HomeMy WebLinkAbout123 - 03/01/2011 - APPROPRIATING FUNDS FROM THE CITY'S STORMWATER RESERVE FOR TRANSFER TO THE FORT COLLINS URBAN RENEWA ORDINANCE NO. 123, 2010
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING FUNDS FROM THE CITY'S STORMWATER RESE ES FOR
TRANSFER TO THE FORT COLLINS URBAN RENEWAL AUTHORI FOR THE
PURPOSE OF PROVIDING A LOAN FOR THE
NORTHEAST COLLEGE CORRIDOR OUTFALL PR CT
WHEREAS, the Fort Collins Urban Renewal Authority he "URA") was created on
January 5, 1982 to prevent and eliminate conditions related to rtain blight factors in the City;
and
WHEREAS, the City Council, by Resolution 200 -152, has made findings required by
Colorado Revised Statutes, Part 1 of Title 31, Article 5 and declared the area described in
Resolution 2004-151 as blighted and approved the U an Renewal Plan for the North College
Avenue Corridor (the "Plan"); and
WHEREAS, on August 15, 2006, the City Council adopted Resolution 2006-082
authorizing an intergovernmental agreement b tween the City and the URA whereby the City
will provide support services to the URA a d will advance funds to the URA so long as the
advance of such funds is evidenced in writin by a promissory note; and
WHEREAS, the Northeast Colle Corridor Outfall Project (the "NECCO") includes the
acquisition of a parcel of land appr07 mately 10 acres in size for a regional detention pond
designed to accept regional stormwa r flows as well as stormwater from development adjacent
to the pond within the North Colleg Urban Renewal Area; and
WHEREAS, NECCO is art of the Stormwater Master Plan and the $1,222,934 purchase
of the 10-acre parcel is bein is
by the City's Stormwater Utility, which is contributing
$896,462, and the URA, which► is contributing $326,472; and
WHEREAS, the y RA will not have sufficient tax increment revenues in 2011 to fund its
contribution to the NE CO; and
WHEREA City staff therefore recommends that the City lend the URA the funds
needed for that py pose; and
WHEREAS, on September 2, 2010, the North College Citizen Advisory Group voted in
favor of the RA borrowing $326,472 from the City to fund its contribution to the NECCO; and
HEREAS, there are sufficient prior year reserves in the Storm Drainage Fund Reserves
to fund loan to the URA for the purpose of purchasing the 10-acre parcel of land for the above-
descr red detention pond,; and
POSTPONED INDEFINITELY
ON SECOND READING (3/1/11)
WHEREAS, because the NECCO improvements are a utilities infrastruc re
improvement, City staff presented an agenda item to the Water Board on August 19, 010.
seeking a recommendation of the Water Board with regard to the proposed loan fro Storm
Drainage Fund Reserves, and Water Board members voted un/he
o s port that
proposal; and
WHEREAS, Article X, Section 6 of the City Charter states thing revenues of
the City's utilities may be expended only for renewals, replacemdinary repairs,
extensions, improvements, enlargements, embitterments to such uti specific utility
purpose determined to the Council to be beneficial to the ratepayers os; and
WHEREAS, City staff believes that the use of stormwater reserves as a funding source
for a loan to the URA in this situation will be beneficial the ratepayers of the City's
Stormwater Utility because the overall stormwater system will ecome more efficient; and
WHEREAS, staff has prepared a proposed promissory note and loan agreement titled
"Loan Agreement Between the City of Fort Collins/�nd the Fort Collins Urban Renewal
Authority for NECCO" (the "Loan Agreement") attached hereto as Exhibit "A" and incorporated
herein by this reference; and /
WHEREAS, the City Manager Zthe
ends funding the loan to the URA from the
Stormwater prior year reserves; and
WHEREAS, Article V, Sectionhe City Charter permits the City Council to
appropriate by ordinance at any time duriscal year such funds for expenditure as may be
available from reserves accumulated in�prior years, notwithstanding that such reserves were not
previously appropriated.
NOW, THEREFORE, B ` IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. ThaVhere is hereby appropriated from Storm Drainage Fund Reserves the
sum of THREE HUNDRED TWENTY SIX THOUSAND FOUR HUNDRED SEVENTY TWO
DOLLARS ($326,472) for expenditure as a loan to the Fort Collins Urban Renewal Authority.
Section 2. That the use of this $326,472 in Stormwater prior year reserves for the
purpose of f indi g a loan to the URA, according to the terms and conditions of the Loan
Agreement, wi serve a specific utility purpose for the ratepayers of the City's Stormwater
Utility and w'Il be beneficial to the ratepayers in that the overall stormwater system will be more
efficient.
ection 3. That the Loan Agreement is hereby approved, and the City Manager is
autho 'zed to execute said agreement, subject to such modifications in form or substance as the
City anager may, in consultation with the City Attorney, deem desirable and necessary to
pr ect the City's interests.
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Introduced, considered favorably on first reading, and ordered published this 7tli/dayof
December, A.D. 2010, and to be presented for final passage on the 21 st day of December, A.D.
2010.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 21 st day of December, A.D. 2010.
Mayor
ATTEST:
City Clerk
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