Loading...
HomeMy WebLinkAboutMINUTES-02/19/1991-Regular' February.19, 1991 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council -Manager Form of Government Proclamations and Presentations - 6:15 p.m. a. "Municipal Attorney of the Year" award, was presented to City Attorney Steve Roy by Marty McCullough, City Attorney of the City of Westminster and President of the Metropolitan City Attorneys' Association. Regular Meeting - 6:30 p.m. A regular meeting of the Council of the City of Fort Collins was held on Tuesday, February 19, 1991, at 6:30 p.m. in the Council Chambers in the City of Fort Collins City Hall. Roll call was answered by the following Councilmembers: Azari, Edwards, Horak, Kirkpatrick, Mabry, Maxey and Winokur. Staff Members Present: Burkett, Krajicek, Roy. Citizen Participation Beatriz Alonso, 2630 Brookwood Drive, asked for a show of Council concern for her problems and noted the appointment of the new Chief of Police. IAgenda Review City Manager Steve Burkett stated a written request had been received on Item #8, Items Pertaining to the Burns Annexation and Zoning, requesting that it be rescheduled for March 19. Mr. Burkett noted an item requested by Councilmember Winokur has been added, Resolution 91-35, relating to proceeds from the potential sale of SouthRidge Golf Course. CONSENT CALENDAR This Calendar is intended to allow the City Council to spend its time and energy on the important items on a lengthy agenda. Staff recommends approval of the Consent Calendar. Anyone may request an item on this calendar to be "pulled" off the Consent Calendar and considered separately. Agenda items pulled from the Consent Calendar will be considered separately under Agenda Item #24, Pulled Consent Items. 7. ' 8. Items Pertaining to the Burns Annexation and Zoning. 66 Second Reading of Ordinance No. 80, 1990, Annexing Approximately 46 I Acres, Known as the Burns Annexation. B. Second Reading of Ordinance No. 81, 1990, Zoning Approximately 46 Acres, Known as the Burns Annexation, into the R-F, Foothills Residential, Zoning District. On July 17, Council unanimously adopted Resolution 90-105 Setting Forth Findings of Fact and Determinations Regarding the Burns Annexation and Zoning. On July 17, Council also unanimously adopted on First Reading Ordinance No. 80, 1990 and Ordinance No. 81, 1990, which annex and zone approximately 45.65 acres located west of Overland Trail and south of Drake Road (extended). The requested zoning is the R-F, Foothills Residential District. The property is largely undeveloped, two single-family residences are located on the property. The property is currently zoned FA-1, Farming in the County. This is a voluntary annexation. At the request of the applicant, consideration of the annexation was postponed to this date. Ordinances Submitting Proposed Charter Amendments to the Electors. A. Second Reading of Ordinance No. 10, 1991, Submitting a Proposed Charter Amendment to a Vote of the Registered Electors Concerning the Budget Adoption Process and Interfund Transfers. ' B. Second Reading of Ordinance No. 11, 1991, Submitting a Proposed Charter Amendment to a Vote of the Registered Electors Concerning Appropriations Forbidden. C. Second Reading of Ordinance No. 12, 1991, Submitting a Proposed Charter Amendment to a Vote of the Registered Electors Concerning Competitive Bidding of Construction Contracts. D. Second Reading of Ordinance No. 13, 1991, Submitting a Proposed Charter Amendment to a Vote of the Registered Electors Concerning Approval of Contracts for Services. The Council reviewed at a recent worksession certain proposed amendments to the City Charter. Among them were five amendments which had been recommended by the Council Finance Committee. Those amendments deal with interfund transfers; the budget adoption process; certain appropriations to outside agencies; competitive bidding requirements for construction contracts; and the length of contracts for services which must be approved by the Council. These Ordinances were unanimously adopted on First Reading 67 ' February 19, 1991 on February 5. Ordinance No. 10, 1991 was amended on First Reading to change the date for budget adoption to the last day of November. Two additional pftposed amendments pertaining to nonfinancial matters are presented separately. 10. Second Reading of Ordinance No. 14, 1991, Appropriating Prior Year Reserves. Funds were appropriated in 1990 for specific purposes, but not spent. The unspent funds were added to the reserves at the end of 1990. Appropriations were typically not spent because there was not sufficient time to complete bidding in 1990, and thus there was no known vendor or binding contract to encumber the funds for expenditure in 1991. This ordinance, which was unanimously adopted on First Reading on February 5, reappropriates the 1990 funds for the same uses as were originally approved by Council in 1990. 1990 year-end reserves appropriated by this ordinance are identified by fund below: General Fund $235,316 Golf Fund 5,165 Storm Drainage Fund 5,900 Water Fund 438,200 Wastewater Fund 164,500 Communications Fund 11700 11. Second Reading of Ordinance No. 15, 1991, Appropriating Prior Year Reserves from Police Seizure Activity. During calendar year 1990, Fort Collins Police Services has continued to utilize existing state statutes to seize money and property used in criminal activity. City Council receives annual reports on seizure activity and expenditures of funds. By statute, monies allocated by the court to the seizing agency shall not be considered a source of revenue to meet normal operating needs. These monies are used, instead, to meet expenses incurred by the agency in performing duties which have not been funded through the routine budget process. These monies have been deposited in the General Fund and set aside in a restricted reserve for police expenditures. This Ordinance, which was unanimously adopted on First Reading on February 5, appropriates $58,432, including $39,599 in Prior Year Reserves from seizure money on account through year end 1990 and the remaining unexpended appropriation from 1990 in the amount of $18,833. Awards made by the courts during 1991 will be appropriated early in 1992. [l 12. 13. February 19, 1991 ' This Ordinance was unanimously adopted on First Reading on February 5. The Center Greens development near the 8th, 9th, and loth fairways at SouthRidge Golf Course will require water service from Fort Collins - Loveland Water District. Water distribution lines need to be connected to complete the loop as part of the work at Center Greens. The two easements necessary for this work are located in the "rough" areas of the No. 9 and No. 10 fairways. The water line locations and installation will not impact normal golf play. The Water District will be responsible for restoring the rough area to its existing condition once construction is completed. Granting of these two easements should be of no consequence to any potential sale of the SouthRidge Golf Course. On February 5, Council unanimously adopted Resolution 91-14. This resolution authorized the Mayor to enter into an agreement for the City to continue to provide Larimer County residents with general Library ' services and Library outreach services to serve the handicapped, elderly, and other isolated persons. In exchange for providing these services during 1991, the County will pay to the City $109,507. This Ordinance, which was unanimously adopted on First Reading on February 5, appropriates' the outreach funds. General Service funds were projected and appropriated with the 1991 budget. 14. Second Reading of Ordinance No. 18, 1991, Amending the Code Relating to the Natural Resources Advisory Board. This Ordinance, which was unanimously adopted on First Reading on February 5, amends Chapter 2 of the Code relating to the composition of the Natural Resources Advisory Board. Specifically, the ordinance eliminates the two alternate positions on the Board, reducing the composition to nine regular members. 15. Hearing and First Reading of Ordinance No. 24, 1991, Appropriating Unanticipated Revenue in the Benefits Fund to Cover Medical Claims for 1991. The Total Compensation plan adopted by Council in December 1990, calculated medical benefits based on a composite rate of $285 per employee per month. This rate is higher than the $245 amount budgeted for 1991. Funding for this difference was budgeted as a part of the total of 4.5% set aside for , 69 ' February 19, 1991 labor market adjustments. The difference between the original budget and the final actual numbers is $480,000 city wide. This ordinance appropriates this additional revenue which is being paid into the Benefits Fund to cover Medical Claims for 1991. 16. Resolution 91- USDA Annexation. The property being considered for annexation has, for a period of not less than three (3) years, been completely surrounded by property contained within the boundaries of the City of Fort Collins. The property. being considered for annexation is approximately 1.07 acres in size and is located on the east side of Timberline Road, between Drake and Horsetooth Roads. The property is currently used for agricultural research. There are several large warehouse structures on the property. The proposed Resolution determines that it is in the best interest of the citizens of the City to annex the area and that the annexation complies with the Municipal Annexation Act. The Resolution also determines that a hearing should be established regarding the annexation, and directs that ' notice be given of the hearing. The hearing will be held at the time of first reading of the annexation and zoning ordinances on April 16. 17. Resolution 91-27 Renewing Temporary Use Permits with the Northern Colorado Water Conservancy District for 730 Units of CBT Water. The resolution authorizes the City Manager to execute an application for the renewal of Temporary Use Permits with the Northern Colorado Water Conservancy District for the continued use by the City of seven hundred thirty (730) acre-foot units of Colorado -Big Thompson (CBT) water. The District requires that Temporary Use Permits be renewed each year. Since transfers of water using permanent contracts take longer and are more complicated, they are initially made using the Temporary Use Permits. Every few years, all CBT water owned and used under a Temporary Use Permit is converted to use under a permanent.contract. 18. Resolution,91-28 Authorizing the Mayor to Enter into an Intergovernmental Agreement 'with Colorado State University for the Provision of Water Testing. The Resolution would authorize the Mayor to enter into a two year agreement with Colorado State University to collect and'process potable water samples on campus and to report the results to the City. The purpose of the sampling is to be able to identify and correct any drinking water quality ' problems that may occur at CSU. 70 19. 21. This resolution authorizes the purchase Underhill site from First National Bank Basin Drainage Improvements. Monetary consultation with an MAI member) February 19, 1991 of 10.8 acres of property on the in Loveland for Canal Importation Consideration: $85,624 (based on On October 25, 1990, the Finance Committee met with a representative from Price Waterhouse, the City's audit firm, to discuss the scope of services for the City's 1990 audit. This meeting was the culmination of a series of meetings with the auditors during 1990 wherein the Finance Committee expressed its desire to expand the scope of services for the audit to include performance auditing procedures. The procedures outlined in the Price Waterhouse letter have been reviewed and approved by the Finance Committee for inclusion in the 1990 audit work plan. The Resolution approves the modification of the Professional Services Agreement to include those items delineated in the November 14, 1990, letter from Price Waterhouse. This resolution expresses the City of Fort Collins' support for boundary adjustments between the Poudre School District R-1 and the Thompson School District R2-J. At the present time, the boundaries between the two school districts do not coincide with the Urban Growth Area boundaries for the City of Fort Collins and the City of Loveland. The City of Fort Collins has annexed properties which lie in the Thompson School District and the City of Loveland has annexed properties which lie within the Poudre School District. In an attempt to allow for orderly growth in the future and to facilitate good planning and efficient use of public resources, Larimer County, the Poudre School District, the Thompson School District, the City of Loveland, and the City of Fort Collins have reviewed existing school district and Urban Growth Area boundaries and agree that boundary changes are mutually beneficial to the citizens of Larimer County. 71 1 1 February 19, 1991 22. Resolution 91-32 Establishing Polling Places for Municipal Election Precincts. Any changes in polling places for municipal elections must be approved by the City Council. The Resolution sets the polling places for the 74 precincts established for the April 2 regular city election. There will be 67 polling locations, including the absentee polling place because eight combined precincts will be used for this election. Arrangements will be made for extra voting devices to handle the volume of voters at these combined precinct locations. Most polling places are the same as those used in previous city elections and the November General Election. 23. Routine Deeds and Easements. a. Powerline easement from underground existing consideration: $10. George J. Collins, 807 W. Oak, needed to overhead electric services. Monetary Ordinances on Second Reading were read by title by Wanda Krajicek, City Clerk Item #9A. Item #9B. Item #9C. Item #90. Item #10 Item #11. Item #12. Item #13. Second Reading of Ordinance No. 14, 1991, Appropriating Prior Year Reserves. Golf Course. 72 February 19, 1991 Item #14. An Ordinance on First Reading was read by title by Wanda Krajicek, City Clerk. Item #15. Councilmember Azari made a motion, seconded by Councilmember Edwards, to adopt and approve all items not removed from the Consent Calendar. Yeas: Councilmembers Azari, Edwards, Horak, Kirkpatrick, Mabry, Maxey and Winokur. Nays: None. THE MOTION CARRIED. Councilmember Reports Regarding Item #21, Resolution 91-31 Expressing Support for the Proposed Adjustment of the School District Boundaries and Encouraging the Development of Adjustments to the Urban Growth Area Boundaries, Councilmember Maxey noted that the residents of Redstone Canyon also have asked to be considered in the boundary exchange. Resolution 91-33 Recommending Denial of a Waiver of the Public Street Capacity Requirement, the Public Sewer Capacity Requirement and the Requirement for Contiguity to Existing Development The following is staff's memorandum on this item. "FINANCIAL IMPACT A waiver to the public street capacity requirement would result in a waiver fee of $4,460 (based on $5,575 per acre industrial land use UGA waiver fee applied to .8 acre storage use). EXECUTIVE SUMMARY This waiver request pertains to the Don White Rezoning, which is a request to rezone 10 acres from I -Industrial to FA -Farming and I-1 Heavy Industrial, for automobile towing, repair and storage. The site is located on the west side of Shields Street, north of Wi11ox Lane (1905 N. Shields Street) and presently contains a single-family residence. The surrounding land uses consist of several single-family residences, and the Wi11ox Wrecking Yard. 73 11 1 February 19, 1991 In 1978, Larimer County approved a rezoning of this 10-acre site from FA -Farming, to I -Industrial. A condition of the rezoning was that the site be used specifically for the storage of recreational vehicles and that fire protection and landscape buffering be addressed with a site plan. None of these conditions were met and the property has never been used for storage of recreational vehicles. The I -Industrial Zoning has remained on the property. The present rezoning request is to rezone the majority of the ten acres (9.2 acres) back to FA -Farming and rezone .8 acres to I-1 Heavy Industrial for the auto related use. The applicant proposes to store vehicles in a fenced outdoor storage area. In order for a property to be rezoned in the UGA, it must be shown that the property will conform to the UGA Phasing Criteria. Of the four Urban Growth Area Phasing Criteria required for this rezoning, this proposal only meets the requirement for public water capacity. Waivers are being requested for the requirements for public sewer capacity, public street capacity .and contiguity to existing development. Under the UGA Phasing Criteria for public street capacity,,the applicant would be responsible for improving Shields Street from the site to Vine Drive, ' approximately one mile. The existing residence is on a septic system and public sewer is available south of the Poudre River, or east of the Union Pacific Railroad (112 - 314 mile from the site). Although there are existing residences in the surrounding area, "existing development" is defined as development that has occurred through approved subdivisions. The intent of the waiver process is to avoid the imposition of unnecessary impediments to infill development proposals or sites. Infill development sites are those in essentially developed portions of the Urban Growth Area whose impact on existing services and facilities is relatively minimal. Infill sites are differentiated, in the Larimer County Supplemental Regulations, from sites that require the extension or upgrading of basic infrastructure and other services and facilities, so that the development or use of the site can proceed (which, in the County's Regulations are referred to as "Sequential Development Proposals"). The Larimer County Commissioners may waive phasing criteria provided that: 1. The waiver will not result in unplanned public expense for provision of public services, improvements, or facilities; 2. The waiver is consistent with the intent, and purpose of the County and adjoining municipality's Comprehensive Plans or Policies; 1 74 February 19, 1991 ' 3. The waiver application contains material indicating approval may be granted without substantial detriment to the intent and purposes of the Supplementary Regulations which apply to the area; 4. The waiver application contains material indicating there are exceptional circumstances which apply to the specific piece of property which do not apply generally to the remaining property in the Urban Growth Area; and 5. The waiver application contains material indicating approval would not impair the public health and safety by creating undesirable traffic conditions, unhealthy sanitary conditions or adverse environmental influences in the area. While the impact from the proposed rezoning is relatively minimal, this site is not in -fill development but rather a sequential development. The basic infrastructure needed to serve the site is not in place. As development continues to occur in this area without the infrastructure, the cost to upgrade and extend services into this area will have to be borne by the applicants of development proposals or eventually, by the public. There are no exceptional circumstances that are unique to this site, to warrant the waiver requests. The granting of this waiver would be detrimental to the intent and purpose of the Supplemental Regulations because it would tend to encourage development which is not "infill" development. ' RECOMMENDATION: The proposed Don White Rezoning is not an infill site and there are no exceptional circumstances unique to this site. Therefore, staff recommends defeat of the resolution. URBAN GROWTH AREA REVIEW BOARD: The waiver request will be considered by the Urban Growth Area Review Board at its February 27, 1990 meeting." Chief Planner Ken Waido stated he had received a letter from the applicant withdrawing their rezoning request. Dennis Griffith reported that he was not certain what past criteria applied to the property and the uncertainty made it difficult to determine which direction to proceed. He stated he would contact the County to determine what would be required for the rezoning. City Attorney Steve Roy recommended tabling the item indefinitely. Councilmember Edwards made a motion, seconded by Councilmember Azari, to postpone , consideration of Resolution 91-33 indefinitely. 75 February 19, 1991 The vote on Councilmember Edwards' motion was as follows: Yeas: Councilmembers Azari, Edwards, Horak, Kirkpatrick, Mabry, Maxey and Winokur. Nays: None. THE MOTION CARRIED. Ordinances Submitting Two Additional Proposed Charter Amendments to the Electors The following is staff's memorandum on this item "EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 20, 1991, Submitting a Proposed Charter Amendment to the Voters of the Registered Electors Concerning Qualifications of Councilmembers. B. Second Reading of Ordinance No. 21, 1991, Submitting a Proposed Charter Amendment to the Voters of the Registered Electors Concerning the Water Board. Ordinances presenting certain proposed Charter amendments pertaining to ' the financial affairs of the City were presented to the Council separately. These two remaining amendments deal with the Charter provisions pertaining to the Water Board and the qualifications of Councilmembers. Ordinance No. 20, 1991 was adopted as amended on First Reading on February 5 by a vote of 5-1. Ordinance No. 21, 1991 was adopted 6-1 on First Reading on February 5." Councilmember Horak made a motion, seconded by Councilmember Winokur, to adopt Ordinance No. 20, 1991 on Second Reading. Bruce Lockhart, 2500 E. Harmony Road, stated the language in the ordinance should be revised to read that any authority under the control of the City, such as the Platte River Power Authority, not be allowed to employ a member of City Council. The vote on Councilmember Horak's motion was as follows: Yeas: Councilmembers Azari, Edwards, Horak, Kirkpatrick, Maxey and Winokur. Nays: Councilmember Mabry. THE MOTION CARRIED. Councilmember Horak made a motion, seconded by Councilmember Azari, to adopt Ordinance No. 21, 1991 on Second Reading. The vote on Councilmember Horak's motion was as follows: Yeas: Councilmembers ' Azari, Edwards, Horak, Mabry, Maxey and Winokur. Nays: Mayor Kirkpatrick 76 February 19, 1991 , THE MOTION CARRIED. Ordinance No. 26, 1991, Authorizing the Sale of SouthRidge Golf Course to Accent Resources, Inc., Adopted on First Reading The following is staff's memorandum on this item. "FINANCIAL IMPACT The sale of SouthRidge Golf Course for $3,200,000 is sufficient to eliminate the remaining debt payments owed on the construction of the course, as refinanced in a 1986 Bond Issue. If all payments were made by the City between 1991 to 2002, the total amount paid during that time would be $4,595,495 or an average of $383,000 per year. The sale of the course would stop the negative cash flow from the City's Sales and Use Tax Fund, estimated to average $252,958 from 1991 to 2002. Sales and Use Tax contributions total $3,035,496 over the 1991-2002 period, assuming annual net operating revenues of $130,000 per year. If the $130,000 figure is not reached, the negative cash flow will be higher. In 1991, the total debt payment is budgeted at $429,252 with $242,220 of that amount being paid as a subsidy from the Sales and Use Tax Fund, and the balance of $187,032 paid from the SouthRidge Fund. ' "EXECUTIVE SUMMARY One of the City Council's primary financial goals is to reduce the City's level of debt and minimize its financial liabilities. The City carries and will continue to carry a sizable construction debt on SouthRidge Golf Course, a large portion of which is paid by taxpayers through annual transfers from the Sales .and Use Tax Fund. At a worksession on July 10, 1990, Council and staff discussed three options to reduce or eliminate the taxpayer subsidy and the City's debt burden with respect to SouthRidge. These options were as follows: 1. shifting the cost of the debt burden from general taxpayers to the Golf Fund and the golfing community; 2. the City assuming full ownership and operation of all aspects of SouthRidge in an entrepreneurial approach, where the City would own and operate the pro shop, merchandise, lessons, driving range, and the bar and restaurant; and 3. explore the sale of SouthRidge. After review of the three options, Council recommended that the sale of SouthRidge be explored to reduce or eliminate the debt. During November and December of 1990, the City solicited sealed bids which were opened on December 7 for the sale of SouthRidge Golf Course. Two cash bids were received at that time; however, all bids/proposals were rejected for not meeting the exact specifications of the bid. In an effort to determine the feasibility of a sale of SouthRidge, staff began negotiations with the two cash bidders and publicly announced to any other parties potentially interested in purchasing ' 77 February 19, 1991 SouthRidge, that the City would receive new proposals through 12:00 noon on February 7. By that deadline, a total of three proposals were submitted to the City and have been evaluated by staff. In the opinion of staff, the best offer is the outright cash sale to Accent Resources, Inc. for $3,200,000. This is the most financially sound of the offers and best meets Council's goal of debt reduction. Following the July 10 worksession, staff from the Purchasing Division and Parks and Recreation, with assistance from the City Attorney's office, Right -of -Way office, Water Department, and the Finance Department, developed a bid package to sell SouthRidge. Bid brochures were mailed locally to all Fort Collins area commercial realtors and interested parties, and mailed nationally to nearly 300 individuals, businesses, and corporations identified by the National Golf Foundation. Advertising was placed into both local newspapers and into national golf magazines. The bid package was mailed or delivered to over 50 potential bidders. On December 7, staff opened the SouthRidge sale bids. The City received four sealed bid packages as follows: 1. Robert E. Ehrlich of Windsor, Colorado, owner of the Mad Russian Golf Course, bid 13,000,000 to buy SouthRidge; however Mr. Ehrlich asked for a lease/purchase option to lease the course for up to two years at $100,000 per year, before exercising the option to buy (or not buy) SouthRidge. 2. Accent Resources, Inc., of Fort Collins, Kent L. Goodman, President, bid $2,800,000 to buy SouthRidge; however, Mr. Goodman asked the City to lease water for up to four years, as well as other "exceptions" to the bid specifications. 3. Kurt Hoeven of Fort Collins submitted a "No Bid" with a proposal to have CSU and High School students manage SouthRidge as a learning center. 4. First Golf Corporation of Denver submitted a "No Bid" with a proposal to provide us with a management agreement if the City didn't sell the course. Since none of the bids met City specifications, all bids were rejected and the two $50,000 bid security deposits were returned to Ehrlich and Accent which brought closure to that specific sale bid. The sealed bids submitted in good faith by Robert Ehrlich and Accent Resources provided a good place to start negotiations. Both bidders sent letters informing the City that they would be willing to negotiate. Since the City had satisfied the public competition element with the bid, negotiations seemed to be an acceptable alternative. Therefore, in January, the City publicly announced that new proposals would be accepted for the sale of SouthRidge; but that such proposals must be better than the two cash bids received on December 7. All 78 February 19, 1991 proposals were to be received no later than 12:00 noon on Thursday, February 7, at the Office of the Director of Purchasing and Risk Management. Fax copies were acceptable. Under this negotiated proposal process, the original written specifications for the Sale of SouthRidge, Bid #4319, were still in effect but open to negotiation. For example, the City could consider offers that included the City's personal property that is used in connection with the operation and maintenance of the course as well as offers that proposed leasing water from the City for use on the course. However, it was stated that the City was not interested in 'financing' this sale. On February 7, the City received three (3) proposals from parties interested in purchasing SouthRidge. The three proposals were as follows: 1. Accent Resources, Inc. of Fort Collins, Kent L. Goodman, President -- The new offer is $3,200,000 in cash for the purchase of SouthRidge, which includes all operating equipment, machinery, and vehicles currently owned by the City and used at SouthRidge, and includes the City providing leased water for up to two years until Accent acquires its own source of water. There are also several other minor provisions. 2. All Pro Investments of Fort Collins, Bill Zech -- The offer to lease/purchase SouthRidge for $150,000 per year for a maximum of up to three years, with a $4,000,000 purchase payment option within the three years. The City equipment is included in the price. In addition, A17 Pro provides several miscellaneous inclusions such as a guarantee that green fees will not be higher than Collindale Golf Course, and it will provide "cut rate fees" to High School Golf Teams, etc. 3. Robert E. Ehrlich of Windsor, Colorado -- Ehrlich has changed his original $3,000,000 lease/purchase (with $100,000 per year for a lease up to two years) offer to a lease only offer of $150,000 per year up to three years maximum. Ehrlich also provides several miscellaneous inclusions such as green fees no higher than Collindale, guarantee of access to the Mad Russian Golf Course to any Fort Collins residents at Collindale fees, and a "cut rate" plan for High School Golf Teams fees. The lease also includes the City equipment. Of the five total offers the City has received, including the two original "bids" of $2,800,000 from Accent and the Ehrlich $3,000,000 (ease/purchase offer, the new Accent offer of $3,200,000 is the best offer for Council's consideration. While it does appear that the $4,000,000 lease/purchase offer will provide the City with more cash, the risk of a lease/purchase precludes it from being as viable. 79 February 19, 1991 Pros and Cons of a Sale There is a demand for SouthRidge as a public facility. In spite of the addition of this course to the City's public inventory, the demand for golf services continues to grow. The need for an additional public golf course is foreseen in the mid -to- late 1990's to meet the growing demand. Although the circumstances which surrounded SouthRidge's development and acquisition may be the focus of criticism, the end result is that the public has an asset, that asset is in demand, and the price (while more than originally bargained for) is generally a fair one for the asset received. The arguments and issues supporting the sale of SouthRidge Golf Course are as follows: A. Elimination of Debt -- Elimination of the construction debt currently at $3,100,000. This eliminates the need for taxpayer dollars to help cover a large portion of that amount. This also brings closure to a politically controversial issue. B. Safety and Liability Concerns -- SouthRidge is totally surrounded by a housing development. This presents the potential for liability from errant golf balls that strike houses, vehicles, and people next to the course. C. Security Risk -- The security of access to the course is virtually beyond control. Homeowners and non-residents can and do enter the course grounds from several locations and play golf without paying the green fees. D. Design Problems -- The course was designed to complement and enhance the adjacent development. As housing development occurs, new problems such as drainage issues will continue to surface. In addition, other issues such as erosion on Fossil Creek and encroachment by adjacent homeowners may continue to be issues and contribute to future costs. E. Tax Revenue -- As a private course, the new owners would pay taxes to the City and other governmental entities. F. Poor Public Relations -- SouthRidge and the City's ownership and relationship with Bucain Corporation has been confusing for the public and has created public perception problems. The project was originally billed as a "free" golf course. In the end, it is now perceived as a financial burden to some people and has come to be a symbol for a past mistake. G. Consistent Financial Policy -- Sale of the course would be consistent with policy supporting privatization and contracting. The arguments and issues in opposition to the sale of SouthRidge Golf Course are ' as follows: 80 February 19, 1991 A. Demand -- Golf play in the United States, Colorado and specifically Fort Collins has been increasing, and all projections for the future show continued growth. Play at the City's other municipal courses as well as SouthRidge has been growing. Golfers are starting to pressure staff and the Golf Board to consider the construction of another public golf course in the 1990's. Potential changes in the course made by a private owner may place additional pressure on the City for a new municipal course. B. Public Access and Fees -- The course is currently totally accessible to the general public under fair rules for access. The user fees may be significantly increased without public input or oversight if the course is not under City control. C. Water Rights -- The City currently provides all water to the course without cost. If sold, the new owner will have to pay a substantial amount for its own source of water which may result in increased cost to golfers. D. Future Course Development -- Selling the course may send a message that the City is not interested in continuing in the golf course business and that the City will not address the need for future course development. The Golf Board believes that the City wi17 need another public course by the mid -to -late 1990's. As a point of information, the City of Greeley is now spending $3,700,000 and the City of Loveland has budgeted $3,750,000 for a new 18-hole golf courses. These courses are similar to Collindale and SouthRidge. Financial Analysis of Offers Finance Department staff has reviewed each of the three SouthRidge proposals received by Purchasing. Because the lease offer from Ehrlich is less than the cash offer from Accent, it was not considered as a viable option and detailed financial analysis was not completed. The proposals from the other two bidders were reviewed from two perspectives. Staff conducted an internal rate of return analysis and also conducted a cash flow analysis to determine how much money would remain when the debt attributed to SouthRidge is to be completely paid off in 2002. 1. Accent Proposal -- The Internal Rate of Return (IRR) for the period 1983 to 2002 under the $3,200,000 cash option is 1.1%. If the IRR calculation is limited from now until 2002, the figure increases to 7.4%. The cash flow analysis assumed that the funds received would be placed in escrow and monies would be deducted as bond payments became due. The balance after the SouthRidge debt is retired is estimated to be $158,000. 2. All Pro Proposal -- Internal Rate of Return analysis of the All Pro lease with an option to purchase proposal yields a higher rate of return. Assuming ' 81 ' February 19, 1991 the longest length of lease, three years, the IRR for the period 1983 to 2002 is 2.OY and for 1991 to 2002, it is 9.9%. If the period of the lease is shortened, the corresponding rates of return increase slightly. The cash flow analysis shows that if the lease option was exercised for three years followed by the cash purchase at $4,000,000, the balance after the retirement of the debt would be about $890,000. If the lease period is shortened, the cash remaining increases. Under the lease with option to purchase proposal, the City would have to assume the risk for the period of the lease, the risk being whether Al Pro should be able to finalize the purchase with the $4,000,000 cash. Without additional information about the financial strength of Al Pro, it is not possible to assess the degree of risk. Null Alternative If Council chooses not to sell the SouthRidge Golf Course, staff will operate SouthRidge as a part of the Golf Division consistent with the operation of City Park Nine and Collindale Golf Courses. All maintenance staff will be City employees, and the Pro Shop operations and Snack Bar/Restaurant concessions will be contractual. Existing agreements are in place for 1991, and the Pro Shop and ' Snack Bar/Restaurant services will be bid. A11 1991 Expenditures and Revenues were adopted as a part of the 1991 Budget. In addition to the City fully operating, maintaining and managing SouthRidge, staff and the Golf Board will revisit some of the earlier options regarding the financial operations of the Golf Fund and SouthRidge. At the July worksession, some Council members suggested that the "Community Value of Golf" be investigated to help determine a logical amount of general taxpayer support towards all City golf courses. This would be similar to the Recreation Fee Policy adopted by Council. It was also suggested that the golf fee structure be revised to potentially add an "out-of-town" fee or place some restrictions on the use of annual passes. Such a report on the Community Value of Golf will be available by the end of May. Golf Board Recommendation The Golf Board re -scheduled its February meeting from the 20th to the 13th so members could review and discuss the sale of SouthRidge. A recommendation from the Board to Council will be made by separate memorandum prior to the February 19 Council meeting. Historical Background of SouthRidge The following historical discussion of SouthRidge is presented as background in considering this debt issue. 82 February 19, 1991 .1 In 1982, the City entered into a series of agreements with the Bucain Corporation (also sometimes known as the SouthRidge Greens Corporation, as well as Cliff Buckley and Bernie Cain as individuals) which included the acquisition, development, leasing, guarantees, financing, and the operation and maintenance of SouthRidge Golf Course. At that time, the City paid approximately $2,800,000 (from $3,300,000 in Bond Anticipation Notes) for the complete construction and outfitting of the course with all the necessary equipment. This regulation size 18-ho7e public golf course facility was developed for the City by Bucain on 130 acres of land donated to the City in basic exchange for the City's construction financing. The course opened for play in July 1984, and has been contractually leased for its total management, operation, and maintenance to Bucain since that time. An average of 44,000 green fee paying golfers per year have played SouthRidge since it opened. The Bucain Corporation was the developer of the adjacent 73-acre residential/commercial tract. The original intent was that revenues generated at the Golf Course would cover all course related expenses, and that the construction debt would be paid off by 1988 with a portion of the proceeds from the sale of all the residential units which surrounded the course. The City was to essentially receive a "free" golf course. However, the housing market in Fort Collins and specifically at SouthRidge did not materialize as envisioned, and the debt payments were not met as originally conceived. The original SouthRidge construction debt was then refinanced as a part of a 1986 Bond Issue lasting through the Year 2002. All ' of the agreements with Bucain have been terminated, including the course management agreement which expired on January 17, 1991, on its own terms. The City took over full management, operations, and maintenance at SouthRidge utilizing a contractual golf professional, a contractual snack bar/restaurant concessionaire, and City employees performing all maintenance functions, similar to how the City operates Collindale and City Park Nine Golf Course. Since 1988, the operating revenues from SouthRidge have generated at least $100,000 annually over -and -above all operation and maintenance costs and have helped to reduce the construction debt. At that time, City Council implemented a SouthRidge Surcharge of an additional $1.50 on 9-hole green fees and an additional $2.50 on 18-hole green fees to raise the extra revenues. However, the City has continued to provide an annual subsidy or transfer from the Sales and Use Tax Fund to cover debt payments. Debt payments average between $230,000 to $265,000 per year (depending upon course revenues and expenditures) and are projected through the year 2002. As of December 31, 1990, the remaining debt service on SouthRidge was slightly under $3,100,000. From 1983 to 1990, the City has paid approximately $2,900,000 in SouthRidge debt service with $1,900,000 from the Sales and Use Tax Fund." Director of Cultural, Library and Recreation Services Mike Powers gave a brief presentation on this item and spoke of debt reduction and the bidding process. He recommended Council adopt Option 3. 83 1 February 19, 1991 City Manager Steve Burkett commented on the City's financial condition and financial policies and recommended adoption of Option 3. Councilmember Azari made a motion, seconded by Councilmember Edwards, to adopt Ordinance No. 26, 1991 on First Reading. Assistant to the Director of Cultural,. Library and Recreation Services Jerry Brown, stated if SouthRidge was incorporated into the City's golf system it would result in a rate increase of 60% for annual passes and an estimated 33% in green fees. He reported on the need for and cost of improvements if the property were retained. Councilmember Horak requested a definition of the term "public golf course" Mr. Brown defined the phrase "public golf course" noting a membership is not required to use the course. Assistant City Attorney John Duval explained the term "exclusively" stating the course could only be operated as a public golf course. Bob Ehrlich, 1200 Carousel Drive, Windsor, Colorado, spoke of golf course statistics regarding green fees and the cost associated with running a golf course and stated he believed it would be in the best interest of the City to retain SouthRidge. Roger Sample, President. of the Golf Board, reported the Golf Board voted unanimously against the staff recommendation to sell SouthRidge adding if the demand for golf services increase in the future the replacement cost would be greater than the sale price. Chuck Patton, 1229 Teakwood Drive, asked Council not to postpone the issue but to make a final decision. Craig Carlisle, 918 Boltz Court, stated he believed it would not be in the best interest of the City to sell an asset that was more valuable than it was being sold for and urged Council to retain SouthRidge. Randy Swetzig, 5424 Fairway Six Drive, recommended the City take over the operation of the course, adding he would like to see a commitment by the City to improve and maintain SouthRidge. Bruce Lockhart, 2500 E. Harmony Road, encouraged the sale of SouthRidge to protect the credibility of the City. He stated the sale of the property would be the most expeditious way to increase the City's tax base. Steve Jouard, Golf Board member, opposed the staff recommend atiori'and questioned whether the sale was warranted and if the proposal should be accepted. 84 February 19, 1991 Kent Husenfelt, SouthRidge Golf Director, urged Council to adopt Option 3. Bill Neal, representing Accent Resources introduced the representatives for Accent Resources and briefly outlined what their intentions were upon the purchase of SouthRidge. Kent Goodman, representing Accent Resources, gave a brief explanation of Accent's philosophies and spoke of course reconfiguration possibilities as well as the addition of 9 holes. Councilmember Azari stated she believed it would be in the City's best interest to turn the management of SouthRidge over to a private manager and stated she supported the ordinance. Councilmember Winokur supported the ordinance and spoke of his concerns regarding rate increases and the current debt load of SouthRidge. He stated that if the need for an additional course should arise, the issue should be put to a public discussion and vote. Councilmember Edwards supported the ordinance and stated the sale would benefit everyone interested. Councilmember Horak opposed the sale of Southridge and disagreed with the value received versus the replacement value. He stated the City has never operated SouthRidge and felt there needed to be more Council discussion on the issue. Councilmember Mabry supported the ordinance and commended staff for their efforts. He requested additional information regarding the proceeds before the next Council meeting. Mayor Kirkpatrick stated she supported the ordinance and was pleased in the manner which it was addressed. The vote on Councilmember Azari's motion was as follows: Yeas: Councilmembers Azari, Edwards, Kirkpatrick, Mabry, Maxey and Winokur. Nays: Councilmember Horak. I" 251101 [f 611ikWRITN i11111 Councilmember Winokur made a motion, seconded ,by Councilmember Horak, to adopt Resolution 91-35 directing the use of'the proceeds from the sale of SouthRidge Golf Course for the purpose of retiring the corresponding amount of sales and use tax refunding and improvement bonds. City Manager Steve Burkett briefly outlined this item. IR I February 19, 1991 Councilmember Winokur made a motion to postpone consideration of Resolution 91- 35 until the March 5th meeting to be the first item relating to the sale of SouthRidge. The vote on Councilmember Winokur's motion was as follows: Yeas: Councilmembers Azari, Edwards, Horak, Kirkpatrick, Mabry, Maxey and Winokur. Nays: None. THE MOTION CARRIED. Ordinance No. 25, 1991, Amending Section 5-110 of the Code Pertaining to Solid Fuel Burning Appliances. Adopted on First Reading The following is staff's memorandum on this item. "EXECUTIVE SUMMARY If adopted, the ordinance would require that any new or remodeled fireplace must be a gas appliance, an electric device, or a certified wood stove insert. The ordinance also includes non -substantive changes that simplify Section 5-110 and make it internally consistent. ' The intent of the ordinance is to reduce future degradation of air quality by capping the amount of wood smoke from fireplaces at the current level. It does not ban all fireplaces, rather it requires that new fireplaces use clean -burning alternative fuels or be equipped with low -pollution technology. This requirement is parallel to the current requirement for new wood stoves, which can be installed only if they are equipped with )ow -pollution technology. This ordinance does not affect wood smoke from existing fireplaces and stoves, rather it seeks only to prevent the amount of smoke from increasing. Smoke from existing units will be addressed in future proposals. BACKGROUND: I. HISTORY OF THE FIREPLACE ORDINANCE. The presence of wood smoke in Fort Collins neighborhoods has been identified as a key air pollution issue facing the City. Wood smoke contains carbon monoxide, toxic compounds, and fine particles that can reach deep into the lungs. Wood smoke also contributes to the "brown cloud" sometimes seen over Fort Collins. About half the smoke comes from stoves, the other half from fireplaces. Staff prepared an issue paper in June 1987 recommending a three part program to reduce wood smoke in City neighborhoods: (1) public education, (2) technology improvements, and (3) regulation. A package of five Code amendments to implement ' the regulatory part of the program was considered by Council in November 1987 86 February.19, 1991 Ll and all but the one on natural gas fireplaces were adopted. The fireplace ordinance is being advanced for reconsideration at Council's request. Council members may recall that the original 1987 ordinance called for natural gas piping to be installed within three feet of any fireplace in new construction, thus creating a convenient option for later conversion. On reconsideration city staff no longer recommends this approach, because potential negative safety consequences outweigh its potential air quality benefits. The current proposal is acceptable from the safety standpoint, because it provides for installation of fully operational fireplaces and each one is inspected during home construction. The fireplace ordinance constitutes only one tool in the overall wood smoke program that Council reviewed in 1987. To place this tool in context, the full program is recapped below. WOOD SMOKE PROGRAM EDUCATION • Educate the public about clean burning techniques. (Implemented) Voluntary stove/fireplace restrictions on high pollution days, with exemption for Colorado certified stoves and natural gas fireplaces. (Implemented) TECHNOLOGY ' • Begin monitoring wood smoke -- the fine particles that cause the greatest health effects and visibility reduction. (Implemented) • Encourage stove/fireplace conversion to low -pollution technology through zero -interest loans. (Implemented) REGULATION • Limit building permits for stove installation to Colorado certified units. (Implemented) • Restrict new fireplaces to natural gas units (This proposal) Restrict visible smoke from residential chimneys to 40Y opacity. (Implemented) • Ban residential coal burning, with exception for existing units. (Implemented) Restrict open burning permits High Pollution Days. (Implemented by Larimer County Health Department) II. DISCUSSION. If this ordinance is not adopted, there will be further degradation of air quality to the extent new wood burning fireplaces are installed. Noting that new wood stoves are required to meet a low -pollution standard, not adopting this ordinance would continue an inconsistency in the treatment of these two smoke sources. Finally, without adoption the work of improving the city's air quality would be prolonged, because the contribution of fireplaces to pollution levels would continue to grow. 87 1 ' February 19, 1991 If this ordinance is adopted, the cost of some fireplaces would increase depending on the equipment installed. For example, it costs on the order of $500 to equip a conventional fireplace with a "gas log" set. Wood stove inserts cost in the range of $1,000 to $2,000. Electric appliances and gas appliances that need only a "Class B" flue avoid the cost of chimney construction and may actually reduce the cost of the fireplace. In some cases higher installation cost is offset by lower operating cost. For example, gas fireplaces cost less to operate than wood, and gas or electric fireplaces reduce housekeeping and chimney cleaning needs compared to wood (if the chimney sweep is paid $50 per annual cleaning, a gas fireplace pays for itself in 10 years). III. PUBLIC INPUT. Following is a summary of comments received. 1. The AIR QUALITY TASK FORCE recommended adoption of an ordinance along these lines in November 1990. They will review the text of the proposed ordinance at their February 13 meeting and will likely communicate a further recommendation to Council at that time. 2. The BUILDING REVIEW BOARD discussed the proposed ordinance on January 31, 1991. No formal recommendation was made, but two of the six members present stated they were opposed to the ordinance as drafted. Three issues were raised. ' (1) The City is over -coded. Non -code approaches should be exhausted first. (2) The ordinance does not go far enough, since it does not reduce smoke from existing units. Some members stated support for a wood burning ban on high pollution days and/or an incentive program to accelerate the turnover of stoves and fireplaces to lower -polluting units. (3) The ordinance will have little effect, because home builders are getting fewer requests for wood fireplaces anyway. In response to the third issue, staff is contacting builders to verify the trend in fireplace construction. Their responses are varied -- most homes are built with fireplaces, and gas appliances are being installed in some of these fireplaces, ranging from 15Z to 100% depending on the builder. Staff will provide more complete information at the Council meeting. 3. The NATURAL RESOURCES ADVISORY BOARD reviewed the matter on February 6 and voted unanimously to recommend adoption by City Council. 4. Senate Bill 115 contains language identical to the proposed ordinance, which would apply only to Denver Metro Counties. The HEWI Committee (Health, Education, Welfare, and Institutions) reported the bill favorably on February 6 after hearing supporting testimony from, among others, the COLORADO HOME BUILDERS ASSOCIATION and the WOOD HEATING ALLIANCE (the W.H.A. represents retailers and manufacturers of stoves and fireplaces nationally).' EM February 19, 1991 IV. STAFF RECOMMENDATION. Staff recommends adoption. The ordinance would reduce future degradation of air quality by requiring use of alternative technology. No life-style change is required. Added costs are incidental during construction. Staff is not persuaded by the argument that increased installation costs are unreasonable. A fireplace is a luxury. Its use is recreational and aesthetic, not for heating. Low -emission alternative technologies are available. Installation cost is offset by lower operating costs. Reducing the impact of smoke from new fireplaces is justified by the air quality problems facing our community." Councilmember Horak made a motion, seconded by Councilmember Winokur, to adopt Ordinance No. 25, 1991 on First Reading. Air Quality and Hazardous Materials/Waste Coordinator Brian Woodruff gave a brief outline of the ordinance and spoke of comments received from local builders. He clarified for Council the definition of solid fuel burning devices. Bill Eckert, Air Quality Control Task Force member urged Council to vote in favor of the ordinance and stated the Air Quality Control Task Force unanimously supported the ordinance. Councilmember Horak commented on the need for a feedback mechanism which would keep citizens time. informed and up-to-date regarding the air quality at any given ' Councilmember Winokur stated he was concerned with the financial status of the ZILCH Project and requested the City Manager to research the project and come back to Council with recommendations regarding what the City can do to assist with the continuing function of the program. The vote on Councilmember Horak's motion was as follows: Yeas: Councilmembers Azari, Edwards, Horak, Kirkpatrick, Mabry, Maxey and Winokur. Nays: None. THE MOTION CARRIED. Resolution 91-34 Making Appointments to the Community Development Block Grant Commission, Adopted The following is staff's memorandum on this item. EXECUTIVE SUMMARY At its September 4, 1991 meeting, Council adopted on second reading Ordinance No. 98, 1990 creating a Community Development Block Grant Commission. The Commission's duties, in part, are to advise the Council on matters pertaining to the Department of Housing and Urban Development's Community Development Block 99 I February 19, 1991 Grant (CDBG) Program and to provide recommendations to the Council concerning the expenditure of CDBG funds received from the Department of Housing and Urban Development. Following creation of the Commission, advertisements were placed and Councilmembers Kirkpatrick and Maxey conducted interviews. At its February 5, 1991 meeting, Council appointed 8 of the 13 positions on the Commission. Councilmembers Kirkpatrick and Maxey are now prepared to make recommendations for the remaining 5 positions and will announce those recommendations at this meeting." Mayor Kirkpatrick made a motion, seconded by Councilmember Maxey, to adopt Resolution 91-34 with the following names and dates inserted: Carolyn Early July 1, 1992 William Bertchy July 1, 1992 Joseph Zimlich July 1, 1993 Mary Clark July 1, 1993 Tom Byington July 1, 1993 The vote on Mayor Kirkpatrick's motion was as follows: Yeas: Councilmembers Azari, Edwards, Horak, Kirkpatrick, Mabry, Maxey and Winokur. Nays: None. THE MOTION CARRIED. Ordinance No. 22, 1991, Fixing the Salary of the City Manager. Adopted on First Reading The following is staff's memorandum on this item. EXECUTIVE SUMMARY City Council has met in Executive Session to conduct the performance appraisal of City Manager Steve Burkett. This Ordinance, which was postponed on First Reading on February 5, will establish the 1991 salary for the City Manager. Council needs to determine the dollar amount to be inserted in the Ordinance." Councilmember Edwards made a motion, seconded by Councilmember Mabry, to adopt Ordinance No. 22, 1991 inserting the amount of $80,200. The vote on Councilmember Edwards' motion'was as follows: Yeas: Councilmembers Azari, Edwards, Kirkpatrick, Mabry, Maxey and Winokur. Nays: Councilmember Horak. THE MOTION CARRIED. 1 90 February 19, 1991 1 Other Business Councilmember Horak made a motion, seconded by Councilmember Maxey, directing staff to prepare an agenda item with two options for dealing with the proliferation of non-native trees in Fort Collins: 1) a research program, or 2) process including an outreach program to nurseries and affected parties before an ordinance would be considered. Councilmember Horak emphasized the importance of addressing the problem of non- native trees before they take over open space areas, stating the take over would eventually change the tree composition in those areas. City Manager Steve Burkett clarified Councilmember Horak's intent was to more clearly define the problem and the process to ensure the right problem has been identified and to examine different solutions. The vote on Councilmember Horak's motion was as follows: Yeas: Councilmembers Edwards, Horak, Kirkpatrick, Mabry, Maxey and Winokur. Nays: Councilmember Azari. THE MOTION CARRIED. Councilmember Winokur made a motion, seconded by Councilmember Horak, to co- sponsor the Poudre R-1 VIP's celebration and provide in -kind services at no I charge to Poudre R-1. Assistant to the City Manager Julia Novak clarified the City could contract out the in -kind services and stated the expense would be absorbed by the City. Councilmember Edwards opposed the motion stating the Charter prohibits in -kind donations and expressed his concerns regarding co -sponsoring such a function. Mayor Kirkpatrick spoke in opposition to the motion. Councilmember Azari stated she supported the fundraising effort as a private citizen, however, -she did not believe it should be an obligation of the City. The vote on Councilmember Winokur's motion was as follows: Yeas: Councilmembers Horak and Winokur. Nays: Councilmembers Azari, Edwards, Kirkpatrick, Mabry and Maxey. THE MOTION FAILED. 91 1 Adjournment The meeting adjourned at 10:15 p.m. ATTEST: 92 Mayor February 19, 1991