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HomeMy WebLinkAboutMINUTES-07/05/1983-Regular' July 5, 1983 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council -Manager Form of Government Regular Meeting - 5:30 p.m. A regular meeting of the Council of the City of Fort Collins was held on Tuesday, July 5, 1983, at 5:30 p.m. in the Council Chambers in the City of Fort Collins City Hall. Roll call was answered by the following Council members: Cassell, Clarke, Horak, Knezovich, Ohlson, and Rutstein. Councilmembers Absent: Elliott Staff Members Present: Arnold, Meitl, Krajicek, Huisjen, Lewis Agenda Review: City Manager City Manager Arnold reported there would be several items of Other Business and that the City Attorney was requesting an Executive Session to discuss legal matters. I Mayor Knezovich asked that Item #14, Resolution Delegating the City's Authority to Issue Revenue Bonds to Provide Residential Housing Facilities to Larimer County during 1983, be withdrawn from the Consent Calendar.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 be "pulled" off the Consent Calendar and considered separately. Agenda items pulled from the Consent Calendar will be considered separately under Agenda Item #27, 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 by staff or Council. These items will be dis- cussed immediately following the Consent Calendar. 4. Consider Approving the Minutes of the regular meeting of June 21. 5. Second Reading of Ordinance No. 75, 1983, Amending Chapter 16 of the Code to Provide for t e Issuance o Specia Assessment Bonds in Registered as Wellas Coupon Form and in Such Denominations as City ou n The housekeeping changes in this Ordinance, which was unanimously ' adopted on First Reading on June 21, allow the City to issue the -306- 1 July 5, 1983 required registered bonds in face amounts that are the most advan- tageous for a particular issue relating to a Special Improvement District. 6. Second Reading of Ordinance No. 76, 1983, Appropriating $1,089,000 to the Community Development Block Grant Fund. On June 7, 1983, City Council approved Resolution No. 83-102, adopting the 1983-84 Community Development Block Grant Program (copy attached) totalling $1,089,000. This ordinance, which was unanimously adopted on First Reading on June 21, appropriates $1,089,000 to the Community Development Block Grant Fund. 7. Second Reading of Ordinance No. 77, 1983, Appropriating Unanticipated Revenue for the Police POSSE System. The Cities of Loveland and Fort Collins jointly acquired a computer system for the Police Departments in 1982. Additional memory and software have been installed on the computer system. Loveland's share of the costs is $7801, based on the original funding formula for the system. Loveland has been invoiced for their share of the additional memory and software. An appropriation for $7801 of unanticipated revenue in the Police Department budget is accomplished by this ordinance, which was unanimously adopted on First Reading on June 21. 8. Second Reading of Ordinance No. 78, 1983, Vacating a Portion of a Blanket Easement in Underhill PUD, Phase I to allow the building envelope to extend into the easement less than 2 feet. Underhill, PUD, Phase 1, was approved in 1981 with building envelopes creating a "blanket" easement for all areas outside the building envelope. During the construction of buildings on Envelope "B" and Envelope "C", the buildings were inadvertently placed outside the envelopes by 1.63 feet on one corner. The developer has replatted building envelopes "B" and "C" into Block 1 and Block 2 which was approved by the Plan- ning and Zoning Board on May 23, 1983. There are no utilities within the area requested for vacation, there- fore the City has no interest in this area and staff recommends approval of the ordinance, which was unanimously adopted on First Reading on June 21. -307- July 5, 1983 9. Second Reading of Ordinance No. 85, 1983, Appropriating 111,000 for an scaping or t e Me ian or t e Frontage Roa Project. A Red Lobster Restaurant will be built this summer on lot B of the Villa PUD on the 3300 block of South College Avenue. This is the former site of a Vickers gas station. Because of the location of this property on College Avenue Red Lobster will be required to construct a frontage road along the front of their lot. Landscaping will be necessary for the median created by construction of the frontage road. By current ordinance these costs are not assessable to Reynolds or Red Lobster. It is therefore necessary for Council to approve the Ordinance, which was unanimously adopted on First Reading on June 21, to appropriate funds for this construction. Sufficient funds are currently available in the Minor Capital Streets fund. Estimated costs are: City Water Tap Fee $ 4,200 Materials and Labor 6,800 I Total $ 11,000 10. Second Reading of Ordinance No. 86, 1983, Creating and Organizin I .m ' lle.-mn n.. Cnnr. �l T.n......... .........� n:.. �.�. ..� u.. This Ordinance was unanimously adopted on First Reading at the June 21 meeting. Council also adopted three resolutions relating to initia- tion and financing of the Lemay/Harmony Special Improvement District No. 78. Council received a detailed package of information concerning this district in the June 21st agenda. 11. Hearing and First Reading of Ordinance No. 87, 1983, Vacating a Portion of an Alley Located in Block 4, Riverside Park Subdivision. The alley in Block 4, Riverside Park Subdivision, was vacated on July 9, 1925, except for the south eighty-five (85) feet. The abutting properties (Simpson Sheetmetal on the west and Colorado Import Motors on the east) are desirous of improving their access to Hemlock Street and making some landscaping improvements to their common boundary. Since this alley goes nowhere and this Ordinance will preserve an ' easement for utilities (Light and Power currently has an overhead primary line there), staff is recommending vacation of this alley. July 5, 1983 12. Hearing and First Reading of Ordinance No. 88, 1983, Authorizing the City Manager to Enter into an Agreement for the Lease Purchase of Vehicles. In March 1983, Merit Finance was selected to provide financing for the lease/purchase of various City vehicles. They were selected based upon their low interest rate of 8.751%. Merit Finance is willing to extend this rate to purchase two additional vehicles -step van and cargo van -in July 1983. The City proposes in the ordinance to lease/purchase: QUANTITY ITEM TOTAL COST LIFE 1 Step Van $12,260 4 years 1 Cargo Van $ 9,250 4 years GRAND TOTAL $21,510 13. Items Relating to Library Program in the Larimer County Jail. A. Resolution Approving Contract with Larimer County for Operation of the Library Program in the Larimer County Jail. ' B. Hearing and First Reading of Ordinance No. 93, 1983, Appropriating Unanticipated Revenue in the Larimer County Library Services Fund. This contract has been held until Larimer County Commissioners made a decision on where the library program would fit upon completion of the new Larimer County Detention Center. They have decided to move it at that time to the Sheriff's Department. Wording of the contract allows for payment to the City of Fort Collins for only the part of 1983 that the program is managed by the Fort Collins Public Library. 14. Resolution Delegating the City's Authority to Issue Revenue Bonds to Provide Residential Housing Facilities to Larimer County 1983. Larimer County is again preparing to issue tax exempt bonds to finance low and moderate income residential housing. Due to economies of scale and the rules under which Single -Family Mortgage Revenue Bonds are issued, it is advantageous to have a Countywide Bond issue. Each incorporated area in the County must adopt a resolution authorizing the County to issue bonds on their behalf before these Bonds can be I issued on the County level. -309- July 5, 1983 Council passed similar resolutions in 1981 and 1982 to allow the County to issue revenue bonds for housing on the City's behalf. 15. Routine Easemen The following are routine easements which have been reviewed and approved by the affected departments and legal staff: a) Powerline easement from Kings Town Properties, Inc., located at 1506 West Horsetooth Road. Consideration: $1. b) Powerline easement from William John Kamm, located at 1600 West Horsetooth Road. Consideration: . These two powerline easements are for the installation of an electric vault, which will facilitate the transfer of customers from the Poudre Valley Rural Electric Association System to City electric service in the Werner Annexation area, which was approved by Council in 1980. The scheduled service transfer date is August 1, 1983. ' c) Powerline easement from Brian Klepinger and Linda Keenan, located at the rear of 135 West a treet, nee a or conversion of an overhead electrical system to an underground installation. Consideration: $1. d) Easement from the City to the South Fort Collins Sanitation District for installation of a sewer ine through City property to serve the new Transfort Facility on Trilby Road. Ordinances on Second Reading were read by title by Wanda Krajicek, City Clerk. Item #5. Second Readi the Co e to in Req tered of Ordinance No. 75, 1983, Amending Chapter 16 of vi a or t o ssuance o Specia Assessment Bonds as Lc mine. n ons as Item #6. Second Reading of Ordinance No. 76, 1983, Appropriating $1,089, to the Commu m ty Deve opment oc Grant -Fun . Item #7. Second Reading of Ordinance No. 77, 1983, Appropriating Unantici- pated Revenue or the Police POSSE System. Item #8. Second Reading of Ordinance No. 78, 1983, Vacating a Portion of a ' Blanket Easement in Underhi 1 PUD, Phase I to allow the .build- ing envelope to extend into the easement ess t an eet. -310- Item #9. Second Reading for Landscapin of Ordinance No. 85, 1983 for the Median for the July 5, 1983 ' ati nq $11,000 Item #10. Second Reading of Ordinance No. 86, 1983, Creating and Organizi Lemay Harmony Special Improvement District No. Ordinances on First Reading were read by title by Wanda Krajicek, City Clerk. Item #11. Hearing and First Reading of Ordinance No. 87, 1983, Vacating a Portion of an Alley Located in Block 4, Riverside Park Subdivi- sion. Item #12. Hearing and First Reading of Ordinance No. 88, 1983, Authorizing the City Manager to Enter into an Agreement or the Lease Pur- chase of Vehicles. Item #13. B. Hearing and First Reading of Ordinance No. 93, 1983, Appro- priating Unanticipated Revenue in the Larimer County Library Services Fund. Councilmember Clarke made a motion, seconded by Councilmember Cassell, ' to adopt and approve all items not removed from the Consent Calendar. Yeas: Councilmembers Cassell, Clarke, Horak, Knezovich, Ohl son, and Rutstein. Nays: None. THE MOTION CARRIED. Consider Approval of Pawnbroker's License for Poudre Pawn, 224 South College Avenue, License Approved Following is the staff's memorandum on this item: "The City Code requires approval by the City Council prior to issuance of any new pawnbroker's license for operation within the City. The City currently has one pawnbroker's outlet in operation. Mr. Melvin Isernhagen has filed an application for a new pawnbroker's license, to operate under the trade name Poudre Pawn at 224 South College Avenue. The Police Department has completed a routine background investigation of the owner and has made the following recommendation: "No derogatory infor- mation has been developed vestigation. There has with regard to Mr. been nothing found Isernhagen during this in- which would preclude this , applicant from operation of the pawn shop with regard to his character." -311- July 5, 1983 Mr. Isernhagen currently owns and operates the Poudre Pawn Shop at a location outside the city limits, and if the new application is approved, he will relocate the business to the South College location within the City limits. The pawn shop is engaged in handling used merchandise, and providing loans on merchandise brought in by private individuals. To operate within the City limits, this type of business must conform to the record -keeping and operation procedures set out in Chapter 73 of the City Code. The pawn shop operator has posted the required $2500 surety bond and has paid the application fee of $55. City Council needs to review the application and the Police Department recommendation, and determine whether a pawnbroker's license should be issued for Poudre Pawn to operate at 224 South College Avenue." Councilmember Cassell made a motion, seconded by Councilmember Ohlson, to grant a pawnbroker's license to Mr. Melvin Isernhagen, dba Poudre Pawn, 224 South College Avenue. Rock Sorensen, representing the applicant, noted he was available to answer questions and that Mr. Isernhagen was also present. The vote on Councilmember Cassell's motion to approve the pawnbroker's license was as follows: Yeas: Councilmembers Cassell, Clarke, Horak, Knezovich, Ohlson, and Rutstein. Nays: None. THE MOTION CARRIED. Items Relating to Purchase of the Baumgartner Property Following is the staff's memorandum on this item: "A. Resolution Authorizing the Purchase of the 66.67 acres Baumgartner Property. B. Hearing and First Reading of Ordinance No. 89, 1983, Appropriating Prior Year Reserves in the Sewer Fund for Purchase of the Baumgartner Property. Harold F. Baumgartner, the owner of 66.67 acres of farm land located immediately south of and adjacent to the City's sludge management farm has on June 21, 1983 offered this land for sale to the City for $100,000 if this offer can be closed by August 1, 1983. This is the same land that was -312- 1 July 5, 1983 offered to the City in April 1983 when 26.9 acres was to be made immediate- ly available and 39.8 acres was to be a gift to the City at a later date. The realtor had at that time mistakenly included 10 units of Colorado -Big Thompson water in the offer. That water had been previously disposed of by the owner. This offer is considered a good buy for the City at $1500 per acre gross land. Ron Mills, City Right -of -Way Agent, has placed a value of $98,514 on the 19.7 acres presently under irrigation. Seven 2110 acres of the remain- ing land is high ground and 39.8 acres is river front low ground. The staff and Water Board recommend the acquisition of the land for $100,000... Councilmember Clarke made a motion, seconded by Councilmember Ohlson, to adopt Resolution 83-119. Deputy City Manager Jim Meitl called Council's attention to a letter from Mr. Dan Eckles of Collindale Real Estate, in which Mr. Eckles describes the ' circumstances of the misunderstanding about the water rights on the proper- ty. Councilmember Clarke asked if the $100,000 price was based on the property being irrigated and if so, is the price too high. Dan Eckles, 1408 West Mountain, explained the miscommunication between him and his client that led him to assume the 10 units of CBT water were in- cluded. Because of the mistake, Mr. Baumgartner has decided to sell the entire 66.7 acres to the City for the $100,000. Mayor Knezovich asked why there had not been any change in the acquisition price now that the 10 units of CBT water that were valued at approximately $10,000 are not included. Mr. Eckles replied the seller was giving up approximately $20,000 in tax benefits by not giving the 39.8 acres parcel to the City at a later date. He stated this makes the per acre price quite low for property in the growth area and he felt it was a good opportunity for the City. He added it would cost the seller approximately $11,000 to purchase water to add to the property and that the seller was not in a financial position to do this. Deputy City Manager Meitl stated that Right -of -Way Agent Ron Mills had placed a value of $98,514 on the 19.7 acres regardless of the water rights ' being included. Ten units of CBT water would add an .additional $11,000 to the value. He added that made the price $5,000 per acre which was in line -313- July 5, 1983 with the price paid for the original 251 usable acres on the current sludge farm. He stated the Water Board had unanimously recommended approval of the purchase even after learning the water did not accompany the property. Councilmember Cassell asked if all this property except the 19.7 acres was in the flood plain. Deputy City Manager Meitl replied the 26.9 acres was high ground and the 39.8 was adjacent to the river. In the recent flooding only approximately 50 yards along the river bank or 30-40% of the 39.8 acres was low enough to be under water. Councilmember Cassell asked if given the technology available on the land application of sewage, would all the land be used for application. Deputy City Manager Meitl replied that sludge would not be applied to the 39.8 acres. It would be used for open space by the Parks and Recreation Department. Councilmember Rutstein asked how much the land was worth without water to a farmer or businessman. Mr. Eckles replied the 26.9 acres was valued at $5,000 per acre without any improvements or water, making it worth well over $125,000. Councilmember Horak stated he felt this was an excellent purchase that extends the life of the sludge farm and makes a start towards purchasing land along the Poudre River so that one day the City may control most of the land on both sides of the River for recreational purposes and for flood plain control. Mayor Knezovich stated he felt the City should save its resources and fill up the existing sludge farm before new areas are obtained. The vote on Councilmember Clarke's motion to adopt Resolution 83-119 was as follows: Yeas: Councilmembers Cassell:, Clarke, Horak, Ohlson, and Rut- stein. Nays: Mayor Knezovich. THE MOTION CARRIED. Councilmember Horak made a motion, seconded by Councilmember Ohlson, to adopt Ordinance No. 89, 1983 on First Reading. Yeas: Councilmembers Cassell, Clarke, Horak, Knezovich, Ohlson, and Rutstein. Nays: None. ' THE MOTION CARRIED. -314- July 5, 1983 ' Resolution Delegating the City's Authority to Issue Revenue Bonds to Provide Residential Housing Facilities to Larimer County during 1983, Adopted Following is the staff's memorandum on this item: "Larimer County is again preparing to issue tax exempt bonds to finance low and moderate income residential housing. Due to economies of scale and the rules under which Single -Family Mortgage Revenue Bonds are issued, it is advantageous to have a Countywide Bond issue. Each incorporated area in the County must adopt a resolution authorizing the County to issue bonds on their behalf before these Bonds can be issued on the County level. Council passed a similar Resolution in 1981 to allow the County to issue revenue bonds for housing on the City's behalf. Enclosed are a letter from the County Commissioners and a fact sheet they provided. 1981 Larimer County Mortgage Revenue Bonds created one hundred forty-six ' loans amounting to $6,837,650. Ninety loans totaling $4,236,350 were made in Fort Collins, that represented 61.6% of total loans made. The average loan in Fort Collins was $47,070. The average gross income of loan re- cipients was $23,990 county -wide." Councilmember Horak made a motion, seconded by Councilmember Clarke, to adopt Resolution 83-118. Councilmember Horak asked why the income limit was set so high for this issue. City Controller Jim Harmon introduced Linda Clark of Boettcher and Company who spoke on the specifics of the issue. Ms. Clark noted the income levels would be set on the County level. The County targets a somewhat higher income level. She noted lenders had asked for the higher income level because not enough people can qualify with a lower income. Councilmember Cassell noted one of the past criticisms of the program had been the fact that the bracket for income and the price of the home don't meld. He felt this program did that. He added the $8.6 million available would only provide approximately 100 loans which is not a large number of loans. Ms. Clarke noted these loans were limited to first-time home buyers and that the program would not be offered next year unl,ess the sunset law is I repealed. -315- July 5, 1983 Mayor Knezovich stated his letter of transmittal of the Resolution would recommend to the County that the income limits may be too high and that the program should be targeted towards low and moderate income families. The vote on Councilmember Horak's motion to adopt Resolution 83-118 was as follows: Yeas: Councilmembers Cassell, Clarke, Horak, Knezovich, Ohlson, and Rutstein. Nays: None. THE MOTION CARRIED. Councilmembers' Reoorts Councilmember Rutstein reported she and Mayor Knezovich would be interview- ing applicants for the Airport Authority on Wednesday and Friday. Mayor Knezovich reported on the 4th of July celebration in City Park and commended the efforts of all the volunteers, Parks and Recreation staff, Lincoln Center staff, Poudre Fire Authority members, Club 100, and the Knights of the Roundtable who made the day possible. Mayor Knezovich announced the Other Business portion of the meeting would be held immediately following Citizen Participation instead of at the end of the meeting. -Citizen Participation The following persons spoke: 1. Dave Meyer, 513 Garfield, representing Citizens Against the MX, asked for scoping hearings in Fort Collins and presented petitions containing approximately 1,276 signatures in support of that position. 2. Ben Magsamen, 3805 South Centennial Drive, voiced his concern and objection to the Roesser property trade in the Pineridge open space area. 3. Mike Hadwick, 3505 South Centennial Drive, objected to the Roesser property trade and presented petitions containing 196 signatures in support of his position. 4. John Gascoyne, representing some of Drive area, expressed their concern Roesser property trade. -316- the homeowners in the Centennial and objection to the proposed July 5, 1983 ' 5. Jim Woodward, 430 Garfield, spoke in favor of MX scoping hearings in Fort Collins. 6. Ethel Smith, 1824 Yorktown, spoke in favor of the Roesser property trade. Other Business MX Scoping Hearings Councilmember Ohlson made a motion, seconded by Councilmember Rutstein, to introduce and adopt Resolution 83-122 requesting the United States Air Force conduct public MX scoping hearings in the city of Fort Collins. Mayor Knezovich read the Resolution in full. Councilmember Ohlson stated he felt this was a regional issue and that the citizens of Fort Collins and northern Colorado should have an opportunity to ask questions of the Air Force on the impacts the project may have on northern Colorado. Councilmember Cassell pointed out the issue was not whether people were for ' or against the MX missile. The scoping hearings were to furnish informa- tion on the impacts on the communities near prospective location sites. He added he was in opposition to asking for additional hearings since the opportunity to hear this issue has been made available on other occasions. Councilmember Rutstein felt the hearings should be held in Fort Collins and strongly supported the Resolution.. She felt there would be socioeconomic and environmental concerns since the prospective site was only 45 miles away. Councilmember Clarke noted the Air Force felt the project would not have environmental impact in the Fort Collins area and had declined to hold hearings here for that reason. He stated he felt the impacts of the project were confined to the Wyoming -Nebraska area and were not a regional concern. Councilmember Horak noted the purpose of the scoping hearings was to provide bounds for a study dealing with economics, environmental, social, and regional impacts. He felt the scoping hearings were the most critical part of an impact statement and since concern had been voiced in Fort Collins, it seemed a reasonable request to ask for these hearings. The following individuals spoke on this issue: 1. Joe Stern, 1221 Laporte Avenue, noted he had attended the 'Wyoming I hearings and supported the request for hearings in Fort Collins. -317- July 5, 1983 2. John Payne, 1221 Laporte Avenue, expressed his support for hearings in Fort Collins and discussed the unemployment situation in Cheyenne and Fort Collins. 3. Sandy Lemberg, Poudre Canyon, noted he would attend hearings if held in Fort Collins and supported the request. 4. Sharon Brown, 1406 Oxborough Lane, felt the hearing should be requested for Fort Collins from a public information standpoint so factual information could be presented. 5. Susie Milton, 412 West Mountain, supported the request for hearings. 6. Mary Ackerman, 2718 Sutton Court, felt the issue was of concern in Fort Collins and spoke to the transportation of hazardous material on the rails and highways. 7. Jim Woodward, 430 Garfield, spoke in support of the Resolution request- ing hearings. ' 8. Julie Garwood, 1724 Ridgewood Road, spoke of the educational values of hearings in Fort Collins. The vote on Councilmember Ohlson's motion to adopt Resolution 83-122 was as follows: Yeas: Councilmembers Horak, Knezovich, Ohlson, and Rutstein. Nays: Councilmembers Cassell and Clarke. THE MOTION CARRIED. - Roesser Property Trade Assistant City Attorney Paul Eckman explained the alternate Resolutions he had prepared on the Roesser property trade issue. He noted two of the Resolutions dealt with the earlier Resolution (83-80) authorizing the exchange of land. The first Resolution would make changes to that earlier Resolution and the second would revoke and rescind the earlier action of Council. The third Resolution would overrule the decision of the Planning and Zoning Board made on June 27 dealing with the ridgeline/treeline issue and the width of the landscape easement. He noted Resolutions one and two were mutually exclusive. Councilmember Clarke made a motion, seconded by Councilmember Cassell, to adopt the Resolution overturning the decision of the Planning and Zoning Board made on June 27 and substituting Council's definition of treeline ' and a 30 foot landscape easement. -318- July 5, 1983 Councilmember Cassell suggested tabling the item for more information since the timing did not appear to be critical. Assistant City Attorney Eckman noted the City Manager was currently holding an agreement that had been authorized for execution and without Council's direction to delay that execution, staff is in a difficult position. City Manager Arnold suggested tabling the issue to an adjourned meeting on July 12 which would still allow the County deadline to be met and would allow Council more time for review. Councilmember Rutstein made a motion, seconded by Councilmember Cassell, to table the rest of the deliberations on this issue to July 12 and to direct staff to delay signing of the agreement pending the outcome of the July 12 meeting. Councilmember Clarke spoke in opposition to the motion to table. Jim Martell, representing Mr. Roesser, noted his client had no objection to tabling to July 12 if there would be opportunity for input at that time. ' The vote on Councilmember Rutstein's motion to table the issue to the adjourned meeting of July 12 was as follows: Yeas: Councilmembers Cas- sell, Horak, Ohlson, and Rutstein. Nays: Councilmembers Clarke and Knezovich. THE MOTION CARRIED. Airport Authority Composition Councilmember Horak made a motion, seconded by Councilmember Ohlson, that the composition of the three -member Fort Collins representation on the Airport Authority should be one citizen at large, the City Manager, and one Councilmember. Councilmember Clarke made a motion, seconded by Councilmember Rutstein, to amend the motion to read one Councilmember and two citizens at large. Yeas: Councilmembers Clarke, Ohlson, and Rutstein. Nays: Councilmembers Cassell, Horak, and Knezovich. THE MOTION FAILED. Councilmember Cassell made a motion, seconded by Councilmember Clarke, to amend the motion to read three citizens at large. Yeas: Councilmembers , Cassell, Knezovich, and Rutstein. Nays: Councilmembers Clarke, Horak, and Ohlson. THE MOTION FAILED. -319- ' July 5, 1983 The vote on Councilmember Horak's original motion (one citizen at large, the City Manager, and one Councilmember) was as follows: Yeas: Councilmembers Horak and Ohlson. Nays: Councilmembers Cassell, Clarke, Knezovich, and Rutstein. THE MOTION FAILED. Councilmember Horak made a motion, seconded by Councilmember Clarke, that the composition of the three -member Fort Collins representation on the Airport Authority be one Councilmember and two citizens at large. Yeas: Councilmembers Clarke, Horak, Ohlson, and Rutstein. Nays: Councilmembers Cassell and Knezovich. THE MOTION CARRIED. Items Relating to Downtown Development Authority Following is the staff's memorandum on this item: "A. Second Reading of Ordinance No. 79, 1983, Appropriating Funds for Payment of Cost Incurred by the Downtown Development Authority in ' Conduct of the Traffic Study. This Ordinance, which was adopted 6-0 at the June 21 meeting on First Reading, appropriates $1,813 in the DDA Fund as follows, for the payment of costs incurred by the DDA in the conduct of the traffic study: Interest $ 313 Administration 1,500 Total $1,813 B. Second Reading of Ordinance No. 80, 1983, Appropriating Funds in Connection with County Parking Lot Project. This Ordinance, which was adopted 6-0 on June 21 on First Reading, appropriates $20,919 in the DDA Fund as follows, in connection with the County Parking Lot Project: Interest $ 3,819 Construction 11,000, Administration 3,600 Fees & Permits 1,500 Legal 1,000 Contingencies 1,000 ' Total $20,919 -320- July 5, 1983 C. Second Reading of Ordinance No. 81, 1983, Appropriating Funds for Payment of Legal Fees Incurred by the Downtown Development Authority. This Ordinance, which was adopted 6-0 on First Reading on June 21, appropriates $25,100 in funds to allow the DDA to compensate the firm of Fischer, Brown, Huddleson and Gunn for their services in connection with the issuance of Tax Increment Bond Anticipation Notes. D. Second Reading of Ordinance No. 82, 1983, Appropriating Funds for Payment of Legal, Financial and Other Costs in Connection with the Issuance of Tax Increment BAN's. This Ordinance was adopted 6-0 on First Reading on June 21. Proceeds from the Bond Anticipation Note have been received, and appropriation of these funds will permit the DDA to fulfill its obligations as follows: Fischer, Brown, Huddleson & Gunn $20,000 Boettcher & Co. 34,100 Miscellaneous Expenses 10,900 Total $65,000 E. Second Reading of Ordinance No. 83, 1983, Appropriating Monies for the Downtown Development Authority for Expenditure on Linden Street Plaza Project. This Ordinance was adopted 4-0 on First Reading on June 21, with Coun- cilmembers Cassell and Ohlson withdrawn. At that meeting Council held a public hearing on the Linden Street Plaza Project, and adopted a Resolution approving the Old Town Plaza Project of the DDA. The appropriation of funds will allow the DDA to fulfill the obliga- tions outlined in the Implementation Agreement. F. Second Reading of Ordinance No. 84, 1983, Vacating a Portion of Linden Street for Development of Plaza. This Ordinance was adopted 4-0 on First Reading on June 21, with Councilmembers Cassell and Ohlson withdrawn. A request to vacate Linden Street between Mountain Avenue and Walnut Street, except for a small triangle shaped piece in front of the Avery Building and an alley, was submitted by Mitchell & Company as part of the Old Town Associates' Redevelopment Project in Historic Old Town. This is not a normal request in that the applicant will deed the vacated street over to the Downtown Development Authority. The DDA will become the owner of the vacated street, not the adjacent property -321- IJuly 5, 1983 owners, which is the normal situation. The ODA will develop a plaza in conjunction with the Old Town Associates' project. This transfer of the vacated portion of Linden Street is outlined in the agreement between Old Town Associates and the DDA. The agreement also outlines the control, operation, maintenance, security and other aspects of the future plaza between Old Town Associates and the DDA." Councilmember Cassell made a motion, seconded by Councilmember Clarke, to adopt Ordinance No. 79, 1983 on Second Reading. Yeas: Councilmembers Cassell, Clarke, Horak, Knezovich, Ohlson, and Rutstein. Nays: None. THE MOTION CARRIED. Councilmember Clarke made a motion, seconded by Councilmember Ohlson, to adopt Ordinance No. 80, 1983 on Second Reading. Yeas: Councilmembers Cassell, Clarke, Horak, Knezovich, Ohlson, and Rutstein. Nays: None. THE MOTION CARRIED. Councilmember Cassell made a motion, seconded by Councilmember Ohlson, to adopt Ordinance No. 81, 1983 on Second Reading. Yeas: Councilmembers Cassell, Clarke, Horak, Knezovich, Ohlson, and Rutstein. Nays: None. ' THE MOTION CARRIED. Councilmember Ohlson made a motion, seconded by Councilmember Cassell, to adopt Ordinance No. 82, 1983 on Second Reading. Yeas: Councilmembers Cassell, Clarke, Horak, Knezovich, Ohlson, and Rutstein. Nays: None. THE MOTION CARRIED. Councilmembers Ohlson and Cassell asked the record to show they did not participate in the discussion or vote on the remainder of the items on the agenda relating to the Downtown Development Authority. Councilmember Clarke made a motion, seconded by Councilmember Rutstein, to adopt Ordinance No. 83, 1983 on Second Reading. Yeas: Councilmembers Clarke, Horak, Knezovich, and Rutstein. Nays: None. (Councilmembers Cassell and Ohlson withdrawn) THE MOTION CARRIED. Councilmember Clarke made a motion, seconded by Councilmember Rutstein, to adopt Ordinance No. 84, 1983 on Second Reading. Yeas: Councilmembers Clarke, Horak, Knezovich, and Rutstein. Nays: None. (Councilmembers Cassell and Ohlson withdrawn) I THE MOTION CARRIED. -322- July 5, 1983 Items Relating to Preparation of Architectural and Engineering Designs for a Public Parking Structure Following is the staff's memorandum on this item: "A. Public Hearing on Public Parking Structure. B. Resolution Pertaining to the Development of a Public Parking Struc- ture. C. Hearing and First Reading of Ordinance No. 90, 1983, Appropriating Unanticipated Revenue in the D.D.A. Fund for the preparation of Archi- tectural and Engineering Designs for a Downtown Parking Garage. On May 3, 1983, Council approved Ordinance 53, 1983 authorizing the issu- ance of Tax Increment Bond Anticipation Notes on behalf of the Downtown Development Authority. The ordinance permits the use of revenue from these notes to fund development studies for downtown projects and for costs associated with those studies. As a part of its contract with Old Town Associates, Inc., for the rede- velopment of a section of Old Town, the Authority has agreed to pay for the construction of a parking garage. The DDA has reviewed a scope of work for the design and development of the garage and has recommended approval of a budget to fund this work. The firm of ZVFK was selected, using the City's selection process, to do the design and ZVFK has contracted with Walker, Inc. to do the engineering aspects of the structure. Their work will cover site and traffic analysis, functional and schematic design, PUD activities, design elements, construction documents, construction administration, and an operations and maintenance manual. The budget for the initial phases of the development of the parking garage is as follows: Legal/Appraisal Fees $ 25,000 Design of Structure 125,000 Contingency (5%) 7,500 Administrative 4,000 Total $161,500 At this time, Council needs to appropriate Bond Anticipation Note proceeds to pay for this work and to cover the, other costs associated with the garage development. -323- I July 5, 1983 The City Manager's staff recommends approval of the project. The con- struction of a parking facility in the downtown area is a very integral part of the success of the Old Town Project. The site has been evaluated by the DDA, Parking Commission and by the Planning and Zoning Board. All of these Boards have agreed this site (SE corner of Remington and Mountain) is the best site to both serve the Old Town project and the downtown area. As stated in the agenda item summary of June 7, 1983 City Council meeting, where the Council adopted Resolution 83-100 approving the location of this site, the parking facility at this location conforms to the adopted Com- prehensive Plan and is consistent with the DDA's Plan of Development. The project will be developed as a P.U.D. The timing of this action is directly tied to provisions outlined in the implementation agreement between the DDA and OTA. On page 11 of that agreement the DDA agrees to provide at least 300 parking spaces on a described site. Further on page 14 of the agreement under Section VI, Guarantees to DDA, states: "VI. GUARANTEES TO DDA. ' The Developer hereby confirms the guarantees provided in the Pre- liminary Agreement, and specifically and without limitation those in paragraphs 2.1, 3.1 and 3.2 thereof. The Developer guarantees to DDA shall be expressly conditioned on the following: 1. Until such time as the City completes the borrowing necessary to fund the construction of the Parking Facility or otherwise appropriates funds sufficient therefore, the DDA shall not expend funds drawn from the Development Account within the City of Fort Collins Downtown Development Authority Tax Increment Bond Anticipation Notes, Note Fund if any such expenditure would reduce the balance of funds available therein for pur- poses of the Project or the Parking Facility or previously applied thereto below Two Million One Hundred Thousand Dollars ($2,100,000). 2. The DDA shall include a liquidated damages penalty in the con- struction contract for the Parking Facility sufficient to enable payment by the DDA to Developer of One Thousand Dollars ($1,000) per day for delayed completion to compensate Developer for losses which the parties hereby agree Developer will incur if the Parking Facility should not be completed by October 1, 1984; provided, however, that the DDA shall not be respon- sible in any manner for any damages in excess of the liquidated damages obtained from such construction contract. Such damages shall only be due to Developer for such period as the Private Improvements portion of the Project is completed and the Parking Facility not completed. For the ' purpose of this provision, completion shall mean substantial completion permitting beneficial occupancy." -324- July 5, 1983 ' So long as the OTA expects to complete construction on schedule, we should provide the DDA with every opportunity to meet their schedule to build the parking structure." Councilmember Rutstein made a motion, seconded by Councilmember Horak, to adopt Resolution 83-120. Mayor Knezovich asked who would pay for parking in this structure. DDA Director Bill Kingsbury replied that the matter has yet to be decided and several options are being considered. If 100 spaces can be leased the other spaces might not be charged for initially. He indicated 750 persons would be employed by Old Town Associates and that adjoining businesses and property owners had made inquiries into leasing spaces. With regard to the garage site, DDA Director Kingsbury indicated the three property owners had agreed to one appraiser who will begin the appraisal immediately. Within 30 to 45 days the appraisal should be complete and negotiations with the owners will begin. Earl Wilkinson noted he was chairman of the site selection committee and that the property owners were not against selling, but were interested in I an early decision so they could move their businesses. He added the owners had been a part of the site selection process from the beginning. Bruce Lockhart, 615 Mathews, asked who eventually owns the parking struc- ture. Mayor Knezovich replied the DDA would hold title to the structure. Mr. Lockhart asked if the DDA would pay property tax. Mayor Knezovich replied all quasi -governmental entities were tax exempt. Mr. Lockhart suggested a garage built by private enterprise would benefit the downtown with the property tax paid and questioned why the downtown was being allowed to get out of paying property taxes when other shopping malls and commercial areas of Fort Collins were required to build their own parking and pay property taxes. The vote on Councilmember Rutstein's motion to adopt Resolution 83-120 was Yeas: Councilmembers Clarke, Horak, Knezovich, and Rutstein. Nays: None. (Councilmembers Cassell and Ohlson withdrawn) THE MOTION CARRIED. Councilmember Rutstein made a motion, seconded by Councilmember Clarke, to I adopt Ordinance No. 90, 1983, on First Reading. -325- July 5, 1983 Chuck Mabry, Mitchell and Company, addressed the construction schedule, noting construction was expected to begin in September, 1983, and to be completed in phases through October, 1984. Councilmember Horak expressed his concerns with regard to design work beginning prior to acquisition of the land. Councilmember Clarke noted he was comfortable going ahead since the proper- ty owners have not been difficult to deal with and since the City always has the option of condemnation if negotiations fail. Gene Mitchell, general partner of Old Town Associates, stated that if construction was to be started in September, a firm commitment was needed on the structure so that it could be in place at the time of the closing date of the Old Town project scheduled for October, 1984. The vote on Councilmember Rutstein's motion to adopt Orginance No. 90, 1983 on First Reading was as follows: Yeas: Councilmembers Clarke, Horak, Knezovich, and Rutstein. Nays: None. (Councilmembers Cassell and Ohlson withdrawn) THE MOTION CARRIED. ' Items Relating to a Hotel Feasibility Study Following is the staff's memorandum on this item: It Resolution Approving a Feasibility Study to examine the Concept of a Downtown Hotel/Convention Center. Hearing and First Reading of Ordinance No. 91, 1983, Appropriating Unanticipated Revenue in the D.D.A. Fund for a Hotel/Convention Center Feasibility Study. In August, 1982, then Mayor Gary Cassell appointed a Blue Ribbon Committee to determine the need for and most beneficial location of a hotel/conven- tion center in Fort Collins. That committee determined that the location which would provide the greatest benefit to the whole community through its stimulation of an area was the downtown. In early spring of 1983, community representatives including members from the DDA, City Manager's Office, City Planning Department, the Mayor's Blue Ribbon Committee, Larimer County Administrator's office, Employment and Training Service, Fort Town, and the Landmark Preservation Commission, were asked to sit on a committee to select a hotel developer. Requests for proposals were mailed and interested developers made presentations to the committee. On May 26, the partnership of Landmark/Mitchell was recommended ' to the DDA Board as the committee's selection. The Board approved the recommendation, 4-1. -326- July 5, 1983 ' In the material submitted to the Downtown Development Authority by Land- mark/Mitchell, it was made clear that the DDA was to share in the initial expenses of determining the feasibility, size, and scope of the project. The DDA believes this is an expense it should legitimately incur because it was the DDA which requested proposals and wishes to have a hotel developed. In addition, the information will be used by the DDA, the City, and the developer to determine the commitments and actions necessary of all parties involved with the project. This is extremely important since the necessary public financial commitments may extend beyond the tax increment generated by the project. The proposal submitted by Landmark/Mitchell, and subsequently refined through negotiations, calls for a number of stop -start points allowing the DDA, City, and developer to evaluate the project before proceeding to the next step. The initial phase to be undertaken by the DDA will involve two steps. After each, an evaluation will be made whether to continue or not. The steps are: 1. Site and market feasibility analysis 2. Financial feasibility. The work for each step is as follows: ' Step 1. Site and market feasibility analysis A. Engineering surveys to determine the availability of adequate utilities, site limitations, and foundation conditions B. Market feasibility to determine the nature of the market place and the demand. This step will take 90 days. The information gathered will be reviewed and only if the results are positive will the DDA proceed to step 2. Cost for the first step is $18,000. Step 2: Financial feasibility and recommendation. In this step, the market and financial consultant will analyze the project for both costs and revenues. Final recommendations will be made as to the nature, scope, and size of the project. From this information and the work being done by Landmark/Mitchell, decisions can be made as to the commitments needed by the DDA, City, and developer. At the conclusion of this step, which will also take 90 days and cost I $7,000, a decision will be made whether or not to continue. -327- July 5, 1983 Once this step is completed no other financial commitment will be made prior to returning to City Council. Should favorable conclusions result from the above two steps, the project would move into the design phase. In addition to the work above the DDA is also committed to developing any grant applications and to providing any consultants for tax, legal, or insurance responsibilities that may be peculiar to the City and State. It should also be noted that Landmark/Mitchell will be doing work and expending funds on the project during this initial phase. They will be preparing a building program, analyzing alternative site plans, and de- veloping conceptual designs and drawings. They also will be outlining material specifications, preparing for public meetings, including Planning and Zoning Board hearings, and securing equity, lending, and management commitments for the project. On May 3, 1983, Council approved Ordinance 53, 1983, which authorized the issuance of Tax Increment Bond Anticipation Notes on behalf of the Downtown Development Authority. The Ordinance permits the use of revenue from these notes to fund development studies for downtown projects. The DDA has prepared the following budget for the initial phase of the project: ' Step I Engineering Services $9,000 Market Analysis 9,000 Total - Step I $18,000 Step II Financial Analysis and $4,000 Final Report/Recommendation 3,000 Total --Step 2 — 7,000 Total Budget $25,000 It should be noted that the DDA has received a grant from the Larimer County Employment Training Act to cover staff cost and some legal and consulting fees related to the development of a hotel in downtown Fort Collins. Through this grant, the DDA is able to provide the necessary staff support for the hotel project while undertaking its other obligations. Action approving the undertaking of the feasibility study and appropriating the funds to finance it will permit the progress of this project." Councilmember Clarke made a motion, seconded by Councilmember Rutstein, to adopt Resolution 83-121. ' Councilmember Rutstein asked if this study was a duplication of other studies or work done by the Blue Ribbon Committee. -328- July 5, 1983 ' DDA Vice -Chairperson Barbara Schofield replied that some of the previously gathered information was applicable and would be used by the firm doing the feasibility study. They will give the DDA a preliminary letter on the feasibility of the project using much of the data from the Burlington Northern study and other material available. The letter will be obtained at a reduced rate because much of the information is readily available. A complete study would cost approximately $25,000 and the DDA felt it would be cost effective to go with this scaled down marketing study. She noted this expenditure was justified since the DDA had solicited the developer and, since the idea originally belonged to the DDA, the DDA should share in some of the initial cost burdens. The information received will be kept by the DDA and could be used by a future developer should this project not see completion. The vote on Councilmember Clarke's motion to adopt Resolution 83-121 was as follows: Yeas: Councilmembers Clarke, Horak, Knezovich, and Rutstein. Nays: None. (Councilmembers Cassell and Ohlson withdrawn) THE MOTION CARRIED. Councilmember Clarke made a motion, seconded by Councilmember Rutstein, to adopt Ordinance No. 91, 1983 on First Reading. Mayor Knezovich asked for justification to use BANs to fund the study. He suggested DDA operating funds be ' might used. DDA Director Bill Kingsbury replied the principal source of DDA funding was the tax increment. He stated the study was related to development and that the DDA had to look at the tax increment for some upfront costs although that was kept to a minimum. He added the study would produce a project that would produce a tax increment. The vote on Councilmember Clarke's motion to adopt Ordinance No. 91, 1983 on First Reading was as follows: Yeas: Councilmembers Clarke, Horak, and Rutstein. Nays: Mayor Knezovich. (Councilmembers Cassell and Ohlson withdrawn) THE MOTION CARRIED. Ordinance Appropriating Unanticipated Revenue in the D.D.A. Fund. (Larimer County Employment Training Act Grant), Adopted on First Reading Following is the staff's memorandum on this item: "The Downtown Development Authority has unanticipated revenue as a result of: I -329- July 5, 1983 1) receiving a grant from the Larimer County Employment Training Act to cover staff costs involved in developing the criteria and program for a downtown hotel/convention center. The criteria and program for the development of a hotel/convention center in Fort Collins includes selection of a developer; negotiations concerning site location, scope of facility, design, construction, time frames, financing terms and guaran- tees; determination of community benefits; and the holding of public hearings; and 2) the collection of fees for services provided by the DDA to various developers. This new revenue will be primarily used for staff costs on the development of the hotel, legal fees and as contingency funds. Employment Training Act $21,280 Fees Charged 4,154 ' Total $25,434" Councilmember Clarke made a motion, seconded by Councilmember Rutstein, to adopt Ordinance No. 92, 1983 on First Reading. Yeas: Councilmembers Clarke, Horak, Knezovich, and Rutstein. Nays: None. (Councilmembers Cassell and Ohlson withdrawn) THE MOTION CARRIED. Other Business Councilmember Horak asked that the Water Board be requested to look at the City's storage needs and requirements in the next 20 to 50 years on the Poudre and what parts of the Poudre might be affected by the City's plans. He asked for a report by late August or early September. Mayor Knezovich noted he had received the resignation letter of Council - member Gary Cassell effective August 1, 1983. Councilmember Ohlson made a motion, seconded by Councilmember Rutstein, to recess into Executive Session to discuss legal matters. Yeas; Council - members Cassell, Clarke, Horak, Knezovich, Ohlson, and Rutstein. Nays: ' None. THE MOTION CARRIED. -330- 1 July 5, 1983 Adjournment At the conclusion of the Executive Session, Councilmember Horak made a motion, seconded by Councilmember Clarke, to adjourn the meeting to 1:00 p.m. on July 12. Yeas: Councilmembers Cassell, Clarke, Horak, Knezovich, Ohlson, and Rutstein. Nays: None. The meeting adjourned at 12:00 a.m. l IL Mayor ATTEST: Miter -331- 1