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HomeMy WebLinkAboutEconomic Advisory Commission - Minutes - 06/18/2014Minutes City of Fort Collins Economic Advisory Commission June 18, 2014 CIC, City Hall 11:00am–1:30pm For Reference Blue Hovatter, Chair 493-3673 Karen Weitkunat, Mayor & Council Liaison 416-2154 SeonAh Kendall, Staff Liaison 416-2164 Dianne Tjalkens, Minutes 221-6734 Commission Members Present Commission Members Absent Blue Hovatter, Chair (left 1:00) Sam Solt Ann Hutchison (arrived 12:30) Glen Colton Denny Otsuga Jim Clark Michael Rechnitz Michael Kulisheck (Mike) Linda Stanley (arrived 11:15) Guests Dale Adamy, citizen Staff Present Staff Absent SeonAh Kendall, Economic Policy & Project Manager Dianne Tjalkens, minutes Ginny Sawyer, Policy and Project Manager Meeting called to order at 11:07am. Logistics Approval of minutes Jim Clark moved to approve the May 21, 2014 minutes. Michael Kulisheck seconded. Motion passed unanimously, 5-0-0. (Linda and Ann arrived after motion) Public Comment—None. Commission Member Updates • SeonAh and Blue explained that MSNBC interviewed downtown businesses including Perennial Gardener, Cupboard, Crooked Cup, etc., for a series on small businesses. It will air next week. SeonAh will send information to the commission. • Jim added that he is seeing an increase in media activity. There was a fun piece on Buzzfeed about Fort Collins this week. His office is starting the tourism ambassador program and will begin trainings in November. He saw in March, April and May businesses were busy and overall web traffic was up, but after Memorial Day that all dropped. They wonder if legalized marijuana is having an impact, and are doing perception studies. Early results show lower income is positive and with higher incomes the acceptance falls. In tourism, it doesn’t take much to push someone to another place for a year. 1st half of June, downtown business is off by 20%. • SeonAh added that she has seen downtown business decline but Front Range Village has not. • Jim added that the flooding may be having an impact statewide. He has also had a lot of questions about marijuana. The governor has told the State Tourism Office they may not touch the issue. • Denny asked for the TV interviews, who is managing or shepherding, or selecting companies. SeonAh said she does not know. MSNBC only contacted the City this morning. Jim said MSNBC is doing this on their own. Denny said he would like them to interview technology companies. Jim said it was only retail and restaurant. He added that the crews that get sent to the assignments are generally local and know the area. • Michael Rechnitz went to the first Climate Action Plan citizen advisory committee. There were good presentations by Rocky Mountain Institute (RMI) and Platte River. They are trying to get to 80% reduction in emissions from 2005 by 2030. RMI sees this as possible. There will be incredible economic effect on trying to reach that goal in that timeline. He found it interesting that the emissions reductions from Platte River did not match what Fort Collins is trying to achieve. Platte River sells surplus power. It is interesting to tout reduction of emissions when it is funded by dirty power. Platte River will continue to make dirty power and sell it though they are working on reduction of emissions as well. If we are promoting our reductions, the first thing you will find is that Platte River is still burning coal. • Mike Kulisheck said we have to ask the City the reasons for adopting these carbon goals. Is it for improved carbon emissions for the whole state or is it an issue of values? If we aren’t expanding the coal use as we grow and feed energy needs without coal, this is beneficial. Linda said we may be stopping another coal fired plant from being built. • Michael said as we control our emissions, Platte River will hopefully reinvest the funds from sales of surplus into cleaner sources. • Jim asked about natural gas conversion. Michael Rechnitz said the presentation focused on their current sources and goals. • Linda said she read in the minutes about You+2 and she feels that it has improved our neighborhoods. She lives in west central and many felt they were under assault for a long time since there was no regulation. She thinks You+3 would make a big difference. The houses are more affordable now and families are moving back in. There are now young children in the neighborhood and it has helped affordability for single family residences. Next Month’s Agenda: Blue would like conversations on the Triple Bottom Line and Long Term Financial Planning update. • SeonAh said there are many City subgroups working on this topic. She can invite the program manager, Bonnie Pierce, to the meeting. There have been some questions about who will be testing the tools. • Blue added that the commission would like to create a metrics around sustainability and make a recommendation to Council at the end of the year. This was to do due diligence about what is already happening. We would like to start with the current state, and then dive into detailed presentations. • Denny added that he would like to hear what people are talking about and thinking about rather than specific tools. • SeonAh will invite Bonnie to the July meeting. It will most likely take the whole meeting. Staff Updates—MOR— • Jim said sales tax is up 6%. There has been recovery in the hotel industry. There are oil and gas workers staying here. We anticipate this to last another year or two. He also hears there is a better business climate for construction, particularly in multifamily. o Blue wonders if the lodging tax gets assessed to vacation rental by owner. Jim said by law yes. o Ginny said staff is contacting those who are advertising to make sure they are paying taxes and are registered. They have a follow up commitment to Council to see if they get nuisance complaints from those addresses. o Jim said the new one is Air B&B, which he considers couch surfing. People are renting out a room or whole house. Home Away just got sued by Breckenridge. There are alternatives to traditional lodging coming into play which brings up taxes, insurance, safety, etc. As hotel rates rise, we see more people using these new options. The downside is there is a lot of fraud going on, and damages. • SeonAh gave the following update: o Staff has been doing a labor force study from the employer side. Why are positions empty? What does training look like? Looking at commuting patterns as well. SeonAh can get the information to the commission. It is a cooperative project throughout Larimer County. Agenda Item 1: Overview of the Renewal of the 1/4 Cent Community Capital Improvement Program and the 1/4 Cent Street Maintenance Tax—Ginny Sawyer Ginny said since September there has been project refinement, and staff decided to visit each BFO team to rate each project based on their strategic objectives. Staff hopes to see trending data. Selection will happen in April. Deadline for ballot language is February 3. She hopes to have this complete in January to allow for a citizen committee and marketing. One main message is that these are renewals. For street maintenance staff is seeking a 15 year cycle, instead of 10. Staff has a list of projects that come in at $370 million. A ten year projection for revenue is around $75 million. There may be polling around street maintenance or a BOB2 package. Staff will make recommendations to get to a shorter list, and then go in August and September for public outreach with an online component to prioritize. In September staff return to Council to discuss public input and get the list to under $100 million. By November staff will have recommended packages. Board members can give input as a general citizen online or through direct feedback as a group. The commission will have opportunities for input prior to the September work session, and prior to the November work session for potential packages. Comments/Discussion: • Linda said for street maintenance, you can add “in perpetuity” to extend the tax without a sunset. Street maintenance is very popular. • Linda asked about public input. Staff will take this information to groups. How do you make sure to get the average citizen’s input? For citizens who may not be as involved, they pay taxes, and she doesn’t see them participating as much. Ginny said we still tend to look for a cluster somewhere. They go to high schools, farmers markets, La Familia, etc. They are trying to reach a variety of demographics. 250+ people have gone through the CityWorks forum and they are from all over the community. She brings them in to the conversations as they are a diverse group. Staff is also looking at a text application for surveys. It is a rolling survey that is phased. • Jim said we have addresses for citizens, but how many email addresses do we have? Ginny said we are not allowed to use them. But if someone has subscribed to receive a monthly report, we can add something to that. Jim said the insert in the utility bill used to be a good tool. Ginny said it is not as effective now that many pay their utilities online. • Jim asked about visiting churches. Ginny said there has not been specific outreach to churches. Jim said the visions of the City in his church and in his office are very different. Many churches would be happy to have a presentation. They won’t take positions, but could have informational sessions. You hit many different populations and get diversity. Mike Kulisheck said if you use churches, and the utility bill, and other venues, always post the link to the poll, and don’t clog it with biased groups. You could have a separate poll for those who are more engaged/active in government. Survey Monkey is a good tool, which is free. • Ginny said staff could have posters about community by design. Mike said that language may be intimidating. Ask for an opinion instead, and ask people to be a part of the conversation. Jim added it’s “ask versus tell.” • Jim added that City departments are out marketing their initiatives. That which gets marketed is likely to get a better response. You need to balance against the insider game. Michael said to get a broader perspective. Blue suggested having a text app send a question to participants every day or so, not all in a row. Jim said with gentrification in the community, most senior citizens don’t text. There needs to be an alternative. • Blue also suggested handing people who attend events a method for polling to get their feedback right away. • Ginny said she has proposed community forums for September. • Mike Kulisheck asked how the tax works. What if it comes in higher than anticipated? Linda said it says in the ballot language what will happen with additional funds. When BOB had ¼ cent for open space, any surplus went to land conservation. Mike asked if you could put in $90 million in projects so if it comes in higher you have priorities for surplus funds. • Michael said a trail project in the packet had a large spread. • Ginny read the ballot language. Linda said it is important to talk to the lawyers because the language no longer needs to be structured this way. Ginny said there is a full resolution attached with amounts for each project. Mike said it is a legal issue whether you are tied to those dollar amounts. • Denny said the perpetuity issue brings up red flags in contracts. • Blue would like to get more information on specific projects in order to give recommendations. • Ginny will email a chart showing where tax dollars are spent to the commission. If there are items on the project list that the commission is passionate about, they can weigh in with Council before the July 22. • Linda said with capital improvements, she is a proponent for ensuring our neighborhoods don’t have neglect. In the older central areas, there could be a lot done to beautify them and make it easier to get around, including pedestrian bike connections. Everything doesn’t have to be about helping economic development or something brand new. She is researching what this could look like. Ginny says she is unsure there is an offer on the table that meets what she is talking about. • SeonAh said she sits on a budget team and wonders if it’s appropriate to ask the commission for input. Ginny is concerned about not having given that opportunity to every board. There will be other venues for individual participation. If the commission wants to weigh in now, it should be broad and high level. Some projects will drop off before the work session. • Mike Kulisheck asked if Ginny could put something online and email it to all of the boards and collect positions on all projects currently in the package. You could look at preferences by board. • Michael Rechnitz added he would like to see the input from all of the boards. It might be useful to evaluate what other boards find as priorities so we can focus better. Ginny wondered if there could be survey followed up by a board and commission meeting on the results. • Jim said one the commission’s main jobs is to advise Council on policy that affects the economy and wellbeing of Fort Collins. It is important for us to weigh in on what will have economic benefit. Linda said it would take a study with a professional economist to determine economic benefits. Jim said it’s difficult to draw the connection between lifestyle and economics. Linda said things like trails and natural areas have economic benefits, but it’s extremely difficult to measure. • Ginny will send the projects to the commission to rate with an economic perspective, and the commission will have a discussion. Blue said if the commission isn’t ready to step up and make recommendations, we are ineffective as a board. If we find ones that are higher value we can bring in more detail. On a tax initiative we need to be able to make a recommendation. Jim said we know what has value, and based on his experience he can understand what projects will have positive economic impact. • SeonAh will collect the commission’s data and put the scores together. Mike Kulisheck added that members should consider the cost of the projects in making decisions. Ginny said to rate each project high, medium or low priority. Then the commission can look at the high priority list, and then discuss amounts. SeonAh will create an Excel spreadsheet to make it easier. Denny suggested having limits to reduce discussion. Blue added most of the work can happen via email and the discussion can take the entire August meeting. • Denny suggested speakers filling out a form regarding the subject of their presentations so the commission can know if the presentation is informational or if a recommendation is requested. SeonAh said work session items will be informational rather than ready for recommendation. • Michael would like to create a list, do research on the impacts, then make a recommendation on whether the ¼ cent tax is worthwhile. • Linda said she hesitates to focus on “economic impact” when it could mean jobs to some and tax revenue to others. She would like to focus on the community’s economic health. Michael said we are already close to the top in taxes. Linda said we are more in the middle. • Blue said he agrees there is a step by step process that ends with a recommendation on the ¼ cent tax with a list of what should be included if the commission approves of the tax extension. • Mike Kulisheck said he also reacts to “economic impact,” he will be taking a bigger view of economic health. We won’t be getting more data to understand these things. We will have to make our recommendations based on the packets presented. Michael Rechnitz said each member can find more information as s/he sees fit. Blue said the commission can request additional data on specific projects. • Jim said we need to weigh in on the economic value of the projects. • SeonAh will send a matrix, and compile the votes and dollar values. Michael said to rate all 1, 3, or 5 and create an additive scale. • Ann asked if this group is interested in exploring anything aside from what is on the list. The process to get to the list was appropriate, but it may not get the real community piece. Jim and Linda said yes. Linda said it is a staff generated list. Michael added that there was community input. Agenda Item 2: Economic Health Budget Offers for 2015/2016—SeonAh Kendall SeonAh specified that offers she will be discussing are only the economic health offers from her office. There are other economic health offers that are not included. She would like a recommendation from the commission. Citizens can still vote online through June 22. All the budget teams have given results on online voting and public outreach last week. Teams are in Round 2, so refinements have been made or pulled based on what budget allocations will look like. At the beginning of the year there was a strategic planning process for each. All budget offers fit into one of the strategic objectives. Offer 46.1 is for the Economic Health Office Programs and Services. This includes leadership, administrative support and a .25 economic health analyst; business retention and expansion; innovation ecosystem (with support for RMI); FNL; and Keep Fort Collins Great (winter market, Shop Fort Collins marketing, etc.). Enhancement Offer 46.3 is for KFCG for a reserve fund to support small to medium businesses to stay, expand, or relocate in Fort Collins. The funds will be used to backfill fee rebates and match grant funding. Enhancement Offer 46.5 is for a land readiness analysis and strategic plan. This would analyze current and future demand and determine how the City can adjust its supply to meet demand, as well as the timeline. Enhancement Offer 46.6 is to develop a plan for the highest and best use of Block 33 (the trolley barn). The old plan is obsolete due to newer development. This may be folded into the Downtown Plan. Enhancement Offer 46.7 is to support Larimer Small Business Development Center. Historically the City has not contributed except for sponsorships and cluster funding. They are requesting $40,000 annually because 90% of the businesses they support are in Fort Collins. Eventually this would move into the Core Offer. Enhancement Offer 46.9 is to cover additional costs of conversion of a contractual employee to classified. Enhancement Offer 46.10 is to move an hourly employee to contractual for the Industry Cluster Coordinator position. Comments/Discussion: • Ann asked how block 32 and block 33 work together, since block 32 is scheduled for the new City Hall development. SeonAh said these have not been discussed in conjunction. She will find out more and let the commission know. • Denny asked if 46.10 is connected to RMI funding. SeonAh said we have an annual contribution to RMI; this is to manage our program, engage emerging clusters, and manage cluster funding. Ann added this assumes RMI will continue to fund leaders for each of the clusters. They will provide the staff for administration of the bioscience cluster. • SeonAh will send these electronically so once they go to Council the commission can make a recommendation. There are additional notes and more information available on the Budget website. SeonAh will look at the timeline for when the Budget Lead Team will make recommendations to Council to determine when the commission should vote. May vote via email. • Jim asked why the airport is in Economic Health instead of transportation. SeonAh said it matches where it lies in Loveland. She sits on the airport team and it has gone to a private citizen group that is working on strategies for if we don’t recruit another large carrier or have Allegiant come back. • Jim said it is unlikely we will get them back. The airport’s best use will be for cargo. DIA meets the passenger needs. • Ann said it is an important tool, if we take advantage of opportunity as it comes, if we focus on aviation for business. • Jim said the guarantees to airlines in the mountain towns are getting out of control. SeonAh said the citizen team is looking at a variety of options and is a mix of private industry from all of northern Colorado. • Jim said he has spoken to towns that pulled in Allegiant and there have been issues. Meeting Adjourned: 1:38pm Next Meeting: July 16, 2014 11:00am–1:30pm, City Hall, CIC Room Approved by the Board on July 16, 2014 Signed ______________________________________ 7/21/14 Dianne Tjalkens, Administrative Clerk II Date