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Home My WebLink AboutMINUTES-02/16/1999-RegularFebruary 16,1999 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council -Manager Form of Government Regular Meeting - 6:00 p.m. A regular meeting of the Council of the City of Fort Collins was held on Tuesday, February 16, 1999, at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered by the following Councilmembers: Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Staff Members Present: Fischbach, Krajicek, Roy. Citizen Participation Gina Janett, 730 West Oak, expressed thanks to the Council and the City for their actions with regard to the Housing Authority. Ragan Adams, 1500 West Mountain Avenue, spoke concerning integrity and ethical concerns regarding City government and suggested an approach known as collaborative community leadership. Citizen Participation Follow-up Councilmember Mason thanked Ms. Janett for her supportive comments. Councilmember Kneeland stated that the Council is committed to collaborative problem solving and noted that the City is launching a Community Dialogue process. Councilmember Bertschy commented regarding Ms. Adams' concerns. Mayor Azari thanked Ms. Janett for her comments and responded to Ms. Adams' concerns. Agenda Review City Manager Fischbach noted that item 9A Second Reading of Ordinance No. 17, 1999, Vacating a Portion of the Right-of-way for Stetson Creek Drive as Dedicated on the Stetson Creek P. U.D., First Filing Plat has been added to the Consent Calendar. City Manager Fischbach noted that revised Ordinances have been prepared for item #16 First Reading of Ordinance No. 25, 1999, Recognizing an A bandonment ofDitch and Pipe Line Rights-of- 74 February 16, 1999 Way in Exchange for the Granting of Two Water Line Easements, item #17 First Reading of Ordinance No. 27, 1999, Amending Chapter 23 of the City Code by Adding Provisions Pertaining to Natural Areas, and item #18 First Reading of Ordinance No. 28, 1999, Amending Chapter 23 of the City Code by Adding Provisions Pertaining to Parks, Trails, and Recreation Areas. Robert McCormick, local attorney, pulled item #17 First Reading of Ordinance No. 27, 1999, Amending Chapter 23 of the City Code by Adding Provisions Pertaining to Natural Areas from the Consent Calendar. CONSENT CALENDAR 7. Consideration and approval of the Council meeting minutes of February 2 1999 8. Second Reading of Ordinance No. 15 1999 Appropriating Prior Year Reserves Ordinance No. 15, 1999, which was unanimously adopted on First Reading on February 2, 1999, reappropriates the 1998 funds for the same uses in 1999 as were originally approved by Council in 1998. 9. Second Reading of Ordinance No. 16, 1999 Approving the Terms of the Lease Agreement for 101 Remington Street, Suites F, M, O and O. Ordinance No. 16, 1999, was unanimously adopted on First Reading on February 2, 1999, and authorizes the terms of the lease for 101 Remington Street, and permits the Larimer County Treasurer's office to remove the Leased Property from the tax rolls in accordance with Section 31-15-(801 and 802) C.R.S. 9A. Second Reading of Ordinance No. 17, 1999 Vacating a Portion of the Right-of-way for Stetson Creek Drive as Dedicated on the Stetson Creek P U D First Filing Plat Ordinance No. 17,1999, was unanimously adopted on First Reading on February2,1999 and vacates a portion of the street right-of-way for Stetson Creek Drive. 10. Second Reading of Ordinance No. 18 1999 Appropriating Unanticipated Revenue in the Transportation Services Fund for Safety Improvements to 18 Traffic Signals on the College Avenue Corridor. The City of Fort Collins successfully applied for Federal Highway safety dollars in 1998. Traffic Operations applied for $72,600 that would be used for upgrading eighteen (18) traffic signals on the College Avenue Corridor from Cherry Street to Boardwalk. Ordinance No. 18, 1999, was unanimously adopted on First Reading on February 2, 1999. 75 February 16, 1999 11. Items Relating to Affordable Housing_ A. Second Reading of Ordinance No. 19,1999, Revising the Definitions for "Affordable Housing Project" and "Affordable Housing Unit," Revising the City's Development Review Fee Waiver Provisions for Affordable Housing and Revising the City's Impact Fee Delay Program for Affordable Housing. Ordinance No. 19, 1999, which was unanimously adopted on First Reading on February 2, 1999, revises the definitions for "Affordable housing project," "Affordable housing unit for rent" and "Affordable housing unit for sale" in the Land Use Code, the Transitional Land Use Regulations, and the City Code. It revises Fort Collins' Development Review Fees Waiver for Affordable Housing in both the Land Use Code and the Transitional Land Use Regulations. Finally, this Ordinance revises Fort Collins' Impact Fee Delay Program for Affordable Housing in the City Code. B. Second Reading of Ordinance No. 20, 1999, Repealing Article IX of Chapter 5 of the City Code Regarding the Offset of Impact Fees for Affordable Housing. Ordinance No. 20, 1999, which was unanimously adopted on First Reading on February 2, 1999, eliminates the Rebate Program to eventually be replaced with a competitive process, except for eleven (11) projects that have received preliminary planning approval and have financially relied on receiving a rebate of fees from the City. 12. First Reading of Ordinance No. 21, 1999 Appropriating Unanticipated Revenue in the Cultural Services and Facilities Fund Art in Public Places Reserve Account for Payment Toward the Sculpture Commemorating the 1997 Flood Fort Collins artist Jack Kreutzer's commemorative sculpture titled "Human Spirit" will consist of a group of 3 life-sized bronze adult figures holding a child and a dog. The figures depict a rescue worker along with a man, woman, and child wearing lifejackets linking arms to support one another. This sculpture is about the community's spirit, not only that night, but during the many days, weeks, and months that followed the Flood of 1997. The Commemorative Sculpture Selection Subcommittee was comprised of two Art in Public Places Board members; community members who were involved in the rescue, relief and counseling efforts; a student and professor from Colorado State University; and representatives from the Water Board and Parks and Recreation Board. At its August 20, 1998 meeting, the Art in Public Places Board reviewed and approved the Committee's selection. The Council previously appropriated $13,000 in initial donations for the project, and this second appropriation will allow the artist to continue working toward completion of the sculpture. 76 February 16, 1999 13. First Reading of Ordinance No. 22,1999 Appropriating Unanticipated Revenue and Authorizing the Transfer of Appropriations Between the Storm Drainage Fund Dry Creek Improvements Proiect and the Storm Drainage Fund Colorado Water Conservation Board Grant This Ordinance will appropriate a $52,689 grant from the Colorado Water Conservation Board (CWCB). The grant will be used for engineering services for the joint project with Latimer County on the Dry Creek Flood Diversion Project. Staff applied for funds from the CWCB to assist in designing the project. Recently staff learned that the grant had been awarded. In order to utilize the grant, the City must first expend the funds for the project and then be reimbursed. Without the grant, funds would have been used from the Dry Creek Project budget. 14. First Reading of Ordinance No. 23, 1999 Amending Section 2-203 of the City Code to Add a New Function of the Cultural Resources Board. The Cultural Resources Board is requesting an amendment to Section 2-203 of the City Code to add an additional function. The Board has recommended this change to recognize a role for the Board in cooperating with community and citizen groups in promoting cultural development in Fort Collins. 15. Hearing and First Reading of Ordinance No. 24,1999 Amending the Zoning Man of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Lemma Avenue 3rd Annexation. This is the zoning of property that was annexed as the Lemay Avenue 3rd Annexation on January 19, 1999. The property is approximately 2.00 acres in size, located on the east side of North Lemay Avenue, between East Lincoln Avenue and East Vine Drive. The property is currently vacant. The proposed zoning for this property is I -Industrial. APPLICANT: City of Fort Collins OWNER: Norman L. Royval 3739 North County Road 13 Fort Collins, CO 80522 77 February 16, 1999 16. First Reading of Ordinance No. 25, 1999 Recognizing an Abandonment of Ditch and Pine Line Rights -of -Way in Exchange for the Granting of Two Water Line Easements The Water Utilities staff was originally approached in 1990 by a property owner requesting that the City vacate a strip of right-of-way adjacent to this property. As this request was being circulated, Cultural, Library and Recreational Services ("CLRS") identified the strip as a potential alignment for the Poudre River Trail; therefore, the request was denied. Since that time, CLRS eliminated this alignment from consideration for the trail system due to safety reasons as it approached Overland Trail Road. Recently, a contract purchaser of an adjacent property requested that the above -mentioned strip of land along with a pipeline right-of-way be abandoned as they affect his land purchase. He asserts that they have not been used for the intended purpose since 1906. The conveyance documents contain language similar to the following:... "provided that in case the said Town, its successors and assigns shall permanently abandon said line, the same to revert to and become reinvested in said Grantor, his/her heirs and assigns". During research, staff discovered the two existing waterlines crossing contract purchaser's property were not contained in recorded easements. The contract purchaser has agreed to grant to the City the water line easements in exchange for recognition by the City that 1906 was the date of abandonment for the rights -of way. After researching the conveyance documents, staff recommends approval of contract purchaser's proposal. 17. First Reading of Ordinance No. 27, 1999 Amending Chanter 23 of the City Code by Adding Provisions Pertainin¢ to Natural Areas. These proposed regulations would govern human behavior in City -owned natural areas and are an important part of staff s efforts to protect the City's significant investment in natural areas. Without these provisions, the City would, in many instances, have no way to enforce activity restrictions necessary to keep wildlife and vegetation from being negatively impacted, and in some cases, destroyed. Only six of these provisions are new. The rest are either (1) similar to Parks Rules and Regulations or other existing regulations or (2) were reviewed by Council (and by the public) when the "General Management Guidelines for City -Owned Open Spaces and Natural Areas" ("Guidelines") was approved in 1994. A couple of the provisions have been of particular interest to the public: (1) the provision, from the "Guidelines," requiring horses to remain on trails, or within a specified distance of trails, in natural areas; and (2) the new provision providing for permits to allow certain activities, such as training of Search and Rescue dogs off leash and off trail on certain natural areas under Section 23-193 (e). Council also had concerns about other aspects of the m February 16, 1999 proposed Code changes. These concerns were addressed at Council's February 9 Study Session. 18. First Reading of Ordinance No. 28.1999 Amending Chanter 23 of the City Code by Adding Provisions Pertaining to Parks. Trails. and Recreation Areas Section 23-201 of the City Code provides that the Council may control the public's use and enjoyment of City parks, golf courses, trails, and open spaces through rules and regulations adopted by Council by ordinance. Pursuant to Ordinance No. 62,1988, the Council adopted various rules and regulations concerning the public use of these parks and recreation areas. These rules and regulations have been very useful in protecting the recreation areas and enhancing the public's safety and enjoyment of them. However, given the fact that over 10 years has passed since these regulations were adopted, staff undertook a comprehensive review of them to determine if changes or additions were necessary. Staff also believed that better enforcement and better notice would be provided by codifying the rules and regulations that pertain to parks and recreation areas in the City Code. By adopting this Ordinance, Council will be updating and improving the regulation of the City's parks, trails, and golf courses. 19. First Reading of Ordinance No. 29. 1999, Amending Chanter 4 of the City Code to Add an Exception to the Prohibition Against Animals at Large and Clarify the Existing Exception for Police Dogs. This Ordinance is a companion to the previous ordinances that establish regulatory provisions for activities in the City's natural areas, and recreation areas. The natural areas ordinance allows the City's Office of Community Planning and Development Services ("CPES") to permit certain activities, including training of search and rescue dogs, off leash on selected sites in the City's natural areas. The parks and recreation areas ordinance allows the City's Office of Cultural, Library and Recreational Services ("CLRS") to permit certain activities, including training of search and rescue dogs, off leash on selected sites in the City's recreation areas. This amendment to the provision relating to animals at large is needed to implement those ordinances. 20. Resolution 99-17 Amending Resolution 98-91 Pertaining to the 1998-99 Community Development Block Grant Program for the City of Fort Collins On June 2, 1998, Council approved Resolution 98-91 which allocated FY 1998-99 Community Development Block Grant (CDBG) Program funding including an amount of $138,222 for Concorde Capital Corporation's Richard's Lake Townhome Project. Capital Corporation has notified the City it is unable to utilize the funds. On January 11, 1999, the Northern Colorado AIDS Project (NCAP) requested the CDBG Commission consider reallocation of the $138,222 to NCAP's Temporary Residence for Asset Development and 79 February 16, 1999 Empowerment (TRADE) House Project. Adoption ofResolution 99-17 would reallocate the CDBG funds to the NCAP TRADE project. 21. Resolution 99-18 Adopting the Recommendation of the Cultural Resources Board Regarding Fort Fund Disbursements. On November 30,1998 revised guidelines for the Cultural Development & Programming and Tourism accounts (Fort Fund) were adopted and approved by the City Manager. These newly adopted guidelines created a three -tiered funding system for organizations that apply for grants from Fort Fund. Tier #1 was established as an annual programming fund for organizations with a primary purpose of presenting three or more public events annually. These groups may apply for funding from Tier #1 each April. Tier #2 allows organizations that are not eligible for Tier #1 support to apply for funding of events that arc not fund- raising in nature and do not generate more than $2,500 in proceeds after expenses. Tier #3 allows organizations that are not eligible for Tier #1 support to apply for funding of events that generate more than $2,500 in proceeds after expenses and are fund-raising in nature. Applications for Tier #2 and Tier #3 grants are accepted each January and June. 22. Resolution 99-19 Making Appointments to the Various Boards and Commissions A vacancy also currently exists on the Retirement Committee due to the resignation of Patti Teraoka. Councilmembers Azari and Byrne reviewed the applications on file and are recommending that Terry VanCleave be appointed to fill the vacancy with a term to begin immediately and to expire on June 30, 2001. A vacancy also currently exists on the Senior Advisory Board due to the resignation of Jeanne Whetstone. Councilmembers Azari and Kneeland conducted interviews from the applications on file. The Council interview team is recommending that George Kress be appointed to fill the vacancy with a term to begin immediately and to expire on June 30, 2001. 23. Resolution 99-20 Making Appointments to the Citizen Review Board At its August 4, 1998 meeting, Council adopted on Second Reading Ordinance No. 76, 1998 creating the Citizen Review Board. The Board was created to: (1) upon the request of the City Manager or the Chief of Police, make recommendations concerning the interpretation of police policies and procedures; (2) review police internal investigations in those circumstances where police officers and community service officers have used deadly force; (3) review police internal investigations in those circumstances where persons have complained about the conduct of police officers and community service officers; (4) offer review for non -City law enforcement agencies operating within the City; and (5) make BE February 16, 1999 annual reports to the City Council and City Manager concerning the activities and recommendations of the Board. Items on Second Reading were read by title by City Clerk Wanda Krajicek. Second Readine of Ordinance No. 15 1999 Appropriating Prior Year Reserves 9. Second Reading of Ordinance No. 16, 1999 Approving the Terms of the Lease Agreement for 101 Remington Street, Suites F. M. O and Q. 9A. Second Reading of Ordinance No. 17 1999 Vacating a Portion of the Right-of-way for Stetson Creek Drive as Dedicated on the Stetson Creek P U D First Filing Plat 10. Second Reading of Ordinance No. 18, 1999 Appropriating Unanticipated Revenue in the Transportation Services Fund for Safety hnprovements to 18 Traffic Signals on the College Avenue Corridor. 11. Items Relating to Affordable Housing, A. Second Reading of Ordinance No. 19,1999, Revising the Definitions for "Affordable Housing Project" and "Affordable Housing Unit," Revising the City's Development Review Fee Waiver Provisions for Affordable Housing and Revising the City's Impact Fee Delay Program for Affordable Housing. B. Second Reading of Ordinance No. 20, 1999, Repealing Article IX of Chapter 5 of the City Code Regarding the Offset of Impact Fees for Affordable Housing. Items on First Reading were read by title by City Clerk Wanda Krajicek. 12. First Reading of Ordinance No. 21, 1999 Appropriating Unanticipated Revenue in the Cultural Services and Facilities Fund Art in Public Places Reserve Account for Payment Toward the Sculpture Commemorating the 1997 Flood 13. First Reading of Ordinance No. 22, 1999 Appropriating Unanticipated Revenue and Authorizing the Transfer of Appropriations Between the Storm Drainage Fund Dry Creek Improvements Project and the Storm Drainage Fund Colorado Water Conservation Board Grant. 14. First Reading of Ordinance No. 23, 1999 Amending Section 2-203 of the City Code to Add a New Function of the Cultural Resources Board. February 16, 1999 15. Hearing and First Reading of Ordinance No 24 1999 Amending the Zoning Man ofthe Cif of Fort Collins and Classifying for Zoning Purposes the Property Included in the Lemav Avenue 3rd Annexation. 16. First Reading of Ordinance No. 25, 1999 Recognizing an Abandonment of Ditch and Pipe Line Rights -of -Way in Exchange for the Granting of Two Water Line Easements 17. First Reading of Ordinance No. 27.1999 Amending Chanter 23 of the City Code by Adding Provisions Pertaining to Natural Areas 18. First Reading of Ordinance No 28.1999 Amending Chapter 23 of the City Code by Adding Provisions Pertaining to Parks. Trails and Recreation Areas 19. First Reading of Ordinance No. 29, 1999 Amending Chapter 4 of the City Code to Add an Exception to the Prohibition Against Animals at Large and Clarify the Existing Exc tion for Police Dogs. 29. Items Relating to the City's Economic Policy. A. First Reading of Ordinance No. 30, 1999, Continuing and Modifying a Temporary Manufacturing Equipment Use Tax Rebate Program For Fort Collins Manufacturers. B. First Reading of Ordinance No. 31, 1999, Repealing Article VII, Chapter 5 of the City Code in Order to Terminate the Development Impact Fee Rebate Program. C. First Reading of Ordinance No. 32, 1999, Repealing Section 24-113(b) of the City Code, in Order to Terminate the Street Oversizing Exemption Program. Councilmember Kneeland made a motion, seconded by Councilmember Wanner, to adopt and approve all items not withdrawn from the Consent Calendar. The vote on the motion was as follows: Yeas: Councilmembers Azari, Bertschy, Byme, Kneeland, Mason, Smith and Wanner. Nays: None. THE MOTION CARRIED. Consent Calendar Follow-un Councilmember Bertschy requested that publications spell out the names ofboards rather than using initials. He noted that appointments have been made to the Citizen Review Board, and the Board will begin to meet and undergo training. 0-Ij February 16, 1999 Councilmember Reports Councilmember Smith reported on the Legislative Review Committee's discussions regarding HB 1280 relating to vested property rights, HB 1185 known as the Responsible Growth Act, several proposed gun bills, proposed legislation relating to tax exemptions, and taxation of internet sales. Councilmember Kneeland reported on the Health and Safety Committee's discussion regarding the training of search and rescue dogs. Councilmember Byrne reported on the Poudre School District Liaison Committee's meeting with Sheriff Jim Alderden and discussions relating to DARE, the School Resource Officer program and concealed weapons permits. Councilmember Smith spoke regarding concealed weapons permits and discussions regarding the planning process for schools. Councilmember Smith reported on discussions of the Metropolitan Planning Organization relating to alternatives for regional transit and the Transportation Area Feasibility Study. Executive Session Authorized Councilmember Smith made a motion, seconded by Councilmember Mason, to adjourn into Executive Session to discuss legal questions. The vote on the motion was as follows: Yeas: Councilmembers Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None. THE MOTION CARRIED. ("Secretary's Note: The meeting adjourned into Executive Session at 6:30 p.m. and reconvened following the Executive Session at 7:00 p.m.) Items Relating to a Citizen Initiated Ordinance Relating to the Mulberry-Lemay Crossing Preliminary P.U.D. (Project #36-96B. Wal-Mart); Resolution 99-21 Adopted The following is staff s memorandum on this item. February 16, 1999 "Executive Summary A. First Reading of Ordinance No. 26, 1999, Approving the Mulberry-Lemay Crossing Preliminary P. U.D. (Project #36-96B), Overturning and Reversing Previous Decisions Denying the Project and Making Certain Findings in Connection with Such Project; -or- B. Resolution 99-21 Submitting a Citizen Initiated Ordinance to a Vote of the Registered Electors of the City at the Regular Municipal Election of April 6, 1999. On January 29, 1999, the City Clerk received a petition requesting that Council submit to the electors a Citizen Initiated Ordinance relating to the Mulberry-Lemay Crossing Preliminary PUD (Project #36-96B - Wal-Mart). The City Clerk verified that the petition contained sufficient signatures for presentation of the petition to Council and to require submission of the measure to a vote of the people at a Regular Municipal Election. The petition contains the signatures of at least], 783 registered city electors, which is 10% of the total number of ballots cast at the 1997 Regular Municipal Election. Article X of the City Charter requires that the Council either adopt the Citizen Initiated Ordinance without change within 30 days of the date of the presentation of the City Clerk's certification of a valid petition to the Council, or submit it to a vote at the next Regular Municipal Election. " City Clerk Krajicek presented background concerning the item and noted that the citizen petition received by the City Clerk's Office contains sufficient signatures for presentation to Council. She stated that Council has two options: (1) to adopt the initiated Ordinance without alteration, or (2) to submit the initiated Ordinance to a vote of the people. Councilmember Wanner made a motion, seconded by Councilmember Mason, to adopt Resolution 99-21. Nancy York, 130 South Whitcomb, supported submitting the issue to the voters. The vote on Councilmember Warner's motion was as follows: Yeas: Councilmembers Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None. THE MOTION CARRIED. m February 16, 1999 Resolution 99-22 Submitting to the Registered Electors of the City an Ordinance Establishing a Thirty -Six One -Hundredths Percent (0.36%) Sales and Use Tax on All Taxable Services and Tangible Personal Property Except Food, For the Purpose of Obtaining Additional Revenues for a New Traffic Signal Control System, Implementation of the City's Transit Development Plan, and to Fund Other Costs of Operating the City's Overall Transportation System, Which Tax Shall Remain in Effect for a Period of 10 Years and Six Months Beginning on July 1 1999 and EndinLy December 31 2009 Adopted as Amended The following is staff's memorandum on this item. "Financial Impact It is estimated that a 0.36-cent sales and use tax increase will generate $2,669,034 in 1999 and $6, 681,125 in 2000. Over the 10 years and 6 months of its term, the total collections are estimated to be about $92 million. The ballot language for the tax increase earmarks all of the revenue for transportation purposes. The revenue will be appropriated each year in the sales and use tax fund for transfer to the transportation find and the capital projects fund. According to the proposed ballot language, the entire proceeds of the tax are expressly exempt from the limitations of Article X, Section 20 of the State Constitution and will not be considered part of the City's revenue limit base. The increase in the rate of the sales and use tax and resulting revenue will increase the City's dependency on the sales tax from approximately 48.5% to 50% in 1999, to about 54% in the year 2000. Executive Summary Transportation is one of the key issues facing Fort Collins. The City's Transportation Operations provides services such as transit, engineering, parking and transportation demand management. The largest part of the operations budget is for transit. The City's current operations budget is about $11.3 million per year. Staff has identified a funding gap that amounts to $7.3 million annually. Of that amount, the most significant need is to fully implement the Transit Development Plan (TDP) which amounts to $6.0 million per year (in 1996 dollars). The other primary operational need relates to the City's traffic signal timing system. The City's current system is antiquated and is based in 1970's technology. Replacement of the system will cost approximately $4.0 million. Elk, February 16, 1999 The Transportation Funding Advisory Committee (TFAC) determined it was important to consider all the operations' needs as a package rather than trying to fashion a piecemeal funding approach. The Committee recommended that the City Council consider asking voters for an added sales and use tax (excluding food) of.36 of a cent (or 36 cents for a $100 purchase) which would be used to: a) provide anew traffic signal control system to keep traff c flowing smoothly; b) implement the Transit Development Plan; c) provide resources for other operational needs such as engineering, narking and pedestrian services, traffic operations and transportation demand management The term of the sales and use tax would be for 10 years and 6 months --the tax will expire on December 31, 2009. Resolution 99-22 places this matter before the voters on the April 6, 1999 ballot. BACKGROUND: Needs and Gaps Transportation is one of the key issues facing the community. The City's growth along with more frequent use of our automobile has put enormous pressure on the City's transportation system. Fort Collins'transportation is facing a funding shortfall and is falling behind in all the three major elements of transportation --capital, maintenance and operations. The City's Transportation Operations provides a wide variety ofservices to the community including transit, paratransit, parking, traffic operations, transportation demand management, pedestrian services, engineering and transportation planning. The City has funding gaps in most of these areas. The current Transportation Operations' budget is approximately $11.3 million per year. The gap amounts to about $7.3 million annually. The largest portion of the gap is in the area of transit service--$6.0 million annually is needed to fully implement the City's adopted Transit Development Plan. Common complaints about current bus service include: the bus doesn't go where I need it to go and the bus doesn't come often enough. Additional resources are needed to add more bus routes, to provide for extended evening and weekend service, and to increase the frequency ofbuses on City routes. Without a fully functioning transit system: > traffic congestion cannot be managed; > mobility throughout the community will be restricted; > air quality goals will not be met; > land use patterns planned for the City will not function properly. February 16, 1999 The other major operational need relates to the City's traffic signal timing system. The current system is based on 1970's technology and cannot respond to real-time traffic movement requirements nor can it be fine-tuned to meet everyday traffic demands in a growing community. Without new computer equipment and data lines, congestion and wait -times will continue to increase and air quality will deteriorate. Replacement of the timing system will cost approximately $4.0 million. Recommended Solution For almost a year, a nine -member citizen committee (the Transportation Funding Advisory Committee/TFAC) explored possible funding strategies to minimize, if not close, thefunding gap in all areas oftransportation. The Committee was a diverse group ofpeople consisting ofdevelopers, environmentalists, business representatives and citizens with a general community interest. To close the $7.3 million annual fundinggap related to transportation operation's needs --primarily transit services and the traffic signal timing system --the Committee recommended that the City Council ask voters to increase the City's sales and use tax (excluding food) by .36 of a cent (or 36 cents on a $100 purchase). Out of all the funding options considered, the Committee agreed that only a sales and use tax will generate enough funds to meet the substantial need and was the most equitable way to share the responsibility between visitors and citizens as both use and benefit from the City's transportation services. If approved by voters, the dedicated tax would be used for Transportation Operations. More specifically, the monies over the 10 plus years would fund: a. a new tra is signal control system; b. Implement the City's. Transit Development Plan which expands the City's bus and Dial -a -Ride services; and C. other costs ofoperating the City's overall transportation system such as engineerinz, parking and pedestrian services tragic operations and transportation demand management services. The 10 year plus timeframe is recommended for this tax measure. Historically, sales and use tax issues have expired in shorter time periods. However, those tax issues were for capital projects. The time period for this tax measure is for a longer period-40 years and 6 months --primarily due to the cash flow related to operations versus capital. More specifically, NN February 16, 1999 (I) most of the revenues collected during the first four years will be used to purchase and install a new traffic signal timing system. The estimated total cost for this system is $4.0 million. (2) expanded transit services will take four years to fully operationalize. Once the service is implemented, it takes 18 to 24 months to work out the "bugs" as well as begin to measure the effectiveness of the changes. There are a lot of "ifs " and contingencies to consider and staff wants to make sure that, without being overly conservative, a realistic time period is in place to put the expanded services in place and evaluate whether or not the community's transportation needs are being met. The Committee weighed all of the information and concluded that more resources are needed to improve the City's bus system and the timing for the entire network of traffic signals. Further, the most equitable and practical way to provide the needed resources is by increasing the sales and use tax (excluding food) by .36 of a cent that will capture revenues from visitors and citizens alike. Fort Collins, is rapidly approaching a crossroads. City Plan and the Master Street Plan are based on a strong transit service program as well as a street system that accommodates a variety of modes of travel - automobiles, buses, bicycles and pedestrians. If Fort Collins, as a community, is unwilling or unable to support the necessary resources for improved transit service, then the Master Street Plan must be revisited and the necessary adjustments must be made for more auto traffic. Streets that are now planned to be only four lanes may need to be re -designated as six -lane arterials. Intersections may have to be widened and turn lanes added throughout the system. So the choice that must be made now, or in the near future, is how does the City invest its resources over the next years: Transit Services QdAc -i $92 million investment over 10 years Additional streets and intersection expansions -0 $164 million over 20 years The Transportation Funding Advisory Committee, the Transportation Board, the Air Quality Board and staffrecommend that the City move forward and ask voters, on Apri16,1999, to fund the current gaps related to the City's Transportation Operations. " Diane Jones, Deputy City Manager, reviewed funding issues and the City's policies that relate to the transportation system. She spoke concerning the needs and funding gaps for transportation maintenance, operations, and capital improvements. She stated that the Transportation Funding Advisory Committee (TFAC) considered a wide range of funding strategies, including taxes, W February 16, 1999 improved user fees, reallocating General Fund sources, earmarking future General Fund resources, and cost saving measures. Ron Phillips, Transportation Services Director, spoke regarding the TFAC's recommendations and noted that some of the TFAC's recommendations have already been acted upon by the Council. He highlighted the transportation operations funding gap and stated that the proposal is to ask the voters to consider an additional sales and use tax of $.36/$100 excluding food for a term expiring December 31, 2009. He outlined proposed transit improvements and enhancements to the traffic signal system, and recommended placing the proposed sales tax Ordinance on the April ballot. Jones emphasized the need for a strong and effective transportation system. She stated that the proposed sales tax would generate approximately $92 million over 10'/2 years for transit improvements and traffic signal system enhancements. She spoke regarding funding that would be needed for capital expansion if that is the direction chosen. Councilmember Wanner asked if the time period for collecting the sales tax would be changed if the issue is placed on a later election ballot. City Manager Fischbach stated that the ending date of the tax would be changed if the matter is placed on a later ballot. Councilmember Mason asked for the estimated cost for expansion of existing streets and intersections if the City does not move forward with the recommended transportation improvements. Phillips estimated that approximately $80 million would be needed over a ten-year period for infrastructure capacity building and stated that the alternatives are to enhance mobility choices or to enhance infrastructure. Councilmember Bertschy asked about criticisms in the press regarding the linking of signalization to this proposal. Phillips stated that the TFAC is strongly recommending an integrated rather than incremental approach to transportation funding issues. Councilmember Byrne asked about the projected 24% increase in vehicle miles traveled over the next three years. Phillips spoke concerning the data collected in the region and in Fort Collins. Councilmember Byme asked how the new tax rate would compare to other Front Range communities. Jones stated that Fort Collins would be ninth ranked among 15 communities. Councilmember Smith asked how many community groups are actively supporting the proposed sales tax and noted that under state law, once the matter is placed on the ballot any work in support of the measure would have to be done by citizen groups. Phillips stated that representatives of a number of groups in support of the measure will speak in favor at this meeting. Mayor Azari asked if this measure and the dollars spent will make a real difference in improving transportation mobility in Fort Collins. Phillips stated that a number of other communities in m February 16, 1999 Colorado have a higher sales tax for transit and that these communities have had significant growth in ridership. Tom Frazier, Multi -Modal Transportation Group Leader, stated that staff anticipates a ridership increase from the current 1.4 million to more than 3 million with the proposed improvements in service. Councilmember Smith noted that the proposal includes the dedication of an additional $2.25 million per year in General Fund dollars to these efforts and asked for clarification regarding the total proposed annual allocation for transit. He expressed a concern regarding more than doubling the expenditure while only doubling the ridership. Phillips stated that the ridership projections are conservative. Councilmember Smith asked why the tern of the sales tax is for 10'/z years and suggested that a five- year tax might be more appropriate to allow an opportunity to evaluate the impact of the tax. Jones stated that the first few years of the tax would be used for the traffic signal timing system and that many years will be needed to implement all of the transit improvements. Frazier stated that the transit system will be operating at full capacity by 2005 and that intergovernmental agreements and federal funding take time to develop. Councilmember Smith asked about references to the funding of additional services in development review and operation of the parking structure, and he asked how many groups indicated a willingness to vote for the sales tax during the community presentations that were made. Jones spoke regarding the purpose of the presentations. Eric Berglund, Vice -President Associated Students of Colorado State University, spoke in support of the measure and noted the need for expanded transit service. Michael Zimmerman, President of People First of Larimer County, supported the measure and enhancements to transit and Dial -a -Ride to provide greater service to the developmentally disabled. Tim Johnson, 1337 Stonehenge Drive, Transportation Board and TFAC member, spoke in support of the measure and the need to continue to address the funding gap for transportation needs. Jana Sixx, Poudre Canyon Group of the Sierra Club, spoke in support of the measure and stated that the Sierra Club has endorsed the proposal because of the potential environmental benefits. Dave McDaniel, representing Disabled Resource Services, spoke in support of the measure as a means of enhancing transportation services to the disabled community. Allison Bertolette, 1106 Oak Leaf Court, supported the measure and enhanced transit services. Keith Wilcheck, Dial -a -Ride client, spoke in support of the measure and expanded hours for Dial -a - Ride. February 16, 1999 Stan Ulrich, 2313 Valley Forge Court, read a letter from Kay Rios in support of placing the measure on the April ballot. Kathy Lassen, 1612 Collindale Drive, spoke in support of the measure and addressed the transportation needs of the disabled population. Mike Bertolette,1106 Oak Leaf Court, supported the measure and spoke regarding the transportation needs of the disabled population. Bill Neal, TFAC member, spoke regarding transportation funding needs statewide and the need to address transportation issues. He spoke regarding the need to educate the citizenry about modalism prior to the election and stated that he would be working as part of a citizen committee in favor of adoption of the sales tax. Gina Janett, 730 West Oak Street, spoke regarding the City's planning and policies for the future and encouraged asking the voters for a tax for funding of transit improvements. Alan Apt,1406 Freedom Lane, Commission on Disability representative, spoke regarding the transit needs of the disabled population and stated that this sales tax would be a foundation for making needed transit improvement. Gary Young, Outdoor Promotions West, supported submitting the proposed sales tax to the voters. Paul Valentine, TFAC member, stated that citizens frequently request traffic signal timing on College Avenue and expansion of Transfort and that he would be part of a citizen committee working to get the sales tax passed. Al Baccili, 520 Galaxy Court, spoke in opposition to the tax increase measure. Brent Thordarson, 2737 Mercy Drive, Transportation Board and TFAC member, supported placing the measure on the ballot. Jeremy Sargent, CSU student, spoke in support of the sales tax to expand transit service. Phil Friedman, 201 South Grant, Natural Resources Advisory Board Vice -Chair, supported the measure and improvements to Transfort service and multimodal solutions. John Meleski, 2619 Featherstar Way, spoke against combining traffic signalization and transit improvements in the ballot package. Councilmember Smith noted that many of the groups that heard presentations on the issue did not send representatives to this meeting to express support for the ballot measure and stated that he had 91 February 16, 1999 requested that staff specifically ask the groups hearing presentations if they would vote for the sales tax. City Manager Fischbach stated that staff has no further information concerning whether other groups that heard staff presentations would support the sales tax. Councilmember Wanner asked what issues are anticipated to be on the ballot in April and in November. City Manager Fischbach stated that the County is considering asking for a sales tax increase in November to fund the fairgrounds development and a proposal to "deBruce" the County. Phillips stated that the November ballot may include a citizen initiative to renew the County -wide quarter cent sales tax for open space. Councilmember Bertschy asked if City employees would be allowed to give presentations to groups on the ballot issue. City Attorney Roy stated that the Fair Campaign Practices Act permits City employees to respond to questions about ballot measures as long as the questions are not solicited, and permits employees on their personal time to express personal opinions in support or opposition to a measure. Councilmember Bertschy asked if the TFAC's recommendation after looking at all the options was unanimous. Tim Johnson, TFAC member, stated that the package that is before Council for consideration received unanimous support from the Committee. Councilmember Bertschy asked if the TFAC discussed the complexity of bringing this issue to the voters and asked if there would be any way to get some of the transit improvements done sooner. Tim Johnson, TFAC member, stated that the Committee discussed a number of ways to fund capital, maintenance, and operations. Phillips spoke concerning the time needed to build partnerships, leverage other funding sources, and order rolling stock. Councilmember Bertschy asked if TFAC discussed rate changes. Phillips stated that fare increases are included in the financial analysis. Councilmember Bertschy asked if the City is looking at alternative fuels for buses. Phillips stated that staff is looking at alternative fuels. Councilmember Byrne noted that there were Chamber of Commerce members on the TFAC and asked about staff presentations to the Chamber of Commerce, the Downtown Development Authority, and the Downtown Business Association. Phillips spoke regarding the presentations that were made. 92 February 16, 1999 Councilmember Byrne asked about combining the signalization and transit issues. Phillips stated that the TFAC is strongly recommending combining these issues in one package rather than presenting incremental solutions. Councilmember Smith asked why 0.36% is recommended. Jones stated that the proposed tax recommendation is based on projections and calculations to fund the actual need. Councilmember Smith asked if Exhibit A would control what can be done with the monies collected. City Attorney Roy stated that the use of the monies collected would be restricted to the general purposes described in the Ordinance and the ballot language, and that the items and dollar amounts listed in Exhibit A are illustrative of the kinds of expenditures that might be made. Councilmember Smith asked whether the funds collected could be used for the Burlington Northern corridor. City Attorney Roy stated that funds could be used for any costs of operating the City's overall transportation system, and that the Ordinance provides that the scheduling of the projects, components of the projects, and the costs would be determined by the Council. He stated that the dollar amounts are not controlling, and are estimates at this point. Councilmember Mason questioned the use of sales tax for additional services in development review and operation ofthe City's parking structure. Phillips stated that dollar figure for operations includes unfunded items that have been requested in the budget in the last three years, including two development review engineers and ongoing maintenance of downtown parking lots. He stated that the new parking structure that is being constructed will be fully funded operationally. Councilmember Byrne made a motion, seconded by Councilmember Kneeland, to adopt Resolution 99-22 with the inclusion of the Mason Street corridor in the suggested list of improvements in Exhibit A of the proposed Ordinance. Councilmember Byrne stated that he would support the motion and spoke regarding the need to educate the voters about the issue. He expressed a concern that some groups that would be expected to support the sales tax were not represented at this meeting. Councilmember Smith spoke concerning the political realities of the matter in light of the upcoming candidate races for the City election and stated that it is not clear that some of the expected major players are in support of the issue. He stated that this is not a total solution to long term transportation funding needs and that the main question will be whether the community is ready to allocate significant resources to transit when there are other significant budgetary needs. He spoke concerning the transit needs of the elderly and others, not only those who are disabled, who have difficulty getting around. He stated that a number of changes are forthcoming as a result of federal legislation and City Plan. He stated that he will support the motion and cautioned those in support that this proposal will be difficult to sell to the general public. 93 February 16, 1999 Councilmember Kneeland stated that she would support the motion and that the City's approach to transportation needs to change with the changing times. She spoke regarding the need to personalize the message that goes out to the community. Councilmember Bertschy spoke in support of the motion and commented that the intellectual work has been done on the issue, that the issue has emotional appeal and support, and that the political work on the issue still needs to be done. He stated that he would make a personal commitment to get the word out in his precinct. Councilmember Wanner stated that he would support the motion and would support the sales tax as a Council candidate. Councilmember Mason spoke in support of the motion and commented regarding the projected 24% increase in vehicle -miles -traveled over the next three years. He stated that he would prefer looking at solutions that involve alternative transportation rather than infrastructure expansion and spoke concerning the need to improve air quality. Mayor Azari stated that she would support the motion and spoke concerning the need to provide reasonable alternatives to using automobiles in Fort Collins. City Attorney Roy read language that reflected the amendment that was made earlier: at the end of Exhibit A the last line would read "... pedestrians; operation of the parking program including the City's parking structures; and transportation operations costs related to the Mason Street corridor." The vote on Councilmember Byrne's motion was as follows: Yeas: Councilmembers Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None. THE MOTION CARRIED Items Relating to the City's Economic Policy Adopted The following is staff s memorandum on this item. "Financiallmpact There are no financial impacts directly associated with the modification to the City's Economic Policy. The projected financial impacts associated with the Manufacturing Use Tax Rebate Program for 1998 is expected to be approximately $510,000. There are no director immediate financial impacts to the City in connection with the termination of the Development Impact Fee Rebate, and Street Oversizing Fee Exemption Programs. m February 16, 1999 IMPACTS ON BUSINESS SECTOR: There are no direct impacts on the business communityfrom the economic policy modifications. The changes to the Manufacturing Use Tax Rebate Program changes will likely encourage both the initial investment and re -tooling decisions of both large and small manufacturing businesses. This would be consistent with the policy change designed to encourage local business start-ups. The termination ofthe Development Impact Fee Rebate, and Street OversizingFee Exemption Programs may have different impacts. With regard to the Development Impact Fee Rebate Program, initial development costs associated with the construction or expansion of business facilities will not increase; however, there will no longer be an opportunity to seek a rebate of certain development fees associated with the project. This may in turn impact business decisions to expand locally. It should be noted that recent changes to the Street Oversizing Fee structure have actually resulted in a significant reduction of the Street Oversizing Fee as it pertains to industrial business uses. The termination of the Street Oversizing Fee Exemption Program will therefore have less long-term impact on businesses. Executive Summary The following actions resulted from the City Council study sessions held in April and December of 1998. These sessions were held by Council to continue the ongoing discussion of the appropriate City role in maintaining the long-term viability of the Fort Collins economy. Over the past ten years, the City has begun a shift away from the former model used in many parts ofthe U.S. ofusing financial incentives to encourage local business development and job creation. The current approach emphasizes tools and techniques that focus on building local capacityfor business development and entrepreneurial activity. This includes refining the City's economic policy to reflect this shift, modifying the Manufacturing Use Tax Rebate Program to encourage new manufacturing business start-ups, and expansions. Additional actions include ordinances terminating the Development Impact Fee Rebate Program, and the Street Oversizing Impact Fee Rebate Program. BACKGROUND: On December 22, 1998, City Council held a study session to discuss the various elements of the City's economic policy. There were five main topics discussed: • Economic Policy Statement • Manufacturing Use Tax Rebate Program • Terminating the Development Impact Fee Rebate and Street Oversizing Fee Exemption Programs • Economic and Community Indicators • Economic Policy Advisory Board 95 February 16, 1999 Council requested that the following items be brought forward for consideration during a regular City Council meeting. The items for consideration are as follows: A. Resolution 99-23 Amending the Economic Development Policy and Renaming it as the Economic Policy of the City of Fort Collins. B. First Reading of Ordinance No. 30, 1999, Continuing and Modifying a Temporary Manufacturing Equipment Use Tax Rebate Program For Fort Collins Manufacturers. C First Reading of Ordinance No. 31, 1999, Repealing Article VII, Chapter 5 ofthe City Code in Order to Terminate the Development Impact Fee Rebate Program. D. First Reading of Ordinance No. 32, 1999, Repealing Section 24-113(b) of the City Code, in Order to Terminate the Street Oversizing Exemption Program. Staff is currently compiling examples of various indicators from other communities for further consideration at a later date. While there was no agreement regarding the establishment of an economic policy board, Council suggested that the planned Community Dialogue process include a session on economic policy in order to elicit citizen perspectives on this topic. B. Economic Policy Action Proposed —Modification: As has been stated, the City's Economic Policy was last modified in August of 1994. Since that time the City has initiated a shift away from the use of financial incentives, toward a more entrepreneurial and small business approach. Perhaps the key to the suggested modifications is a focus on building local capacity to generate new business activity, and the spin-offofenterprisesfrom Colorado State University, as well as existing businesses. ThePolicy now reflects efforts made to develop the Fort Collins Virtual Business Incubator, and the kick-off of a one -stop small business assistance center in concert with Front Range Community College's Small Business Development Center. Both entities are co -located along with the Service Corps. of Retired Executives (SCORE) on the main level of the Key Bank building at Oak and Howes in downtown Fort Collins. A copy of the Economic (Development) Policy with revisions from the prior version marked is attached to this Agenda Item Summary. B. Manufacturers Use Tax Rebate Program Action Proposed — Modification • The Manufacturers Use Tax Rebate Program was initiated in 1996, and was intended to focus on encouraging the investment made by local manufacturing firms in new manufacturing equipment. This type of investment was once made every three or four years for most companies. In this day and age such investments are being made every 15 to 18 months a February 16, 1999 for some high-technology companies. Assessing use tax on every re -tooling results in a relative windfall for a community since there is little added cost or impact associated with serving the existing firms making these purchases. In 1996, the City rebated $380, 287 to 10 of 27 firms that were eligible for rebates. In 1997, the City rebated $439, 917 to 15 of 31 eligible companies. Staff estimates the 1998 rebate liability to be about $510, 000. In early 1998, City Council approved several changes to the Manufacturing Use Tax Rebate Program. Many of the changes resulted from suggestions by local manufacturers. Staff is now recommending elimination of the three-year eligibility requirement that is currently a restriction of the program. This change reflects the Policy intent to encourage the initial investment as well as reinvestment ofsmaller start-up businesses as well as existing f rms. Staff is also recommending an extension ofdirectpayment arrangements beyond the initial nine -month period to the suggested 12 months. This would accommodate large-scale re -tooling projects that require additional time for completion. Consideration has been given to the tax equity and fairness questions that have arisen. Data shows that the base industry manufacturing sector continues to carry a predominate share of both the use tax and personal property tax load in Fort Collins. The attached graphs show that the manufacturing companies that are eligible for this program contribute 72% of the City's $1.5 million in personal property tax and 70% of the City's $5.4 million in use tax. Staff is recommending that the Manufacturing Use Tax Rebate Program be continued on a year-to- year basis due to the serious possibility that legislation will be brought forward at the State level in 1999 to eliminate Personal Property Tax. Similar legislation was passed in the legislature in the past two years, but vetoed by Governor Romer each time. Such a change to the City's tax base (elimination ofapproximately $1.5 million in revenue) would dramatically impact the City's ability to deliver current services. This situation might also require the curtailment of the Manufacturing Use Tax Rebate Program. Staff will monitor this activity and keep the Council informed. A copy of the Program Description with revisions from the prior version marked is attached to this Agenda Item Summary. C(1). Development Impact Fee Rebate Program Action Proposed - Termination: The Development Fee Rebate Program was initiated in 1990 with City Council approval. The Program was originally a Fee Waiverprogram, with the General Fund actually bearing the burden for the firm. The program was modified in 1994, and converted to a Rebate Program. In this way the firm pays the fees up front, and then receives a rebate of the fees (as approved by Council) overtime using the sales and use taxes received from the firm. At the time the program was designed it was intended to assist in the location and expansion ofbasic industrial firms by reducing the initial costs associated with the construction/expansion ofthe firms facilities. Since the program 's inception, roughly $980, 000. has been approved by Council. The actual results 97 February 16, 1999 associated with the program have, however, been very difficult to gauge. Ordinance No. , 1999, repeals the City Code provisions establishing the program, and terminates the operation of the program. C(2). Street Oversizing Impact Fee Waiver Program Action Proposed - Termination: The Street Oversizing Fee Exemption Program was initiated in August 1989, and was intended to assist in the location and expansion of smaller basic industrial firms. The Program functions administratively, and can be approved up to a maximum of $50, 000. The City Council has appropriated $100, 000 each yearfor the past nine years for the Program. The funding is limited to the yearly $100, 000 appropriation, and does not carry-over from year-to-year. Since the program's inception, roughly $170,000 has been spent. The typical amount of an exemption has been in the $3,000 to $5,000 range. Again, it is very difficult to link either the success, or failure of a business to the existence of this program. From an anecdotal perspective one could make an argument that this, and the Development Impact Fee Rebate Program, might provide some added encouragement for a firm to expand in Fort Collins. Recent changes to the structure of the Street Oversizing Fee Waiver Program have actually resulted in a reduction of the fee for industrial business uses. Ordinance No. 32, 1999, repeals the City Code provision establishing the program, and terminates the operation of the program. " Frank Bruno, Assistant City Manager, presented background information concerning the item and highlighted proposed changes to the City's economic development policies. Councilmember Mason made a motion, seconded by Councilmember Smith, to adopt Resolution 99- 23. The vote on the motion was as follows: Yeas: Councilmembers Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None. THE MOTION CARRIED Councilmember Smith made a motion, seconded by Councilmember Mason, to adopt Ordinance No. 30, 1999 on First Reading. Councilmember Byrne spoke regarding the political complexity of economic development. Councilmember Bertschy spoke in support of the motion and encouraging good, high paying businesses to continue to do business in the City. m February 16, 1999 The vote on Councilmember Smith's motion was as follows: Yeas: Councilmembers Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None. THE MOTION CARRIED. Councilmember Mason made a motion, seconded by Councilmember Wanner, to adopt Ordinance No. 31, 1999 on First Reading. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Byrne, Mason and Wanner. Nays: Azari, Kneeland and Smith. THE MOTION CARRIED. Councilmember Wanner made a motion, seconded by Councilmember Mason, to adopt Ordinance No. 32, 1999 on First Reading. The vote on the motion was as follows: Yeas: Councilmembers Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None. THE MOTION CARRIED. Ordinance No. 27,1999 Amending Chapter 23 of the City Code by Adding Provisions Pertaining to Natural Areas. Adopted on First Reading The following is staff s memorandum on this item. "Financial Impact Implementation of the Ordinance can be carried out with existing funding. Executive Summary These proposed regulations would govern human behavior in City -owned natural areas and are an importantpart ofstaff's efforts to protect the City's significant investment in natural areas. Without these provisions, the City would, in many instances, have no way to enforce activity restrictions necessary to keep wildlife and vegetation from being negatively impacted, and in some cases, destroyed. Only six of these provisions are new. The rest are either(l) similar to Parks Rules and Regulations or other existing regulations or (2) were reviewed by Council (and by the public) when the "General Management Guidelines for City -Owned Open Spaces and Natural Areas" ("Guidelines') was approved in 1994. February 16, 1999 A couple of the provisions have been ofparticular interest to the public: (])the provision, from the "Guidelines, "requiring horses to remain on trails, or within a specified distance oftrails, in natural areas; and (2) the new provision providing for permits to allow certain activities, such as training of Search and Rescue dogs off leash and off trail on certain natural areas under Section 23-193 (e). Council also had concerns about other aspects of theproposed Code changes. These concerns were addressed at Council's February 9 Study Session. BACKGROUND: The City currently owns over 5,000 acres of natural areas. These natural areas need appropriate management to avoid undue trampling, scarring, wildlife impacts, and other degradation, as well as to protect the safety of site visitors. This protection can best be achieved by adopting and enforcing regulations which address public use of the natural areas. The terms of the Ordinance fall into four general categories: (1) those similar to the regulations governing the City's parks, (2) those similar to other existing City regulations, (3) those proposed in the 1994 "Guidelines, " and (4) new provisions that address issues that have recently come to the attention of staff in managing the natural areas. Some natural areas have sensitive natural features (e.g., rare plants, threatened or endangered wildlife, key wintering wildlife habitat, fragile rock outcroppings, etc). On such sites, recreational use needs to be very carefully managed. Other, less sensitive natural areas also need appropriate management of human activities. In 1997, the City established a Natural Areas and Trails Ranger Program. Rangers are commissioned to enforce the law (misdemeanors) in natural areas and along trails. Because most users are interested in protecting natural resource values if they know how to do so, rangers take a soft approach in most instances, advising visitors of appropriate use ofnatural areas and explaining why certain activities are damaging. But for visitors who are not interested in protection of natural areas, laws are needed that can be enforced with citations. Until the Ordinance currently before Council is adopted, the rangers have no way to enforce certain aspects Of natural area protection. The increasing population of the Fort Collins area makes many of these provisions necessary. In many instances, if only a few people were involved in the activities, impacts on natural features would be minimal. But when these activities are multiplied by the increasing numbers of people using the natural areas, impacts become potentially serious. For example, it isn't unusual for rangers to see 10 - 20 people using the trail in Pineridge in any 1.5 -2-hour period. On designated trails, those numbers can be accommodated. However, when that many people start roaming off the trails, negative impacts result. The "Guidelines, " reviewed and adopted in 1994, identified management guidelines to protect the City's natural areas. It was anticipated that regulations proposed in that document would be codified soon after the document's adoption. However, that did not occur. Therefore those regulations have been incorporated into the proposed Ordinance currently before Council. [till, February 16, 1999 Provisions related to the "Guidelines " are identified with a "G" on the attached "Explanation of Proposed Regulations for City -owned Natural Areas." Other provisions are similar to existing Parks Rules and Regulations (identified with a "P'), some arepartially addressed in other sections of the City Code (identified with a "C'), and some are new (identified with an "N'). Portions ofthe Ordinance have been reviewed at various open houses in thepastfew years including an open house to review the "Guidelines" and open houses on specific site management plans (Cathy Fromme Prairie Site Management Plan, Foothills Natural Areas Management Plan, and Cache la Poudre River Natural Areas Management Plan). An open house for public review of an earlier draft of the Ordinance was held Monday, October 19. About 20 people attended (public comments attached). A few people also called the office asking to have a copy of the Ordinance mailed to them. The ad for the open house ran in the October issue of The Senior Voice and four times in the Coloradoan. A press release was picked up by the Coloradoan and by local radio. The Parks and Recreation Advisory Board and the Natural Resources Advisory Board also reviewed and approved the proposed provisions (recommendations attached). Citizens and Councilmembers had concerns about the regulations as originally proposed in December 1998. Discussion of those issues occurred at Council's February 9 Study Session, and is summarized below: Natural area classifications as they relate to implementation of the regulations The natural areas classification system appears in the 1994 "General Management Guidelines for City -owned Open Spaces and Natural Areas." Sites subject to the proposed regulations are classified as either "Sensitive, " "Urban, " or "Restorative. " "Restorative" is a temporary category applied to a natural area that needs to be restored before being placed into either the "Sensitive" or the "Urban" category. The main difference between a "Sensitive" site (e.g., contains a rare, threatened, or endangered plant or animal species in need ofspecial protection) and an "Urban" site is that, as proposed, recreational use on sensitive sites will be restricted to the established trail system. This restriction has received strong community support. Proposed Code Section 23-193© allows the City to post sites that need the special protection accorded to "sensitive" natural areas. Intent of Regulations The ultimate intent of natural area management is to protect, and in some cases, restore, natural features. Theproposed Codeprovisions arejust one tool needed to accomplish this goal. Education and interpretation are the tools ofpreference. But there are those few who prefer to use the natural areas in a manner contrary to the City's adopted protection goals. Without the authority of law, staff is helpless to keep such users from engaging in damaging activities. Staff has found that the public sometimes has differing interpretations ofwhat a natural area is, and therefore, what the intent of management should be. One misconception common to many special 101 February 16, 1999 interest groups is that a natural area is simply an empty piece ofground on which anything goes. That does notfit Fort Collins'definition ofa natural area oradoptedgoals and objectives. The City only acquires a piece ofproperty as a natural area if it has one or more specific natural features (wildlife habitat is a common one). These natural features require specific types of management in order to thrive. The intent of the Ordinance is to allow not only present generations, but generations to come, to connect with nature. Uncontrolled use ofnatural areas allows some people to explore nature freely, but this unmanaged activity will eventually destroy those opportunities for others. All natural areas will offer opportunities for human recreation (some sites are temporarily closed until appropriate trails and management tools can be installed). People are allowed to access natural areas to, among other things, see the magnificent views; to watch wildlife; to get an up -close look at a variety of plants; to hike and ride bikes in some of the rugged areas away from the city; to go horseback riding close to home; to walk leashed pets; and to sit and contemplate. School groups have access to the natural areas as they begin to learn about ecological functions, and CSU students are able to use these valuable areas for research. Likelihood of enforcement There were comments that some aspects of the proposed Ordinance are unlikely to be enforced and therefore should not be included in City Code. Likelihood of citations is not really the issue. Staff does not expect that a lot of citations will be issued. If certain activities are controlled by law in natural areas, most people will abide by the law and enforcement will not be necessary. For those few who refuse to adhere to the law, enforcement will be possible. An 11:00 o.m. - 5:00 a.m. curfew in natural areas There was some opposition to the paved trail system through natural areas being subject to the 11:00 p.m. - 5:00 a.m. curfew. Several years ago, this curfew was initiated in parks as a result of neighbors being upset with crimes and noise occurring in theparks at night. The curfew in the parks greatly reduced the problem. Natural areas have some of these same problems. The mere existence of such laws can be surprisingly effective. A curfew, even without active patrol, greatly reduces crime and disturbance in areas subject to the curfew. A lot ofpeople will obey a law if it exists, but will not abide by a desired action without a law. Only a few refuse to abide by the law. Those are the ones for whom enforcement is necessary. The use ofthe trail system through natural areas between 11:OOp.m. and 5: 00 a.m. carries potential dangers. Even though the trail system is part of Fort Collins' transportation system, it does not have the same safety features as typical 24-hour transportation systems. People are more vulnerable to becoming victims of crime in the natural areas at night. The curfew can also be seen 102 February 16, 1999 as a crime prevention measure. It also will help to reduce "crimes ofopportunity, "such as graffiti, vandalism or drug activity. The natural areas also need some time when wildlife can move freely without the presence of humans. Having a period ofrest from human interference allows wildlife to function naturally, at least for a few hours, without the heightened stress experienced when humans are present. Having cited all of these reasons for the curfew, staffhas, nevertheless, included a permit system for those who need to be in a natural area at night, for example an astronomy class. Horseback riding in natural areas There was originally some discussion about whether horses can be safely handled within the originally proposed five foot distance from other recreationalists. Therefore, the Ordinance has been revised to allow riding within 10 feet oftrails. After concerns were expressed that some horses cannot be controlled even within 10 feet ofsome activities, the Ordinance was additionally revised to allow horseback riders to go farther than 10 feet off of a trail when necessary to prevent dangerous circumstances. However, this is not intended to allow horseback riders to ride wherever they want under the claim that a particular horse is unruly in the presence ofother recreationalists. Staff will post areas where horseback riders are not required to adhere to the 10 foot regulation, such as general areas within which they may cross the River. Enforcement of the leash law and Search and Rescue Doe Training in natural areas This is not anew law in natural areas. With the implementation of the Natural Areas and Trails Ranger program, the Rangers began enforcing the leash law in natural areas on a patrol basis. The patrol program was implemented because of complaints from natural area visitors and neighbors who were upset by being approached and accosted by dogs running loose and by witnessing dogs harassing wildlife. To address dog owners' desires for a place to let dogs run loose, the Parks and Recreation Department has opened a dog park. The park is heavily used, and most everyone recognizes the need for additional dog parks. As the leash law applies to Larimer County Search and Rescue, proposed Code Section 23-193© provides for the issuance ofa permit to allow training of Search and Rescue dogs off -leash, subject to terms that have already been negotiated. The issuance of such a permit is continent upon approval of the Ordinance and Ordinance No. 29, 1999, amending the animals at large provision. 103 February 16, 1999 Activities adjacent to natural areas A question arose about activities a person may engage in on their own property, adjacent to a natural area, which would result in violation of a natural area regulation. The example was that ofa person flying a kite in a private backyard adjacent to a natural area and that if the kite extended onto the natural area they would be in violation. In response to concerns, the Ordinance was reworded to eliminate the reference to activities adjacent to natural areas. The kite flying item was reworded to make it unlawful to: "Fly a kite within a natural area, " (the words "or over" were deleted). Throwinzofbjects in Natural Areas One citizen was concerned about the proposed regulation limiting the throwing of balls and other objects on natural areas because the wording, "other hand -tossed object, " meant that her child could not, for example, pick up a twig and toss it into the river. That was not the intent of the wording. The intent was to cover the throwing of inappropriate objects in natural areas. However, the item has been reworded to make it unlawful to: "Throw, kick, or hit a flying disc, boomerang, or ball in, onto or over a natural area, except within a fenced area designated and posted to allow dogs off -leash. " Wading in Natural Area There was some concern about the prior version of the Ordinance relative to entering the waters of a natural area. The current version only bans swimming (unless posted to allow it) in the waters of natural areas, but allows wading and dangling of feet. Perception of a large number of new laws/public process Some people have expressed the view that the Ordinance would establish far too many laws in natural areas. In response, it is necessary to clarify why the list of provisions appears long. To begin with, there is a need to consolidate into one place laws likely to be violated in natural areas. Some laws cited elsewhere in the City Code are restated in the natural area section for efficient law enforcement and to clarify their application in natural areas, including those outside the City limits. There is also a new item, Section 23-193(a)(17), that has been added to clarify that the listed City Code provisions do apply on all City natural areas, even if they are outside City limits (as long as they are open to the public). This has always been desired and intended, but recent developments have brought to staffs attention the need to clarify this in the Code. There were comments that the Ordinance received little public process. In actuality, the proposed regulations from the "General Management Guidelines for City -owned Open Spaces and Natural Areas" not only received public review when it was adopted in 1994, but since that time, the City 104 February 16, 1999 has been trying to manage our natural areas based on those recommended regulations. Even though the recommended actions could not be enforced, people have been aware of the desired management, and for the most part, have recognized the importance of these recommended actions in protecting the features of the natural areas. In addition, there have been other opportunities for review and input, including an open house, Natural Resources Advisory Board and Parks and Recreation Board meetings, and the Council Study Session on February 9. As mentioned earlier, many of the proposed provisions exist in some form in other parts of City Code or in the Parks Rules and Regulations. Only six provisions in the Ordinance are entirely new: (1) Section 23-193(a)(10), making it illegal to harass wildlife; (2) Section 23-193(a)(13) making it illegal to fish in violation of Colorado Division of Wildlife regulations; (3) Section 23-193(a)(16), making it illegal to ride, bike or skate in a manner that poses danger to others; (4) Section 23-193(d)(9), making it illegal to build private structures in natural areas; (5) Section 23-193(e), allowing the issuance of a permit for research or public safety -related activities, including the training of Search and Rescue dogs in certain natural areas that would otherwise violate the Ordinance; and (6) Section 23-193(d)(18), requiring a permit for scattering cremated human or animal remains on natural areas. All of the provisions, except (3) and (6) (which were recent additions) were presented at a publicized open house October 19, and staff met several times with persons who had specific concerns about the proposed regulations. " Tom Shoemaker, Natural Resources Director, gave a brief presentation regarding the item. Robert McCormick, local attorney, spoke in opposition to the Ordinance and recommended further study. He expressed concern that the Ordinance lays the groundwork to eventually eliminate horseback riding on Cityopen space, that no specific studies have been done to determine the impact of horseback riding, and that there are dangers involved in confining horses to a narrow trail with pedestrians. Lynn McCormick, spoke in opposition to the Ordinance and stated that she has made suggestions regarding horseback riding in the natural areas and has received no response from staff. She encouraged more research, citizen input, and better communication between the City and horseback riders regarding the designation of horse trails and zones in the open space and natural areas. 105 February 16, 1999 Phil Friedman, Vice -Chair of the Natural Resources Advisory Board, spoke regarding the need for regulations to protect the natural areas and summarized the public input processes that have been followed in the development of the proposed regulations. He stated that only six new regulations are being proposed and the rest are already in existence, that the Board strongly believes in access to the natural areas where appropriate, and that there is a compelling need to protect these resources for current and future users and wildlife. Ragan Adams, 1500 West Mountain Avenue, expressed a concern about the impact of the regulation that would require horses to remain within ten feet of the trail and spoke regarding the need for sustainable trails. Cheryl Kennedy, Larimer County Search and Rescue, spoke in support of the adoption of the Ordinance and equitable access for all users. Sally Craig,1409 South Summitview, encouraged the adoption ofthe proposed Ordinance and spoke regarding the impacts of human activity on wildlife. Dave Bigelow, Larimer County Search and Rescue, spoke in support of the proposed Ordinance. Chris Dehn, spoke against the Ordinance and stated that these regulations would limit the tradition of riding horses. Councilmember Mason asked if horse trails would be allowed under the management plan for each natural area if they did not impact habitat. Shoemaker replied in the affirmative and stated that modifications to the Ordinance relating to horseback riding have been made based on the public input received. He stated that the proposed regulations allow flexibility based on specific needs and conditions within each natural area and that the goal is to have users in appropriate areas. Councilmember Byrne asked about the application of the regulations and the current use of natural areas by horseback riders. Shoemaker spoke regarding the current use of trails and planning for the future for new natural areas. Councilmember Smith spoke regarding potential difficulties of establishing separate trails for different uses and commented regarding the ten -foot rule. Shoemaker stated that the establishment of rules requires achieving a balance. Councilmember Mason commented that there are urban, sensitive, and restorative types of natural areas and that there need to be reasonable restrictions to protect certain areas at certain times. Shoemaker stated that the regulations are site specific and are intended to provide resource protection while allowing appropriate human access. He outlined the current and future opportunities for access by horseback riders. 106 February 16, 1999 Councilmember Bertschy asked about the process for user groups to ask for changes to the regulations and the need to respond to citizens in a timely fashion. Shoemaker expressed a willingness for staff to meet with user groups to discuss individual site management plans. Councilmember Bertschy suggested that the Natural Resources Advisory Board develop a process for hearing the concerns of user groups in the future. Councilmember Bertschymade a motion, seconded by Councilmember Wanner, to adopt Ordinance No. 27, 1999 on First Reading. Councilmember Wanner stated that these regulations are suitable as a foundation and encouraged citizens to participate in the development of site plans. Councilmember Kneeland spoke in support of the proposed Ordinance and thanked those who have been involved in its development. She suggested proactively involving user groups as site plans are developed. Councilmember Mason thanked the representatives from Larimer County Search and Rescue for their input through this process. He stated that there is no plan to eliminate horses from all natural areas but that there is a need to properly protect and manage the natural areas. Mayor Azari spoke regarding the need for regulations and continual review to ensure that they are working effectively. She encouraged ongoing communication with user groups. The vote on Councilmember Bertschy's motion was as follows: Yeas: Councilmembers Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None. Other Business Councilmember Byrne noted that the City Attorney has researched possible ordinances that provide rental property regulation for problem properties. He asked if there were any objections to asking the City Attorney to continue the research and developing and working on a possible Ordinance through the Health and Safety Committee. Councilmember Bertschy stated that the focus would be to provide a tool to deal with intermediate to extreme cases, make sure that there is staff for enforcement, and continue and expand the mediation program through Neighborhood Resources. Councilmember Wanner noted that Council has not received updates on the issue. 107 The meeting adjourned at 10:15 p.m. ATTEST: Arlimirnmont 108 February 16, 1999