HomeMy WebLinkAbout2019-029-02/19/2019-AUTHORIZING THE EXECUTION OF AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY AND THE CITY OF LOVELAN RESOLUTION 2019-029
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE EXECUTION OF AN INTERGOVERNMENTAL
AGREEMENT BETWEEN THE CITY AND THE CITY OF LOVELAND FOR
THE USE OF CERTAIN REAL PROPERTY AT THE NORTHERN COLORADO
REGIONAL AIRPORT FOR A REGIONAL TRAINING CAMPUS
WHEREAS,in 2015,the City and the City of Loveland(collectively,the"Cities")entered
into an intergovernmental agreement that has been amended from time to time(the"Airport IGA"),
whereby the Cities agreed, in part, to the joint operation of Northern Colorado Regional Airport
(the "Airport"); and
WHEREAS,pursuant to the Airport IGA,the Airport is operated jointly by the Cities,with
each City retaining a 50%ownership interest, sharing equally in policy-making and management,
and each assuming responsibility for 50%of the Airport's capital and operating costs; and
WHEREAS, the City and the City of Loveland are currently designing and intend to
construct a jointly-owned police regional training campus (the "Training Campus") to be
constructed at the Airport in Loveland; and
WHEREAS,the Cities intend to utilize an available portion of Airport real property for the
construction and operation of the Training Campus; and
WHEREAS, the United States of America; acting through the Federal Aviation
Administration, released certain Airport real property from the requirement that it be used for
aeronautical development purposes under certain grant agreements by an Instrument of Release
from Aeronautical Use, dated July 28, 2015 (the "FAA Release"); and
WHEREAS, the Cities agreed in the FAA Release to lease the released property in
accordance with the FAA Release and other FAA requirements, including leasing the released
property at fair market value and ensuring the proceeds are reinvested back into the maintenance
and operation of the Airport; and
WHEREAS, the Cities jointly own the Airport real property and will use the released
property for the Training Campus; and
WHEREAS, since 2013,the Cities have each contributed a minimum of$177,500 per year
to the Airport operating fund to cover the expense of operating and maintaining the Airport as a
public asset; and
WHEREAS,the Cities desire to treat the annual $177,500 equal contribution to the Airport
as a fair market value rental rate for purposes of the requirement of the FAA Release with the
intent that amount will be reinvested into the maintenance and operation of the Airport; and
WHEREAS, the annual $177,500 equal contribution results in a total rental rate of
approximately $0.18 per square foot per year; and
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WHEREAS, the Cities, in consultation with the Director of the Airport, have determined
that the rental rate of$0.18 per squafe foot for the Training Campus, subject to an annual escalator,
is an appropriate fair market value rental rate, equivalent to the rental rate for other portions of the
Airport property; and
WHEREAS,the Cities' staffs have proposed an Intergovernmental Agreement,attached as
Exhibit"A"and incorporated by reference(the"Lease IGA"),which will act as the lease for FAA
purposes; and
WHEREAS, the Lease IGA is a for a term of fifty (50) years beginning upon the date last
signed; and
WHEREAS, the Lease IGA sets the rental rate of$0.18 per square foot for an annual cost
of$174,880.08, subject to an annual rent escalator tied to the Consumer Price Index, which shall
be paid to the Airport in equal quarterly payments; and
WHEREAS, the Cities have obtained approval from the FAA of the IGA as a means of
contractually arranging for use of the released property to comply with the express language of the
FAA Release; and
WHEREAS,the City Council has determined that it is in the best interests of the City that
the City agree to the Lease IGA to allow the Cities to constrict the Training Campus at the Airport,
and that the Mayor be authorized to execute the Lease IGA between the City and the City of
Loveland.
NOW,THEREFORE, BE IT RESOLVED 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 above.
Section 2. That the Mayor is hereby authorized to enter into the Lease IGA, in
substantially the form attached hereto as Exhibit "A," together with such additional terms and
conditions as the City Manager;in consultation with the City Attorney,determines to be necessary
and appropriate to protect the interests of the City or to effectuate the purposes of this Resolution.
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Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 19th
day of February,A.D. 2019.
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EXHIBIT A
INTERGOVERNMENTAL AGREEMENT FOR THE USE OF CERTAIN REAL
PROPERTY AT THE NORTHERN COLORADO REGIONAL AIRPORT FOR A
REGIONAL TRAINING CAMPUS
THIS INTERGOVERNMENTAL AGREEMENT FOR THE USE OF CERTAIN REAL
PROPERTY AT THE NORTHERN COLORADO REGIONAL AIRPORT FOR A REGIONAL
POLICE TRAINING CAMPUS (the "Agreement") is made and entered into this day of
2019, between THE CITY OF LOVELAND, COLORADO, a municipal
corporation ("Loveland") and THE CITY OF FORT COLLINS, COLORADO, a municipal
corporation ("Fort Collins") (each referred to as a"City and collectively referred to as "Cities").
WITNESSETH:
WHEREAS, the Cities entered into an Amended and Restated Intergovernmental
Agreement for the.Joint Operation of the Airport, dated January 22,2015,as amended by the First
Amendment thereto dated June 7, 2016 (the "First Amendment") (the Amended and Restated
Intergovernmental Agreement and the First Amendment are collectively the "Airport IGA"),
whereby the Cities agreed, in part,to the joint operation of the Northern Colorado Regional Airport
(the"Airport"); and
WHEREAS,pursuant to the Airport IGA,the Airport is operated jointly by the Cities,With
each City retaining a 50%ownership interest, sharing equally in policy-making and management,
and each assuming responsibility for 50%of the Airport's capital and operating costs; and
WHEREAS, since 2013,the Cities have each contributed a minimum of$177;500 per year
to the Airport operating fund to cover the expense of operating and maintaining the Airport as a
public asset; and
WHEREAS, the Cities each maintain police departments that provide law enforcement
services to their respective citizens and employ police employees who participate in ongoing
training regarding projectile weapons and vehicle use to maintain and improve skills necessary to
perform their police functions; and
WHEREAS, the Cities intend to construct a jointly-owned training facility where each
City's police employees can conduct projectile weapons training and vehicle/driver training(the
"Training Campus"); and
WHEREAS, it is the Cities' intent that the Training Campus will serve as a regional
training facility for several other governmental agencies in and around Colorado's Northern Front
Range, including the Larimer County Sheriff, the Weld County Sheriff, the Greeley Police
Department, the Windsor Police Department, the Colorado State University Police Department,
and others; and
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WHEREAS, pursuant to Section 29-1-203 of Colorado Revised Statutes, the Cities are
authorized by law to contract with one another to provide for the joint exercise of any function,
service, or facility lawfully authorized to each of the Cities if such contracts are approved by their
governing bodies; and
WHEREAS,the Cities intend to utilize an available portion of Airport real property for the
construction and operation.of the Training Campus; and
WHEREAS, the United States of America, acting through the Federal Aviation
Administration, released certain Airport real property from the requirement that it be used for
aeronautical development purposes under certain grant agreements by an Instrument of Release
from Aeronautical Use, dated July 28, 2015 (the "FAA Release"), attached hereto as Exhibit A
and incorporated herein by reference;and
WHEREAS, the Cities agreed in the FAA Release to lease the released property in
accordance with the FAA Release, FAA Policy and Procgdures Concerning the Use of Airport
Revenue, as well as the airport's FAA Grant Assurances (less the aeronautical use requirements),
to include leasing the released property at fair market value and ensuring the proceeds are
reinvested back into the maintenance and operation of the Airport; and
WHEREAS, the Cities jointly own the Airport real property and will use the released
property for the Training Campus, and intend this Agreement as their means to comply with the
express language of the FAA Release; and
WHEREAS,the Cities desire to treat the annual$177;500 equal contribution to the Airport
as a fair market value rental rate for purposes of the requirement of the FAA Release with the
intent that amount will be reinvested into the maintenance and operation of the Airport; and
WHEREAS, the annual $177,500 equal contribution results in a total rental rate of
approximately$0.186 per square foot per year; and
WHEREAS, the standard rental rate for unimproved, small tracts at the Airport is $0.28
per square foot and the standard rental rate for unimproved,large tracts at the Airport is at or below
the rate identified herein for the Training Campus; and
WHEREAS, as evidence of the fair market value of the rental rate in this Agreement, the
Cities recently executed a lease agreement with Discovery Air, LLC ("Discovery Air Lease") for
a large tract of unimproved land on Airport property. The annual rental rate for the Discovery Air
Lease is $0.15 per square foot for ten (10).years and $0.25 per square foot for years eleven (11)
and onward,after an initial 24-month due diligence period; and
WHEREAS, the Cities, in consultation with the Director of the Airport, have determined
that the rental rate of$0.186 per square foot for the Training Campus is an appropriate fair market
value rental rate, equivalent to the rental rate for other portions of the Airport property.
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NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS, IT IS
AGREED by and between the parties hereto as follows:
1. Use of Released Property. The Cities agree that the real property, more particularly
described in the legal description attached as Exhibit B("the Released Property'), shall be
used and occupied for the construction and operation of the Training Campus, as detailed
in the design documents, attached hereto as Exhibit C and incorporated herein by this
reference. The Released Property contains 44.068 acres or approximately 1,906,867 square
feet. The use permitted herein shall be limited to uses related to the Training Campus in
accordance with the Intergovernmental Agreement for the Construction, Ownership,
Operation, Maintenance and Management of the Regional Training Campus executed
between the Cities,as may be amended from time to time. Any other uses of the Released
Property must be in accordance with the Requirements for the FAA Release.
2. No Interference. The Cities agree that the use of the Released Property will be limited as
necessary to eliminate construction, use, and operations of the Training Campus that
interfere with (1) the right of flight for the passage of aircraft in the airspace above the
surface of the Airport real property;(2) the right to cause such noise in the airspace as is
inherent in the operation of aircraft now or hereafter used for navigation of or flight in the
said airspace;(3)the right to use said airspace for landing on,taking off from, or operating
on the Airport. No use shall be permitted on the Released Property that otherwise
constitutes an airport hazard.
3. Fair Market Value Rental Rate.
A. As the fair market value referenced in the FAA Release, the Cities agree that the
rental rate shall be $0.186 per square foot per year, in the total amount of Three Hundred
Fifty-Four Thousand Six Hundred Seventy-Seven Dollars and 26/100 ($354,677.26), fifty
percent (50%) of which ($177,338.63) shall be paid to the Airport by each City in equal
payments on a quarterly basis no later than March 31, June 30, September 30, and
December 31 annually, subject to the escalator provided in subsection B of this Section 3:
B. Commencing on the first day of the month following the first anniversary of the
Effective Date (defined below), and each year thereafter during the remainder of the term;
the annual rent shall be adjusted by multiplying the annual rent payable in the next
preceding year by a fraction, the numerator of which shall be the C.P.I., as hereinafter
defined,published for the previous month of December and the denominator of which shall
be the C.P.I. published for the month of December which preceded the month used as the
numerator. The term "C.P.I' as used herein shall mean the Consumer Price Index for all
Urban Consumers (CPI U);All Items,for Denver-Aurora-Lakewood, CO as published by
the Bureaus of Labor Statistics of the United States Department of Labor, 1982-84 base =
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100. In the event the base year is changed, the C.P.I. shall be converted to the equivalent
of the base year 1982=84 = 100. In the event the Bureau of Labor Statistics ceases to
publish the C.P.I.,an equivalent or comparable economic index shall be used.
C. In addition to any other remedies provided in this Agreement, in the event that a
City does not pay its contribution to the Airport within ten (10) days of the due date, that
City agrees to pay a late charge of$50.00 for each such late payment, and default interest
shall accrue on such payment from the date the payment was due,at a rate of twelve(12%)
per annum.
D. The rent,and any late charges and interest, shall be applied to the maintenance and
operation of the Airport. This payment shall be separate from, and in addition to, any other
funding obligations the Cities may have under the Airport IGA, as amended. The Cities
intend that this Agreement and the Cities' payment of the rent to the Airport for its use
shall be in accordance with and satisfy the FAA Policy and Procedures Concerning the Use
of Airport Revenue and the Airport's FAA Grant Assurances (less the aeronautical use
requirements),to the extent applicable.
4. Term of Agreement; Modification, Extension. This Agreement shall take effect at 12:01
a.m. on the date last signed below (the "Effective Date") and expire at 1159 p.m. on the
last date of the calendar month in which occurs the day immediately preceding the fiftieth
(501h)anniversary of the Effective Date, unless earlier terminated as provided herein. This
Agreement may be modified only by the written agreement of the parties hereto. If the
Cities desire to continue to use the Released Property for the Training Campus at the
expiration of the initial term,the Cities may execute a new agreement of no more than fifty
(50) years.
5.. Termination for Aviation Development Purposes. The Cities agree that, in the event the
Released Property shall be needed for aviation development purposes as contemplated in
the FAA Release, the Cities shall terminate this Agreement, and all aeronautical terms,
conditions, reservations and restrictions identified in FAA Grant Agreements numbered
FAAP 9-05=016-801 and 9-05-03&C501, ADAP 7-0&0023-01 and 5-08-0023-02 through
5.08-0023-05, and AIP 3-08-0023-01 through AIP 3-08-0023-34 shall be reinstated.
6. Status as Governmental Entities. The parties are governmental entities;therefore,all direct
and indirect financial obligations of each party under this Agreement shall be subject to
annual appropriation pursuant to Article X, Section 20 of the Colorado Constitution, the
parties' respective charters and ordinances, and applicable law. This Agreement and the
obligations of the parties hereunder do not constitute a multi-year fiscal obligation and are
expressly contingent upon the parties' respective governing bodies budgeting and
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appropriating the funds necessary to fulfill the parties' respective obligations. If a party
does not appropriate funds sufficient to meet its obligations under this Agreement, such
non-appropriation will constitute a termination by such party, effective on January 1 of the
party's fiscal year for which the funds are not appropriated regardless of any notice period
required under this Agreement. The non-appropriating party shall give written notice of
such non-appropriation of funds to the other party not later than thirty (30) days after the
non-appropriating governing body approves its annual appropriation ordinance for any
calendar year for which the ordinance does not include funding to meets its financial
obligations for the ensuing fiscal year.
7. Notices. Any notice,request,demand,consent,or approval,or other communication required
or permitted hereunder, shall be in writing and shall be deemed to have been given when
personally delivered, faxed, emailed, or deposited in the United States mail with proper
postage and addressed as follows:
If to Loveland:
Chief of Police City Manager
Loveland Police Department with a copy to: Loveland City Attorney
810 E. 10`f'Street City of Loveland
Loveland, CO 80537 500 E. 3rd Street
Loveland,CO 80537
If to Fort Collins:
Chief of Police City Manager
Fort Collins Police Services with a copy to: Fort Collins City Attorney
2221 S.Timberline Road City of Fort Collins
Fort Collins,Colorado 80525 300 LaPorte Avenue
P.O. Box 580
Fort Collins, CO 80522
8. Relationship of the Parties: Non-liability of individuals; Benefit; No Assignment. The
parties enter into this Agreement as separate, independent governmental entities and
maintain such status throughout. No officer, agent or employee of either party shall be
charged personally or held contractually liable by or to the other party under any term or
provision of this Agreement or of any supplement, modification or amendment to this
Agreement because of any breach thereof, or because of his, her or their execution or
attempted execution of the same.This Agreement is made for the sole and exclusive benefit
of the Cities, any permitted successors and assigns. The parties covenant and agree that
they will not assign this Agreement, any interest or part thereof or any right or privilege
pertinent thereto, without (1)written consent of the other party first having been obtained;
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(2) satisfaction of any and all grant assurances; and (3) compliance with all applicable
federal and state regulations related to the operation of the Airport.
9. Liability. Each party shall be responsible for any and all claims, damages, liability and
court awards including costs, expenses and attorney fees incurred as a result of any action
or omission of such party or its respective officers, employees and agents in connection
with such party's performance of this Agreement. Notwithstanding anything in this
Agreement to the contrary, nothing herein shall be construed as a waiver of the notice
requirements, defenses, immunities, and limitations of liability the parties and their
respective officers, directors, councilors, employees, volunteers, and agents may have
under the Colorado Governmental Immunity Act, C.R.S. §§ 24-10-101, et.seq., or to any
other defenses, immunities, or limitations of liability available to the parties by law.
10. Entire Agreement/Ambiguities. This Agreement embodies the entire agreement of the
parties. The parties shall not be bound by or be liable for any statement, representation,
promise, inducement or understanding of any kind or nature not set forth herein. No
changes,amendments or modifications of any of the terms or conditions of this Agreement
shall be valid unless reduced to writing and executed by both parties. In the event of any
ambiguity in any of the terms of this Agreement, it shall not be construed for or against
any party hereto on the basis that such party did or did not author the same.
11. Applicable Law; Severability. The laws of the State of Colorado shall be applied in the
interpretation, execution and enforcement of this Agreement, and venue for any action
arising hereunder shall be Larimer County, Colorado. Any provision rendered null and
void by operation of law shall not invalidate the remainder of this Agreement to the extent
that this Agreement is capable of execution.
12. No Third-Party Beneficiaries. This Agreement is made for the sole and exclusive benefit
of the "parties hereto and shall not be construed to be an agreement for the benefit ofany
third party or parties and no third party shall have a right of action hereunder for any cause
whatsoever.
13. Counterpart Sienatures. The parties agree that counterpart signatures of this Agreement
shall be acceptable and that execution of the Agreement in the same form by each and
every party shall be deemed to constitute full and final execution of the Agreement.
IN WITNESS HEREOF,this Intergovernmental Agreement has been executed that day and year first
above written.
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THE CITY OF LOVELAND, COLORADO
A Municipal Corporation
ATTEST:
By:
Stephen C. Adams, City Manager
City Clerk
APPROVED AS TO FORM:
Loveland City Attorney
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THE CITY OF FORT COLLINS,COLORADO
A Municipal Corporation
ATTEST:
By:
City Clerk Mayor
Printed name
APPROVED AS TO FORM:
Assistant City Attorney
Printed name
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