HomeMy WebLinkAbout008 - 01/19/2016 - AUTHORIZING THE RELEASE OF A COVENANT ON THE MURPHY CENTER PROPERTY ORDINANCE NO. 008, 2016
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE RELEASE OF A COVENANT ON
THE MURPHY CENTER PROPERTY
WHEREAS, in 2004 the City of Fort Collins and United Way of Larimer County
("United Way") entered into a Recipient Contract for Community Development Block Grant
("CDBG") Funding (the "Contract") for the acquisition of land described as Lot 2, A Minor Sub
of Conifer Industrial Park (the "Conifer Property"), as the future site of a facility now known as
the Sister Mary Alice Murphy Center for Hope ("the Murphy Center"); and
WHEREAS, the Contract provided for a distribution by the City to United Way of a due
on sale loan in the amount $70,500, plus 5% simple interest on the principal (the "Loan"), made
available to the City from the United States Government under Title I of the Housing and
Community Development Act of 1974, and secured by a Promissory Note and Deed of Trust in
favor of the City on the Conifer Property dated January 21, 2005; and
WHEREAS, in 2007 the Conifer Property was replatted, and the City agreed to release
the 2005 Promissory Note and Deed of Trust in exchange for a new Promissory Note and Deed
of Trust dated August 21, 2008, encumbering a portion of the former Conifer Property described
as Lot 2, United Way Housing Services Day Center(the "Murphy Center Property"); and
WHEREAS, in 2013, with the City's consent and cooperation, United Way transferred
the Murphy Center Property to Serve 6.8, a Colorado nonprofit corporation ("Serve 6.8"); and
WHEREAS, as part of this transfer the City permitted Serve 6.8 to assume the Loan and
the Contract from United Way, on condition that Serve 6.8 execute a Memorandum of
Understanding and Covenant, a copy of which is attached hereto as Exhibit "A" and incorporated
herein by reference (the "Covenant"); and
WHEREAS, the purpose of the Covenant was to help the City ensure that Serve 6.8
-complied with the federal requirements associated with the Contract and Loan by requiring Serve
6.8 to use the Murphy Center Property solely for the purpose of case management and a range of
related services for community members who are experiencing homelessness, or who are at risk
of becoming homeless, with a majority (51%) of clients being provided direct services falling
below 80% of Iocal Area Median Income, and 100% of the services provided being CDBG-
eligible, public service activities as described in 24 CFR 570.201(e); and
WHEREAS, the Covenant also says that SERVE 6.8 may not allocate office or
administrative space at the Murphy Center,to any entity other than the entity responsible for
daily operations of the Murphy Center, or agencies providing on-site, direct services to clients,
nor permit the use of such space for any purpose other than the daily operation of the Center or
the provision of allowable, on-site direct services, and it requires the consent of the City and
United Way to any future transfers of the Murphy Center Property; and .
WHEREAS, on December 6, 2015, Serve 6.8, with the City's consent, transferred the
Murphy Center'Property to Murphy Center LLC, a new, single-member LLC formed by the
Bohemian Foundation (the "LLC"); and
WHEREAS, as part of the conveyance by Serve 6.8 the Loan was paid off, the 2008
Deed of Trust on the Murphy Center Property was released, and the Contract terminated; and
WHEREAS, because the requirements of the Loan and the Contract no longer apply to
the Murphy Center Property, the LLC would like the.City to release the Covenant, as it is an
interest in real property that encumbers the LLC's title to the Murphy Center Property; and
WHEREAS, City staff has no objection to releasing the Covenant as its purpose has been
served, and removing the Covenant will relieve City staff from the time and cost associated with
monitoring the LLC for compliance with the requirements of the Covenant; and
WHEREAS, Section 23-111(a) of the City Code authorizes the City Council to sell,
convey or otherwise dispose of any interest in real property owned by the City, provided that the
City Council first finds, by ordinance, that such sale or other disposition is in the best interests of
the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That.the City Council hereby finds that the City's release of the Covenant
on the Murphy Center Property as described herein is in the best interests of the City.
Section 3. That the City Manager is hereby authorized to execute a release of the
Covenant in a form that the City Manager, in consultation with the City Attorney, determines is
necessary or appropriate to protect the interests of the City and effectuate the purposes of this
Ordinance.
Introduced, considered favorably on first reading, and ordered published this 5th day of
January, A.D. 2016, and to be presented for final passage on the 19th day of:January, A.D. 2016.
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Passed and adopted on final reading'on the 19th day of January, A.D. 2016.
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RECEPTION#: 20130051461, 07/05/2013 at 02:33:49 PM, 1 OF 5, R $31.00 TD Pgs: 0
Angela Myers, Clerk & Recorder, Larimer County, CO
EXHIBIT A
WHEN RECORDED RETURN TO-
City of Fort Colfins,
Social Sustainability Department
P.O.Box 580
Fort Collins,CO 80522
MEMORANDUM OF UNDERSTANDING AND COVENANT
This Memorandum of Understanding and Covenant("Memorandum")is
made and entered into this day of-_ 7uHe ,2013,by and
between THE CITY OF FORT COLLINS,COLORADO, a Colorado municipal
corporation(the"City"), and SERVE 6.8,INC.,a Colorado non-profit corporation.
RECITALS
1. The City of Fort Collins uses its CDBG Entitlement Grant in accordance with
regulations and priorities established by the United States Department of Housing and
Urban Development(HUD),which has recognized the challenge of addressing the unmet
needs of the chronically homeless as a top national priority.
2. The City of Fort Collins, SERVE 6.8,local human services agencies, and other
community partners,iricluding the City's faith partners,all desire to effectively address
the needs of those who are either experiencing or are at risk of homelessness in our
community.
3. The City of Fort Collins and United Way of Larimer County,Inc. ("United Way")
previously entered into a Recipient Contract for Community Development Block Grant
(CDBG)Funding dated December 22,2004, and as amended on August 19,2008 (the
"Contract"-), which provided for the acquisition of land(Lot 2, A Minor Sub of Conifer
Industrial Park)(the"Conifer Property"),as the future site of a facility now known as the
Sister Mary Alice Murphy Center for Hope("the Center").
4. The Contract provided for a distribution by the City to United Way of a due on
sale loan in the amount$70,500,plus 5%simple interest on the principal(the"Loan
made available to the City from the United States Government under Title I of the
Housing and Community Development Act of 1974. The Loan was initially secured by a
.Promissory Note and Deed of Trust in favor of the City on the Conifer Property and dated
January 21,2005.
5. In 2007 the Conifer Property was replatted,and the City agreed to release the
2005 Promissory Note and Deed of Trust in exchange for a new Promissory Note and
Deed of Trust in favor of the City and encumbering a portion of the former Conifer
Property(the"United Way Property")dated August 21,2008 and recorded in the records
of the Larimer County, Colorado Clerk and Retorder on October 14,2008 at Reception
No. 20080065042. The 2005 Deed of Trust was released on May 31,2013,and such
release was recorded in the records of the Larimer County, Colorado Clerk and Recorder
1
- RECEPTION#: 20130051461, 07/05/2013 at 02:33:49 PM, 2 OF 5, Angela Myers, Clerk
& Recorder, Larimer County, CO
r ,
on June 3, 2013 at Reception No. 20130041602. The United Way Property is more
particularly described as Lot 2, United Way Housing Services Day Center,FTC
(20080010574), Parcel#97013-24-002.
6. The Center is currently operated by Touchstone Health Partners, Inc., and houses
multiple agency representatives,who provide case management and a related range of
services for those who are either experiencing homelessness,or who are at risk of
becoming homeless,and who are seeking to improve their life situation.
7. United Way's ownership and use of the Center: (a) meets a national objective for
purposes of CDBG funding by annually serving at least 51%of low-and moderate-
income citizens whose household income is less than 80%of the Area Median Income
(AMI); (b)involves the provision of 100%of direct services which are CDBG�ligible
activities, as referenced in 24 CFR 570.201 (e);and(c)meets priorities cited in the City's
2010-2014 Consolidated Plan.
8. SERVE 6.8 is its own 501(c)3 non-profit organization, and is the local missions
and outreach strategy of Timberline Church. Timberline Church has a respected history
of community outreach and financial and volunteer support of strategic community
partners,including the Murphy Center.
9. Since both the City and United Way are desirous of title to the United Way
Property being more appropriately held by an entity whose mission is to work in
partnership with others to address the complex needs and service provision standards for
the client population being served at the Center,United Way of Larimer County has
agreed to convey the United Way Property to SERVE 6.8; and
10. SERVE 6.8 has shown evidence of financial and administrative capacity to
assume ownership and operations of the United Way Property and the Center;and
11. Under the terms of the 2008 Promissory Note,the sale of the United Way
Property would require immediate repayment of the Loan; however,the City is interested
in remaining as a good community partner by continuing to be a funder in the Center with
the new owner,SERVE 6.8.
12.. The Board of Directors and staff of SERVE 6.8 agree to use the United Way
Property in accordance with federal requirements concerning faith-based organizations,
including non-discrimination on the basis of religion in the provision of services,
pursuant to Section 109,of Title I of the Housing and Community Development Act of
1974,and not using the United Way Property for inherently religious activities,such as
worship,religious instruction,or proselytization as part of the programs or services
provided at the Center,as required by 24 CFR 570.2000).
2
RECEPTION#: 20130051461, 07/05/2013 at 02:33:49 PM, 3 OF 5, Angela Myers, 'Clerk
& Recorder, Larimer County, CO _
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NOW, THEREFORE,in consideration of the mutual promises of the parties and other
good and valuable consideration, the receipt and adequacy of which is hereby
acknowledged, the parties agree as follows:
1. The City will permit SERVE 6.8 to assume the 2008 Promissory Note and Deed of
Trust from United Way and release United Way from any obligation thereunder on
the terms and conditions described herein. Such assumption shall be in a form
acceptable to the City.
2. SERVE 6.8 will use the Center solely for the purpose of case management and a
range of related services for community members who are experiencing
homelessness, or who are at risk of becoming homeless. It is understood and agreed
to that in the future services may be expanded to serve a broader representation of
low-and moderate-income clients. At all times,however, a majority(51%)of clients
being provided direct services must fall below 80%of local Area Median Income,
and 100%of the services provided must be CDBG-eligible,Public Service'activities
as referenced in 24 CFR 570.201 (e) .
3. SERVE 6.8 shall not allocate office or administrative space at the Center to any other
entity other that the entity responsible for daily operations of the Center, or agencies
providing on-site,direct services toblients,nor permit the use of such space for any
purpose other than the daily operation of the Center or the provision of allowable,on-
site direct services.
4. Any future sale or transfer of any interest in the United Way Property must be
approved by United Way and the City prior to any such sale or transfer or any
contracting therefor.
5. The terms and conditions of this Memorandum may be modified only by a written
amendment signed by both parties. .
6. A default by SERVE 6.8 under the terms of this Memorandum will constitute an
event of default under the 2008 Deed of Trust.
7. The parties hereto agree that United Way is a third-party beneficiary under this
agreement and shall have all of the rights described and allocated herein to United
Way notwithstanding the fact that United Way has not executed this Memorandum of
Understanding.
8. The rights and obligations of the parties hereto(and United Way)touch and concern
the United Way Property and shall constitute covenants running with the United Way
Property.
IN WITNESS WHEREOF,the parties have executed this agreement the day and year
first above written.
3
RECEPTION#: 20130051461, 07/05/2013 at 02:33:49 PM, 4 OF 5, Angela Myers, Clerk
6 Recorder, Larimer County, CO
CITY: CITY OF FORT COLLINS,COLORADO
A Colorado municipal corpo atio
Darin A.Atteberry,City a
ATTEST: +off FaRr�o
ity Clerk •f
Approved as to Form:
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Sr. Assi ant Ci Attorney
4
RECEPTION#: 20130051461, 07/05/2013 at 02:33:49 PM, 5 OF 5, Angela Myers, Clerk
& Recorder, Lari.mer County, CO
SERVE 6.8,INC.
A Colorado non-profit corporation
By:
President,/
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Corp rate Secretary
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Account#: FTC-003160
FORT•COLLINS
Invoice Text
NOTICE 1S HEREBY GIVEN that the Fort Collins City Council,on I
STATE OF COLORADO )
ss: AFFIDAVIT OF PUBLICATION
COUNTY OF LARIMER )
Andrew Troncoso ,being duly sworn,deposes and says that said is the legal clerk of the Fort Collins
Coloradoan;that the same is a daily newspaper of general circulation and printed and published in the City of
Fort Collins, in said county and state;that the notice or advertisement,of which the annexed is a true copy,
has been published in said daily newspaper for
1 Day;
that the notice was published in the regular and entire issue of every number of said newspaper during the
period and time of publication of said notice, and in the newspaper proper and not in a supplement thereof;
that the first publication of said notice was contained in the issue of said newspaper on
Sunday,January 24,2016
that the last publication thereof was contained in the issue of said newspaper on
Sunday,January 24,2016
that said Fort Collins Coloradoan has been published continuously and uninterruptedly during the period of at
least six months next prior to the first publication of said notice or advertisement above referred to;that said
newspaper has been admitted to the United States mails as second-class matter under the provisions of the
Act of March 3, 1879, or any amendments thereof, and that said newspaper is a daily newspaper duly
qualified for publishing legal notices and advertisements within the meaning of the laws of the State of
Colorado.
Legal Clerk
Subscribed and sworn to before me,within the County of Larimer,State of Colorado this
Monday,January 25,2016 LADONNAMARYpCgOLORCO
NOTARY PUBLIC-STATEMy Commission expires September 3,2019 My Identlfic fon li 20EVIresSeptenlW
Notary Public
Legal No.0001000903
Delivered to:
CITY OF FC-CLERK-LEGALS
300 LAPORTE AVE Affidavit Prepared
FORT COLLINS,CO 80521 Monday,January 25.2016
10:19 am
Legal Notices
GRANT REVENUE IN
THE GENERAL FUND FOR THE
FORT COLLINS POLICE
SERVICES VICTIM SERVICES UNIT
ORDINANCE NO.004,2016
OF THE COUNCIL OF THE CITY OF
FORT COLLINS
AMENDING CHAPTER 17 OF THE
CODE OF THE CITY OF FORT
COLLINS
TO ESTABLISH AN OFFENSE FOR
UNDERAGE POSSESSION
OR CONSUMPTION OF ETHYL ALCO-
HOL
ORDINANCE NO.005,2016
OF THE COUNCIL OF THE CITY OF
FORT COLLINS
AMENDING CHAPTER 17 OF THE
CODE OF THE COLLINS CITE IF: FORT
TO BRING THE EXISTING UNDER-
AGE CODE OFFENSES FOR POSSES.
MARI-
JUANA RINTONSUMPTION CONFORMITOY WITH
STATE LAW WITH
ORDINANCE NO.006,2016
OF THE COUNCIL OF THE CITY OF
FORT COLLINS
AMENDING CHAPTER 26 OF THE
CODE OF THE CITY OF FORT
COLLINS
AND THE FORT COLLINS
STORMWATER CRITERIA MANUAL
TO MODIFY THE CRITERIA FOR UN-
DERGROUND DETENTION SYSTEMS
ORDINANCE NO. O
007,2016
OF THE COUNCIL F THE CITY OF
FORT COLLINS
AMENDING CHAPTER 26 OF THE
CODE OF THE CITY OF FORT
COLLINS
NOTICE IS HEREBY GIVEN that the AND THE FORT
Fort Collins City Council, TO MODIFY
CRITERIA MANUAL
January 19, 2016, on Tuesday, TO MODIFY PROVISIONS IMPLE.
the following ordinances as ride oind MENTING
reading: LOW IMPACT DEVELOPMENT PRIN.
CIPLES
OFOTHE COUNCIL NANCE NO. lOF 1THE CITY OFORT COLLINSF
OF TDIHE COUNCIL 80F 1THE CITY OF
APPROPRIATING REVENUE IN THE AUTHORIZING THE RELEASE OF A
COMMUNITY CAPITAL FORT COLLINS
IMPROVEMENT FUND FOR INITIA- COVENANT ON
TION OF THE VARIOUS 2016 AP- THE MURPHY CENTER PROPERTY
PROVED PROJECTS, TRANSFER-
RING A PORTION OF THAT APPRO. ORDINANCE NO.009,2016
PRIATION TO THE CAPITAL PROD- OF THE COUNCIL OF THE
CITY
ECTS FUND AND A PORTION OF FORT COLLINS
THEREOF TO THE CULTURAL SERV- DECLARING CERTAIN CITY-OWNED
ICES AND FACILITIES FUND FOR PROPERTY ON
THE ART IN PUBLIC PLACES PRO- RUNNING DEER NATURAL AREA AS
GRAM CONTRIBUTIONS ASSOCIAT- ROAD RIGHT-OF-WAY
ED WITH THE 2016 APPROVED PROJ-
ECTS ORDINANCE NO.010,2016
OF THE COUNCIL OF THE CITY OF
ORDINANCE NO.002,2016 FORT COLLINS
OF THE COUNCIL OF THE CITY OF AMENDING SECTION 15-620 OF THE
FORT COLLINS CODE OF THE CITY OF FORT
APPROPRIATING UNANTICIPATED COLLINS
FROMGRAN THEENUE CONGESTION MITIGq. RELATED TO RETAIL MARIJUANA
TION AND AIR QUALITY ESTABLISHMENTS' HOURS OF OP_
GRANT FOR THE ERATION
FLEX REGIONAL EXTENSION OF The full text of these ordinances can be
ROUTE SERVICE found at
AND AUTHORIZING EXECUTION OF hfip://fcg0v.Cam/IMPLEMENTING INTERGOV or by calling the City Clerk's bloffice tcat
MENTAL AGREEMENTS ERN- 970-221-6515.
CITY MANAGER BY THE
ORDINANCE NO.003,2016 1000903
OF THE COUNCIL OF THE CITY OF Coloratloan
FORT COLLINS Jan 24,2016
APPROPRIATING UNANTICIPATED
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Account#: FTC-003160
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FORT-COLLINS
Invoice Text
OAN NOTICE IS HEREBY GIVEN that the Fort Collins City Council,on I
STATE OF COLORADO )
)ss: AFFIDAVIT OF PUBLICATION
COUNTY OF LARIMER )
Andrew Troncoso being duly sworn, deposes and says that said is the legal clerk of the Fort
Collins Coloradoan; that the same is a daily newspaper of general circulation and printed and
published in the City of Fort Collins, in said county and state; that the notice or advertisement, of
which the annexed is a true copy,has been published in said daily newspaper for
I Day;
that the notice was published in the regular and entire issue of every number of said newspaper
during the period and time of publication of said notice, and in the newspaper proper and not in a
supplement thereof; that the first publication of said notice was contained in the issue of said
newspaper on
Sunday,January 10,2016
that the last publication thereof was contained in the issue of said newspaper on
Sunday,January 10,2016
that said Fort Collins Coloradoan has been published continuously and uninterruptedly during the
period of at least six months next prior to the first publication of said notice or advertisement above
referred to; that said newspaper has been admitted to the United States mails as second-class
matter under the provisions of the Act of March 3, 1879, or any amendments thereof; and that said
newspaper is a daily newspaper duly qualified for publishing legal notices and advertisements
within the meaning of the laws of the State of Colorado.
Legal Clerk
Subscribed and sworn to before me,within the County of Larimer,State of Colorado this
Monday,January 11,2016 IADONNAMARYLANIAR
NOTARY PUBLIC-STATE OF COLORADO
My Commission expires September 3,2019 My Idenfikation#201540MM
Expires September 3,2019
Notary Public
Legal No.0000971092
Delivered to:
CITY OF FC-CLERK-LEGALS
300 LAPORTE AVE Affidavit Prepared
FORT COLLINS,CO 80521 Monday,January 11,2016
11:15 am
—your eSo-Source
,W I Legal Notices
STORMWATER CRITERIA MANUAL
TO MODIFY PROVISIONS IMPLE.
for the latest... MENTING
LOW IMPACT DEVELOPMENT PRIN-
CIPLES
Legal NoticesORDINANCE NO.008,2016
OF THE COUNCIL OF THE CITY OF
FORT COLLINS
NOTICE IS HEREBY GIVEN that the AUTHORIZING THE RELEASE OF A
Fort Collins City Council, on Tuesday, COVENANT ON
January 5,2016, passed and adopted the THE MURPHY CENTER PROPERTY
following ordinances on first reading.
These ordinances will be presented for ORDINANCE NO.009,2016
final passage on January 19,2016: OF THE COUNCIL OF THE
ORDINANCE NO.001,2016 CITY OF FORT COLLINS
OF THE COUNCIL OF THE CITY OF PROPERTY GONERTAIN CITY-OWNED
FORT COLLINS RUNNING DEER NATURAL AREA AS
APPROPRIATING REVENUE IN THE ROAD RIGHT-OF-WAY
COMMUNITY CAPITAL
IMPROVEMENT FUND FOR INITIA- ORDINANCE NO.010,2016
TION OF THE VARIOUS 2016 AP- OF THE COUNCIL OF THE CITY PROVED PROJECTS, TRANSFER- FORT COLLINS OF
RING A PORTION OF THAT APPRO- AMENDING SECTION 15-620 OF THE
PRIATION TO THE CAPITAL PROD- CODE OF THE CITY OF FORT
ECTS FUND AND A PORTION COLLINS
THEREOF TO THE CULTURAL SERV- RELATED TO RETAIL MARIJUANA
ICES AND FACILITIES FUND FOR ESTABLISHMENTS' HOURS OF OP-
THE ART IN PUBLIC PLACES PRO- ERATION
GRAM CONTRIBUTIONS ASSOCIAT.
ED WITH THE 2016 APPROVED PROD- The full text of these ordinances can be
ECTS found at http://fcg0v.COM/PublicnoticLs
or by calling the City Clerk's Office at
ORDINANCE NO.002,2016
OF THE COUNCIL OF THE CITY OF 970-227-6515.
FORT COLLINS 971092
APPROPRIATING UNANTICIPATED Coloradoan
GRANT REVENUE Jan 10,2015
FROM THE CONGESTION MITIGA-
TION AND AIR QUALITY
GRANT FOR THE EXTENSION OF
FLEX REGIONAL ROUTE AND AUTHORIZING SERVICE
EXECUTION OF
IMPLEMENTING INTERGOVERN-
MENTAL AGREEMENTS BY THE
CITY MANAGER
ORDINANCE NO.003,2016
OF THE COUNCIL OF THE CITY OF
FORT COLLINS
APPROPRIATING UNANTICIPATED
GRANT REVENUE IN
THE GENERAL FUND FOR THE
FORT COLLINS POLICE
SERVICES VICTIM SERVICES UNIT
ORDINANCE NO.00,1,2016
OF THE COUNCIL OF THE CITY OF
FORT COLLINS
AMENDING CHAPTER 17 OF THE Fin •
CODE OF THE CITY OF FORT
COLLINS
TO ESTABLISH AN OFFENSE FOR
UNDERAGE POSSESSION local
OR CONSUMPTION OF ETHYL ALCO-
HOL
ORDINANCE NO.005,2016
OF THE COUNCIL OF THE CITY OF events
FORT COLLINS
AMENDING CHAPTER 17 OF THE
CODE OF THE CITY OF FORT
COLLINS
TO BRING THE EXISTING UNDER-
AGE CODE OFFENSES FOR POSSES-
SION OR CONSUMPTION OF MARI-
JUANA INTO CONFORMITY WITH
STATE LAW
ORDINANCE NO,006,2016
OF THE COUNCIL OF THE CITY OF YOUR VOICE.
FORT COLLINS ' 1
AMENDING CHAPTER 26 OF THE
CODE OF THE CITY OF FORT
COLLINS LOG ON TODAY
AND THE FORT COLLINS
STORMWATER CRITERIA MANUAL
TO MODIFY THE CRITERIA FOR UN-
DERGROUND DETENTION SYSTEMS
ORDINANCE NO.007,2016
OF THE COUNCIL OF THE CITY OF • • • • i
FORT COLLINS
AMENDING CHAPTER 26 OF THE
CODE OF THE CITY OF FORT
COLLINS
AND THE FORT COLLINS