HomeMy WebLinkAboutMINUTES-05/03/1994-Regular1
May 3, 1994
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
May 3, 1994, 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: Azari,
Janett, Kneeland, McCluskey and Smith.
Staff Members Present
Councilmembers Absent:
Burkett, Krajicek, Roy.
Apt and Horak.
Citizen Participation
Deb Ham, representing Recreation Possibilities for Disabled Individuals, spoke
of information that was sent to Council outlining the function of the. Recreation
Possibilities for Disabled Individuals committee and stated they would be
requesting Council funding for the program. She invited Council to attend an
upcoming meeting.
David Roy, 1039 West Mountain, acknowledged and welcomed Russian guests visiting
Fort Collins and spoke in support of Council's decision regarding Shields Street.
Lucia Liley, attorney representing citizens in the Shields Street neighborhood,
stated Council's decision was in violation of the Charter, and on behalf of the
citizens she represented, she requested Council seriously consider issues and
concerns raised and asked that the item be reconsidered at the adjourned meeting
scheduled for May 10. She questioned Council's decision to modify the project
and raised arguments concerning the original design. She stated if a preapproved
project has been proven to be undesirable or unnecessary, under Colorado law, the
City should abandon the entire project. She stated funds that would have been
spent for the abandoned project can not be spent for another project that has
been deemed worthy by Council. She stated Council's decision to eliminate the
turn lanes from the project is an amendment that is not permitted by the Charter,
Code or Colorado Case Law, and urged Council to reconsider the issue.
Ken Bonetti, a Fort Collins resident, stated the project should be referred back
to the voters, and commented he believed the majority of the population would
oppose the project if it were voted on again.
Julia Senesac, 1913 Crestmore Place, sympathized with Council's position and
stated the current traffic situation on Shield Street is unbearable.
Ed Robert, 1923 Lindenridge Drive, spoke of changes in the process and stated
Council should consider the needs of the entire City.
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May 3, 1994
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Betty Maloney, 1309 City Park Avenue, spoke of the dangers in crossing
intersections with right turn lanes and stated she supported Council's decision
eliminating the turn lanes.
Dr. Bill Jones, office located at 1302 South Shields, thanked Council for
allowing the public to participate in the discussion, but opposed reviewing the
entire issue again.
Anita Cooley, resident in the Propect and Shields Street neighborhood, stated the
City as a whole needs to exercise more patience especially at intersections. She
stated widening streets and adding turn lanes would not solve the traffic flow
problems and spoke of the need for alternative modes of transportation.
Vance Martin, President of the International Wilderness Leadership Foundation,
congratulated Council for taking a firm stand on the issue.
Jim Wilging, a previous member of the Choices 95 Traffic Committee, spoke of the
original philosophy of the project, and stated turn lanes would reduce accident
rates as well as pollution.
Marge Yoder, representing the Local Legislative Affairs Committee for the Fort
Collins Chamber of Commerce, stated the Committee opposed Council's decision and
urged reconsideration of its decision.
Quinell Gutwein, 223 Scott Avenue, supported Council's decision to remove the I
right turn lanes.
Dale DeFrance, a Fort Collins resident, stated the solution to the project is not
to cut down trees and add additional traffic lanes. He.spoke in support of
alternative modes of transportation.
Linda Hopkins, 1809 Rangeview Drive, stated the Choices 95 ballot language was
very clear and contended it was Council's mandate to uphold the public process.
Scott Allen, 625 Mathews, commended Council's courage to take risks and spoke of
the need to make changes. He stated he conducted a private traffic count and
based on his observations, believed turn lanes would improve the traffic flow.
Maya Dario, a Fort Collins resident, commended Council on its decision to
eliminate right turn lanes and supported alternative modes of transportation.
Ed Stoner, 2236 Apache Court, clarified 77%.of the voters voted in favor of the
Shields Street project and spoke of the cost involved in reengineering the
project. He stated the vote of the people should be valued and the original
mission should be upheld.
Mike Byrne, 1505 South Shields Street, spoke of safety concerns and stated making
an intersection bigger would not make it safer. '
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May 3, 1994
Citizen Participation Follow-up
Councilmember Smith spoke of the difficulties in dealing with the issues of
traffic management. He spoke of complications with acquiring rights -of -way and
of the need to achieve alternative modes of transportation. He addressed
maintenance issues and the need to address maintenance concerns.
Councilmember Janett thanked citizens for their participation in the process.
She emphasized the importance of safety and air quality issues and the need for
safe alternatives. She spoke of the increase in pedestrian, bicycle and bussing
modes of transportation.
Councilmember McCluskey stated he did not feel it was up to Council to change the
direction of the project since the project was voted on during a prior election.
He stated it was important to uphold the decision of the voters no matter how
dated the issue may be.
Councilmember Kneeland thanked the citizens for speaking and stated it was
important to continue with the project for reasons of safety, air quality and
Choices 95 ballot issues.
Mayor Azari assured participants that Council would be considering new
information. She asked that due to the absence of Councilmembers Apt and Horak
that no motions be made under the Other Business portion of the meeting, and
clarified there would be a motion at the end of the meeting to continue the
meeting to May 10.
Agenda Review
City Manager Steve Burkett stated it was requested by the applicant that Item
#14, Items Relating to Overland Trail Annexation and Zoning, be postponed to June
7.
Tom Higley, a Fort Collins resident, requested that Item #18, Resolution 94-73
Authorizing the City Manager to Apply for the Department of Commerce
Telecommunications and Information Infrastructure Assistance Program Grant, be
withdrawn from the Consent Calendar.
Consent Calendar
This Calendar is intended to allow the City Council to spend its time and energy
on the important items on a lengthy agenda. Staff recommends approval of the
Consent Calendar. Anyone may request an item on this calendar to be "pulled" off
the Consent Calendar and considered separately. Agenda items pulled from the
Consent Calendar will be considered separately under Agenda, Item #20, Pulled
Consent Items.
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May 3, 1994 '
Consideration of the minutes of the regular meetings of February 15, March
1, March 15 and the adjourned meeting of February 17.
Items Relating to the City of Fort Collins Program for Tax and Utility
Rebates.
A. Second Reading of Ordinance No. 60, 1994, Amending Chapter 25 and 26
of the Code Regarding Tax and Utility Rebates.
Second Reading of Ordinance No. 61, 1994, Appropriating Fund Prior
Year Reserves in the General Fund for Expenditure in the General
Fund Refund Program Account.
Last year the number of rebates awarded exceeded the appropriation by
$12,000. Staff expects that about the same volume of rebates will be
processed in 1994. An additional appropriation is needed to maintain
current rebate levels. Ordinance No. 60, 1994, which was unanimously
adopted on April 19 provides the opportunity to make some housekeeping
changes to the Code that will provide consistency in definitions and
eliminate obsolete language. Staff asks that Council revise the Code to
add stormwater to the utility rebate program, that funds be appropriated
to maintain the current program, and that housekeeping changes be made .to
the Code to provide consistency among the rebate programs. Ordinance No.
61, 1994 was unanimously adopted on First Reading on April 19.
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9. Second Reading of Ordinance No. 62. 1994 Accepting a Donation and
Ordinance No. 62, 1994 which was unanimously adopted on April 19,
appropriates $195,000 of unanticipated revenue in the General Fund to be
spent on electronic technology (connecting and offering a online magazine
index; adding childrens graphic computers, equipment and software needed
to increase access) youth books and materials at the Mini Library, five
(5) dropboxes and courier service to support the added dropboxes.
10. Second Reading of Ordinance No. 63, 1994 Appropriating Unanticipated
Revenue in the General Fund.
Resolution 92-93 reinstated the requirement of the Authority to make
annual PILOTS to the City. The purpose of the resolution was to clarify
that these funds are the property of the City and not excess HUD funds.
The City may dispose of them as it deems appropriate in accordance with
law, including remitting the funds to the Authority if the Council
determines that such remittal serves a valid public purpose. The Council
remitted the PILOT to the Authority last year.
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Last year the City remitted the 1992 payment to the Housing Authority.
Ordinance No. 63, 1994, which was unanimously adopted on April 19,
appropriates unanticipated revenue to the Housing Authority in the amount
of $18,633.85, with the recommendation that the Authority use the funds in
the manner consistent with HUD guidelines. The intended use for the funds
is affordable housing and related activities.
11. Second Readino of Ordinance No. 64. 1994 Authorizina the Inno-
The Airport Manager has negotiated a lease of property to Dwight L. Hayden
for the construction of an aircraft hangar. Dwight L. Hayden will build
a hangar, for personal use, on the lot. The hangar will provide at least
1,764 square feet of aircraft storage space. At the expiration of the
lease, the improvements revert to the ownership of the Cities.
The construction of the hangar will generate new revenue for the Airport
and help meet the aircraft storage needs of local aircraft owners.
Ordinance No. 64, 1994 was unanimously adopted on First Reading on April
19.
12. Second Readinq of Ordinance No. 65, 1994 Amending Section 29-657(f)
' Regarding Minimum Right -of -Way Widths for Local Streets.
On July 20, 1993, the City Council adopted Resolution 93-111, identifying
affordable housing policy implementation strategies. City staff was
directed to develop, for City Council consideration, potential affordable
housing policy implementation mechanisms. One such mechanism, Section 13
of Resolution 93-111, was the reduction of right-of-way width standards
for local streets. Ordinance No. 65, 1994, which was unanimously adopted
on First Reading on April 19, reduces the right-of-way width standards for
local streets from 54 feet to 48 feet.
13.
the Golf Fund.
On November 16, 1993, Council unanimously approved Resolution 93-177,
establishing and revising fees to be charged at City Park Nine,
Collindale, and South Ridge Golf Courses for 1994. Councilmembers noted
that the golf fees provide for specific reductions from the basic or
regular fee rates for special users/circumstances, and amended the
Resolution to add Section 2 stating "... Council may, in its discretion,
appropriate General Fund revenue for capital improvements or equipment at
the golf courses, to the extent that the Golf Fund revenues have been
reduced by the availability of special rates for juniors, senior citizens,
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May 3, 1994 '
and others...". In 1993, the Golf Fund absorbed $69,533.50 in various fee
reductions for special users/circumstances. Therefore, it is now
requested that up to $69,533 be appropriated from General Fund Prior Year
Reserves and transferred to the Golf Fund to be used in 1994 for capital
improvements or equipment at the City's golf courses (per Section 2,
Resolution 93-177). Ordinance No. 67, 1994 was unanimously adopted as
amended on First Reading on April 19.
14. Items Relating to Overland Trail Annexation and Zoning.
Resolution 94-61 Setting Forth Findings of Fact and Determinations
Regarding the Overland Trail Annexation.
Hearing and First Reading of Ordinance No. 54, 1994 Annexing
Approximately 282 Acres, Known as the Overland Trail Annexation.
Hearing and First Reading of Ordinance No. 55, 1994 Zoning
Approximately 212 Acres of the Overland Trail Annexation Into the
R-F, Foothills Residential, District and Placing the Remaining 70
Acres Into the R-L-P, Low Density Planned Residential, District.
This is a request to annex and zone approximately 282.33 acres located
west of Overland Trail and north of Prospect Road (extended). The ,
requested zoning is for 212 acres of the R-F, Foothills Residential
District, and 70 acres of the R-L-P, Low Density Planned Residential
District. The property is presently undeveloped. The property is
currently zoned E-1, Estate, and FA-1, Farming, in the County. This is a
voluntary annexation of property located within the Fort Collins Urban
Growth Area.
APPLICANT: John M. Spillane, Esq.
Deutsch, Spillane & Reutzel, P.C.
7730 East Belleview Avenue
Suite 206
Englewood, CO 80111
OWNERS: Wallace R. Noel
900 Breakwater Drive
Ft. Collins, CO 80525
Ft. Collins -Loveland Water District
4700 S. College Ave.
Ft. Collins, CO 80525
PWI
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15.
May 3, 1994
Project.
Last summer the City undertook the widening of Prospect Road between
Shields Street and Taft Hill Road. The work involved three Choices 95
projects: Prospect/Taft Hill Intersection, Prospect from Shields to Taft
Hill, and Prospect/Shields Intersection. In conjunction with the City's
roadway improvements, utility companies including US West installed
utility system improvements at the same time.
During the City's widening project, the City incurred certain costs
associated with US West's utility work. These costs included work done by
the City's contractor at US West's request when the US West contractor was
unable to meet certain deadlines. The City initially paid its contractor
for the work, with the agreement that US West would reimburse the City at
the end of the project. A portion of the costs also included work by the
City because of delays in the progress of the US West utility work.
The total amount of the reimbursement from US West
is $29,000. Because
these costs
were originally paid out from project
funds, the ordinance
appropriates
the money back into the Prospect/Shields
Intersection project
to make the
project budget "whole" again.
'
16. First Reading
of Ordinance No. 69, 1994, Authorizing
the Sale and Exchange
of Real Property
at Case Park.
17.
In this exchange and sale, the City would deed to Timberline Partners,
Ltd., 1.10 acres of Case Park in exchange for .64 acres of undeveloped
land in Pinecone PUD and $10,000. The .64 acres would then become part of
Case Park. This land exchange and sale will benefit the City by creating
a park property line that is more linear, easier to develop and maintain
and more useable. Timberline Partners, Ltd. will benefit by being able to
develop more lots meeting the City's solar orientation ordinance, and
increase density with the addition of four lots. The additional four lots
will pay Parkland Fees toward the development of Case Park.
In 1993, City staff began negotiations with Poudre School District R-I for
the purchase of a park site adjacent to the Preston Junior High site. It
was agreed to allow the City a budget cycle to put funds into the Parkland
budget to purchase 10 acres for a park in 1994. The School District took
an option on this acquisition. Funds are now in place to accommodate the
purchase. $376,000 is budgeted for park acquisition to cover this cost
and to build an account for other neighborhood park purchases in the
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May 3, 1994 '
future. Amounts in the Parkland Fund carry over from year to year to
enable staff to make park acquisitions as developments occur.
This ground has been farm land for many years. As such, there is a farm
lane on the south edge and partly on the west edge of the proposed park
that has a prescriptive right of use by the adjacent property owner for
agricultural purposes. The City would acquire the property subject to
this prescriptive right. There is interest in purchasing this adjacent
land for residential development. If this occurs, the prescriptive right
on the farm land may be vacated to the City.
Public access easements to the park site will have to be obtained from the
School District. The adjacent land is not developed and access now is
from the District's driveway and from local street frontage on school
property to the east. Access easements will be part of the purchase
agreement. The District agrees to provide the easements at no additional
cost to the City.
This grant would provide partial financing for a public access network and '
is an example of the type of opportunity that the City's public access
policy directs staff to pursue.
If Council adopts this resolution, then staff would pursue:
Further analysis and prioritization of this proposal's benefits as
compared to other Council policy and organizational needs for new
funding.
A grant application with Poudre R-1 School District, Columbine
CableVision, LINC and FortNet.
If the grant application is successful and the City commits additional
funding, then:
The community would receive $2.2M in federal funds.
The City will be awarded $620,000 in federal funds to develop its
network infrastructure. Details are under the financial picture
section. The public access policy supports improving the computer
network in order to have a means by which to better communicate with
internal and external customers.
U�p The City will pursue a contract for public access services.
May 3, 1994
19. Routine Deeds and Easements.
A. Powerline Easement from Lawrence E. and Ann Lynn Schwarz and John W.
and Ita Leitner, 1110-1112 Baker Street, needed to install new
underground streetlight service. Monetary consideration: $10.
B. Powerline Easement from Maryland L. Hersch, 1401 Ash, needed to
install new streetlight service. Monetary consideration: $10.
C. Powerline Easement from Michael A. and Penelope L. Bezener, 108
Yale, needed to install new streetlight electronic service.
Monetary consideration: $10.
Items on Second Reading were read by title by City Clerk Wanda Krajicek.
8. Items Relating to the City of Fort Collins Program for Tax and Utility
Rebates.
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13.
A. Second Reading of Ordinance No. 60, 1994, Amending Chapter 25 and 26
of the Code Regarding Tax and Utility Rebates.
B. Second Reading of Ordinance No. 61, 1994, Appropriating Fund Prior
Year Reserves in the General Fund for Expenditure in the General
Fund Refund Program Account.
Second Reading of Ordinance No. 63, 1994 Appropriating Unanticipated
Revenue in the General Fund.
Second Reading of Ordinance No. 65, 1994 Amending Section 29-657(f)
Regarding Minimum Right -of -Way Widths for Local Streets.
the Golf Fund.
Items on First Reading were read by title by City Clerk Wanda Krajicek.
14. Items Relating to Overland Trail Annexation and Zoning.
A. Hearing and First Reading of Ordinance No. 54, 1994 Annexing
Approximately 282 Acres, Known as the Overland Trail Annexation.
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15.
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23.
24.
May 3, 1994 '
Hearing and First Reading of Ordinance No. 55, 1994 Zoning
Approximately 212 Acres of the Overland Trail Annexation Into the
R-F, Foothills Residential, District and Placing the Remaining 70
Acres Into the R-L-P, Low Density Planned Residential, District.
First Reading of Ordinance No. 69, 1994, Authorizing the Sale and Exchange
of Real Property at Case Park.
Councilmember Smith made a motion, seconded by Councilmember Kneeland, to adopt
and approve all items not removed from the Consent Calendar. Yeas: ,
Councilmembers Azari, Janett, Kneeland, McCluskey and Smith. Nays: None.
Motion Carried.
Resolution 94-73
Authorizing the City Manager
to Apply for the Department of
Commerce Telecommunications and Information
Infrastructure Assistance Program Grant, Adopted as Amended.
The following is staff's memorandum on this item.
"FINANCIAL IMPACT
Adoption of this Resolution would initiate the application for a $2.2 Million
federal grant for a community wide public access network infrastructure project.
If the grant is awarded the City would receive $620,000 of the $2.2 Million. The
City would be required to provide a fifty percent match ($620,000). A portion
of this match would come from already appropriated funds. The source of the
remaining portion, $268,000, is preliminarily identified as the City's cable
franchise fee. This funding would be subject to Council approval upon award and
appropriation of the grant. Beginning in 1996, the City would have to provide
$201,000 each year for two full-time employees and equipment maintenance and
replacement. The source of this ongoing funding has not been identified.
EXECUTIVE SUMMARY
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May 3, 1994
This grant would provide partial financing for a public access network and is an
example of the type of opportunity that the City's public access policy directs
staff to pursue.
Table 1. under "The Grant Project" is a grid of estimated contributions and
benefits for all grant partners. This proposal would offer a range of new or
improved services to the Fort Collins community including access to electronic
information such as board and commission meeting minutes, discussion forums on
topical areas such as youth issues and gateways to LINC ($400,000 Library Grant)
and the library's on-line catalog. A listing of proposed services is in Exhibit
C. Equally significant, this grant would fund almost half of the one-time costs
for building the City's internal computer network backbone. This backbone is
critical to sharing information among staff, Council and the community.
If Council adopts this resolution, then staff would pursue:
wr Further analysis and prioritization of this proposal's benefits as
compared to other Council policy and organizational needs for new
funding.
A grant application with Poudre R-1 School District, Columbine
CableVision, LINC and FortNet.
If the grant application is successful and the City commits additional funding,
then:
ZGP The community would receive $2.2N in federal funds.
L�p The City will be awarded $620,000 in federal funds to develop its
network infrastructure. Details are under the financial picture
section. The public access policy (Exhibit A) supports improving
the computer network in order to have a means by which to better
communicate with internal and external customers.
Eal The City will pursue a contract for public access services.
Policy Background
The public access policy (see Exhibit A) adopted in 1993 supports Council's goal
to increase public access to community and City information and services. This
policy provides direction on the development of community and City electronic
information and services. The public access policy directs staff to "seize
opportunities to use technology to increase public access to City and community
services and information..." The policy further directs staff to collaborate
with other local entities seeking to provide electronic resources and services
through partnerships and facilitative leadership and to encourage infrastructure
investments in Fort Collins.
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May 3, 1994 ,
Public Access Framework
This is a picture of the proposed community infrastructure for public access.
The picture shows the flow of communications among City staff, Council members
and the community. Although only the City is shown in this picture, PR-1, CSU,
the Chamber of Commerce and others also intend to communicate with the community
and each other via a public access service provider. As the central access
point, FortNet (or another public access provider) will be accessible from work,
home, public kiosks, LINC library or school sites -- or anyplace there is a
computer with a modem.
The total estimated costs to construct the remaining portions of the internal
network are $788,000 with an associated on -going cost of $388,000. This grant
proposal would provide partial funding. The on -going funds necessary to contract
with a public access information provider such as FortNet is approximately
$100,000.
The Grant Project
The grant is to develop the community's public access infrastructure. The City
will need to ensure ongoing management and maintenance. There is a dual focus
on developing the external community computer network and on the internal
infrastructure improvements needed by the information providers, including the I
City, to communicate with the community via a public access service provider such
as FortNet.
The City contracted with FortNet for $35,000 to develop a pilot project for
public access. The pilot is expected to be complete in late summer. In order
to launch the full fledged FortNet project, both the City and FortNet need to
improve their network management and infrastructure. This grant will help with
this improvement.
The City's requirement is to extend a computer network to more City employees
with PCs. Most staff do not have access to local area networks. This means that
they cannot easily share digital information or services with other staff,
customers, or the community. With Ioca1 area networks, information could be
transferred electronically to FortNet (and others) for re -distribution, for
comment, and for manipulation by the recipients. The City's backbone also needs
improvement to handle higher speed connections to other entities such as Larimer
County, Internet, and Poudre R-1.
FortNet's need is to expand access, expand the information available on the
system, and to develop gateways to other systems. Exhibit 8 contains general
Fortnet information. Exhibit C contains a list of services FortNet would provide
if this grant is successful and the City contracts with FortNet for services.
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Other Partners
Columbine Cable Vision proposes to test the capability for two way cable
communications at selected sites (City Hall West and PR-1 High Schools are
possibilities) using grant funding. If the test succeeds, then this cable (tv)
network could be used in addition to the telephone line based system for public
access.
PR-1 proposes to use the grant funds in a manner similar to the City. PR-1 plans
to add more schools to its (internal) computer backbone and to share information
via FortNet.
LINC proposes to extend access to the new library and information services to a
wider audience by building a gateway from FortNet to LINC.
This partnership approach is a grant criteria and is in the best interests of the
community. If PR -I and the City use the same public access service provider,
then the overall costs of providing this service decrease, making project costs
lower for each partner. Improving the cost/benefit of providing services as well
as improving the accessibility and availability of government are criteria in the
public access policy for new endeavors.
Process
' If Council adopts the resolution authorizing this application, then the following
will occur:
May 12, 1994 - Grant Application Due
August, 1994 - Successful grant applicants notified if successful,
- Council consideration of an ordinance to approve new
funding for public access
- Contract for public access services; Council
consideraton of contract approval
September, 1994 - Begin grant project; the grant period is 18 months
March, 1995 - Include public access services into '96 budget, if
appropriate
18 months - Evaluation of project
from grant
Risks
1. For the internal computer network, the grant award will build only a
portion of the total network infrastructure. The entire one-time cost
estimate is $785,000. The entire on -going costs are $388,000. Staff
intends to bring the one-time and on -going network infrastructure project
costs forward as a budget issue. It is possible to fund and build the
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May 3, 1994 ,
network in pieces. This grant does not commit the City to the entire
project.
2. The following pertain to the external network and the public access
service contractor:
a. There is a high likelihood that FortNet will be selected to provide
these services. At present, staff is not aware of any competition
to FortNet in this arena. FortNet is still in the pilot stage.
Although staff believes that the organization is viable, it is
unproven in the marketplace.
b. There is demand for improved public access to information and
services from the Fort Collins community. However, no market
research has been done to quantify this demand or the pace at which
it will develop.
3. The application for the grant will be withdrawn if the additional local
matching funding for the grant is not approved. This will disappoint the
City's partners."
Director of Administrative Services Pete Dallow gave a brief introduction
regarding this item. He stated representatives from Poudre R-1, the Library, and
FortNet were available to respond to Council questions. '
Tom Higley, President of FortNet, spoke of the purpose and goals of the grant
stating it was an effort to link the community using telecommunications
technology and provide information access to residents. He stated if the
Resolution were adopted it would demonstrate a stronger commitment to the
federal government when seeking federal grant funds.
Councilmember Kneeland clarified Council did not believe she had a conflict of
interest regarding this item.
Councilmember Smith asked if the City needs to increase matching funding in an
attempt to secure the grant. He asked if the funds were set aside, would the use
of the funds be contingent upon receiving the grant and if the grant is not
received would the money go back to the general fund.
City Manager Steve Burkett clarified Council could show that intent by a motion.
Tom Higley, outlined the schedule of the pilot project, stating an early
evaluation would end in late September or early October. He stated it was
important to make funding contigent upon the success of the pilot project.
Greg Redder, Director of Operations for FortNet, stated the pilot project was
well underway and believed the project would be greatly successful.
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May 3, 1994
Scott Harder, Treasurer of FortNet, spoke of the City's contribution to FortNet.
Becky Jensen, representing Poudre R-1, stated using federal funds allowed for
networking the remaining school sites and the four link library sites. She
commented on the benefits of the project and spoke of matching and in -kind
matching funds.
Dallow clarified this was a one time grant process from the federal government
and stated grant proposals are due May 12.
City Manager Steve Burkett stated staff is not recommending appropriating funds
until it is determined where the operating funds would come from and what the
costs and benefits would be.
Councilmember Kneeland made a motion, to adopt Resolution 94-73 with an amendment
in the NOW THEREFORE paragraph to read as follows: "to show the intent of the
City by an appropriation of $134,000 which would be spent only if the grant was
awarded."
City Attorney Steve Roy stated it was difficult to express appropriation of funds
without actually appropriating the funds. He stated the only way to set aside
money is to appropriate it and for that Council would need to adopt .an
appropriation ordinance.
' Councilmember Smith questioned the ramifications of adopting the motion on the
floor.
City Manager Steve Burkett stated Council could insert language in the resolution
specifying its intent, however, it may not be strong enough language to secure
federal funds.
City Attorney Steve Roy requested time to discuss the item with staff to draft
different language expressing Council's intent.
Mayor Azari allowed time for public input on the item while the City Attorney and
staff discussed the language in the Resolution.
Tom Higby, President of FortNet, stated his ultimate desire was that the City
demonstrate a commitment to public access through FortNet.
Lee Castillion, 220 Peterson, spoke in support of a network to access information
about the City, but expressed concerns about providing a service through FortNet
that commercial providers currently furnish.
Scott Harder, Treasurer of FortNet, spoke of revenue sources and expenditure of
funds.
' Mayor Azari stated the item would be suspended to hear Council reports.
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Councilmember Reports
Councilmember Kneeland stated she recently attended the Diversity Summit and
spoke of the reports from Poudre R-1, the City, CSU and the Chamber of Commerce.
Councilmember Janett spoke a Corridor Committee meeting she and Councilmember
Kneeland attended and stated land -use issues were discussed. She stated the
citizens task force is at an impasse on issues regarding zoning and rezoning.
She stated Larimer County is suggesting a consultant be hired to facilitate the
completion of the citizens work. She encouraged everyone to attend the upcoming
Cinco de Mayo celebration.
Discussion on Item n18 resumed.
City Attorney Steve Roy proposed an amendment to Councilmember Kneeland's motion
and read the proposed language into the record: "WHEREAS, in the event that such
Federal funding assistance is approved, matching City funds in the approximate
amount of $134,000 will be required for fiscal year 1994; and WHEREAS, an amount
has previously been appropriated in the 1994 budget and is available for such
purpose." In the NOW THEREFORE provisions he proposed adding the following
sections: "NOW THEREFORE, be resolved by the Council of the City of Fort Collins
as follows: Section 1. would remain and Section 2 would read: "In the event
that the foregoing Grant is approved, the City Manager is hereby directed to '
present for Council's consideration an appropriation ordinance specifically
appropriating $134,000 of General Fund monies to be used for local funding
support for the above -mentioned community -wide communications network".
Councilmember Janett spoke of her experience in working with grants and stated
a strong commitment needs to be shown on behalf of the City.
Councilmembers Kneeland and Smith accepted the amendment as a friendly amendment
to their previous motion.
Councilmember Smith spoke of the need to establish a timeline detailing hardware
and software aspects and stated additional time is needed to discuss the future
commitment.
Councilmember McCluskey opposed the motion and spoke of the on -going costs of the
project. He believed the project should be included in the budget process,
competing with other needs of the City.
Mayor Azari expressed concerns regarding the resolution and stated she wanted to
see an ordinance summarizing the City's intent.
The vote on Councilmember Kneeland's motion as amended was as follows: Yeas:
Councilmembers Azari, Janett, Kneeland, and Smith. Nays: Councilmember
McCluskey.
THE MOTION CARRIED.
r•.
May 3, 1994
Ordinance No. 57, 1994,
Amending Article VII of Chapter 5
of the Code of the City of Fort Collins
so as to Permit the Rebate of Fees for
the Purpose of Economic Development, Adopted.
The following is staff's memorandum on this item.
"EXECUTIVE SUMMARY
The Ordinance changes the operation of the program from a fee waiver to a rebate
of use tax. The City currently has a financial incentive program for basic
industrial firms which is a minor element of the City's overall economic
development policy (attached). The incentive program currently involves a waiver
of development fees associated with the construction or expansion of a facility.
Although the word "waiver" is used, the various fees are paid through the use of
General Fund Undesignated Reserves following Council's authorization. Over a
period of time, use taxes paid by the firm receiving the fee waiver are applied
to offset the waiver.
Research on the effectiveness of financial incentives is inconclusive, however
there is data to suggest that incentives are not the primary interest of
' businesses considering locational choices. More focus is placed on the quality
of the community's roads, environment and schools. It therefore makes sense for
the City to utilize financial incentives sparingly to encourage local primary
business investment.
The limitations of Article X, Section 20, of the State Constitution (Amendment
1) have resulted in the City no longer having significant undesignated reserves
which may be used to conduct an incentive program. If Council chooses to
continue offering financial incentives on a limited, case -by -case basis, staff
is recommending that the program be shifted to consideration of use tax rebates
for firms meeting the criteria of the existing incentive program. This would
replace the up -front, fee waiver program which has been used to this point.
The advantage to the rebate approach is that the incentive can be tied to the
performance of the firm. For example: if the firm claims it will hire a certain
number of employees locally at a self-sufficient wage, and then fails to follow
through, the incentive may either be reduced or rescinded. This is an attractive
alternative to the fee waiver in that it occurs only following the firm's
investment in the community. The City's ability to offer the rebate incentive
is therefore more directly linked to the firm's performance over time, using the
revenue generated by the firm.
One disadvantage to offering this, or any incentive program may be a question of
equity. The City's ability to consider an incentive for a firm is not only based
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on an analysis of the firm's contribution to the community, but also the City's
financial condition at any point in time.
Conceivably, one firm might receive an incentive, and another be denied if the
City's financial situation changes. Although this potential exists, this has not
been an issue to date since consideration is case -by -case, and is never
represented as a guarantee to businesses that they will receive an incentive.
Additional background information on the current program and options for
consideration are discussed in the attached memorandum."
Director of Economic Affairs Frank Bruno briefly outlined the item and spoke of
the rebate program. He clarified taxes would not be included in the rebate
amount.
City Manager Steve Burkett spoke of development fees for larger companies who
locate to Fort Collins.
Councilmember McCluskey made a motion, seconded by Councilmember Kneeland, to
adopt Ordinance 57, 1994 on First Reading.
Councilmember Smith asked if additional information was available regarding price
breaks from developers and financial institutions for companies interested in
locating in Fort Collins. '
Roland Mawer, President of Fort Collins Inc., responded to Council questions
regarding incentives offered to businesses interested in locating in Fort
Collins.
Betty Maloney, 1309 City Park Avenue, asked if consideration regarding wages paid
by potential companies had been addressed.
Tom Higley, representing the Local Legislative Affairs Committee of the Chamber
of Commerce, urged Council to adopt the ordinance, stating it provides an
opportunity to attract new businesses to the community.
Roland Mawer, President of Fort Collins Inc., urged Council to support the
motion, stating it represents a good public policy and encourages base industries
to invest capital in the area. He clarified Fort Collins Inc., supported base
industry jobs, not retail development and spoke of the benefits of attracting new
industry to Fort Collins.
Kelly Ohlson, 2040 Bennington Circle, opposed the motion and spoke of growth
concerns and subsidies for private businesses. He urged Council to consider the
ramifications of the ordinance.
On-
May 3, 1994
Councilmember Smith supported the rebate aspect of the ordinance but could not
support the motion. He spoke of increased traffic concerns and stated it
appeared that if the ordinance were passed, existing policies would be revoked.
Councilmember Kneeland spoke in support of the ordinance and stated it was
important for the City to diversify and provide jobs for the citizens of Fort
Collins. She stated the proposal was a timed payback, not a large subsidy.
Councilmember Janett opposed the ordinance stating she believed the issue
supported offering incentives to business and recruitment efforts, and stated
Fort Collins has many desirable characteristics already. She stated additional
industry brings additional costs to the citizens already residing in the City.
Councilmember McCluskey stated if the ordinance were adopted, the City would have
an opportunity to monitor the performance of new companies before the money is
rebated. He commented this was an improvement over what has been done in the
past.
Mayor Azari supported the ordinance stating she felt it was a "jobs" issue. She
emphasized the need for a diversified job base and spoke of the importance of
providing a living wage.
' The vote on Councilmember McCluskey's motion was as follows: Yeas:
Councilmembers Azari, Kneeland and McCluskey. Nays: Councilmembers Janett and
Smith.
MOTION CARRIED.
Ordinance No. 66, 1994
Amending Sections 23-227 and 24-114
and Chapter 26, Article IX of the Code
for the Purpose of Authorizing a Delay
in the Collection of Certain City Development
Impact Fees for Affordable Housing, Adopted.
The following is staff's memorandum on this item.
"Financial Impact
Financial impacts from a one-year deferral of certain impact fees fall into three
categories: 1) permanent reduction in the fiscal year spending base, 2) lost
interest income for all funds, and 3) reduced debt service coverage for the
utility bonds. A one-year deferral on a 100 unit affordable housing project
would permanently reduce the City's spending base by $140,000. According to
Article X, Section 20, of the state constitution, anticipated increases in
revenue in a subsequent year do not add to the current year's spending base.
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May 3, 1994
Interest earnings would decrease by $25,200 for all affected funds. Debt service
coverage in the water, sewer and stormwater funds would be reduced by $280,000.
To maintain the appropriate level of coverage, rates may have to be raised to
compensate for the lost revenue. Limiting the deferral to the same fiscal year
in which the building permit is issued as proposed in the ordinance would reduce
the impacts to lost interest earnings.
Executive Summar
On July 20, 1993, the City Council adopted Resolution 93-111, identifying
affordable housing policy implementation strategies. City staff was directed to
develop, for Council consideration, potential affordable housing policy
implementation mechanisms. One such mechanism, Section 4 of Resolution 93-111
states, "establishment of procedures for affordable housing projects which would
delay the collection of fees from the time of issuance of building permits to the
time of issuance of certificate of occupancy." The Affordable Housing Board
recommended an Ordinance that would defer the fees for up to one year. The
Finance Department has reviewed the one-year deferral proposal and found several
financial impacts that would weaken the City's financial condition. The proposed
Ordinance limits deferral to the year of the building permit.
The proposed Ordinance will allow for the deferral of the impact fees from the
time of the issuance of a building permit to the issuance of a certificate of ,
occupancy (whether temporary or permanent) or December 1st of the year the permit
is issued. This modification of the Affordable Housing Board recommendation
protects the City from the more significant negative financial impacts of the
one-year deferral."
City Planner Mike Ludwig gave a brief background summary on this item. He stated
the ordinance was for affordable housing projects only and spoke of the
definition of affordable housing.
Finance Director Alan Krcmarik spoke of financial impacts and spoke of Amendment
1 and debt service issues.
City Manager Steve Burkett did not believe adoption of the ordinance would result
in an increased number of applications.
Councilmember Smith made a motion, seconded by Councilmember Janett, to adopt
Ordinance No. 66, 1994.
Lou Stitzel, 521 E. Laurel, spoke on behalf of a non-profit perspective.
Betty Maloney, 1309 City Park Avenue, asked why the fee would apply to all
projects and stated if the ordinance applied to all housing it would reduce
financial impact on the City.
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May 3, 1994
Tom Sibbald, member of the Affordable Housing Board, stated the Affordable
Housing Board has not seen the ordinance before Council and stated impact fees
are a logical way of lowering the costs of all housing.
Ludwig stated a rough draft of the ordinance was presented to the Affordable
Housing Board but at the time it was presented it did not contain financial
impacts.
Councilmember Smith stated although the item necessitated additional discussion
with the Affordable Housing Board, he would be supporting the motion, commenting
that it could be modified later, if needed.
Councilmember Kneeland supported the motion and expressed concerns regarding the
cost of housing.
Councilmember McCluskey spoke in support of the motion.
Councilmember Janett spoke of the need to clarify how and when the City will be
paid.
Mayor Azari supported the motion and spoke of the need for affordable housing.
The vote on Councilmember Smith's motion was as follows: Yeas: Councilmembers
Azari, Janett, Kneeland, McCluskey and Smith.
MOTION CARRIED.
Other Business
Councilmember Smith requested an ordinance creating a permanent Air Quality Board
be put on the May 17 agenda.
Councilmember Janett requested a 2 page memo regarding delaying footer and frame
permits for multi -family housing. She also requested a 2 page memo on whether
the community decision making process could be pursued. She questioned the
effect it might have on the existing Council agenda and staffing for the effort.
Mayor Azari spoke of traffic issues relating to pedestrian safety. She
emphasized the need to look at the Code to determine if a better provision for
pedestrian safety should be included.
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May 3, 1994 °
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Adjournment
Councilmember McCluskey made a motion, seconded by Councilmember Smith, to
adjourn the meeting to 6:30 p.m. on May 10.
The meeting adjourned at 11:05 p.m.
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