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HomeMy WebLinkAboutMINUTES-08/04/1992-RegularAugust 4, 1992 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council -Manager Form of Government Regular Meeting - 6:30 p.m. A regular meeting of the Council of the City of Fort Collins was held on Tuesday August 4, 1992, 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, Edwards, Fromme, Horak, Maxey and Winokur. Councilmember Absent: Mayor Kirkpatrick. Staff Members Present: Burkett, Krajicek, Roy. Citizen Participation Linda Hopkins, 401 West Mulberry, opposed the school impact fee and spoke to the process. Ralph Waldo, 1406 Twin Oak Court, stated he opposed the school impact fee and questioned the quality of education received at Poudre R-1 schools. Michael Albert, 3118 Sam Houston Circle, expressed concerns regarding traffic, vandalism to both private and park property, and lack of police presence. Donald Allingham, 3124 Sam Houston Circle, concurred with Mr. Albert and expressed his concerns regarding the safety at the park. Charles Albert, 412 Maple, spoke of tenant, property management and trade secret issues. Citizen Participation Follow-up Police Chief Fred Rainguet responded to concerns regarding Rossborough Park stating a neighborhood meeting would be scheduled. Councilmember Fromme spoke of a letter she received regarding concerns at the Park and stated keeping the City's parks safe and clean needs to be a priority. Councilmember Horak stated the agenda item did not set a school impact fee. Agenda Review City Manager Steve Burkett requested that Item #12, Hearing and First Reading of Ordinance No. 86, 1992, Amending Ordinance No. 98, 1986, Relating to 1986 Sewer Revenue Bonds, and Item #21, Resolution 92-125 Authorizing the Mayor to Execute an Intergovernmental Agreement Between the City and Poudre School District R-1 Pertaining to the Planning and Construction of Schools with the City Limits, be ' removed from the agenda. 21 Councilmember Horak requested that Item #11, Second Reading of Ordinance No. 85, 1992, Authorizing the Mayor to Execute a Utility Easement in Favor of Public Service Company of Colorado, be pulled 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 #17, Pulled Consent Items. 7. Consider adoption of the minutes of the regular meeting of July 7 and the adjourned meeting of July 14. 8. Tabling of Items Related to the Prospect Land Company Annexation and Zoning until September 1. A. Second Reading of Ordinance No. 59, 1992, Annexing Approximately 12.6 Acres, Known as the Prospect Land Company Annexation. (Postponed until September 1) B. Second Reading of Ordinance No. 60, 1992, Zoning Approximately 12.6 acres, Known as the Prospect Land Company Annexation, into the R-C, River Corridor Zoning District. (Postponed until September 1) On May 19, 1992, Council unanimously adopted Resolution 92-78 Setting Forth Findings and Determinations Regarding the Prospect Land Company Annexation. a On May 19, Council also unanimously adopted on First Reading Ordinance No. 59, 1992 and Ordinance No. 60, 1992, which annex and zone approximately 12.6 acres located on the north side of East Prospect Road, between the Orthopedic Center and the Cache La Poudre River. The requested zoning is the R-C, River Corridor District. The property is presently undeveloped and is zoned FA, Farming in the County. This is a voluntary annexation. Adoption of the Consent Calendar will postpone consideration of these items until September 1. APPLICANT: Ray Pigg OWNER: Flatiron Companies c/o Neenan Company P. 0. Box 229 2290 E. Prospect Boulder, CO 80306 Fort Collins, CO 80525 As discussed with Council at the Jun power costs will increase approximately for 1992. The April 1, 1992 wholesale 22 e 23, 1992 work session, purchase $450,000 over the budgeted amount rate increase will also impact the 1 ' August 4, 1992 5 year plan by approximately $1,800,000 per year. That is equivalent to a 4.3% retail rate increase. In addition the Light and Power Utility has identified the need to increase rates an additional 3.1% to cover the projected cost of operations through 1997. The Electric Board and Utility Staff are recommending using a portion of the Purchase Power Reserve to delay implementation of the retail rate increase until January 1, 1993. A rate increase of 7.4% will leave the Purchase Power Reserve at $5,100,000 year end 1997. Ordinance No. 77, which was unanimously adopted on First Reading on July 21, appropriates $500,000 from the Purchase Power Reserve to cover the approximate $450,000 deficit in the 1992 appropriation. 10. Second Readina of Ordinanrp Nn_ Rd_ 1QQ9 annrnnrinrinn Drina Vm r Dneorve� 11. The General Employees' Retirement Committee has developed a plan for the additional education for all interested member employees. This Ordinance, which was unanimously adopted on First Reading on July 21, calls for expenditures of approximately $35,000 for the various components of the educational effort. Development to the east of Pineridge Open Space will allow the Public Service Company to adjust its overhead power line across City property. The existing power line which runs west from near the Quail Hollow Subdivision and across the ridge and over Dixon Reservoir will be abandoned and removed by Public Service Company. A new overhead power line will be installed from the existing power line near Hughes Stadium south to the existing overhead line on the Pineridge Open Space property. This new line will allow for about 1/4 mile of line to be removed on the open space property. The existing line is difficult to maintain and a safety hazard since it crosses Dixon Reservoir. The new power line easement totals about 1.3 acres and contains an access road to service the power line on open space property. This Ordinance, which was unanimously adopted on First Reading on July 21, authorizes the Mayor to execute a Utility Easement in favor of the Public Service Company of Colorado. 1 23 August 4, 1992 ' 12. Hearing and First Reading of Ordinance No. 86, 1992, Amending Ordinance No. 98, 1986, Relating to 1986 Sewer Revenue Bonds. 13. 14. Ordinance 86, 1992, amends the City's 1986 Sewer Revenue Bond Ordinance to meet the legal requirements of Financial Guaranty Insurance Corporation to allow the substitution of a debt service insurance policy for monies now held in the 1986 Sewer Bond Debt Service Reserve Fund. By releasing the reserves, the City will be able to meet the cash flow requirements of both the 1986 Sewer Revenue Bonds and the 1992 Loan Agreement without extraordinary rate increases. City Council adopted a similar resolution at its July 7 meeting. However, the legal description of the properties to be condemned was incomplete at that time. This item is being brought back for Council consideration with the corrected legal descriptions. Since the July 7 meeting, no other changes have been made. Included within Senate Bill 92-204 is a prohibition against the use of forfeited property or the expenditure of forfeited proceeds, by the seizing law enforcement agency, unless the use or expenditure has been approved by a committee whose membership is specified in the Bill. By statute, the Committee on disposition of forfeited property is to be comprised of, at a minimum, the District Attorney, or a designee; the head of the seizing agency, or a designee; and a representative of the governmental body having budgetary authority over the seizing agency. This governmental representative is to be appointed by the governmental body. Once the required members of the committee have been identified they may select other members to serve on the committee by unanimous agreement. The established Committee will have authority to approve the use or expenditure of forfeited property which is awarded to Police Services on or after July 1, 1992. 15. Resolution 92-123 Making an Appointment to the Community Development Block Grant Commission. A vacancy currently exists on the Community Development Block Grant Commission due to the resignation of Tina Marie Ribera. 24 1 August 4, 1992 Councilmembers Maxey and Fromme recently conducted interviews for other vacancies on the Commission and are recommending that Daniel Wilson be appointed to complete the term which expires July 1, 1993. 16. Routine Deeds and Easements. a. Powerline Easement from Springfield Subdivision Sixth Filing Joint Venture, a Colorado Joint Venture, Overland Hills 1st Filing, Lots 7, 8, and 9, needed to install underground electric system for Overland Hills 2nd Filing. Monetary consideration: $10 b. Powerline Easement from Rose L. Miller and Monica Douglas, 2001 W. Mulberry, needed to underground existing overhead electric services. Monetary consideration: $200 C. Powerline Easement from Daniel M. McGuire, 1737 Ridgecrest Road, needed for an off -site easement for access to Pheasant Ridge Estates. Monetary consideration: $10 Items on First .Reading were read by title by City Clerk Wanda Krajicek. 12. Hearing and First Reading of Ordinance No 86 1992 Amending Ordinance t No. 98, 1986, Relating to 1986 Sewer Revenue Bonds Items on Second Reading were read by title by City Clerk Wanda Krajicek. 8. Tablinq of Items Related to the Prosnect land r.mmnanv AnnPYatinn and A. B. 9. Se Re 10. Se in 11. Se Councilmember Fromme made a motion, seconded by Councilmember Horak, to adopt and ' approve all items not removed from the Consent Calendar. 25 August 4, 1992 ' The vote on Councilmember Fromme's motion was as follows: Yeas: Councilmembers Azari, Edwards, Fromme, Horak, Maxey and Winokur. Nays: None. THE MOTION CARRIED. Ordinance No. 85, 1992, Authorizing the Mayor to Execute a Utility Easement in Favor of Public Service Company of Colorado. Postponed until Parks and Recreation Board Review. The following is staff's memorandum on this item. 'EXECUTIVE SUMMARY Development to the east of Pineridge Open Space will allow the Public Service Company to adjust its overhead power line across City property. The existing power line which runs west from near the Quail Hollow Subdivision and across the ridge and over Dixon Reservoir will be abandoned and removed by Public Service Company. A new overhead power line will be installed from the existing power line near Hughes Stadium south to the existing overhead line on the Pineridge Open Space property. This new line will allow for about 114 mile of line to be removed on ' the open apace property. The existing line is difficult to maintain and a safety hazard since it crosses Dixon Reservoir. The new power line easement totals about 1.3 acres and contains an access road to service the power line on open space property. This Ordinance, which was unanimously adopted on First Reading on July 21, authorizes the Mayor to execute a Utility Easement in favor of the Public Service Company of Colorado." Councilmember Horak questioned why the Natural Resources and/or Parks and Recreation Board was not consulted regarding this item. Cultural Resources and Library Services Director Mike Powers responded to Council questions noting items perceived as inconsequential are not usually reviewed by the Parks and Recreation Board. Councilmember Fromme made a motion, seconded by Councilmember Maxey, to adopt Ordinance No. 85, 1992 on Second Reading. Jim Slagle, Project Engineer for Public Service Company, clarified that undergrounding would double the cost of the project and adversely affect the terrain. He spoke of the difficulty in installing underground utilities in rocky territories. Councilmember Horak stated the item should be reviewed by the Parks and Recreation Board and opposed exposed lines running across open space areas. ' 26 I August 4, 1992 Councilmember Winokur made a motion, seconded by Councilmember Horak, to postpone consideration of this item until after it is reviewed by the Parks and Recreation Board. The vote on Councilmember Winokur's motion to postpone consideration of Ordinance No. 85, 1992, was as follows: Yeas: Councilmembers Azari, Edwards, Fromme, Horak, Maxey and Winokur. Nays: None. THE MOTION CARRIED. Ordinance No. 86, 1992, Amending Ordinance No. 98, 1986, Relating to 1986 Sewer Revenue Bonds Adopted as Amended The following is staff's memorandum on this item. "FINANCIAL IMPACT The City maintains the Sewer Revenue Bond Debt Service Reserve Fund at a level equal to the average annual debt service for the bonds, approximately $2.9 million. Through the amendments proposed in this Ordinance, the monies held in the Debt Service Reserve Fund will be released and placed in the 1986 Bond ' Principal and Interest Account, thereby fulfilling the City's obligations under the loan agreement with the Colorado Water Resources and Power Development Authority. In place of the Reserve Fund, the City will acquire a Debt Service Reserve Fund insurance policy from the Financial Guaranty Insurance Corporation. EXECUTIVE SUMMARY Ordinance 86, 1992, amends the City's 1986 Sewer Revenue Bond Ordinance to meet the legal requirements of Financial Guaranty Insurance Corporation to allow the substitution of a debt service insurance policy for monies now held in the 1986 Sewer Bond Debt Service Reserve Fund. By releasing the reserves, the City will be able to meet the cash flow requirements of both the 1986 Sewer Revenue Bonds and the 1992 Loan Agreement without extraordinary rate increases. On July 21, 1992, the City authorized the loan agreement with the Colorado Water Resources and Power Development Authority in the amount of $24,580,540 for the purpose of financing improvements to the Wastewater treatment facilities. The loan agreement with the Authority is secondary in lien priority to the City's 1986 Sewer Revenue Bonds. The 1986 Bond covenants require that, before monies can be accumulated for liens of lower priority, the following year's 1986 Bond debt service must be provided for. Annual debt service for the 1986 Sewer Revenue Bonds is approximately $3 million. In order to meet the accumulation requirement, City staff recommends that the Debt Service Reserve Fund be released to meet the accumulation requirements and replaced with an insurance policy (which is allowed by the 1986 Sewer Bond Ordinance). The cost for the policy is ' $50,000 and will be paid from monies in the Wastewater Enterprise Fund." 27 August 4, 1992 ' Councilmember Fromme made a motion, seconded by Councilmember Maxey, to adopt Ordinance No. 86, 1992. Finance Director Alan Krcmarik read the changes into the record. The vote on Councilmember Fromme's motion was as follows: Yeas: Councilmembers Azari, Edwards, Fromme, Horak, Maxey and Winokur. Nays: None. THE MOTION CARRIED. COUNCILMEMBER REPORTS Councilmember Maxey urged Councilmembers to participate in the Larimer County Fair Parade. Councilmember Azari reported the Cultural Diversity Task Force would reconvene on August 5. Resolution 92-124 Authorizing the Mayor to Execute a Grant Amendment Agreement With the United States Federal Aviation Administration, Adopted. The following is staff's memorandum on this item. I 'FINANCIAL IMPACT The Federal Aviation Administration ("FAA") will provide $65,000 to reimburse funds already spent on this project. EXECUTIVE SUMMARY The cities of Fort Collins and Loveland accepted a grant from the FAA, in 1990, to lengthen the runway and acquire land in the runway clear zone area. Due to a lengthy condemnation process the monies necessary to complete the project exceeded the original grant amount. The Airport requested and has received a grant amendment from the FAA which would reimburse the Airport for 90Y of the funds spent above the original grant amount. The grant that has been amended by the FAA is one that was accepted by the Cities in 1990. The total grant, a combination of two, was offered to lengthen the primary runway, 33-15, and purchase property that fe11 within the extended clear zone created by the longer runway. 28 1 August 4, 1992 Following the dissolution of the Airport Authority it was discovered that this project had overspent the original budget and the Muniz property still needed to be acquired, and most likely at a higher price than was originally budgeted. The FAA was contacted and advised the Airport that is was possible to amend the grant as long as the additional funds did not amount to more that 15% of the original grant. The FAA tentatively agreed to provide the additional money but could not, due to regulations, offer the amendment until the project was closed. Airport funds and some bond proceeds monies were used to cover the additional costs which were incurred. The project, with the exception of this amendment, has been closed for several months. The additional monies, above original project allocations, necessary to complete the project amounted to $72,000. These funds have already been spent by the Airport. This grant amendment will recover 90Y of these funds." Councilmember Maxey withdrew from discussion on this item due to a perceived conflict of interest. Councilmember Fromme made a motion, seconded by Councilmember Winokur, to adopt Resolution 92-124. ' Airport Manager Fred Anderton briefly described this item and responded to Council questions. Assistant to the City Manager Julia Novak clarified the problem was discovered after the dissolution of the Airport Authority. Councilmember Horak suggested Council receive assessments keeping them informed of the Airport's development. The vote on Councilmember Fromne's motion was as follows: Yeas: Councilmembers Azari, Edwards, Fromme, Horak and Winokur. Nays: None. (Councilmember Maxey withdrawn) THE MOTION CARRIED. Items Pertaining to the Purchase and Financing of the Streets Facility, Adopted. The following is staff's memorandum on this item. "FINANCIAL IMPACT The cost of Phase I of the project is $5.6 million, of which $3.6 million will be debt financed. The total amount of debt to be issued should not exceed $4.0 million of which approximately $400,000 is for the debt service reserve fund. ' The remaining $2.0 million has been appropriated into a capital projects fund as 29 August 4, 1992 1 part of the regular budget process. The purchase price for the property is $947,000. Adoption of Resolution 92-128 provides authority for the City to reimburse itself From the bond proceeds for any costs incurred prior to the issuance of the bonds. EXECUTIVE SUMMARY A. Resolution 92-126 Authorizing the Purchase of Land Located at 725 East Vine Drive for a Streets Department Facility. B. Resolution 92-127 Authorizing City Staff to Proceed with Debt Financing for the Development of the 725 East Vine Drive Streets Department Facility. C. Resolution 92-128 Declaring the Official Intent of the City of Fort Collins, Colorado, to Reimburse Itself for Certain Capital Expenditures from the Proceeds of Bonds Hereafter to be Issued; Specifying the Maximum Principal Amount of such Capital Expenditures; Identifying the Source of Funds for the Payment of said Capital Expenditures; Specifying the Nature of said Capital Expenditures; Authorizing the Public Availability of this Resolution; Authorizing Incidental Action; and Repealing Prior Inconsistent Resolutions. Resolution 92-126 authorizes the City Manager to purchase the land at 725 East ' Vine Drive consisting of approximately 32 acres, for $947,000 for a Streets Department facility. The facility is needed to protect the City's capital equipment, ensure full -cost accounting for Streets Department operations, and provide better customer service. The Planning and Zoning Board approved the preliminary P.U.D in July, 1991. An environmental audit of the site was completed by Weyerhaeuser with an additional assessment performed by Stewart Environmental Consultants, Inc., under contract with the City of Fort Collins. The environmental concerns identified by the audits regarding this property are the subject of continuing negotiations between the parties. Resolution 92-127 authorizes staff to proceed with debt financing of the proposed Streets Department facility project to be located on the 725 East Vine Drive property. The City expects to issue $3.6 million of tax-exempt revenue bonds to provide monies for the acquisition, construction, installation, and equipping of Phase I of the facility and $400,000 for the debt service reserve fund. Phase 1 includes the renovation and necessary construction of facilities for equipment and material storage, shop space, and crew and administration area, as well as other site improvements. Conservative revenue and expenditure projections indicate that the project can be financed by the Streets Department without impacting the General Fund. The ' 30 August 4, 1992 percentage of Department direct debt service �) operating expenditures will be less than the City target of 10-12% throughout the payment period. Future developments costing approximately $2.4 million will be on a pay-as-you-go basis as needed to meet changing levels of service. Beginning in 1993, a portion of Streets Department reserves wi 11 be earmarked to pay the $3.6 mi 11 ion debt early, or the Phase II pay-as-you-go improvements will be initiated. The $400,000 debt service reserve fund portion will be self-supporting through investment earnings. The purpose of Resolution 92-128 is to comply with federal regulations regarding recovery of costs to issue the bonds and for the ensuing capital project costs that have been incurred before the issuance of the bonds. The federal regulations were issued in late 1991, and the Council approved a similar resolution for costs incurred for Wastewater Utility Improvements. By adopting this Resolution, the City will be able to recover some of the costs that will be incurred prior to the issuance of the bonds." City Manager Steve Burkett gave a brief overview of the item. Utilities Director Rich Shannon gave an explanation of the project scope and spoke to the history of the project. He urged Council to approve the purchase of the property. ' Councilmember Maxey made a motion, seconded by Councilmember Horak, to adopt Resolution 92-126. Shannon clarified. the item was submitted as a generic proposal during the original Choices 95 package. Councilmember Winokur stated leaks in underground storage tanks discovered on or after December 22, 1988, may be eligible for reimbursement costs by the State Underground Storage Tank fund. He suggested the information be conveyed to the owner. Shannon stated the snow removal equipment and the sand for the streets would be stored at the same facility. The vote on Councilmember Maxey's motion was as follows: Yeas: Councilmembers Azari, Edwards, Fromme, Horak, Maxey and Winokur. Nays: None. THE MOTION CARRIED. Councilmember Maxey made a motion, seconded by Councilmember Fromme, to adopt Resolution 92-127. Shannon clarified funding sources were all external. Finance Director Alan Krcmarik responded to Council questions regarding interest rates and funding sources. 31 August 4, 1992 ' Councilmember Winokur asked why funds were being borrowed to pay for the land when there are funds available to pay for it. Shannon stated using the "pay as you go" method of financing could potentially postpone site improvements. Councilmember Winokur suggested the City reimburse itself from Highway User Tax Revenues as these funds come in. Shannon spoke of both funding options and clarified the project would be operational 18 to 20 months after the closing. Councilmember Winokur expressed concerns regarding debt financing and stated he did not support the current language in the Resolution. Councilmember Horak spoke in support of the Resolution and commended staff for its work. Councilmember Edwards supported debt financing and recognized staff for its efforts. The vote on Councilmember Maxey's motion was as follows: Yeas: Councilmembers Azari, Edwards, Fromme, Horak and Maxey. Nays: Councilmember Winokur. I THE MOTION CARRIED. Councilmember Edwards made a motion, seconded by Councilmember Horak, to adopt Resolution 92-128. The vote on Councilmember Edwards' motion was as follows: Yeas: Councilmembers Azari, Edwards, Fromme, Horak, Maxey and Winokur. Nays: None. THE MOTION CARRIED. Other Business Resolution 92-125 Authorizing the Mayor to Execute an Intergovernmental Agreement Between the City and Poudre School District R-1 Pertaining to the Planning and Construction of Schools with the City Limits. Withdrawn. The following is staff's memorandum on this item. "EXECUTIVE SUMMARY This Resolution authorizes the Mayor to enter into an Intergovernmental Agreement (IGA) with Poudre R-1 that addresses the following issues: annexation, street 32 August 4, 1992 improvements, construction inspection and review, payment of City established fees and joint efforts for land acquisition. BACKGROUND: In October of 1990 the City Council and the Poudre R-I School Board passed a joint resolution (attached) concerning issues related to the planning, construction and financing of the new schools within the Fort Collins Urban Growth Area. The resolution directed a liaison committee of City and School District staff, City Councilmembers and School Board members to present the following items for approval: A School Site Master Plan 2. A proposed IGA between the City and District which would provide implementation mechanisms for the Master Plan. 3. A City financing mechanism that will support the acquisition and development of new school sites in a manner consistent with the City's philosophy of growth management; and 4. A District plan that will provide for the financing of off -site street and sidewalk needs to serve new school sites. The School Site Master Plan is complete and the City's Planning and Zoning Board will act on it formally in September. Council will take the final action on the School Site Master Plan in October. The remaining three items are all satisfied by the proposed IGA. In November of 1991, the School Board and the City Council met in a joint session and reviewed the key elements of the IGA. Following that discussion, Poudre R-1 and City legal counsel worked jointly to develop the IGA. After extensive review by the liaison committee, the item is ready for Council and Board action. On July 27 the Board adopted the IGA on first reading. They will hold a final reading on August 10. The IGA provides a framework for how the City and Poudre R-1 will do business together to serve the Fort Collins community. This is an exciting step for our community. Much of the credit for success goes to Mayor Pro Tem Azari, Councilmember Edwards, Board President Sally Weisser and Boardmember Daryl Knoblock for their commitment to;process and' product. in the development of the Agreement." City Manager Steve Burkett spoke of a recent conversation with David Hendrix regarding Boardmember concerns. He stated that any issues or concerns would be discussed at the upcoming liaison meeting as well as a discussion regarding impact fees. 33 August 4, 1992 ' Councilmember Edwards urged Councilmembers to voice their concerns so that they may be addressed at the upcoming liaison meeting. Councilmember Fromme supported the Agreement and expressed concerns regarding a impact fee. Councilmember Maxey expressed his concerns regarding the language in the Resolution. Councilmember Winokur commented on the abundance of existing schools and properties stating the school district and the City should work together in a joint effort to utilize existing facilities. Councilmember Horak supported putting the agreement in place, stating it would take a long time to finalize the implementation of an impact fee. Councilmember Maxey noted the City Managers Walk/Run Challenge was being held August 13 and asked if Councilmembers were interested in participating. Councilmember Azari urged Council to challenge the Air Quality Task Force in the No Drive Challenge. Councilmember Horak questioned the Urban Growth Area residency status requirements for City Service Area Directors. He suggested written information be provided for citizens interested in circulating initiative petitions and referring ordinances. Ad.iournment The meeting adjourned at 8:45 p.m. ATTEST: L W"L- ZME" 61k MMMIXIM, � w - m 34