HomeMy WebLinkAboutMINUTES-03/03/1992-RegularMarch 3, 1992
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 Tuesday,
March 3, 1992, 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: Azari,
Edwards, Fromme, Horak, Kirkpatrick, Maxey and Winokur.
Staff Members Present: Burkett, Krajicek, Roy.
Citizen Participation
Resolution 92-38 Expressing Appreciation and
Gratitude Posthumously to Robert R. Alexander
for his service on the Parks and Recreation Board Adopted
Councilmember Winokur made a motion, seconded by Councilmember Edwards, to adopt
Resolution 92-38.
' Bob McCluskey, Jr., Parks and Recreation Board Chair, commended Bob Alexander on
his contributions to the Board.
Councilmember Winokur praised Mr. Alexander's many contributions during his
lifetime.
The vote on Councilmember Winokur's motion to adopt Resolution 92-38 was as
follows: Yeas: Councilmembers Azari, Edwards, Fromme, Horak, Kirkpatrick, Maxey,
and Winokur. Nays: None.
THE MOTION CARRIED.
Mayor Kirkpatrick presented the Resolution to Mrs. Alexander.
Jim Martell, 222 W. Magnolia, Downtown Development Authority Chair, presented a
letter signed by himself and Martha Hoffman, President of the Fort Collins
Community Foundation. He expressed concerns about two memoranda, one concerning
the Downtown Development Authority and one concerning the Fort Collins Community
Foundation, sent by Councilmember Winokur via the City's electronic mail system.
He stated the references to a "slush fund" and "money laundry" have serious
criminal connotations. He was concerned that this unhealthy environment
undermines the City's ability to attract and keep boards and commissions
applicants and asked that this issue be addressed.
Roy Uratil, 1401 Shamrock, gave his concerns about speeding in the community, his
utility bill, and the placement of handbills in his door despite the Green River
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March 3, 1992
ordinance.
Bruce Lockhart, 2500 E. Harmony Road, spoke of his concerns about remodeling,
renovation and the Facilities Master Plan.
Elsie Nichol, a trustee of the Fort Collins Foundation, expressed her concerns
about Councilmember Winokur's memo.
Citizen Participation Follow -Up
City Manager Burkett stated the City will follow-up with Mr. Vratil regarding his
utility bill concerns.
Councilmember Winokur, in response to the concerns expressed by Mr. Martell and
Ms. Nichol, stated he had originally perceived the memos as internal inquiries.
He stated his concern about the Foundation was one of clarity about the fund
raising for the new senior center. He apologized for any offense and supported
the work of the Foundation, the Authority, and all boards and commissions.
Mayor Kirkpatrick proposed a resolution stating the Council's interest in and
support of boards and commissions communication. She stated the Council's
sincere belief that the boards and commissions are valuable. I
Agenda Review
City Manager Burkett requested that Item #18, Second Reading of Ordinance No. 28,
1992, Amending Section 2-203 of the Code of the City of Fort Collins Pertaining
to the Duties and Functions of the Cultural Resources Board, be withdrawn from
the Consent Calendar as the vote on First Reading was not unanimous. He noted
that on Item #31, Resolution 92-44 Setting Forth the Intention of the City to
Issue Industrial Development Revenue Bonds for the DB Company/Advanced Energy
Industries, Inc. Project, there was a revised resolution. On Item #35, Second
Reading of Ordinance No. 29, 1992, Amending Chapter 2 of the Code Relating to
Boards and Commissions and Creating the Transportation Board, there is an
optional Ordinance which includes "air transportation".
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 will be considered separately under Agenda Item #25, Pulled
Consent Items.
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March 3, 1992
Consider approval of the minutes of the regular meeting of February 4
Eli
Fort Collins Police Services applied for project funding to the Colorado
Division of Criminal Justice for federal grant monies to fund salary for
one officer,. equipment, and educational materials for D.A.R.E. (Drug Abuse
Resistance Education) and has received notification of a grant award in
the amount of $12,792. Poudre R-1 School District is providing funds in
the amount of $10,780 and T.E.A.M. Fort Collins is providing funds in the
amount of $15,000 for this project. Funds in the amount of $16,000 as
Fort Collins' portion of this request as well as the addition of another
officer and related expenses have already been appropriated in the
existing department budget. Ordinance No. 15, 1992, was unanimously
adopted February 18 on First Reading.
a
' During calendar year 1991, Fort Collins Police Services has continued to
utilize existing state statutes to seize money and property used in
criminal activity. City Council receives annual reports on seizure
activity and expenditures of funds. By statute, monies allocated by the
court to the seizing agency shall not be considered a source of revenue to
meet normal operating needs. These monies are used, instead, to meet
expenses incurred by the agency in performing duties and meeting
obligations which have not been funded through the routine budget process.
Ordinance No. 16, 1992, was adopted unanimously on First Reading on
February 18.
10.
n
Program.
Ordinance No. 17, 1992, which was unanimously adopted on First Reading on
February 18, is a bookkeeping action allowing the operation of the current
Clean Air Colorado program.
Each year, since 1989-90, the State has granted $30,000 to the City of
Fort Collins to be used for air quality education. This income must be
appropriated by Council before it is available for use locally.
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March 3, 1992 '
The expansion of the ZILCH funding in 1991 resulted in the separation of
funds used for energy conservation purposes (Light & Power Reserve) from
those used for residential air quality improvements (General Fund). Loan
repayments on air quality loans now accrue to the General Fund and must be
appropriated annually to retain the revolving loan fund. This Ordinance,
which was unanimously adopted on First Reading on February 18,
appropriates loan receipts from 1991 and projected 1992 income for use in
making new air quality loans during 1992.
On February 18, Council unanimously adopted Resolution 92-24, which
authorized the Mayor to enter into an agreement for the City to continue
to provide Larimer County residents with general Library services and
Library outreach services to serve the handicapped, elderly, and other
isolated persons. In exchange for providing these services during 1992,
the County will pay to the City $108,034. This Ordinance, which was
unanimously adopted on First Reading on February 18, appropriates the I
outreach funds. General Service funds were projected and appropriated
with the 1992 budget.
One of the goals identified by Council is to "Enhance the environmental
quality of our community". As part of the Environmental Management Plan
formulated to achieve this goal, stormwater quality has been identified as
an action item. The Code changes are in response to this objective. Two
specific areas are addressed. First, the Environmental Protection Agency
and the State of Colorado have promulgated regulations which will soon
require the City to have specific legal authority over discharges to its
stormwater systems. Second, discharges of treated groundwater from
leaking underground storage tank remediation sites are currently entering
the sanitary sewer system. In the opinion of staff, it is more
appropriate that these effluents be discharged to the stormwater system.
Water discharged from these treatment facilities is required to meet
strict water quality standards, and will not be significantly improved by.
the wastewater treatment process. Additionally, this water uses valuable
treatment capacity at the wastewater plant. Currently the Code is vague
in its ability to allow such discharges and potential conflicts exist
between various parts of the Code. This Ordinance, which was unanimously
adopted on First Reading on February 18, amends the code to address local
environmental protection, upcoming permit requirements, and current '
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14.
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March 3, 1992
contradictions and ambiguities in various sections of the Code.
Ordinance No. 22, 1992, which was unanimously adopted on First Reading on
February 18, amends the circulator's and candidate's affidavits to clearly
reflect that they are verified or sworn statements. The verified
statement of the circulator contains language to affirm that petition
signers stated to the circulator that they were registered electors. The
candidate's affidavit includes language that states affirmatively that the
candidate meets all of the qualifications for office, including the
residency and age requirements, and that the candidate will serve .if
elected.
This Ordinance, which was unanimously adopted on First Reading on February
18, authorizes an easement located on land purchased by the City of Fort
Collins for the Greeley/Fort Collins Pump Station. US West plans to bury
a fiber optic telecommunications cable through the strip along the
northwesterly edge of the parcel parallel to County Road 52E. It has
agreed to use installation procedures required by the City Water
Utilities.
Compensation is based on the City's purchase price of the Pump Station
site. The project is scheduled to begin in the spring of 1992.
16. Items Related to the Pickett Second Annexation and Zoning.
Second Reading of Ordinance No. 24, 1992, Annexing Approximately 854
Square Feet, Known as the Pickett Second Annexation.
Second Reading of Ordinance No. 25, 1992, Zoning Approximately 854
Square Feet, Known as the Pickett Second Annexation, Into the R-P,
Planned Residential, Zoning District.
On February 18, Council unanimously adopted Resolution 92-33, Setting
Forth Findings of Fact and Determinations Regarding the Pickett Second
Annexation.
On February 18, Council also unanimously adopted on First Reading,
Ordinance No. 24, 1992 and Ordinance No. 25, 1992, which annex and zone
approximately 854 square feet located just east of the terminus of
Spaulding Lane, south of Country Club Road. The requested zoning is the
' R-P, Planned Residential, District. The property is presently developed
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March 3, 1992 '
as a part of Lot #5 of the Terry Ridge Subdivision. The area to be
annexed will be used as street right-of-way to provide access to the
Pheasant Ridge Estates Subdivision, a proposed residential development
within the city limits. The property is currently zoned FA Farming in the
County. This is a voluntary annexation.
APPLICANT: Gary Nordic OWNER: Eric Peterson
809 W. Harmony Road 1919 Westview Road
Ft. Collins, Co 80525 Ft. Collins, CO 80521
Items Related to the Pickett Third Annexation and Zonin
A. Second Reading of Ordinance No. 26, 1992, Annexing Approximately
10,605 Square feet, Known as the Pickett Third Annexation.
B. Second Reading of Ordinance No. 27, 1992, Zoning Approximately
10,605 Square feet, Known as the Pickett Third Annexation, Into the
R-P, Planned Residential, Zoning District.
On February 18, Council unanimously adopted Resolution 92-34 Setting.Forth
Findings .of Fact and Determinations Regarding the Pickett Third
Annexation.
On February 18, Council also unanimously adopted Ordinance No. 26, 1992,
,
and Ordinance No. 27, 1992, which annex and zone approximately 10,605
square feet located just south of the terminus of Westview Road, south of
Country Club Road. The requested zoning is the R-P, Planned Residential,
District. The property is presently developed as a part of Lot #5 of the
Terry Ridge Subdivision. The area to be annexed will be used as street
right-of-way to provide access to the Pheasant Ridge Estates Subdivision,
a proposed residential development within the city limits. The property
is currently zoned FA Farming in the County. This is a voluntary annexa-
tion.
APPLICANT: Gary Nordic OWNER: Eric Peterson
809 W. Harmony Road 1919 Westview Road
Ft. Collins, Co 80525 Ft. Collins, CO 80521
18. Second Readinq of Ordinance No. 28, 1992, Amending Section 2-203_of the
Code of the City of Fort Collins Pertaining to the Duties and Functions of
the Cultural Resources Board.
On January 21, the Council reviewed its policy pertaining to the
allocation of City funds. It adopted Resolution 92-23 which stated that
any board or commission which reviews funding proposals should make
recommendations to the Council rather than having final decision -making
authority with regard to such proposals. '
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At present, the only City board or commission which
perform this function is the Cultural Resources Board.
proposals for the sponsorship of community programs or
of the City's "Fort Fund" program. Funding for this pr
by the City's lodging tax.
March 3, 1992
is authorized to
This board reviews
activities as part
ogram is generated
This Ordinance, which was unanimously adopted on First Reading on February
18, was presented to the Council in order to make the provisions of the
City Code pertaining to the Cultural Resources Board consistent with the
recently adopted Council policy. ,
Ordinance No. 20, 1992, which was unanimously adopted on First Reading on
February 18, contains several amendments to Section 3-55 of the City Code.
This Section sets forth the aggravating and mitigating factors that the
Fort Collins Liquor Licensing Authority can consider at a show cause
hearing in imposing a penalty for a violation of the Colorado Liquor or
Beer Code. Several of the proposed amendments simply clarify the language
of Section 3-55. However, the amendments to subsections (3) and (4) of
Section 3-55 are substantive in nature. The amendment to subsection (3)
has been made to state clearly that, as a general rule, the Authority can
only consider prior violations at the licensed premises that were
committed by the licensee or the licensee's employees. The exception
established by the amendment to subsection (4) is intended to prevent
license holders from "cleansing" licenses of prior violations by
transferring them to new entities.
The 1992 Concrete Improvement Program is the eighth year of an annual
program to encourage property owners to construct, repair, replace, and
maintain their concrete curb, gutter, and sidewalks. This program is
voluntary on the part of the property owners. To encourage participation
by property owners, the City splits the cost of construction with the
property owners (50/50), hires the contractor, and oversees the
construction. In addition to paying 50 percent of the cost of the
improvements, the City also pays the costs of oversizing sidewalks on
major streets and the costs of constructing pedestrian access ramps at
intersections. The City also pays for extending sidewalks across
irrigation canals, alleys, or other public property.
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March 3, 1992
A. Hearing and First Reading of Ordinance No. 33, 1992, Repealing
Section 5 of Ordinance No. 117, 1991.
B. Hearing and First Reading of Ordinance No. 34, 1992, Reaffirming and
Reenacting Section 26-127(C) of the Code of the City of Fort
Collins.
Both ordinances are necessary to correct technical errors in the
preparation of two earlier ordinances.
Ordinance No. 33, 1992, is being presented to Council in order to correct
an oversight in the preparation of Ordinance No. 117, 1991, which deals
with conversions from residential to non-residential uses in the R-H zone.
Essentially, that ordinance failed to take into account the earlier
renumbering of certain Code sections.
Ordinance No. 34, 1992, is being presented to Council to correct Ordinance
No. 120, 1991, which was adopted by Council, in part, for the purpose of
changing the Schedule B, Meter Rates of the Water and Wastewater Utility.
Resolution 92-39 Approving and Endorsing the Nomination of Mayor Pro Tem '
Ann Azari as the National League of Cities' Representative to the U.S.
Department of Commerce Advisory Committee of the Task Force for Designing
the Year 2000 Census and Census -Related Activities for 2000-2009.
The Secretary of Commerce has determined that it is in the public interest
in connection with the performance of duties imposed on the Department by
law, and with the concurrence of the General Services Administration, to
establish the Advisory Committee of the Task Force for Designing the Year
2000 Census and Census -Related Activities for 2000-2009, pursuant to the
Federal Advisory Committee Act.
The Committee will consider all aspects of the conduct of the census of
population and housing for the year 2000 and will make recommendations for
improving that census. In the course of considering potential changes in
the way the census will be conducted, the Advisory Committee will
explicitly consider the factors of census accuracy, cost and prior
experience with census methodology.
Mayor Pro Tem Ann Azari has been invited to be National League of Cities'
representative to the Advisory Committee. This Resolution would support
that nomination.
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23. Resolution 92-40 Approvinq An Application for Exemption from Audit for the
The City has received notice from the Colorado State Auditor's Office that
an audit for the Fort Collins Urban Renewal Authority must be submitted to
the State for the year ended December 31, 1990. The Colorado Local
Government Audit Law requires all local governments to be audited annually
by a certified public accountant (Section 29-1-603, C.R.S.). However, the
law 'does allow for exemption from audit in the circumstance where the
local government has neither revenues nor expenditures in excess of
$50,000 in a.fiscal year.
In order to be exempted from audit, the local government must file an
application with the State Auditor within three months after the end of
the fiscal year (March 31). The State Auditor's Office has prescribed
forms that must be completed.
24. Routine Deeds and Easements.
a. Deed of Dedication from Burns Ranches, Inc. for Tracts A, B, E, and
G of Burns Ranch at Quail Ridge Subdivision, Ist Filing. Tracts A,
B, and G are for open space, access, and drainage purposes. Tract
' E
is for
open space purposes.
Monetary
consideration:
$10.00
Ordinances on
Second
Reading were read by
title by
City Clerk Wanda
Krajicek.
Item # 8.
Item # 9
Item #10.
Item #11.
Item #12.
Project.
Second Reading of Ordinance No. 16, 1992, Appropriating Prior Year
Reserves from Police Seizure Activity.
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Item #13.
Item #14
Item #15.
Item #16A
Item #16B.
Item #17A
Item #17B.
Item #18
Item #19.
March 3, 1992
Second Reading of Ordinance No. 22, 1992, Amending the General Form
for Petitions for Nomination for City Council Office.
Second Reading of Ordinance No. 24, 1992, Annexing Approximately 854
Square Feet, Known as the Pickett Second Annexation.
Second Reading of Ordinance No. 26, 1992, Annexing Approximately
10,605 Square feet, Known as the Pickett Third Annexation.
Second Reading of Ordinance No. 27, 1992, Zoning Approximately I
10,605 Square feet, Known as the Pickett Third Annexation, Into the
R-P, Planned Residential, Zoning District.
Second Reading of Ordinance No. 28, 1992, Amending Section 2-203 of
the Code of the City of Fort Collins Pertaining to the Duties and
Functions of the Cultural Resources Board.
Ordinances on First Reading were read by title by City Clerk Wanda Krajicek.
Item #20.
Item #21A. Hearing and First Reading of Ordinance No. 33, 1992, Repealing
Section 5 of Ordinance No. 117, 1991.
Item #21B. Hearing and First Reading of Ordinance No. 34, 1992, Reaffirming and
Reenacting Section 26-127(C) of the Code of the City of Fort
Collins.
Councilmember Edwards made a motion, seconded by Councilmember Azari, to adopt
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March 3, 1992
and approve all items not removed from the Consent Calendar. Yeas:
Councilmembers Azari, Edwards, Fromme, Horak, Kirkpatrick, Maxey, and Winokur.
Nays: None.
THE MOTION CARRIED.
Ordinance No. 28, 1992, Amending Section 2-203
of the Code of the City of Fort Collins
Pertaining to the Duties and Functions of the
Cultural Resources Board Adopted on Second Reading
The following is staff's memorandum on this item:
"EXECUTIVE SUMMARY:
On January 21, the, Council reviewed its policy pertaining to the allocation of
City funds. It adopted Resolution 92-23 which stated that any board or
commission which reviews funding proposals should make recommendations to the
Council rather than having final decision -making authority with regard to such
proposals.
' At present, the only City board or commission which is authorized to perform this
function is the Cultural Resources Board. This board reviews proposals for the
sponsorship of community programs or activities as part of the City's "Fort Fund"
program. Funding for this program is generated by the City's lodging tax.
This Ordinance, which was adopted 5-2 on First Reading on February 18, was
presented to the Council in order to make the provisions of the City Code
pertaining to the Cultural Resources Board consistent with the recently adopted
Council policy."
Councilmember Horak made a motion, seconded by Councilmember Edwards, to adopt
Ordinance No. 28, 1992, on Second Reading. Yeas: Councilmembers Edwards, Fromme,
Horak, Kirkpatrick, and Maxey. Nays: Councilmembers Azari and Winokur.
THE THE MOTION CARRIED
Councilmembers Reports
Councilmember Maxey reported the Health and Safety Committee's recommendation for
policy options concerning the handling of police complaints would be considered
on April 7.
Councilmember Horak requested copies of the recommendation be distributed to
' Council early.
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March 3, 1992
Councilmember Fromme reported that more than 200 attended the Town Meeting held
Thursday, February 27. She reported there was consensus on the need for
improvement and expansion of the public transportation system, general concern
about the air pollution problem, and concerns about Fort Collins High School.
She related that impact fees were the big issue of controversy.
Councilmember Horak recommended town meetings which focus on specific topics as
well as general town meetings.
Councilmember Edwards stated his belief that an electronic message he received
from Councilmember Winokur was so outrageous in its language and so blatantly
threatening that he felt the Council had the right to know the content and the
public had the right to know of its existence. In the message, Councilmember
Winokur took issue with Councilmember Edwards' opposition to holding a joint
worksession with the School Board and a letter sent by Councilmember Edwards to
the School Board 9 months ago. Councilmember Edwards stated the City Attorney
had advised him that to publicly disclose the message would put him at some
personal risk and that, under the Colorado Open Records Act, such a communication
could be considered a matter of public record. Councilmember Edwards spoke of
his concerns about politics by intimidation.
Councilmember Winokur refuted the inferences that Councilmember Edwards made from
the electronic message in question. He stated that following the last meeting ,
he was upset because he considered a joint worksession with the School Board a
great opportunity to deal with community concerns dealing with the new Fort
Collins High School. He believed his motives and intent were publicly questioned
and stated he was unable to resolve the issue privately after the meeting. He
expressed regret about the phrasing he used in anger. He further expressed his
renewed commitment to focusing on the issues and respecting fellow Councilmembers
as human beings.
Public Hearing and Resolution 92-41 Authorizing
the City Manager to Submit for Approval the Fort Collins
Comprehensive Affordable Housing Strategy (CHAS) to the
The following is staff's memorandum on this item:
"EXECUTIVE SUMMARY:
The National Affordable Housing Act (NAHA) requires that, in order to apply for
certain Department of Housing and Urban Development (HUD) programs, local
governments must have an approved Comprehensive Affordable Housing Strategy
(CHAS). After HUD approves the City's CHAS, housing agencies, such as the
Housing Authority, Neighbor. to Neighbor, Inc., Catholic Community
Services/Northern, etc., can apply for the various financial assistance grant
programs authorized under NAHA. HUD approval of the City's CHAS is also ,
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March 3, 1992
necessary for the City to receive its annual entitlement of Community Development
Block Grant (CDBG) Program funds. The CHAS identifies housing needs and
integrates the proposed use of resources, from both public and private sources,
into one housing plan.
BACKGROUND:
The National Affordable Housing Act (NAHA) requires that, in order to apply for
certain Department of Housing and Urban Development (HUD) programs, local
governments must have an approved Comprehensive Affordable Housing Strategy
(CHAS). After HUD approves the City's CHAS, housing agencies, such as the
Housing Authority, Neighbor to Neighbor, Inc., Catholic Community
Services/Northern, etc., can apply for the various financial assistance grant
programs authorized under NAHA. HUD approval of the City's CHAS is also
necessary for the City to receive its annual entitlement of Community Development
Block Grant (CDBG) Program funds.
Development of the Fort Collins CHAS started in July of 1991, when members of
the Larimer County Affordable Housing Task Force, including representatives and
individuals from the various housing and support services agencies in the
community, began meeting with City staff to identify the various housing needs
of low and moderate income people; establish a series of priority programs to
address the needs; and identify specific projects to help implement the
priorities.
The CHAS, which identifies housing needs and integrates the proposed use of
resources from both public and private source's into one housing plan, is
comprised of three major sections:
1. Community Profile.
The Community Profile contains a detailed discussion of the housing needs of low
and moderate income people of the community. The Profile discusses existing
housing conditions and housing problems. Many of the identified needs are
supported by data from a variety of sources including Census data, a Housing
Needs Assessment conducted by the Larimer County Affordable Housing Task Force,
and information from the various housing agencies in the community.
In summary these needs include:
(1) Emergency shelter and safehouse shelter housing.
(2) Low income rentals.
(3) Single -room -occupancy (SRO) units.
(4) Transitional housing units.
(5) Units for moderate income renters and owners.
(6) Subsidized units for families.
(7) Handicapped accessible units.
' (8) Group facilities (for special populations).
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March 3, 1992
1
(9)
Supportive services.
(10)
Ways to reduce interest rates or provide purchase subsidies to assist in
homeownership opportunities.
2. Five
-Year Housing Strategy.
The
Five -Year Strategy presents a listing of priority housing programs and
support
services that will attempt to be implemented over the next five years.
Some
examples of the priorities contained in the CHAS are:
(1)
Increase the number of Section 8 Vouchers and Certificates.
(2)
Increase the supply of affordable rental units.
(3)
Increase the supply of safehouse emergency shelter facilities and
supportive services to assist the victims of domestic violence.
(4)
Increase the number of accessible housing units for the disabled and
assist disabled people in accessing needed services that encourage and
enhance their independence and integration within neighborhoods.
(5)
Increase and preserve homeownership through owner -occupied rehabilitation,
energy conservation, and first-time buyer programs and to assist owners in
remaining in their homes when faced with foreclosure.
(6)
Develop an "Affordable Housing Policy" for the City of Fort Collins.
(7)
Encourage, support, and fund demonstration programs which bring in outside
capital to blend with local, state, and national funding resources to
provide permanently affordable and stable neighborhood housing for low and
very low income households in particular.
'
3. One -Year Action Plan.
The One -Year Action Plan lists the specific projects which will attempt to be
completed during the next year. Some examples of the specific projects contained
in the CHAS are:
(1) Fort Collins Habitat for Humanity will complete a duplex at 523 Naple
Street for low income households.
(2) Neighbor to Neighbor will provide at least two emergency housing units for
short term housing for families for stays of two to four weeks until a
move to transitional housing or long term housing is possible.
(3) TRAC (The Resource Assistance Center) will develop the San Cristo
Subdivision to provide low income homeownership opportunities.
(4) CARE (Community Affordable Residence Enterprises) will develop 20
additional low income rental units.
(5) The Shields Street Corporation will construct 90 new low income rental
units.
A draft version of the Fort Collins CHAS became available for public review on
December 21, 1991, starting an official 60 day public review and comment period
required by NAHA. A public hearing was conducted by City staff on February 6,
1992, to solicit citizen comments on the draft version of the CHAS. The CHAS has '
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March 3, 1992
been modified to reflect citizen input and additional information provided by the
housing and support service agencies. A copy of the CHAS has been sent to the
Council under separate cover."
Chief Planner Ken Waido made a brief presentation on this item. He clarified
that the development of the document was necessary for the City to become
eligible for federal assistance.
David Herrera, Executive Director of the Fort Collins Housing Authority, urged
the adoption of the Resolution submitting CHAS to HUD and commented on the City's
future role in addressing the impending crisis in affordable housing.
Lou Stitzel, co-chair of Larimer County Affordable Housing Task Force,
complimented Council and staff on the CHAS and expressed the readiness of Larimer
County Affordable Housing Task Force to cooperate on the continuing work.
Tom Sibbald, Fort Collins builder, expressed concerns about the barrier section
of the CHAS and staff expertise in low income housing policy development. He
proposed input from current providers of low income housing.
Craig Welling, Colorado State University student and Assistant Director of
Student Affairs, spoke of student housing concerns and offered ASCSU as a
communication vehicle to students.
Councilmember Maxey made a motion, seconded by Councilmember Edwards, to adopt
Resolution 92-41.
Councilmember Fromme requested that experts be invited to the first work session
on affordable housing strategy.
Councilmember Horak requested a summary of the CHAS with graphics for the work
session.
Mayor Kirkpatrick spoke of the opportunity the federal mandate for CHAS has
created to work with Larimer County, the private sector, and the community to
develop a strategy for the future.
The vote on Councilmember Maxey's motion
follows: Yeas: Council members Azari, Edwards,
and Winokur. Nays: None.
THE MOTION CARRIED.
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to adopt Resolution 92-41 was as
Fromme', Horak, Kirkpatrick, Maxey,
March 3, 1992 '
Items Relating to the Issuance of City of Fort Collins
General Obligation Water Improvement and Refunding Bonds
The following is staff's memorandum on this item:
"A. Tabling of Second Reading of Ordinance No. 30, 1992, Authorizing the
Issuance of City of Fort Collins General Obligation Water Bonds, Series
1992A.
B. Tabling of Second Reading of Ordinance No. 31, 1992, Authorizing the
Issuance of City of Fort Collins General Obligation Water Refunding Bonds,
Series 1992B.
Resolution 92-42 Authorizing the Execution of a Bond Purchase Agreement
Relating to the General Obligation Water Bonds, Series 1992A and 1992B.
In 1986, the City of Fort Collins issued General Obligation Water Refunding and
Improvement Bonds in the amount of 533,03O,OOO. The bonds have been used to
construct improvements to the water treatment facilities and to acquire water
rights. With interest rates dropping to their lowest rates in approximately 20
years, the City has an opportunity to refund the 1986 bonds with significant debt
service savings. Savings are estimated to be over SI million on the remaining
bonds, a present value savings of $68O,O0O or 3% of the refunded bonds. On '
February 18, Council unanimously adopted Ordinance No. 30, 1992 and Ordinance No.
31, 1992.
The new money issue will provide construction monies for improvements to the
City's water treatment plant. The improvements include a backwash water solids
separation facility, three mixed -media sand filters modification and additions
to the chemical storage and feed systems, a maintenance facility, a new 60-inch
outlet and connecting piping for one of the existing 15 million gallon treated
water storage reservoirs and other miscellaneous improvements.
Interest rates will not reach the levels necessary to provide the appropriate
amount of savings by March 3, 1992. It is possible that the desired levels will
be reached shortly after March 2, and the bonds may be sold prior to the next
regular Council meeting of March 17. Investment banking practices require that
the underwriters enter into a bond purchase agreement reasonably soon after the
marketing of the bonds. Staff recommends that the Council adopt. the resolution
which authorizes the City Manager to sign the bond purchase agreement. Under the
terms of the agreement, the purchase and sale of the bonds is contingent upon
ratification by the Council through the passage of the ordinances on second
reading."
Finance Director Alan Krcmarik gave a staff report on this item.
Councilmember Fromme made a motion, seconded by Councilmember Azari, to table the '
Second Reading of Ordinance No. 30, 1992 to March 17. Yeas: Councilmembers
217
F
Azari, Edwards, Fromme, Horak, Kirkpatrick, Maxey, and Winokur
THE MOTION CARRIED.
March 3, 1992
Nays: None.
Councilmember Fromme made a motion, seconded by Councilmember Azari, to table the
Second Reading of Ordinance No. 31, 1992 to March 17. Yeas: Councilmembers
Azari, Edwards, Fromme, Horak, Kirkpatrick, Maxey, and Winokur. Nays: None.
THE MOTION CARRIED.
Councilmember Azari made a motion, seconded by Councilmember Edwards, to adopt
Resolution 92-42. Yeas: Councilmembers Azari, Edwards, Fromme, Horak,
Kirkpatrick, Maxey, and Winokur. Nays: None.
THE MOTION CARRIED.
Public Hearing and Resolution 92-43 Setting
Forth the Intention of the City to Issue
Industrial Development Revenue Bonds for the Sampson
Partnership/Value Plastics, Inc. Proiect Resolution Adopted
The following is staff's memorandum on this item:
"FINANCIAL IMPACT:
The Industrial Development Revenue Bonds ("IDRBs") will be repaid from the
revenue generated by the project. The bonds do not constitute a debt of the
City. The City will receive a fee of 1116 of one percent of the present value
of the projected outstanding annual debt of the project, consistent with the
City's IDRB policies, to be used for economic development purposes. This fee is
dependent upon the debt service for the project and is estimated to be between
$6,000 and $10,000.
EXECUTIVE SUMMARY:
The Sampson Partnership/Value Plastics, Inc. ("Value Plastics") submitted an
application to the City for an Inducement Resolution in the amount of $2,150,000.
The Resolution would induce the partnership to construct a new manufacturing
facility located adjacent to Value Plastic's present facility. This 46,000
square foot facility will consolidate the two locations at 3350 Eastbrook Drive
in Fort Collins and 626 W. 66th Avenue in Loveland. This project will include
reconfiguration of part of the existing facility on Eastbrook Drive to provide
additional office space to support the manufacturing operations. The proposed
project will be owned by The Sampson Partnership and leased to Value Plastics,
Inc. Value Plastics, Inc. is a Colorado corporation -owned by Richard K. and
Gloria J. Sampson.
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March 3, 1992 '
Value Plastics, Inc. was founded by the Sampsons in 1968 to design, manufacture,
promote and sell a broad selection of products related to the interconnection of
hose, tubing, and manifolds. Although the bulk of the company's market is
located domestically, export sales to the medical device industry in Western
Europe has grown over 500% since the mid-1980's. The Company's present facility
on Eastbrook was financed through IDB's issued by the City in 1984.
The public hearing is required by the Tax Equity and Fiscal Responsibility Act
(TEFRA). It provides an opportunity for the public to comment before the
issuance of the bonds.
Project Budget and Use of Bond Proceeds
The estimated budget for the project is as follows:
Building, fixtures 1,500,000
Renovations/Improvements 115,000
Equipment 500,000
Issuance Costs 35,000
TOTAL $2,150,000
The proceeds of the bond issue will be applied to these total costs. The '
equipment cost consists of major equipment used in the manufacturing process and
has an expected useful life of 10 years. The building has an expected useful
life of 40 years. The bonds will be paid over a 20 year amortization period.
Economic Benefits
The project, if completed, will yield direct and indirect benefits to the Fort
Collins economy.
Direct Benefits
Annual Property Tax:
Real Property $ 5,700
Personal Property 1,400
(based on increase from
33,000 s.f. to 46,000 s.f.)
Annual Use Tax: 4,300
Sales Tax from Utilities 100
Indirect Sales Tax (based on
annual payroll projections after
full employment in 1997): 34,000 '
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March 3, 1992
Total estimated annual
receipts:
$45 500
One-time Sales/Use Tax
from
Building Permit:
S17,500
Use Tax on Equipment -
Year l
5,500
Year 2
4,125
Year 3
4.125
Total estimated one-time receipts:
$31 250
Total Direct Benefits:
$76 750
Indirect Benefits
It is estimated that 98% of Value Plastics' 1992 projected $4.2
million sales will be made outside the Fort Collins area while 90%
of all expenditures will be made within the City.
It is anticipated that an additional 25 employees will be hired from
the local job market by 1997. If it is assumed that 50% of the
additional employee payroll is spent locally, the City will receive
' in excess of $34,000 per year in sales tax after 1997.
Financial Feasibility and Debt Coverage from Preliminary Cash Flow
Based on preliminary estimates, the debt coverage ratio ranges from 2.82 to 1 in
the first year to 3.91 to 1 in the fifth year. These coverages assume sales
growth of 16% per year and a 20 year bond amortization at 7.0 percent.
In addition to the coverage described above, the bondholders will be protected
by a letter of credit from Central Bank of Denver, 1st Interstate of Fort
Collins, or Norwest Bank.
Conclusion
This memorandum serves as a summary overview of the application. Staff has
evaluated the application and finds it is consistent with the City's policies and
guidelines for issuing industrial development revenue bonds. The IDRB Criteria
Evaluation sheet is attached for review. The project received 74 out of a
possible 100 points. Based on the evaluation of these criteria staff recommends
approval of the inducement resolution. Sales Tax Staff have raised questions
about the of the filing of Sales/Use Tax returns by Value Plastics, Inc. over the
past several years. The Sales Tax Staff notes improvement in the last two
quarters. Sales Tax Staff has scheduled an audit on March 9, to determine the
extent of compliance with the City's sales and use tax ordinance. Value Plastics
' has stated its intent to comply with' the sales and use tax provisions of the
220
March 3, 1992 '
Code."
Finance Director Alan Krcmarik made a presentation on this item.
Paul Munana, Administrative Manager for Value Plastics, gave the history of the
company and an explanation of the expansion plans.
Councilmember Azari made a motion, seconded by Councilmember Maxey, to adopt
Resolution 92-43.
Bruce Lockhart, 2500 E. Harmony Road, questioned whether there would be an
increase in jobs since there would be a consolidation with the Loveland facility.
Mr. Munana stated the present four Loveland jobs would not be jeopardized.
Councilmember Fromme commended the company on the use of efficient energy savings
and water recycling.
The vote on Councilmember Azari's motion to adopt Resolution 92-43 was as
follows: Yeas: Councilmembers Azari, Edwards, Fromme, Horak, Kirkpatrick, Maxey,
and Winokur. Nays: None.
THE MOTION CARRIED.
Resolution 92-44 Setting Forth the Intention
of the City to Issue Industrial Development
Revenue Bonds for the DB Company/
Advanced Energy Industries, Inc. Project. Adopted as Revised
The following is staff's memorandum on this item:
"FINANCIAL IMPACT:
The Industrial Development Revenue Bonds ("IDRBs") will be repaid from the
revenue generated by the project. The bonds do not constitute a debt of the
City. The City will receive a fee of 1/16 of one percent of the present value
of the projected outstanding annual debt of the project, consistent with the
City's IDRB policies, to be used for economic development purposes. This fee is
dependent upon the debt service for the project and is estimated to be between
$24,000 and $30,000.
EXECUTIVE SUMMARY:
The DB Company/Advanced Energy Industries, Inc. ("Advanced Energy") submitted an
application to the City for an Inducement Resolution in the amount of $6,570,000.
The Resolution would induce the company to acquire a site and construct a new '
manufacturing facility. Potential locations are East Prospect Road, east of the
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March 3, 1992
Orthopaedic Center of the. Rockies, or Collindale Business Park (West side of
Timberline Road between Horsetooth Road and Harmony Road). The proposed project
-
wi11 be owned by The DB Company, a Colorado limited liability company being
formed by the principal shareholders of Advanced Energy and leased to Advanced
Energy. Advanced Energy Industries, Inc. is a Colorado corporation whose
principal shareholders are Douglas S. Schatz and G. Brent Backman.
Advanced Energy was founded by Doug Schatz and Brent Backman in 1981 to design,
manufacture, promote and sell sophisticated power -conversion products. In
addition to corporate headquarters in Fort Collins, Advanced Energy now has
offices in Japan and Europe and on the East and West coasts of the United States.
Economic Incentives .
The total incentive package for Advanced Energy has not been determined. Once
the final site is selected, it is expected that Advanced Energy will request that
the City waive certain development fees. That request will be presented to the
Council under separate action.
Project Budget and Use of Bond Proceeds
The estimated budget for the project is as follows:
' Land $ 698,000
Building 3,996,000
Furnishings 512,000
Equipment 1,250,000
Issuance Costs 114,000
TOTAL $6,570,000
The proceeds of the bond issue will be applied to these total costs. The
equipment cost consists of major equipment used in the manufacturing process and
has an expected useful life of 10 years. The building has an expected useful
life of 40 years. The bonds will be paid over a 20 year amortization period.
Economic Benefits
The project, if completed, will yield direct and indirect benefits to the Fort
Collins economy.
Direct Benefits
Annual Property Tax:
Real Property S13,300
Personal Property 5,000
(based on increase from
' 33,000 s.f. to 46,000 s.f.)
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March 3, 1992
,
Annual Use Tax: 14,100
Sales Tax from Utilities 1,000
Indirect Sales Tax 20,800
Total estimated annual receipts: $54,200
one-time Sales/Use Tax from
Building Permit: $54,900
Use Tax on Equipment/Furn. 48,400
Total estimated one-time receipts: $103,300
Total Direct Benefits: $157,500
NOTE: Please note that if the site on East Prospect Road is selected, it would
need to be annexed prior to issuance of bonds in order for the above
estimated receipts to materialize. Without annexation, no revenue could
be expected from this project.
Indirect Benefits
It is estimated that 98% of Advanced Energy's 1992 projected sales
'
will be made outside the Fort Collins area while 75% of all
expenditures will be made within the City.
It is anticipated that 609 of the additional 170 employees will be
hired from the local job market by 1995. If it is assumed that 50%
of the additional employee payroll is spent locally, the City will
receive in excess of $20,800 per.year in sales tax after 1997.
Financial Feasibility and Debt Coverage from Preliminary Cash Flow
Based on preliminary estimates, the debt coverage ratio ranges from 2.31 to I in
the first year to 13.66 to 1 in the fifth year. These coverages assume sales
growth of 207 per year and a 20 year bond amortization at 5.65 percent.
Conclusion
This memorandum serves as a summary overview of the application. Staff has
evaluated the application and finds it is consistent with the City's policies and
guidelines for issuing industrial development revenue bonds. The IDRB Criteria
Evaluation sheet is attached for review. The project received 84 out of a
possible 100 points. Staff recommends approval of the inducement resolution."
Finance Director Alan Krcmarik noted the revision to the Resolution was to
'
223
March 3, 1992
clarify the potential sites for the project and gave a brief presentation on this
item.
G. Brent Backman, principal shareholder of Advanced Energy, gave the history of
the company and the expansion plans.
City Manager Burkett noted the relationship of this proposal to the Council's
economic development policy.
Councilmember Azari made a motion, seconded by Councilmember Edwards, to adopt
Resolution 92-44 as revised.
Councilmember Fromme expressed concern about an implied connection between the
development fee waivers and the issuance of the IDRB.
Mr. Krcmarik replied the economic fee waivers are a separate decision. The fee
waivers were included in the agenda item summary for information only and are not
included in the inducement resolution.
Mr. Backman stated the intent was to get an IDRB. Construction is not dependent
upon getting the development fee waivers.
' Councilmember Azari asked what would happen to the structures presently occupied
by Advanced Energy.
Mr. Backman replied that the buildings would be vacated. The company is
presently negotiating with the landowner/developer, W.W. Reynolds Company.
Councilmember Horak spoke in favor of IDRBs as a way to help Fort Collins
companies to expand and provide jobs without putting the City at risk.
Councilmember Edwards spoke in favor of IDRBs as a win -win situation.
Mayor Kirkpatrick stated that, despite significant changes .in federal
regulations, the City's ability to.participate in IORBs is still strong due to
a good history, a reasonable policy and innovative local entrepreneurs.
Councilmember Maxey supported the IDRB because the product is marketed outside
the community while the revenue stays in the community.
The vote on Councilmember Azari's motion to adopt Resolution 92-44 as revised was
as follows: Yeas: Councilmembers Azari, Edwards, Fromme, Horak, Kirkpatrick,
Maxey, and Winokur. Nays: None.
THE MOTION CARRIED
J
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March 3, 1992 1
Ordinance No. 35, 1992, Appropriating Funds
For The City's Share of the Downtown Railroad
Track Consolidation Project, Adopted on First Reading
The following is staff's memorandum on this item:
"FINANCIAL IMPACT:
The City needs $700,000 to fund its share of the costs of this track
consolidation project. Costs are projected to be $650,000 with a $50,000
contingency to cover potential cost overruns. The following monies upon approval
will be appropriated into a capital project in the General City Capital account.
114 Cent Necessary Remaining Balance $362,087
114 Cent Railroad Crossing Improvements
Project Balance 94,000
General City Capital Fund Balance 243,913
TOTAL FUNDING $700,000
EXECUTIVE SUMMARY:
The City of Fort Collins, the Burlington Northern Railroad, the Union Pacific '
Railroad, and the Colorado Department of Transportation have a unique opportunity
to work together to consolidate the railroad tracks in the downtown area to
provide major benefits for the City, CDOT, and both Railroads.
Staff has worked with both railroads to develop a track consolidation plan which
would improve train operations and eliminate a majority of the tracks in the
downtown area. Staff worked with the DDA, Poudre River Trust, Planning, Economic
Development, Landmark Preservation, and area businesses and residents to
establish the consolidated track alignment.
The overall benefits are major and are essential to the implementation of the
Downtown Plan and the Poudre River Trust Plan. Sixteen railroad crossings and
miles of track will be eliminated which will reduce delays to motorists, reduce
traffic congestion, reduce air pollution, and improve the safety of our streets.
The number of trains crossing North College Avenue will be reduced from 22 to 10
which will reduce the delays to motorists from 60 minutes daily to less than 30
minutes. This should help with Council's plan to revitalize North College
Avenue.
The proposed funding for the project is $1,870,000. The CDOT has pledged
S100,000 towards the project and the City has received $230,000 in Federal
Rail/Highway Crossing Protection Funds to pay 90% of the costs to signalize four
crossings. The remaining balance of $1,540,000 will beshared as follows: City
$650,000; BNRR $650,000; and UPRR $240,000. Estimates show that the project .
could cost as much as $2,000,000. The cost overruns or savings will be shared
225
March 3, 1992
proportionately by the City and the two Railroads, therefore the City's share
could be up to $700,000.
Staff estimates that the project could be completed within 12 to 15 months after
the funding is in place."
Civil Engineer Mark Sears made a presentation on this item, discussing the
benefits of the proposed consolidation.
Councilmember Edwards made a motion, seconded by Councilmember Winokur, to adopt
Ordinance No. 35, 1992 on First Reading.
Councilmember Horak asked about the impact on the Northside Aztlan Center.
Sears replied that the City would be relocating the entrance from the center to
the southeastern corner of the property and relocating some trees.
Councilmember Horak expressed concerns about the effect on the Northside Center
since it was built on a former landfill site.
Sears responded that a local engineer, an expert in damages caused to buildings
by vibrations, will investigate the structure and make recommendations if needed.
Councilmember Horak inquired about the schedule for the project.
Sears responded that during the next 9-12 months final design including
investigation of the impact to the Northside Center would be finalized. He
anticipated it would take 2-3 additional months to build new track and another
2-3 months to remove excess tracks.
Councilmember Horak asked about cost sharing for work to stabilize the Northside
Center.
Sears responded that all costs will be shared proportionately.
Councilmember Horak inquired where the funds for this project are coming from.
Sears replied $363,000 is coming from the 1/4 cent Necessary Fund balance,
$94,000 from the Railroad crossing project and $243,000 from General City Capital
Fund.
Burkett stated the funds were not earmarked for other projects.
Councilmember Horak inquired about the balance in the General City Capital Fund.
Sears replied there would be $500,000 remaining in the fund after the $243,000
for this project is deducted.
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March 3, 1992 I
Councilmember Fromme asked what happens if Burlington Northern Railroad is unable
to fund its portion of the project.
Burkett replied that the project could not be done.
Councilmember Fromme asked about the other track crossing College Avenue.
Sears replied the Burlington Northern mainline track has been the subject of many
relocation studies but, due to costs, it has never been relocated.
Councilmember Fromme expressed concerns about vibrations and noise affecting the
use of the Northside Aztlan Center.
Burkett expressed the City's intent to mitigate any impacts on the Center.
Councilmember Maxey inquired how long Lemay Avenue would be blocked during
switching operations.
Sears stated the efficiency in the switchyard would be improved by the Union
Pacific delivering a whole block of cars to the Burlington Northern switchyard.
Councilmember Edwards inquired about the timeframe for a final decision by all
parties on this project. '
Sears stated that each party has been asked to put $15,000 up front to fund the
right-of-wayacquisition, site analysis, etc. which need to occur in the next
9-12 months. He noted this gives the railroads some time to fund the remainder.
While the Union Pacific Railroad has indicated its funds are available, he
estimated the Burlington Northern Railroad will indicate within the next few
months whether it can.fund its portion.
Roy Vratil, 1401 Shamrock Street, questioned why the study took so long.
Burkett responded that the project entailed negotiating with the railroads for
the shared project.
Mike Hauser, Executive Vice President of the Chamber of Commerce, supported the
project.
Councilmember Fromme spoke in favor of the project as mitigating air pollution
problems but gave her concerns about the effect on the Aztlan Center.
Councilmember Edwards supported the ordinance as a great_ opportunity to improve
the community.
Councilmember Maxey spoke in favor of the community benefit in the relocation.
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March 3, 1992
Councilmember Azari stated that concerns about the effect on the Aztlan Center
should not stop the project.
Councilmember Horak supported the ordinance, but gave his concerns about the
effect on the Aztlan Center, the funding for the project, and placing a time
limit on the appropriation.
The vote on Councilmember Edwards' motion to adopt Ordinance No. 35, 1992 on
First Reading was as follows: Yeas: Councilmembers Azari, Edwards, Fromme,
Horak, Kirkpatrick, Maxey, and Winokur. Nays: None.
THE MOTION CARRIED.
Ordinance No. 36, 1992, Authorizing the Issuance
of City of Fort Collins Downtown Development Authority
Tax Increment Refunding Bonds Adopted on First Reading
The following is staff's memorandum on this item:
"FINANCIAL IMPACT:
' The budgeted debt service for the existing debt in 1992 is $1,297,968. The new
debt service for 1992 would be $554,825, a savings of $643,143. Over the life
of the remaining debt service, savings of $4.1 million would be realized.
The DDA debt is included in the City's debt service indicator. The lowered debt
service improves the debt service burden carried by the City's general government
funds. The projected debt service expenditures as a percentage of general
government operating expenditures would drop to 12% for 1992 and trending to 6.5%
in 1996.
The savings estimates and corresponding modifications in the debt service
indicator are subject to change as market interest rates fluctuate and the final
maturity schedule of the bonds is determined.
EXECUTIVE SUMMARY:
The recommended refunding plan for the Downtown Development Authority 1988 issue
would provide a reduction in the debt service of approximately $4 million. This
amounts to a net present value savings of $845,000. The refunding plan pays off
outstanding long term debt from unspent bond proceeds remaining in the
construction account from the 1998 issue. In the years 1992 through 1997, the
annual debt service payments for the DDA are reduced by about $645,000 per year.
This reduction of debt service improves the City's debt target indicator and is
consistent with the policy of early debt retirement.
The 1992 Refunding bonds will be paid off in 2006, the same maturity as the 1988
' issue. The debt service on the 1992 issue is structured to increase over time
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March 3, 1992 '
from $655,000 in 1992 to $1,540,000 in 2005. This structure will allow the
maximum amount of time for the tax increment from the district to grow and cover
the annual debt service.
BACKGROUND:
The DDA was created by City Council in 1981 and was approved by an election of
the qualified electors within the District. Later in 1981, the Council approved
the plan of development for the district and authorized the Authority to
undertake the list of proposed improvements included in the plan. Under the
state statute under which it is formed, a downtown development authority has
several powers, including the power to plan and propose plans of improvements to
public or private property, to sell or dispose of property, to borrow money and.
accept grants, to cooperate with the city in which it is located and to enter
into contracts with the city, and in connection with public facilities, to
improve and operate improvements. The state law also provides that the city
forming the authority acts as the issuer of bonds for authority projects. A
development authority does not have the power of taxation or eminent domain.
In 1982, the qualified electors within the district authorized the City to incur
indebtedness in an amount not to exceed $25 million to fund the construction of
capital improvements according to the DDA plan of development. The voters also
authorized the City to pledge the Tax Increment Revenue from the district as '
security for such indebtedness.
In exercising the bonding authority provided by the qualified electors of the
district the City has issued the following notes and bonds to provide the
financing for capital improvements in the DDA plan of development:
The outstanding bonds to be refunded are the Series 1988, $13,545,000 Downtown
Development Authority Tax Increment Refunding and Improvement Bonds. The 1988
issue refunded the 1985 bonds and added new bonds for improvements within ,the
district. The 1988 issue refunded and restructured the DDA debt to allow more
time for the tax increment in the district to cover the debt service. The net
effective interest rate on the bonds was lowered from 9.0% to 7.71.. The length
of the bonds was extended from 2004 to June 1, 2006, the statutory limit for the
district. The 1988 issue included $3,300,000 for the development and expense
fund also referred to as the construction account, which is used for new
projects. The major use of this fund has been to provide public improvements for
the Opera House Project. Approximately $2,500,000 remains in the development and
expense account.
The 1992 refunding proposal is motivated by the opportunity to further reduce the
DDA debt service by refunding with lower interest rates. The net effective rate
on the 1988 issue was 7.7q. Current interest rates would lower the net effective
rate to 6.0%. Through 2006, the remaining debt service on the 1988 bonds to be
paid by DDA would sum $21,562,000. At the lower interest rates the debt service '
would be $17,430,000.
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March 3, 1992
The DDA Board has reviewed and discussed the refunding plan and finds that it is
in the mutual best interest of the City and the DDA to proceed with the plan.
The DDA Board is concerned about the ability to undertake new projects which will
add to the assessed value within the downtown and improve the ability to cover
debt service from tax increment revenue. The DDA Board resolution is included
as an attachment.
In order to reach an understanding regarding new projects and how debt service
savings may be used for such projects, legal counsel for DDA and the City
Attorney have developed a proposed agreement between the City and the DDA. The
execution of this agreement would be authorized by the passage of a Council
resolution on Second Reading of the Ordinance. In essence, the agreement
provides that new projects may be financed from the annual debt service savings
that will result from the refunding. The debt service savings will be accounted
for in the DDA debt service fund. In order for the DDA to use the excess debt
service monies, an appropriation will need to be approved by the Council. Staff
expects that such appropriations for projects will be done on a project by
project basis."
Councilmember Winokur made a motion, seconded by Councilmember Maxey, to adopt
Ordinance No. 36, 1992 on First Reading.
' Finance Director Alan Krcmarik made a presentation on this item.
Councilmember Winokur asked whether there would be an extraordinary call built
into the bond issue.
Krcmarik replied that option would be discussed with the underwriters before
being included.
Councilmember Winokur questioned funding future proposed DDA projects.
Krcmarik replied that all savings that occur are savings between tax increment
collected, and lower debt service. He added that any excess monies in debt
service for any year could be used for projects, but Council would have to make
an appropriation and an acceptable debt instrument would be required by state
statute.
Councilmember Maxey asked about the unique circumstances for this proposed
refunding.
Krcmarik replied that the timing is dictated by the drop in the interest rates
and, unique with the DDA, changes in the federal regulations on the transfer
proceeds penalty.
Councilmember Winokur commended the work done by staff and the DDA on this item.
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March 3, 1992
The vote on Councilmember Winokur's motion to adopt Ordinance No. 36, 1992 on
First Reading was as follows: Yeas: Councilmembers Azari, Edwards, Fromme,
Horak, Kirkpatrick, Maxey, and Winokur. Nays: None.
THE MOTION CARRIED.
Krcmarik noted that the NBIA insurance commitment probably won't be received by
March 17, so the second reading may be tabled and a Resolution authorizing the
City Manager to enter a bond purchase agreement will be presented.
Resolution 92-45 Supporting the Mayor's
Declaration of 1992 as the "Year of the River," Adopted
The following is staff's memorandum on this item:
"EXECUTIVE SUMMARY:
On January 7, 1992, during the "State of the City" address, Mayor Kirkpatrick
declared 1992 as the "Year of the River". This declaration was intended to
suggest a community theme which would function as a unifying concept or framework
for the many current activities involving the Cache La Poudre River.
There are several City projects already underway which relate to the river, '
including the proposed Cache La Poudre River National Water Heritage Area, the
Poudre River Master Drainageway plan, and an array of recreation and natural
resource management projects. The City projects are consistent with Council
goals to continue commitment to the vitality of Downtown and to enhance the
environmental quality of the community.
In addition to City projects, the "Year of the River" can be a rallying concept
by which community organizations and other governmental agencies can plan,
coordinate and publicize their river-related.efforts. The "Year of the River"
concept is a tool to stimulate community leaders to consciously incorporate
natural and cultural resource issues in their planning and activities."
Councilmember Edwards made a motion, seconded by Councilmember Azari, to adopt
Resolution 92-45.
Mayor Kirkpatrick stated she requested this Resolution to clarify that the intent
of the "Year of the River" was not to add items to the Council Work Plan but to
provide a community framework for future 1992 activity. She observed that this
theme was compatible with Council's interest in the environment, cultural and
historic preservation, and the commitment to not adding expensive new projects.
Councilmember Fromme commended Mayor Kirkpatrick on this theme.
Councilmember. Edwards complimented Mayor Kirkpatrick on her insight. '
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March 3, 1992
Councilmember Horak encouraged Council support of the "Year of the River."
Mayor Kirkpatrick stated the Resolution giving Council support will set a
precedent for future mayors and councils.
Burkett affirmed that he would request direction from the entire Council on any
requests by individual members which require substantial staff work or funds and
are inconsistent with the adopted Council Work Plan.
The vote on Councilmember Edwards' motion to adopt Resolution 92-45 was as
follows: Yeas: Councilmembers Azari, Edwards, Fromme, Horak, Kirkpatrick, Maxey,
and Winokur. Nays: None.
THE MOTION CARRIED.
Items Relating to the Transportation Board Adopted
The following is staff's memorandum on this item:
"EXECUTIVE SUMMARY:
' A. Second Reading of Ordinance No. 29, 1992, Amending Chapter 2 of the Code
Relating to Boards and Commissions and Creating the Transportation Board.
This Ordinance, which was unanimously adopted on First Reading on February
18, establishes a Transportation Board to advise City Council on policy
matters pertaining to the City's transportation system. The Board would
advise the Council on transportation related matters such as bikeways,
transit, transportation planning, alternative modes planning and
transportation capital projects. This board would coordinate its review
of these issues with other City boards and commissions to provide Council
with an integrated policy review.
B. Resolution 92-45 Assigning a Councilmember as Liaison to the
Transportation Board.
This Resolution appoints a Councilmember to act as the liaison to the
Transportation Board. Council will need to select a Councilmember prior
to adoption of the Resolution."
Councilmember Horak made a motion, seconded by Councilmember Azari, to adopt
revised Ordinance No. 29, 1992 on Second Reading which includes "air
transportation". Yeas: Councilmembers Azari, Edwards, Fromme, Horak,
Kirkpatrick, Maxey, and Winokur. Nays: None.
I
THE MOTION CARRIED.
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March 3, 1992 ,
Councilmember Maxey made a motion to adopt Resolution 92-46 inserting
Councilmember Edwards' name.
Councilmember Horak proposed inserting the name of Councilmember Fromme.
Councilmember Winokur clarified that Councilmember Fromme is the current liaison
to the Ad Hoc Transportation Committee.
Councilmember Horak spoke in support of Councilmember Fromme as liaison, citing
her limited number of board liaison assignments.
Mayor Kirkpatrick gave her concerns about overinvolvement of a Councilmember in
the actual policy development and functioning of the board.
Councilmember Maxey spoke in favor of choosing a liaison with a connection
between the subject and the community rather than choosing by work load.
Councilmember Azari supported Councilmember Fromme because of her enthusiastic
support in getting the Transportation Board established.
Councilmember Edwards stated his willingness to be the interview partner in the
selection of the members of the Transportation. Board. He identified his present ,
involvements as mostly Council subcommittees, DDA alternate, or Poudre Fire
Authority, with only one liaison position to the Golf Board.
Councilmember Winokur favored review of liaison policies and the nature of the
different boards and commissions.
Councilmember Fromme identified the boards and commissions to which she is
assigned.
Councilmember Horak expressed his interest in participating in the Board
interviews.
City Clerk Wanda Krajicek clarified there is no standard procedure for selecting
an interview partner.
A straw poll was conducted for the liaison with the vote as follows:
Votes for Edwards Votes for Fromme
Edwards Azari
Kirkpatrick Fromme
Maxey Horak
Winokur
Councilmember Horak made a motion, seconded by Councilmember Azari, to adopt
Resolution 92-46 inserting Councilmember Fromme's name. '
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March 3, 1992
Councilmember Fromme specified she would like to choose her interview partner.
The vote on Councilmember Horak's motion to adopt Resolution 92-46 inserting
Councilmember Fromme's name was as follows: Yeas: Councilmembers Azari, Edwards,
Fromme, Horak, Kirkpatrick, Maxey, and. Winokur. Nays: None.
THE MOTION CARRIED.
Other Business
Councilmember Fromme extended an invitation from the Natural Resources Advisory
Board for two Councilmembers to attend its March 14 retreat for the purpose of
determining the best way to interface with Councilmembers. She expressed her
interest in attending.
Will Smith, Chair of the Natural Resources Advisory Board, stated the Board is
seeking direction on the most effective style of communication with the Council.
Councilmember Azari volunteered to participate with Councilmember Fromme.
Mayor Kirkpatrick stated that on March 4 the Colorado General Assembly would be
considering Senate Bill 117 regarding hazardous waste. Besides sending an
' opposition letter, she offered to testify, adding she would only be available
part of the day.
Councilmember Fromme supported Mayor Kirkpatrick's offer to testify.
Councilmember Horak stated he was not available that day, but supported City
officials being in Denver when important bills are considered.
Burkett suggested that staff members could testify when a Councilmember is not
available.
Mayor Kirkpatrick confirmed she would be available to testify part of the day.
Adjournment
The meeting adjourned at 10:30 p.m.
�JGI/V1
Mayor
ATTEST:
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' City Clerk
234