HomeMy WebLinkAboutMINUTES-04/24/1984-AdjournedADJOURNED MEETING
OF THE
COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
April 24, 1984
7:00 p.m.
An adjourned meeting of the Council of the City of Fort Collins was held on
Tuesday, April 24, 1984, at 7:00 p.m. in the Council Chambers in the
City of Fort Collins City Hall. Roll call was answered by the following
Council members: Elliott, Horak, Knezovich, Ohlson, Rutstein, and Stoner.
Secretary's Note: Councilmember Clarke arrived at 7:40 p.m.
Staff Members Present: Arnold, Huisjen, Krajicek, Lewis
Resolution Regarding a Construction
Agreement with the Fort Collins
Municipal Railway Society, Adopted
City Manager Arnold .noted this meeting had been scheduled to deal exclu-
sively with the trolley issue. He spoke of the meetings recently held on
this issue and of the negotiations held by Councilmember Clarke.
City Attorney Huisjen noted that on April 20, Judge Moore in U.S. District
Court had ordered the complaint filed against the City of Fort Collins and
the Fort Collins Municipal Railway Society dismissed. The court found that
the plaintiffs' claims were not properly before that court and the court
could not take jurisdiction. He noted more information would be provided
after staff has had an opportunity to review the order. He noted this
action had no effect on tonight's hearing and that the question before
Council dealt with the Trolley Society's performance.
The following persons spoke on this issue:
1. Dave Wood, attorney representing the Fort Collins Railway Society,
introduced Mark Bassett, President of the Society.
2. Mark Bassett, President of the Fort Collins Railway Society,
presented a slide show showing the early conditions of the car and
the restoration efforts towards Birney Car #21.
3. Joan Seegmiller, 731 West Mountain, spoke of the Society's efforts
to restore the car, the historical significance of the project,
and the commitment of the group to the project.
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April 24, 1984
4. Roger Smith, 825 Strachan Drive, restoration supervisor of the
project, spoke of the condition and historic value of the car. He
described the car as unique and noted the decline in numbers of
the Birney cars in existence. He described the Society's methods
of gathering parts and information needed in the restoration
effort and described the skills needed to restore missing parts.
He noted the donations of parts, materials, and labor that have
gone into the project.
5. Art Mitchell, 1614 Adriel Circle, track construction supervisor,
spoke of the standards and methods of track construction. He
noted all construction exceeds standards for Class 6 track.
6. Mark Bassett reviewed the history of the contract with the City,
the Society's performance, and the reasons for delays on the
project. He noted attempts to resolve concerns on the movement of
the trees had resulted in a 60 day delay. He added that addi-
tional delays had resulted because the City Manager had declined
the use of City equipment for heavy labor projects and that this
had also caused additional expense. He noted rail construction
standards exceeded those for light rail at almost no cost to the
City and cited the huge costs for light rail in other cities. He
asked Council to support the contract.
7. Dave Wood summed up noting the Society felt most delays had been
caused by the City or by joint negotiations. He stated the
Society would finish the project despite adversity. He noted that
two Councils had felt the project was desirable and that the
contract should be lived by. He stated the Society deserved
support and appealed to Council to demonstrate their willingness
to live by the contract.
8. Carol Podmore, 1205 West Mountain, .read a statement relating to
whether or not the Society has met the terms of their contract.
She asked Council to interpret the contract as written and to find
the contract in default:
9. Ray Hale, attorney representing some of the opponents of locating
the trolley on West Mountain Avenue, noted the cost of City staff
time associated with the project. He spoke of the PUD process for
the barn portion of the project and the lack of notice to area
residents. He predicted the project would not be completed by
December, 1985 and asked the contract be terminated immediately.
10. John Messineo, 137 North Bryan, stated he felt the original
agreement should have been authorized by ordinance rather than
resolution because of the Charter requirements dealing with the
April 24, 1984
City's ability to enter into contracts for service. He asked that
the contract be declared in default.
11. Mark Korb, 1223 West Mountain, asked what the purpose of the
contract was and noted any contract sets out the rights, responsi-
bilities, and expectations of the parties involved. He added
default provides a way out or remedy when circumstances change for
any of the parties.
12. Marc Teets, 1423 West Mountain, read a letter from attorney Gene
Fischer, 1205 Westward Drive, stating his opinion that the trolley
agreement is invalid. Mr. Fischer opposed the West Mountain
location and expressed concern about the restoration of West
Mountain if the trolley venture fails. He suggested bonding of
some type.
13. Dave Frick, 1300 West Mountain, noted the residents on West
Mountain were committed to their neighborhood and suggested the
trolley be used to help revitalize the downtown. He asked the
contract be declared in default to preserve the West Mountain
neighborhood.
14. Paul Hutchinson, 1108 Pitkin, expressed surprise at the opposition
I to the project and noted he did not feel it would adversely affect
property values. He supported the Society in their project.
15. Dick Beardmore, 2212 Kiowa Court, encouraged Council to:
a. Continue Council's historical support for this project;
b. Resume project assistance through sharing of City staff,
equipment and resources, as on other City projects;
c. Continue to work with both sides to further mitigate concerns
for landscaping by contributing additional plant materials and
City Arborist expertise;
d. Personally inspect the quality of trolley restoration and
in -place street crossing, trolley barn, and track installa-
tion;
e. Realize that schedule adjustments are not the "end of the
world" and really not the essence of this contract;
f. Walk the West Mountain Avenue median and experience current
traffic and noise levels; and
g. Do not declare the Railway Society in default.
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April 24, 1984
16. Jay April, 1208 West Mountain, applauded the Society for their
gift to the community but noted Council needed to make a decision
that has historical significance and added the gift might not be a
good idea over time. He believed a compromise route was still
possible that would retain what the Railway Society has already
done. He recommended an alternative route be explored to maintain
historical significance in the downtown.
17. Kevin Knupp, 1003 West Mountain, noted the trolley tracks posed a
safety hazard to bicyclists.
18. Chuck Wanner, 1242 West Mountain, noted his opposition to the
contract and the trolley project. He stated he felt the Society
was in default, suggested a longer input period resulting in a new
contract and more time to reassess the situation.
Councilmember Rutstein asked if all the components of Phase I were com-
pleted and asked about the meaning of a contract.
Mark Bassett replied that Phase I had been accepted by the City of Fort
Collins and there is a bond for the additional landscaping. He added the
temporary CO for the barn was obtained on August 21. He noted that the
proposed completion date for Phase I was' September, 1982, but the Society
had been given an extension at a September, 1982 work session. There was
no deadline reimposed on Phase I. He noted the Society planned on oper-
ating the car late this summer and anticipated the entire project could
still be completed by December, 1985.
Dave Wood noted a written contract was an agreement between the parties
involved but does not mean that once signed and executed, the two parties
are forever prevented from modifying the agreement and coming to some other
consentual agreement. He stated that through bilateral negotiations at a
number of meetings, agreement was reached to -change or modify the comple-
tion schedule and the specifications of the job. He noted he felt it was
not a principle of contract law to be able to declare the contract in
default on the basis of 'the original contract provisions since it had been
modified by mutual agreement.
Councilmember Knezovich asked about Mr. Messineo's allegations that the
original contract should have been adopted by ordinance rather than resolu-
tion because of Charter provisions.
City Attorney Huisjen stated this was a construction contract rather than a
contract for services and the Charter provision did not apply.
Councilmember Stoner asked if the contract should be considered in default I,
if the project was not completed by December, 1985.
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April 24, 1984
Dave Wood replied that issue needed to be addressed before December, 1985
and added the contract needed to reflect the reality of the situation. He
suggested determining the period of time needed for the completion of each
phase and noted that working against a date on the contract seemed rela-
tively unimportant. He added that if nothing is done and the project is
not finished by December, 1985, there would not have been timely completion
as provided under the contract.
Councilmember Clarke asked questions about the default provisions of the
contract and questioned whether the City would have the right to take
possession of the assets (stockpiled materials) of the Society in the event
of default.
City Attorney Huisjen replied that he did not think the materials would
belong to the City until they had been installed or conveyed to the City in
some way -- it would not be automatic.
Mark Bassett noted the Society would have no use for the materials if
default occurred or they abandoned the project. He again noted their
intention to abide by the contract. He spoke to the value of the stock-
piled materials and noted they would surrender them to be used towards the
restoration of the medians in the event of default.
Councilmember Clarke made a motion, seconded by Councilmember Ohlson, to
adopt Resolution 84-76 and read the Resolution in full.
City Attorney Huisjen reviewed the changes to the Resolution that had been
agreed to by the attorneys involved.
Councilmembers Clarke and Ohlson agreed the changes were acceptable to them
and should be included in their original motion.
Mark Bassett asked if .there would be a deadline to the negotiations on
alternate routes. He questioned the removal of the mature trees and
pointed out if they are not moved soon, they will have to be cut down.
Dave Wood noted the language An paragraph 3 implied abandonment of the
present proposed route. He felt the language was an attempt to placate the
Society and to tell them their project as originally proposed was history.
City Attorney Huisjen noted this Resolution did not preclude the Society
from continuing with the contract.
Ray Hale stated he did not feel the Resolution resolved the issue. He felt
a clear decision was expected and suggested Council declare the Society in
default and begin to negotiate a new agreement. He asked for a clear
definitive statement of either support or opposition to the project and
stated he felt both sides would accept the consequences.
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April 24, 1984
Mark Korb noted the Resolution did nothing to clarify the language of the
existing contract.
Bud McMahon, 1319 West Mountain, asked for an explanation of the moving of
the switch from Mountain and Roosevelt to 30 feet east of Mountain and
Roosevelt and expressed doubt the Society could complete Phase III by
December 31, 1984.
Councilmember Clarke explained the switch was not being moved but because
it is a left hand switch, enough straight track needs to be constructed to
the east of the switch to allow the car onto the straight track and then
back west to utilize the switch.
Carol Podmore noted she had hoped an option finding the contract to be in
default would be considered at this meeting. She noted that a statement
had been made by Councilmember Stoner indicating the contract could not be
legally declared in default because Council had been given legal advice
that this was not possible. She asked what the point of this meeting was
if that was the case.
Councilmember Stoner responded that Council had been given a legal opinion
suggesting the contract was not in default. He noted he was prepared to
hear testimony and evidence on both sides and then determine whether the
contract is in default. He added that the Resolution to be considered
suggests the contract is valid but that Council is attempting to tighten it
up.
Mayor Horak noted the legal advice given had been varied and had explained
what the rights, responsibilities, and options were. This did not con-
strain Council from making either decision.
Councilmember Clarke spoke of the reasons for the Society being behind
schedule. He noted the Society had been progressing at a better rate but
that Council would be keeping a close watch on their progress until Decem-
ber, 1984. He stated if Phase III was not completed by then, there might
be reason to find them in default. He still favored a downtown route for
the trolley.
'Councilmember Knezovich noted the contract needed to be improved and that
this Resolution was a step forward. If the guidelines were not met,
Council would be compelled to declare default. He stated he felt City
resources should not be spent on the project.
Councilmember Rutstein expressed concern about the dates in Exhibit A of
the contract noting she felt they were important. She asked what would be
done if the project was not totally completed on, December 31, 1985 and
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April 24, 1984
stated she would prefer to make the decision at this time and accept the
consequences from either side. She stated a preference for declaring
default at this time and to have the City Manager look for a route that is
acceptable to the greatest majority.
Councilmember Elliott cited the obstacles put in front of the Society and
stated he did not feel they were in default. He noted he felt the trolley
fits well in Fort Collins and .that the Resolution sets a specific time
frame and puts the project into focus.
Councilmember Ohlson concluded the contract could not be declared in
default at this time. He noted he was not in favor of a West Mountain
route and preferred a downtown route rather than a City Park location.
Councilmember Stoner stated .he could not find the contract in default and
stated he felt it was a show of confidence that the Society would agree to
the new time limits and restraints placed on them.
Mayor Horak stated no official action had been taken in 1982 to modify the
contract. He noted he was adamantly against the project going into City
Park and that he would have preferred the other Resolution declaring the
project to be in default. He noted he would vote against this Resolution.
The vote on Councilmember Clarke's motion to adopt Resolution 84-76 was as
follows: Yeas: Councilmembers Clarke, Elliott, Knezovich, Ohlson, and
Stoner. Nays: Councilmembers Horak and Rutstein.
THE MOTION CARRIED.
Adjournment
Councilmember Stoner made a motion, seconded by Councilmember Rutstein, to
adjourn the meeting. Yeas: Councilmembers Clarke, Elliott, Horak, Knezo-
vich, Ohlson, Rutstein, and Stoner. Nays: None.
THE MOTION CARRIED.
The meeting adjourned at 11:50 p.m.
A TEST:
City Clerk
.'e'r"".."y "
Mayor
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