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HomeMy WebLinkAboutMINUTES-10/02/1984-RegularOctober 2, 1984 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council -Manager Form of Government Regular Meeting - 5:30 p.m. A regular meeting of the Council of the City of Fort Collins was held on Tuesday, October 2, 1984, at 5:30 p.m. in the Council Chambers in the City of Fort Collins City Hall. Roll call was answered by the following Coun- cilmembers: Clarke, Elliott, Knezovich, Ohlson, Rutstein, and Stoner. Councilmembers Absent: Mayor Horak Staff Members Present: Shannon, Huisjen, M. Davis, Widmer, Harmon, C. Smith, Hays, Powers Agenda Review: City Manager Deputy City Manager Shannon noted that television monitors had been in- stalled at the Council tables and are operational. Councilmember Ohlson withdrew Item #10, Hearing and First Reading of Ordinance No. 138, 1984, Appropriating Unanticipated Revenue in the ODA Fund to Assist in Funding a Feasibility Study on the Use of the Old Power Plant, from the Consent Calender. Councilmember Elliott requested that Item #14, Resolution Authorizing the Purchase of Real Estate for the Construction of a Regional Stormwater Detention Facility at the Taft Hill Road/Prospect Intersection, be with- drawn from the Consent Calendar. Consent Calendar This Calendar is intended to allow the City Council to spend its time and energy on the important items on a lengthy agenda. Staff recommends approval of the Consent Calendar. Anyone may request an item on this calendar be "pulled" off the Consent Calendar and considered separately. Agenda items pulled from the Consent Calendar will be considered separately under Agenda Item #37, 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 dis- cussed immediately following the Consent Calendar. 4. Consider Approving the Minutes of the Regular Meetings of September 4 and September 18. -200- 5 7. October 2, 1984 Second Reading of Ordinance No. 132, 1984, Appropriating Prior Year Reserves in the Communications Fund. This Ordinance was unanimously adopted on First Reading at the Sep- tember 18 meeting. During the remodeling of City Hall East, the City will lease office space in Block 31. However, no telephone or data line service cur- rently exists between Block 31 and City offices. It would cost the City approximately $12,000 to $15,000 over a seven month period to lease temporary lines and service from Mountain Bell. Ongoing monthly service -- past the seven month remodeling completion date -- would continue to cost $700 per month. Because we anticipate the use of some office space in Block 31 after the City Hall East is renovated, the decision was made to install our own permanent communication lines between City Hall and Block 31. The total cost of this project is approximately $28,000. Second Reading of Ordinance No. 133, 1984, Appropriating Funds from Storm Drainage Fund Prior Year Reserves for Transfer to the Capital Projects Fund for the Canal Importation Basin. This Ordinance was adopted unanimously on First Reading on September 18. The Canal Importation Basin had available appropriations for 1984 expenditures in the amount of $225,000. Additional expenditures are expected in 1984, creating a shortfall in appropriations of $255,000. Thus, an appropriation of prior year reserves is required to cover this anticipated shortage. Second Reading of Ordinance No. 134, 1984, Appropriating Unanticipated Revenue from the Mineral Severance Tax Fund Program to the Poudre Fire Authority Fund. This Ordinance was unanimously adopted on First Reading at the Sep- tember 18 meeting. Earlier this month, the City received $1,600 from the State's Mineral Severance Tax Fund Program. This program allocates money to local governments based on the number of energy related employees who reside in each jurisdiction. Revenue received under this program may be used for capital and general operating expenses. In 1984, staff recommends again providing the funds received from this program to the PFA's HMRT. The $1,600 will be used by the HMRT for the purchase of ten 30 minute video tapes and instructional booklets on "The Chemistry of Hazardous Materials". -201- 1 October 2, 1984 8. Second Reading of Ordinance No. 135, 1984, Vacating Easements and ROW at Cimarron West PUD. This Ordinance was unanimously adopted on First Reading at the Sep- tember 18 meeting. The developer, T. D. Murphy, is requesting that all easements and rights -of -way be vacated on the subdivision. The property was re - platted and approved by the Planning and Zoning Board July 23, 1984. All easements and rights -of -way have been relocated on the replat. All affected utilities have been contacted and have indicated no problems with the request. 9. Hearing and Mayor on be governmenta the Poudre R First Reading of Ordinance No. 137, 1984, Authorizing the alf of the City of Fort Collins to execute an Inter - Agreement with Larimer County for the Reconstruction of ver Bridge The City Council of Fort Collins has discussed with the Larimer County Commissioners the reconstruction of the Poudre River Bridge on Pros- pect to a four lane width instead of a two lane width as it presently is. The County Commissioners have been receptive to such a proposal. Staff has prepared an Intergovernmental Agreement between the City and the County on the terms of joint participation in the proposed pro- ject. The estimated cost of the proposed bridge is $1,200,000. 10. Hearing and First Reading of Ordinance No. 138, 1984, Appropriating Unanticipated Revenue in the DDA Fund to Assist in Fundin a Feasi- bility Study on the Use of the Old Power Plant. The Downtown Development Authority, in conjunction with Light and Power and the Poudre River Trust, desires to assist in funding a feasibility study to determine the advisability of converting the Old Power Plant to a Visual Arts Center. Representatives from the Denver Art Museum, the Colorado Council on the Arts and Humanities, and from the Business Committee for the Arts, Inc., an organization founded by the Rockefellers and based in New York City, have all expressed their interest in and support for this project. Council authorized appro- priation of CDBG funds for a land use plan along the River from the Power Plant to Lemay. The feasibility study will enhance that endeavor by providing the basis on which grant applications may be made and interested parties involved in the development of the project. -202- October 2, 1984 11. Hearing and First Reading of Ordinance No. 139, 1984, Appropriating Unanticipated Revenues of 7,000 in the Transportation Fund for the SAINT Program. The purpose of this ordinance is to appropriate $7,000 of unantici- pated grant funds in the Transportation Fund for the SAINT program. In May, 1984, the Senior Alternative in Transportation (SAINT) Program applied for a grant from the Larimer County Area Office on Aging (Title III) to provide funds for continued program operation. SAINT is a volunteer transportation service, matching seniors (60+) in need of transportation with volunteer drivers. Formal award of this grant in the amount of $7,000 has been received. This grant will provide SAINT with adequate funding to operate through January, 1985. An additional $6,500 for the SAINT program, effective January, 1985, is being recommended by the Larimer County Department of Human Resources. This recommendation is subject to the approval of the Larimer County Commissioners and the Fort Collins City Council. 12. Hearing and First Reading of Ordinance No. 140, 1984 Appropriating $73,500 from Prior Year Reserves in the General Fund for Transfer to the Conservation Trust Fund. In April of this year, Council authorized borrowing from Lottery Funds for two flood control projects - protection of the Shields Street Bridge and protection of Legacy Park. On May 1, 1984, Council adopted Ordinance 57, 1984, as an emergency ordinance, authorizing the trans- fer of $70,000 from the Conservation Trust Fund to the Seven Year Capital Fund for these projects. The ordinance also stated that the money would be repaid to the Conservation Trust Fund from the General Fund in 1984 if possible. This ordinance appropriates funds from prior year reserves in the General Fund to repay the $70,000 plus $3,500 in interest to the Conservation Trust Fund. 13. Hearing and First Reading of Ordinance No. 141, 1984, Authorizingthe Issuance of Landmar Special Improvement District No. 80, Special Assessment Bonds Dated November 1, 1984 in the Aggregate Principal Amount of S3 5.000. The Landmark Special Improvement District No. 80 was formed by Ordi- nance No. 132, 1983 and approved on Second Reading October 18, 1983. The First Interstate Bank of Fort Collins has agreed to purchase the entire issue at a fixed interest rate of 10.10%. -203- October 2, 1984 14. Resolution Authorizing the Purchase of Real Estate for the Construc- tion of a Regional Stormwater Detention Facility at the Taft Hill Road/Prospect Intersection. The Canal Importation Basin Master Plan recommends the construction of a regional stormwater detention facility at the southwest corner of the Taft Hill Road and Prospect intersection. This regional drainage improvement is necessary to reduce peak flows downstream, limiting the size and cost of downstream channel and bridge improvements. The City currently owns a small pond at the intersection. An addi- tional 8.83 acres of right-of-way is needed to develop a pond with sufficient detention storage. In conjunction with the special improvement of Fairbrooke, the City acquired an option on the 8.83 acre parcel from Wheeler Realty. The purchase price was to be $20,000/acre or fair market value, whichever was less. Staff has determined fair market value is greater, so the $20,000/acre applied. The City gave_ $10,000 consideration for the option to be applied toward purchase if the option was exercised. The balance of the purchase price is therefore $166,600. Ordinances on Second Reading were read by title by Molly Davis, Deputy City Clerk. Item 5. Second Reading of Ordinance No. 132, 1984, Appropriating Prior Year Reserves in the Communications Fund. Item #6. Second Reading of Ordinance No. 133, 1984, Appropriating Funds from Storm Drainage Fund Prior Year Reserves for Transfer to the Capital Projects Fund for the Canal Importation Basin. Item q7. Second Reading of Ordinance No. 134, 1984, Appropriating Unanti- cipated Revenue from the Mineral Severance Tax Fund Program to the Poudre Fire Authoritv Fund. Item q8. Second Reading of Ordinance No. 135, 1984, Vacating Easements and ROW at Cimarron West PUD. Ordinances on First Reading were read by title by Molly Davis, Deputy City Clerk. Item N9. Hearing and First Reading of Ordinance No. 137, 1984, Authorizing the ayor on be a tt 0 it o t Collins to execute an ntergovernmental greement with or County for the Recon- struction of the Poudre River Bridge at Prospect. -204- Item 910. Hearin ating a Feasi Item N11. Hearin( ating U for the October 2, 1984 and First Reading of Ordinance No. 138, 1984, Appr anticipated Revenue in the DDA Fund to Assist in Fu lity Study on the Use of the Old Power Plant. and First Reading of Ordinance No. 139, 1984, Appr nticipated Revenues of 7,000 in the Transportation rouram. ri- ino ri- und Item Al2. Hearing and First Reading of Ordinance No. 140, 1984 Ap ro ri- ating7 , 00 from Prior Year Reserves in the General Fund for ransfer to the Conservation Frust Fund. Item N13. Hearing and First Reading of Ordinance No. 141, 1984, Authorizing the Issuance of Landmark SpecialImprovement District No. 80, Special Assessment Bonds Dated November 1, 1984 in the Aggregate Principal Amount of $315,000. Councilmember Knezovich made a motion, seconded by Councilmember Ohlson, to adopt and approve all items not removed from the Consent Calendar. Yeas: Counci]members Clarke, Elliott, Knezovich, Ohl son, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Ordinance Appropriating Unanticipated Revenue in the DDA Fund to Assist in Funding a Feasibility Study on the Use of the Old Power Plant, Adopted on First Reading Following is the staff's memorandum on this item: "The Downtown Development Authority, in conjunction with Light and Power and the Poudre River Trust, desires to assist in funding a feasibility study to determine the advisability of converting the Old Power Plant to a Visual Arts Center. Representatives from the Denver Art Museum, the Colorado Council on the Arts and Humanities, and from the Business Committee for the Arts, Inc., an organization founded by the Rockefellers and based in New York City, have all expressed their interest in and support for this project. Council authorized appropriation of CDBG funds for a land use plan along the River from the Power Plant to Lemay. The feasibility study will enhance that endeavor by providing the basis on which grant applications may be made and interested parties involved in the development of the project." Councilmember Knezovich made a motion, seconded by Councilmember Rutstein, to adopt Ordinance No. 138, 1984 on First Reading. -205- 1 October 2, 1984 Councilmember Ohl son asked about procedures for bidding future major work on this project, noting that the Poudre River Trust had selected ZVFK, EDAW, and A-E Design to do the preliminary work. Bill Kingsbury, ODA Director, replied that efforts have been made to get the project moving to obtain yrants and community involvement. He stated that the City's Capital Projects system includes the bidding and selection process for major projects. Councilmember Knezovich noted that he would withdraw from the discussion and would withdraw his motion because of a possible conflict of interest. Councilmember Rutstein made a motion, seconded by Councilmember Elliott, to adopt Ordinance No. 138, 1984 on First Reading. Rosalyn Spencer, Project Director, stated the expectation is that the Visual Arts Center would not be funded by tax dollars. The vote on Councilmember Rutstein's motion to adopt Ordinance No. 138, 1984 on First Reading was as follows: Yeas: Councilmembers Clarke,. Elliott, Ohlson, Rutstein, and Stoner. Nays: None. (Councilmember Knezovich withdrawn) THE MOTION CARkIED. Resolution Autho rizing the Purchase of Real Estate for the Construction of a Regional Stormwater Detention Facility at the Taft Hill Road/ Prospect Intersection, Adopted Following is the staff's memorandum on this item: "The Canal Importation Basin Master Plan recommends the construction of a regional stormwater detention facility at the southwest corner of the Taft Hill Road and Prospect intersection. This regional drainage improvement is necessary to reduce peak flows downstream, limiting the size and cost of downstream channel and bridge improvements. The City currently owns a small pond at the intersection. An additional 8.83 acres of right-of-way is needed to develop a pond with sufficient detention storage. In conjunction with the special improvement of Fairbrooke, the City ac- quired an option on the 8.83 acre parcel from Wheeler Realty. The purchase price was to be $20,000/acre or fair market value, whichever was less. Staff has determined fair market value is greater, so the 320,000/acre applied. -206- October 2, 1984 The City gave $10,000 consideration for the option to be applied toward purchase if the option was exercised. The balance of the purchase price is therefore $166,600. Funds for this right-of-way acquisition have been appropriated in the Canal Importation Basin from prior year reserves. Basin fees collected from monthly utility fees and new developments will replace these reserves in the future. GRANTOR: Wheeler Realty Company CONSIDERATION: $176,600 ($20,000 per acre. $10,000 has been given for the option, to be applied toward purchase.) LOCATION: Southwest corner of the Taft Hill Road and Prospect intersec- tion." Councilmember Stoner made a motion, seconded by Councilmember Ohlson, to adopt Resolution 84-145. Councilmember Elliott asked if the $20,000 price was determined by apprai- sal. City Engineer Tom Hays stated the City's right-of-way agent determined the price is reasonable for the type of property and location, compared to similar properties. Councilmember Rutstein asked where the funding would come from for this purchase. Tom Hays stated funding would come from the Storm Drainage Fund, since this is a regional detention pond. The vote on Councilmember Stoner's motion to adopt Resolution 84-145 was as follows: Yeas: Councilmembers Clarke, Elliott, Knezovich, Ohlson, Rut- stein, and Stoner. Nays: None. THE MOTION CARRIED. Ordinance Authorizing the Issuance of Downtown Development Authority Tax Increment Bonds in the Amount of $8,200,000, Adopted on First Reading Following is the staff's memorandum on this item: -207- October 2, 1984 "The bonds are currently sized at $8,200,000, including a $1,000,000 Reserve Fund, Capitalized Interest, and MBIA Insurance that will give the bonds an AAA rating. The AAA rating could potentially lower the interest rate on the bonds one and one-half percentage points. Such a savings from 11-112% interest to.10% interest would result in a total interest savings over 20 years of $2,082,000 for the anticipated premium of approximately S172,000 for the MBIA Insurance. In order to obtain the MBIA insurance, the City is required to provide the insurer with some additional coverages due to the relative newness of the DDA and lack of an existing track record in the debt market. After one-on-one discussions with the analyst at MBIA, we agreed to provide additional coverage for any short -fall in the tax increment proceeds on a year -by -year basis from Sales and Use Tax reve- nues. This additional guarantee is in the form of a subordinate claim against the Sales and Use Tax revenues as long as the City's debt coverage remains at least five to one. Should the City's debt coverage with Sales and Use Tax drop below five to one, the guarantee would become a parity lien, of the same standing as our existing Sales and Use Tax bonds. We do not anticipate our debt coverage being lower than five to one Additionally, the City's guarantee ceases to exist when the Downtown Development Authority achieves a 1.5 to 1 debt coverage for two consecutive fiscal years. Any advances the City makes toward debt service payments could be refunded to the City when the Reserve Fund had again achieved a $1,000,000 balance. Due to the way the Downtown Development Authority is structured, they collect their tax increment monies as long as they have obligations out- standing. Should the unlikely event occur that the City has to advance monies to meet a debt service payment, and the Downtown Development Au- thority is not able to reimburse the City during the life of the bond issue, any monies advanced after the bonds are retired would continue to be an obligation of the Downtown Development Authority and, therefore, payable out of tax increment monies. Also incorporated in the Bond Ordinance is a convenant that the Downtown Development Authority will issue no parity obligations until their debt service coverage is 1.5 to 1 for two consecutive years. In essence, this means that in order for the DDA to issue additional Parity Lien Bonds against the tax increment monies, the City's obligation to support their debt service would have ceased to exist. Due to the City's limited exposure by providing the additional revenue guaranteed in order to obtain a potential $2,000,000 savings in total interest, which quite possibly could be utilized to complete additional projects in the DDA area, we feel the structure of the Bond Ordinance is advantageous to all parties. -208- The interest rates on the bonds will October 2, 1984 have to be read the evening of the Council meeting as an amendment to the Ordinance, as is our normal prac- tice." Councilmember Rutstein made a motion, seconded by Councilmember Knezovich, to adopt Ordinance No. 149, 1984 on First Reading. Finance Director Jim Harmon stated that this is the first insured tax increment bond issue in the nation. He stated the net effective interest rate would be 10.417%. Dave Dwyer, bond counsel, read changes to be inserted in the Ordinance. Councilmember Knezovich asked if the first interest payment would be due on November 1, 1984. Mr. Dwyer stated the interest payments will commence on May 1, 1985 and interest accrues beginning October 1, 1984. The vote on Councilmember Rutstein's motion to adopt Ordinance No. 149, 1984 on First Reading was as follows: Yeas: Councilmembers Clarke, Elliott, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Councilmembers' Reports Councilmember Rutstein complimented staff on the excellence of the Creati- vity Conference. Councilmember Knezovich reported on the PRPA budget hearing to be held on October 25 to receive public input. He also reported on the sales tax simplification issue before the State Legislature. Assistant Mayor Clarke reported that Transfort ridership has exceeded the goal. He also reported on an award he received from the Secretary of Energy on behalf of the City for energy innovation in 1984. Assistant Mayor Clarke asked about the street rehabilitation program. Deputy City Manager Shannon commented on the slurry and chip seal projects for local streets. Staff is recommending reducing the size of the rock used next year, and will be evaluating both treatments to assess their effectiveness over the winter months. Councilmember Knezovich reported on complaints he has received about the chip seal program. ' -209- 1 1 I October 2, 1984 Assistant Mayor Clarke commented on calls he has received and stated he would hope that improvements will be made. Secretary's Note: Assistant Mayor Clarke recessed the meeting at this point and a meeting of the Board of Directors of GID #1 was conducted and adjourned.) Citizen Participation A. Proclamation Naming October 7-13 as Minority Enterprise Development Week. Assistant Mayor Clarke requested the Proclamation be forwarded to the appropriate person. B. Proclamation Naming October as Toastmistress Month. Assistant Mayor Clarke requested the Proclamation be forwarded to the appropriate person. C. Proclamation Naminq October as Crime Prevention Month. The Proclamation was read by Assistant Mayor Clarke and received by "McGruff", the national symbol of crime prevention. D. Proclamation Naming the Week of October 7-13 as Fire Prevention Week. Assistant Mayor Clarke read the Proclamation, which was received by Larry Donner of the Poudre Fire Authority. E. Special recognition to Employee Development employee, Joyce Kelly, for her efforts in planning and organizing the recent creativity conference. Employee Development Director Mike Powers presented a slide show concerning the conference. He stated the City earned $3,400 from the conference to be used for training purposes and recognized Joyce Kelly for her contributions to the success of the conference. Linda Hopkins, Board member of Larimer Community Services, reported on the donation of $100,000 from Anheuser-Busch for the Larimer Community Services facility project. She thanked the Council and others who have contributed to the project. Bruce Lockhart, 2500 East Harmony Road, noted that he had comments re- garding Agenda Item #10, Hearing and First Reading of Ordinance No. 138, 1984, Appropriating Unanticipated Revenue in the DDA Fund to Assist in Funding a Feasibility Study on the Use of the Old Power Plant, which he -210- October 2, 1984 ' did not have an opportunity to voice prior to approval of the Ordinance. He asked about actual costs to the City, the possiblity of selling the power plant, and expenditures for design work before completion of a feasibility study. He also questioned the benefit of this project for the community and the expenditure of funds by the City Manager's office for the project. Assistant Mayor Clarke stated the project would enhance the downtown and Poudre River area, and he noted that the City Manager may authorize expen- ditures up to $20,000 without Council approval. He also stated that the feasibility study also looks at the feasibility of design. Councilmember Knezovich stated that the City had attempted to sell the building and had not succeeded. Public Hearing on Proposed 1985 Budget Assistant Mayor Clarke noted this is the second formal public hearing on the 1985 Budget. Deputy City Manager Shannon highlighted the budget process, which included a goal setting retreat, budget work sessions, neighborhood meetings, and formal budget hearings. Budget and Research Officer Silvija Widmer presented an overview and summary of the 1985 Budget. Bruce Lockhart, 2500 East Harmony Road, asked about the availability of the budget document, the construction budget for low income housing, and funding for operations and maintenance costs for the new pool/ice rink facility. Silvija Widmer stated that copies of the budget are available. Councilmember Knezovich noted that efforts were made to attract public input on the budget by holding neighborhood meetings and that budget information has been made available. Silvija Widmer stated that the budget includes $162,500 of Revenue Sharing funds for low income housing, and $100,000 of Revenue Sharing funds will be carried over from 1984 for rental subsidies. She also noted that opera- tions and maintenance costs for the pool/ice rink facility will be identi- fied and funded each budget year. Deputy City Manager Shannon noted that the pool/ice rink facility will be funded from the 1/4� sales tax. I -211- October 2, 1984 Councilmember Knezovich commented that the proposed budget policies include Revenue Policy 2.2 on sales and use tax distribution, setting aside excess revenue to fund operations and maintenance costs and to reduce the property tax. Assistant Mayor Clarke declared the public hearing closed. Resolution Adopting the Financial and Management Policies Relating to the 1985 Budget, Adopted Following is the staff's memorandum on this item: "The 1984 Budget included 26 financial and management policies which were used in developing that budget. These policies were also used in developing the 1985 Budget. In order to make the financial and management policies a more usable document, the format has been revised for 1985 - to group policies together in similar categories, as shown in the index to the policies. In this way, future policies which may be developed can be easily incorporated. In addition, the 1985 policies have been expanded to include information contained in the City Council Policies Handbook, and City Charter, as well as new policies determined by Council during the 1985 Budget process. With the inclusion of this additional material, the Financial and Management Policies adopted with the 1985 Budget will function as a stand-alone reference document compiling all such existing policies. The additions and changes are highlighted below: I.1. Form of Government I.2. City Council I.3. City Manager I.4. Budget These sections are new -- added to give reference information on the structure and functions listed. I.5. Categorization of Services "Airport" has been dropped, since there is an autonomous Fort Collins - Loveland Airport Authority and the City only contributes toward debt service to the Authority under a contractual arrangement. II.2. Sales & Use Tax Distribution Revised to incorporate voter -approved tax increases and clarified to reflect actual distribution, based on coverage of fixed costs before percentage allocations. -212- October 2, 1984 II.3. General Fund Fees and Taxes New section -- added to emphasize that such fees and taxes are examined annually. III.2. Affordable Housing New section -- outlines Council's direction in the 1985 Budget to incor- porate a rental subsidy program, as well as a construction program, for low-income families in the City. III.4. Buildinq Maintenance Costs New section -- outlines Council's direction in the 1985 Budget to classify maintenance into categories and priorities, and to initiate a Building Maintenance Audit, leading to a viable Building Improvement program for the City. III.5. Energy Revised section -- updated to describe current programs more fully. III.6. Improvement Districts New section -- summarizes Council's policies, as adopted on June 5, 1984, relating to Improvement Districts. III.9. Open Space & Trails -- Acquisition & Development Revised section -- updated to reflect 1985 Budget funding for these expen- ditures. III.10. Payment -in -Lieu -of -Taxes Revised section -- clarifies that City utilities pay a PILOT fee equal to one and one-half times the rate that would be charged to privately owned utilities. III.12. Performance Pay Plan Revised section -- reflects Council's direction in the 1985 Budget that an evaluation of the existing classification system is desirable, as is fine-tuning of the performance based pay system. The 1985 study will provide a basis to explore the issue of comparable worth. -213- 1 1 III.13. Poudre Fire Authority - Revenue Allocation Formula New section -- this resolution was included here for easier reference PFA. III.14. Rebate Programs October 2, 1984 formerly adopted separately. It is regarding the City's funding of the Revised section -- reflects Council's direction in the 1985 Budget to establish a Sales Tax Rebate on Food Program. III.15. Transfort Revised section -- reflecting 1985 Budget financial information. Does not include a specific percentage goal for improvement of ridership. IV. Reserve Policies Revised section -- deletes Utilities' policies, which are described in later sections in more detail. VII. Capital Improvement Policy Revised section -- incorporates references to voter -approved Sales Tax increases in the 1985 Budget, clarifies financing mechanisms, and adds method used in determining priorities for capital projects. VIII.2. Light and Power Utility New section -- describes policies specifically related to the Light and Power Utility. VIII.4. Storm Drainage Fund Revised section -- expands descriptions of policies relating to the Storm Drainage Fund. VIII.5. Cultural Services & Facilities Fee Policy Revised section -- deletes reference to Avery House rentals, since Avery House is being renovated and is not available for rental. Tax Reform Program This section has been deleted as unnecessary for the 1985 Budget financial and management policies section. Council passed Resolution 83-174 adopting this program and research will continue on this program during 1985. -214- October 2, 1984 This resolution formally adopts the City's financial and management poli- cies relating to the 1985 Budget." Councilmember Knezovich made a motion, seconded by Councilmember Rutstein, to adopt Resolution 84-146. Councilmember Knezovich made a motion, seconded by Councilmember Ohlson, to amend Resolution 84-146 to change the final sentence in policy II.5 Private Contributions to read: "Therefore, efforts should be made to secure private contributions in support of these programs and services as these contributions are an integral part of their successful operation." Yeas: Councilmembers Clarke, Elliott, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Councilmember Knezovich made a motion, seconded by Councilmember Stoner, to amend Resolution 84-146 by changing the last paragraph in part III.2 Affordable Housing to read as follows: "Based upon the availability of federal funding, the City will provide the Housing Authority with funds to support a program to construct housing for low-income families in the City." Rev. Ted Nutting, First United Methodist Church, questioned the intent of the amendment. Councilmember Knezovich stated the intent is to delete funding for rental subsidy and to limit funds for construction. Rev. Nutting expressed concerns about limited resources to meet the needs of the new poor for housing. Jim Aldrich, Catholic Community Services Northern, spoke against the amendment and stated that rental subsidy is needed. Councilmember Knezovich stated that the City has minimal expertise in the area of rental subsidy and that administrative costs would be high. He commented that federal tax policies provide opportunities for developers to participate in low income housing projects, and that the City has supported IDRB programs to support low and moderate income housing. He also stated that rental subsidy is beyond the scope of City services and would compete with other agencies. He further stated that expenditures for rent subsi- dies would not significantly impact the housing problem. Councilmember Elliott opposed the amendment and supported the use of available federal funds. -215- October 2, 1984 Councilmember Ohlson noted the program would be administered by the Housing Authority and would focus on helping low income families with incomes of less than $6,000/year who need help the most. He supported the program as one within the scope of City services and as a joint effort to help other agencies try to alleviate housing problems. Councilmember Rutstein commented that other agencies need help from other sources and that the program would be worthwhile if even a few families could be helped. Assistant Mayor Clarke stated that this program would provide additional options to agencies attempting to meet housing needs. The vote on Councilmember Knezovich's motion to amend part III.2 of the Resolution was as follows: Yeas: Councilmember Knezovich. Nays: Coun- cilmembers Clarke, Elliott, Ohlson, Rutstein, and Stoner. THE MOTION FAILED. The vote on Councilmember Knezovich's motion to adopt Resolution 84-146 with the amendment to part II.5 was as follows: Yeas: Councilmembers Clarke, Elliott, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Councilmember Stoner requested that Item #24, Hearing and First Reading of Ordinance No. 144, 1984, Authorizing Amendment of Section 95-90 of the Code Relating to the Annual Review of Fees for Street Oversizing, and Item #25, Hearing and First Reading of Ordinance No. 145, 1984, Amending Chapter 112 of the Code Relating to Service Charges for Water and Sewer Service, be pulled from the Budget Consent Agenda. Councilmember Knezovich asked that Item #22, Hearing and First Reading of Ordinance No. 142, 1984, Amending Section 82-3 of the Code of the City of Fort Collins Relating to Parkland Fees, and Increasing the Amount of Said Fees to $625 for 1985, be pulled from the Budget Consent Agenda. Budget Consent Items Items 22 - 30 are being presented together in the Consent Calendar format. These items have been reviewed and discussed at budget work sessions and are being presented in this manner to expedite their adoption. As with the regular Consent Calendar, any item may be withdrawn for discussion by any member of the Council, staff or public and will be considered after the balance of the Budget Consent is adopted. -216- October 2, 1984 22. Hearing and First Reading of Ordinance No. 142, 1984, Amending Section 82-3 of the Code of the City of Fort Collins Relating to Parkland Fees, and Increasing the Amount of Said Fees to 625 for 1985. The Parkland Fund receives a fee from developers for each new dwelling unit established within the City limits. These fees are to be used primarily for the acquisition and development of neighborhood parks in those areas that are contributing to the Parkland Fund. 23. Hearing and First Reading of Ordinance No. 143, 1984, Amending Chapter 93 of the Code of the City of Fort Collins Relating to Storm Drainage es. This ordinance establishes the 1985 rate for the monthly, City-wide operations and maintenance utility fee. It also sets the 1985 rates for the monthly capital improvements utility fees in nine drainage basins. The Storm Drainage Board has reviewed the proposed 1985 Storm Drainage Fund budget and recommended adoption. 24. Hearing and First Reading of Ordinance No. 144, 1984, Authorizing Amendment of Section 95-90 of the Code Relating to the Annual Review of Fees for Street Oversizinq. Staff presented Council with a Policy Analysis for Street Oversizing last year as part of the 1984 Budget process, recommending a gradual increase in the fees over a period of five years. Council approved the concept of the proposed gradual increases at that time. The table below shows the present fees, the recommended 1985 fees, and the proposed increases over the next four years. CATEGORY RESIDENTIAL COMMERCIAL INDUSTRIAL Present $ 247/D.U. $4,014/Grass Acre $1,007/Gross Acre FEES RECOMMENDED 1985 1986 1987 1988 249 250 252 253 4,528 5,041 5,555 6,069 1,514 2,020 2,527 3,034 25. Hearing and First Reading of Ordinance No. 145, 1984, Amendin Chapter 112 of the Code Relating to Service Charges for Water an Sewer Service. The Recommended 1985 Budget, as presented, includes no increase in monthly sewer service fees, an increase in monthly water service fees of approximately ten (10) percent, and an increase in both the water and sewer plant investment fees ranging from eighteen (18) to twenty- two (22) percent. October 2, 1984 26. Resolution Adopting 1985 Recreation Division Fees and Charges. The 1985 Recreation Division Fees and Charges Schedule remains con- sistent with the Parks and Recreation Fees and Charges policy adopted by City Council with the 1985 Budget, wherein the Recreation Division is required to recover a minimum of 50 percent of its total cost in revenue generated through fees and charges. It is projected that the Recreation Division will recover approximately 51 percent of its total cost in 1985. 27. Resolution Adopting 1985 Fees and Charges Schedule for City Park Nine" and Collindale Golf Courses. The Golf Board, at its regular meeting held on September 19, 1984, thoroughly reviewed, approved, and unanimously recommended adoption of this resolution, adopting the 1985 Fees and Charges Schedule for City Park Nine and Collindale Golf Courses. The recommendation is that we do not increase any golf fees and charges for 1985. 28. Resolution Adopting the 1985 Fees and Charges Schedule for Municipal Cemeteries. To satisfy cost recovery policies set by Council, cemetery user fees for 1985 are recommended to be increased by an average of 10 percent. The Cemetery Fund restructured its fees beginning in October 1983, with the goal of increasing operating revenue to reduce the General Fund subsidy. Through July, revenues are up $11,000 over our original projections. We have experienced more funerals in 1984 (as compared to 1982 and 1983), and an increase in "pre -need" sales. The recom- mended 10 percent increase in fees is consistent with the 1985 Recom- mended Budget Document. 29. Resolution Authorizing the Adoption of a Rate Schedule for the Use of Lincoln Center Facilities. The purpose of this resolution is to establish the fee structure for rental of Lincoln Center facilities. Rates for 1985 have been set to stay competitive with other local rental facilities while taking into consideration the nature of the Lincoln Center users and character of the different rooms available. 30. Resolution Adopting the 1985 Transfort Fares. This resolution increases Trans fort fares for 1985 as follows: -218- October 2, 1984 1984 Fee 1985 Fee Regular Fare $ .50 $ .55 Senior Citizen Non -Peak .25 .25 10-Ride Pass 4.00 4.50 Monthly Pass 15.00 16.00 Senior Citizen Annual Pass 10.00 15.00 Handicapped Annual Pass 10.00 15.00 Monthly Commuter Pass 8.00 9.00 Monthly Youth Pass 10.00 10.00 Children 5 and Under Free Free Annual Farebox Revenue CSU Contract* Total Operating Revenue Projected 1984 1985 $102,000 $112,200 165,453 182,160 *Based on a fee of $3.00/full-time student/semester in 1984 and $3.30/full-time student/semester beginning spring semester, 1985, which was proposed by the City and voted on by the CSU student body. Ordinances on First Reading were read by Molly Davis, Deputy City Clerk. Item #22. Hearing eS'i o n aP TT'anc Item #23. Hearing Chapter Storm Dr Item #24. Hearin Amendn Review and First Reading of Ordinance No. 142, 1984, Amendin - o t e ode of t o �tv of Fort o ins e atinq t ees C1G�Z:I:ie1 and First Reading of Ordinance No. 143, 1984, Amending 93 of the Code of the City of Fort Collins Relating to nape tees. and First Readi it of Section T Fees for Stre of Ordinance No. 144 -90 of the Code Re] Oversizinq. 1984, Authorizin i., *� rho Item #25. Hearing and First Reading of Ordinance No. 145, 1984, Amendin de ati Chapter 112 of the CoRelng to Service Charaes for Water an z)ewer )ervice. Councilmember Knezovich made a motion, seconded by Councilmember Stoner, to approve the Budget Consent Agenda with the exception of the items pulled for discussion. Yeas: Councilmembers Clarke, Elliott, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. -219- 1 0 October 2, 1984 Ordinance Amending Section 82-3 of the Code of the City of Fort Collins Relating to Parkland Fees, and Increasing the Amount of Said Fees to $625 for 1985, Adopted on First Reading Following is the staff's memorandum on this item: "The Parkland Fund receives a fee from 'developers' for each new dwelling unit established within the City limits. These fees are to be used pri- marily for the acquisition and development of neighborhood parks in those areas that are contributing to the Parkland Fund. The City of Fort Collins Parkland Fund was created by Ordinance in Sep- tember 1969. The initial fee was set at $40 per new dwelling unit, and was to be used for Parkland acquisition only (not development). In September 1972, an Ordinance was passed to allow the monies in the fund to be spent on the development of parklands, as well as the acquisition of park- lands; and the fee was increased to $195 per each new dwelling unit. Since 1972, the fee was increased to $235 in 1976; $250 in 1977; $275 in 1978; $450 in 1980; $500 in 1981; $550 in both 1982 and 1983; and $590 in 1984. In September 1983, an Ordinance was passed allowing for expenditures from the Parkland Fund for the purpose of administrative costs relating to parkland, park site equipment, and plantings. In April 1980, Council passed Resolution 80-49, which adopted policies .. relating to the Parkland Fund. Among the formal Parkland Fund policy statements, which have been slightly modified and updated by several Council actions since 1980, was included the concept of increasing Parkland Fees approximately 10 percent annually in order to attempt to keep up with inflation in the cost of acquisition and development of parks. In 1980, the fee rate of $450 was established utilizing a projection method formula, which took the average number of acres of parks per square mile, multiplied by the average cost per acre of parkland acquisition and development (at that time), divided by the average number of dwelling units per square mile. Since then, we have increased the fee approximately 10 percent annually for inflationary purposes, except in 1983. In 1983, the fee was kept at the 1982 rate of $550 in order to encourage housing development in Fort Collins. Council, during a Work Session in the summer of 1983 on the proposed 1984 draft budget, reviewed the Parkland Fund policies as one of several policy analysis reports provided by staff. Council concurred with the staff recommendation to reaffirm the original Parkland Fund policies adopted through Resolution 80-49, as revised; and agreed with the concept utilized for setting the Parkland Fee annually. -220- October 2, 1984 With housing and the local economy improved, the 1984 fee was increased to $590, which was approximately 7-1/2 percent over the 1982/83 rate of $550. The Chamber of Commerce and City Finance Department projects the 1984 area inflation rate to be six percent (6%). Therefore, we recommend increasing the 1985 Parkland Fee to $625, which equals the inflationary increase projected. This recommendation is consistent with the 1985 recommended budget document. Parks and Recreation Board Recommendati The Parks and Recreation Board, at their regular meeting of August 28, 1984, voted unanimously (8:0 with one of the members absent) to recommend that Council increase the 1985 Parkland Fee to $625, as proposed by staff." Councilmember Rutstein made a motion, seconded by Councilmember Stoner, to adopt Ordinance No. 142, 1984 on First Reading. Councilmember Knezovich expressed concerns about the expenditure of $70,000 for Fossil Creek Park, because the parkland fee is earmarked for neighbor- hood parks rather than community parks. He also commented on the line item for new park acquisition which is to be determined. Assistant to the Director of Parks and Recreation Jerry Brown stated that Fossil Creek Park will be developed as a neighborhood park until the park can be fully developed. He stated that the $70,000 in the 1985 Budget would pay for investigations into how to develop the park, and no other funds are available. Councilmember Rutstein asked how the City compares with the national average on parks per capita. Jerry Brown stated the City is close to the average. He stated that the budget would earmark a source of money to acquire parkland in newly annexed areas in the northeast part of the City as sites to be determined become available. Councilmember Rutstein stated that raising the parkland fee is fiscally responsible in that it anticipates growth and the necessity of parkland development. Councilmember Elliott supported the fee increase, which was reviewed by the Parks and Recreation Board. Councilmember Stoner spoke concerning maintaining quality of life and supported the fee increase. Assistant Mayor Clarke supported the fee increase and supported development of Fossil Creek Park. — -221- October 2, 1984 The vote on Council member Rutstein's motion to adopt Ordinance No. 142, 1984 on First Reading was as follows: Yeas: Councilmembers Clarke, Elliott, Ohl son, Rutstein, and Stoner. Nays: Councilmember Knezovich. THE MOTION CARRIED. Ordinance Authorizing Amendment of Section 95-90 of the Code Relating to the Annual Review of Fees for Street Oversizing, Adopted on First Reading Following is the staff's memorandum on this item: "Staff presented Council with a Policy Analysis for Street Oversizing last year as part of the 1984 Budget process, recommending a gradual increase in the fees over a period of five years. Council approved the concept of the proposed gradual increases at that time. The table below shows the present fees, the recommended 1985 fees,. and the proposed increases over the next four years. FEES CATEGORY RECOMMENDED Present 1985 1986 1987 1988 RESIDENTIAL $ 247/D.U. 249 250 252 253 COMMERCIAL $4,014/Gross Acre 4,528 5,041 5,555 6,069 INDUSTRIAL $1,007/Gross Acre 1,514 2,020 2,527 3,034 Staff is presently reviewing the street oversizing fees, and cash flow problems. A report was submitted to Council on September 20th describing the status of the Street Oversizing Fund and recommending the establishment of a line of credit to back the appropriations needed to pay developers for oversized streets they construct. Staff is still in the process of evaluating the cost of building streets during the past construction season. Only a few bills have been received so far. We expect to receive several more in the next few weeks. It may be desirable to further revise the street oversizing fee once we have a better determination of the actual costs of construction. Since the revised fee structure will not be in effect until January 1, 1985, staff recommends adoption of the above fee structure at the present time. If it appears that different fee increases are required due to inflation in construction costs, staff will bring the additional information and recom- mendations to Council at a later time." -222- October 2, 1984 Councilmember Elliott made a motion, seconded by Councilmember Ohlson, to adopt Ordinance No. 144, 1984 on First Reading. Councilmember Stoner spoke concerning the increase in fees for the indus- trial category which might discourage industrial development. He noted a national trend to adjust fees to attract industry. City Engineer Tom Hays stated that industry has been subsidized by the policy adopted in 1983 and that Council has given direction to adjust the street oversizing fees, over the next five years to achieve a more direct proportionate level for each category. Councilmember Rutstein commented that users should pay for growth, and industry impacts the streets. Assistant Mayor Clarke stated that this is a phased approach to equitably distributing the costs of street oversizing. Councilmember Ohlson noted a countertrend for industry to locate in com- munities with a high quality of life. Councilmember Knezovich stated that fees were set at a low rate for in- dustry in 1981 and this is an effort to bring balance back to the fee schedule. The vote on Councilmember Elliott's motion to adopt Ordinance No. 144, 1984 on First Reading was as follows: Yeas: Councilmembers Clarke, Elliott, Knezovich, Ohlson, and Rutstein. Nays: Councilmember Stoner. THE MOTION CARRIED. Ordinance Amending Chapter 112 of the Code Relating to Service Charges for Water and Sewer Service, Adopted on First Reading Following is the staff's memorandum on this item: "The Recommended 1985 Budget, as presented, includes no increase in monthly sewer service fees, an increase in monthly water service fees of approxi- mately ten (10) percent, and an increase in both the water and sewer plant investment fees ranging from eighteen (18) to twenty-two (22) percent. The ten percent increase in the monthly water service fees is necessary in order to ensure that sufficient revenue is generated to meet anticipated expenses and to comply with City financial policies. The increase in -223- 1 October 2, 1984 expenses in 1985 is primarily due to the need to issue $14 million in general obligation bonds for the water treatment plant relocation project. The additional average annual revenue requirement to pay the bond principal and interest payments is between $1.5 to $1.7 million, depending on the bond interest rate. The ten percent water service fee increase will result in an increase of $1.51 per month ($15.14 in 1984 to $16.65 in 1985) for a typical flat rate customer with an average size lot. A review of the five-year capital improvement program indicates that the present plant investment fees, for both water and sewer, are not sufficient to provide the necessary funds to construct and install facilities related to and required by growth. Typical facilities related to growth include water and wastewater treatment plant expansions, storage reservoirs, pump stations, water transmission lines, wastewater trunk lines, maintenance shop space, and general office space. In 1985, water and sewer plant investment fees will increase an average of between eighteen (18) and twenty-two (22) percent. For example, the sewer plant investment fee for a 3/4-inch non-residential tap will increase from $1350 to $1600 and the water plant investment fee for a 3/4-inch non- residential tap will increase from $1680 to S2000." Councilmember Elliott made a motion, seconded by Councilmember Ohlson, to adopt Ordinance No. 145, 1984 on First Reading. Councilmember Stoner asked how the City's total development fee compares with other communities in Colorado and in the region. Director of Planning and Development Curt Smith stated Fort Collins would be in the top 25t in Colorado and one of the most expensive in northern Colorado. Councilmember Stoner noted a possible future increase in fire protection fees and the substantial total increase in the per unit development fees. Curt Smith stated the staff has met with groups of developers and no significant concerns have been expressed. Councilmember Knezovich noted that these fees are being raised as a trade- off to keep water rates at a reasonable level. City Attorney Huisjen noted that the Ordinance needed to be corrected to add the word "and" at the end of Section 112-52A and also at the end of Section 112-52B, and the word "or" at the end of Section 112-52C. -224- October 2, 1984 The vote on Councilmember Elliott's motion to adopt Ordinance No. 145, 1984 on First Reading, with the correction noted by City Attorney Huisjen, was as follows: Yeas: Councilmembers Clarke, Elliott, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Resolution Adopting the 1985 Budget for the City of Fort Collins and Fixinq the Mill Levy, Adopted Following is the staff's memorandum on this item: "This Resolution adopts the 1985 Budget for the City of Fort Collins. The Resolution is different from the 1985 Recommended Budget presented to Council on August 28, 1984 in two areas, as follows: 1. Street Oversizing Fund After the 1985 Recommended Budget was presented to Council, staff was asked by Council to provide an analysis of the current status of this fund. As a result of this analysis, which was discussed with Council at its September 25th worksession, projected 1985 expenditures from this fund have been increased by $698,500 over the 1985 Recommended Budget amount of $894,833, to a total of $1,593,333. The additional 1985 appropriations will be financed by a line of credit, and will be adequate to cover anticipated 1985 expenditures, including,new development and Special Improve- ment Districts. If actual 1985 expenditures do not material- ize as expected, the appropriations will lapse at year-end 1985. 2. Property Tax - 1985 Mill Levy The City has been advised by the Larimer County Assessor that the City's certified assessed valuation is higher than the estimated valuation used in the preparation of the 1985 Recommended Budget. At the current Property Tax mill levy of 13.500, the City would generate $3,834,555 from this source in 1985, an increase of $181,991 over the estimates included in the 1985 Recommended Budget. Based upon the City's Revenue Allocation Formula used to determine the City's funding levels for Poudre Fire Authority (PFA) operations, $98,639 of the increased budgeted revenue would go to the PFA, and , $83,352 would go to the General Fund. -225- October 2, 1984 The City could generate the originally budgeted Property Tax revenues by dropping the 1985 mill levy by 0.640 mills, to 12.860. The reduced mill 'levy would result in a $5.11 tax reduction in 1985 to an average property owner of a home currently worth $76,000. At its worksession on September 25th, Council requested that two optional Recommendations be submitted for its consideration, depending upon whether the mill levy is to be dropped to 12.860 mills, or, alternatively, main- tained at its existing level of 13.500 mills. The two options are de- scribed below: Option I Drop the 1985 Property Tax mill levy to 12.860, and adopt a 1985 Budget for the City of Fort Collins in the amount of $158,898,321. (This amount is the 1985 Recommended Budget of $158,199,821 plus the additional $698,500 for Street Oversizing Fund.) Option II Maintain the existing Property Tax mill levy of 13.500 for 1985, and adopt a 1985 Budget for the City of Fort Collins in the amount of $158,996,960. (This amount is the 1985 Recommended Budget of $158,199,821, plus the additional $698,500 for Street Oversizing Fund, plus an additional $98,639 appropriation in the General Fund for transfer to the Poudre Fire Authority.) The remaining $83,352 which would be generated at the 13.500 mill levy would not be appropriated with the 1985 Budget, but would, rather, be retained in the General Fund for possible future use, as needs are identified, and approved by Council." Councilmember Rutstein made a motion, seconded by Councilmember Ohlson, to adopt Option II of Resolution 84-152, maintaining the mill levy at the current level of 13.5 mills. Councilmember Rutstein stated that the first option would not be a substan- tial decrease per taxpayer and that maintaining the mill levy might help to avoid raising the levy next year. Councilmember Stoner stated that the mill levy should be changed depending on financial needs, and this is an opportunity to decrease taxes while funding budgetary needs. The vote on Councilmember Rutstein's motion to adopt Option II of Resolu- tion 84-152 was as follows: Yeas: Councilmembers Elliott, Ohlson, and Rutstein. Nays: Councilmembers Clarke, Knezovich, and Stoner. THE MOTION FAILED. -226- October 2, 1984 Councilmember Ohlson made a motion, seconded by Councilmember Stoner, to adopt Option I of Resolution 84-152. Yeas: Councilmembers Clarke, El- liott, Knezovich, Ohlson, and Stoner. Nays: Councilmember Rutstein. THE MOTION CARRIED. Ordinance Appropriating Annual Expenditures for the City of Fort Collins in 1985 and Setting the Mill Levy for Said Fiscal Year, Adopted on First Reading Following is the staff's memorandum on this item: "This Ordinance appropriates the 1985 Annual Budget and sets the mill levy. Changes from the financial statements included in the 1985 Recommended Budget are outlined in the previous agenda item. Based upon Council's actions on the previous Resolution adopting the 1985 Annual Budget and fixing the mill levy, two optional Ordinances are attached. Option I Drops the 1985 Property Tax mill levy to 12.860 and appropriates the 1985 Annual Budget of $158,898,321. Option II Maintains the existing Property Tax mill levy at 13.500 for 1985 and appropriates the 1985 Annual Budget of $158,996,960. The option to be approved by Council will be consistent with the option approved by Council in the Resolution immediately preceding this Ordi- nance." Councilmember Stoner made a motion, seconded by Councilmember Ohlson, to adopt Option I of Ordinance No. 146, 1984 on First Reading. Yeas: Coun- cilmembers Clarke, Elliott, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Resolution Authorizing the City Staff to Proceed with the Financing of the Lemay Avenue Extension from Horsetooth Road to Harmony Road, Adopted Following is the staff's memorandum on this item: -227- October 2, 1984 "As part of the 1985 Annual Budget, the Council has approved the construc- tion of Lemay Avenue from Horsetooth Road to Harmony Road and the financing of the cost involved utilizing Bond Anticipation Notes. The revenue to be utilized in retiring the Bond Anticipation Notes is from the City's existing Sales and Use Tax earmarked for capital improvements. In order to meet the completion date presented in the 1985 Annual Budget, staff needs to proceed with the financing of this project. The costs associated with the financing will be paid from the BAN proceeds." Councilmember Rutstein made a motion, seconded by Councilmember Stoner, to adopt Resolution 84-153. Councilmember Knezovich asked what percentage this accelerated completion and debt financing would add to the total cost of the project. He com- mented on the need for these improvements on South Lemay. Finance Director Jim Harmon stated this would add 17% or approximately $337,000 to the cost. The vote on Councilmember Rutstein's motion to adopt Resolution 84-153 was as follows: Yeas: Councilmembers Clarke, Elliott, Knezovich, Rutstein, and Stoner. Nays: Councilmember Ohlson. THE MOTION CARRIED. Items Relating to 1985 Downtown Development Authority Budget Following is the staff's memorandum on this item: "A. Resolution Adopting 1985 Downtown Development Authority Budget. The proposed 1985 Downtown Development Authority Budget of $211,069 has been approved by the DDA Board of Directors at the regular meeting of August 9, 1984. The budget as proposed would maintain the present staffing level, would permit the DDA to connect to the City's main frame computer, and provides for equipment related to the move to the new office space. To more easily track fund balances, the Board has placed the budgeted year end balance in contingency. B. Hearing and First Reading of Ordinance No. 147, 1984, Appropriating Revenue in the DDA Fund. This is the Annual Appropriation Ordinance for the Downtown Develop- ment Authority, totalling $211,069. -228- October 2, 1984 C. Hearing and First Reading of Ordinance No. 148, 1984, Setting the Mill Levy for the Downtown Development Authority for 1985. The attached Ordinance sets the 1985 mill levy for the Downtown Development Authority at 5 mills. This remains the same as the levy determined for 1984." Councilmember Elliott made a motion, seconded by Councilmember Rutstein, to adopt Resolution 84-154. Yeas: Councilmembers Clarke, Elliott, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Councilmember Ohlson made a motion, seconded by Councilmember Rutstein, to adopt Ordinance No. 147, 1984 on First Reading. Yeas: Councilmembers Clarke, Elliott, Knezovich, Ohl son, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Councilmember Rutstein made a motion, seconded by Councilmember Ohlson, to ' adopt Ordinance No. 148, 1984 on First Reading. Yeas: Councilmembers Clarke, Elliott, Knezovich, Ohl son, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Resolution Adopting a Budget for the Poudre Fire Authority for the Year 1985, Adopted Following is the staff's memorandum on this item: "The Poudre Fire Authority 1985 Budget totals $5,876,154 including 0 & M costs of $5,071,154 plus $805,000 for Capital Expenditures. This budget has been approved by the Poudre Fire Authority Board of Directors for submission to the funding agencies. This budget will fund increases in 0 & M expenses and allow the Authority to begin construction on a new Fire Station #6 as well as replace some aging fire equipment. Since the Poudre Fire Authority is not in the General Fund, this budget also includes a 2% revenue reserve. One other feature of this budget is the funding of a City Emergency Management Director. (Approximately one half of the cost of this position is reimbursed by a federal grant.) SOP46E October 2, 1984 In summary, this budget will maintain 1984 service levels by meeting cost increases and adequately funding existing programs in fire prevention, suppression, and training. The Poudre Valley Fire Protection District Board considered and approved the proposed budget on September 24, 1984. The approval of both the District and the City is necessary for enactment of the budget. Note: Two optional statements entitled "Poudre Fire Authority Comparative Budget Summary" are attached for inclusion with the Resolution. The option to be selected will be consistent with Council's approval of the City's 1985 Property Tax mill levy, being considered separately in Items 31 and 32 on October 2, 1984. Option I Based upon dropping the 1985 Property Tax mill levy to 12.860. This statement is identical to that in the 1985 Recommended Budget. Option II Based upon maintaining the existing Property Tax mill levy at 13.500 for 1985. This would generate an additional $98,639 for the City's Contribution to the PFA in 1985. The additional revenue to the PFA will not be appropriated at this time and, thus, year-end reserves will increase for the PFA." Councilmember Elliott made a motion, seconded by Councilmember Ohlson, to adopt Resolution 84-155, Option I, setting the mill levy at 12.86 mills. Yeas: Councilmembers Clarke, Elliott, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Inducement Resolutions Setting Forth the Intention of the City of Fort Collins to Issue Industrial Development Revenue Bonds Following is the staff's memorandum on this item: "A. Resolution Setting Forth the Intention of the City to Issue Industrial Development Revenue Bonds for Comridge Partners. -230- October 2, 1984 B. Resolution Setting Forth the Intention of the City to Issue Industrial Development Revenue Bonds for the Empire Laboratories, Inc. Project. C. Resolution Setting Forth the Intention of the City to Issue Industrial Development Revenue Bonds for Syngene Corporation. D. Resolution Setting Forth the Intention of the City to Issue Industrial Development Revenue Bonds for Opera House Block Building Partnership. State of Colorado Executive Order D0028-84, September 5, 1984, has estab- lished the allocation process for the issuance of Industrial Development Revenue Bonds in 1984. The State of Colorado ceiling for calendar year 1984 is estimated to be $456,750,000. Of this ceiling, $170,000,000 has been allocated to State Issuing Authorities as follows: Colorado Student Obligation Bond Authority $120,000,000 Colorado Agricultural Development Authority 20,000,000 Colorado Health Facilities Authority 10,000,000 Colorado Housing Finance Authority 20,000,000 The $286,750,000 state-wide balance will be allocated among all the Issuing Authorities of the State of Colorado on the basis of chronological order of receipt of completed applications. As the State will be allocating on this "first -come, first served basis", I will contact the State on October 2 to ascertain the actual available balance at that time. I will provide Councilmembers with this information during the Council meeting. Attached for your review are four City of Fort Collins Colorado Industrial Development Revenue Bonds (series 1984), Inducement Resolutions, and applications. These are the final applications which will be considered in 1984. The projects are as follows: 1. The Comridge Partners Project Requested Issue: $3,500,000 Project: Construct and equip a 50,000 square foot building for office space and light manufacturing of high-tech electrical amplifiers. Applicant: Comridge Partners Location: Southeast Fort Collins, Oakridge P.U.D. Recommendation: Staff recommends approval of this project, according to criteria contained in Resolution 84-92. 2. The Empire Laboratories, Inc. Project Requested Issue: $700,000 Project: Construct and equip a one-story, 9,817 square foot office and laboratory building. Applicant: Chester C. Smith Location: Downtown area, northwest corner of Maple and Howes. Recommendation: Staff recommends approval of this project, according to criteria contained in Resolution 84-92. -231- October 2, 1984 ■ 3. The Syngene Corporation Project Requested Issue: $2,000,000 Project: Construct and equip a two-story, 30,000 square foot building expansion for offices, research and development, and production. Applicant: Syngene Corporation Location: Northeast urban growth area, 225 Commerce Drive Recommendation: Staff recommends approval of this project, according to criteria contained in Resolution 84-92. 4. Opera House Block Building Renovation Project Requested Issue: $2,650,000 Project: Renovate existing historic structure and construct a 22,500 square foot addition for office and retail uses. Applicant: Opera House Block Building Partnership: Walter F. Brown Location: Historic Old Town District, 117-131 North College Avenue. Recommendation: Staff recommends approval of this project, according to criteria contained in Resolution 84-92. Staff has reviewed the applications using criteria established by Resolu- tion 84-92, adopting Industrial Development Revenue Bond Policies and Criteria. In order to highlight critical information, a fact sheet for each application has been attached, as well as the IDRB Criteria Evaluation sheets. We will be re-evaluating and refining the IDRB Criteria Evaluation Metho- dology for 1985. We received numerous questions from applicants during their preparation of the applications. This is due to some ambiguities in data requirements. The criteria and application requirements will be made more understandable." Councilmember Stoner made a motion, seconded by Councilmember Knezovich, to adopt Resolution 84-156 (Comridge Partners). Finance Director Jim Harmon stated that $253,900,000 is currently available in the State allocation for IDRB's. Dave Dwyer, bond counsel, stated the Comridge partnership will construct the building and lease it to the Comlinear Corporation, which manufactures amplifiers for high-tech computers. The IDRB's will be privately placed. David Nelson, President of Comlinear Corporation, described the company and proposed project. He stated that the building will be occupied in phases. Employment will be a mix of professional and non-professional. He de- scribed the lease arrangements with Comridge. Comlinear has elected not to participate as an investor in the Comridge partnership. -232- October 2, 1984 David Everitt, representing Everitt Enterprises and the Comridge Partner- ship, spoke in support of the project. Bruce Lockhart, 2500 East Harmony Road, asked about the State IDRB cap and about granting bonus points for certain types of jobs. Jim Harmon stated that bonus points.are awarded for entry level jobs. The vote on Councilmember Stoner's motion to adopt Resolution 84-156 was as follows: Yeas: Council members Clarke, Elliott, Knezovich, Ohl son, Rut- stein, and Stoner. Nays: None. THE MOTION CARRIED. Councilmember Knezovich made a motion, seconded by Councilmember Stoner, to adopt Resolution 84-157 (Empire Laboratories). Chester Smith, representing Empire Laboratories, described the proposed project at the southwest corner of Maple and Howes. He stated the project would not be feasible with conventional financing. Councilmember Rutstein asked about storage of nuclear and hazardous mater- ials. Mr. Smith stated that EPA guidelines and regulations are met in the han- dling of these types of materials. The vote on Councilmember Knezovich's motion to adopt Resolution 84-157 was as follows: Yeas: Councilmembers Clarke, Elliott, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Councilmember Knezovich made a motion, seconded by Councilmember Elliott, to adopt Resolution 84-158 (Syngene Corporation). Scott Winston, Vice -President of the Syngene Corporation, described the proposed facility to be used for animal testing. The new building would be adjacent to the present facility. Councilmember Rutstein asked about whether dangerous bacteria or viruses are handled at this facility. Mr. Winston stated that USDA standards are met in the handling of hazardous materials. Councilmember Rutstein asked about plans to annex this site to the City. -233- October 2, 1984 Councilmember Knezovich stated that IDRB legislation provides for municipal control up to eight miles outside the City limits. The vote on Councilmember Knezovich's motion to adopt Resolution 84-158 was as follows: Yeas: Councilmembers Clarke, Elliott, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Councilmember Stoner made a motion, seconded by Councilmember Elliott, to adopt Resolution 84-159 (Opera House). Lucia Liley, attorney representing the applicant, described the property ownership and partnership arrangements for the proposed project. Walt Brown is the principal in the project. She stated that the project com- plies with the City's IDRB guidelines and criteria, and she described the renovation and historic designation plans, which are based on the 1917. opera house renovation. She commented that the project would benefit the City. Councilmember Knezovich asked about tax benefits resulting from historic designation and about the area to be set aside for the theater concept. Walt Brown, principal in the project, stated that the tax credits would be approximately 25% of the hard costs of the renovated portion of the exist- ing structure if historic designation is obtained. He stated that he is working toward the theater concept but has made no commitment at this time, pending obtaining funds for construction and maintenance. Councilmember Knezovich noted that IDRB's can not be used for theater operation but could be used for commercial office space. He asked about market feasibility studies done for this project. Mr. Brown stated there is a market for this type of space, which will become available in mid-1986. Councilmember Stoner asked about the competitive impact of this project. Mrs. Liley stated that downtown and renovation costs are higher than new construction, and advantages such as IDRB's are needed to offset these higher costs. She stated that Mr. Brown expects to have a high quality project at reasonable cost. Councilmember Ohlson asked whether new jobs would be created by this project. -234- October 2, 1984 Mr. Brown stated that about 45 construction jobs would be created for one year, and businesses locating in the building could possibly have up to 25% new jobs. Councilmember Ohlson asked about the evaluation of the project as a tar- geted industry. Jim Harmon stated this rating was given on the basis of points for downtown and historic renovation. Pam Curry, Office Clerk Supervisor in the Finance Department, stated the project was evaluated as a targeted industry because of DDA support. Jim Reidhead, property owner at 171-173 North College Avenue, supported the project for this location and stated he had no opposition to the use of IDRB's for the project. Councilmember Knezovich suggested delaying action on this inducement resolution until the project's benefit to the community can be determined. He questioned market conditions for rental of office space, noting the existence of vacant office space in the City. Councilmember Elliott supported the resolution as a stimulus to development in the area. Councilmember Stoner noted support for this project from an adjacent property owner and the DDA. The vote on Councilmember Stoner's motion to adopt Resolution 84-159 was as follows: Yeas: Councilmembers Clarke, Elliott, Ohlson, Rutstein, and Stoner. Nays: Councilmember Knezovich. THE MOTION CARRIED. Other Business Councilmember Knezovich noted that the Council's emphasis on spending for the November election issue is to provide in -kind contributions consisting primarily of staff time. The direction of Council is to distribute infor- mation on the ballot issues, not to propagandize the issue. Assistant Mayor Clarke stated that Police Chief Glasscock has estimated the cost of enforcement of the new smoking ordinance to be $147 per year. -235- October 2, 1984 Adjournment Councilmember Rutstein made a motion, seconded by Councilmember Stoner, to adjourn the meeting. Yeas: Councilmembers Clarke, Elliott, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. The meeting adjourned at 11:55 p.m. ATTEST: Depw45 City Clerk 1 sYstan -236-