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HomeMy WebLinkAboutMINUTES-01/21/1986-RegularIJanuary 21, 1986 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, January 21, 1986, 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: Clarke, Estrada, Knezovich, Ohlson, Rutstein, and Stoner. Absent: Councilmember Horak Staff Members Present: Shannon, Huisjen, M. Davis, Lewis, Harmon, Diede, Dallow, and Hopkins Agenda Review: City Manager Councilmember Knezovich asked that Item #13, Hearing and First Reading of Ordinance No. 12, 1986, Annexing Approximately 261 Acres, Known as the Voc-Tech Smith Annexation, be withdrawn from the Consent Calendar. ' Interim City Manager Shannon withdrew Item #14, Hearing and First Reading of Ordinance No. 13, 1986, Zoning Approximately 261 Acres, Known as the Voc-Tech Smith Annexation, into the R-L-P, Low Density Planned Residential, Zoning District, from the Consent Agenda. Terry Whitaker, 1312 Fairview, requested Item #22, Motion to Authorize City Contribution of $4945 to Colorado Municipal League for Their Efforts in Opposing Proposed Mountain Bell Rate Increase, be removed 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. Ayenda items pulled from the Consent Calendar will be considered separately under Agenda Items #24 and #30, 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 be staff or Council. These items will be discussed immediately following the Consent Calendar. 4. Approval of the Minutes of the Regular Meetings of December 17 and January 7. -156- January 21, 1986 6. 7. Second Reading of Ordinance No. 157, 1985, Amendi City of Fort Collins Regarding Massage Parlors. Code of the I This ordinance was adopted on First Reading on January 7 by a 5-1 vote. It had been considered and denied at the December 17 meeting and then was reconsidered on January 7. On August 6, 1985, the City Council adopted Ordinance No. 71, 1985, amending the City's Massage Parlor Code by deletion of many of the provisions of the original code. The purpose of that amendment was to streamline the City's obligations with regard to the State Massage Parlor Statute thereby simplifying the job of the Liquor Licensing Authority when it is functioning as the City's Massage Licensing Authority. One of the provisions of the City's original Massage Parlor Code that was not amended is Section 73-143(D) which provides that parties -in -interest shall have the power to appeal decisions of the Authority to the City Council. Inasmuch as decisions of the Liquor Licensing Authority, pursuant to State law, are not appealable to the City Council, the decisions of the Massage Licensing Authority should be treated similarly. Second Reading of Ordinance No. 1, 1986, Appropriating Unanticipated Revenue from the Colorado Division of Highway Safety for the Fort Collins Model City Safety Belt Project. This Ordinance was unanimously adopted on First Reading on January 7. The Police Department has been awarded a grant from the Colorado Division of Highway Safety totalling $21,000. These monies are provided from the U.S. Department of Transportation, National Highway Traffic Safety Administration, and Federal Highway Administration. These funds will be used to support the already existing "Model City Safety Belt Project" Task Force. The grant will provide funding for task force approved projects, including media time and space, incentives, secretarial help, supplies and postage, etc. ding of Ordinance No. 2. 1986. Assessing the Cost of This ordinance was unanimously adopted on First Reading on January 7 and assesses the cost of the Landmark Special Improvement District No. 80 located ' -at the Southeast corner of Shields and Prospect intersection. On November 19, 1985, the City Council adopted resolution accepting the district improvements and ordering notice of the proposed assessment in setting this evening's meeting as the time the first reading of the assessment ordinance would be heard. 1 -157- January 21, 1986 8. Second Reading of Ordinance No. 4, 1986, as amended, Authorizi Issuance of $1,300,000 in Special Assessment Bonds for the Special Improvement District No. 84. This Ordinance was unanimously adopted on First Reading on January 7. After first reading of the Ordinance, staff discovered we had oversized the bond issue as it related to reimbursed expenses. We have lowered the issue from $1,400,000 to $1,300,000. Additionally, Bond Counsel desired to include language related to pending House of Representatives Bill, H.R. 3838 passed on December 17 1985, should it become law with an effective date of January 1, 1986. Staff does not feel the Bill, if enacted, will be effective retroactively to January 1, 1986. Bond Counsel, by including the language in the Ordinance, can issue a cleaner opinion on the bonds. Passage of this item on the Consent agenda will amend and then pass the amended Ordinance No. 4, 1986, on second reading. 9. Hearing and First Reading of Ordinance No. 8 1986 Annexing ' proximately 406 Acres, Known as the South Harmony Annexation. The applicant, Everitt Enterprises, on behalf of property owners Gerald and Elizabeth Ann Dusbabek; Elmer and Betty Mae Stromberger; H.H. Investment Company (General Partners: Richard J. Morroni, Thomas J. Morroni and Catherine C. Gutru); and Wildwood Farms, Inc. (Albert Parker, Jr. Agent and Attorney In Fact), is requesting annexation of approximately 406 acres, located south of Harmony Road and west of County Road 9. This is a voluntary annexation. The property to be annexed is presently undeveloped. 10. Hearing and First Reading of Ordinance No. 9, 1986 Zoning Approximately 406 Acres, Known as the South Harmony Annexation into the T-Transition Zoninq District. This is a request to zone approximately 406 acres located south of Harmony Road and west of County Road 9, known as the South Harmony Annexation, into the T-Transition zoning district. 11. Hearing and First Reading of Ordinance No. 10 1986 Annexing Approximately 1.21 Acres, Known as the Spruce Homes Annexation. The applicant, R &,S Investments, (Mr. Allan Rhoadarmer, 1611 37th Street, Greeley, C/O Ms. Jackie Dunham, The Group Inc., 375 East Horsetooth Road, Fort Collins, CO) on behalf of property owners Arlo and Ruby Dodd, is requesting annexation of approximately 1.21 acres, located south of Primrose Drive and west of Taft Hill Road. This is a voluntary annexation. The property to be annexed is presently the site of a residential structure and a commercial use. The intended use -158- January 21, 1986 of the property is for a group home. In order for a group home to be developed on the property, the property would have to be rezoned. The County has agreed not to rezone property within the Fort Collins Urban Growth Area which is eligible for voluntary annexation. 12. Hearing and First Reading of Ordinance No. 11, 1986, Zonin Approximately 1.21 Acres, Known as the Spruce Homes Annexation, int 1 1 ..... n---:«.. n1--:1--«4..1 � - -: -- n<._«-:-« This is a request to zone approximately 1.21 acres, located south of Primrose Drive and west of Taft Hill Road, known as the Spruce Homes Annexation, into the R-L, Low Density Residential, zoning district. 13. Hearin and First Reading of Ordinance No. 12, 1986, Ai Approximately 261 Acres, Known as the Voc-Tech Smith Annexation The applicant, E. E. Mitchell & Co., on behalf of property owners Ward Smith and the Larimer County Voc-Tech Center, is requesting annexation of approximately 261 acres, located south of Harmony Road and east of Shields Street. This is a voluntary annexation. The north 100 acres of the property to be annexed is presently the site of the Larimer County Vac -Tech Center. 14. Hearing and First Reading of Ordinance No. 13, 1986, Zoning Approximately 261 Acres, Known as the Voc-Tech Smith Annexation, into the R-L-P, Low Density Planned Residential, Zoning District This is a request to zone approximately 261 acres, located south of Harmony Road and east of Shields Street, known as the Voc-Tech Smith Annexation, into the R-L-P, Low Density Planned Residential, zoning district. 15. Items Relating to Fairbrooke Special Improvement District No. 79. A. Hearing and First Reading of Ordinance No. 3, 1986, Amending the District's Creation Ordinance Relating to its Method of Assessment. B. Resolution Accepting the Improvements and Ordering Notice of Assessment for'Fairbrooke Special Improvement District No. 79. The District is located at the intersection of Taft Hill Road and Prospect Street. Improvements include streets, curbs and gutters, water and sewer lines, and storm drainage improvements. The amendment to the method of assessment allows commercial land to be assessed at a rate equal to two times that of residential land. -159- 1 January 21, 1986 16. Ordinances Assessing the Cost of Improvements for Street Improvement District #76 and the Boardwalk Special Improvement District #77. A. Hearing and First Reading of Ordinance No. 14, 1986, Assessing the Cost of Improvements in Street Improvement District No. 76. B. Hearing and First Reading of Ordinance No. 15, 1986, Assessing the Cost of Improvements in the Boardwalk Special Improvement District No. 77. These Ordinances relate to two older Special Improvement Districts that are now ready to be assessed. The improvements in the Districts were accepted at the December 17, 1985 regular meeting of the City Council. District # 76 is an involuntary district and District #77 contains some of the elements of our current, voluntary, developer type districts. District #76 extends along West Horsetooth Road from College Avenue westward to the new Mercer Canal. Boardwalk Special Improvement District #77 extends from College Avenue southeastward to Harmony Road along Boardwalk and from Boardwalk northward along Landings Drive until it joins existing pavement. 17. Hearing and First Readin of Ordinance No. 16, 1986, A ro riati Unanticipated Revenue of 2,000 from State Farm Insurance for Offi Automation in the City Clerk's Office. The City Clerk's Office has received $2,000 from State Farm Insurance for the purchase of the out -dated Vydec word processing units. Adoption of this ordinance will appropriate $2,000 into the City Clerk's Office budget for office automation purposes. 18. Hearing and First Reading of Ordinance No. 17 Unanticioated Revenue of 31.000 from the Colorai aTety Tor the rort coiiins urunK urivina Lnforcement Nrooram. The Police Department has been awarded a grant from the Colorado Division of Highway Safety totalling $31,000. These monies are provided from fees assessed against convicted drunk drivers across the state. These funds will be used to support the already existing drunk driving enforcement program within the Department. The grant will provide for the majority of the salary for the patrol officer assigned to the lead on drunk driving enforcement. This Ordinance appropriates the $31,000 in grant funds for expenditure in the Police Department's Drunk Driving Program. -160- 19. Hearing and First Reading of 0 ADDroDriations Between Funds for ss January 21, 1986 1986, Transferring The 1986 Budget contains appropriations in both the General Fund and the Capital Projects Fund for Handicapped Accessibility. Staff wishes to consolidate the appropriations in the Capital Projects Fund in order to account for the project in a single location. 20. Items Relating to the Restatement of the City of Fort Collins Firefighters and Police Officers Pension Plans. A. Resolution Adopting Restatement of City's Firefighters' Pension Plan. B. Resolution Adopting Restatement of the City's Police Officers' Pension Plan. C. Hearing and First Reading of Ordinance No. 19, 1986, Amending Articles IX and X of Chapter 2 of the Code of the City of Fort Collins Relating to Firemen's and Policemen's Pension Funds. The restatements of the Firefighters' and Police Officers' Pension Plans incorporate certain plan improvements and changes made to the plans as required by the Internal Revenue Service to maintain a ' qualified plan. The restatements are being recommended by A.S. Hansen Company, the City's actuarial consultant. The Firefighters' Pension Board has approved the changes and the complete restatement. The Police Officers' Pension Board has approved these changes and the complete restatement, including changes to the vesting requirements. 21. Resolution Authorizing the City Manager to Enter into an Agreement with the State Board of Agriculture By and Through the Executive Branch of the Associated Students of Colorado State University for the Purpose of Providing Transfort Service. Each year, the City contracts with the Associated Students of Colorado State University (ASCSU) to provide Transfort services to students. Each semester, students pay a fee for unlimited bus service during that semester. This contract authorizes the City Manager to enter into a contract with ASCSU for services from January 20, 1986 to January 20, 1987 at a rate of $3.30 per semester for each full-time, fee -paying student',- 22. Motion to Authorize City Contribution of $4945 to Colorado Municipal League for Their Efforts in Opposing Proposed Mountain Bell Rate Increase. The Colorado Municipal League has asked the City of Fort Collins to participate in opposing the Mountain Bell rate increases proposed in PUC Advice Letters No. 2006-2009. Under this proposal Mountain Bell rates would be increased by 38.82% "across-the-board" applicable to -161- January 21, 1986 nearly all services. This rate proposal would be considered by the PUC in Phase I proceedings which have been set for hearing in April. 23. Motion Accepting a Donation of .089 acres of land adjacent to Alta Vista Park. During the development of Alta Vista Subdivision, second filing, the owner, Neighbor -to -Neighbor, offered Tract A to the City of Fort Collins for an extension to Alta Vista Park. The tract is .089 acres. Staff has reviewed the proposed donation and feels Tract A would be a logical addition to the existing park. Ordinances on Second Reading were read by title by Molly Davis, Deputy City Clerk. Item #5. Second Reading of Ordinance No. 157, 1985, Amending the Code of the City of Fort Collins Regarding Massage Parlors. Item #6. Second Reading of Ordinance No. 1, 1986, Appropriating Unanticipated Revenue from the Colorado Division of Highway Safety for the Fort Collins Model City Safety Belt Project. Item #7. Second Reading of Ordinance No, 2, 1986, Assessing the Cost of Improvements in the Landmark Special Improvement District No. 80. Item #8. Second Reading of Ordinance No. 4, 1986, as amended, Authorizing the Issuance of $1,300,000 in Special Assessment Bonds for the Heart Special Improvement District No. 84. Ordinances on First Reading were read by title by Molly Davis, Deputy City Clerk. Item #9. Hearing and First Reading of Ordinance No. 8, 1986, Annexing Approximately 406 Acres, Known as the South Harmony Annexation. Item #10. Hearing and First Reading of Ordinance No. 9, 1986, Zoning Approximately 406 Acres, Known as the SouthHarmony Annexation, into the T-Transition Zoning District. Item #11. Hearing and First Reading of Ordinance No. 10, 1986, Annexin Approximately 1.21 Acres, Known as the Spruce Homes Annexation. Item #12. Hearing and First.,Reading of Ordinance No. 11, 1986, Zoning Approximately 1.21,.Acres, -Known as the Spruce Homes Annexation, into the R-L, Low Density.Residential. Zoninq District. Item #13. Hearing and First Reading of' -'Ordinance No. 12, 1986, Annexin Approximately 261 Acres, Known as the Voc- ech Smith Annexation Item #14. Hearing and first Reading of Ordinance No. 13, 1986 Zonin Approximately 261 Acres, Known as the Voc-Tech Smith Annexation into the R-L-P. Low Density Planned Residential. Zoninq District -162- January 21, 1986 Item #15. A. Hearing and First Reading of Ordinance No. 3, 1986, Amendin the District's Creation Ordinance Relating to its Method o Assessment. Item #16. A. Hearing and First Reading of Ordinance No. 14, 1986 Assessing the Cost of Improvements in Street Improvemen District No. 76. B. Hearing and First Reading of Ordinance No. 15, 1986, Assessing the Cost of Improvements in the Boardwalk Special Improvement District No. 77. Item #17. Hearing and First Reading of Ordinance No. 16, 1986, Appropriating Unanticipated Revenue of $2,000 from State Farm Insurance for Office Automation in the City Clerk's Office. Item #18. Hearin and First Readin of Ordinance No. 17, 1986, Appropriating Unanticipated Revenue of 1,000 from the Co orado Division of Highway Safety for the Fort Collins Drunk Driving Enforcement Program. Item #19. Hearing and First Reading of Ordinance No. 18, 1986, Transferring Appropriations Between Funds for Handicapped Accessibility. Item #20. C. Hearing and First Reading of Ordinance No. 19, 1986, Amending Articles IX and X of Chapter 2 of the Code of the City of Fort Collins Relating to Firemen's and Policemen s Pension Funds. Councilmember Clarke made a motion, seconded by Councilmember Stoner, to adopt and approve all items not removed from the Consent Calendar. Yeas: Councilmembers Clarke, Estrada, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Motion to Authorize City Contribution of $4945 to Colorado Municipal League for Their Efforts in Opposing Proposed Mountain Bell Rate Increase, Adopted Following is the staffs`memorandum on this item: "Executive Summary The Colorado Municipal League has asked the City of Fort Collins -to participate in opposing the Mountain Bell rate increases proposed in"PUC Advice Letters No. 2006-2009. Under this proposal Mountain Bell rates would be increased by 38.82% "across-the-board" applicable to nearly 'call 1 1 1 -163- January 21, 1986 services. This rate proposal would be considered by the PUC in Phase I proceedings which have been set for hearing in April. Background In addition to the above mentioned increase, Mountain Bell has announced that it will also file a "restructure of rates" application in mid -February based on cost -of -service considerations. This is expected to be considered by the PUC in Phase II proceedings which will follow the conclusion of Phase I hearings. The Company has not filed any details on what will be the "restructuring of rates." CML advises that, based on past experience, the anticipated proposals could result in large increases to certain customers. Accurate billing information per customer of the effects of the proposed rate restructuring will not be available until at least mid -February. However, even without that information, it is estimated that the 38.82% "across-the-board" increase considered in Phase I could result in a potential increase of as much as $78,000 per year for the City of Fort Collins, based upon our current annual payment of approximately $200,000 for Mountain Bell services overall. The League Board has authorized the League to participate on behalf of municipal interests and consumers generally. League participation will focus on Phase I proceedings to fortify positions and to address new and separate issues not expected to be addressed by the Office of Consumer Counsel, such as protecting the interests of municipalities. The League has engaged the law firm of Gorsuch, Kirgis, Campbell, Walker and Grover to represent it in the proceedings. The League also plans, subject to availability of funds, to retain public utility experts to testify on behalf of municipal and consumer interests. Details of the results of the League's previous participation in opposing Mountain Bell rate increases are included in the attached memorandum, dated December 31, 1985. The memorandum summarizes the reasons for Municipal participation in the 1985 Rate Proceedings as follows: 1. Collective participation by municipalities will help ensure that our citizens, as customers of Mountain Bell, have a stronger voice before the PUC in opposing very large telephone rate increases. 2. The potential increased costs of telephone service for our municipal government far exceeds the 7 cents per capita ($4945) contribution by our,municipality. 3. Our participation with other municipalities and the League will again provide a united approach to address a common concern. -164- January 21, 1986 1 Upon review of all available information, staff recommends Council approve the contribution of $4945 to the League in support of its opposition effort on behalf of Colorado municipalities and consumers. The contribution will be funded from the City Telephone System (CITEL) budget." Councilmember Knezovich made a motion, seconded by Councilmember Ohlson, to authorize the City to contribute $4945 (7 cents per capita) to the Colorado Municipal League for their efforts in opposing a proposed Mountain Bell rate increase. Councilmember Knezovich explained the proposed CML efforts in opposing the telephone rate increase. Terry Whitaker, 1312 Fairview Drive, a Mountain Bell employee, opposed the expenditure of taxpayers' money to oppose the telephone rate increase and pointed out some of the current pressures on the phone industry. He suggested that the PUC has other forums for the public to express an opinion through channels. Bruce Lockhart, 2500 East Harmony Road, asked about CML's hiring a law firm to lobby to oppose the telephone rate increase. Mayor Rutstein noted that the City has contributed in previous years to the CML to oppose proposed rate increases. She also noted that the CML also gathers information to find out how much of a rate increase is actually necessary. Councilmember Stoner commented on the obligation of the City to work toward keeping all rates as low as possible. Councilmember Clarke noted that the CML is obtaining expert help to represent the municipalities in the PUC process. Councilmember Ohlson noted that similar actions have been taken in the past and part of the City's cost may be refunded at the conclusion of the action, which is to ensure that the citizens are adequately represented. The vote on Councilmember Knezovich's motion was as follows: Yeas: Councilmembers Clarke, Estrada, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Items Relating to the Creation and Financing of South Lemay Special Improvement District No. 86 Following is the staff's memorandum on this item: -165- 1 January 21, 1986 "Executive Summa A. Resolution Accepting the Petition, Declaring a Need for the Improvements and Directing the Public Works Administrator, or Designated Representatives, to Prepare Plans, Estimated Costs, and a Map of the Proposed District. B. Resolution Accepting the Report of the Costs, Assessment Method and Plans for the South Lemay Special Improvement District No. 86. C. Hearing and First Reading of Ordinance No. 6, 1986, Relating to the Creation of South Lemay Special Improvement District No. 86. D. Hearing and First Reading of Ordinance No. 7, 1986, Appropriating Funds to Pay the Required City Street Oversizing Costs for SID No. 86. E. Motion Accepting a Deed of Easement from South Fort Collins Sanitation District for SID #86. Background Debt Financing The primary concerns expressed by the City Council at its meeting on January 7, 1986, in regard to South Lemay Special Improvement District No. 86 were the amount of City street oversizing cost and the incurrence of debt to pay the City's cost. For the past few years the City has been financing most major infrastructure improvements utilizing various forms of debt. The current 5 year General City Capital Program differs in that it is primarily pay as you go based. The City currently has outstanding $107,000,000 in debt broken down as follows: December 31, 1985 Type of Debt Sales & Use Tax Revenue General Obligation Park Parkland' Water ' Sewer' SouthRidge BAN Pool/Rink BAN Without Anheuser-Busch A-B only (IN MILLIONS) $ 8 $ 12 5 8 8 3 27 3 9 -166- Special Assessment DDA GID #1 The money to provide the debt service from future revenues. The incurrence cost is no different. The debt service budgets and recommendations for fees. Development Requests - City Policy January 21, 1986 14 $ 60 $ 47 of these obligations will be derived of debt related to street oversizing is considered in the preparation of When a developer decides to propose a development within the City, City staff reviews the development using several different documents which outline criteria to ensure compatibility with the City's goals, objectives and land use policies. The review process also points out the benefit of the development to the City. This review process has been completed for SID #86. Staff has worked with the developers for the past ten months and the proposed development meets the criteria for development within the City. For this reason, staff feels that Council should review this project under the present policies, even though Council is aware that on January 28th the Street Oversizing Fund will be discussed in detail which may result in revised policies for street oversiziny. SID #86 This proposed SID is located on Lemay Avenue from County Road 32 (Windsor Road) north to the existing improved Lemay Avenue at SouthRidge Greens Golf Course a distance of 9,835 feet (1.86 miles). This District was proposed as a companion District to the Provincetowne/Portner SID No. 81 which was established on October 30, 1984. Provincetowne/Portner SID improved Trilby and internal streets and SID No. 86 will improve South Lemay. The Lemay District is comprised of three properties, two of which are also found in the Provincetowne/Portner SID. The improvements in the proposed South Lemay SID consist of upgrading Lemay Avenue from a graveled County road to an asphalt surface, a bridge crossing Fossil Creek, storm drainage culverts and structures, sanitary sewer mains within the roadway (owned by the South Fort Collins Sanitation District) and a 20-inch water mai"n within the roadway (owned by the Fort Collins/Loveland, Water District). At this time, Lemay Avenue will be constructed without'',the top,two inches of asphalt, because the street will act as a collector"in the near term while traffic demands are relatively low. This will defer the City's oversizingiobligation until the time that Lemay needs to be brought up to an arterial structural strength. Also we are proposing to construct raised and landscaped,.; medians 300' each direction from major intersections instead of•the entire length to further reduce the future oversizing costs. The roadway wilVbe constructed with 2 travel lanes and a bike lane for 7,250-feet. This section will include curb, gutter and sidewalk and landscaped streetscape on the west side only with 30-feet of paved surface (which includes two 12-foot tra'v'el lanes and 1 1 -167- January 21, 1986 one 6-foot bike lane). In addition, the full arterial width will be constructed for 2,585 feet. This will include curb, gutter, and sidewalk on both sides, landscaped streetscapes and 72 feet of paved surface. With most of the roadway constructed as a portion of the complete arterial, the project provides the capacity needed for these developments. The remainder of the arterial width will be constructed with future development adjacent to it. In this manner, the improvements will be adequate to serve the development property without totally building the arterial width and depth. The total estimated cost (excluding legal, financing, advertising, interest during construction and until assessments are made or other incidental costs) for the proposed district is $2,772,340 of which $1,293,304 is assessable to the district; $319,941 will be paid by the South Fort Collins Water District for oversizing the water main and $1,159,095 will be paid by the City funds listed below. The City's costs are broken down as follows: Street Oversizing Fund $459. 095 Storm Drainage Utility Fund $300,000 Street Oversizing Fund Revenue Note $400,000 The equivalent local street construction cost for abutting properties not included in the District are included in the assessable costs. These costs will be $81,660 and will be paid for by the petitioners with repayment to be collected from future development. Funding City Costs The Stormwater Utility's $300,000 portion of the costs was funded through Council appropriation in August of 1985. To fund the street oversizing portion of $459,095, we will appropriate funds from the $2,000,000 line of credit set up by Council. A more complete review of the oversizing fund is attached in the street oversizing status memo. The Street Oversizing Fund Revenue Note is issued by the City to the developer for a principal amount of $400,000. The City will begin paying back the note at the same interest rate as the SID bonds three years following their issuance. We have negotiated repayment over a ten year period which is adjustable depending on the rate of oversizing fees received from these developers. Attached is the developers.'- estimated construction schedule for his buildings. This estimated construction schedule can be used to predict the oversizing payback -rate. , When the developer has built enough units to exhaust the oversizing credits• allowed under the development agreement, then the city will begin receiving direct oversizing fee paybacks. In the schedule shown, the oversizing credits will be exhausted in three years, and the fund will begin to be repaid. I.M January 21, 1986 Other Funding I The attached letter from the Fort Collins -Loveland Water District assures their participation in the project. As noted in the letter, the costs for those improvements to be borne by the Water District have been budgeted and approved in their 1986 annual budget. Forty percent of the street oversizing obligation adjacent to the proposed development is included in the Districts' assessable costs and will be taken as credit against oversizing fees by the developers at time of building permit application. This assists the City cash flow in the street oversizing fund. If the developers chose to develop their respective properties under the standard development procedures, as opposed to using the SID mechanism, the City may not get the benefit of the 40% credit ($224,000), nor the developer's payment of the non -participating local street share ($81,660). The Code would seem to indicate that the City would be obligated to pay the higher price if the development was constructed without an S.I.D. However, this logic does not pass the "test of common sense." We believe the City always has the right to say "we don't have the money, so we choose not to participate" or "we don't have the cash but we do choose to participate through debt financing." The property owners in the District have agreed to pick up an additional $81,660 to cover construction of the local street portion of Lemay Avenue adjacent to non participating properties in the District. (South Fort Collins Sanitation District and Fossil Creek Meadows PUD) Benefits There are a number of public benefits to be derived from SID #86: 0 1.86 miles of gravel road will be upgraded to an asphalt paved street on South Lemay. 0 Construction of a new bridge over Fossil Creek on South Lemay will carry future traffic loads and safely pass the 100 year storm. 0 South Lemay, improvemen'tswill connect another north -south vehicular corrrdor to the'southern growth boundary. 0 South Lemay will provide a parallel access through our city taking the pressure of future traffic from already congested College Avenue. 0 South Lemay will provide an alternate route for I-25 access. 0 South Lemay will provide an improved street to carry traffic generated by future development in the southern sect:i`on of the city. -169- 1 January 21, 1986 0 Will serve a development which has an approved HUD demonstration project for affordable housing. Summary With SID #86, Lemay will provide a second major access from the south boundary of the City to the central business district. (College Avenue being the other.) Until the time that the full arterial is needed, a 2 lane street will provide service to the developing area. The Dueck, MSP and McKendry properties have received PUD approval and are expected to generate additional traffic in the near future. We cannot adequately handle this added traffic on College Avenue without additional congestion. The construction of the bridge and drainage structures and the two-lane roadway north of the MSP property provides a continuous roadway through a potentially dangerous area. Increasing the amount of the line of credit draw for this arterial linkage appears to be justified. Recommendation The proposed SID meets all of the policy issues as established by Council and fulfills a need for the City as a whole; staff, therefore, recommends approval of the items relating to the creation and financing of the South t Lemay Special Improvement District No. 86." Councilmember Stoner made a motion, seconded by Councilmember Estrada, to adopt Resolution 86 9. City Engineer Gary Diede gave a brief presentation concerning the location, developers, proposed improvements, public benefits, and the City's cost. Councilmember Stoner asked if interest would accrue during the first three years. City Engineer Diede replied that interest would not accrue or be paid by the City during the three year period. Councilmember Clarke inquired about the County's participation in improvements to Windsor Road. City Engineer Diede replied the County is considering this project for 1986. The vote on Councilmember Stoner's motion to adopt Resolution 86-9 was as follows: Yeas: Councilmembers Clarke, Estrada, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED, Councilmember Clarke made a motion, seconded by Councilmember Ohlson, to adopt Resolution 86-10. Yeas: Councilmembers Clarke, Estrada, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. -170- January 21, 1986 I THE MOTION CARRIED. Councilmember Stoner made a motion, seconded by Councilmember Clarke, to adopt Ordinance No. 6, 1986 on First Reading. Yeas: Councilmembers Clarke, Estrada, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Councilmember Estrada made a motion, seconded by Councilmember Ohlson, to adopt Ordinance No. 7, 1986 on First Reading. Councilmember Knezovich commented on the street oversizing contingent liability and the $1 million negative street oversizing balance. The vote on Councilmember Estrada's motion to adopt Ordinance No. 7, 1986 on First Reading was as follows: Yeas: Councilmembers Clarke, Estrada, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Councilmember Clarke made a motion, seconded by Councilmember Stoner, to accept a deed of easement from South Fort Collins Sanitation District for right-of-way for SID No. 86. Yeas: Councilmembers Clarke, Estrada, I Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Ordinance Annexing Approximately 261 Acres, Known as the Voc-Tech Smith Annexation. Adooted on First Readin Following is the staff's memorandum on this item: "Executive Summary This is a request to annex approximately 261 acres located south of Harmony Road and east of Shields Street. Background The applicant, E. E. Mitchell & Co., on behalf of property owners Ward Smith and the Larimer County Voc-Tech Center, is requesting annexation of approximately 261 acres, located south of Harmony Road and east of Shields Street. This is a voluntary annexation. The north 100 acres of the property to be annexed is presently the site of the Larimer County Voc-Tech Center. The property is located within the Fort EtCollins #Urban Growth Area. According to policies and agreements between the City',�of Fort Collins and Larimer County contained in the INTERGOVERNMENTAL AGREEMENT FOR THE FORT -171- January 21, 1986 COLLINS URBAN GROWTH AREA, the City will annex property in the UGA when the property is eligible for annexation according to State law. The property gains the required 1/6 contiguity to existing city limits from a common boundary with the Shields -Harmony Annexation located to the north. When developed, this property will receive water service from the Loveland -Ft. Collins Water District and sewer service from the South Ft. Collins Sanitation District. The Planning and Zoning Board, at their regular monthly meeting on December 16, 1985, voted 7-0 to recommend approval of the annexation request. A copy of the Board's minutes is attached." Councilmember Ohlson made a motion, seconded by Councilmember Stoner, to adopt Ordinance No. 12, 1986 on First Reading. Councilmember Knezovich asked about electric service in the annexation, the City's agreement with Poudre Valley R.E.A., and electric savings to Voc-Tech for annexing. Interim City Manager Shannon stated that the City has an agreement to buy out electric service lines in the area. Finance Director Jim Harmon stated the City's cost to buy out electric service lines is recovered in the electric rate structure. Councilmember Knezovich asked that more information on electric cost recovery be provided before Second Reading of the annexation ordinance. The vote on Councilmember Ohlson's motion to adopt Ordinance No. 12, 1986 on First Reading was as follows: Yeas: Councilmembers Clarke, Estrada, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Ordinance Zoning Approximately 261 Acres, Known as.the Voc-Tech Smith Annexation, into the'R-L-P, Low Density Planned Residential, Zoninq District. Adopted on First Reading Following is the staff's memorandum on this item: "Executive Summary This is a request to zone approximately 261 acres, located south of Harmony Road and east of Shields Street, known as the Voc-Tech Smith Annexation, inco the R-L-P, Low Density Planned Residential, zoning district. -172- January 21, 1986 Background I The applicant, E. E. Mitchell & Co., on behalf of property owners Ward Smith and the Larimer County Voc-Tech Center, is requesting zoning of approximately 261 acres, located south of Harmony Road and east of Shields Street, known as the Voc-Tech Smith Annexation, into the R-L-P, Low Density Planned Residential, zoning district. The north 100 acres of the property is presently the site of the Larimer County Vac -Tech Center. The remainder of the property is undeveloped. Staff has reviewed the zoning request and feels the request is supported by the City's Comprehensive Plan. The majority of property is undeveloped but is located in an area where some large lot single-family subdivisions have developed in the county. Staff expects the property to develop residentially and the R-L-P zoning would be consistent with that expectation. It has been the recent practice of the City to place a planned unit development condition on the zoning of all property annexed into the city. Such a zoning condition requires all development proposals on property within the annexation to be reviewed against the criteria of the LAND DEVELOPMENT GUIDANCE SYSTEM. Staff now feels that the PUD condition may not be necessary for all annexations, especially those requesting zoning into the R-L, Low Density Residential, or R-L-P, zoning districts. If a proposed planned unit development is denied approval by the City on property zoned with a PUD condition the property has no "use -by -right" to which it can be developed. This may border on a legal "taking" of property rights without just compensation. By allowing R-L or R-L-P zoning without a PUD condition the property can be developed as a single-family subdivision "use -by -right" eliminating the possibility of a "taking" argument. Any other type of development, i.e. multi -family and non-residential uses, can Still be proposed on property zoned R-L or R-L-P through the use of the PUD process and the LOGS. The Planning and Zoning Board, at their regular monthly meeting on December 16, 1985, voted 7-0 to recommend approval of the zoning request. A copy of the Board's minutes is attached." Councilmember Clarke made a motion, second6d•:by Councilmember Stoner, to adopt Ordinance No. 13, 1986 on First Readin62,�, Councilmember Knezovich asked about the` appropriateness of R-L-P zoning for Voc-Tech. Interim City Manager Shannon stated that a school is a use by right in any zoning district, and this is the lowest density zone. The vote on Councilmember Clarke's motion to adopt Ordinance No. 13, 1986 on First Reading was as follows: Yeas: Councilmembers Clarke, tEstrada, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. -173- Li January 21, 1986 City Manager's Report Interim City Manager Shannon reported that Transfort's Free Ride Day on January 20 generated a 42% increase in ridership. Councilmembers' Reports Councilmember Clarke reported on his and the Mayor's testimony before a State Senate Committee hearing on proposed legislation concerning smoking in public places. The weaker state legislation could preempt local law. Mayor Rutstein stated that she will continue to work with Assistant City Manager Verna Lewis to lobby to strengthen the state law or to allow the local legislation to remain in place. Councilmember Stoner reported on a dinner meeting with the Loveland City Council concerning the airport. Councilmember Ohlson commented favorably on the City's brochure Wood Burning Tips for Clean Air. Councilmember Knezovich reported on a Thursday CML Board meeting on pending legislation. He also commented on the recent Council retreat at the Lincoln Center. Councilmember Estrada noted the pending formation of a Hispanic Advisory Committee to the Police Chief. Mayor Rutstein reported on 1986 goals set at the retreat emphasizing general and basic services, improvement in efficiency, streets and traffic, economic opportunity for women, neighborhood planning, railroad relocation, a senior citizens center, air quality and natural resources, transportation alternatives, and a Charter review. Mayor Rutstein reported_on the Visual Arts Exhibit at the Power Plant. Citizen Participation Norman Munn, Laporte, expressed concerns about recent court rulings affecting water supplies for municipalities originating in wilderness areas. Terry Podmore, 1205 West Mountain Avenue, stated that a trench in the median has not been filled in by the Municipal Railway Society. He stated the neighborhood hasl,concerhs with the Trolley Society's performance and noted the Society i's'running',behind schedule on construction. -174- January 21, 1986 I Kathy Jones, a business owner at 127 South College Avenue, supported the hazardous materials transportation ordinance which will be considered on February 18. Other Business Hazardous Materials Councilmember Clarke noted that the hazardous materials ordinance has been delayed to February 18 because the state legislature is considering state legislation on the matter during this session. Councilmember Ohlson commented on work being done at the state level on hazardous materials legislation and noted that local legislation will be considered if the state legislature does not take strong action. Councilmember Knezovich commented on the proposed bills being considered by the legislature. Councilmember Stoner noted that local legislation could be preempted by strong state legislation, and the City should wait to see what happens at the state level before adopting an ordinance. Councilmember Ohlson asked the City Attorney if there would be any advantage for the City to adopt an ordinance before the state enacts legislation. City Attorney Huisjen stated that if the matter is found to have statewide concern, state legislation would preempt any local ordinance. The question as to whether there is any benefit to adopt a City ordinance first would have to be studied. Councilmember Knezovich commented on petroleum transport hazards. Mayor Rutstein noted that some pressure could be put on the state legislature by the adoption of a City ordinance. Internal Efficiency Task Force Proposed Councilmember Estrada proposed the creation of an Internal Efficiency Task Force to prioritize Ci;ty• services and recommend the phasing out of inefficient services. The'task force would include private citizens. Councilmember Clarke commented on the activities of the federal Grace Commission and noted the proposed task force could operate with a similar goal to look at how the City is operated. Councilmember Knezovich commented on cut backs in federal funding. He noted that Council will need to make tough budget decisions land "privatization" of services may not be the answer. -175- January 21, 1986 1 Councilmember Ohlson commented on program budgeting which is one tool staff is using to work toward more efficiency. Interim City Manager Shannon noted a balanced budget is required under the Charter. He noted that the private sector could be called in to look at specific areas in City government for a focused review of services. Councilmember Estrada noted his proposal would augment the existing process. Councilmember Ohlson pointed out that cuts in federal funding will mean an increase in local responsibilities with less resources. He noted that the City has not raised taxes. Adjournment Councilmember Stoner made a motion, seconded by Councilmember Ohlson, to adjourn the meeting. Yeas: Councilmembers Clarke, Estrada, Horak, Knezovich, Ohlson, Rutstein, and Stoner. Nays: None. The meeting adjourned at 8:18 p.m. Mayor DeputyLiti-YI-erk 1 -176-