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HomeMy WebLinkAboutMINUTES-02/07/1989-Regular' February 7, 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, February 7, 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: Estrada, Horak, Kirkpatrick, Mabry, Maxey, Stoner, and Winokur. Staff Members Present: Burkett, Krajicek, Roy Citizen Participation A. Proclamation naming the month of February as American History Month was forwarded to the appropriate persons. Yolonda C. Nicely, 1625 Crestmore Place, expressed concern about the dental (medical) waste that was deposited in her yard. Tom McKenna, 3500 Rolling Green, spoke against the use of City funds for Chamber of Commerce membership dues. Jim Creeden, 4020 Goodell Lane #4, noted the salaries and bonuses received by department heads and commented on Deputy City Manager Noe's recent meetings with Police Department employees. Agenda Review: City Manager City Manager Burkett noted that Item #41, Resolution 89-39 Finding Substantial Compliance and Initiating Annexation Proceedings for the Fort Collins Industrial and Technical Park Venture First Annexation, and Item #42, Resolution 89-40 Finding Substantial Compliance and Initiating Annexation Proceedings for the Fort Collins Industrial and Technical Park Venture Second Annexation, have been pulled from the Agenda. He noted that Item #21, Resolution 89-29 Authorizing the Purchase of the Mawhinney-Johnson Mobile Home Park From Mr. Richard Gutierrez in the Amount of $417,000, had been revised. He indicated Item #37, Items Relating to the Policies for Special Improvement Districts, had been modified and a new item was included in Other Business, Resolution 89-41 Amending Resolution 89-5 to Correct a Project Name for "Shields Street, Davidson to Casa ' Grande". He noted that Item #37, Items Relating to the Policies for Special Improvement Districts, will be preceeding Item #35, Hearing and February 7, 1989 First Reading of Ordinance No. 17, 1989, Authorizing the Aggregate Refunding of Special Improvement District Bonds, and Item #36, Hearing and First Reading of Ordinance No. 18, 1989, Amending Ordinance No. 2, 1986 Which Assessed the Cost of Landmark Special Improvement District No. 80. Councilmember Estrada requested Item #21, Resolution 89-29 Authorizing the Purchase of the Mawhinney-Johnson Mobile Home Park From Mr. Richard Gutierrez in the Amount of $417,0OO, be withdrawn from the Consent Agenda. Consent Calendar This Calendar is intended to allow the City Council to spend its time and energy on the important items on a lengthy agenda. Staff recommends approval of the Consent Calendar. Anyone may request an item on this calendar be "pulled" off the Consent Calendar and considered separately. Agenda items pulled from the Consent Calendar will be considered separately under Agenda Item #30, Pulled Consent Items. il 7. Consider approval of the minutes of the regular meetings of January 3 and January 17. On January 17, Council adopted by a vote of 5-0 Resolution 89-12 authorizing the Mayor to enter into an agreement for the City to continue to provide Larimer County residents with general library services and library outreach services to serve the handicapped, elderly and other isolated persons. In exchange for providing these services during 1989, the County will pay to the City $110,964. This Ordinance, which was adopted 5-0 on First Reading on January 17, appropriates the Outreach funds. General Service funds were projected and appropriated with the 1989 budget. This is a request to amend various portions of the Zoning Code pertaining to political signs. The changes will result in categorizing "political signs" into two new sign classifications: "election signs" and "ideological signs." The amendments will also establish specific regulations for' these two types of signs with respect to size and duration as well as'make some other minor changes to aid in the administration of this Ordinance. These changes are in keeping with the purpose of the Sign Code, for example, protecting the aesthetic qualities of the City and ensuring the safety of vehicular and pedestrian traffic, while still recognizing the First Amendment rights of the persons posting the signs. EM February 7, 1989 1 8. Hearing and First Reading of Ordinance No. 13, 1989, Authorizing the Director of Purchasing and Risk Management to Enter into an Agreement for the Lease/Purchase of Vehicles and Equipment. 10. 11. Proposals were received on February 2 from 13 firms to provide lease/purchase financing for the City's current equipment requirements. The total amount to be lease/purchased is estimated to be $900,000. The lowest net effective interest rate of 7.58% was received from General Electric Fleet Services, Inc. of Eden Prairie, Minnesota. The ordinance proposes to amend the code for three purposes: 1) to bring provisions of the industrial pretreatment program into compliance with new Environmental Protection Agency requirements; 2) to correct minor inconsistencies in the pretreatment program; 3) to amend sections that prohibit the deposit of septage wastes into the wastewater system to allow use of the septage transfer station. The owners of the property at 2020 South College known as Silo Plaza have requested that a portion of South College Avenue right-of-way located adjacent to their property be vacated as street right-of-way, however, retaining the same area as a utility easement. The right-of-way was originally dedicated by the owners of this property for a future frontage road. This was required by the City at a time when the City intended to have frontage roads constructed all along South College Avenue. Since the City no longer plans to construct a frontage road in this location, no need exists for keeping this portion of street right-of-way. All city agencies, the State Highway Department, and utility companies have been contacted and have no objections to the proposed vacation of right-of-way and reservation for a utility easement. The applicant and property owner, the Fort Collins/Loveland Water District, has submitted a written petition requesting annexation of approximately .171 acres located west of Overland Trail and north of Prospect Road. K1 February 7, 1989 12. 13. 14. 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. At the time of the hearing on the annexation, the property being considered for annexation will have been, for a period of not less than three (3) years, completely surrounded by property contained within the boundaries of the City of Fort Collins. The property being considered for annexation is approximately 187.75 acres in size and is located south of Harmony Road and east of Taft Hill Road. The proposed Resolution determines that it is in the best interest of the citizens of the City to annex the area and that the annexation complies with the Municipal Annexation Act. The Resolution also 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 second reading of the annexation and zoning ordinances. A public hearing on the annexation is not required by Colorado law. The owner, Overlook Farm Inc., annexation of approximately 20.5 of Prospect Road. has submitted a petition requesting acres located west of I-25 and north 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 ordinance. Not less than thirty days of prior notice is required by Colorado law. The owner, Overlook Farm Inc., has submitted a petition requesting annexation of approximately 171.9 acres located west of I-25 and north of Prospect 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 dannexation, and I 1 Wo February 7, 1989 1 15. 16. 1 17. r directs that notice be given of the hearing. The hearing will be held at the time of first reading of the annexation ordinance. Not less than thirty days of prior notice is required by Colorado law. Lyal Nelson is the applicant and owner of the property to be annexed, which. is 5.3 acres, located 3/4 mile south of Harmony Road, between the Burlington -Northern Railroad Tracks and the Southridge Greens development. The proposed Resolution makes a finding that the proposed annexation 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 New Note Partnership, is the applicant and owner of the property to be annexed (which is 149.7 acres) located east of Hewlett-Packard and north of Harmony Road. The proposed Resolution makes a finding that the proposed annexation 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 New Note Partnership is the applicant and owner of the property to be annexed (which is 97.2 acres) located west of I-25 and north of Harmony Road. The proposed Resolution makes a finding that the proposed annexation 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. SOIiII February 7, 1989 18. Resolution 89-26 Finding Substantial Compliance and Initiating Annexation Proceedings for Koldeway Annexation. ' Arthur T. Koldeway is the applicant and owner of the property proposed to be annexed (which is 8.1 acres) located at the northwest corner of I-25 and Harmony Road. The proposed Resolution makes a finding that the proposed annexation 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. 19. Resolution 89-27 Stating Intent to Annex Certain Property and Initiating Annexation Proceedings for the Ridge Annexation. At the time of the hearing on the annexation, the property being considered for annexation will have been, for a period of not less than three (3) years, completely surrounded by property contained within the boundaries of the City of Fort Collins. The property being considered for annexation is approximately 187.66 acres in size and is located south of Harmony Road and west of Shields Street. The proposed Resolution determines that it is in the best interest of the citizens of the City to annex the area and that the annexation complies with the Municipal Annexation Act. The Resolution also 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 second reading of the annexation and zoning ordinances. A public hearing on the annexation is not required by Colorado law. 20. Resolution 89-28 Finding Substantial Compliance and Initiating Annexation Proceedings for the Skyview Ltd. Annexation. The applicant and property owner, James P. Ryan, has submitted a written petition requesting annexation of approximately 42.0 acres located west of College Avenue and north of the Skyview Subdivision. 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. 1 -91- February 7, 1989 1 21. On September 6, 1988, City Council approved the revised Spring Creek Master Drainage Plan. This revised plan changed the recommended improvements between College Avenue and the Burlington Northern Railroad. The revised plan impacts thirty mobile home residences and two houses as compared to 93 in the 1980 plan and costs $2.0 million as compared to $4.1 million in the original plan. The floodplain has been identified and is similar for both studies. This right-of-way acquisition will purchase the Mawhinney-Johnson Mobile Home Park. The City will then be able to continue the relocation of the affected mobile home residences. 22. Items Relating to the Ridesharing (Commuter Pool) Program A. Resolution 89-30 Authorizing a Contract with the State of Colorado for the Receipt of Federal Aid to Urban Systems (FAUS) to Operate a Ridesharing Program (Commuter Pool). B. Hearing and First Reading of Ordinance No. 16, 1989, Appropriating Unanticipated Revenue in the Transportation Services Fund. ' This Ordinance appropriates unanticipated revenues to fund an on -going ridesharing program for calendar year 1989. Federal Aid to Urban Systems (FAUS) funding has been identified and is available to the City for this purpose. This source increases the amount of federal funding available to the City for the ridesharing program. Even though these are federal funds, the State of Colorado is the administrator of the rideshare program, thus necessitating a contract with the state and a resolution authorizing an intergovernmental agreement. 23. This Resolution authorizes the Director of Purchasing and Risk Management to approve a change order to increase the amount of street repair in the 1988 Local Street Maintenance Program. As part of the original program budget, a $200,000 contingency was anticipated to cover additional concrete repair, patching, pavement grinding and overlay in the street maintenance projects. This change order for $185,859.56 represents the final quantities and charges to the contingency. The Capital Projects Procedures Manual requires that all change orders in excess of $50,000 be approved by City Council. ILOlwA February 7, 1989 24. Early in 1988, the City, the Rocky Mountain Flycasters Northern Colorado Chapter of Trout Unlimited, and the Poudre River Trust entered into a professional services agreement with Tom Pitts and Associates to work with interested parties in developing a work plan for the Poudre River Corridor Fishery Project. The plan was completed and approved by the Poudre River Corridor Committee in November of 1988. All of the participants in the development of the work plan are now being asked to formally endorse the plan. 25. Section 43-6-301, C.R.S.. gives the Colorado State Patrol (after consultation with local governments) sole authority to designate which public roads shall be used and which shall not be used by motor vehicles transporting hazardous materials. The Colorado State Patrol is in the process of designating such routes. The hazardous material transportation routing proposal currently under consideration by the Colorado State Patrol designates Interstate Highway 25 as the sole north/south route in Larimer County and does not include any routes west of Interstate 25 in Larimer County. ' 26. Resolution 89-34 Establishing Polling Places for Municipal Election Precincts. Any changes in polling places for municipal elections must be approved by the City Council. The Resolution sets the polling places for the 73 precincts established for the March 7 regular city election. There will be 66 polling locations, including the absentee polling place, because seven combined precincts will be used for this election. Arrangements have been made for extra voting devices to handle the volume of voters at these combined precinct locations. Most polling places are the same as those used in previous city elections and the General Election. The polling place for Precinct 9 has been moved from National Furniture to the Housing Authority offices, and the Precinct 19 polling place must be moved from United Bank to the First Presbyterian Church. 27. Resolution 89-16 Making Appointments to the Natural Resources Advisory Board. Vacancies currently exist on the Natural Resources Advisory Board due to the resignations of Sheryl Barr and Patrick Reed. Councilmembers Kirkpatrick and Mabry reviewed the active applications on file and announced their recommendations for appointment at the January 17 meeting. I -93- February 7, 1989 fJ W 29 In keeping with Council's policy, February 7 to allow time for public The prospective appointees are: Susan Whitmer Ward Luthi (alt.) Dave DuBois the Resolution was postponed to input. July 1, 1989 July 1, 1989 July 1, 1991 Resolution 89-17 Making Appointments to the Commission on Disability. Vacancies currently exist on the Commission on Disability due to the resignation of Helen Barr, the inability of Marilyn Maxwell to attend meetings, and the relocation of Noreen Kenny. Advertisements were placed, and Councilmembers Maxey and Kirkpatrick conducted interviews on January 17. In .keeping with Council's policy, the recommended appointments were announced on January 17, and the Resolution was postponed to February 7 to allow time for public input. The prospective appointees are: Gary Nation Gregory Funk Lori Gehricke Routine Deeds and Easements. Easements for Foothills Basin improvements. July 1, 1990 July 1, 1991 July 1, 1992 Outlet Channel storm drainage In February, 1981, Council approved the master drainage plan for the Foothills Basin. The first priority of improvements by the City associated with the master plan were the reach from the Poudre River to the Fossil Creek Reservoir Inlet Ditch. Increasing levels of urbanization in the Foothills Basin has created larger than predicted drainage flows, which the Fossil Creek Reservoir Inlet Ditch cannot safely handle in the major storm events. In order to avoid property damage downstream on the inlet ditch, North Poudre Irrigation Company has agreed to allow the City to use their ditch to carry this excess water to an overflow structure at Horsetooth Road; the storm water will then be carried in a drainage channel to the Poudre River. 1) Two Easements from Cottonwood Farms (Easement 1) Consideration: $40,000 and Donation (consideration is based on gravel cost of $4,000/acre) -94- February 7, 1989 2) Easement from New Note Properties (Easement 2) ' Consideration: Donation b. Waterline easement from Dale L. Fogleman located north of Vine Drive between Overland Trail and Taft Hill Road. This easement is being granted by the present landowner to correct the legal description and clarify provisions of an old waterline easement agreement granted by the former landowner. Consideration: None. Ordinances on Second Reading were read by title by Wanda Krajicek, City Clerk. Item #6. Ordinances on First Reading were read by title by Wanda Krajicek, City Clerk. Item #7. Item #8. Item #9. Item #10. Item #22. B. Councilmember Mabry made a motion, seconded by Councilmember Winokur, to adopt and approve all items not removed from the Consent Calendar. Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Mabry, Maxey, Stoner, and Winokur. Nays: None. THE MOTION CARRIED. -95- February 7, 1989 I Resolution 89-29 Authorizing the'Purchase of the Mawhinney-Johnson Mobile Home Park From Mr. Richard Gutierrez in the Amount of $417 000 Adopted Following is staff's memorandum on this item: "FINANCIAL IMPACT This project is part of the 5-year plan of drainage improvements throughout the City. The $417,000 is appropriated and available as part of the Spring Creek Master Plan. EXECUTIVE SUMMARY On September 6, 1988, City Council approved the revised Spring Creek Master Drainage Plan. This revised plan changed the recommended improvements between College Avenue and the Burlington Northern Railroad. The revised plan impacts thirty mobile home residences and two houses as compared to 93 in the 1980 plan and costs $2.0 million as compared to $4.1 million in the original plan. The floodplain has been identified and is similar for both studies. This right-of-way acquisition will purchase the Mawhinney-Johnson Mobile Home Park. The City will then be able to continue the relocation of the ' affected mobile home residences." Councilmember Kirkpatrick made a motion, seconded by Councilmember Estrada, to adopt Resolution 89-29. Utilities Director Rich Shannon presented information regarding the relocation efforts of the mobile home residents. Special Projects Manager Jack Gianola presented additional relocation information. Jim Creeden, 4020 Goodell Lane 44, had questions regarding the purchase price of the project. The vote on Councilmember Kirkpatrick's motion to adopt Resolution 89-29 was as follows: Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Mabry, Maxey, Stoner, and Winokur. Nays: None. THE MOTION CARRIED. Staff Reports City Manager Burkett commented on the snow removal efforts by the Street and other City departments. M February 7, 1989 Councilmember Reports I Councilmember Kirkpatrick commented on the agenda item relating to the Rideshare Program. Councilmember Horak reported on the Finance Committee's meeting with the auditors from Price -Waterhouse and expressed concern regarding the medical waste disposal incident. Mayor Stoner noted the Soviet citizens who are visiting Fort Collins in the Friendship Force program. Items Related to the Anton Annexation and Zoning Following is staff's memorandum on this item: "EXECUTIVE SUMMARY A. Hearing to Make Findings and Determinations Concerning the Anton Annexation. B. Resolution 89-35 Setting Forth Findings of Fact and Determinations Regarding the Anton Annexation. C. Second Reading of Ordinance No. 175, 1988, Annexing Approximately 2.00 Acres Known as the Anton Annexation. D. Second Reading of Ordinance No. 176, 1988, Zoning Approximately 2.00 Acres, Known as the Anton Annexation, into the R-P Planned Residential Zoning District. This Resolution sets forth findings and determinations that the area is eligible for annexation pursuant to Colorado state law. Ordinance No. 175, 1988 and Ordinance No. 176, 1988, which were adopted 6-0 on First Reading on December 20, annex and zone approximately 2.00 acres, Lots 4, 5, 6, and 7 of Heinemann's Spring Creek Subdivision, located south of West Drake Road and west of Taft Hill Road. The requested zoning is the R-P Planned Residential Zoning District. Of the four lots, one contains a single-family home while the other three are undeveloped. This is a voluntary annexation. APPLICANTS: Carl and Jean Anton OWNERS: Same 2707 South Taft Hill Road Fort Collins, CO 80526 Planning and Zoning Board Recommendation• The Planning and Zoning Board, at its regular monthly meeting of December 19, 1988, voted 6-0 to recommend approval of .the annexation and requested ' zoning. At the Board's meeting, several adjacent property owners spoke against the annexation. A copy of the Board's minutes is attached." -97- February 7, 1989 1 _ Councilmember Maxey made a motion, seconded by Councilmember Winokur, to adopt Resolution 89-35. Chief Planner Ken Waido gave a brief presentation and responded to questions from Council. The vote on Councilmember Maxey's motion to adopt Resolution 89-35 was as follows: Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Mabry, Maxey, Stoner, and Winokur. Nays: None. THE MOTION CARRIED. Councilmember Winokur made a motion, seconded by Councilmember Estrada, to adopt Ordinance No. 175, 1988 on Second Reading. Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Mabry, Maxey, Stoner, and Winokur. Nays: None. THE MOTION CARRIED. Councilmember Mabry made a motion, seconded by Councilmember Estrada, to adopt Ordinance No. 176, 1988, on Second Reading. Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Mabry, Maxey, Stoner, and Winokur. Nays: None. I THE MOTION CARRIED. Items Related to the Noel Annexation and Zoning Following is staff's memorandum on this item: "EXECUTIVE SUMMARY Staff recommends adoption of these Ordinances on First Reading. The Planning and Zoning Board voted 6-0 to recommend denial of the annexation and requested zonings. A. Hearing and First Reading of Ordinance No. 6, 1989 Annexing Approximately 287.5 Acres Known as the Noel Annexation. B. Hearing and First Reading of Ordinance No. 7, 1989 Zoning Approximately 100.0 Acres of the Noel Annexation into the R-L-P Low Density Planned Residential District and Approximately 187.5 Acres into the R-F Foothills Residential District. On January 3, Council adopted by a vote of 6-0 Resolution 89-3 Finding Substantial Compliance and Initiating Annexation Proceedings for the Noel Annexation. ' This is a request to annex and zone approximately 287.5525 acres located west of Overland Trail and north of West Prospect Road (extended). SoVI February 7, 1989 Approximately 4.6123 acres of the annexation is owned by the City of Fort Collins and is the location of a water storage tank. The requested zoning is in two parts: 1) 187.5420 acres of R-F Foothills Residential for the western portion of the property; and 2) 100.0105 acres of R-L-P Low Density Planned Residential for the eastern portion of the property; and is further conditioned by specific density and design conditions contained in an Annexation Agreement. The property is presently undeveloped. This is a voluntary annexation. APPLICANT: Gefroh-Hattman Inc. 135 West Swallow Rd. Fort Collins, CO OWNERS: Wallace Noel 253 Grey Rock Rd. Laporte, CO City of Fort Collins Larimer County Planning Commission Recommendation: On January 18, 1989, the Larimer County Planning Commission reviewed the City's Annexation Impact Report for the Noel Annexation. State of Colorado Annexation laws require the City to submit an Annexation Impact Report to the County. The Planning Commission expresses concern with the intensity of development allowed under the Noel Annexation Agreement and recommends the annexation agreement be amended to limit development in a manner consistent with the Larimer County Comprehensive Plan and the UGA Agreement. Further background information and comments on the annexation are contained in the attached January 25, 1989 letter from Mr. Henry R. Baker, Larimer County Director of Planning." Councilmember Kirkpatrick withdrew from discussion and vote on this item due to a perceived conflict of interest. Councilmember Estrada read a letter he received from Mr. Robert Ray, representing Mr. Wallace Noel, indicating a potential conflict of interest with the annexation. Councilmember Estrada stated he did not believe that he had a conflict of interest, but was going to submit the letter to the Ethics Subcommittee for consideration. Councilmember Winokur made a motion, seconded by Councilmember Horak, that Council direct the Ethics Subcommittee to examine the conflict of interest issue regarding Councilmembers Estrada and Kirkpatrick and determine whether there is a conflict of interest or just the appearance of one and to report back to Council with its findings. Robert Ray, Attorney representing Wallace Noel, requested the Ethics Subcommittee meet that evening during a Council recess rather than further delay the annexation process. City Attorney Roy pointed out the pros and cons regarding Ethics Subcommittee meeting that evening. M February 7, 1989 tCouncilmember Estrada commented about the interest CSU might have in the issue and spoke of his employment position in the hierarchy of the University administration. The vote on Councilmember Winokur's motion to direct the Ethics Subcommittee to examine the conflict of interest issue regarding Councilmembers Estrada and Kirkpatrick was as follows: Yeas: Councilmembers Estrada, Horak, Maxey, Stoner, and Winokur. Nays: Councilmember Mabry. (Councilmember Kirkpatrick withdrawn) THE MOTION CARRIED. Councilmember Mabry indicated that he believed Councilmember Estrada would be best able to determine if he could receive a fair hearing. Councilmember Estrada indicated the need for Councilmember Kirkpatrick to return to the Chambers for the remainder of the discussion. Councilmember Horak agreed with Councilmember Mabry's comments and indicated he would prefer to postpone the Ethics Subcommittee discussion until all the facts were available for examination. Councilmember Winokur expressed the need to resolve the conflict of interest issues that center around CSU and City Council. ' Councilmember Maxey made a motion to recess to allow the Ethics Subcommittee to review the request of Councilmember Estrada. THE MOTION DIED TO DUE LACK OF A SECOND. Councilmember Winokur made a motion, seconded by Councilmember Horak, to postpone consideration of Item N34A, Hearing and First Reading of Ordinance No. 6, 1989 Annexing Approximately 287.5 Acres Known as the Noel Annexation and Item 434B, and Item #34B, Hearing and First Reading of Ordinance No. 7, 1989 Zoning Approximately 100.0 Acres of the Noel Annexation into the R-L-P Low Density Planned Residential District and Approximately 187.5 Acres into the R-F Foothills Residential District, until February 21, 1989. Robert Ray, attorney representing Wallace Noel, commented on CSU's opposition to the annexation. Councilmember Horak stressed the importance of having enough time to review the question raised by the petitioner for the annexation. Councilmember Maxey indicated his agreement with Councilmember Horak's comment. Mayor Stoner noted that had the original letter been sent to City Council or the City Attorney's office, the Ethics Subcommittee would have had ample time to review the matter. -100- February 7, 1989 City Attorney Roy clarified the issue regarding of receipt of a complaint or when a question arises about a particular situation. He noted that City Council may direct the Ethics Subcommittee to issue an advisory opinion to Council. He stated that individual members of Council can not request the Ethics Subcommittee to convene. The vote on Councilmember Winokur's motion to postpone consideration of Items #34 A and B until February 21, 1989 was as follows: Yeas: Councilmembers Estrada, Horak, Mabry, Stoner, and Winokur. Nays: Councilmember Maxey. THE MOTION CARRIED. Items Relating to the Policies for Soecial Improvement Districts Following is staff's memorandum on this item: "EXECUTIVE SUMMARY A. Resolution 89-36 of the Council of the City of Fort Collins Modifying the Policies for Special Improvement Districts B. Hearing and First Reading of Ordinance No. 19, 1989, Amending Chapter 22 of the Code of the City of Fort Collins Relating to Public Improvements. Many of the City's cash flow problems associated with current special improvement districts are the result of inconsistent procedures and policies relating to the timing of assessments, failure to capitalize sufficient interest, interest accrual dates, and interest rates. Also deficits within special improvement districts have been caused by delinquent assessment payments and defaults. The recommended changes address these problems in order to ensure the continuing viability of special improvement district bond,.financing as a means to finance needed infrastructure and encourage economic development. With regard to the options presented for changes to Section 22-111(c), staff recommends the adoption of Option B in order to be consistent with our present policies for existing districts. BACKGROUND Resolution Changes The Resolution contains policies that were previously adopted by Council and are to be used in evaluating the acceptability of voluntary SID's. The first significant change to the policies is the inclusion of a new paragraph (4) which enunciates the principle that the acceptability of a particular voluntary SID should be determined both upon the basis of general benefits to the City and special benefits to the'property owners. -101- February 7, 1989 tThe policy in paragraph (5) would establish new standards for reviewing the potential financial risk of any proposed SID. In paragraph (7), there are some changes with regard to the kinds of assurances that the City might want to obtain if it were to permit all encumbrances on the property (including the proposed assessment) to exceed 90 percent of the combined value of the land and the proposed district improvements. No change in the substance of this provision is intended. With regard to paragraph (10), certain language has been deleted from the earlier version which had made it optional whether or not privately managed districts should submit construction contracts to a competitive bidding process. Competitive bidding is required under the City Charter for all City improvements. Finally, paragraph (16) has been changed to permit the City Manager to establish the amount of the administration fees to be charged to petitioning property owners. This change is consistent with proposed revisions to Section 22-35 of the Code referred to below. Code Changes 1. The proposed changes to Section 22-34 are not intended to be substantive in nature, except for the fact that they specifically add cross ' walks and medians to the permitted kinds of improvements. Otherwise, the changes are merely intended to improve and tighten the wording of the section. 2. Section 22-35(b)(2) would change the calculation of capitalized interest. This section presently makes reference to the fact that capitalized interest should be calculated through the period of construction and up to the point in time when costs are assessed. It is recommended that the period of capitalized interest should extend to the date that the first installment payment on the assessment will be due. 3. The proposed changes to Section 22-35(c) would accomplish the following: (a) The first revision would permit rather than require Council to pursue the formation of a special improvement district upon receiving a petition. (b) The second change to the section would provide specific authority for the Council to establish SID policies to be utilized in reviewing the acceptability of property owners' petitions. 4. The proposed change to Section 22-35 would authorize the Director ' of Development Services to charge a fee to cover the administrative costs associated with the district. No amount would be specified in the -102- February 7, 1989 ordinance; instead, the amount would be established through administrative regulations. 5. The proposed changes to Section 22-37(a) would permit reimbursement agreements to be utilized in SID's only when a particular property owner had actually paid for the cost of certain improvements which benefited other parcels of property, either within or outside the boundaries of the district. The changes would also include a specific prohibition against seeking reimbursement through the City for costs that were included in the amount assessed against the participating owner's property. 6. The proposed change to Section 22-39 merely substitutes the Purchasing Agent for the City Manager as the proper party to contract for the construction of improvements under the City Charter and Code. 7. The proposed change to Section 22-83(a) changes the mandatory language in the provision to permissive. The earlier language had required that the surplus and deficiency fund be the source of paying certain costs related to the formation of a new district. 8. The proposed changes to Section 22-85 would accomplish the following: (a) The change to subparagraph (4), like the earlier change to Section 22-35(b)(2), would specify that capitalized interest should continue beyond the period of construction up to the date that the first installment payment on the assessment is due. The purpose of this change, (in combination with certain other changes pertaining to the interest accrual date, the establishment of a reserve fund and/or the interest rate on assessments) is to bolster the City's ability to meet its obligations to the bond holders without necessitating the infusion of general fund revenues. (b) The proposed change to subparagraph (5) would add administration fees to the assessable costs of the district. (c) The proposed change to subparagraph (6) would delete reference to the costs of collection. These costs are not, as a matter of practice, included in the statement of costs prepared by the Director of Engineering. The reference to a maximum seven percent collection fee would also be deleted. Finally, the new subparagraph (6) adds the concept of a reserve fund as a cost of the district and, ultimately, a cost to be included in the size of the bonds. -103- February 7, 1989 ' 9. The proposed changes to Sections 22-88(1) and 22-88(4) are for the same purpose, namely, to change the reference to the assessable costs from "costs of the improvements" to "costs of the district." 10. The proposed changes to Section 22-89 would require that City Council make specific findings in support of its allocation of assessments to demonstrate that the City Council has examined and approved, in each district, the proportionality of the assessments in terms of the special benefit to each parcel of property. 11. The following changes to Section 22-90 are proposed: (a) The first change would clarify that the amount of any assessment should not exceed (without an express waiver of the property owner) one-half of the property's actual value not including the proposed district improvements. The second change woq]d replace the specific rates for determining the valuation of real property to more general language which merely references the statutory formula used by the County for general tax assessment purposes. (b) The changes to subparagraph (b) change the references to a "residential street to a residential access street." This change is consistent with that which was earlier approved by Council to the street oversizing sections of the Code. 12. The proposed changes to Section 22-95(a) would specify a particular interest accrual date to be used for all districts, so as to provide for consistency among districts and to ensure that the date used will generate an adequate amount of interest to pay the first installment on the bonds. The second change to this section would specify that the amount of any collection fee to be collected by the Municipal or County Treasurer should be shown in the assessing ordinance for each district. Finally, a new maximum rate of interest on assessments will be specified through Council's selection of Option A, B or C. 13. The proposed change to Section 22-95(b) would require, upon any sale of a property within the district, disclosure of the assessment lien and the amounts of any future installment payments. It would also clarify which property owners are entitled to any proportional distribution of surplus monies in the reserve fund, either under the provisions of this section or under the revised version of Section 22-111(c). The proposed language would provide that unless the assessment is prepaid in full by the seller at the time of the sale, the seller relinquishes any claim of entitlement to a refund. Conversely, it would provide that the property owner making final payment of the outstanding balance of the assessment ' would be the party entitled to any refund. 104- February 7, 1989 14. The proposed change to Section 22-95(c) would accomplish the , following: (a) It would increase the rate of penalty interest from one percent to one and one-half percent, so as to increase the incentive for defaulting property owners to pay delinquent assessments rather than continue to borrow from the City, pending foreclosure sale. (b) It would clarify that in addition to the principal and regular interest due, the interest specified in this section is penalty interest and that is the only penalty that must be paid by a defaulting property owner in order to restore his right to pay in installments. 15. The proposed change to Section 22-96(b) would eliminate specific reference to the amount of the County's collection fee. The amount of the collection fee is not, as a matter of practice, included in the assessment roll and, for that reason, reference should not be made to the collection fee in this section. 16. The proposed change to Section 22-111(a) would, as earlier mentioned, tie the size of the bond issue to the total of costs specified in Section 22-85, including the cost of the proposed reserve fund. ' 17. Finally, the proposed change to Section 22-111(c) would add a provision that surplus funds remaining after bonds are paid and City costs are reimbursed in any district created in the future would be proportionally distributed to the assessed property owners within the district. If Option B were selected, this would be true only in those districts which have a reserve fund." Councilmember Mabry withdrew from discussion and vote on this item due to a perceived conflict of interest. Councilmember Winokur made a motion, seconded by Councilmember Kirkpatrick, to adopt Resolution 89-36. Director of Administrative Services Pete Dallow gave a brief presentation, summarized the recommendations, and responded to questions from Council. Councilmember Kirkpatrick questioned' the need for the phrase "project essentiality" and suggested deleting it. City Manager Burkett stated that removing "project essentiality" would not weaken the meaning of the Resolution. Councilmember Kirkpatrick made a motion, seconded by Mayor Stoner, to delete "project essentiality" from Section 5. , -105- February 7, 1989 ' Mayor Stoner stated he would support the amendment and noted his concern with the vague definition of "project essentiality". City Attorney Roy suggested clarifying the definition of "project essentiality" by inserting the following in the amendment to read as follows after "Criteria" in Section 5: "As defined in Standard and Poors debt ratings criteria. A copy of which is attached hereto and incorporated herein by reference". Councilmembers Winokur and Kirkpatrick accepted City Attorney Roy's suggestion as a friendly amendment to their original motion. Councilmember Horak commented on the internal review that was done by staff on the SID policies and the monies that would be in the reserve fund. Councilmember Winokur commented on his involvement with the SID policies and the Finance Committee. He noted the intensive effort by staff, the development community, and Councilmembers that went into reforming the SID policies. Councilmember Kirkpatrick noted her satisfaction with the final policies for the existing SID districts and expressed her gratitude to the Finance Committee and staff for its assistance and hard work in supporting the Resolution. The vote on Councilmember Winokur's motion to adopt Resolution 89-36 as amended was as follows: Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Maxey, Stoner, and Winokur. Nays: None. (Councilmember Mabry withdrawn) THE MOTION CARRIED. Councilmember Maxey made a motion, seconded by Councilmember Stoner, to adopt Ordinance No. 19, 1989 (Option C, Section 13 "a") and (Option B in Section 16 "c") on First Reading. Councilmember Maxey expressed concern regarding the terminology of Ordinance 19, 1989, and encouraged the addition of the word "due" after principal balance and he explained his reasons for wanting the insertion. Financial Policy Analyst Susanne Edminister gave a brief presentation on the impact of the calculation requirements and responded to questions from Council. Councilmember Maxey withdrew his request to add the word "due" to the Ordinance. City Attorney Roy clarified the ambiguity regarding the prepayment of the remaining principal balance of the assessment. He explained the possible discrepancy regarding the insertion of "due" after the word balance and -106- February 7, 1989 clarified the intent of the installment payment being due and collectable. ' He suggested the following language be inserted in paragraph 13 "c", with the sentence that begins, "At anytime prior to the day of sale, the owner may pay the amount of all unpaid installments, together with accrued interest thereon, and penalty interest and shall be restored to the right to pay in installments...." Councilmembers Maxey and Stoner accepted City Attorney Roy's suggestion as a friendly amendment to their motion. Councilmember Horak he was concerned because the interest rate did not provide enough money to pay off the assessments. He noted that Option B did allow for the assessments to be paid and, because there are additional monies in the reserve fund, the chance for concern regarding additional costs is eliminated. Councilmember Horak made a motion, seconded by Councilmember Winokur, to adopt Option B in Section 13, rather than Option C. Councilmember Maxey commented on the establishment of a ten percent reserve fund to cover shortfalls and deficiencies. Councilmember Horak supported not paying out any additional monies from the General Fund to cover the deficiencies. He pointed out that the people who pay off the fees on schedule all of the time will still receive all of the bond money back and he stated it would increase the marketability of the , bonds. Councilmember Winokur agreed with Councilmember Horak. Councilmember Kirkpatrick noted she would support the amendment and stated she believed the ten percent reserve might be too conservative, but, indicated the issue could be looked at a later date. Mayor Stoner noted his support for the net effective interest rate and the amendment. The vote on Councilmember Horak's motion to amend Ordinance No. 19, 1989, by inserting Option B (13 "a") was as follows: Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Maxey, Stoner, and Winokur. Nays: None. (Councilmember Mabry withdrawn) THE MOTION CARRIED. The vote on Councilmember Maxey's motion to adopt Ordinance No. 19, 1989, as revised and amended was as follows: Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Maxey, Stoner, and Winokur. Nays: None. (Councilmember Mabry withdrawn. THE MOTION CARRIED. -107- February 7, 1989 1 Ordinance No. 17, 1989, Authorizing the Aggregate Refunding of Special Improvement District Bonds. Adopted on First Reading Following is staff's memorandum on this item: "FINANCIAL IMPACT Current cash flow models predict a future deficit of $2.1 M in the SIDS currently assessed. The City holds tax certificates representing $1 M in unpaid assessments which must be carried for three years prior to obtaining a deed and attempting to sell the property. There is no money in the surplus and deficiency fund to offset this deficit. In fact, a $300,000 transfer from the General Fund was authorized in 1988 to prevent the City's defaulting to bondholders. The current market offers interest rates that will generate the money needed to repay the City for money advanced. The refunding will consolidate the debt on the bonds so that the cash flows from assessments will match the debt service. An aggregate refunding will offset the projected $2.1 M deficit, will not negatively affect the property owners and will increase security to the bondholders. EXECUTIVE SUMMARY ' The Council Finance Committee, staff and the City's underwriters, Boettcher & Company and Kirchner Moore and Company, have been discussing an aggregate refunding of most of the City's special improvement district bonds for some time. The aggregate refunding is part of the recommended solution to the negative cash flows anticipated in most of the special improvement districts currently assessed. Refunding the bonds will meet the following objectives: Reimburse the City for cash advanced to meet debt service payments paid on behalf of the districts. 2. Restructure the City's SID debt payments to more closely match the assessment income stream. Restructure the City's SID debt to eliminate or minimize the City's potential financial liability for SID debt service payments. Special improvement district bonds in the amount of $13.2 million are proposed to be refunded and were issued for the following districts: SID #75 South Mason Street SID #76 Horsetooth (College to Railroad) SID #77 Boardwalk SID #78-1 Lemay/Harmony, Phase I SID #78-11 Lemay/Harmony, Phase 11 SID #79 Fairbrooke Im February 7, 1989 SID #80 Landmark ' SID #81 Provincetowne/Portner SID #82 Cunningham Corners SID #83 Horsetooth Road SID #84 Heart SID #86 South Lemay SID #60 Harmony Trunk Sewer The exact amount of the refunding will be inserted once the final receipts For January assessment collections are known. This amount will be available to the Council on Tuesday, February 7, and the Ordinance will be corrected prior to Second Reading. The bonds will be marketed between First and Second Reading of the Ordinance and bond interest rates will be inserted prior to final passage." Councilmember Mabry withdrew from discussion and vote on this item due to a perceived conflict of interest. Councilmember Winokur made a motion, seconded by Councilmember Horak, to adopt Ordinance No. 17, 1989 on First Reading. Finance Director Alan Krcmarik gave a brief presentation on aggregate refunding, and responded to questions from Council. Councilmember Maxey noted that all of the Special Improvement Districts ' present the opportunity for refunding. Councilmember Winokur stated that not all voluntary Special Improvement Districts are problem districts and noted several of the districts that were performing well financially. The vote on Councilmember Winokur's motion to adopt Ordinance No. 17, 1989 was as follows: Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Maxey, Stoner and Winokur. Nays: None. (Councilmember Mabry withdrawn) THE MOTION CARRIED. Ordinance No. 18, 1989, Amending Ordinance No. 2, 1986 Which Assessed the Cost of Landmark Special Improvement District No. 80, Adopted on First Reading Following is staff's memorandum on this item: "EXECUTIVE SUMMARY This ordinance would extend the period of time in which the sole property owner in Landmark Special Improvement District No. 80 (the "District") would pay the remaining principal balance of the assessments levied on property in the District. The amount of the assessment would not change ' and the City would retain its ability to collect the assessment. -109- February 7, 1989 ' The Landmark Special Improvement District was created on October 18, 1983 and consisted of street, water, sewer, and storm drainage improvements to Shields Street for the Landmark Apartment complex. The original assessment of $315,000 was levied on the property in January of 1986 and the first installment was billed in May of 1986. More than a year ago the sole property owner, Landmark Apartments, Inc., requested that the City refund the bonds outstanding in the District to extend the assessment payments so that final payment would occur in 1996 rather than 1991, thus reducing the annual principal installment from $52,500 to $20,000. The only practical way to refund the bonds is to include them in an aggregate refunding that would be large enough to make the issue marketable. Since the outstanding bonds for the District are included in the City's aggregate refunding, the final step in extending the term of payment is to amend the assessing ordinance. The amendment to the assessing ordinance presents no risk to the City's ability to collect the assessment. The outstanding balance of the assessment will not change, nor will the rate of interest. No challenge will be made by the property owner as the amendment is made at its request." Councilmember Mabry withdrew from discussion and vote on this item due to a perceived conflict of interest. Councilmember Horak made a motion, seconded by Councilmember Kirkpatrick, to adopt Ordinance No. 18, 1989 on First Reading. Finance Director Alan Krcmarik gave a brief presentation and responded to questions from Council. Councilmember Horak thanked staff for its hard work on the Agenda items relating to aggregate refunding of the Special Improvement District Bonds. Mayor Stoner noted his appreciation to the Council Finance Subcommittee and the staff personnel who were involved in the process. The vote on Councilmember Horak's..motion to adopt Ordinance No. 17, 1989 was as follows: Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Maxey, Stoner, and Winokur. Nays: None. (Councilmember Mabry withdrawn) THE MOTION CARRIED. Ordinance No. 20, 1989, Amending Section 9-2 of the Code of the City of Fort Collins Relating to Amendments and Additions to the Uniform Fire Code, 1985 Edition Adopted on First Reading Following is staff's memorandum on this item: -110- February 7, 1989 "FINANCIAL IMPACT I This program, as administered by the Poudre Fire Authority in accordance with the intergovernmental agreement creating the Authority, includes a fee system intended to recover the direct costs of program operation. EXECUTIVE SUMMARY This ordinance amends the 1985 edition of the Uniform Fire Code (UFC) which was last adopted and amended by the City in 1986. It includes special provisions relating to the prevention and detection of leaks from underground storage tanks containing flammable and combustible liquids and hazardous materials, including the requirements of improved leak detection equipment and methods for all new and existing underground storage tanks, secondary containment in special cases and site assessments at one of 2 levels for all leak incidents. It also allows the Fire Chief to initiate more rapid and affirmative actions in identifying and mitigating the fire and safety hazards associated with underground storage tank leaks. Adoption of this Ordinance will begin the implementation of a comprehensive local underground storage tank program. Other program components include: 0 Improving the quality and frequency of inspections of system installations and removals 0 Locating and evaluating existing tanks 0 Providing an educational program ' 0 Improving inspector qualifications The entire program, including this Ordinance, is recommended to Council by the Poudre Fire Authority Board of Directors and has been endorsed by the Building Review Board and the Natural Resources Board. BACKGROUND Over the past several years, the problems and hazards posed by leaking underground storage tanks (LUST) have become very apparent. Fort Collins has experienced several large leak situations and numerous smaller ones in the recent past. Due to these types of problems occurring across the country, there has been a great deal of activity at the federal level in recent years, culminating in new Environmental Protection Agency (EPA) regulations implemented in 1988. These regulations are intended to reduce environmental damage and, to a lesser degree, address fire -safety concerns. Likewise, there has been similar activity at the state level to address similar environmental and health problems. Unlike the federal efforts, however, these state efforts have not resulted in the adoption of legislation or regulations. In an effort to deal more effectively with the fire -safety aspects of the ' LUST problem and, indirectly, the environmental and health concerns on a -111- February 7, 1989 ' local level, PFA has developed a risk reduction program to be adopted through amendments to the Uniform Fire Code, included in this Ordinance. This program has been under intensive development since May of 1988, following over two years of work with state agencies, in an effort to enact a stronger statewide program. Legislative efforts have failed in the last two years and, with the concurrence of the PFA Board of Directors, this program has been developed. Throughout this period, staff has worked with and received input from many sources including: the Natural Resources Division and Larimer County Health Department, state and federal agencies, local petroleum distributors, tank operators and owners, tank system installers, environmental groups, neighborhood groups and environmental consultants. Several local gasoline distributors most impacted by this program were helpful in working out the technical details and practical applications. PFA originally contacted approximately 300 potentially interested parties and continues to have contact with approximately 60. In addition to this staff work, the PFA Board of Directors has actively reviewed program development. In addition to reviewing all program components monthly, the Board conducted one formal public hearing on the proposed program and received public input on it at two regular Board meetings. At its last regular meeting, the PFA Board approved a resolution authorizing this program and the code amendment process. Additionally, the Building Review Board and the Natural Resources Board reviewed and endorsed ' the program, on January 26 and February 1, respectively. One issue which this program does not directly address is the long-term cleanup of environmental contamination caused by LUST incidents. It is PFA's position that this is an issue which is beyond the scope of the Authority's power and duties. It is PFA's understanding that both the Natural Resources Division and the Larimer County Health Department are developing procedures for long-term cleanup and a future state program may also address this issue more completely. It is PFA's belief that, by dealing more effectively with the fire -safety issues as outlined in this program, the environmental and health hazards should be considerably reduced." Councilmember Maxey made a motion, seconded by Councilmember Horak, to adopt Ordinance No. 20, 1989 on First Reading. Poudre Fire Authority Division Chief Warren Jones gave a brief presentation on fire safety issues regarding underground leaking storage tanks, and responded to questions from Council. Ari Michelson, Chair of the Natural'Resources Advisory Board, supported the Poudre Fire Authority LUST Program. Councilmember Mabry requested criteria be developed to determine when the underground storage tanks are in a high risk area and create a potential ' fire hazard. -112- February 7, 1989 Councilmember Kirkpatrick suggested that progress reports be provided to ' the Natural Resources Division. Mayor Stoner directed staff and the Poudre Fire Authority to address the issues regarding the record keeping amendment and the notification of underground leakage prior to the Second Reading of the Ordinance. Councilmember Horak noted his satisfaction with the opportunity to deal with the issue. Councilmember Kirkpatrick noted her support of the issue but expressed concern regarding the notification process regarding the health and environment of the community. She indicated the need for State legislation to deal with the issue of leaking underground storage tanks. Councilmember Estrada agreed with Councilmember Kirkpatrick's previously stated comments and noted the importance of this first step in addressing the issue. He thanked the Poudre Fire Authority for its hard work on the issue. Councilmember Winokur stated he believed the matter of fire and explosion protection should be dealt with on the local level. He noted that Poudre Fire Authority is the first entity in the state to address this matter and indicated the State Legislature should be notified to expect to hear from the City to share common interests and work towards a safe solution. ' Councilmember Maxey noted the importance of industry and community cooperation in this venture. Mayor Stoner congratulated Councilmember Winokur, the Chairman of the Poudre Fire Authority Board for his involvement in identifying and the mitigating the fire and safety hazards associated with underground storage tank leaks. The vote on Councilmember Maxey's motion to adopt Ordinance No. 20, 1989 was as follows: Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Mabry, Maxey, Stoner and Winokur. Nays: None. THE MOTION CARRIED. Resolution 89-37 Authorizing the Mayor to Enter into an Intergovernmental Agreement Between the City and the Fort Collins -Loveland Airport Authority Forgiving Payment of a Non -interest Bearing Loan Denied Following is staff's memorandum on this item: -113- February 7, 1989 ' "FINANCIAL IMPACT On April 3, 1984, the City Council passed Resolution 84-68, authorizing the establishment of a $50,000 line -of -credit for the Fort Collins -Loveland Airport Authority to provide operating expenditure assistance to the Authority for 1983, 1984 and 1985. The Cities of Fort Collins and Loveland jointly funded the original line -of -credit in equal portions of $25,000 each. The line -of -credit was to be retired by the Authority on or before September 30, 1985. In 1985, the Authority was not in a position to repay the $43,196 that had been used. On March 4, 1986, both cities agreed to credit $34,870 to the Airport Authority because monies had been expended for capital improvements. The remaining $8,326 which had been used for operating expenses was converted into a non -interest bearing loan to be repaid no later than December 31, 1988. The Airport Authority is not in a financial position to repay this loan and would like the payment to be forgiven to clear its books from any potential liabilities." Councilmember Maxey withdrew from discussion and vote on this item due to a perceived conflict of interest. Councilmember Estrada made a motion, seconded by Councilmember Kirkpatrick, to adopt Resolution 89-37. Assistant to the Administrative Services Director Julia Novak gave a brief presentation and responded to questions from Council. Councilmember Horak stated he would not support extending the Airport Authority debt or the Resolution. Councilmember Estrada agreed with Councilmember Horak. Councilmember Kirkpatrick expressed disappointment in the lack of support materials on the item and noted she would have appreciated additional options or participation from the Airport Authority. Councilmember Mabry noted he would not support the motion to forgive the payment but, indicated he would support a change in the terms to provide that the payment be due on demand. Mayor Stoner indicated that over the next seven years the City would be applying for federal funding and it would be in the City's best interest not to have an outstanding debt on the books. The vote on Councilmember Estrada's motion to adopt Resolution 89-37 was as follows: Yeas: Councilmember Stoner. Nays: Councilmembers Estrada, Horak, Kirkpatrick, Mabry, and Winokur. (Councilmember Maxey withdrawn) I THE MOTION FAILED. 114- February 7, 1989 Councilmember Mabry made a motion, seconded by Councilmember Winokur, to ' authorize staff to bring back a Resolution to change the terms of the loan to make the note due on demand rather than a note due at a specific time. Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Mabry, Stoner, and Winokur. Nays: None. (Councilmember Maxey withdrawn) THE MOTION CARRIED. Resolution 89-38 Creating a Charter Review Committee Postponed Until March 21, 1989 Following is staff's memorandum on this item: "EXECUTIVE SUMMARY During the course of discussions on proposed Charter Amendments to be placed before the City voters at the 1989 City election, several issues focusing on the form of government were tentatively identified by Council for future discussion. The Resolution would create a seven -member citizen Charter Review Committee to study and make recommendations on the City Charter with respect to specific issues relating to the form of government. Any Charter amendments proposed by the Committee could be placed on the 1991 regular city election ' ballot by the City Council. The requirements for appointment to the Committee would be status as a registered voter and residency within the City limits. The Resolution designates two Councilmembers to act as non -voting Committee liaisons. If Council creates the Charter Review Committee, applications for membership on the Committee would be solicited, applicants would be interviewed and screened, and a Resolution appointing the Committee members would be introduced for consideration at the April 4 meeting, with appointments finalized on April 18. The deadline for applications would be March 17 to allow time for the application and interview process. The Committee would begin its work in May and make its final report and recommendations to Council no later than September 1." Councilmember Estrada made a motion, seconded by Councilmember Winokur, to adopt Resolution 89-38. Mayor Stoner noted that Councilmember Kirkpatrick and Winokur were interested in the liaison positions. Jim Creeden, 4020 Goodell Lane #4, spoke in support of the creation of the Charter Review Committee. Councilmember Horak stated he believed the timing was " in opportune for the ' establishment of a Charter Review Committee and suggested it be postponed until the March 21, 1989 meeting. -115- February 7, 1989 ' Councilmember Estrada indicated his support for a Committee to begin working on the keys issues that concern the community. Councilmember Kirkpatrick spoke against the Resolution and indicated she would not support a mayor -council form of government. She noted the negative points of the Resolution, including costs, and the effect on the community. Councilmember Maxey pointed out that the timing for the creation of the Committee was inappropriate. Councilmember Horak made a motion, seconded by Councilmember Mabry, to postpone consideration of Resolution 89-38 until March 21, 1989. Yeas: Councilmembers Horak, Mabry, and Stoner. Nays: Councilmembers Kirkpatrick, Maxey, and Winokur. (Councilmember Estrada abstained) THE MOTION CARRIED. Other Business Resolution 89-41 Amending Resolution 89-5 to Correct a Project Name for ' "Shields Street. Davidson to Casa Grande". Adopted Following is staff's memorandum on this item: "EXECUTIVE SUMMARY The Choices 95 process developed a list of transportation projects which would be funded by the proposed 114 cent sales tax. The Resolution referring the proposed tax to the March 7 election included this list of transportation projects. One of the projects on the list was "Shields Street - Raintree to Casa Grande". Raintree Drive intersects Shields on the north leg of the Shields -Drake intersection. It runs west and south, crossing Drake. However, when it turns east to intersect Shields again, the name changes "Raintree" becomes "Davidson". The project proposed for capital improvements along Shields begins at this point -- south of the Intersection -- and continues south to Casa Grande. Hence, the project should be described as "Shields Street-- Davidson to Casa Grande." This Resolution amends the earlier Resolution, and correctly identifies the project as "Shields Street -- Davidson to Casa Grande." Councilmember Horak made a motion;, seconded by Councilmember Mabry, to adopt Resolution 89-41. Yeas: Councilmembers Estrada, Horak, Kirkpatrick, ' Mabry, Maxey, Stoner, and Winokur. THE MOTION CARRIED. -116- February 7, 1989 City Manager Burkett thanked Council for its leadership and clarity in ' reviewing the Council Policy Agenda. Mayor Stoner stated that he had been asked by Communication and Public Affairs Manager Johnie Pearson to mention that the City had implemented an Election Hotline number (221-6882) to answer election related questions. Adjournment Councilmember Kirkpatrick made a motion, seconded by Councilmember Estrada, to adjourn the meeting. Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Mabry, Maxey, Stoner, and Winokur. Nays: None. The meeting adjourned at 10:30 p.m. Ma Ii 5 City Clerk �- -117-