven Strauss, 5849 Plateau Court, Environmental Clearing House, stated the organization provides unbiased information to the public regarding environmental issues in one strategic location. He requested $500 from the City's budget to help in printing and production of a proposal for hiring a director. Jack O'Neill, 1307 Brittany Court, stated he supported the hiring of new police officers. He believed the hiring of more police officers would help deter the rise of gangs in the community. He stated the ratio of police officers per 1,000 residents is below the national average compared to cities of comparable size. He stated the need for more police officers is extremely high and urged Council to act now for the safety of the residents in Fort Collins. Gary Peterson, 1805 Crestmore Place, stated the D.A.R.E. program does not have a measurable impact on the young people in Fort Collins. He presented Council with a report on the statistics of how the D.A.R.E. program affects students. He stated young people view police officers as an authoritarian figure and would rebel rather than participate in the D.A.R.E. program. He stated there is more ' evidence that the D.A.R.E. program increases behavioral problems rather than reducing them. He stated the program is overfunded and should not be a part of the City's budget. Ed Secor, 621 LaPorte Avenue, stated that Citizen Planners is in full support of the Front Range Railroad concept. He stated this alternative mode of transportation will maintain air quality and avoid the congested traffic flow along the entire Front Range. He urged Council to support this project. He stated that as a private citizen he believed developing a Riverwalk would detract from the ambiance of the natural character of the river. Al Bacilli, 520 Galaxy Court, stated he was opposed to the D.A. R.E. program. He stated there is more need for police officers on the street patrolling than teaching programs such as D.A.R.E. He believed the Care -A -Van program is what needs extra funding. He stated the City should improve the service for the elderly and not cut the budget in areas which are needed for the elderly citizens in this community. John Jolly, 2101 Essex Court, stated he supported the request for additional police officers in the City of Fort Collins. He stated the Police Department is understaffed by 35 officers in comparison to other cities of this size. He believed the D.A.R.E. program is a necessity to the young people of this community. He stated that having a police officer take a proactive approach instead of a reactive approach provides a positive influence to the young people I in this community. 266 September 21, 1993 ' Maria Jolly, 2101 Essex Court, asked Council to approve a budget that would include more police officers to patrol this community. She stated the presence of more officers is a proven deterrent against crime. She supported the D.A.R.E. program and believed it is a positive influence on the young people in the community. She believed a holding facility for children under the age of 18 is needed in this community to provide an adequate resource for the Police Department. Chuck Washington, 1601 Brentford Lane, supported increasing the police force. He stated Fort Collins is growing rapidly and there are not enough officers to enforce the laws and provide safety for the citizens of this community. He stated that just approving 7 officers still leaves the Police Department understaffed, but that 7 officers is better than no additional officers. Ruth Washington, 1601 Brentford Lane, asked Council to approve the hiring of additional police officers. She believed that since the Police Department is so understaffed, the officer's safety is at great risk. Chris Olivas, 745 Alta Vista, supported the hiring of additional police officers. He stated his neighborhood has had three drive -by shootings and believed the community and its officers are at great risk in trying to fight crime. He believed the D.A.R.E. program works in the best interests of the young people of this community. Bruce Lockhart, 2500 East Harmony Road, believed the Front Range Railroad would have a negative impact on the Fort Collins/Loveland Airport. He believed there was not a great need for a railroad because of the current commuter service from the airport. He stated he was opposed to the D.A.R.E. program and that the program needs to be reviewed further. He believed the crime and gang problem is being driven by societal factors and adding more police officers would not solve the problem. Resolution 93-140 Concerning Regulation of the Rates for the Basic Service Tier and Associated Equipment of the Cable System of Columbine CableVision. (Options 1-3) The following is staff's memorandum on this item. "EXECUTIVE SUMMARY Staff is requesting Council action with regard to one of the following options concerning the regulation of Columbine Cable Vision's ("Columbine") rates for the basic service tier and associated equipment of its cable system: 1. Accept the Cable TV Board's recommendation not to regulate Columbine's rates at this time, but reserve the option to regulate Columbine in the future in the event Columbine exceeds the competitive benchmark rates ' established Option by the FCC. (To choose this I of Resolution 93-140.) option, Council should adopt 267 September 21, 1993 2. Apply for rate regulation authority at this position to regulate Columbine's rates as of time so as to be in the November 15 (when the FCC ' rate freeze expires) and prevent an increase by Columbine in its rates. (To choose this option, Council should adopt Option 2 of Resolution 937 140.) 3. Apply for rate regulation authority after Columbine has first had an opportunity after the rate freeze expires on November 15 to raise its basic service tier rate approximately $2.00 to $2.50, which will bring such rate closer to, but still below, the FCC benchmark rate. (To choose this option, Council should adopt Option 3 of Resolution 93-140.) If the second or third option is chosen, an ordinance setting forth the City's procedures for,rate regulation will be drafted and presented to Council at the October 5, 1993 meeting for the second option or at the December 7, 1993 meeting for the third option. This ordinance is required by FCC rules as a prerequisite to regulating rates. BACKGROUND: The Cable Act of 1992 was enacted primarily in response to a lack of competition for cable tv service in a vast majority of American cities. Congress concluded that in the absence of competition, rates in many of these cities skyrocketed, while customer service declined. It is important to note that recent survey data indicates that Columbine is not , representative of the type of cable operator that the Cable Act of 1992 was intended to address. The data shows that Columbine's rates have historically been substantially lower than comparable cities, and its levels of customer service and customer satisfaction have been high. The Cable Act of 1992 gives cities in which there is no effective competition for cable tv service the option to regulate a cable operator's rates for the basic service tier and associated equipment of its cable system. Fort Collins is among the majority of cities in which there is no effective cable tv competition. The FCC has established benchmark rates for cities not subject to effective competition by considering the rates of cable systems that are subject to effective competition. Under FCC rules, cable operators who are regulated by their local franchising authority cannot exceed their benchmark rates without establishing the right to charge higher rates through an administrative process called a "cost -of -service showing." The FCC has not yet issued its rules for cost -of -service showings, but the process could be as technically complex as the kind of rate regulation that occurs before the Colorado Public Utilities Commission for regulated utilities. The FCC has frozen the rates of all cable operators until November 15, 1993 to give cities that choose to regulate cable rates an opportunity to apply to the FCC for approval to do so. Choosing Certification Now If the City chooses to become certified to regulate Columbine's rates at this I time, then: W September 21, 1993 ' ■ The City can prevent Columbine from raising its basic service tier rate on November 15, which Columbine has said it wishes to do. ■ Absent a successful cost -of -service showing, Columbine will only be able to raise its regulated rates in the future in accordance with annual adjustments of the Consumer Price Index. Choosing Not to Certify for Now If the City chooses not to apply for certification to regulate Columbine's rates at this time, then: ■ The City cannot prevent Columbine from raising its rates on November 15. ■ The City can apply for certification at any time in the future; there is no deadline by which such application must be made. ■ If certification is obtained at a later time, the City can order Columbine to rollback the rate increase to the FCC benchmark and to refund to subscribers that portion of previously paid rates above the FCC benchmark for a period of up to one year, unless Columbine can make a cost -of - service showing justifying the rate increase. Rate Information Columbine's current rate for its basic service tier is $16.50 per month. This rate is approximately $4.00 below the FCC's benchmark rate, according to Columbine's estimates. Data from comparable front range cities confirms that Columbine's basic rate is substantially lower - up to 25Y lower - than this rate in those cities. When the refranchising process began with Columbine approximately two years ago, Columbine said that it would not raise its basic service tier rate until a new franchise agreement was entered into with the City. This may explain, at least in part, why this rate is currently as low as it is. Columbine's Position on Rate Regulation. Columbine's position is that rate regulation unfairly penalizes a minority of operators such as Columbine which have kept their prices relatively low and service levels high. For this reason, Columbine has requested that, if the Council decides to regulate rates now, that Council choose Option 3 which provides that the City will withhold applying for its regulation authority until Columbine has first had the opportunity to raise its basic service tier rate $2- $2.50 per month, which Columbine contends will bring this rate more in accord with the FCC benchmark rate. Further, Columbine has advised the City that if it chooses to regulate rates now, and thereby not allow Columbine the opportunity to raise its basic service tier rate by $2-$2.50 per month without a cost -of - service showing, Columbine will want to reevaluate its financial ability to meet the obligations of the agreement it is now in the process of negotiating with the City for the renewal of its franchise. Columbine's negotiations up to this point have been premised upon being able, in the near term, to raise its basic service tier rate at least $2-$2.50 per month. In addition, Columbine says it will P September 21, 1993 probably ask Council to grant an extension of Columbine's existing franchise that expires this November 6. Columbine says it will need the extension not only to reevaluate its financial ability to meet the obligations of the agreement it is negotiating with the City in the renewal process, but it will also need time to review the cost -of -service showing rules and regulations that the FCC is now drafting so that it can evaluate its chances of making a successful cost -of - service showing. These rules and regulations are not expected to be issued by the FCC until around the end of the year. It should be noted that despite the fact that at rates above competitive benchmarks, the FCC pertaining to rate regulation, has not gig operators such as Columbine whose rates are be rationale is that these lower rates have be4 uncompetitive environments. Therefore, these cable operators have lower costs and so they their rates up to the FCC benchmark without a the Cable Act of 1992 was targeted in its recently promulgated rules en any special consideration to low the FCC benchmarks. The FCC's rn established in unregulated and rates probably reflect that these should not be allowed to increase cost -of -service showing. OPTION #1: DO NOT REGULATE COLUMBINE'S RATES AT THIS TIME, BUT RESERVE THE OPTION TO REGULATE RATES IN THE FUTURE IN THE EVENT COLUMBINE EXCEEDS THE FCC BENCHMARK RATES. Pros: A) Allows the City to avoid regulating a private business. B) Recognizes that Columbine has been responsible in the past with regard to its rates. C) Saves the City the time and expense involved in regulating Columbine's rates, although neither is expected to be significant at this point, except, perhaps, with respect to a cost -of -service showing. D) By reserving the option to regulate rates in the future, the City effectively advises Columbine that the City will only permit a rate increase to the FCC benchmark. E) Will not adversely affect current franchise renewal negotiations. F) This is the option recommended by the Cable TV Advisory Board. Cons: A) Allows Columbine to raise its rates when the FCC rate freeze expires on November 15. (Columbine.has said it will raise the rate for its basic service tier at that time $2-$2.50 per month. Columbine could, however, raise its rate as much as $4.00 per month if that keeps its rate at or below the FCC benchmark rate, and the City could not order a rollback or refund of this rate increase if the City later becomes certified by the FCC to regulate rates.) 270 September 21, 1993 ' OPTION #2: APPLY FOR RATE REGULATION AUTHORITY AT THIS TIME IN ORDER TO REGULATE COLUMBINE'S RATES AS OF NOVEMBER 15 (THE DATE THE FCC RATE FREEZE EXPIRES) AND PREVENT AN INCREASE BY COLUMBINE IN ITS RATES. Pros: A) Prevents Columbine from raising its current rates without a cost -of - service showing. If Columbine chooses to conduct a cost -of -service showing, and does not demonstrate that the Company is entitled to an increase in its basic service tier rate, then the current rate of $16.50 per month cannot be raised except by annual increases in the Consumer Price Index. Cons: A) Assuming that Columbine's current basic service tier rate is lower than industry standards, regulation may not permit Columbine to adjust its rate to what might be considered a more reasonable level. 8) Will involve some City -staff time and expense to the City to regulate Columbine, particularly if Columbine pursues a cost ^of -service showing. C) May adversely affect current franchise renewal negotiations and result in Columbine requesting an extension of its existing franchise. ' OPTION #3: APPLY FOR RATE REGULATION AUTHORITY AT THIS TIME, BUT WITHHOLD APPLYING FOR THAT AUTHORITY UNTIL COLUMBINE HAS FIRST HAD THE OPPORTUNITY, WHEN THE FCC RATE FREEZE EXPIRES ON NOVEMBER 25, TO RAISE ITS BASIC SERVICE TIER RATE APPROXIMATELY $2-$2.50 PER MONTH. Pros: A) Places the City in the position to regulate Columbine's rates after Columbine's basic service tier rate is first brought closer in line with the FCC benchmark. B) Will not adversely affect current franchise renewal negotiations. Cons: A) Gives Columbine tacit approval to raise its basic service tier rate. 8) Will involve some City -staff time and expense to the City to regulate Columbine, particularly if Columbine pursues a cost -of -service showing. C) Although Columbine says it will raise its basic service tier rate by up to only $2.50 per month, it could raise the rate as much as $4.00 per month if the resulting rate is still below the FCC benchmark rate, and the City could not order a rollback or refund of this rate increase if the City ' later becomes certified by the FCC to regulate rates." 271 September 21, 1993 Michael Gitter, Cable Program Director, provided background information on the regulations of Cable T.V. rates. He stated Columbine CableVision's rates have been historically lower than comparable communities and the level of customer service and satisfaction has been consistently high. He stated if the City does not apply for certification to regulate the rates, then the City would not be in a position to prevent Columbine from raising its rate on November 15th. He stated Columbine's position is that rate regulation unfairly penalizes a minority of operators which have kept prices relatively low and service levels relatively high. He briefly stated the three options and the pros and cons that are available to the City. He stated that Columbine would like to raise its rates from $2.00 to $2.50 before the City started regulating its rates. Larry Roland, Chairperson of the Cable T.V. Board, stated the Board voted against the idea of regulation. He stated that Columbine has been responsible in maintaining low rates and providing adequate service. The Board believed the regulation is unnecessary because Columbine is doing a reasonable job. Dan Simons, former general manager for Columbine CableVision, stated the company has not had a rate increase for about 2 1/2 years, but the rising costs have become outstanding. He stated the increase would cover the outstanding costs and allow the company to survive. He stated the FCC attorneys and several accountants have reviewed the plan for the rate increase. Bob Carnahan, General Manager for Columbine CableVision, believed the new rate regulation rules unfairly penalize operators such as Columbine. He stated 84 percent of the citizens in this community subscribe to Columbine and are very satisfied with the service that is provided to them. He stated the basic rate charged to the customer would increase from $16.50 to $18.50. He stated the average increase for all subscribers would be $2.14. He stated there has been good working relationship between Columbine, the City, and the community for 15 years and believed if the City were to become regulators the relationship might suffer. Councilmember Winokur asked if the con listed in Option 3, regarding the basic tier rate, also apply in Option 1. He asked if the City has ever told Columbine how to regulate its rates. He asked if the City does any auditing of Columbine CableVision's records. Gitter stated that it could also apply. He stated the City has never participated in setting or reviewing Columbine's rates. He stated the City does participate in the auditing of Columbine's records. The City just completed an audit as part of the refranchising process and audits them every five years. Councilmember McCluskey asked how the cost of service showing, under the regulation segment, works into increasing rates. Simons replied that Capital Improvements would possibly contribute to the rate increases. Carnahan stated the cost of service regulations and rules have not been released from the FCC until after the first of the year. He stated most of the rates are estimated. 272 September 21, 1993 ' Councilmember Horak asked what impacts would this have on the basic homeowner if the recommended scenario were approved. He asked what changes would take place on November 15th to the homeowner. Gitter responded the basic impact to the homeowner would be an increase in cable rates from $16.50 to $18.50 as of November 15. Simons stated the cable subscription cost would be $2.00 more, but the increase would not include any additional service or equipment. Councilmember Apt asked if the converter boxes are only needed if the homeowner does not have a cable ready television or would like to receive pay -preview channels. He asked if there will be an additional charge for the converter box if the homeowner already has a cable ready television. Simons stated that was correct. He stated converter boxes could cost the consumer up to $2.50; however, Columbine believes there would not be a justifiable cause to charge that much to the customer. He stated the converter cost from Columbine would only be $1.56. Mayor Azari asked what would it take for the City to have the authority to regulate the rates in the future if Columbine were to raise its rates substantially. John Duval, Assistant City Attorney, stated it takes 30 to 45 days to receive the ' FCC certification to regulate rates. He stated the City could prevent the rate increase within 90 days. Councilmember Kneeland asked if Columbine were to raise its rates to some extraordinary amount could the City require Columbine to roll back the rates and distribute a refund to the citizens. Duval stated if Columbine were to go above the FCC benchmark, the City would have the right to roll back the rates and mandate a refund up to one year. He stated if the company could establish the increased rate through a cost of service showing, then the rate could remain at the higher rate. Councilmember Apt asked what the citizens feedback was on rate regulation. Gitter stated that the City heard from 16 citizens in favor of rate regulation and 5 citizens opposed to any rate regulations. Councilmember Kneeland made a motion, seconded by Councilmember McCluskey, to adopt Resolution 93-140 Option 1. Bruce Lockhart, 2500 East Harmony Road, stated he supported Option 1. He believed the beneficiaries of rate regulation are the lawyers. Councilmember Kneeland stated Option 1 covers the quality of service and any ' long-term impact that may occur to the consumer. She stated Option 1 reserves the option to regulate if costs were raised significantly. 273 September 21, 1993 Councilmember Winokur stated technology is changing daily and if there was a change for the worse, Option 1 would provide the City the ability to regulate rates. Councilmember Horak stated he would support the motion. He stated the consumer is paying for various companies to make money and not for the quality of service that is being provided. Councilmember McCluskey stated he would support the motion. He stated the money should be put into the service and the system, rather than administrative proceedings. Councilmember Apt believed Columbine has assured the citizens and the City that the rates will not be increased more than $2.00. He stated Option 1 provides the City a chance to regulate the rates if Columbine was bought out or some unusual circumstance occurred. The vote on Councilmember Kneeland's motion was as follows: Yeas: Councilmembers Apt, Azari, Horak, Kneeland, McCluskey, and Winokur. Nays: None. THE MOTION CARRIED. Resolution 93-141 Adopting a Public Access Policy, Adopted as Amended. The following is staff's memorandum on this item. "FINANCIAL IMPACT The financial impact cannot be quantified at this time. As projects are considered, those with financial needs that can't be met within the operating budget will be included in the annual budget process. EXECUTIVE SUMMARY The Council Public Access Committee requested that this Policy be adopted by the full Council. This Policy directly supports Council's goal to increase public access to information and services. By adopting this Policy, Council formally states its position on public access and provides direction on the further development of electronic information and services. It recognizes the community's desire to share information and information infrastructure more effectively. The Policy is attached as Exhibit "A". It is intended to focus the City's resources on creating, evolving, and maintaining useable and sustainable electronic assets. This Policy formally adopts the operating strategy that the City has been pursuing for several years. The strategy is based on balancing technical innovation and leadership with fiscal responsibility. This balance is maintained by the individual consideration of each proposal, its costs, and its benefits to the City and the community. 274 September 21, 1993 ' BACKGROUND: After the Council goal to improve citizen access to information and services was adopted in 1991, several additional policy decisions and discussions have provided direction on public access: 1991: Council Public Access Committee formed. 1992: $30,000 one-time funding for kiosk project approved. 1993: Resolution regarding joint use of technology with PR-1 adopted. 1993: Cable Franchise renewal negotiations are in progress. Some aspects of the negotiations focus on increasing capabilities for access in the future. 1993: Workplan included direction to implement policy on public information access. The draft of the Council Policy Agenda outline for the workplan follows. Examples of ways the City hasadjusted service provision and collaborated with the community to increase access to City services and information: 1. Channel 27 cablecasts City Council meetings and programs related to City ' services and issues. Additional programming on new topics such as diversity, will begin in 1993. 2. CityLine provides recorded City information to callers 24 hours a day, 7 days a week. 3. The Public Library's computer system supports dial -in access to library catalog and services. Several grants have funded access to library databases throughout Colorado and to the Internet. 4. Staff is beginning a pilot with the PR-1 Barton School to setup the school as a satellite branch library on the Public Library's Dynix computer system. 5. Staff is working with FortNet, a citizens initiative, to develop a community network. 6. The City and Larimer County share a digital land base which is used for mapping operations. This sharing will continue as Community Planning and Environmental Services continues its Geographic Information System pilot project." Marsiea Dahlgren, ICS Director, stated citizen access to electronic information services is a developing area in Fort Collins and the nation. She provided some background information on what is available to the public. She stated that financial funding is limited, but available. She stated the technical aspect helps offset the need for hiring more employees. She stated the City needs to continue to improve its services to meet the citizens' changing needs. She 275 September 21, 1993 stated the policy basically states that the City will seize opportunities to I increase public access to City and community services. Councilmember Kneeland made a motion, seconded by Councilmember Apt, to adopt Resolution 93-141. Bruce Lockhart, 2500 East Harmony Road, stated it would be beneficial to the public if the Agenda Item Summary were placed on an electronic bulletin board. Councilmember Horak asked if the statement "work with stable, proven technology, products, and companies whenever possible," is necessary. He believed there was no relation between that statement and the public access policy. Dahlgren stated the statement deals with the fiscal responsibility and accountability. She stated the emphasis on working with stable products and companies is a necessary factor in the policy. She stated the policy is written so it may address individual projects. The vote on Councilmember Kneeland's motion was as follows: Yeas: Council members Apt, Azari, Horak, Kneeland, McCluskey, and Winokur. Nays: None. Councilmember Horak asked if the policy could be modified to clarify the statement "work with stable, proven technology, products, and companies whenever possible." Dahlgren stated the statement would be modified before the policy is finalized ' and published. THE MOTION CARRIED. Resolution 93-142 Authorizing the Purchase of 63 Acres of Land for Public Natural Areas, Adopted. The following is staff's memorandum on this item. "FINANCIAL IMPACT Acquisition cost would total $533,699: this includes the purchase price of $504,730, plus the payment of a separate obligation of the seller, in the amount of $28,969, to the City's Street Oversizing Fund. Sufficient funds have been appropriated in the Capital Projects Fund from the proceeds of the 114 cent Natural Areas Sales Tax. Future maintenance of the property is estimated at $2,268 annually, based on an estimate of $36 per acre. Ongoing maintenance will be funded from the proceeds of the 114 cent Natural Areas Tax. EXECUTIVE SUMMARY Resolution 93-142 authorizes the purchase of 63 acres of land in southwest Fort Collins for use by the City as a public natural area. The acquisition furthers I the adopted goals and objectives of the Natural Areas Policy Plan and the Parks and Recreation Master Plan. 276 September 21, 1993 BACKGROUND: Location. Staff has negotiated a purchase and sale agreement with Kimbel J. Stuart to purchase 63 acres of undeveloped land in the Foothills of southwest Fort Collins ("Stuart" property on attached map). The land includes a portion of the alignment of the future extension of Overland Trail Road and land to the west on the first "hogback" west of the City. This parcel is one of several that staff is working to acquire to "block up" the eastern face of, the hogback adjacent to the existing Pine Ridge Open Space. The City recently acquired 13 acres of land known as the Quail Hollow 7th filing on the northern end of this hogback. An additional 70 acres of land between these two parcels is under contract and will be brought forward for Council consideration on October 5 ("Whitham" property on attached map). Purchase Agreement. The agreement between Kimbel J. Stuart and the City of Fort Collins is for a cash sale, contingent on City Council approval. If approved by City Council, closing would occur by October 15, 1993. The purchase price for the property is $504,730, or $8,000 per acre. This price is consistent with the appraised value on the Whitham property, which is similar to and located adjacent to this parcel to the north. The parcel is developable within the Foothills Zone and has received preliminary development approval for 63 single-family homes from the Planning and Zoning Board as the Overland Hills West P.U.D. ' In addition to the purchase price noted above, the acquisition of the property involves an additional payment of $28,969 to the City's Street Oversizing Fund. This would satisfy the seller's obligation to pay this amount for certain street oversizing costs which were assessed against an adjacent parcel owned by the seller (the Overland Hills Second Filing). Although these street oversizing costs were assessed against the Second Filing, the improvements to Horsetooth Road which will be partially funded by this payment will also benefit the property being purchased by the City. As part of the consideration for the property that the City is acquiring, the seller is requiring that this street oversizing obligation be satisfied. Policy Basis. One of the five objectives of the Natural Areas Policy Plan is to "establish a system of publicly -owned natural areas to protect the integrity of critical conservation sites, protect corridors between natural areas, preserve outstanding examples of Fort Collins' diverse natural heritage, and provide a broad range of opportunities for educational, interpretive, and recreational programs to meet community needs." In addition, the Parks and Recreation Master Plan anticipates a future trail connection in this general location. Natural Resource Value. The area is one of the most significant natural areas in Fort Collins and provides a high quality example of the foothills grassland ecological community. The steep grassy hillside forms the eastern flank of the first hogback where the foothills begins. The site is part of an important movement corridor and winter concentration area for mule deer and is also used by coyotes, foxes, and other mammals. It provides habitat for a rare plant, the Be11's twinpod, and several rare butterflies and is used by bald eagles and other 277 September 21, 1993 birds of prey. In addition to its habitat value, the site forms part of the I scenic backdrop to the southern portion of the City. Human Value. The area offers potential educational and passive recreational benefits to the community. The Parks and Recreation Master Plan includes a future trail extension through the eastern portion of the site. In addition, the Natural Areas Policy Plan anticipates future nature trails, interpretive signs, and other education opportunities. Resource Management Planning. The area would be managed as an addition to the existing Pine Ridge Open Space. As directed by natural area policies, a Resource Management Plan will be prepared to guide future use and management of the area. The plan will address resource protection needs, habitat improvement needs and opportunities, public access needs and facilities, opportunities for environmental education and interpretation, and other issues. The plan for the Pine Ridge area will be developed by an interdepartmental staff team, in collaboration with the Natural Resources Advisory Board, the Parks and Recreation Board, and the community. Future Extension of Overland Trail. The eastern edge of the site includes a portion of the alignment for the future extension of Overland Trail Road. The proposed alignment is on the flat portion of the site and would minimally impact the significant natural features of the site. Acquisition of the site as natural area, in lieu of development, would negatively impact future funding for construction of Overland Trail because the City would not collect fees that would be assessed with development. ' Environmental Audit. An environmental audit was conducted by Stewart Environmental Consultants. No environmental contamination concerns were identified. Board and Commission Review. The Natural Resources Advisory Board and Parks and Recreation Board endorsed the area as a high priority acquisition site. Both boards recommended acquisition of the property in a joint meeting held on September 15, 1993." Tom Shoemaker, Director of Natural Resources, stated staff negotiated a purchase and sale agreement for 63 acres of land in southwest Fort Collins. He stated the land is located at the base of the foothills where several varieties of wildlife and vegetation exist. He stated the area would be managed as part of the Pine Ridge Open Space. He stated the extension of Overland Trail would proceed through a small portion of the site, but would have no major impact on the natural habitat. Councilmember Horak made a motion, seconded by Councilmember Apt, to adopt Resolution 93-142. Councilmember Horak asked if there were any priorities associated with the Natural Areas Policy Plan. Shoemaker stated the Action Plan, located in the back of the Natural Areas Policy ' Plan, provides a summary of the priority areas. He stated there were a number September 21, 1993 ' of tours conducted of priority sites with members of the public, both boards and commissions, and the Chamber of Commerce. Councilmember McCluskey asked if the City has a policy on how the street oversizing fund would affect those natural areas and what covers the development costs. Shoemaker replied if the areas adjacent to the site do not develop, then the street oversizing fee would not be paid. He stated the previous Council's direction was that the natural areas money is not to be used for street improvements. He stated the street issue needs to be reviewed in the overall context of transportation planning in the City. Jim Davidson, 2278 Clydesdale Drive, supported the City purchasing the open space and believed it adds significantly to the quality of life in the City of fort Collins. He stated open spaces provide a large variety of natural benefits which promote wildlife habitat, vegetative habitat, and much more. Tim Aronson, 3020 Blueleaf Court, stated he supported the Resolution and applauded the City for moving quickly to preserve this site. Ralph Herrera, Chamber of Commerce Environmental Committee, stated the Committee supports this project, but believed there needs to be some sort of resolution made in regard to the Overland Trail Extension. The Committee believed there was no assurance that the Overland Trail Extension will be completed if there is no ' money to support it. Mike Hauser, Chamber of Commerce Executive Director, asked if there would be a numerical priority system developed to decide what the top priorities are. Councilmember Kneeland stated the purchase of this land is great for the City; however, people should not think of the foothills as part of the southwest or the river as part of the northeast, but that all natural areas are a part of the whole City. She stated the history of the natural areas should be researched and connected with each area. Councilmember Apt commended the staff on the work that was put forth in this project. He stated that integrating natural areas around the City provides a high quality of life for the citizens of this community. Councilmember Horak believed that natural areas are an important part of this community; however, the financial impact should be reviewed more closely. He stated the City should not have to pay development costs, but that it should be the person who is going to develop the land who pays. He stated natural areas do not create a lot of impact to the land, but development creates a substantial amount of change. He stated a priority list could be created, but that it should be flexible enough„to meet the needs of the community. Councilmember Winokur stated that natural areas money should not be used for ' street oversizing. He stated natural areas provide several amenities other than recreational use. 279 September 21, 1993 The vote on Councilmember Horak's motion was as follows: Yeas: Councilmembers I Apt, Azari, Horak, Kneeland, McCluskey, and Winokur. Nays: None. THE MOTION CARRIED. Ordinance No. 109, 1993 Appropriating Funds and Authorizing the Purchase of Certain Downtown Properties Owned by Trillium Corporation, Adopted 4-2. The following is staff's memorandum on this item. "FINANCIAL IMPACT This action authorizes the expenditure of $475,000 to acquire two parcels from Trillium Corporation. Parcel I is the parking lot at the corner of Mason and LaPorte Avenue and is commonly referred to as the LaPorte America Lot. Parcel 2 is a strip of land along the alley behind the City's 281 North College Facility. Please see attached map. The purchase of this property will be accomplished through reserves previously appropriated in the Parking portion of the Transportation Fund ($318,000), an appropriation of $71,000 from savings in the Essential Capital Projects Account, and the remaining $86,000 from the General Fund Operating Contingency. The City will seek to offset the cost of acquisition with the future owner of the Opera Galleria Project who has expressed an interest in buying or leasing the parking from the City. ' EXECUTIVE SUMMARY This ordinance authorizes the purchase of the LaPorte America lot and a strip of land along the alley behind 281 North College from Trillium Corporation. The negotiations related to these properties have taken place over the last three years, beginning with Burlington Northern Resources, then Glacier Park and finally with Trillium Corporation. The sources of funding for this project have changed since the negotiations in 1991. The major source of funding remains the Parking Division reserves held in the Transportation Fund. This source will be supplemented with the remaining savings in the Essential Capital Projects account and monies in the 1993 Operating Contingency. BACKGROUND: In 1991, Glacier Park Company, a Denver -based property ownership subsidiary of Burlington Resources Inc. sold some of its properties to Trillium Corporation, a Bellingham, Washington developer of residential, retail, resort and industrial properties. At that time, Glacier Park offered to sell some of the parcels to the City. The City Council authorized the purchase of the Laporte -America lot and the land near Lee Martinez Park for the amount of $499,000 and appropriated the funds needed for this acquisition. Due to difficulties in obtaining clear title to Parcel 8, and concerns about potential hazardous material contamination on Parcel 8, the transaction was not , consummated. The City Council then authorized the acquisition of Parcel 1 and the land along the alley behind 281 North College by eminent domain in Resolution M September 21, 1993 ' 92-150. Taking property by eminent domain power is a means of last resort for the City. Therefore, the City continued to negotiate for the purchase of these parcels. These negotiations were recently successful, with the parties agreeing on a price of $475,000." Alan Krcmarik, Director of Finance, provided some history and background on the project. He stated the property in the downtown area is increasing in value rapidly. He stated that once the purchase is finalized the City will be receiving money back because of a prepaid lease. Councilmember McCluskey stated he supports the Ordinance. He asked if there has been any analysis done on whether a lease versus a purchase is more advantageous. Krcmarik stated the owner of the Opera Galleria would prefer to own the entire lot; however, that conflicts with the City uses. He stated a downtown parking analysis will be completed before the agreement is finalized. He stated the owners of the Opera House insist on a multi -year commitment. Councilmember Apt asked if the site would be run privately as a parking lot if the City did not purchase the site. Krcmarik stated that was a possibility. He stated the Opera House owners asked the City to lease back space from them on a five to seven year basis; however, it would be difficult for the City to lease that space back due to the low parking fund. Councilmember Horak asked if the City purchased the site and leased or sold it back would the City receive equal value or more. Krcmarik replied the City would sell a portion of the lot back to the Opera House at roughly the same cost that the City purchased the lot. Councilmember Horak asked about the urgency on this project versus waiting for a completed agreement on the Opera House project. Krcmarik stated the Opera House project may come before Council on October 19th which may coincide with the purchase of the parking lot. Councilmember Winokur asked what would happen with the parking lot if the City did not purchase it. Krcmarik responded the short-term outcome would be that it would remain a parking lot for the rest of the year. Mayor Azari asked if the City has started condemnation procedures on the lot. Krcmarik stated the eminent domain process has been started and that is the purpose for which the City acquired the appraisal. ' Councilmember McCluskey asked how many tax dollars would be generated if the lot was owned privately. Krcmarik stated it is approximately $1,000 to $1,300 a year. 281 September 21, 1993 Councilmember Apt stated that the Opera House project may not be the best use for this amount of money. ' Councilmember McCluskey made a motion, seconded by Councilmember Horak, to adopt Ordinance No. 109, 1993 on First Reading. Chip Steiner, Downtown Development Authority Director, stated the Laporte Lot constitutes ten percent of the entire offstreet parking inventory in the central business district. He stated if the City lost that property it would have a significant impact on the businesses in the entire downtown area. He encouraged Council to proceed with the acquisition of the lot. Bruce Lockhart, 2500 East Harmony Road, stated he was extremely opposed to the acquisition of the lot. He asked about the benefits to the City if it were purchased. He believed the site would remain a parking lot even if the City did not purchase it. He believed the DDA should partake in the funding of the site. Councilmember Horak asked if the Transportation Board reviewed this project. Krcmarik stated the Transportation Board reviewed this project back in 1991 with all the other affected Boards and Commissions; however, the current version has not been reviewed by any of the Boards and Commissions. Councilmember Horak stated he would support the Ordinance on First Reading; however, by Second Reading the Transportation Board needs to review this project and make a recommendation. He requested more information on the contents of the other agreement. , Councilmember Winokur stated he would not support the Ordinance. He believed there are several other projects that could benefit from this money and that this site is not an efficient use of these funds. Councilmember McCluskey stated he would support the Ordinance because it is a start of reviewing a permanent parking plan for the downtown area. He believed having the City control the parking lot is best for the community. Councilmember Horak stated the diagonal parking on Mountain Avenue would be omitted if the bikelane project were constructed; therefore, the Laporte lot would be an asset to the downtown area. Councilmember Apt stated he supports the downtown businesses and the parking issue, but did not see the parking lot as a pressing priority. Councilmember Kneeland stated she would support the Ordinance because it is a major issue that needs to be resolved for the downtown area. Councilmember Winokur stated he would like the lot to remain in the private sector and have the City purchase the area that is needed for Transfort. Mayor Azari stated her dissatisfaction in the negotiations between the City and the Trillium Corporation. She stated she would support the Ordinance and encouraged the negotiations between the Opera House and the City to do what is ' best for the downtown area and the community. September 21, 1993 The vote on Councilmember McCluskey's motion was as follows: Yeas: Councilmembers Azari, Horak, Kneeland and McCluskey. Nays: Councilmembers Apt and Winokur. THE MOTION CARRIED. Other Business Resolution 93-143 Authorizing the Mayor to Execute Amendment 1 to the Grant Agreement with the United States Federal Aviation Administration for the Construction of the Airport Rescue Fire Fighting Station at the Fort Collins -Loveland Airport, Adopted. The following is staff's memorandum on this item. "FINANCIAL IMPACT The total cost to construct an access road from the Airport Fire Station to the Airport Operations Area Ramp is $27,012. The Federal Aviation Administration will fund 90Y of the project ($24,311) with the Airport funding the remaining IOY, $2,701. These funds were previously appropriated in the 1993 Airport Budget. EXECUTIVE SUMMARY During the Airport Certification Inspection in August of this year, the FAA Airport Inspector recommended that an additional access road for emergency vehicles responding from the airport fire station to the airport operations area be constructed. The proposed road would tie the fire station ramp directly to the airport operations area ramp thus enhancing the airport fire station's response capabilities to airfield emergencies. The FAA, through the Airports District Office, agreed to fund 90Y of the road project by amending the Fire Station Grant (AIP #3-08-0023-08) which was approved in August of 1992 and used to build the Airport Fire Station. This Grant Amendment will provide an additional $24,311 to the original Grant of $353,200 creating a grant total of $377,511." Fred Anderton, Fort Collins -Loveland Airport Manager, provided' some detailed information on the project. He stated that an additional point of access for emergency vehicles was a necessity to the operations of the airport. He stated the fiscal year ends September 30th for the FAA and in order to receive funding support from them this Resolution needs to be approved. Councilmember Winokur made a motion, seconded by Councilmember McCluskey, to adopt Resolution 93-143. Yeas: Councilmembers Apt, Azari, Horak, Kneeland, McCluskey, and Winokur. Nays: None. THE MOTION CARRIED. 283 September 21, 1993 City Attorney Roy read portions of Ordinance No. 109, 1993 because the changes ' to the Ordinance were not on file in the Clerk's office for 48 hours prior to the Council meeting. Councilmember Kneeland acknowledged her involvement with Challenge Fort Collins and recognized the projects that are asking for funding. Councilmember Apt stated his participation in Challenge Fort Collins would not present any bias towards any projects that have been conducted through that organization. Mayor Azari stated she was involved with Challenge Fort Collins but the ideas that stemmed from that group are not being acted upon. She believed the projects need to be evaluated. Councilmember Kneeland stated the City's Boards and Commissions could be used to evaluate and review the projects suggested by Challenge Fort Collins. Councilmember Horak requested more information from the Environmental Clearing House on the funding request presented for the 1994 City Budget. He requested that more factual data regarding the D.A.R.E. program be presented to Council. He believed the City Park Railroad Concession Stand was not a Budget issue but was something Parks and Recreation could review. He requested a memo on the status of the bikepaths. Dallow replied that a memo discussing the bikeway plans and its budget is being I prepared for Council. Councilmember Apt stated the meeting between the County Commissioners and the Council is an informal brainstorming session and everyone in the community is invited. He believed it would restrain the participants if the meeting was televised. The meeting adjourned at 11:25 p.m. Mayor 284