HomeMy WebLinkAboutMINUTES-11/20/1984-RegularNovember 20, 1984
' COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
Council -Manager Form of Government
Regular Meeting - 5:30 p.m.
A regular meeting of the Council of the City of Fort Collins was held on
Tuesday, November 20, 1984, at 5:30 p.m. in the Council Chambers in the City
of Fort Collins City Hall. Roll call was answered by the following Coun-
cilmembers: Clarke, Horak, Knezovich, Ohlson, Rutstein, and Stoner.
Secretary's Note: Councilmember Elliott arrived at 7:30 p.m.
Staff Members Present: Arnold, Huisjen, Krajicek, Lewis, Widmer
Agenda Review: City Manager
City Manager Arnold noted that staff was requesting Item #7, Tabling of
Second Reading of Ordinance No. 152, 1984, Expressing the Consent of the
City to the Inclusion of Land within the Municipal Subdistrict, Northern
Colorado Water Conservancy District, be tabled to February 5 not December 4
as stated in the agenda.
Mayor Horak asked that Item #26, Resolution Authorizing the City Manager to
Enter into a Professional Services Agreement with Environmental Research
and Technology, Inc., for Air Quality and Meteorological Monitoring Re-
lating to Residential Wood Combustion, be removed from the Consent Agenda.
Bruce Lockhart, 2500 East Harmony Road, requested Item #10, Second Reading
of Ordinance No. 156, 1984, Authorizing Advance Funding of $500,000 for
design work for the Indoor Pool/Ice Rink Capital Project, and Item #25,
Resolution Authorizing Execution of an Intergovernmental Agreement Between
the City and Larimer County regarding the Purchase of Property on Block 31,
be withdrawn from the Consent Calendar.
Consent Calendar
This Calendar is intended to allow the City Council to spend its time and
energy on the important items on a lengthy agenda. Staff recommends
approval of the Consent Calendar. Anyone may request an item on this
calendar be "pulled" off the Consent Calendar and considered separately.
Agenda items pulled from the Consent Calendar will be considered separately
under Agenda Item #40, Pulled Consent Items, except items pulled by anyone
in the audience or items that any member of the audience is present to
discuss that were pulled by staff or Council. These items will be dis-
cussed immediately following the Consent Calendar.
-280-
November 20, 1984
4. Consider Approving the Minutes of the Regular Meeting of October 16
adjourned meetings of October 23 and October 30, and special meetin
of November 13.
5. Second Reading of Ordinance No. 150, 1984, Vacation of all Easement
and Rights of Way of Hillpond on Spring Creek, Second Filing.
This ordinance was unanimously adopted on First Reading on October
16. This property was replatted a number of times and to clear up the
titles of the current lots, the owner is requesting the City vacate
easements and rights -of -way on the original plat.
All utilities have been contacted and have indicated no problem with
the request.
6. Second Reading of Ordinance No. 151, 1984, Amendi
2-35 of the Code of the City of Fort Collins Relati
Pension Fund.
Section 2-34 and
to the Firemen s
This ordinance was unanimously adopted on First Reading on October
16. The employees of the Poudre Fire Authority are currently covered
by three different pension plans. There are considerable differences
in the benefits provided by the different plans. The plan for the
personnel hired by the City of Fort Collins prior to April 8, 1978 is
the only plan that does not include a cost of living escalator and a
vesting clause.
This amendment would add a vesting clause to that plan and is sup-
ported by the Poudre Fire Authority.
7. Tabling of Second Reading of Ordinance No. 152, 1984, Expressing the
Consent of the City to the Inclusion of Land within the MuniciDal Sub -
strict. Northern Cc
This ordinance was unanimously adopted on First Reading on October 16,
with the direction that it be reviewed by the Water Board prior to
Second Reading. The Water Board has requested information from NCWCD,
which is not available at this time. Therefore, staff is recommending
tabling of the Ordinance on Second Reading to December 4, which will
be accomplished by adoption of the Consent Calendar.
8. Second
Remode
Ordinance No. 153, 1984
rare in the Capital Pro
iating Funds for the
On July 1, 1984, an additional quarter -cent Sales and Use Tax was
levied, to complete specified "Essential" General City capital im-
provement projects. The remodel at the Library was included in this
package of projects.
-281-
1
66
10.
11.
November 20, 1984
This Ordinance was unanimously adopted on First Reading on October 16
and provides for $103,000 to be appropriated in the Capital Projects
Fund in order to begin the library remodel in 1984. The remodel
consists of relocating the Children's Area, relocating the main desk,
upgrading the conference room complex, and remodeling the former
bookmobile area.
Second Reading of Ordinance No. 154, 1984, Authorizing the City
Manager to Enter into an Amendment to the Lease Agreement with Merit
Financial Corporation for the Lease Purchase of a Pickup Truck with
Crew Cab for Survevors.
This ordinance was unanimously adopted on First Reading on October 16
and would amend the existing agreement with Merit Financial Corpora-
tion to include the addition of a pickup truck with crew cab and
necessary equipment by lease/purchase. The estimated cost of the
total package is $15,000 to be repaid over a period of 5 years at an
interest rate of 8.689%.
Second Reading of Ordinance No. 156 1984 Authorizing Advance Funding
of 500,000 for desiqn work for the Indoor Pool/Ice Rink Capital
This ordinance was unanimously adopted on First Reading on October
30. At the October 23, 1984 Council Work Session, City Council re-
viewed, in detail, the advance funding requirement to start design
work immediately for the Indoor Pool/Ice Rink Capital Project.
This advance funding of $500,000 is required to meet the projected
expenditures until the total financing has been completed. Sale of
the bonds for financing is scheduled to be completed in the spring of
1985. Funds are available from Prior Year Reserves and the appro-
priated Capital Reserves in the Capital Projects Fund. When the bonds
for this project are issued, this advance would be repaid to the
funding source.
Municipal Borrowings Associated with the Master Agreement Between the
City of Fort Collins and Anheuser-Busch, Incorporated.
There are three municipal borrowings related to the Master Agreement
for the Council's consideration this evening. They are:
A. Second Reading of Ordinance No. 157, 1984, Authorizing the Is-
suance of Sales and Use Tax Revenue Bonds in the Aggregate Prin-
cipal Amount of $11,750,000.
-282-
12
November 20, 1984 '
B. Second Reading of Ordinance No. 158, 1984, Authorizing the Is-
suance of Sewer Revenue Bonds in the Aggregate Principal Amount of
$11 ,360 ,000.
C. Second Reading of Ordinance No. 159, 1984, Authorizing the Is-
suance of General Obligation Water Bonds in the Aggregate Prin-
cipal Amount of $7,750,000.
These ordinances were unanimously adopted on First Reading on October
30. Included in each of the bond issues is an amount for capitalized
interest for the first three years of the bond issue. The bonds are
structured on a 25-year maturity with serial retirements in the years
1988 through 1996 and with term bonds in 2004 and 2009. There is also
a three year extraordinary call if A-B does not proceed with the
brewery. The structure was arrived at through discussions with the two
financial consultants involved in the transaction; Boettcher & Com-
pany, Inc. and Dillon Read & Company Inc. All of the bonds were
offered for sale using the mechanism of an advertised public sale.
The low bids on the sales and use tax bonds and the sewer revenue
bonds were submitted by Boettcher and Company at 10.2837M each. The
low bid on the general obligation water bonds was submitted by Nor-
thern Trust Company at 9.99978%.
Issuance of Four Industrial Development Revenue Bonds. '
The following four Industrial Development Revenue Bond ordinances were
unanimously adopted on First Reading on October 30 and are to be
considered on Second Reading at this time:
A. Hearing and Second Reading of Ordinance No. 160, 1984, Directing
the Issuance of Pollution Control Revenue Bonds (Anheuser-Busch
Companies Project) in the aggregate principal amount of $35,000,000.
The Ordinance and a published notice set November 20 as the
hearing date on this Ordinance. The Anheuser-Busch Companies
Project of $35,000,000 is connected with process -implemented
improvements including a pipeline from the Brewery to a pre-
treatment facility to be constructed with the bond proceeds near
the City Sewer Treatment Plant No. 2'and the construction of lines
to the company's land application site.
B. Second Reading of Ordinance No. 162, 1984, Relating to the Is-
suance of IDRB's (The Comridge Project) in the principal amount of
$3 ,500 ,000.
The Comridge Project in an amount of $3,500,000 is for the con-
struction of an industrial building .at Oakridge which is located
at the southeast corner of Harmony and Lemay.
-283-
I
November 20, 1984
C. Second Reading of Ordinance No. 163, 1984, Relating to the Is-
suance of IDRB's (The Syngene Corporation Project) in the prin-
cipal amount of $2,000,000.
0
The Syngene Corporation Project in the amount of $2,000,000 is the
construction of an industrial, office building at Valley Air
Park.
D. Second Reading of Ordinance No. 164, 1984, Relating to the Is-
suance of IORB's (The Empire Laboratories, Inc. Project) in the
principal amount of $700,000.
The Empire Laboratories, Inc. Project of $700,000 is for the
construction of an office, lab facility at the Northwest corner of
Howes and Maple in downtown Fort Collins.
13. Hearing and First Reading of Ordinance No. 166, 1984, Annexing Ap-
proximately Z. Acres Known as the Fossil Creek Second Annexation.
The applicants, James P. Peterson, Clarissa F. Allison, and Floyd W.
Deines, are requesting annexation of approximately 2.8 acres located
south of Harmony Road, east of South College Avenue, and northeast of
the Fossil Creek Meadows Subdivision. The annexation is a 100% volun-
tary annexation in that the applicants are the only owners of the
property. This annexation achieves its one -sixth contiguity require-
ment through a common boundary with the Fossil Creek First Annexation.
Staff recommends approval of the annexation request.
At their regular monthly meeting on October 22, 1984, the Planning and
Zoning Board voted 7-0 to recommend approval of this annexation
request.
14. Hearing and First Reading of Ordinance No. 167, 1984, Zoning App
imately 2.8 Acres Known as the Fossil Creek Second Annexation Into
ns
N
The applicants, James P. Peterson, Clarissa F. Allison, and Floyd W.
Deines, are requesting zoning on approximately 2.8 acres, known as the
Fossil Creek Second Annexation, into the R-L, Low Density Residential,
zoning district.
Staff recommends approval of the requested R-L zone.
At the regular monthly meeting on October 22, 1984, the Planning and
Zoning Board voted 7-0 to recommend approval of the requested R-L
zoning district.
-284-
15. H
Firs
November 20, 1984
68. 1984_ Vacatina a
Nortion of the Hight-ot-way of the montage Koao Along College Avenue
in Front of Revnolds Olds/Cadillac/Subaru. While Retaining it as a
Prior to the construction of the frontage road in front of Reynolds
Olds/ Cadillac/Subaru, the dealership had been using the area for
displaying new cars. During the negotiations concerning the Frontage
Road construction it was agreed that the dealership would have use of
this land when the road was complete. Parking is not allowed in the
right-of-way for periods longer than 24 hours. It is also illegal to
park a vehicle between the curb and the property line. This request
for vacation is to enable the dealership to park cars legally on this
property. There are existing utilities in this location so a utility
easement needs to be retained in the area of the vacation.
16. Hearing and First Reading of Ordinance No. 169, 1984, Rescinding the
Designation of 128-132 LaPorte Avenue as a Historic Landmark.
The property located at 128-132 LaPorte Avenue, known historically as
the Myron H. Akin Building and currently as Washington's Bar & Grill,
was designated as a local historic landmark by City Council on second
reading on June 21, 1977. On July 1, 1977, a demolition permit was
mistakenly issued to the property owner and, a few weeks later, the
front of the building was demolished. As a result of the demolition,
the Cultural Resources Board discussed the landmark designation status
of the property at its meeting of December 14, 1983 and passed a
motion to pursue rescission of that designation due to the fact that a
large portion of the original landmark structure no longer existed
and, thus, the property no longer met the criteria of a historic
landmark.
17. Items Relating to the Implementation Plan for Cooper Slough.
A. Resolution Authorizing a Cooperative Agreement with Larimer County
for the Implementation Plan for Cooper Slough.
B. Hearing and First Reading of Ordinance No. 170, 1984, Authorizing
the Transfer of Appropriations Between Capital Projects.
The County has requested the City to participate in an amount of
$20,000 in a joint project for the implementation plan for Cooper
Slough. The total project cost is $27,000. A transfer of appropri-
ations in the Storm Drainage Capital Projects Fund is necessary to
cover this anticipated expenditure.
The Storm Drainage Board has considered this matter and through a vote
unanimously supported the project.
-285-
November 20, 1984
18. Hearing and First Reading of Ordinance No. 155, 1984, A
Transfer of Appropriations Between Capital Projects for
tion of Soauldinq Lane.
ithorizing the
the Construc-
On October 30, this ordinance was tabled on First Reading to this date
to allow additional time for staff review.
The Larimer County Engineering Staff has approached the City Staff
about City participation in an Improvement District the County is
trying to organize to reconstruct and extend Spaulding Lane. The City
Staff recommends the City Council approve an ordinance appropriating
$15,000 for participation in this project.
The County Commissioners want to proceed quickly with the creation of
the district. Staff recommends adoption of the Ordinance on First
Reading. Prior to the Second Reading on December 4th, staff will work
out the agreement with the property owner in the City limits and the
final arrangements with Larimer County.
19. Resolution Authorizing the Mayor to Enter into an Agreement with
William W. Reynolds and Prospect Park East Partnership Granting a
Perpetual Drainage Easement Across City Property and Providing for the
Maintenance of said Easement.
An offsite drainage easement is needed for Prospect Park East PUD and
the easement crosses City property. The Developer is paying the City
801, of the fair market value of the property ($100) which is standard
for easements. The agreement states that the owner of the easement
shall be responsible for maintaining the easement and for damages
resulting from flooding or erosion.
20. Resolution Authorizing Renewal of an Agreement Between the Cityan
Union Pacific Railroad Allowing for the Continued Operation an
Maintenance of a 24-inch Sanitary Sewer in the Railroad Right-of-Wav
This renewal extends an existing agreement allowing the City to
operate and maintain a 24" sanitary sewer in the railroad right-of-way
which parallels Riverside Avenue between Mulberry Street and Lemay
Avenue. The extension requires initial payment of $100, with provi-
sions for payment of $100 per year for each of the following 10 years.
The agreement will be reevaluated at the end of the 10 year period.
21. Resolution Authorizing the City Manager to Enter into an Agreemod ent to
Purchase the Rogers Property to be Developed as a NeighborhoPark.
The Parks and Recreation Department, with Ron Mills, Land Acquisition
Agent, has been investigating the purchase of an 8.6 acre neighborhood
November 20, 1984
park. The site is located on West Mulberry, one-half mile west of
Taft Hill Road in an established neighborhood. The address of the
property is 2515 West Mulberry.
A full appraisal has been done on the property. The owners paid 500
of the cost to do the appraisal. The asking price was $160,000; the
appraised value is $120,000. The owners are willing to accept the
appraised price.
22. Resolution Authorizing the City Manager to enter into an Agreement of
the Right of First Refusal with Giaco Enterprises Relating to the
Leasinq of the 'Car Barn".
This Resolution, if approved by City Council, will assign the right
of first refusal to lease the Car Barn to Anthony Giacopelli. This
right of first refusal has been held by Giaco Enterprises. Since
Eileen R. Humphreys is leaving the partnership, Giaco Enterprises is
dissolving, and it is necessary to change the Right of First Refusal
Agreement.
City staff is still working with Tony Giacopelli to develop an accep-
table lease agreement for the Car Barn and recommends approval of the
Resolution.
23. Resolutions Authorizing the Deferment of Improvement Districts Assess-
ments for Lillian Hamilton.
A. Resolution Authorizing the Deferment of an Assessment for Lillian
Hamilton for Street Improvement District No. 71.
B. Resolution Authorizing the Deferment of an Assessment for Lillian
Hamilton for Street Improvement District No. 74.
The total assessment to the three properties amounts to $15,877.36.
This is distributed as $10,716.88 to the corner property in District
#71; $4,494.06 to Parcel "B"; and $666.42 to Parcel "A" in District
#74.
Staff is bringing these items to Council with a recommendation of
deferral similar to last year's item. The assessment cost, including
interest, becomes a lien against the property, accumulatively, and is
collected at the time of sale or transfer of the properties.
Staff recommends approval of the Resolution deferring assessment at
2045 West Mulberry in District #71 and the Resolution deferring
assessments on Parcel "A" (2015 West Mulberry) and Parcel "B" (2035
West Mulberry) in District #74. ,
-287-
INovember 20, 1984
24. Resolution Authorizing the City Manager to Contract with Larimer
County for the Provision of Social Services.
In 1981 the City of Fort Collins turned over the responsibility for
administering its funding of social service agencies to the Larimer
County Department of Human Development. Prior to that time, indi-
vidual contracts between the various agencies and the City of Fort
Collins were signed. The City had the responsibility for paying each
individual agency, while actual monitoring of the agencies' perfor-
mance was done by the County's Department of Human Development. The
mechanism for City funding of social services has evolved to a single
contract with Larimer County whereby the City conveys funds to the
County and the County distributes those funds among social service
agencies as agreed to by the City. The County further administers
the Human Resource program and monitors the performance of the in-
dividual agencies. The review of social service agency proposals and
allocation recommendations are made by members of the Human Resource
Committee, a sub -committee of the Larimer County Community Action
Board, whose members are appointed by the City Councils of Loveland
and Fort Collins, and the County Commissioners.
For 1985, $128,375 is proposed to be allocated to agencies for the
provision of social services and $19,269 to the County for program
administration. Fort Collins is funding approximately 607 of the
County's Human Resource program.
25. Resolution Authorizing Execution of an Intergovernmental Agreement
Between the City and Larimer County regarding the Purchase of Prooertv
In 1981, the County Commissioners and City Council began a program to
acquire property within Block 31. The acquisition of this property
was for the purpose of constructing a parking lot and possibly con-
structing goverment facilities.
Several Intergovernmental Agreements have been executed in the past
as properties in the block became available for purchase. This
agreement sets forth the terms and conditions covering: 1) the ac-
quisition of the remaining five parcels of property not previously
acquired by the City and County in Block 31; 2) the development of a
master plan for Block 31; 3) the development of a plan for management,
operation, and maintenance of the buildings located on Block 31; and
4) the establishment of a City/County center fund in which the County
and City will each deposit 1.2 million dollars for the purpose of
accomplishing the terms of this agreement and the agreement dated
February 3, 1981.
-288-
26.
27.
November 20, 1984 '
esolution Authorizing the City Manager to Enter into a Professional
ervices Agreement with Environmental Research and Technology, Inc.,
or Air Quality and Meteorological Monitoring Relating to Residential
ood Combustion.
On January 3, 1984, the City Council passed Resolution 84-6 establish-
ing air quality goals for the community and directing staff and the
Environmental Quality Technical Advisory Committee (EQUATAC) to
implement the goals. Specific direction was given to develop an air
quality monitoring program and establish an air quality control
program by December, 1984.
Environmental Research and Technology, Inc. (ERT) was selected by
EQUATAC and staff through an RFP process to assist the City in the
design and development of an Air Quality Monitoring and Control
Program. On June 5, 1984, the City Council adopted Resolution 84-90
authorizing a contract with ERT for this purpose by a vote of six to
zero.
One hundred thousand dollars ( $100,000) has been allocated by Council
in the 1984 City Budget for this program. The initial contract with
ERT for program development in the amount of $61,471 is to be com-
pleted by December 31, 1984. ERT has prepared an interim report on '
Residential Wood Combustion in Fort Collins which was distributed to
Council and reviewed by Council at its November 13th worksession.
Council has given direction that monitoring activities are to begin
this winter. ERT is prepared to undertake the necessary monitoring
activities beginning in December. The specific scope of services is
outlined in the interim report and is subject to modification, based
on discussion at the Council worksession.
Resolution Waivin Off -Site Street IL rovement Requirement for De-
velopment in the Urban Growth Area Lots in the East Mulberry Sub -
The Larimer County Planning Department has requested a rezoning, from
0-Open to I -Industrial, of several lots in the East Mulberry Sub-
division, located north of East Mulberry Street, south of Lincoln
Street, and on either side of Link Lane. Rezoning requests are
defined as development in the UGA and, therefore, must address the
phasing criteria for development within the UGA. The Larimer County
Planning Department has, thus, also submitted a waiver request for the
off -site street improvement requirement for these lots.
Staff recommends approval of the requested off -site street improvement
waiver subject to the following conditions: '
-289-
INovember 20, 1984
1. Expansions of existing uses be evaluated as to off -site street
impacts.
2. A commitment be made to participate in future street improvement
districts in the area.
3. The UGA street waiver fee be applied to any new development on
these lots.
The Planning and Zoning Board at their regular monthly meeting on
October 22, 1984, voted 7-0 to recommend approval of the waiver
request.
28. Routine Deeds and Easement
The following are routine deeds and easements which have been reviewed
and approved by the affected staff and legal department:
a) Easement from Certified Creations, Inc. (Emanual G. Pavlakis,
agent) for a 30 foot wide easement for street, utilities, and drain-
age. Wagonwheel (Melody Homes) needs a second point of access because
' they have exceeded the 660 foot limit for a single point of access.
The City has worked with the neighboring developer (Certified Crea-
tions) to obtain the easement for the east half of Bowie Avenue so
that Wagonwheel can build the road.
b) Deed of Easement from Enrique and Marny Barrau, for the sixth
parcel needed for the Foothi is Water Transmission Line, which will
provide more reliable service and fire protection within the west side
pressure zone. This easement is located west of Taft Hill and south
of Drake. Consideration: $5,400 based on $.38/sq.ft.
c) Deed of Easement from United Bank of Fort Collins (Trustee) for
property for the Foothills Water Transmission Line. This Easement
relates to a dedication from Ella Glantz, which has already been
approved by Council.
d) Powerline Easement from Bucain Corporation, located at Southridge
Greens Boulevard, for the installation of an underground powerline
to provide service to Greenridge at Southridge Greens PUD. This 5442
square foot easement is granted for a consideration of $1.
e) Utility easement from the City to Public Service Company in
Southridge Greens PUD, containing 1,508 square feet. Consideration:
$1.
mIa
November 20, 1984
f) Deed of Easement from Dueck Development, Inc. and MSP Investment '
Co., for right-of-way for Phase 1 streets in the Provincetowne/Portner
Special Improvement District #81. The easement is south of Trilby
Road and west of Lemay, and is for the construction of Brittany Drive,
Province Road, and part of Trilby Road. Consideration: $10.
g) Permit from Burlington Northern Railroad for installation of three
electric vaults on the northwest side of railroad right-of-way between
East Vine Drive and the Allen -Lind -Moore Annexation. Light & Power is
constructing a duct bank from existing facilities in Vine Street to a
substation to be located on Anheuser-Busch property.
29. Acceptance of Certification of the Results of the November 6, 1984
Special Election.
The following is a summary of the ballots cast for and against the
ballot issue:
Referred Ordinance No. 23 (Smoking in public places)
For the Ordinance 21,075
Against the Ordinance 12,012
Council needs to officially accept the certification of the election
results. '
Ordinances on Second Reading were read by title by Wanda Krajicek, City
Clerk.
Item #5. Second Reading of Ordinance No. 150, 1984, Vacation of all
Easements and Riqhts of Wav of Hilloond on SDrino Creek. Second
Item #6. Second Readinq of Ordinance No. 151, 1984, Amendinq Section 2-
and 2-35 of the Code of the City of Fort Collins Relating to t
Firemen s Pension Fund.
Item #7. Tabling of Second Reading of Ordinance No. 152, 1984, Expressi
the Consent of the City to the Inclusion of Land within t
Municipal Subdistrict, Northern Co orado Water Conservan
District.
Item #8. Second Readinq of Ordinance No. 153, 1984, Appropriatinq Fu
for the Remodel of the Library in the Capital Projects Fu
Item #9. Second Reading of Ordinance No. 154, 1984, Authorizing the C
Manager to Enter into an Amendment to the Lease Agreement w
Merit Financial Corporation for the Lease Purchase of a Pic
Truck with Crew Cab for Survevors.
-291-
November 20, 1984
Item #10. Second Reading of Ordinance No. 156, 1984, Authorizing Advance
Funding of $500,000 for Design Work for the Indoor Pool/Ice Rink
Capital Project.
Item #11. A. Second Reading of Ordinance No. 157, 1984, Authorizing the
Issuance of Sales and Use Tax Revenue Bonds in the Aggregate
Principal Amount of 11,750,000.
B. Second Reading of Ordinance No. 158, 1984 Authorizing the
Issuance of Sewer Revenue Bonds in the Aggreaate Principal
C. Second Reading of Ordinance No. 159 1984 Authorizing the
Issuance of General Obligation Water Bonds in the Aggregate
Principal Amount of 7,750,000.
Item #12.
B. Second Reading of Ordinance No. 162 1984 Relatin to the
Issuance of IDRB s The Comridge Project in the Principal
Amount of $3,5001OUU.
C. Second Reading of Ordinance No. 163 1984 Relatin to the
Issuance of IDRB s The Corporation Project in the
'
%gene
PrincipalAmount of 2,000 000.
D. Second Readin of Ordinance No. 164 1984 Relatingto the
Issuance of IDRB s T e Empire Laboratories, Inc. Project in
the Principal Amount of 170C'000.
Ordinances on First Reading were read by title by Wanda Krajicek, City
Clerk.
Item #13.
Hearing and First Reading of Ordinance No. 166 1984 Annexing
Approximately 2.8 Acres Known as the Fossil Creek Second Annexa-
tion.
Item #14.
Hearing and First Reading of Ordinance No. 1" 1984 Zoning
Approximately 2.8 Acres Known as the Fossil Creek Second Annexa-
tion Into the R-L, Low Density Residential, Zoning District.
Item #15.
Hearing and First Reading of Ordinance No. 168 1984 Vacating a
Portion of the Right -of -Way of the Frontage Road Along College
Avenue in Front of Reynolds Olds/Cadillac/Subaru While Retaining
it as a Utility Easement.
Item #16.
Hearing and First Reading of Ordinance No. 169 1984 Rescinding
the Designation of 128-132 LaPorte Avenue as a Historic Landmark.
-292-
November 20, 1984 '
Item #17. B. Hearing and First Reading of Ordinance No. 170, 1984, Author-
izing the Transfer of Appropriations Between Capital Projects
Item #18. _Hearing and First Reading of Ordinance No. 155, 1984, Authorizing
the Transfer of Appropriations Between Capital Projects for the
Councilmember Knezovich made a motion, seconded by Councilmember Ohlson,
to adopt and approve all items not removed from the Consent Calendar.
Yeas: Councilmembers Clarke, Horak, Knezovich, Ohlson, Rutstein, and
Stoner. Nays: None.
THE MOTION CARRIED.
Ordinance Authorizing Advance Funding of $500,000
for Design Work for the Indoor Pool/Ice Rink
Capital Project, Adopted on Second Reading
Following is the staff's memorandum on this item:
"This ordinance was unanimously adopted on First Reading on October 30. I
At the October 23, 1984 Council Work Session, City Council reviewed,
in detail, the advance funding requirement to start design work immediately
for the Indoor Pool/Ice Rink Capital Project.
This advance funding of $500,000 is required to meet the projected expen-
ditures until the total financing has been completed. Sale of the bonds
for financing is scheduled to be completed in the spring of 1985. Funds
are available from Prior Year Reserves and the appropriated Capital Re-
serves in the Capital Projects Fund. When the bonds for this project are
issued, this advance would be repaid to the funding source.
The advance funding will he used as follows:
1. Design Services (Hastings and Chivetta) $351,900
2. Construction Manager Services (Reid Bur-
ton Construction Company) 50,400
3. Traffic Study 10,000
4. Soils Investigations 10,000
5. Administrative Expenses 15,000
6. Contingency 62.700
$500,000"
-293- 1
November 20, 1984
Councilmember Rutstein made a motion, seconded by Councilmember Knezovich,
to adopt Ordinance No. 156, 1984 on Second Reading.
Bruce Lockhart, 2500 East Harmony Road, asked about the additional money
being requested for design work. He stated he had understood the design
was completed in 1974 or 1976.
Mayor Horak replied the additional money was to insure the design meets
current standards and incorporates technology that was not available when
the complex was first designed.
The vote on Councilmember Rutstein's motion to adopt Ordinance No. 156,
1984 on Second Reading was as follows: Yeas: Councilmembers Clarke,
Horak, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None.
THE MOTION CARRIED.
Resolution Authorizing Execution of an
Intergovernmental Agreement Between the
City and Larimer County Regarding the
Purchase of Property on Block 31, Adopted
Following is the staff's memorandum on this item:
"In 1981, the County Commissioners and City Council began a program to
acquire property within Block 31. The acquisition of this property was for
the purpose of constructing a parking lot and possibly constructing govern-
ment facilities.
Several Intergovernmental Agreements have been executed in the past
as properties in the block became available for purchase. This agreement
sets forth the terms and conditions covering: 1) the acquisition of the
remaining five parcels of property not previously acquired by the City and
County in Block 31; 2) the development of a master plan for Block 31; 3)
the development of a plan for management, operation, and maintenance of the
buildings located on Block 31; and 4) the establishment of a City/County
center fund in which the County and City will each deposit 1.2 million
dollars for the purpose of accomplishing the terms of this agreement and
the agreement dated February 3, 1981.
Time is of the essence for this Agreement since in order to negotiate
the land acquisition agreements, staff needs this Intergovernmental
Agreement executed."
Councilmember Stoner made a motion, seconded by Councilmember—Ohl son, to
adopt Resolution 84-174.
-294-
November 20, 1984 '
Bruce Lockhart, 2500 East Harmony Road, asked where the $1.2 million was
coming from and ;ghat it would be used for.
City Manager Arnold replied the money would be used to acquire the five
remaining parcels of land on Block 31 and will initially come from a three
to four month loan from internal funds until permanent financing is done.
The loans will be paid back with interest when permanent financing is
arranged.
The vote on Councilmember Stoner's motion to adopt Resolution 84-174 was as
follows: Yeas: Councilmembers Clarke, Horak, Knezovich, Ohlson, Rutstein,
and Stoner. Nays: None.
THE MOTION CARRIED.
Issuance of Industrial Development Revenue Bonds
(Dixon Associates and The Opera House Block)
Following is the staff's memorandum on this item:
"The following two Industrial
Development Revenue Bond ordinances were
adopted on
First Reading at the
October 30 meeting:
A. Second
Reading of Ordinance
No. 161, 1984, Relating to the Issuance of
'
IDRB's
(The Dixon Associates
Project) in an aggregate principal amount
not to
exceed $1,400,000.
This ordinance was adopted on First Reading by a 6-0 vote (Council -
member Knezovich withdrawn). The Dixon Associates project of $1,400,000
is for the remodeling of the Classic Building at the corner of College
and Oak in downtown Fort Collins.
B. Hearing and Second Reading of Ordinance No. 165, 1984, Relating to the
Issuance of IORB's (The Opera House Block Building Project) in the
principal amount of $3,200,000.
The ordinance and a published notice state that this is the hearing
date on the ordinance.
This ordinance was adopted on First Reading by a 5-2 vote. The Opera
House Block Building Project in the amount of $3 ,200 ,000 is for the
renovation and addition to the Opera House located between Mountain
and Laporte on College in downtown Fort Collins. The Council passed
the Opera House Inducement Resolution for $2,650,000. The size of the
issue has been increased at the request of the banks involved in the
transaction. The City's Bond Counsel's opinion is that the increase
does not present a legal problem.
-295-
November 20, 1984
All of these Industrial Development Revenue Bonds will be paying the City
an issuance fee as well as any out-of-pocket costs associated with them."
Councilmember Knezovich asked the record to show he did not participate in
the discussion or vote on Ordinance No. 161, 1984.
Councilmember Clarke made a motion, seconded by Councilmember Stoner, to
adopt Ordinance No. 161, 1984 on Second Reading.
Bruce Lockhart, 2500 East Harmony Road, asked about the involvement of Ward
Fischer as both bond counsel and investor in this bond issue.
City Attorney Huisjen noted information had been presented earlier about
Mr. Fischer's equity in the project which was evaluated by Council. The
law firm's representation in the transaction was fully disclosed to all
parties and all parties consented to the firm's representation with regard
to the issuance of the bonds.
Councilmember Stoner noted this information had been disclosed at the time
of the inducement resolution so the potential conflict had been identified
up front. He noted he felt this type of situation should be averted in the
future even though it does not affect the City negatively in any way.
The vote on Councilmember Clarke's motion to adopt Ordinance No. 161, 1984
on Second Reading was as follows: Yeas: Councilmembers Clarke, Horak,
Ohlson, Rutstein, and Stoner. Nays: None. (Councilmember Knezovich
withdrawn)
' THE MOTION CARRIED.
Georgeanne Becker, bond counsel with Ballard, Spahr, Andrews and Ingersoll,
noted there was a minor amendment on page 3 of the ordinance and read that
amendment. The amendment would insert the words "or other financial
institution or institutions acceptable to the City" in the second to the
last WHEREAS clause. The amendment would provide additional flexibility
with regard to the letter of credit to be provided.
Councilmember Stoner made a motion, seconded by Councilmember Clarke, to
adopt Ordinance No. 165, 1984, with. the amendments as noted by bond
counsel, on First Reading.
Councilmember Knezovich asked what the building was to be used for.
Walt Brown, applicant, replied that he had met with several persons to
attempt to organize the arts community to be able to support a performing
center in the building. He noted he was still working on the concept.
Councilmember Knezovich spoke in opposition to this IDRB. He felt the
action was premature and urged Mr. Brown to form his limited partnership
and let Council know exactly what is planned for the building rather than
solicit people for the partnership'; once the bonds are passed. He felt the
additional office and retail space would not be a positive addition to the
' downtown and urged defeat of the ordinance.
-296-
November 20, 1984
The vote on Councilmember Stoner's motion to adopt Ordinance No. 165, 1984
as amended on Second Reading was as follows: Yeas: Councilmembers Clarke,
Ohlson, Rutstein, and Stoner. Nays: Councilmembers Horak and Knezovich.
THE MOTION CARRIED.
Ordinance Authorizing the Issuance of
Special Assessment Bonds for Cunningham
Corners Special Improvement District No. 82
in the Principal Amount of $1,265,000,
Adopted on First Reading
Following is the staff's memorandum on this item:
"The Cunningham Corners Special Improvement District No. 82 was formed by
the City Council on June 5, 1984. It is a voluntary Special Improvement
District. The District was established under the City's policies.
The developers in the District have begun the construction of the improve-
ments, and the City will purchase the improvements under construction, at
cost, utilizing the proceeds from the bond issue. '
The bonds are 15-year term bonds, the principal amount of which can be
called at any time there is sufficient money from assessments. The use of
proceeds is as follows:
Issuance Cost $ 35,925
Underwriting Discount 31,625
Capitalized Interest 417,450
Construction & Engineering Costs 780,000
Amount of Issue $12265,000
The capitalized interest will be utilized to pay the interest on the bonds
for three years, allowing construction and dispersion to take place within
the development. The three years of capitalized interest has been in
nearly all the City's voluntary Special Improvement District bond issues.
Boettcher & Co. is acting as the underwriters on this bond issue at the
specific request of the developers. Their discount is 2 1/27 of the
principal amount of the bond issue.
-297-
November 20, 1984
As is our normal practice on bond issues, the interest rates will be read
as an amendment to the Ordinance during the meeting."
City Attorney Huisjen read the interest rates to he inserted on page 5 of
the ordinance and noted the net effective rate was 10.84%.
Councilmember Ohlson made a motion, seconded by Councilmember Stoner,
to adopt Ordinance No. 171, 1984 as modified on First Reading by City
Attorney Huisjen. Yeas: Councilmembers Clarke, Horak, Knezovich, Ohlson,
Rutstein, and Stoner. Nays: None.
THE MOTION CARRIED.
City Manager's Report
City Manager Arnold reported on the smoking ordinance information sessions
and noted approximately 150 persons had attended the meetings.
Councilmembers' Reports
' Councilmember Knezovich reported on the November PRPA Board meeting. He
noted the Board had discussed the proposed Buttonrock hydroelectric project
and had elected to abandon the site. The 1985 Budget was adopted with the
wholesale cost of power remaining the same in 1985. The Board also re-
viewed the recent fire at Rawhide in detail.
Mayor Horak reported on his visit to Bennett Elementary School in obser-
vance of National Education Meek. He spoke on the hearing on proposed
Charter amendments noting the excellent comments from those attending.
Mayor Horak suggested Council establish a policy on providing expense money
for Boards and Commissions members to attend various relevant state or
national meetings.
Secretary's Note: Councilmember Elliott arrived at this point.
Citizen Participation
A. Proclamation Designating the Month of November as Service Corps of
Retired Executives Month was presented to a representative of the
organization.
B. Proclamation Designating November 18-25 as Bible Meek was forwarded to
the appropriate persons.
November 20, 1984 '
C. Proclamation Designating November 20 as Professional Photographer'
Day was accepted by Assistant Mayor John Clarke.
D. Presentation of Donation by Camp Fire Girls for Renovation of Statue at
City Park was made by Kathy Tuttle. Parks and Recreation staff pre-
sented Mrs. Tuttle and her group with a Certificate of Appreciation for
their donation.
E. Presentation of Funnergies Awards for Prize -Winning Cartoons ab
Energy was made by Judy Putnam of Light and Power. She noted
students had participated in the contest.
F. Presentation of Plaque to Suzy Danford for Her Work with Special
Olympics was made by Mayor Horak on behalf of the Council and the Parks
and Recreation Department.
G. Resolution in Support of the Organization of a Fourth of July Parade.
Councilmember Clarke made a motion, seconded by Councilmember Rutstein,
to adopt Resolution 84-178.
Councilmember Clarke noted he had been approached by John and Linda
Letham to support a Resolution organizing a regular 4th of July parade '
that would kick off the other activities occuring in City Park on that
day. He noted Council had not decided to spend any money on the parade
nor made any other City commitment except to wish the Lethams luck on
their endeavor.
The vote on Councilmember Clarke's motion to adopt Resolution 84-178
was as follows: Yeas: Councilmembers Clarke, Elliott, Horak, Knezo-
vich, Ohlson, Rutstein, and Stoner. Nays: None.
THE MOTION CARRIED.
Garol Giger appeared to thank Council and the voters of Fort Collins for
their help in the passage of Ordinance No. 23, 1984, relating to smoking in
public places.
Ordinance Amending Portions of Chapter 50
of the Code of the City of Fort Collins
Relating to the Uniform Fire Code,
Including the Addition of Life Safety
Requirements for Existing High -Rise
Buildings, Adopted on First Reading
Following is the staff's memorandum on this item: '
-299-
1 November 20, 1984
"In 1980-1981, the Poudre Fire Authority prepared a Fire Protection and
Emergency Services Master Plan which included recommendations for the
future growth and development of fire protection in the community. The
Master Plan stressed balancing the potential for fires in the Fort Collins
area with the Poudre Fire Authority's ability to combat them. Like many
other departments across the nation, the Poudre Fire Authority determined
that the fire risk allowed in buildings built under current codes were
beyond their capabilities. The Master Plan suggested that new structures
contain built in fire protection rather than impose the expense of addi-
tional firefighters and equipment on the general taxpayer. In this manner,
the cost of fire protection is born by the party creating the risk.
The Master Plan also recommended that all existing high rise buildings be
retrofitted with automatic sprinklers. The Fort Collins City Council
adopted the Master Plan excluding the high-rise portion on January 5, 1982.
Council recommended that the Poudre Fire Authority study the high-rise
problem in further detail.
With the help of the City and the Larimer County Building Officials, Poudre
Fire Authority Staff began working on modifications to the building and
fire codes in order to implement the Fire Master Plan with the exception of
the existing high-rise recommendation. These modifications were adopted
with the 1982 Uniform Building Code and the 1982 Uniform Fire Code.
In addition to the above efforts, the Poudre Fire Authority hired FIREPRO,
Incorporated of Wellesley Hills, Massachusetts to analyze the Fort Collins
high-rise situation. FIREPRO issued their "High Rise Fire Risk Analysis"
in February 1983. They made a series of recommendations based on the
Poudre Fire Authority's ability to combat fires and the individual charac-
teristics of the structures in question. FIREPRO recommended that existing
high-rise buildings should be equipped with automatic fire sprinklers or
have the amount of open area reduced with fire rated walls to limit fire
spread. These recommendations, included in FIREPRO's final report, were
intended to reduce the risk of multiple deaths or major property damage due
to fire in the City's existing high-rise buildings.
The Appendix dealing with life safety requirements for existing high-rise
buildings added to the Uniform Fire Code by this ordinance is a modified
version of an Appendix that will appear in the 1985 Uniform Building Code.
It closely follows FIREPRO's recommendations. The proposed Appendix was
endorsed by the Fire Code Review Committee earlier this year. It allows
owners of existing high-rise buildings the choice of compartmentalization
or fire sprinklers. The proposed Appendix states that building owners have
five years to comply with its provisions.
-300-
November 20, 1984 '
Although the Master Plan suggested that the City consider participation in
the financing of the sprinkler installations, direct financial assistance
would to be in violation of the City Charter. The cost of compliance for
the building owners will vary with the building in question and the option
selected. For example, sprinklers recently installed in the DMA and the
CSU high-rises cost between $1.17 and $1.26 per squre foot. Additional
information concerning the legality of applying new safety requirements to
the existing high-rise buildings and the City's ability to participate in
financing the cost of compliance is included for your information.
The only changes made to Sections 50-3 and 50-4 of the Code of the City of
Fort Collins by this ordinance are intended to clarify whether the word
"code" refers to the Code of the City of Fort Collins or the Uniform Fire
Code."
Councilmember Elliott made a motion, seconded by Councilmember Wilson,
to adopt Ordinance No. 172, 1984 on First Reading.
Fire Chief John Mulligan gave a brief explanation of the high rise retrofit
program.
The following persons spoke on this issue: '
1. Dr. Claude Fly, Parklane Towers Condominium Association, spoke to
the efforts already undertaken in the two buildings with regard to
fire prevention and suppression. He spoke of the expense of the
elevator recall requirement and noted the buildings were in
compliance with that one exception.
2. Elery Wilmarth, representing owners in the Savings Building and
also condo owners in the First Interstate Tower and the Rocky
Mountain Bank Building, asked Council to consider adopting a
financing mechanism to aid owners in the retrofit program.
Chuck Rhodes, 1401 Patton, manager of Home Federal Savings Build-
ing, gave statistics on the probabilities of death from fires in
high rise office buildings and asked for a delay in implementation
of the ordinance until further study on the issue is completed.
Councilmember Y.nezovich asked if economics was one of the considerations
when determining practical alternatives to be applied.
City Attorney Huisjen replied that in terms of Section 104, practical
alternatives would be determined on the basis of whether they can be
physically accomplished and whether they are financially practical. The
Fire Marshall can consider the question of cost in making a determination.
-301-
November 20, 1984
Fire -Marshall Larry Donner noted he felt that in the buildings in question,
the provisions could he met within a reasonable cost.
Councilmenber Ohlson noted the uses of these buildings could change and
that the fire risk goes up as they age. He noted the progress made in
sprinkling other high-rise structures in Fort Collins and expressed the
hope the City could work with building owners to reduce their economic
burden.
Councilmember Stoner noted if these structures were converted to residen-
tial use they would go through the conversion process and would at that
time be required to install sprinklers.
Councilmember Clarke noted sprinklers would make these buildings safer but
noted there were still many questions to be answered relating to City
participation in financing and the compartmentilization versus sprinkler
issue. He suggested tabling the ordinance until those questions were
answered.
Councilmember Clarke made a motion, seconded by Councilmember Stoner,
to table Ordinance No. 172, 1984 on First Reading. Yeas: Councilmembers
Clarke, and Stoner. Nays: Councilmembers Elliott, Horak, Knezovich,
Ohlson, and Rutstein.
' THE MOTION FAILED.
Councilmember Stoner noted he felt this ordinance placed an unfair burden
on the property owners since the buildings were originally built to Code
requirements. He noted he would vote against the ordinance unless staff
found some type of mechanism to allow City participation in the financing.
Councilmember Rutstein noted she was in favor of the ordinance and noted
she might be in favor of a proposal to aid in the financing problem.
Councilmember Knezovich noted he felt the provisions of the Master Plan
should be followed and urged adoption of the ordinance.
Councilmember Elliott noted these requirements will be in future Building
Codes and they will be the "norm" for the future. He favored looking into
legal and ethical ways to use the financing techniques of the City to help
this retrofit program.
Councilmember Clarke felt the issue of City participation was not resolved
but supported the sprinklerization of the buildings for safety reasons. He
suggested that before Second Reading staff draft a Resolution instructing
staff to work with the owners of these buildings to achieve some level of
City participation that would be fair and equitable to both parties. He
noted he would vote "no" on the ordinance.
-302-
November 20, 1984
'
Mayor Horak stated he was concerned with a catastrophe situation in Fort
Collins and noted the financial hardship would be dealt with over a five-
year period of time. He stated if the ordinance proved to be unworkable, a
future Council would have the opportunity to repeal or amend it.
The vote on Councilmember Elliott's motion to adopt Ordinance No. 172, 1984
on First Reading was as follows: Yeas: Councilmembers Elliott, Horak,
Ohlson, and Rutstein. Nays: Councilmembers Clarke, Knezovich, and Stoner.
THE MOTION CARRIED.
Councilmember Clarke made a motion, seconded by Councilmember Stoner, to
instruct staff to bring back a Resolution directing staff to work with
the owners of these buildings to enter into a process for determining a
mechanism for City participation. He asked that the Resolution come back
on December 4 at the time of the Second Reading of Ordinance No. 172, 1984
and that the actual negotiations take place subsequent to the Resolution.
Councilmember Knezovich voiced his opposition to Councilmember Clarke's
motion noting he was opposed to public financing of improvements to a
particular landowner's building.
Councilmember Ohlson noted he supported Councilmember Clarke's motion to
pursue options with no promise of City participation since other City
participation mechanisms are used routinely.
'
Mayor Horak felt a motion was not necessary and expressed the concern that
a motion would imply the City would actually participate without at first
determining what the cost to the City might be. He did not support the
motion.
The vote on Councilmember Clarke's motion was as follows: Yeas: Council -
members Clarke, Elliott, Ohlson, Rutstein, and Stoner. Nays: Council -
members Horak and Knezovich.
THE MOTION CARRIED.
Resolution Adopting Criteria for
the Issuance of Multi -Family
Revenue Bonds, Adopted as Amended
Following is the staff's memorandum on this item:
"This memo presents criteria for the issuance of Multi -Family Revenue
Bonds. Also included is a discussion of other affordable housing programs
adopted and implemented by the City of Fort Collins.
-303-
November 20, 1984
MULTI -FAMILY REVENUE BONDS
Although the American dream is still to own a single family house on a
large lot, fewer and fewer people are able to realize this dream. For many
of these people, the only opportunity for decent housing is apartment
rentals. According to developers, private financing for apartments is
expensive, hard to get, and has limited the number of apartments that have
been built. Also, many of the apartments being built are financed through
joint ventures with banks and frequently are converted to condominiums in a
short time frame.
For the past six months City staff and City Council have discussed the
possibility of issuing Multi -Family Revenue Bonds to finance apartment
projects and increase the stock of this type of affordable housing in the
community. These bonds are a form of Industrial Development Revenue Bonds
and can be issued by cities, counties, and the state. These bonds are
exempt from the cap that applies to the use of IDRB's for commercial and
industrial purposes.
When IDRB's are used for multi -family rental housing, the key federal
requirement is that 20% of the units in the project must be rented to
families of low or moderate income (defined as 800/' of median income or
lower) for a period of at least ten years. It is important to note that
non-compliance with this or any other federal requirement causes the bond
issue to become taxable on a retroactive basis. The federal requirements
are minimums that must be met -before these bonds can be issued. The State
of Colorado has also established some requirements that any jurisdiction
issuing these bonds must meet. Local jurisdictions can establish more
restrictive requirements than either the federal or state governments if
they so desire.
STAFF RECOMMENDATION
The use of IDRB's to finance residential rental housing presents another
opportunity for the City of Fort Collins to pursue its commitment to
affordable housing. After discussing this program with the Council at a
work session, listening to input received at a public hearing, and dis-
cussing the program with a number of developers interested in partici-
pation, staff has developed some recommendations on how the City should
proceed.
First, staff recommends the City indicate a willingness to issue multi-
family revenue bonds for those projects that meet the locally established
criteria outlined below.
Second, the City adopt the following criteria for any bond issue:
-304-
November 20, 1984
'
1.
Twenty percent (20%) of the units in a project must be rented to
families at or below 70% of the existing median income of the
community as established annually by HUD.
2.
Base rents for the 20% restricted units will be set at 30% of 70%
of median income.
3.
One-fourth (1/4) of 1% of the original bond amount will be applied
annually by the owner as an additional rent subsidy for the 20%
restricted units. This rent subsidy will be provided instead of
collecting the City's normal IDRB fee. The rent subsidy will be
allocated equally among the restricted units.
4.
Zoning Board before Council will consider an inducement resolution
for these bonds.
6.
The amenities provided in the restricted units will be the same as
those provided in the non -restricted units.
7.
All other federal and state requirements for multi -family revenue
bonds must be met.
8.
The trustee for the bonds will be responsible for assuring that all
federal, state, and local requirements are met. The trustee will
submit an annual report to the City certifying all criteria are
being met.
9.
Even if a project meets all these criteria City Council reserves
the right to deny bonds for any project.
Third, the City will consider
varying criteria 1-4
for projects in downtown
'
or other redevelopment areas
where relocation concerns
have been addressed,
and for projects that offer
an equal or better
program for meeting the
affordable housing goals of
the program. In no case will projects be
considered that do not meet
the minimum federal
and state requirements.
To clarify the above criteria,
the following
discussion indicates the
rationale for each criteria.
20% of the Units at 70% Median Income
The minimum federal requirement is that 20% of the units in a project be
rented to families or individuals earning 80% of median income or less. The
following chart indicates the current income levels that would qualify for
this program at the federal requirements. Further analysis suggests these
people can afford current market rents in Fort Collins. Therefore, a
program at the federal requirements would simply mean the City was loaning
money for market rent projects. By reducing the qualifying income levels to
70% of median income, units will have to be provided at below market rents
and will therefore result in units more affordable than are presently being
provided by the private market. It is also important to note the Colorado
Housing Finance Authority has established the 70% figure as their income
requirement. I
-305-
' INCOME AND AFFORDABLE RENTS November 20, 1984
Family Median 80% of Max 70% of Max
Size Income Median Rent Median Rent
1 $19,900 $15,900 $395 $13,930 $350
2 22,700 18,150 450 15,890 400
3 25,600 20,450 510 17,920 450
4 28,400 22,700 565 19,880 500
5 30,700 24,100 605 21,490 540
Base Rents
Base rent for each of the set aside units would be set at 30% of 70% of
median income. These rents would be further reduced by annually applying
1/4 of 1% of the original bond amount towards equal rent subsidies for the
restricted units. With this requirement, the actual rents will be af-
fordable to families below the 70% of median income levels. This option
was selected rather than setting a lower income requirement to reduce the
potential of creating a social stigma that the project is a low income
project. At 701 of median income levels, the project would still be
attractive to market renters. CHFA presently collects a fee of 1/2 of 1%
of the annual outstanding bond amount. This fee is kept by CHFA and
used for other State housing programs. Our proposal would apply the fee
toward further rent reductions in Fort Collins projects.
Planning and Zoning Approval
To insure the projects have a better chance of being built, staff is
suggesting the project receive Planning and Zoning Board approval prior to
being considered for multi -family bond financing. This requirement will
also ensure that all the units are equally designed and meet the City's
established design criteria.
Federal and State Requirements
Rather than reinvent the wheel for this program, staff believes the other
federal and state requirements are adequate for local use and do not affect
the City's goal of affordable housing. These requirements are reiterated in
the current federal and state legislation and would have to be certified by
appropiate bond council prior to the City issuing any bonds.
Trustee Monitoring
To reduce administrative costs associated with this program, staff suggests
the trustee for the bonds monitor compliance. The trustee will be moni-
toring compliance for normal federal and state requirements and should not
have any problem monitoring our local requirements as well.
-306-
November 20, 1984
In developing this program, we contacted other jurisdictions for informa-
tion on their use of multi -family revenue bonds. The attached memo out-
lines the results of this survey and suggests the way these jurisdictions
are using bonds varies considerably. There has been no consistent method
or set of requirements adopted.
HOUSING AUTHORITY COMMENTS
Staff has discussed this program with the Housing Authority and they
believe the program is worth adopting. They indicate that the program will
not provide housing for the very low income people that have the most
severe housing problems, but the program should increase the supply of
rental housing on a longer term basis for moderate income people.
DEVELOPERS COMMENTS
Staff has also discussed the proposed program with a number of the de-
velopers that are interested in using this form of financing. Generally
they indicated the program is reasonable and they could meet the require-
ments outlined.
Copies of the proposed criteria have been sent to people who spoke at the
public hearing with an indication that Council would be considering the
criteria on November 20, 1984.
OTHER AFFORDABLE HOUSING PROGRAMS '
The following information presents an overview of other affordable housing
programs the City of Fort Collins has adopted and implemented. Assuring
that the citizens of the City have affordable housing has been an estab-
lished goal of the City for a number of years. This goal was first for-
mally adopted in 1977 as one of the City Goals and Objectives. The
goal has been reinforced by the present City Council as one of their high
priority goals.
Fort Collins has attacked the affordable housing problem in a number of
ways. It has found ways to reduce the overall cost of housing through
changes in it's development regulations. In addition, Fort Collins has
recognized the federal government cannot be relied on to continue providing
housing for the really low income people in the community and has estab-
lished a program designed to help meet the needs of these people. Each of
these programs is discussed in more detail below.
DEVELOPMENT REGULATIONS
Many national organizations have suggested the proliferation of new de-
velopment regulations has significantly raised the cost of providing a
house in the normal market situation. These criticisms have come not only
-307-
' November 20, 1984
from the National Association of Homebuilders, but from such groups as The
Federal Department of Housing and Urban Development, The American Planning
Association, The International City Management Association, and The Urban
Land Institute.
During the past several years, each of these national organizations has
prepared reports and research documenting how standard zoning and sub-
division regulations affect the cost of housing. Several common themes
throughout these research efforts were also identified as problems with
Fort Collins' old development regulations. Probably the most common problem
with most regulations is that it takes too long to get approval of a
development proposal. Other important criticisms were that most regulations
are inflexible and do not allow for small lot subdivisions or exclude the
use of manufactured housing; both options have proven cost saving impacts
on housing.
In 1981, Fort Collins revised it's development regulations in an effort to
reduce unnecessary processing time while improving citizen involvement.
The regulations were also changed to increase the flexibility to propose
and build small lot subdivisions and to provide for the development of
manufactured housing. , The Land Development Guidance System, adopted in
1981, has accomplished these goals and incorporated a number of other
features that should reduce the overall cost of housing in the community
over the next decade.
LOCAL LOW INCOME HOUSING PROGRAMS
Historically the federal government has been the provider of low income
housing. Recent changes in philosophy at the federal level and increasingly
tight budget constraints have resulted in significant cutbacks in the
amount of federal dollars available to communities for housing their low
income families and individuals.
In recognition of the change in federal housing policy, the City of Fort
Collins recently approved two locally funded low income housing programs
designed to begin to take local responsibility for housing the community's
low income families and individuals. The programs, included in the 1985
budget, provide for both short and long term approaches. State funding has
been applied for and should allow for an expansion of these programs.
To meet the immediate needs of low income families and individuals, the
City has allocated $100,000 for a rental subsidy program. This program
will provide rental subsidies to the very low income people in the com-
munity (families and individuals earning less than $6,000 a year). Although
this program will only meet the needs of a fraction of the families that
need assistance, it is expected that at least 30 households will be pro-
vided with adequate and affordable housing as a result of this local
commitment.
November 20, 1984 '
Further, recognizing that a rental subsidy program is only a short term
approach to the problem, Fort Collins has also approved a low income
housing construction program that will increase the supply of publicly
owned and operated low income housing. Through a combination of funding
from Community Development Block Grant monies and funds from Federal
Revenue Sharing, $312,000 has been allocated to construct low income
housing units. With this money, the City's Housing Authority expects to
build 6-8 units and have them available to our very low income citizens.
Both these programs are not designed to fully meet the low income housing
needs in the community, but are designed as a first step in sharing the
responsibility for this program at a local level.
Fort Collins also continues to support affordable housing with the commit-
ment of CDBG monies for housing rehabilitation and support of Neighbor to
Pleighbor's housing, counseling and assistance programs.
The Fort Collins Housing Authority also contributes to the City's affor-
dable housing programs by providing public housing and administrating
the federally funded Section 8 rental subsidy program.
CONCLUSION '
Incorporation of the Multi -Family Revenue Bond program into the City's
affordable housing efforts will make our overall program one of the best in
the country. The program will be comprehensive in nature as it addresses
affordable housing for all income levels in the community. The ongoing
efforts in affordable housing should continue to look at all income
levels. Special emphasis needs to be placed on the needs of lower income
families and individuals since this is the area where the historic solu-
tions are no longer as readily available as before."
Director of Planning & Development Director Curt Smith explained the
criteria and asked that the criteria be considered favorably.
Councilmember Rutstein asked about the need for this type of financing.
Curt Smith replied he had had discussions with developers wanting to build
this type of housing and they had indicated to him that they were having
difficulty obtaining private financing to build those type of projects. He
added he felt this program would assure there were some lower than market
rental units built. He noted 20% of the units would be rented at $100 to
$170 lower than market rate. The other units would be rented at market
rate. He noted this would provide units at the lower end of the market
level.
-309-
November 20, 1984
' Councilmember Rutstein noted her research indicated that an apartment could
be found in Fort Collins in the $260 to $335 range and noted she was not
convinced there was a need for this at this time.
Councilmember Knezovich asked about the administrative costs associated
with this mechanism.
Curt Smith replied that the staff proposal was to restrict the monitoring
costs significantly by requiring the trustee of the bonds to monitor the
City, federal, and state criteria and provide the City with an annual
report. The monitoring cost would then be reduced to evaluating the annual
report. This agreement with the trustee would be included in the bond
documents.
Councilmember Clarke noted the units surveyed by Rutstein, although they
were available, were probably on the lower end of the quality scale. He
added he felt this project would allow people to obtain better quality
housing at a reasonable rate and allow them to improve their self respect
and self image.
Councilmember Rutstein noted she considered the apartments in the next item
to be luxury apartments and felt the City should not be subsidizing them.
She felt this would be encouraging moderate, not low-income housing.
' Mayor Horak asked about the appeal time from the Planning & Zoning decision
in the criteria.
Curt Smith replied that his interpretation was that no bonds would be
issued until the appeal time -was exhausted. He noted a statement to that
effect could be added to the criteria.
Councilmember Stoner made a motion, seconded by Councilmember Elliott,
to adopt Resolution 84-179.
Lucia Liley, 110 East Oak, spoke on the monitoring of the project and noted
she did not feel that would be a problem since all of these issues will
have a trustee who will have to monitor for federal compliance. The
developers have all expressed a willingness to pay an additional fee to
have that trustee monitor for City standards. That method has already been
explored with the trustee for the next project, the Denver National Bank.
Councilmember Rutstein stated she felt there was a tremendous need for
low-income housing in Fort Collins and that this mechanism did not address
that need at all.
Councilmember Stoner noted that providing this type of housing might allow
people to "move up" in their housing standards and would then open up the
lower cost units for those with lower incomes. He felt this was an innova-
tive approach for this type housing and that it made sense.
-310-
November 20, 1984
'
Councilmember Ohlson noted he was
not convinced there was a need for
incentives for multi -family housing
in Fort Collins and
that this proposal
did not address the issue of helping
the people who need
the help the most.
He did not feel this was the direction the City should
be taking in ad-
dressing the issue of housing.
Mayor Horak noted affordable housing had many dimensions and noted this
proposal would give persons a chance to live in units that meet all City
codes and provisions when they might not otherwise have that chance. He
felt this would provide a chance for people of mixed socio-economic strata
to live in close proximity without involving direct public monies. He felt
the policy made sense.
City Attorney Huisjen noted that after paragraph 5 the phrase "and rights
of appeal have expired" should be added to address concerns expressed
earl i er.
Councilmembers Stoner and Elliott noted they would consider that addition a
friendly amendment to their earlier motion to adopt Resolution 84-179.
The vote on Councilmember Stoner's motion to adopt Resolution 84-179 as
amended was as follows: Yeas: Councilmembers Clarke, Elliott, Horak,
Knezovich, and Stoner. Nays: Councilmembers Ohlson and Rutstein. I
THE MOTION CARRIED.
Resolution Relating to the Inducement
of Multi -Family Revenue Bonds for
the Drake Landing Project, Adopted
Following is the staff's memorandum on this item:
"Staff has evaluated the Drake Landing project against the proposed multi-
family revenue bond criteria. The following evaluation is based on the
application submitted by the applicant for this project.
Criteria 1. Are 200, of the units in the project rented to families at or
below 70% of the existing median incoe of Fort Collins? The Drake Landing
project includes a total of 144 units. Twenty-nine (29) units or 20% will
be set aside for families at or below 70% of median income.
Criteria 2. Base rents for the 20" restricted units will be set at 30% of
70% of median income. Of the 29 units set aside in this project for low
and moderate income, 8 units will be one bedroom, one bath units; while 21
of the units will provide two bedrooms. The following table indicates the
base rent calculations that will be required for these units:
-311-
1
November 20, 1984
: . 4=1ly0li.9
Base Rent
Unit Family Median 70% of Median (30% of 70°% of
Size Size Income Income Median Income)
1 bdrm 2 $22,700 $15,890
2 bdrm $28,400 $19,880
$400
$500
Criteria 3. Will 1/4 of 1% of the original bond amount be applied annually
by the owner as an additional rent subsidy for the 20% restricted units?
The total bond issue is expected to be $6.5 million. The developer has
agreed to set aside 1/4 of 1% of this amount each year as an additional
rent subsidy for the restricted units. This amount will equal $16,250 per
year for rent subsidies and would be applied as a further reduction
to the base rents.
Criteria 4. Actual rent calculations. The actual rent calculations for
this project include the base rents minus the additional rent subsidy as
calculated under criteria 3. Actual rents for year one of this project
will be $350 per month for 1 bedroom units and $450 per month for the 2
bedroom units.
Criteria 5. Has the project received final approval by the Planning and
Zoning Board? The Planning and Zoning Board granted final approval to the
Drake Landing project at their October 22, 1984, meeting.
Criteria 6. Are the amenities provided in the vestricted units the same as
those provided in the non -restricted units? There is no difference in the
design between any of the units in the project other than the difference
between the one and two bedroom units. The restricted units will more than
likely be scattered throughout the project and may vary from unit to unit
over the time frame of the bond issuance. Each unit will be provided
with an amenity package including fireplaces, wall-to-wall carpeting,
draperies, range, micro -wave oven, refrigerator, dishwasher, disposal, and
washer and dryer connections. In addition, the project will include a
community building and community swimming pool. The community facilities
will be equally available to all residents within the project, including
those in the 20% restricted units.
Criteria 7. Have all other federal and state requirements for multi -family
revenue bonds been met? All these criteria will be met and assurance will
be given that they are being mete at the time an ordinance issuing these
bonds is brought forward to Council. Will the trustee provide adequate
monitoring of federal, state and: local requirements for the bonds? The
trustee for these bonds will be required to provide monitoring in the
form of a report to the City each year indicating the income levels of the
families that are renting the restricted units and how the additional rent
structure subsidy has been provided.
-312-
November 20, 1984 ,
Based on the above analysis, staff recommends approval of the Drake Landing
Inducement Resolution for the Multi -family Revenue Bonds. By setting the
rents at the levels indicated under Criteria 4 above, the 20% restricted
units would be considered affordable to families at approximately 62% of
median income, or to families of two with an income of $14,000 per year, or
to families of four at an income of $18,000 per year."
Gary Premer, Wheeler Realty, addressed the method of determining the rent
formula on this project. He noted the project would be marketed by adver-
tising in source areas and then establishing a waiting list once the units
were occupied.
Councilmember Knezovich made a motion, seconded by Councilmember Clarke,
to adopt Resolution 84-180.
Councilmember Knezovich noted his vote was conditioned on the City monitor-
ing costs being paid for by the developer. He urged adoption of the
Resolution.
Councilmember Rutstein noted she had a problem with subsidized housing of
this nature and questioned whether the project would ever be built. She
again stated it was luxury housing. '
The vote on Knezovich's motion to adopt Resolution 84-180 was as follows:
Yeas: Councilmembers Clarke, Elliott, Horak, Knezovich, and Stoner. Nays:
Councilmembers Ohlson and Rutstein.
THE MOTION CARRIED.
Lila Cassin, 1601 North College #237, and Genevieve Bogard, 1601 North
College #236, spoke to the problem of access to Poudre Valley Hospital when
the railroad tracks are occupied. They questioned whether there was time
or money to pursue the idea of railroad location and asked Council to
explore a railroad overpass to solve the problem quickly.
Councilmember Clarke urged Mrs. Cassin and Mrs. Bogard to see the City's
video tape on railroad location and thanked them for their support for a
solution to this problem.
Councilmember Knezovich noted he would follow up on the concerns expressed
by these ladies.
-313-
9
' Resolution Authorizing the City Manager November 20, 1984
to Enter into a Professional Services
Agreement with Environmental Research
and Technology, Inc., for Air Quality and
Meteorological Monitoring Relating to
Residential Wood Combustion, Adopted
Following is the staff's memorandum on this item:
"On January 3, 1984, the City Council passed Resolution 84-6 establishing
air quality goals for the community and directing staff and the Environ-
mental Quality Technical Advisory Committee (EQUATAC) to implement the
goals. Specific direction was given to develop an air quality monitoring
program and establish an air quality control program by December, 1984.
Environmental Research and Technology, Inc. (ERT) was selected by EQUATAC
and staff through an RFP process to assist the City in the design and
development of an Air Quality Monitoring and Control Program. On June 5,
1984, the City Council adopted Resolution 84-90 authorizing a contract with
ERT for this purpose by a vote of six to zero.
One hundred thousand dollars ($100,000) has been allocated by Council in
the 1984 City Budget for this program. The initial contract with ERT for
' program development in the amount of $61,471 is to be completed by December
31, 1984. ERT has prepared an interim report on Residential Wood Combus-
tion in Fort Collins which was distributed to Council and reviewed by
Council at its November 13th worksession.
The interim report identifies an implementation program for air quality and
meteorological monitoring relating to residential wood combustion. The
objectives of the program are threefold:
1. To determine if there is an air quality problem in Fort Collins
related to residential wood combustion;
2. To evaluate the feasibility and necessity for more refined or
sustained investigations pertaining to residential wood combus-
tion; and
To establish certain air quality and meteorological data collec-
tion systems fundamental to an overall Fort Collins air quality
monitoring and control program.
Council has given direction that monitoring activities are to begin this
winter. ERT is prepared to undertake the necessary monitoring activities
beginning in December. The specific scope of services is outlined in the
interim report (p.3-10) and is subject to modification, based on discussion
at the Council worksession.
-314-
November 20, 1984 '
The attached resolution will authorize a contract with ERT for time and
materials, estimated at a cost of $45,395.
Because of the urgency to get this program underway this winter, no other
firms have been considered for this implementation program. ERT was se-
lected for the initial contract through a competitive bid process because
of its professional service capabilities in the specific area of air
quality. ERT is now familiar with the Fort Collins situation and is well -
qualified to undertake this project. The implementation phase requires
similar professional services and is an appropriate follow-on to the
initial program development contract."
Councilmember Stoner made a motion, seconded by Councilmember Elliott,
to adopt Resolution 84-175.
Mayor Horak expressed his concerns that a better monitoring study could be
designed, one that had a better basis for the placement of the monitoring
stations in order to get the best results.
Director of Planning and Development Curt Smith noted that with the infor-
mation available and more time, a more comprehensive monitoring system
could be designed. This could not be completed within the time constraints
of doing the monitoring system this year. '
Mayor Horak described a Ph.D. dissertation being completed by Pat Devlin
and noted Devlin's data would be a valuable resource to design a monitoring
system. He noted there was additional information in another thesis done
by Ryan relating to income distribution. He felt clear information had not
been given during earlier meetings. He suggested Council might want to
wait and design a much better study rather than proceed too quickly and
obtain poor results.
Curt Smith noted this particular program would be looking at one piece of
the total air quality puzzle, wood burning. In the next month a more
comprehensive program will come forward and will provide more pieces to the
puzzle.
Councilmember Knezovich asked if the City would get $45,000 of usable data
out of the study that would be interactive with other information avail-
able.
Howard Gebhart, ERT, noted he had recently found out the data referred to
by Mayor Horak'had been computerized. Earlier discussions had not indi-
cated ,this. He noted the utility of this data was not limited to the
design of the monitoring system but could be used in interpreting the
results. He spoke of their site selection criteria and noted how each of
the sites selected fit those criteria.
-315-
November 20, 1984
Steve Anderson, ERT meteorologist, noted they had approached this study
with the idea of using the City's resources as best possible. He noted
their objective was to establish a data base that would allow them to go
back several years later, after certain corrective programs have been
implemented, and make comparisons. He noted the information referred to by
Mayor Horak would be very valuable in interpreting their data and the
entire issue.
Mayor Horak noted he could not support this study. He did not feel suffi-
cient work had been done to explain the data collection rationale. He felt
a better study could be designed.
The vote on Councilmember Stoner's motion to adopt Resolution 84-175 was as
follows: Yeas: Councilmembers Clarke, Knezovich, Ohlson, Rutstein, and
Stoner. Nays: Councilmembers Elliott and Horak.
THE MOTION CARRIED.
Other Business
Councilmember Ohlson made a motion, seconded by Councilmember Stoner,
to direct staff to bring an ordinance to the December 4 meeting that would
change the time of the regular Council meeting from 5:30 to 6:30 p.m.
Yeas: Councilmembers Clarke, Elliott, Horak, Ohlson, Rutstein, and Stoner.
Nays: Councilmember Knezovich.
THE MOTION CARRIED.
Adjournment
Councilmember Clarke made a motion, seconded by Councilmember Stoner, to
adjourn the meeting to 8:30 p.m. on November 27. Yeas: Councilmembers
Clarke, Elliott, Horak, Knezovich, Ohlson, Rutstein, and Stoner. Nays:
None.
The meeting adjourned at 12:20 a.m.
ATTEST:
i� `F —
City Clerk
Mayor
-316-