HomeMy WebLinkAbout014 - 01/19/1999 - APPROPRIATING $428,529 FROM RESERVES IN THE SELF-INSURANCE FUND TO FUND A PROPOSED SETTLEMENT ON BEH EMERGENCY ORDINANCE NO. 14, 1999
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING $428,529 FROM RESERVES IN THE SELF INSURANCE FUND
TO FUND A PROPOSED SETTLEMENT ON BEHALF OF
THE FORT COLLINS HOUSING AUTHORITY IN CIVIL ACTION NO. 97-K-1995
WHEREAS, on October 15, 1998, an amended judgment was entered in Civil Action No.
97-K-1995 (the "Litigation"), in the United States District Court for the District of Colorado (the
"District Court")against the Fort Collins Housing Authority(the"Authority"),its executive director,
Rochelle S. Stephens ("Stephens"), and one of its commissioners, Mike Prenzlow; and
WHEREAS, all claims and judgments against Commissioner Mike Prenzlow in the
Litigation have been fully settled; and
WHEREAS, the amount of the amended judgment against the Housing Authority was
$763,000 and,as a result of the settlement of the claims and judgments against Mike Prenzlow,said
amount has been reduced by agreement of the parties to$663,000 plus attorneys' fees and costs;and
WHEREAS, the amount of the amended judgment against Stephens, excluding punitive
damages, is in a like amount of $663,000 plus attorneys' and costs, and the District Court has
determined that the Authority and Stephens are jointly and severally liable for said amount; and
WHEREAS, the Plaintiff in the Litigation, Tracy Carter-DeFrancesco, and the Housing
Authority have been engaged in negotiations regarding the possible settlement of all claims and
judgments against the Authority and Stephens; and
WHEREAS, to date, such negotiations have been unsuccessful; and
WHEREAS,on this same date,the Board of Commissioners of the Authority has authorized
an offer of settlement to the Plaintiff, the present cash value of which offer is estimated to be
$428,529; and
WHEREAS,under Article V, Section 9 of the City Charter,the Council may appropriate by
ordinance at any time during the fiscal year such funds for expenditures as may be available from
reserves accumulated in prior years, notwithstanding that such reserves were not previously
appropriated; and
WHEREAS,$428,529 has been identified and is available for appropriation from prior year
reserves in the City's Self Insurance Fund; and
WHEREAS,the Council believes that it would be in the best interests of the residents of the
City to fund the foregoing offer of settlement, so that the Authority could resume normal operations
and continue to provide affordable housing to its residents.
NOW,THEREFORE, BE IT ORDAINED BY TIIE COUNCIL OF THE CITY OF FORT
COLLINS AS FOLLOWS:
Section 1. That the Council hereby finds that the expenditure of the amounts
appropriated herein for possible settlement of the Litigation would serve an important public purpose
for the residents of the City by enabling the Authority to remain in existence and resume normal
operations, so as to continue to provide affordable housing to the residents of the City.
Section 2. That there is hereby appropriated from prior year reserves in the City's Self
Insurance Fund the amount of $428,529 which, upon written acceptance by Tracy Carter-
DeFrancesco of the offer of settlement contained in Resolution No. 15 of the Board of
Commissioners of the Fort Collins Housing Authority, shall be irrevocably pledged for payment of
the following amounts in settlement of the Litigation:
a. $175,000 to be paid upon execution of a release and settlement agreement
satisfactory in form to the City Attorney and the filing of a full satisfaction of
judgment in the Litigation against the Authority and a partial satisfaction against
Stephens; and eight (8) additional annual payments in the amount of$40,000 for
eight(8)successive years thereafter to the Plaintiff,to be paid according to the terms
and conditions of the above-referenced release and settlement agreement as approved
by the City Manager and the City Attorney; or
b. in lieu of the structured settlement payments referenced above,a lump sum payment
in the amount of$428,529.
Section 3. That the City Manager is hereby directed to advance the amounts appropriated
herein as a loan to the Authority and to require the Authority to execute and deliver to the City such
documents of indebtedness and to provide such security as the City Manager deems reasonable and
appropriate as a condition of this loan.
Section 4. That in appropriating the monies herein from the City's Self Insurance Fund,
this Ordinance shall supercede in all relevant aspects the provisions of City Council Resolutions 87-
79 and 88-1, but with respect to the matter addressed herein only.
Section 5. That the immediate adoption of this Ordinance is necessary as an emergency
measure to preserve and protect the existence and ongoing operation of the Housing Authority and
to ensure the continuing operation of its affordable housing programs and projects and the
administration of its funds, and that the Council hereby determines that an emergency exists
requiring immediate passage of this Ordinance in order to preserve,protect and advance the general
welfare of the residents of the City of Fort Collins.
Section 6. That,for the foregoing reasons,this Ordinance is enacted pursuant to Section
8 of Article II of the Charter of the City of Fort Collins as an emergency ordinance, and the same
shall be immediately effective upon its passage.
Introduced,considered favorably by seven ( 7 )members ofthe Council of the City
of Fort Collins and finally passed as an Emergency Ordinance an ered published this 19th day
of January, A.D. 1999.
Mayor
ATTEST:
City Clerk ��Q