Loading...
HomeMy WebLinkAboutMINUTES-01/19/1982-RegularJanuary 19, 1982 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, January 19, 1982, at 5:30 p.m. in the Council Chambers in the City of Fort Collins City Hall. Roll call was answered by the following Councilmembers: Cassell, Clarke, Elliott, Horak, Knezovich, Reeves and Wilmarth. Absent: None Staff Members Present: Denton, Krajicek, Lewis, Wood, Waido, P. Allen. Agenda Review: City Manager Assistant City Manager Verna Lewis noted that staff is suggesting Item # 23, Resolutions Expressing the Intent and Agreement of the City To Provide Water and Sanitary Sewer Uti itv Services to the Area Lvino Within Bot Councilmember Horak requested Item # 16, Consider 1981 Annual Report for the Liquor Licensing Authority, be withdrawn from the Consent Agenda. Mayor Wilmarth asked that Items #14, Resolution Making Appointments to the Governing Board of the Poudre Fire Authority, and Item # 15, Resolution --Awarding Contract for Street Construction for the South Mason Street Utility Improvement District No. 75, be removed from the Consent Aqenda. 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. ' 4. Consider approval of the minutes of the adjourned meeting of December 22, 1981 and the regular meeting of January 5, 1982. -23- January 19, 1982 5. Second Reading of Ordinance No. 1, 1982, Appropriating Unanticipated Revenue in the Larimer County Library Services Fun . This ordinance was unanimously adopted on First Reading on January 5. In 1982, two library programs will be funded with monies from Larimer County. The City will receive $50,000 to provide Library Bookmobile service to residents of Larimer County and $17,260 to provide library services for correctional facility inmates of Larimer County. This ordinance appropriates the total $67,260 to be received from Larimer County in 1982 in the Larimer County Library Services Fund. 6. Second Reading of Ordinance No. 3, 1982, Appropriating Bond Proceeds in the Capital Projects Fund. This ordinance was unanimously adopted on First Reading on January 5. This Ordinance appropriates General Obligation Bond proceeds in the Capital Projects Fund as follows: $48,000_.for. water and sewer permit_ fee costs at Edora and Rolland Moore Parks and $46,450 for community park acquisition. 7. Second Reading of Ordinance No. 5, 1982, Setting the Salary of the City Manager. This ordinance was unanimously adopted on First Reading on January 5 and sets the salary of City Manager John Arnold at $56,000 per year. 8. Second Reading of Ordinance No. 6, 1982 Municioa Ju ae. This ordinance was unanimously adopted on First Reading on January 5 and sets the salary of Municipal Judge John Tobin at $38,500 per year. 9. Second Reading of Ordinance No. 7, 1982, Setting the Salary (if the This ordinance was unanimously adopted on First Reading on January 5 and sets the salary of new City Attorney John Huisjen at $36,000 per year. The new salary rate will take effect.on February 1, 1982, when Mr. Huisjen takes office. I -24- January 19, 1982 10. Hearing and First Reading of Ordinance No. 4, 1982, Designating 622 Remington as an Historic Landmark. The City of Fort Collins Grants Administration office has rehabili- tated the C. M. Smith House at 622 Remington with Community Develop- ment Block Grant funds in accordance with the Historic Landmark Design Guidelines. The Cultural Resources Board recommended local historic designation last May and reaffirmed its recommendation on January 4, 1982. The owner, Mary Harnett, has consented to the designation. 11. Hearing and First Reading of Ordinance No. 10, 1982, Appropriating Unanticipated Revenues in the Capital Projects Fund. As CSURF owns land abutting the Drake Road and Shields Street inter- section project, they have agreed to pay their share of the construc- tion costs. Their share is calculated to be $17,547 of the total construction cost of $326,073.34. This Ordinance appropriates CSURF's contribution in the Capital Projects Fund. 12. Hearing and First Reading of Ordinance No. 11, 1982, Appropriating monies in the Seven Year Capital and Capital Projects Funds. This Ordinance appropriates the funds for construction of the North City Hall Parking Lot. The project will include full improvement, leaving the modular building in its current location, and providing 55 parking spaces for a total estimated cost of $155,000. Funds are available in the Seven Year Capital Fund prior year reserves for this purpose. 13. Hearing and First Reading of Ordinance No. 12, 1982, Vacating Various Utility and Access Easements in the Cimarron West PUD. The applicant is requesting the vacation of utility and access ease- ments as platted and dedicated on the Cimarron West PUD as approved by the Planning and Zoning Board on February 23, 1981. The applicant has submitted a revised site plan and plat to be considered by the Plan- ning and Zoning Board at their meeting on January 25, 1982. As re- quired, new easements will be dedicated. The City staff and affected utilities have reviewed this vacation request and proposed dedications ' and recommend approval. -25- 14. Resolution Making Appointments to the Governi January 19, 1982 Board of the Poudre This Resolution formalizes action taken by Council on January 5th to appoint Peggy Reeves for a term to run until December 31, 1982, and Bill Elliott for a term to run until December 31, 1983, as the City's representatives to the governing board of the Poudre Fire Authority. 15. Resolution Awarding Contract for Street Construction for the South Mason Street Utility Improvement District No. 75. This Resolution awards the contract for street construction for South Mason Street Utility Improvement District No. 75 to Don Kehn Con- struction Company, the low bidder, for $68,858.01. 16. Consider 1981 Annual Report for the Liquor Licensing Authority. As required by the City, the Liquor Licensing Authority has prepared its Annual Report for 1981. This report shows the number of applica- tions for licenses acted upon, the number of licenses granted and denied, and all other actions the Board has taken during, the year. Ordinances on Second Reading were read by title by Wanda Krajicek, City Clerk. Item # 5. Second Reading of Ordinance No. 1, 1982, Appropriating Unan- ticipated Revenue in the Larimer County Library Services Fund. Item # 6. Second Reading of Ordinance No. 3, 1982, Appropriating Bond r.nrob�in tho-7`am .,T Grniaric Piro Item # 7. Second Reading of Ordinance No. 5, 1982, Setting the Salary of the City Manager. Item # 8. Second Reading of Ordinance No. 6, 1982, Setting the Salary of the Municipal Judge. Item # 9. Second Reading of Ordinance No. 7, 1982, Setting the Salary of t e CIty Attornev. Ordinances on First Reading were read by title by Wanda Krajicek, City Clerk. Item #10. Hearing and First Reading of Ordinance No. 4, 1982, Designating 22 Remington as an Historic Landmark. -26- 1 January 19, 1982 Item #11. Hearing and First Reading of Ordinance No. 10, 1982, Appro- priating Unanticipated Revenues in the Capital Projects Fund. Item #12. Hearing and First Reading of Ordinance No. 11, 1982, Appro- priating monies in the Seven Year Capital and Capital Projects Funds. Item #13. Hearing and First Reading of Ordinance No. 12, 1982, Vacating Various Utility an Access Easements in the Cimarron West Councilmember Reeves made a motion, seconded by Councilmember Cassell, to adopt and approve all items not removed from the Consent Calendar. Yeas: Councilmembers Cassell, Clarke, Elliott, Horak, Knezovich, Reeves and Wilmarth. Nays: None. THE MOTION CARRIED. I Resolution Making Appointments to the Governing Board of the Poudre Fire Authority, Adopted as Amended Following is the City Manager's memorandum on this item: "On December 15th, Council adopted a Resolution approving an intergovern- mental agreement with the Poudre Valley Fire Protection District creating the Poudre Fire Authority. That agreement provides for the appointment of two representatives to the governing board of the Authority to represent the City, with terms to run at the discretion of the Council. The Fire District will also appoint two representatives, and under the terms of the agreement, these four members will then select a fifth boardmember. The attached Resolution formalizes action taken by Council on January 5th to appoint Peggy Reeves for a term to run until December 31, 1982, and Bill Elliott for a term to run until December 31, 1983, as the City's representatives to the governing board of the Poudre Fire Authority." Mayor Wilmarth recommended that the terms not be for any specific time period and noted that staff had prepared a substitute Resolution with that provision. Councilmember Cassell made a motion, seconded by Councilmember Clarke, to adopt the substitute Resolution providing that the terms not be for a ' specific time period. Yeas: Councilmembers Cassell, Clarke, Elliott, Horak, Knezovich, Reeves and Wilmarth. Nays: None. -27- January 19, 1982 THE MOTION CARRIED. Resolution Awarding Contract for Street Construction for the South Mason Street Utility Improvement District No. 75, Adopted Following is the City Manager's memorandum on this item: "The South Mason Street and Utility Improvement District No. 75 was created by Ordinance No. 86, 1981 at the request of the property owners. All project costs are assessible to them and there will be no City costs except for $3,840 for street oversizing. Since Don Kehn Construction Company has never been a City street contractor nor had an asphalt plant in operation before, the City Engineering Services staff held a special meeting with Mr. Kehn on December 23 to discuss these concerns. Specific questions included the complete details on the major equipment to be used,. names and qualifications of the personnel to operate the plant and the equipment, references, list of major subcontractors, materials and how the materials will be certified to comply with the specifications, and the ability of the company to complete the project within the time and budget allocated. The meeting resulted in the opinion that there was not sufficient justification to deny the award of the low bid to Don Kehn Construction Company. The complete list of bids were as follows: (1) Don Kehn Construction Company (Fort Collins) $ 68,858.01 (2) Best -Way Paving Company (Greeley) $ 69,946.70 (3) Flatiron Paving Company (Fort Collins) $ 70,314.34 (4) Sterling Paving Company (Fort Collins) $ 74,075.25 (5) CG&S (Greeley) $102,516.45 (6) Kiefer Concrete, Inc. (Fort Collins) $187,771.50" Mayor Wilmarth withdrew from participation on this item because the ap- parent low bidder, Don Kehn Construction, was a client of his firm. Councilmember Knezovich asked if there would be a performance bond on this project and an evaluation after the project is completed. Purchasing Agent James O'Neill replied that there would be both and that the evaluation would be shared with the Don Kehn Construction Company. Councilmember Reeves made a motion, seconded by Councilmember Clarke, to adopt the Resolution awarding the bid to Don Kehn Construction Company. Yeas: Councilmembers Cassell, Clarke, Elliott, Horak, Knezovich and Reeves. Nays: None (Wilmarth withdrawn). am January 19, 1982 THE MOTION CARRIED. 1981 Annual Report for the Liquor Licensing Authority, Accepted Following is the City Manager's memorandum on this item: "As required by the City Code, the Liquor Licensing Authority has prepared its Annual Report for 1981. This report shows the number of applications for licenses acted upon, the number of licenses granted and denied, and all other actions the Board has taken during the year." Councilmember Horak noted that he felt the Liquor Licensing Authority deserved recognition for the amount of work done and number of meetings held during 1981. Councilmember Clarke made a motion,_ seconded by Councilmember Elliott, to accept the Annual Report of the Liquor Licensing Authority for 1981. Yeas: Councilmembers Cassell, Clarke, Elliott, Horak, Knezovich, Reeves and Wilmarth. Nays: None. THE MOTION CARRIED. Ordinance AdopteQ on First Reading Approving Lease/ Purchase of KL Eouioment Information System Following is the City Manager's memorandum on this item: "The need for accurate and current equipment maintenance information was recognized over a year ago. Our. present vehicle maintenance information system is inadequate. We presently pay approximately $19,000 per year to Mainstem, Inc. Mainstem is a service bureau located in New Jersey. The reports that we receive are usually 30 to 60 days late, and thus our billing and information to the departments are not as useful as they could be. In addition, the reports are difficult to use and the information is not supplied in the format that is easily readable. In the beginning of 1980, staff solicited proposals from different software vendors. Our intention was to replace our Mainstem system with an in-house ' computerized vehicle maintenance fleet management system. The system proposed by K-Square Systems, Inc. will provide the best system for our -29- January 19, 1982 ' needs at the best price. The other alternatives that were investigated included the transfer of other systems from other. cities or companies to the City of Fort Collins, or writing our own in-house program. The staff has investigated K-Square quite thoroughly; including visits to other sites where the system has been installed. The system is competent and reliable. Council approval is needed to purchase this system because it was not bid and is over $20,000 and includes using lease/purchase financing. After our last large equipment lease/purchase package the bidders involved advised the City to handle future lease/purchase packages similar to bond sales. This requires the lease/purchase bid to be opened as near to the Council meeting where approval will be sought as possible. This should allow the City to get a more competitive lease/purchase rate. Staff feels our purchase rate will be between 65 and 75% of prime. With prime around 15.75% we should receive a rate between 10.24 and 11.8%. This lease/purchase is budgeted. The rate will be provided for the Council to fill in at the meeting Tuesday, January 19, 1982." Purchasing Agent James O'Neill noted that. an interest rate of 12.7% had. '.. been received from First Interstate Bank. He added that those two pieces of information would need to be inserted into the Ordinance. General Services Director Tom Frazier explained the advantages associated with this new system. He noted the system had the capability to handle the City's fleet if it grows 10 times over present numbers. Councilmember Reeves made a motion, seconded by Councilmember Cassell, to adopt Ordinance No. 9, 1982, on First Reading inserting the name of First Interstate Bank and a 12.7% interest rate in the appropriate places. Yeas: Councilmembers Cassell, Clarke, Elliott, Horak, Knezovich, Reeves and Wilmarth. Nays: None. THE MOTION CARRIED. Ordinance Adopted on Second Reading Authorizing the Transfer of Appropriated Amounts from the Street Oversizing Fund to the Capital Projects Fund Following is the City Manager's memorandum on this item: "This ordinance was adopted on First Reading on January 5 by a 5-1 vote I (Councilmember Cassell withdrawn). -30- January 19, 1982 When the Street Oversizing Fund was established, it included a 14.6% factor for traffic engineering and construction expense to be used for traffic signal installation associated with new growth. Three traffic signal projects were identified and approved as projects which have resulted from growth and new development and should be funded through street over - sizing monies. The three locations warranting traffic signals are the intersections of Drake Road/Taft Hill Road, Horsetooth Road/J.F.K. Parkway, and Horsetooth Road/Mason Street. These locations are being heavily impacted by current development and/or development which is planned for the immediate future. The total cost of all 3 projects is $84,500. This Ordinance will allow the transfer of funds for these 3 projects from the Street Oversizing Fund to the Capital Projects Fund." Councilmember Cassell withdrew from discussion or voting on this item. Councilmember Knezovich asked if the model figure for street signalization was still a valid figure in the street oversizing model. Transportation Services Director Bob Lee noted that signalization, signing, etc., had been reviewed as part of the cost of development and the figure was still valid. Councilmember Reeves made a motion, seconded by Councilmember Elliott, to adopt Ordinance No. 2, 1982, on Second Reading. Yeas: Councilmembers Clarke, Elliott, Horak, Reeves and Wilmarth. Nays: Councilmember Knezovich (Cassell withdrawn). THE MOTION CARRIED. Ordinance Authorizing the Issuance of City of Fort Collins General Obligation Park Bonds Series 1982 in the Principal Aggregate Amount of $2,065,000, Adopted As Amended Following is the City Manager's memorandum on this item: "In April, 1981, the voters authorized the City to issue $5,065,000 of General Obligation Bonds for the purpose of financing community parks ' projects. During the summer of 1981 the City issued $3,000,000 of the authorization. -31- 1 January 19, 1982 This issue for the remainder of the authorization is needed at this time to finance construction contracts to be entered into early in 1982, primarily for Rolland Moore Park." Finance Director Ron Wood noted this bond sale was a negotiated sale rather than a competitive bid sale. This process was chosen because of the sharp swings of the market to allow the City to tie into an interest rate and close as soon as possible. With a competitive sale, the process would have been extended and the interest rate might have risen to a point outside the 12% maximum allowable rate. The 11,97% rate is within the guideline and is competitive in today's market. Acting City Attorney Denton noted several amendments should be inserted in the Ordinance. He then read the figures to be inserted on page four of the Ordinance under the existing columns. He added amendments to the last paragraph on page four and suggested the figure 11.974% be inserted on page six, the second sentence of the second paragraph of Section 3. Further, on page 13, the year "1996" be inserted in the first sentence of the seventh paragraph. 1 Councilmember Reeves made a motion, seconded by Councilmember•Knezovich, to adopt Ordinance No. 13, 1982, on First Reading making the insertions described by Acting City Attorney Denton. Yeas: Councilmembers Cassell, Clarke, Elliott, Horak, Knezovich, Reeves and Wilmarth. Nays: None. THE MOTION CARRIED. Resolution Appointing Councilmembers to a Task Force for the Evaluation Phase of the CHOICE Program, Adopted Following is the City Manager's memorandum on this item: "The attached Resolution appoints Councilmembers to serve on the Policy Advisory Task Force to participate in the evaluation process phase of the CHOICE program. Council needs to determine whether two or three represent- atives should be appointed. Over the last three to four years, the City has initiated a number of successful energy conservation programs for the City as a supplier of energy and for the City as a consumer of energy. In addition, the City can also assist community efforts to improve utili- zation of energy with the CHOICE program. -32- January 19, 1982 CHOICE, which stands for Community Held Options for Intelligent Choices in Energy, will involve the evaluation of —our community's energy situation and energy needs and opportunities, and the implementation of activi- ties to realize these opportunities and fulfill these needs. Staff is proposing that the evaluation part of the CHOICE program be initiated at this time to determine options for implementation, which will be presented to Council for direction at a later time. A group referred to as the Policy Advisory Task Force will play a vital role in this evaluation process. This group will be made up of the following individuals: 4 2-3 Councilmembers 0 Bill Bartran i Bob Everitt • John Arnold Curt Smith • Bill Carnahan The Councilmembers could help shape the development of this potentially significant activity by representing the perspective of the citizenry as a whole. Bill Bartran and Bob Everitt have both approached the City on community energy utilization matters providing a significant amount of impetous for this program. Additionally, they would represent the private business interests in the evaluation phase of this program. The City staff members will be able to contribute because of their positions within City government. Staff recommends limiting the membership of the Policy Advi- sory Task Force to this group of individuals in order to accomplish the evaluation portion of the program in a timely manner. The process being proposed will also allow for input from others." Special Projects Engineer Dennis Sumner noted the program related to conservation or energy related programs that would affect the community. Its activities would consist of an evaluation process which would look at the energy flows in the community and implementation of any solutions they might propose to achieve community goals. He added that he hoped the evaluation process would be completed by October and there would then be some specific recommendations for programs to be brought to Council for implementation. Councilmembers Horak, Cassell and Reeves expressed interest in serving on the Policy Advisory Task Force. Councilmember Cassell made a motion, seconded by Councilmember Elliott, ' to adopt the Resolution appointing Councilmembers Cassell, Horak and Reeves to the Policy Advisory Task Force. Yeas: Councilmembers Cassell, Clarke, Elliott, Horak, Knezovich, Reeves and Wilmarth. Nays: None. -33- January 19, 1982 THE MOTION CARRIED. Resolution Authorizing the City Manager to Enter into an Agreement to Purchase Three Condominium Units Located At 234 North Grant Street in the City of Fort Collins, Adopted as Amended Following is the City Manager's memorandum on this item: "On October 7, 1980, Council approved a private/public partnership project which involved the use of Community Development Block Grant (CDBG) funds. This project worked as follows: HUD gave permission to the City to immediately draw down $100,000 from the $225,300 allocated to Housing Rehabilitation, and to deposit the $100,000 in an interest -bearing account at Home Federal Savings and Loan Association. 2. The owner of the building, Dr. Stan Klemetson, was granted a rehabilitation loan by Home Federal in accordance with their customary loan procedures. 3. The proceeds of the rehabilitation loan were to be used to rehabilitate the building into six condominium units for sale to low- and moderate -income people for the permanent financing through the Colorado Housing Finance Authority. 4. The $100,000 CDBG deposit in Home Federal was to be held as collateral for the rehabilitation loan to Klemetson and released when the rehabilitation loan was converted to a permanent loan. 5. Interest earned on the $100,000 deposit was to be used for additional housing rehabilitation. (The present CDBG Funds held in the account at Home Federal total approximately $49,000 including interest, Home Federal having refunded portions of the account to the City upon closing of the first three condominiums.) Pursuant to this agreement, Dr. Klemetson began rehabilitation of the old Migrant Council building located at the corner of Maple and Grant Streets into six condominium units. In June, 1981, Dr. Klemetson realized he was short of construction funds. In order to complete the project, the City of Fort Collins loaned Dr. Klemetson $32,500 of CDBG Funds secured by a second deed of trust and promissory note. This loan was to be payable upon sale and closing of the last condominium unit, or December 31, 1981, whichever would first occur, including interest. This loan balance is presently approximately $35,000. -34- January 19, 1982 In the fall of 1981 the project was completed resulting in the conversion of a vacant dilapidated building to usable living units. An agent was secured to sell the condominium units. Three of the units were sold despite the extremely slow housing market. At this point the housing market has further slowed, making it impossible to sell the remaining units at a reasonable market price and, accordingly, Dr. Klemetson cannot repay either the construction loan or the second loan from the City. At this point we are faced with two options. The first option would be to proceed through a foreclosure of the property, either by commencement of foreclosure on our second deed of trust or by Home Federal commencing foreclosure on its first deed of trust. In the event of foreclosure, Home Federal has advised that it would use the approximately $49,000 of CDBG funds currently held on account at Home Federal to aid in the retirement of the construction loan, and would bid the balance of approximately $47,000. In order for the City to fully recover both its CDBG funds and funds due to it under the second deed of trust, a City bid of approximately $84,000 would be necessary. Accordingly, for a full recovery, an independent investor would have to bid slightly more than the aggregate amount of the Home Federal and the City bid, i.e. in excess of approximately $131,000. Since the property has been listed on the open market for a price not much in excess of that, we doubt that any independent investor would make such a bid. This is particularly so in light of the fact that Home Federal is unwilling to make special financing available for the purchase of these condominiums at foreclosure. It is perhaps more realistic to anticipate that no one will bid at the foreclosure sale other than the creditors and that the City will obtain ownership of the property by outbidding Home Federal by as little as $1.00. Under such a scenario, the $49,000 of CDBG funds held by Home Federal would be lost, but the City would end up owning the condominuum units and, in addition, would be entitled to pursue a deficiency judgment against Mr. Klemetson for the amount of the second loan. Since the promissory note executed by Mr. Klemetson in favor of the City would then be unsecured, it would be easily dischargable by Klemetson through bank- ruptcy. Nonetheless, even though Klemetson has threatened bankruptcy, there is a possibility that he would not make good on his threat and the City could collect such a deficiency judgment, if and when obtained. Another scenario that might occur at a appearance of potential investors who would City and Home Federal, with the possible r the deficiency judgment which the City wot the option of foreclosure should be sel Federal would commence the foreclosure, tf foreclosure sale would be the compete in the bidding with the esult of reducing the amount of ild have to. seek to obtain. If ected and presuming that Home ie default interest rate of the -35- January 19, 1982 Home Federal first loan would be invoked and the sale proceeds would first be applied to Home Federal's costs and expenses in. bringing the foreclos- ure. The same would be true if the City commenced the foreclosure. The second option is to accept a deed from the owner in lieu of fore- closure. In order to obtain such a deed, the City would be required to retire the construction loan and forgive the City's second loan. The aggregate amount of these two loans is approximately $131,000. Upon retirement of the construction loan and forgiveness of the second loan, Mr. Klemetson would execute his warranty deed conveying the condominiums. to the City free and clear of all liens and encumbrances. The funds to be used to obtain the deed in lieu of foreclosure would come from the CDBG Housing Rehabilitation Program and use of such funds in this manner has been approved by the U.S. Department of Housing and Urban Development. Recommendation Since Mr. Klemetson has advised that, if the first option is taken, he will discharge any deficiency judgment in bankruptcy, and since foreclosure would involve the incurring of additional expenses by way of default interest on the construction loan as well as fees and costs incurred by Home Federal in commencing foreclosure, the Staff recommends the pursuance of a deed in lieu of foreclosure. The.attached resolution would authorize the City Manager to enter into the appropriate agreement to initiate this option." Councilmember Horak asked what these units would be used for once the City owns them. Grants Administration's Pat Allen replied that she hoped to use them as relocation apartments, temporary housing for housing rehabilitation cli- ents. She added they could be sold if the housing market improves. Councilmember Clarke asked if there had been an appraisal of the units to determine their value. Ms. Allen replied they were selling for $43,500 for the 2-bedroom and $48,000 for the 3-bedroom but that no appraisal had been done. Councilmember Cassell asked if an agreement between Dr. Klemetson and the City could be reached indicating his willingness to sign a note for any amounts in excess of value. Acting City Attorney Denton replied the Resolution could be amended to read that Dr. Klemetson would be required to enter into such an agreement with the City prior to the City Manager entering into the agreement with Home Federal and Dr. Klemetson. 1 -36- January 19,.1982 Councilmember Knezovich made a motion, seconded by Councilmember Reeves, to adopt the Resolution adding the provision that Dr. Klemetson be required to sign a note for the difference between the City's total dollar outlay less the City's net proceeds upon sale of these units and prior to entering into this agreement the City Manager also receive from Dr. Klemetson a certified financial statement of both his current position and his finan- cial position listing his assets for one year ago. Yeas: Councilmembers Cassell, Clarke, Elliott, Horak, Knezovich, Reeves and Wilmarth. Nays: None. THE MOTION CARRIED. Councilmember Cassell asked that staff bring back any problems associated with getting the agreement as soon as possible. Resolution Authorizing the City Manager to Enter Into An Agreement for the Purchase of a Community Park in the Southeast Section of the City, Adopted Following is the City Manager's memorandum on this item: "This Resolution authorizes the City Manager to enter into an agreement with the Fossil Creek Meadows Development Group for the acquisition of a 99.5-acre community park site including the Portner Reservoir and asso- ciated water and 0.8 shares of Larimer No. 2 Canal water. The area to be acquired is outlined on the attached map and was initially included in the Huntington Hills Master Plan. The terms in this agreement will be the following: . 1. The Fossil Creek Meadows Development Group would donate the following to the City of Fort Collins: Portner Reservoir (35 acres); The Master Plan park site (13.2 acres); and 90 acre-feet of Portner Reservoir water. 2. The City of Fort Collins will purchase the remaining 51.5-acres of land and water rights for a total price of $926,000. A portion ($706,450) will be paid in cash from bond issue proceeds. The remainder ($219,550) will be paid for with City of Fort Collins water certificates valued at $1,700 per acre-foot. 3. Huntington Hills will be granted maximum points for each phase of the Huntington Hills project on the Land Development Guidance System Density Chart for the following criteria: -37- January 19, 1982 ' A - 3,500 feet of an existing or reserved neighborhood park; B - 4,000 feet of an existing or reserved community park. C - 3,000 feet of a major employment center (Kelmar Strip). 4. Parkland maintenance costs will be the responsibility of the City and any costs associated with improvements desired by the City to the Reservoir dam will be borne by the City. 5. The City will be responsible for its proportionate share of the domestic water, sanitary sewer, and electric utility costs of the site. Such costs would be determined at the time of development of the park and based on actual usage of facilities by the park site. These costs would include both engineering and construc- tion costs. 6. The City will be responsible for street improvements to Lemay Avenue, Fossil Creek Parkway, and the collector street on the western boundary of the park for those portions adjacent to the park site. Improvements would be made at the time of park devel- opment or as necessitated by development of adjacent properties. 7. The seller agrees to gain all future water and sewer utilities for the Huntington Hills development ...from, the City, -,at, -such time as said services are available to service the project. Special use district services will be used until such service is available from the City in a manner similar to that used on Phase One. 8. The 3.9-acres designated as a neighborhood park site on the southern portion of the Huntington Hills Master Plan will not be used for park purposes and can be incorporated into developable land when the Huntington Hills Master Plan is amended. Staff opinion is unanimous and strong that this park site is the best in northern Colorado for an urban community park. The data shows that there is potential for a large urban community within the area that would be well served by the park. Therefore, staff recommends adoption of this Resolu- tion. The Parks and Recreation Board has reviewed alternative park sites in the southeast area and has recommended that the staff pursue negotiations with Hungtington Hills. Therefore, this Resolution is consistent with the Parks and Recreation Board's direction for acquisition of a community park in the southeast." Mayor Wilmarth noted Council had discussed this item in detail on several occasions and was therefore familiar with the site acquisition and purchase I details. M" IJanuary 19, 1982 Councilmember Clarke made a motion, seconded by Councilmember Elliott, to adopt the Resolution. Yeas: Councilmembers Cassell, Clarke, Elliott, Horak, Knezovich, Reeves and Wilmarth. Nays: None. THE MOTION CARRIED. Resolutions Expressing the Intent and Agreement of the City To Provide Water and Sanitary Sewer Utility Services to the Area Lying Within Both the Boundaries of the City of Fort Collins and The Fort Collins -Loveland Water District/or the South Fort Collins Sanitation District, Tabled to February 2 Following is the City Manager's memorandum on this item: "A. Resolution Expressing the Intent and Agreement of the City to Provide Water Utility Service to the Area Lying Within Both the Boundaries of the City of Fort Collins and the Fort Collins -Loveland Water District. B. Resolution Expressing the Intent and Agreement of the City to Provide Sanitary Sewer Utility Service to the Area Lying Within Both the Boundaries of the City of Fort Collins and the South Fort Collins Sanitation District. These Resolutions were tabled to this date from a December 22nd Council meeting. Litigation between the City and the Fort Collins -Loveland Water District and South Fort Collins Sanitation District has continued for a number of years regarding the question of utility service in areas recently annexed by the City and within the boundaries of the above mentioned District. Mr. Arthur E. March, Jr. has been representing the City during the course of this litigation and is presently in the process of amending the exclusion petition in the Fort Collins -Loveland Water District case to include those areas which have been annexed by the City since the original exclusion petition was filed. Accordingly, it is necessary for the City Council to pass a resolution accepting the obligation to provide water utility service to the expanded area covered in the amended petition, if the petition is to be successful. Further, in connection with the South Fort Collins Sanitation District v. City of Fort Collins case, Mr. March is currently taking steps to initiate an exclusion proceeding to exclude from the District that area lying within both the District boundaries and the City limits via either a counterclaim -39- January 19, 1982 in the District's present action, or a separate exclusion petition. Before pursuing either course of action, it is necessary for the City _ Council to pass a resolution accepting the obligation to provide sanitary sewer service to the subject area." Mayor Wilmarth noted there had been a request to table these two Resolu- tions to February 2. Councilmember Knezovich urged Council to defeat a motion to table these Resolutions so that the City could continue the court case without further delay. Councilmember Cassell made a motion, seconded by Councilmember Reeves, to table the Resolutions to February 2. Yeas: Councilmembers Cassell, Clarke, Elliott, Horak, Reeves and Wilmarth. Nays: Councilmember Knezo- vich. THE MOTION CARRIED. Citizen Participation A. Proclamation for "We Believe in Marriage Day" - February 14, 1982, was accepted by Don and Donna Thayer, 3701 Settlers Road. B. Commendation for Detective Ray Martinez. Mayor Wilmarth presented Certificates of Appreciation and Fort Collins Police Department belt buckles to Jared Cain and Craig Forster for their efforts in the Tafoya case. He then presented a Certificate of Achievement to Detective Ray Mar- tinez for his diligence, dedication and perseverance in bringing Eugene Tafoya to trial. Appeal of Planning and Zoning Board Decision on Underhill Preliminary P:U.D. Following is the City Manager's memorandum on this item: "Nature of Review Article V (Planning and Zoning Board Authority) of Chapter 2 of the Code of the City of Fort Collins authorizes the Board to take final action on all III -40- January 19, 1982 planning items and, furthermore, sets forth the procedure for appealing of decision of the Board to the Council. The appeal procedure requires the appellant to submit written notice to the City Clerk and provides for the City Clerk to send written notice of the appeal to the appellant, the developer and all landowners within 500 feet of the location of the plann- ing item. Though the Board action is being appealed, Section 2-16.1 (Nature of Review) of the Code provides: Section 2-16.1. Nature of Review. a. An appeal from a final decision of the Planning and Zoning Board shall be a new hearing which shall consist of consideration of any relevant evidence or argument based on the evidence. In considering this appeal, the Council is, in essence, acting as the Board and should review the land use impact of the proposed development, the evaluation of the proposed development under the Land Development Guidance System for planned unit developments and any other relevant evidence. General This is a request for preliminary PUD approval for 162 condominium units, 58 townhome units and one existing residence located on the south side of Prospect Road west of The Bridges PUD. The site is zoned R-L, Low Density Residential and R-P, Planned Residential. The surrounding zoning and land uses are as follows: North: R-L; existing single-family residences (Fairview West Sub- division - 3 DU/ac). South: R-L; existing single-family residences (Foothills Green Subdivision - 3 DU/ac; Villages West 7th Subdivision - 3.5 DU/ac). East: R-L-P, R-P; The Bridges PUD (townhomes and condominiums - 7 DU/ac). West: R-L; existing single-family residences (Sonoran View Estates Subdivision - 1 DU/2 ac). Land Use Data Parcel Size: 20.7 gross acres (902,358 sf) Dwelling Units: 162 condominium units (Nine 18-plexes) 18 three -bedroom units -41- 81 two -bedroom units 63 one -bedroom units 58 townhome units (Two 4-plexes) 20 two -bedroom units 38 one -bedroom units 1 existing residence 221 Total Units January 19, 1982 7-plexes; Four 5-plexes; Six Residential Density: 10.7 units per gross acre Floor Areas: 18 three -bedroom units x 1,100 sf = 19,800 sf 81 two -bedroom units x 950 sf = 76,950 sf 20 two -bedroom units x 1,288 sf = 25,760 sf 63 one -bedroom units x 700 sf = 44,100 sf 38 one -bedroom units x 840 sf = 31,920 sf Site Breakdown: Building Coverage: Gross: 20.8% 188,125 sf 4.3 ac Net: 24.3% Private Drive & Parking: Gross: 14.5% 130,966 sf 3.0 ac Net: 17.0% Public Street Right -of -Way: Gross: 14.5% 131,139 sf 3.0 ac Active Recreational Open Space: Gross: 22.2% 198,550 sf 4.6 ac Net: 26.0% Remaining Open Space or Landscaped Area: Gross: 28.0% 253,578 sf 5.8 ac Net: 32.7% _Off -Street Parking: Spaces Required: 365 Spaces Supplied: 116 carport stalls 108 garage stalls 151 open 9'x19' stalls 10 open 11'x19' handicapped stalls 385 total parking spaces Sunspot PUD (Smith PUD) was approved on this site in 1979 with a density of 5.5 DU/ac. Buildings proposed on the site are -as 18-plex condominiums, or townhome units in 4-, 5-, and 7-plex clusters. Maximum proposed building height is 40-feet or 2-1/2 stories. All living units have balcony/patio areas. -42- January 19, 1982 Access to the site is via Westbridge Drive, which loops through the site, crossing the New Mercer Canal. The applicant has proposed a minor adjust- ment to two building locations in the southeastern corner of the site to satisfy fire access requirements. This shift is proposed in lieu of a fire lane to The Bridges PUD, as proposed on the site plan. The developer proposes to phase development of the site from the north to the south since the importation canal (which would cross the southern portion of the property) has not been designed for this area. Phasing development of the site would allow portions of the project to be constructed prior to the time when final design of the importation canal could be approved. Discussion The Underhill PUD Preliminary Plan was reviewed by the Planning and Zoning Board at the December 21, 1981 meeting. The Board voted 6-0, with one abstention, to approve this request. There was some neighborhood opposition expressed at the meeting as the minutes reflect. The Underhill PUD was reviewed against the Land Development Guidance System ' (LDGS) and all applicable point charts are attached. The project achieved the required minimum on Point Chart A for a recommendation of approval. Points were obtained primarily from meeting the criteria for energy conser- vation, landscaping, solar orientation and recreational space. Calcul- ation of the Density Chart yielded a maximum allowable density of 269 units on the site. The project scored well on the Density Chart due.to locational factors, amount of active open space, and energy conservation. All ap- plicable absolute criteria have been addressed by the project. Staff Recommendation Staff recommends approval of the Underhill PUD Preliminary plan. Planning and Zoning Board Recommendation The Planning and Zoning Board approved the Underhill PUD Preliminary plan on a vote of 6-0, with one abstention, at their December 21, 1981 meeting (Case No. 88-81)." Acting Planning Director Ken Waido briefly described the project and gave the background leading up to the appeal. Bill McCaffrey, WJM Associate, representing Dr. Robert Smith, the devel- oper, noted the project was on an infill site which has been encouraged by ' the City. He gave an overview of the project noting their plan addressed the City's policies such as being on existing Transfort routes, developing -43- January 19, 1982 where there are existing utilities and incorporating energy saving features such as passive solar orientation. He reveiwed the placement of the units and the buffering techniques used to minimize problems with the lower land uses to the west. The following persons spoke in opposition to the Underhill P.U.D.: 1. Kent Andrews, 1843 Michael Lane, whose concern was that the proposed P.U.D. was inconsistent with its surroundings because of its density. 2. Sanford Thayer, 1827 Michael Lane, gave a detailed presentation on his review of the project and presented a letter containing his inter- pretation of the inconsistencies between the project and the Land Development Guidance System. He felt the project was at best marginal and was not compatible with the neighborhood and added that any of the lettered criteria or any lowering of the points below the minimum of 65 was sufficient basis for denial of the project. 3. Sue Pendell, 1712 West Prospect, spoke to the character of her neigh- borhood expressing her concern about the quality of life brought about by increased density. 4. Phil Kearney, 1729 West Lake, spoke to the traffic patterns on West Prospect and asked Council to delay construction of the project until West Prospect is developed as an arterial. 5. Ervin Kuhnke, 1516 Brentwood Drive, spoke to the design of the project. Bob Lucas, marketing consultant for the developer, spoke to neighborhood compatibility per buffering and design. Acting City Attorney Denton stated the hearing was a "de novo" hearing and Council's decision should be to either approve the Underhill P.U.D. pre- liminary plan or to deny it and, by that action, would either be upholding or overruling the action of the Planning and Zoning Board. Council could also request the matter be reheard by the Planning and Zoning Board, although the ultimate decision would probably fall to Council. Councilmember Elliott made a motion, seconded by Councilmember Clarke, to approve Underhill Preliminary P.U.D. as presented. Yeas: Councilmembers Cassell, Clarke, Elliott, Horak, Knezovich, Reeves and Wilmarth. Nays: None. THE MOTION CARRIED. -44- I January 19, 1982 Councilmembers Reeves and Horak asked that the concerns expressed in Mr. Thayer's letter be addressed prior to final consideration by Planning and Zoning. Ordinance Establishing an Appeal Procedure for Various Boards and Commissions, Adopted As Amended on First Readinq Following is the City Manager's memorandum on this item: "The purpose of the Appeal Procedure Ordinance is to establish consistent appeal procedures which apply to appeals from board and commissions of the City which have historically been taken to City Council. The proposed ordinance provides that any person who had the right to appear before a board or commission, and who did in fact appear, may take an appeal of the decision of the board or commission to the City Council upon filing notice of appeal within 14 days after(the final action of the board or commission. The appeal would be based upon the transcript before the ' board or commission, and the cost of the transcript would be borne by the party making the appeal. The ordinance also requires that all persons who could have appeared, and did in fact appear before the board or commission, receive notice of the appeal and the hearing 14 days prior to the time City Council is to con- sider the appeal." Councilmember Cassell made a motion, seconded by Councilmember Elliott, to adopt the Ordinance modifying it by adding the words "and those members of groups represented by a single speaker at the initial hearing" at the end of Section 2 and changing the word "and" to "or" in the second line of that section. Councilmember Reeves asked what the cost of providing a transcript would be. Acting City Attorney Denton replied that the cost would vary with the type of recording used, i.e., electronic transcript or court reporter. Councilmember Reeves asked staff to find out the transcript costs for the recent Liquor Licensing Authority and Planning and Zoning appeals heard by Council. Councilmember Reeves made a motion, seconded by Councilmember Clarke, ' to amend the ordinance by adding the words "and any new evidence submitted" after the words "certified record" in the second line of Section 7. -45- January 19, 1982 , Councilmember Cassell spoke in opposition to the amendment. He suggested such an amendment puts the hearing back in the category of a new hearing and defeats the purpose and intent of the ordinance as presented. The vote on Councilmember Reeves' motion to amend was as follows: Yeas: Councilmembers Reeves, Clarke, Elliott and Horak. Nays: Councilmembers Knezovich, Cassell and Wilmarth. THE MOTION CARRIED. Bill McCaffrey, 1736 Yucca Ct., spoke to Council's capabilities to make a decision without the benefit of a work session to receive information. He added he was in favor of the appeal procedure and suggested some of the information be presented in writing prior to the hearing. The vote on Councilmember Cassell's motion to adopt the Ordinance as modified and amended was as follows: Yeas: Councilmembers Cassell, Clarke, Elliott, Horak, Knezovich, Reeves and Wilmarth. Nays: None. THE MOTION CARRIED. Resolution Setting Forth the Intention of the City of Fort Collins to Issue Industrial Development Revenue Bonds for Colorado State University Research Foundation, Adopted Following is the City Manager's memorandum on this item: "The City received a proposal from Colorado State University Research Foundation (CSURF) for an Industrial Development Revenue Bond (IDRB) issue in the amount of $15,000,000 in mid -December. The proceeds of the issue would be utilized to purchase a Control Data Corporation Cyber 205 computer and related peripheral equipment and for remodeling of existing computer facilities. The details of the project are identified in the proposal, which is being sent to Council under separate cover. The proposal has been reviewed in terms of its conformity to City policy and guidelines for the issuance of IDRBs by the Finance and Legal Depart- ments and the staff is recommending that the City Council approve the I attached inducement resolution at its -January 19th Council meeting." -46- January 19, 1982 Finance Director Ron Wood noted representatives from CSURF and CSU would make a presentation. He added the IDRB fee schedule would be brought to the January 26th work session and that each applicant for IDRB's is being advised that the City is considering the adoption of a fee schedule that might impact them. Ron Keyser, Vice President of CSURF, asked for Council approval of the Inducement Resolution for the acquisition of a Control Data Cyber 205 computer. He outlined the advantages and ramifications of the project for the community and added the computer would make CSU one of the leading universities in computational resources in the nation. It would attract top level scientists, technicians and faculty to the community and would add 92 new jobs and $4.7 million in additional salaries to the community. Additionally, new computer hardware and software industries and computer design groups would be attracted to the community. He stated CSURF was pursuing this particular financing vehicle because it is the most cost- effective way of financing the computer. In addition, CSURF has experience in this type financing since they had issued $9 million of IDRB's from Boulder County for a computer used by NCAR and $5.38 million from Larimer County for the acquisition of 601 South Howes which is currently providing office facilities for the University and some of its affiliated organiza- tions. He added that the City would not incur any real or pecuniary liability in this project should the bonds default. Councilmember Cassell made a motion, seconded by Councilmember Clarke, to adopt the Resolution. Yeas: Councilmembers Cassell, Clarke, Elliott, Horak, Knezovich, Reeves and Wilmarth. Nays: None. THE MOTION CARRIED. Councilmembers' Reports Mayor Wilmarth asked if Councilmembers would be able to attend a Budget Retreat on February 6th rather than February 13th. Consensus was to meet on February 6th. Councilmember Knezovich reported that Councilmember Reeves had been ap- pointed Chairman of the Airport Ad Hoc Committee. He added that a draft of minimum standards for tenants would be coming to Council. Councilmember Elliott reported he had met with the Northern Colorado Liquor Dealers and a meeting will be set up in the future to discuss mutual concerns. -47- January 19, 1982 Councilmember Horak reported that Governor Lamm does not agree with the cities of Fort Collins and Greeley with regard to the designation of the Council of Governments as the Metropolitan Planning Organization. His position is that the State Department of Highways should be a voting entity. The Council of Governments is meeting on January 20 to decide how to proceed as funds cannot be released until Governor Lamm designates and the cities agree with his position. Mayor Wilmarth reported on his conversation with of the House Judiciary Committee, urging passage asked for Council direction with regard to Block imperative to identify the City's goals to th block. Adjournment Councilmember Horak made a motion, seconded by adjourn. Yeas: Councilmembers Cassell, Clarke, Reeves and Wilmarth. Nays: None. THE MOTION CARRIED. The meeting adjourned at 11:05 p.m. ATTEST: City Clerk e Mr. Robb, Vice Chairman of the lottery bill. He 31, adding he felt it was property owners in the Councilmember Knezovich, to Elliott, Horak, Knezovich, 6 4& M yor 11 GLz