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HomeMy WebLinkAboutMINUTES-07/16/1985-RegularJuly 1b, 1985 I COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council -Manager Form of Government Regular Meeting - 6:30 p.m. A regular meeting of the Council of the City of Fort Collins was held on Tuesday, July 16, 1985, 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: Clarke, Estrada, Knezovich, Ohlson, Rutstein, and Stoner. Councilmembers Absent: Horak Staff Members Present: Arnold, Huisjen, Shannon, Krajicek, Lewis Agenda Review: City Manager City Manager Arnold noted staff was recommending tabling Item #19, Resolution Authorizing the City Manager to Execute a Second Modification Agreement to the Master Agreement with Anheuser-Busch, Inc., to August 6 and there was a request for an Executive Session to discuss personnel matters. ' Councilmember 0hlson asked that Item 0, Resolution Accepting a Grant of $79,200 from the Colorado Highway Department to Reconstruct the Bridge at Oak Street Crossing the Larimer #2 Canal Entrance to City Park, be removed 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 be "pulled" off the Consent Calendar and considered separately. Agenda items pulled from the Consent Calendar will be considered separately under Agenda Item k23, Pulled Consent -Items, except items pulled by anyone in the audience or items that any member of the audience is present to discuss that were pulled be staff or,'Council. These items will be discussed immediately following the Consent Calendar. 4. Second Reading of Ordinance No. 75, 1985, Authorizing the Issuance and Sale of industrial Development Revenue Bonds, eries 1985, in the Amount of $1,800,OUU for the Timberline Tech Center Project. This Ordinance was unanimously adopted on First Reading on June 18 and authorizes the issuance and sale of Industrial Development Revenue Bonds, Series 1985, in the amount of $1,800,000 for the Timberline ' Tech Center project. -347- July 16, 1985 At the July 2 meeting, this ordinance was unanimously adopted on ' Second Reading. Due to an incomplete legal publication prior to the final reading, it is bond counsel's opinion that this ordinance should be reheard on Second Reading. The complete notice of this rehearing was published to meet Charter requirements. 5. Second Reading of Ordinance No. 77, 1985, Appropriating Unanticipated evenue 1n the ommunication Fund to Purchase a Computer Software Program. The City of Fort Collins received a settlement from MiniSoft Corp. in payment for material returned to them by the Integrated Office Systems division. This Ordinance was unanimously adopted on First Reading on July 2 and will appropriate those funds in the Communication Fund. The funds will be used to purchase a different word processing software package. 6. Resolution Accepting a Grant of $79,200 from the Colorado Highway Department to Reconstruct the Bridge at Oak Street crossing the arimer H2 Canal entrance to City Park. This Resolution authorizes the acceptance of a grant offer from the State for $79,2OU to replace the Oak Street Bridge crossing the Larimer N2 Canal, entrance to the City Park ballfields. The grant is for 80% of the estimated cost of $99,000 for design and construction. , The grant must be accepted by August 5, 1985. Staff is examining what source City matching funds of $19,800 should come from. An appropriation ordinance will be presented to Council for approval of the match before the project can begin. 7. Tabling of Motion to Discuss Librar, r Videocassette Collection to On June 4 Council brought up the matter of competition between video dealers and the Library. Council also expressed concern about availability of Library's videocassettes to those not able to afford machine and cassette rental. These matters were tabled to the July 16 meeting to allow input from the Library Board. The Library Board has met with video dealers and will work with them and staff to develop a long-range policy for the development of a videocassette collection that will meet the needs of both groups. This will be ready for Council by September 17. At that time Library staff will also have in-house use of videocassettes by those not and video rental. developed a plan for free able to afford equipment -348- July 16, 1985 8. Routine Deeds and Easements. ' a. Easements for Northeast Loop Waterline. 1. Montgomery 2. Associates of Hickory Village 3. Martin 4. 1235 Partnership 5. Udy 6. United Bank Trustee 7. Mangum and Niewald b. Resolution authorizing execution of an easement for the Anheuser-Busch process waste line. A 150 foot long easement is needed by Anheuser-Busch to extend the brewery process waste line onto the WWTPp2 site. Ordinances on Second Reading were read by title by Wanda Krajicek, City Clerk. 4. Second Reading of Ordinance No. 75, 1985, Authorizing the Issuance and Sale of ndustria Uevelopment Revenue Bonds, Series , ,in the Amount of $1,8UU,000 for the limberline ech Center Project. 5. Second Reading of Ordinance No. 77, 1985, Appropriating Unanticipated ' Revenue in the Communication Fund to urchase a Computer Software royram. Councilmember Knezovich made a motion, seconded by Councilmember Clarke, to adopt and approve all .items not removed from the Consent Calendar. Yeas: Councilmembers Clarke, Estrada, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Resolution Making an Appointment to the Senior Citizens Board, Adopted Following is the staff's memorandum on'this item: , "Due to the resignation of Virginia Mohr -Callahan, a vacancy exists on the Senior Citizens Board. The board liaison has reviewed the ,applications. that were previously submitted for the July 2 appointments. The recommendation for the vacancy will be forwarded under separate' cover." Councilmember Ohlson nominated Margaret Tremper for the vacancy on the Senior Citizen Board. -349- July 16, 1985 Councilmember Uhlson made a motion, seconded by Councilmember Stoner, to adopt Resolution 85-115 inserting the name of Margaret Tremper. Yeas: I Councilmembers Clarke, Estrada, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Resolution Adopting Findings of the Appeal of the Planning and Zoning Board Decision to Deny a Proposed Amendment of Cunningham Corners and Setting Forth the Conditions for Approval of the Amendment of Cunningham Corners Master Plan, Adopted Following is the staff's memorandum on this item: "Executive Summar On July 2, 1985, the Council heard an appeal of the April 29, 1985, decision of the Planning and Zoning Board which denied the Amendment of Cunningham Corners Master Plan. The Council voted to reverse the decision of the Planning and Zoning Board by approving the amended Master Plan of Cunningham Corners with conditions. Background The proposal is to amend the existing approved Master Plan for Cunningham Corners. The proposed changes include the deletion of the Windmill Drive ' connection between Richmond Drive and Gunnison Drive and a reconfiguration of Tracts A (Townhomes) and H (Open Space Detention). The subject property is located on the northeast corner of the intersection of Shields Street and Horsetooth Road. Un.April 29, 1985, the Planning and Zoning Board voted to deny (6-0) the proposed amendment to the Master Plan. The reasons for the denial included police and fire standards, good planning sense, and previous decisions made on Windmill Drive. At the July 2, 1985 meetiing of the City Council, traffic issues and emergency response times were discussed. The City Council considered the appeal based upon the detailed minutes of the Planning and Zoning Board and new evidence presented by the Staff, developer and neighborhood; and, after consideration, reversed the decision of the Planning and Zoning Board on a 5-2 vote with the following conditions: a. That Windmill Drive be vacated and adjoining single family property owners accept the ROW. The applicants will provide all the necessary documentation for the vacation. -350- July 16, 1985 b. The existing pavement, curb and gutter, sidewalk, etc. in Windmill ' Drive be removed and replaced with an acceptable ground cover treatment, the cost of which will be borne by the applicants. c. That the applicants bear the cost of any removal or relocation of existing utilities, including shutting off at the main. The applicants should provide the necessary vacation or dedication documents for any unneeded easements. d. A sidewalk be provided between Gunnison Drive and Richmond Drive. The applicants should bear the cost of installation of the sidewalk and dedicate the required public access easements. e. The applicants should fulfill these requirements as part of the approval of any future phases of the Cunningham Corners Master Plan. The reversal of the Planning and Zoning Board's decision has the effect of approving the Amended Master Plan of Cunningham Corners." Councilmember Knezovich made a motion, seconded by Councilmember Estrada, to adopt Resolution 85-116. Yeas: Councilmembers Clarke, Estrada, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. ' Resolution Authorizing the City Manager to Approve a Change Order to Increase the Amount of Repair Work in the Street Rehabilitation Program, Adopted F Following is the staff's memorandum on this item: "Executive Summary This resolution authorizes the City Manager to approve a change order to add more street work to the 1985 Street Rehabilitation Program. The change order would be issued to Sterling Paving, this year's contractor, for up to $13U,000 to rehabilitate Swallow Road between Remington and Lemay. The bids for this year's rehabilitation project came in below the Engineer's estimate. These savings combined with the contingency will provide the funds to do the added street work. Swallow Road was programmed for rehabilitation in 1986. Doing'it this year helps to gain an extra step with the program. The Capital Project Management Control System requires all change orders in excess of $50,000 to be approved by City Council. -351- July 16, 1985 Background Bids for the 1985 The low bidder Street Rehabilitation Sterling project were received on June 5th. ' was Paving with their bid of $418,233.5U. This was $4U,000 below the Engineer's estimate. Because it was not known what the bids would be, a contingency was held back in case the bids came in high. The total available for more street work is $130,000. Since we have so many streets in need of repair, it has been our practice in past years to add more street work to spend as much of the budgeted funds as possible. The streets added were generally selected from the next year's program. This year we propose to add Swallow Road from Remington to Lemay, which is taken from next year's list. The work planned includes cross pan repair, patching of failed sections, manhole and valve box adjustments, and a 2-inch asphaltic concrete overlay. The Capital Project Management Control System requires that all change orders exceeding $50,000 be approved by the City Council. The preliminary estimate for Swallow indicates $130,000 is enough to pay for improving the entire mile. After exact quantities are measured a change order will be negotiated with Sterling Paving for an exact amount. We are requesting approval for a change order up to the $130,000 so that the City Manager may give the final go ahead. This will keep the project moving without delays that would cost more money." Councilmember Clarke made a motion, seconded by Councilmember Ohlson, to ' adopt Resolution 85-117. Councilmember Clarke asked why Swallow Road was chosen for this work. Acting City Engineer Mike Herzig replied that Swallow Road was chosen because it was the street in the worst condition from the 1986 program. The vote on Councilmember Clarke's motion to adopt Resolution 85-117 was as follows: Yeas: Councilmembers Clarke, Estrada, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Ordinance Appropriating General Fund Reserves for Household Hazardous Waste Collection Day, Adopted on First Reading Following is the staff's memorandum on this item: -352- July 16, 1985 "Executive Summary ' Potentially harmful household wastes represent a hazard waiting to become an accident. Fort Collins residents can be expected to generate over 67,000 gallons of hazardous wastes on an annual basis. Working with Larimer County and the City of Loveland it is planned to hold a "Household Hazardous Waste Collection Day" on Saturday, September 28, 1985. A contract will be awarded by Larimer County to a licensed company to receive and dispose of the hazardous material. The total cost including the contract will be $25,000. In order to help make this effort successful Fort Collins, Loveland and Larimer County will share the cost. Fort Collins' share will be $11,250. An ordinance has been prepared for Council consideration to appropriate General Fund reserves for this purpose. Background Since this is a new City -County program and since this proposal is sufficiently important we are attaching as background not only the Executive Summary for the Proposed Household Hazardous Waste Collection Day, but also the full text of the proposal including the budget, Appendix A listing potentially hazardous wastes and other background material." Councilmember Knezovich made a motion, seconded by Councilmember Estrada, ' to adopt Ordinance No. 78, 1985 on First Reading. James Cole, 733 Country Club Road, Chairman of the Chamber of Commerce Industry Employment Subcommittee, noted his committee had been studying hazardous waste for several years and that there has been illegal dumping occurring, an activity that will probably grow as the population grows. He spoke of the awareness campaign planned for the day and strongly supported this effort. Councilmember Knezovich questioned whether this day was geared towards businesses as well as households. Frank Lancaster, Larimer County Forestry and Solid Waste Management Director, replied that the limit on the amount of waste one household could turn in was five gallons. He explained how the materials would be packed and stated there was not yet a program for small businesses to dispose of their waste. He noted the cost of disposal and the volume of waste made such a program prohibitive at this time. Mayor Rutstein urged the Committee, the Chamber of Commerce, and the waste generators to work together to find a way to dispose of their waste safely. -353- July 16, 1985 The vote on Councilmember Knezovich's motion to adopt Ordinance No. 78, 1985 on First Reading was as follows: Yeas: Councilmembers Clarke, ' Estrada, Knezovich, Uhlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Ordinance Authorizing the Issuance of a Sales & Use Tax Revenue Security to First Interstate Bank of Fort Collins, N.A. in an Amount not to Exceed $2,000,00O for Construction of South Lemay Avenue Between Horsetooth Road and Harmony, Adopted on First Reading Following is the staff's memorandum on this item: "Executive Summary Included in the 1985 annual budget was an appropriation to construct Lemay Avenue between Horsetooth Road and Harmony. The funds for this construction were to be provided by bond anticipation notes. This borrowing will serve the same purpose as those bond anticipation notes and provide the funds for the construction of the road. Background Staff was anticipating borrowing the money for the construction of South ' Lemay at the same time we borrowed funds for the construction of the pool and rink. South Iemay Avenue is now ready for award of a construction contract and for the work to begin so that it may be completed before winter sets in. As we are not currently ready to do the financing for the pool and rink, we recommend that this borrowing occur for South Lemay. We will not include these funds in the future borrowing for the pool and rink. The terms of the revenue security are that it be a draw down note. It will bear interest on funds drawn at a rate equal to 8U% of the prime interest rate. The interest will have the ability to float daily as the prime rate changes. The security will mature in one and one half years. Today the prime rate is at 9.5%,.,therefore the rate of interest the City would be paying is 7.6%. The 1985 budget included an estimated interest rate of 9% for this borrowing." Councilmember Clarke made a motion, seconded by Councilmember Stoner, to adopt Urdinance No. 79, 1985 on First Reading. Yeas: Councilmembers Clarke, Estrada, Knezovich, Uhlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIEU. -354- July 16, 1985 Resolution Accepting a Grant of $79,200 ' from the Colorado Highway Department to Reconstruct the Bridge at Oak Street Crossing the Larimer q2 Canal Entrance to City Park, Adopted Following is the staff's memorandum on this item: "Executive Summa This Resolution authorizes the acceptance of a grant offer from the State for $79,2UO to replace the Oak Street Bridge crossing the Larimer q2 Canal, entrance to the City Park ballfields. The grant is for 80% of the estimated cost of $99,000 for design and construction. The grant must be accepted by August 5, 1985. Staff is examining what source City matching funds of $19,800 should come from. An appropriation ordinance will be presented to Council for approval of the match before the project can begin. Background The Oak Street Bridge is a less than two lane bridge with no walks for pedestrians. Because of this, it has always been a traffic hazard. Further, the bridge was rated as "deficient" in a bridge inspection program that was completed in 1981. The Parks and Recreation Department has wanted to replace the bridge for many years but has not had the funds. This is the best opportunity to accomplish the replacement and for the least possible cost to the City. A number of sources are being reviewed now on what funds should be used for the $19,800 City match. It is not a question of whether funds are available or not. It is only a question of what source is most appropriate. Our plan is to design the bridge late this fall, start construction in February or March, and complete construction in April prior to water being turned on in the ditch and before the softball season starts." Councilmember Ohlson made a motion, seconded by Councilmember Stoner, to adopt Resolution 85-113. Councilmember Uhlson felt this was an opportunity to call the public's attention to this project since a dangerous situation has existed there for some time. The vote on Councilmember Ohlson's motion to adopt Resolution 85-113 was as follows: Yeas: Councilmembers Clarke, Estrada, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. 1 -355- July 16, 1985 Citizen Participation ' A. Proclamation Naming August 4 - 10 as The Dog Days of August, was accepted by Gladys Russell of the Humane Society Hoard of Directors. B. Proclamation Naming April 4 - 19, 1966, as Native American Heritage Week, was forwarded to the appropriate persons. Appeal of Planning and Zoning Board Decision to Deny the Proposed Lake Street Village PUD, Referred Back to the Planning and Zoning Board Following is the staff's memorandum on this item: "Executive Summary On June "6, 1965, the Planning and Zoning Board denied the request of Bruce Miller for a planned unit development consisting of 32 multi -family units in four eight-plex buildings on 3.26 acres on West Lake Street, northeast of the Prospect -Shields intersection. Staff recommended approval of the project to the Planning and Zoning Board, the Board denied the request by a 3-3 vote. Junge, Reich, Heinz & Magee AIA Architecture and Planning Professional Corporation of Boulder has requested on behalf of their clients, Bruce Miller and Chris Moritz, that the item be appealed to the ■ City Council. Background The proposal is for four eight-plex buildings (32 units), enclosed garages, center swimming pool, and active open space area on a 3.26 acre site on West Lake Street. Staff recommended approval of the project with the following concerns: 1. The neighborhood compatibility criterion of the Land Development Guidance System was met, but differences remain between the applicant and the surrounding residents. 2. The traffic generated by the project is considered by staff to be minor but will add to a future undesirable situation. The conclusion of the traffic study, with which staff agrees, is that the addition of this project will not affect the levels of service at the nearby intersections. The future traffic volumes with or without this project will exceed capacity. On June 26, 1965, the Planning and Zoniny Board voted to deny the project by a tie vote of 3 to 3. Reasons for the denial were: -356- July 16, 1985 ' 1. Building bulk was considered greater than what is compatible with the neighborhood, and setbacks inadequate. 2. Other site design issues which included the pool and picnic facilities; landscaping, setback and treatment of the garages; and the fireplaces (air quality). 3. Traffic generation of the project adding to an existing and future undesirable situation. Junge, Reich, Heinz & Magee AIA Architecture and Planning Professional Corporation, on behalf of their clients, Bruce Miller and Chris Moritz, have appealed the decision of the Planning and Zoning Board. They are appealing the project based on misrepresentations in the presentation of the neighborhood committee opposed to the project that may have negatively influenced the Board members. City Council should consider the appeal based upon the detailed minutes of the Planning and Zoning Board and new evidence; and, after consideration, either sustain, modify or reverse the decision, or send the matter back for further hearing and review by the Planning and Zoning Board." Acting Community Development Director Linda Hopkins gave a brief review of the project and the Planning and Zoning Board action on June 26. ' James Junge, architect and planner for the project, noted his firm was available to answer questions. Lloyd_ Walker, President of the Prospect/Shields Neighborhood Association, summarized the neighborhood's position and noted their involvement with this site over the past seven years. Patricia Prenter, 801 West Lake, spoke of her concerns about the project. Councilmember Clarke noted he was in favor of sending the matter back to the Planning and Zoning Board for further review. Councilmember Ohlson agreed with Councilmember Clarke and stated that this was a quality project. He suggested staff and the Planning and Zoning Board work out a compromise to make it work. Councilmember Estrada expressed concern about the traffic in this highly dense area. Councilmember Ohlson stated he needed an overall picture of the cummulative effect of development in the area. Mayor Rutstein stated she felt the issue should go back to the Planning and Zoning Board and the neighborhood criteria should be taken into consideration. -357- July 16, 1985 Councilmember Stoner expressed concern Council was sending a message to forget the LUGS as it pertains to infill development. ' Councilmember Clarke made a motion, seconded by Councilmember Estrada, to send the matter back to the Planning and Zoning Board for further review and consideration. Yeas: Councilmembers Clarke, Estrada, Ohlson, Rutstein, and Stoner. Nays: Councilmember Knezovich. THE MOTION CARRIED. Ordinance Amending the Code of the City of Fort Collins Relating to the Prohibition of Unreasonable Noise, Adopted on First Readinq Following is the staff's memorandum on this item: "Executive Summa Due to the problems involved with enforcing the City's noise ordinance, staff recommends repealing Section 78-1 of the Code of the City of Fort Collins and readopting a new Section 78-1 which prohibits unreasonable noise. Background Chapter 78 of the Code of the City of Fort Collins was adopted in 1981. , The chapter contains a general prohibition against any noise disturbance, excessive or unusually loud noise or a noise which is unreasonable and objectionable because it is impulsive, continuous, rhythmic, periodic or shrill within the limits of the City of Fort Collins in Section 78-1. The remainder of the chapter sets out maximum permissible noise levels (set out in decibels) depending upon land uses and exceptions to the same, provides for the manner of classification and measurement of noise, includes a variance procedure, procedure for designation of quiet zones, maximum sound levels for motor vehicles, violations and penalties and definitions. After reviewing recent case law and the approaches taken by other municipalities in handling the problem of unreasonable noise, it is evident that Section 78-1 may be too broad in its scope and, therefore, unreasonable and unenforceable. Consequently, it is staff's recommendation that Section 78-1 be repealed and the problem addressed by the readoption of a new Section 78-1 which prohibits unreasonable noise. The determination of whether a noise is unreasonable would be made in light of the circumstances. such as time of day and location. The new section specifically states -that members of the Police Department are empowered to make a prima facie determination as to whether a noise is unreasonable. Thus, a citizen's complaint would not be required in order to pursue such a violation (as it is with a "disturbing the peace" charge). The Police Department might still rely on complaints in certain instances; however. Another advantage of the new section is that it could be enforced in ' -358- July 16, 1985 appropriate situations without the necessity of an expert witness, such as a trained sound -measuring equipment operator which is required in connection with the sections containing maximum decibel level requirements. As to the wording of the new section, the Colorado Supreme Court has considered and upheld the constitutionality of a state statute proscribing "unreasonable noise"." Councilmember Knezovich made a motion, seconded by Councilmember Olilson, to adopt Ordinance No. 70, 1985 on First Reading. Bruce Lockhart, 2500 East Harmony Road, questioned whether the noise at a recent Lincoln Center event was above acceptable levels and expressed concern about City employees working at the concert. The vote on Councilmember Knezovich's motion to adopt Ordinance No. 70, 1985 on First Reading was as follows: Yeas: Counci]members Clarke, Estrada, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Ordinance Amending the City's Massage Parlor Code, Adopted as Amended on First Reading Following is the staff's memorandum on this item: 1 "Executive Summary The present Massage Parlor Code of the City contains provisions making enforcement difficult.. It is recommended that the City Code be changed to conform to the present State Massage Parlor Code and to establish a licensing fee. Background The Massage Parlor Code of the City, was adopted in 1981. The City has never licensed a massage parlor, perhaps in part because legitimate massage therapists object to the provisions of the Code as being demeaning to their profession. Probably the most offensive provision in the Code is the requirement that each massage therapist be examined by medical doctors quarterly to determine whether or not they are free of any contagious or communicable disease. For whatever reason, it has been difficult for the City to enforce the Massage Parlor Code because of resistance from the regulated community. It would seem appropriate that' the City Council examine any law which appears to be honored primarily in the breach thereof. Upon examination of this law, it appears to this office, and to the Police Department that it ought to be, in large part, repealed. The Liquor Licensing Authority has inquired as to whether or not the present law ought to be enforced against health clubs. To alleviate the confusion, it is recommended that the City -359- July 16, 1985 Massage Parlor Code be repealed with the exception of those sections which are necessary in order to effectuate the requirements of the State Massage Parlor Code; and to include educational requirements to the extent that the Council determines such requirements necessary in the interest of the health, safety and welfare of the citizens." Assistant City Attorney Paul Eckman reviewed the reasons for the ordinance change and noted the word "licensed" should be changed to "certified" in Section 3, page 3 of the ordinance. Councilmember Stoner made a motion, seconded by Councilmember Clarke, to adopt Ordinance No. 71, 1985 on First Reading amending Section 3 on page 3 to read "certified" instead of "licensed". Michelle Yokum, 327 Garfield, spoke in favor of the changes. Councilmember Knezovich made a motion to delete Section 5 relating to educational requirements. THE MOTION DIED FOR LACK OF A SECOND. The vote on Councilmembers Stoner's motion to adopt Ordinance No. 71, 1985 on First Reading was as follows: Yeas: Councilmembers Clarke, Estrada, Ohlson, Rutstein, and Stoner. Nays: Councilmember Knezovich. THE MOTION CARRIED. Ordinance Authorizing the Issuance and Sale of Industrial Development Revenue Bonds, Series 1985, in the Amount of $460,000 for the Engineering Professionals, Inc. Project, Adopted on First Reading Following is the staff's memorandum on this item: "Executive Summary This Ordinance authorizes the issuance and sale of Industrial Development Revenue Bonds, Series 1985, in the amount of $460,000. Background On April 16, 1985, Council adopted Resolution 85-67, setting forth the intention of the City of Fort Collins to issue Industrial Development Revenue Bonds for the Engineering Professionals, Inc. Project. Bond proceeds are to be used for the development of land and the construction and equipping of a two story office building with 5,800 square feet in the first phase, for which IDRB financing is sought. The building will be constructed by the applicant, John P. Cavano, and leased with an option to buy, by the Engineering Professional, Inc., a local engineering firm. The building will be located in Lot 3 of the Timberline Plaza POD development. I -360- July 16, 1985 ' The amount of this issue comes from our initial allocation of the statewide Industrial Development Revenue Bond issuing authority." Finance Director Jim Harmon read the dollar amounts to be inserted on pages 4 and 5 of the ordinance. Councilmember Estrada made a motion, seconded by Councilmember Clarke, to adopt Ordinance No. 80, 1985 on First Reading including the dollar amounts as read by Finance Director Harmon. Yeas: Councilmembers Clarke, Estrada, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Resolution Authorizing the City Manager to Execute a Second Modification Agreement to the Master Agreement with Anheuser-Busch, Inc., Tabled to Auqust 6 Following is the staff's memorandum on this item: "Executive Summar The proposed Second Modification Agreement to the Master Agreement with Anheuser-Busch, Inc. provides for changes in the Agreement in regard to the ' construction of wastewater treatment facilities to be constructed to treat the Anheuser-Busch wastewater. Portions of the facilities would be available for use generally by the Waste Water Utility. Additionally, the Modification Agreement provides for a clarification to the Master Agreement concerning supplemental user fee credits for sales and use taxes which have been ear -marked for other specific projects. The Agreement also provides for supplemental user fee credits on the investment earnings obtained by the City on monies borrowed at Anheuser-Busch's cost for construction of public facilities to serve the Anheuser-Busch project. Background I. As discussed in previous meetings and at the May 14th City Council Worksession, the staff is recommending that the A-B wastewater treatment design concept be modified. The original design concept included in the Master Agreement involves utilizing the North Complex at WWTP #2, whereas the new concept which the staff is recommending involves utilizing the South Complex at WWTP #2. The proposed modifications to the Master Agreement consist of deleting all references to the original (North Complex) concept and including appropriate discussion and description' of the South complex concept. The following is a summary of both concepts: -361- July 16, 1985 Original Concept (North Complex) The original concept involves treating 1.4 to 2.8 million gallons per ' day (mgd) of brewery wastes at A-B's pretreatment facility. The pretreated wastes would then be discharged to the City's WWTP#2- North Complex. Treatment of the pretreated wastes at the City's facility will require the construction of facilities for: 1. Sludge thickening. 2. Sludge digestion. 3. Sludge dewatering. 4. Sludge disposal (land application). 5. Additional clarifier capacity (may be required). In addition to these improvements at WWTP #2, the installation of covers on the trickling filter and clarifiers at WWTP#1 may also be required. New Concept (South Complex) The new concept involves treating 1.2 to 1.8 million gallons per day (myd) of brewery wastes at the City's WWTP #2 - South Complex and treating the remainder of the brewery wastes at AB's proposed land application facility. Treatment of the 1.2 to 1.8 mgd of brewery wastes at the City's facility will require the following: 1. Upgrading the aeration system and increasing the depth of the I primary clarifier, secondary clarifier, and the aeration basin at the South Complex. 2. Construction of sludge thickening, digestion, and dewatering facilities. 3. Construction of sludge composting facilities. The estimated cost of these facilities is $15 to $16 million which will be paid for by A-B via supplemental user fees and base formula calculations. The City intends to oversize, on an incremental basis, the sludge thickening, digestion, and dewatering facilities for future City needs. The City's cost to oversize these facilities is estimated at $1.66 million. The staff believes there is sufficient benefit to the City to pursue the new concept and the corresponding modifications to the Master Agreement. These benefits consist of: (1) approximately $2.7 million worth of treatment capacity; (2) approximately $3.7 in savings by oversizing, on an incremental cost basis, the sludge thickening, digestion, and dewatering facilities; (3) greater operation flexibility; and (4) a commitment from A-B to build composting facilities. -362- July 16, 1985 The Fort Collins Water Board has reviewed and recommended approval of the ' new concept. II. The oriyinal Master Agreement provided that Anheuser-Busch would pay a Supplemental User Fee for the debt service incurred by the City for certain public improvements to the Anheuser-Busch plant site. In the calculation of the Supplemental User Fee Anheuser-Busch received a credit for "100% of the total of all City use, sales and property taxes which shall have been received by the City during the period of construction ... and to have ended one year after the first production from the plant is shipped for commercial sale." Since the execution of the Master Agreement there have been two sales and use tax increases wherein the revenues were specifically pledged to certain public improvements. It is readily apparent that the Anheuser-Busch sales and use taxes specifically pledged to other public improvements cannot be used for public improvements at the Anheuser-Busch plant site. As a separate matter, Anheuser-Busch is to pay for the City's debt service to provide the public improvements to the plant site. However, Anheuser-Busch does not receive a credit from the investment earnings on the monies received by the City from A-B, identified for later payment of the debt for A-B improvements. A solution has been negotiated which provides equity to the City and to Anheuser-Busch as follows: 1. Anheuser-Busch will not receive any credit for sales and use taxes which become effective after December 31, 1982, wherein the proceeds of such sales and use taxes are allocated and legally restricted to a ' specific purpose pursuant to an ordinance establishing such taxes. 2. Anheuser-Busch will receive a credit toward th,2 supplemental user fee for all interest earned on monies received by the City from A-B, identified for later repayment of the debt for A-B public improvements. Currently the restricted sales and use tax revenues and the investment earnings are about equal. The City gains in terms of the sales and use taxes and does not lose on the investment earnings since we would not have had the amounts to invest without the capitalized interest being included in the bond issues. Both the City staff and the Anheuser-Busch representatives agree with the proposed modifications to the Master Agreement. These modifications reflect the current expectations in regard to the Anheuser-Busch project. The changes in the agreement concerning Wastewater Service provide opportunities to the City which were not available in the original design for wastewater treatment facilities. The changes in the Master Agreement to the section regarding Finance represent clarifications"to that portion of the agreement, providing further definition where needed to deal with matters which were not present at the time of the execution of the agreement, that of increases in sales tax for specific project and investment earnings on monies received for later bond payments. -363- July 16, 1985 Upon approval of the proposed Resolution, the City Manager would be , authorized to execute the Modification Agreement. The most immediate result would be the redesign of the wastewater treatment facilities." Councilmember Clarke asked the record to show he did not participate in the discussion or vote on this item. Councilmember Knezovich made a motion, seconded by Councilmember Stoner, to adopt Resolution 85-118. City Manager Arnold noted staff was suggesting this item be tabled to August 6 based on discussions with Council and the fact the documents for the modification agreement did not arrive in time to be included in the agenda. Councilmember Knezovich made a motion, seconded by Councilmember Stoner, to table Resolution 85-118 to August 6. Yeas: Councilmembers Estrada, Knezovich, Uhl son, Rutstein, and Stoner. Nays: None. (Councilmember Clarke withdrawn) THE MOTION CARRIED. City Manager's Report City Manager Arnold called Council's attention to the dedication of Lee I Martinez Park scheduled for Saturday morning. Councilmembers' Reports Councilmember Clarke noted he would be travelling to Colorado Springs to speak in support of a proposed ordinance that would prohibit smoking in public places except in designated areas. Mayor Rutstein reported she had received a $250 donation from the sponsors of the recently held Human Race. Other Business Councilmember Estrada noted he was interested in reviving the Poudre R-1 liaison position that was abolished earlier this year. Councilmember Knezovich made a motion, seconded by Councilmember Clarke to appoint Councilmember Estrada to serve as Council liaison with the Poudre R-1 School District. Yeas: Councilmembers Clarke, Estrada, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. -364- July 16, 1985 Councilmember Ohlson made a motion, seconded by Councilmember Estrada, to r1 adjourn into Executive Session to discuss personnel matters. Yeas: Councilmembers Estrada, Knezovich, Ohlson, Rutstein, and Stoner. Nays: Councilmember Clarke. THE MOTION CARRIED. Adjournment At the conclusion of the Executive Session, Councilmember Ohlson made a motion, seconded by Councilmember Estrada, to adjourn the meeting. Yeas: Councilmembers Clarke, Estrada, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. The meeting adjourned at 11:00 p.m. Assistant ay or ATTEST: t ty C c -365-