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HomeMy WebLinkAboutMINUTES-06/02/1987-RegularJune 2, 1987 1 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, June 2, 1987, 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: Estrada, Horak, Kirkpatrick, Mabry, Maxey, Stoner, and Winokur. Staff Members Present: Burkett, Huisjen, Krajicek Agenda Review: City Manager City Manager Burkett stated the applicants have requested Council table Item #5, Second Reading of Ordinance No. 81, 1987, Relating to the Creation and Organization of Special Improvement District No. 90, until July 7. He noted a revised Resolution 87-78 Authorizing the Filing and Execution of an Amended UMTA Section 9 Operating Assistance, Capital and Planning Grant for Transfort had been provided to Council and that the changes were in format only to conform with federal requirements. He stated a revised Resolution ' had been prepared for Item #20, Items Relating to the City's Fiscal Year 1987-88 Community Development Block Grant Program, which deletes the Veterans Memorial. Councilmember Mabry requested Item #16, Resolution 87-79 Indemnifying City Officials and Employees Against Certain Damages, 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 Items #19 and #29, 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 by;staff or Council. These items will be discussed immediately following the Consent Calendar. Consider aooroval of the minutes of the regular meetings of May 5 and May 19. -1- June 2, 1987 5. Q The Center for Advanced Technology Special Improvement District No. 90 is located on Shields Street from Landmark Apartments at Prospect Road to Raintree Shopping Center at Drake Road. The district is proposing to complete the widening of Shields Street to full arterial standards between Prospect Road and Drake Road and to improve the internal collector streets of the Center for Advanced Technology (C.A.T.). The district is composed of four properties, Everitt Enterprises, CSURF, Windtrail PUD, and Sam Aranci. A portion of the proposed improvements to Shields Street is the frontage of Rolland Moore Park, which will participate in the costs. Spring Creek Professional Park P.U.D. is now under construction and will widen Shields Street along its frontage, just north of Rolland Moore Park. The widening of Shields Street will provide a much needed capacity to this important arterial corridor. This Ordinance was adopted 6-0 on First Reading on May 19. Since that time the City funding sources for the Rolland Moore Park portion of the improvements have been revised. This Ordinance, which was adopted 6-0 on First Reading on May 19, appropriates unanticipated revenue generated from vision insurance and universal life insurance premiums. Items Relating to the Upgrade of the City's Office Automation System Second Reading of Ordinance No. 83, 1987, Appropriating Prior Year Equipment Replacement Reserves for the Procurement of Computer Hardware and Software to Upgrade the City's Office Automation System. Second Reading of Ordinance No. 84, 1987, Authorizing an Agreement for the Lease/Purchase of Computer Hardware and Software. In 1984, the City purchased a Hewlett-Packard 3000/48 computer along with several software products for Phase I of the City's centralized office automation program. The initial project provided office automation for 250 users on 60 workstations. The Phase II plan for expansion, consisting of an upgrade of the HP3000/48 to an HP3000/58, was implemented in January, 1986. At that time it was evident that an upgrade would need to be augmented later to address system response time and to facilitate the addition of other users wishing to participate in the program. These Ordinances, which were adopted 6-0 on First Reading on May 19, provide funding for this augmentation. -2- 1 June 2, 1987 ' 8. Ordinances Aoorooriating Prior Year Reserves in the General Fund for the Cruising Enforcement Program and the Reolacement of Computer Terminals in the Public Library. A. Second Reading of Ordinance No. 85, 1987, Appropriating Prior Year Reserves in the General Fund for the Cruising Enforcement Program. This Ordinance, which was adopted 6-0 on First Reading on May 19, appropriates $23,100 for the payment of overtime expenses in the Police Services patrol budget. Additional funding will allow the assignment of four additional officers, every Friday and Saturday night through September, in the downtown area to concentrate on the cruising situation and associated problems. A number of options were presented to Council at the April 28 worksession. , This approach was agreed to be the most reasonable approach to address the immediate nighttime problems in the downtown district. B. Second Reading of Ordinance No. 86, 1987, Appropriating Prior Year Reserves in the General Fund for the Replacement of Computer Terminals in the Public Library. This Ordinance, which was adopted 6-0 on First Reading on May 19, appropriates $36,400 for the replacement of computer terminals in the Public Library. These terminals, which have a critical impact on public service levels, are worn out and replacement parts and keyboards can no longer be found. 9. Items Relating to the Vacation of an Easement in Rangeview P.U.O. A. Hearing and First Reading of Ordinance No. 88, 1987, Vacating an Easement Platted with the Rangeview P.U.D. B. Motion Accepting and Dedication of Replacement Easement. The Developer of Rangeview P.U.D. is requesting the vacation of a utility easement in order to revise the location and the shape of proposed buildings. This relocation of the easement requires relocating the existing utilities in the easement, which shall be the responsibility of the Developer to complete to the satisfaction of proper Utility Agencies, and to bear all costs associated with the relocation. All Utilities have been contacted and have no problems with the vacation and dedication. 10. The Developer of Horsetooth Commons P.U.D.. has received the Planning ' and Zoning Board's approval to develop a parcel of land on the 3- June 2, 1987 northwest corner of Shields Street and Horsetooth Road. The project ' was approved and replatted at the February 23rd, 1987 Planning and Zoning Board meeting. Three pieces of street right-of-way which were dedicated prior to the Horsetooth Commons replat will not be needed. The developer is requesting the vacation of these three pieces of right-of-way. All necessary rights -of -way, and easements for this new development have been dedicated with the replat. All utilities have been contacted and have no problems with the vacations. 11. Items Relating to the Hoffman Mill Annexation and Zoning. 12. A. Hearing and First Reading of Ordinance No. 90, 1987, Annexing Approximately 5.95 Acres, Known as the Hoffman Mill Annexation. B. Hearing and First Reading of Ordinance No. 91, 1987, Zoning Approximately 5.95 Acres, Known as the Hoffman Mill Annexation, into the B-P, Planned Business, Zoning District. This is a request to annex and zone approximately 5.95 acres, located north of Riverside Avenue and east of Lemay Avenue, which is presently an enclave of county area completely surrounded by incorporated area of the City of Fort Collins. The requested zoning is the B-P, Planned Business, Zoning District, with a planned unit development condition. OWNERS: Albert Craft Wilber Dinkel ' 1216 Hoffman Mill Road 1208 Hoffman Mill Road Fort Collins, CO Fort Collins, CO Charles Schneider Adam Schneider 1300 E. Laurel Street 1200 Hoffman Mill Road Fort Collins, CO Fort Collins, CO James Hildred 1308 E. Laurel Street Fort Collins, CO This ordinance will reduce the cash rate charged developers for satisfaction of raw water requirements from $1000 to $800 per acre foot. It has been the City's practice for many years to set the cash rate in -lieu -of water rights at the approximate price of CBT water. Lowering the rate to be more consistent with current prices will provide a more equitable option to those developers who do not have water rights available to satisfy the City's requirements. The Water Board recommended at their May 15, 1987 Water Board meeting to set the rate at $800 per acre foot. , -4- June 2, 1987 ' 13. Resolution 87-75 Making Appointments to the Cable TV Board City Council has combined the Cable Advisory Board and the Public Access Advisory Board to form the new Cable TV Board. The new board will consist of nine members plus one alternate. Eight of the existing members remain on the combined board. In keeping with Council's policy, the recommendations for the appointments were announced at the May 19 meeting. The appointments were tabled to June 2 to allow time for public input. 14. Resolution 87-77 Authnri7inn the Filinn and Fvorii4inn of 4he r;+.. ..c On May 23, 1986, the US Department of Transportation issued regulations concerning the transportation of the disabled. These regulations become effective June 23, 1987. Early in 1987, the City completed the study of handicapped transportation. This document was used as the primary data source for the Handicapped Accessibility Plan. In April 1987, staff prepared the City's Handicapped Accessibility Plan which was published and distributed to the handicapped community. The Plan was presented to both the public and the City's Commission on ' Disability in meetings during the month of May. The City's Handicapped Accessibility Plan meets fully the requirements set forth by the US Department of Transportation. It is expected that through implementation of this plan the City of Fort Collins will meet the requirements for handicapped transportation for bus systems receiving Federal funds. The plan is projected to be completely implemented by January 1, 1989. 15. Transfort wants to amend its grant from Section 9 of the Urban Mass Transportation Act of 1964, as amended, to the amount of $438,067. The original grant was previously awarded in the amount of $412,747. The amendment provides operating assistance for SAINT and the capital purchase of transit computer software and one micro -computer. There are no additional or unbudgeted costs to the City. 16. Resolution 87-79 TndBmnifvinn city nffirial< nnii Gmnlnvnec n + This Resolution employees from ' Resolution would would indemnify present and former City officials and civil liability under certain circumstances. The also provide for the payment of defense costs and -5- June 2, 1987 17. attorney's fees incurred in the employee's defense of certain civil I claims, as well as any claims of criminal misconduct which result in dismissal or acquittal. A. Resolution 87-80 Reappointing John Tobin as Municipal Judge. B. Resolution 87-81 Reappointing Donald Weinland as Temporary Judge. The City Charter provides for the appointment of the Municipal Judge for a term of two years and a Temporary Judge to serve in the Municipal Judge's absence. These Resolutions will reappoint John Tobin as Municipal Judge and Donald Weinland as Temporary Judge. 18. Routine Easements. a. Temporary Construction Easement from Cooper Motors, Inc. for the construction of the Fairbrooke Storm Drainage Outfall along Taft Hill and Longworth Roads. Consideration: $1,899 for 1.85 acre. b. Right-of-way from Cooper Motors, Inc. for Fairbrooke/Prospect SID #89, needed to provide a safe intersection geometry for eastbound traffic. The location of the right-of-way is at the southeast corner of Taft Hill and Prospect. Consideration: $3,978 for 5,924 sq. ft. ' c. Powerline easement from Clyde Canino III needed to underground existing overhead electric system lines, located at 613 South College Avenue. Consideration: $2,000 ($5/sq. ft.). Ordinances on Second Reading were read by title by Wanda Krajicek, City Clerk. Item #5. Item #6. Item #7. A. 1.1 0 June 2, 1987 I Item #8. A. Ordinances on First Reading were read by title by Wanda Krajicek, City Clerk. Item #9. A. Item #10. Item #11. A. I Item #12. 91 Per Acre Foot. Councilmember Mabry made a motion, seconded by Councilmember Stoner, to adopt and approve all items not removed from the Consent Calendar. Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Mabry, Maxey, Stoner, and Winokur. Nays: None. THE MOTION CARRIED. Resolution 87-79 Indemnifying City Officials and Employees Against Certain Damages, Adopted Following is staff's memorandum on this item: "Executive Summary This Resolution would indemnify present and. former. .City officials and employees from civil liability under certain circumstances. The Resolution would also provide for the payment of defense costs and attorney's fees incurred in the employee's defense of certain civil claims, as well as any ' claims of criminal misconduct which result in dismissal or acquittal. -7- June 2, 1987 Background I The liability concerns of City officials and employees have historically been addressed by the provisions of State law, the principles of common law (court decisions), and the coverage of our insurance policies. Over recent years, the City has experienced an increase in lawsuits and a reduction in insurance coverage. Changes have also occurred in the courts and in the legislature. As a result of such activity, the protections afforded municipal officials and employees against individual liability have been eroded. The problems pertain to both state tort actions (e.g. negligence claims) and federal actions (e.g. civil rights allegations). The City's present liability insurance policy has coverage limits of $400,000. This figure coincides with the limits established by the State Legislature in the Governmental Immunity Act, which applies to state tort claims. (Claimants cannot recover damages in excess of that amount for any single occurrence in such an action.) In Federal claims, there is no statutory limit on the amount which may be recovered. Thus, a judgment could be obtained against an employee beyond the limits of insurance. Additionally, in federal actions, there are instances when an individual official or employee may lack immunity and have liability although the City itself does not. In state actions, the City's obligation to pay defense costs and judgments under state law does not extend to any situation in ' which a judge or jury finds that an employee has acted in a willful and wanton fashion. For these reasons, staff is recommending that Council extend additional protection against liability to City officials and employees by way of Resolution. The indemnification would apply to any "officer, employee, servant or authorized volunteer (of the City), whether or not compensated, elected or appointed, but... not... an independent contractor or any person who is sentenced to participate in any type of useful public service." The idea of such a Resolution has also been recommended by the Colorado Municipal League. In substance, the Resolution would obligate the City to indemnify present and past City officials and employees who are sued for acts or omissions occurring during the performance of their duties and within the scope of their employment. Attorney's fees and costs incurred in the defense of civil actions would also be paid by the City. The major exception to this indemnification would be for conduct which was deemed by the City to have been committed in a willful and wanton fashion, as defined in the Resolution. In the case of allegations of criminal misconduct which arise from the performance of an employee's 'duties of employment, the City would reimburse the employee's attorneys' fees if the allegations were found to be without merit and the case against the employee was dismissed or a trial resulted in acquittal." 91 June 2, 1987 ' Councilmember Kirkpatrick made a motion, seconded by Councilmember Stoner, to adopt Resolution 87-79. Councilmember Mabry stated he -would vote against the Resolution because of its retroactive application. The vote on Councilmember Kirkpatrick's motion to adopt Resolution 87-79 was as follows: Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Maxey, Stoner, and Winokur. Nays: Councilmember Mabry. THE MOTION CARRIED. Items Relating to the City's Fiscal Year 1987-88 Community Development Block Grant Program Following is staff's memorandum on this item: "Financial Impact The Community Development Block Grant Program provides federal funds from the Department of Housing and Urban Development to the City of Fort Collins which can be allocated to housing and community development related programs and projects thereby reducing the demand on the City's General Fund Budget to address such needs. ' Executive Summary A. Public Hearing and Resolution 87-82 Adopting Fiscal Year 1987-88 Community Development Block Grant Programs and Projects. B. Hearing and First Reading of Ordinance No. 94, 1987, Appropriating Unanticipated Revenue and Authorizing the Transfer of Appropriations Between Projects in the Community Development Block Grant Fund. The resolution will establish the individual programs and projects to be funded with Community Development Block Grant funds from the United States Department of Housing and Urban Development for the FY 1987-88 Program year which begins on October 1, 1987. The total amount of Community Development Block Grant funds available to the City of Fort Collins is $834,614. The Community Development Block Grant Citizens Steering Committee has evaluated all applications and presented a recommendation to the City Council as to which programs and projects should receive funding for the next program year. The ordinance appropriates $685,000 ,from the•City's FY 1986-87 Entitlement Grant, $99,614 from Reprogrammed CDBG funds, and $50,000 of anticipated CDBG Program Income. m June 2, 1987 Background ' The CDBG Program is an ongoing grant administration program funded by the Department of Housing and Urban Development. The City of Fort Collins has received CDBG Program funds since 1975. In 1975 and FY 1976-77 the City received HUD discretionary grants. Since FY 1977-78, the City has been an Entitlement Recipient of CDBG funds, meaning the City is guaranteed a certain level of funding each year. The level of funding is dependent on the total amount of funds allocated to the program by Congress and on a formula developed by HUD, which includes data on total population, minority percentage of population, income levels, housing stock conditions, etc. Programs and projects funded with Community Development Block Grants have to address at least one of the following three broad National Objectives: 1) be a benefit to low- and moderate -income persons, 2) elimination or prevention of slum and blight conditions, or 3) meet urgent needs. CDBG grants can fund a wide range of activities including, acquiring deteriorated and/or inappropriately developed real property (including property for the purpose of building new housing) and acquiring, constructing, rehabilitating or installing publicly owned facilities and improvements. CDBG funds can also be used for restoration of historic sites, beautification of urban land, conservation of open spaces and preservation of natural resources and scenic areas. Housing rehabilitation can be funded if it benefits low- and moderate -income people. Economic development activities are eligible expenditures if they stimulate private investment or community revitalization and expand economic 1 opportunities for low- and moderate -income people and the handicapped. Certain activities are ineligible, under most circumstances, for CDBG funds including, purchase of equipment, operating and maintenance expenses, including repair expenses and salaries, general government expenses, political activities, and new housing construction. Since its inception in 1975, the City's CDBG Program has focused on programs of housing rehabilitation and neighborhood revitalization. Three neighborhood strategy areas have been identified as in need of special assistance and attention. These neighborhoods are the Holy Family area, B.A.V.A. (Buckingham, Alta Vista, and Andersonville), and Laurel School neighborhoods. The downtown area is included in the strategy neighborhoods. Available Funds: The City's Entitlement Grant' for FY 1987-88 is $685,000. The Entitlement Grant will be combined with $99,614 of reprogrammed funds from CDBG Program Income and projects not completed during the FY 1986-87 program year, and $50,000 of anticipated Program Income from the period May 1, 1987, to September 30, 1988, (HUD requires the City to estimate the total amount of anticipated Program Income which will be received during the next 18 months), to make a total of $834,614 available for programs and -projects , during the next CDBG Program year. -10- June 2, 1987 Selection Process: The selection process for the City's FY 1987-88 CDBG Program began on February 12, 1987, when the CDBG Citizens Steering Committee held a public hearing to obtain citizen input on community development and housing needs. The CDBG Program office placed legal advertisements in local newspapers starting on March 1, 1987, to solicit requests for CDBG funded programs and projects for FY 1987-88. At the close of the application deadline on March 27, 1987, the City received 33 requests for a total of approximately $2.1 million. Copies of all applications were distributed to the CDBG Citizens Steering Committee at their regular monthly meeting on Thursday April 9, 1987. Copies of all applications were forwarded to the City Council through the City Manager's office on April 20, 1987. On Wednesday May 13, and Thursday May 14, 1987, the Steering Committee met to hear verbal presentations from each applicant and to ask clarification questions. The Committee met on Wednesday May 20, 1987, for the purpose of preparing a recommendation to the City Council as to which programs and projects should be funded for the FY 1987-88 program year. The Committee's recommendations were presented and discussed with the City Council in a joint work session held on Tuesday May 26, 1987. The attached Resolution will formally adopt the City's FY 1987-88 CDBG Program. Funding Recommendations: HUD CDBG regulations limit the amount of available funds which can be allocated to various generic categories. Funds for Planning and Administrative purposes are limited to 20Y of the Entitlement Grant, and funds for Public Services are limited to 15Y of the Entitlement Grant. The Steering Committee, thus, not only had to decide which applicants presented programs and projects which best fit into the City's CDBG Program, but also had to insure funding allocations were kept within HUD regulations. Listed below is a summary of each applicant's initial request for funding (some applications were modified at the time of verbal presentations to the Committee, see below) and the Steering Committee's funding recommendations: REQUEST FUNDING APPLICANT PROGRAM/PROJECT -------------------------------------------------------------------------- $116,100 116,100 City of Fort Collins 15,389 - CSU Darrel Fontane 20,510 20,510 Neighbor -to -Neighbor 112,000 (1) 60,000 Neighbor -to -Neighbor 112,126 (1) - Neighbor -to -Neighbor -11- CDBG Administration Equitable Water Pricing Policy Housing Counseling Acq. and Redevelopment Housing Rehab./Arch. Barrier Removal & Emergency Repair June 2, 1987 100,000 50,000 City of Fort Collins Acquisition of Land ' for an Emergency Shelter 79,000, (2) 79,000 Local Development Co. Housing & Small Business Bldg. Preservation 403,399 185,654 Housing Authority Acquisition of Existing Housing 127,025 50,000 William & Gregory Starke No. Hotel Rehab. 21,500 - Daniel Ashton Historic Preservation and Rehabilitation 178,457 (3) 50,000 DMA Plaza Inc. Exterior Insulation 25,600 25,600 Volunteer's Clearing Hse. Four Phase Renovation 50,000 - City of Fort Collins Gateway Design Plan Implementation 30,000 30,000 City of Fort Collins Downtown Landscaping 89,850 - City of Fort Collins Elm Street Improvement 250,000 (4) - City of Fort Collins LaPorte/College Ave. Intersection Reconstruction 20,000 15,000 Poudre River Trust Gustav Swanson Area 20,000 - City of Fort Collins Handicapped Ramps 19,860 - Care -A -Van Local Grant Match 20,000 20,000 United Day Care Sliding Scale 24,906 - Sunshine School Infant Toddler Care 17,640 17,640 Sunshine School Sliding Scale 12,404 (5) 10,441 Women's Center Child Care Referral 34,096 10,000 Disabled Resource -Services Employment Assist. & ' Disabled Equipment 18,000 9,000 Project Self -Sufficiency Program & Child Care Assistance 23,852 20,000 Larimer County Food Dist. Center 1,500 - Interfaith Council Services for Seniors 7,050 2,000 Concerned Relatives & Advocacy Outreach Friends/Nursing Home Res. 12,230 - Let's Ride Expansion of Horseback Riding for Handicapped 5,850 5,850 SAINT Transition Project 23,179 - CHOICE Shared Housing 26,500 7,819 Catholic Comm. Services No. Hostel/Hope Job Bank 50,000 - Larimer Co. Voc-Tech Comp. Competency Prog. 18,000 - Alter. Youth Center Salary 50,000 Contingency (Frozen Appropriation) ------------------------------------------------------------------------------- $2,086,023 $785,000 Total NOTES: (1) These Neighbor -to -Neighbor programs were combined into a single $224,126 request in order to make the proposed administrative costs fall within program percentage guidelines. (2) The LDC was allocated $33,000 of FY 1986-87 funds for renovation of the ' LaCourt Hotel. At the presentation, the LDC reduced this request to -12- June 2, 1987 ' $46,00 and asked that the $33,000 be reprogrammed into the project. (3) The DMA Plaza, Inc., was allocated $9,114 of FY 1986-87 funds for energy conservation work. At the presentation the DMA asked that these funds be allocated to this project. (4) At the presentation, this proposal was changed to a request of $47,000 to be used to build a new veteran's memorial in Edora Park. (5) This proposal was reduced by the applicant to a request of $10,441. With approximately $2.1 million in total requests and only $834,614 available, obviously not all applications could be funded. Also, due to HUD funding limitations, some applicants received less funds than requested in order to keep the generic category within program maximums. No applicant received more funds than requested. Contingency Funds are based on $50,000 of anticipated Program Income expected to be received by the City during the next 18 months. These funds were not allocated by the Committee to any specific project(s) because of possible uncertainty of their collection. At the May 26, 1987 Council Work Session, members of the Citizens Steering Committee had the opportunity to attend the City Council's May 26, 1987 work session to explain their recommendations and will attend the June 2, 1987, regular City Council meeting to answer any questions about the funding recommendations. At the work session, arguments were made in favor of funding the construction of a new Veteran's Memorial in Edora Park. The attached resolution indicates $10,000 funding for the project and reduces the funding level of the Contingency fund from $50,000 to $40,000. The following offers explanation of the Steering Committee's decisions. CDBG Administration: Funds to administer the CDBG Program have been taken directly from the grant since the program's inception in 1975. These funds cover administrative and personnel costs and include the following: Planning Director (.1 FTE), Chief Planner (.4 FTE), Community Development Specialist (1.0 FTE) and a Secretary II (.85 FTE). The administrative budget represents 13% of the Entitlement Grant. Neighbor -to -Neighbor, Housing Counseling: This is a very important support service to the housing programs undertaken by the applicant and other agencies dealing with housing problems within the community. This program is considered within the Planning and Administration category and when combined with administrative costs computes to 19.9% of the maximum 20% eligible to be allocated into the category. Neighbor -to -Neighbor., Acquisition & Redevelopment, Housing Rehabilitation, Architectural Barrier Removal, Emergency Repair: The Committee allocated only 60,000 to the applicant because the applicant has failed to complete projects funded with FY 1985-86 funds and has yet to start on their proposed In-Fi11 Phase IV Project which was allocated $122,000 for FY ' 1986-87. The Committee feels the $60,000 plus the In-Fi11 Phase IV Project -13- June 2, 1987 will provide the applicant sufficient funds to continue with their housing ' programs until the next program year. City of Fort Collins, Land Acquisition for an Emergency Shelter: The Committee allocated $42,500, which is to be combined with $7,500 of FY 1986-87 funds allocated to Catholic Community Services Northern for emergency shelter repairs, to create a pool of $50,000 to seek a site for the construction of a new emergency shelter. The total project includes the cooperation from the Larimer County Department of Human Development which will request $50,000 in State CDBG funds for a site specific land purchase. If the State CDBG funds become available Larimer County will add 10% from the County's General Fund for the project. City funds will be used as a "down payment" to hold a piece of property until County funds become available. It is anticipated that CCSN would construct a new emergency shelter on the selected site. Local Development Company, Housing & Small Business Preservation: The Committee allocated $46,000, which is to be combined with $33,000 of FY 1986-87 funds, to make a total of $79,000 to complete the project as proposed. The Committee feels the project will help preserve an historic structure in the downtown and promote small business economic development. The applicant also has an excellent track record of being able to turn CDBG funds over a number of times funding numerous projects with essentially the same money. Housing Authority, Land Acquisition: The applicant requested $403,399 or approximately 50Y of the available funds. The Committee allocate $185,654 , to the applicant with the possible addition of $100,000 if two applicants (William Starke and the DMA Plaza, Inc.) fail to comply with funding stipulations described below. The Housing Authority has an excellent track record with the utilization of CDBG funds to increase the availability of affordable rental units to low- and moderate -income persons. The Committee would like to see the Authority's efforts continued but also feels the Authority has other funding sources to help with this project. William Starke, Northern Hotel Rehabilitation: The Committee feels the situation with the Northern Hotel is one of urgent -need demanding immediate attention. The building's unsafe condition poses a threat to redevelopment and economic development efforts within the downtown area. The Committee recommends $50,000 be allocated to the project but stipulates the funds are conditioned upon the applicant's ability to raise sufficient funds by March 1, 1988, to complete the proposed rehabilitation project. The funding allocation to the applicant should also be in the form of a zero interest deferred loan which must be repaid £o the City upon any transfer of ownership of the building., If the applicant fails to meet the March 1, 1988 deadline, the Committee' recommends the $50,000 be allocated to the Housing Authority's Land Acquisition Project described above. DMA Plaza, Inc., Exterior Insulation: The Committee recommends $40,886 be combined with the $9,114 of FY 1986-87 funds, which were allocated to the applicant for energy conservation work, to create a total of $50,000 of CDBG funds for the proposal with the stipulation that the applicant raise ' -14- June 2, 1987 ' sufficient additional funds by March 1, 1988, to complete the project as proposed. The Committee feels the project is a high priority since the DMA Plaza building provides safe, decent, and affordable housing for the elderly in the downtown area. However, the Committee feels the applicant has not sufficiently investigated other potential funding sources and offers the grant as an incentive. If the applicant fails to meet the March 1, 1988, deadline, the Committee recommends the $50,000 be allocated to the Housing Authority's Land Acquisition Project described above. Volunteers Clearinghouse, Four Phase Renovation: The Committee feels this organization has been a backbone within the community for many years and recommends full funding of the proposed renovation work. The building is located in the downtown area and should not be allowed to deteriorate. City of Fort Collins, Downtown Landscaping: The Committee feels this is an economic development related project which can help encourage additional private investment in the downtown area. The Committee recommends full funding of the request and suggests the funds should be used within the 100, 200 and 300 blocks of North College Avenue in an effort to tie the Power Plant Visual Arts Center into the rest of the downtown. Poudre River Trust, Gustav Swanson Nature Area: The Committee feels the redevelopment of this area can increase the appeal and upgrading of the downtown area and help with economic development efforts. The Committee recommends $15,000 be allocated to improving handicapped accessibility within the nature area. United Day Care, Sliding Scale: The provision of quality affordable day care services allows the opportunity for more people, particularly single -parents, to enter the work force. Thus, this proposal is an important component of economic development in the community. The Committee recommends full funding of the proposal. Sunshine School, Sliding Scale: The this proposal for the same reasons Sliding Scale proposal above. Committee supports full funding for as stated for the United Day Care SAINT, Transition Project: The Committee feels SAINT has been a very successful transportation program in the community and recommends CDBG funds should be used during its transition period. Woman's Center, Child Care Referral: The Committee recommends full funding of the applicant's reduced request for funding based on the belief that day care and related services help assist with the economic development of the community. 15% Limitation on Social Services: HUD'CDBG Regulations limit the amount of funds which can be allocated to social services to 15% of the Entitlement Grant. By design the CDBG program is not a social service program nor is it a supplement to revenue sharing. However, the elimination of the Federal Revenue Sharing Program has put greater pressure on the CDBG Program and local funding sources for the provision of social -15- June 2, 1987 services. Many social service agencies receive funds from a variety of ' sources. The Committee feels CDBG funds should be used to assist social services but major funding will have to come from other sources. The following applicants were considered worthy of funding but had their requests reduced in order to stay within the 15% funding limitation: Disabled Resource Services $34,096 to $10,000; Project Self -Sufficiency $18,000 to $9,000; Larimer County Food Distribution $23,852 to $20,000; Concerned Relatives & Friends of Nursing Home Residents, Inc., $7,050 to $2,000; and Catholic Community Services Northern $26,500 to $7,819." Councilmember Winokur stated he was withdrawing from the discussion and vote on this item due to a perceived conflict of interest. Councilmember Stoner made a motion, seconded by Councilmember Mabry, to adopt Resolution 87-82. The following persons spoke on this issue: 1. Nancy Jackson, Director of Disabled Resource Services, spoke of the impact reduced funding will have on their agency. 2. Sister Mary Alice Murphy, Executive Director of Catholic Community Services Northern, asked Council to reconsider the level of funding recommended by the CDBG Steering Committee. 3. Pete McWilliams, representing Concerned Relatives and Friends of Nursing Home Residents, Inc., thanked the CDBG Steering ' Committee for recommending their group receive funding of $2,000, even though they requested $7,050. 4. Marj Walsh, Executive Director of Care -A -Van, spoke of their request for $19,680 which would have provided matching funds for two lift -equipped vehicles. She noted it was not made clear to the Steering Committee that Care -A -Van would be happy to accept any amount of funding. 5. Cindy Bean, representing the Let's Ride program, explained the benefits of the Let's Ride program, noted the Steering Committee had not recommended the program receive any portion of the requested $12,000, and asked Council to consider providing any possible portion of funding. 6. Diane Prince, staff member of the Hospitality Center Hostel, spoke of the services provided by the Hospitality Center Hostel, and related her own personal benefit as a former client. She appealed to Council to provide funding. 7. Nancy McCambridge, Executive Director of CHOICE, spoke of the shared housing services provided by CHOICE and explained the use of past CDBG funding. She requested continued support from the City of Fort Collins in 1988. ' -16- June 2, 1987 ' 8. Bill Starke, co-owner of the Northern Hotel, stated the immediate need in rehabilitating the hotel is a live -water fire extinguishing system. He asked Council to consider allocating more funding for the project should other CDBG grantees decline their grants. Steve Barbier, Executive Director of Neighbor -to -Neighbor, expressed for past CDBG funding and spoke of Neighbor -to -Neighbor's 1988 funding needs. He stated it would be extremely difficult to conduct their programs at a 27% funding level from CDBG. He stated they needed another $50,000 to operate the programs at a modest level. 10. Bruce Lockhart, 2500 East Harmony Road, noted that $30,000 was being allocated to the City of Fort Collins for downtown landscaping. He felt the DDA should be responsible for downtown landscaping and suggested the $30,000 be given to another project. Lou Stitzel, member of the CDBG Steering Committee, answered questions from Council about the Committee's recommendations. Chief Planner Ken Waido responded to questions relating to the administration and allocation of CDBG funds. Councilmember Horak expressed concern that there seems to be a perception ' that CDBG funds should be a continuing source of funding. He stated he did not feel there was much option to move funds around in the public service category because most of the requests were not fully funded. He suggested some of the funding requests, such as the Disabled Resource Services employment assistance, Project Self -Sufficiency, Catholic Community Services Northern hostel/hope job bank, and the Larimer County Voc-Tech comprehensive competency program, might fit under the economic opportunities fund. He noted there would be approximately $50,000 coming in during the federal fiscal year, October 1, 1987 through September 30, 1988. He suggested Council asked the CDBG Steering Committee to reconvene to determine how they would allocate the $7,500 available for public service. He stated although he could see where the landscaping on North College could be beneficial, given the needs for housing acquisition and redevelopment he could not agree with allocating $30,000 for landscaping. He stated he was not convinced that $50,000 should be allocated to the Northern Hotel. Councilmember Stoner agreed with Councilmember Horak that the $30,000 allocated for landscaping should be moved to housing acquisition. He stated that he felt it was appropriate to assist a private individual in rehabilitating an existing building to provide housing units. Councilmember Kirkpatrick commended the Steering Committee for their hard work. She suggested the downtown landscaping project might appeal to one of the many service or volunteer organizations in the community and 1 -17- June 2, 1987 recommended that be explored as a possibility. She favored tabling the allocation to the Northern Hotel pending further research. ' Mayor Estrada agreed with Councilmember Horak's suggestion to move the $30,000 landscaping allocation and the $50,000 Northern Hotel allocation to Neighbor -to -Neighbor's housing acquisition project. He thanked the Steering Committee for making some very difficult decisions. Councilmember Horak made a motion, seconded by Councilmember Kirkpatrick, to delete the $30,000 for the City of Fort Collins downtown landscaping project and allocate $30,000 to the Neighbor -to -Neighbor housing acquisition and redevelopment project, and move the $50,000 allocated to the Northern Hotel into contingency to allow for further review. Councilmember Stoner asked staff how moving the $50,000 into contingency would affect the whole funding process. Chief Planner Ken Waido stated there are advertisement and application requirements that have to be submitted to HUD. He stated any time funds are in limbo, the City has to readvertise and reapply. He stated staff would prefer Council allocate the funding to those projects they are willing to support rather than leave the funding in a limbo situation. Councilmember Maxey stated he would prefer the amendment be split into two parts. Councilmembers Horak and Kirkpatrick agreed to change their motion to include only the move of $30,000 from -downtown landscaping to housing ' acquisition and redevelopment. The vote on Councilmember Horak's motion to amend Resolution 87-82 was as follows: Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Mabry, Maxey, and Stoner. Nays: None. (Councilmember Winokur withdrawn) THE MOTION CARRIED. City Manager Burkett suggested Council approve allocation of $50,000 for the Northern Hotel project with the condition that staff bring back an acceptable project. He stated if an acceptable plan is not developed, the funds would then be available for other projects. The vote on Councilmember Stoner's motion to adopt Resolution 87-82 as amended was as follows: Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Mabry, Maxey, and Stoner. Nays: None. (Councilmember Winokur withdrawn) THE MOTION CARRIED: Councilmember Maxey` made a motion, seconded by Councilmember Stoner, to adopt Ordinance No. 94, 1987 on First Reading. Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Mabry, Maxey, and Stoner. Nays: None. (Councilmember Winokur withdrawn) , a" June 2, 1987 1 THE MOTION CARRIED. Councilmember Horak made a motion, seconded by Councilmember Stoner, to direct the CDBG Steering Committee to review the proposals in the public service category and recommend projects to receive funding from the additional $7,500 public service funds. Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Mabry, Maxey, and Stoner. Nays: None. (Councilmember Winokur withdrawn) THE MOTION CARRIED. A. F, Citizen Participation by John Henry, who is riding his bicycle to money for the Brian Ball Scholarship Fund. was accepted ity to raise Proclamation Naming June 14 as Flag Day was forwarded to the appropriate persons. Lynn Bishop, Poudre Valley Art League, asked the City to help find space for the League. Ruth Hornberger, President of the Poudre Valley Art League, spoke of the League's fruitless efforts to obtain space at the Old Power Plant. Clint Shepherd, school crossing guard, commented on traffic problems at the corner of Prospect and Stover in the Barton School area and the need for more enforcement in the school zone. Ordinance No. 95, 1987, Authorizing the Issuance of City of Fort Collins Downtown Development Authority Tax Increment Revenue Refunding and improvement Bonds. Adopted on First Reading Following is staff's memorandum on this item: "Financial Impact The DDA Tax Increment Bonds Series 1985A are proposed for refunding to take advantage of the current market rates and to effect a minimum savings of $250,000. This savings would reduce the debt service on the bonds which are backed by the Sales and Use Tax Fund. The refunding issue would also include an additional $3.3 million which the DDA would have to provide low-cost funding for the Robinson-Piersal and Opera House Projects and other projects approved by the Council•at a later date. -19- June 2, 1987 Executive Summary , This ordinance would implement the refunding of DDA Tax Increment Bonds originally issued in 1984, and refunded in 1985. It also includes additional bonds in the amount of $3.3 million to be used by the DDA to promote future projects. Bonds will be issued when market conditions are such that a savings of $250,000 will be effected. Background The primary reason for considering the refunding of the 1985 DDA Bonds is to take advantage of lower interest rates, thereby lowering debt service payments. The City is presently budgeting $300,000 in Sales and Use Tax to cover any shortfall of DDA funds necessary to cover debt service on present bonds. By doing the refundings, the use of City Sales & Use Tax would be reduced and delayed. A second reason to refund the 1985 Bonds would be to try to eliminate some of the more restrictive covenants in the requirements imposed by Municipal Bond Investors Assurance Corporation ("MBIA"), the insurers of the bonds. Those covenants included a requirement that the debt service coverage be at least 150 percent of the annual average debt service for two years before additional parity bonds could be issued and before the City's sales tax pledge would be released. Based on current growth assumptions, the City's Sales Tax Pledge would never be discharged. Also, the present DDA bonds contain provisions which do not exactly conform ' to requirements imposed in the City's Sales and Use Tax bond ordinance for parity bonds. Bond Counsel has advised that a refunding would allow correction of this situation. The bond ordinance presented for consideration by the Council includes a new issue of $3.3 million. The primary reason for issuing new bonds along with the refunding is to strengthen the financial position of the DDA. If new money is available to the DDA to promote new projects, those projects, once in place, would capture more in tax increment than create additional debt service and thus improve the DDA's present cash flow situation. This would help to reduce the use of the Sales and Use Tax Fund to reduce the debt service on the bonds. If no suitable additional projects are approved by the Council, there would be an extraordinary call on the bonds and no additional debt would be incurred. Costs of the extraordinary call would be minimal; the underwriter has estimated costs of less than $5,000. A second reason for issuing bonds for new projects: at this time is that the DDA is scheduled to sunset in the year 2006. .Repayment periods of less than 15 years on bond issued for the'DDA would tend to raise debt service schedules higher than desirable. The DDA would be better served to issue any new debt before 1991. Despite the recent rise in interest rates, they still are low compared to the last 7 years. By issuing additional bonds now, the City may "lock -in" more favorable rates. ' -20- June 2, 1987 There are four options available for refunding and issuance of new bonds: 1. Refund the outstanding 1985 Bonds and issue no new money. 2. Refund the 1985 Bonds and issue additional bonds in the amount of $1.5 million for the Robinson-Piersal and Opera House projects. 3. Refund the 1985 Bonds and issue additional bonds in the amount of $3.3 million which would include the Robinson-Piersal and Opera House projects, and provide additional money to be used to induce future projects. 4. Take no action on refunding and issue no new money at this time. Proceeds for new projects could wait for a later refunding or be issued as non -parity (higher interest rates) debt. The DDA Board on May 21, 1987, voted to recommend that the City Council: a. Execute the refunding of existing debt but only at such time that savings equal or exceed $250,000. b. That upon favorable refunding terms, an additional $3.3 million in bonds be issued to provide funds for projects for which the Authority is contractually obligated and for anticipated future projects. ' Ordinance No. 95, 1987 would implement Option #3 and the recommendation of the DDA Board. This ordinance can be amended so that Options #1 or #2 are implemented, as is determined by the Council. The bond underwriters and bond counsel have recommended that an Ordinance be considered at this time so that the City and the DDA are in a position to issue the bonds as soon as market conditions are right. Current market changes make it impossible to predict how soon this would happen, but it is advised that the bond ordinance be approved as soon as possible." Councilmember Mabry stated he would withdraw from consideration and vote on this item due to an appearance of a conflict of interest. Councilmember Maxey made a motion, seconded by Councilmember Stoner, to adopt Ordinance No. 95, 1987 on First Reading. Finance Director Alan Krcmarik gave a brief background of this item and responded to questions from Council. Linda Clark, Boettcher and Company, explained the breakdown of funds. Councilmember Kirkpatrick suggested adding a sentence to Option #3 which would give some direction for the use of bonds for future projects as follows: "Any future projects would have to provide tax increment revenues ' of 130% of the additional debt service the projects generated." She stated -21- June 2, 1987 she would like to have a provision which protects the City's sales and use tax fund from having to pay for the debt service for the DDA. Councilmember Kirkpatrick made a motion, seconded by Councilmember Horak, to amend Option q3 as described. Loring Harkness, bond counsel, stated the best way to implement the amendment would be to include it with the other necessary changes required prior to second reading. He stated those changes will include revising the current text of the ordinance in order to comply with MBIA requirements and inserting the interest rates. Councilmember Kirkpatrick stated she was agreeable to Mr. Harkness' suggestion. City Manager Burkett clarified that Councilmember Kirkpatrick's motion is interpreted as direction to staff to make changes to the ordinance prior to second reading. (Secretary's Note: Councilmember Kirkpatrick withdrew her motion at this time. The motion under discussion is the original motion to adopt Ordinance No. 95, 1987 on First Reading.) Councilmember Winokur expressed concern with the refunding of bonds. Councilmember Maxey stated refunding of bonds only occurs if there is a potential savings of at least $250,000. Councilmember Horak shared some of the concerns expressed by Councilmember Winokur. He stated if the cost of refunding is less than the benefit, it makes sense to proceed. Mayor Estrada stated he thought this time was very propitious because the City can save over $250,000 by refinancing. The vote on Councilmember Maxey's motion to adopt Ordinance No. 95, 1987 on First Reading was as follows: Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Maxey, and Stoner. Nays: Councilmember Winokur. (Councilmember Mabry withdrawn) THE MOTION CARRIED. Councilmember Kirkpatrick made a motion, seconded by Councilmember Horak, to give staff direction to pursue Option UA (as proposed by Councilmember Kirkpatrick). Councilmember Kirkpatrick stated Option UA does have a down side in that public projects are the likely' projects that will not receive funding. She stated if those projects are worthy projects they will stand in line with other worthwhile projects that the City is considering. 22- 1 June 2, 1987 Councilmember Winokur stated he would support the motion, but cautioned that projects in one part of town can have an effect on other parts of town. Councilmember Horak stated he expected staff and bond counsel to provide information about the effect that this amendment would have. The vote on Councilmember Kirkpatrick's motion was as follows: Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Maxey, Stoner, and Winokur. Nays: None. (Councilmember Mabry withdrawn) THE MOTION CARRIED. Staff Reports City Manager Burkett introduced Julia Dyson, a new intern in the City Manager's Office. Appeal of Planning and Zoning Board Decision (P&Z #2-87A) Regarding a Preliminary PUD for a 1.57 Acre Tract within the Pulse Planned Unit Development, Planning and Zoning Board Decision Upheld ' Following is staff's memorandum on this item: "Executive Summary At the March 23, 1987 Planning and Zoning Board hearing, the entire 21.17 acres of The Pulse PUD was considered for preliminary approval. 19.6 acres were approved, and 1.57 acres were deleted for further consideration of neighborhood objections. At the April 20, 1987 Planning and Zoning Board hearing, the 1.57 acre parcel was denied as a preliminary PUD. The applicant is appealing this denial of the 1.57 acre parcel. Background March 23, 1987 Planning and Zoning Board Hearin The Pulse Preliminary PUD was heard on the March Planning and Zoning Board agenda. The Preliminary PUD proposal consisted of a total of 21.17 acres. Designed as a mixed use project, the Pulse PUD contained 9.40 acres of commercial uses and 11.80 acres of residential. It was the decision of the Planning and Zoning Board to approve 19.6 acres of the Pulse Preliminary PUD with various conditions to be addressed at the final submittal. It was also the decision of the Planning and Zoning Board to delete 1.57 acres of the project from consideration. This 1.57 acre ' parcel contained the following land uses: -23- June 2, 1987 1. 2,600 square foot convenience store. ' a. flat roof architecture. b. open on a 24 hour basis. c. 20 foot setback from Stuart Street. 2. Two gas pump islands containing eight pumps. 3. 48' X 35' gas pump canopy, totalling 1,680 square feet at a height of 13' 6". 4. 5 bay car wash totalling 2,300 square feet. It was the intention of the Planning and Zoning Board to keep the majority of the Pulse PUD moving forward through the approval process but to also encourage the applicant to respond to the neighborhood objections regarding the deleted 1.57 acres. As stated in the decision letter: "The convenience store, gas pumps, and canopy, and car wash were deleted from consideration of the Preliminary PUD. These uses were not specifically and categorically denied. Due to their objectionable characteristics, however, these uses should be seriously re-evaluated." "By deleting these uses from the Preliminary PUD, the Planning ' and Zoning Board is advising the applicant that future submittals should consider other uses, or enhance the mitigation measures, or minimize the neighborhood concerns." April 20, 1987 Planning and Zoning Board Hearing Since the 1.57 acre parcel was deleted from consideration in March, the Planning and Zoning Board heard the request on a Preliminary PUD basis. The revised plan included the following land uses: 1. 2,600 square foot convenience store. a. sloped roof architecture. b. operation hours to be restricted 7:00 AM to 10:00 PM. C. 29 foot setback from Stuart Street. 2. One gas pump island containing four pumps. 3. 38' X 8' gas pump canopy, tota7ling'304 square feet at a height of 10 feet. 4. 5 bay car wash totalling 2,300 square feet. -24- June 2, 1987 ' The revised Preliminary PUD on the 1.57 acre parcel was evaluated and reviewed by staff based on the concerns of the Planning and Zoning Board expressed at the March hearing. It was staff's conclusion and subsequent recommendation that the revisions did not meet the advisement and guidelines given by the Planning and Zoning Board in their March decision. Staff recommend denial of the Preliminary PUD approval of the 1.57 acre parcel of the Pulse PUD based on the failure to address absolute criterion #2 "Neighborhood Character" and absolute criterion #3 "Land Use Conflicts" of the Land Development Guidance System. The Planning and Zoning Board voted to deny these uses as submitted at the April hearing. The appellant is seeking to have this vote of denial on the 1.57 acre parcel overturned. It is the appellant's contention that the April plan represents sufficient re-evaluation and meets the Planning and Zoning Board's conditions set forth at the March hearing. The appellant further claims that the Board acted in an arbitrary manner without the support of the evidence of record during the April deliberations. This claim is based on assumption that members of the Board did not believe the reduction in traffic levels based on the reduction in gas pumps and restricted store hours. The appellant claims the architectural design, orientation of buildings, and visual integrity promote neighborhood compatibility and thus satisfies criterion #2 of the Land Development Guidance System. Also, criterion #3 ' requiring mitigation of land use conflicts is met by buffering and landscaping. By discounting these considerations, the appellant claims the Board acted arbitrarily without the support of competent evidence in the record. The appellant claims that the proposed uses meet policies #3 and #21 of the Land Use Policies Plan, adopted by the City in 1979. These policies state that: #3 "The City shall promote the location of residential development which is close to employment, recreation, and shopping facilities." #21 "All levels of commercial development, including convenience, neighborhood, community and regional shopping which have significant negative transportation impacts on South College Avenue will discourage from gaining their primary access from College Avenue." By discounting these policies, the appellant claims the Board's action was arbitrary and without the support of evidence in the record. The appellant claims that three members who participated in the April Planning and Zoning Board hearing were absent from the March hearing. The March hearing included the entire 21.17 acres. Therefore, these three -25- June 2, 1987 members lacked sufficient understanding and the appellant claims their I findings were arbitrary. The appellant claims that the deletion of the 1.57 acre parcel from the March Planning and Zoning Board consideration was confusing, causing an unfair burden. Finally, the appellant claims the proposed land uses are economically viable for which there is a strong market demand. These uses would not be built on a speculative basis. The appellant states it is unfair to deny land uses which have a strong economic basis. The Planning and Zoning Board is on record as stating that the proposed land uses on the 1.57 acre parcel do not meet the concerns of the Board as expressed in the March decision. The intensity of use is not deemed compatible with the surrounding neighborhood. Attached are copies of the staff reports and verbatim minutes of both the March and April Planning and Zoning Board hearings. Also attached are the appellant's statement of appeal and a response from the Prospect -Shields Neighborhood Association. Staff stands on the record of the Preliminary PUD request for the Pulse PUD." Mayor Estrada stated the appeal was based on four specific allegations: (1) the Planning and Zoning Board action of April 20 was arbitrary and without ' the support of evidence in the record, (2) three members who participated in the April Planning and Zoning Board hearing were absent from the March meeting, therefore causing them to lack sufficient understanding making their findings arbitrary, (3) the deletion of the 1.57 acre parcel from the March Planning and Zoning Board consideration was confusing, causing an unfair burden, and (4) the proposed land uses are economically viable for which there is a strong market demand. City Attorney Huisjen stated the Council needs to make a determination whether the grounds are sufficient for the appeal. He stated the grounds stated do fall within the grounds which are permitted for appeal. He stated they fall into three categories: (1) there was an abuse of discretion in that the decision was arbitrary and without the support of competent evidence in the record, (2) 'there was a failure to properly interpret and apply relevant provisions of the Code and Charter of the City of Fort Collins, and (3) there was a failure to conduct a fair hearing and that the Board ignored .its own' previously established rules of procedure. He stated it was his conclusion that the request for appeal is properly grounded pursuant to Chapter 3A of the Code. Councilmember Maxey made a motion, seconded by Councilmember Mabry, that the written grounds of the appeal conform to the requirements of the City Code and are sufficient to be appealed. Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Mabry, Maxey, Stoner, and Winokur. Nays: None. -26- June 2, 1987 I THE MOTION CARRIED. City Planner Ted Shepard gave a brief history of the project and summarized the proceedings at the March and April Planning and Zoning Board hearings. He answered questions from Council. Mayor Estrada stated there would be a 5 minute recess to allow the appellants and the opponents to select individuals to represent their particular perspectives. He stated the appellants would have 20 minutes to present their case, and then the opponents will have 20 minutes to comment on or rebut the grounds of the appeal. He stated there would then be an open 10 minute period for public discussion and comments, followed by Council questions and comments. He noted comments by the appellants and opponents should consist of a summarization of the issue, a review of information, and pertinent commentary. He stated no new evidence should be presented at this time. He also stated that during the recess no questions, perspectives or lobbying should be shared with Councilmembers. After the recess, City Attorney Huisjen stated the appeal is now before the Council as though they are the Planning and Zoning Board. He stated Council should consider the project in terms of the Land Development Guidance System. He stated the issues are neighborhood compatibility, traffic, and land use. He noted the issues are not whether there were sufficient grounds for appeal, whether the applicant was denied a fair hearing at the lower board, or whether the evidence was improperly ' considered. He stated Council should consider the evidence that was presented to the Planning and Zoning Board in view of the LOGS. He stated Council should decide whether to sustain, overturn, or modify the decision of the Planning and Zoning Board. Lucia Liley, attorney representing the appellant, US Properties, stated they are requesting the Council overturn the decision of the Planning and Zoning Board. She introduced David Huber, principle of US Properties. David Huber, owner of Fort Collins Pulse and partner in the development of the Pulse PUD, thanked Council for the time spent in reviewing the materials relating to the Pulse PUD and thanked the neighborhood for their input. He described the entire PUD and spoke of attempts to buffer the tract from the surrounding neighborhood. He spoke of the changes made to the 1.57 acres planned for a convenience store and car wash after meetings with the neighborhood. He stated that at the March 23 Planning and Zoning Board meeting a master plan was presented, and approved 5-0 by the Board, which included the convenience store and car wash. He stated the preliminary plan was approved with the convenience store and car wash erased and brought back at a later date. He spoke of his frustration in trying to meet the expectations of the staff and the Planning and Zoning Board. Ms. Liley stated there were three relevant points the Council should look ' at: III the fact that the City staff, in• overruling their earlier recommendation of approval, confused their proper role and left the -27- June 2, 1987 Planning and Zoning Board, in April, without an independent, objective ' opinion about the plan, (2) that the Planning and Zoning Board had a change in composition between the first and second hearings causing confusion over what had occurred in March and what was up for consideration in April, and (3) that this lead to a decision on the part of the Board based upon improper items. She noted the March staff report contains a staff recommendation that the full 21 acre mixed -use project be approved with three conditions. She further noted that staff recommended approval after they found that all locational criteria for the commercial uses had been met, all of the points required for the residential density chart had been met, and the land use conflicts had been mitigated. Ms. Liley stated that a new staff report had been prepared for the April Planning and Zoning Board hearing which recommended denial of the project despite mitigation measures that had been taken because "there are still significant objectionable characteristics". She questioned to whom those characteristics were objectionable, noting they weren't objectionable to staff, even before the mitigation measures were taken. She stated the only reasonable inference to be made was that it was objectionable to the neighborhood, and if it was objectionable to the neighborhood it could not be compatible and therefore it could not be approved. She pointed out that missing were the objective criteria of the LDGS, and the objective staff evaluation from March. Ms. Liley stated there was a lot of confusion about the conditions that were attached to the plan. She pointed out that an independent staff evaluation was not prepared for the April hearing. She noted there were three new board members present at the April hearing who may not have been familiar with the evidence presented at the March meeting. She indicated there was confusion by the Board about what was , happening procedurally. She alleged that the grounds given by the Board for denial of the 1.57 acre parcel were impermissible. Ms. Liley stated there was ample evidence that all of the design criteria and related criteria of the Land Development Guidance System have been met and in most cases exceeded. She addressed the issue of neighborhood compatibility. She spoke of the provisions of the LDGS. She urged Council to consider overturning the decision of the Planning and Zoning Board. Harold Worth, 1501 South Shields, vice-president of the Prospect/Shields Neighborhood Association, spoke of a letter dated May 12 which contained a detailed analysis of the Association's views and requested that letter be made part of the record of this hearing. He stated the neighborhood is unequivocably opposed to including a convenience store, gas station, and car wash in the Pulse development. He stated the change in design and operation that the developer proposed at the April hearing failed to address the neighborhood's objections regarding the total incompatibility of these facilities with the character of the neighborhood. He stated the neighborhood believes these features are unneeded in the neighborhood and are inconsistent with the quality aspirations the developer has for the project as a whole. Mr. Worth spoke of meetings between the neighborhood and the developer. He addressed parts of the LDGS that support the neighborhood's opposition to the project. He stated additional services of the type .proposed are not need or wanted at the Pulse location. He noted such facilities are already available at several points within a 3/4 mile radius of'the proposed site. He spoke of the neighborhood's concerns about , a". June 2, 1987 the traffic impact the project will cause. Mr. Worth urged Council to support the decision of the Planning and Zoning Board to deny the proposed uses. The following persons spoke during the public discussion period: 1. Lloyd Walker, member of the Prospect/Shields Neighborhood Association, summarized some of the concerns of the neighborhood. 2. Eileen Contrino, neighborhood resident, expressed support for the project. 3. Barbara Allison, 1212 Lynnwood Drive, questioned the results of City traffic studies. She stated she was opposed to the project. 4. Emily Smith, secretary of the Prospect/Shields Neighborhood Association, stated a survey conducted of the Neighborhood Association showed 107 opposed to the convenience store and 27 in favor; 22 favored the gas pumps and 127 had strong objections; and 24 favored the car wash and 120 had strong objections. Traffic Engineer Rick Ensdorff responded to questions from Council about traffic in the area of this development. ' Planning Director Tom Peterson answered questions relating to the March and April staff reports and Planning and Zoning Board hearings, and the Land Development Guidance System. Mr. Worth responded to Council questions about the neighborhood's desires for development in the area. Councilmember Horak made a motion, seconded by Councilmember Kirkpatrick, to uphold the decision of the Planning and Zoning Board to deny the Pulse PUD. Councilmember Stoner stated he would not support the motion. He expressed concern about the change in the staff recommendation after the March P&Z meeting. Councilmember Horak expressed concern about the proceedings at the March and April P&Z hearings. He commended Mr.-Huber's work with the neighborhood, but added it is not a sufficient condition for project approval. He stated he felt the project is not sufficiently buffered or mitigated. Councilmember Kirkpatrick stated she would vote to uphold the P&Z denial because she did not feel the developer has sufficiently met the conditions specified. She stated she di& not feel a car wash fit into the scope of a ' neighborhood convenience center. She stated she would like the developer -29- June 2, 1987 to look at the specific uses in the 1.57 acre tract prior to the next I Planning and Zoning Board hearing. Councilmember Maxey agreed that the car wash did not necessarily fit into the neighborhood. He stated he felt the development was very well buffered. He stated he hoped more mitigation might result in approval at the next Planning and Zoning Board meeting. Councilmember Winokur concurred with the comments of Councilmembers Horak and Kirkpatrick. He stated he did not feel that because things were handled clumsily at the Planning and Zoning Board hearing they were handled incorrectly. He expressed concerns about the traffic impact. He commended both parties for working cooperatively on the issue. He stated he would vote to uphold the decision of the Planning and Zoning Board. He stated he would like to see more buffering, more mitigation efforts, and more efforts to de -intensify the use of the area. Councilmember Mabry stated he did not feel there was a need to be concerned with the change in the staff report and the change in the composition of the Board between hearings. He expressed concern about the evolution of the project through the Planning and Zoning Board. He stated he felt the Board made a mistake in trying to deal with the development in two parcels. He felt both the developer and the neighborhood did everything possible to try to reach agreement. He stated he felt upholding the action of the Planning and Zoning Board would be to say there is no way to make a use compatible with the neighborhood and would do significant damage to the Land Development Guidance System. , Mayor Estrada applauded the developer for his efforts in working with the neighborhood. He stated he hoped the developer would continue to work with the neighborhood to reach agreement. He stated he would vote to uphold the Planning and Zoning Board decision. Councilmember Stoner pointed out that Council has the option to modify the decision of the Planning and Zoning Board. He suggested substituting the car wash for a less intensive use. Councilmember Estrada stated that if Council votes to uphold the P&Z decision, a plan along the lines of Councilmember Stoner's suggestion could be brought back to the Planning and Zoning Board. He stated he preferred not to deal with a modification which should be heard by the Board. Councilmember Kirkpatrick stated she did not feel the Planning and Zoning Board should interpret the Council's decision to uphold to mean all of the uses proposed on the site are denied. She stating she was voting to uphold the decision because the Board did not feel the developer had sufficiently met conditions that were specified at the first hearing. The vote on Councilmember Horak's motion to uphold the decision of the Planning and Zoning Board to deny the Pulse PUD was as follows: Yeas: Councilmembers Estrada; Horak, Kirkpatrick, Maxey, and Winokur. Nays: Councilmembers Mabry and Stoner. ' IsR June 2, 1987 THE MOTION CARRIED. Resolution 87-84 Authorizing the City Manager to Enter into an Agreement with Colorado State University for the Construction of Recreational Improvements Adopted Following is staff's memorandum on this item: "Financial Impact $100,000 will be allocated from the $210,000 appropriated for Economic Opportunities and $20,000 will be allocated from the $118,000 appropriated in the Maintenance and Mitigation Account (Lodging Tax Revenues). Executive Summary On May 19, 1987, the City Council approved the amended minutes of the Economic Development Sub -Committee meeting held May 5, 1987. Based on the Sub -Committee's recommendation, Council directed staff to pursue several activities related to the Economic Development Program. It was recommended that staff pursue cooperative funding with Colorado State University of improvements to the South College Track Facility. Allocation of $120,000 was recommended. The economic benefits to the community include: - Increased sales tax revenues generated by attendance at new athletic events and increased visitor activities. - Additional recreational opportunities for the public. - An improved facility to serve as an attraction to new students considering enrollment at Colorado State University. On May 28, staff met with representatives of Colorado State University to discuss the plans, scope and phasing of the project. The contract would clearly describe the City's participation. Staff is requesting Council's authorization of the resolution." Mayor Estrada stated that the Ethics Committee has recommended he withdraw from consideration of this item because he is a CSU administrator and therefore has a perceived conflict of interest. He stated he would not participate in the discussion and vote on this item and turned the meeting over to Councilmember Stoner. Councilmember Kirkpatrick stated; she also had a perceived conflict of interest because her husband is an engineering professor at CSU and ' therefore would withdraw from discussion and vote on this item. -31- June 2, 1987 Economic Development Administrator Linda Hopkins gave a brief presentation on this item and answered questions from Council. Councilmember Maxey made a motion, seconded by Councilmember Winokur, to adopt Resolution 87-84. The following persons spoke on this item: 1. Bruce Lockhart, 2500 East Harmony Road, expressed opposition to the project. 2. John Martin, Fort Collins High School teacher/coach, spoke of sports events that have been in held in Fort Collins in the past but are no longer hosted here due to deteriorating facilities. He suggested several events that could be hosted in Fort Collins if the track is constructed. 3. Rick Chavez, CSU faculty member, spoke of his work with the handicapped. He stated the clients he works with will benefit from the facility. 4. Robert Bisetti, owner of Bisetti's Restaurant, spoke of the benefits to local restaurants if large numbers of people come to Fort Collins for sporting events. 5. Joan Perry, 2009 Stover, expressed concern about the process used in allocating funds to this project. She asked Council to reverse their decision to support this project. 6. Sherry Linnell, Director of Adult Fitness Program, urged Council to vote in favor of the project. 7. Earlie Thomas, a local parent, spoke of the need for an improved track for training purposes and to host local competitions. 8. Cliff Romero, 2312 Rollingwood, spoke of the benefits for local children involved in track, and encouraged Council to support the project. 9. Bob Collin, Fort Collins resident, expressed support for the facility. Councilmember Maxey expressed concern about the parking around the facility and urged careful planning to accommodate parking without _impacting the neighborhood. Councilmember Horak expressed dissatisfaction with the procedure used to allocate funds for•this project. He stated he supported the concept of a community track, ti`ut! did not feel adequate analysis and planning had been -32- June 2, 1987 completed. He stated he did not feel this project was necessarily the best use for economic development funds. Councilmember Mabry stated he supported the project. He stated he felt the process used was faulty. He stated he felt parkland funds should be used for projects like this. Councilmember Winokur disagreed with the use of parkland funds for this project. He pointed out that one of the recommendations of the Economic Development Task Force was to spend up to $150,000 for Colorado State University. He stated he felt this project will help bolster the positive image of CSU. The vote on Councilmember Maxey's motion to adopt Resolution 87-84 was as follows: Yeas: Councilmembers Maxey, Stoner, and Winokur. Nays: Councilmembers Horak and Mabry. (Councilmembers Estrada and Kirkpatrick withdrawn) THE MOTION CARRIED. Ordinance No. 93, 1987, Dissolving the Building Board of Appeals and the Building Contractors Licensing Board and Creating a Building Review Board, Adopted as Amended on First Reading ' Following is staff's memorandum on this item: "This Ordinance is the result of the April 21, 1987 Council meeting and a subsequent meeting with staff and members of both the Building Contractors Licensing Board and Building Board of Appeals. The combined board concept was discussed at the joint BCLB and BBA meeting on April 30, 1987 and was endorsed by both bodies with a recommendation that the new board be named the "Building Review Board" and be composed of seven regular members and two alternate members in order to utilize all of the current combined membership of both boards. Some BCLB members also expressed the need for a larger board to achieve increased board attendance at hearings. However, at its May 28 meeting the BCLB voted 3-0 to support the Ordinance as drafted by staff. The general concensus of the members of both boards was that the new board should be made up entirely of people involved in the construction industry. Staff concurs with the concept and name but feels a larger board will be unwieldy, serving no real purpose and requiring much more staff support. Also, staff believes that the new board does not necessarily need to be comprised entirely of technically trained people and better decisions will result from a diversified membership. This Ordinance creates a board of five regular members and two alternate ' members, at least three of whom have technical qualifications." -33- June 2, 1987 Councilmember Maxey made a motion, seconded by Councilmember Stoner, to ' adopt Ordinance No. 93, 1987 on First Reading with the Building Review Board consisting of 7 members and 2 alternates, with at least 6 members being qualified by experience or training in technical matters relating to building construction. Councilmember Maxey stated he felt combining the two boards results in more technical work than either board dealt with independently. He stated he felt it important to have a larger representation of input than a smaller board could offer. Councilmember Mabry stated did not feel it was necessary to have 6 members qualified by experience or training. Councilmembers Maxey and Stoner agreed to change their motion to require 5 members to be qualified by experience or training. Councilmember Kirkpatrick stated she could not support the need for additional technical members on the board. Councilmember Horak agreed with Councilmember Kirkpatrick, noting he felt this would exclude people from applying because they might feel they don't have a chance to be appointed. Councilmember Winokur stated he felt decisions about expertise could be made in the selection process. He stated he preferred to be less restrictive, but would like Councilmembers conducting interviews to ask ' appropriate questions to gauge an individual's qualifications. Mayor Estrada stated he was not convinced there needed to be more than 3 members qualified by experience or training. The vote on Councilmember Maxey's motion to adopt Ordinance No. 93, 1987 on First Reading as amended was as follows: Yeas: Councilmembers Mabry, Maxey, and Winokur. Nays: Councilmembers Estrada, Horak, Kirkpatrick, and Stoner. THE MOTION FAILS. Councilmember Horak made a motion, seconded by Councilmember Kirkpatrick, to adopt Ordinance No. 93, 1987 as presented on First Reading. Councilmember Stoner made a motion, seconded by Councilmember Mabry, to amend Ordinance No. 93, 1987 to increase the number of regular members to 7 with 2 alternates, with 3 members possessing technical expertise. Yeas: Councilmembers Estrada, Horak, Mabry, Maxey, Stoner, and Winokur. Nays: Councilmember Kirkpatrick.. THE MOTION CARRIED. -34- June 2, 1987 The vote on Councilmember Horak's motion to adopt Ordinance No. 93, 1987 as amended on First Reading was as follows: Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Mabry, Maxey, Stoner, and Winokur. Nays: None. THE MOTION CARRIED. Resolution 87-83 Making Appointments to Various Boards and Commissions, Tabled Until July 7 Following is staff's memorandum on this item: "Executive Summary Council has received copies of the applications for membership on the various City Boards and Commissions, and interviews with the applicants have been conducted by Council committees. Council will make recommendations on the various boards at the June Z meeting. In keeping with Council's policy, this Resolution will be tagled'until July 7 to allow for public input. Background Appointments need to be made for the following Boards and Commissions.' Airport Authority CHOICE Advisory Committee Commission on Disability Commission on the Status of Women Cultural Resources Board Downtown Development Authority Golf Board Housing Authority Human Relations Commission Landmark Preservation Commission Library Board Liquor/Massage Licensing Authority Natural Resources Advisory Board Parking Commission Personnel Board Planning & Zoning Board Quality of Life Commission Retirement Committee Senior Advisory Board Storm Drainage Board Water Board Zoning Board of Appeals" Mayor Estrada read the names of the persons recommended for appointment. Councilmember Stoner made a motion, seconded by Councilmember Horak, to adopt Resolution 87-83 with the names as read by Mayor Estrada inserted. Councilmember Horak made a motion;- seconded by Councilmember Winokur, to table Resolution 87-83 until July 7 to allow for public input. Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Mabry, Maxey, Stoner, and Winokur. Nays: None. THE MOTION CARRIED. -35- June 2, 1987 Other Business Councilmember Stoner requested a standard written format for all appeals. Other Councilmembers also expressed a desire for improvements to the appeals process. Adjournment Councilmember Stoner made a motion, seconded by Councilmember Mabry, to adjourn the meeting. Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Mabry, Maxey, Stoner, and Winokur. Nays: None. The meeting adjourned at 1:05 a.m. ^TT�� City Clerk IU-2