HomeMy WebLinkAboutMINUTES-08/18/1998-RegularAugust 18,1998
COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
Council -Manager Form of Government
Regular Meeting - 6:00 p.m.
A regular meeting of the Council of the City of Fort Collins was held on Tuesday, August 18, 1998,
at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered
by the following Councilmembers: Azari, Bertschy, Byrne, Kneeland and Smith.
Councilmembers Absent: Mason. Wanner arrived at 6:20 p.m.
Staff Members Present: Fischbach, Krajicek, Roy.
Presentations
Karen Gerard, Executive Director of Funding Partners for Housing Solutions, stated that after
receiving City seed money, the agencyreceived a certification as a community development financial
institution (CDFI), making Housing Solutions a source of qualified investments for regulated
banking interests. Mark Driscoll, President of First National Bank, presented a check to Funding
Partners for $50,000.
Citizen Participation
Kelly Ohlson, 2040 Bennington Circle, opposed using the term "celebration" for the Timberline
Extension grand opening.
Citizen Participation Follow-up
Councilmember Smith spoke concerning the Timberline Extension grand opening.
Councilmember Kneeland thanked First National Bank for its contributions to affordable housing.
Agenda Review
City Manager Fischbach stated that item #12 Second Reading of Ordinance No. 137, 1998,
Amending Chapter 7 of the City Code Relating to Voter Registration and Election Campaign
Reports has been withdrawn from the Consent Calendar for discussion.
City Manager Fischbach highlighted revisions to item #28 Resolution 98-126 Assigning a
Councilmember as Liaison to the Citizen Review Board.
August 18, 1998
CONSENT CALENDAR
7. Second Reading of Ordinance No 131 1998 Appropriating Unanticipated Revenue in the
General Fund to Develop a Local Action Plan for Reducing Greenhouse Gas Emissions
Ordinance No. 131, 1998 which was unanimously adopted on First Reading on August 4,
1998, appropriates $18,350 of unanticipated revenue in the General Fund for the Cities for
Climate Protection program that Fort Collins joined in 1997. The funds will be used by the
Natural Resources Department to develop Fort Collins' Local Action Plan for reducing
greenhouse gas emissions.
8. Second Reading of Ordinance No. 132 1998 Appropriating Unanticipated Revenue in the
General Fund for the Use of Camera Radar and Red -Light Cameras to Enforce Traffic
Violations.
Last year, the operational components of the City's camera radar program were altered to
comply with the requirements of Senate Bill 97-36 ("SB 97-3611). At that time, staff
recommended that the program continue to operate and be modified to comply with SB 97-
36 to allow the City time to monitor the operational statistics of the program to determine its
effectiveness under the new conditions of SB 97-36. Ordinance No. 132, 1998 was
unanimously adopted on First Reading on August 4, 1998 and appropriates the funds
necessary to continue operation of the traffic cameras in Fort Collins for the third year of the
contract with American Traffic Systems.
9. Second Reading of Ordinance No. 133, 1998 Authorizing the Execution of an
Intergovernmental Agreement Between the City of Fort Collins and the State of Colorado
(Department of Transportation), Relating to the Desian Construction and Maintenance of
the Harmony Road/1-25 Interchange and Transportation Transfer Center Project
The City and the Colorado Department of Transportation (CDOT) have been working
collectively to design the Harmony Road/I-25 interchange project, including the planned
multimodal Transportation Transfer Center ("TTC"). The City's goal with this project is to
not only improve the safety and operation of the interchange and provide multimodal
services, but also to serve as an enhanced gateway feature into the Fort Collins community.
hi order to accomplish this goal, the quality of facilities and quantity of landscaping features
was increased dramatically over CDOT's existing standards.
City and CDOT staff negotiated this proposed agreement in order to provide for the
construction of these necessary enhancements. Ordinance No. 133, 1998 was unanimously
adopted on First Reading on August 4, 1998 authorizing the intergovernmental agreement
between the City and CDOT allowing construction work to proceed on the Harmony Road/1-
25 Transportation Transfer Center and Interchange project.
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10. Second Reading of Ordinance No 134 1998 Amending the City Code to Revise Water and
Wastewater Plant Investment Fees.
The City funds its daily water and wastewater utility operations through rates which are
charged to customers on the monthly utility bill. However, for growth -related capital
improvements, the City charges a Plant Investment Fee (PIF) as new customers connect to
the system. PIFs are charges to new customers for the capacity required to serve them. The
PIF is collected at the time a City building permit is issued. Existing PIFs have been in effect
since 1991. Since that time, there have been significant improvements to the water and
wastewater utility infrastructure which necessitate an adjustment to the PIFs. Based on
feedback from the development community, the new PIFs will be implemented January 1,
1999, to provide adequate lead time to prepare for the new rates. Ordinance No. 134, 1998
was unanimously adopted on First Reading on August 4, 1998.
11. Second Reading of Ordinance No.136,1998 Adopting the 1998-1999Classified Employees
Pay and Classification Plan.
When the City initiated the project of revising the compensation and classification system
two years ago, there were specific objectives to be met as follows:
• Develop labor market comparisons that are consistent with the City's compensation
philosophy ofsalaries set at the 70`R percentile
• Implement an effective, dependable job classification system
• Consolidate job titles
• Develop a structured compensation plan-
e Develop a compensation plan that is understandable to employees and easily
implemented by managers
During the August 4,1998 City Council meeting there was some discussion about the current
language in Section 3 of the PayPlan Ordinance regarding the flexibility ofthe CityManager
to modify or make changes to the Pay Plan. Council requested that the language of the
Ordinance be revised and clarified. Ordinance No. 136, 1998, was unanimously adopted on
First Reading on August 4, 1998.
12. Second Reading of Ordinance No. 137 1998 Amending Chanter 7 of the City Code Relating
to Voter Registration and Election Campaign Reports
Ordinance No. 137, 1998, which was unanimously adopted on First Reading on August 4,
1998, amends Section 7-101 of the City Code which currently provides for qualified persons
to register to vote up to twenty-five (25) days before any municipal election. This provision
is in conflict with State Statutes, which provides for registration twenty-nine (29) days before
an election. This Ordinance also amends sections of the City Code relating to campaign
reports.
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13. Items Relating to Gateway Park
a. Resolution 98-113 Authorizing the Mayor to Enter into an Intergovernmental
Agreement Between the Colorado Department of Transportation and the City of Fort
Collins for the Design and Development of the Access to Gateway Park.
B. First Reading of Ordinance No. 135,1998, Appropriating Unanticipated Revenue and
Prior Year Reserves and Authorizing the Transfer of Appropriations Between Funds
for the Gateway Park Project.
Gateway Park is a 400-acre site located five miles up the Poudre Canyon. The site is owned
by the City of Fort Collins and was previously the City's Water Treatment Plant. The City
Council has provided direction to make this property accessible to the public. Conversion
of this property to a Park site requires the appropriation and transfer of General Fund revenue
to "acquire" the property from the Water Utility, as well as the development of a new, safe
entry way and restoration work at the site. This project is one of the main items in the
Council's Policy Agenda and a cornerstone in the GOCO PoudreBig Thompson Rivers
Legacy Project.
In addition to providing access to a 400 acre park site, this project will also open up
approximately two square miles of additional natural area. This land is owned by a
combination of Federal, State, and local agencies and is contiguous to the 400-acre site.
These lands are currently inaccessible to the public because of the entry road problem. The
overall plan for the Gateway project is to provide a mountain park setting for more active
recreation and a safe access to a currently inaccessible, pristine area.
The project defined by this IGA shall consist of the realignment and access design of State
Highway 14 (Poudre Canyon) at the entrance to the City's old water treatment plant which
will create a safe access to Gateway Park. This project would widen approximately 1,100
feet of State Highway 14 where the current road width vanes from 22 to 33 feet. The new
width would be 44 feet with appropriate increases in width to the shoulders constructed of
aggregate base. This project will provide safe access to the proposed Gateway Park site and
alleviate highway safety issues associated with the site, primarily the 18,000 plus annual river
sport users who travel and park along State Highway 14.
14. First Reading of Ordinance No. 139, 1998, Authorizing the Grant of a Non-exclusive Utility
Easement to Public Service Company of Colorado for the Relocation of an Overhead Feeder
Line over .95 Acres of the Water Treatment Facility.
The City of Fort Collins Utilities is granting a non-exclusive utility easement to Public
Service Companyof Colorado to accommodate the relocation ofthe overhead power line that
runs through the Water Treatment Facility located on LaPorte Avenue.
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An existing Public Service overhead feeder runs through the center of the Water Treatment
Facility property. The City is currently working on the design and construction of an
estimated $50 million Master Plan Improvements Project for new facilities and
improvements to existing facilities. The existing feeder is in conflict with the location of the
planned facilities which need to be adjacent to existing facilities and piping. Discussion with
Public Service and researching existing and potential conflicts in the area resulted in the new
alignment. Acquisition of the easement and relocation of the feeder must precede the
beginning of Master Plan Facilities construction which is scheduled for 2000 and which is
necessary to meet the needs of the citizens of Fort Collins. The construction of the new
feeder is scheduled to begin September 1 and will take 4-6 weeks.
15. First Reading of Ordinance No. 140 1998 Authorizing the City of Fort Collins to Grant a
Non -Exclusive Access Easement With Amelia Walsh Allowing Access Across Meadow
Springs Ranch.
Ms. Amelia Walsh has recently purchased approximately 330 acres of land that is almost
exclusively bordered by City -owned Meadow Springs Ranch. Ms. Walsh is requesting a
permanent easement of 1.57 acres for access to her property across Meadow Springs Ranch.
This easement would allow access from the existing County Road 87 west across the
southeast one -quarter of Section 26, Township 11 N, Range 68 W of Meadow Springs Ranch
to her property.
Ms. Walsh's property does not have adequate access, and Ms. Walsh may be entitled to a
private way of necessity under Colorado law. Consequently, City staff have negotiated the
proposed easement agreement with her, in order to resolve the matter on a mutually agreeable
basis. The terms of this easement would allow Ms. Walsh to construct homes for herself and
her children and would also allow Ms. Walsh to operate her business out of offices at her
home. Ms. Walsh practices clinical neuropsychology while also maintaining a research
foundation. This easement restricts all commercial or residential subdivision or development
beyond these uses Ms. Walsh has specifically identified. Any property uses other than those
specifically noted would require a change to the easement agreement.
16. Items Annronriating Funds for the Design and Construction of the Civic Center Parking
Structure, Temoorary Parking Lots the Office Building and the Transit Center.
a. First Reading of Ordinance No. 141, 1998, Appropriating Unanticipated Revenue in
the Capital Projects Fund and Authorizing the Transfer of Existing Appropriations
for the Design and Construction of the Civic Center Parking Structure in Downtown
Fort Collins.
B. First Reading of Ordinance No. 142, 1998, Appropriating Unanticipated Revenue in
the Capital Projects Fund and Prior Year Reserves in the Sales and Use Tax Fund and
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Authorizing the Transfer of Appropriations Between Funds to be used for the Design
and Construction of Temporary Parking Lots.
C. First Reading of Ordinance No. 143, 1998, Appropriating Unanticipated Revenue in
the Capital Projects Fund and Authorizing the Transfer of Appropriations Between
Funds for the Design and Construction of a City Office Building.
D. First Reading of Ordinance No. 144, 1998, Appropriating Unanticipated Revenue in
the Capital Projects Fund and Prior Year Reserves in the Sales and Use Tax Fund and
Authorizing the Transfer of Appropriations Between Funds for the Preliminary
Design and Construction of a Downtown Transit Center.
The four Ordinances combined into this item appropriate money for five different purposes:
• the Parking Structure Project,
• the Temporary Parking Lot Project,
• the City Office Building,
• the Transit Center Project, and
• the Art In Public Places portion each of the projects above.
The funding sources for each of the projects are itemized in each corresponding Ordinance.
17. First Reading of Ordinance No. 145,1998 Authorizing a Long -tern Lease of Real Property
Adjacent to the Civic Center Parking Structure to Phelps Program Management LLC for
the Development of Commercial Space Along with Related Easements
In order to further mixed -use development objectives of the Civic Center Master Plan, the
Parking Structure project includes commercial uses on the ground floor. The design plans
call for approximately 16,000 square feet of commercial space to be included on the Mason
Street side of the project. The developer of the commercial space is Phelps Program
Management, LLC, an affiliate ofthe Hensel Phelps Construction Company, the design -build
corporation selected to build the Parking Structure under a separate contract with the City.
Staff and representatives of Phelps Program Management have negotiated a long term lease
for the commercial space, which will extend up to approximately forty years after completion
of construction. After the expiration of the lease, the commercial space reverts to the City.
During the lease term, the commercial space will be subject to property tax and will make
rental payments to the City. a Memorandum of Lease, describing the terms of the proposed
lease arrangement, is on file in the office of the City Clerk.
The Lease Agreement includes the grant of access and cross easements over Parking
Structure property, for the benefit of the commercial space.
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18. Resolution 98-119 Terminating the July 3 1997 Intergovernmental Agreement Among the
City of Fort Collins. Latimer County and the Downtown Development Authority Relating
to the Construction and Operation of a New Parking Structure to be Located at the Southeast
Comer of Laporte Avenue and Mason Street and Authorizing a New Intergovernmental
Agreement for the Same Purpose
On June 17, 1997, the Council adopted Resolution 97-91 which authorized an
intergovernmental agreement among the City, Latimer County, and the Downtown
Development Authority. The agreement was signed and became effective on July 3, 1997.
This Agreement set out basic terms and understandings among the parties relating to the
design, uses, financing, and payment for the Civic Center Parking Structure. The terms of
the Agreement have been substantially met, however, the parties have developed a more
detailed and up-to-date agreement which more accurately reflects the schedule, financing,
and construction and financing plans for the project. This Resolution, upon Council
adoption, will terminate the agreement of July 3, 1997, and authorize a new agreement
among the parties which is based on the actual plans, financial transaction, and related
information now available.
19. Resolution 98-120 Approving the Purchase of a 1998 Gillis Transit Bus from Gillig
CoMoration as an Exception to the Competitive Purchasing Process
In January, 1997 the City purchased five (5) Gillig transit buses using a City of Baton Rouge
bid. In April, 1997 an order was placed for an additional four (4) Gillig buses using the same
bid. It was intended that a total of five buses be ordered on the second order, but Colorado
Department of Transportation had not yet approved the use of Section 5311 funding for the
fifth bus.
The Baton Rouge bid is still in place and Gillig has priced this bus in accordance with the
terms of that bid. The City, however, in Code Section 8-161 (e), has established a limit of
24 months on the purchasing of materials under a previously awarded bid. The Baton Rouge
bid was awarded in February, 1996.
Gillig has offered to sell this bus to the City at the same price as those ordered in April, 1997.
The bus is already under construction and reserved for the City if the purchase is approved.
Should the purchase not be approved, a new bus could not be delivered until mid-2000. The
bus already in progress would be delivered before the end of 1998.
20. Resolution 98-121 Authorizing the City Manager to Enter into an Agreement with the State
Board of Agriculture by and Through the Executive Branch of the Associated Students of
Colorado State University for the Purpose of Providing Transfort Service
Since 1975, the City has provided Transfort services to the student body of Colorado State
University by and through the Associated Students of Colorado State University (ASCSU).
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It is proposed that these services be provided at $9.44/student/semester. In addition, students
at CSU have agreed to pay $2.75/student/semester for night service. This will provide the
City with approximately $110,000 in additional annual revenues.
21. Resolution 98-122 Authorizing the Mayor to Enter Into an Intergovernmental Agreement
Between the City of Fort Collins. City of Longmont and Platte River Power Authority
Relating to the Purchase and Operation of a Joint Customer Information System T
In January, the cities of Longmont, Fort Collins, Loveland and Estes Park started exploring
the possibility of having Platte River Power Authority purchase and operate an SCT Banner
Customer Information System on behalf of the four member cities. Loveland and Estes Park
have chosen not to participate at this time. Platte River, Fort Collins and Longmont
evaluated the option for the two cities and found it would reduce their costs of purchasing
and operating a new customer information system.
An intergovernmental agreement between the City, City of Longmont and Platte River Power
Authority is necessary for the Joint Customer Information System project to proceed.
22. Resolution 98-123 Appointing Two Representatives to the Colorado Municipal League
Policy Committee.
The Fort Collins City Council recommends that Mayor Pro-Tem William P. Smith and City
Manager John F. Fischbach be appointed to represent the City of Fort Collins on the
Colorado Municipal League Policy Committee.
Appointments to the CML Policy Committee are made each fall and members serve for a
one-year period. Each member municipality ofthe League is entitled to a representative, and
all cities over 100,000 are entitled to designate two representatives.
The Policy Committee is responsible for reviewing legislative proposals and recommending
to the League Executive Board, positions of support, opposition, no position or amendment
to a wide variety of legislation affecting cities and towns. At each annual conference in June,
the Policy Committee proposes to the membership, revisions to the League's policies which
guide League positions on public policy issues affecting municipalities.
The Committee meets three or four times a year, before and during legislative sessions as
well as in May prior to the annual conference.
23. Resolution 98-124 Making an Appointment to the Utilities and Technology Committee
In 1991, the Council formed a Public Access Committee to enhance the amount and quality
of information available to citizens and to provide reasonable access to that information. In
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January of this year, the name and certain functions of the Committee were changed to better
fit the present and future issues surrounding public access.
The Utilities and Technology Committee is now authorized to review electric, water and
other related utility strategic plans and issues, and to work with City staff and other
concerned groups to formulate, review, and bring forward for Council's consideration
proposed policies relating to issues of information technology. In light of the Committee's
new responsibilities, it has been determined that Mayor Ann Azari, who is a member of the
Platte River Power Authority Board of Directors, would be a logical choice to serve on the
Committee.
This Resolution appoints Mayor Ann Azari to the Utilities and Technology Committee,
replacing Councilmember Chris Kneeland.
24. Routine Easement.
a. Deed of Easement from Pamela S. and Jack C. Wyman, to install underground
electric system, located at 622 South Grant. Monetary consideration: $10.
Items on Second Reading were read by title by City Clerk Wanda Krajicek.
7. Second Reading of Ordinance No. 131, 1998 Appropriating Unanticipated Revenue in the
General Fund to Develop a Local Action Plan for Reducing Greenhouse Gas Emissions
8. Second Reading of Ordinance No. 132, 1998 Appropriating Unanticipated Revenue in the
General Fund for the Use of Camera Radar and Red -Light Cameras to Enforce Traffic
Violations.
9. Second Reading of Ordinance No. 133 1998 Authorizing the Execution of an
Intergovernmental Agreement Between the City of Fort Collins and the State of Colorado
(Department of Transportation) Relating to the Design Construction and Maintenance of
the Harmony Road/I-25 Interchange and Transportation Transfer Center Project
10. Second Reading of Ordinance No. 134 1998 Amendingthe City Code to Revise Water and
Wastewater Plant Investment Fees.
11. Second Reading ofOrdinance No. 136,1998,Adol2ting the 1998-1999 Classified Employees
Pay and Classification Plan.
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12. Second Reading of Ordinance No 137 1998 Amending Chanter 7 of the City Code Relating
to Voter Registration and Election Campaign Reports
Items on First Reading were read by title by City Clerk Wanda Krajicek.
13. First Reading of Ordinance No. 135, 1998 Appropriating Unanticipated Revenue and Prior
Year Reserves and Authorizing the Transfer of Appropriations Between Funds for the
Gateway Park Project.
14. First Reading of Ordinance No. 139, 1998 Authorizing the Grant of a Non-exclusive Utility
Easement to Public Service Company of Colorado for the Relocation of an Overhead Feeder
Line over .95 Acres of the Water Treatment Facility.
15. First Reading of Ordinance No. 140, 1998, Authorizingthe he City of Fort Collins to Grant a
Non -Exclusive_ Access Easement With Amelia Walsh Allowing Access Across Meadow
Springs Ranch.
16. Items A.V12rol2riating Funds for the Desipn and Construction of the Civic Center Parkin
Structure. Tem orary Parking Lots. the Office Building and the Transit Center.
a. First Reading of Ordinance No. 141, 1998, Appropriating Unanticipated Revenue in
the Capital Projects Fund and Authorizing the Transfer of Existing Appropriations
for the Design and Construction of the Civic Center Parking Structure in Downtown
Fort Collins.
B. First Reading of Ordinance No. 142, 1998, Appropriating Unanticipated Revenue in
the Capital Projects Fund and Prior Year Reserves in the Sales and Use Tax Fund and
Authorizing the Transfer of Appropriations Between Funds to be used for the Design
and Construction of Temporary Parking Lots.
C. First Reading of Ordinance No. 143, 1998, Appropriating Unanticipated Revenue in
the Capital Projects Fund and Authorizing the Transfer of Appropriations Between
Funds for the Design and Construction of a City Office Building.
D. First Reading of Ordinance No. 144, 1998, Appropriating Unanticipated Revenue in
the Capital Projects Fund and Prior Year Reserves in the Sales and Use Tax Fund and
Authorizing the Transfer of Appropriations Between Funds for the Preliminary
Design and Construction of a Downtown Transit Center.
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17. First Reading of Ordinance No 145 1998 Authorizing Long-term Lease of Real Property
Adiacent to the Civic Center Parking Structure to Phelps Program Management LLC for
the Development of Commercial Space Along with Related Easements
Councilmember Byrne made a motion, seconded by Councilmember Bertschy, to adopt and approve
all items not withdrawn from the Consent Calendar. The vote on the motion was as follows: Yeas:
Councilmembers Azari, Bertschy, Byrne, Kneeland and Smith. Nays: None.
THE MOTION CARRIED.
Consent Calendar Follow -Up
Councilmember Smith highlighted item #13 Items Relating to Gateway Park.
Councilmember Bertschy spoke concerning item #20 Resolution 98-121 Authorizing the City
Manager to Enter into an Agreement with the State Board of Agriculture by and Through the
Executive Branch of the Associated Students of Colorado State University for the Purpose of
Providing Transfort Service.
Staff Reports
City Manager Fischbach gave an update on Transfort service enhancements that began on August
21.
Councilmember Reports
Councilmember Kneeland reported on the Poudre School District Liaison Committee discussions
concerning school siting issues, fencing solutions, and the Fossil Creek site for a new high school.
Councilmember Byrne reported that the Poudre School District Liaison Committee also discussed
the Planning and Zoning advisory review of siting issues.
Councilmember Smith reported on the Metropolitan Planning Organization discussion of a draft
proposal for the 20-20 Regional Transportation Plan and other projects for joint study, including
evaluation of I-25 interchanges.
"Secretary's Note: Councilmember Wanner arrived at 6:20 p.m.)
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Resolution 98-125
Establishing Affordable Housin¢ Priorities Adopted
The following is staff s memorandum on this item.
"Financial Impact
The Affordable Housing Priorities contained within this Resolution will be used to guide the City's
policy, program and projectfunding decisions. It will affect the use ofthe Affordable Housing Fund
within the General Fund Reserves, CDBG and HOME programs, and Private Activity Bond
allocations. No specific impact can be calculated based on this Resolution. The financial impact
of subsequent policy and program changes will be analyzed as they are proposed.
Executive Summary
1. Rental Housing. This community needs to be producing new rental units affordable to families
earning below 80% of Area Median Income ( AMP ). Highest priority will be given to rental
units affordable to families earning at or below 50% ofAMI.
I. For Sale Housing. This community needs to continue to helpfirst time homebuyers earning less
than 80% ofAMI to get into affordable homeownership, but place higher priority on potential
homebuyers earning below 60% ofAMI.
77. Senior and Special Needs Housing. This community should try to f nd new sources of rental
subsidy for families earning below 30% ofAMI, particularly for senior citizens and others with
special needs such as mental or physical disabilities.
III. Housing Production. This community needs to maintain an adequate supply ofaffordable land
for housing low and moderate income persons and families. It needs to be more proactive in
identifying and securing sites for future affordable housing development. The City also needs
to examine any regulatory barriers to affordable housing and consider reforming them, and it
needs to be supportive of proposed developments in their quest for identifying development
subsidies.
IV Housing Preservation. This community needs to preserve its existing affordable housing stock.
City -assisted affordable housing should carry a minimum 20 year commitment to affordability.
Priority should be given to units that will be kept affordable for periods in excess of 20 years,
with the highest priority given to units committing to permanent affordability.
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BACKGROUND:
The 1997-99 Staff Work Plan calls for an Affordable Housing Needs Study to be completed in the
summer of 1998. The essential purpose of the study is to identify the community's affordable
housing need, including what kinds of housing are needed, what income groups need more
affordable housing, and what the most critical needs are. This study will be the basis for developing
specific and measurable, short term eve year) objectives for the City's Affordable Housing efforts.
The Draft Priority Affordable Housing Needs and Strategies Study was presented to City Council
at its Study Session on June 9, 1998. It is a "work -in -progress. " This phase of the Study included
an investigation ofwhat kind of affordable housing exists in this community, what kinds are needed,
and what the most urgent need is.
This Study will eventually include an assessment of existing financial resources that support
affordable housing, both public and private as well as a comprehensive analysis of existing City
roles, responsibilities and programs, and provide recommendations forfuture roles, responsibilities,
and programs and/or changes to existing ones. The goal of the Study is for the City to be more
strategic in getting housing assistance to the people who need it most.
The basis of the City's housing needs and supply recommendations is existing, readily available
information, such as the Multi -Family Housing Vacancy and Rental Survey by Gordon E. Von Stroh
of the University of Denver (under the sponsorship of the Colorado Division of Housing) and the
Multiple Listing Service. Fort Collins has also used other existing studies that have been prepared
by cityplanners, countyplanners, Colorado State University and others, dating back to June 1995.
Staff research also included holding group discussions and/or individual interviews with
stakeholders such as the Affordable Housing Board, the Fort Collins Housing Authority, Funding
Partners, the Affordable Housing Coalition, the Attainable Seniors Housing Committee, etc. The
purpose of these interviews is to get their impressions ofhousing needs in the community, to round
out the information from existing studies, and build a consensus around these recommendations.
Staff believes there is sufficient information from research and interviews to form a reasonable
recommendation in regard to the community's priority affordable housing needs. These
recommendations were reviewed in detail by the Affordable Housing Board at its regular meeting
on July 9th, at a subcommittee meeting held on July 17th and at another regular meeting on August
6th. The Affordable Housing Board's recommendations have been incorporated into the attached
Resolution.
Fort Collins' Priority Affordable Housing Needs are as follows:
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Rental Housing
Fort Collins has a very serious shortage of rental units affordable to families earning below 50%
ofAMI. a very small number of these units exist — only 5% of the City's multifamily housing stock.
Yet approximately 45% ofrentersfall within that income category. According to HUD, Fort Collins
has 6,300 renter households (39% of all renters) that earn less than 50% AMI and pay over 30%
oftheir incomefor housing. Therefore this community's highestpriority needs to beproducing more
of these units.
Average rents in Fort Collins' existing multifamily housing stock tend to be fairly close to levels
considered affordable to families earning 60% ofAMI. However, due to the rising cost of land and
construction in the area, new units cannot be built for this population without development
subsidies. In addition, some of the existing units that are affordable at 60% AMI are not income
restricted, so higher income households compete for these units. Therefore this community needs
to support the construction ofadditional units affordable to and restricted to families at this income
level. This community also needs to maintain a supply of unsubsidized, unrestricted multifamily
units that are priced for people earning approximately 60 to 80% of AMI, in order to reduce
pressure on affordable units.
For Sale Housing
According to HUD, there are 3,900 renters (24% of all renters) in Fort Collins that earn between
50 and 80% ofAMI. Many of these families should readily qualify for monthly payments on starter
homes. If this product were available and these families had the necessary down payment, many
would likely purchase homes instead of continuing to rent. The rate of homeownership in Fort
Collins was just 53% in 1990, low compared to the national rate of 64% at that time. This is
partially explained by the cty's student population. Regardless, the National Homeownership
Strategy has as its goal a national rate of over 67% by the year 2000. There are many benefits to
homeownership: it gives families a sense of security and stability, it helps to stabilize
neighborhoods, it helps to preserve the housing stock, and it builds wealth. In addition, the more
low and moderate income renters move on to homeownership, the more existing affordable rental
stock will become available. Therefore this community needs to continue to help first time
homebuyers earning less than 80% ofAMI to get into affordable homeownership. Even higher
priority should be placed on assisting potential homebuyers who earn less than 60% ofAMI.
Senior and Special Needs Housing
Fort Collins is also lacking enough Section 8 type rental subsidies forpeople earning less than 30%
AMI, especially for senior citizens and others with special needs. Many people with disabilities, be
they physical or mental, are not able to work. At $494/month, their SSlpayment cannot cover food,
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Clothing, transportation, etc. as well as rent. But in order to survive and in order to get better, they
must have stable, safe, accessible housing. The only way to achieve that is with rental subsidies.
Therefore this community needs to work on finding new sources of this subsidy, and on preserving
what it has.
Housing Production
New construction ofaffordable housing is constrained by a number of commonly understood factors.
Available land in Fort Collins is expensive and scarce. Sites that are zoned appropriately and are
close to needed infrastructure and services are particularly hard to find. Construction costs are
rising, due in part to changes to the Uniform Building Code. The City's Land Use Code, Impact
Fees, engineering standards and infrastructure requirements are often cited by developers as too
expensive to allow affordable construction. Infrastructure development in special districts can also
be very expensive. Finally, federal financial resources are limited and declining, and the
competition for funding is fierce. Therefore this community needs to maintain an adequate supply
of affordable land for housing low and moderate income persons and families. It needs to be more
proactive in identifying andsecuringsitesforfuture affordable housing development. TheCityalso
needs to examine any regulatory barriers to affordable housing and consider reforming them, and
it needs to be supportive of proposed developments in their quest for identifying development
subsidies.
Housing Preservation
There are currently about 1,590 units of affordable housing in subsidized developments in Fort
Collins, including 154 units ofpublic housing owned by the Fort Collins Housing Authority. All of
these projects were funded by agencies that require the units be income -restricted for some length
oftime. As either development or rental subsidy contracts expire on these projects, they may be lost
to the affordable housing stock. Complexes owned by the Housing Authority will remain affordable
into perpetuity. Those owned by not -for -profits will, in the vast majority of cases, also remain
affordable. Those that are owned by for profits are more likely to be converted to market rate
housing when their subsidized mortgages are paid off. The owners of Vine Street Apartments (24
units) and Northwood Apartments (182 units) recently paid offtheir HUD 236 mortgages early, so
they now have no affordability or income restrictions. Fifty-seven (57) of their tenants will receive
Section 8 Rental Assistance, but the rest will pay market rents. Coachlight Apartments' contract
with HUD expires in just 4 years. DMA Plaza, Oakbrook I and II all have Project Based Section
8 Rental Assistance, which is now renewed on an annual basis. There is a distinct possibility that
this program may not always have enough funds to continue to renew these contracts. If that
happens, many very low income elderly may lose their housing —these three projects have 258
units with rental assistance.
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August 18, 1998
This community needs to preserve its existing affordable housing stock. New City -assisted
affordable housing should carry a minimum 20 year commitment to affordability. Priority should
be given to units that will be kept affordable for periods in excess of 20 years, with the highest
priority given to units committing to permanent affordability. "
Ann Watts, City Planner, presented background information and summarized the affordable housing
priorities. She stated that a letter has been received from the Housing Authority suggesting that the
acquisition of existing units and the preservation of their affordability be incorporated as a high
priority need. In addition, the Affordable Housing Board did not intend that the priorities be placed
in rank order. The Resolution has been revised to reflect that all of the priorities are given equal
weight and to incorporate a priority for the acquisition of existing units and the preservation of their
affordability.
Bob Browning, Affordable Housing Board Chair, stated that the Board is comfortable with the
priorities set out in the revised Resolution.
Councilmember Byrne asked how much money is available for this effort and noted that there are
limited dollars available to address the five broad priorities. Watts spoke concerning the estimated
dollars available in the reserve fund and through the CDBG and HOME programs.
Councilmember Smith asked about the ranking of the priorities. Watts stated that the revised
Resolution does not assign a priority ranking.
Councilmember Wanner asked ifHOME funds are available only for home ownership. Watts stated
that HOME funds can also be used for rental subsidies.
Councilmember Byrne asked about how differences in need would be recognized i.e., whether
distinctions would be made between families and groups of single individuals in the same housing
unit. Watts stated that distinctions are not drawn at this point.
Councilmember Bertschy asked for examples of how priorities would be applied.
Councilmember Smith made a motion, seconded by Councilmember Wanner, to adopt Resolution
98-125 as revised.
Councilmember Smith thanked staff and the Affordable Housing Board for their efforts on this issue
and noted that establishing priorities is a critical step in moving forward on affordable housing. He
asked that these priorities be communicated to other boards and commissions that work on related
issues and to housing providers in the community.
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August 18, 1998
Councilmember Byrne supported the Resolution, but expressed a concern about trying to do too
much with limited funds. He stated that rental housing should be the highest priority, and affordable
housing dollars should primarily go to working families and senior citizens.
Councilmember Bertschy spoke concerning the affordable housing needs study which provides the
basis of the affordable housing priorities. He stated that the Resolution is comprehensive and
itemizes critical needs.
Councilmember Kneeland supported the Resolution as an important component of the economic
health of the community.
Councilmember Wanner stated this provides a way of judging a variety of future projects.
Mayor Azari spoke in support of the Resolution and commented on the role of municipal
government in promoting affordable housing.
The vote on Councilmember Smith's motion was as follows: Yeas: Councilmembers Azari,
Bertschy, Byrne, Kneeland, Smith and Wanner. Nays: None.
THE MOTION CARRIED.
Resolution 98-126
Assigning a Councilmember as Liaison
to the Citizen Review Board Adopted
The following is staff's memorandum on this item.
"Executive Summary
This Resolution appoints a Councilmember to act as the liaison to the Citizen Review Board, which
was created by Council adoption of Ordinance No. 76, 1998 on August 4, 1998. Council will need
to select a Councilmember prior to adoption of the Resolution.
Following selection of the liaison, Council should discuss the makeup of the interview team so that
interviews can begin as soon as possiblefollowing the recruitmentperiod which ends September 4. "
Wanda Krajicek, City Clerk, gave a presentation concerning the Resolution, which will assign a
Councilmember to act as liaison to the newly created Citizen Review Board.
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August 18, 1998
Councilmember Kneeland made a motion, seconded by Councilmember Smith, to adopt Resolution
98-126 with the insertion of Chuck Warner's name as the appointed liaison.
Councilmember Byrne expressed a concern about concealed weapons and asked for future Council
discussion on the matter.
The vote on Councilmember Kneeland's motion was as follows: Yeas: Councilmembers Azari,
Bertschy, Byrne, Kneeland, Smith and Wanner. Nays: None.
THE MOTION CARRIED.
Presentation Concerning Proposed Settlement Between
the City and Heritage Cablevision of Delaware, Inc.,
d/b/a TCI of Fort Collins, Relating to the Upgrade of TCI's
Cable TV System as Required Under the Franchise Agreement. Held
The following is staff s recommendation on this item.
"Executive Summary
City staff and TCI have reached a proposed settlement agreement that would enhance service for
local cable TV customers. Resettlement is a result of ongoing negotiations between TCI and the
City of Fort Collins regarding a disputed provision of the Franchise Agreement between TCI and
the City of Fort Collins. The City's Cable TV Franchise Agreement with Heritage Cablevision of
Delaware, Inc., doing business as TCI offort Collins ("TCI ), required a cable system upgrade to
be completed by November 6, 1997. Since November, 1997, the City of Fort Collins and TCI have
been in a disagreement over interpretations ofcertainprovisions ofthe Franchise Agreement. When
ongoing discussions between City staff and TCI failed to result in resolution of the disagreement,
a hearing to consider revocation of TCI's franchise was scheduled before Council for Tuesday,
August 18, 1998. However, since that time City staff and TCI have negotiated a resolution which
both parties believe is fair and most importantly, which will provide greater and better services for
the citizens of Fort Collins.
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August 18, 1998
BACKGROUND:
The City's cable TVFranchise Agreement ("theAgreement'), originally entered into with the World
Company in 1993, and subsequently transferred in 1995 to TCI required a cable system upgrade to
be completed by November 6, 1997. Section XI of the Agreement provides that the upgraded system
be a "550 MHZ capable system, spaced to 750MHZparameters and incorporatingfibertrunking. "
However, Section XI also provides that TCI may use alternative technologies to achieve the system
upgrade described above so long as such technologies"achieve comparable (or improved) customer
benefits or services as would be provided by the [550 MHZ system] " and provided that such
upgraded cable system using different technologies is "state-of-the-art; as dependable and reliable
as the contemplated 550 MHZ system ... ; and ...asflexible as the contemplated 550 MHZsystem ... in
allowing for interactive services and technologies. " This language regarding alternative
technologies was included in Section XI of the Agreement based on the concern that cable TV
technology was rapidly changing and therefore it was not possible in 1993 to accurately predict
which technology would be state-of-the-art in 1997.
TCI chose digital compression as its alternative technologyfor upgrading the local cable TVsystem.
Digital compression allows TCI to compress its signal and thereby create several channels for each
one that currently exists. Since the spring of 1997, when City staff was first apprised of TCI's
intention to deploy digital compression, City staff and its telecommunications and engineering
consultants have conducted an extensive analysis in order to determine whether digital compression
meets the standards for the cable system upgrade as required in Section XI of the Agreement. In
December of 1997, City staff and its consultants reached two conclusions: (1) that digital
compression, by itself, does not satisfy the requirement of the Agreement that as an alternative
technology it provides comparable customer benefits or services that would be provided over the
contemplated 550 MHZ system; and (2) that digital compression is not state-of-the-art, as reliable
and dependable as a 550 MHZ system, and as flexible as a 550 MHZ system in allowing for
interactive services and technologies.
Therefore, on December 8, 1997, the City sent written notice to TCI that it was in substantial
breach of Section M of the Franchise Agreement as it relates to the cable TV system upgrade. The
Agreement provides that, after receipt of such notice, TCI has 30 days to provide the City with
written proof that corrective action has been taken or is being actively and expeditiously pursued
concerning the substantial breach. TCI responded to the City's notice of substantial breach by
asserting that, contrary to the City's position, the addition ofdigital compression technology to the
cable system satisfied the requirements of Section XI for a system upgrade and, therefore, that TCI
would not commit to corrective actions. Since receipt of TCI's written response in January, 1998,
City staff has engaged Min discussions with the intent of resolving this issue. These discussions
have resulted in a proposed resolution of the issue.
To resolve this dispute, TCI and City staff propose the following settlement:
• TCI will pay the City $180, 000.
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August 18, 1998
• TCI will provide to the City $6,800 of equipment needed to implement the operation of the
City's second cable channel, which channel will be used for the City's internal operations.
• TCI will upgrade its cable TV system to a 550 MHZ system, spaced to 750 MHZ, with a
fiber optic backbone, which system shall have an effective operating capacity of 600 MHZ.
• TCI will complete the agreed upgrade of its entire cable TV system by December 31, 1999.
• If TCI does not complete the upgrade of its entire cable system by December 31, 1999, the
City will be entitled to receive for each day that the upgrade is not timely completed $750.00
of damages that can be withdrawn from the letter of credit that TCI currently has deposited
with the City.
• TCI also agrees that if the upgrade is not completed by December 31, 1999, TCI will, at the
City's direction, provide a rebate on the monthly bills of those TCI customers who do not
have the upgraded system available to them by that time. Such rebated amounts shall be
credited to TCI against the $750.00 per day of damages that it will owe to the City, but in
no event will such amounts rebated to TCI customers exceed the $750.00 per day of
damages.
• TCI agrees to provide the City with 12 MHZ of bandwidth for its use after the upgrade is
completed, which 12 MHZ shall be in addition to the 12 MHZ TCI has recently given to the
City for its second cable TV channel.
• TCI will make available to the City Ms mobile production van under the same terms and
conditions as TCI now provides it to Larimer County.
• TCI will provide to the City free installation of up to five (5) outlets in the City's new office
buildings (the Agreement currently requires only one free outlet per building).
• TCI will design and install at its cost a fiber optic connection between City Hall West and
TCI's head end as part of Ms upgrade of its cable system, with such connection to occur,
to the extent practicable, during the first phase of construction of Ms upgrade.
• TCI will provide to the City copies of its strand and trench maps relating to the upgrade in
digital format, with such maps to beprovided by TCI to the City as soon as they are received
by TCI from its design engineers.
• TCI is currently reviewing and recalculating the manner in which it assesses late charges
to customers whose bills are not paid on time. This recalculation will result in lower late
charges. When this process is completed (probably sometime in 1999), TCI has agreed to
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August 18, 1998
revise its late charges in Fort Collins at the same time it makes those revisions in any other
community in Colorado.
TCI has agreed that the cost of this settlement will not be included in determining its rate
base in the future and, therefore, will not be passed on to Fort Collins subscribers in the
form of rate increases.
The City and TCI have agreed to begin meetings to consider ways to work cooperatively in
order to provide expanded local news programming to the Fort Collins community.
In order to finalize this settlement, it will be necessary for the Council to adopt an ordinance that
approves amendments to the Franchise Agreement in order to incorporate into it several ofthe terms
and conditions of the proposed settlement. However, before the Council can conduct the public
hearing at which to consider amendments to the Franchise Agreement, the City Charter requires
that notice of the hearing must be published in a local newspaper once a week for three successive
weeks immediately prior to the date of the hearing. Therefore, the Council will not be asked to hold
its public hearing and to consider adoption of an ordinance amending the Franchise Agreement
until its September 15, 1998 regular meeting.
In order to give City staff and TCI direction as to whether the proposed settlement appears to be
acceptable, at least preliminarily, to the City Council and that staffshouldproceed with publishing
notice and preparing an ordinance tofznalize the required amendments to the Franchise Agreement,
TCI and City staff request that the Council consider adopting a motion giving its preliminary
approval to the proposed settlement and directing staff to proceed with the steps necessary to
finalize the settlement. "
City Manager Fischbach stated that staff has been working with TCI to avoid a revocation hearing.,
and this item presents a fair and equitable resolution of the dispute.
John Duval, Deputy City Attorney, spoke concerning the main points of the proposed settlement
agreement with TCI and the process to be followed. He outlined the settlement points detailed in
the agenda item summary, and noted a change regarding TCI's commitment to upgrade the system
to an operating capacity of 550 MHZ rather than 600 MHZ. If Council gives preliminary approval
to the settlement, staff will prepare an ordinance amending the existing franchise agreement for
Council consideration on September 15.
Tom Maher, 1831 Westview Road,Telecommunications Board, spoke in support of the settlement
and presented the perspective of the Board.
Councilmember Smith asked about the effective operating capacity. Duval stated that the settlement
now guarantees an effective operating capacity of 550 MHZ
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August 18, 1998
Councilmember Smith asked whether a specific date could be agreed upon for reviewing and
recalculating late charges. Duval stated that staff will work with TCI regarding this date.
Councilmembcr Smith asked about the point that the cost of the settlement will not be included in
determining rates and how that will be ascertained. Duval stated that the City has a right to look at
and audit TCI's books, records and rate structure to make those kinds of determinations.
Councilmember Smith asked if there will be any changes in duration or period of review under the
new franchise agreement and if there will be a fixed schedule for periodic meetings with TCI. Duval
stated that no terms of the agreement are changing except those outlined.
Councilmember Bertschy asked what percentage of upgrade is now completed. Duval stated that
TCI is in the design phase and has not begun construction.
Kathy Stuart, TCI General Manager for Northern Colorado, stated that construction is projected to
begin in September and completion is targeted for December 31, 1999.
Councilmember Bertschy asked if the cost of the settlement includes the cost of the upgrade. Duval
stated the cost of the upgrade is not part of the settlement cost.
Ms. Stuart spoke concerning the rate increase review process and noted that the upgrade is being
done to give customers more choice. The basic rate will not increase with the addition of services,
and customers will have a choice concerning whether to add and pay for new services.
Councilmember Bertschy asked if Internet access will be one of the new choices. Ms. Stuart stated
that Internet access will be a new service offered.
Councilmember Bertschy asked how the settlement amount of $180,000 was calculated and asked
if any consideration was given to customer rebates. Duval stated that the amount was determined
through negotiation and that customer rebates were discussed.
Councilmember Byrne asked about how the fiber backbone will be structured with the backbone the
City's utility is currently installing. Ms. Stuart stated that these are currently two different projects
with open discussion between the City and TCI.
Councilmember Byrne asked about whether the TCI fiberbackbone installations will be underground
and supported maximizing joint utilization of facilities. City Manager Fischbach stated that where
City utilities are undergrounded, TCI must underground as well.
Mayor Azari asked about the difference between this settlement and the previously approved
franchise with TCI. Duval stated that the proposed settlement agreement eliminates any argument
about alternative technologies to be installed, the deadlines for installation, and penalties that would
be assessed.
August 18, 1998
Councihnember Kneeland made a motion, seconded by Councilmember Smith, to give preliminary
approval to the proposed settlement agreement, to finalize the direction to move forward with a
settlement agreement, and to bring a franchise agreement amendment for Council consideration on
September 15.
Councilmember Bertschy more information to address the rate increase to customers that will result
from completion of the infrastructure improvements, since these improvements should have been
completed in 1997.
Councilmember Smith asked for a clearer picture concerning the technology, channel or rate changes
that will impact the average customer.
Councilmember Byrne expressed concerns about the public benefit and asked about the schedule for
availability of new services after the infrastructure is completed.
Mayor Azari commented concerning the settlement item concerning the availability of the mobile
production van.
Councilmember Kneeland spoke in support of the motion and expressed disappointment that it has
been necessary to spend so much time and effort to get TCI to live up to its part of the contract.
Councilmember Wanner supported the motion because ofthe efforts of staffto negotiate a settlement
but commented that he would have preferred a direct payment to the customers who did not receive
the agreed upon services.
Councilmember Bertschy commented concerning the loss of public trust since the changeover from
Columbine Cablevision to TCI.
Mayor Azari stated that the City has been the loser in the changeover to TCI and commented on the
lack of trust in the agreement with TCI. She stated that she will vote in favor of this motion on the
recommendation of staff.
Councilmember Byrne asked about how the $180,000 will be used. City Manager Fischbach stated
that most of the money will be used to install a studio in City Hall West.
Councilmember Bertschy thanked staff for their hard work on behalf of the best interests of the City
in the negotiations.
The vote on Councilmember Kneeland's motion was as follows: Yeas: Councilmembers Azari,
Bertschy, Byrne, Kneeland, Smith and Wanner. Nays: None.
THE MOTION CARRIED.
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August 18, 1998
Second Reading of Ordinance No. 137, 1998, Amending
Chapter 7 of the City Code Relating to Voter
Registration and Election Campaign Reports.
The following is staff's recommendation on this item.
"Ordinance No. 137, 1998, which was unanimously adopted on First Reading on August 4, 1998,
amends Section 7-101 of the City Code which currently provides for qualified persons to register
to vote up to twenty-five (25) days before any municipal election. This provision is in conflict with
State Statutes, which provides for registration twenty-nine (29) days before an election. This
Ordinance also amends sections of the City Code relating to campaign reports. "
Councilmember Bertschy proposed an amendment to the Ordinance to add that the campaign report
filed 30 days after the election be published no less than 7 days after the receipt of the report.
Councilmember Bertschy made a motion, seconded by Councilmember Smith, to adopt Ordinance
No. 137, 1998 on Second Reading as amended by the addition of a paragraph to read: "That the
campaign report filed with the City Clerk thirty (30) days after the election pursuant to Section 1-45-
108(2)(a), C.R.S., shall also be published by the City Clerk in a newspaper of general circulation in
the City, which publication shall occur no less than seven (7) days after the City Clerk's receipt of
the report."
Councilmember Bertschy stated that this would add a safeguard to the election reporting process to
ensure full disclosure of all campaign contributions and expenditures.
The vote on Councilmember Bertschy's motion was as follows: Yeas: Councilmembers Azari,
Bertschy, Byrne, Kneeland, Smith and Wanner. Nays: None.
THE MOTION CARRIED.
The meeting adjourned at 7:40 p.m.
ATTEST:
Adjournment
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