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HomeMy WebLinkAboutMINUTES-03/31/1981-AdjournedI March 31, 1981 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council -Manager Form of Government Adjourned Meeting 1:30 p.m. An adjourned meeting of the Council of the City of Fort Collins was held on Tuesday, March 31, 1981, at 1:30 in the Council Chambers in the City of Fort Collins City Hall. Roll call was answered by the following Council - members: Bowling, Gray, Reeves, St. Croix, Wilkinson, and Wilmarth. Absent: Councilman Kross. Staff Members Present: Arnold, Liley, Lanspery, Lewis, and Krajicek. Agenda Review: City Manager City Manager John Arnold noted that there would be two items of other business. Mayor Gray asked that Item #8, Hearing and First Reading of Ordinance No. 41, 1981, Authorizin the City Fanager to nter into an reement or t e ease urchase of o ice atro ars, a withdrawn rom t e onsent agen a. Consent Calendar This Calendar is intended to allow the City Council to spend itstime and energy on the important items on a lengthy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. 6. Report on Canvass of Special Downtown Development Authority Election nf Mn,,h The canvass of the results of the election show the question was approved by a vote of 254 in favor and 75 in opposition. 7. Hearin and First Reading of Ordinance No. 46, 1981, Creating and stab is ing a bowntown Development Authority in t e ity of rt -- Collins. This Ordinance is the next step in the formation of the D.D.A. A Resolution appointing the Authority members will be presented on April 21. pIl r 8. Hearinq and First Readinq of Ordi ce ratroi Lars. March 31, 1981 No. 41, 1981, Authorizin the or t e ease urc ase of 8 This Ordinance was tabled on March 17 to allow staff to further report on the interest rate. Two alternatives of the Ordinance are now presented for Council consideration. 9. Resolution Establishing Rental Rates for Surplus Water in 1981. The rental rates outlined in the Resolution have been recommended to the City Council by the Water Board. An estimated 5400-7580 acre-feet of excess water will be available for rental this year. 10. Tysdal Out -of -City Water Service Request. This property is located in the vicinity of Bingham Hill Reservoir. The applicants desire to construct a single family residence in an area adjacent to existing City water transmission lines. Ordinances on First Reading were read by title by City Clerk Wanda Kra- jicek. Item V . Heari -€stab ns. and First Reading -of Ordinance No. 46, 1981, Creatinq and eve Councilman St. Croix made a motion, seconded by Councilman Wilkinson, to adopt and approve all items not removed from the Consent Calendar. Yeas: Councilmembers Bowling, Gray, Reeves, St. Croix, Wilkinson, and Wilmarth. Nays: None. THE MOTION CARRIED. Ordinance Authorizing the City Manager to Enter into an Agreement for the Lease/ Purchase of 18 Police Patrol Cars, Alternate "B" Adopted on First Reading - — Following is the City Manager's memorandum on this item: "The adopted 1981 Budget includes approximately $200,000 to finance the lease/purchase of approximately $800,000 of equipment needs. Lease/ 99 ' March 31, 1981 Purchase financing was recommended by staff during Council budget work sessions as an alternative to the City's past method of providing for equipment needs. Staff continues to recommend lease/purchase as a viable alternative. The City proposes in this Ordinance to lease/purchase 18 Police Patrol Cars (15 replacement vehicles and 3 additional vehicles). The terms of the agreement with First National Bank provide for quarterly payments at a variable interest rate of 75% of First National Bank's prime rate, to be adjusted quarterly (Alternate "A"). As an alternative, First National Bank has offered a fixed interest rate over the 4 years of 65% (Alternate "B"). Both of the alternatives are competitive in today's market. PRPA has short term financing, of which about $10 million is at 70% of prime. This agreement shall not be a pledge of the City's revenues." City Manager John Arnold recommended that .Council adopt the Ordinance containing the -fixed _rate_alternative _which_would _allow staff _to_budget_a little better. Presently, the prime is 17.5% and 65% of that would be 11.375%. Councilman Wilkinson made a motion, seconded by Councilwoman Reeves, to adopt Ordinance No. 41, 1981 (Alternate "B") on First Reading. Yeas: Councilmembers Bowling, Gray, Reeves, St. Croix, Wilkinson, and Wilmarth. Nays: None. THE MOTION CARRIED. City Manager's Report City Manager John Arnold stated that we would be advertising for the D.D.A. appointments and the new Council will have the names on April 14th and make the appointments on April 21st when the Second Reading of the Ordinance creating the D.D.A. is presented. Councilmembers' Reports Councilman Wilkinson reported that the Rawhide short line railroad is now in operation. Proclamations I A proclamation naming April 6-12 as Public Radio Week was presented to Elizabeth Tanner, Program Director at KCSU. 100 March 31, 1981 Executive Session Authorized Councilman Bowling made a motion, seconded by Councilman St. Croix, to adjourn into Executive Session for the purpose of discussing legal and personnel matters. Yeas: Councilmembers Bowling, Gray, Reeves, St. Croix, and Wilkinson. Nays: Councilmember Wilmarth. Ordinance Adopted on First Reading Amending Section 112 of the Code Relating to Water Plant Investment Fees Following is the City Manager's memorandum on this item: "This Ordinance was tabled on First Reading on March 17 to allow the City Attorney to make some changes to the Ordinance for clarification. The changes are minor and generally accomplish the following: The language in paragraphs 1 and 2 was changed and the paragraph was separated into three paragraphs for clarification of the fees. A separate paragraph 4 was added to identify specific uses. The Water Plant Investment Fee (WPIF) is currently charged according to the size of the water tap or service line (usually the service line is the same size as the tap). This structure creates some potential problems since the fees charged are often not in proportion to water usage and there is the potential for installation of undersized service lines. Several methods of improving the WPIF structure have been investigated. The WPIF is intended to finance the cost of expansion of water treatment, storage, transmission and distribution facilities attributable to new development. In order to do this equitably, the fee should reflect the maximum day demands expected from each new water service. The factors that affect the projected maximum demands for each new service include the service line, the number of people served, and the irrigable area. The staff initially examined three alternatives. The first was a WPIF based on tap size, just as it is presently, but with a minimum tap size according to the number of units served by the tap. The second method was to base the WPIF on the housing density of each development. The third method was to base the charges on the number of units per building. After considerable analysis and consideration, vartou.s components of these alternatives were synthesized into a recommended WPIF structure as follows. 101 March 31, 1981 With the recommended WPIF structure the City would charge most traditional single family residences a WPIF based on the lot size. Multi -family residences, which usually have common space associated with them, would be charged according to the number of units per building. Since the major portion of WPIF revenues come from single family residences, and their maximum demands are largely due to lawn irrigation, these residences would be charged by housing density as reflected in lot sizes. Multi -family developments would not be as adaptable to charges according to housing density, but the number of housing units per building does indicate pro- jected water demands. The adoption of this structure, as proposed in the attached memo and ordinance, should not result in any significant change in revenues to the utility, or cost to our citizens, but should result in a more equitable rate structure. This concept was reviewed by and is recom- mended by the Water Board." Councilman Wilkinson made a motion, seconded by Councilman Bowling, to adopt Ordinance No. 37, 1981 on First Reading. Yeas: Councilmembers Bowling, Gray, Reeves, St. Croix, Wilkinson, and Wilmarth. Nays: None. ' THE MOTION CARRIED. ----.- _--_--------- ---- ----- Resolution Authorizing the Larimer County Commissioners to Issue Industrial Development Revenue Bonds to Provide Housing Facilities for Low and Middle Income Families Following is the City Manager's memorandum on this item: "Larimer County has been working for some time on the issuance of IDRB's for low-income mortgages. The issue is apparently ready to move and like most such issues needs to move fast. Staff has not had much time to review the documents, but they're being prepared by Boettcher and Company. We have spent some time analyzing impact, and we see nothing negative. Since the County will issue the bonds, we need to adopt a Resolution saying we will not issue similar bonds for similar purposes for a year. But residents of Fort Collins are then eligible to participate in the program. Limitations in the law are: eligibility of governmental units is limited to 9% of the mortgages generated in the jurisdiction during the last three ' years. For the County that amounts to $8 million. At $40,000 per loan, it is estimated that 150 loans will be authorized under the program. 102 The mortgage money is 12 1/2% interest, 30 year, fixed rate goes to those with under $30,000 adjusted income. Certainly low and moderate income folks need mortgage help. mends the program to you. Details are attached. March 31, 1981 , Eligibility Staff recom- (Unrelated but something you might want to discuss with the County Commis- sioners on March 31, 1981 is the ending balance of the program that occurs because the need for reserves during the program. Perhaps it should be pro rata shared based on mortgages issued in other jurisdictions of the County.)" Steve Harris, Boettcher and Company, related that his firm had been working with the County for several years to structure and prepare a single family mortgage revenue bond issue. The issue was authorized by the County in December of 1980 and at that time would have been an issue of $50 million dollars in size; however, the rules governing single family housing bonds were tightened January 1. The new law requires that these bonds be used only for first time home _buyer_s,_.they restr_ict_the._dif_ference in .the bond yield and the cost of mortgages to no more than one full percentage point, the mandated limit of home purchase price is no more than 90% of the median home purchase price,within the jurisdiction issuing the bonds and limits the size of the issue to no more than 9% of the three-year annual aggregate loan demand within the jurisdiction issuing the bond. Within Larimer County there is the possibility of issuing up to $8 million in housing bonds in 1981, 82, and 83. If the City of Fort Collins would choose to have their own issue, that would further restrict the amount available to the balance of the county.' Councilman Wilmarth asked if low income in this program was defined at $30,000. Harris replied that $30,000 was the upper limit for borrowers under the program and that 15% was reserved for families earning $25,000 or less. Additionally, Harris noted that his firm had some concerns that with the large dollar volume of mortgage bonds that could potentially be issued, they would be disruptive to the overall tax exempt market. Councilman Bowling asked what portion would go to.the median standard of income or low income in Fort Collins. Harris replied that would depend on how quickly they would be able to purchase a home and apply for the program. 103 1 March 31, 1981 Councilwoman Reeves made a motion, seconded by Councilman Wilmarth, to adopt this Resolution. Yeas: Councilmembers Reeves and Wilmarth. Nays: Councilmembers Bowling, Gray, St. Croix, and Wilkinson. THE MOTION FAILED. Authorization Denied to Proceed with Lease Agreement for Lot 37, Block 21, Ackerman Lot Following is the City Manager's memorandum on this item: "Staff has been negotiating with Mrs. Trulie Ackerman for the purchase/ lease of her property located near the south end of the America parking lot. Mrs. Ackerman has indicated she is more interested in leasing the parcel than selling it and has determined that the terms of the short term lease would be $4,800 per year. Originally we thought it made sense to purchase_ the lot for about $30,000. But an annual lease of $4,800 without an option to purchase at a determined price seems unsound. We would like to recommend approval of the lease on the condition that a lease -purchase agreement be executed for a fixed price purchase to be exercised at the option of the City." Mayor Gray noted that the terms were unacceptable to the Council but that does not preclude terms coming up that might be more acceptable. Councilman Wilmarth made a motion, seconded by Councilwoman Reeves, not to proceed with Lease Agreement. Yeas: Councilmembers Bowling, Gray, Kross, Reeves, St. Croix, Wilkinson, and Wilmarth. Nays: None. THE MOTION CARRIED. Receipt of Management Letter for 1980 Audit - Clifton, Gunderson, and Company Howard Ray, Clifton, Gunderson, and Company, presented copies of their management letters which are a review of the internal controls of the financial system -as they relate to a financial audit. Weakness of control identified are to be disclosed to Council. Other items not considered to be material in scope but that should be called to the administration's ' attention were under separate cover addressed to the City Manager. 104 March 31, 1981 Mayor Gray thanked Mr. Ray for the reports noting that the new Council would set a time to discuss them in detail. Amended Transit Development Plan Following is the City Manager's memorandum on this item: "Council has instructed the staff to Transit Administration (UMTA) for the Mercedes buses and the construction facility. A condition of the grant approve an amended TOP that indicates immediate transit future. seek a grant from the Urban Mass replacement of four of Transfort's of a bus maintenance and storage process is that the City Council Council's decision on the City's Basically, this entails including a final chapter in the TDP detailing Council's decision, entitled "Adopted Transit Alternative." This item was written to reflect Council's decision and to satisfy UMTA's format require- ments. The "Adopted Transit Alternative" has already been informally cleared through UMTA's Denver office. The --Adopted -Transit Alternative also envisions mothballing the Mercedes buses to be used in a future energy emergency. If we sell the buses now the proceeds would have to be put toward the cost of replacements. Reten- tion not only allows us to be able to respond to any future emergency demand for increased transit but also places us in a position to be able to subsequently remove those buses from the reserve (through a payment to UMTA) if we wish to use them for convention site shuttles or other transit uses." Councilman Wilkinson made a motion, seconded by Councilman Bowling, to amend Chapter 7 by deleting the paragraph on Page 97. entitled "Retention of Mercedes-Benz buses" and substitute "Due to the exorbitant operation and maintenance costs of the Mercedes-Benz buses, the four buses will be sold within 120 days of receipt of the new buses." Yeas: Councilmembers Bowling, St. Croix, Wilkinson, and Wilmarth. Nays: Councilmembers.Reeves and Gray. THE MOTION CARRIED. Councilman Bowling made adopt this Plan. Yeas: Wilkinson, and Wilmarth. THE MOTION CARRIED. a motion, seconded by Councilmembers Bowling, Nays: None. 105 Councilman Wilkinson, to Gray, Reeves, St. Croix, March 31, 1961 Joint Resolution of the Council of the City of Fort Collins and the Poudre-Thompson Transportation Corps, Inc., Confirming Their Intent to Maintain Their Current Contractual Relationship for the Maintenance, Repair, and Fueling by the City of Care -A -Van Transportation Units Following is the City Manager's memorandum on this item: "In our grant application for UMTA funding of our bus facility, we have sized the building to be able to continue providing to Care -A -Van the services that we now provide, plus office space and bus storage. UMTA requires a joint resolution indicating that it is indeed the intention of the Council and the Poudre-Thompson Transportation Corps, Inc., to continue our present relationship. This resolution, with a copy of our contract, will accompany the grant application." Councilwoman Reeves made a motion, seconded by adopt this Resolution. Yeas: Councilmembers St. Croix, Wilkinson, and Wilmarth. Nays: None. THE MOTION CARRIED. Councilman Wilmarth, tc Bowling, Gray, Reeves, Ordinance Tabled to May 5 on First Reading Beinq the Noise Control Ordinance . Following is the City Manager's memorandum on this item: "The Noise Control Ordinance is a device whereby the City of Fort Collins can control noises which disrupt the everyday lives of the citizens of the City. Section 1 prohibits generally disturbances created by excessive or unreas- onable noises. The purpose of this section is to prohibit activities which disrupt or disturb the peace of a neighborhood. Under this section, evidence of a decibel reading from a mechanical device is not necessary. Section 2 prohibits noises above certain decibel readings in various areas of the city. The categories are residential, business and commercial, industrial uses zoned as IL and IP and industrial uses zoned IG. The designated areas are in conformity with the designations contained in the state statute regarding noise abatement. The maximum noise decibel for each of these areas are as established under the state statute. The use of mechanical devices.to measure the decibels would be sufficient to establish a violation of this ordinance in municipal court. 106 1 March 31, 1981 Section 3 of the ordinance establishes the manner in which the mechanical readings are to be taken in order to establish a violation under Section 2. Section 4 excepts certain activities from the provisions of the Noise Control Ordinance. Those activities are emergency situations, unamplified human voice, railroad activities, aircraft activities and agricultural activities. Additionally, Section 4 provides an exception for construction and demolition projects whereby those projects would be treated as indus- trial uses and would be afforded a higher maximum noise level. Section 5 provides that variances may be granted by the City when this ordinance creates an undue hardship on individuals. Section 6 establishes quiet zones in which the permissible sound levels would be no greater than those provided for residential areas. The quiet zones may include schools, hospitals, nursing homes, churches, courts, etc. -Section 7-establishes maximum noise levels for vehicles.. Section 8 establishes penalties for violation of the Noise Control Ordi- nance, and Section 9 establishes the definitions necessary to enforce the ordinance. Enforcement of the Noise Control Ordinance will be by the designee of the City Manager. The Ordinance allows for flexibility so that the enforcement may be on a complaint basis; however, if a clear violation occurs, the City, may pursue the violation without first receiving a complaint." Councilman Wilmarth noted that he would like a public hearing and work session on this item and suggested tabling the Ordinance until May 5. Councilman Wilmarth made a motion, seconded by Councilwoman Reeves, to table Ordinance No. 47, 1981 on First Reading until May 5 for public hearing and in the interim schedule a work session on the issue. Yeas: Councilmembers Bowling, Gray, Reeves, and Wilmarth. Nays: Councilmembers St. Croix and Wilkinson. THE MOTION CARRIED. Airport Actions Emergency Ordinance Adopted As. Amended Authorizing Short -Term Borrowing for Airport Purposes Following is the City Manager's memorandum on this item: 107 . March 31, 1981 "This ordinance would allow the City Council to get a short-term note in the amount of $1 million so that the Cities could purchase the Fixed Base Operation facilities and begin those portions of the $2 million of improvements at the Airport necessary for the agreements with Airwest. Those improvements are as follows: FBO purchase $300,000 Water/sewer lines 276,000 Engineering design and inspection 86,000 Membership in Sanitation District 25,000 Electric power lines 52,500 Auto access road 67,000 Fuel farm 100,000 Parking lot 50,000 Contingency 43,500 The interest on the $300,00 for purchase of the FBO facilities will be paid by Airwest at the time Airwest pays the Cities the $300,000 purchase price for the FBO facilities. Councilman Bowling- made --a -motion, -seconded--by—Counc-i-lman—St -Croix, to - - ' amend Section 1 of the Ordinance to include the phrase "at an interest rate not to exceed 11 112% per annum". Yeas: Councilmembers Bowling, Gray, Reeves, St. Croix, Wilkinson, and Wilmarth. Nays: None. THE MOTION CARRIED. Councilman Bowling made a motion, seconded by Councilman St. Croix, to adopt Emergency Ordinance No. 48, 1981 as amended on Final Reading. Yeas: Councilmembers Bowling, Gray, Reeves, St. Croix, Wilkinson, and Wilmarth. Nays: None. THE MOTION CARRIED. Resolution Adopted Authorizing the City Manager to Enter Into an Agreement Between Fort Collins and Loveland for Reimbursement to Fort Collins of Loveland's Share of the $2 Million of Airport Improvements Following is the City Manager's memorandum on this item: "It was earlier agreed upon that Fort Collins would issue sales tax revenue bonds in order to finance the approximately $2 million worth of improvements needed at the Airport. It was agreed that Fort Collins ' would issue these election and that bonds since, Loveland, by as a home -rule city, it can do so without an an intergovernmental agreement, would agree o March 31, 1981 ' to reimburse the Cities for its share of the improvements. The difficulty that had to be worked around in this agreement is that no City may agree to a payment without an appropriation and an appropriation may be made only on a year-to-year basis unless an election has been held and approval for long-term debt has been given. In recognition of this difficulty, we needed to draft an agreement which would provide penalties if Loveland did not continue to appropriate every year for its share of the repayment of the $2 million. The agreement provides that in the event that Loveland fails to make an appropriation in any given year, the following penalties will arise: A. Loveland must give up its share of the Airport revenues for that year. B. Loveland must continue to pay one-half of its costs of the Airport operation (this is in accordance with a prior agreement between the two Cities relating to ownership of Airport improve- ments and sharing of expenses for Airport operation). C. Additionally;--each-"year Loveland -fails to -appropriate; its share of total Airport revenues will permanently decrease by 10% and ' the City's share will permanently increase by 10%. Councilman Bowling made a motion, seconded by Councilman St. Croix, to adopt this Resolution. Yeas: Councilmembers Bowling, Gray, Reeves, St. Croix, Wilkinson, and Wilmarth. Nays: None. THE MOTION CARRIED. Agreement Approved Among.the Cities and Foothills Bank Following is the City Manager's memorandum on this item: This Agreement provides for the following: A. Purchase of Fixed Base Operation improvements for $300,00 and fuel on hand at Foothill's cost. B. Contingencies of the agreement are as follows:. 1. A commitment for title insurance acceptable to the Cities 2. Termination of the receivership. 109 ' March 31, 1981 3. An order confirming sale and a sheriff's deed. 4. Termination of existing sub -leases. C. Lastly, this agreement provides for the execution of the agree- ment no later than April 15th." City Attorney Liley suggested that approval of this lease agreement with Airwest should be specifically conditioned upon receipt by the cities of a letter from Airwest prior to May 5 stating that they have reviewed the title commitment and containing a statement that it is satisfactory for all the purposes intended under this agreement. Councilman Bowling made a motion, seconded by Councilman St. Croix, to approve this Agreement., a revised copy of the original agreement which stated in part: "4. Conditions Precedent to Closing. The obligations of the parties under this Agreements al e su ject to the following conditions precedent: 4.1 A current commitment for title insurance satisfactory to the ties in the amount of $300,000 shall be furnished by__ Foothill to the Cities at or prior to Closing. (If the Cities elect to obtain title insurance pursuant to said commitment, the Cities will pay the premium thereon.) 4.2 Foothill shall at or prior to closing terminate the Re- ceivership and discharge the Receiver appointed in Civil Action No. 80-CV-294 pending in the District Court in and for the County of Larimer, State of Colorado. 4.3 Foothill shall, at or prior to closing, obtain an Order Confirming Sale and a Sheriff's Deed in order to conclude the Delgado Execution Sale." Yeas: Councilmembers Bowling, Reeves, St. Croix, and Wilkinson. Nays: Councilmembers Gray and Wilmarth. THE MOTION CARRIED. Resolution Adopted Setting Forth the City's Intent to Issue IDRB's to Finance Project for Airwest Helicopters, Inc. Following is the City Manager's memorandum on' this item: ' "This is a standard inducement resolution which the Council will need to pass if the purchase of the existing Fixed Base Operation facilities 110 March 31, 1981 ($300,000), as well as approximately $1 million worth of remodeling and expansion by Airwest may be paid out of proceeds of an Industrial Development Revenue Bond issue. In its agreement with Airwest, the City agrees to take all steps necessary to issue Industrial Development Revenue Bonds. As with all IDRB issues, it is contingent upon appropriate finan- cial and legal documents being prepared, presented to, and approved by the City Council at a later date. Passing the inducement resolution at this time simply allows Airwest to utilize this type of financing for the entire Airport project." Councilman Bowling made a motion, seconded by Councilman St. Croix, to adopt this Resolution. Yeas: Councilmembers Bowling, Reeves, and St. Croix. Nays: Councilmembers Gray and Wilmarth. (Wilkinson abstained). THE MOTION CARRIED. Agreements Among Cities and Airwest ollowing—i-s-the City Manager's memorandum on this item: - - A. Management Agreement. The Management Agreement contains the following provisions: 1. It begins when possession of the property is delivered to Airwest but no later than May 31st. 2. The following services will be provided -- administration of the T-hangar leases; arranging for snow removal, weed cut- ting, trash and rubbish removal; security; light maintenance. 3. The following fee will be paid to Airwest for the above referenced services -- during the first six months, 15% of rental revenues from City -owned T-hangars, plus 15% of such average rental rate times the number of other T-hangars. For the remainder of the term, 10% of the above revenues. 4. The term of the agreement will be for one year with automatic renewal from year to year. 5. This agreement may be terminated by either party upon sixty (60) days notice prior to the end of the annual term. I ill March 31, 1981 Councilman Bowling made a motion, seconded by Councilman St. Croix, to approve the management agreement with Airwest. Yeas: Councilmembers Bowling, Reeves, and St. Croix. Nays: Councilmembers Gray and Wilmarth. (Wilkinson abstained). THE MOTION CARRIED. B. Lease Agreement. The Lease Agreement contains the following provisions: 1. Lease of the ground for the Fixed Base Operation and Airwest helicopter operation. 2. The term is for an initial period of 25 years with two 10-year renewal terms (with the rent renegotiated based on prevailing ground lease rates). 3. The rental rate and fees will be as follows: Initial term for the first six months or within three months ' after completion -of utility-improvements-Airwest will pay -to - the City one-half of the tie -down fees. For the remainder of the term the following rate and fees shall apply: Year Per Square Foot % of Gross Sales 1 $ .05 1% 2 .06 1-1/2% 3 .07 1-1/2% 4 .08 1-112% 5 & .08 + 2% subsequent adjustment Additionally, Airwest will pay to the Cities 5% of all fuel sales and 10% of the difference between the gross sales price and cost to Airwest for aircraft sales. 4. Airwest will agree to provide the following FBO services: fueling, ramp parking, tie -down services, and other services if Airwest desires. 5. Airwest will agree to purchase the Fixed Base Operation . facilities from the Cities for $300,000 plus the fuel on hand at the Cities' cost. 112 March 31, 1981 6. The Cities will commit to the following: a. Termination of existing leases. b. Repair of existing parking lot area. c. Expansion of existing parking lot to twice its size with asphalt surfacing to provide for public parking. Failure to do this by March 1, 1982 will entitle Airwest to have this work done and billed to the Cities. Airwest, if it desires to provide additional employee parking, may expand the parking lot into the option area, in which case the City agrees to provide adequate storm drainage in the area. d. The Cities agree to install water, sewer and natural gas utility lines to the FBO improvements no later than October 1, 1981. If this work is in progress by October 1st but delayed through no fault of the Cities, the deadline will be extended to March 1, 1982, but the Cities will then have to pay costs of providing water, sewer and propane services to the site until -the lines - are installed. If the lines are not installed by March 1, 1982, Airwest, at its option, may terminate the agreement. e. The Cities agree to use their best efforts to effect the issuance of IDRB's to Airwest. 7. Airwest commits to the following: a. Performance of FBO services. b. Reasonable access for users. c. General cleaning and repair of improvements and ramp area on the lease property. d. Provision of adequate insurance. 8. There is a provision relating to inconvenience during con- struction which allows the Cities, when installing necessary improvements at the Airport, to cause some inconvenience to Airwest or even closure of the Airport, without any liability therefor; however, to the extent that the Airport is closed for longer than five (5) days, the rental payments for the Fixed Base Operation area will not be charged. 113 The agreement provides that of the Airport for airshows as such activities are not year without the consent of the Cities may and similiar in excess of Airwest. March 31, 1981 make temporary use activities so long five (5) days per 10. Cancellation and termination provisions are as follows: Nonpayment of rent -- the Cities may terminate the lease after notice and Airwest will have sixty (60) days to remove its improvements or assign such improvements with approval of the Cities. The Cities will have the right of first refusal. Default in FBO services -- the Cities, after notice, may withdraw from the area leased to Airwest that portion relating to the Fixed Base Operation. The per square foot rental rate for the remainder of the property will be increased by five cents ($.05). 11. Airwest--may----freely- assign --the -non-FBO—leased --area- but may - - -- - assign the FBO area only with consent of the Cities. 12. Airwest will have an option to lease additional property at the same rental rate as for its other leased property. Councilman St. Croix made a motion, seconded by Councilman Bowling, to approve the lease agreement with Airwest Helicopters expressly contingent upon receipt by the Cities, on or prior to May 5, 1981, of written accept- ance by Airwest or its designated representatives of evidence of good title has been reviewed by Airwest (or its designated representative) and that said evidence is acceptable and satisfactory to Airwest as evidence of good title for all purposes of Airwest contemplated under this Lease Agreement. Yeas: Councilmembers Bowling, Gray, Reeves, and St. Croix. Nays: Coun- cilmember Wilmarth. (Councilmember Wilkinson abstained) THE MOTION CARRIED. Other Business City Manager Arnold noted there was a request for a T-hangar purchase by the City. Mr. Merle Shellenbarger is selling the hangar for $10,000 with a 30 day option. Money is available in the $2 million contingency or a lease/purchase could be arranged. The airport ad hoc committee has estab- lished a policy to buy the hangars when they become available. 114 March 31, 1981 Councilmember Bowling made a motion, seconded by Councilmember St. Croix, to exercise the option to purchase hangar B-13. Yeas: Councilmembers Bowling, Gray, Reeves, St. .Croix, Wilkinson, and Wilmarth. Nays: None. THE MOTION CARRIED. Hearing of. Code Violation - Sophisticated Lady Fitness Salon, 1045 Garfield Avenue Following is the City Manager's memorandum on this item: "On February 10, 1981, Bill Waldo, Chief Building Official, noticed that a trailer had been set up at 1045 Garfield in the Lemay-Garfield Shopette. Since the trailer appeared unsafe, he sent a building inspector out to look at it, and asked Pete Barnes to check into zoning compliance. The building inspector found that the electric service and the propane tank to the trailer were unsafe and presented an immediate safety hazard, and conse- quently, he had both disconnected. The use of the trailer as a temporary office in the BL zone is prohibited by Chapter 76 of the City Code and Cathy Street was informed -of -the -code viol -at -ion -and-told-that-At would have to be moved. Ms. Street replied that she had checked with the Sales Tax Department to inquire about licenses, explaining her intent to use the trailer as a temporary facility. According to Ms. Street, she was told by Sales Tax that it was permissible to do so. Based on this approval, she had the trailer towed up from Boulder, had the phone installed, and had an electrician do the wiring. She was quite unhappy to find that, after spending a lot of money, she was now being told that it was illegal, and wanted to know if there was any appeal process. She was informed that there was, but since it was a violation of Chapter 76, she was told that she needed to contact Roger Krempel since the Code says that the Director of Public Works is responsible for enforcing Chapter 76. After she contacted Roger Krempel, a meeting between Pete Barnes, Paul Eckman, Chuck Mabry, Bill Waldo, and Roger Krempel was held to determine exactly who had jurisdiction over the matter and what appeal procedure was applicable. It was determined that it was a Public Works Department matter and that the appeal procedure outlined in Section 5 of Chapter 76 be followed. Sections 21 and 22 of Chapter 76 are the Code sections being violated, and it was decided that Ms. Street would still be able to operate out of the trailer while she was waiting for the appeal to be decided, only if she immediately complied with certain requirements of Section 22 and certain other building code requirements which were determined to be necessary to ensure safety. Ms. Street did so, and is now requesting a ' hearing on the matter. 115 1 March 31, 1981 At the regular meeting of March 17, Council set March 31 as the hearing date to hear the appeal of Sophisticated Lady Fitness Salon, Inc. for relief under Chapter 76 of the Code relating to occupancy of mobile of- fices. It should be pointed out that Ms. Street intended to use the trailer while the tenant space her health spa is to occupy is being finished. On Monday, March 23, Hockett Construction obtained a permit to construct a temporary office space in the shopette. As of today (March 27), the trailer is still in place and the violations still exist." Planning Director Chuck Mabry stated the appellant is in Salt Lake City and would not appear. An employee of Sophisticated Lady Fitness Salon indi- cated that the trailer was to have been moved on March 30 but the mover didn't show up. He suggested that Council deny the appeal and give Sophisticated Lady Fitness Salon some reasonable time, 4-5 days, to remove the trailer from the premises. Councilman Wilmarth made a motion, seconded by Councilwoman Reeves, to deny the appeal of Sophisticated Lady Fitness Salon and give them 5 days to remove the trailer from the premises. Yeas: Councilmembers Bowling, Gray, Reeves, St. Croix, Wilkinson, and Wilmarth. Nays: None. THE MOTION CARRIED. Assistant City Manager Verna Lewis reported that she had a request from the Colorado Society of Architects to write a letter regarding the deletion of licensing requirements of architects and engineers and in support of HB 1394. Councilman Wilkinson made a motion, seconded by Councilman Bowling, to write the appropriate letters in support of HB 1394 and in opposition of the deletion of licensing requirements for architects and engineers. Yeas: Councilmembers Bowling, Gray, Reeves, St. Croix, Wilkinson, and Wilmarth. Nays: None. THE MOTION CARRIED. Dismissal of Planning and Development Department Employee - ' Councilwoman Reeves made a motion, seconded by Councilman Bowling, that in accordance with the Charter that the administrative action of dismissal Is" March 31, 1981 taken by the Director of Planning and Development followed City Personnel procedures and that probable cause existed for his action. This action by City Council recognizes that an appeal process may be initiated by the employee, and this action does not prejudice this appeal process. Yeas: Councilmembers Bowling, Gray, Reeves, St. Croix, Wilkinson, and Wilmarth. Nays: None. THE MOTION CARRIED. Adjournment Councilman Bowling made a motion, seconded by Councilman St. Croix, to adjourn the meeting to April 14 at 10:00 a.m. Yeas: Councilmembers Bowling, Gray, Reeves, St. Croix, Wilkinson, and Wilmarth. Nays: None. The meeting adjourned at 3:40 p.m. ATTEST: --- 1May or 117