HomeMy WebLinkAboutMINUTES-04/03/1990-RegularApril 3, 1990
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COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
Council -Manager Form of Government
Regular Meeting - 6:30 p.m.
A regular meeting
of the Council of the City of Fort Collins
was held on
Tuesday, April
3, 1990, at 6:30 p.m. in the Council Chambers in
the City of
Fort Collins
City Hall. Roll call was answered by the following
Councilmembers:
Azari, Edwards, Horak, Kirkpatrick, Mabry,
Maxey, and
Winokur.
Staff Members Present: Burkett, Krajicek, Roy
Council Organizational Meetin
Mayor Winokur described the annual process outlined in the City Charter.
requiring Council to elect a new mayor and assistant mayor and expressed
appreciation to Council for electing him as Mayor. He expressed
appreciation to Assistant Mayor Mabry and to the citizens of Fort Collins
for their input during his service as Mayor. He thanked his wife and sons
for their support, guidance, assistance, and encouragement during his term
' as Mayor.
Mayor Winokur stated the process would begin with nominations and comments
from Council and noted Council would have the opportunity for questions,
discussion, and citizen participation. He explained that if more than one
individual was nominated for office there would be a straw poll where
Councilmembers would designate their office preference. He added that the
Councilmember who receives the majority of the preference votes will be
formally nominated.
Councilmember Horak made a motion, seconded by Councilmember Azari,
nominating Susan Kirkpatrick for the office of Mayor.
Councilmember Edwards made a motion, seconded by Councilmember Maxey,
nominating Chuck Mabry for the office of Mayor.
Councilmember Horak stated his reasons for nominating Councilmember
Kirkpatrick for the office of Mayor included her leadership abilities and
honesty and noted the importance of honesty in the mayor's position. He
noted his confidence in Councilmember Kirkpatrick's ability to handle the
tough decisions.
Councilmember Azari stated she believed Councilmember Kirkpatrick was a
hard worker and commented on her position as Chairperson of the Health and
Safety Committee. She added that Councilmember Kirkpatrick is sensitive to
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the needs of staff and Council and spoke of her confidence in Councilmember
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April 3, 1990
Kirkpatricks' ability to serve Council along with contributing to the
outreach process to the citizens of Fort Collins. She stated Councilmember
Kirkpatrick would make a positive contribution to the leadership of Fort
Collins.
Councilmember Edwards commented on Councilmember Mabry's qualifications and
stated he has made a positive contribution to the framework to Council. He
mentioned Councilmember Mabry's roll in the leadership team during
Council's retreat and noted how well Councilmember Mabry relinquished his
policy agenda items in order to accomplish a better policy agenda for the
entire Council. He stated Councilmember Mabry's experience in both the
private and public sector enhanced his qualifications to serve as Mayor.
Mayor Winokur stated that the two Councilmembers nominated for the office
of Mayor were extremely qualified and capable and noted the importance of
the leadership style accomplishing the Council agenda.
City Clerk Krajicek polled each of the Councilmembers for their preference
for the position of Mayor:
Councilmember
Maxey
- Mabry
Councilmember
Edwards
- Mabry
Councilmember
Mabry
- Mabry
Mayor Winokur
- Kirkpatrick
Councilmember'Azari
- Kirkpatrick
Councilmember
Kirkpatrick
- Kirkpatrick
Councilmember
Horak
- Kirkpatrick
Mayor Winokur stated that Councilmember Kirkpatrick received the majority
of roll call votes for the position of Mayor.
Councilmember Horak made a motion, seconded by Councilmember Azari,
nominating Susan Kirkpatrick to serve as Mayor for the City of Fort
Collins. Yeas: Councilmembers Azari, Horak, Kirkpatrick, Maxey, and
Winokur. Nays: Councilmembers Edwards and Mabry.
THE MOTION CARRIED.
City Clerk Krajicek administered the Oath of Office to Mayor Elect
Kirkpatrick.
Councilmember Winokur turned the meeting over to Mayor Kirkpatrick.
Mayor Kirkpatrick stated the emphasis upon Council during the next year
will be service to assist with the planning of formal meetings and work
sessions to help Council maximize its capability. She stated her fellow
Councilmembers are exceptionally talented and that her job as Mayor would
be to ensure all Councilmembers share equally in the information to make
good decisions. She stated she looked forward to working with staff and
expressed appreciation to her family and friends for their'support.
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April 3, 1990
Councilmember Winokur made a motion, seconded by Councilmember Horak,
nominating Ann Azari for the office of Assistant Mayor.
Councilmember Mabry made a motion, seconded by Councilmember Edwards,
nominating Loren Maxey for the office of Assistant Mayor.
Councilmember Winokur stated he was impressed by Councilmember Azari's
dedication, hard work, clear thinking, sense of community and stated he
believed Councilmember Azari is open, honest, interested, and concerned.
He stated that Councilmember Azari showed respect and understanding for
different points of view and stated Councilmember Azari would provide
effective balance within the internal composition of Council. He added
that Councilmember Azari would compliment the abilities of Mayor
Kirkpatrick.
Councilmember Mabry stated he was pleased to nominate Councilmember Maxey
for Assistant Mayor. He stated Councilmember Maxey would lend balance and
experience to the leadership team and noted Councilmember Maxey's
commitment to serve as Assistant Mayor.
Councilmember Edwards noted the positions of Mayor and Assistant Mayor were
designed to lead Council and to serve the community. He stated that
Councilmember Maxey had the ability to look critically at each issue in
order to provide the best leadership.
' City Clerk Krajicek polled each of the Councilmembers for their preference
for the position of Assistant Mayor:
Councilmember
Mabry
- Maxey
Mayor Kirkpatrick
- Azari
Councilmember
Azari
- Azari
Councilmember
Winokur
- Azari
Councilmember
Horak
- Azari
Councilmember
Maxey
- Maxey
Councilmember
Edwards
- Maxey
Mayor Kirkpatrick stated that Councilmember Azari received the majority of
roll call votes for the position of Assistant Mayor.
Councilmember Winokur made a motion, seconded by Councilmember Horak,
nominating Ann Azari to serve as Assistant Mayor for the City of Fort
Collins. Yeas: Councilmembers Azari, Horak, Kirkpatrick, Maxey, and
Winokur. Nays: Councilmembers Edwards and Mabry.
THE MOTION CARRIED.
City Clerk Krajicek administered the Oath of Office to Assistant Mayor
Elect Azari.
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Councilmember Azari stated she was looking forward to assisting Council in
its continuing efforts to serve the citizens of Fort Collins. She noted
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April 3, 1990
the importance of improved internal and external communication and stressed
the need to facilitate inter -action among Council.
Councilmember Winokur commented on the positive changes within Council and
spoke about the open nominations. He stated he believed that a great deal
of progress had been made regarding open government and encouraged
continued progress. He expressed appreciation and support to Mayor
Kirkpatrick, Assistant Mayor Azari and to Councilmembers Mabry and Maxey
for their interest and desire to be candidates.
Councilmember Azari commented on the governance issues and commended the
retiring team of leaders for their excellent leadership abilities.
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Operators Week was ac
Citizen Participation
ez and Lorie Digiliani.
Proclamation Naming April 20 as Arbor Day was accepted by Scott Alyn
and Greg Long.
Presentation of Tree City U.S.A. Award was presented to the City by Jim
Hubbard.
D. Proclamation Naming Debra Sue Bruce as Young Mother of the Year was
accepted by Debra Sue Bruce.
Proclamation Naming JoAnn Kesler as Mother of the Year was accepted by
JoAnn Kesler.
F. Presentation of "Excellence in Financial Management" Award for City's
CDBG Program was presented to Carl McWilliams, Vice Chair, Community
Development Block Grant Steering Committee by Ken Waido.
1. Lauri Pointer, former exercise instructor at New Creations, stated she
believed that New Creations was not discriminating against men and added
that the club specialized in women's fitness needs. She stated there was a
need for an all womens health club in the community and stressed the
importance of exercise and proper nutrition for women.
City Attorney Roy described the New Creations situation which' centered
around an ordinance which referred to various discriminatory practices and
stated the City Code contained the definition of discriminatory practices.
He noted that the process that the complainant follows is outlined in the
Code and added that once the complaint is filed, the responsibility of the
City Manager is to screen the complaint for the sufficiency of probable
cause. He added it is the City Manager's responsibility to negotiate a
conciliation agreement and noted the purpose of the conciliation agreement
is to determine if the parties can reconcile the alleged violation. He
stated that in the case of New Creations a reconciliation did not occur and
added that the complaint was filed in Municipal Court. He stated the
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April 3, 1990
' matter was pending for arraignment on April 12 and stated that a trial date
would be set by court.
2. Katrina Aly, related a personal experience regarding weight loss and
stated she believed New Creations was not disriminating against men. She
added that the club assisted women who felt discriminated against due to
being over weight.
3. Kathy Fromme, 1308 Hepplewhite Court, spoke in favor of New Creations
as a health club for women and stated that if New Creations closed, she
would not join a different health club. She noted that New Creations
emphasizes women's issues associated with prenatal care, single parenting,
assertiveness training, and financial planning and the club promoted
positive mental and physical well-being for women. She encouraged Council
to ensure that the women of Fort Collins continue to have the choice of the
type of environment in which to exercise. '
4. Kathy Lorson-Evans, former Assistant Manager at. New Creations, spoke
regarding the different physiological needs women have and related
statistics from Crossroads regarding abuse of women. She spoke of
harassment at coed health facilities and stated that an all -women exercise
facility may be the only alternative for women to avoid abuse and
harassment. She stated that New Creations serves women of different
religions and cultural backgrounds and added these women are not allowed to
exercise in the presence of men. She stated she believed that if the City
' Attorney's Office had discussed the problem with the New Creations staff,
the issue could have been resolved. She noted the high number of calls New
Creations received from citizens who support the idea of an all -women
exercise facility.
5. Bobbie Regan, New Creations club member, spoke in support of New
Creations leadership which provided the opportunity to exercise among
friends in a comfortable atmosphere and appealed to Council to reconsider
the issue.
6. Clarence Newcomb, Weld County Road 80, New Creations Corporations
President, spoke regarding the letter from the Human Relations Commission
and noted the two options the club had were to allow men to become members
(in an all womens club) or close the club. He stated the club is designed
to provide for the needs women and stated that when the decision was made
to close the club, many calls and letters were received in support of
keeping the club open. He stated he believed the club had been
discriminated against and asked Council for its support. He asked Council
to support the facility as an all womens club and asked Council to review
and rewrite the discrimination ordinance. He stated the ordinance is
written in a way that it removes the rights of privacy from the women of
Fort Collins and added that the ordinance does not comply with the state
and federal ordinances. He read from a 1988 state law. .."notwithstanding
any other provisions of this section it is not a discriminatory practice
' for'a person to restrict admission to a place of public accommodations to
individuals of one sex. If such restriction has a bona fide relationship
to the goods, service„ facilities, privileges, advantages, or
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April 3, 1990
accommodations of such place of public accommodations". He stated he '
believed that compared to the state law, the City ordinance is
unconstitutional and stated there are six all women health clubs in Denver.
He added the clubs are operating uncontested and noted the all women health
clubs in Colorado Springs, Chicago, and on the east coast. He asked why
New Creations was being outlawed in Fort Collins.
7. Harriet Snyder, 3330 Pepperwood Lane,, former New Creations member,
spoke in support of the facility and stated she believed that the letter of
the law was offending the intent of the law. She stated that New Creations
should be allowed to exist in Fort Collins as an all women health club.
8. Pamela Dahl, certified fitness instructor at New Creations, stated the
ordinance restricted the advertising -and function of New Creations and
spoke regarding the privacy of breast examination. She appealed to Council
to take action that will allow an all women health club to exist in Fort
Collins.
9. Carol Plock, Executive Director Women's Center, stated the Women's
Center was a non-profit human service agency and described how New
Creations benefited members and the entire Fort Collins community. She
stated the Women's Center assists with locating child care, locating
employment, and health care for low income citizens, and reminded Council
that New Creations is a good community citizen. She stated that for the
past two years New Creations sponsored the aerobathon as the Women's
Center's annual major fund raising event including doing ninety-five '
percent of the work involved in putting on the event. She stated the
community will experience a great loss should New Creations close.
10. Roy Vratil, 1401 Shamrock, expressed disappointment regarding the City
ordinance and spoke in support of women having the opportunity to exercise
in an all female atmosphere.
11. Carmel Solano, 2200 Berkshire Drive, spoke regarding discrimination and
civil rights and noted the importance of upholding the law.
12. Larry Johnston, 2707 Silver Creek Drive, stated his wife was a member
of New Creations and spoke of her medical condition which requires
exercise. He stated he believed the complaint was reverse discrimination
against the members of New Creations and stated the club members have the
right to exercise in a manner that preserves their modesty. He stated he
would not support integration of males in the; aerobic classes and stated
that Mr. Francis should resign from the Human' Relations Commission.
13. Barry Feldman, 1709 Lindenwood Drive, Executive Director, Options of
Northern Colorado, spoke regarding discrimination against men and noted the
inconsistencies of discrimination in Larimer County.
Councilmember Maxey expressed appreciation for the letters and phone calls
received regarding New Creations. I
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April 3, 1990
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Councilmember Horak stated
that the situation was
regrettable and noted
that the law was adopted
more than 10 years ago. He stated that
the
complaint process was out
of staff's control and
stated that the law
is
clear on how the process should proceed. He stated
he believed the City
of
Fort Collins did not direct
New Creations to close or
threaten to close
New
Creations.
Councilmember Edwards commented on the issue of discrimination with respect
the law on the books and added the potential existed to change that law.
He stated it is a difficult issue, but can be solved and added that
constructive steps should be taken to resolve the issue.
Councilmember Winokur stated that staff did its job as it was directed and
noted the importance of the discrimination laws. He stated that
discrimination is wrong and noted the basic idea of the City's
discrimination law is sound. He stated the methods of implementation
should be reviewed and stated that under Other Business he would comment on
directing the City Attorney to fine tune the discrimination ordinance and
to review the options regarding the complaint process.
Councilmember Azari commented on discrimination victims in past years and
noted legislation updates. She encouraged Council to review the City's
discrimination ordinance.
Agenda Review: City Manager
City Manager Burkett noted there were two new resolutions for Item #23,
Resolution 90-48 Authorizing a Waiver of the Public Street Capacity
Requirement, the Public Sewer Capacity Requirement and the Requirement for
Contiguity to Existing Development for the High View Subdivision. He
requested that Item #15,Reso7ution 90-44 Approving a Cash Management and
Investment Policy and Authorizing the Financial Officer to Administer the
Policy, be withdrawn from the Consent Agenda.
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 Conseni. 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 #20, Pulled Consent Items.
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7.
Consider approval of the minutes of the'special meeting of March 13.
April 3, 1990
This Ordinance was unanimously adopted on First Reading on March 13. '
During the 1990 budget session, funds were approved to conduct a
feasibility study for a new performing arts facility. In 1988,
citizen committees looked at future City capital facilities needs.
One such facility need was a complex to house a 500 seat mini -theatre,
a 2,500 seat performing arts theatre and a 3,500 seat outdoor
amphitheatre. This was not included in the approved Choices '95
budget because further study was deemed necessary before possible
funding was recommended.
The funds for the study, $40,000, were placed in the Lincoln Center's
budget. The study is considered to be a capital project and should
have been placed in the Capital Projects Fund. This transfer will
allow for proper accounting, project management, and project tracking.
The schedule for the feasibility study shows the project being
complete in November 1990.
This Ordinance was unanimously adopted on First Reading on March 20.
Adoption of the Consent Calendar will adopt Ordinance 21, 1990 as
amended on Second Reading. '
Under the current provisions of the City Code, City Council cannot
approve the City's conveyance or sale of real property unless the
Council first finds by resolution that the real property is not used,
intended to be used or secured for a "municipal purpose," and that the
sale is in the best interests of the City. Because Colorado case law
broadly defines what is considered a "municipal purpose," there could
be many circumstances in which it would be in the best interests of
the City to sell or dispose of certain real property, but it cannot be
done because the Council cannot find that the real property is no
longer used, intended to be used or secured for a "municipal purpose."
Therefore, staff believes that the proposed additions and amendments
to the Code are necessary to give Council greater flexibility in
making decisions about selling the City's real property.
A revision to Section 23-111 has been proposed on Second Reading of
this Ordinance which would apply to the sale of any certificates of
purchases which have been received by the City from the County
Treasurer's sale of properties in special improvement districts. The
revised language would require that, when any such certificate of
purchase is to be sold for less than its full face value, together
with all accrued interest and penalties, notice would be given to all
parties having an interest in the underlying property or in the
proceeds of the sale of the certificate of purchase.
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April 3, 1990
' 9. Second Reading of Ordinance No. 23, 1990, Amending Chapter 2, Division
3 of the Code Relating to Appeals Procedure.
During the course of recent appeals to City Council, certain questions
have arisen with regard to the appeals procedure. This Ordinance,
which was unanimously adopted on First Reading on March 13, would have
the following effects:
(1) Councilmembers would be authorized to review the decisions of
boards and commissions on their own initiative without having to
allege error or refrain from participating in Council deliberations
regarding the appeal;
(2) Council could remand a matter for a rehearing, whenever it finds
that the appellant did not initially receive a fair hearing before the
board or commission;
(3) The record on appeal would be expanded to include the videotape
of the proceedings before the board or commission, if available;
(4) The cost of filing an appeal would be increased from $75 to $100;
(5) The date of Council's "final action" on the appeal would become
the date that Council adopts formal findings in support of its
' decision; and
(6) The date upon which notice of any defect in the appeal must be
mailed by the City Clerk would be clarified.
10. Second Reading of Ordinance No. 24, 1990, Amending Chapter 2 of the
Code Relating to the Membership of the Commission on the Status of
Women.
In 1987, the City Council adopted Ordinance No. 27, 1987, which
increased the membership of the Commission on the Status of Women from
7 members plus 2 alternates to 11 members plus 2 alternates and
provided that the Commission would return to its original composition
of 7 members plus 2 alternates on July 1, 1990. Ordinance No. 27,
1987 also provided that the Council may consider a request by the
Commission that the increased size be extended beyond July 1, 1990.
On January 22, 1990, the Commission submitted a formal request that
the increased membership continue. Councilmember Kirkpatrick, as
liaison to the Commission, supports the Commission's request and is
recommending that the Council permanently increase the size of the
Commission to 13 regular members with no alternates.
This Ordinance, which was unanimously adopted on First Reading on
March 13, will increase the membership of'the Commission on the Status
' of Women to 13 regular members. The terms of office for the
April 3, 1990
12.
Commission will be adjusted during the annual appointment process in I
order to achieve overlapping tenure.
This ordinance, which was unanimously adopted on First Reading on
March 13, increases the cash rate charged developers for satisfaction
of raw water requirements from $900 to $1,100 per acre foot. The cash
rate is adjusted periodically to reflect the current price of raw
water.
Developers have the option of turning in water rights or cash when
satisfying the City's raw water requirements. The cash rate,
in -lieu -of water rights, is periodically adjusted to reflect the
market price of water rights in this area. The price of Colorado -Big
Thompson units normally sets the trend in prices. The last adjustment
in the City's in -lieu -of rate was in June, 1989 when it was adjusted
from $800 to $900 per acre foot. Since that time, the prices have
gradually increased and the price of CBT water is now approximately
$1,100 per unit.
The Code provides that nonresidential customers shall pay a surcharge
on any amount of water used in excess of their annual allotment. This
charge is based on the in -lieu -of cash rate and needs to be increased
accordingly from $.42 to $.52 per one thousand gallons.
This Ordinance was unanimously adopted on First Reading on March 20.
Within the past several months the Water Utility has received requests
for financial assistance from customers who wish to use raw water for
irrigation.
At current water rates, it costs from $800 to $900 per year to
irrigate one acre of grass with treated water. On an average day in
July, the Utility must treat and deliver approximately 7,000 gallons
of water to each acre of irrigated bluegrass. Based on the Utility's
current investment in its treatment plant, each acre of bluegrass,
irrigated with treated water, requires approximately $2,500 worth of
treatment capacity. The value of the Utility's investment in its
treatment plant will increase as more sophisticated and expensive
plant expansions are constructed over the next few years. Reducing
the demand for treated water by increasing the use of raw water for
irrigation will slow the time schedule for building new capacity.
To achieve the benefits of raw water irrigation, the staff and Water '
Board propose that -the Utility provide a rebate 'to individuals or
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April 3, 1990
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associations converting
existing treated water irrigation systems to
raw water irrigation.
13. Items Relating to the
Front Range Baptist
Church Annexation and
Zoning.
A. Resolution 90-42 Setting Forth Findings of
Fact and Determinations
Regarding the Front
Range Baptist Church Annexation.
B. Hearing and First
Reading of Ordinance
No. 30, 1990 Annexing
Approximately 5.3 Acres known as the Front
Range Baptist Church.
Hearing and First Reading of Ordinance No. 31, 1990 Zoning
Approximately 5.3 Acres of the Front Range Baptist Church into the
R-L-P, Low Density Planned Residential District.
This is a request to annex and zone approximately 5.3 acres located at
625 East Harmony Road adjacent to the Fairway Estates Subdivision,
south of Harmony Road, and west of Boardwalk Drive. The requested
zoning is R-L-P, Low Density Planned Residential District. The
property is presently developed with a church, private school, parking
lot, and open space. The property is currently zoned FA-1, Farming,
in Larimer County. This is a voluntary annexation.
14. Items Pertaining to the Maxwell Annexation and Zoning.
' A. Resolution 90-43 Setting Forth Findings of Fact and Determinations
Regarding the Maxwell Annexation.
B. Hearing and First Reading of Ordinance No. 32, 1990, Annexing
Approximately 168.23 Acres, Known as the Maxwell Annexation.
C. Hearing and First Reading of Ordinance No. 33, 1990, Zoning
Approximately 168.23 Acres, Known as the Maxwell Annexation, Into
the R-F, Foothills Residential, Zoning District.
This is a request to annex and zone approximately 168.23 acres of
City -owned foothills open space located west of Overland Trail, west
of the CSU football stadium and east of Centennial Drive. The
requested zoning is the R-F, Foothills Residential District. The
property is currently zoned FA-1 Farming in the County. This is a
voluntary annexation.
APPLICANT: City of Fort Collins OWNER: Same
15.
Article V, Section 11, of the Charter requires that the cash balance
' of the city shall be deposited or invested in accordance with the
ordinances of the city. This Resolution adopts the Cash Management
and Investment Policy of the City which supersedes the policy adopted
April 3, 1990
16.
17.
by the Council in 1982. This is a housekeeping item which updates the '
City's investment policy to include those investment instruments
authorized by the Council in Ordinance No. 108, 1988.
Council approval is required for a case not requiring bidding purchase
exceeding $20,000. Staff is requesting such a purchase from Planning
Research Corporation for seven (7) MDI Mobile Data Terminals for
$44,552. After Council approved the lease/purchase financing on
second reading on February 6, 1990, staff discovered the original sole
source with Planning Research Corporation had expired. Therefore, it
is necessary for Council to approve this case not requiring bidding at
this time. The purchase order will be initiated after approval.
This case not requiring bidding purchase is based on compatibility
with existing equipment as reviewed and approved by the City Manager.
The Police Department currently has MDI mobile data terminals -
installed in all vehicles and no other system is compatible with MDI's
system. Bidding this requirement would result in a complete
change -over of equipment, including the controllers and all terminals.
This purchase will equip the new police vehicles ordered this year.
For the past nine years, Fort Collins Police Services has contracted
with the Humane Society for Larimer County for animal control
services. The contract includes a wide variety of radio dispatched
services seven days per week. There is no other known organization,
entity or individual capable of performing these services.
The proposed contract for 1990 totals $155,955. This is an increase
of $5,637 or 3.75% over 1989. Increases have been budgeted to offset
increased operation costs for both the shelter and animal control.
Animal control enforcement coverage will continue on the same schedule
as in 1989: Monday - Friday 6:00 a.m. to 10:30 p.m. and Saturday and
Sunday 8:00 a.m. to 6:00 p.m.
The contractual relationship between the City and the Humane Society
for Larimer county remains excellent, with the Society dedicated to
providing professional animal control enforcement, care, and education
to the community.
18. Resolution 90-47 Making Appointments to the Economic Opportunity
Advisory Committee.
Vacancies currently exist on the Economic Opportunity Advisory I
Committee due to the resignations of Douglas Dickson, Christina
Castorena, and Myra Powers.
April 3, 1990
IApplications were solicited and Councilmembers Maxey and Azari
conducted interviews on March 27. The recommended appointees are:
C. Jean Paben
Joseph Zimlich
Philip Crosley
19. Routine Easement.
a. Powerline easement from Fort Collins Housing Authority, a
Non -Profit Colorado Corporation, located at 516 Cowan Street,
needed to underground existing overhead electric system. Monetary
consideration: $10.
Ordinances on Second Reading were read by title by Wanda Krajicek, City
Clerk.
Item #7.
Item #8.
IItem #9.
Item #10.
Item #11.
Item #12.
Ordinances on First Reading were read by title by Wanda Krajicek, City
Clerk.
Item #13. B. Hearing and First Reading of Ordinance No. 30, 1990 Annexing
Approximately 5.3 Acres Known as the Front Range Baptist
Church.
IC. Hearing and First Reading of Ordinance No. 31, 1990 Zoning
Approximately 5.3 Acres of the Front Range Baptist Church
into the R--L-P, Low Density Planned Residential District.
April 3, 1990
Item N14. B.
C.
Councilmember Edwards made a motion, seconded by Councilmember Horak, to
adopt and approve all items not removed from the Consent Calendar. Yeas:
Councilmembers Azari, Edwards, Horak, Kirkpatrick, Mabry, Maxey, and
Winokur. Nays: None.
ldcfiii[iji(�I`I , •'ii�
Staff Reports
City Manager Burkett extended congratulations to Mayor Kirkpatrick and
Assistant Mayor Azari and stated he and staff were looking forward to the
completion of the Council Policy Agenda. He expressed gratitude to Council
for its comments and understanding regarding the New Creations issue.
Councilmember Reports
Councilmember Azari commented on the traffic signal being installed at
Dunbar and Drake Road and updated Council on the Continental negotiations.
She stated that by the meeting on April 17 a thorough progress report will
be available that will include solid figures and cash flow projections and
noted that Continental Express extended invitations to the City Councils of
Loveland and Fort Collins and lead staff to be guests for a test flight to
Stapleton at 4:00 p.m. on April 16. She added that two types of aircraft
would be available for local service and noted there will be a question and
answer session including a review of the facility. She stated this
opportunity will provide both Councils a chance to gather additional
information from Continental Express.
Councilmember Maxey stated that due to a perceived conflict of interest he
would not attend the Continental Express question and answer session. He
stated a committee was continuing to review the Council Chambers remodel
project and requested input and suggestions from Council.
Mayor Kirkpatrick stated that the occurrence of Dutch Elm Disease in Fort
Collins had been reduced and commended staff and the City Forestry
Department for its efforts in combating the disease in Fort Collins.
April 3, 1990
Resolution 90-48 Authorizing a
Waiver of the Public Street Capacity
Requirement, the Public Sewer Capacity
Requirement and the Requirement for
Contiguity to Existing Development for the
High View Subdivision, Adopted Option B-Denial
Following is staff's memorandum on this item:
"EXECUTIVE SUMMARY
This request pertains to the High View Subdivision, located on the east
side of County Road 38E (aka West Horsetooth Road), one mile west of Taft
Hill Road. The site is located within the Fort Collins Urban Growth Area
and the surrounding area contains a number of large -lot single family
residences created through the County's exemption and minor residential
development process.
This subdivision consists of a proposal to create three single family lots
on 8.1 acres. The property is zoned FA -I Farming and there is an existing
residence on Lot 1. Access to the site is proposed via a local street from
County Road 38E.
Of the four Urban Growth Area phasing criteria, the proposed development
meets the requirement for public water capacity, which would be provided by
the Fort Collins -Loveland Water District. Waivers are being requested for
the requirements for public sewer capacity, public street capacity and for
contiguity to existing development.
Under the UGA Phasing Criteria for public street capacity, the developer
would be responsible for improving County Road 38E to Taft Hill Road and
for improving Taft Hill Road to the arterial street improvements recently
completed by the City, near the intersection of Horsetooth and Taft Hill
Road. Public sewer is approximately 112 mile away, at Highlands West Drive
and the applicant is requesting the use of a septic system for sewage
disposal. Although there are existing residences in the surrounding area,
"existing development" is defined as development that has occurred through
approved subdivisions.
The waiver process was intended to deal with infill development. Infi11
development proposals are those in essentially developed portions of the
Urban Growth Area, whose impact on existing services and facilities is
relatively minimal. Infill development is not considered to be development
in areas of the Urban Growth Area that require the extension or upgrading
of basic infrastructure and other services and facilities, so that the
development can proceed.
IThe Larimer County Commissioners may waive phasing criteria provided that:
April 3, 1990
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;
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 subdivision is relatively minimal in
terms of the number of additional lots being created, this site is not an
infill site. The basic infrastructure needed to serve the site is not in
place. As development continues to occur in this area without the
necessary 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.
The Intergovernmental Agreement establishes that development in the Urban
Growth Area should be urban land uses, at urban densities. The single
family residential density for the UGA is three dwelling units per acre.
The proposed subdivision is planned at a density of one dwelling unit per
2.7 acres and therefore, is not urban development. There is no exceptional
circumstance that is unique to this site, to warrant the waiver requests.
FINANCIAL IMPACT:
A waiver to the public street capacity requirement would result in a waiver
fee of $700 per additional lot for development of this site, or total fee
of $1400.
RECOMMENDATION:
The proposed High View Subdivision is not an infill development and the
density is not an urban density. There is no exceptional circumstance
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 April 25, 1990 meeting."
I
�I
fl;.
April 3, 1990
' City Planner Sherry Albertson -Clark gave a brief presentation regarding the
request to the High View Subdivision and explained the requirements of the
Urban Growth Area agreement regarding waiver requests. She described the
four phasing criteria that are required of development in the Urban Growth
Area. She referred to the needed service upgrades and stated the proposed
density was not at urban level densities. She stated that staff had
evaluated the proposal against the Urban Growth Area requirements and
stated staff believed the proposal is not qualified as an infill
development and added staff is not supporting the waiver request. She
encouraged Council to deny the recommendation to the Urban Growth Area
Review Board and stated the item will be heard by the Review Board at the
end of April.
Councilmember Maxey asked about the approval for rollover curb and gutter
for Westridge.
Sherry Albertson -Clark stated that a street design section included curbs
and gutters and explained that Larimer County may have determined in the
approval process that curbs and gutters were not needed. She stated that a
twenty-eight foot wide street had been proposed.
Councilmember Edwards requested clarification regarding Council's options
regarding approval or denial.
' Sherry Albertson -Clark stated
and explained waiver requests
She commented on the waiver
stated the fees are held by t
stated that an approval of th
the essential options are approval or denial
with respect to street capacity requirements.
fee as a condition of the waiver request and
he County for future street improvements. She
e waiver with conditions was possible.
Councilmember Mabry asked about the recommendation for denial due to the
significant number of waivers.
Sherry Albertson -Clark stated there had been three waivers requested on the
project which involved four items and added that the site does not meet the
intent for urban density in the area. She stated that given those factors,
staff does not believe it can support the project and added the development
could be premature.
Councilmember Maxey made a motion to adopt Resolution 90-48 Option A.
THE MOTION DIED DUE TO LACK OF A SECOND.
Councilmember Edwards made a motion, seconded by Councilmember Winokur, to
adopt Resolution 90-48 Option B.
City Manager Burkett stated the he and the City Attorney reviewed the exact
wording of the Intergovernmental Agreement and stated the intent is to
' provide Council the opportunity to make comments prior to the County acting
on the matter.
April 3, 1990
Dick Rutherford, Project Engineer, stated that to the south of the parcel, '
the County approved M-R-D inside the Urban Growth Area and stated Mr.
Glick's personal property is a part of another exemption (including three
houses) which involved the creation of a subdivision in the county. He
stated that continuity is lacking and noted that approvals had been made
without waivers. He stated that though there were three waiver requests,
the proposed local street will be built to City standards and stated that
pavement was the only County requirement. He stated the curb and gutter
requirement was not established for inside the Urban Growth Area and asked
Council to allow the waivers so the two additional lots can be platted.
Councilmember Maxey stated he saw no curb and gutter after turning off of
Horsetooth Road.
Dick Rutherford stated Westridge Estates is outside of the Urban Growth
Area and noted Springfield Subdivision from County Road 38E north to
Horsetooth Road is not inside the City limits, but is inside the Urban
Growth Area and does have curb, gutter, and sidewalk. He clarified that
the four lot minor residential development was allowed by the County and
stated a waiver was not required and was contiguous to Mr. Glick's
property.
Councilmember Edwards stated that Council is not the final authority on
this issue and encouraged proper growth management. He stated it was in
the City's best interest to take a strong stand on urban level densities to
avoid associated costs. '
The vote on Councilmember Edwards's motion to adopt Resolution 90-48 Option
B was as follows: Yeas: Councilmembers Azari, Edwards, Horak,
Kirkpatrick, Mabry, and Winokur. Nays: Councilmember Maxey.
THE MOTION CARRIED.
Authorizing an Intergovernmental Agreement
Creating an Emergency Telephone
Service Authority, Imposing an
Emergency Telephone Charge upon
Telephone Exchange Access Facilities
Within the City and Authorizing Service
Suppliers to Collect said Emergency
Telephone Charce`s, Adopted on Second Reading
Following is staff's memorandum on this item:
"EXECUTIVE SUMMARY
This Ordinance, which was adopted 6-1 on First Reading on March 20,
authorizes the City to enter into an agreement with Larimer County and the
other cities, towns and special districts located in the County. Once the
agreement is fully executed, the telephone. charges will go into effect and '
i is
April 3, 1990
' all other actions necessary to implement E911 throughout the County will
begin."
Councilmember Azari made a motion, seconded by Councilmember Edwards, to
adopt Ordinance No. 164, 1989 on Second Reading. Yeas: Councilmembers
Azari, Edwards, Kirkpatrick, Mabry, Maxey, and Winokur. Nays:
Councilmember Horak.
Ordinance No. 26. 1990,
Amending the Code Regarding
Noise. Adopted on Second Reading
Following is staff's memorandum on this item:
"EXECUTIVE SUMMARY
This Ordinance, which was adopted 6-1 on First Reading on March 20,
modifies Section 20-25 of the City Code by eliminating "the unamplified
human voice" as an exception to prosecution under Section 20-22. This
amendment will resolve a recently discovered conflict between the two
sections, and will allow the Police Department and Municipal Court to
enforce and prosecute offenders under Section 20-22 (Unreasonable Noise) as
' was done prior to discovery of the conflict."
Councilmember Mabry made a motion, seconded by Councilmember Edwards, to
adopt Ordinance No. 26, 1990 on Second Reading. Yeas: Councilmembers
Edwards, Horak, Kirkpatrick, Mabry, Maxey, and Winokur. Nays:
Councilmember Azari.
THE MOTION CARRIED.
Resolution 90-49 Creating a Special
Assessments Debt Service Fund
Reserve and Establishing Policy
Regarding Such Debt Reserves, Adopted
Following is staff's memorandum on this item:
"FINANCIAL IMPACT
No direct financial impact. This., Resolution creates a reserve fund for
special improvement district bonds for which no reserve fund other than the
surplus and deficiency fund currently exists. This reserve would be funded
by such periodic transfers of money from the General Fund Undesignated
Reserve to the Special Assessments Debt Service Fund Reserve as may be
' approved by Council. Portions of the transferred funds could then be
appropriated as needed for expenditure by the Financial Officer. Under
April 3, 1990
current federal tax law all or certain portions of the special assessment
debt service fund reserve may be subject to arbitrage rebate requirements.
EXECUTIVE SUMMARY
In February of 1989, Council culminated an extensive study of special
improvement district policies with the adoption of Ordinance No. 19, 1989
amending Chapter 22 of the City Code regarding public improvements.
Council determined it was in the best financial interest of the City to
require that future special improvement districts include a reserve fund as
part of the bonds issued for the district. Money in these individual
reserves would be used to meet the debt service on the bonds in the event
of cash flow problems within the district.
The Financial Officer has recommended to the Council Finance Committee that
a similar reserve fund be established from City funds to supplement the
City's debt service payments on special assessment bonds issued previously
which did not provide for such an individual reserve. The Committee has
determined that it is in the best financial interest of the City to create
this reserve and fund it with money from the General Fund Undesignated
Reserve. It was further agreed that a formal policy regarding debt service
reserves be adopted by the Council."
Finance Director Alan Krcmarik gave a brief presentation and noted the
recommendation to create a special assessment debt service fund reserve is
an attempt to maintain and enhance the fiscal health of the city. He noted
under Council's revisions to the SID policies, a reserve will be a part of
the funded proceeds of the bond issue for future districts and added no
bond reserve exists for districts created in the early 1980's. He stated
that in some cases, additional reserves will be needed to cover districts
which are not performing as planned and explained the policy creating the
reserve within the debt service fund.
Councilmember Horak thanked staff for its hard work on the item and
commented on the positive results that will be seen by changing the
guidelines for special improvement district approval.
Councilmember Horak made a motion, seconded by Councilmember Edwards, to
adopt Resolution 90-49.
Councilmember Mabry asked about the security for revenue and general
obligation debt issue by the City.
Alan Krcmarik stated the general obligation bonds are secured by the full
faith and credit of the City of Fort Collin
s
April 3, 1990
the bondholders could bring suit against the City to pay off the
deficiencies.
Councilmember Mabry requested clarification on the difference in security
between general obligation bonds and revenue bonds as opposed to special
improvement district bonds.
Alan Krcmarik stated the special improvement district bonds. contain
elements of both general obligation and revenue bonds. He stated the SID
bonds are guaranteed by a specific revenue source which involves
assessments paid by the property owners within the district receiving the
benefit of the improvements. He added the City Charter contains the
provision regarding the last twenty-five percent of the SID bonds. He
stated that if revenues are insufficient from the special stream of
revenues (the assessment payments by the property owners) the Charter
outlines a back-up pledge of property within the City. He described the
district provision in which a mill levy increase would offset any
deficiency in the districts. He stated the primary guarantee is from the
stream of revenues from the property and noted when an assessment is paid
late, the property in question can go through a process of tax certificate -
sale. He stated that once the property is sold, the monies from the sale
can be used to pay the indebtedness.
Councilmember Mabry asked to whom the bondholder looks if the payment is
not made.
Alan Krcmarik stated the contract on the bonds is between the City of Fort
Collins and the bondholders and stated the pledge in the bond documents is
to ensure the payments are made.
Councilmember Mabry stated the security for the bonds becomes the full
faith and credit of the City of Fort Collins.
Alan Krcmarik stated that regarding the first seventy-five percent of the
bonds, the City of Fort Collins is in a contract with the bondholder to
follow all the legal remedies to ensure the property owners pay the
assessments. He stated that in the event the assessments are not paid, the
City of Fort Collins will pursue the tax sale process to ensure the
interest payments on the bonds is paid.
Councilmember Mabry asked if the City had any districts that are
experiencing payment difficulty.
Alan Krcmarik stated there are districts in the twenty-five percent range
that are experiencing difficulty and added these districts will be closed
out in the coming years. He stated that current projections indicate a
cash deficiency when these particular districts are closed.
Councilmember Mabry asked about interest rates on City debt being less than
interest rates on special improvement district debt.
9a1 TON
April 3, 1990
Alan Krcmarik stated that in most cases it was accurate to believe that
interest rates on City debt are less than interest rates on special
improvement district debt and stated that special improvement district debt
is unrated debt. He noted that the City of Fort Collins general obligation
bonds have a "Double A" rating and added that sales and use tax have a "A
1" rating. He stated that due to the limited amount of projected cash
flows within the district, it is difficult to obtain insurance or a rating
from a major rating agency and stated this was the significant difference
between special improvement district debt and general city debt.
Councilmember Mabry noted that from the risk standpoint, special
improvement district debt is considered to be a greater risk than other
city debt.
Alan Krcmarik stated the risk element is not the reason for the rate
difference and stated that rating agencies view special improvement
district debt as having limited revenues. He added that the risk in that
debt is perceived to be higher.
Councilmember Winokur requested additional information on the interest rate
difference between SIDs and IDRBs.
Alan Krcmarik stated that both IDRB and SID debt carry higher rates than
the City's borrowing cost and noted a comparison between IDRBs and SIDS
would be based on the perceived strength of the project. He stated that a
IDRB with an insured reserve will fare better with competitive or lower
interest rates.
Councilmember Winokur asked if IDRBs typically have credit enhancements,
letters of credit or insurance and asked if any of the City's existing,
pre -new policy issues have credit enhancements associated with them.
Alan Krcmarik stated that IDRBs may be done without credit enhancements,
and added the City policy encourages the use of letters of credit and
insurance. He stated that he did not believe that the any of the pre -new
policy IDRBs contained credit enhancements.
City Manager Burkett clarified that in the first seventy-five percent of
the bonds, the covenants do not include a provision pledging the full faith
and credit of the City of Fort Collins and noted the distinction between
those bonds and the general obligation bonds.
Alan Krcmarik pointed out that iK the creation of the reserve, the City
does not intend to confer any additional rights on the bondholders.
Councilmember Mabry spoke against the Resolution and stated there is a
significant difference between providing reserves and adequately dealing
with the City's commitments with respect to the issues.that are paid down
to within twenty-five percent of the original principal. versus those that
are not. He stated the Resolution does not distinguish between the two
issues and noted he did not support using taxpayer funds to bail out
1
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April 3, 1990
' special improvement districts that are experiencing difficulties. He
stated the primary reason that special improvement district bonds have
higher interest rates versus City issued debt is due to the bondholder's
risk that the income and revenue generated from the property will not be
adequate to service the debt. He stated the property should be used to
satisfy the debt requirements, not the general revenues of the City of Fort
Collins.
Councilmember Winokur expressed appreciation to Councilmember Mabry for his
comments and stated he did not believe IDRB bonds were the same as SID
bonds. He stated that since SID bonds have credit enhancements and
additional security, SID bonds are considered to be obligations of the City
of Fort Collins. He stressed the importance of looking at the overall
financial health of the City. He stated the City of Fort Collins has an
excellent credit rating which translates to higher interest rates on bonds,
which translates to costs of a project. He explained the costs to the City
and the financial repercussions far out weigh the policy. He stated the
property is the revenue source and noted the four year wait and associated
lost opportunity cost. He stated that it is clear that the City has an
obligation to ensure to the bondholders, citizens, and taxpayers that the
best credit reputation be maintained for the fiscal health of the City.
Councilmember Horak spoke against "bailing out" the districts and stated it
was a grey issue. He stated that prudent financial management encourages
the establishment of the reserve fund.
Councilmember Edwards stated it is clear that the City would be taking
risks with the associated costs. He stated the establishment of the
reserve fund will maintain or improve the City's financial stature and
stated the use of tax dollars will stabilize the situation.
Mayor Kirkpatrick thanked the Finance Committee and staff for its hard work
on the policy and stated she would not be able to support the policy if it
weren't for prior issues associated with the SID policy which ensure
additional protection for the City. She noted the importance of fiscal
health for the community and of ensuring greater flexibility for future
Councils.
The vote on Councilmember Horak's motion to adopt Resolution 90-49 was as
follows: Yeas: Councilmembers Azari, Edwards, Horak, Kirkpatrick, Maxey,
and Winokur. Nays: Councilmember Mabry.
THE MOTION CARRIED.
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April 3, 1990
r--,
Ordinance No. 34, 1990, Appropriating $1.6 '
Million for Transfer From the General
Fund Undesignated Reserve to the
Special Assessments Debt Service
Fund Reserve and Appropriating
$465,000 in the Special Assessments
Debt Service Fund Reserve for
Expenditure by the Financial
Officer in 1990, Adopted on First Reading
Following is staff's memorandum on this item:
"FINANCIAL IMPACT
Appropriates $1.6 million from General Fund Undesignated Reserves to the
Special Assessments Debt Service Fund Reserve. Further appropriates
$465,000 to be expended in 1990 upon authorization of the Finance Director.
EXECUTIVE SUMMARY
This appropriation will provide money to pay the interest portion of the
debt service on certain special improvement district bonds. The portion
appropriated for expenditure in 1990 will be used as deemed necessary by
the Financial Officer. The appropriation of these monies is necessary
because the cash flow into the bond funds has been disrupted by the default
in payment of assessments by property owners within various districts. The
City holds tax certificates on the properties and intends to apply for
deeds to the land as soon as allowed by statute. The value of the property
should be sufficient to restore the cash flow and replace the $1.6 million
in the Undesignated Reserves, with interest, once the bonds have been paid
in full. Funds transferred into this designated reserve will be
appropriated on an annual basis and the Finance Director will be authorized
to transfer monies when needed to supplement payments to bondholders so
that the payment of principal by property owners is used to pay. the
principal portion of the debt service on outstanding bonds.
BACKGROUND
Chapter 22 of the City Code provides for the creation of special
improvement districts and the levying of assessments on the property within
the districts. It further provides that failure to pay assessment
installments will result in the entire remaining principal balance and
interest becoming due and than further delay in payment will cause the
property to be placed for sale in the same manner as delinquent general
property taxes. Many private' interests have purchased these tax
certificates for investment purposes. However, the City currently holds
169 tax certificates representing a face value of $2.4 million, of which
$1.9 million is principal. This amount corresponds to an equal amount of
special improvement district bonded indebtedness. It is anticipated that
the properties in SID #81 and #86 will be subject to special tax sale. If
sold today, the face value of the tax certificates held by the City would
increase by $2.95 million to a total of $4.3 million in principal.
873-
April 3, 1990
' Due to defaults on assessment payments, some of the assessment principal
received has been used to cover a portion of the bond interest payments.
In other words, there has not been a dollar for dollar redemption of bonds
based upon assessment principal received. Over time, this means that there
will be insufficient monies received through assessments to retire the
bonds and cover all interest payments. The difference is expected to be
made up through the penalty interest accruing on the tax certificates.
Until those certificates are redeemed or the property is deeded to the City
and subsequently sold, there is a need to ensure that principal received on
assessments is used to redeem bonds.
This Ordinance appropriates money to be used to pay the interest portion of
the debt represented by the S1.9 million in principal currently tied up in
tax certificates and the additional $2.4 million anticipated in 1990. An
appropriation ordinance will be presented to Council for adoption each
year. The amount appropriated from the Special Assessments Debt Service
Fund Reserve will be based on the principal amount represented by the tax
certificates held by the City. Since the regular tax sale is held in
November of each year, the Finance Director will inform Council in November
of the projected needs from the reserve in the subsequent year. The money
remaining in the designated reserve will be invested according to City
policies and will be credited for any interest earnings.
Current statutes require the City to hold the certificates for three years
' before applying for a Treasurer's Deed to the property. The process
includes title work and advertising and may take an additional year before
completion. Consequently, staff anticipates that the City may not be able
to market the properties until four years after the date on the tax
certificates. Once the property is sold, the proceeds would be deposited
in the bond fund for the appropriate district. Once all bonds have been
redeemed, the monies expended from the reserve would be returned to the
General Fund reserve and could be reappropriated for other City purposes."
Councilmember Mabry withdrew from discussion and vote on this item due to a
perceived conflict of interest.
Finance Director Alan Krcmarik gave a brief presentation regarding
transferring $1.6 million from the General Fund to the Special District
Debt Service Fund. He stated that many of the 1988 tax certificates have
been redeemed and added that $910,000 worth of principal has not been paid
by assessment payers. Fie stated from the tax certificates for 1989,
approximately $965,000 remain outstanding (principal) by the property
owners and commented on the on -going reallocation process. He explained
why the certificates cannot be sold and noted that $2.4 million has not
been received. He noted the total principal amount is $4,287,300 and
explained the appropriation request of $465,000 from the designated
reserve. He stated $465,000 will only cover' the assessments not received
on the interest on the principal amounts and stated the approach was
' conservative as it allows the received principal payment to be used to pay
principal on the bonds. He explained the reasons behind supplementing
interest payments and noted that over a four year period, the property will
-874-
April 3, 1990
be sold and, due to the penalty interest on the assessments, the money will
be recovered. He explained the district bonds extend past the redemption
period and the federal regulations, the General Fund will not be reimbursed
until all of the bonds in the district have been repaid. He added that it
could be a long time before the money is repaid to the General Fund.
Councilmember Winokur asked about potential net loss of revenues.
Alan Krcmarik that at the time the consolidated district was completed, the
net effective interest rate was 8.68% and noted the deduction of certain
costs that were included in the higher rate. He stated once those are
subtracted, the investment restricted rate was 8.22% and noted the figures
change over time. He pointed out that as the early debt was retired the
interest rate was lower and noted the most recent investment report showed
8.60% on the City's investments. He noted the remaining cost will be
approximately $3000 in the first year and added that as the City draws
down, the amount will become lower over the four year period.
Councilmember Maxey commented on the interest from tax certificates used to
offset the interest paid and noted it appeared that the property is not
worth what has accumulated against it. He suggested the City was heading
for a dead end situation with the taxpayers footing the bill.
Alan Krcmarik agreed that the possibility did exist and noted the market
analysis on the value of the property supporting the tax certificates. He
stated he believed that certain parcels don't contain enough value to
support the -amount due on the tax certificate and noted other parcels which
pay the penalty interest will mitigate the effect. He commented on the
parcels where the property value was more than the tax certificate and
commented on the pledge requirement for the last twenty-five percent of the
bonds.
Councilmember Maxey commented on the "gambling" situation for the taxpayers
of Fort Collins and asked if rules had been established to minimize the
losses. He suggested marketing the certificates sooner by selling the
property and encouraged the development of a plan.
Alan Krcmarik stated since 1988 staff has been working with underwriters on
a plan to market the tax certificates.
Councilmember Maxey asked about acquiring property through tax certificates
and about making changes to the Charter provisions relating to negotitions
for the sale of City property.
City Attorney Roy stated he had not received any direction to investigate
or change the provision regarding the Council's ability to discuss (in
Executive Session) the advisability of any proposed sale of City property
as opposed to the acquisition of City property. He stated the provision is
contained in the City Charter and requires a vote of the people to enact
any change.
1
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April 3, 1990
' Councilmember Maxey made a motion, seconded by Councilmember Horak, to
adopt Ordinance No. 34, 1990 on First Reading.
Councilmember Winokur stated he would vote in favor of the ordinance, but
did not completely support it. He pointed out it might be a long time
before the City gets the money back. He stated the money could be paid
back within three to four years and commented on the progress with respect
to rules that provide protection for the City when new districts are
formed. He stated it was a cash flow problem and noted the importance of
looking at the issue of owing more on the property than it is worth.
Councilmember Maxey encouraged the development of a program which minimizes
the City's losses.
The vote on Councilmember Maxey's motion to adopt Ordinance No. 34, 1990 on
First Reading was as follows: Yeas: Councilmembers Azari, Edwards, Horak,
Kirkpatrick, Maxey, and Winokur. Nays: None. (Councilmember Mabry
withdrawn)
THE MOTION CARRIED.
City Manager Burkett noted that he had been working on the issue for four
years and expressed appreciation to Council for making the difficult
decisions. He commented on staff's efforts to maximize the opportunities
to liquidate property and reduce debt.
Amending Section 22-95 and Section 22-97
of the Code Relating to Abatement
of Assessments. Adopted on Second Reading
Following is staff's memorandum on this item:
"EXECUTIVE SUMMARY
This Ordinance was adopted 6-0 on First Reading on March 20.
The first section of the Ordinance amends Section 22-95 to add provisions
which would empower the City Council to abate all or any portion of an
assessment, including principal, interest or penalty interest. The
recommendation for abatement must first come from the Financial Officer and
certain conditions must be met before the abatement can be, considered.
The second section of the Ordinance amends Section 22-97 to clarify that
the Financial Officer may assign tax certificates received through
foreclosure of the City's assessment lien for less than full face value if
such sale is approved by Council by ordinance under the provisions of
Section 23-111, as a sale of an interest in real property."
I
Councilmember Mabry withdrew from discussion and vote on this item due to a
perceived conflict of interest.
April 3, 1990
Councilmember Horak made a motion, seconded by Councilmember Winokur, to '
adopt Ordinance No. 27, 1990 on Second Reading. Yeas: Councilmembers
Azari, Edwards, Horak, Kirkpatrick, Maxey, and Winokur. Nays: None.
(Councilmember Mabry withdrawn)
THE MOTION CARRIED.
Appropriating Unanticipated Revenue in
the Capital Projects Fund and
Authorizing the Transfer of
Appropriated Amounts from the Street
Oversizing Fund to the Capital
Projects Fund, Adopted on Second Reading
Following is staff's memorandum on this item:
"EXECUTIVE SUMMARY
In May of 1987, the Council established the Centre for Advanced Technology
Special Improvement District No. 90 (the "District"). This SID consists of
approximately 158 acres of land located in the central portion of the City,
adjacent to and northeast of the intersection of Shields Street and Drake
Road. The District is part of the 235 acre Centre development and is
adjacent to the south campus of Colorado State University. '
The City is now prepared to begin the closeout of this District. In
accordance with Chapter 22 of the City Code, preparation of a statement of
cost, preliminary assessment roll, and a notice to be sent to property
owners has been completed.
This Ordinance, which was adopted 6-0 on First Reading on March 20,
appropriates additional funds needed to cover street costs in the District.
On March 20, Council also adopted Resolution 90-40, which directs the City
Clerk to publish notices in the daily newspaper and send individual notices
to each property owner in the District. This notifies the owners of the
total cost of improvements, the portion to be paid by the City, and the May
1, 1990 hearing date of the assessing ordinance."
Councilmember Mabry withdrew from discussion and vote on this item due to
perceived conflict of in'Lerest.
Councilmember Edwards made a motion, seconded by Councilmember Azari, to
adopt Ordinance No. 28, 1990 on Second Reading.
Councilmember Winokur expressed concern regarding costs associated with the
installation of turn lanes at an intersection that needs to be completely
resurfaced.
City Manager Burkett commented on the possibility of total reconstruction ,
of Shields Street and Drake Road and noted the design problem. He referred
-877-
April 3, 1990
' to the review of $60M worth of street reconstruction needs and noted that
Shields and Drake did not make the Choices 95 list.
Councilmember Horak commented on problems associated with the shadows in
the winter and ice formation on the drainage portion of the intersection
and suggested that much of the problem on Drake Road was due to ice thawing
and refreezing.
The vote on Councilmember Edwards' motion to adopt Ordinance No. 28, 1990
on Second Reading was as follows: Yeas: Councilmembers Azari, Edwards,
Horak, Kirkpatrick, Maxey, and Winokur. Nays: None. (Councilmember Mabry
withdrawn)
THE MOTION CARRIED.
Other Business
Councilmember Horak made a motion, seconded by Councilmember Mabry, to
direct staff to look at changes in the public accommodations ordinance
dealing with the issue of gender with respect to men's and women's
restrooms and requested formal consideration of the administrative
complaint procedure.
Councilmember Mabry requested staff bring back recommendations for Council
' consideration.
Clarence Newcomb stated that none of the staff at New Creations had ever
requested that the discrimination ordinance be abolished and pointed out
that they were in support of updating the City's discrimination ordinance.
He stated that economically and physically there was no alternative except
to close New Creations. He added that the specific purpose of New
Creations was to meet the needs of privacy and modesty of women and
expressed appreciation to Pete Dallow and Mary Crumbaker-Smith for their
assistance in the issue.
City Manager Burkett clarified the discrimination issue regarding New
Creations and explained that action was not taken until a discrimination
complaint was received. He added that an allegation had been made against
New Creations, but' a determination has not been made regarding the
violation and noted that none of the City staff requested contributions
from New Creations on behalf of'the City.
Councilmember Edwards commended Mr. Newcomb; and the citizens that spoke
regarding the discrimination issue. He noted that government is a process
which is constantly being refined to meet the needs of the community and
expressed support for the creation of a better law.-
Councilmember Horak clarified that his motion did not contain words to
' direct staff to make the Fort Collins public accommodations ordinance
comply with state and federal law.
April 3, 1990
Mayor Kirkpatrick noted the comments from citizens serve to educate Council '
and the community and added that by working together, changes can be made.
The vote on Councilmember Horak's motion to direct staff to look at changes
in the public accommodations ordinance dealing with the issue of gender and
requesting formal consideration of the administrative complaint procedure
was as follows: Yeas: Councilmembers Azari, Edwards, Horak, Kirkpatrick,
Mabry, Maxey, and Winokur. Nays: None.
THE MOTION CARRIED.
Mayor Kirkpatrick brought her motion from March 20 relating to scaling down
the 4th of July fireworks display off the table and commented on
maintaining the size of the July 4th celebration at City Park but reducing
the size of the fireworks display.
City Manager Burkett stated the bid had gone out for the fireworks show and
noted the low bidder is limited in the shell size due to limits on its
insurance policy. He stated that it is outside of the City's ability to
change the limits of the insurance company and stated that the insurance
policy is limited to four inch shells.
Councilmember Edwards noted the use of the word smaller was directed at the
size, not quantity of the shells.
Mayor Kirkpatrick stated she was withdrawing the March 20 motion. '
Councilmember Maxey, the seconder of the motion, accepted Mayor
Kirkpatrick's decision to withdraw the March 20 motion.
Adjournment
Councilmember Azari made a motion, seconded by Councilmember Maxey, to
adjourn the meeting. Yeas: Councilmembers Azari, Edwards, Horak,
Kirkpatrick, Mabry, Maxey, and Winokur. Nays: None.
The meeting adjourned at 10:10 p.m.
Mayor
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