Loading...
HomeMy WebLinkAboutMINUTES-07/17/1990-RegularJuly 17, 1990 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council -Manager Form of Government Proclamations and Presentations 6:15 p.m. A. Proclamation Naming August 1-7 as National Clown Week was presented to Virginia Febinger. b. Proclamation Naming August 17, 18 and 19 as New West Fest was presented to Jan Carroll. c. Proclamation Recognizing Jeremy Brown for his Selection as a Presidential Scholar was presented to Jeremy Brown. Regular Meeting - 6:30 p.m. A regular meeting of the Council of the City of Fort Collins was held on Tuesday, July 17, 1990, at 6:30 p.m. in the Council Chambers in the City of Fort Collins City Hall. Roll call was answered by the following Councilmembers: Azari, Edwards, Kirkpatrick, Mabry, Maxey, and Winokur. Councilmembers Absent: Horak Staff Members Present: Burkett, Krajicek, Roy 3. Presentation of Plaques to Boards and Commissions Members who have served eight years was made to the following: Robert Aukerman, Parks and Recreation Board John Strachan, Storm Drainage Board Bobbie Guye, Commission on Disability The following members will receive their plaques at a later time: Ron Baker, Building Review Board Yetta Rollin, Senior Advisory Board Cathy Mulcahy, Parks and Recreation Board Citizen ParticiDation Bruce Lockhart, 2500 East Harmony Road, spoke about the ordinance banning CFC's (chlorofluorocarbons) and ozone depletion, noting that research shows that nitrous oxide, not CFC's, is the major destroyer of ozone in the stratosphere. He asked that Council obtain accurate information before I making a decision on an ordinance. -154- July 17, 1990 Agenda Review: City Manager 1 City Manager Burkett requested that Item #32, Hearing and First Reading of Ordinance No. 83, 1990, Amending Section 2-656 of the Code relating to open meetings for City boards and commissions be withdrawn from the agenda. Councilmember Maxey requested that Item #11, Hearing and First Reading of Ordinance No. 84, 1990 Amending Chapter 8, Article IV of the Code Relating to Purchasing Procedures, be withdrawn from the Consent Agenda. CONSENT CALENDAR 1) Ordinances on First Reading that are routine; 2) Ordinances on Second Reading that are routine; 3) Those of no perceived controversy; 4) Routine administrative actions. 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 #25, Pulled Consent Items. 6. Consider approval of the minutes of the regular meeting of June 5 and the adjourned meeting of June 12. 7. Second Reading of Ordinance No. 70, 1990, Transferring $113,000 from the Mason -Howes Phase II Project to the Street Overlay & Sealcoat Project. The section of Lemay Avenue from Lincoln north to the Greenbriar development just north of Willox is scheduled for repair this summer as part of the annual Street Overlay & Sealcoat project. The project will widen the two lane road slightly to provide shoulders to slow deterioration of the roadway edges and overlay the road. The Street Overlay & Sealcoat project did not propose to construct bikeways or sidewalks as a part of the pavement maintenance efforts. This section of Lemay currently lacks adequate bicycle/pedestrian facilities. It is one of four or five streets in the City which receive the most complaints about the lack of bicycle/pedestrian improvements. This Ordinance, which was unanimously adopted on First Reading on July 3, transfers $113,000 from the Mason -Howes Phase II project to the annual Street Overlay & Sealcoat project to fund the construction of bicycle/pedestrian improvements on North Lemay. F -155- July 17, 1990 a a 10. This ordinance, which was unanimously adopted on First Reading on July 3, appropriates prior year reserves in the General Fund for Cultural Development & Programming activities totalling $19,873. The Cultural Development and Programming account is funded by lodging tax receipts that are dedicated in accordance with Ordinance No. 27, 1989. Cultural Develooment and Proarammina Account Balance 12/31/88 $ 69,176 1989 Revenues - Lodging Tax 54,190 1989 Revenues - Other 3,385 1989 Expenditures (51,709) Balance 12/31/89 75,042 1990 Appropriations (55,169) Reserves available for appropriation $ 19,873 This appropriation reduces General Fund Reserves restricted for other purposes by $19,873. In 1989, $500,000 was appropriated for development of Rogers Park. Final design cost estimates have increased to $600,000. The increase is due to unanticipated costs for extension of utilities and higher than anticipated costs for street improvements. This ordinance, which was unanimously adopted on First Reading on July 3, would appropriate the rental income and project savings from the Troutman Park project for construction of Rogers Park. Section 4-117 of the City Code currently prohibits the sale of chickens and ducklings under eight (8) weeks of age in quantities of less than twenty-five (25) to a single purchaser. The apparent purpose of this provision is to discourage the purchase of chicks and ducklings as pets. The provision, however, also discourages many purchases that are for a bona fide agricultural purpose. This Ordinance, which was unanimously adopted on First Reading on July 3, amends the Code to reduce the minimum purchase amount from twenty-five (25) chicks or ducklings per single purchaser to six (6) per single purchaser. The Ordinance should still discourage the purchase of -156- July 17, 1990 12. chicks and ducklings as pets, but at the same time permit most purchases which are for a bona fide agricultural purpose. The City recently purchased a lot in the Foothills Park Resubdivision in order to obtain a twenty foot sewerline easement along the north lot boundary. The entire lot was purchased at a cost of $10,000, since the lot remainder would be difficult to develop with a house that is compatible to the neighborhood. The remaining lot size is 4,119 square feet, with a lot width of 43.5 feet. The City has entered into an agreement to sell the property for $6,000 to a neighboring property owner, contingent on Council approval. The $6,000 sales price adjusts for the twenty foot sewerline easement as well as the development considerations mentioned above. This Ordinance, which was unanimously adopted on First Reading on July 3, authorizes the Mayor to executea Deed of Conveyance for sale of the property. This Ordinance appropriates $35,000 of prior year reserves in the General Employees Retirement Plan Fund for the retirement of four additional employees under the General Employees Retirement Plan and to implement the cost -of -living increases approved by Resolution 90-80 on June 5. When the 1990 Budget was prepared, a projection was made as to the number of retirees and the amount of appropriations needed for retirement payments. During 1990, the projection was revised to include four additional employees. Retirement options have been developed for three of the employees and the options are soon expected to be developed for a fourth employee. Approximately $15,000 of appropriations are needed to provide retirement benefits to the employees in 1990. Approximately $16,000 of appropriations are needed to increase benefits to retired employees as provided in Resolution 90-80. An additional $4,000 is being requested to cover unforeseen contingencies as a result of the change in benefits. -157- July 17, 1990 13. Board. This Ordinance was amended on First Reading to delete Section 1 which revised Section 2-46 of the Code to eliminate recommendations from the definition of "final decisions." This Ordinance, which was unanimously adopted as amended on First Reading on July 3, changes the Code to (1) vest final authority in the Planning and Zoning Board to decide, upon referral by the Director of Planning, when minor changes to master and final plans should be permitted, and (2) vest final authority in the Planning and Zoning Board to decide, upon referral by the Director of Planning, to approve site plans in the RC and IL zones. 14. Hearing and First Reading of Ordinance No. 79, 1990, Appropriating Unanticipated Revenue in the General Fund for the Fort Collins Public Library Adult Literacy Program. This Ordinance appropriates $85,725 in unanticipated revenue in the General Fund for the continuation of the Library Adult Literacy Program. 15. Items Pertaining to the Burns Annexation and Zoning_ Resolution 90-105 Setting Forth Findings of Fact and Determinations Regarding the Burns Annexation and Zoning. Hearing and First Reading of Ordinance No. 80, 1990, Annexing Approximately 46 Acres. Known as the Burns Annexation. C. Hearing and First Reading of Ordinance No. 81, 1990, Zoning Approximately 46 Acres, Known as the Burns Annexation, into the R-F, Foothills Residential, Zoning District. This is a request to annex and zone approximately 45.65 acres located west of Overland Trail and south of Drake Road (extended). The requested zoning is the R-F, Foothills Residential District. The property is largely undeveloped, two single-family residences are located on the property. The property is currently zoned FA-1, Farming in the County. This -is a voluntary annexation. APPLICANT: Rex Burns c/o Cityscape Urban Design' 3030 S. College Avenue #200 Fort Collins, CO 80525 -158- July 17, 1990 16. Hearing and First Reading of Ordinance No. 82, 1990, Amending Chapter 2 of the Code Relating to the Golf Board and the Planning and Zoning Board. At its May 29, 1990 worksession, Council discussed the advisability of retaining alternate positions on boards and commissions. Based upon the discussion at that worksession, many of the alternate positions on the boards and commissions were not filled during the annual appointment process. On July 3, 1990, Council adopted Resolution 90-100, which established a policy for the elimination of alternate positions on boards and commissions. That Resolution provides for the Council liaison assigned to each board or commission which currently has alternate positions to make a recommendation of changes in the composition of the board or commission to which he or she is assigned, in order to achieve the elimination of alternate positions. 17. Hearing and First Reading of Ordinance No. 84, 1990 Amending Chapter 8, Article IV of the Code Relating to Purchasing Procedures. The recommended changes to the Code are as follows: 1. Increasing the dollar limits: From $500 to $1,000 before Purchasing Division involvement. From $5,000 to $15,000 before formal bidding would be required. From $20,000 to $50,000 before Council action would be required for exceptions to the bid process. 2. Authorizing development of a prequalification process for a vendor to be placed on the bid list. 3. Clarifying and adding exceptions to the bidding process. 4. Permitting the use of a Request for Proposal (RFP) for goods and services and treating contracts awarded under the RFP process in the same manner as those awarded under the bid process. Council would not have to approve each RFP. Bringing the Code into compliance with acceptable purchasing policies and procedures by minor housekeeping changes. 6. Adding a definition of change order so the Code reflects Charter requirements for bidding construction of improvements. IMS Infrastructure Management Systems was retained by the City in 1987 to develop and implement a comprehensive, computerized Pavement Management System (PMP). The PMP is based on an inventory of the -159- July 17, 1990 ' street system which incorporates the results of a laser road surface survey and Dynaflect testing. It was anticipated that each year approximately one-third of the City's streets would be reinspected and retested to update the inventory and check the accuracy of the PMP's pavement performance model. This resolution authorizes the Purchasing Agent to enter into a professional services agreement with IMS to provide the necessary reinspection and retesting and update the inventory. 19. Greenhorne & O'Mara has been selected through the City's formal selection process to provide Professional Engineering services for the Stuart/Stover Channelization Project; a project targeted for improvements in the Spring Creek Basin Master Drainageway Plan. Services required in this contract will include preliminary and final engineering design with optional engineering services during construction. 20. Resolution 90-108 Approving the Request of the Boxelder Sanitation District Board of Directors for the City and District to Work Toward Consolidation. The Boxelder Sanitation District is currently managed and operated under contract with the East Larimer County Water District. Over the last year, the Boxelder Board of Directors has explored various options for future management of the District. At its June 12 meeting, the Board voted to request that the City and the District begin working on an agreement for the City to take over the District. The District provides sanitary sewer service to an area along the north and east of the City service area and operates a 1.5 million gallon aerated lagoon treatment system located at the confluence of Boxelder Creek with the Poudre River. The District serves about 900 customers. The Wastewater Treatment Master Plan that is nearly completed assumed that the City would begin providing service to District customers sometime in the near future, so projections of future treatment capacity will not be affected. 21. Capability. At the recent Colorado Municipal League conference, Mayor Kirkpatrick was invited to participate in a coordinated effort to encourage the State of Colorado and the Department of Energy to provide funding to enhance and provide training and equipment needed for hazardous ' material response. The group is made up of policy makers from other Colorado municipalities and other public safety leaders along the I-25 -160- July 17, 1990 corridor which is the state -approved route for the transportation of hazardous materials in Larimer County. Since new OSHA/EPA regulations require that all hazardous materials respondents be trained to specific levels, it will be desirable to promote coordination and discussion among front -range communities to support the various local agencies in this training effort. It is important that Fort Collins be involved in these discussions; therefore, Mayor Kirkpatrick is asking that Council support her participation by adoption of this Resolution. 22. Resolution 90-110 Adopting the 1990-91 Boards and Commissions Manual. This Resolution formally adopts the 1990-91 Boards and Commissions Manual and sets out guidelines for revisions to the Manual. 23. Resolution 90-111 Making Appointments to the Liquor/Massage Licensing Authority and the Senior Advisory Board. During the 1990 annual appointment process, a vacancy on the Liquor/Massage Licensing Authority was not filled due to an insufficient number of applicants. Additional applications were solicited and Councilmembers Winokur and Azari conducted interviews on July 5. A vacancy also exists on the Senior Advisory Board due to the resignation of Ellen Connelly. Councilmembers Winokur and Azari reviewed the applications on file and are recommending that Margaret Watts be appointed to the Board. The recommended appointees and the expiration dates of the terms they are filling are as follows: Liquor/Massage Licensing Authority William Wawro Senior Advisory Board Margaret Watts Expiration of Term July 1, 1994 Expiration of Term July 1, 1992 24. Routine Deeds and Easements. a. Powerline easement from John Arnolfo, 218 Walnut Street, needed to underground existing overhead electric services. Monetary consideration: $10. b. Powerline easement from Richard W. Hoffman and Colleen E. Hoffman, 1940 W. Lake Street, needed to underground existing overhead electric services. Monetary consideration: $10. J -161- July 17, 1990 ' c. Trail easement from Enrique M. Barrau and Marny D. Barrau which will complete the acquisition of land for the Spring Creek Trail from Drake Road, just west of Taft Hill Road to the City's Pineridge Open Space. The cost for acquisition of the easement is $10,600. d. Waterline easement from Energy Coatings Company, 1925 South County Road 11 needed as part of the Timberline Waterline Phase III Project. Energy Coatings Company has just recently cleared title to the property. Monetary consideration: $3744.31 (Industrial Land based on .69 sq.ft.) e. Land Acquisition from Robert K. and Helen M. Gray, 514-516 Stuart, needed for Stover/Stuart Bridge Project. Monetary consideration: $68,900. (based on a value estimate using duplex comparable sales in the area) Ordinances on Second Reading were read by title by Wanda Krajicek, City Clerk. Item #7. Item #8. Item #9. oament of Rogers Park. Item #10. Item #11. Item #12. Item #13. Ordinances on First Reading were read by title by. Wanda Krajicek, City ' Clerk. -162- July 17, 1990 Item #14. Item #15. B. C. Item #16. Item #17. Annexation. Councilmember Edwards made a motion, seconded by Councilmember Mabry, to adopt and approve all items not removed from the Consent Calendar. Yeas: Councilmembers Mabry, Azari, Kirkpatrick, Edwards, Winokur and Maxey. Nays: None. THE MOTION CARRIED. Ordinance No. 84, 1990 Amending Chapter 8, Article IV of the Code Following is staff's memorandum on this item: "FINANCIAL IMPACT The adoption of this Ordinance will result in improved operating efficiencies and does not require an expenditure of funds to implement. EXECUTIVE SUMMARY The recommended changes to the Code are as follows: 1. Increasing the dollar limits: From $500 to $1,000 before Purchasing Division involvement. From $5,000 to $15,000 before formal bidding would be required. From $20,000 to $50,000 before Council action would be required for exceptions to the bid process. 2. Authorizing development of a prequalification process for a vendor to be placed on the bid list. 3. Clarifying and adding exceptions to the bidding process. -163- July 17, 1990 ' 4. Permitting the use of a Request for Proposal (RFP) for goods and services and treating contracts awarded under the RFP process in the same manner as those awarded under the bid process. Council would not have to approve each RFP. 5. Bringing the Code into compliance with acceptable purchasing policies and procedures by minor housekeeping changes. 6. Adding a definition of change order so the Code reflects Charter requirements for bidding construction of improvements. The Purchasing Division's mission is to provide competitive and timely purchase of quality goods, materials, equipment and services which meet the needs of its customers. The Charter places requirements on the City to purchase goods by competitive bidding. The Division must operate within the parameters of these laws. Over the past two years problems with the purchasing ordinances have been identified by the Purchasing Division, its customers, and its vendors/suppliers. These problems were analyzed, reviewed and changes were recommended consistent with Purchasing's mission and the requirements of the City Charter. These problems can be summarized as: 1. It costs just as much to do a $5000 bid as a $15000 bid yet the $5000 item could be purchased by other means in less time and just as competitively. 2. The Purchasing Division has no ability to check bidder qualifications before bidders are placed on the City bid solicitation list. 3. There is not enough flexibility to purchase items which cannot be purchased by competitive bidding. 4. Requests For Proposals are not allowed for anything other than professional services. 5. Some general housekeeping changes are needed. 6. The construction change order process does not meet Charter requirements. PROCESS: With the input of several user groups, Purchasing and the City Attorney's Office developed a preliminary draft of the purchasing ordinance. Comments were solicited from City departments on the proposed Ordinance. Additionally the Purchasing Quality Improvement Team, the Equipment Board and the Capital Projects Procedures Manual Revision Committee commented on ' the Ordinance. Those comments, where possible, have been incorporated into the Ordinance. -164- July 17, 1990 Purchasing staff met with the Chamber of Commerce to brief its members on , the proposed Ordinance and solicit comments. Comments were also solicited from the Northern Colorado Contractors Association. ORDINANCE CHANGES: Increased dollar limits Currently departments may place orders for items up to $500 without Purchasing Division involvement. A review of 1989 purchase order data shows that 342 purchase orders for purchases from $500-$1,000 were made for a total of $349,000. This was 1.2% of the total dollar volume and 12% of the number of purchase orders. Therefore, increasing the dollar limit from $500 to $1,000 before Purchasing Division involvement is reasonable. This would give departments additional flexibility and let the Purchasing Division concentrate on the larger purchases. By raising the bid limit to $15,000, efficiency can be increased while still maintaining the competitive nature of the purchasing process. In 1980 when the dollar limit was raised, $5,000 represented .0001% of the dollars spent by the City. In 1989 $15,000 represented .0001% of the dollars expended. Currently over 50Y of the bids are under $15,000 and represent less than 15% of the total dollars bid. Items over $50,000 which are exceptions to the bid process would require Council action. Again in 1980, the dollar limit was set at $20,000 and represented less than .05% of the dollars expended. In 1989 this same percentage is maintained at $50,000. Prequalification allowed The current ordinances require the Purchasing Agent to send bids to anyone who requests the opportunity to bid. The ordinances do not allow any type of screening process. The proposed Ordinance will allow the City to have a screening process. This process is not described by the Ordinance but will be developed and made part of the purchasing procedures outlined in the City purchasing manual. The Purchasing Quality Improvement Team is currently working to develop these procedures. Exceptions to bidding The proposed Ordinance combines the old "Sole Source" and "Case Not Requiring Bidding" sections. The particular exceptions have been clarified, supplemented and defined. Added Request for Proposal (RFP) Language has been added which will authorize RFP's for goods and services in addition to the current use for professional services. This section will allow the use of RFP's, when the Purchasing Agent determines that a I -165- July 17, 1990 competitive bid would be impractical or disadvantageous, i.e. for complex goods and services which do not lend themselves to competitive bidding. The requirement that professional services over a certain dollar amount go to Council for approval has been removed. As proposed, RFP's would be considered in the same manner as bids. Housekeepiny The Code was reorganized to make the Purchasing Procedures more understandable. References to both responsible and responsive bidders have been added. Chanoe Orders Material or service Change Orders: The Ordinance authorizes the Purchasing Agent to approve change orders for material, professional services or services contracts up to $50,000 with Council approval for change orders above $50,000. This is consistent with the Capital Projects Procedures Manual (CPPM). Construction Change Orders: Cumulative change orders on constructions contracts of 15% would be permitted without bidding. Article VI Section 30 of the Charter states: "All city improvements in excess of an amount to be determined by ordinance of the City Council shall be executed by contract, except such improvements as Council authorizes a department to make, and shall be submitted to competitive bidding and ..." Except for the exclusion of contracts below a certain amount, the Charter language on construction does not allow exceptions to the competitive bidding process. (Article VI, Section 28 does authorize Council to make other kinds of exceptions for the purchase of supplies, materials and equipment.) Thus, change orders on contracts for improvements above a dollar amount or percentage amount would be required to be bid. A change to the Charter to allow Council to prescribe by ordinance exceptions to the competitive bidding process for City improvements, could be recommended to the citizens at the next election in the spring of 1991. Because Council approves the contingency is normally 10% or was chosen. This should give construction projects without orders. If the change orders contractor working at the sam responsible for problems with i budget on capital projects and since the less, the cumulative 15% change order amount the City the flexibility needed to continue having to stop and bid individual change were bid, it could result in more than one e site resulting in questions as to whom is vork performed." Councilmember Maxey made a motion, seconded by Councilmember Azari, to adopt Ordinance No. 84, 1990 on First Reading. -166- July 17, 1990 Jim O'Neill, Director of Purchasing and Risk Management, made a I presentation summarizing the major ordinance changes. Councilmember Maxey inquired about the increased dollar limit for formal bidding and the procedure when the 3 quotes received exceed the open market price. Mr. O'Neill replied that a formal bidding process is possible on any dollar amount. Councilmember Edwards asked about the issue of giving preference to the local business community. Mr. O'Neill responded the philosophy is to do business locally, where possible. Bruce Lockhart, 2500 East Harmony Road, spoke to the history of past increases in the dollar limits. Mayor Kirkpatrick commented that the ordinance was an efficiency measure which will result in savings. The vote on Councilmember Maxey's motion to adopt Ordinance No. 84, 1990 on First Reading was as follows: Yeas: Councilmembers Azari, Kirkpatrick, Edwards, Winokur, Maxey, Mabry. Nays: None. THE MOTION CARRIED. Presentation of Plaque to Boards and Commissions Member Yetta Rollin, a member of the Senior Advisory Board, was presented her plaque for eight years of service. Staff Reports City Manager Steve Burkett gave an update on the police chief selection process. He announced that Dave Feldman had been appointed the interim Police Chief. Ordinance No. 76, 1990, Appropriating Unanticipated Revenue to the NHC Capital Project Fund. Adopted on Second Reading Following is staff's memorandum on this item: -167- July 17, 1990 ' "EXECUTIVE SUMMARY On July 3, Council, by a vote of 5-0, adopted Resolution 90-103 Authorizing an Intergovernmental Agreement with the National Park Service for a Resource Assessment of the Poudre River. The Intergovernmental Agreement between the City and the Rocky Mountain Region of the National Park Service outlines the scope of work and roles and responsibilities for carrying out a Resource Assessment, in preparation for National Heritage Corridor, designation of the lower portions of the Poudre River. The Ordinance, which was adopted 5-0 on First Reading on July 3, appropriates unanticipated revenue to the capital project fund established for the Poudre River NHC to supplement previous allocations for advance planning work on NHC designation. Larimer County, Colorado State University and the Northern Colorado Water Conservancy District have each committed $5,000 to share in the cost of the Resource Assessment." Councilmember Winokur withdrew from discussion and vote on this item due to a perceived conflict of interest. Councilmember Mabry made a motion, seconded by Councilmember Edwards, to adopt Ordinance No. 76, 1990 on Second Reading. Yeas: Councilmembers Kirkpatrick, Edwards, Maxey, Mabry, and Azari. Nays: None. I THE MOTION CARRIED. Ordinance No. 78, 1990, Adding Section 17-126 to the Code of the City of Fort Collins to Prohibit Harassment. Adopted on Second Reading Following is staff's memorandum on this item: "EXECUTIVE SUMMARY At the City Council's worksession on May 29, 1990, Council and staff discussed the issue of harassment and the related issue of panhandling. Based upon the staff's investigation and research and the input received from Council at the worksession, staff prepared two ordinances. The first ordinance (Option A) was essentially the State's harassment statute (Section 18-9-111, C.R.S.), but with some of the State's provisions omitted. The second ordinance (Option 8) was identical except that it contained an additional provision that directly addresses conduct which might be associated with aggressive panhandling (see, Section 17-126[a][6]). This additional provision would make it easier to charge an individual with harassment for aggressive panhandling. On July 3, Council adopted Option 8 of this Ordinance on First Reading by a ' vote of 4-2." a[f?C July 17, 1990 Councilmember Mabry made a motion, seconded by Councilmember Edwards, to ' adopt Ordinance No. 78, 1990 on Second Reading. Councilmember Winokur commented unfavorably about the Ordinance. The vote on Councilmember Mabry's motion to adopt Ordinance No. 78, 1990 on Second Reading was as follows: Yeas: Councilmembers Edwards, Maxey, Mabry, and Kirkpatrick. Nays: Councilmembers Winokur and Azari. THE MOTION CARRIED. Resolution 90-112 Making Findings of Fact Regarding the Appeal of the Planning and Zoning Board Approval of the Four Seasons 6th Filing, PUD Preliminary and Final Plan, and Upholding the Decision of the Board, Failed Following is staff's memorandum on this item: EXECUTIVE SUMMARY On May 21, 1990, an appeal of the May 7, 1990, final decision of the Planning and Zoning Board to approve the Four Seasons 6th Filing, PUD Preliminary and Final Plan was filed on behalf of the appellants, Bill and Susan Hansen, David and Mary Hughes, Jeff and Kay King and Gary and Becky Keigan. On July 3, 1990, Council voted 4-1 to uphold the decision of the Planning and Zoning Board. In order to complete the record regarding this appeal, the Council should adopt a Resolution making findings of fact and finalizing its decision on the appeal. BACKGROUND The appellants' notice of appeal was based on allegations that: 1. The board abused its discretion in that its decision was arbitrary and without the support of competent evidence in the record. 2. The board failed to properly interpret and apply the relevant provisions of the Code and Charter. 3. The board failed to conduct a fair hearing in that the board exceeded its authority or jurisdiction as contained in the Code or Charter, by the following: (a)' The board conducted a preliminary and final hearing without good cause being shown for the acceleration of the proceedings, contrary to the Code. (b) The board failed to give adequate notice of the public meeting in that the letter notice contained the misleading statement that the same plan which had been approved previously was to be considered at the meeting; and (c) The , -169- July 17, 1990 board failed to publish adequate notice, of the hearing fifteen (15) days prior to May 7, contrary to statute. 4. The board failed to conduct a fair hearing in that the board substantially ignored its previously established rules of procedure. 5. The board failed to conduct a fair hearing in that the board improperly failed to receive all relevant evidence offered by the appellant. At the July 3, 1990 hearing on this matter, Council considered the testimony of City staff and the appellants. In subsequent discussion at this hearing, Council determined that the Planning and Zoning Board did not abuse its discretion and that the board properly interpreted relevant provisions of the City Code and Charter and that the Board conducted a fair hearing; and determined to uphold the decision of the Board." Councilmember Mabry withdrew from discussion and vote on this item due to a perceived conflict of interest. City Attorney Steve Roy explained the process to be followed in the consideration of this Resolution. Sherry Albertson -Clark, Chief Planner, in clarification of Councilmember Edwards' July 3 question, made a brief presentation on the drainage improvements presently located on the subject property. ' The following appellants spoke in response to Councilmember Edwards' July 3 question about the existence of drainage improvements: 1. Becky Keigan, 4037 Moss Creek Drive, addressed the misinformation contained in the notice and clarified that a storm drainage ditch is presently located behind her property. 2. David Hughes, 4025 Moss Creek Drive, presented photographs and overheads in response to the question. Lucia Liley, attorney representing the applicant, asked for clarification on the presentation of photographs and whether they constitute new evidence. City Attorney Steve Roy acknowledged that the question that Councilmember Edwards asked should be fully and accurately answered. Evidence specifically on that point should be received by the Council. 3. Bill Hansen, 4013 Moss Creek Drive, a professional hydrologist, stated that the ditch behind the Hughes, Keigans and Kings was constructed in 1987 to carry storm drainage from Benthaven/Moss Creek intersection to the storm drainage pond in Troutman Park. 4. Peter Bullard, attorney representing the appellants, requested that the ' overheads and notice Mrs. Keigan presented be offered as evidence in the proceeding. -170- July 17, 1990 Mr. Bullard clarified that, contrary to a response to a question by Councilmember Edwards on July 3, the drainage easement continued to exist even after the 3-year period and 6-month extension had expired. The easement was not vacated until the new plat was approved. The appellants did not get an opportunity to address the issue of whether the new plan was a better plan. Mr. Hughes stated the date of the latest development drawing was April 30, 1990. Immediately after receiving the notice, a neighbor received a copy of the old drawing. Lucia Liley, representing the applicant, requested that Council limit its consideration to the issue of clarifying a question by Councilmember Edwards. Regardless of what is on the property in its undeveloped state, the property has not been developed. There are two things which exist now: (1) A small private lateral ditch in the channel easement which allows irrigation water to run into it to water a small city park; and (2) a temporary backlot swale to handle water in a low area adjacent to three lots. For other storm drainage reasons, the City in 1989 graded dirt behind these lots. This is not a permanent storm drainage improvement and is not part of either the old plat or new plat. It does not relate in any way to the Mail Creek Channel Improvements which will carry regional storm drainage waters. In the new plan, a 20-foot easement adjacent to the 3 lots is retained and an underground pipe will be installed. The localized storm drainage issue is separate from the relocation of the drainage channel. The facts are there is an undeveloped piece of property; an expired plat; a new plan which met all the engineering and LOGS requirements and contains an engineered channel improvement that is hydrologically superior; and an easement never intended to be an open space amenity but required by the city to meet regional storm drainage needs across the site. She requested approval of the Resolution upholding the decision of the Planning and Zoning Board. Bill Hansen, appellant, spoke to the inadequacy of the process, the size of the lateral ditch, and problems with storm drainage. City Attorney Roy clarified the grounds for remanding the decision back to the board. Councilmember Maxey made a motion to adopt Resolution 90-112. THE MOTION DIED FOR LACK OF A SECOND. Councilmember Edwards made a motion, seconded by Councilmember Azari, to remand the issue to the Planning and Zoning Board for rehearing due to lack of due process. Councilmember Edwards recommended remanding due to an accumulation of circumstances. In the interest of fairness and Council not becoming the Planning and Zoning Board, the Board, the applicant and the appellant need the opportunity to work on this issue further.. The appellants relied on -171- July 17, 1990 ' the fact that the letter notifying them of the application appeared to refer to the same plan that had been previously approved. The appellants further relied on the existence of some kind of drainage facility. It is of further concern that the application, preliminary and final, was on the Planning and Zoning Consent agenda. Despite the applicants' request at the Planning and Zoning Board to review the ditch location issue, the whole approval happened too quickly. To achieve fairness and provide a better opportunity for negotiation, this issue should be remanded to the Planning and Zoning Board for rehearing. Councilmember Azari spoke in favor of giving people more time to have their say-so since the notice didn't indicate there would be a change. Because the Council and the Planning and Zoning Board are both interested in fairness, she stated her belief that the issue should.be reheard by the Planning and Zoning Board. Councilmember Edwards expressed the hope that the appellants believe the Council had given them a fair hearing. Council went above and beyond the normal rules in hearing the clarification. Mayor Kirkpatrick spoke in favor of the motion to remand the decision back to the Planning and Zoning Board. Although she had concerns about the appellants' points, the appellants need another opportunity to have their points heard. Councilmember Maxey spoke against remanding the decision and expressed concern about inaccurate and out of context information given during this hearing. The vote on Councilmember Edwards' motion to remand the issue to the Planning and Zoning Board for rehearing was as follows: Yeas: Councilmembers Azari, Kirkpatrick, Edwards, and Winokur. Nays: Councilmember Maxey. THE MOTION CARRIED. Resolution 90-113 Making Findings of Fact Regarding the Appeal of the Planning and Zoning Board Recommendation to Deny the Administrative Change for Lighting at Raintree Commercial PUD, Phase 1. Tracts A & B. Approved Following is staff's memorandum on this item: "EXECUTIVE SUMMARY On May 21, 1990, an appeal of the May 7, 1990, final decision of the ' Planning and Zoning Board to recommend denial of the Administrative Change -172- July 17, 1990 for Lighting at Raintree Commercial PUD, Phase 1, Tracts A & 8 was filed by ' Timothy Stein, owner of Accurate Sign Maintenance. On July 3, 1990, Council voted 5-1 to overturn the final decision of the Planning and Zoning Board to recommend denial of the administrative change. In order to complete the record regarding this appeal, the Council should adopt a Resolution making findings of fact and finalizing its recommendation to the Planning Director. BACKGROUND The appellants' application of appeal was based on allegations that: 1. The Planning and Zoning Board abused its discretion in denying the requested administrative change to the Raintree Village Shopping Center PUD to allow the proposed site lighting. The decision was arbitrary and without the support of competent evidence in the record. 2. The Planning and Zoning Board failed to properly interpret and apply the relevant provisions of Activity Category A of Section 29-526 of the Code of the City of Fort Collins. At the July 3, 1990 hearing on this matter, Council considered the testimony of City staff, the appellant and the public. In subsequent discussion at this hearing, Council determined that the Planning and Zoning Board did abuse its discretion by relating the lighting to signage and by considering light spillage to be excessive, given the quantitative information provided by the appellant; and determined to overturn the decision of the Board." Councilmember Mabry made a motion, seconded by Councilmember Edwards, to adopt Resolution 90-113. Yeas: Councilmembers Mabry, Azari, Kirkpatrick, Edwards, and Maxey. Nays: Councilmember Winokur. THE MOTION CARRIED. Items Related to the Acquisition of 281 North College Following is staff's memorandum on this item: "FINANCIAL IMPACT The purchase price for 281 North College Avenue is $715,000. The financing is through a Lease Purchase Agreement with Safeco Credit Company, Inc. of Denver, Colorado at a net effective interest rate of'7.3% with quarterly payments in the sum of $42,992.08. Sufficient funds are budgeted in 1990 to make the initial lease payment and the quarterly lease payments are proposed in Facilities 1991 base budget. -173- July 17, 1990 ' EXECUTIVE SUMMARY In order to purchase 281 North College Avenue using the proposed financing arrangement with Safeco Credit Company, Inc., all of the following actions by City Council must occur: A. Resolution 90-114 Approving the Agreement of Purchase and Sale of Real Property between Resolution Trust Corporation, as Conservator of Topeka Savings, a Federal Savings and Loan Association, as seller, and the City of Fort Collins, as purchaser, for the Purchase of 281 North College Avenue, Fort Collins, Colorado. This resolution is subject to the City Council's subsequent appropriation of funds necessary to meet the City's obligation under the agreement on or before September 7, 1990. These monies will be appropriated from the funds provided by Safeco Credit Company, Inc. when they in turn purchase the property from the City. B. Hearing and First Reading of Ordinance No. 85, 1990 Authorizing the Sale of 281 North College, Fort Collins, Colorado, to Safeco Credit Company, Inc. This Ordinance authorizes the City Manager to enter into an Agreement of Purchase and Sale of Real Property for the sale of 281 North College Avenue to Safeco Credit Company, Inc., contingent upon Safeco Credit Company, Inc., entering into the Lease Purchase Agreement with the City that is the subject of Ordinance No. 86 below. This Ordinance also ' authorizes the Mayor to execute a deed conveying 281 North College Avenue to Safeco Credit Company, Inc., pursuant to the terms and subject to the contingencies of the Agreement of Purchase and Sale with Safeco Credit Company, Inc. C. Hearing and First Reading of Ordinance No. 86, 1990, Authorizing the City Manager to Enter into an Agreement for the Financing by Lease Purchase of Real Property and Improvements Located at 281 North College Avenue, Fort Collins, Colorado. Proposals were solicited on April 11, 1990 from seven firms to provide lease purchase financing for the City's current equipment requirements. The lowest net effective interest rate of 7.3% was received from Safeco Credit Company, Inc. of Denver, Colorado. This rate has been extended to the City for the lease purchase of the real property and improvements located at 281 North College Avenue, Fort Collins by Safeco Credit Company. BACKGROUND The City is currently leasing 281 North College Avenue from the Resolution Trust Corporation (RTC), the conservator of Topeka Savings. The lease cost is $72,000 per year ($2.78/sq. ft.) and the lease will terminate in January 1994. The building is currently occupied by Development Services, ' Cultural, Library and Recreation Services Administration, and Parks and Recreation personnel. -174- July 17, 1990 The building has helped alleviate the space problems at City Hall West, Center, the Park Shop. The , City Hall East, the Downtown Community and original plan was to lease for 5 years then move to a new facility to be constructed on Block 31. Due to the findings of the Block 31 study, the construction of a facility on Block 31 is not anticipated for 7 - 10 years. Thus, the City will continue to occupy 281 North College longer than originally planned. Staff has analyzed the economics of the lease purchase arrangement and it is clear that it is more cost effective for the City to lease purchase the property than to continue to lease it. Although the City now leases the building for a very favorable rate of $2.78/sq. ft. and the existing lease rate will last for another 3 112 years, the building owner is expected to raise the lease rate to market rate of potentially $8 to $12/sq. ft. at the end of the current lease. Assuming the lease rate increases to only $10/sq. ft. in 1994, the City will save a considerable amount of money over a 7 - 10 year planning period by lease purchasing the building. Also, the City will have the alternative of selling the building to use as start-up money for any new construction on Block 31. A purchase price of $715,000 has been negotiated with the RTC. This is an outstanding value at $19/sq. ft. Compared to the estimated cost of new construction at $100/sq. ft., lease purchasing the building is an economically efficient way to meet City space needs for the next few years. After reviewing the economic considerations of this purchase, staff believes the best direction is to take all three steps outlined in the Executive Summary which puts in place the necessary financing package to purchase 281 North College Avenue over the next five years." General Services Director Tom Frazier gave a brief history of the 281 North College project and outlined the steps necessary to enter into a lease/ purchase agreement. Councilmember Winokur inquired if the action would change the tax status of the property. Mr. Frazier replied that the property is presently tax-exempt and would stay the same. Councilmember Edwards clarified that the $19/sq. ft. acquisition cost does not include the City's investment in leasehold improvements. Mr. Frazier replied the cost would be $27/sq.ft. if the leasehold improvements are included. Councilmember Azari asked why it was cheaper to buy the property and lease it back, rather than buying it: outright. -175- July 17, 1990 ' Mr. Frazier replied that outright purchase is the most cost-effective way to acquire the property. However, the lease is at 7.3% and the City is currently earning more than 7.3% on its money. Finance Director Alan Krcmarik clarified moneys in reserves could be used but those reserves are presently earning over 8%. Councilmember Maxey observed that the savings by using lease/purchase was approximately $5,000-$6,000 per year and expressed concern that this action would appear as manipulation that might trigger future lease/purchase concerns in the legislature. Outright purchase would reduce the City's debt load and increase the fixed assets. The investment in the property is very strong. City Manager Burkett advised about the upcoming deadlines with Resolution Trust Corporation. Councilmember Maxey asked if the lease/purchase would have any pre -payment penalties. Mr. Frazier responded that it did not. Councilmember Edwards inquired if there are any other fees or costs associated with the transaction. ' Mr. Frazier replied that there are none. Councilmember Edwards commented that, given the instability within Resolution Trust Corporation, perhaps next year this property could be bought for less. Mr. Frazier responded that if the purchase is not closed by September, the property will go back on the open market. The City is then in a competitive situation and in 3 1/2 years the lease payment for the City as a tenant will probably go back up to market rates. Councilmember Winokur clarified that the lease/purchase rate of 7.3% is fixed. The current average earning rate of 8% is flexible. Mr. Krcmarik replied that lease/purchases have been refinanced in the past when the market drops low enough. Mr. Mabry asked why the same recommendation of arbitrage was not made on all the other fixed assets. Director of Administrative Services Pete Dallow stated that the City will be using the 281 building 7-10 years. The City has gone through an open process, has budgeted this, is currently leasing this building, and is proposing to convert to a lease/purchase arrangement. This lease/purchase ' would not have a significant impact on the City's debt policy but there -176- July 17, 1990 would be a significant impact if all the City's buildings were ' lease/purchased. Councilmember Azari asked if the parking requirements are being met at the 281 building. Mr. Dallow replied that there is sufficient parking to meet the requirements at that building. Councilmember Mabry asked if there is any way to purchase the building outright in the required timeframe. Mr. Burkett recommended that action taken at this meeting is a signal to Resolution Trust Corporation that the City will go through with the option negotiated. If Council chooses to appropriate the funds to purchase the building as opposed to lease/purchasing, the appropriate ordinances can be prepared for the adjourned meeting of July 24. Councilmember Mabry stated that adoption of the Resolution sends the message that the City is going to buy. . City Attorney Roy stated it would be necessary to ask Council to act on the Ordinances as well to preserve the option of lease/purchase in order to be able to close on September 7. Councilmember Mabry clarified that if the meeting were adjourned to July 24, ordinances to either lease/purchase or purchase outright could be considered at that time. Councilmember Winokur inquired about funds to buy the property outright and if it is prudent to spend the reserves for this purpose. Mr. Burkett replied that the effect on financial planning could be addressed at the July 24 meeting. He added that because there are several contingencies on the City's options, there is a slight possibility that Resolution Trust could come back and say the City hasn't complied with all the contingencies. Councilmember Edwards clarified that in the next week staff could evaluate the issue of buying outright using reserves vs. lease and that a one week delay on adoption of the financing mechanism won't jeopardize the transaction. Councilmember Maxey clarified that Second Reading would be on August 7 either way. Councilmember Edwards made a motion, seconded by Councilmember Winokur, to adopt Resolution 90-114. Councilmember Azari stated that hard economic times is the reason the building is available for that price. I -177- July 17, 1990 Mayor Kirkpatrick spoke in support of the Resolution. The vote on Councilmember Edwards' motion to adopt Resolution 90-114 was as follows: Yeas: Councilmembers Azari, Kirkpatrick, Edwards, Winokur, Maxey and Mabry. Nays: None. THE MOTION CARRIED. Councilmember Winokur made a motion, seconded by Councilmember Azari, to postpone consideration of Ordinance No. 85, 1990 and Ordinance No. 86, 1990 to the end of the meeting. Yeas: Councilmember Kirkpatrick, Edwards, Winokur, Maxey, Mabry, and Azari. Nays: None. THE MOTION CARRIED. Adjournment Councilmember Edwards made a motion, seconded by Councilmember Winokur, to adjourn the meeting to July 24 at 6:15 to consider Ordinance No: 85, 1990 and Ordinance No. 86, 1990 and to consider adjourning into Executive Session to do the annual evaluation of the Municipal Judge. Councilmember Mabry clarified that other ordinances with respect to that t item could also be considered at the July 24 meeting. The vote on Councilmember Edwards' motion to adjourn to July 24 was as follows: Yeas: Councilmembers Edwards, Winokur, Maxey, Mabry, Azari, and Kirkpatrick. Nays: None. 117100111 to] ti .-T.T1 T"I The meeting adjourned at 9:15 p.m. LT11, 4 W, mayorLGL� � -178-