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HomeMy WebLinkAboutMINUTES-10/17/1989-Regularu 11 October 17, 1989 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council -Manager Form of Government Regular Meeting - 6:30 p.m. A regular meeting of the Council of the City of Fort Collins was held on Tuesday, October 17, 1989, at 6:30 p.m. in the Council Chambers in the City of Fort Collins City Hall. Roll call was answered by the following Councilmembers: Azari, Edwards, Horak, Kirkpatrick, Mabry, Maxey, and Winokur. Staff Members Present: Burkett, Krajicek, Roy Citizen Participation a. Proclamation Naming the week of October 16 as Working Woman's Conference Week was accepted by Pam Morris, Working Women's Conference. b. Proclamation Naming October. 15-21 as Venture Week was accepted by a representative from Venture Week. c. Proclamation Naming October 22-29 as Red Ribbon Week was accepted by Bud Reed, Fort Collins Police Department, on behalf of Chief Glasscock. d. Proclamation Naming November 17-26 as Ending Hunger Week was accepted by a representative from the Colorado Ending Hunger Campaign. Jim Creeden, P.O. Box 1022, read a letter regarding a perjury investigation and commented on the information he received from Deputy City Manager Noe and Director of Administrative Services Pete Dallow. He spoke of the Citizens Offering Police Support organization. Roy Vratil, 1401 Shamrock, had questions regarding the bureaucracy and length of time involved to get answers from the City. Barbara Allison, 1212 Lynnwood Drive, commented on the desecration of flags at Hickory Village. Agenda Review: City Manager City Manager Burkett stated that Item #34, Second Reading of Ordinance No. 132, 1989, Amending Chapter 26 of the Code Relating to Service Charges for Water and Wastewater Service, and Item #35, Second Reading of Ordinance No. 134, 1989, Appropriating Annual Expenditures for the City of Fort Collins in 1990, and Setting the Mill Levy for said Fiscal Year, contained copies of the original Ordinances that were passed on First Reading on October 3. -514- October 17, 1989 He noted that Item #21, Resolution 89-171, Accepting the Improvements and ' Ordering Notice of Assessment in the Oakridge Business Park Special Improvement District No. 91, contained a revised Resolution. He requested that Item #24, Resolution 89-187 Amending the Financial and Management Policies Relating to the 1990 Annual Budget as Previously Adopted in Resolution 89-174 and Item #28, Resolution 89-189 Authorizing a Revenue Allocation Formula for the Poudre Fire Authority, be withdrawn from the Budget Consent Agenda. Councilmember Horak asked that Item #12, Resolution 89-180 Authorizing the Mayor to Enter Into an Intergovernmental Agreement with the Northern Colorado Water Conservancy District Regarding the City's Participation in a Regional Water Study, be removed from the Consent Agenda. Councilmember Mabry asked that Item #13, Resolution 89-181 Authorizing the Mayor to Execute an Agreement Between the City and the Fort Collins -Loveland Water District for the Mutual Treatment, Transmission, and Delivery of Drinking Water, be removed from the Consent Calendar. Councilmember Azari withdrew Item #17, Routine Easements, from the Consent Agenda. Consent Calendar This Calendar is intended to allow the City Council to spend its time and ' energy on the important items on a lengthy agenda. Staff recommends approval of the Consent Calendar. Anyone may request an item on this calendar be "pulled" off the Consent Calendar and considered separately. Agenda items pulled from the Consent Calendar will be considered separately under Agenda Item #18, Pulled Consent Items. Il Consider approval of the minutes of the regular meeting of September 19. This $54,000 grant requires a City match of $41,409. The matching funds were appropriated in the Police Services 1989 budget, and provide the salary and fringe benefits for an existing officer assigned to narcotics enforcement, intelligence and white collar crime. The line item description for the Narcotics Support Operations II project is as follows: -515- October 17, 1989 ' STATE SHARE CITY SHARE TOTAL Personal Services $21,672 $41,409 $63,081 Supplies & Operating 16,328 16,328 Equipment 16,000 16,000 7. Total Budget $54,000 $41,409 $95,409 This is Fort Collins Police Services' third consecutive award through the Colorado Division of Criminal Justice. The award period is October 1, 1989 through September 30, 1990. Funds will be used for continued funding of a contractual data entry clerk position, operating expenses for this position, funds for the purchase of evidence (controlled buys), a lap -top computer and printer and electronic equipment. This Ordinance, which was unanimously adopted on First Reading on October 3, appropriates $54,000 in grant funds for expenditure in the Fort Collins Police Services Special Investigations Unit. This is a Development Services staff -initiated request to amend certain sections of the Zoning Code and Subdivision Ordinance. These changes are necessary to make clarifications to the Code as recodified in 1987. Prior to the recodification, the Zoning Ordinance and the Subdivision Ordinance were separate chapters, each having their own definition section. In 1987 both of these ordinances were combined into one chapter (Chapter 29), but both retained their original definition sections. Staff has now identified some necessary clarifications to the definitions. In addition, some sections of both previous chapters are repetitive and the duplicate sections should be deleted. This Ordinance, adopted unanimously on First Reading on October 3, makes the changes. Items Relating to Rohrbacker Annexation. A. Resolution 89-176 Setting Forth Findings of Fact and Determinations Regarding Rohrbacker Annexation. Hearing and First Reading of Ordinance No. 137, 1989 Annexing Approximately 3.6 acres Known as Rohrbacker Annexation. C. Hearing and First Reading of Ordinance No. 138, 1989 Zoning Approximately 3.6 acres Known as Rohrbacker Annexation, into the C, Commercial District, with a planned unit development condition. This is a request on East Magnolia to annex and Court, west of zone approximately 3.6 acres, located Link Lane and north of East Mulberry. ' The requested zoning is the C, Commercial District. %1VT October 17, 1989 J, 10. APPLICANT: Rosalie Rohrbacker OWNER: Same 430 West Myrtle Fort Collins, CO 80524 Rosalie Rohrbacker, the applicant and owner, has submitted a written petition requesting annexation of approximately 3.6 acres, located on East Magnolia Court, west of Link Lane and north of East Mulberry. The property is presently being used for a construction business (Sipes Concrete) and storage of automobiles and contains a vacant office building. This is a voluntary annexation. The applicant and property owner, Nordic Construction, has submitted a written petition requesting annexation of approximately 5.95 acres located east of South Shields and south of Harmony Road. 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. Not less than thirty days of prior notice is required by Colorado law. The property is located within the Fort Collins Urban Growth Area. According to policies and agreements between the City of Fort Collins and Larimer County contained in the Intergovernmental Agreement for the Fort Collins Urban Growth Area, the City will consider the annexation property in the UGA when the property is eligible for annexation according to state law. The property gains the required 1/6 contiguity to existing city limits from a common boundary with the Orchard Annexation to the east and the Voc-Tech/Smith Annexation to the north. The applicant, Dan Jensen, on behalf of the property owners, Cameron Thomas and Elizabeth Herring, has submitted a written petition requesting annexation of approximately 80.0 acres located south of Drake Road and east of Overland Trail (extended). 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 to be given of the hearing. The hearing will be held at the time of first reading of the annexation and zoning ordinances. Not less than thirty days of prior notice is required by Colorado law. -517- October 17, 1989 12. APPLICANT: Dan Jensen Jensen Enterprises, Inc. P.O. Box 1007 Fort Collins, CO OWNERS: Cameron Thomas and Elizabeth Herring 2424 S. Overland Trail Fort Collins, CO The property is located within the Fort Collins Urban Growth Area. According to policies and agreements between the City of Fort Collins and Larimer County contained in the Intergovernmental Agreement for the Fort Collins Urban Growth Area, the City will consider the annexation property in the UGA when the property is eligible for annexation according to state law. The property gains the required 1/6 contiguity to existing city limits from a common boundary with the Dixon Creek Annexation to the north. The Resolution would authorize the Mayor to execute revised Attachment C of the Power Contract and Exhibit A of the Transmission Facilities Agreement between the City of Fort Collins and Platte River Power Authority. These documents address such technical matters as points of delivery, metering points, under frequency load interruption program, special conditions of service, and maintenance responsibilities. Prior to the last major water treatment expansion, the City Council expressed considerable interest in developing a regional water treatment facility; however, nothing materialized because the timing was wrong for the adjacent water districts. Now the timing may be better. The districts (ELCO, Fort Collins -Loveland, and North Weld County) are anticipating the need to expand their water treatment plant within the next few years. As you may recall, the City will need to expand its facility within the next 4-5 years. Realizing there may be some savings associated with the construction and operation of joint/regional treatment facilities, the districts have agreed to postpone proceeding with their plant expansion for 6 months while various treatment plant expansion options are evaluated in detail. After learning that the City and districts, were interested in evaluating potential joint/regional treatment plant expansion options, the Northern Colorado Water Conservancy District (NCWCD) has suggested that the scope of its regional water study could be expanded to specifically address those issues within the 6 month time frame, and probably at a lower cost to the City and districts. The water utility staff estimated that such a study would cost about $150,000. -518- October 17, 1989 13. 14. 15. 16 Participating with the NCWCD in its study would cost $100,000, the City's share being $90,000 and the districts' share being $10,000. This agreement provides for the mutual treatment, transmission, and delivery of drinking water between the City and the Fort Collins -Loveland Water District for a period of 50 years. The primary purpose of the agreement is to avoid duplication of expensive water transmission facilities. In accordance with the provisions of this agreement, the district will treat and deliver water to the City and the City will treat and deliver an equal amount of water to the District. The water delivered to the District from the City, will be delivered through the City's new 60-inch Westside Transmission main. Without this agreement, the District would have to construct its own new transmission line in nearly the same location as the City's 60 inch line. Police Services has been awarded a Highway Safety totalling $33,000. assessed against convicted drunk funds will be used to support the Program within Police Services. grant from the Colorado Division of These monies are provided from fees drivers across the state. These existing Drunk Driving Enforcement The grant will provide for the majority of the salary of the DUI Officer assigned to the lead on drunk driving enforcement. The City Council is authorized under the Charter to retain special legal counsel for the City upon the request of the City Attorney. A process has been devised whereby interested firms have submitted applications for rendering such services. Selections have been made by the City Attorney in consultation with the affected members of City staff. Resolution 89-184 Making Appointments to the Economic Opportunity Advisory Committee. Vacancies currently exist on the Economic Opportunity Advisory Committee due to the resignations of Jim Cole and Jim Aldrich. Applications were solicited in August and September and Councilmembers Maxey and Azari conducted interviews. The recommended appointees are Howard Lowell and Phyllis Stewart. -519- October 17, 1989 17. Routine Easements. a. Deed of dedication from W. W. Grainger, Inc., an Illinois corporation, and Golden Meadows Business Park II, a partnership, for rededicating a utility easement to be a utility and drainage easement. Consideration: $0. b. Deed of dedication from Patricia E. Graham for a sidewalk easement along the frontage of her property on Prospect Road. The dedication is in connection with the approved Graham Bed and Breakfast P.U.D. Consideration: $0. c. Deed of dedication from Cottonwood Farm Inc. for an off -site drainage easement required for the Oak Ridge West P.U.D., First Filing (Collinwood Psychiatric Hospital). Consideration: $0. d. Deed of dedication from Wild Wood Farm Inc. for temporary off -site easements for utilities required for the Wild Wood Farm First Filing P.U.D. The easements will be made permanent as easements or right-of-way when the land upon which the easements are located is platted with future development. Consideration: $0. e. Deed of dedication from MSP Investment Co. for a temporary ingress and egress easement across their land for emergency access to the Brittany Knolls P.U.D. The easement will be required until a second access is provided to developed lots with permanent street(s) constructed to provide the permanent access. The temporary easement is large to give MSP the flexibility to relocate the actual emergency access within the easement as the property is developed. Consideration: $0. Ordinances on Second Reading were read by title by Wanda Krajicek, City Clerk. Item #6. Item #7. Platting Reouirements. Ordinances on First Reading were read by title by Wanda Krajicek, City Clerk. Item #8. B. -520- October 17, 1989 Councilmember Mabry made a motion, seconded by Councilmember Edwards, to adopt and approve all items not removed from the Consent Calendar. Yeas: Councilmembers Azari, Edwards, Horak, Kirkpatrick, Mabry, Maxey, and Winokur. Nays: None. THE MOTION CARRIED. Resolution 89-180 Authorizing the Mayor to Enter Into an Intergovernmental Agreement with the Northern Colorado Water Conservancy District Regarding the City's Participation in a Regional Water Study, Adopted Following is staff's memorandum on this item: "FINANCIAL IMPACT The City's share of the study cost is estimated to be $90,000. Funds are budgeted and available in the Water Fund. EXECUTIVE SUMMARY Prior to the last major water treatment expansion, the City Council expressed considerable interest in developing a regional water treatment facility; however, nothing materialized because the timing was wrong for the adjacent water districts. Now the timing may be better. The districts (ELCO, Fort Collins -Loveland, and North Weld County) are anticipating the need to expand their water treatment plant within the next few years. As you may recall, the City will need to expand its facility within the next 4-5 years. Realizing there may be some savings associated with the construction and operation of joint/regional treatment facilities, the districts have agreed to postpone proceeding with their plant expansion for 6 months while various treatment plant expansion options are evaluated in detail. After learning that the City and districts were interested in evaluating potential joint/regional treatment plant expansion options, the Northern Colorado Water Conservancy District (NCWCD) has suggested that the scope of its regional water study could be expanded to specifically address those issues within the 6 month time frame, and probably at a lower cost to the City and districts. The water utility staff estimated that such a study would cost about $150,000. Participating with the NCWCD in its study would cost $100,000, the City's share being $90,000 and the districts' share being $10,000. Attached is a letter from the NCWCD regarding the City's participation in the study. , -521- October 17, 1989 The districts have reviewed the proposal from the NCWCD and have decided to participate in the study. The water utility staff has also reviewed the proposal from the NCWCD and is recommending that the City participate along with the districts. Because the study needs to begin prior to November 1st to ensure completion within 6 months, the proposal cannot be reviewed by the Water Board at its regular meeting on October 20th. However, NCWCD's proposal has been discussed with a majority of the Water Board members on an individual basis and they concur with the staff recommendation to proceed." Councilmember Kirkpatrick made a motion, seconded by Councilmember Azari, to adopt Resolution 89-180. Water and Sewer Director Mike Smith stated that the cost participation by the other entities is related to the actual tasks that will be performed for the particular entity and explained his involvement on the selection committee. Councilmember Horak noted his support for the motion and encouraged the regional work be completed. He commented on his discomfort with the selection process used by the Water District and the lack of competition between firms. The vote on Councilmember Kirkpatrick's motion to adopt Resolution 89-180 ' was as follows: Yeas: Councilmembers Azari, Edwards, Horak, Kirkpatrick, Mabry, Maxey, and Winokur. Nays: None. THE MOTION CARRIED. Resolution 89-181 Authorizing the Mayor to Execute an Agreement Between the City and the Fort Collins -Loveland Water District for the Mutual Treatment, Transmission, and Delivery of Drinking Water, Adopted Following is staff's memorandum on this item: "FINANCIAL IMPACT In accordance with the provisions of this agreement, the City will receive an annual payment of $150,000 from the Fort Collins -Loveland Water District for the term of the agreement. EXECUTIVE SUMMARY This agreement provides for the mutual treatment, transmission, and delivery of drinking water between the City and the Fort Collins -Loveland Water District for a period of 50 years. The primary purpose of the agreement is to avoid duplication of expensive water transmission -522- October 17, 1989 facilities. In accordance with th e The Water Board and the City/District Steering Committee have reviewed this agreement and have recommended approval. On Tuesday, October 10th, the District Board of Director approved the agreement. BACKGROUND On February 5, 1985, the City and District entered into an intergovernmental agreement for the purpose of promoting cooperation in providing water service in the most efficient manner to their respective customers. As part of the agreement, a steering committee was formed, consisting of District Board members and City Council members, for the purpose of facilitating the resolution of various issues, such as: developing a master plan for providing service in the southern portion of the Urban Growth Area; studying and reviewing potential advantages and disadvantages of regionalization and/or consolidation of water services; resolving the disposition of District standby taps; and excluding property served by the City from the District's service area. Three of these issues were resolved by means of a cooperative effort between the City and District. A master plan was developed, the disposition of District standby taps was resolved, and property served by the City was excluded from the District's service territory. Although' no final resolution of the regionalization issue was reached, considerable effort was expended on reviewing various consolidation or joint -use methods, one of which is the subject of this agreement. In an effort to optimize the use of facilities, the City and District have studied various methods of sharing the use of treatment plant capacity and treated water transmission lines. The District is in need of additional water transmission capacity to serve its territory south of the City's service area and the City has completed the installation of a large water transmission line which can deliver the additional water needed by the District. After extensive negotiations, the City and District have developed a plan utilizing existing facilities which addresses the District's needs and also benefits the City. The plan involves an exchange of treated water and is described as follows (Refer to Exhibit A while reading the plan description): The District will deliver treated water from the Soldier Canyon Water Treatment Plant to the City's Foothills Pump Station located adjacent to the City's WTP#2. The Soldier Canyon Treatment Plant is owned by the Fort Collins -Loveland Water District, ELCO Water District, and the North Weld County Water -523- October 17, 1989 ' District. The District's water will be used exclusively in the City's Foothills Pressure Zone, a special service zone generally located west of Taft Hill Road between Harmony Road and Highway 287. In exchange, the City will deliver a like amount of treated water to the District at two different points off the City's Westside Transmission Line. The first point, Point "A", is located at the District's existing pump station located on Overland Trail between Prospect and Mulberry. The second point, Point "B", is located at the southeast corner of the intersection of Taft Hill Road and County Road 38E. The intent of this plan is based on an equal exchange of treated water using the parameters of annual delivery, peak day delivery, and peak hour delivery. Both the City and the District will operate their respective water systems to ensure an equal exchange of treated water, however, neither party will acquire ownership rights to the other party's system by virtue of fulfilling the terms of this agreement. The actual exchange of water between the City and District will not take. place until modifications to the District's water treatment plant are completed. In the interim, it is anticipated that the District will purchase a small amount of treated water from the city during the summer months. An agreement concerning the interim sale of water to the District will be presented to Council within the next two months. ' One of the provisions of the agreement establishes a "water quality committee" for the purpose of reviewing specific water quality issues related to the agreement. The water quality committee will consist of seven members; two of the committee members will be District Board members, two of the committee members will be City Councilmembers. These four members will select, by mutual agreement, the remaining three members. It is anticipated the two City Council members will be appointed by City Council next spring during the normal Council committee assignment process." Councilmember Azari made a motion, seconded by Councilmember Edwards, to adopt Resolution 89-181. Water and Sewer Director Mike Smith summarized the water treatment agreement between the City of Fort Collins and the Fort Collins -Loveland Water District and addressed additional water quality standards between the two entities. He noted the amount of money that would be received by the City of Fort Collins for the use of the City's west side transmission line. The vote on Councilmember Azari's motion to adopt Resolution 89-181 was as follows: Yeas: Councilmembers Azari, Edwards, Horak, Kirkpatrick, Mabry, Maxey, and Winokur. Nays: None. ITHE MOTION CARRIED. -524- October 17, 1989 Routine Easements, Accepted Following is staff's memorandum on this item: "EXECUTIVE SUMMARY Deed of dedication from W. W. Grainger, Inc., an Illinois corporation, and Golden Meadows Business Park II, a partnership, for rededicating a utility easement to be a utility and drainage easement. The location is shown on Map #1. Consideration: $0. b. Deed of dedication from Patricia E. Graham for a sidewalk easement along the frontage of her property on Prospect Road in the location shown on Map #2. The dedication is in connection with the approved Graham Bed and Breakfast P.U.D. Consideration: $0. Deed of dedication from easement required for (Collinwood Psychiatric Consideration: $0. Cottonwood Farm Inc. for the Oak Ridge West P Hospital). The location an off -site drainage U.D., First Filing is shown on Map U . d. Deed of dedication from Wild Wood Farm Inc. for temporary off -site easements for utilities required for the Wild Wood Farm First Filing P.U.D. The easements will be made permanent as easements or right ohen the land upon which the easements are located is platted with future development. The location of the easements are shown on Map #4. Consideration: $0. Deed of dedication from MSP Investment Co. for a temporary ingress and egress easement across their land for emergency access to the Brittany Knolls P.U.D. The easement will be required until a second access is provided to developed lots with permanent street(s) constructed to provide the permanent access. The temporary easement is large to give MSP the flexibility to relocate the actual emergency access within the easement as the property is developed. The location of the easement is shown on Map #5. Consideration: $0." Councilmember Mabry made a motion, seconded by Councilmember Kirkpatrick, to accept the Routine Easements. City Manager Burkett clarified that there was no dollar value on the deeds of dedication. Assistant City Engineer Mike Herzig explained the installation of the sidewalk on Prospect is part of the City's fifty-fifty program and stated that this particular property owner had contacted the City and requested to participate in the program. He stated that the sidewalk installation was a condition of the the approved Graham Bed and Breakfast P.U.D. and noted the importance of the City receiving the deed of dedication prior to the -525- October 17, 1989 ' Planning and Zoning hearing so approval of the Graham Bed and Breakfast could be recommended. Mayor Winokur expressed concern regarding the voluntary dedication and the unknown dollar value and stated he believed it was a required easement. He requested additional information from staff on the property and the sidewalk improvement program. The vote on Councilmember Mabry's motion to accept the Routine Easements was as follows: Yeas: Councilmembers Azari, Edwards, Horak, Kirkpatrick, Mabry, and Maxey. Nays: Mayor Winokur. THE MOTION CARRIED. Staff Reports City Manager Burkett commented on Deputy City Manager Noe's last Council meeting and congratulated Mr. Noe on his new position in San Antonio, Texas. Mr. Burkett mentioned that the City had exceeded its United Way. goal by a twelve percent increase over last year's contributions. Councilmember Reports ' Councilmember Azari reported on her participation in the "day in court" program with local high school students and elaborated on the cruising discussion that took place. She noted that the "day in court" program focused on the City's policys, ordinances, and the enforcement program. She expressed concern that students have an unclear perception about cruising and encouraged additional communications and public relations to dispel this perception. Councilmember Kirkpatrick spoke of her speech the City Club of Denver regarding Fort Collins' curbside recycling pilot program. Councilmember Maxey informed Council of his attendance at the Colorado Municipal League District 2 meeting and spoke of Fort Collins' leadership role in the water quality management program. Mayor Winokur mentioned his involvement in the State's Annual Lottery Funds Distribution ceremony at Anheuser-Busch where a check for $27,500 for use the renovation of the Northside Aztlan Community Center was presented to to City. 526- October 17, 1989 Resolution 89-171, Accepting the Improvements and Ordering Notice of Assessment in the Oakridge Business Park Special Improvement District No. 91, Adopted as Amended Following is staff's memorandum on this item: "FINANCIAL IMPACT This Resolution begins the closeout process. Upon assessment of this District, the costs of the District will be assessed to the property owners benefited by the improvements. As the property owners pay their assessment installments, the City will begin to collect monies to retire the SID bonds issued to finance the construction. Ordinance No. 16, 1988, provided for the issuance of $2,245,000 of special assessment bonds to cover the costs of this District. The appropriation Ordinance provided $153,008 from the Street Oversizing Fund and $15,504 from the Water Oversizing Fund to cover the City costs associated with the District. EXECUTIVE SUMMARY In August 1987, Council established the Oakridge Business Park Special Improvement District No. 91. This SID consists of approximately 169 acres of land located in the southeast portion of the City adjacent to and southeast of the intersection of Lemay Avenue and Harmony Road. Property within the District is a part of the 185-acre Oakridge Planned Unit Development and is zoned for mixed use development. Streets, water mains, sewer mains, and storm drainage improvements were constructed within this District. The City is now prepared to close out the District. In accordance with Chapter 22 of the City Code, preparation of a statement of cost, preliminary assessment roll and a notice to be sent to property owners have been completed. This Resolution directs the City Clerk to publish notices in the daily newspaper and send individual notices to each property owner in the District. This will notify the owner of the cost of improvements, the portion to be paid by the City, and the hearing date of the assessment ordinance (November 21, 1989). BACKGROUND The City Council formally created the Oakridge Special No. 91 in July of 1987 by the adoption of Ordinance petitioner, Everitt Enterprises, requested formation Improvement District No. 114., 1987. The of the District in -527- October 17, 1989 ' order to construct streets, water line, sanitary sewer line, and storm drainage facilities in the east 213 of the Oakridge Master Plan area, a mixed use industrial and residential area. Since the creation of the District, 2 single family residential areas and 2 industrial sites have developed, with a third industrial site (ESAB, Inc.) planning to develop within the District boundaries. The project consists of the following utility and roadway improvements: 1. Keenland Drive - constructed from Wheaton Avenue to the Union Pacific Railroad, improvements including water, sewer, stormwater and electrical utilities, curbs, gutters and sidewalks, road base and asphalt pavement, and landscaping. 2. McMurray Avenue - constructed from Harmony Road to Keenland Drive, improvements include water, sewer, stormwater and electrical utilities, curbs, gutters and sidewalks, road base and asphalt pavement, and landscaping. 3. Oakridge Drive - constructed from Innovation Drive to McMurray Avenue, improvements include water, sewer, stormwater, and electrical utilities, curbs, gutters and sidewalks, road base and asphalt pavement, and landscaping. 4. Oakridge Master Detention System - includes the excavation of a large detention area north of Keenland Drive and east of McMurray Avenue, the installation of a 72' bore beneath the Union Pacific Railroad, and channel widening excavations and drainage structures along the drainageway between the Union Pacific Railroad tracks and County Road #36. 5. Sewer Main Extension - approximately 2000 linear feet of 8" diameter sewer main installed northward from Keenland Drive along the Union Pacific Railroad right-of-way to service the properties near the tracks east of McMurray Avenue. The Director of Engineering has directed that the completed improvements be inspected and has certified to the City Council that all improvements are complete. This Resolution begins the close out and assessment phase of the project by ordering notice and setting a date for public hearings on the assessments. The property owners in the District will be assessed on a per acre basis for all costs associated with construction, engineering, administration and financing of the District improvements. Upon passage of the Resolution, the City Clerk will publish notices in the daily newspaper and will send individual notices to each property owner in the District. The public notice will be in the form of Exhibit "A" of the resolution and will notify the public and each property owner of the cost of improvements, the portion to be paid by the City, and the hearing date ' of the assessment ordinance (November 21, 1989). -528- October 17, 1989 Funding Special Improvement District Bonds were issued by Ordinance No. 16, 1988 in the aggregate principal amount of $2,245,000 to finance the construction of district improvements. Street oversizing costs in conjunction with the collector streets of McMurray and Keenland were paid by the Street Oversizing Fund. A small amount of watermain oversizing was paid by the Water and Sewer Fund. The total amount assessable against the property within the district was calculated as follows: Total Projects Costs: $2,057,245.18 City Street Oversizing Costs: (134,992.55) City Water and Sewer Oversizing Costs: ( 23,068.82) Total District Costs: $1,899,183.81 Total Assessable Costs: $1,899,183.81 This project was 13% under budget due to the elimination of a portion of Oakridge Drive in the district improvements. This Resolution will notify all property owners in the district of these assessable costs to the district. Recommendation Staff recommends adoption of the Resolution to begin the closeout of SID #91." Councilmember Mabry withdrew from discussion and vote on this item due to a perceived conflict of interest. Civil Engineer Matt Baker reviewed the SID #91 closeout process and called attention to changes in the total assessment numbers. Councilmember Maxey made a motion, seconded by Councilmember Kirkpatrick, to adopt Resolution 89-171 as amended. Finance Director Alan Krcmarik noted the changes in the City Code at the time that the bonds were sold and he explained why adjustments were made on the interest earnings and how the adjustments applied to the district. He noted he was comfortable with the negotiations leading up to the assessing of the district. The vote on Councilmember Maxey's motion to adopt Resolution 89-171 was as follows: Yeas: Councilmembers Azari, Edwards, Horak, Kirkpatrick, Maxey and Winokur. Nays: None. (Councilmember Mabry withdrawn) THE MOTION CARRIED. -529- October 17, 1989 1 i Resolution 89-185 Authorizing a City Representative to Serve on the Board of Directors of the Fort Collins Community Development Corporation (FCCDC). Adopted Following is staff's memorandum on this item: "EXECUTIVE SUMMARY Several city national banks are in the process of establishing a bank community development corporation (CDC) for the purpose of stimulating private reinvestment in downtown Fort Collins through the redevelopment and adaptive reuse of key commercial and industrial buildings. A CDC is chartered under the auspices of the Office of the Comptroller of the Currency (OCC). A national bank CDC is a special bank subsidiary that can address the needs of small business by engaging in certain activities which the Federal Reserve has determined to be in the public interest and closely related to banking activity. Four positions on the board of directors have been reserved for the City, Downtown Development Authority, Downtown Business Association and a citizen at large. This is not a public policy making board. It will be a special bank subsidiary corporation chartered under the laws of Colorado and empowered by participating parent banks to purchase, own, rehabilitate, construct, manage and sell real property. It may make equity or debt investments in development projects and local businesses. BACKGROUND A CDC must serve a public purpose because of the wide range of activities permitted by the OCC. A CDC's program must benefit low and moderate income areas/residents or small business. It should address agreed upon community goals or needs as expressed in city -approved and community -supported downtown plans and neighborhood commercial revitalizations in distressed areas. The purpose of a bank CDC is not to displace private capital or take over neighborhood revitalization resource, but to leverage and stimulate private, public and community investment. City representation on the board of directors will ensure that the perspectives of affected community members are reflected in the deliberations of the board as it determines the CDC's public purpose and priorities, and develops, plans, and implements projects. Staff considers this to be among the more positive demonstrations of the banking community's commitment to assist in improving the private redevelopment and investment climates in the downtown. At the present time three city national banks, First Interstate, United Bank and University National Bank, have agreed to participate on the CDC. Colorado National Bank is considering participation. Whether this is a -530- October 17, 1989 single or multiple bank CDC, the issue is City involvement and ' participation as a moving force in promoting private reinvestment in the city center. Staff believes that the City does have a strong role to play and should be represented on the board to provide support to the CDC as needed and to assure the public purpose of the corporation is maintained. Attached is background information in support of this proposal." City Manager Burkett suggested a councilmember be chosen for the position. Development Services Director Mike Davis described the purpose and function of the CDC process and noted that three city banks had agreed to participate on the CDC. He clarified the commitment from the banks and explained United Bank's interest in program participation. Councilmember Edwards withdrew from discussion and vote on this item due to a perceived conflict of interest. Bruce Lockhart, 2500 East Harmony Road, expressed concerns about the City's participation on the board and had questions about the taxpayer's liability for failed investments through the CDC. Development Services Director Mike Davis stated that there was not a proposal before Council requesting financial participation in the CDC by the City and explained the invitation to participate was due to the Washington controller's office belief that it is in the best interest of the community for local government to participate in the CDC. He added that OCC regulations are extended to banks that choose to participate and rules are waived relative to how the banks handle investments and contributions and he noted the primary benefit from the federal government goes to local businesses and minority or low-income people. He stated the federal government believes that the presence by city government on the board will assure that the objectives of the Community Development Corporation are adhered to as part of the normal business activities of the corporation. City Attorney Roy stated he believed there would be no financial liability to the City based on its participation in an advisory capacity in the CDC. Councilmember Azari made a motion, seconded by Councilmember Mabry, to adopt Resolution 89-185 inserting the name of Loren Maxey. Development Services Director Mike Davis stated that the City's representative on the CDC would be a voting member of the board of directors. Councilmember Kirkpatrick stated her support for the motion and noted changes in the federal and local government regarding community ; development. She expressed her thanks to the local banks for their role in forming the CDC in Fort Collins. -531- October 17, 1989 ' Councilmember Horak stated he would not support the motion and noted his discomfort with the City's involvement. He stated he was not clear how the CDC would benefit the City and expressed concern regarding potential conflicts. He stated he believed the CDC was not a necessary entity for the City to achieve its goals. The vote on Councilmember Azari's motion to adopt Resolution 89-185 inserting the name of Loren Maxey was as follows: Yeas: Councilmembers Azari, Kirkpatrick, Mabry, Maxey, and Winokur. Nays: Councilmember Horak. (Councilmember Edwards withdrawn) THE MOTION CARRIED. Resolution 89-186 Appointing Councilmembers to a Wastewater Master Plan Subcommittee, Adopted Following is staff's memorandum on this item: "FINANCIAL IMPACT During review of the City Manager's recommended 1990 Budget, there was some concern expressed by various City Councilmembers regarding the City's ' Wastewater Master Plan, more specifically, the anticipated capital cost and financing associated with such. In response to that concern, it was suggested that a subcommittee consisting of some Councilmembers and Water Board members be formed to assist in resolving the potential financing issues related to the Plan. The subcommittee's primary tasks will be to review the recommended Wastewater Master Plan and financing alternatives and submit a report and recommendation to Council by the end of March, 1990." Utilities Director Rich Shannon gave a review of the subcommittee's purpose and scope. Councilmember Kirkpatrick made a motion, seconded by Councilmember Mabry, to adopt Resolution 89-186 and inserting the names of Ann Azari, Dave Edwards, and Loren Maxey. Yeas: Councilmembers Azari, Edwards, Horak, Kirkpatrick, Mabry, Maxey, and Winokur. Nays: None. THE MOTION CARRIED. Budget Agenda Review: City Manager City Manager Burkett gave an overview of the rates and the budget of Poudre Fire Authority and the Downtown Development Authority. He stated that Item ' N24, Resolution 89-187 Amending the Financial and Management Policies Relating to the 1990 Annual Budget as Previously Adopted in Resolution 89-174 and Item H28, Resolution 89-189 Authorizing a Revenue Allocation -532- October 17, 1989 Formula for the Poudre Fire Authority, had been withdrawn from the Budget Consent Calendar. Jim Creeden, P.O. Box 1022, requested that Item #27, Resolution 89-188 Approving the 1990 Budget for the Poudre Fire Authority, be withdrawn from the Budget Consent Calendar. Barbara Allison, 1212 Lynnwood Drive asked that Item #26, Second Reading of Ordinance No. 133, 1989, Amending Section 26-514(3) of the Code of the City of Fort Collins Relating to the Determination of Storm Drainage Fees, be removed from the Budget Consent Calendar. Bruce Lockhart, 2500 East Harmony Road, withdrew Item #31, Resolution 89-192 Adopting 1990 Recreation Fees and Charges, from the Budget Consent Agenda. Items Relating to Proposed 1990 Budget Budget Consent Items Items 24-32 are being presented These items have been reviewed ar being presented in this manner regular Consent Calendar, any it member of the Council, staff or balance of the Budget Consent is 24. 25. together in the Consent Calendar format. d discussed at Budget Worksessions and are to expedite their adoption. As with the am may be withdrawn for discussion by any public and will be considered after the adopted. This Resolution amends Section 3.8(b) of the 1990 Financial and Management Policies pertaining to the Poudre Fire Authority - Revenue Allocation Formula. Section 3.8 Poudre Fire Authority - Revenue Allocation Formula has been revised to reflect a change in the percentage of Property Tax mills allocated to the Poudre Fire Authority in 1990. This action will reduce revenue from the sale of electric energy by 3% beginning July 1, 1990, while meeting the revised Financial and Management Policies Relating to the 1990 Annual Budget. This Ordinance was unanimously adopted on First Reading on October 3 and will become effective on all billings rendered on or after July 1, 1990, relating to services provided during the month of June, 1990 and thereafter. W*11 October 17, 1989 26. 27 of Storm Drainage Fees. This Ordinance, which was unanimously adopted do First Reading on October 3, increases the City-wide storm drainage operations and maintenance fee 7% or $0.08 from $1.10 to $1.18 per month for the typical single-family residence. The increase in fees is needed to fund the Stormwater Utility's share of the Customer Service System, maintenance activities such as sweeping, concrete repair, mowing operations, and water quality. Storm Drainage basin monthly capital fees will increase from 0% to 15% per month or a maximum of $0.26 per month, for capital project construction and debt service payments from the 1988 bond issue. There are no proposed changes to basin new development fees in 1990. Resolution 89-188 Approving the 1990 Budget for the Poudre Fire Authority. The Intergovernmental Agreement between the the Poudre Valley Fire Protection District Fire Authority Board shall submit its respective governing bodies, the City an( Protection District. The budget becomes after approval of the appropriations by bodies and final adoption by the Poudre Directors. City of Fort Collins and specifies that the Poudre proposed budget to the the Poudre Valley Fire .he Authority budget only the respective governing Fire Authority Board of Adoption of the Resolution will approve the Poudre Fire Authority 1990 budget. In December 1981, the Council entered into an agreement with the Poudre Valley Fire Protection District, creating the Poudre Fire Authority. According to the Intergovernmental Agreement between the City of Fort Collins and the Poudre Valley Fire Protection District, the City will contribute funding for maintenance and operating costs, and equipment replacement needs to the Authority based on a "Revenue Allocation Formula". The Revenue Allocation Formula is to be set annually based upon a percentage of sales and use tax revenues. (excluding dedicated sales and use tax revenues that must be spent on specific projects) and a portion of the operating mill levy of the City's property taxes. With the adoption of this resolution, the City will Poudre Fire Authority in 1990 a sum equal to .303 of 2.25 cent Sales and Use tax applicable to all taxable contribute to one cent of the sales and uses -534- October 17, 1989 plus 5.108 mills of the existing operating property tax levy. The proposed contribution to Poudre Fire Authority of $5,621,258 will adequately meet the proposed 1990 expenditures as detailed in its Master Plan. 29. Resolution 89- To continue to satisfy cost recovery policies, an approximate 5.2 percent increase in operating revenue has been budgeted for 1990 in the Golf Fund. The Golf Board and staff are recommending green fee increases of 25 cents for nine holes and 50 cents for 18 holes of golf; and increases of $15 for adult annual passes and $13 for students, seniors, and spouse annual passes, and a $5 increase for junior annual passes. All other fees and charges remain at existing 1989 rates. 30. Resolution 89-191 Adopting a Rate Schedule for the Use of Lincoln Center Facilities. Proposed rates for 1990 reflect an increase in some room rentals. Rates have been adjusted to stay on a par with similar rental facilities in the area. The 1990 revenue projections are based on these fee changes. Major changes include: 1. A charge for Special Events in the Canyon West Room that are open to the public has been added for both commercial and non-profit users. 2. The Box Office phone order handling charge has been increased from $.50 to $1.00. 3. Terrace rental charge has been changed from a rate based on number of people attending to a flat rate. 31. Resolution 89-192 Adopting 1990 Recreation Fees and Charges. At its regular meeting on August 18, 1989, the Parks and Recreation Board voted to support the 1990 Recreation Division Fees and Charges as submitted by staff. Fees are being raised in a variety of program areas to cover fixed cost increases (utilities, computer charges, etc.), and to cover some infrastructure increases in several program areas. 32. Items Relating to the 1990 Downtown Development Authority Budget A. Resolution 89-193 Approving the 1990 Downtown Development Authority Budget. -535- October 17, 1989 ' The proposed 1990 DDA Budget of $215,124, approved by the DDA Board of Directors at its regular meeting of September 7, 1989, would maintain the present staffing level. No capital expenditures are anticipated. The Board has placed the budgeted year and excess in contingency. B. Second Reading of Ordinance No. 135, 1989, Setting the Mill Levy for the Downtown Development Authority for 1990 and Appropriating the Annual Expenditures for 1990. This Ordinance, which was adopted 7-0 on First Reading on October 3, sets the 1990 mill levy for the DDA at 3.675 and appropriates expenditures for 1990. C. Second Reading of Ordinance No. 136, 1989, Appropriating Unanticipated Revenue in the Downtown Development Authority Fund for Payment of Debt Service for the Year 1990. This Ordinance, which was adopted 7-0 on First Reading on October 3, appropriates funds for the Payment of Downtown Development Authority debt service for 1990. Ordinances on Second Reading were read by title by Wanda Krajicek, City Clerk. Item #25. Item N26. Councilmember Mabry made a motion, seconded by Councilmember Edwards, to adopt and approve all items not removed from the Budget Consent Calendar. Yeas: Councilmembers Azari, Edwards, Horak, Kirkpatrick, Mabry, Maxey, and Winokur. Nays: None. THE MOTION CARRIED. Ordinance No. 133, 1989, Amending Section 26-514(3) of the Code of the City of Fort Collins Relating to the Determination of'Storm Drainage Fees Adopted'on Second Reading Following is staff's memorandum on this item: "FINANCIAL IMPACT This Ordinance, which was unanimously adopted on First Reading on October 3, increases the City-wide storm drainage operations and maintenance fee 7% -536- October 17, 1989 or $0.08 from $1.10 to $1.18 per month for the typical single-family ' residence. The increase in fees is needed to fund the Stormwater Utility's share of the Customer Service System, maintenance activities such as sweeping, concrete repair, mowing operations, and water quality. Storm Drainage basin monthly capital fees will increase from OY to 15% per month or a maximum of $0.26 per month, for capital project construction and debt service payments from the 1988 bond issue. There are no proposed changes to basin new development fees in 1990." Councilmember Mabry made a motion, seconded by Councilmember Maxey, to adopt Ordinance No. 133, 1989 on Second Reading. Barbara Allison, 1212 Lynnwood Drive, stated her interest in beginning a referendum effort that would include water meters, direct election of the Mayor, and utility rates. Councilmember Horak expressed satisfaction with the fund's management and achieving its purpose in the most cost effective manner. Mayor Winokur gave compliments to the Storm Drainage Advisory Board for its hard work and recommendations in the budget process. The vote on Councilmember Mabry's motion to adopt Ordinance No. 133, 1989 on Second Reading was as follows: Yeas: Councilmembers Azari, Edwards, Horak, Kirkpatrick, Mabry, Maxey, and Winokur. Nays: None. , THE MOTION CARRIED. Resolution 89-188 Approving the 1990 Budget for the Poudre Fire Authority, Adopted Following is staff's memorandum on this item: "FINANCIAL IMPACT The City will provide $5,371,177 for Operations and Maintenance and $250,081 for Capital Equipment Replacement in 1990 based upon the Revenue Allocation Formula (RAF). For 1990, the RAF will be based on .303 of one cent of the City's Sales & Use Tax applicable to all taxable sales and uses, and 5.108 mills of property tax. EXECUTIVE SUMMARY The Intergovernmental Agreement between the City of Fort Collins and the Poudre Valley Fire Protection District specifies "that the Poudre Fire Authority Board shall submit its proposed budget to the respective governing bodies, the City and the Poudre Va11ey Fire Protection District. ' The budget becomes the Authority budget only after approval of the -537- October 17, 1989 ' appropriations by the respective governing bodies and final adoption by the Poudre Fire Authority Board of Directors. Adoption of the Resolution will approve the Poudre Fire Authority 1990 budget. BACKGROUND The 1990 budget is a balanced budget and is based on input from the Poudre Fire Authority Board of Directors and on priorities as established in the PFA Strategic Plan. The primary goal for 1990 is to prepare for implementation of the south truck company in 1991. To this end, the Choices 95 contribution of $173,000 will be used in 1990 to order the south truck (delivery time is approximately 12 months). Three firefighters are also included with approximately 213 of the cost being covered by overtime expenses. Whenever possible, these firefighters will be utilized in the southern stations to supplement our response capability until the south truck is implemented. The balance of the operations budget maintains existing service levels and includes normal inflationary increases for salaries, equipment and supplies. The only extraordinary increase is a 45% ($100,000) increase in state compensation insurance. In addition to the Choices 95 contribution discussed above, the capital budget includes the City equipment replacement contribution of $250,081 to purchase a replacement fire engine which is presently on order and the District's annual $100,000 contribution for a training facility. The budget also contains $166,201 from PFA reserves to complete payment on the administrative offices at 102 Remington. As usual, the 1990 budget provides a 2Y revenue reserve of $150,090. Thus the 1990 budget maintains the sound financial condition of the Authority, and with the final payment for the administrative offices, the PFA will be completely debt free." Councilmember Edwards made a motion, seconded by Councilmember Azari, to adopt Resolution 89-188. Jim Creeden, P.O. Box 1022, asked how many Council representatives were on the Poudre Fire Authority Board and inquired about a conflict of interest with the approval of the Poudre Fire Authority's Budget. He had questions regarding the Poudre Fire Authority's budget cuts. The vote on Councilmember Edwards' motion to adopt Resolution 89-188 was as follows: Yeas: Councilmembers Azari, Edwards, Horak, Kirkpatrick, Mabry, Maxey, and Winokur. Nays: None. THE MOTION CARRIED. 538- October 17, 1989 Resolution 89-192 Adopting 1990 ' Recreation Fees and Charges. Adopted Following is staff's memorandum on this item: "FINANCIAL IMPACT Adoption of this resolution will result in a balanced Recreation Fund budget for 1990. Cost recovery of fund expenses by revenue generated through fees and charges will remain at 63%. EXECUTIVE SUMMARY At its regular meeting on August 18, 1989, the Parks and Recreation Board voted to support the 1990 Recreation Division Fees and Charges as submitted by staff. Fees are being raised in a variety of program areas to cover fixed cost increases (utilities, computer charges, etc.), and to cover some infrastructure increases in several program areas. The primary increases are in the following areas: 1. Aquatics: Swim staff salaries at all three pools have been raised in an effort to become more competitive with other aquatic operations in the area and to draw more highly qualified staff to the City programs. When comparing City wages to four other operations (Fort Collins Club, Fort Collins Country Club, Larimer County-- Horsetooth Reservoir, and State Parks-- Boyd Lake), the average hourly wage paid by these four operations in 1989 is $4.33 (range $4.00-$4.75). The City pays from $3.90-$4.25. The budget reflects an increase for swim staff from $4.25-34.75/hr. Swim fees have been raised to cover these increases. 2. EPIC Maintenance and Custodial: EPIC is two and one-half years old and is beginning to show sings of wear and tear. More custodial hours and an increase in wages to attract better quality part-time staff have been built into the 1990 budget. Swim and Skate fees have been raised to cover the increases. 3. Part -Time Program Support in Youth Sports: This budget reflects the addition of a part-time person to assist with recruitment and training of coaches, monitoring of the programs through observation of practices and games, and evaluations of coaches and of the program. Activity fees have been raised to cover this increase. 4. Part -Time Program Support in General Class Activities: This person would assist with developing new programs, coordinating publicity and evaluating the activities. Some general class activity fees will be raised to cover this increase. FAST (Fort Collins Area Swim Team) rates and ice arena rental rates have I been raised 5% to assist in covering increased maintenance and custodial at EPIC. Affected groups have been notified and have given their consent." -539- October 17, 1989 ' Councilmember Kirkpatrick made a motion, seconded by Councilmember Mabry, to adopt Resolution 89-192. Bruce Lockhart, 2500 East Harmony Road, commented on the increased fees at EPIC and spoke regarding the self sufficiency issue of the facility. Roy Vratil, 1401 Shamrock, spoke against the fee increases. The vote on Councilmember Kirkpatrick's motion to adopt Resolution 89-192 was as follows: Yeas: Councilmembers Azari, Edwards, Horak, Kirkpatrick, Mabry, Maxey, and Winokur. Nays: None. THE MOTION CARRIED. Ordinance No. 132, 1989, Amending Chapter 26 of the Code Relating to Service Charges for Water and Wastewater Service. Adopted on Second Reading as Amended Following is staff's memorandum on this item: "FINANCIAL IMPACT ' The recommended 1990 budget includes an overall rate increase of 7.17% in monthly water fees. Approximately 3.OY of the proposed overall increase is for financing the purchase of additional raw water which Council approved in December, 1988. The overall rate increase results from a 11.0% increase in unmetered water fees, and a 3.0% increase in metered water fees. These increases are based upon the Utility's cost -of -service study which indicates water fees for unmetered customers are currently too low. The recommended 1990 budget also includes an overall rate increase of 6.00% in monthly wastewater fees. This overall rate increase results from a 4.56% increase in flat rate wastewater fees, and a 7.56Y increase in wastewater fees based upon metered water use. These increases are based upon the Utility's cost -of -service study which indicates wastewater fees For metered water customers are too low. This Ordinance was unanimously adopted on First Reading on October 3. On Second Reading, two new sections (Section I and Section 5) have been added to include the component of the rates which is attributable to payments in lieu of taxes and franchise fees. Councilmember Maxey made a motion, seconded by Councilmember Mabry, to adopt Ordinance No. 132, 1989 on Second Reading as amended. Yeas: Councilmembers Azari, Edwards, Horak, Kirkpatrick, Mabry, Maxey, and Winokur. Nays: None. I THE MOTION CARRIED. October 17, 1989 Ordinance No. 134, 1989, Appropriating ' Annual Expenditures for the City of Fort Collins in 1990, and Setting the Mill Levy for said Fiscal Year, Adopted on Second Reading as Amended Following is staff's memorandum on this item: "FINANCIAL IMPACT This Ordinance appropriates the total City Budget for 1990 in the amount of $215,189,628. It also sets the City mill levy at 8.797 mills which will generate $5.2 million. Sales and use tax revenues are projected at a 1% growth and will generate a total of $24 million. EXECUTIVE SUMMARY This Ordinance, which was unanimously adopted as amended on First Reading on October 3, appropriates the 1990 Annual Budget and sets the mill ]evy." City Manager Burkett called attention to the mill levy memo along with the revision from the County Assessor's Office and the reduction of $20,000,000 in the estimated assessed value. He explained the losses the City would incur should the mill levy be maintained at 8.797 and outlined the options of setting the mill levy at a higher rate. ' City Manager Burkett recommended that if Option I was adopted, an additional $172,000 should be removed from the revenue reserve. Councilmember Maxey made a motion, seconded by Councilmember Azari, to adopt Ordinance No. 134, 1989 (Option 1) on Second Reading as amended. Bob Teuting, 916 Cheyenne Drive, commented on the City's debt burden. Jim Creeden, P.O. Box 1022, asked about the General Fund reduction of $500,000 and commented on the proposed recycling program. He commented on articles featured in the Denver Post about city-wide recycling and spoke against the program. Councilmember Kirkpatrick clarified the option regarding the maintenance of the mill levy which would result in a decrease to residential properties and no increase to businesses. She added that a $294,000 decrease from property tax collections would have a negative impact on the City's General Fund and stated she was uncomfortable supporting the motion. She spoke about the state's tax structure where a disproportionate share of the property tax burden is placed on businesses as opposed to residences and stated it was difficult to find an alternative option that she could support. She stated she would reluctantly support Option 1 but would rather see a change in the distribution of the tax burden. , -541- October 17, 1989 ' Councilmember Horak emphasized the importance of knowing how much money per year the City should be receiving in property tax revenues. He encouraged that the issue be dealt in a planned process to meet the City's objectives. City Manager Burkett noted that Anheuser-Busch makes up 10% of the City's total assessed valuation (E60,000,000) and stated that Hewlett-Packard makes up 2.8% ($17,100,000). He added that the ten highest assessed values represent a total of 20% of the City's assessed valuation. Councilmember Edwards spoke in favor of not raising taxes and expressed concern regarding a possible trend towards dependence on sales revenue as opposed to property tax revenue. He stated he believed the City was at risk if the revenue base continued to focus on sales tax and encouraged the City to make use of the existing revenue reserves. Councilmember Mabry noted his frustration with the system shifting from residential property taxes to business property taxes and commented on the General Fund Reserves that could provide for revenue reductions. He stated he believed it was a reasonable compromise to make up the deficiencies by using the reserves that have been previously set aside. Councilmember Azari mentioned the incremental increases in cost of services provided by the City and stated she believed the City could manage with the remaining dollars. She spoke in favor of drafting a policy that shows a ' ratio of property tax to sales tax in relation to a fiscal plan. She stated that she believed the City could continue to provide quality service and noted she saw no reason for a mill levy increase. Mayor Winokur spoke of maintaining the mill levy while creating the illusion of holding down taxes and stated he was not comfortable with Option 1. He spoke of the increased cost level to provide services. The vote on Councilmember Maxey's motion to adopt Ordinance No. 134, 1989 (Option 1) on Second Reading as amended was as follows: Yeas: Councilmembers Azari, Edwards, Horak, Kirkpatrick, Mabry, Maxey, and Winokur. Nays: None. THE MOTION CARRIED. -542- October 17, 1989 Resolution 89-175 Adopting the 1990 ' Budget for the City of Fort Collins, as amended by City Council on October 3, 1989, and Fixing the Mill Levy, Adopted as Amended Following is staff's memorandum on this item: " FINANCIAL IMPACT This Resolution adopts the total City Budget for 1990 in the amount of $215,189,628. It also sets the City mill levy at 8.797 mills which will generate $5.2 million. Sales and use tax revenues are projected at a 1% growth and will generate a total of $24 million. EXECUTIVE SUMMARY This Resolution adopts the 1990 Budget for the City of Fort Collins, as amended by City Council on October 3, 1989, and sets the mill levy, as follows: General Fund 0 & M............................. 1.605 mills Parks 0 & M.................................... .809 mills Poudre Fire Authority Contribution ............. 4.911 mills Fire Pension Fund (Gen. Fund Unfunded Liab.)... .143 mills (PFA Employer Contrib.)...... .197 mills Parks Debt Service ............................. 1.132 mills TOTAL 8.797 mills BACKGROUND Changes from the 1990 Proposed Budget, as amended by City Council and read into record on October 3, 1989, are as follows: General Fund General Fund appropriations were decreased by $777,184 and increased by $81,764 resulting in a net decrease of $695,420. Moving the Cemetery program back into a separate fund reduced General Fund appropriations by $277,184. An additional $500,000 was taken out based on Council direction. Two items were added, a Performing Arts feasibility study for $40,000 and a full-time recycling coordinator for $41,764. Cemetery Fund Total 1990 appropriations were reduced by $3,726. Council directed that the Cemetery program remain as a separate fund (not a division in , the General Fund) and that appropriations be taken back to adopted -543- October 17, 1989 ' 1989 budget levels, plus $14,000 for maintenance (weed control, turf maintenance, etc.). Benefits Fund Appropriations were reduced by $1,072,161 per Council direction. Revenues will remain as originally projected in the 1990 Proposed Budget. A method to lower City expenditures in this fund will need to be determined during the remainder of 1989 and 1990 (i.e., higher deductibles, more employee contributions, etc.). Cultural Services & Facilities Fund Appropriations were increased by $40,000. Council directed that $40,000 be appropriated for a feasibility study to investigate a new Performing Arts Complex. The General Fund subsidy to the Cultural Services & Facilities Fund was also increased by $40,000. As a result of Council direction on October 3, 1989, to reduce General Fund appropriations by $500,000, additional changes to appropriations are as follows: General Fund Reductions were made in the General Fund in accordance with Council ' direction in the amount of $500,407. The additional $407 reduction is due to the actual dollar amount associated with the items that were taken out of the General Fund budget. Cemetery Fund Appropriations have been reduced by $38,000. A supervisory level position in the Cemetery Division will be moved into an existing vacancy in the Parks Division. (The General Fund subsidy to the Cemetery Fund was reduced by $38,000.) Golf Fund Appropriations have been increased by $22,500. Currently, only 11.5% of the Golf Managers time has been charged to the Golf Fund, the remainder has been charged to the General Fund (this position is also the Assistant to" the Cultural, Library and Recreation Services Director). This change appropriates 50Y of the Golf Managers time to the Golf Fund. Capital Proiects Fund - General Capital Proiects Appropriations have been reduced by $38,000. Three Major Building Maintenance projects were eliminated including. the Grandview office ' remodel, relocation of Risk Management, and the Equipment Services vestibule. General Fund transfers to the Capital Projects Fund have been reduced by $38,000." -544- October 17, 1989 Councilmember Mabry made a motion, seconded by Councilmember Edwards, to adopt Resolution 89-175 inserting in Section 2 the following changes: General Fund 0 & M............................. 1.355 mills Parks 0 & M.................................... .837 mills Poudre Fire Authority Contribution............. 5.083 mills Fire Pension Fund (Gen. Fund Unfunded Liab.)... .148 mills (PFA Employer Contrib.)...... .203 mills Parks Debt Service ............................. 1.171 mills TOTAL 8.797 mills City Manager Burkett noted that the resolution reflected the $500,000 reduction in the General Fund. Jim Creeden, P.O. Box 1022, spoke regarding the budget cuts in the Police Department and suggested a square foot comparison be done between the Investigation Division's office space and the office space in the City Manager's office. Councilmember Kirkpatrick made a motion, seconded by Councilmember Horak, to amend Resolution 89-175 and designate $250,000 for the 1990 recycling program (from the undesignated reserves, specified to be designated reserves for the curbside recycling for 1990 on page II-2). Councilmember Kirkpatrick stated she was not completely comfortable with $250,000 as the amount for the curbside recycling program and noted the figure could more or less depend on the type of program that is developed. She stated that not designating a large amount, equal to the proposed start-up costs, would make the 1990 curbside recycling program difficult to implement. She noted her intent with the amendment was to assure Council and the citizens of Fort Collins that there are monies available to implement the program. Michael Doton, 3419 Colony Drive, Vice -Chair, Poudre Canyon Sierra Club, spoke in support of the amendment. Jim Creeden, P.O. Box 1022, opposed the amendment. Bruce Lockhart, 2500 East Harmony Road, commented on the'poor market for recycling and stated there was no demand for recycled materials. Roy Vratil, 1401 Shamrock, commented about the federal grant funds used to implement the program. Councilmember Mabry stated he would not support the amendment and that he believed funding the recycling program was premature. He spoke about the recycling options that were drafted by staff for Council consideration. He stated he was not willing to set aside $250,000 to cover the unknown costs of the program and encouraged the reserves continue as reserves. He urged 1&Yi411 October 17, 1989 ' further review of the recycling program and make appropriations at a later time. Councilmember Edwards stated he had received more comments from citizens on the recycling program than any other issue and stated he was committed to establishing a city-wide curbside recycling program. He stated that he believed the amendment was in direct contrast with the way the program could work best. He stated he was not convinced that the City had to spend $250,000 for the recycling program and he encouraged staff to research and develop options, so that Council could make a decision based on a wide range of options. He noted that establishing a dollar figure prior to the known costs of the project precludes options and stated he would not support the amendment. Councilmember Azari stated that she believed a recycling program should be developed first with clear direction then the work of funding the program could begin. She stated she would not support the motion and stressed the importance of the City developing the best recycling program based on the experiences of other communities. She expressed disappointment regarding Council's request for developmental information on the recycling program to be ready for Council consideration during the budget process and noted that the information was not presented to Council. She added that this resulted in Council not making a decision regarding the recycling program to be included in the 1990 Budget process. ' Councilmember Horak stated he would support the motion and noted he believed the best time to make financial decisions was during the budget process. He expressed concern that the $500,000 would be the amount looked at for special allocations that weren't budgeted in 1990 and urged a commitment be made regarding the recycling program. He recommended that dollars be allocated with a clear designation for 1990. City Manager Burkett referred to a memo that Council received on September 12 dealing with implementation of the recycling program and noted the options that were outlined. He stated he believed the information was available to Council to direct staff to proceed on a particular option, but recommended that the options be reviewed along with alternative ways of financing the recycling program. Deputy City Manager Noe stated the developmental information on the recycling program would-be ready for Council consideration at the November 28 worksession. The vote on Councilmember Kirkpatrick's motion to amend Resolution 89-175 and designate $250,000 for the 1990 recycling program from the undesignated reserves was as follows: Yeas: Counci.lmembers Kirkpatrick and Horak. Nays: Councilmembers Azari, Edwards, Mabry', Maxey, and Winokur. THE MOTION FAILED. -546- October 17, 1989 Councilmember Horak suggested reductions be made in the following areas Communications and Public Affairs position be reduced by $50,000 Economic Development Data Base position be reduced by 38,000 Management Intern program be reduced by 24,000 Quality Improvement position be reduced by 38,000 Councilmember Horak encouraged reinstituting Police Department positions and recommended reductions in the Administrative Services area. Councilmember Azari suggested a serious look at cost reduction while maintaining services to the public and recommended a hiring freeze for sixty days and encouraged the City Manager look at options of reducing the budget to obtain the $500,000. Councilmember Kirkpatrick expressed concern regarding the continuation of the Management Intern program in terms of its expected value to the community versus the value to the persons who hold that position. She stated she was unsure about supporting a reduction in that program without further investigation and stated she believed the Quality Improvement Program was the most important management tool that the City Manager has brought to Council. She spoke of the program's management style within the organization which provides substantial benefits to the community and stated she would not support a reduction in the Quality Improvement Program. She noted her willingness to discuss the remaining proposals. Councilmember Edwards stated he would prefer no reductions within the Police Department and commented on the effects of a hiring freeze on Police Services. Councilmember Azari proposed a five percent reduction in Administrative Services ($298,900), a five percent reduction in Development Services ($172,270), and a two month hiring freeze ($120,000) which would reduce costs over $500,000. She recommended a ten percent reduction within City Council's budget. Mayor Winokur noted how appropriations are established and commented on Council's expectations of the City Manager's authority to make adjustments within the funds and implement Council's objectives. Councilmember Horak made a motion, seconded{by Councilmember Edwards, to amend Resolution 89-175 to reinstitute $69128 in Police Services (4 items), and take the $69,128 from the budget of Administrative Services. City Manager Burkett clarified that a 60 day hiring freeze would save the City $120,000 and noted the impact of hiring freezes. He stated hiring freezes are not a wise long-term solution for financial planning and noted the hiring freeze could begin immediately, thus the savings from the 1989 budget would be carried into 1990. Councilmember Maxey stated he was not comfortable with the implementation process and added he would reluctantly support the motion. -547- October 17, 1989 1 Councilmember Edwards noted his support for the motion and commented on the value of Police Services. He noted the discussion of $69,128 in contrast to the City's reserves of over $1M. Councilmember Horak commented on the request for $500,000 to be set aside and the reductions that could be made in the budget. He stated he believed it was not logical to cut a police officer position and explained why he was not in favor of a hiring freeze. City Manager Burkett explained that the hiring freeze and position cuts with respect to the Police Department would not eliminate a police officer assigned to the street, rather it was only the reduction of additional positions for 1990. Councilmember Mabry stated he was uncomfortable making arbitrary decisions without clearly understanding the impact of what was being discussed and explained that while it might sound wise to cut Administrative Services, he was bothered by not knowing the outcome. He pointed out that Council had clearly indicated what it believed to be important and added that Council was meddling in the City Manager's job. City Manager Burkett offered comments on the proposed budget cuts in Administrative Services and outlined the specific services that are provided. He suggested reducing the General Fund by $430,000 or reducing the funding and time spent on specific programs that are judged as a low priority. Councilmember Edwards withdrew his second to Councilmember Horak's motion. THE MOTION DIED DUE TO LACK OF A SECOND. Councilmember Edwards made a motion the General Fund by $430,000, rather the remaining $70,000 be allocated to to amend Resolution 89-175 to reduce than by $500,000 and to direct that Police Services. City Attorney Roy explained the changes necessary in the Appropriation Ordinance if the proposed amendment changed the dollar amount and stated it would not be necessary to table the Resolution prior to changing the Appropriation Ordinance. He explained the Ordinance would not become effective till ten days after the second reading and stated that amending the Resolution or amending the second reading of the Ordinance could be done in either order. THE MOTION DIED DUE TO LACK OF A SECOND. Councilmember Horak made a motion, seconded by Councilmember Edwards, to amend Resolution 89-175 by adding $69,128 to the Police Department with the City Manager's discretion, to make additional General Fund reductions to make up the $69,128. Yeas: Councilmembers Azari, Edwards, Horak, Mabry, and Maxey. Nays: Councilmembers Kirkpatrick and Winokur. -548- October 17, 1989 THE MOTION CARRIED. City Manager Burkett noted that the changes would be made to reflect Council's decision and added that a memo would be sent to advise of the additional reductions in the General Fund to offset the $69,128 that was allocated to the Police Department. Councilmember Maxey made a motion, seconded by Councilmember Azari, to amend Resolution 89-175 and impose a 60 day hiring freeze for November and December 1989. City Manager Burkett pointed out the hiring freeze would increase the projected cash balance for 1989. Councilmember Maxey suggested that if a position needed to be filled within the next two months, the City Manager could request the vacancy be filled, otherwise the hiring freeze would carry through the end of the year. Councilmember Azari stated she supported the hiring freeze because it allowed the City Manager flexibility to establish fund management of the 1990 Budget for the purpose of meeting the $69,128 reduction. Mayor Winokur stated he would not support the amendment and commented on the negative effects of a hiring freeze. He added that he believed the City Manager was clearly aware of Council's concerns about the budget. The vote on Councilmember Maxey's motion to amend Resolution 89-175 and impose a 60 day hiring freeze for November and December 1989 was as follows: Yeas: Councilmembers Azari and Maxey. Nays: Councilmembers Edwards, Horak, Kirkpatrick, Mabry, and Winokur. THE MOTION FAILED. 1 Councilmember Kirkpatrick commented on the budget process as being depressing and noted the fund balance figures and the undesignated reserves for 1989 and for 1990 were very modest ($2.5M undesignated reserves). She expressed frustration with the discussion of the $69,128 and spoke regarding the consistent sales tax growth for the past two years. She stated she believed cutting $500,000 from the City Manager's recommended budget, along with the proposed cuts to the benefits fund, and the cemetery fund reduction were unnecessary. She stated she was committed to holding the line on expenses, but not at the expense of reducing community service and noted that service excellence could not be attained by budget cuts in a time of relative prosperity. She encouraged continued program management and evaluation, and urged no unnecessary reductions.. She elaborated that Council was giving a very confusing message to the public and noted the City has $2.5M in undesignated reserves and stated she was disappointed with the budget process and Council's lack of support for recycling. Councilmember Mabry noted his frustration with the budget process and stated he was not eager to spend the undesignated reserves. He noted the ' -549- October 17, 1989 ' importance of locating all of the City's unfunded liabilities, then using the reserves to address the debts. He encouraged not committing the reserves to fund new programs. He expressed disappointment about the lack of time available to address the areas of concerns during the budget process. Councilmember Edwards described his involvement with the budget process as difficult and stated he believed Council created confusion for the public on most issues. He expressed his disappointment with the workings of the budget process and the relationship between staff and Council. Councilmember Horak stated he did not object to revising the City Manager's budget recommendations and stated he believed it was Council's job to reallocate funds. He spoke regarding special improvement districts and encouraged that significant resources be located so that budget cuts would not need to be made mid -year and spoke of the importance of having money in reserve funds. Councilmember Azari spoke of the confusion she experienced in the budget process and stated she did not believe the process was conducted in the spirit of attempting to disprove the City's system of government. She described the process as being an honest exchange with direction from Council. Mayor Winokur acknowledged that the budget process had involved a great deal of time and work and pointed out the budget for 1990 reflected spending increases to enhance services and pointed out the importance of dealing with the outstanding liabilities thus avoiding negative impact on the city. He gave credit to the City Manager and staff for preparing a response to Council's long-term goals and specific objectives and spoke in favor of having extra reserve funds. The vote on Councilmember Mabry's motion to adopt Resolution 89-175 as amended was as follows: Yeas: Councilmembers Azari, Edwards, Horak, Kirkpatrick, Mabry, Maxey, and Winokur. Nays: None. THE MOTION CARRIED. Resolution 89-187 Amending the Financial and Management Policies Relating to the 1990 Annual Budget as Previously Adopted in Resolution 89-174, Adopted as Amended Following is staff's memorandum on this item: "FINANCIAL IMPACT" ' This Resolution amends Section 3.8(b) of the 1990 Financial and Management Policies pertaining to the Poudre Fire Authority - Revenue Allocation Formula. Bi•1Yi1C October 17, 1989 Section 3.8 Poudre Fire Authority - Revenue Allocation Formula has been revised to reflect a change in the percentage of Property Tax mills allocated to the Poudre Fire Authority in 1990. The first paragraph in Section 3.8(b) states: "The City allocates Property tax on PFA, maintaining the relative proportion (64.9%) of Property Tax mills as originally allocated in the PFA. In accordance with Resolution 89-175 the City currently contributes 4.995 mills of existing Property Tax to PFA." The proposed revision to Section 3.8(b) states: "The City allocates 66.64% of the Property Tax mills to the PFA in 1990. In accordance with Resolution 89-175 the City currently contributes 5.108 mills of existing Property Tax to the PFA." This change to the Revenue Allocation Formula is a result of a decrease in the net assessed valuation for Fort Collins. The Colorado State Board of Equalization reduced the percentage used to calculate the assessed value for residential property. The adjustment was made after the Recommended Budget had been submitted to Council." Councilmember Mabry made a motion, seconded by Councilmember Horak, to adopt Resolution 89-187 with a modification to Exhibit A (b) and inserting in subparagragh (b) the numbers of 69.31% and a mill number of 5.286. Yeas: Councilmembers Azari, Edwards, Horak, Kirkpatrick, Mabry, Maxey, and Winokur. Nays: None. THE MOTION CARRIED. Resolution 89-188 Approving the 1990 Budget for the Poudre Fire Authority, Adopted as Amended Following is staff's memorandum on this item: "FINANCIAL IMPACT The City will provide $5,371,177 for Operations and Maintenance and $250,081 for Capital Equipment Replacement in 1990 based upon the Revenue Allocation Formula (RAF). For 1990, the RAF will be based on .303 of one cent of the City's Sales & Use Tax applicable to all taxable sales and uses, and 5.108 mills of property tax. EXECUTIVE SUMMARY The Intergovernmental Agreement between the City of Fort Collins and the Poudre Valley Fire Protection District specifies that the Poudre Fire Authority Board shall submit its proposed budget to the respective governing bodies, the City and the Poudre Valley Fire Protection District. The budget becomes the Authority budget only after approval of the appropriations by the respective governing bodies and final adoption by the Poudre Fire Authority Board of Directors. -551- October 17, 1989 ' Adoption of the Resolution will approve the Poudre Fire Authority 1990 budget. The 1990 budget is a balanced budget and is based on input from the Poudre Fire Authority Board of Directors and on priorities as established in the PFA Strategic Plan. The primary goal for 1990 is to prepare for implementation of the south truck company in 1991. To this end, the Choices 95 contribution of $173,000 will be used in 1990 to order the south truck (delivery time is approximately 12 months). Three firefighters are also included with approximately 213 of the cost being covered by overtime expenses. Whenever possible, these firefighters will be utilized in the southern stations to supplement our response capability until the south truck is implemented. The balance of the operations budget maintains existing service levels and includes normal inflationary increases for salaries, equipment and supplies. The only extraordinary increase is a 45% ($100,000) increase in state compensation insurance. In addition to the Choices 95 contribution discussed above, the capital budget includes the City equipment replacement contribution of $250,081 to purchase a replacement fire engine which is presently on order and the ' District's annual $100,000 contribution for a training facility. The budget also contains $166,201 from PFA reserves to complete payment on the administrative offices at 102 Remington. As usual, the 1990 budget provides a 2Y revenue reserve of $150,090. Thus the 1990 budget maintains the sound financial condition of the Authority, and with the final payment for the administrative offices, the PFA will be completely debt free." Councilmember Mabry made a motion, seconded by Councilmember Edwards, to adopt Resolution 89-189 by amending the mill figure to 5.286. Yeas: Councilmembers Azari, Edwards, Horak, Kirkpatrick, Mabry, Maxey, and Winokur. Nays: None. THE MOTION CARRIED. Other Business Councilmember Kirkpatrick made a motion, seconded by Councilmember Horak, for the Finance Committee with staff's assistance do three things: move with haste to provide information on the City's debt and unfunded liability situation, that the information be shared with the entire Council, and to have the Finance Committee analyze property tax dependence focusing on ' policy recommendation for Council consideration. Yeas: Councilmembers Azari, Edwards, Horak, Kirkpatrick, Mabry, Maxey, and Winokur. Nays: None. -552- October 17, 1989 THE MOTION CARRIED. City Manager Burkett commented on the learning experience from this year's overall budget process and spoke of the improvements that could be made. He elaborated on gathering information from Council and staff to critique the budget format and stated his frustration with the budget process did not relate to Council's attempt to adopt the budget or change the direction of the City programs. He stated he believed that staff was on target in terms of meeting the goal objectives and assessed the frustrations as part of the most important policy decision that comes before Council. He commented on the lack of information regarding the recycling program due to it being added late in the budget process. Mayor Winokur thanked the City Manager and staff for their hard work throughout the budget process. Adjournment Councilmember Kirkpatrick made a motion, seconded by Councilmember Azari, to adjourn the meeting. Yeas: Councilmembers Azari, Edwards, Horak, Kirkpatrick, Mabry, Maxey, and Winokur. Nays: None. The meeting adjourned at 10:20 p.m. Mayor ATTEST: Aa,..L`\\} City Clerk -553-