HomeMy WebLinkAboutMINUTES-10/15/1996-RegularOctober 15,1996
COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
Council -Manager Form of Government
Regular Meeting - 6:30 p.m.
A regular meeting of the Council of the City of Fort Collins was held on Tuesday, October 15, 1996,
at 6:30 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered
by the following Councilmembers: Apt, Azari, Janett, Kneeland, McCluskey, Smith and Wanner.
Staff Members Present: Fischbach, Roy, Jensen.
Agenda Review
City Manager John Fischbach stated there were no changes to the Agenda as published.
Councilmember Apt requested Item #10, First Reading of Ordinance No. 130, 1996, Amending
Section 20-1 of the Code of the City Regarding Air Pollution Nuisances, be withdrawn from the
Consent Agenda.
***CONSENT CALENDAR***
This Calendar is intended to allow the City Council to spend its time and energy on the important
items on a lengthy agenda. Staff recommends approval of the Consent Calendar. Anyone may
request an item on this calendar to be "pulled" off the Consent Calendar and considered separately.
Agenda items pulled from the Consent Calendar by the Public will be considered separately under
Agenda Item #14, Public Pulled Consent Items.
CONSENT CALENDAR
7. Consideration and approval of the regular meeting minutes of April 16, May 7, May 21, June
4. and June 18, and the adjourned meeting minutes of May 14, and June 11, 1996.
8. Second Reading of Ordinance No 128, 1996, Appropriating Prior Year Reserves and
Unanticipated Revenue in Various Funds and Authorizing the Transfer of Agpronriated
Amounts Between Funds
This Ordinance, which was unanimously adopted on First Reading on October 1, 1996,
appropriates prior year reserves and unanticipated revenue in various City funds, and
authorizes the transfer of appropriated amounts between funds.
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October 15, 1996
9. Second Reading of Ordinance No 129, 1996, Authorizing the Appropriation of $85,000 of
Unanticipated Revenue in the Home Programs Fund for the Larimer County Homebuyer
Assistance Program.
The Colorado Division of Housing has allocated $85,000 to the City of Fort Collins for
initiation of a Latimer County Homebuyer Assistance Program. In response to requests for
homebuyer assistance from Pioneer households wishing to seek homeownership
opportunities in Larimer County, the City, in conjunction with Larimer County, requested
funding assistance from the Colorado Division of Housing to facilitate a County -wide
homebuyer assistance program. Due to the urgency in getting such a program up and
running for Pioneer households, the City of Fort Collins was deemed the most appropriate
entity to expedite initiation of such a program. The City will only be involved in the
administration of this program for the first cycle of funding and will receive $5,000 from the
$85,000 allocated for administrative costs. The $5,000 will cover the administrative costs.
The Loveland Housing Authority has agreed to assume permanent administration of this
program for future funding cycles. Ordinance No. 129, 1996 was unanimously adopted on
First Reading on October 1, 1996, and appropriates unanticipated revenue for the 1996
Latimer County Homebuyer Assistance Program.
10. First Reading of Ordinance No. 130. 1996, Amending Section 20-1 of the Code of the City
Regarding Air Pollution Nuisances.
At the July 23 study session, Council approved staff's recommendation not to proceed with
an ordinance requiring change out of high polluting wood stove and fireplaces at point of
sale, but rather, to continue the wood smoke reduction program (ZILCH, complaint line,
information) and to enhance the program to increase turnover of wood stoves and to build
upon changing attitudes pertaining to woodburning. Council also directed staff to proceed
with review of City ordinances relating to wood smoke pollution and to make revisions
where necessary.
After review of the air pollution nuisances prohibited and solid fuel -burning appliances
ordinances, staff found the ordinances contain the necessary language and authority to
address wood smoke pollution within the community and is recommending only one
revision --recision of the cottonwood burning ban.
11. First Reading of Ordinance No. 131, 1996, Amending Section 26-280 of the Code of the City
of Fort Collins Relating to Rates for Category I Customers of the City's Wastewater Utility,
Rate increases for wastewater service to Category I customers were inadvertently omitted in
the 1994 and 1995 ordinances that increased the rates for the City's various categories of
wastewater customers. One of these categories, Category I, "Special without agreement",
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October 15, 1996
was created in July, 1994 as a result of the termination of the 1974 agreement for wastewater
services between the City and Colorado State University.
While the 1995 and 1996 water rate increases are not reflected in the Code for Category I
customers, Colorado State University, currently the City's only Category I customer, paid the
increased rates for 1995 and 1996. Colorado State University has been notified of the City's
oversight in not previously amending its Code to reflect these rate increases and notified that
this Ordinance is being presented to Council to remedy that omission.
12. Resolution 96-123 Making Appointments to the Commission on the Status of Women and
the Retirement Committee.
Vacancies currently exist on the Commission on the Status of Women due to the resignations
of Lynne Sterkel, Christina Hart, and Martha Sanders. Applications were solicited and
Councilmembers Azari and Wanner conducted interviews. The interview team is
recommending Megan Murphy, Micki McMillan, and Danielle Johnson be appointed to
serve on the Commission on Status of Women with terms to begin immediately and terms
to expire June 30, 1997 for Megan Murphy and June 30, 1999 for Micki McMillan and
Danielle Johnson.
Vacancies currently exist on the Retirement Committee due to the resignations of Jacci
Peterson and Gary Ellis. Applications were solicited and Councilmembers Azari and
Wanner conducted interviews. Councilmembers Azari and Wanner are recommending Dave
Agee and Kevin Westhuis be appointed to fill the vacancies with terms to begin immediately
and terms to expire on June 30, 1998 and June 30, 1999 respectively.
13. Routine Deeds and Easements.
A. Power line easement from Kip L. Johnson, 511 Garfield, needed to underground
existing overhead electric services. Monetary consideration: $10.
B. Power line easement from Home Federal Savings and Loan Association and Savings
Building, lot 5, Blk 81 (Rear of 417 West Mountain), Condo, needed to install switch
cabinet and transformer bank to underground existing overhead electric system.
Monetary consideration: $1080.
C. Power line easement from Sharon Wittstock, 818 Mathews, needed to install new
underground streetlight service. Monetary consideration: $10.
D. Power line easement from Bishop and Diocese of the State of Colorado, 300
Whedbee, needed to underground existing overhead electric services. Monetary
consideration: $10.
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October 15, 1996
Items on Second Reading were read by title by Deputy City Clerk Aimee Jensen.
8. Second Reading of Ordinance No. 128, 1996, Appropriating Prior Year Reserves and
Unanticipated Revenue in Various Funds and Authorizing the Transfer of Appropriated
Amounts Between Funds.
9. Second Reading of Ordinance No 129. 1996, Authorizing the Appropriation of $95,000 of
Unanticipated Revenue in the Home Programs Fund for the Latimer County Homebuyer
Assistance Program.
Items on First Reading were read by title by Deputy City Clerk Aimee Jensen.
10. First Reading of Ordinance No 130, 1996. Amending Section 20-1 of the Code of the City
Regarding Air Pollution Nuisances,
11. First Reading of Ordinance No 131. 1996, Amending Section 26-280 of the Code of the City
of Fort Collins Relating to Rues for Category I Customers of the City's Wastewater Utility.
17. First Reading of Ordinance No. 132, 1996, Approving and Authorizing a Rebate of
Development Fees Associated with the Construction of a New 180,000 Square Foot Office
Facility for Hewlett-Packard.
Councilmember McCluskey made a motion, seconded by Councilmember Smith, to adopt and
approve all items not removed from the Consent Agenda. Yeas: Councilmembers Apt, Azari, Janett.
Kneeland, McCluskey, Smith and Wanner. Nays: None.
THE MOTION CARRIED.
Councilmember Reports
Councilmember Smith reported the Public Access Committee recently developed a web page
reporting on various City activities. He reported issues regarding changes needing to occur before
the year 2000 and of the tremendous amount of work to be done.
Councilmember Kneeland stated the Organizational Development Committee met and discussed the
need to address global issues. She stated the Poudre R-1 Liaison Committee discussed community
issues regarding substance abuse of youth.
Councilmember McCluskey reported the Finance Committee met and discussed Hewlett-Packard's
Development Fee Rebates and how Hewlett-Packard plans to use the fees. He reported on concerns
expressed by auditors and discussed the staff response addressing the concerns. He reported Council
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October 15, 1996
would soon be receiving information on the Building Community Choices program, and noted
ordinances regarding purchasing policies were discussed.
Councilmember Apt reported the Growth Management Committee met with Larimer County
officials and discussed the Fossil Creek Reservoir Plan and the progress that has been made to
preserve the natural area and wildlife habitat surrounding the Reservoir. He stated although the land
is out of the Urban Growth Area it would comply with City standards and would be compatible with
City Plan. He reported the Principles and Policies document would be coming to Council soon and
noted additional "word smithing" would need to be done. He invited citizens to participate in the
process.
Councilmember Janett spoke of a public meeting she and Councilmember Smith held with residents
to discuss the Timberline Road Bridge Project.
Mayor Azari stated she attended the Leadership Group meeting at the American Conference of
Mayors and spoke of issues discussed regarding community responsibility for quality education and
quality of life issues. She spoke of a recent experience she had with Dial -a -Ride and commended
the drivers for their patience and wonderful customer service.
Councilmember Janett urged citizens to be more responsible about what is washed or dumped down
storm drains and how pollutants affect rivers and creeks. She requested information regarding fines,
clean-up costs, and public education relating to drainage issues.
Mayor Azari spoke of an outreach held at the Youth Activities Center. She encouraged the public
to visit the Center and spoke of the programs offered.
Ordinance No.132,1996,
Approving and Authorizing a Rebate of Development Fees
Associated with the Construction of a New 180,000 Square Foot
Office Facility for Hewlett-Packard. Adopted on First Reading.
The following is staff's memorandum on this item.
"Financial Impact
If Council approves the rebate of development fees associated with a new office facility,for Hewlett-
Packard (the fees will total approximately to $232,700), the actual funding for the rebate will be
totally recouped from the initial building permit use tax payment of $265,300. The adopted
development fee rebate program specifies that the ratio of tax revenues anticipated over a twenty-
year period must be at least twice the direct City costs for infrastructure construction and
maintenance over the same twenty-year period. City staff estimates that annual tax revenues
attributable to this project will be approximately $97,000 per year, with an estimated fbst-year
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October 15, 1996
collection of approximately $281,300 (use tax on the building permit will be approximately
$265,300, and use tax on initial equipmentpurchases approximately $16,000).
Twice the estimated cost to the City over a twenty-year period for infrastructure construction and
maintenance is approximately $40,000. Staff anticipates the paybackfrom tax revenues to occur
in less than one-year from construction and occupancy.
Executive Summary
In August 1994, City Council adopted Ordinance No. 123, 1994 which amended Article VII Chapter
5 of the Code so as to permit the rebate of fees for the purpose of economic development. Prior to
the adoption of Ordinance No. 123, 1994, City Council had authorized a development fee waiver
program for consideration on a case -by -case basis. The rebate modification was suggested by staff
in order to finrther protect the City by linking the payment of an incentive to the perfornnance of the
company requesting the incentive.
The last incentive offered to a basic industrial company was an approximate $440,000 development
fee rebate extended to Symbios Logic in September 1996 in conjunction with the construction of its
new office fCicility.
BACKGROUND:
Proposed Use of Rebate:
Hewlett-Packard has proposed a unique and exciting new approach to the City's Rebate Program.
It is H-P's intent to reinvest any rebates frotn this process into the Poudre School District in the
fonn of technology grants. This could add over $200,000 in technology assets to our local school
district. Staff sees this offer as a most desirable public -private partnership and we commend
Hewlett-Packard for its innovative approach.
The Hewlett-Packard Project:
Hewlett-Packard currently maintains four buildings at its manufacturing complex located on the
northeast corner of Harmony Road and County Road 9. The land at the site was acquired in 1977
and the first building was completed in 1979. The company utilizes 20,000 square feet in rented
warehousing. Additionally, H-P will lease 18,000 square feet of office space for its newly created
subsidiary, CoCreate. The proposed new 180,000 square foot building will be used exclusively for
office space and will add to the existing building area which is now about 1.1 million square feet.
It is estimated that the building will cost approximately $17.7 million. Employees will be moved
from temporary modular offices on the site to the new building. Hewlett-Packard expects to spend
approximately $500,000 in new equipment and furnishings for the new facility. No new employees
will be added as a result of this project.
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October 15, 1996
Anticipated Revenues:
Property Taxes. Hewlett-Packard existing facility is assessed at over $33 million and generates
appro.cimately $322,350 in property taxes to the City each year. H-P is the City's second largest
property tax payer. The new facility which will be completed in 1997 will add approximately
$52, 000 in annual real and personal property tax revenues.
Sales and Use Taxes. In 1995, Hewlett-Packard made over $136 million in taxable purchases. H-
P is the City's largest use tax payer. The new office building is not expected to generate additional
an nual sales or use tax revenue from furniture and equipment purchases, but is expected to generate
about $45,000 in sales taxesfi-om electric and natural gas use each year.
Combined total taxes of over $4.4 million ivere, paid to the City of Fort Collins by Hewlett-Packard
in 1995. The ratio of 3,638 jobs to this tax revenue equals $1,215 per job filled by H-P's direct (aid
temporary employees.
With the new construction, the 1996 tax payment is estimated to be about $281,300 ($265,300 use
tax .from building permit and $16,000 from sales and use tax on equipment purchases). Over a
tiventy-year period, total tares derived front real, personal property and sales and use tares are
estimated to be approximately $2.5 million from this project.
Estimated Direct City Costs:
Hewlett Packard's project will be located at the corner of Hannorry Road and County Road 9. No
new infrastructure coats are expected to be incurred by the City, as a result of this project.
Additionally, no new development projects are planned.for that area which would require developer
upgrades of existing infrastructure.
Using can estimate of street maintenance costs provided by the City's Engineering Department, the
annual projected costs would be approximately $725. Over a tiventy-year period (assuming a 3%
inflation factor) the street maintenance costs attributable to this project are estimated at
approximately $19,500. The adopted Rebate Program requires that revenues exceed costs by at
least a 2: 1 margin. In this case, if it is assumed that revenues over a 20-year period will be
approximately $2.5 million, discounting the revenues at 7% over the 20-year time period results in
revenues of $1.2 million in toddy's dollars. With costs doubled over the hventy-year time period
(about $39,000) and discounted at the same 7%, the revenue to cost ratio is 64:1.
Using these assumptions, the rebate, if approved, will be offset within one-year following
construction and occupancy.
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October 15, 1996
Company profile:
In reviewing the City criteria and information provided by Hewlett-Packard, it is clear that the
company exceeds the program criteria, and is an attractive local employer. Hewlett-Packard is an
international company and has been manufacturing in Fort Collins since 1979. The Fort Collins
H-P plant is nnainly geared toward hardware and software research, design and development,
especially in tlne computer ivorkstation markets. The Fort Collins plant does not produce products
for general resale. Rather, the products are part of hardware and software computer packages
tailored to suit the business needs of'the final customers.
Two production areas are located on the Fort Collins site. One area is the integrated circuit (IC)
facility. The IC unit designs, manufactures, tests and packages microcircuits prior to shipment to
other H-P divisions worldwide for assembly into H-P projects. The second operation produces
printed circuit (PC) boards used in production of H-P computer products.
Hewlett-Packard currently employs about 3,100 people in Fort Collins (99% are full time
employees). Another 530 workers, or 15%, of the entire workforce are employed on a temporar x
basis in a variety of positions. It is H-P's plhilosoplry to attempt to convert temporm�), employees to
fidl-time positions whenever it makes sound business sense. H-P also provides indirect employment
through its approximately 250 contract workers, who supply services at the site. While these
services are not part of the core business competencies of H-P, the sites needs the essential services
these workers contribute (i.e. ccnfeteria, janitorial, security, etc.) to maintain operations. In total,
nearly 3,900 people from the local community are employed either directly or indirectly due to H-
P's presence in Fort Collins. Attachment A provides an average total compensation matrix for
Hewlett Packard employees. Median compensation information will be available prior to the
October 15 City Council meeting.
Following are some of Hewlett-Packard's (Fort Collins) employment highlights:
Women make up 30% of H-P's direct Fort Collins labor force. Of those, 35% are in
management positions or are employed in non-traditional occupations.
Minorities make up 11 % of H-P's local employment base. 7.5% are in management and
44% are in non-traditional occupations.
Hewlett-Packard has a dedicated five person diversity department to help introduce diversity
in business process where systemic discrimination may exist. AdditionallY, H-P was
inStrUlnental in providing finding for a newly forined coalition of African -Americans in Fort
Collins.
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October 15, 1996
H-P hired 30 Seed students in 1995. Seed hires are college students hired for summer
employment in order to provide a rich work experience and increase the potential for
permanent hire after graduation.
Hewlett-Packard's in-house regional educational department provides training to nearly
6,000 employees in northern Colorado. The company provided 400 classes to 5,800
employees at a cost of $2.2 million. Additionally, $1.1 million was spent for employee
continuing education in private and public colleges and universities.
Environmental Profile: The proposed project is an office facility and will not be involved in the
manufacturing process.
Recycling. The Fort Collins H-P site has the highest "landfill diversion rate " of all Colorado H-P
sites. The site disposed of 58.7% of solid waste through recycled means.
Alternative Transportation. H-P encourages employees to exercise social responsibility by using
a means of transportation to arrive at work other than diving alone. The company averages 40
people in daily car pools and between April (aid August, averaged 125 bike riders daily. H-P was
one of the initial members of the Southeast Employers' Partnership that sponsored a pilot bits route
on the Cin7's southeast side. H-P provided 72% of theJ ending (nearly $86,000).
Staggered Shifts. The Fort Collins site is a 7 clay -a -week, 24 hour -a -day operation for
manufacturing and production. There are currently 577 shift employees. Of those, 343 work
alternative shifts. Tliis helps to mitigate traffic and air duality problems related witlh a large work
force.
Teleconmuting. H-P supports nearly 700 active accounts and integrated s.ystenhs digital network
lines which provides employees the optima oj'svorking from home.
Summary:
In conclusion, Hewlett-Packard exemplifies the commitment to excellence and community that is
SO important in Fort Collins. While incentives should never be a prime focus, the idea of helping
to make at strong, local firm more competitive and more profitable in Fort Collins nukes sense.
H-P's generous offer to provide technology grants to the Poudre School District with the proceeds
Of the rebate is just another demonstration of the company's willingness to "give back" to the
community. Staff believes that it again makes sense to encourage local expansions through the use
of modest, performance -based programs such as the Development Fee Rebate Program.
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October 15, 1996
An evaluation of both the program criteria and financial impacts supports the staff
recommendation to approve a development fee rebate for Hewlett-Packard for an amount not to
exceed $232,700."
Councilmember Kneeland withdrew from discussion on this item due to a perceived conflict of
interest.
City Manager John Fischbach gave a brief presentation on this item and reported if the ordinance
were adopted, the rebated funds would be contributed to POUdre R-1 for technology improvements.
Assistant City Manager Frank Bruno spoke of the amount of fees to be rebated and stated the project
meets the City's Economic Development Policy.
Will Arduino, representing Hewlett-Packard, spoke of Hewlett-Packard's corporate policy regarding
citizenship, stating community and education are its first priority. He urged Council to adopt the
Ordinance.
Councilmember Smith made a motion, seconded by Councilmember Janett, to adopt Ordinance No.
132, 1996 on First Reading.
Roland Mower, President of Fort Collins Economic Development Corporation, urged adoption of
the Ordinance and spoke of contributions Hewlett-Packard has made in the community.
Bruce Lockhart, 2500 E. Harmony Road, opposed the motion.
Councilmember Apt supported the motion stating this was an outstanding gesture on behalf of
Hewlett-Packard.
Councilmember McCluskey commended Hewlett-Packard for its proposal and urged other
businesses to consider following their lead.
Councilmember Janett spoke of the City's policy regarding economic development and spoke in
support of the motion.
Mayor Azari concurred with previous comments made by Councilmember McCluskey and suggested
changing the name of the policy to "Community Reinvestment Policy for Economic Development".
The vote on Councilmember Smith's motion was as follows: Yeas: Councilmembers Azari, Apt,
Janett, McCluskey, Smith and Wanner. Nays: None.
THE MOTION CARRIED.
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October 15, 1996
ITEMS RELATING TO THE 1997 BUDGET
BUDGET CONSENT ITEMS
Items Numbers 18 through 26 are being presented together in the Consent Calendar format. These
items have been reviewed and discussed at Budget Study Sessions and are being presented in this
manner to expedite their adoption. As with the regular Consent Calendar, any item may be
withdrawn for discussion by any member of the Council, staff or public and will be considered after
the balance of the Budget Consent is adopted.
18. First Reading of Ordinance No 133 1996 Amending Chapter 26 Article VI Division 4 of
the City Code Setting Rates and Charges for Electric Services
This Ordinance revises the City's electric rates to:
Provide cost of service based rates to serve customer classes. Recommended rate
adjustments are as follows:
Residential Energy Rate (R) - down 1.51%
Residential Demand Rate (RD) - up 8.52%
Small Commercial (GS) - down 0.88%
Large Commercial (GS50) - no change
Industrial (GS750) - down 0.69%
Floodlighting - up 9.09%
Traffic Signals - up 0.87%
• Provide cost based charges to individual large commercial and industrial customers
within their rate classes.
• Provide customers the option to purchase electric energy generated by wind.
• Define electric energy as a commodity pass through in the event of mandated retail
wheeling.
• Define service provisions for standby power, interruptible power and a 12 month
contract period for all rate schedules.
19. First Reading of Ordinance No 134. 1996, Amending Section 26-514(3)(b) of the Code of
the City of Fort Collins Relating to the Determination of Stormwater Utility
The Dry Creek drainage basin is located in the north Fort Collins area and is predominately
located along North College Avenue, north of the Poudre River. The monies generated from
the fees will be used to construct improvements identified in the adopted Dry Creek Basin
Master Plan.
This Ordinance proposes increasing the monthly capital fee for Dry Creek Basin by 20%, or
$0.60 per month for the typical single-family residence. The current monthly rate of $2.98
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October 15, 1996
has been in effect since 1995. Initially, 15% and 5% fee increases were proposed for 1996
and 1997, respectively. However, direction on the financing of the Dry Creek improvements
with Larimer County had not been developed when the 1996 budget was submitted, and the
decision was made to delay a fee increase until 1997. The Dry Creek diversion channel will
be funded through a Larimer County local improvement district. The local improvements
will be funded by the Dry Creek Basin storm drainage fees.
20. Items Relating to the 1997 Downtown Develonment Authority Budget
This Ordinance represents the annual appropriations and approves the Downtown
Development Authority (DDA) Operating Budget for 1997 of $370,079. Total 1997
appropriations are $124,240 more than the 1996 budget, an increase of 50.5%.
Appropriations for capital projects are up $1 17,569 and operating cost are up $6,671. It also
sets the DDA mill levy at 4.05 mills.
In addition, this item represents the annual appropriations and adopts the Downtown
Development Authority (DDA) Debt Service budget for 1997 in the amount of $1,437,860.
A. First Reading of Ordinance No. 135, 1996 of the Council of the City of Fort Collins
Being the Annual Appropriation Ordinance Relating to the Annual Appropriations
and Approving the Budget of the Downtown Development Authority for the Fiscal
Year Beginning January I, 1997, and Ending December 31, 1997, and Fixing the
Mill Levy for the Downtown Development Authority.
The Downtown Development Authority adopted the proposed 1997 DDA budget totaling
$370,079 and determined the mill levy necessary to provide for payment of all properly
authorized expenditures incurred by the District, at its regular meeting of October 3, 1996.
B. First Reading of Ordinance No. 136, 1996, Appropriating Revenue in the Downtown
Development Authority Debt Service Fund for Payment of Debt Service for the Year
1997.
This Ordinance appropriates funds for the payment of Downtown Development Authority
debt service for 1997.
21. Resolution 96-124 Establishing_ and Revising Fees to be Charged to City Park Nine.
Collindale, and SouthRidge Golf Courses.
The proposed 1997 golf fees and charges raise all green fees $1 over existing rates, except
junior and twilight rates which remain at existing rates. The 10-play punch cards are also
increased proportionally. No further increases are projected in daily green fees until 1999,
unless assumptions change before then. Annual pass rates, golf car rental fees, and all other
October 15, 1996
fees and charges remain at existing levels for 1997, although $5 was added to restricted -no
per play fee annual passes to create a differential in the pricing structure. Also, SouthRidge
per play fees increase $.50 because of the S 1 increase in SouthRidge Green Fees and because
the SouthRidge per play fee is half of the non -prime time green fee rate. Staff plans to
increase golf car rental fees by roughly $1 over existing fees and to increase annual pass base
rates by approximately 7 percent over existing rates in 1998, with no further increases in
projected golf car rental fees or annual pass base rates until 2000, unless budget assumptions
change before then. Staff plans to raise these fees and green fees in alternating years.
22. Resolution 96-125 Adopting a Rate Schedule for the Use of Lincoln Center Facilities
Proposed rates for 1997 remain comparable with other facilities in the area. 1997 rates
remain the same as 1996, and 1997 revenue projections are based on these rates. Rates are
based on remaining comparable with other facilities throughout the community and staff
believes there is a need to hold the line on rates for 1997. There are two minor changes due
to labor market rates and these are: an increase for backstage technical labor - non-profit
from $7.00 to $7.50 and commercial from $8.75 to $9.50, and an increase for security labor
from $9.50 to $ I0.00 per hour.
23. Resolution 96-126 Authorizing the Leese of and Adopting a Rate Schedule for Park and
Recreation Facilities.
Section 23-1 14 of the Code requires that City Council authorize the leasing of real property
owned in the name of the City. This item presents for Council review and approval fees for
rental of City -owned recreation and park facilities. Resolution 96-126 authorizes such
leasing of City -owned recreation and park facilities, and also adopts rental fees for these
facilities for 1997.
24. Resolution 96-127 Adopting a Revenue Allocation Formula to Define the City of Fort
Collins' Contribution to the Poudre Fire Authority Budget for the Year 1997 for Operations
and Maintenance.
In December 1981, the Council entered into an agreement with the Poudre Valley Fire
Protection District, creating the Poudre Fire Authority.
According to the Intergovernmental Agreement between the City of Fort Collins and the
Poudre Valley Fire Protection District, the City will contribute funding for maintenance and
operating costs to the Authority based on a "Revenue Allocation Formula" ("RAF"). The
RAF is to be set annually based upon a percentage of sales and use tax revenues (excluding
dedicated sales & use tax revenues that must be spent on specific projects) and a portion of
the operating mill levy of the City's property tax. Passage of Amendment No.I (on
November 3, 1992), which added a revenue and spending limitation to the state constitution,
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October 15, 1996
resulted in a review and revision of the Revenue Allocation Formula. In its original form,
the RAF allowed the PFA to realize the full extent of growth in sales & use tax and property
tax collections. Article X, Section 20 of the State Constitution now limits the rate of growth
to a combination of the Denver -Boulder Consumer Price Index and additions to the local
property tax base primarily due to construction and annexation. As a result, the RAF has
been restructured to fit within the constraints of Article X, Section 20.
25. Resolution 96-128 Making Adjustments to Transfort and Dial -A -Ride Fares.
In 1995 the single adult fare on Transfort was increased by five cents. No increase was made
in the charge for passes. Staff recommends that an inflationary increase of an additional five
cents be made to the single adult fare in 1997, as well as the single fare charged to seniors
and persons with disabilities. Staff also recommends an increase of twenty cents in the 10-
ride ticket, an increase of fifty cents in the commuter pass, and an increase of $5.00 in the
employers annual pass. This action authorizes the City Manager to adjust these fares. The
new fares would be effective January 2, 1997.
A Dial -A -Ride fare was instituted in January 1995. The fare structure adopted in Resolution
94-192 provided for a fare increase of twice the full Transfort fare in 1997. Staff
recommends that this increase be made. This action authorizes the City Manager to adjust
the Dial -A -Ride fare. The new fare would be effective January 2, 1997.
26. Resolution 96-129 Setting the 1997 Downtown Parking Fees, Fines. and Permits
The recently adopted Parking Plan recommends increases in fines, permits and fees. The
specific increases are:
Fine for the same day collection of overtime parking increased from $1 to $3;
2. Surface parking monthly lot permits increase $12 to $18 in the Oak/Remington,
Mason, LaPorte, and Block 31 lots; in the Jefferson St. and Chestnut Lots, permits
increase from $12 to $15; and parking garage permits increase from $18 to $24; and
3. Parking Meters increase from .25 cents per 2 hour period to A cents/hour for the
first two hours then .25 cents/hour thereafter.
This will generate an additional $93,800 which will cover the operational and major
maintenance expenses for the Parking Division plus the cost for additional enforcement in
the downtown core area.
Items on First Reading were read by title by Deputy City Clerk Aimee Jensen.
October 15, 1996
18. First Reading of Ordinance No. 133, 1996, Amending Chapter 26, Article VI, Division 4 of
the City Code Setting Rates and Charges for Electric Services
19. First Reading of Ordinance No. 134, 1996 Amending Section 26-514(3)(b) of the Code of
the City of Fort Collins Relating to the Determination of Stormwater Utility Fees.
20. Items Relating to the 1997 Downtown Development Authority Budget
A. First Reading of Ordinance No. 135, 1996 of the Council of the City of Fort Collins
Being the Annual Appropriation Ordinance Relating to the Annual Appropriations
and Approving the Budget of the Downtown Development Authority for the Fiscal
Year Beginning January I, 1997, and Ending December 31, 1997, and Fixing the
Mill Levy for the Downtown Development Authority.
B. First Reading of Ordinance No. 136, 1996, Appropriating Revenue in the Downtown
Development Authority Debt Service Fund for Payment of Debt Service for the Year
1997.
28. First Reading of Ordinance No. 137, 1996, Being the Annual Appropriation Ordinance
Relating to the Annual Appropriations and Adopting the Budget for the Fiscal Year
Beginning January 1. 1997, and Ending December 31, 1997, and Fixing the Mill Levy for
Said Fiscal Year.
COnncillnember Smith made a motion, seconded by Councilmember Kneeland, to adopt and approve
all items not removed from the Budget Consent Agenda. Yeas: Councilmembers Azari, Apt,
Kneeland, Janett, MCCluskey, Smith and Wanner. Nays: None.
THE MOTION CARRIED.
Ordinance No. 137, 1996,
Being the Annual Appropriation Ordinance Relating
to the Annual Appropriations and Adopting the Budget for the
Fiscal Year Beginning January 1, 1997, and Ending December 31, 1997,
and Fixing the Mill Levy for Said Fiscal Year. Adopted on First Reading.
The following is staff's memorandum on this item.
"Executive Smntnary
This Ordinance adopts the 1997 Budget in the amount of $302,330,651 for the City of Fort Collins
and $2,351,756 for the Fire Fighters' Pension Fund. The Net City Budget which excludes internal
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October 15, 1996
transfers betiveen fiords and Fire Fighters' Pension is $216,741, 1 / 1. The Net City Budget is
allocated to:
Operations.......................................$162,079,418
Debt Service........................................$5,744,270
Capital...........................................$48,917,423
This Ordinance also sets the City mill levy at 9.797 mills, unchanged from 1996. The levy
distribution is as follows:
General Fund ........................................... 8.717
Parks Debt Service ....................................... 1.080
The General Fund will contribute 67.09% of the operating property tax generated by the 8.717 mills
to Poudre Fire Authority in accordance with the adopted Revenue Allocation Fonnula. In addition,
the property tar generated by one mill will be contributed by the General Fund to PFA for capital
use.
This Ordinance also authorizes an increase in payment in lieu of taxes (PILOT) from the current 5%
to 6% for wastewater and water.
BACKGROUND:
Budget Process
The development of the 1997 Budget began in March, 1996. The City Manager's Recommended
Budget was presented for City Council review and consideration the last of August. Three budget
study sessions and two public hearings were conducted in September and early October. From the
study sessions and public hearings the 1997Annual City Budget represented by?his Ordinance is
presented to you for consideration and adoption. Final adoption is scheduled for November 5.
Suggested Changes
At the final Budget Study Session on October 8, a ncanber of items were mentioned by Council for
possible inclusion in the 1997 budget. Following are those items and the recommendation for their
resolution in 1997.
LIBRARY SERVICE .............................................. $26,000
Library Services for the City's main library and the anticipated Harmon.v library will be
comparable. Resources in the 1997 recommended budget for both branches will provide an
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October 15, 1996
adequate level of service. At this time, no additional resources are included in the recommended
1997 appropriation for library services. Library operations will be reviewed for the 1998-1999
biennial budget to deterntine the service level of community library services and related resource
needs.
LITERACY PROGRAM ............................................ $22,000
This is all important program and several options will be explored forfctnding.
1. Application to CDBG forfimding.
2. Partnership with the Poudre School District as well as Front Range Community
College and CSU.
3. Contntunity Opportunity Investment.
FUNDING PARTNERS FOR HOUSING SOLUTIONS ................. $500,000
There is $150,000 currently committed for this program. It aaldition, $100,000 from the 1996
Community Opportunity Investment account balance will be encurnbered for 1997 expenditure.
After encumbering $100,000 for the Funding Partners for Housing Solutions program,
approximately $12,000 in ongoing and $7,000 in one-time jands will remain available from the 1996
appropriation.
In 1996, Council appropriated $314,877for a Comnttntity Opportunity lnvestnent fund to be used
for projects to benefit the community as a whole. Potential projects were identified by Council that
included: Discovery Center, Writer Treatment Plant #1, Jefferson Street truck traffic, traffic calming,
Fossil Creek Land -Use Plan, and other projects that might be of benefit to the Cit . All potential
projects, with the exception of the Jefferson Street truck traffic and water treatment plant, have been
fronded. The Jefferson Street truck issue is part of the Building Community Choices capital
improvement plan and the water treatment plant is included as part of the GOCO Legacy Grant
Program.
LOVELAND/FORT COLLINS BUS SERVICE ......................... $55,000
If partners come forward with adequate resource commitments, this will be.funded front the 1997
Community Opportunity Investment account in mid-1997.
EVENING BUS SERVICE FOR FIXED ROUTES ..................... $504,000
DIAL -A -RIDE ............................................. $150,000
In 1997, Council will be asked to cortsider a Transportation Maintenance Fee (TMF) which world
provide funding for transportation needs.
October 15, 1996
ENVIRONMENTAL COMPLIANCE OFFICER ...................... $106,000
If this position is recommended as a result of the Environmental Compliance Report, the finding will
be considered for mid -year.
POLICE - 2 DETECTIVES ........................................ $214,510
Staff will review the option of using revenue front photo radar to fund a portion of traffic
enforcement costs, thereby releasing finding for other Police issues.
Actual Changes to the 1997 City Manager's Recommended Budget
The following changes have been made to the 1997 Recommended Budget as a result of more
current data received from Service Areas.
GENERAL FUND .............................................. $73,827
$73 827 - School Resource Officer Program. Police Services
The amount to be received from the PR-1 School District in 1997for the School Resource Officer
Program (SRO) has been identified. One-time hands are added to Police Services and
intergovernmental revenue is increased by $73,827for the School Resource Officer Program (SRO).
The'SRO program began in 1995, establishing it community policing center in each of the three high
schools. The general goals for this partnership with PR-1 School District are: to provide a safe
learning environment and help reduce school violence; to provide school/law enforcement
collaboration; and to improve perceptions and relations between students, staff, and law
enforcement officials. PR-1 School District's 1997 schechded contribution toward the finding of
this progrann is $73,827, with one-half to be paid on January 1, 1997, and one-half on July /, 1997.
Police Services 1997 expenditure will be approximately $120,380.
TRANSPORTATION SERVICES FUND ............................. $224,800
$100 000 - Traffic Cahnine. Traffic Engineering Progranh
Appropriations have been increased by $100,000 in the Transportation Services Fund, Traffic
Engineering program for traffic calming. The City has created a Neighborhood Traffic Impact
Mitigation Program (NTIMP) to address citizen concerns relating to excessive speeding and cut -
through traffic on local streets. The NTIMP is a cooperative effort between Police, Traffic
Engineering, Planning and the Neighborhood Resource Center to coon traffic in residential
neighborhoods. Council passed Ordinance No. 90, 1996 on June 18, 1996, authorizing additional
funding totaling $100,000 from the 1996 Community Opportunity dollars in the General Fund. The
resources for this purpose were included in the 1997 Recommended Budget as presented to Council.
$93,800 - Parking Plan Implementation
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October 15, 1996
At the September 17, 1996 Council meeting the Parking Plan was adopted and, as part of the
reconhntenclations for downtown, increases were proposed for fines, pennits and fees. The increase
in fines, permits and fees is projected to generate tin additional $93,800 which will cover the
operation and major maintenance expenses for the Parking Division plus the costs for additional
enforcement in the downtown core area. The increased enforcement in the downtown core area is
scheduled to begin in January 1997. Stnff will continue to meet with downtown merchants to
implement the other parking strategies relating to the parking plan. Conversion of the Parking
Garage to a fully controlled access facility and the acquisition and installation of new automated
parking control devices will occur in the stanmer of 1997. Costs jor the implementation of tliese two
items have not yet been developed, therefore, staff will be submitting for Council's approval, an
additional appropriation in 1997.
$31,000 - Sidewalk Snow Removal Snow & Ice Control Pros,ratn
An additional $31,000 has been added to the Transportation Services Fund, Snow & Ice Control
program. Following a review of the 1997 Streets Deparnnent budget, staff has identified the need
for all additional $31,000 to be used for the lease purchase of a sidewalk snow removal machine.
Funding for this need is available given the sources projected as part of the 1997 Streets budget.
IVA TER FUND .............................................. $20,479
$20,479 - Meter Reading Expenses
Meter Reading expenses jor 1997 will be $20,479 more than originally proposed The Meter
Readers are moving from 700 Wood Street to 330 S. College, and this is a share of the lease
expenses for- this move.
WASTEWATER FUND ............................................ $12,901
$12,901 - Meter Reading Expenses
Meter Reading expenses for 1997 will be $12,901 more than originally proposed. The Meter
Readers are moving from 700 Wood Street to 330 S. College, and this is a share of the lease
expenses for this move"
City Manager John Fischbach gave the staff presentation on this item and thanked staff for its efforts.
He spoke of community input received and outlined the process. He emphasized the major areas of
concern noting they were: street maintenance, police service issues, neighborhood resources, public
information and technology. He responded to previous Council questions and noted additional
funding requested for Library Services was not recommended because full funding is currently being
reviewed for the 1998-1999 Budget. He suggested development of a partnership with CDBG,
Poudre R-1, Front Range Community College, and CSU to offer educational opportunities for the
Adult Literacy Program. He spoke of funds that have been encumbered for Funding Partners for
Housing Solutions, suggesting allocating an additional $100,000 from the 1996 Community
Opportunity Investment Fund. He spoke of the need to adopt it Transportation Maintenance Fee in
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October 15, 1996
1997 that would be structured to replace funds currently being used for Transportation. He reported
there have been no thatching funds offered from other agencies to assist with rerouting truck traffic,
and reported funds for the project could be allocated from the Community Opportunity Investment
Fund.
Councilmember Smith made a motion, seconded by Councilmember McCloskey, to adopt Ordinance
No. 137, 1996 on First Reading.
Councilmember Janett expressed concerns regarding federal cut backs for Transportation and of the
need to review funding for Transfort.
City Manager John Fischbach responded to Council questions. He reported issues regarding timing
of east and west traffic lights are currently being reviewed, and stated Council would be consulted
regarding any reallocation of funds.
Donn Hopkins, 1809 Rangeview Drive, member of the Transportation Board, urged Council to
support funding for transportation and spoke of the need for mass transportation options.
Bruce Lockhart, 2500 E. Harmony Road, questioned increased fees for water and wastewater and
stated PILOT fees should be eliminated.
John Meleski, 2619 Featherstar Way, expressed concerns regarding increased staffing for Building
Inspection.
Tara Jensen, 710 City Park Avenue representing CSU's Mass Transit Committee, spoke of the
importance of offering evening transit service and spoke of how the lack of mass transit has affected
her.
City Manager John Fischbach clarified the definition of the PILOT program. He stated water and
wastewater fees have been increased from 5% to 6% recognizing what the private sector would pay
if fees were paid to a private sector company. He clarified electric fees would not increase.
Water Utility Director Mike Smith clarified the increase would not affect rate payers, stating the
increase (I%) would be paid to the General Fund.
Director of Community Planning and Environmental Services Greg Byrne spoke of the increased
number of building permits being issued and of the need for additional staff.
Building Inspector Felix Lee stated due to the volume of work staff is stretched very tight and stated
although he believed inspections were being performed in a competent manner, adoption of the
Energy Code added an additional inspection, stretching resources even further.
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October 15, 1996
Councilmember Apt stated the addition of the Energy Code was strongly endorsed by Boards and
Commissions, and spoke of future savings it would create. He spoke of Council's support for 'transit
services and reported staff is looking at options to cover cutbacks.
City Manager John Fischbach responded to questions regarding liquor enforcement, stating staff is
looking at combining liquor and tobacco enforcement.
Councilmember Kneeland stated the historical information provided in the budget document was
excellent and supported the motion. She commented on funding needs for library services and
expressed disappointment that full funding for the Harmony Branch Library could not be provided
at this time.
Councilmember Janett stated the City is currently trying to catch-up with service needs and
commented on the need for additional staffing for liquor enforcement. She requested staff prepare
a Resolution of support, before Second Reading of the budget, earmarking an additional $250,000
in the 1997 Budget for Funding Partners for Affordable Housing.
Councilmember Wanner questioned Front Range Community College's commitment to the Adult
Literacy Program and concurred with Councilmember Janett's comments regarding funding for
Funding Partners for Affordable Housing.
Councilmember McCloskey thanked staff for its presentation and for listening to Council's direction.
He spoke in support of full service funding for library services in the future.
Mayor Azari spoke of her appreciation for staff's hard work on the Budget, expressed the need to
look at all transportation services and requested additional information on Police Services' needs
The vote on Councilmember Smith's motion was as follows: Yeas: Councilmembers Azari, Apt,
Kneeland, Janett, McCloskey, Smith and Wanner. Nays: None.
THE MOTION CARRIED.
Ordinance No. 130, 1996,
Amending Section 20-1 of the Code of the City
Regarding Air Pollution Nuisances. Adopted on First Reading.
"Executive .StunmarX
At the July 23 studv session, Council approved staffs recommendation not to proceed with an
ordinance requiring change out of high polluting wood stove and fireplaces at point of sale, but
rather, to continue the wood smoke redaction program (ZILCH, complaint line, information) and
to enhance the program to increase turnover of wood stoves and to build upon changing attitudes
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October 15, 1996
pertchitthng to wooalbntnning. Council also directed staff to proceed with review of City ordinances
relating to wood smoke pollution and to make revisions where necessary.
After review of the air pollution nuisances prohibited and solid fuel -burning appliances ordinances,
staff found the ordinances contain the necessary language and authority to address wood smoke
pollution within the community and is recommending only one revision --recision of the cottonwood
burning ban.
Since 1988, it has been unlawful to burn cottonwood for "heating or recreation in residences..."
"because of its offensive odor. " At the time of the ban (1988), the number and use of woodburning
units was much more extensive in the community. The recommendation to rescind the cottonwood
bunting ban is the result of a recent study pertaining to wood smoke pollution in Fort Collins. The
study involved input from a Wood Smoke Study Committee, the Air Quality Advisory Board, and
public outreach. The reasons for rescinding the cottonwood burning ban are as follows:
The City Forester and the Colorado State Forest Set -vice do not feel cottonwood burning
poses a significant air quality nuisance different from many other firewoods when it is cured
properly, kept dry, and boned in a small hot fire.
2. Since 1990, there has been a .steadv decrease in woodburning fireplaces and an increase in
gas fireplaces from 2,000 in 1990 to 11,000 units in 1996. Freestanding wood stoves ( the
most -used woodburning appliances) decreased during that time period by 1,000 whits. The
non-use offireplaces and wood stoves units has increased front 25% non-use in 1990 to 42%
non-use in 1996. Also, since 1986, state and federal laws mandate that wood stoves meet
strict emission standards, so that newer mots burst more cleanly than their predecessors.
In 1990, 17% of Fort Collins residents said wood smoke in their neighborhoods was too
much. In 1996, only 4% of Fort Collins residents were bothered by wood smoke in their
neighborhoods.
4. Complaints received through the wood smoke complaint line rarely (less than one percent)
focus on the type of wood being burned, but rather the manner in which the wood is burned
or the fact that it is uncured or wet. Addressing the problem of improper woodburning
practices gets to the heart of wood smoke pollution, which is not cottonwood, but old units
and improper operation.
5. Cottonwood is"plentiful in and about Fort Collins and is probably being burned by many
homeowners and often without the knowledge they have purchased cottonwood. It is also
difficult to identify cottonwood from other woods once it is cut and cured.
October 15, 1996
bz stnnmary, cottonwood is not the cause of ivood smoke pollution in Fort Collins, improper
maintenance of appliances and improper woodburning techniques are. The City has a program in
place to address these issues when they arise. "
Councilmember Kneeland made a motion, seconded by Councilmember Smith, to adopt Ordinance
No. 130, 1996 on First Reading.
Councilmember Apt spoke of Council's commitment to preserve air quality and suggested this
Ordinance be tabled.
Environmental Education Specialist Linda Devocelle spoke of the cottonwood burning ban, stating
many people are not aware of the ban.
Councilmember Smith spoke of the proposed ban on the sale of wood stoves previously presented
by the Air Quality Advisory Board at a study session.
Devocelle clarified staff's recommendation was that Council not proceed with a point of sale
Ordinance for high polluting fireplaces and wood stoves. She clarified staff supported Council's
direction to look at the Code to ensure that the authority was in place to enforce the current Wood
Smoke Program. She reported on the number of stoves currently meeting certification.
COuncilmember Kneeland spoke in support of the motion stating it supports the Air Quality Plan.
The vote on Councilmember Kneeland's motion was as follows: Yeas: Councilmembers Azari,
Kneeland, McCloskey and Smith. Nays: Councilmembers Apt, Janett and Wanner.
THE MOTION CARRIED.
Other Business
Councilmember Apt made a motion, seconded by Councilmember Wanner, to direct staff to bring
back an Ordinance to change out non complying wood stoves. • ..
Councilmember Janett spoke in support of the motion and of the need to continue improving air
quality.
Councilmember Wanner supported the motion, stating he believed this would create a minimal
impact.
Councilmember Kneeland opposed the motion stating she believed the current program was working
fine.
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October 15, 1996
The vote on Councilmember Apt's motion was as follows: Yeas: Councilmembers Azari, Apt,
Janett, McCluskey, Smith and Wanner. Nays: Councilmember Kneeland.
THE MOTION CARRIED.
Councilmember Smith spoke of how the Line Library system was created and asked if the Hewlett-
Packard rebate, which will be donated to Poudre R-1, would assist the line system.
Councilmember Kneeland requested a 2 page memo regarding the provision of full service funding
for the Library.
Councilmember Janett requested a 2 page memo regarding the City's relationship with Halligan
Reservoir and asked if the City has any input as to how the Reservoir is operated.
Adiournment
Councilmember Smith made a motion, seconded by Councilmember Kneeland, to adjourn to
October 22, 1996 at 7:15 p.m. to hear the Provincetowne Appeals. Yeas: Council members Azari,
Apt, Kneeland, Janett, McCluskey, Smith and Wanner. Nays: None
THE MOTION CARRIED.
The meeting adjourned at 8:50 p.m.
ATTEST:
City Clerk
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