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HomeMy WebLinkAboutMINUTES-10/07/1997-RegularOctober 7,1997 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council -Manager Form of Government Regular Meeting - 6:00 p.m. A regular meeting of the Council of the City of Fort Collins was held on Tuesday, October 7, 1997, at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered by the following Councilmembers: Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Staff Members Present: Fischbach, Roy, Krajicek. Citizen Participation Kelly Ohlson, 2040 Bennington Circle, spoke of the need for continued enforcement of development conditions. Bob Gifford, 1813 Essex Drive, expressed concerns regarding Channel 27 programming and spoke of the need for bicycles to be licensed and properly equipped with lights and reflectors. Heath Hixon, representing CoPirg, spoke of Senate Bill 1180 (Kemp Thorne Bill) that would allow special interest groups access to public lands for timber and mining operations. He stated adoption of the Bill would endanger several species and urged Council to adopt a Resolution opposing Senate Bill 1180. Citizen Participation Follow-up Councilmember Byrne responded to Mr. Ohlson's comments, stating the City Manager has prepared a memo regarding the process to enforce development conditions. Councilmember Smith responded to Mr. Gifford's concerns and clarified the Model Traffic Code requires that bicycles have only front lights and reported bicyclists are ticketed for violating bicycle regulations. Councilmember Mason requested information from Mr. Hixon regarding Senate Bill 1180 for review by the Legislative Review Committee. Councilmember Wanner spoke of the need to include examples of problems which have occurred with enforcement of development issues. 95 October 7, 1997 Agenda Review City Manager John Fischbach stated there were no changes to the Agenda as published. CONSENT CALENDAR Consideration and approval of the regular meeting minutes of March 18, April 1. April 15, May 6, May 20, June 3, June 17, July 1 and July 15 and the adjourned meeting minutes of February 25, April 22, May 13, July 8 and July 29. 8. Second Reading of Ordinance No. 137, 1997 Amending Chapter 26 of the City Code to Authorize the Water Utility Enterprise to Have and Exercise Certain Powers in Furtherance of its Purposes. Article X, Section 20 of the State Constitution provides the ability to create enterprises. The City of Fort Collins acted to establish its electric, water, wastewater, and stormwater utilities as enterprises subsequent to the passage of Article X. Legal interpretations of the section suggest that the City amend the Code to clarify the powers of the enterprises. Prior to issuing bonds for the wastewater and stormwater utilities, corresponding sections of the Code have been modified. Now, as the Water Utility is contemplating an issuance of bonds, staff is recommending the appropriate changes to the Code relating to the Water Utility. 9. Second Reading of Ordinance No. 138, 1997 Appropriating Federal Grant Revenue and Authorizing the Transfer of Appropriations Between Projects in the Transportation Services Fund for the Operation of the North Front Range Transportation & Air Quality Planning Council's 1997-1998 Metropolitan Planning Organization Administration Program Year. The North Front Range Transportation & Air Quality Planning Council ("NFRT&AQPC") is the regional Metropolitan Planning Organization. The administration/program budget for NFRT&AQPC is funded with federal transportation program dollars administered by the Colorado Department of Transportation ("CDOT") based on the federal fiscal and program year of October 1, 1997 to September 30, 1998. This period does not correspond to the City's calendar year appropriation time frame, and this time differential causes some accounting and budget management problems. Ordinance No. 138, 1997, which was unanimously adopted on First Reading on September 16, 1997, enables staff to more consistently manage and track the NFRT&AQPC's budget and expenditures. The proposed budget and appropriation for the 1997-1998 program year is $420,468 for administration of the NRFT&AQPC. Is October 7. 1997 10. First Reading of Ordinance No. 139, 1997, Amending Article III of Chapter 17 of the City Code Pertaining to Offenses Against Property. Like the State, the City of Fort Collins has maintained laws in its Code against theft. Currently, under State law, such crimes may be considered either a misdemeanor or a felony, depending upon the amount of dollar loss. Under the City Code such crimes are misdemeanors. Effective July, 1997, the Colorado General Assembly changed the jurisdictional amounts for the crime of theft by raising the break point between misdemeanor and felony thefts from $400 to $500. The Code currently uses the prior break point of $400. This Ordinance amends Section 17- 36 to raise the value limit of stolen property to $500, consistent with State statutes relating to theft of property. 11. First Reading of Ordinance No. 140, 1997, Appropriating Prior Year Reserves and Unanticipated Revenue in Various Funds and Authorizing the Transfer of Appropriated Amounts Between Funds. This Ordinance appropriates prior year reserves and unanticipated revenue in various City funds, and authorizes the transfer of appropriated amounts between funds. The City Charter permits the City Council to provide by ordinance for payment of any expense from prior year reserves. The Charter also permits the City Council to appropriate unanticipated revenue received as a result of rate or fee increases or new revenue sources. Additionally, it authorizes the City Council to transfer any unexpended appropriated amounts from one fund to another upon recommendation of the City Manager provided the purpose for which the transferred funds are to be expended remains unchanged; or the purpose for which they were initially appropriated no longer exists; or the proposed transfer is from a fund or capital project account in which the amount appropriated exceeds the amount needed to accomplish the purpose specified in the appropriation ordinance. If these appropriations are not approved, the City runs the risk of receiving an unfavorable opinion from its auditors, or being in violation of the City Charter if appropriations are exceeded, or having to reduce expenditures even though revenue and reimbursements have been received. 12. First Reading of Ordinance No. 141, 1997, Authorizing the Transfer of Appropriated Amounts for the Flood Recovery Project. In August of this year Emergency Ordinance No. 132, 1997 was passed appropriating $2.5 million in the General Fund for expenses related to the Spring Creek flood. Article V, Section 4 of the City Charter states that appropriations for federal or state grants shall be 97 October 7, 1997 summarized by individual project or grant. Furthermore, accounting for large grants is better accomplished in a separate fund where grant revenues and expenditures, and related City matching monies, can be separately identified and segregated from general governmental operations. Due to the sizeable amount of federal and state funding to be received pertaining to the flood recovery effort, and the nature of the expenditures, the Flood Recovery Effort is properly classified as a project. In accordance with the City Charter, the Financial Officer has created a new fund called the Flood Recovery Fund. This item authorizes the transfer of appropriations from the General Fund to the Flood Recovery Fund, along with all related expenditures previously accrued, and appropriates $2,500,000 therein for expenditures pertaining to the Flood Recovery Project. 13. First Reading of Ordinance No 142, 1997, Appropriating Unanticipated Revenue and Prior Year Reserves in the Benefits Fund to Cover Medical Insurance Claims. The Benefits Fund requests the possible use of unappropriated insurance recovery funds along with prior year reserves to cover additional expenses anticipated through the remainder of 1997. The total being requested for possible use is $600,000. 14. First Reading of Ordinance No. 143, 1997, Appropriating Unanticipated Revenue in the General Fund for the Community Mediation Program. This Ordinance appropriates $43,924 in unanticipated revenue for the Community Mediation Program. The funds will be used by the Neighborhood Resources Office to implement a free dispute resolution service for citizens of Fort Collins. 15. First Reading of Ordinance No. 144, 1997, Authorizing the Purchasing Agent to Enter into an Agreement for the Lease -Purchase Financing of a New Finance System. This Ordinance will authorize the Purchasing Agent to enter into a lease -purchase financing agreement with Koch Financial Corporation at 5.28 percent interest rate. The agreement shall be for an original term from the execution date of the agreements to the end of the current fiscal year. The agreement shall provide for renewable one-year terms thereafter, to a total term of five years, subject to annual appropriation of funds needed for lease payments. The total lease terms, including the original and all renewal terms, will not exceed the useful life of the property. This lease -purchase financing is consistent with the financial policies of the City of Fort Collins. W. October 7, 1997 16. Items Relatine to the Purchase and Temporary Relocation of the Colorado State Highway Patrol Office in Connection with the Timberline Road Improvements Project. A. Resolution 97-136 Authorizing the Purchase of the Colorado Highway Patrol Office and Related Improvements Needed for the Construction of Timberline Road Improvements. B. First Reading of Ordinance No. 145, 1997, Authorizing a Ground Lease at the Transfort Facility to the State of Colorado, Colorado State Patrol Division (CSP) for the Temporary Relocation of the Highway Patrol Office in Fort Collins. The construction of the Timberline Road Improvement Project affects the garage area of the CSP office on Mulberry Street. As a result, to proceed with the Project, the City will be required to either construct a new garage area and alter the access to the CSP Office or purchase the building and cooperate with the relocation of the CSP. The CSP has been considering the relocation of its Fort Collins office to a location nearer to I-25 for quite some time, and a relocation would eliminate an access problem raised for the CSP by the new intersection at Timberline and Mulberry. On this basis, it was decided that the relocation option was the best alternative for both the City and CSP. If the Council approves the temporary ground lease to CSP of an area of the Transfort Facility, pending completion of a permanent new facility at a different site, the total City cost to resolve the right-of-way issue raised by CSP's facility is estimated to be $77,280, which is the appraised value of the existing CSP improvements on Mulberry that the City is purchasing. 17. First Reading of Ordinance No 146 . 1997, Authorizing the Lona-Term Lease of Property at the Fort Collins -Loveland Municipal Airport for the Construction of an Aircraft Hangar. The Airport Manager has negotiated a twenty-five year lease of property with James Grubbs for the construction of an aircraft hangar. Mr. Grubbs will build a hangar that will provide at least 3,840 square feet of aircraft storage space. At the expiration of the lease, the improvements revert to the ownership of the Cities. 18. First Reading of Ordinance No 147, 1997, Authorizing the Long -Term Lease of Property at the Fort Collins -Loveland Municipal Airport for the Construction of an Aircraft Hangar. The Airport Manager has negotiated a twenty-five year lease of property with David F. Klink for the construction of an aircraft hangar. David F. Klink will construct a hangar that will provide at least 2,500 square feet of aircraft storage space. At the expiration of the lease, the improvements revert to the ownership of the Cities. October 7. 1997 19. First Reading of Ordinance No. 148, 1997, Designating the J. C. Beers Barn, 311 Whedbee Street, as a Local Landmark Pursuant to Chapter 14 of the City Code. The owners of the Property, John Gless and Tamela Wahl, are initiating this request for Local Landmark designation for the J. C. Beers Barn, 311 Whedbee Street. The building is significant for its architectural importance, and is an excellent example of a vernacular 1 %2 story barn. 20. First Reading of Ordinance No. 149, 1997, Designating the Willard and Gladys Eddy House and Shared Barn. 509 Remington Street, as a Local Landmark Pursuant to Chapter 14 of the City Code. The owner of the Property, Gladys Eddy, is initiating this request for Local Landmark designation for the Willard and Gladys Eddy House and Shared Barn, 509 Remington Street. The house is important for its architecture and for its association with Willard and Gladys Eddy, who have had a significant impact on the development of CSU and on the city of Fort Collins. The barn dates from the period of significance and contributes to the historical character of the property. 21. First Reading of Ordinance No. 150, 1997, Desi ng ating the G. R. McDaniel House I. 632 Peterson Street, as a Local Landmark Pursuant to Chapter 14 of the City Code. The owners of the Property, James R. Allen and Julie Morton, are initiating this request for Local Landmark designation for the G. R. McDaniel House I, 632 Peterson Street. The house is significant for its architecture. 22. First Reading of Ordinance No. 151, 1997, Desi ng ating the Fred W. Stover House. Garage, and Shared Barn. 515 Remington Street, as a Local Landmark Pursuant to Chapter 14 of the City Code. The owner of the Property, Carl E. Patton II1, is initiating this request for Local Landmark designation for the Fred W. Stover House, Garage, and Shared Barn, 515 Remington Street. The house is significant for its architecture and for its association with Fred W. Stover, a Fort Collins judge and mayor. The hipped -roof brick garage dates to the period of significance and contributes to the historical character of the property. It is also an example of an early heated garage. The barn is a wood framed structure shared with 509 Remington Street. One of the few remaining barns in the Eastside Neighborhood, the barn dates from the period of significance and contributes to the historical character of the property. As such, it is also eligible to be designated as a local landmark. 100 October 7, 1997 23. First Reading of Ordinance No. 153, 1997, Amending Section 2.8.4(B) of the Land Use Code. Section 2.8.4(B) of the Land Use Code requires the holding of a neighborhood meeting with respect to all "quasi-judicial' rezonings. A quasi-judicial rezoning is defined as any rezoning of 640 acres or less in size. Many quasi-judicial rezonings will not be controversial and it is staff s recommendation that the requirement of a neighborhood meeting be amended to state that the Director may convene a neighborhood meeting in those circumstances where there is known controversy or where the quasi-judicial rezoning presents significant neighborhood impacts. This way, the Director can determine whether to hold a neighborhood meeting or not. 24. Resolution 97-131 Finding Substantial Compliance and Initiating Annexation Proceedings for the REA Annexation. The applicant, Cityscape Urban Design, on behalf of the property owner, Spradley Barr, has submitted a written petition requesting annexation of 9.39 acres located south of Harmony Road and west of South College Avenue. The property contains an existing large building (previously the Poudre Valley REA headquarters and facilities) which is currently vacant. The requested zoning for this annexation is C - Commercial. The surrounding properties are zoned C - Commercial (to the north), C - Commercial (to the east) in the City and FA1 - Farming (to the west), T - Tourist (to the south) in Larimer County. The proposed Resolution makes a finding that the petition substantially complies with the Municipal Annexation Act, determines that a hearing should be established regarding the annexation, and directs that notice be given of the hearing. The hearing will be held at the time of First Reading of the annexation and zoning ordinances on November 18. Not less than thirty days of prior notice is required by State law. 25. Items Relatingto o Udy Subdivision County Referral. A. Resolution 97-132 Recommending Approval of a Waiver of the UGA Contiguity to Existing Development Phasing Criteria Requirement for the Udy Subdivision. B. Resolution 97-133 Recommending Approval of a Waiver to the UGA Public Street Capacity Phasing Criteria Requirement for the Udy Subdivision. This Agenda Item Summary discusses two separate waiver requests by the developer of the Udy Subdivision County referral. The first is a waiver request to the 1/6 contiguity to existing development phasing criteria requirement. The second request is to exempt the 101 October 7. 1997 proposed development from the off -site street improvement requirements of the Intergovernmental Agreement (IGA) for the Fort Collins Urban Growth Area. 26. Resolution 97-134 Authorizing Assignment to the Colorado Housing and Finance Authority of a Private Activity Bond Allocation of the City of Fort Collins Pursuant to the Colorado Private Activity Bond Ceiling Act. The Colorado Housing Finance Authority is planning a fall 1997 single family mortgage bond program. The program will provide financing for below market mortgages for families that meet low and moderate income guidelines. CHFA has offered the city of Fort Collins an opportunity to participate in the program. CHFA is asking that the City assign its 1998 private activity bond allocation to CHFA. The estimated amount of the 1998 allocation is $2.6 million. This would provide about 40 mortgages. Due to the displacement of households from the flood, CHFA has offered to match the City's allocation with an additional $2.6 of its allocation. In essence the City will be doubling the size of its allocation by working with CHFA. The Affordable Housing Board met on October 2nd to review the program and its recommendation is in the read before the meeting file. The CHFA bond issue will be about $43 million, of which $5 million will be for mortgages in the Fort Collins area. Mortgage money should become available in November, 1997. 27. Resolution 97-135 Making An Appointment to the Air Quality Advisory Board. A vacancy currently exists on the Air Quality Advisory Board due to the resignation of Don Keller. Councilmembers Mason and Smith reviewed the applications on file and are recommending Mandar Sunthankar to serve on the Air Quality Advisory Board with a term to begin immediately and to expire June 30, 2001. 28. Routine Deeds and Easements. A. Deed of Easement from Garnet M. Gordon for access and maintenance of Hyde Natural Area. Monetary consideration: $10. B. Deed of Easement from Barbara R. Gibbs for access and maintenance of Hyde Natural Area. Monetary consideration: $1100. C. On the August 5, 1997 City Council Agenda, the City Council accepted a public utility easement from William R. and Sharyl D. Haas. The 4,350 square foot easement was obtained for a consideration of $3,262.50. The easement was required for the installation of a three phase electric tie to increase the service reliability in the southwest portion of the City. The Haas' property is outside the city limits, not 102 October 7, 1997 served by Fort Collins Light and Power, and did not directly benefit from the installation of the electric line. Items on Second Reading were read by title by City Clerk Wanda Krajicek. 8. Second Reading of Ordinance No. 137, 1997 Amending Chapter 26 of the City Code to Authorize the Water Utility Entemrise to Have and Exercise Certain Powers in Furtherance of its Purnoses. 9. Second Reading of Ordinance No. 138, 1997 Appropriating Federal Grant Revenue and Authorizing the Transfer of Appropriations Between Projects in the Transportation Services Fund for the Operation of the North Front Range Transportation & Air Quality Planning Council's 1997-1998 Metropolitan Planning Organization Administration Program Year. Items on First Reading were read by title by City Clerk Wanda Krajicek. 10. First Reading of Ordinance No. 139, 1997, Amending Article III of Chapter 17 of the Cit_v Code Pertaining to Offenses Against Property. 11. First Reading of Ordinance No. 140, 1997, Appropriating Prior Year Reserves and Unanticipated Revenue in Various Funds and Authorizing the Transfer of Appropriated Amounts Between Funds. 12. First Reading of Ordinance No. 141, 1997, Authorizing the Transfer of Appropriated Amounts for the Flood Recovery Project. 13. First Reading of Ordinance No. 142, 1997, Appropriating Unanticipated Revenue and Prior Year Reserves in the Benefits Fund to Cover Medical Insurance Claims. 14. First Reading of Ordinance No. 143, 1997, Appropriating Unanticipated Revenue in the General Fund for the Community Mediation Program. 15. First Reading of Ordinance No. 144, 1997, Authorizing the Purchasing Agent to Enter into an Agreement for the Lease -Purchase Financing of a New Finance System. 16. First Reading of Ordinance No. 145, 1997, Authorizing a Ground Lease at the Transfort Facility to the State of Colorado. Colorado State Patrol Division (CSP) for the Temporary Relocation of the Highway Patrol Office in Fort Collins 17. First Reading of Ordinance No. 146 . 1997, Authorizing the Long -Term Lease of Property at the Fort Collins -Loveland Municipal Airport for the Construction of an Aircraft Hangar. 103 October 7, 1997 18. First Reading of Ordinance No 147, 1997, Authorizing the Long -Term Lease of Property at the Fort Collins -Loveland Municipal Airport for the Construction of an Aircraft Hangar. 19. First Reading of Ordinance No 148, 1997, Designating the J. C. Beers Barn, 311 Whedbee. Street as a Local Landmark Pursuant to Chapter 14 of the City Code. 20. First Reading of Ordinance No 149 1997, Designating the Willard and Gladys Eddy House and Shared Barn509 Remington Street, as a Local Landmark Pursuant to Chapter 14 of the City Code. 21. First Reading of Ordinance No 150, 1997, Designating the G. R. McDaniel House I, 632 Peterson Street, as a Local Landmark Pursuant to Chapter 14 of the City Code. 22. First Reading of Ordinance No. 151, 1997, Desi ng ating the Fred W. Stover House, Garage, and Shared Barn. 515 Remington Street, as a Local Landmark Pursuant to Chapter 14 of the City Code. 23. First Reading of Ordinance No 153, 1997, Amending Section 2.8.4(B) of the Land Use Code. 32. Public Hearing and First Reading of Ordinance No. 152, 1997, Issuing Multifamily Housing Revenue Bonds for the Bull Run Townhomes Pro*ect. Councilmember Smith made a motion, seconded by Councilmember Wanner, to adopt and approve all items not removed from the Consent Agenda. Yeas: Councilmembers Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None. THE MOTION CARRIED. Staff Reports City Manager John Fischbach reported on the appointments to the Transportation Funding Committee and stated he was optimistic that the Committee's work would be completed within 6 months. He gave a brief report on the flood, stating the contractors have completed clean-up of the mobile home parks and all hazards had been removed. He reported there would be a community meeting to report on the amount of federal funds that have been received and on how the money would be distributed. He stated there would be a community celebration to thank everyone for their efforts in flood assistance. Neighborhood Resources Manager Tess Heffernan reported on a grant received to operate a Community Mediation Program for one year and of spoke of the Program's objectives. 104 October 7, 1997 Councilmember Reports Councilmember Smith stated the Metropolitan Planning Organization met and discussed funding allocations. Councilmember Kneeland reported on a recent Health and Safety Committee meeting stating youth access to tobacco was discussed. She reported on the progress of Human Relations Ordinance Task Force, and creating guidelines for the Citizen Review Board. Councilmember Wanner spoke of a grant recently awarded to Centennial High School for implementation of a smoking cessation program. Councilmember Byrne reported the Finance Committee met with staff from the Coloradoan to brief them on the revenue retention issue on the November 4th ballot. He confirmed that citizens would continue to vote on tax increases and stated the ballot issue would allow the City to retain revenues above the growth cap. Councilmember Bertschy reported the Prairie Dog Management Committee met and gave a brief update on its progress. Mayor Azari reminded everyone that October was Breast Cancer Awareness Month. Consideration of the Appeal of the August 21, 1997 Determination of the Planning and Zoning Board to Approve the Seedlings Preschool and Day Camp, Fairbrooke P.U.D. Lot 42 (1733 Somerville Drive), Project Development Plan/Final Plan, Decision of the Planning and Zoning Board Upheld. The following is staff's memorandum on this item. "Executive Summary On August 21, 1997, the Planning and Zoning Board approved the Seedlings Preschool and Day Camp for up to twelve (12) children to be located at the residence of the Applicant (1733 Somerville Drive). The property is zoned RL-Low Density Residential and is a permitted use as a Type 2, Planning and Zoning Board, review. The site is located on Lot 42 of the Fairbrooke P. U.D. (1733 Somerville Drive), south of Prospect Road, and east of Overland Trail. 105 October 7, 1997 On September 3, 1997, a Notice of Appeal was received by the City Clerk's office regarding the decision of the Planning and Zoning Board. An Amended Notice of Appeal was received on September 19, 1997. In the Amended Notice of Appeal by the Appellants Troy and DeAnn Schroeder, Ben and Fernando Chouaf, and Matt and Kris Zuber, it is alleged that the Planning and Zoning Board failed to conduct a fair hearing considering evidence relevant to its findings which was substantially false or grossly misleading. The Appellants put forth the following points: • During the board meeting, a motion was made to put some conditions on the daycare. The board member with the one strong vote against the motion stated that she saw no reason for conditions to be used since the daycare owners were doing this as a non-profit organization. No one corrected her so we assume that all board members believed this was the case. The daycare is definitely a for prof t endeavor. This misunderstanding may have influenced some of the board members and directly affected the motion for placing conditions on the daycare. • Another potential area of misunderstanding is with the proposed 12-passenger van purchase by the daycare owners. The daycare owners stated they would provide pick-up and drop-off service for the children to limit the increased traffic and parking in front of our homes. We absolutely do not believe this proposal is feasible. An individual was not identified to shuttle the children. Licenses need to be obtained to operate the vehicle, and significant financial resources need to be used to purchase a 12 passenger van. Once again, no condition was placed to ensure the van was to be purchased. It was clear that this proposal by the daycare owners was the primary factor in the Board's decision to approve the proposal. " City Attorney Steve Roy briefly outlined the appeal process, clarifying the definition of parties -in - interest and spoke of the appellants allegations. Mayor Azari clarified process and the time limits imposed. City Planner Leanne Harter gave a staff presentation on this item outlining the location of the proposed project. She clarified childcare centers are a permitted use in the R-L District subject to Planning and Zoning Board review. At the request of Council she presented a brief slide presentation showing the proposed project location. She responded to Council questions regarding the number of children allowed before review by the Planning and Zoning Board. Appellants Femanda Chauaf, 1715 Sommerville Drive, expressed concerns regarding traffic impact and believed that a daycare center would decrease the value of her property and expressed concerns regarding noise. She expressed concerns regarding the operation of a 12-passenger van questioning if special 1: October 7, 1997 operating licenses would need to be required. She emphasized this project was not acceptable for a residential area. Applicants Heather Smith, 1733 Somerville, co -applicant, responded to allegations made by the appellant and stated she believed conditions were not placed on the daycare center because they were not appropriate for the land use. She spoke of requirements regarding the number of children vs. employees reporting state law requires an aide to work in a center where more than 8 children are in attendance and stated there is no special operating license needed to transport less than 16 passengers. She clarified she is not required by state law to place a restriction on her hours since the preschool would be on the main floor of her residence. Allen Strobe, 2720 Raywass Way, representing numerous neighbors, supported Seedling Preschool and believed the preschool would be a benefit to the neighborhood. Kathy Niswender, 1739 Somerville Drive, supported the Seedling Preschool. She stated current traffic in the area was minimal and did not believe traffic would be a problem in the future. Rebuttal Ben Chauof, 1715 Somerville Drive, stated there were already three daycare centers within a short distance and believed another one would eventually create a traffic problem. Fernanda Chauof, 1715 Somerville Drive, reemphasized noise and quality of life issues. Sur Rebuttal Heather Smith, 1733 Somerville Drive, clarified her property meets the zoning requirement of being 1500 feet away from an existing daycare center. Assistant City Attorney Paul Eckman clarified, as defined in use -by -right, a daycare center of 6 or less children was acceptable and considered an accessory use to a residential use. He spoke of various recourses that could be taken with regard to noise and traffic issues caused by home based businesses. He clarified the Planning and Zoning Board did not impose regulations regarding hours of operation. Heather Smith responded to Council comments regarding State licensing requirements. Eckman stated that at point of sale the residence could continue to be used as a daycare center if the that were the desire of the new owners. 107 October 7, 1997 Councilmember Wanner made a motion, seconded by Councilmember Kneeland, to uphold the decision of the Planning and Zoning Board. Yeas: Councilmembers Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None. THE MOTION CARRIED. Public Hearing and First Reading of Ordinance No. 152, 1997 Issuing Multifamily Housing Revenue Bonds for the Bull Run Townhomes Project, Adopted on First Reading. The following is staffs memorandum on this item. "Executive Summary On January 7, 1997, the City, through the adoption of Resolution 97-3 set forth its intent to issue multi family revenue bonds for the Bull Run Project. The Project met the criteria established by the State and was reviewed and recommended to the Council by the Affordable Housing Board. The Project is a rental housing project designed and priced for low income rental. The project is located in northeast Fort Collins. The total numbers of units is expected to be 176 on approximately 16 acres. All units will be for individuals or households making less than 60% of the area median income. The total cost ofthe project will be S13.9 million. The amount of tax-exempt bonds issued by the City will be $8.3 million. BACKGROUND One of the Council 's top priority work plan items for the past several years has been to increase the quality and quantity of affordable housing. In 1984, the Council adopted policies for the use of tax exempt bonds to acquire, rehabilitate, or maintain the supply of low income housing. Through the adoption of the inducement ordinance in January for this project, the City made a commitment to issue the bonds if an allocation could be secured from the State and suitable financing could be developed. These efforts are now complete and the developer, Brisben Companies, is requesting that Council adopt the Ordinance that will allow the bonds to be sold. The Project The Bull Run project is to be a 176 unit multifamily project in northeast Fort Collins at the intersection of East Vine Drive and County Road 9E. The project will contain 80 two -bedroom units, 78 three -bedroom units, and 18 four -bedroom units. The project is designed as a townhouse complex with two-story buildings of] to 12 units each. The project will have a], 750 square foot clubhouse, recreation center, sport court, volleyball court and a pool. A community meeting room for resident uses will be included in the clubhouse. The site is a 16 acre tract of land. All planning and zoning requirements have been met. 108 October 7, 1997 The proponents state that tenancy will be restricted to residents making not greater than 60% of the area median income. Further restrictions will be placed on 20% of the units making no more than 50% of median income. Rental rates will be restricted to 30% of targeted income and be regulated by deed restrictions of the tax credit allocation. THE FINANCING Total Estimated Project Cost $ 13,900,000 Investor Equity 8 3,200,000 Developer Fees $ 700,000 Taxable Financing to be Secured by Developer .S 1,700,000 Tax -Exempt Private Activity Bond Proceeds from City Issue $ 8,300,000 To obtain lower interest costs during the construction period, the financing will be a variable floating rate. Upon completion of the project, the bonds will be converted to fixed rate. While this financing structure adds complexity to the financing, it is estimated that it will lower the interest costs by approximately 1 %. These savings will help the project sponsor maintain the desired lower rental rates. " Finance Director Alan Krcmarik gave a staff presentation on this item and briefly defined Multi- family revenue bonds and described the project. Scott McFadden, Western Region Development Director for the W.R. Brisbone Companies, stated his company is the 7th largest multi -family developer in the United States and the largest developer of affordable housing projects. He reported on the location, size and rents for the Bull Run Townhome project and emphasized restrictions would remain in place for 25 years. He responded to Council questions regarding property management and the timeframe for beginning construction. Councilmember Smith made a motion, seconded by Councilmember Bertschy, to adopt Ordinance No. 152, 1997 on First Reading. Yeas: Councilmembers Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None. THE MOTION CARRIED. Int October 7, 1997 PUBLIC HEARING ON THE PROPOSED 1998 BUDGET City Manager John Fischbach spoke of the schedule for public input and reported on the location of copies of the Budget in Brief. He clarified comments have not been received either via the Internet or telephone. Deb Ham, a Fort Collins resident, spoke in support of an additional Therapeutic Recreation Therapist position. Brenda Dennis, 1000 East Stuart Street #M10 and residing in a long term care facility, concurred with comments made by the previous speaker and urged support of an additional Therapeutic Recreation Therapist position. Kelly Ohlson, 2040 Bennington Circle, urged Council to reconsider construction of new City facilities and Use Tax Rebates for major corporations within the City. He requested Council reexamine salary surveys and for profit tournaments. He urged additional financial resources for natural resources development, and development conditions enforcement. Councilmember Smith questioned how much of the Use Tax Rebate is returned and what happens to funds not rebated. Finance Director Alan Krcmarik responded to Council questions regarding Use Tax Rebates and stated funds not rebated remain in the Sales and Use Tax Fund until transferred into the General Fund. He stated companies eligible for rebates have one year to apply. Councilmember Kneeland spoke of the possibility of using interns for therapeutic programs. She responded to Mr. Ohlson's comments regarding the vehicle fleet issue and requested additional information regarding the cost effectiveness of "rolling over" the fleet every three years. City Manager John Fischbach reported Council adopted an Ordinance earlier in the year allowing the City Manager to adopt fee schedules (increases). Councilmember Byrne spoke in support of the two-year budget process, stating the process would allow Council and staff to improve in core areas and to prioritize more efficiently. 110 Ad The meeting adjourned at 8:30 p.m. ATTEST: II . 1 `��, fir. (. - \ 111 October 7, 1997