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HomeMy WebLinkAboutMINUTES-08/17/1972-RegularAu ust 17, 1972 MINUTES OF MEETING August 17, 1972 The City Council of the City of Fort Collins met in regular session at 1:30 P.M. in the Council Chamber of the Municipal Building on Thursday, August 17, 1972. Present: Councilman Carson, Lopez, Preble, Petterson and Fead. Also: Michael DiTullio, Acting City Manager Arthur March, Jr. Assistant City Attorney Charles Liquin, Director of Public Works Donald Reynolds, Director of Planning Charlie Cain, Director of Finance Verna Lewis, City Clerk Mayor Carson presided. DISPENSING OF MINUTES: Motion was made by Councilman Lopez, seconded by Councilman Preble, that the reading of the minutes of the last regular meeting held August, 10, 1972, be dispensed with. Motion adopted. AGENDA ITEM 2A FINAL HEARING OF ROUND THE CORNER RESTAURANT FERMENTED MALT BEVERAGE LICENSE 1221 W. Elizabeth Assistant City Attorney March, Jr., stated that according to law, this application had not been posted for 10 days, stating that the sign had been removed through no fault of the applicant and that the application had received adequate publication. Phillip Potter, Attorney representing Round the Corner applicants, asked that the requirements of posting for ten days be waived. He presented Exhibit A, which was a map of the location of this establishment, and Exhibit B, photographs of the building construction, etc., since 1968 until 1972, which was an aerial Photo. He called B. Edwin Massey, 4749 Old Post Court Boulder, Colorado, to the stand for questioning and was sworn %y the court recorder. Mr. Massey stated he was president and stock holder of Round the Corner restaurant, that he had been employed by Round the Corner restaurants, Inc. in Boulder for the last four years and one in Cinderella City, and all have beer licenses with the exception of Cinderella City. He said the decor would be the turn of the century and would have a telephone ordering system and the ID's would be easily checked. They picked Fort Collins because the building here was increasing greatly and because of CSU, that 800 of their gross would be food. and beer would be second and that there would no rowdiness allowed; that Gleason and Hanson were the landlords. He said he had talked with business people and students and the reaction was positive. That the parking was adequate but if they needed more, they had obtained permission from the church across the street for additional parking. Exhibit D was a letter presented from Mr. C. K. Chapel, City Clerk of Boulder, stating there had been no problems encountered in the Round the Corner restaurants located in the Hill area in the past three years. Richard McCallum, 1120 Woodford, was sworAgfor questioning. Exhibit C was presented to the Council which were petitions circulated by Mr. McCallum, saying that all were favorable. He stated he worked for Round the Clock establishment and he reviewed the building permits issued from 1968 to 1969 and the additional construction in this area. Mr. Potter summarized his case, stating there was a definite need in the neighborhood, that there was an increase in the building in the area, that it was not to be a tavern but a restaurant and all the requirements have been met. Mayor Carson declared the hearing concluded and the Council would take the license under advisement. AGENDA ITEM 3A FINAL HEARING OF H $ M LIQUORS, 31S Riverside Avenue. Assistant City Attorney Arthur March, Jr., advised the Council that at the preliminary hearing last week, it was the decision to continue this hearing until next week. Motion was made by Councilman Fead, seconded by Councilman Lopez, that this be adjourned to be continued August 24, 1972. Ayes: Councilmen Carson, Lopez, Preble, Peterson and Fead. Nayes: None. AGENDA ITEM 4A ORDINANCE NO. 41, 1972 BEING AN ORDINANCE ANNEXING CERTAIN TERRITORY TO THE CITY OF FORT COLLINS. Motion was made by Councilman Lopez, seconded by Councilman Preble, that Ordinance No. 41, 1972, be adopted. Ayes: Councilmen Carson, Lopez, Preble, Peterson and Fead. Nayes: None. i AGENDA ITEM 4B ORDINANCE NO. 42, 1972 BEING AN ORDINANCE AMENDING CHAPTER 19 OF THE CODE OF ORDINANCES OF THE CITY OF FORT COLLINS COLORADO, 1958, AS AMENDED, COMMONLY KNOWN AS THE ZONING ORDINANCE AND CLASSIFYING FOR ZONING PURPOSES THE PROPERTY INCLUDED IN THE HORSETOOTH ANNEXATION TO THE CITY OF FORT COLLINS, COLORADO Motion was made by Councilman Peterson, seconded by Councilman Fead, that Ordinance No. 42, be adopted. Ayes: Councilmen Carson, Lopez, Preble, Peterson and Fead. Nayes: None. AGENDA ITEM 4C ORDINANCE NO. 52, 1972 BEING AN ORDINANCE RELATING TO THE CREATION AND ORGANIZATION OF CONSOLIDATED STREET IMPROVE- MENT DISTRICT NO. 6S, PROVIDING FOR THE CONSTRUCTION OF IMPROVEMENTS THEREIN, AND AUTHORIZING THE ISSUANCEOF BONDS TO PAY THE COSTS OF CONSTRUCTION THEREOF Motion was made by Councilman Preble, seconded by Councilman Fead, that Ordinance No. 52, 1972, be adopted. Ayes Councilmen Carson, Lopez, Preble, Peterson and Fead. Nayes: None. AGENDA ITEM SA RESOLUTION 72-88 r• !'r, �r r.r.Z ,i4 a- '--'. rr: ':'*•P `�STi f' 'r 1?7!� o;� ...,_. cz i ,1, 1 i ,i u,::. ,.i\,� II r...t .L r- II,iG JAC:: ?;H:UEF, TO TIH, CITY OP IiCKl COLLT11 BUILDING PNil COi']'f;•'.ACFt"RS' LIC}NSL,,'G 30PTS t�"c ton: of J d-I Ttillcr as .! mtcmber OF the City Of Fort C:oI-ldaj 1;u; 1dL1',? :::id CC,.-Lractors' L1Ce:l1,l .g Boar," har o}y71red and t .(: Cit)' Cowicil desi:ds t0 r:L:7'_'G at him as a m-_n?ber of 9Uch hoard, .Till lie is willing t0 accept such r�an^G1i..tn^.:it. IT• RESOLVED BY T11' CC'04 i1, OF THE CITY OF 10T COLLTIT : 1 iat Jack !' bAler bo .,_hd a0 hereby is ro;ipN. iilte C. as a Hle,T,'UGr o - the City of :'Ort CiJ'i lily I LU_).dlilg i-uid Contractors, Liceilslav Board for a t®.;.i to and Jaiiaarf 1976. ^;_, ci;t( h11C. %J,fO;)Cs:i at a r0c,i11ar of rlt,3 C;12:7 GGLIl'-Cl.l i121(i i tli'.S 17'th day O.i ., :;USi:. _.✓/.�� ATTEST: Karl E. Carson /s/ Verna Lewis City Clerk Motion was made by Councilman Lopez, seconded by Councilman Peterson, that this resolution be adopted. Ayes: Councilmen CArson, Lopez, Preble, Peterson and Fead. Nayes: None. i i R2 AGENDA ITEM 5B RESOLUTION 72-89 Augus.t_1.7_,_1972 OF ITIE COUNCIL OF ITM CITY OF FORT COLLINS REAPPOINT- ING NORMAN EVANS TO THE CITY OF FORT COLLINS WATER ..BOARD .... ......... :. ... WHEREAS, the term of Norman Evans as a member of the City of Fort Collins Water Board has expired and the City Council desires to reappoint him as a member of such Board, and he is willing to accept such reappointment. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS: That Norman Evans be and he hereby is reappointed as a member of the City of Fort Collins Water Board for a term to end February 1, 1976. Passed and adopted at a regular meeting of the City Council held this 17th day of August, 1972. yor ATTEST: City�Cler Motion was made by Councilman Preble, seconded by Councilman Lopez, that this resolution be adopted. Ayes: Councilmen Carson, Lopez, Preble, Peterson and Fead. Nayes: None. AGENDA ITEM 6A PLANNING F, ZONING BOARD PINE TREE PARK ANNNEXATION - North of Vine Drive and East of North College Avenue Petitioner: Lyle Carpenter. The Planning and Zoning Board recommended that this be approved. Motion was made by Councilman Fead, seconded by Councilman Peterson, that the recommendation of the Planning and Zoning Board be approved. Ayes: Councilmen Carson, Lopez, Preble, Peterson and Fead. Nayes: None. The motion carried. AGENDA ITEM 6B HANNA SECOND ANNEXATION Bounded by Vine Drive on North, Elm Street on the south and North Shields Street on the East. Petitioner: Rhoades. Inc. The Planning and Zoning Board recommended approval of this annexation. Motion was made by Councilman Lopez, seconded by Councilman Preble, that the recommendation of the Planning and Zoning Board be approved and referred to the City Attorney for the proper action. Ayes: Councilmen Carson, Lopez, Preble, Peterson and Fead. Nayes: None. The motion carried. 17. 1972 ADDED ITEM Don Reynolds, Planning Director proposed a new zone, and the Planning and Zoning Board recommended it. Motion was made by Councilman Fead, seconded by Councilman Peterson, that the recommendation of the Planning and Zoning Board be approved. Ayes: Councilmen Carson, Lopez, Preble, Peterson and Fead. Nayes: None. The motion carried. Michael DiTullio, Acting City Manager, stated that he had contacted the members of the Asso- ciated Contractors group and will discuss this with them before formal discussion by the Council. AGENDA ITEM 7A BIDS - STREET IMPROVEMENT DISTRICT NO. 65 Report: Summary: Bidder Bid Flatiron Paving Company $ 34,257.10 Sterling Paving Company 36,399.35 Mr. Roy A. Bingman, City Engineer, has evaluated the bids. A copy of his letter of recom- mendation is attached. Based upon Mr. Roy Bingman's letter, the recommendation is that a con- tract be awarded the low bidder, Flatiron Paving Company in the amount of $35,257.10 Respectfully submitted, /s/ E. M. Kuppinger Purchasing Agent Motion was made by Councilman Preble, seconded by Councilman Lopez, that the recommendation of the Purchasing Agent be approved. Ayes: Councilmen Carson, Lopez, Preble, Peterson and Fead. Nayes: None. The motion carried AGENDA ITEM 7B WOODWEST SUBDIVISION THIRD FILING There was considerable discussion relating to the traffic in this subdivision and several questions asked by the Council members concerning the right of way and the traffic moving more easily east and west and north and south. Don Reynolds explained that a 100 foot right of way is required andon the collective streets an 80 foot right of way is required. After considerable discussion, motion was made by councilman Peterson, seconded by Councilman Preble, that this subdivision be approved. Ayes: Councilmen Carson, Lopez, Preble, Peterson and Fead. Nayes: None. The motion carried. AGENDA ITEM 7C VILLAGE WEST SUBDIVISION FOURTH FILING Motion was made by Councilman Preble,seconded by Councilman Fead, that this subdivision be approved. Councilman Lopez stated he felt he could not vote until he had a better understanding of the traffic pattern. Don Reynolds. discussed the storm drainage of this area, stating that most traffic will be arterial. Motion was made by Councilman Preble, seconded by Councilman Fead, that this be explored further. Ayes: Councilmen Carson, Lopez, Preble, Peterson and Fead. Nayes: None. The motion carried. A n4 August 17, 1972 AGENDA ITEM 7D Stan Case, Director of Utilities, presented an oral report on the proposed changes in electrical rates. This had been discussed some time ago and this was just a review. He showed the comparisons of study, stating that $20,000,000 would be needed in the next 6 years, and showed a rate study of 1965 and new costs, that residential and industrial combined needed a total of $210,000. He said wanted to hold the line on old age pensioners and low income families, Fie said that no change in t.ie minimum of $1.25 does not cover what we need, and suggested that the Council diange the minimum to $1.7S per killowatt power. Mayor Carson asked how many units would be effected by the minimum raise. Mr. Case said this applies to those on vacations and those not using much electricity, that most use 400 killowatt hours. He recommended that the Council approve the rate study and refer this to the City Attorney to put in proper language. Mayor Carson stated that this study was very clear on what is to be expected. Mr. Case showed rules and regulations on price commission. Motion was made by Councilman Lopez, that this rate study be approved and refer to the City Attorney to prepare the necessary ordinance and to raise the rates for electric service to a minimum of $1.75. Seconded by Councilman Peterson and adopted. Ayes: Councilmen Carson, Lopez, Preble, Peterson and Fead. Nayes: None. Motion carried. Andy Anderson suggested that this item be postponed until the next night meeting in order that the citizens can be there, as it involves all of them. Assistant City Attorney March, Jr., stated that what we have to day is preliminary and will be a hearing no this. Mayor Carson said this is not a hearing today, but just a guideline for the staff. ADDED ITEM Assistant City Attorney Arthur March, Jr. advised the Council that there was a controversy concerning a question of ownership of a site in Grandview, stating that he did not think this section any concern of the City and asked authority as a stake holder to bring this to the court and abide by their answer. Motion was made by Councilman Lopez, seconded by Councilman Fead, that the recommendation of the Assistant City Attorney be approved. Ayes: Councilmen Carson, Lopez, Preble, :Peterson and Fead. Nayes: None. The motion carried. annrn TTFM The Assistant City Attorney presented an agreement between the Bighorn Development Corporation for Water, Sewer and Utility service according to the requirements of the ordinances of the City of Fort Collins and to be improved by the requirements of RMP under the zoning ordinance. lie suggested approval of the Council of this agreement and authorize the City Clerk and and Mayor to execute this agreement. He said it would have to go through the Planning and Zoning Board. Motion was made by Councilman Peterson, seconded by Councilman Peterson, that this approved. Ayes: Councilmen Carson, Lopez, Preble, Peterson and Fead. Nayes: None. The motion carried. COMMUNICATION: MEMO TO: City Council through Mike DiTullio, Acting City Manager FROM: Charlie D. Cain, Director of Finance SUBJECT: Municipal Capital Financing - Department of the Treasury Regulations The Department of the Treasury has published proposed regulations relating to the issuance of bonds by state and local governments which have potentially serious impact on city capital financing, administrative procedures and muni- cipal revenues. There are three activities that should be considered as contributing to these proposed regulations. They are: (1) The need for tax reform has been a much discussed topic for several years. Tax free interest on state and local bonds is one of the twelve top targets for "loophole closing". 070 �- 17._1972 (2) The adverse rulings pertaining to school financing in the California and Texas cases have created much uncertainty. Taxability, manage - went of reserves, investing, forecasting of revenues and expenses are examples of the major problems to be dealt with. (3) The issuance of tax exempt bonds for the express purpose of arbitrage has created a major loophole. Congress, at Treasury's urging, and with broad support from state and local governments, included a provision in the Tax Reform Act of 1969 prohibiting the issuance of tax exempt bonds for the purpose of arbitrage. The intent of the act was to prevent state and local governments from issuing bonds at low tax exempt rates for the express purpose of investing the proceeds at higher rates for profit. The Treasury issued temporary regulations on November 13, 1970, which placed certain limits on interest earned on investments of proceeds from the sale of municipal bonds. These regulations have worked reasonably well and have caused minimal problems for cities engaged in normal capital financing activities. The new proposed regulations issued June 1, 1972, take an entirely new course using unprecedented interpretation of statutory language. Most critical is the proposed classification in income from facilities (water and sewer charges, parking lot fees, airport rentals, and so forth) as part of the proceeds of the sale of municipal bonds. Thus in order to issue municipal bonds for any facility or public improvement which might in any way produce income, the city will be required to project all revenues and expenses, including interest earned on invested income, for the life of the bond issue and agree or covenant that such income will not exceed the differential allowed by the regulations - basically 1/8th percent. Some of the positions taken by the Treasury are: (1) "Major portion" of the proceeds of an issue is defined to mean 5 percent or more. (2) "Proceeds" of an issue includes not only the payment received by the issuer for the sale of issue, but also the future gross revenues of the facility financed by the issue. (3) "Proceeds which may reasonably be expected at the time of issuance" receive a double treatment. (a) Reasonable expectations may be established at the date of issue. (b) The alternative is a covenant between the issuer and the pur- chaser binding the issuer to proper investment throughout the term of the issue. Any contrary actions by the issuer of these complicated projections would lead to the inclusion of the issuer on a published "blacklist". Inclusion on such a blacklist means that the issuer cannot issue subsequent obligations as exempt without a prior special Treasury ruling. The proposed regulations contain no way for the blacklisting to be terminated. Treasury has taken restrictive positions concerning "yield over the term of the issue", "earnings materially higher", and "15 percent of the proceeds held in reserve". The proposed regulations would require modification of traditional marketing, investment and accounting practices in the common, everyday, routine variety of local government bonds, and require local governments to forego normal and traditional investment income. The issuer could be forced to invest his moneys at less than market to avoid arbitrage bond status. The regulations are very complex, and involve intricate and sophisticated calculations and projections. They would Porce major revisions in existing.accounting techniques.and substan- tially increased administrative cost. A joint statement was issued by the Council of State Governments, international City Management Association, National Association of Counties, National Gover- nors' Conference, National League of Cities, United States Conference of Mayors, Municipal Finance Officers Association, and the National Association of State Auditors, Comptrollers, and Treasurers, requesting that the proposed regulations be withdrawn. Further, the organizations are offering the assistance of their combined efforts in devising a new approach to the solution of these major problems. Until the regulations are withdrawn, bond council opinions concerning the taxability status of new issues would be rather clouded. I would urge you to consider taking a position supporting the joint statement issued by the eight governmental organizations. Their recognition of the problems and their willingness to work toward a solution would be supported by such a position. lZ6 /s/ Charlie D. Cain Director of Finance Mayor Carson's opinion on this matter was that the proposed federal regulations cripple state and Municipal financing and opposed it. It was the consensus of opinion of the Council that the Council join other state and local agencies in requesting that the regulations be withdrawn . Mr. Cain told Councilmen that the proposed regulations could have a potentially serious impact on City capital financing, administrative procedures and municipal revenues. Assistant City Attorney March, recommended that the administration present a resolution oposing the regulations as presented, stating there was a need for a -tax reform. It was stated that July 25, 1973, was the dead line for opposing these regulations. Motion was made by Councilman Fead, seconded by Councilman Peterson, that the recommendation of the City Attorney be approved. The Council requested the administration to provide copies of the resolution. Ayes: Councilmen Carson, Lopez, Preble, Peterson and Fead. Nayes: None. The motion carried. Michael DiTullio reported that a film would be shown on the rating system, stating that Mr. Charles Liquin, Director of Public Works, had talked with Mr. George Patnoid concerning the hydrology of the river; that he hoped to have the flood plains study by July of 1973; complete posting on railroad crossing; and a request for parking on Walnut and Linden and would present a recommendation next week. ADJOURNMENT Motion was made by Councilman Lopez, seconded by Councilman Fead, that the Council adjourn. Ayes: Councilmen Carson, Lopez, Preble, Peterson and Fead. Nayes: None. The motion carried, and the Council adjourned. MMdyor ATTEST: ty Cler