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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/21/2012 - RESOLUTION 2012-013 APPROVING A TWO YEAR EXTENSIONDATE: February 21, 2012 STAFF: J.R. Schnelzer AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 18 SUBJECT Resolution 2012-013 Approving a Two Year Extension of the Second Interim Intergovernmental Agreement among the City, the Downtown Development Authority, the Downtown Business Association and Progressive Old Town Square, LLC, Regarding the Maintenance and Management of Old Town Plaza. EXECUTIVE SUMMARY This Resolution authorizes the City to extend the current Old Town Plaza maintenance and management agreement for two years by amending the existing agreement with the Downtown Development Authority (DDA), the Downtown Business Association (DBA), and Progressive Old Town Square, LLC (POTS). BACKGROUND / DISCUSSION The Old Town Plaza was developed in 1983-84 by a private developer to enhance the businesses in the Old Town area and provide a walking mall for shoppers. The DDA is the owner of this public plaza. In July 1993, Resolution 1993-161 authorized an intergovernmental agreement between the City of Fort Collins, and the DDA and the Fort Collins Old Town Limited Liability Company (FCOT) regarding the maintenance and management of Old Town Plaza, and established a payment in lieu of taxes, in the event the City did not receive a specified minimum tax increment from FCOT. The initial agreement ran for a period of 25 years, with two ten year periods. On October 29, 1993, the City, DDA and Progressive Old Town Square Limited Liability Company (POTS), successor in interest to FCOT, entered into an agreement pursuant to Resolution1993-161. The agreement was for a period of 25 years, with two ten-year extension periods. There were two amendments to the October 29, 1993 agreement: one on May 20, 1994, concerning the provision of electrical energy supply to lights and signs; and another dated August 14, 2000, which provided for enhanced maintenance and capital improvements for Old Town Plaza. On July 13, 2005, the City, DDA and POTS entered into an Interim Agreement redefining and modifying the roles, responsibilities and financial commitments of each of the parties with regard to the use, operation, maintenance and repair of Old Town Plaza and adjacent rights-of-way. The Interim Agreement was for a one-year term while the parties worked on a new permanent agreement to replace the 1993 agreement. All parties met their responsibilities under the Interim Agreement, even after its expiration. A second Interim Agreement, which also included the DBA, was entered into on April 21, 2010, effective retroactively to June 15, 2006, and expiring on December 31, 2011. The parties have not yet been able to negotiate a new permanent agreement, and now wish to enter into an amendment that would extend the Second Interim Agreement, continuing each party’s responsibilities for Old Town Plaza and adjacent rights-of-way for up to another two years, expiring on December 31, 2013. The City, DDA and POTS will each contribute funds for maintenance and repair work, which will be performed by the City. FINANCIAL / ECONOMIC IMPACTS Under the terms of the Second Interim Agreement, the DDA and City each contributed $59,645 as their share of the costs for maintaining Old Town Plaza and the adjacent rights-of-way; POTS contributed $54,566 in 2011 as its share. These amounts will be adjusted annually based on the Consumer Price Index. The agreement provides for the maintenance of the Old Town Plaza. The level of maintenance provided by the City’s Parks Department is superior to the level of maintenance provided before the Parks Department’s involvement. A well- maintained Plaza is an essential element to an attractive and vital Downtown. The success of downtown businesses is enhanced by an attractive Old Town Plaza and their success improves the economic health of the community. February 21, 2012 -2- ITEM 18 ENVIRONMENTAL IMPACTS The current environment of the Old Town Plaza is developed around high intensity use, consisting of raised planter beds, a water feature and hardscape consisting of pavers. The proposed extension of the Interim Agreement will maintain the integrity of the hard surfaces by periodic power washing where all reclaimed water is captured. Flower beds will be installed and maintained, utilizing annual planting and backed up with perennial plants. Watering will be kept to a minimum with needed amounts determined by the weather and temperature. Fertilization will conform to sustainable practices, utilizing organic material as much as possible, and recycled wood products. Staff in the core area will utilize a bicycle mode of transportation as much as possible for the majority of the daily work. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BOARD / COMMISSION RECOMMENDATION The DDA, DBA and POTS have all approved and executed the First Amendment to Second Interim Agreement, which would extend the agreement for two additional years. ATTACHMENTS 1. Map of service area 2. Scope of work 3. Downtown Development Authority minutes, January 12, 2012 1 Attachment 2 Extension of Second Interim Agreement “Scope of Services” A. The City shall be responsible for the following maintenance tasks in Old Town Plaza, Trimble Court, Tenney Court, and the Rights-of-Way (collectively the “Service Area”): 1. Routine Cleaning and Maintenance. The City will be responsible for cleaning of all surfaces within the Service Area, including but not limited to maintaining the cleanliness of flagstone and concrete surfaces, light standards, trash receptacles, cigarette receptacles, movable planters, flag poles and benches. The City will provide one power washing per week for surfaces in areas where food vendors are permitted to operate, and eight power washings per year for other paver surfaces. The City will repair movable fixtures, including but not limited to benches and trash receptacles. The City is not responsible under this Agreement for repairing permanent fixtures, including but not limited to light standards and flag poles. The DDA agrees to be responsible for repair and replacement of such permanent fixtures, for replacement of all movable fixtures, and for repair or replacement of infrastructure. The DDA may arrange with the City to provide these additional services at the DDA’s expense. 2. Routine Cleaning and Maintenance of the Fountain. The City will apply chemicals, change filters, and be responsible for turning on and shutting off the fountain in Old Town Plaza. The city will drain, clean and refill the fountain as needed. The DDA will be responsible for pump repairs, replacement of fountain components and infrastructure and annual underground pipe cleaning and/or replacement. The DDA may arrange with the City to provide these additional services at the DDA’s expense. 3. Snow Removal. The City will provide snow removal services within the Service Area up to $12,000 per calendar year. The cost of snow removal services in excess of $12,000 per calendar year shall be paid for by the DDA. The City will provide notice to the DDA when snow removal costs have exceeded $9,600 per calendar year. 4. Flower Beds, Movable Planters, Hanging Baskets. The City will design, purchase, install and provide routine maintenance of all plant materials, including seasonal plantings, water, fertilizer, and fall cleanup for beds, planters and hanging baskets located within the Service Area, based on the quantity of materials provided the previous year. Any significant increase or decrease in 2 plantings from the previous year will only be by mutual agreement of the parties. The City will replace plant materials damaged or destroyed by vandalism. Should the DDA request that annual plants be installed prior to May 15 (average date of last frost), the DDA will bear the cost of replacing annual plants damaged by frost, snow, ice or freezing temperatures. The DDA or event sponsor will also reimburse the City for the cost of replacement required as a result of damage during special events, as described in Section D, below, or extreme weather. 5. Routine Litter Control. The City will be responsible for litter control and debris removal within the Service Area, except for special events where the event sponsor is contractually responsible for cleanup, and except as described in Section D, below. While performing its obligations under this Agreement, the City shall be entitled to use the POTS dumpsters located behind Building 11, Old Town Square, at no charge. 6. Statuary. The City will consult with POTS about any maintenance to be done by the City for statuary owned by POTS within the Service Area, and the costs of any such maintenance shall be the responsibility of POTS. The City will consult with the DDA about maintenance to be done by the City for statuary owned by the DDA within the Service Area, and the costs of any such maintenance shall be the responsibility of the DDA. 7. Other. Any other maintenance requests beyond those listed in this Scope of Services can be arranged for between the City and DDA at an additional cost based on time and materials. B. Building 13, Old Town Square. The DDA is responsible for routine maintenance of Building 13, Old Town Square (the “Kiosk”) under the DDA Lease Agreement with POTS. The DDA has arranged for the City to provide janitorial services for the Kiosk under a separate IGA dated August 24, 2007. The City shall have no other responsibility for maintenance of the Kiosk. C. Flags and Holiday Decorations. The City will not be responsible for providing or maintaining holiday decorations, banners or flags, other than holiday lighting as stipulated in the separate Holiday Lighting Agreement dated December 1, 2008, or as the parties may otherwise agree. The City will not be responsible for repairing any vandalism to decorations, banners or flags. The City will assist in set up and removal of holiday decorations, Santa’s House banners or flags, if requested, at an additional cost for time and materials. D. Special Events. If a DDA-or DBA-authorized special event held in the Service Area requires higher than normal levels of trash pickup, repair or replacement of damaged plantings and fixtures, the need for additional power washing, or other cleaning or maintenance services beyond regularly scheduled day-to-day 3 levels in order to return the Service Area to the approximate condition it was in prior to the special event, the City may bill the DDA for such additional services. The DDA must notify the City Parks Department in advance of all DDA- or DBA- scheduled special events occurring within the Service Area, including the expected size and length of the event. E. Level of Service. The City will provide the level of maintenance and repair, snow removal services, and quantity, quality and type of plant materials that it normally and customarily provides in its own programs, and the City, in consultation with the DDA, will make the determination of any needed repair or replacement or the type and manner of such repair or replacement. Repairs and replacements shall be generally consistent with the design of similar improvements in the Old Town Plaza. Beginning on June 30, 2009 and by the same date in each succeeding year during the Term, the City will provide the DDA with a description of services being performed in Old Town Plaza and the Rights-of-Way by the City under this Scope of Services and a breakdown of the cost of each service, and shall further identify any modifications to the levels of service that have been affected by changes in the City’s customary service levels. F. No POTS Responsibility. In accordance with Paragraph 3.2 of the Second Interim Agreement and notwithstanding any limitations on the City’s Scope of Services as set forth in this Exhibit D, POTS shall have no responsibility for maintenance, repair or replacement of improvements within the Old Town Plaza or the Rights-of-Way during the Term hereof provided that it is current in making its required payments under the Second Interim Agreement. Attachment #2: Service area defined. RESOLUTION 2012-013 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING A TWO-YEAR EXTENSION OF THE SECOND INTERIM AGREEMENT AMONG THE CITY, THE DOWNTOWN DEVELOPMENT AUTHORITY, THE DOWNTOWN BUSINESS ASSOCIATION AND PROGRESSIVE OLD TOWN SQUARE, LLC, REGARDING THE MAINTENANCE AND MANAGEMENT OF OLD TOWN PLAZA WHEREAS, the Downtown Development Authority (DDA) is the owner of certain real property located in Fort Collins, Colorado, known as “Old Town Plaza”, as shown on Exhibit “A”, attached and incorporated herein by reference; and WHEREAS, Old Town Plaza was developed by a private developer in 1983-84 to enhance the Old Town area by providing a pedestrian mall for shoppers; and WHEREAS, Progressive Old Town Square Limited Liability Company (POTS) is the owner of private buildings adjacent to Old Town Plaza, as shown on Exhibit A; and WHEREAS, the Downtown Business Association (DBA) manages Old Town Plaza on behalf of the DDA; and WHEREAS, the City is the owner of certain rights-of-way adjacent to and abutting both Old Town Plaza and the POTS property, as shown on Exhibit A; and WHEREAS, in July, 1993, the City Council approved Resolution 1993-161, authorizing an agreement between the City, the DDA, and POTS’ predecessor in interest; and WHEREAS, on October 29, 1993, in accordance with Resolution 1993-161, the City, DDA and POTS entered into an agreement regarding the maintenance and management of Old Town Plaza and establishing a payment in lieu of taxes (the “1993 Agreement”); and WHEREAS, the parties have since executed two amendments to the 1993 Agreement, the first of which, dated May 20, 1994, had to do with the provision of electricity to lights and signs, and the second, dated August 14, 2000, provided for payments for enhanced maintenance and capital improvements for Old Town Plaza; and WHEREAS, On July 13, 2005, the City, DDA and POTS entered into an agreement modifying the roles, responsibilities and financial commitments of each party with regard to the use, operation, maintenance and repair of Old Town Plaza and adjacent rights-of-way (the “First Interim Agreement”); and WHEREAS, on April 21, 2010, the City, DDA, DBA and POTS entered into a revised agreement regarding Old Town Plaza and the adjacent rights-of way (the “Second Interim Agreement”); and WHEREAS, under the Second Interim Agreement the City and DDA each agreed to contribute $58,931 annually and POTS agreed to contribute $4,500 per month, as their respective shares of the maintenance costs, with these amounts being adjusted annually to reflect changes in the consumer price index; and WHEREAS, the First and Second Interim Agreements were meant to remain in place only until the parties negotiated a new agreement to replace the 1993 Agreement; and WHEREAS, the Second Interim Agreement expired on December 31, 2011; and WHEREAS, the parties have not yet negotiated a new agreement and now wish to extend the Second Interim Agreement on the same terms and conditions; and WHEREAS, a proposed First Amendment to the Second Interim Agreement, which would extend the Second Interim Agreement for up to three more years, is attached and incorporated herein as Exhibit “B”; and WHEREAS, the First Amendment to the Second Interim Agreement has been approved by the DDA, DBA and POTS; and WHEREAS, under the Second Interim Agreement, the City, DDA and POTS would each continue to contribute funds to pay for maintenance and repair work for Old Town Plaza and the rights-of-way, with the City performing the work; and WHEREAS, pursuant to Section 1-22 of the City Code, the City Council is being asked to approve the First Amendment to the Second Interim Agreement by resolution because it is, in part, an intergovernmental agreement between the City and the DDA, and the direct monetary payments to be made by the City exceed $50,000. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the City Manager is hereby authorized to execute the First Amendment to the Second Interim Agreement in substantially the form as is shown in Exhibit “B”, together with such additional terms and conditions as the City Manager, in consultation with the City Attorney, deems necessary and appropriate to protect the interests of the City or to effectuate the purposes of this Resolution. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 21st day of February A.D. 2012. Mayor ATTEST: City Clerk Exhibit B