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HomeMy WebLinkAboutMINUTES-05/21/1991-RegularMay 21, 1991 ' 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, May 21, 1991, at 6:30 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll call was answered by the following Councilmembers: Azari, Edwards, Fromme, Kirkpatrick, Maxey and Winokur. Nays: None. Councilmember Horak arrived at 6:55 p.m. Staff Members Present: Burkett, Davis, Roy. Citizen Participation Al Bacilli, 520 Galaxy Court, spoke of the $.50 surcharge for the E-911 system and requested information on who sponsored the charge. Karen Gaebler, 3116 West Vine Drive, expressed concerns regarding the Poudre Fire Authority Training Facility and requested information regarding types of materials that would be burned, frequency of burning and what impact the burning would have on the areas air, water and wildlife. She asked for a slower approach to allow time for a neighborhood meeting to discuss the impact the training facility may have on Overland Trail and the foothills. Judy Hart, 3313 West Vine Drive, spoke of the Poudre Fire Authority Training Facility questioning the effect the facility would have on air quality and water usage. She noted the site location was not on the original list of sites and requested an air quality study be performed to determine what impact it would have. City Manager Steve Burkett stated the proposed facility is not set for development and has not yet received funding. He said there would be ample time for community involvement. Mike Vermilion, 319 E. Swallow, invited interested citizens to join a June 1 bicycle ride along Harmony Road sponsored by the Choice City Cycling Coalition. He stated the purpose of the ride is to educate people on what it is like to bicycle on Harmony Road. Agenda Review City Manager Steve Burkett noted Council packets contained a new ordinance and resolution for Item 13, Items Relating to the Fort Collins Housing'Authority. City Manager Steve Burkett asked that Item #29, Resolution 91-81 Appointing a ' Representative to the Hazardous Waste Task Force, be removed from the Agenda. 212 Councilmember Winokur requested Item #14, Hearing and First Reading of Ordinance ' No. 60, 1991 Appropriating $400,000 from Existing Reserves in the Special Assessments Debt Service Fund for Expenditure in 1991, be withdrawn 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 to be "pulled" the Consent Calendar will be considered separately under Agenda Item #22, Pulled Consent Items. Q 7. Councilmember Fromme, as liaison to the Library Board, is recommending that the 2 alternate positions on the Board be converted to regular positions at this time, changing the composition from 5 members plus 2 alternates to a total of 7 regular members. Both alternate positions expire July 1, 1991. Adoption of this Ordinance, with an effective date of July 1, 1991, will eliminate the alternate positions without causing the current alternates to have their service on the Board terminated before a regular position becomes available. This Ordinance, which was adopted 6-0 on First Reading ' on May 7, also contains language which would limit service on the board to two consecutive 4-year terms, in accordance with Resolution 81-85, which provides that no person may serve on any one board or commission for more than 8 consecutive years (2 complete terms). Councilmember Horak, as liaison to the Storm Drainage Board, is recommending that the 2 alternate positions on the Board be converted to regular positions at this time, changing the composition from 7 members plus 2.alternates to a total of 9 regular members. Both alternate positions expire July 1, 1991; however, only one of the alternate positions is filled at this time. Adoption of this Ordinance, with an effective date of July 1, 1991, will eliminate the alternate positions without causing the current alternate to have his service on the Board terminated before a regular position becomes available. This Ordinance, which was adopted 6-0 on First Reading on May 7, also contains language which would limit service on the boardto two consecutive 4-year terms, in accordance with Resolution 81-85, which provides that no person may serve on any one board or commission for more than 8 consecutive years (2 complete terms). 213 8. Items Pertaining to the Buderus First Annexation and Zoning. ' A. Second Reading of Ordinance No. 52, 1991, Annexing Property Known as the Buderus First Annexation to the City of Fort Collins, Colorado. Second Reading of Ordinance No. 53, 1991, Amending the Zoning District Map Contained in Chapter 29 of the Code of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Buderus First Annexation to the City of Fort Collins. On May 7, Council adopted Resolution 91-67 Setting Forth Findings of Fact and Determinations Regarding the Buderus First Annexation. On May 7, Council adopted on First Reading by a vote of 6-0 Ordinance No. 52, 1991 and Ordinance No. 53, 1991, which annex and zone approximately 30 acres located south of E. Vine Dr. and west of I-25. The requested zoning is the I-L, Limited Industrial District with a PUD condition. The property is presently undeveloped. The property is currently zoned I - Industrial in the County. This is a voluntary annexation. APPLICANT: Betty Y. Buderus OWNER: Same 3012 E. Vine Dr. Ft. Collins, CO. 80524 9. Items Pertaining to the Buderus Second Annexation and Zoning. A. Second Reading of Ordinance No. 54, 1991, Annexing Property Known as the Buderus Second Annexation to the City of Fort Collins, Colorado. Second Reading of Ordinance No. 55, 1991, Amending the Zoning District Map Contained in Chapter 29 of the Code of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Buderus Second Annexation to the City of Fort Collins, Colorado. On May 7, Council adopted Resolution 91-68 Setting Forth Findings of Fact and Determinations Regarding the Buderus Second Annexation. On May 7, Council adopted on First Reading by a vote of 6-0 Ordinance No. 54, 1991 and Ordinance No. 55, 1991, which annex and zone approximately 108 acres located south of E. Vine Dr. and west of I-25. The requested zoning is the I-L, Limited Industrial District with a PUD condition. The property is presently undeveloped. The. property is currently zoned I - Industrial in the County. This is a voluntary annexation. APPLICANT: Betty Y. Buderus OWNER: Same 3012 E. Vine Dr. Ft. Collins, CO 80524 1 214 10. 12. Located Along the Side Lot Line of 1205 Parkwood Drive. ' Light and Power changed the location of the oval electrical vault, thereby negating the need for the existing easement. All City departments and private utility companies have been informed of the location and the proposed vacation of the utility easement change and have no objections. A new replacement easement agreement located along the front of the lot line of 1205 Parkwood Drive is on the current Council agenda for approval under Routine Deeds and Easements. Ordinance No. 29, 1991, established the E-P Employment Park Zoning District for the City. However, the ordinance did not amend Section 29-71 to include that zoning district in the list of districts contained in Section 29-71. The purpose of this Ordinance is housekeeping only and will add the E-P District to the list of districts. On July 3, 1990, Council adopted Resolution 90-100, which established a ' policy for the elimination of alternate positions on boards and commissions. That Resolution provided for the Council liaison assigned to each board or commission with alternate positions to make a recommendation of changes in the composition of the board or commission to which he or she is assigned in order to achieve the elimination of alternate positions. Councilmember Winokur, as liaison to the Senior Advisory Board, is recommending that the 2 alternate positions on the Board be converted to regular positions at this time. Presently, Council appoints 7 regular members to serve 4-year terms and 2 alternates to serve 2-year terms. In addition, 2 members are appointed by the Senior Center Board to serve terms of 2 years. This Ordinance changes the composition of the Board to 11 regular members (9 Council -appointed members plus 2 Senior Center Board representatives). Adoption of this Ordinance, with an effective date of July 1, 1991, will eliminate the alternate positions without causing the current alternates to have their service on the Board terminated before a regular position becomes available. This Ordinance also contains language which would limit service on the board to two consecutive 4-year terms, in accordance with Resolution 81-85, which provides that no person may serve on any one board or commission for more than 8 consecutive years (2 complete terms). 215 1 13 14. 15. Items Relating to the Fort Collins Housing Authority. Resolution 91-74 Exempting the Fort Collins Housing Authority From the Council Policy Eliminating Alternate Positions on Boards and Commissions. Hearing and First Reading of Ordinance No. 59, 1991, Amending Chapter 2 Pertaining to the Fort Collins Housing Authority. The proposed Resolution would expressly exempt the Housing Authority from the Council policy of eliminating alternate members from City boards and commissions. The proposed Ordinance would amend the provisions of Section 2-247 of the City Code to expressly authorize the appointment of two alternate commissioners in addition to the five regular commissioners. This Ordinance would provide money to pay the interest portion of the debt service on special improvement district bonds. This 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 currently holds 107 certificates representing $7,217,963 in face value, the principal component of which is $4,188,000. This amount corresponds to an equal amount of special improvement district bonded indebtedness. Adoption of this $400,000 from the pay the interest purchase. Ordinance would allow the Financial Officer to spend Designated Reserve for Special Improvement Districts to portion on the debt represented by the certificates of This ordinance appropriates additional funds from the Firefighters' Pension Fund to cover the transfer of monies from the fund into the new money purchase plan adopted by the Firefighters and the City Council. The appropriation is necessary because the selection of the plan administrator, Prudential Asset Management, had not been completed by year end and it was not possible to encumber the funds without a completed contract with the new plan administrator. The amount of the appropriation will be combined with existing 1991 appropriations in the fund to cover the plan's liabilities to the members of the plan that opted to convert to the money purchase plan. 216 16. 17. In 1974, the City entered into an agreement with the State Board of Agriculture concerning the furnishing of water and sewer service by the City to Colorado State University. Since that time, the agreement has been amended as needed to adjust service fees as the City rates change. Percentage rate adjustments for CSU correspond to rate adjustments for all other customers serviced by the City. The proposed amendment will increase CSU's water rate from $1.01 to $1.05 per.1000 gallons and the sewer rate from $1.05 to $1.17 per 1000 gallons, based on the rate changes that were adopted by Council effective January 1. Rate adjustments for CSU are made effective July 1st of each year to accommodate its budgeting cycle. The proposed amendment to the agreement has been approved by CSU. The property being considered for annexation and the adjacent properties which comprise the concurrent East Lincoln Second Annexation, have, for a period of not less than three (3) years, been completely surrounded by property contained within the boundaries of the City of Fort Collins. The Burlington Northern property being considered for annexation is approximately 18.35 acres in size and is located north of East Prospect Road, south of East Mulberry Road and east of Riverside Drive. The property consists of the Burlington Northern Railroad right-of-way. ' The proposed Resolution makes findings that the annexation substantially complies with the Municipal Annexation Act. The Resolution also determines that a public hearing should be established regarding the annexation and zoning, and directs that notice be given of the hearing. The hearing will be held at the time of first reading of the annexation and zoning ordinances. Not less than thirty days of prior notice is required by Colorado law. 18. Resolution 91-77 Initiating Annexation Proceedings for the East Lincoln Avenue Second Annexation. The property being considered for annexation and the adjacent property which comprises the concurrent Burlington Northern Southeast First Annexation, have, for a period of not less than three (3) years, been completely surrounded by property contained within the boundaries of the City of Fort Collins. The area of the properties being considered for the East Lincoln Avenue Second Annexation is approximately 38.88 acres in size and is located south of East Lincoln Avenue, north and east of Riverside Drive, and west of Lemay Avenue and consists of ten separate parcels. Approximately three quarters of this property is vacant and undeveloped with the remaining' quarter used for various businesses including, auto repair, contractor/construction offices, indoor skateboard arena, creamery, trucking company, oil company office and outdoor storage areas. The Poudre ' River and the City bike trail runs through this property. 217 ' The proposed Resolution makes findings that the annexation substantially complies with the Municipal Annexation Act. The Resolution also determines that a public hearing should be established regarding the annexation and zoning, and directs that notice be given of the hearing. The hearing will be held at the time of first reading of the annexation and zoning ordinances. Not less than thirty days of prior notice is required by Colorado law. 19. This request pertains to the Amended Plat of Lot 6, Brookwood Estates, subdivision request. The property is located south of Harmony Road, on Crest Road. The amended plat consists of splitting an existing 10.8 acre lot into two single-family lots, which would create one additional building site. The site is zoned FA-1 Farming (minimum 2.29 acre lot size) and the surrounding land uses consist of large lot single-family residential uses. The site is not eligible for voluntary annexation because it does not meet the 1/6 contiguous boundary requirement of State annexation laws. City limits are presently adjacent to less than 1/6 of the perimeter boundary of the site. In order for a property to be subdivided in the Urban Growth Area (UGA), it must be shown that the property will conform to the UGA Phasing Criteria. The proposed development meets three of the four UGA Phasing Criteria, satisfying the requirement for public water capacity (service provided by Fort Collins -Loveland Water District), the public sewer capacity requirement (service provided by South Fort Collins Sanitation District) and the contiguity to existing development requirement (the site being part of the Brookwood Estates Subdivision). A waiver is being requested for the requirement for public street capacity. 20. Resolution 91-79 Authori7ina tha FYarutinn of n Cnnn1omon+n1 Dnwor 14no The overhead power line south and west of 200 Hickory Street is installed on property owned by the Union Pacific Land Resources Corporation (UPLRC). The UPLRC agreement which covered the installation and maintenance of the line expires in June, 1991. This supplemental agreement extends the original agreement for an indefinite period. It requires a one-time consideration of $2,890. UPLRC's procedures require the City to approve license agreements by Council resolution. Ordinances on Second Reading were read by title by Molly Davis, Deputy City Clerk. Item #6. 1 218 Item #7. Item #8 Item #9 Items Pertaining to the Buderus First Annexation and Zoning. A. a Items Pertaining to the Buderus Second Annexation and Zoning. A. 1.1 Ordinances on First Reading were read by title by Molly Davis, Deputy City Clerk Item #10. Hearing and First Reading of Ordinance No. 56, Vacating a Utilit Item #11. Item #12. Item #13. Items Relating to the Fort Collins Housing Authority. B. Hearing and_First Reading of Ordinance No. 59, 1 Item #14. Item #15. Service Fund for Expenditure in 1991. 219 Item #26. Item #27. Item #28. Councilmember Azari made a motion, seconded by Councilmember Edwards, to adopt and approve all items not removed from the Consent Calendar. Yeas: Councilmembers Azari, Edwards, Fromme, Kirkpatrick, Maxey and Winokur. Nays: None. Ordinance No. 60, 1991 Appropriating $400,000 from Existing Reserves in the Special Assessments Debt Service Fund for Expenditure in 1991, Adopted on First Reading The following is staff's memorandum on this item. "EXECUTIVE SUMMARY ' This Ordinance appropriates $400,000 from the Designated Reserve for Special Improvement Districts for the purpose of paying the interest portion of the debt service attributable to properties on which the City holds certificates of purchase. The Designated Reserve has a fund balance of $1,417,532.21. Adoption of this Ordinance will bring the fund balance to $1,017,532.21. FINANCIAL IMPACT This Ordinance would provide money to pay the interest portion of the debt service on special improvement district bonds. This 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 currently holds 107 certificates representing $7,217,963 in face value, the principal component of which is $4,188,000. This amount corresponds to an equal amount of special improvement district bonded indebtedness. Adoption of this Ordinance would allow the Financial Officer to spend $400,000 from the Designated Reserve for Special Improvement Districts to pay the interest portion on the debt represented by the certificates of purchase. I:7fiP{eliil/J;UA Last year the Council appropriated $1.6 million from Undesignated Reserves in the General Fund to create a Designated Reserve for Special Improvement Districts. The purpose of the reserve is to pay the interest portion of the debt 220 attributable to properties on which the City holds certificates of purchase. This is necessary so that the principal amount of assessments received by the ' City will not be used to cover the interest attributable to properties whose owners have defaulted. This way, principal paid will be used to call bonds and reduce the debt. The money advanced by the Designated Reserve is expected to be reimbursed once the certificates are redeemed or the property is deeded to the City and subsequently sold. Analysis of the Designated Reserve Original Reserve Created 4190 $1,600,000.00 1990 Authorization $ 465,000.00 1990 Interest Expenses Not Covered by Assessment Payments: SID 77 Original Boardwalk 14,467.39 SID 81 Provincetowne/Portner 92,916.72 SID 86 South Lemay 173,282.28 Total Amount Used in 1990 $ 280,666.39 Balance of 1990 Authorization S 184,333.61 Balance of Original Reserve $1,135,000.00 Unspent 1990 Authorization 184,333.61 Interest Earned 1990 82,434.13 Interest earned 1991 to Date 15,764.47 Balance of Reserve $1,417,532.21 ' Projected Authorization for 1991 400,000.00 Balance of Reserve in 1991 $1,017,532.21 Deed Applications The Colorado Revised Statutes require the City to hold the tax certificates for three years before applying for a Treasurer's Deed to the property. In November of this year the City will apply for the deeds to 11 properties, the tax certificates on which total $1.5 million, of which $897,000 is principal. If the certificates are not redeemed by a party - in- interest, the City will market the properties and upon sale repay the Designated Reserve for any money advanced on behalf of those properties." Councilmember Winokur made a motion, seconded by Councilmember Fromme, to adopt Ordinance No. 60, 1991 on First Reading. Councilmember Winokur questioned if there were any particular SID's involved in the authorization. 221 1 Finance Director Alan Krcmarik spoke of the delinquent SID's and stated he would keep the Finance Committee informed of the process. Bruce Lockhart, 2500 E. Harmony Road, spoke to the ordinance. The vote on Councilmember Winokur's motion was as follows: Yeas: Councilmembers Azari, Edwards, Fromme, Kirkpatrick, Maxey and Winokur. Nays: None. THE MOTION CARRIED. Staff Reports City Manager Steve Burkett noted an additional resolution relating to public housing was included in the agenda packets. Resolution 91-80 Directing the Cultural Resources Board to Facilitate the Development of a Community -wide Cultural Plan. Adopted as Amended The following is staff's memorandum on this item. "EXECUTIVE SUMMARY Earlier this year Council requested the Cultural Resources Board to develop a city-wide cultural plan. This resolution authorizes the Cultural Resources Board to begin the planning process which is described in the attached memo." Councilmember Azari made a motion, seconded by Councilmember Fromme, to adopt Resolution 91-80. Director of Cultural, Library and Recreation Services Mike Powers presented background information on this item and urged Council to adopt the resolution. Jane Folsom, Chairperson of the Cultural Resources Board, reported the Board received a $7,500 planning grant from the State Council on Arts and Humanities. She requested Council give the Board authorization to begin the planning effort, and commented that there might be a need for monetary assistance in the future. Folsom spoke of the Cultural Resources Board's position in the process and of the assembling of a task force. She stated the task force would be compiled from members of the Steering Committee, community and small organizations. Councilmember Azari expressed concern that the volunteer board would be advisors to staff and requested that the Board report to Council regarding the structure of the task force. Mike Powers clarified staff support would not be available for the plenary process. Councilmember Fromme supported the resolution and said she would like to see more of a leadership role from the Cultural Resources Board. She urged the Board to 222 hire a local consultant if one is needed to formulate the plan, and added she felt the planning process could be accomplished without the use of a consultant. ' Councilmember Edwards supported the resolution. Councilmember Azari stated she supported the resolution and believed it was a great opportunity to expand culture and the arts in Fort Collins. Mayor Kirkpatrick expressed the need for a strategy as well as clear direction. She offered an amendment, seconded by Councilmember Edwards, to delete Section 2 of the resolution. Councilmember Fromme offered an amendment in the second "WHEREAS" paragraph changing the word "community" to "the Cultural Resources Board". THE MOTION DIED DUE TO LACK OF A SECOND. The vote on Mayor Kirkpatrick's amendment was as follows: Yeas: Councilmembers Azari, Edwards, Fromme, Horak, Kirkpatrick, Maxey and Winokur. Nays: None. THE MOTION CARRIED. The vote on Councilmember Azari's motion as amended was as follows: Yeas: Councilmembers Azari, Edwards, Fromme, Kirkpatrick, Maxey and Winokur. Nays: Councilmember Horak. THE MOTION CARRIED. ' Ordinance No. 62, 1991, Amending Chapter 26 of the Code of the City of Fort Collins Relating to Rates for the Water and Wastewater Utility. Adopted on First Reading The following is staff's memorandum on this item. "EXECUTIVE SUMMARY This ordinance adjusts the City's non -metered water rate to more accurately reflect the cost of providing water service to customers who are not metered. On November 20, 1990, City Council adopted Resolution 90-147 Approving Policies and Procedures for Compliance with the Water Metering Act of Colorado. Section 10 of that Resolution stated "that the City's existing non -metered (flat) water rate does not accurately reflect the cost of providing non -metered water service to single family homes and duplexes and that the non -metered rate shall be adjusted via separate rate ordinance to reflect current cost of service before July 1, 1991." Currently, the non -metered water charge is the same for all customers with a lot area between 6,000 and 9,000 square feet. Approximately 53% of the City's non - metered customers have a lot area between 6,000 and 9,000 square feet. The 223 proposed ordinance eliminates the uniform monthly water charge for these ' customers. Under the proposed non -metered rate, all non -metered customers would pay a monthly charge proportional to the size of their lot. The proposed rate change would increase the non -metered monthly water bill for an average customer (lot area = 8,600 square feet) from $23.32 to $25.16, an increase of 7.89%. The largest increase would be for customers with a lot area of 9,000 square feet; their monthly charge would increase by 9.77%, from $23.32 to $25.60. Monthly charges for customers with lots between 5,000 and 6,000 square feet, and larger than 11,000 square feet would decrease under the proposed non -metered rate. The proposed non -metered rate is designed to generate the same amount of revenue from the 19,400 non -metered customers receiving City water service ($6,124,000 in 1991). The last adjustment to the non -metered rate was on January 1, 1991, when the monthly charge for all non -metered customers increased by 6.OY. At its May 2 meeting, the Water Demand Management Committee reviewed the proposed ordinance and recommended adoption. Staff will be preparing a press release describing the proposed change. A notice will also be sent to customers during the July/August billing cycle." Linda Burger of the Water Utility Department gave a presentation on this item ' clarifying the purpose of the ordinance is to more accurately reflect the cost of service to the customer. Councilmember Edwards made a motion, seconded by Councilmember Maxey, to adopt Ordinance No. 62, 1991 on First Reading. Burger answered Council questions with regard to the cost of water fees based on lot sizes and reported on the development of incentive programs which would improve the volunteer metering process. Bruce Lockhart, 2500 E. Harmony Road, said that citizens should have been informed of increased rates prior to the rates being raised and noted rates for some citizens had been raised twice in one year. Councilmember Horak spoke in support of the ordinance and requested a comparison of nonmetered and metered rates. The vote on Councilmember Edwards' motion was as follows: Yeas: Councilmembers Azari, Edwards, Fromme, Horak, Kirkpatrick, Maxey and Winokur. Nays: None. THE MOTION CARRIED. Pill Ordinance No. 63, 1991, Repealing Section 17-103 Pertaining ' to Ball Playing. Adopted on First Reading The following is staff's memorandum on this item. "EXECUTIVE SUMMARY The proposed Ordinance, if adopted, would repeal the existing prohibition in the City Code against ball playing upon any public street, alley or sidewalk. While the ordinance has been used on occasion to address particular situations in which large numbers of persons have congregated on busy streets, Police Services advises that repeal of the Ordinance would not appear to present any significant risk to the public health, safety or welfare. BACKGROUND: The prohibition against ball playing was originally adopted in 1909 as a portion of a larger ordinance which also prohibited the throwing of missiles and "engaging in any practice, sport or exercise having a tendency to frighten horses, or other animals, or to annoy persons passing in the streets, or on the sidewalks of the City of Fort Collins." At present, a separate Code provision (Section 17-102) prohibits the throwing of missiles at any vehicle, building or person in any public place. In view of the separate treatment of the concern presented by the other portions of the original ordinance, Council may consider that the prohibition against ball playing upon streets and sidewalks is no longer necessary in the interest of public safety." ' Councilmember Winokur made a motion, seconded by Councilmember Horak, to adopt Ordinance No. 63, 1991 on First Reading. City Attorney Steve Roy responded to Council questions and outlined activities of a similar nature that were also prohibited by ordinance. The vote on Councilmember Winokur's motion was as follows: Yeas: Councilmembers Azari, Edwards, Fromme, Horak, Kirkpatrick, Maxey and Winokur. Nays: None. THE MOTION CARRIED. Ordinance No. 64, 1991, Authorizing the City Manager to Enter into an Agreement for the Financing by Lease Purchase of Real Property and Improvements located at 2554 Midpoint Drive Fort Collins. Colorado, Adopted The following is staff's memorandum on this item. "EXECUTIVE SUMMARY The purchase price is $351,930. The property would be financed by Norwest Investment Services, Inc. at a rate of 7.08% for 10 years. Police Services has the lease purchase payment in its base budget. The impact of this lease purchase ' 225 ' financing will be an increase in the percentage of debt payments as compared to total general operating expense by 1110th of a percent. This Ordinance authorizes the City Manager to enter into a lease purchase agreement with the Norwest Investment Services, Inc. to acquire the Marksman Shooting Range. Council authorized the City Manager to purchase the Marksman Range during the 1991 budget process. The City is currently leasing the Marksman Range from Dean Crockett Pitcairn and recommends lease/purchasing the property now to reduce the financial impact. BACKGROUND: The options analyzed for acquisition of the Range, rather than continuing the lease, were outright purchase and lease purchase. The least costly long term method of acquisition is lease purchase; however, the trade off is a continued commitment for 10 years. The reasons for this recommendation are: 1. The lease/purchase payments are currently budgeted in the Police Services budget; 2. Lease/purchase is affordable and least costly in the long run than continuing to lease; and, 3. No funds are budgeted or available for outright purchase. The negotiated agreement with Norwest provides assurances which make the lease/purchase method flexible: o If the financing interest rate should drop, the City would have the opportunity to refinance to take advantage of a reduced interest rate; and/or o The City could purchase the property at any quarterly payment date without penalty if the interest earnings on investments should fall and funds are available. The ]ease/purchase does not adversely impact the City's credit rating. Based on financial realities, staff recommends purchasing the Marksman Shooting Range using the financial package offered by Norwest Investment Services, Inc. Attached is detailed information supporting the need for the facility and how it will be used by Police Services and others." Councilmember Edwards withdrew from discussion on this item due to a perceived conflict of interest. General Services Director Tom Frazier gave a presentation on this item. He outlined the lease/purchase option and urged Council to allow the City Manager to enter into a lease/purchase agreement with Norwest. Councilmember Maxey made a motion, seconded by Councilmember Azari, to adopt Ordinance No. 64, 1991 on First Reading. ' Frazier clarified the agreement would be contingent upon incoming revenues. 226 Police Chief Fred Rainquet responded to Council questions and stated he believed ' other agencies might be limited to the usage of the facility due to budget constraints. Division Commander Bud Reed spoke of a meeting with the County between 1988-90 in which the County indicated it was not interested in becoming a co-owner of the facility. Bruce Lockhart, 2500 E. Harmony Road, stated he would like to see the shooting range available to the public and hoped it would remain in the public sector. Councilmember Horak stated he would like to speak with other agencies regarding their interest in a shooting range since it had been sometime since they were contacted on this issue. He commented the price charged for other agencies using the facility should reflect the cost of providing the service. Mayor Kirkpatrick stated she supported the ordinance and noted the finance package was in the best interest of the taxpayer. She felt the Police Training Facility was important for community safety. Councilmember Azari spoke in support of the ordinance and requested frequent reports on the financing. She believed the facility should be purchased outright. The vote on Councilmember Maxey's motion was as follows: Yeas: Councilmembers Azari, Fromme, Horak, Kirkpatrick, Maxey and Winokur. Nays: None. ' (Councilmember Edwards withdrawn) Other Business Resolution 91-82 Approving Application The following is staff's memorandum on this item. "EXECUTIVE SUMMARY This Resolution will approve an application for a preliminary loan for low -rent public housing. Such approval by Council is required before the Secretary of Housing and Urban Development can contract with a local housing authority for a preliminary loan. The Resolution restates established City Council policies regarding the elimination of substandard and inadequate housing, the prevention of slum and blight, and the goal of a decent home and a suitable living environment for Fort Collins citizens. The Resolution also states that private enterprise is unable to adequately provide low rent housing. The loan approved by the Resolution would provide funds in the amount of $400,000 for planning and survey development of approximately 150 dwelling units. 227 1 This item is being submitted as an Other Business item since the information received from HUD on May 15 indicated the loan application deadline is May 28. It was therefore too late to meet the agenda printing deadline and to be included in the agenda as a regular item. The matter will be considered by the Housing Authority on Monday, May 20, and its recommendation is expected to be affirmative. A memo stating the Housing Authority position will be forwarded to Council prior to the Tuesday meeting." Housing Authority Director Dave Herrera gave a presentation on this item and reported on project costs stating between 100-150 units will be built. Councilmember Horak made a motion, seconded by Councilmember Edwards, to adopt Resolution 91-82. Councilmember Winokur reported on an Affordable Housing Forum he recently attended that was sponsored by the Social Justice Committee of St. Joseph's and stated more than 800 families are currently on waiting lists for affordable housing. He stated the City needs to continue its forward movement in an effort to provide affordable housing as the private sector is not meeting those needs. Councilmember Fromme spoke in support of the Resolution. The vote on Councilmember Horak's motion was as follows: Yeas: Councilmembers Azari, Edwards, Fromme, Horak, Kirkpatrick, Maxey and Winokur. Nays: None. ' THE MOTION CARRIED. Councilmember Maxey reported as Chairperson of the E-911 Telephone Authority, and gave a brief history of the origination of the E.50 charge on the phone bills. He noted the public is welcome to attend the open meetings, however, there is not a public participation portion in the meeting. Councilmember Azari stated the Poudre R-1 liaisons are working on establishing an Intergovernmental Agreement. She voiced her concerns that all involved parties remain informed as to the progress of the agreement. Councilmember Azari reported she had received correspondence from Senator Schaffer in which he referred to a Citizens Task Force regarding hazardous waste burning. She felt it would be beneficial to meet with the Senator to discuss the City's position on the Holnam Plant and on the hazardous burning issue and suggested a briefing be conducted for elected representatives outlining the type of expertise available. She requested the Legislative Review Committee organize some planning around the issue. Mayor Kirkpatrick stated she and Councilmember Azari would meet with State Representatives prior to the beginning of the next legislative session, to keep them updated on Council's position regarding the burning of hazardous materials in cement kilns. 228 Councilmember Horak spoke of a press release regarding the sales tax issue, he stated the headlines were misleading and stressed the importance of remaining straightforward with the public. Councilmember Winokur concurred with Councilmember Horak. Adjourned The meeting adjourned at 9:35 p.m. Mayor I ATTEST: City Clerk 229 1