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HomeMy WebLinkAboutMINUTES-10/28/1980-AdjournedIOctober 28, 1980 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council -Manager Form of Government Adjourned Meeting - 1:00 p.m. An adjourned meeting of the Council of the City of Fort Collins was held on Tuesday, October 28, 1980, at 1:00 p.m. in the Council Chambers in the City of Fort Collins City Hall. Roll call was answered by the following Coun- cilmembers: Gray, Kross, Reeves, Wilkinson, and Wilmarth. Absent: Councilmembers Bowling and St. Croix. Staff Members Present: Lanspery, Liley, Krajicek, R. Wood, Harmon, Lewis, and Kost. Ordinance Adopted on First Reading Relating to City Electric Rates for Services Following is the City Manager's memorandum on this item: ' "The proposed ordinance is presented pursuant to Council direction at the August 12, 1980 budget work session. Extensive discussion of purchased power costs, reserve policies, payment in -lieu -of taxes and overall utility financial requirements resulted in direction to prepare a rate ordinance adjusting 1981 electric fees by 26.2%. Because of a lower than expected increase in 1981 purchased power rates, the proposed electric fee schedules have been designed to increase revenues by 25.4%. Revenues would increase $4,413,923 to $21,685,272. Increases necessary to track the cost of providing service to each customer class are as follows: % INCREASE Residential 26.8% General Service 25.4% General Service 50 21.2% General Service 500 25.0% Special Area floodlighting 25.4% Municipal Streetlighting 25.4% Traffic Signal Service 25.4% 403 October 28, 1980 ' Of the 25.4% increase, 15 percentage points are due to purchased power, 4 percentage points to reserve levels and 6.4 percentage points are due to operations, maintenance and miscellaneous items. Section 210 of the Public Utility Regulatory Policy Act of 1978 requires that the Electric Utility offer to purchase electric energy from cogenera- tion and small power production facilities, provided that the qualifying facility complies with the standards established by the Utility. The recommended ordinance includes a tariff under which qualifying facilities can sell electric energy to the Utility on a standard rate or by separate contract. The proposed schedule is based upon the Light & Power Utility's cost of power. It may be necessary to adjust this schedule upon second reading when Platte River Power Authority completes its study of avoided costs. The ordinance further permits residential customers to operate qualifying facilities in parallel with the utility system under currently available tariffs on a net -energy billing basis. The Utility will provide standby service to qualifying facilities in accordance with current tariff provisions. The attached Financial Statements reflect the financial position of the Utility projected for five years at current rates and with implementation of proposed rate adjustments." ' Assistant City Manager, Paul Lansperry, noted that there may be a need to amend this Ordinance on Second Reading based on what PRPA does in terms of its study of avoided costs. Those speaking on this item were: 1. Lori Wolf, who questioned COUncills reaction to the increased costs that were passed along by the Federal Energy Commission. She asked if Council had filed a complaint similar to PRPA. Councilman Wilkinson responded that Western Area Power Association had determined that it was necessary due to long range water and power projects to increase the rates this year by approximately 25-26%. PRPA joined a suit against W.A.P.A. to show cause that this increase is needed at this time. He explained that Council had taken action through his representation and also that of Stan Case on the PRPA Board. 2. Esther 0. Moore, coordinator for Spanish speaking elderly and Catholic Community Services, who asked if there would be another opportunity to speak on this issue. Mayor Gray explained that the Second Reading of the Ordinance would be November 18 and that additional public comment would be heard at that I time. :om I October 28, 1980 Councilman Wilkinson made a motion, seconded by Councilman Kross, to adopt Ordinance No. 158, 1980 on First Reading. Yeas: Councilmembers Gray, Kross, Reeves, Wilkinson and Wilmarth. Nays: None. (HE MOTION CARRIED. Three Emergency Ordinances Adopted Relating to the Fort Collins/Loveland Airport Following is the City Manager's memorandum on this item: "These three Ordinances all relate to Airport financing; specifically, Ordinances No. 159 and 160 relate to the financing of T Hangars at the Fort Collins -Loveland Municipal Airport, and Ordinance No. 169 relates to the financing of the construction of the parallel taxiway at the Airport. These ordinances would authorize short term i.e. 12-month borrowing for the purpose of paying for the purchase of the T Hangars and for the construc- tion of the parallel taxiway. In September of 1979, the Council passed, on first reading, two ordinances ' which authorized the City to exercise options on a total of 33 T Hangars at the Airport and to borrow the necessary money (a total of $131,250) on a short term basis to pay for the exercise of these options. There- after, the City executed two promissory notes, one in the amount of $65,000 and another in the amount of $66,250.00, both at an interest rate of 7.5%. One of these notes became fully due and payable October 11, 1980, one of them will become fully due and payable November 1, 1980. At the time the Council authorized the short term borrowing and executed the promissory notes, it was anticipated that Airport revenues would pay a portion of the costs associated with the exercise of the options and that all additional amounts in excess of those revenues would be paid for out of the proceeds of revenue bonds which were anticipated to be issued to finance overall Airport projects. Also in September of 1979, the City, by ordinance, authorized the short term borrowing of $201,532.96 at 7.5% interest to finance its share of the construction of the parallel taxiway at the Airport. This promissory note will become fully due and payable on November 1, 1980. As with the other two promissory notes, the City had anticipated paying a portion of the cost out of Airport revenues and the remainder to be paid out of the proceeds of revenue bonds. As you are well aware, Airport any of these promissory notes ' last 12 months, put together primarily because utilities and have not proceeded as quickly revenues have not been sufficient to pay off and additionally the City did not, in the a financing package for Airport projects, other necessary improvements at the Airport as we had initially hoped. Therefore, we 405 October 28, 1980 would recommend that the Council approve all three Ordinances authorizing the short term borrowing of the amounts of money necessary to pay for the purchase of the T Hangars, as well as the construction of the parallel taxiway, with the anticipation of the City putting together a long term finance package for Airport projects and improvements within the next 12 months. The Council will also need to choose how the interest will be calculated on the new note for the $201.532.96 to finance the construction of the paral- lel taxiway. The promissory note executed in 1979 for this item did not contain a roll-over provision as the other two promissory notes did, and thus the interest rate upon execution of a new promissory note will have to be renegotiated. The First National Bank has offered the City a choice in how it will calculate interest on the new note and attached is a memo from the Finance Department explaining the choices. Since one of the promissory notes has already become d42 and payable and since this is the last regular meeting before two of the other notes become due and payable, all of the ordinances are done as emergency ordinances which will require the affirmative vote of five Counci1members." Councilman Wilmarth questioned this master plan update which recommended and suggested that their operation enterprise. purchase referring to the airport no additional T Hangars be purchased is normally best handled by private Financial Director Ron Wood replied that the master plan indicated no additional T Hangars while these particular T Hangars were contracted before the report was written and there is a liability on them. He pointed out that the ad -hoc committee is not in agreement with the recommendations as outlined in the update regarding the purchase and operation of T Hangars. Councilman Wilkinson made a motion, seconded by Councilwoman Reeves, to adopt Ordinance No. 159, 1980, as an emergency ordinance. Yeas: Council - members Gray, Kross, Reeves, Wilkinson, and Wilmarth. Nays: None. THE MOTION CARRIED. Councilwoman Reeves made a motion, seconded by Councilman Wilkinson, to adopt Ordinance No. 160, 1980, as an emergency ordinance. Yeas: Council - members Gray, Kross, Reeves, Wilkinson, and Wilmarth. Nays: None. THE MOTION CARRIED. F Jim Harmon, Controller, explained that the bank had given the City a choice ' on the way the interest rate is computed on this short-term loan. He noted that it was very difficult to tell what the prime interest rate would do in the next 12 months. 406 ' October 28, 1980 Financial Director, Ron Wood, recommended the variable interest rate option, noting the City had been interested in exploring this method. Councilman Kross made a motion, seconded by Councilwoman Reeves, to adopt Ordinance No. 161, 1980, as an emergency ordinance and to choose the variable interest rate option. Yeas: Councilmembers Gray, Kross, Reeves, Wilkinson, and Wilmarth. Nays: None. THE MOTION CARRIED. Purchase of Park Property in Rossborough Subdivision, Approved Following is the City Manager's memorandum on this item: "This discussion goes back almost two years, when negotiations were first started for acquisition of a neighborhood park in the Rossborough Subdivi- sion. The property to be purchased is located in Tract D of the Ross - borough Subdivision and consists of 8 acres. ' Background Rossborough is a 157 acre subdivision located at the northeast corner of Horsetooth and Taft Hill Road. The developer has an approved preliminary plat which includes approximately 500 building lots, a multi -family area in the southwest corner, and a 13 acre tract in the northeast corner to be used as a combination park and detention pond as shown on the attached map. The 8 acres would be part of the detention pond, but would lie above the 2 year high water elevation. Although the present detention/park site consists of approximately 13 acres, some additional design would allow the developer to create additional building sites on the fringes of the pond area with the Planning and Zoning Board's approval. Since receiving Council direction, there has been a long delay in completing the park purchase due to extensive storm drainage problems in the area. The park problem has also been complicated by the erroneous donation of two acres directly to the east of the Rossborough Park/detention pond site from Melody Homes. However, this issue will be resolved after the Rossborough purchase is finalized. Contacts have already been initiated on the latter. Both Parks and Recreation and Planning strongly feel that there is a great need for a park in this Section. When fully developed, there will be approximately 2,300 dwelling units. In addition, park policy calls for a neighborhood park in every square mile. In this particular case, moreover, it is considered critical to provide the neighborhood park as it. is cur- rently proposed from both an urban design and a recreational need stand- point. The earlier Council, in fact, rejected the initial preliminary plats of Rossborough and Wagon Wheel Subdivisions because of poor urbar design in general and poor park design in particular, and they were sub- sequently redesigned. 407 October 28, 1980 ' Council discussed this acquisition in 1978, but never approved it in official session. Council needs to give formal approval for the acquisi- tion. The purchase price considered in 1978 was $5,000 per acre for a total of $40,000. Staff recommends acquisition of this property from Tri-Trend, Inc. at that price. Funds are budgeted in 1980 for this acqui- sition." Councilman Wilkinson made a motion, seconded by Councilwoman Reeves, to approve the acquisition of 8 acres located in Tract D of the Rossborough Subdivision to be used as a neighborhood park and detention pond. Yeas: Councilmembers Gray, Kross, Reeves, Wilkinson, and Wilmarth. Nays: None. THE MOTION CARRIED. Other Business Mayor Gray announced there would be a press conference at 11:00 a.m. on Thursday, October 30 to discuss Amendment #3. Representatives of the City of Colorado Springs are coming and would like to have an informal round table discussion of this amendment. ' She also noted that Council's response to the Parks and Recreation Board recommendations would be given on November 25 after the fate of the lottery amendment is known. Adjournment The meeting adjourned at 1:40 p.m. JL Fra ATTEST: l City Clerk 1