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HomeMy WebLinkAboutMINUTES-11/02/1993-RegularNovember 2, 1993 ' COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council -Manager Form of Government Regular Meeting - 6:30 p.m. A regular meeting of the Council of the City of Fort Collins was held on Tuesday November 2, 1993, at 6:30 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll call was answered by the following Councilmembers: Apt, Azari, Horak, Janett, Kneeland, McCluskey and Winokur. Staff Members Present: Burkett, Krajicek, Roy. Citizen Participation Al Baccili, 520 Galaxy Court, questioned how weed control was connected to the E911 charges. Mayor Azari stated she would respond to Mr. Bacilli's inquiries in writing. Gary Peterson, 1805 Crestmore Place, questioned a recent DARE program analysis Council received from Police Chief Rainguet. He asked Council if an audit of the DARE program could be obtained. ' Bob Cluster, a Fort Collins resident, spoke of the need for effective drug prevention education. He stated although the DARE program is delivered well by officers, it is conceptually poor and in need of redevelopment. Tim Johnson, a Fort Collins resident, requested Council send a letter to Governor Romer and the State Land Board opposing a ski resort at Cameron Pass. Citizen Participation Follow-up Councilmember Horak responded to the request for audit information of the DARE program and clarified the numbers only reflect what the City of Fort Collins is putting into the program. Councilmember Winokur asked if the Legislative Review Committee would examine Mr. Johnson's request and return to Council with a recommendation in the form of a resolution. Councilmember Janett spoke of a letter in Council packets from the Larimer County Commissioners expressing concerns regarding the proposed ski resort project. She stated she intended to request, under the Other Business portion of the meeting, a resolution regarding the proposed ski resort. Councilmember Horak requested the Water Board and Water Utility examine the ski resort issue noting the City has an interest in the proposal due to having water ' rights in and around the area. 376 November 2, 1993 ' Council member Janett spoke of traffic impacts of the proposal. She stated it was important for Council to look at the effectiveness of the DARE program. .She questioned the effectiveness of the Police Department performing the program evaluation. Agenda Review Mayor Azari stated due to a lengthy agenda she requested the City Manager postpone Item #34, First Reading of Ordinance No. 146, 1993, Amending Chapter 15 of the Code Relating to Licenses and Business Regulations. City Manager Steve Burkett stated there were minor revisions to Item #15, Items Relating to Amendments to Chapter 17 of the City Code and Model Traffic Code. City Manager Steve Burkett stated property owners requested Item #17, Items Relating to the Kirschner Annexation and Zoning, be withdrawn from the Agenda, and Item #22, First Reading of Ordinance No. 145, 1993, Authorizing the Transfer of Appropriations From the Mason/Howes Phase 17 Capital Project to the "North College Avenue Enhancement Capital Project" and Authorizing the City Manager to Enter Into a Contract With The State of Colorado For The Enhancement Items For The New State Highway Bridge Over The Poudre River on North College Avenue, be withdrawn and placed on the November 16 Agenda. City Manager Steve Burkett stated a revised Item #32, Resolution 93-168 Authorizing Reductions in Costs for the New Senior Citizen Center Project, was included in Council's the "Read Before the Meeting" folder. He clarified Item #34, First Reading of Ordinance No. 146, 1993, Amending Chapter 15 of the Code Relating to Licenses and Business Regulations, would be rescheduled for an adjourned meeting on November 23. City Manager Steve Burkett stated additional information has been provided for Council on Item #36, Resolution 93-170 Authorizing the City Manager to Enter into an Agreement Regarding the Opera House Project, noting revisions to the agreement have been made. Councilmember Janett requested Item #16, Items Relating to the Fossil Creek Estates Annexation and Zoning, and Item #23, Resolution 93-163 Amending the South College Access Plan, be withdrawn from the Consent Calendar. 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 377 the Consent Calendar Consent Calendar will Consent Items. 11. 12. 13. November 2, 1993 and considered separately. Agenda items pulled from the be considered separately under Agenda Item #29, Pulled Ordinance No. 122, 1993 which was unanimously adopted on First Reading on October 19, appropriates prior year reserves and unanticipated revenue in various City funds; and, authorizes the transfer of appropriated amounts between funds. The City Charter authorizes the City Council to provide by ordinance for payment of any expense from prior year reserves. It also authorizes the City Council, after the expiration of eight months of the budget year, to appropriate by ordinance actual revenue realized in excess of budget estimates to any purpose recommended by the City Manager. The Charter also authorizes 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. Ordinance No. 123, 1993 which was unanimously adopted on First Reading on October 19, appropriates $185,000 in unanticipated revenue for the construction of three traffic signals on US Highway 287. The State Department of Transportation will reimburse the City for 100% of the project costs up to $185,000. Second Reading of Ordinance No. 124, 1993, Appropriating Prior Year Reserves in the Wastewater Fund. Ordinance No. 124, 1993, which was unanimously adopted on First Reading on October 19, 1993 appropriates $755,000 from the Utility's reserves in the Wastewater Fund for the purchase .of 7,550 acres of land from Terra Resource Corporation. The $755,000 purchase price is expected Wastewater Capital Reserve Fund within Utility property. 378 to be recouped and returned to the five years, by sale of other excess 14. 15. November 2, 1993 Police Services has been awarded a grant totalling $75,000 from the Colorado Department of Transportation, Office of Transportation Safety for funding a Law Enforcement Assistance Fund project for the prevention of drunken driving and the enforcement of laws pertaining to driving under the influence of alcohol or other drugs. The grant will provide for the majority of the salary, benefits, and capital equipment for one additional DUI officer who is assigned to drunk driving enforcement. The City will provide matching funds in the amount of $96,244. These funds have been included in the 1994 proposed budget in the Police ,.,Services programs. Ordinance No. 125, 1993 which was unanimously adopted on First Reading on October 19, appropriates $75,000 in grant funds for expenditure in the Police Services 1994 DUI Enforcement Program. Items Relating to Amendments to Chapter 17 of the City Code and Model Traffic Code. A. Second Reading of Ordinance No. 126, 1993, Amending Section 28- 17(26) of the Code of the City of Fort Collins Relating to Abandoned Vehicles Under the "Model Traffic Code for Colorado Municipalities," 1977 Edition. B. Second Reading of Ordinance No. 127, 1993, Amending Section 17-1 to Add the Definition of "Thing of Value." C. Second Reading of Ordinance No. 128, 1993, Amending Section 28-17 of the Code of the City of Fort Collins Relating to the Addition of the Requirement of Compulsory Insurance for Motor Vehicles Under the "Model Traffic Code for. Colorado Municipalities," 1977 Edition. D. Second Reading of Ordinance No. 129, 1993, Amending Section 28- 17(19) of the Code of the City of Fort Collins Relating to Window Obstructions and Tinted Windows of Motor Vehicles Under Section 19-4 of the "Model Traffic Code for Colorado Municipalities," 1977 Edition. Second Reading of Ordinance No. 130, 1993, Amending Chapter 17 of the Code of the City of Fort Collins Relating to Miscellaneous Offenses. 91111 I November 2, 1993 These ordinances, which were unanimously adopted on First Reading on October 19, would amend the definition of abandoned vehicle in the City Code to include abandoned vehicles on public property; to add to the City Code the definition of "thing of value" to specifically include services; to add to the City Code the requirement of compulsory automobile insurance; to add to the City Code restrictions on tinted windows; to add to the City Code the violation of complicity; and to add to the City Code the corporate responsibility for criminal offenses. . 16. Items Relating to the Fossil Creek Estates Annexation and Zoning. Second Reading of Ordinance No. 131, 1993, Annexing Approximately 31.12 Acres, Known as the Fossil Creek Estates Annexation. Second Reading of Ordinance No. 132, 1993, Amending the Zoning District Map Contained in Chapter 29 of the Code of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Fossil Creek Estates Annexation to the City of Fort Collins, Colorado. On October 19, Council unanimously adopted Resolution 93-153 Setting Forth Findings of Fact and Determinations Regarding the Fossil Creek Estates ' Annexation. On October 19, Council also unanimously adopted Ordinance No. 131, 1993 and Ordinance No. 132, 1993 which annex and zone approximately 31.12 acres located west of South Shields Street approximately one mile south of Harmony Road, approximately 1/4 mile west of the southwest corner of South Shields Street and Fossil Creek Drive (extended). The annexation consists of one parcel of land under single ownership. The property is currently vacant and zoned FA-1, Farming, in the County. The proposed zoning is R- L-P, Low Density Planned Residential, with a Planned Unit Development (PUD) condition. This is a voluntary annexation. APPLICANT: Dr. Richard Wuerker c/o Jim Sell Design 117 East Mountain Avenue Fort Collins, CO 80524 OWNER: Dr. Richard Wuerker 363 West Drake Road Suite Fort Collins, CO 80526 17. Items Relating to the Kirschner Annexation and Zoning. Second Reading of Ordinance No. 133, 1993, Annexing Approximately 72.6 Acres, Known as the Kirschner Annexation. ' 380 19. November 2, 1993 B. Second _Reading of Ordinance No. 134, 1993, Amending the Zoning District Map Contained in Chapter 29 of the Code of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Kirschner Annexation to the City of Fort Collins, Colorado. On October 19, Council unanimously adopted Resolution 93-154 Setting Forth Findings of Fact and Determinations Regarding the Kirschner Annexation. On October 19, Council also unanimously adopted Ordinance No. 133, 1993 and Ordinance No. 134, 1993 which annex and zone approximately 72.6 acres, located at the southeast corner of I-25 and East Vine Drive. The property is currently zoned FA-1, Farming in the County. This is a voluntary annexation. The requested zoning is IL, Limited Industrial, with a PUD condition. APPLICANT: Kirschner Family Partnership c/o Cityscape Urban Design 3555 Stanford Road, Suite 105 Fort Collins, CO 80525 OWNER: Kirschner Family Partnership 8330 East Quincy Avenue, Unit A-111 Denver, CO 80237 Fees. Two FY 92 Community Development Block Grant (CDBG) projects, the Community Affordable Residences Enterprises (CARE) and Resource Assistance Center (TRAC) are requesting assistance in the payment of the new Parkland Fee approved by City Council on July 20, 1993. Ordinance No. 140, 1993, was unanimously adopted as amended on First Reading on October 19. Items Relating to the Imu-Tek Annexation and Zoning. A. Resolution 93-162 Setting Forth Findings of Fact and Determinations Regarding the Imu-Tek Annexation and Zoning. Hearing and First Reading of Ordinance No. 141, 1993, Annexing 5.1181 Acres, Known as the Imu-Tek Annexation. C. Hearing and First Reading of Ordinance No. 142, 1993, Amending the Zoning District Map contained in Chapter 29 of the Code and Classifying for Zoning Purposes the Property Included in the Imu-Tek Annexation to the City of Fort Collins, Colorado. 381 November 2, 1993 This is a request to annex and zone 5.1181 acres located on the south side of East Vine Drive approximately 1/2 mile west of I-25. The requested zoning is the IL, Limited Industrial District and the Planning and Zoning Board is recommending that this property be excluded from the Residential Neighborhood Sign District. The property is developed, with the primary use being a food processing (milk supplement) plant. The property is currently zoned 0, Open in the County. This is a voluntary annexation. 20. Staff has negotiated a contract with CDH for the 1993-94 Clean Air Colorado program in Fort Collins. Under the terms of the contract, CDH will pay $30,000 to the City for the completion of specific air quality education and data collection projects. The air quality projects support the air quality objectives and policies established in the 1993 Air Quality Policy Plan. 21. For the past six years Fort Collins Police Services has applied for ' project funding to the Colorado Division of Criminal Justice for federal drug grant monies. For project year 1993/1994, Police Services has again joined with the Loveland Police Department and Larimer County Sheriff's Department, in one application, for a multi -jurisdictional project to be administered by Police Services. As administrator of the grant, Police Services will assure funding to the other participating agencies for their share of the federal funds. The City has recently received notification of a grant award in the amount of $102,503. The participating agencies will be providing match monies in the amount of $167,558. Fort Collins' portion of the match is $76,377, which is met through application of the budgeted salary and fringe benefits of an existing officer assigned to the Special Investigations Unit and the salary and benefits of a Secretary I who is also assigned to that unit. 22. First Reading of Ordinance No. 145, 1993, Authorizing the Transfer of Appropriations From the Mason/Howes Phase II Capital Project to the "North College Avenue Enhancement Capital Project" and Authorizing the City Manager to Enter Into a Contract With The State of Colorado For The Enhancement Items For The New State Highway Bridge Over The Poudre River on North College Avenue. The replacement of the North College Avenue Bridge over the Poudre River will allow the City to enhance the bridge for the north entrance into the city and install a trail underpass. This new State Highway bridge will ' allow the City to create a "Gateway" from the north into Fort Collins. 382 November 2, 1993 , This theme has been proposed in the many planning documents. Design materials for the bridge follow the directions in the "Design Guidelines for Pedestrian -Way Improvements, Downtown Development Authority." The main enhancement items include: planters in the median south of and on the bridge, decorative pedestrian lights matching "Old Town" lights, exposed aggregate sidewalks, the use of sandstone as an accent stone, and landscaping in the medians, trail lighting system, and special concrete treatment (fluted finish) of the piers under the bridge for the trail. The ISTEA program will be the main funding source for the bridge enhancement items. The matching ratio for the work is 82% ($123,000) Federal -aid funds and 18% ($28,000) City. The proposed City funding source is the re-routing of existing Mason -Howes Phase II (trail segment) Capital Project funding which presently contains about $32,000. This money was originally set aside for improvements to the trail system when the one -ways would connect to College Avenue, and is currently no longer considered a viable project. Funding from this account ($18,000) was used for the 1990 North College Avenue Trail Underpass Study. The remainder of the Mason -Howes Phase II (trail segment) Capital Project funding will be used for enhancement of the trail system near the bridge. 23. Resolution 93-163 Amending the South College Access Plan. On December 6, 1988, the City Council approved the South College Avenue ' Access Control Plan. This Plan is used by the City of Fort Collins and the Colorado Department of Transportation in conjunction with the State Highway Access Code and sets the location and types of access points on US 287 between Swallow Road and Trilby. The Plan has been successful in facilitating the flow of traffic in an area under high development pressure. On October 4, 1993, the Planning and Zoning Board approved the Preliminary Matterhorn PUD with (among other things) a condition that the South College Access Plan be amended to allow for a right-in/right-out access point prior to the applicant moving forward with a Final P.U.D. The site plan for the development requests a right-in/right-out access point on the west side of College Avenue, approximately 250 feet north of Horsetooth Road. This amendment shall be limited in its application to the uses proposed for this development or such other uses as are determined by the City Director of Transportation and the Colorado DOT as having similar traffic characteristics to those created by the uses proposed for this development. In combination with the access point, the developer will build a new deceleration lane and right turn lane for southbound College Avenue to westbound Horsetooth. This access point is not an approved access location within the South College Access Control Plan.\ 383 J 24. Resolution 93- 25. 26. November 2, 1993 Because both the Water Utility Enterprise Board and the City are parties to the NPIC agreement, the City Council needs to consider adopting a Resolution similar to the one adopted by the Board. For an explanation, see the Agenda Item Summary for the earlier item. (Item No. 3). On Friday September 24, 1993, Nelson Mandela asked the United Nations to lift all economic sanctions against South Africa. This Resolution formally endorses the nomination of Mayor Azari to the National League of Cities Board of Directors. ' 27. Resolution 93-169 Making an Appointment to the Landmark Preservation rnmmiccinn. A vacancy currently exists on the Landmark Preservation Commission due to the resignation of Kirk Winkelmeyer. Councilmembers Horak and Kneeland reviewed the applications on file and are recommending Per Hogestad be appointed to fill the vacant term which expires July 1, 1996. 28. Routine Deeds and Easements. a. Powerline Easement from Wilbur D. and Sandra L. Huett, 645 Whedbee, needed to underground existing overhead electric services. Monetary consideration: $10. b. Powerline Easement from Norman D. and Karen L. Schultz, 413 East Elizabeth, needed to underground existing overhead electric services. Monetary consideration: $10. C. Powerline Easement from Rodney Smith, 715 West Prospect, needed to install an electric vault to underground existing overhead electric system. Monetary consideration: $48. 384 November 2, 1993 1 Items on Second Reading were read by title by City Clerk Wanda Krajicek. 11. A. Second Reading of Ordinance No. 126, 1993, Amending Section 28- 17(26) of the Code of the City of Fort Collins Relating to Abandoned Vehicles Under the "Model Traffic Code for Colorado Municipalities," 1977 Edition. B. Second Reading of Ordinance No. 127, 1993, Amending Section 17-1 to Add the Definition of "Thing of Value." C. Second Reading of Ordinance No. 128, 1993, Amending Section 28-17 of the Code of the City of Fort Collins Relating to the Addition of the Requirement of Compulsory Insurance for Motor Vehicles Under the "Model Traffic Code for Colorado Municipalities," 1977 Edition. D. Second Reading of Ordinance No. 129, 1993, Amending Section 28- 17(19) of the Code of the City of Fort Collins Relating to Window Obstructions and Tinted Windows of Motor Vehicles Under Section 19-4 of the "Model Traffic Code for Colorado Municipalities," 1977 Edition. E. Second Reading of Ordinance No. 130, 1993, Amending Chapter 17 of the Code of the City of Fort Collins Relating to Miscellaneous Offenses. 16. Items Relating to the Fossil Creek Estates Annexation and Zoning. A. Second Reading of Ordinance No. 131, 1993, Annexing Approximately 31.12 Acres, Known as the Fossil Creek Estates Annexation. 385 1 November 2, 1993 B. Second Reading of Ordinance No. 132, 1993, Amending the Zoning District Map Contained in Chapter 29 of the Code of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Fossil Creek Estates Annexation to the City of Fort Collins, Colorado. 17. Items Relating to the Kirschner Annexation and Zoning. 18. A. Second Reading of Ordinance No. 133, 1993, Annexing Approximately 72.6 Acres, Known as the Kirschner Annexation. B. Second Reading of Ordinance No. 134, 1993, Amending the Zoning District Map Contained in Chapter 29 of the Code of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Kirschner Annexation to the City of Fort Collins, Colorado. Fees. 37. Second Read' ' Authorizing Corooration. Items on First Reading were read by title by City Clerk Wanda Krajicek. 19. Items Relating to the Imu-Tek Annexation and Zoning. 20. 21. 22. A. Hearing and First Reading of Ordinance No. 141, 1993, Annexing 5.1181 Acres, Known as the Imu-Tek Annexation. B. Hearing and First Reading of Ordinance No. 142, 1993, Amending the Zoning District Map contained in Chapter 29 of the Code and Classifying for Zoning Purposes the Property Included in the Imu-Tek Annexation to the City of Fort Collins, Colorado. First Reading of Ordinance No. 143, 1993, Appropriating Unanticipated Revenue in the General Fund for the Clean Air Colorado Program. go November 2, 1993 34. Councilmember Horak made a motion, seconded by Councilmember McCluskey, to adopt and approve all items not removed from the Consent Calendar. Yeas: Council members Apt, Azari, Horak, Janett, Kneeland, McCluskey and Winokur. Nays: None. THE MOTION CARRIED. � Councilmember Reports Councilmember McCluskey spoke of Councilmember Horak's potential conflict of interest regarding the Senior Center item and reported the Ethics Review Board made a unanimous decision that Councilmember Horak did not have a conflict of interest regarding the item. Resolution 93-167 Authorizing Reductions in Costs For the New Senior Citizen Center Project. Adopted as Amended The following is staff's memorandum on this item. "FINANCIAL IMPACT The senior center project team's recommendation is to make some further revisions to the scope of work of the senior center project. By resolution on October 19, 1993, the construction cost was reduced by $126,200. Further reductions of $50,000 can be made by working with the contractor to find "equal substitutions" for some of the bid materials, and $53,000 in General Fund costs can be saved from a delay in the opening date of the center. These changes reduce the cost of the project by $229;200. These changes also mean that $279,800 from excess Choices 95 revenues must be added as part of the 1994 budget in order to balance this construction budget. EXECUTIVE SUMMARY On September 14, 1993, bids were opened for the construction of the senior citizen center. All five bids received exceeded the estimated construction cost of $3,913,800. The lowest bidder was $456,000 above this estimate. 387 1 November 2, 1993 On October 19, 1993, Resolution 93-158 was considered by the Council. This Resolution proposed a reduction in the scope of the project by $126,200, with remaining budget shortfall of $329,800 to be covered by excess Choices 95 revenue added as part of the 1994 proposed budget. This combination of a reduction in the scope of the project and increase in the amount budgeted would have accommodated the $456,000 deficit. Council adopted Resolution 93-158 with an amendment that directed staff to return on November 2, 1993, outlining further savings in this project of $100,000 to reduce the additional amount that would have to be added to the project budget. Council further directed that any savings would not affect the scope and quality of the facility. Immediately following the Council meeting, staff met with Parker G.C., the construction firm submitting the lowest bid. The result of this meeting was that Parker G.C. and City staff would work to identify $50,000 of "equal substitutes" to reduce the cost of the project. The process of "equal substitutes" essentially translates to finding different brand names for items in the project. The contractor explained that given the number of items to be purchased in a contract of this size, substitute products could be identified that may not have some of the fine aesthetic touches, but will provide the same level of quality and function. In addition, the Senior Advisory Board and Building Team have agreed to an opening date for the new center of December, 1994. This is a change from October, 1994. This postponement has decreased the cost of operation and maintenance dollars needed in 1994 to support the new center. After factoring out lost revenue in 1994, the General Fund will save $53,000 by delaying .the opening of the center. Council's direction was to reduce the City's cost by an additional $100,000 on this project. The combination of saving $50,000 in the construction budget and the operation and maintenance costs savings to the General Fund of $53,000 meets Council's direction. Adoption of this Resolution along with the prior adoption of Resolution 93-158 will result in a total cost reduction of $229,200. BACKGROUND: The new Senior Citizen Center, a Choices 95 project, has been in progress since 1991, when an architect was hired and the Building and Project Teams were formed to advise City Council on issues surrounding the project. A year was spent distributing surveys, holding open houses, and talking to community groups and individuals to determine the scope and site criteria for this important multi- faceted project. About six months was spent choosing a location and another six months completing the conceptual design stage. Final design was completed and the project went to bid this past summer to hire a contractor. KII•] November 2, 1993 ' Purchasing and project staff have reviewed the documents submitted by the construction firm representing the low bid, Parker G.C. from Longmont. There is agreement that this firm is qualified to handle the project. This low bidder, however, was $456,000 higher than the construction budget. RECOMMENDATION: Staff recommends that the construction cost for the senior center be further reduced by $50,000 through "equal substitutes," that General Fund savings of $53,000 be realized by a delay in opening the center, and that $279,800 be added as part of the 1994 budget appropriation from Choices 95 excess revenues to balance the construction budget. The contractor and City staff have agreed to find $50,000 worth of "equal substitutes" to further reduce the cost of this project. In addition, the delay in the opening of the Senior Citizen Center from October, 1994 to December, 1994 - will save the General Fund $53,000 in 1994. This General Fund savings, along with the $50,000 reduction in the construction budget meets Council's direction of finding at least $100,000 in savings. Cuts of $126,200 and $50,000 result in the need to add $279,800 to the project construction budget. The source for adding funds to this project is Choices 95 excess revenues. Sales and Use Tax revenue above projections has been collected in the Choices 95 Fund. The recommended appropriation, totalling $279,800, is requested from the excess Choices 95 revenue and wi17 be included in the proposed 1994 budget. OTHER OPTIONS CONSIDERED 1. Re -bid the Project: Re -bidding the project is taking a gamble that the construction market next year will be more favorable for the project. If the bids are delayed until spring, winter construction costs may be avoided. The risk, however, is great that the construction market will either not change or might rise. People in the construction business expect material costs to increase over the next six months. In discussions with two independent construction project estimators, both express fears in a re- bid situation. Independently, both stated that they do not expect the labor market to change, and materials costs are expected to increase. The Poudre R-1 School District has recently experienced the same inflation in the construction market that was experienced with the senior center bids. Poudre R-1 bids are from 99 to ISY higher than budget estimates. The senior center came in 13% higher than the budget estimate. Poudre R-1 has worked through a series of materials changes to maintain the integrity of its buildings, and has cut back on landscaping and athletic facilities. ' 389 ' November 2, 1993 After discussing the idea of re -bidding the projects, the District decided the risk is too great, and has chosen the option of changing the materials and scope of the project. Finally, staff approached each of the five bidders on the senior center project. Each was asked the question, "Given that you now know how much money we have available for this project, would you submit a bid within our budget if we went out to bid again?" All five of the bidders stated that, given current construction market conditions, unless the scope of the project was reduced and/or the materials identified in the bid, they would not be able to submit a bid low enough to meet the City's budget. 2. Reduce the Scope of the Project: The other option available is to work with the architect and building team to reduce the scope of the project. The extensiveness of these changes may dictate a redesign and a re -bid on the project, both of which would cost additional money. An estimate on redesign would be 5-7 months, while the bid process takes approximately 3 months. These reductions would involve developing acceptable alternates for materials, as well as reducing the size and/or quality of some of the amenities in the facility. An extensive citizen input process was used for this project. The facility was designed to the specifications requested by the citizens giving that input. For example, portions of the roof are pitched to give it less of an "institutionalized" look that a flat roof, such as on the EPIC facility, gives. Another example is that the courtyard in the back of the facility is designed to attract facility users much like a well -landscaped backyard in someone's home might. This area was also designed to be used for large social events in an aesthetically -pleasing environment. These design features can be reduced and money can be saved, but the original design intent would be compromised to do so. On October 19, 1993, the Council offered several suggestions to reduce the cost of this project. The following presents a summary of staff's research on these suggestions: Council suggested that the contractor might be able to reduce its company's profits by $100,000. The contractor stated that deducting $100,000 would "put this project in the red." They stated that they have only a 5 percent mark-up, which includes profit and overhead. 390 November 2, 1993 ' After overhead expenses, the normal profit on a project like this is from 1% to 3% nationally. The contractor's response was consistent with the data we have on profit margins. This would suggest the profit on this project is from $40,000 to $120,000. In addition, Parker G.C. was the low bidder on this project. The next lowest bidder was $100,000 higher than Parker. By taking low bid, staff is expecting the tightest profit margin. To demand an additional $100,000, might create an environment where quality could be sacrificed in construction to make up for this deficit. Staff agrees that the contractor's ability to take a $100,000 decrease in bid cost would be very difficult. 2. Council suggested that a delay in the construction of the project until spring can save from $50,000 to $100,000 in "winter protection" costs. The contractor stated that $10,000 in "winter protection" costs is built in. By starting in spring, there would be some savings on the front end of the project; however, this is an eleven -month project. By starting in spring, the project would end in winter. This would create the need to add expense on the end of the project, because parts of the facility would incur heating costs while finish work is done. These costs are not now part of the construction budget because of an anticipated November completion date. Finally, the contractor is fearful of delaying until ' spring because of increased cost of materials. To avoid these increases in costs, all materials would need to be purchased early and the contractor would incur storage costs. 3. Council suggested that since the major reason this project came in so high was due to a volatile construction market, that re -bidding the project in six months might produce bid prices closer to the budget. This may be true given the completion of the Denver airport. Staff has contacted two independent estimators to get their opinions on this risk. Both of these construction professionals stated that they believe material costs will rise in January 1994. They also believe that the contractors involved in the Denver International Airport would be seeking much larger jobs than the senior center project. In addition, almost all of these contractors are union labor and thus would be a higher cost than what the bids reflect. Both of these estimators independently believe that the cost for this project would actually be higher in six months. Council's direction of October 19, 1993 was to return to the contractor to negotiate a $100,000 reduction in the price without affecting the scope or quality of the project. The contractor responded that, given today's construction market, they could not absorb the $100,000 cut without some changes , 391 November 2, 1993 that would affect scope and quality. Staff approached the other four bidders about this project. Al four of these companies also stated that they would not be able to do this project at that price without changes in materials or a reduction in the scope of the project. Council directed that staff find $100,000 more in savings to this project before continuing. The combination of reduction in the construction costs of $50,000, as well as savings in operation and maintenance of $53,000, meets Council's direction. If this combination is not acceptable, the recommended alternative is to bring the architect, staff, and the building team together to explore reductions in project scope." Director of Cultural, Library and Recreational Services Mike Powers spoke of the bid process, and reported bids came in higher than originally estimated. He spoke of the options available to reconcile the problem. He stated finding additional bidders to come in at a lower cost was not feasible without cutting the scope of the project. He stated staff recommends Council accept the recommendation of the $103,000 cost reduction and enter into a contract with low bidder, Parker G.C. Construction. Councilmember Kneeland made a motion, seconded by Councilmember Janett, to adopt Resolution 93-167. I Kay Rios, Chair of the Senior Advisory Board, clarified the Board concurred with the reductions, but expressed reservations .regarding the quality of substitutions. Marjorie McTaggart, representative of the Building Team, stated the Building Team supported the staff recommendation. Powers clarified the quality of the project would not be affected by the proposed changes. He reported a contingency fund was available for the project if needed. Kathleen Jones, Senior Advisory Boardmember and member of the Building Team, speaking on behalf of the Seniors, stated they are tired of Council dragging its feet on the construction of the Center and urged adoption of the resolution. Bufford Plemmons, President of the AARP, spoke of concerns regarding the cost saving measures of the project. Al Baccili, 520 Galaxy Court, urged Council and staff to find savings elsewhere and spoke of the need to complete the Center. Carl Jorgenson, past President of AARP, opposed cuts to the project and urged Council to award the bid as soon as possible. 392 November 2, 1993 ' Gordon Griffith, member of the Poudre Golden Kiwanis, spoke of a meeting held with representatives of the Senior Center, and stated fund raising projects for equipment purchases was discussed. Councilmember Winokur made a motion, seconded by Councilmember Horak, to amend Resolution 93-167 to substitute the content of Resolution 93-158 as originally published on the October 19, putting back the $103,000 and accept the bid with the reduced specifications. Councilmember Winokur opposed the $103,000 in cuts and expressed concern regarding additional delays. Recreation Manager Jean Helburg responded to Council questions regarding the filtration system. She clarified the filtration system would be the same regardless of the gutter system used. Mayor Azari opposed the motion and stated it was important for staff to continue to find cost saving measures. Councilmember Winokur stated supporting the amendment would not allow staff to spend foolishly. The vote on Councilmember Winokur's motion to amend was as follows: Yeas: Councilmembers Apt, Horak, Janett and Winokur. Nays: Councilmembers Azari, Kneeland and McCluskey. Nays: None. THE MOTION CARRIED. Councilmember Horak clarified the intent of the previous motion was that savings generated by staff would be used to purchase equipment for the Senior Center. The vote on Councilmember Kneeland's motion to adopt Resolution 93-167 as amended was as follows: Yeas: Councilmembers Apt, Azari, Horak, Janett, Kneeland, McCluskey and Winokur. Nays: None. THE MOTION CARRIED. 393 November 2, 1993 Council should consider the appeal based upon the record and relevant provisions of the Code and Charter, and after consideration, either: (1) remand the matter to the Planning and Zoning Board or (2) uphold, overturn, or modify the Board's decision. Remanded to the Planning and Zoning Board The following is staff's memorandum on this item. "EXECUTIVE SUMMARY On September 27, 1993, the Planning and Zoning Board approved, with conditions, Spring Creek Village, Preliminary P.U.D. This project represented an amended P.U.D. and a continued item from the July 26, 1993 Planning and Zoning Board hearing. The request consists of 218 multi -family apartments on 24.27 acres located on the east side of Shields Street, south of Prospect Road. The P.U.D. includes a request to increase the number of unrelated persons who may reside in 66 of the units from three to a maximum of four persons. On October 11, 1993, an appeal was received by the City Clerk's office regarding the decision of the Planning and Zoning Board. In the statement of appeal, it is alleged that: ' The approval is improper due to inadequate, confusing and improper notices to the parties in interest, resulting in a failure of the P & Z Board to hold a fair hearing. The P & Z Board abused its discretion by making an arbitrary decision to approve the Spring Creek Village project without the support of competent evidence in the record. The P & Z Board abused its discretion by making an arbitrary decision to increase the number of unrelated persons who may reside in individual dwelling units pursuant to Ordinance No. 142, 1987 without the support of competent evidence in the record. The attached documents include the appeal, Planning Department response to the appeal, and the information packet that was received by the Planning and Zoning Board for the September 27, 1993 meeting. The procedures for deciding the appeal are described in Chapter 2, Article II, Division 3 of the City Code." City Attorney Steve Roy outlined appeal procedures. Councilmember Horak made a motion, seconded by Councilmember Kneeland, that there was sufficient evidence to hear the appeal. 1 394 November 2, 1993 ' Councilmember Winokur stated he believed the appeal procedure has been reviewed and refined, but stated Council needs to review the appeal procedure to determine if certain provisions should be kept in place or modified. The vote on Councilmember Horak's motion was as follows: Yeas: Councilmembers Apt, Azari, Horak, Janett, Kneeland, McCluskey and Winokur. Nays: None. THE MOTION CARRIED. Senior Planner Ted Shepard gave a brief slide presentation and staff report on this item. He reported on the two conditions attached and responded to questions regarding the notices. Emily Smith, 1000 W. Prospect Road and President of the Prospect -Shields Neighborhood Association, spoke of the reasons for appealing the decision of the Planning and Zoning Board. Alan Lamborn, member of the Prospect -Shields Neighborhood Association, summarized evidence of the changes and spoke of density issues. He spoke of problems encountered by residents living near the Ram Village Complex commenting that problems would be similar in the proposed Spring Creek Village. He commented on potential bicycle traffic difficulties, and stated actions by staff and the Board have compromised the integrity of the neighborhood as well as City government. He stated the problem is the evidence presented to the Planning and Zoning Board was ignored and evidence not presented was used as the basis of choice. Frank Vaught, Vaught -Frye Architects, reviewed the site plan, outlined changes in the plan since the last meeting, and spoke of density changes. He spoke of alternative transportation modes available in the area and gave a slide presentation of the site noting it complies with the Land -Use Development Guidance System. Lucia Liley, attorney representing Topanga Enterprises, spoke of process issues. She stated the Board's direction was to postpone further consideration of the plan to the next meeting. She stated the applicant took the Board's direction and held another neighborhood meeting and made plan modifications and then presented an amended plan. She stated the City went beyond the 500 foot requirement for notices and commented that notice was not given for the informal neighborhood meeting. Doug Konkel, attorney representing the appellants, spoke of the problems with the notices and clarified the second notice was incorrect. He commented that the LOGS requires written development plans be submitted at neighborhood meetings and stated no plan was submitted. He stated the Prospect/Shields Neighborhood Association has spent a large amount of time, energy and money to ensure the orderly development of its neighborhood. He clarified property owners were not 395 1 ' November 2, 1993 objecting to multi -family housing but objected to the introduction of high density, dormitory housing in its residential neighborhood. He requested Council remand the decision back to the Planning and Zoning Board. Ms. Liley asked what established rules and procedures the Planning and Zoning Board failed to follow and what evidence was offered by the appellants that was not accepted by the Board. She stated the Board did not refuse to accept any offer of evidence. She outlined the steps taken by the City regarding informing the neighborhood and stated the staff agenda, which clearly detailed the request for 4 bedrooms was available in advance of the hearing. She suggested Council review the LDGS and appeal process, stating the ordinance setting the appeal process does not deal with procedural deficiency issues raised by the appellants. She stated the applicant went out of his way to assure that the merits of the project would be heard not the appeal process itself. She requested Council consider the procedural questions and issues raised and vote to overturn the appeal. City Attorney Steve Roy stated defects in the notice would not invalidate actions of the Board. He stated inconsistency in decision making could be an indication of arbitrariness. He stated it is to be determined whether the decision being appealed, the one that occurred on September 27, is supported by any competent evidence in the record. ' Ted Shepard addressed pedestrian and bicycle traffic concerns stating at the preliminary stage, conflict would not be unusual and stated bridge crossing issues could be explored. He spoke of the reasons for changes in the notice and clarified the mailing lists were identical for each notice. Councilmember Horak made a motion, seconded by Councilmember Kneeland, to remand the matter back to the Planning and Zoning Board for rehearing due to notice problems, which resulted in a fair hearing being denied to the appellants. Councilmember McCluskey opposed the motion stating although the process was not perfect, it appeared the information was distributed to the interested parties and the notice was sufficient. Councilmember Horak spoke of process concerns. Mayor Azari stated she did not support the motion and believed there was adequate notification of the meetings and a fair hearing was held. The vote on Councilmember Horak's motion was as follows: Yeas: Councilmembers Apt, Horak, Janett, Kneeland, and Winokur. Nays: Councilmembers Azari and McCluskey. THE MOTION CARRIED. 1 396 November 2, 1993 ' Resolution 93-168 Setting Forth the Intention of the City to Issue Industrial Development Revenue Bonds for the Phelps-Tointon Millwork, LLC, Project, 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 w receive a fee of 1/16th 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 final structure of the debt service for the project and is estimated to be between $4,000 and $8,000. EXECUTIVE SUMMARY Phelps-Tointon Millwork, a Limited Liability Company, submitted an application to the City for an Inducement Resolution in the amount of $1,500,000. Formerly Colorado Custom Cabinets, the Company is now owned by Phelps-Tointon, Inc., a Colorado corporation based in Greeley and Mr. Tim Brown, the former President of Colorado Custom Cabinets. The company manufactures commercial, institutional and high quality kitchen cabinetry. Approval of the Resolution would indicate the City's willingness to issue tax exempt industrial development revenue bonds so the company could construct a new manufacturing facility located at 1001 Buckingham Street in the northeast part of the City. The 50,000 square foot building on a six acre site would provide the company with enough room to double its total employment over the next three years. The company currently employs 45 people. The project will include the building and additional equipment to support manufacturing operations. If the inducement Resolution is approved the Company will apply for an allocation from the statewide balance of 1993 private activity bonds. A public hearing is required by the Tax Equity and Fiscal Responsibility Act (TEFRA) as amended and will be held at the time of the First Reading of the ordinance issuing the IDRB's. The hearing provides an opportunity for members of the public to comment before the issuance of the tax exempt bonds. BACKGROUND: In 1993, the City had a private activity bond allocation of just over $2 million. The 1993 application period was shorter than usual because the federal 397 1 November 2, 1993 legislation authorizing tax exempt financing for private activities expired June 30th. With the passage of the federal budget the program has been reauthorized. During the early application period, the City did not receive any requests for the use of the initial allocation. All of the City's allocation then reverted to the state, so Phelps-Tointon will have to secure an allocation from the state wide balance. As of October 15, over $20 million was available in the statewide balance. Project Budget and Use of Bond Proceeds The estimated budget for the project is as follows: Building and Fixtures $ 970,000 Land 75,000 Equipment 425,000 Costs of Issuance 30,000 TOTAL $1,500,000 The proceeds of the bond issue will be applied to these total estimated costs. The equipment cost consists of major cabinetry manufacturing tools and has an expected useful life of 10 years. The building and fixtures have an estimated ' life of 40 years. The weighted life of assets to be•financed by the bonds is approximately 30 years. The life of the bonds is projected to be 20 years. The Company estimates that the interest rate on the bonds will be about 5Y. Economic Benefits to the City The project, when completed, will yield direct and indirect benefits to the Fort Collins economy. Direct Benefits to the City Annual Property Tax Real Property $ 2,970 Personal Property 1,200 Annual Use Tax 2,400 Sales Tax on Utilities 1,800 Payment in lieu of Taxes 2,000 Total Estimated Annual Receipts 10,370 1 398 November 2, 1993 ' One-time Sales & Use Tax from Building Permit 14,500 Use Tax on Equipment 12,750 Total Estimated One-time Receipts 27,250 Total Direct Benefits $27,620 Indirect Benefits It is estimated that 80% of Phelps-Toin ton Millwork projected sales will be made outside the City of Fort Collins while about 90Y of all expenditures will be made within the City. It is anticipated that an additional 40 employees will be hired from the local job market by 1996. If it is assumed that 50% of the additional employee payroll is spent locally, the City will receive about $ 13,800 in sales tax after 1996. Financial Feasibility and Debt Coverage from Preliminary Pro Forma Based on preliminary estimates, the debt coverage ratio ranges from 3.4 to 7.8. These coverage ratios assume growth of 25 percent per year over the next three years and a bond payment term of 20 years at 5.0 percent. In addition to the coverage described above, the bondholders will be secured by a letter of credit from Bank One in Greeley. Compliment to Existing Programs and Facilities The project is consistent with adopted City policies regarding land use and zoning. The project will also be landscaped which is part of the Land Development Guidance system requirements to provide a visual transition from one area to the other. The application also indicates than women and minorities will be hired into some of the jobs, so the City's cultural diversity policy will be met. Overall, the project helps attain the Council goal of enhancing the community's economic vitality. In the past, Council members have expressed concerns about environmental side - effects of manufacturing firms. In addition to the compliance with the land use guidelines, this facility will have built in, up to date air and water quality equipment which will meet the goal of protecting the environment. Finally, staff notes that this project is within a mile of the downtown area, and therefore will have a positive impact on the Council goal of supporting and enhancing the City's core area. 399 ' November 2, 1993 Conclusion This agenda item summary serves as an overview of the application. Staff has evaluated the application and finds that 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 61 out of a possible 100 points. Several of the criteria do not apply to this project, namely Downtown Revitalization, Historic Preservation, and Community Responsibility. Once adjusted for these criteria, the project earned 73% of the total possible. Based on the evaluation of the project application according to the criteria, staff recommends approval of the inducement resolution." Finance Director Alan Krcmarik gave a brief description on this item, and stated Federal and State laws prevent using City funds to pay the bonds. Councilmember Horak made a motion, seconded by Councilmember Kneeland, to adopt Resolution 93-168. Melanie Hine, Vice -President of the Fort Collins Area Chamber of Commerce, spoke in support of the motion and urged Council to support the resolution. Tim Brown, President of Phelps-Tointon Millworks, spoke of the types of positions ' that would be created and stated staff size is anticipated to double within 3 years. He stated entry level positions are compensated at a rate 50% higher than minimum wage. He responded to Council questions regarding filtering systems. Councilmember Janett spoke in support of the resolution and commented she was pleased with the location. Councilmember Apt stated he was impressed with the Company's actions regarding environmental action and commended them for paying well and providing benefits. The vote on Councilmember Horak's motion was as follows: Yeas: Councilmembers Apt, Azari, Horak, Janett, Kneeland, McCloskey and Winokur. Nays: None. THE MOTION CARRIED. Resolution 93-170 Authorizing the City Manager to Enter into an Agreement Regarding the Opera House Project, Adopted The following is staff's memorandum on this item. "FINANCIAL IMPACT The agreement specifies an amount of property tax expected from the project for the years 1992 through 2005. These amounts are lower than the current property 400 November 2, 1993 ' taxes on the proj. In return for accepting a lesser amount of property tax on the project, the City and the Downtown Development Authority ("DDA") anticipate that the proposed sale of the Opera House Project will improve the viability of the Project and increase the ability of the DDA to service the debt on the tax increment bonds. EXECUTIVE SUMMARY On July 6, 1993, the Council approved Resolution 93-106 which authorized the restructuring of the industrial development revenue bonds that were issued in 1986 for the Opera House Project. Resolution 93-106 was contingent on the development of an intergovernmental agreement between the City, the Downtown Development Authority, the Bondholder, and other parties having a recorded interest in the Project. The agreement was to address the level of tenant finish for the Project, the level of tax revenues anticipated to be generated by the Project and other matters as may be considered necessary to protect the interests of the City and the Downtown Development Authority. After several months of negotiation between the City and the DDA and the proponents of the project, the agreement is in substantially final form. The agreement specifies the amount of real property taxes expected for the years 1992 through 2005, the amount of monies to be held for tenant finish of the project, the use of parking space in the Laporte America lot and other locations, the maintenance of the public mall portion of the Project and other matters to ' protect the interests of the City and DDA. BACKGROUND: This is the short history of the Opera House Project. A more detailed account is provided in the preface of the agreement. In 1986, the City issued tax exempt revenue bonds in the amount of $5,800,000 to finance the acquisition, construction , equipping and rehabilitation of three buildings located in downtown Fort Collins referred to as the Opera House Project. In 1988, the City issued $1,000,000 in taxable industrial development revenue bonds to provide additional funds for the completion of the Project. Both sets of bonds are secured by a mortgage lien on and security interest in the project now held by Central Bank, serving as trustee. In July of 1990, the Opera House Partnership, owners of the project, executed a deed of trust against the project for the benefit of Investors Real Estate Trust ("IRET"). In December of 1990, the owners executed a deed of trust against the project for the benefit of Fund America Equities Corporation. Both the Central Bank lien and IRET lien are subordinate to the Fund America Lien. In July 1990 the Opera House Partnership conveyed title to the pedestrian mall located in the project to the Downtown Development Authority. ' 401 November 2, 1993 Proceeds from the DDA tax increment bonds were used to finance the cost of certain public improvements benefiting the project. In connection with the issuance of the DDA bonds, the City and the DDA, in October 1988, entered into an implementation agreement with the Partnership. This agreement specified that the Partnership would 1) certify to the County Treasurer an actual value of $4.5 million for the project 2) make a payment to the City in the event of a shortfall in tax increment generated by the Project and 3) refrain from seeking a reassessment of the valuation of the Project below a certain specified level through the year 2005. In July 1990, the City, the DDA, the Partnership and the owners of the tax exempt bonds (Van Kampen Merritt, "VKM") entered into an agreement in which VKM also agreed not to seek a reassessment of valuation of the Project below an actual value of $6,087,000 and assessed value of $1,765,460 through July 1995. The Partnership is in default on the obligations owed to VKM, IRET and Fund America. The Partnership has not paid real property taxes on the Project and tax certificate for 1990 and 1991 have been issued. Taxes for 1992 are in default. A Receiver, Edward B. Cordes, was appointed as the receiver for the Project in January 1993. In April 1993, Houlihan, Lokey, Howard and Zukin ("Houlihan"), a firm specializing in restructuring financing of distressed properties entered into an agreement to purchase both sets of bonds. The Trustee has requested that the City adopt a resolution approving the restructuring of the bonds. Houlihan intends to divide the tax exempt bonds into $3,060,000 of senior bonds and $2,740,000 of subordinate bonds. The senior bonds will be secured by a first mortgage lien on and security interest in the project and the subordinate bonds will be secured by a junior mortgage lien and security interest in the project. The taxable bonds will be retired in full, the debt to IRET shall be satisfied in full and the lien be released and the Fund America lien be released. To improve the viability of the project, Houlihan and the Partnership have requested that the City and the DDA amend and restate the implementation agreement. The City and the DDA believe that the project serves an important public purpose and contributes to the economic viability and aesthetic appearance of downtown Fort Collins. The basic terms of the agreement are contained in the first eight sections and are summarized as follows: 1. The agreement will supersede all previous agreements, but will not affect the Declaration of Covenants, Conditions and Restrictions for the project. 2.1. The DDA, City and the Partnership agree to certify a project valuation to the County Treasurer and other entities involved in the valuation of the project an actual valuation of the project necessary to result in a required tax level or $125,000 for tax year 1992. 1 402 November 2, 1993 ' 2.2. For 1992 through 2005, the Partnership, Houlihan and the General Partner agree not to seek a reduction in the assessed valuation of the project or to seek an abatement of real property taxes which would result in the taxes falling below the following tax levels: Tax Year Property Taxes Assessed 1992 $125,000 1993 120,000 1994 110,000 1995 - 2005, inclusive 100,000 Additionally, these parties will agree to not seek an abatement of property taxes for tax years prior to 1992. In return, the DDA and the City will not contest an appeal by the Partnership for a reduction of the assessed value provided that the reduction does not fall below the property tax levels specified above. 2.3. The Partnership will fully pay the tax certificates which have been issued for taxes for 1990 and 1991. 2.4. If, due to a valuation challenge, abatement effort, or appeal initiated by Houlihan, the Partnership, or the General Partner, the real property taxes fall below the specified level, then the Partnership will be required to make up the difference from a payment in lieu of taxes. 2.5. The Partnership, Houlihan, and the General Partner agree that they and their successors and assigns may not assert that these provisions are unenforceable. 3. $1.1 million will be placed in a tenant finish fund. It is expected that this fund will be exhausted in the three year period following the execution of this agreement. The City and the DDA will receive documentation as to the creation of the fund and have the ability to examine financial records of the Owner and Houlihan to determine compliance. 4. The Parking Agreement portion provides the Project will lease at least 50 spaces on the Laporte America lot and up to an additional 140 on other lots as available. The initial monthly fees are established and a $50,000 advance rental payment is specified. The parking section also recognizes the parking requirement specified as a condition of approval of the planned unit development. If the property owners fail to make any payment in lieu of taxes as required under the Agreement, such non-payment would also constitute a breach of the Parking Agreement and a violation of the PUD parking condition for the Project. The City would then be free to pursue all remedies normally available under the City Code for such PUD violations. 5. The Partnership will be responsible for maintenance of the public ma11 including liability insurance. ' 403 November 2, 1993 6. The Partnership will be responsible for repair of the project while the DDA bonds are outstanding. 7. The project may be transferred subject to the provisions of the agreement. 8. The City and the DDA have the right to inspect the project to ensure compliance with the agreement. The remaining six sections of the agreement cover insurance, remedies, special provisions, benefit, binding effect, covenant, severability and contingencies. The significant contingency is that the agreement is contingent upon the execution of the Parking Agreement. Staff believes the agreement improves the City's position with respect to the Opera House project and recommends approval of the resolution authorizing its execution." Finance Director Alan Krcmarik gave a brief explanation on this item and summarized the intent of the agreement. City Attorney Steve Roy outlined changes in the agreement. Councilmember Winokur made a motion, seconded by Councilmember McCloskey, to ' adopt Resolution 93-170. Transportation Director Rick Ensdorff clarified negotiation of the parking places has not been completed and responded to Council questions regarding parking fees and spaces. Councilmember McCluskey asked if the City would break even on the cost of the lot if the Opera Galleria takes the spaces they have been discussing. Ensdorff stated the City would break even on the cost of the lot and reported the lot is fully leased. City Manager Steve Burkett clarified the City is covering the operating costs, not the acquisition costs. Chip Steiner clarified the Downtown Development Authority owns a portion of the atrium and public access is guaranteed through the covenants. He stated any party interested in holding an event in the facility would communicate with the property owner who manages it. He spoke of difficulties encountered with recent owners/managers. Councilmember Winokur questioned if individuals who lease spaces could sublet their spaces for a higher price. City Attorney Steve Roy stated the issue of subleasing would be addressed. 404 November 2, 1993 ' City Manager Steve Burkett stated past policy of Council is to provide subsidy for parking in the downtown area. Councilmember Kneeland spoke in support of the motion and stated she hoped it would help make the building a more viable one. t The vote on Councilmember Winokur's motion was as follows: Yeas: Councilmembers Apt, Azari, Horak, Janett, Kneeland, McCluskey and Winokur. Nays: None. THE MOTION CARRIED. Ordinance No. 109, 1993, Appropriating Funds and Authorizing the Purchase of Certain Downtown Properties The following is staff's memorandum on this item. "FINANCIAL IMPACT S This action authorizes the purchase of two parcels of land from Trillium Corporation for $475,000. Parcel 1 is the Laporte America lot. Parcel 2 is a strip of land along the alley behind the City's 281 North College facility. The funds for the acquisition are from monies previously appropriated in the Transportation Fund ($318,000), an appropriation of $71,000 from savings in the Essential Capital Projects Account, and the remaining $86,000 form the 1993 General Fund Operating Contingency. The agreement with the new owners of the Opera Galleria calls for a payment of $50,000 to the City at closing. EXECUTIVE SUMMARY This ordinance authorizes the purchase of the LaPorte America lot and a strip of land along the alley behind 281 North College from Trillium Corporation. The negotiations related to these properties have taken place over the last three years, beginning with Burlington Northern Resources, then Glacier Park, and finally with Trillium Corporation. The sources of funding for this project are: $318,000 from the Parking Division reserve held in the Transportation Fund, $71,000 from savings in the City's Essential Capital Projects Fund, and $86,000 from the 1993 General Fund Operating contingency. The Ordinance was adopted 4-2 on First Reading on September 21. Council provided direction to staff to present the matter to the Transportation Board for its review of the proposed funding and to compare to other projects that may be funded through the use of the reserve. The Board recommended that the parking lot be acquired and expressed its preference that parking activities be self - funded. The Board also recommended that a portion of the lot be used for car ' pooling. Council also requested that the acquisition of the lot be coordinated 405 November 2, 1993 with the agreement to be negotiated with the new owners of the Opera Galleria project. The Opera Galleria will be leasing a minimum of 50 lots, with an additional 70 to be leased on an availability basis. The owners will be prepaying the lease in the amount of $50,000. BACKGROUND: In 1991, Glacier Park Company, a Denver -based property ownership subsidiary of Burlington Resources, Inc., sold some of its properties. At that time, Glacier Park offered to sell some of the parcels to the City. The City Council authorized the purchase of the Laporte -America lot and the land near Lee Martinez Park for the amount of $499,000 and appropriated the funds required for the acquisition. Due to difficulties in obtaining clear title to Parcel 8 (the property near Martinez Park), and concerns about potential hazardous material contamination of Parcel 8, the transaction was not consummated. The City Council, by Resolution 92-150, then authorized the acquisition of Parcel 1 and the land along the alley behind 281 North College by eminent domain. Taking property by eminent domain power is a means of last resort for the City. Therefore, the City continued to negotiate for the purchase of these parcels. These negotiations were recently successful, with the parties agreeing on a sales price of $475,000 for both parcels. On First Reading, staff reviewed some of the options that the City had with respect to leasing or selling some of the parking lot to the new owners of the Opera Galleria. Based on discussions with the new owners, the Parking Division and the Downtown Development Authority, staff is recommending that the City retain and manage the lot. The lease that has been negotiated with the Opera Galleria requires a minimum of 50 spaces to be leased on the lot with an additional 70 to be leased on an availability basis, the same basis by which spaces are available to other businesses and individuals. The Opera Galleria may also lease up to 50 spaces in the Parking Garage and 20 spaces in the Block 31 parking lot. The new owners of the project will pay $50,000 at closing of their acquisition of the project as prepayment of the lease. Staff believes that this lease arrangement provides enough parking to the Opera Galleria project to allow it to succeed and maintains parking for other businesses in the downtown area. The Transportation Board was asked to review its list of Transportation projects and compare them to the acquisition of the lot.. On October 20, 1993, the Board met, but did not have a quorum. The Board proceeded to discuss the matter and the members present recommended that the lot be acquired with the parking reserves and other monies identified in the ordinance. They also recommended that the parking operation be self-sufficient and that monies provided by the General Fund be repaid. A letter from the Chairman of the Transportation Board is attached for your review. 406 November 2, 1993 ' In order to allow the Transportation Board to have time to review the proposed transaction, staff has previously negotiated two extensions of the purchase agreement. Staff does not believe that Trillium would accept another extension, nor does there seem to be a need for an extension. With the Opera Galleria agreement worked out and the affirmation of the staff recommendation by those members of the Transportation Board who reviewed the proposed acquisition, the Ordinance is ready for Council approval on Second Reading." Councilmember Kneeland made a motion, seconded by Councilmember Horak, to adopt Ordinance No. 109, 1993 on Second Reading. Krcmarik spoke of the revenue funding sources and responded to Council questions. City Manager Steve Burkett reported information would be brought back to Council addressing transportation concerns. The vote on Councilmember Kneeland's motion was as follows: Yeas: Councilmembers Apt, Azari, Horak, Janett, Kneeland and McCluskey. Nays: Councilmember Winokur. Items Relating to the Fossil Creek Estates Annexation and Zoning. Adopted as Amended The following is staff's memorandum on this item. "EXECUTIVE SUMMARY A. Second Reading of -Ordinance No. 131, 1993, Annexing Approximately 31.12 Acres, Known as the Fossil Creek Estates Annexation. B. Second Reading of Ordinance No. 132, 1993, Amending the Zoning District Map Contained in Chapter 29 of the Code of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Fossil Creek Estates Annexation to the City of Fort Collins, Colorado. On October 19, Council unanimously adopted Resolution 93-153 Setting Forth Findings of Fact and Determinations Regarding the Fossil Creek Estates Annexation. On October 19, Council also unanimously adopted Ordinance No. 131, 1993 and Ordinance No. 132, 1993 which annex and zone approximately 31.12 acres located west of South Shields Street approximately one mile south of Harmony Road, approximately 114 mile west of the southwest corner of South Shields Street and ' Fossil Creek Drive (extended). The annexation consists of one parcel of land 407 November 2, 1993 under single ownership. The property is currently vacant and zoned FA-1, Farming, in the County. The proposed zoning is R-L-P, Low Density Planned Residential, with a Planned Unit Development (PUD) condition. This is a voluntary annexation. APPLICANT: Dr. Richard Wuerker c/o Jim Sell Design 117 East Mountain Avenue Fort Collins, CO 80524 OWNER: Dr. Richard Wuerker 353 West Drake Road Suite 6 Fort Collins, CO 805261, Councilmember Janett spoke of annexation policies and questioned if the City was ready to make a decision on density and use of land adjacent to natural areas. Tom Shoemaker noted the City lacks consistent standards which would assist the development community when submitting its proposals. He stated the City is working on establishing consistent standards. Community Planning and Environmental Service Director Greg Byrne clarified there is no policy outlining the timing of annexations. Councilmember Horak made a motion, seconded by Councilmember Kneeland, to adopt Ordinance No. 131, 1993 on Second Reading. Yeas: Councilmembers Apt, Azari, Horak, Kneeland, McCluskey and Winokur. Nays: Councilmember Janett. THE MOTION CARRIED. Councilmember Horak made a motion, seconded by Councilmember Kneeland, to adopt Ordinance No. 132, 1993 on Second Reading. Councilmember Janett questioned if development could begin if a zoning and development proposal met the LOGS requirements. Councilmember Apt asked what would happen if the request to change the zoning was not approved. Community Planning and Environmental Service Director Greg Byrne stated the City is required within 90 days, to apply a zoning district. Byrne clarified the T-Transitional zone would allow existing uses to continue and would require rezoning for any subsequent development proposals. Councilmember Apt made a motion, seconded by Councilmember Janett, to amend Ordinance No. 132, 1993 on Second Reading replacing R-L-P Zone with T-Transition Zone. ' 408 November 2, 1993 ' Councilmember Janett asked if the applicant is displeased with the rezoning could its annexation request be withdrawn. City Attorney Steve Roy clarified the applicant could withdrawn its annexation request if the annexation petition contained that condition. City Attorney Steve Roy stated the law did not prohibit using the T-Transition Zone for an extended period of time. Tom Peterson clarified the petition did not contain language allowing the applicant to withdraw the annexation request. Mayor Azari opposed the amendment and stated the area already possessed low density. The vote on Councilmember Apt's motion to amend Ordinance No. 132, 1993 on Second Reading was as follows: Yeas: Councilmembers Apt, Horak, Janett, McCluskey and Winokur. Nays: Councilmembers Azari and Kneeland. THE MOTION CARRIED. The vote on Councilmember Horak's motion to adopt Ordinance No. 132, 1993 as amended was as follows: Yeas: Councilmembers Apt, Azari, Horak, Janett, Kneeland, McCluskey and Winokur. Nays: None. THE MOTION CARRIED. Resolution 93-163 Amending the South College Access Plan, Adopted The following is staff's memorandum on this item. "EXECUTIVE SUMMARY On December 6, 1988, the City Council approved the South College Avenue Access Control Plan. This Plan is used by the City of Fort Collins and the Colorado Department of Transportation in conjunction with the State Highway Access Code and sets the location and types of access points on US 287 between Swallow Road and Trilby. The Plan has been successful in facilitating the flow of traffic in an area under high development pressure. A copy of the Access Plan is attached. On October 4, 1993, the Planning and Zoning Board approved the Preliminary Matterhorn PUD with (among other things) a condition that the South College Access Plan be amended to allow for a right -Wright -out access point prior to the applicant moving forward with a Final P.U.D. The site plan for the development requests a right -Wright -out access point on the west side of College Avenue, approximately 250 feet north of Horsetooth Road. This amendment ' 409 ' November 2, 1993 shall be limited in its application to the uses proposed for this development or such other uses as are determined by the City Director of Transportation and the Colorado DOT as having similar traffic characteristics to those created by the uses proposed for this development. In combination with the access point, the developer will build a new deceleration lane and right turn lane for southbound College Avenue to westbound Horsetooth. This access point is not an approved access location within the South College Access Control Plan. A traffic study was completed as part of this PUD. Staff required the developer to conduct additional traffic analysis at the intersection of Horsetooth and College so that an evaluation of the level of service under different scenarios at the intersection could be examined. It was shown through this analysis that the addition of the southbound right turn lane and a right-in/right-out access on south College Avenue does improve the operating efficiency of the intersection. Through a separate action the P & Z Board formally approved the amendment to the South College Avenue Access Control Plan on October 25, 1993. The exact wording for the amendment to the South College Avenue Access Control Plan is proposed as: ' ADD: A right-in/right-out access may be considered for the west side of College Ave approximately 250 feet north of Horsetooth Road. This access sha11 be limited in its application to the uses proposed for the Matterhorn PUD, Preliminary, or such other uses as are determined by the City Director of Transportation and the Colorado DOT as having similar traffic characteristics to those created by the uses proposed for said development. Following the approval of the amendment by the City Council, the request for amendment will be sent to the Colorado Department of Transportation for concurrence. Staff discussion with COOT indicates that it is in agreement with the City on this amendment. CDOT's approval process should take 2-4 weeks to complete." Councilmember Janett asked who would benefit by changing the access. Transportation Planner II Eric Bracke spoke of the analysis and traffic flow and stated developers have requested changes to the access control plan and have not progressed past the staff level, pointing out the plan has remained firm. Council member.Janett questioned the benefit and asked how the proposal would work overall. Bracke spoke of access and lighting benefits of the plan. November 2, 1993 ' Councilmember Horak made a motion, seconded by Councilmember Kneeland, to adopt Resolution 93-163. Yeas: Councilmembers Apt, Azari, Horak, Janett, Kneeland, McCluskey and Winokur. Nays: None. THE MOTION CARRIED. Other Business Councilmember Horak made a motion, seconded by Councilmember McCluskey to adjourn to 5:30 p.m. on November 9. Yeas: Councilmembers Apt, Azari, Horak, Janett, Kneeland, McCluskey and Winokur. Nays: None. THE MOTION CARRIED. Adjournment The meeting adjourned at 12:10 a.m. Mayor �ity Cle 411 1