HomeMy WebLinkAboutMINUTES-06/03/1986-RegularJune 3, 1986
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, June 3, 1986, 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: April, Estrada, Horak, Ohlson, Rutstein, and Stoner.
Staff Members Present: Burkett, Huisjen, Krajicek
Resolution Appointing Barbara Liebler
to Fill a Vacancy as District 2
Councilmember on the City Council Adopted
Following is staff's memorandum on this item:
"After reviewing 5 applications and conducting interviews on May 23 and 27,
the City Council informally selected Barbara Liebler to fill the District 2
Council vacancy. This Resolution formalizes the Council action taken on
May 27 and appoints Ms. Liebler to fill the vacancy created by the
resignation of John Knezovich. The term of appointment is until the March
3, 1987 General City Election, when a District 2 Councilmember will be
elected for a 2-year term of office."
Councilmember Rutstein made a motion, seconded by Councilmember Estrada, to
adopt Resolution 86-92. Yeas: Councilmembers April, Estrada, Horak,
Ohlson, Rutstein, and Stoner. Nays: None.
THE MOTION CARRIED.
City Clerk Krajicek administered the oath of office to newly -appointed
District 2 Councilmember Barbara Liebler. Following the oath, Ms. Liebler
took her seat at the Council desk.
Agenda Review: City Manager
City Manager Burkett noted there was a revised Resolution 86-99, Item #35,
Resolution 86-99 Authorizing tlie6.Fort Collins Municipal Railway Society to
Modify the Hours of Operations' for the. 4th of July, Operate School
Charters, and Alter their Sequence of Construction of the Trolley Track, on
Council's desk that omits any reference to changing the hours of operation
of trolley charters.
June 3, 1986
Bruce Lockhart, 2500 East Harmony Road, asked that Item #24, Resolution '
86-96 Authorizing the Purchase of Three Parcels of Land Located in Block
31, be removed 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 Consent Calendar. Anyone may request an item on this
calendar be "pulled" off the Consent Calendar and considered separately.
Agenda items pulled from the Consent Calendar will be considered separately
under Agenda Items #28 and #38, Pulled Consent Items, except items pulled
by anyone in the audience or items that any member of the audience is
present to discuss that were pulled be staff or Council. These items will
be discussed immediately following the Consent Calendar.
6. Consider approval of the minutes of the regular meeting of May 6.
A
Ordinances Related to the Annexation and Zoning of Aoproximately 4
Acres of Property Known as the Springfield Annexation No. 2.
A. Second Reading of Ordinance No. 61, 1986, Annexing Approximately 4
Acres Known as the Springfield Annexation No. 2.
B. Second Reading of Ordinance No. 62, 1986, Zoning Approximately 4 '
Acres of Property, Known as the Springfield Annexation No. 2, into
the R-L, Low Density Residential, Zoning District.
On May 20, the annexation ordinance was adopted on First Reading by a
6-0 vote, and the zoning ordinance was adopted on First Reading by a
5-1 vote. This is a City initiated request to annex and zone
approximately 4 acres of property containing a church, located east of
South Shields Street and about one-half mile south of West Horsetooth
Road, which is presently an enclave of county area completely
surrounded by incorporated area of the City of Fort Collins. The
requested zoning is the R-L, Low Density Residential, Zoning District.
The property owner has several concerns related to the zoning of the
property and increased taxes and fees which would have to be paid
after the property has been annexed.
A. Second Reading of Ordinance N6. 63, 1986,,Annexing Approximately
38.47 Acres of Property Known as�the Skyline Acres Annexation.
B. Second Reading of Ordinance No. 64, 1986, Zoning Approximately
38.47 Acres of Property, Known as the Skyline Acres Annexation, ,
into the R-E, Estate Residential, Zoning District.
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June 3, 1986
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These Ordinances were adopted on First Reading by a 6-0 vote on May
20. This is a City initiated request to annex and zone approximately
38.47 acres of property, the Skyline Acres Subdivision containing 19
single-family dwellings, located west of South Shields Street and
south of West Horsetooth Road, which is presently an enclave of county
area completely surrounded by incorporated area of the City of Fort
Collins. The requested zoning is the R-E, Estate Residential, Zoning
District.
A. Second Reading of Ordinance No. 65, 1986, Annexing Approximately 3
Acres of Property Known as the Chadwick Annexation.
B. Second Reading of Ordinance No. 66, 1986, Zoning Approximately 3
Acres of Property, Known as the Chadwick Annexation, into the R-E,
Estate Residential, Zoning District.
These Ordinances were adopted on First Reading on May 20 by a 6-0
vote. This is a City initiated request to annex and zone
approximately 3 acres of property, located west of Timberline Road and
about one-half mile south of Horsetooth Road, the site of a
single-family dwelling, which is presently an enclave of county area
completely surrounded by incorporated area of the City of Fort
Collins. The requested zoning is the R-E, Estate Residential, Zoning
District.
A. Second Reading of Ordinance No. 67, 1986, Annexing Approximately
1.434 Acres of Property Known as the Western Area Power
Administration Annexation.
B. Second Reading of Ordinance No. 68, 1986, Zoning Approximately
1.434 Acres of Property, Known as the Western Area Power
Administration Annexation, into the R-L-P, Low Density Planned
Residential, Zoning.District.
These Ordinances were adopted' on: First Reading by a 6-0 vote on May
20. This is a request to annex and zone approximately 1.434 acres of
property, containing a power sub -station, located east of Redwood
Street and north of Conifer Street, which is presently an enclave of
county area completely surrounded by incorporated area of the City of
Fort Collins. The requested zoning is the R-P, Planned Residential,
Zoning District.
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June 3, 1986
11. Ordinances Relating to the Annexation and Zoning of Approximately I
5.025 Acres of Property Known as the Wickes Annexation.
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13.
A. Second Reading of Ordinance No. 69, 1986, Annexing Approximately
5.025 Acres Known as the Wickes Annexation.
Second Reading of Ordinance No. 70, 1986, Zoning Approximately
5.025 Acres of Property, Known as the Wickes Annexation, into the
H-B, Highway Business Zoning District.
These Ordinances were adopted on First Reading on May 20 by a 6-0
vote. This is a City initiated request to annex and zone
approximately 5.025 acres of property, located west of South College
Avenue and north of West Harmony Road, the site of Wickes Lumber
Company, which is presently an enclave of county area completely
surrounded by incorporated area of the City of Fort Collins. The
requested zoning is the H-B, Highway Business, Zoning District.
A. Second Reading of Ordinance No. 71, 1986, Annexing Approximately
9.48 Acres Known as the Concrete Products Company Annexation.
Second Reading of Ordinance No. 72, 1986, Zoning Approximately I
9.48 Acres of Property, Known as the Concrete Products Company
Annexation, into the B-P, Planned Business, Zoning District.
These Ordinances were adopted by a 6-0 vote on First Reading on May
20. This is a City initiated request to annex and zone approximately
9.48 acres of property, located east of Wood Street and north of Elm
Street, the site of Concrete Products Company and a single-family
dwelling, which is presently an enclave of county area completely
surrounded by incorporated area of the City of Fort Collins. The
requested zoning is the B-P, Planned Business, Zoning District.
A. Second Reading of Ordinance No. 73, 1986, Annexing Approximately
.801 Acres of Property Known as the.,Mountain View Animal Hospital
Annexation.
B. Second Reading of Ordinance No. 74, 1986, Zoning Approximately
.801 Acres of Property, Known as the Mountain View Animal Hospital
Annexation, into the R-L-P, Low Density Planned Residential,
Zoning District.
These Ordinances were adopted on First Reading by a 6-0 vote on May '
20. This is a City initiated request to annex and zone approximately
.801 acres of property, containing an animal hospital,, 'located west of
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June 3, 1986
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14.
15.
16.
South Shields Street and about one -quarter mile south of West Drake
Road, which is presently an enclave of county area completely
surrounded by incorporated area of the City of Fort Collins. The
requested zoning is the R-L-P, Low Density Planned Residential, Zoning
District.
Second Reading of Ordinance No. 75, 1986, Annexing Approximately
4.289 Acres Known as the Thomas Annexation.
B. Second Reading of Ordinance No. 76, 1986, Zoning Approximately
4.289 Acres, Known as the Thomas Annexation, into the R-L-P, Low
Density Planned Residential, Zoning District.
These Ordinances were adopted on First Reading by a 6-0 vote on May
20. This is a City initiated request to annex and zone approximately
4.289 acres of property, containing a single-family dwelling, a green
house, and nursery operation, located west of North Lemay Avenue and
about one -quarter mile south of Willox Lane, which is presently an
enclave of county area completely surrounded by incorporated area of
the City of Fort Collins. The requested zoning is the R-L-P, Low
Density Planned Residential, Zoning District.
A. Second Reading of Ordinance No. 77, 1986, Annexing Approximately
.862 Acres Known as the Webster Annexation.
Second Reading of Ordinance Nc
.862 Acres, Known as the Webster
Residential, Zoning District.
. 78, 1986, Zoning Approximately
Annexation, into the R-P, Planned
These Ordinances were adopted on First Reading on May 20 by a 6-0
vote. This is a City initiated request to annex and zone
approximately .862 acres of property, containing two single-family
dwellings, located east of South Shields Street and north of West
Horsetooth Road, which is presently an enclave of county area
completely surrounded by incorporated area of the City of Fort
Collins. The requested zoning is the R-P, Planned Residential, Zoning
District.
This Ordinance was adopted on First,"Reading`,on May 20 by a 6-0 vote,.
and needs to be amended on Second Reading to include an effective date
of July 1, 1986, which is the date the state law takes effect.
Adoption on the Consent Agenda will adopt the Ordinance as amended.
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June 3, 1986
17.
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19.
The provisions in the Model Traffic Code with regard to the authority
to impound vehicles and the disposal of abandoned vehicles reference
sections of the State statutes which have been repealed in an Act
which becomes effective on July 1, 1986. Consequently, it is
necessary to amend the Model Traffic Code to refer to the new
statutory provisions with regard to this subject. The proposed
ordinance also amends the Code provisions to allow the immobilization
of vehicles found on public property in addition to those found on the
streets and clarifies the right of the vehicle owner to a
post -immobilization hearing.
This Ordinance was adopted on First Reading by a 6-0 vote on May 20.
The Developers of the Parkwood East Patio Homes P.U.D., are requesting
the vacation of easements dedicated on previous plats of the site. The
easements were originally dedicated on the plats of Parkwood East
Subdivision, Parkwood East Second Filing and Second Replat of Parkwood
East Second Filing.
The site has been approved by the Planning and Zoning Board and was
replatted again as Parkwood East Patio Homes P.U.D. on March 24, 1986. 1
All utilities have been contacted and indicate no problems with the
vacation.
This Ordinance was adopted on First Reading on May 20 by a 6-0 vote.
The developers of the Shores Office Park are requesting the vacation
of an access and utility easement on their site. They have revised the
location of the buildings on the southern portion and have provided an
alternate location for this access and utility easement by submitting
a fully executed easement dedication.
The approved utility drawing indicates a 6" water main in this
easement. Staff recommends vacating the access easement, and
retaining the utility easement. All utilities have been contacted and
have no problems, with the vacation. City Water Department and
Mountain Bell lines will be retained in the easement.
Both of these revisions are made to correct deficiencies ,and old '
language that is no longer necessary and/or appropriate as it $ertains
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June 3, 1986
' to the enforcement authority and appointment authority of the police
department. The proposed revision to Section 7-9 authorizes the Chief
of Police to appoint, as necessary, "special police officers" to
enforce particular provisions of this Code, with their authority to be
limited by administrative guidelines. The Ordinance itself would no
longer specify the categories of individuals which could be appointed
to special enforcement responsibilities.
20.
' 21.
Section 2-4 eliminates language that is no longer applicable to the
police department and specifically, the positions of Assistant Chief
of Police and Police Clerk. These revisions have been made to conform
to the current practices and authority of officers of the police
department.
The Developer of Rossborough, Third Filing, Trend Homes, Inc., is
requesting the vacation of a twenty -foot -wide utility easement located
between Lots 137 and 138 on Chelsea Court. The easement was
originally for a proposed sewer line connection to Rossborough, Second
Filing. The sewer was actually placed in the Tract "D" easement,
which is adjacent to Lot 138 on the East.
All utility companies have been contacted and indicate no problems
with the vacation.
The City of Fort Collins Light and Power Utility has maintained a dam
on the Poudre River adjacent to the power plant since the construction
of the plant in 1935. The dam is deteriorating and portions of the
spillway have collapsed into the river bed. The river flow is causing
scouring of the riverbed, which is undermining the spillway. It is
expected that the dam will eventually fail allowing the river bed to
continue to scour towards the College Avenue bridge.
In order to provide the best solution to the problem, it is desirable
to retain a consulting engineer to analyze the existing structure and
river flow. The consulting engineer would then present various
alternatives and estimated costs for the repair, replacement or
abandonment of the dam. A recommendation as to the best alternative
would be made. Action would" then be' taken based on the
recommendation.
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June 3, 1986
22.
23.
24.
Resolution 86-94 Authorizing the Mayor to Enter into an Inter- '
governmental Agreement with the U.S. Department of Energy Western Area
Power Administration to Cost Share a Study for Conservation and
Renewable Energy Technologies.
In the fall of 1985 the U.S. Department of Energy Western Area Power
Administration (WAPA) issued a Notice of Proposal Interest. WAPA was
offering to cost share studies or development projects on conservation
and renewable energy technologies. The Light and Power Utility of the
City responded with a proposal to investigate the use of
uninterruptible power supplies (UPS) to control peak demand. The use
of UPS systems may also help customers with electronic equipment such
as computers that are sensitive to fluctuations in power quality.
WAPA reviewed the proposal submitted by the City and found it to meet
their criteria. They offered to fund half of the estimated $12,405.00
cost. Since the Light and Power Utility has sufficient funds to
undertake the study and the study has good potential to benefit the
electrical customers of the City, it is recommended that the attached
Resolution to contract with WAPA for the study be approved.
This resolution would authorize the City Manager to quitclaim any
interest the City has in the house or real property located at 732
Alta Vista Street to Neighbor -to -Neighbor Inc., a non-profit
corporation. Neighbor -to -Neighbor, Inc. will, in turn, sell the
property to a first time low or moderate income homebuyer. Funds
collected from the sale of the property will be used to help
Neighbor -to -Neighbor, Inc. relocate their offices to the new Larimer
Community Services Building.
In 1981, the County Commissioners and City Council began a program to
acquire property within Block 31. The acquisition of this block was
for the purpose of constructing a parking lot and possibly
constructing governmental facilities.
Several intergovernmental agreement`s have been
properties in the block became available for'
1984 Intergovernmental Agreement authorized`
negotiations for the remaining parcels.
Cailleteau and Toliver Agreements, the land
Block 31 will be complete.
executed in the past as
purchase. The November
the City to enter into
With approval, of the
acquisition phase for
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June 3, 1986
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25. Resolution 86-97 Granting Permission to FortTown to Place Plaques on
the Entryway Walls of Oak Street Plaza.
The City has been petitioned to allow FortTown (the Downtown Business
Association) to place plaques on the north side of the north entrance
walls of Oak Street Plaza. These plaques will honor persons who have
made significant contributions to Downtown Fort Collins.
26.
The Code of the City of Fort Collins provides in Section 2-58,
paragraph G (2) for the award of any bid to other than the low bidder
when the low bidder cannot perform as specified and cannot meet the
time frame for this performance. We recommend award of this bid to
the second low bidder, Mesa Fiberglass in the interest of delivery
time and based on past performance.
27.
On December 3, after an initial vote of denial (4-3) and at the
request of Councilmember Knezovich who wanted to clarify his vote,
Council voted 4-3 to reconsider the Stuart UGA Amendment. Upon
' reconsideration, Council voted 6-1 to table the item to the regular
meeting of December 17th, at which time it was tabled to February 18
at the request of staff and with the concurrence of the applicant.
The applicant then requested the item be further tabled to March 4.
At that time the item was again tabled to April 1, and subsequently
tabled again to May 20, 1986, when it was tabled again to June 3.
Tabling is now requested to August 19 by which time the Planning and
Zoning Board will have reviewed proposed rural street standards for
application in the proposed Foothills Residential and amended Estate
Residential zones. The applicant is in agreement with the tabling.
Ordinances on Second Reading were read by title by Wanda Krajicek, City
Clerk.
Item V. A.
Item #8. A.
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June 3, 1986
B. Second Reading of Ordinance No. 64, 1986, Zoning Approx-
imately 38.47 Acres of Prooerty, Known as the Skyline Acres
Annexation, into the R-E. Estate Residential, Zoning
District.
Item #9. A.
B. Second Reading of Ordinance No 66 1986 Zoning Approx-
imately 3 Acres of Prooerty, Known as the Chadwick
Annexation, into the R-E. Estate Residential, Zoning
District.
Item #10. A. Second Reading of Ordinance No 67 1986 Annexing Approx-
imately 1.434 Acres of Prooerty Known as the Western Area
Power Administration Annexation.
B. Second Reading of Ordinance No 68 1986 Zoning Approx-
imately 1.434 Acres of Prooerty. Known as the Western Area
Power Administration Annexation, into the R-L-P. Low Density
Planned Residential, Zoning District.
Item #11. A.
B. Second Reading of Ordinance No. 70, 1986, Zoning Aoprox- '
imately 5.025 Acres of Property, Known as the Wickes
Annexation, into the H-B. Highway Business Zoning District
Item #12. A. Second Reading of Ordinance No 71 1986 Annexing Approx-
imately 9.48 Acres Known as the Concrete Products Company
Annexation.
B. Second Reading of Ordinance No 72, 1986 Zoning Approx-
imately 9.48 Acres of Prooerty, Known as the Concrete
Products Company Annexation, into the B-P. Planned Business
Zoning District.
Item #13. A. Second Reading of Ordinance No 73 1986 Annexing ADorox-
imately .801 Acres of Property Known as the Mountain View
Animal Hospital Annexation.
B. Second Reading of Ordinance No 74 1986.' Zoning Approx-
imately .801 Acres of Prooerty, Known as the Mountain View
Animal Hospital Annexation, into the R-L-P Low Density
Planned Residential, Zoning District.
Item #14. A. Second Readina of Ordinance No- 75_ lQAA _ Annarinn AnnrnY-
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June 3, 1986
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' B. Second Reading of Ordinance No 76 1986 Zoning Approx-
imately 4.289 Acres. Known as the Thomas Annexation, into the
R-L-P. Low Density Planned Residential, Zoning District
Item #15. A.
0
Item #16.
Item #17.
Item #18.
Ordinances on First Reading were read by title by Wanda Krajicek, City
' Clerk.
Item #19. Hearing and First Readina of Ordinancp Nn_ R5. 1QRri Rnvicinn
Item #20.
Councilmember Estrada made a motion, seconded by Councilmember Stoner, to
adopt and approve all items not removed from the Consent Calendar. Yeas:
Councilmembers April, Estrada, Horak, Liebler, Ohlson, Rutstein, and
Stoner. Nays: None.
THE MOTION CARRIED.
Resolution Authorizing the Purchase
of Three Parcels of Land
Located in Block 31. Adopted
Following is staff's memorandum on this item:
"Executive Summary
' In 1981, the County Commissioners and City Council began a program to
acquire property within Block 31. The acquisition of this block was for
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June 3, 1986
the purpose of constructing a parking lot and possibly constructing
governmental facilities.
Several intergovernmental agreements have been executed in the past as
properties in the block became available for purchase. The November 1984
Intergovernmental Agreement authorized the City to enter into negotiations
for the remaining parcels. With approval of the Cailleteau and Toliver
Agreements, the land acquisition phase for Block 31 will be complete.
Background
Owner Purchase Price Down Payment Closing Possession
Cailleteau $ 63,000.00 $1.00 Option June 22, 1986 $18,000 lease
(Parcel #13B) back for 3
years.
Toliver's Inc. $698,500.00* $ 69,850.00 Dec. 15, 1986 Dec. 15, 1986
(Parcels #2A & B)
* Toliver's back storage building was damaged during a recent wind storm.
The insurance adjustor as well as the City Maintenance Staff estimated
the damage to be $8,000.00. Based on these estimates, the purchase
price for Toliver's has been adjusted to $690,500.00 by addendum. The
roof damage is a violation of the uniform building code; therefore, the
City/County will commence repair work as soon as the Agreement of Sale
and Purchase is approved by both governing bodies.
There is currently $1,077,364 available in the Block 31 fund to buy Dr.
Cailleteau's and Toliver's properties. Subtracting the purchase price of
$753,500 for the three parcels leaves $323,864 for master planning the
site, some renovation, and paying operating bills."
Councilmember Stoner made a motion, seconded by Councilmember Estrada, to
adopt Resolution 86-96.
Bruce Lockhart, 2500 East Harmony Road, questioned why the City was
spending these funds in light of the 1987 Budget concerns.
Deputy City Manager Rich Shannon responded that,staff felt this project was
a wise long term investment for the-downtownrand was a commitment by the
City and County to keep the downtown alive by keeping the government
offices in the downtown.
Councilmember Horak felt there was a need to reexamine the Block 31
agreement with Larimer County in light of the City's long and short term
needs. He noted the surplus of vacant office space and stated he felt it
made no sense to continue these purchases.
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June 3, 1986
Councilmember Stoner stated he felt there was value in owning the entire
Block 31 and suggested proceeding with the final purchases to perfect the
City's investment.
The vote on Councilmember Stoner's motion to adopt Resolution 96-96 was as
follows: Yeas: Councilmembers April, Estrada, Liebler, Ohlson, Rutstein,
and Stoner. Nays: Councilmember Horak.
THE MOTION CARRIED.
Resolution Making Appointments to
Various Boards and Commissions,
Tabled to June 17
Following is staff's memorandum on this item:
"Executive Summary
Council has received copies of the applications for membership on the
various City Boards and Commissions, and interviews have been conducted
with the applicants by Council committees.
In keeping with Council's policy, this Resolution will be tabled until the
next regular meeting for public input.
Background
Appointments need to be made for the following Boards and Commissions:
Airport Authority
Building Board of Appeals
Building Contractors Licensing Board
Cable Advisory Board
CHOICE Advisory Committee
Commission on Disability
Commission on the Status of Women
Cultural Resources Board
Golf Board
Housing Authority
Human Relations Commission
Landmark Preservation Commission
Library Board
Liquor/Massage Licensing Authority
Natural Resources Advisory Board
Parking Commission
Parks and Recreation Board
Personnel Board
Planning and Zoning Board
Public Access Advisory Board
Quality of Life Commission
Retirement Committee
Senior Citizens Board
Storm Drainage Board
Water Board
Zoning Board of Appeals
Appointments will be for` either regular or alternate membership and for
terms to expire as indicated in the Resolution."
Mayor Ohlson read the names of the appointees recommended by the individual
interview teams.
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June 3, 1986
Councilmember Rutstein made a motion, seconded by Councilmember Stoner, to '
adopt Resolution 86-103 inserting the names read by Mayor Ohlson.
Councilmember Stoner made a motion, seconded by Councilmember Estrada, to
table Resolution 86-103 to June 17 to allow time for public input. Yeas:
Councilmembers April, Estrada, Horak, Liebler, Ohlson, Rutstein, and
Stoner. Nays: None.
THE MOTION CARRIED.
Items Related to the City's Fiscal
Year 1986-87 Community
Development Block Grant Program
Following is staff's memorandum on this item:
"Executive Summary
A. Public Hearing and Resolution 86-101 Adopting Fiscal Year 1986-87
Community Development Block Grant Programs and Projects.
B. Hearing and First Reading of Ordinance No. 87, 1986, Appropriating
Unanticipated Revenue and Authorizing the Transfer of Appropriations
Between Projects in the CDBG Fund.
Background
The resolution will establish the individual programs and projects to be
funded with Community Development Block Grant funds from the United States
Department of Housing and Urban Development for the FY 1986-87 Program year
which begins on October 1, 1986. The total amount of Community Development
Block Grant funds available to the City of Fort Collins is $892,286. The
Community Development Block Grant Steering Committee has evaluated all
applications and present a recommendation to the City Council as to which
programs and projects should receive funding for the next program year.
The ordinance appropriates $566,000 from the City's FY 1986-87 Entitlement
Grant, $223,719 from Reprogrammed CDBG funds, and $102,567 of CDBG Program
Income, for a total 1986-87 funding level of $892,286. In addition to
these funds, $83,200 of 1985 funds will be carried over in Administration
and will be spent prior to 86-87 funds.
The CDBG Program is an ongoing grant administration program funded by the
Department of Housing and Urban Development. The City of Fort Collins has
received CDBG Program funds since 1975. In 1975'and FY 1976-77 the City
received HUD discretionary grants. Since FY 1977-78, the City has been an
Entitlement Recipient of CDBG funds, meaning the City is guaranteed a
certain level of funding each year. The level of funding is dependent on ,
the total amount of funds allocated to the program by Congress and on a
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June 3, 1986
' formula developed by HUD, which includes data on total population, minority
percentage of population, income levels, housing stock conditions, etc.
Community Development Block Grants can fund a wide range of activities
including, acquiring deteriorated and/or inappropriately developed real
property (including property for the purpose of building new housing) and
acquiring, constructing, rehabilitating or installing publicly owned
facilities and improvements. CDBG funds can also be used for restoration
of historic sites, beautification of urban land, conservation of open
spaces and preservation of natural resources and scenic areas. Housing
rehabilitation can be funded if it benefits low- and moderate -income
people.
Economic development activities are eligible expenditures if they stimulate
private investment or community revitalization and expand economic
opportunities for low- and moderate -income people and the handicapped.
Certain activities are ineligible, under most circumstances, for CDBG funds
including, purchase of equipment, operating and maintenance expenses,
including repair expenses and salaries, general government expenses,
political activities, and new housing construction.
Since its inception in 1975, t
programs of housing rehabilitation
neighborhood strategy areas have
assistance and attention. These
B.A.V.A. (Buckingham, Alta Vista,
neighborhoods.
Available Funds:
he City's CDBG Program has focused on
and neighborhood revitalization. Three
been identified as in need of special
neighborhoods are the Holy Family area,
and Andersonville), and Laurel School
The City's Entitlement Grant for FY 1986-87 is $566,000. The Entitlement
Grant will be combined with $48,567 of existing CDBG Program Income,
$54,000 of anticipated Program Income from the period April 1, 1986 to
September 30, 1987, (HUD is requiring the City to estimate the total amount
of anticipated Program Income which will be received during the next 18
months) and $223,719 of existing CDBG Program Contingency, to make a total
of $892,286 available for programs and projects during the next CDBG
Program year. The seemingly rather large amount of existing CDBG
Contingency funds perhaps needs some explanation. Normally, when projects
are completed the remaining funds allocated to that project are transferred
into the Contingency fund. Remaining funds can range from a few hundred to
several thousand dollars. While not a complete list, the following
projects contributed to the existing Contingency fund total: Rental
Rehabilitation Demonstration Program E55,000; Emergency Rehabilitation
$31,405; Housing Rehabilitation Administration $4,000; Citizen
Participation $1,982; Public Service' Equipment', $3,740; Commission on
Disability $26,940; Commission on Disability Administration $858; and
Program Income Contingency $10,763.
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June 3, 1986
Selection Process:
'
The selection process for the City's FY 1986-87 CDBG Program began on
February 13, 1986, when the Citizens Steering Committee held a public
hearing to obtain citizen input on community development and housing needs.
The CDBG Program office placed legal advertisements in local newspapers
during February and March to solicit requests for CDBG funded programs and
projects for FY 1986-87. At the close of the application deadline in late
March, the City received 24 requests for a total of approximately $1.5
million. At the recommendation of the City's HUD Field Representative,
several of the applications were revised, with programs shifting between
applicants in order to more efficiently utilize the requested funds. Some
examples of the program shifts are: the inclusion of the Commission on
Disability's Architectural Barrier Removal Program into Neighbor, Inc.
Housing Rehabilitation Revolving Loan and Emergency Repair Program request;
and the inclusion of Architectural Barrier Equipment administration into
the Handicapped Information Office's Independent Living Skills Program.
Copies of all applications were distributed to the CDBG Citizens Steering
Committee on Thursday April 10, 1986. On Wednesday May 7, and Thursday May
8, 1986, the Steering Committee met to hear verbal presentations from each
applicant and to ask clarification questions. The Committee met on
Wednesday May 14, 1986, for the purpose of preparing the Committee's
recommendations to the City Council as to which programs and projects
should be funded for the FY 1986-87 program year.
The attached Resolution will formally adopt the City's FY 1986-87 CDBG
Program.
'
Funding Recommendations:
HUD CDBG regulations limit the amount of available funds which can be
allocated to various generic categories. Funds for Planning and
Administrative purposes are limited to 20% of available funds, and funds
for Public Services are limited to 15% of available funds.
The Steering Committee, thus, not only had to decide which applicants
presented programs and projects which best fit City CDBG funding policies,
but also had to insure funding allocations were kept within HUD regulations
and the new interpretation of the regulations.
Listed below is a summary of each applicant's request for' funding and the
Steering Committee's funding recommendations:
19%*11
June 3, 1986
REQUEST FUNDING APPLICANT PROGRAM/PROJECT
-
---------------
ADMINISTRATION (max. 20% of 86-87 entitlement)
$ 30,000 30,000 City of Fort Collins CDBG Administration
PUBLIC SERVICE PROGRAMS (max. 15% of 86-87 entitlement, $84,900)
38,053
2,500
33,027
2,000
20,405
5,500
5,500
5,500
29,396
25,750
25,316
OTHER PROGRAMS
207,561
122,000
23,690
6,600
9,114
24,000
19,168
105,393
64,160
55,084
16,760
500,000
14,636
CONTINGENCY
33,680
2,500
16,800
2,000
20,405
2,750
2,750
2,750
Handicapped Info. Office
Crime Stoppers
CHOICE
Concerned Relatives
Friends/Nursing Hme
United Day Care
United Day Care
Volunteer's Clearing
Women's Center
Fort Collins YMCA
SAINT
Jubilee Coalition
207,561
Housing Authority
122,000
Neighbor -to -Neighbor
23,690
Housing Authority
6,600
DMA Plaza Inc.
9,114
DMA Plaza Inc.
64,064
TRAC
19,168
Neighbor -to -Neighbor
105,393
Neighbor -to -Neighbor
Res.
Ind. Living Skills
Program Expansion
Homeshare Program
Outreach Program
Sliding Scale
Outreach
Hse. Outreach
Outreach
Base Camp (Before
and After Day Care)
Punch -Pass System
Jubilee Program
64,160 LCSI
7,500 Catholic Comm. Services
- City Parks & Recreation
- Clarence Walters
14,636 Care -A -Van
Land Acquisition
In -Fill Land Acquis.
Site Improvements
Automatic Doors
Energy Conservation
Stone Crest
Rehabilitation
Housing Counselling
Housing Rehab.
Arch. Barrier Removal
Building Phase II
Rehabilitation
History of Trail
Systems
Acquisition of
Nelson Farm
Local Share Grant
Match -
134,765 Contingency Funds, ' Includes $54,000 of
anticipated Program
Income
---------------------------------------------------------------------------
$1,474,313 $892,286 Totals
With approximately $1.5 million in total requests and only $892,286
available, obviously not all applications could be funded. Also, due to
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June 3, 1986
HUD funding limitations, some applicants received less funds than '
requested. One applicant received more funds than requested. Contingency
Funds include $54,000 of anticipated Program Income expected to be received
by the City during the next 18 months. These funds were not allocated to
any specific project(s) because of possible uncertainty of their
collection. The following will offer explanations for the Steering
Committee's decisions.
TRAC: The TRAC request for $24,000 for rehabilitation of the Stone Crest
Motel on North College Avenue for low income housing was increased to
$64,064 by the Citizens Steering Committee. The Committee felt that the
$24,000 request was an insufficient amount of funds to do an adequate
rehabilitation job. The Committee, however, also placed a condition on the
increased funds. In order to receive the funds, TRAC must prove that the
rehabilitation work will make the project economically viable where
revenues derived from rents will cover debt service, and operation and
maintenance expenses.
15% Limitation on Public Services: HUD CDBG Regulations limit the amount
of funds which can be allocated to public services to 15% of the
Entitlement Grant. The following applicants had their requests reduced in
order to stay within this funding limitation: CHOICE $33,027 to $16,800;
United Day Care/Outreach $5,500 to $2,750; Volunteer's Clearing
House/Outreach $5,500 to $2,750; the Women's Center/Outreach $5,500 to
$2,750 and the revised Handicapped Information Office/Independent Living '
Skills and Architectural Barrier Equipment Program $38,053 to $33,680. The
following applicants received their full funding request under the social
services category: Concerned Relatives & Friends of Nursing Home
Residents/Outreach $2,000; Crime Stoppers of Fort Collins Inc./Program
Expansion $2,500; and United Day Care/Sliding Scale $20,405. Jubilee
Coalition, SAINT and the Fort Collins YMCA proposals were considered low
priority and not funded because of the 15% limitation.
Members of the Citizens Steering Committee will attend the June 3, 1986,
City Council meeting to answer any questions about the funding
recommendations."
Councilmember Horak asked that the record show he did not participate in
the discussion or vote on this item.
Chief Planner Ken Waido reviewed the sel,.`c'tion and advertising process used
by the Steering Committee and explained -''the HUD' allocation formula.
Diane Risheill, CDBG Steering Committee member;' described the priority
setting discussions that took place at their meetings and noted her
personal preference was that funds should be directed to long term housing
related needs.
Councilmember Estrada asked if there was a rule of thumb as far as the
amount of contingency monies in the program. '
Ken Waido replied that the rule of thumb was approximately 10%.
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June 3, 1986
Councilmember Estrada asked 'if the YMCA request could be funded from the
contingency fund.
Ken Waido replied that the YMCA request was not being recommended for
funding.
Deputy City Manager Rich Shannon stated his understanding was the Steering
Committee felt the proposal was not yet solid enough but that this type of
program should be encouraged. He added if Poudre R-1 and the YMCA were
able to select another site, staff might want to seriously look at using
contingency funds recognizing other proposals might have to be adjusted to
keep within the 15% limitation on public services.
Lou Stitzel, Steering Committee member, stated the Committee had difficulty
funding a proposal that did not appear to be complete. She suggested the
organization approach other funding sources in the community.
Mayor Ohlson expressed concern that the background materials and
applications for CDBG funding had not been forwarded to Council soon enough
to allow adequate review.
Jack Russell, 3108 Swallow Place, Chairman of the DMA Board of Directors,
responded to questions relating to the DMA Plaza.
Assistant to the City Manager Linda Hopkins responded to questions relating
to the Larimer Community Services, Inc. project. She explained the
financing structure of the project.
Marcile Wood, CDBG Steering Committee, recommended scheduling a worksession
next year to answer some of the questions in advance of the regular
meeting.
Ken Bonetti, Chairman of the Housing Authority, read a Resolution from the
Housing Authority recommending Council seek alternative funding for
Catholic Community Services shelter program to ensure its continued
operation.
Councilmember Estrada suggested staff meet with the HUD representative to
see if the Catholic Community Services shelter program can be qualified in
the housing category. He suggested contingency funds might be earmarked
for this program and stated he considered the program a viable one.
Jim Aldrich, Catholic Community Services, Inc. addressed their reduced
request noting it was now approximafely $25,000.
Councilmember Rutstein made a motion,'. seconded<'by Councilmember Stoner, to
adopt Resolution 86-101.
' Councilmember Estrada requested staff explore other options for funding the
Catholic Community Services shelter program as well as reallocating the
existing CDBG funds to cover this program.
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June 3, 1986
Councilmember Liebler made a motion, seconded by Councilmember April, to
table Resolution 86-101 to June 17. Yeas: Councilmembers April, Estrada,
and Liebler. Nays: Councilmembers Ohlson, Rutstein, and Stoner.
(Councilmember Horak withdrawn)
THE MOTION FAILED.
The vote on Councilmember Rutstein's motion to adopt Resolution 86-101 was
as follows: Yeas: Councilmembers Estrada, Liebler, Ohlson, Rutstein, and
Stoner. Nays: Councilmember April. (Councilmember Horak withdrawn)
THE MOTION CARRIED.
Councilmember Stoner made a motion, seconded by Councilmember Rutstein, to
adopt Ordinance No. 87, 1986 on First Reading. Yeas: Councilmembers
Estrada, Liebler, Ohlson, Rutstein, and Stoner. Nays: Councilmember
April. (Councilmember Horak withdrawn)
THE MOTION CARRIED.
A.
sLivai was accep
stival Committee.
Citizen Participation
irman of the H.R. Phillips
B. Proclamation Naming June 7 as Super Saturday was accepted by Dawn
Cooper and Andrea Skillman, Boltz Junior High All Stars.
C. Proclamation Naming June 7 and 8 as Race Unity Weekend was accepted by
Rick Jensen, representing the Bahai community.
D. Proclamation Naming June 9 as Thomas Sutherland Day was accepted by Kit
Sutherland, daughter of Thomas Sutherland.
E. Proclamation Naming June 14 as Flag Day and the week of June 8 as Flag
Week was forwarded to the appropriate persons.
F. Proclamation Naming June 16 - 22 as Poudre Valley Hospital Celebration
of Excellence Week was accepted by Tim Gilmore, Executive Director of
the Poudre Valley Hospital Foundation.
G. Presentation of plaque to retiring Transportation Services Employee
Marvin Alsleben.
Street Superintendent Larry Schneider introduced 'Marvin Alsleben who
was retiring after 28 years employment with the City. Mayor Ohlson
then presented a plaque to Mr. Alsleben recognizing his 28 years of
service.
1
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June 3, 1986
' Ken Bonetti, 722 West Mountain, Chairman of the Housing Authority, read a
Housing Authority Resolution encouraging Council to develop a housing
policy relating to the relocation of displaced residents and the
replacement of units lost to redevelopment. He specifically mentioned the
residents of the Bennett Hotel portion of the Opera House project, urging
quick action to prevent those residents from being separated.
Terri Foppe, 622 Whedbee, asked when the staff list of possible
"housekeeping" amendments to the Charter would be available.
City Attorney Huisjen replied the amendments would be available to the
Charter Review Committee for their review and discussion.
Barbara Allison, 1212 Lynnwood Drive, requested she be provided with a full
agenda packet for each meeting; commented on the placement of trash cans;
and asked for stricter enforcement of the City's leash law.
Resolution Authorizing the Fort Collins
Municipal Railway Society to Modify the Hours
of Operations for the 4th of July, Operate
School Charters, and Alter their Sequence
of Construction of the Trolley Track Adopted
Following is staff's memorandum on this item:
"Executive Summary
The Fort Collins Municipal Railway Society has requested permission to:
o modify their hours of operation on the 4th of July to 9:00
a.m. to 5:00 p.m. rather than 12:00 noon to 6:00 p.m.,
o operate the trolley car for school charters during the hours
of 10:00 a.m. until noon, Monday through Friday, during the
regular operating season (March - October), and
o alter their sequence of construction of the trolley track,
completing the remaining five intersections first -- one per
weekend -- while preparing the medians second.
Background
The Fort Collins Municipal Railway Society has requested permission to
operate the trolley car outside the hours of operation specified in the
Interim Operating Agreement. The Society has received a number of requests
from schools to charter the trolley:'so thatschool children may experience
a part of Fort Collins' history. Currently, the agreement allows for
' charters during the regular operating schedule (Saturdays, Sundays and City
observed holidays) from 10:00 .a.m. to 6:00 p.m. It is difficult to
schedule school charters on weekends or holidays when school is not in
session. The Railway Society would like to operate the trolley car for
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June 3, 1986
school charters during the hours of 10:00 a.m. until noon, Monday through I
Friday, during their regular operating season (March - October).
The Railway Society has also requested permission to extend the hours of
operation on July 4th. This holiday brings many people out to City Park.
During late afternoon, traffic increases around the park. The Society is
concerned about the increased traffic at the intersection of Oak and
Roosevelt Streets, where the trolley crosses the street and goes into the
park. The higher number of vehicles increase the risk to the trolley car.
As such, the Society is willing to end their operations at 5:00 p.m.
instead of 6:00 p.m. They would like permission to begin operations at
9:00 a.m. to compensate for the earlier ending time and to accommodate the
higher number of people they expect to ride the trolley on the 4th. Last
year, July 4th saw the highest number of trolley riders for one day.
The Fort Collins Municipal Railway Society is also requesting permission to
alter their sequence of construction of the trolley track. At present, the
agreement requires one block be complete before an adjacent block can be
excavated. This was done to minimize the impact of construction on the
neighborhoods and to ensure a continuous route. To date, the track
construction is approximately two-thirds complete. The Society is
requesting approval to excavate and install the track in the remaining five
intersections -- one per weekend -- first, and then prepare the medians
second. The Society is developing a plan which will employ professional
railroad builders to install the line in the medians. This group will be
using mechanical equipment to complete the track work. The construction '
plan, traffic control plan and timetable are subject to approval by the
City Engineer and City Manager. The Municipal Railway Society feels this
change will assist in meeting their August 31 completion. deadline."
Mayor Ohlson stated that a revised Resolution 86-99 was before Council and
that the Resolution now only dealt with modifying the hours of operation on
the 4th of July and with altering the sequence of the track construction.
The portion dealing with the school charter item has been eliminated.
Public Works Administrator Carol Osborne explained the terms of the
Resolution and how the changes would affect the project.
Ed Hansen, Vice -President of the Fort Collins Railway Society, estimated
the cost of employing professional track builders to complete the
construction was approximately $10,000. He stated the Society had a
commitment from a bank for financing under a loan arrangement, but noted
the Society was going to construct as much of the track as possible before
contracting with a professional contractor.
Wayne Sundberg, 2901 Greentree Circle, noted the Society, would prefer the
operating hours of 10:00 a.m. to 6:00 p.m. rather than^the 9:00 a.m. to
5:00 p.m. hours proposed by staff. He felt 'the fare ':revenue would be
greater with the 10-6 hours.
Terry Podmore, 1205 West Mountain, recommended the operating hours be left '
"as is" and also recommended the construction schedule not be amended.
June 3, 1986
' Jim Stitzel, 521 East Laurel, Railway Society member, noted the Society was
aware of the neighborhood concerns. He reassured Council that adequate
funds and donations were available to complete the project on schedule.
Councilmember Stoner made a motion, seconded by Councilmember April, to
adopt the revised version of Resolution 86-99.
Councilmember Rutstein expressed concern that staff be comfortable with
these new terms and stated she did not want to see the project drag on one
hour past the August 31 deadline.
Councilmember Estrada stated he would support the Resolution and noted he,
too, was looking at an August 31 deadline.
Councilmember Liebler looked at the Resolution as a way to expedite the
construction and to make it easier for drivers and residents on Mountain
Avenue.
Councilmember Horak stated he felt this was a clear change in the contract
and was not sure what the City would derive from the change. He noted he
was uncomfortable giving the staff the authority to make these decisions.
Councilmember Rutstein made a motion, seconded by Councilmember Horak, to
amend Resolution 86-99 by adding a Section 3 as follows:
' Section 3. That no permission to alter the sequence of
construction be granted until (1) a cost estimate of the work to
be done by a professional track construction firm is prepared by
the Railway Society, (2) the Railway Society provides proof of
availability of funds to underwrite the cost of hiring a
professional track construction firm, and (3) a written contract
for the work to be done by the professional track construction
firm is provided to the City and approved by City staff.
Terry Podmore, 1205 West Mountain, suggested the City require a performance
bond from the professional contractors and a letter of credit or escrow
account be established by the Society for the protection of the
neighborhood residents.
City Attorney Huisjen noted there was no provision for the Society, a
contractor, or subcontractor to have a performance bond.
The vote on Councilmember Rutstein's amendment to Resolution 86-99 was as
follows: Yeas: Councilmembers April, Estrada, Horak, Liebler, Ohlson,
Rutstein, and Stoner. Nays: None.
THE MOTION CARRIED.
The vote on Councilmember Stoner's motidn�+to adopt; Resolution 86-99 was as
follows: Yeas: Councilmembers April, Estrada, Liebler, Ohlson, Rutstein,
and Stoner. Nays: Councilmember Horak.
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June 3, 1986
THE' MOTION CARRIED.
Items Relating to Street Oversizing,
Tabled to July 1
Following is staff's memorandum on this item:
"Executive Summary
A. Hearing and First Reading of Ordinance No. 88, 1986, Amending Certain
Sections of the Code of the City of Fort Collins Regarding the Street
Oversizing Fund.
B. Resolution 86-100 Creating an Industrial Advancement Program for
Certain Targeted Industries.
The attached ordinance will change sections of the City Code regarding
Street Oversizing fees, development requirements, and City participation
obligations. The resolution will create an Industrial Advancement Program
in which certain targeted industries will receive assistance from the City
for street oversizing fees. This is intended to encourage industrial
development within the city, when such development is determined to be of
benefit to the welfare of the city. '
Background
The ordinance and resolution are in response to a request made by Council
at its May 13th work session to have staff look into possible solutions to
the problems facing the street oversizing fund. The attached report from
staff outlines the recommended approach."
City Engineer Gary Diede reviewed the issue and detailed the staff
recommendation.
Councilmember Horak suggested the issue be tabled for further study. He
stated he did not feel Councilmembers had the degree of consensus or
understanding of the issue to make a decision at this time.
Councilmember Estrada supported Councilmember Horak's suggestion and stated
he felt the committee should have had a longer review period.
Mayor Ohlson stated it was staff's role to,present` a recommendation that
was in the best interest of the community,,as .a, whole. Ideally, the
committee and staff would present a joint recommendation, but when that is
not possible, the Council needs to look at all the options and come up with
a decision. He agreed the committee had not had enough time to review the
staff recommendation.
Chuck Mabry, 1413 Stonehenge Drive, spokesperson for '%the group of '
developers working with staff, expressed frustration withtthe process staff
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June 3, 1986
used to present their recommendation which he pointed out was different
from the recommendation presented at the worksession. He asked that the
item be tabled and requested Council work with staff and the committee in
examining the issue so that the complexity can be understood.
Councilmember Horak made a motion, seconded by Councilmember Estrada, to
table Item #36 to July 1 and to direct the Finance Committee to review the
issue with staff and the developers' committee and report back to Council
approximately 10 days prior to the July 1 meeting. Yeas: Councilmembers
April, Estrada, Horak, Liebler, Ohlson, Rutstein, and Stoner. Nays: None.
THE MOTION CARRIED.
Resolution Authorizing the City Manager
to Enter into Agreements Pertaining to
SouthRidge Greens Public Golf Course. Adopted
Following is staff's memorandum on this item:
"Executive Summary
This resolution authorizes the City Manager to enter into Agreements with
SouthRidge Greens Corporation, Bucain Corporation, Clifford J. Buckley,
Bernard L. Cain Jr., and lien holders in a senior position to the City
based on terms agreed to by the City Council.
Background
The City has been informed by the senior lien holder in the SouthRidge
Greens planned unit of development that the current structure for repaying
their loans as well as the other lien holders are jeopardizing the
continuation of the project. The City desires the project continue and
that the City receive the maximum amount possible, realizing that the
original goal of providing a golf course at no cost to the City is
unachievable. The new Agreement on SouthRidge Greens Public Golf Course is
currently being drafted and reviewed by the involved parties. Elements of
the new agreement include:
Golf Course
The City will continue to receive the net revenue from the Golf Course once
each year based upon a July 1 to June 30 fiscal year. The City will have
the option of taking over the Golf Course at the beginning of any fiscal
year.
Development
There are four parties involved. in the development in terms of this
agreement. They include the ' developer;,-.;,Bucain Corporation, who is also referred to in the prior agreements as.the.SouthRidge Greens Corporation,
as developer. Of the three primary lien°.holders, Columbia Savings is the
sm
June 3, 1986
first lien holder, FoxRidge II, a partnership is the second lien holder,
and the City as the third lien holder.
Columbia Savings will receive all proceeds from the sales of three tracts
of land plus net proceeds of any sales between September 1, 1986 and August
31, 1987 to reduce their outstanding loan balance and therefore the
required debt service. If their loan balances are reduced significantly by
August 31, 1987, then the future viability of the project in terms of the
second and third lien holders will be increased. Columbia Savings has also
agreed to extend new construction financing and operating loans to the
Bucain Corporation. Both the City and FoxRidge II will subordinate their
lien positions to Columbia Savings new loans. Both the City and FoxRidge
II will have to consent to any land or lot sales other than the three
tracts referred to above. The City and FoxRidge II will share in net
proceeds based on a schedule. Net proceeds will be defined as the sales
price of a residential unit or lot minus Columbia's payoff (including the
operating component) minus commission and selling expenses. The schedule
will be as follows:
Term
Now until 08/31/86
09/01/86 - 08/31/87
09/01/87 - 02/29/88
03/01/88 - 08/31/88
09/01/88 Forward
City FoxRidge II Columbia Savings
40%
60%
40Ye
60%
45%
55%
50% 50%
100%
The City recognizes in terms of Bucain Corporation we need to keep the
developer interested in building out the project and therefore keeping the
City and FoxRidge II in a position of receiving revenues from that
development. The City currently has personal guarantees from Mr. Cain and
Mr. Buckley in the amounts of $750,000 and $2,500,000 respectfully. The
new Agreement will retain Mr. Cain's guarantee at $750,000 as it relates to
development revenue only. Mr. Buckley's guarantee will be reduced to a
more achievable goal of $1,000,000 to include revenue from both the Golf
Course and the development.
As a further incentive to the developer the Agreement will contain the
provision that after $800,000 is received:by the City,from the development,
then Bucain Corporation will receive 10%•of the net proceeds on each sale
if Columbia Savings determines payment can,be made based on the balance of
Bucain's operating loan. The City -and FoxRidge II will each give up 5% to
make this distribution possible. The City wants to ensure at least a
minimum revenue stream from the development and therefore the Agreement
will include an annual guarantee of at least $75,000 frow the development
per fiscal year beginning September 1, 1987. Golf Course net revenues will
not be counted against this guarantee. If the guarantee is not,met, the
1
1
WK11
June 3, 1986
I
City will have the option of enforcing its personal guarantees but in doing
so we will relinquish our third lien position."
Finance Director Jim Harmon reviewed the project and gave a history of the
agreements between the City and the developer.
Councilmember Stoner suggested the City needed to make the best of the
situation and salvage the dollars it could.
Barbara Allison, 1212 Lynnwood Drive, asked what type of bonds were issued
for this project.
Jim Harmon replied they were Bond Anticipation Notes backed by the lease
payments and by sales and use taxes.
Bruce Lockhart, 2500 East Harmony Road, suggested selling the golf course
to recoup the City's losses, perhaps to the surrounding homeowners.
Mayor Ohlson thanked Councilmember Stoner for time spent on this issue and
noted Council had relied on his expertise in making their decision.
Councilmember Estrada made a motion, seconded by Councilmember April, to
adopt Resolution 86-102. Yeas: Councilmembers April, Estrada, Horak,
Liebler, Ohlson, and Stoner. Nays: Councilmember Rutstein.
I
THE MOTION CARRIED.
City Manager's Report
City Manager Burkett reported on the bids for the expansion of Wastewater
Treatment Plant No. 2 relating to the Anheuser-Busch expansion. The low
bid came in approximately $4 million under the engineer's estimate of $15.6
million, or $11.7 million.
Other Business
Councilmember Horak reminded Council that there was a need to fill the
Council liaison appointments and committee assignment vacancies created by
the resignation of John Knezovich. He suggested the meeting of June 17
might be appropriate.
Ad3ournment
Councilmember Stoner made a motion, seconded by,"Ouncilmember Estrada, to
adjourn the meeting. Yeas: Councilmembers April,!.:Estrada, Horak, Liebler,
' Ohlson, Rutstein, and Stoner. Nays: None.
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June 3, 1986
The meeting adjourned at 11:10 p.m.
ATTEST: (�
City Clerk
15�,k A&
Mayor
1
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