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HomeMy WebLinkAboutMINUTES-09/02/1986-Regular' September 2, 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, September 2, 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: Estrada, Horak, Kirkpatrick, Liebler, Ohlson, Rutstein, and Stoner. Staff Members Present: Burkett, Huisjen, Krajicek Agenda Review: City Manager City Manager Burkett indicated there were no changes to the agenda. Consent Calendar ' This Calendar is intended to allow the City Council to spend its time and energy on the important items on a lengthy agenda. Staff recommends approval of the Consent Calendar. Anyone may request an item on this calendar be "pulled" off the Consent Calendar and considered separately. Agenda items pulled from the Consent Calendar will be considered separately under Agenda Items #24 and #36, 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. Items Relating to Amendments to the land nevalnnmant rlliHnnro cvctom A. Second Reading of Ordinance No. 106, 1986, Amending Section 118-20(A) of Code Regarding Zoning Board of Appeals. B. Second Reading of Ordinance No. 107, 1986, Repealing and Reenacting Section 2-13 of the Code Regarding Planning and Zoning Board Authority. C. Second Reading .of Ordinance Provisions of Chapter 99 of Land. No. 108, 1986, Amending Certain the Code Regarding Subdivision of D. Second Reading of Ordinance No. 1091 1986, Amending Certain ' Subsections of Section 118-83, The Land Development Guidance System of the Code. M September 2, 1986 Q 7. These ordinances were adopted unanimously on First Reading on August 1 19 and are part of an ongoing evaluation of the City's development process. The proposed changes will provide solutions to problems in the existing codes. Staff has received input from developers, design professionals and citizens in the development of the amendments. The Planning & Zoning Board has reviewed the proposals and recommended approval of the ordinances. Items Relating to the Annexation and Zoning of Approximately 60.06 Acres Known as the Fort Collins Business Center. A. Second Reading of Ordinance No. 114, 1986, Annexing Approximately 60.06 Acres Known as the Fort Collins Business Center Annexation. B. Second Reading of Ordinance No. 115, 1986, Zoning Approximately 47.52 Acres of Fort Collins Business Center Annexation into the I-L, Limited Industrial, Zoning District and Approximately 12.54 Acres into the R-L-P, Low Density Planned Residential, Zoning District. These Ordinances were unanimously adopted on First Reading on August 19. The applicant, John Gregory, on behalf of the property owner, the Fort Collins Business Center, is requesting annexation of approximately 60.06 acres located east of Tenth Street and North Lemay ' Avenue, south of East Vine Drive, and north of East Lincoln. This is a 100% voluntary annexation. The property is presently vacant. The requested zoning is for 47.52 acres of I-L, Limited Industrial, located east of the Lemay Avenue realignment, and 12.54 acres of R-L-P, Low Density Planned Residential, located west of the Lemay Avenue realignment next to Andersonville. Ordinance No. 42, 1986, adopted on April 15, authorized the issuance of Special Assessment Bonds for the Harmony Trunk Sewer Special Improvement District No. 60. Contained in Section 6 of the Ordinance is a provision for the payment of interest on the bonds on the first days of May and October of each year of the life of the bonds. The October date was included in error and needs to be changed to November so that we' have equal semi-annual payments of interest. This Ordinance, which was adopted unanimously on First Reading on August 19, will correct that error. Last year Council approved Resolution 85-113 accepting a grant for $79,200 from the State Highway Department Special Bridge Fund and -61- September 2, 1986 11 FM J6 10. passed Ordinance in the amount of and construction County Canal No appropriate the adopted on First No. 94, 1985 appropriating the City's matching funds $19,800. We are now ready to proceed with the design of the replacement bridge at Oak Street and Larimer 2, near the ball fields at City Park, and need to grant funds. This Ordinance, which was unanimously Reading on August 19, will make that appropriation. Upland Industrial Development Company, the developer of Upland's Prospect Business Park, is required to pay a portion of the costs to widen Prospect Road, adjacent to their property, to arterial standards. This is in accordance with the Development Agreement dated August 23, 1984. This Ordinance, which was unanimously adopted on First Reading on August 19, will appropriate $16,304 received from Upland in the Timberline and Prospect Intersection Reconstruction Project. These funds will be used to pay for the widening of Prospect Road adjacent to Upland's Prospect Business Park that is being completed as part of the Timberline and Prospect Intersection Project. Program. Last year the City initiated an annual sidewalk improvement program to construct and mai.ntain the sidewalk system. Individual property owners were able to participate in the program on a voluntary basis, paying one half the cost of the necessary improvements. The City received $9,618.30 from property owners during the 1985 Sidewalk Improvement Program. This ordinance, which was unanimously adopted on First Reading on August 19, appropriates this revenue for the 1986 Sidewalk Improvement Program. The owners of Seven Springs Ranch P.U.D. are requesting the vacation of all the rights -of -way and easements except for the right-of-way for Taft Hill Road and easement for a sewer line. They are having problems marketing the project with the existing design and have no intention of developing it as platted. All utilities have been contacted and have no problems with the vacation. This Ordinance, which was adopted unanimously on First Reading on August 19, would accomplish the vacations. -62- September 2, 1986 12. 13. 1 This Ordinance was unanimously adopted on First Reading on August 19. When Tract "B" in the Silverplume Estates was designed for use as an open channel in 1983, the alignment of the channel was estimated because final plans for the outlet to Spring Creek were not complete. The outfall has now been designed as part of the Trend -Cedar Village Outfall Project and the new alignment does not require the entire area in Tract "B". The new alignment will minimize the amount of right-of-way required downstream and allow for a more hydraulically efficient channel. Staff recommends that 299 s.f. in Tract "B" be vacated. This Ordinance was unanimously adopted on First Reading on August 19. Chapter 104 of the Code of the City of Fort Collins deals with the taxation of retail sales and use. A major revision of the Chapter has been completed. The revision was initiated due to the passage of House Bill 1007 by the State Legislature in 1985 concerning sales tax simplification and the need for improving the Code with regard to ' collection and enforcement. In revising Chapter 104, staff incorporated not only the requirements from H.B. 1007 but also various provisions from other city codes and new provisions which are aimed at improving the Code. The revisions have been reviewed and approved by the Finance Committee of the City Council. No new taxes have been included in this revision. In addition to the revision of Chapter 104 which was previously approved on First Reading, staff is recommending an amendment in line with an even more recent State statute. This amendment would provide for an additional penalty of $500 for improper registration of a motor vehicle. Adoption of the Consent Calendar will accomplish the requested amendments. This Ordinance was unanimously adopted on First Reading on August 19. The purpose of the R-F, Foothills Residential Zoning District, is to allow the development of private properties along the western edge of , the City of Fort Collins to occur within the city limits, but restrict residential densities to those deemed appropriate given the fringe -63- September 2, 1986 ' locational nature of the properties and the area's environmental concerns. The R-F zone would be applied to properties within the 'Foothills Area' at the time of annexation limiting development to one unit per 2.29 acres, but allowing a cluster development option which could increase density to one unit per acre. 14. ' 15. 16. 17. Staff recommends this Ordinance be tabled to October 7. The Second Reading would then coincide with the Second Readings of Ordinance Nos. 124 and 125, 1986, amending the R-E zone and establishing a "rural" street standard for the R-F and R-E zones which were tabled to October 7 at the August 19 meeting. Adoption of the Consent Calendar will accomplish the requested tabling. The owners of Lots 4 and 4A of Riverside Commercial P.U.D. are requesting the vacation of an existing utility easement located between said lots. The owners plan to build an office building, occupying both lots. The utility easement is only for access to Lots 4 and 4A. Al utilities have been contacted and have no problems with the vacation. The owners of Spring Creek Professional Park are requesting the vacation of all easements of record on the first replat of Spring Creek Manor, P.U.D. This area was replatted and approved by the Planning and Zoning Board on April 28, 1986 as Spring Creek Professional Park. All utilities have been contacted and indicate no problems with the vacation. The Employee Development Department requests the appropriation of $12,845 in unanticipated revenue from the registration fees for conference and seminar attendees. Council approval is required for sole source purchases exceeding $20,000. Staff is requesting a sole source purchase from Insituform Plains, Inc. to reline approximately 275 lineal feet of sanitary -64- September 2, 1986 18. 19. 20. 21. sewer line and restoration of ten service connections at a total cost of $25,986.75. Research has proven the lining process utilized by this firm to be a more economical and faster method of sanitary sewer line rehabilitation than the conventional excavation/replacement methods. The sole source is requested after last year's attempt to bid the requirements resulted in one bid being received from Insituforms Plains, Inc. The proposed resolution will authorize an addendum to the Intergovernmental Agreement with the Fort Collins -Loveland Water District and the South Fort Collins Sanitation District which will alter the existing service area boundaries and establish a policy to address District standby taps located in the City's Service area. The overhead power line south and west of 200 Hickory Street was originally installed on property owned by the Union Pacific Railroad Company (UPRRCO). Ownership of this property has since transferred to Union Pacific Land Resources Corporation (URLRC). The UPRRCO ' agreement which covered the installation and maintenance of the line expired in June, 1986. UPLRC has now submitted a license agreement for Council's approval. The five year agreement requires a consideration of $250. A map is attached for reference. The Utility will underground portions of this line as part of the overhead conversions program some time after 1987. A new agreement will be required for the underground installation. The District is located on Horsetooth Road from the Colorado and Southern Railroad to Shields Street. Improvements include streets, curbs and gutters, water and sewer lines, and storm drainage improvements. A vacancy currently exists on the Downtown Development Authority due to the resignation of Danial Larsen. The individual Council liaison conducted interviews with the applicants. In keeping with Council's policy, the recommendation for this I appointment was announced on August 19. The appointment was tabled to September 2 to allow additional time for public input. The prospective appointee is Lucia Liley. -65- September 2, 1986 1 22. Industries. This item was tabled by the City Council at its July 1, 1986 meeting to the September 2, 1986 meeting. Staff has reviewed the item and recommends that this item be withdrawn. It is anticipated that this item would be considered by Council as part of more fully developed City policies and a work plan for economic development. Staff is preparing the necessary policies and plan based on the Economic Opportunities Plan and the public comments received at the public forum. It is anticipated that this item will be scheduled for Council consideration in October. 23. Routine Deeds and Easements. A. An easement dedication has been received from Mountain Avenue Plaza Associates for a permanent easement for utilities and - drainage. The easement is being dedicated to provide an area for utility installation and drainage facilities to serve the property. The easement area will not be the responsibility of the City to maintain. ' B. H. F. Lind, Kenneth Lind, and W. H. Allen, as the last Board of Directors for Ashlind Feeders Inc., quit claimed to the City of Fort Collins 0.4726 acres of right-of-way for County Road 52 between County Road 9 and Busch Drive. The compensation for this right-of-way is $3,072.90 ($6500 per acre). This right-of-way is required for the construction of the A-B Perimeter Roads in accordance with the Master Agreement. Ordinances on Second Reading were read by title by Wanda Krajicek, City Clerk. Item #4. A. Q C. Land. Q na September 2, 1986 Item #5. A. 4M Item #6. Item #7. Item #8. Item #9. Item #10. Item #11. Item #12. Item #13. Ordinances on First Reading were read by title by Wanda Krajicek, City Clerk. Item #14. -67- September 2, 1986 Item #15. Item #16. Councilmember Rutstein made a motion, seconded by Councilmember Estrada, to adopt and approve all items not removed from the Consent Calendar. Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Liebler, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Items Related to the City's Fiscal Year 1986-87 Community Development Block Grant Program Following is staff's memorandum on this item: "Executive Summary A. Public Hearing and Resolution 86-147 Adding Projects to the Fiscal Year 1986-87 Community Development Block Grant Program. Hearing and First Reading of Ordinance No. 129, 1986, Appropriating $116,000 of Additional Community Development Block Grant Entitlement Funds. The resolution will establish additional projects to be funded with Community Development Block Grant funds from the United States Department of Housing and Urban Development for the FY 1986-87 Program year which begins on October 1, 1986. The additional $116,000 of funds will be added to the $892,286.70 previously approved by the City Council. The Community Development Block Grant Steering Committee has reviewed and approves of the staff's recommendation for the use of the additional funds. The ordinance appropriates $116,000 of additional funds from the City's FY 1986-87 Entitlement Grant. Background The CDBG Program is an ongoing grant administration program funded by the Department of Housing and Urban Development. The City. of Fort Collins has received CDBG Program funds since 1975. In-,1975 and FY. 1976-77 the City received HUD discretionary grants. Since FY 1977-78, the City has been an Entitlement Recipient of CDBG funds, meaning the City is guaranteed a certain level of funding each year. The level of funding is dependent on the total amount of funds allocated to the program by Congress and on a formula developed by HUD, which includes data on total population, minority percentage of population, income levels, housing stock conditions, etc. Q�?D September 2, 1986 , Community Development Block Grants can fund a wide range of activities ' including, acquiring deteriorated and/or inappropriately developed real property (including property for the purpose of building new housing) and acquiring, constructing, rehabilitating or installing publicly owned facilities and improvements. CDBG funds can also be used for restoration of historic sites, beautification of urban land, conservation of open spaces and preservation of natural resources and scenic areas. Housing rehabilitation can be funded if it benefits low- and moderate -income people. Economic development activities are eligible expenditures if they stimulate private investment or community revitalization and expand economic opportunities for low- and moderate -income people and the handicapped. Certain activities are ineligible, under most circumstances, for CDBG funds including, purchase of equipment, operating and maintenance expenses, including repair expenses and salaries, general government expenses, political activities, and new housing construction. Since its inception in 1975, the City's CDBG Program has focused on programs of housing rehabilitation and neighborhood revitalization. Three neighborhood strategy areas have been identified as in need of special assistance and attention. These neighborhoods are the Holy Family area, B.A.V.A. (Buckingham, Alta Vista, and Andersonville), and Laurel School ' neighborhoods. Earlier this year, the City was notified that its Entitlement Grant for FY 1986-87 would be $566,000. The initial Entitlement Grant of $566,000 was combined with $48,567.70 of existing CDBG Program Income, $54,000 of anticipated Program Income, and $223,719 of existing CDBG Program Contingency, to make a total of $892,286.70 which was allocated to a series of projects by the City Council on June 17, 1986. In mid -July, the City was advised that an additional $116,000 of Entitlement Grant funds would be available for use in FY 1986-87. When notified of the additional Entitlement funds, staff decided not to proceed with another elaborate application, review, and selection process for allocation of the funds. Staff reviewed the CDBG Policies Plan and formulated a recommendation of fund expenditures to the Community Development Block Grant Citizens Steering Committee. Having received Steering Committee support for the recommendation, staff is forwarding the recommendation to the City Council for formal approval. M 1 September 2, 1986 Recommendation: AMOUNT PROJECT $ 30,000 Westside Neighborhood Plan Due to the recent completion of the Eastside Neighborhood Plan and the soon to be started Central Business District Plan, staff feels there is a strong need to do a neighborhood plan for the residential neighborhood west of downtown (including the Holy Family Neighborhood Strategy Area). The CDBG Policies Plan indicates that neighborhood plans should be completed for all three CDBG Neighborhood Strategy Areas. 66,000 Downtown Housing Rehabilitation With the recent redevelopment efforts in the downtown and the concerns expressed to the City Council during the allocation of CDBG funds in June, there obviously is a need to supply low and moderate income housing in the downtown area, particularly of emergency shelter and single room occupancy. The CDBG Policies Plan indicates a high priority for housing and housing rehabilitation projects. 20,000 Contingency Funds Funds presently allocated for contingency in the FY 1986-87 CDBG Program are highly dependent on anticipated program income. Staff feels additional funds are warranted for the contingency line item. $116,000 Total After the funding allocations are approved by the City Council, the staff will advertise for specific proposals within each category. Applications will be reviewed by the staff and by the CDBG Citizens Steering Committee for selection of funding recipients." Chief Planner Ken Waido explained the increased funding being received at this time and the proposal for allocation of those funds. Councilmember Rutstein suggested staff look into setting up a program to receive matching funds from developers who eliminate housing in the downtown area. Councilmember Liebler endorsed the proposal, stating this was a good step toward addressing Council's housing goal. Councilmember Liebler made a motion, seconded by Councilmember Kirkpatrick, to adopt Resolution 86-147. -70- September 2, 1986 Councilmember Kirkpatrick stated she supported the Resolution, but would like some feedback on what kinds of proposals are received. Councilmember Estrada stated he also supported the Resolution, and supported Councilmember Rutstein's suggestion for receiving funds from developers. The vote on Councilmember Liebler's motion to adopt Resolution 86-147 was as follows: Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Liebler, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Councilmember Rutstein made a motion, seconded by Councilmember Liebler, to adopt Ordinance No. 129, 1986 on First Reading. Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Liebler, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Items Relating to South Lemay Special Improvement District No. 86 Special Assessment Bonds and Notes Following is staff's memorandum on this item: "Executive Summary A. Hearing and First Reading of Ordinance No. 130, 1986, Authorizing the - Issuance of City of Fort Collins, Colorado, South Lemay Special Improvement District No. 86, Special Assessment Bonds in the Aggregate Principal Amount of $2,530,000; Prescribing the Form of the Bonds; and Providing for the Payment of the Bonds and the Interest Thereon. Hearing and First Reading of Ordinance No. 131, 1986, Authorizing the Issuance of City. of Fort Collins, Colorado, Street Oversizing Fund Revenue Notes, Dated October 1, 1986, in the Aggregate Principal Amount of $400,000; Prescribing the Form of the Notes; and Providing for the Payment of the Notes and the Interest Thereon. Background South Lemay Special Improvement District No. 86 was created pursuant to Ordinance No. 6, 1986, on February 4, 1986. The District 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 1.86 miles. The improvements consist of the acquisition, installation, and construction of street, curb, gutter and sidewalk, street -lighting, landscaped medians and streetscaping, water, sanitary sewer; bridge and storm drainage improvements. 11 71-. September 2, 1986 Total estimated costs for the construction of the project are $2,772,340, and will be derived from the following sources: City Costs $ 759,095 (includes o Storm Drainage $300,000 o Street Oversizing $459,095) Fort Collins/Loveland Water District $ 319,941 (construction of a 20 inch waterline) SID No. 86 District Construction Costs $ 1,693,304 SID No. 86 construction costs will be financed with the Special Assessment Bonds. In addition to the construction costs, it is estimated that $836,696 will be financed for capitalized interest, legal fees, advertising and other incidental costs. This brings the total amount to be financed for the SID costs to $2,530,000. This amount will be authorized by the Bond Ordinance. The estimated amount of City oversizing for street improvements in the District is $1,083,947. Oversizing costs are normally paid out of the City's Street Oversizing Fund. However, the developers have agreed to ' include $624,852 of the City street oversizing costs in the SID's construction costs, to be financed with the bonds. In return, pursuant to the Master Agreement executed between the City and the property owners on March 18, 1986, the City authorized the issuance of Street Oversizing Notes in the amount of $400,000 to the property owners and Street Oversizing credits in the amount of $224,852. The remaining amount of City oversizing for street improvements ($459,095) will not be assessed in the district, and was appropriated from Street Oversizing pursuant to Ordinance No. 7, 1986, on February 4, 1986. The Street Oversizing Revenue Notes are being issued by the City to the developers in an aggregate principal amount of $400,000. The City will begin paying back the notes at the same average interest rate as the Special Improvement District No. 86 Bonds, three years following the issuance of the Notes. No interest will accrue on the notes until October 1, 1989. Staff has negotiated repayment of the Notes over a ten year period. The payment due each year is tied to the amount of Street Oversizing fees and charges which have been paid on property within the District in the preceeding year. The Special Improvement District No. 86 Special Assessment Bonds will be purchased initially by First Interstate Bank of Denver, with a public offering to follow the closing. The interest amounts have not been inserted in the bond ordinance for first reading. The Ordinance will need to be amended at second reading to allow the insertion of the rates. Since ' the interest rate on the Street Oversizing Notes is tied to the average interest rate set on the SID Bonds, it will also be necessary to amend the Note Ordinance on second reading to insert the interest rate." -72- September 2, 1986 6 Financial Policy Analyst Pam Currey stated that the developer's attorney, ' Lucia Liley, and other developer representatives were available to answer questions. Councilmember Kirkpatrick made a motion, seconded by Councilmember Stoner, to adopt Ordinance No. 130, 1986 on First Reading. Lucia Liley, attorney representing the developer, answered questions about Fossil Creek Meadows' non -participation in the district. The vote on Councilmember Kirkpatrick's motion to adopt Ordinance No. 130, 1986 on First Reading was as follows: Yeas: Councilmembers Estrada, Kirkpatrick, Liebler, Ohlson, Rutstein, and Stoner. Nays: None. Abstain: Councilmember Horak. THE MOTION CARRIED. Councilmember Stoner made a motion, seconded by Councilmember Estrada, to adopt Ordinance No. 131, 1986 on First Reading. Yeas: Councilmembers Estrada, Kirkpatrick, Liebler, Ohlson, Rutstein, and Stoner. Nays: None. Abstain: Councilmember Horak. THE MOTION CARRIED. Councilmembers' Reports I Councilmember Horak reported on the Council of Governments meeting held last week. He indicated he will be proposing that the COG hold a roundtable discussion on the railroad relocation issue. Councilmember Stoner invited everyone to attend the annual Air Show at the Fort Collins/Loveland Airport September 14th and 15th. Councilmember Rutstein reminded Council of the PRPA meeting.on September 29th and indicated a tour of Rawhide could be arranged for anyone interested. Mayor Ohlson reminded Council that the budget scoping questionnaire was due on Friday. (Secretary's Note: Item N34 and Item #35 were moved up on the agenda for discussion at this time.) Resolution 86-148 Making Appointments to the Zoning Board of Appeals. Tabled to September 16 Following is staff's memorandum on this item: ' -73- September 2, 1986 ' "Two vacancies currently exist on the Zoning Board of Appeals due to the resignation of Steve Dodder and Mark Leis. The Council liaison has reviewed the applications on file and conducted interviews. Recommendations for the prospective appointees will be announced at the September 2 Council meeting. In keeping with CounciI's policy, this Resolution will be tabled until September 16 to allow for public input." Councilmember Stoner made a motion, seconded by Councilmember Rutstein, to adopt Resolution 86-148, inserting the name of John Barnett as a regular member, and the names of Frank Lancaster and David Younger as alternate members. Councilmember Stoner made a motion, seconded by Councilmember Rutstein, tc table Resolution 86-148 to September 16. Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Liebler, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Resolution 86-149 Appointing the City's Representative on the Policy Committee of the Colorado Municipal League Adopted Following is staff's memorandum on this item: "As a member municipality of the Colorado Municipal League, the City is entitled to designate a representative to serve on the Policy Committee of the CML. The Policy Committee is responsible for reviewing legislative proposals and recommending to the League Executive Board positions of support, opposition, no position or amendment to a wide variety of legislation affecting cities and towns. The Policy Committee also proposes to the members at each annual conference in June revisions to the League policies which guide League positions on public policy issues affecting municipalities. The Resolution appoints the City's representative on the Policy Committee." Councilmember Liebler made a motion, seconded by Councilmember Rutstein, to adopt Resolution 86-149 inserting the name of Larry Estrada. Councilmember Horak noted the importance of this position, and the time commitment Councilmember Estrada is making. The vote on Councilmember Liebler's motion to adopt Resolution 86-149 was as follows: Yeas: Councilmembers HolAk, Kirkpatrick, Liebler, Ohlson, Rutstein, and Stoner. Nays: None. Abstain: Councilmember Estrada. I THE MOTION CARRIED. -74- September 2, 1986 Other Business Councilmember Horak stated he would like to see more information distributed regarding citizens' rights during loud parties. City Manager Burkett stated they would certainly add that to the information being distributed by the Police Department. Councilmember Horak questioned the legality of certain political signs around the community. City Attorney Huisjen stated the issue is currently being looked at. Mayor Ohlson requested staff investigate further the problem of people and traffic congregating in the downtown area on weekend evenings. Citizen Participation A. Proclamation Naming the Month of September as Adult Literacy Awareness Month was accepted by Sally Robinson, representing the Fort Collins Coalition for Literacy. Margaret Rodgers, Fort Collins Museum docent, spoke about the activities at ' the Museum and volunteer contributions to the Museum. Norman Munn, P.O. Box 1040, asked if the City could lay gravel or oil in front of the Neighbor -to -Neighbor meeting place in the Andersonville area. He also suggested the City assume maintenance of or acquire the cemetery on Harmony Road. Dave Anstett, 3731 Coronado Avenue, president of the Four Seasons Homeowners' Association, suggested Troutman Park be built in some stages, even though funds are not available to complete the park as planned. Public Hearings on the 1987 Recommended Budget and Proposed Uses for Revenue Sharing Funds in 1987 (Secretary's Note: A video tape highlighting the 1987 Budget was shown at this time.) City Manager Burkett read a statement highlighting his recommendations for the 1987 Budget. Acting Finance Director Alan Krcmarik reviewed the proposed expenditures for Revenue Sharing funds and answered questions about the 1987 Budget and Revenue Sharing funds. The following persons spoke regarding the 1987 Recommended'Tudget: SA611 September 2, 1986 1 1. Norman Munn, highlighting area. P.O. Box 1040, suggested that the video tape the Budget be shown in shopping malls in the 2. Margaret Rodgers, Museum docent, suggested that budget cuts be 5% across the board, including the Museum. If that is not possible, she requested the Museum's budget cut be reduced from $20,000 to $10,000. 3. Don Hornberger, 1701 Dale Court, commented on the proposed distribution of available funds. He suggested funds would be better spent on libraries and streets rather than golf courses and tennis courts. 4. Bruce Lockhart, 2500 East Harmony Road, commented on the good turnout for the budget hearing. He pointed out that the pool/ice rink has a balloon payment due in 1990 and urged that the sales tax not be extended to cover a possible shortfall in 1990. He stated the shift of street lighting funds from the General Fund to the Utilities Fund was basically equivalent to a 1/10 cent sales tax increase. Mr. Lockhart also addressed the size of the City's vehicle fleet in 1987. Councilmember Horak suggested the boards and commissions review the budget and give feedback to Council. He complimented the City Manager on the 1987 Recommended Budget. Councilmember Estrada also complimented the City Manager on the different approach used to prepare the Budget. Mayor Ohlson thanked the citizens for appearing at the first Budget hearing. He commended staff for the work done on the Budget in a short period of time. City Manager Burkett responded to Mrs. Rodgers' comment about a 5% across the board budget reduction. He addressed Mr. Lockhart's comment about the shortfall for the pool/ice rink. Mayor Ohlson declared the first public hearing on the 1987 Recommended Budget and Proposed Uses for Revenue Sharing Funds closed. -76- September 2, 1986 Ordinance No. 134, 1986, Calling a Special ' Election for November 4, 1986 and Referring an Ordinance Authorizing the City to Enter into an Agreement with the Fort Collins Downtown Development Authority and R.P. Plaza, Ltd., a Colorado Limited Partnership, for the Construction of Certain Public Improvements. Adopted on First Reading Following is staff's memorandum on this item: "Executive Summary This Ordinance would call a Special City Election to be held in conjunction with the General Election scheduled for November 4, 1986, for the purpose of referring Ordinance No. 113, 1986, which the Council adopted on Second Reading on August 19. Background This week the City Clerk approved the form of a petition that protests the going into effect of Ordinance 113, 1986. This approval allowed the circulators to begin their circulating efforts. The petition would require the signatures of at least 733 registered electors to be declared ' sufficient. If the petition effort were to succeed and was submitted after the September 4 deadline to certify the ballot content to the County Clerk and Recorder, and Council did not repeal the Ordinance as requested, there would no longer be an opportunity to place the issue on the November 4 ballot. If Council were to call a Special Election, it would most likely occur in December and would cost approximately $25,000. Funds are not currently budgeted or available in the City Clerk's Election budget. There is an opportunity to place the issue on the November 4 ballot provided the September 4 deadline to notify the County Clerk and Recorder is met. The City Clerk has obtained permission from the County Clerk to place the issue on that ballot. The cost savings to the City by utilizing the November 4 ballot over scheduling a Special City Election for a single issue would be approximately $20;000." City Manager Burkett outlined the reasons for taking action to place this item on the November 4 ballot. Councilmember Stoner made a motion, seconded by Councilmember Liebler, to adopt Ordinance No. 134, 1986 on First Reading. ' Councilmember Stoner stated this was an opportunity .to save •the City $20,000. WA September 2, 1986 Councilmember Horak stated he thought it made sense to place this on the November 4 ballot because it would save the City money and because there will be a bigger turnout at the General Election. Councilmember Liebler stated that placing this item on the November 4 ballot would not only benefit by a bigger turnout, but would give a truer reading of the wishes of the community. Councilmember Kirkpatrick pointed out that placing this on the November ballot was not indicative of a change in Council's position on the issue. The vote on Councilmember Stoner's motion to adopt Ordinance No. 134, 1986 on First Reading was as follows: Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Liebler, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. ' Items Relating to the Issuance of Industrial Development Revenue Bonds for Refunding of City of Fort Collins, Colorado, Industrial Development Revenue Bonds, Series 1986 (Old Town Associates Projects I and II) Following is staff's memorandum on this item: "Executive Summary A. Hearing and First Reading of Ordinance No. 132, 1986, Authorizing the Issuance of Industrial Development Revenue Refunding Bonds for Refunding City of Fort Collins, Colorado, Industrial Development Revenue Bonds, Series 1986 (Old Town Associates Project I), in the Principal Amount of $7,000,000. Hearing and First Reading of Ordinance No. 133, 1986, Authorizing the Issuance of Industrial Development Revenue Refunding Bonds for Refunding City of Fort Collins, Colorado, Industrial Development Revenue Bonds, Series 1986 (Old Town Associates Project II), in the Principal Amount of $6,915,000. These Ordinances will allow the Old Town Partnership to refinance the 1983 Series Bonds in order to capture lower interest rates. The bonds are being issued for refunding purposes only. No "new" money is included in the bonds and no request for allocation has been r6ade,to the State. Background In 1983, the City of Fort Collins authorized the issuance of Industrial ' Development Revenue Bonds for the Old Town Projects I & II in the total principal amount of $14,125,000 for the purpose of financing a project consisting of the acquisition, construction and equipment of a parcel of WIN September 2, 1986 land, buildings and other improvements. and is located in downtown Fort Collins. The project is known as Old Town On November 19, 1985, City Council passed Resolutions 85-220 and 85-221. These Resolutions set forth the intention of the City to issue Industrial Development Revenue Bonds (IORB's) for refunding the Old Town Projects I & II IDRB's. The City's commitment under these resolutions is for 36 months. The 1983 bonds are subject to redemption prior to maturity under the terms of the Indenture Agreement on December 1, 1986. With the lower interest rates available today, the Partnership wishes to exercise this right by refunding the 1983 bonds and issuing the 1986 bonds at a lower net effective interest rate. The 1983 bonds are being administered by United Bank of Fort Collins as trustee for the City pursuant to an Indenture of Trust dated December 22, 1983. On August 5, 1986, City Council adopted resolutions authorizing the amendment of the Indenture of Trust on Old Town Projects I & II in order to facilitate the refunding process. The 1986 refunding bonds will be administered in the same manner as the 1983 bonds, with United Bank acting as trustee on behalf of the City and with a surety bond on the projects provided by Continental Casualty Company. The bond holders continue to be as fully protected against adverse effects as they were under the provisions of the 1983 bonds, due to the delivery of a substitute surety bond. The City will not incur any additional liability as a result of the issuance of the 1986 bonds. Dean Witter Reynolds has committed to purchase the bonds upon issuance by the City of the bonds. Due to the high volume of tax exempt bonds in the market at this time, the Partnership has requested that the pricing of the bonds be done in connection with the second reading of the ordinance. As a result, the interest rates will need to be inserted by amending the bond ordinance on second reading." Financial Policy Analyst Pam Currey explained the reasons for refunding these bonds, and answered questions from Council. Councilmember Rutstein made a motion, seconded by Councilmember Estrada, to adopt Ordinance No. 132, 1986 on First Reading. Bruce Lockhart, 2500 East Harmony Road, questioned the reasons for refunding or refinancing IDRB's. He suggested refunding bonds benefit the developer only. Don Hornberger, 1701 Dale Court, stated he felt the existing structures should be fully utilized before new development occurs. Councilmember Estrada stated he felt it important to induce development downtown with the best interests of the City at stake. 79- September 2, 1986 ' Councilmember Rutstein pointed out that this type of refinancing does not cost the City any money, but may help the project prosper. Councilmember Horak stated he did not feel it was wrong to help the project's cash flow. He stated the purpose behind this project and others is to draw people to the north end of town. The vote on Councilmember Rutstein's motion to adopt Ordinance No. 132, 1986 on First Reading was as follows: Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Liebler, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Councilmember Estrada made a motion, seconded by Councilmember Rutstein, to adopt Ordinance No. 133, 1986 on First Reading. Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Liebler, Ohlson, Rutstein, and Stoner. Nays: None. THE MOTION CARRIED. Adjournment Councilmember Rutstein made a motion, seconded by Councilmember Estrada, to adjourn the meeting. Yeas: Councilmembers Estrada, Horak, Kirkpatrick, Liebler, Ohlson, Rutstein, and Stoner. Nays: None. The meeting adjourned at 9:15 p.m. 1 1 , , 4, Au 11� Mayor44..A� -80-