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HomeMy WebLinkAboutMINUTES-10/05/2004-RegularOctober 5, 2004 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, October 5, 2004, 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: Bertschy, Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Staff Members Present: Attebery, Krajicek, Roy. Citizen Participation Gail Zirtzlaff, 2048 Manchester Drive, spoke regarding rental licensing and "park and ride" problems caused by people parking in her neighborhood and walking to the bus stop. She stated there was nothing illegal about parking on a public street but that she saw this as "one more assault on the neighborhoods." Pete Seel, 1837 Scarborough Drive, spoke regarding health and safety inspection issues with rental properties. Courtney Stevens, Director of Community Affairs at CSU Student Government, stated the CSU students were opposed to the "three unrelated" ordinance and that it was unenforceable. She stated there were legal grounds to challenge the ordinance. She asked why an unenforceable law was being kept on the books and why nuisance laws were not being enforced. She stated the CSU Senate was working on legislation setting for its position on this issue. She asked that the Councilmembers state their individual positions on the "three unrelated" ordinance during Citizen Participation Follow-up. Dennis Parkhurst, 312 Locust Street, spoke regarding public access television Channel 68 and stated that Comcast continued to fail to meet franchise requirements regarding public access facilities. Martha Denny, Rolland Moore Neighborhood, spoke in support of rental licensing to help maintain neighborhoods. She stated the "three unrelated" ordinance was one tool among many needed to maintain neighborhood character. She stated such ordinances had been challenged in other communities and were upheld by the courts. She stated density must be respected in single-family low density neighborhoods or that there would be zoning changes "by default." She stated variances could be given by a board of appeal provided there was proper buffering. She stated the "three unrelated" ordinance was enforceable and could be made less cumbersome. She asked that the City Council show the "political will' to take action. 128 October 5, 2004 Dawn Wray, Public Access Network, showed a video illustrating shortcomings in cable television public access in Fort Collins compared with other communities. J. J. Johnston, President of Northern Colorado Economic Development Corporation, spoke regarding the Governor's Award for Downtown Excellence received by the City of Fort Collins, the Downtown Development, the Colorado Economic Development Commission, the Colorado Office of Economic Development and International Trade, the Enterprise Zone staff, the Front Range Community College, First National Bank, Doane Construction and In -Situ in connection with the relocation of In -Situ to the downtown. He stated many other organizations were also involved in welcoming In - Situ to Fort Collins. Sally Scrivner,1236 Constitution Avenue, summarized herconcems regarding rental properties and expressed support for a rental licensing ordinance and enforcement of existing ordinances. She supported the addition of police officers to deal with neighborhood enforcement issues. Joseph Marshall, Collegian newspaper opinion column writer, supported rental licensing to improve student housing conditions. He stated the problem of more than three people living in a single house in low density neighborhoods needed to be addressed. Lloyd Walker, Rolland Moore Neighborhood Network, spoke in support of rental licensing for low density single-family neighborhoods in the R-L and N-C-L zones. He stated residential rentals should be treated as a business and that rentals were changing the character of neighborhoods. He stated low density areas were becoming higher density by default. He stated students would benefit from rental licensing because it would aid in the enforcement of City codes, would contribute to safer dwellings, and would allow landlords in violation of City ordinances to be tracked and sanctioned. He stated residential neighborhoods would be more liveable for all residents. Doug Brobst, 1625 Independence Road, spoke regarding misinformation and misconceptions about rental licensing. He stated inspections would look for health and safety problems in rental housing. He expressed a concern that the input given to the Council would be slanted due to the misinformation that had been circulated about rental licensing. Katie Clausen, President of ASCSU, stated there was misinformation about the issue of rental licensing in the Collegian. She stated ASCSU had not taken an official stand on rental licensing at this point. Citizen Participation Follow-up Mayor Martinez stated he would be proposing under Other Business that additional officers be assigned to neighborhood issues. Councilmember Tharp stated there were problems with "park `n ride" at the Senior Center because the parking lot had become a place for students to park to catch the bus to CSU. She also requested information regarding the Comcast franchise agreement requirements regarding public access. City Attorney Roy stated Comcast was meeting the requirements of the franchise agreement in the areas 129 October 5, 2004 set forth in complaints that had been received by the City. Councilmember Tharp stated she would like the new franchise agreement to better address public access needs. She stated one of the speakers asked about Councilmembers' positions on rental licensing and that her position was the "three unrelated" ordinance should be enforced or possibly modified. She stated she was looking for a compromise between enforcement of the existing ordinance and offering some kind of variance for larger houses. She stated her emphasis was on health and safety, modifying or eliminating laws that were not functional, and preserving neighborhoods. Councilmember Bertschy stated a study session was scheduled on the rental licensing issue. He stated the key for him was using "informed consent" to develop a decision that would be acceptable to most people. He stated he did not believe that the Council had "informed consent" on the issue at this point. He stated the City would continue to hear everyone's opinions and perspectives and that the Council did not yet have a position on the issue. Councilmember Roy asked about the time frame for franchise negotiations with Comcast. Interim City Manager Atteberry stated he would provide a memo to the Council on the negotiations. Councilmember Roy stated he was concerned about health and safety issues for rental properties. He stated he supported the "three unrelated" ordinance and that he understood that it did not work. He thanked Ms. Scrivner for her letters to the Council. Mayor Martinez asked if the City was still negotiating with Comcast. Interim City Manager Atteberry replied in the affirmative. Councilmember Weitkunat thanked Mr. Johnston for presenting the Governor's Special Achievement Award. She stated In -Situ would be a "wonderful company" for Fort Collins. She asked if there were health and safety requirements for rental housing. Interim City Manager Atteberry stated there were minimum habitability codes on the books. Councilmember Weitkunat stated it would be helpful for people to understand that there were codes in place regarding habitability. She stated this community was 48% rental housing and that this was not a "CSU versus community issue." She expressed concerns about the impact of rental licensing on tenants and their rights. She stated the "three unrelated" ordinance affected tenants besides students. Councilmember Hamrick requested information about public access requirements in Denver and Longmont compared with the current requirements in Fort Collins. Councilmember Kastein stated he had not yet reached any conclusions about the rental licensing issue. Mayor Martinez stated there were important issues relating to rental licensing and that all tenants, including immigrants, would be impacted. 130 October 5, 2004 Agenda Review Interim City Manager Atteberry stated there would be a brief presentation relating to code enforcement issues at this meeting. He also stated Item #21, Resolution 2004-118 Submitting the Existing Conditions Study and Urban Renewal Plan for the North College Corridor Area to the Planning and Zoning Board, the Poudre School District Board of Education, and the Larimer County Board of Commissioners, had a revised Resolution and revised Urban Renewal Plan. Councilmember Weitkunat asked if Item #21 would remain on the Consent Calendar. Interim City Manager Attebeny replied in the affirmative. Councilmember Kastein asked if Council should be afforded an opportunity to review the changes to Item #21. City Attorney Roy read the revisions to Resolution 2004-118. Councilmember Bertschy stated it was his understanding that the item was to be pulled from the Consent Calendar. City Attorney Roy stated staff's position was that this was a "living document" and that revisions could be made in the future to the current document. He stated the compromise was to add a provision to the Resolution. Mayor Martinez withdrew Item #21 from the Consent Calendar for further discussion. CONSENT CALENDAR Consideration and approval of the Council meeting minutes of August 17, 2004 and the adjourned meeting minutes of July 27, 2004. 8. Items Relating to the EPA -supervised Environmental Remediation at the Poudre River and Northside Aztlan Community Center Property. A. Second Reading of Ordinance No. 146, 2004, Authorizing the Conveyance of Permanent, Non -Exclusive Easement Interests to Public Service Company of Colorado and the United States Environmental Protection Agency for Environmental Remediation Activities and Facilities on the Northside Aztlan Community Center Property. B. Second Reading of Ordinance No. 147, 2004, Authorizing the Conveyance of an Easement on the Gustav Swanson Natural Area to North Weld County Water District for Relocation of a Water Line From Its Existing Location on the Natural Area Ordinance No. 146, 2004, which was unanimously adopted on First Reading on September 21, 2004, conveys permanent easements to Public Service Company of Colorado and the U.S. Environmental Protection Agency. This provides an area for construction and operation of remediation structures and equipment. 131 October 5, 2004 Ordinance No. 147, 2004, which was also unanimously adopted on First Reading on September 21, 2004, provides an easement across a City -owned natural area, allowing realignment of the existing North Weld County Water District water line. Second Reading of Ordinance No. 148, 2004 Appropriating Unanticipated Revenue in the Amount of $26, 00 for a Perpetual Easement at 259 South College Avenue. the Armstrong Hotel. In 2003, the Colorado Historical Society awarded the City of Fort Collins a State Historical Fund grant of $171,000. This money was appropriated in Ordinance 107. The building owners, the Levinger family, already provided to the City the $339,000 cash match for the grant. The grant funds are currently financing the rehabilitation of 259 South College Avenue in Fort Collins. As part of the grant requirements, the building owners must give a perpetual easement on the building to an approved entity. The building owners selected the Colorado Historical Foundation to hold the perpetual easement. This Ordinance, which was unanimously adopted on First Reading on September 21, 2004, appropriates funds for a perpetual easement for the Armstrong Hotel, 259 South College Avenue. 10. Second Reading of Ordinance No. 149, 2004, Authorizing the Lease of City -owned Property at 3620 Kechter Road for Up to Five Years. The City acquired this property as part of the Affordable Housing Land Bank Program. The property is composed of five acres of development land with a single family dwelling. In accordance with the highest and best use, the City will eventually divide the property into four acres of development land and a one -acre residential property. One of the goals of the Land Bank Program is to hold land for a minimum of five years. Leasing the property during this time period generates revenue for the program, eliminates ground maintenance and discourages vandalism in empty structures. The City will lease the residence as a horse property with acreage. Ordinance No. 149, 2004, was unanimously adopted on First Reading on September 21, 2004. 11. Second Reading of Ordinance No. 150, 2004, Authorizing the Lease of City -owned Property at 149 Grandview Road for Up to Five Years. The City built this house for use by the Cemetery Superintendent. Since this position has been eliminated, the City does not need to use this house as a staff residence. CLRS staff considered moving the building to Roselawn Cemetery to be used as a maintenance facility. Researching this option, staff concluded that it would not be cost effective to move and remodel the house into a maintenance shop. This Ordinance, which was unanimously adopted on First Reading on September 21, 2004, allows staff to keep the house rented for up to five years. 132 October 5, 2004 12. Items Related to Lease of City -Owned Property at 1506 West Horsetooth Road. A. Second Reading of Ordinance No. 151, 2004, Authorizing the Lease of City -owned Property at 1506A West Horsetooth Road for Up to Five Years. B. Second Reading of Ordinance No. 152, 2004, Authorizing the Lease of City -owned Property at 1506B West Horsetooth Road for up to Five Years. The City acquired this property as part of the Affordable Housing Land Bank Program (the "Land Bank Program"). The property is composed of 8.3 acres of development land. Currently this site has one single family residence, one building with an efficiency apartment and garage, and facilities for a horse property. One of the goals of the Land Bank Program is to hold land for a minimum of five years. Leasing the property during this time period generates revenue for the program, eliminates ground maintenance and discourages vandalism in empty structures. The lease for 1506A West Horsetooth Road will include the single family residence, the garage, and the horse facilities. The lease for 1506B West Horsetooth Road will be for the efficiency apartment. These Ordinances were unanimously adopted on First Reading on September 21, 2004. 13. Second Reading of Ordinance No. 153, 2004, Authorizing the Lease of City -owned Property Consisting of a Portion of the Edora Pool Ice Center (EPIC) for Five Years City staff worked with NCYH and identified a 177 square foot area that was an office formerly used by EPIC staff and a custodial room. This space is not currently needed for City staff. The City will perform a minimal tenant finish on the space to include painting, carpeting, and adding a door between the two rooms. Ordinance No. 153, 2004, which was unanimously adopted on First Reading on September 21, 2004, authorizes the lease of City - owned property. 14. Items Related to Easements for the New Centers for Disease Control Facility. A. Second Reading of Ordinance No. 154, 2004, Authorizing the Conveyance of a Non- exclusive Utility Easement to Xcel Energy on City Property at North Overland Trail and West Mulberry Street for a Natural Gas Line. B. Second Reading of Ordinance No. 155, 2004, Authorizing the Conveyance of a Non- exclusive Utility Easement to the Centers for Disease Control and Prevention on City Property at North Overland Trail and West Mulberry Street for a Wastewater Service Line. The CDC is building a new facility near Fort Collins on the Colorado State University Foothills Campus. In order to construct the facility, the CDC requires a utility easement from the City for its wastewater service line over, under, and across a portion of City -owned 133 October 5, 2004 property at the substation site on North Overland Trail and Mulberry Streets. The requested easements will not interfere with the City's use of this property. The Utilities Department staff has no objections to these easement requests. These Ordinances were both unanimously adopted on First Reading on September 21, 2004. 15. Second Reading of Ordinance No. 156, 2004, Authorizing the Conveyance of a Non- exclusive Easement for a Fiber Optic Duct Bank and Irrigation Waterline to Poudre School District on a Portion of the Staley Neighborhood Park Site. The proposed 10-foot wide fiber optic duct bank and irrigation line easement (.117 A) is located along the northerly boundary of the Staley Neighborhood Park adjacent to Kechter Road. This easement is beneficial to the City because the irrigation line will be shared by the Poudre School District and the City when the Park is developed. Ordinance No. 156, 2004, was unanimously adopted on First Reading on September 21, 2004. 16. Second Reading of Ordinance No. 157, 2004, Authorizing the Conveyance of a Non - Exclusive Easement to Poudre Valley Rural Electric Authority (PVREA) for the Construction of an Electric Service Line to Serve the Visitor Center at Fossil Creek Regional Open Space. PVREA is providing electrical service to the nearly completed Visitor Center on the Fossil Creek Reservoir Regional Open Space property located north of East County Road 32. While the underground line is part of the approved Larimer County plan for the improvements to the property, including the Visitor Center, PVREA requires that the property owners of record provide a ROW easement for the underground utility easement. Larimer County and City of Fort Collins each own a 50% interest in the property. This Ordinance, which was unanimously adopted on First Reading on September 21, 2004, authorizes the City Manager to execute an underground utility easement 10 feet wide, 5 feet each side of power line center and appurtenances, as approved by Larimer County, across the Fossil Creek Reservoir Regional Open Space property jointly owned by the City and Larimer County. 17. Second Reading of Ordinance No. 158, 2004, Authorizing the Long -Term Lease of Property at the Fort Collins -Loveland Municipal Airport to TAS Enterprises, Inc. for the Construction of an Aircraft Hangar. This Ordinance, which was unanimously adopted on First Reading on September 21, 2004. The ground lease allows TAS Enterprises to construct a 60 foot by 140 foot hangar for personal aircraft storage. 18. Items Relating to Petitions for Initiative. Referendum, and Recall. A. Second Reading of Ordinance No. 159, 2004, Amending the General Form for Petitions for Initiative, Referendum, and Recall. 134 October 5, 2004 B. Second Reading of Ordinance No. 160, 2004, Amending Chapter 7 of the City Code so as to Include a New Article 7 Pertaining to Election Offenses. These ordinances would, in combination, seek to ensure that persons who are asked to sign an initiative or referendum petition are properly informed of the purpose of the petition. Ordinance No. 159, 2004, which was unanimously adopted on First Reading on September 21, 2004, amends the standard form of the initiative, referendum or recall petition so as to include a warning on each page of the petition encouraging potential signers to read the full text of an initiated or referred measure or the purpose statement of a recall petition. Ordinance No. 160, 2004, which was unanimously adopted on First Reading on September 21, 2004, requires all petition circulators, upon request, to read the full text of an initiated or referred measure, or the purpose statement of a recall petition to any person requesting such assistance. 19. First Reading of Ordinance No. 161, 2004, Apmooriating Prior Year Reserves and Unanticipated Revenue in Various Funds and Authorizing the Transfer of Appropriated Amounts Between Funds. The purpose of the annual clean-up ordinance is to combine dedicated revenues or reserves that need to be appropriated before the end of the year to cover the related expenses that were not anticipated and therefore not included in the 2004 budget. The unanticipated revenue is primarily from fees, charges, rents, contributions and grants that have been paid to City departments to offset specific expenses. Prior year reserves are primarily being appropriated for unanticipated operation expenses from reserves that are set aside for that purpose. 20. First Reading of Ordinance No. 162, 2004, Amending Section 2-140 of the City Code Concerning the Citizen Review Board's Review of Police Internal Investigations. The Citizen Review Board recommends that this language be changed to the following: "Upon completion of its review, the board shall concurrently convey any observations or recommendations regarding the administrative investigation conducted by Police Services, and the findings reached by the investigating and reviewing officers(s), to the City Manager and the Chief of Police." The Citizen Review Board recommends the above in order that its mission be more clearly defined. The new language will change the board's mandate from recommendations concerning sufficiency and accuracy of the investigation itself to recommendations and observations about both the investigation and the investigative findings. 135 October 5, 2004 21. Resolution 2004-118 Submitting the Existing Conditions Study and Urban Renewal Plan for the North College Corridor Area to the Planning and Zoning Board, the Poudre School District Board of Education, and the Latimer County Board of Commissioners. On June 15, 2004, the City Council adopted Resolution 2004-076 authorizing and directing staff to prepare a Study of Existing Conditions relative to certain "Blight Factors" in the Colorado Urban Renewal Law and an Urban Renewal Plan for the North College Corridor Area. Since that time, staff has worked with a Citizens Advisory Committee, composed of business owners, business tenants, and members of the Planning and Zoning Board, to develop these documents. Before the Council can officially approve the Urban Renewal Plan, State law, specifically Colorado Revised Statutes 31-25-107(2), requires the Council to formally submit the Urban Renewal Plan to the Planning and Zoning Board for its review and recommendation as to the Urban Renewal Plan's conformity with City Plan, the City's Comprehensive Plan, which is the general plan for development of the municipality as a whole. 22. Resolution 2004-119 Approving Expenditures from the Art in Public Places Reserve Account in the Water Fund to Commission an Artist to Create Sculptural Elements for the Water Cycle Wall Expansion Project. This Resolution would approve expenditures of $37,000 for design, fabrication, installation, signage and contingency for a project to install sculptural elements by Joe McGrane at the Water Cycle Wall outdoor classroom site. 23. Resolution 2004-120 Authorizing an Intergovernmental Agreement with the United States Fish and Wildlife Service Regarding Conservation of the Threatened Colorado Butterfly Plant on Meadow Springs Ranch. The Colorado butterfly plant (also known as Gaura) is a threatened species found primarily in Wyoming and Nebraska. It has also been found living in a small portion of city -owned Meadow Springs Ranch. This location contains the only known Gaura population in Colorado. The USFWS has approached the City with a request to enter into a voluntary conservation agreement. A conservation agreement would spell out certain best management practices, such as grazing density and duration, the use of herbicides, and haying. Current range management practices align well with the goals of the USFWS, and would serve to fulfill the requirements of a conservation agreement. The Ordinance authorizes the City to convey the conservation agreement. ***END CONSENT*** 136 October 5, 2004 Ordinances on Second Reading were read by title by City Clerk Krajicek. Items Relating to the EPA -supervised Environmental Remediation at the Poudre River and Northside Aztlan Community Center Property. A. Second Reading of Ordinance No. 146, 2004, Authorizing the Conveyance of Permanent, Non -Exclusive Easement Interests to Public Service Company of Colorado and the United States Environmental Protection Agency for Environmental Remediation Activities and Facilities on the Northside Aztlan Community Center Property. B. Second Reading of Ordinance No. 147, 2004, Authorizing the Conveyance of an Easement on the Gustav Swanson Natural Area to North Weld County Water District for Relocation of a Water Line From Its Existing Location on the Natural Area 9. Second Reading of Ordinance No 148 2004 Appropriating Unanticipated Revenue in the Amount of $26,500 for a Pemetual Easement at 259 South College Avenue, the Armstrong Hotel. 10. Second Reading of Ordinance No. 149, 2004, Authorizing the Lease of City -owned Property at 3620 Kechter Road for Up to Five Years. 11. Second Reading of Ordinance No. 150,2004, Authorizing the Lease of City -owned Property at 149 Grandview Road for Up to Five Years. 12. Items Related to Lease of City -Owned Property at 1506 West Horsetooth Road A. Second Reading of Ordinance No. 151, 2004, Authorizing the Lease of City -owned Property at 1506A West Horsetooth Road for Up to Five Years. B. Second Reading of Ordinance No. 152, 2004, Authorizing the Lease of City -owned Property at 1506B West Horsetooth Road for up to Five Years. 13. Second Reading of Ordinance No. 153,2004, Authorizing the Lease of City -owned Property Consisting of a Portion of the Edora Pool Ice Center (EPIC) for Five Years 14. Items Related to Easements for the New Centers for Disease Control Facility. A. Second Reading of Ordinance No. 154, 2004, Authorizing the Conveyance of a Non- exclusive Utility Easement to Xcel Energy on City Property at North Overland Trail and West Mulberry Street for a Natural Gas Line. B. Second Reading of Ordinance No. 155, 2004, Authorizing the Conveyance of a Non- exclusive Utility Easement to the Centers for Disease Control and Prevention on City 137 October 5, 2004 Property at North Overland Trail and West Mulberry Street for a Wastewater Service Line. 15. Second Reading of Ordinance No. 156, 2004, Authorizing the Conveyance of a Non- exclusive Easement for a Fiber Ootic Duct Bank and Irrigation Waterline to Poudre School District on a Portion of the Staley Neighborhood Park Site. 16. Second Reading of Ordinance No. 157, 2004, Authorizing the Conveyance of a Non - Exclusive Easement to Poudre Valley Rural Electric Authority (PVREA) for the Construction of an Electric Service Line to Serve the Visitor Center at Fossil Creek Regional Open Space. 17. Second Reading of Ordinance No. 158, 2004, Authorizing the Long -Term Lease of Property at the Fort Collins -Loveland Municipal Airport to TAS Enterprises, Inc. for the Construction of an Aircraft Hangar. 18. Items Relating to Petitions for Initiative. Referendum. and Recall. A. Second Reading of Ordinance No. 159, 2004, Amending the General Form for Petitions for Initiative, Referendum, and Recall. B. Second Reading of Ordinance No. 160, 2004, Amending Chapter 7 of the City Code so as to Include a New Article 7 Pertaining to Election Offenses. Ordinances on First Reading were read by title by City Clerk Krajicek. 19. First Reading of Ordinance No. 161, 2004, Appropriating Prior Year Reserves and Unanticipated Revenue in Various Funds and Authorizing the Transfer of Appro nn sated Amounts Between Funds. 20. First Reading of Ordinance No. 162, 2004, Amending Section 2-140 of the City Code Concerning the Citizen Review Board's Review of Police Internal Invests atg ions. 28. First Reading of Ordinance No. 163, 2004, Authorizing the Execution of an Administrative Order on Consent By the United States Environmental Protection Agency and a Related Environmental Covenant in Connection With Environmental Contamination and Remediation in the Cache La Poudre River Near the Northside Aztlan Community Center Property. Councilmember Weitkunat made a motion, seconded by Councilmember Roy, to adopt and approve all items not withdrawn from the Consent Calendar. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED 138 October 5, 2004 Staff Reports Interim City Manager Atteberry stated staff would have a report regarding nuisance complaint violations in response to a Council request. He stated the Code Enforcement Team was part of the Streets Division of Transportation Services. Ron Phillips, Transportation Services Director, presented visual information regarding the types of Code enforcement cases handled and the number to date of violation notices. He stated 88% (over 9,800 cases) were corrected by the property owner and that 12% (1,404 cases) were abated by the City. He stated nearly 90% of the Code enforcement cases were identified through proactive inspections by the Code enforcement inspectors and that the other 10% were generated by citizen complaints. He stated unshoveled sidewalks, inoperable vehicles, weeds and rubbish constituted the vast majority of Code enforcement violations. He stated public nuisance violations involved the issuance of tickets by Code Enforcement for Code violations, by Animal Control for animal disturbances, by the Police Department for unreasonable noise, and by other departments such as the Zoning Department for zoning violations. He stated after a ticket was issued the public nuisance process began and a notice of violation was sent. He stated in 2003 there were 58 first violation notices for violation of the public nuisance ordinance and that to date in 2004 there had been 506 first violation notices. He stated for the year to date there had been 56 second violation notices, five third violation notices, one fourth violation notice, and no fifth violation notices. He stated 11,092 cases were handled through notices or abatement and that 58 tickets were issued under the public nuisance ordinance. He stated most problems were taken care of without a ticket being written. He stated additional information on the broader issue would be presented at next week's study session. Councilmember Kastein stated for the study session, he would like to know how many calls for Code enforcement there had been since the public nuisance ordinance was enacted in 1999, how many had resulted in tickets or abatement, and how many public nuisance ordinance violation tickets had been issued. Phillips stated since 1999 the case volume had gone up from 5,200 cases to 12,524 cases in 2003. He stated the projected number of cases for 2004 was 15,492. Interim City Manager Atteberry reported that Fort Collins city government website (fcgov.com) had earned a first place for 2004 for "Best of Website" award from the Center for Digital Government. He also congratulated Pete Wray, Senior Planner, and others for receipt of an award from the Colorado Chapter of American Planning Association for the East Mulberry Corridor Plan. He reported that he would be signing an agreement with 18 other agencies as part of an application to the Public Utilities Commission to expand the local calling area in northern Colorado to include Greeley and other cities. He stated it was likely that Qwest would be requesting a rate increase of 6¢ per month per residential line as a result of the expanded service area. He stated the Public Utilities Commission would hold a hearing on the local calling area expansion on December 9, 2004. 139 October 5, 2004 Councilmember Reports Councilmember Tharp thanked Ron Phillips for his presentation on the nuisance ordinance enforcement and noted that there had been great improvement in the level of enforcement. Councilmember Weitkunat reported that she and Councilmember Tharp had been working with the "EVSAG 11" Committee. She stated there were six openings on the Committee and that the appointment process would be opened to the community at -large for the categories that were available. She stated this would prolong the process and that the Committee would be activated in November. She stated the open categories were in affordable housing; arts, entertainment, recreation and tourism; education and non-profit; professional services and human resources; entrepreneurial activities; and a citizen at -large. Councilmember Tharp stated it was requested that applicants not be members of existing boards and commissions. She stated it was requested that interested individuals submit information indicating why they wanted to serve on the Committee. She stated recommendations would be made to the Council as a whole, which would make the appointments. Councilmember Hamrick stated he would like to see information about the categories that were currently filled on the Committee. He asked if Councilmembers Tharp and Weitkunat would have more than six recommendations for Council consideration. Councilmember Tharp stated the intent was to narrow the list to six and some back-up names. Mayor Martinez suggested the inclusion of information on the City's website. Councilmember Bertschy thanked staff for the presentation on nuisance enforcement. Resolution 2004-121 Authorizing the City Manager to Negotiate a Draft Intergovernmental Agreement with the City of Loveland to Provide Transit System Services Within Loveland, Adopted The following is staff's memorandum on this item. "FINANCIAL IMPACT The projected expense for Transfort/Dial-A-Ride to operate the COLT System is $900,000. The supporting revenue for these expenses will come from the City of Loveland, federal grants, fares, and advertising. All the expenses for administration, operation, maintenance, and capital will be included in the Intergovernmental Agreement (IGA). 140 October 5, 2004 EXECUTIVE SUMMARY For the past two years, City staff has been discussing with Loveland the possible management of COLT by the Transfort/Dial-A-Ride staff. The City of Loveland's staff has examined various methods and agencies to operate COLT. In 2005, COLT is projecting comparable service to the Transfort/Dial-A-Ride estimate to be $947,258. Following the designation of Berthoud, Loveland, a portion of Larimer County, and Fort Collins as a Transportation Management Area (TMA), Loveland realized the significant supervisory and administrative requirements needed to adhere to the federal regulations. COLT had to increase its staffing. Electing to contract instead of hiring additional staff, Loveland's City Manager requested a proposal from Fort Collins to operate COLT. Since May 2004, weekly discussions have been on- going between the two communities to develop satisfactory terms. The Intergovernmental Agreement negotiations should be completed by November 2004. The projected COLT service start date will be 3-4 months after the execution of the IGA. BACKGROUND The Transfort/Dial-A-Ride staff has nearly completed a proposal and negotiations to provide full operational and administrative services to the City of Loveland for operation ofthe Loveland Transit System (COLT). The anticipated fee for these services is projected to be around $900,000 for the first year. The scope of service included in the contract is: • Administration of all state and federal grants/contracts • Operation of two (2) fixed route buses and approximately three (3) paratransit vehicles • Hiring, supervising, training, and scheduling all personnel • Paratransit dispatching/ride scheduling • On -street supervision • Vehicle maintenance and repair • Collection of fares and other revenues • Measuring and reporting on system performance Bene is The North Front Range Transportation & Air Quality Council has identified Regional Transit as an important element in the North Front Range 2030 Regional Transportation Plan. This coordination of transit services between communities, as currently reflected in the operation of the FoxTrot Bus Route between Fort Collins and Loveland, is the beginning for development of additional regional transit service. The City of Loveland has identified the following reasons for outsourcing the operation and management of COLT: 141 October 5, 2004 • More cost effective and efficient method of providing transit services • Enhanced customer service • Professional expertise of Transfort/Dial-A-Ride staff • Elimination of redundancy of administrative, dispatch and vehicle maintenance services • Enhanced ability to secure state and federal funding for system improvements For the City of Fort Collins this arrangement provides the benefits of: • Assisting Loveland with its transit needs through use of operational and management knowledge and skills of the City's existing personnel • Improving the customer service between the two communities by eliminating different operational policies and service levels such as standardizing fares • Administering the Federal Transit Administration (FTA) Grant for the Transportation Management Area (TMA) is the responsibility of the City of Fort Collins, and combining Transfort/DAR and COLT services will vastly improve the ridership reporting requirements and the federal grant submittals/payment requests. The enhanced measurement and reporting will result in additional revenue from FTA. • Increasing the opportunity for additional federal funds for both systems (see Financial Impact below) • Improving Transfort's staffing level to provide the COLT service will also enhance transit service to the Fort Collins customers through expanded Dial -A -Ride trip scheduling and on - street transit service coordination. Through this contract the City will add three positions that perform work tasks for both COLT and Transfort/Dial-A-Ride. One position will provide additional bus routing, training, and accident investigation, and the second position will provide additional customer intake and scheduling tasks for both agencies by adding to our capacity to accept customer's ride reservations for COLT and Dial -A -Ride. Customer service will increase due to the number of initial phone calls answered and reservations completed. The third position will handle financial, operating statistics, payroll, and reporting primarily for COLT, but also for Transfort/Dial-A-Ride. • The potential use of the Loveland vehicles for any incidental transit service needs in Fort Collins Financial The contract proposal includes reimbursement for all fully loaded expenses as shown below. There is no negative financial impact to the City as all expenses for administering and operating COLT are included. The expenditures have been projected at a higher level than those incurred by Transfort/DAR to allow for any future changes in economic conditions. Personnel — all expenses for bus operators, supervisor, dispatching, and grant administration are included. Three new positions have been proposed to meet COLT's service requirements and also improve Transfort/DAR's service level. These new positions will definitely improve Transfort/DAR's service in the form of Dial -A -Ride dispatching and scheduling, on -street supervision and route coordination, and will provide timelier, more accurate submission/drawdowns of federal grants and federal reporting. 142 October 5, 2004 2. Vehicles — all expenses for fuel, maintenance, fleet administration and repair of the COLT vehicles are included. Fort Collins is proposing to lease the vehiclesfor $1/yearper vehicle. COLT will be responsible for vehicle replacement. 3. Administration — all expenses for marketing, office supplies, office equipment, computer software, insurance, and other commodities are included. The major financial advantage to the City of Fort Collins is the potential of increased federal funding. This can happen in two ways. First, there is a strong potential that Fort Collins will be eligible for a larger share of the federal funding. Proposed FY2006 federal reauthorization legislation includes a provision that would limit federal funds to be spent only on "Capital Related Expenses" (80% fed & 20% local). If "Operating Expenses" are not allowed as an eligible expense, this creates a large problem for Loveland because most of their expenses are related to operation (fuel, drivers, etc), lessening Loveland's opportunity to utilize federal funds. Fort Collins has sufficient "Capital Related" expenses to spend the total federal appropriations. If these regulations are enacted, then potential federal funding of $100,0004150,000 would be available for use in the Transportation Management Area (TMA). The federal funding disbursement formula would need to be recalculated and approved by the TMA members (Berthoud, Loveland, Larimer County, and Fort Collins) and the MPO Council. Transfort probably would be the only transit system capable of using these funds. The second method of increasing the federal funds is through improved reporting of COLT's transit system performance figures. The federal funds can be increased by reporting key ridership data throughout the year. Transfort/DAR currently is the only transit system reporting this information. This data is utilized in a FTAfunding formula to determine annual grant appropriations. COLT has not been reporting this information, and by Transfort operating the COLT system, this information will be collected and reported to the FTA. The estimated increase in federal funds to the TMA is $50,000-$60,000. In FY2006, Transfort will probably be the only transit system capable of using these funds. These new federal funds would be utilized to fund capital expenses that are currently seeking funds, i.e. concrete repairs, shop equipment replacement and upgrades, fuel system upgrade, bus wash improvements, bus alternative fuel conversions, building repairs, software upgrades, emergency generator upgrade, and backup computer server. Maior Issue Pursuant to Section 5333(b) of the U.S. Code, the Department of Labor has certified arrangements which would require Loveland to compensate employees whose employment situation may be "worsened" as a result of federal assistance. While neither Loveland nor Fort Collins Transfort/Dial-A-Ride, human resources and legal staffs have concluded that any potential adverse effects to employees resulting from Loveland's decision to contract with Fort Collins for transit services would be as a result of Federal assistance, those staffs have been working together to create strategies that minimize potential impacts to employees. Final discussions need to be held with Loveland. 143 October 5, 2004 Next Steps Pending City Council's approval to move ahead, staff will present a draft intergovernmental agreement (IGA) to Loveland staff for its review and approval. Following approval by both Loveland and Fort Collins administrative staff, the IGA will be submitted to both City Councils for approval. It will take about 3-4 months after the IGA has been approved to begin the COLT service. The goal is to begin service as close to the first of the year as possible. " Interim City Manager Atteberry introduced the agenda item and stated the Resolution would authorize staff to move forward in working with the City of Loveland to negotiate an intergovernmental agreement. He noted that the Public Works Director for the City of Loveland was present. Tom Frazier, Multi -Modal Transportation Group Leader, stated this would provide an opportunity to negotiate an agreement with the City of Loveland. He presented background information regarding the operation of the City of Loveland Transit (COLT) system. He stated a transit study was done on options for that operation and that the Loveland City Council directed Loveland staff to talk with the City of Fort Collins about a firm proposal for the City to operate COLT. He stated the City of Loveland would benefit in an increased level of efficiency, enhanced customer service and the immediate provision of professional expertise without hiring additional staff. He stated some redundancies in capital grant administration would be eliminated. He stated two fixed route buses and three paratransit vehicles would be added to the Fort Collins system. He stated this was an opportunity for the City to add staffing to focus on Loveland while providing additional work for Fort Collins that could not be accomplished due to hiring freezes. He stated currently part of the City's responsibility as the designated recipient for federal transportation administration funds was to "pass through" dollars to the City and also to Loveland and Berthoud. He stated part of the City's responsibility was to ensure that those other communities were in compliance with all federal regulations. He stated the City would continue to provide that service and would now be reimbursed for doing so. He stated there would be benefits to both the Cities of Fort Collins and Loveland. He stated Dial -a -Ride service would be more readily available for transportation to Loveland (McKee Hospital, etc.) because customers would have to call only one dispatcher. He stated the proposal would include all of the costs to the City. He stated the costs to be passed on to Loveland would include additional staffing, incidental expenses, liability insurance, administrative (fleet) costs, and other administrative costs. He stated current federal regulations allowed federal money to be used for both operating and capital expenses and planning on a 50/50 basis. He stated Loveland would be using its federal funds for operating costs. He stated Loveland may not be able to use all of its federal dollars and that there would therefore be additional federal dollars available to Fort Collins. He stated the major issue related to employees and that there was a risk if any current positions at the City of Loveland were "harmed." Mayor Martinez asked what the payment from Loveland would be to cover the City's costs. Frazier stated detailed discussions with Loveland had not yet taken place. Mayor Martinez asked if the costs would be comparable to what the private market would charge and if all capital costs (including buildings and storage) would be included. Frazier stated there 144 October 5, 2004 would be operational and start-up costs, and that the latter would include a series of capital costs to upgrade their vehicles. He stated any future vehicle replacement would go through the same grant process that Fort Collins goes through. He stated the City's current bus washing and fueling facilities were adequate to take care of additional vehicles and that there would be no cost for a building for storage. Mayor Martinez asked if there were adequate facilities if the City added another route or two. Frazier stated the Ten Year Transfort Strategic Plan adopted in 2002 included costs for expansion of facilities needed for additional routes. Mayor Martinez asked if that plan included the Loveland expansion. Frazier replied in the negative. Mayor Martinez asked how the Loveland costs would fit with the plan. Frazier stated the contract with Loveland would involve leasing vehicles from Loveland for a period of time and intermixing those vehicles with the existing fleet. He noted that some existing vehicles were stored inside and some were stored outside. Mayor Martinez asked if any part of the funding would hinge on grants. Frazier stated the only piece that hinged on the Loveland General Fund would be a pending job access and reverse commute grant in the amount of $110,000. He stated if that grant was received that the Loveland General Fund contribution would be reduced. He stated the remainder of funding would be based on continuation of operating dollars at the current level or an increased level for the entire transportation management area (Fort Collins, Loveland, and Berthoud). Mayor Martinez asked if the cost would be covered at a "break even" level. Frazier stated the costs would be covered at better than a "break even" level. Mayor Martinez asked for more details on the staff statement that this would not tax the City's system greatly. Frazier stated this service would be provided in an adjacent community and that more staff would be hired to spend more time on the Loveland service. Mayor Martinez asked for more information on the sharing of federal funds. Frazier stated federal dollars depended on reauthorization by Congress. He stated available funding would be determined after that reauthorization and that there were ways to increase the money by reporting "operating statistics." Ron Phillips, Transportation Services Director, stated Congress recently did an eight month extension of the present authorization bill. Mayor Martinez expressed a concern about the City of Fort Collins conducting government operations outside of the City for another government. He stated this could appear to contradict the City's policies in other areas (such as providing utility service to Laporte). Phillips stated utility services to the Laporte area were initiated with Council approval. He stated the City also had mutual aid agreements with other fire departments and law enforcement agencies. He stated small municipalities sometimes contracted with the City to rent large equipment. Frazier stated the City provided the Fox Trot bus route in Fort Collins and Loveland with funding from Larimer County and the Cities of Fort Collins and Loveland. He stated there was also a contract with Larimer County 145 October 5, 2004 to provide service in the Laporte area. He stated it was traditional in the transportation industry for larger transit service agencies to provide service to outlying areas. Mayor Martinez asked if the City provided water treatment for other jurisdictions. Interim City Manager Atteberry replied in the affirmative. He stated approval of the Resolution would authorize the staff to move forward with negotiations and that staff would not bring back a recommendation that would be a "loser" or a "break even" for the City. He stated any proposal would have quantifiable benefits to Fort Collins and its citizens. Mayor Martinez expressed a concern that this could become a "win/break even" situation for Fort Collins. Councilmember Weitkunat asked if there would only be two fixed Loveland routes. Frazier stated there would be two fixed routes and three or four paratransit vehicles. Councilmember Weitkunat asked how many additional staff members would be hired. Frazier stated there would be three hired beyond the drivers. Councilmember Weitkunat asked how this would fit with the City's transit plan and how it would affect the City's routes. Frazier stated this would affect the Ten Year Plan in a positive way because it would be a step toward regional transit service, which was one of the objectives of the MPO. He stated this would benefit the overall City plan by providing opportunities to tie into routes to other places. He stated the Ten Year Plan would be dependent upon available funds. Councilmember Weitkunat stated she had a concern about funding in the next budget cycle and whether this would use up any allocated dollars and negatively affect the City's plan. Frazier replied in the negative. Councilmember Weitkunat asked if this would in effect make the City an "RTA." Frazier stated it could as far as regional planning but that regional service would not necessarily be provided by Transfort or Dial -a -Ride. Councilmember Weitkunat asked if this would be a "conduit" for regional service. Frazier replied in the affirmative and stated regional transit required cooperative efforts. He stated the City could "broker" regional service but not necessarily provide it. Councilmember Weitkunat asked about the relationship that would exist between Transfort and the Loveland City Council. Frazier stated the intergovernmental agreement would be a contract for performing services. Phillips stated the agreement would be between the two cities and that Transfort would carry out the agreement under City of Fort Collins jurisdiction. Councilmember Weitkunat asked about the term of the agreement. Frazier stated would be determined during the negotiations. 146 October 5, 2004 Councilmember Kastein stated he would support the idea of developing an intergovernmental agreement. He stated he would like to see certain criteria included in the agreement. He stated it would be important to see how Fort Collins would benefit from the arrangement. He noted that Fort Collins spent a lot of time and resources crafting the Ten Year Plan and asked if Fort Collins would be involved in crafting a strategic plan for Loveland after this original agreement expired. Frazier stated Loveland had a staff person working on a strategic plan and that future planning would depend on how Loveland wanted to handle that. He stated in the interim Transfort staff would probably offer input on how the Loveland system could be improved. Councilmember Kastein stated he would like to see a clear separation between "what Fort Collins does for Loveland and what Loveland does for themselves." He asked if any expanded City facilities would be required to house Loveland equipment and whether Loveland would pay for that. Frazier stated the agreement could be structured in that way. Councilmember Kastein stated he would like this to be a "clear win" for Fort Collins. He noted that it would be harder for the City to "walk away" in the future if facilities were built larger than Fort Collins alone needed in order to house Loveland equipment. Frazier stated the two cities could consider pooling available federal dollars for capital expansion. He stated facilities were typically built for five to 10 years and that the agreement would specify that if either City decided to cancel the agreement that the City would be able to use the facility for its own future expansions. Phillips stated a joint application for funding could be a higher priority than other projects. Councilmember Hamrick asked if there was an opportunity for more federal funding if increased ridership could be demonstrated. Frazier replied in the affirmative. Councilmember Hamrick asked if there were ridership tiers that would be used to determine funding. Frazier stated there was a formula based on population, population density and passenger miles provided. Councilmember Hamrick asked if it was correct that Loveland was not reporting ridership numbers. Frazier replied in the affirmative. Councilmember Hamrick noted that federal funding would hinge on reporting that was done for the entire transit management area. Frazier stated was correct. Councilmember Hamrick asked if the capital dollars not being used by the smaller communities could be leveraged for the City's hydrogen efforts. Frazier stated all replacement vehicles were scheduled to be alternative fuel vehicles. He stated by December the Transfort fueling station would be complete and would have compressed natural gas and hydrogen for running future buses. Councilmember Hamrick asked about the Fast Tracks ballot issue that would take light rail to Longmont and whether the City could leverage that through this type of agreement. Frazier stated the funding for Fast Tracks could be spent only in the designated district. He stated the City could leverage service to the boundary. Phillips stated the I-25 Environmental Impact Study was looking at how this region could connect to Fast Tracks if it passed in November. 147 October 5, 2004 Councilmember Hamrick stated it was difficult to put a dollar figure on cleaner air and the opportunity to connect to regional transit in Longmont. Councilmember Tharp stated it appeared that staff would consider all of the City's costs in the negotiations, that the City would recoup all of its costs and that the City would be "paid for all of its work." She asked if the capital investment already made by the City for bus washing facilities, storage buildings, etc. would be factored into the negotiations. Frazier stated the Loveland fleet was so small that nothing had been factored in for capital costs except for items such as shop lifts, fueling system upgrades, etc. He stated 80% of the City's site and buildings were paid for with federal grant money. He stated the analysis would look at the City's 20% piece of the capital costs. Councilmember Tharp stated the agreement should provide that the City would be paid for any increase in services in that area that occur during the term of the contract. She stated the intergovernmental agreement should also specify that the City would have recourse such as mediation in the event that Loveland does not fulfill its part of the agreement. She stated she would like to see a "strong" intergovernmental agreement. She stated participation in a regional effort could mean more success in obtaining federal funding. She stated there were issues regarding the Loveland employees who would not necessarily continue as employees of the City's system. She stated the agreement should make it clear regarding whose responsibility that would be. She spoke in favor of this regional effort and stated she would look forward to seeing the specifics of the intergovernmental agreement. Mayor Martinez asked how Transfort would absorb the extra vehicles if the City of Loveland decided to contract with another city for the service in the future. He asked if the intergovernmental agreement would include "cost of living adjustments" for capital. Frazier stated the City would lease the vehicles from the City of Loveland for $1.00 per year. Mayor Martinez asked who would buy buses for additional routes. Frazier stated at this point the existing routes would be covered by the agreement and that buses for any future routes would be added to Loveland's capital plan submitted for federal funding. He stated in this scenario Loveland would pay the local match for those buses. Mayor Martinez asked if the agreement would anticipate rising fuel costs. Frazier replied in the affirmative. Councilmember Bertschy made a motion, seconded by Councilmember Tharp, to adopt Resolution 2004-121. Councilmember Kastein stated it was important that Fort Collins "gains" from this contract. He expressed a concem that this would be a "distraction" and a new responsibility. He stated the City should "make some money" in exchange for that distraction and added responsibility. He stated he would like to see some improvement in Transfort service as a result of this. Mayor Martinez stated he was not in favor of a "break even" deal. ME October S, 2004 Councilmember Roy stated he did not necessarily agree that government should "run like a business." He stated he was interested in giving the citizens of Fort Collins and Loveland "quality transit." He stated it was important that the City do better than "break even" so that other good work could be done on regional transit solutions. He stated he would like to see improved transit in Fort Collins as a result of this partnering between Fort Collins and Loveland. Councilmember Bertschy stated he believed that the benefits would outweigh the negatives. He stated there had been good suggestions on how the City should recoup its costs and build in future capital expenses while improving the City's transit service through economy of scale. He stated this was an opportunity to work with Loveland. He stated it was important to have accurate ridership figures for the entire region. Councilmember Tharp stated the agreement should be to the City's advantage because of the extra work that would be required. She stated the City should offer Loveland "a good business deal" that would be fair to both cities. She stated she had some concerns about the labor issues and that the intergovernmental agreement should address those issues in detail. Councilmember Weitkunat stated cooperative regional ventures were needed but that the City's first obligation was to the residents of Fort Collins. She stated she did not want this to become an issue of "subsidizing" Loveland. She stated the financial arrangements would be very important and that she was confident that staff would negotiate an agreement that would protect the City's interests in a business -like way. Councilmember Hamrick asked if this would be a "distraction" for the City. Frazier stated it would take a lot of work initially and that the hiring of staff would lessen the long term impacts. Phillips stated this could be compared with adding two routes within the City. Councilmember Hamrick stated he would like to see the best deal possible brought back for Council consideration. He stated regional needs were part of the equation. Mayor Martinez stated he would support this in order to see what the intergovernmental agreement would look like. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED 149 October S, 2004 Ordinance No. 163, 2004 Authorizing the Execution of an Administrative Order on Consent By the United States Environmental Protection Agency and a Related Environmental Covenant in Connection With Environmental Contamination and Remediation in the Cache La Poudre River Near the Northside Aztlan Community Center Property, Adopted on First Reading The following is staff's memorandum on this item. "FINANCIAL IMPACT City cooperation with the parties to the Administrative Order on Consent (AOC) will require in -kind contributions of staff time, use of City property, conveyance of permanent easements over City property, and potential extraordinary costs in future City capital projects; e.g., street construction and utility installation. City staff is negotiating AOC provisions that will provide for some portion of these costs to be offset by contributions from other parties to the AOC. In addition, the City will be protected in the AOC from certain claims for cost recovery or contribution. That is, the City will not be required to pay for EPA's past or future response costs, or the costs of implementing the remediation program. EXECUTIVE SUMMARY The implementation of an environmental removal and remediation work plan that EPA and Public Service Company of Colorado (PSCo) have been developing over the course of the past year to address contamination in the Cache La Poudre River in the vicinity of the City's Northside Aztlan Community Center is currently pending. Prior to undertaking this work, EPA and PSCo have worked with the City and Schrader Oil Company to negotiate an Administrative Order on Consent (AOC) that will set out the rights and responsibilities of the relative parties to the AOC, including the apportionment of costs associated with the environmental cleanup and the related EPA oversight of the same, the future liabilities and protections from claims of liability amongst the parties related to the environmental condition addressed by the AOC, and the ongoing commitments of the parties related to prevention and mitigation of future impacts related to contamination that is within the scope of the AOC. The version of the AOC currently under negotiation would protect the City from certain claims for cost recovery or contribution, and would not require the City to contribute to the initial costs of the environmental cleanup, other than through the cooperation and property access on affected City property. It also requires that all parties owning property affected by the identified contamination record against the title of their respective property an environmental covenant limiting activities and use of the property so as to avoid disruption to the identified contamination that will remain in place after the remediation activities. The contamination has been determined to have originated from the Poudre Valley Gas manufactured gas plant that once operated on property south of Willow Street and now owned by Schrader Oil Company. The contamination passes across and under City -owned property, and enters the Poudre River. 150 October 5, 2004 BACKGROUND The Environmental Protection Agency (EPA), Region VIII, has been negotiating with Xcel Energy's Colorado subsidiary, Public Service Company of Colorado (PSCo), to plan and design environmental cleanup activities to remove contaminated sediment and bedrock and to operate on the site into the future to intercept subsurface contamination approaching the River. EPA has proposed that PSCo, Schrader Oil Company and the City of Fort Collins negotiate an Administrative Orderon Consent (AOC) with EPA and, ifpossible, the State of Colorado, that would allocate responsibility for cleanup costs and outline the parties' future responsibilities and commitments related to the environmental condition of the River, the City's Northside Aztlan Community Center property and the general area. While a final agreement has not yet been reached, the negotiating parties are currently working toward an AOC that would not require the City to share in the direct costs of the cleanup. The current negotiations would require the City to provide access required to carry out removal and remediation activities on its property, and to agree to certain other restrictions on the use of its property. City staff has been working to negotiate AOC provisions that would provide compensation to the Cityfor at least a portion of the additional costs it may incur in constructing improvements in Willow Street and on other affected City property. Public Service Company is currently nearing completion of the design phase for the ongoing removal and monitoring remedial action. The selected remedial action involves sediment/upper bedrock removal over a stretch of river, a vertical physical containment barrier approximately 700 feet long on City property, vertical hydraulic containment, and a water treatment and discharge system. The estimated cost for the clean-up and operation and maintenance is $8 million. EPA will provide daily on -site coordination and oversight during the October 2004 —April 2005 timeframe. At this time, parties committing to participate in the agreement are EPA, PSCo and the City of Fort Collins. Schrader Oil Company may or may not enter into the agreement. In any event, the AOC, as drafted by EPA, contains protections from contribution actions or claims against the City related to the costs being incurred by EPA and PSCo to carry out and oversee the removal and remedial work. The AOC conditions these protections upon the City's continued compliance with the terms of the AOC and the Federal statutes. Staff recommends that the City Manager be authorized to enter into the AOC, whether or not Schrader Oil Company is a party to the AOC. As noted in previous reports to the Council, time is critical if the remediation program is to be completed this year. The work will require diversion of the Poudre River into a system of pumps and pipes, and access to the river bed for a period of several weeks. This must occur during the low flow period, which is rapidly approaching. Delay offirst reading of the Ordinance would cause a delay in the project of more than a month, due to the Council meeting schedule. Staff does not anticipate major substantive changes to the key provisions of the AOC, nor to the impacts upon the City. Nevertheless, Council will have the opportunity to review a more complete document at the time of Second Reading of the Ordinance, with the parties to the final agreement identified. The Ordinance presented is drafted so as to allow the City Manager, in consultation with the City Attorney, to enter into the AOCprovided it contains terms and conditions determined necessary and appropriate to protect the interests of the City. Staff recommends adoption of the Ordinance with 151 October S, 2004 these provisions. Staff will be working diligently with EPA and the other parties to negotiate the AOC between first and second reading of the Ordinance. Additional information will be provided to the City Council at that time, together with any revisions to the Ordinance, if appropriate. Public Outreach EPA has completed its Poudre River Communications Strategy. The final public outreach event was a public open house, held at the Northside Aztlan Community Center on September 28th. Staff will process the information received at this public outreach event, and will report to the Council on October 5th regarding any relevant information obtained from the open house. " Mayor Martinez introduced the agenda item and asked if there was a motion for adjournment into Executive Session. Councilmember Bertschy made a motion, seconded by Councilmember Tharp, to adjourn into Executive Session for the purpose of consulting with legal counsel regarding potential litigation pursuant to Section 2-31(a)(2) of the City Code. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED ("Secretary's Note: The Council adjourned into Executive Session at 8:20 p.m. and reconvened following the Executive Session at 9:05 p.m.) Greg Byrne, CPES Director, presented background information regarding the agenda item and stated representatives from EPA and Xcel (Public Service) were present. He stated the EPA had been negotiating with Public Service of Colorado for planning and design of environmental clean-up activities in the Poudre River. He stated EPA was proposing that the City, Public Service and Schrader Oil negotiate an Administrative Order on Consent (AOC) with EPA to allocate responsibility for the clean-up costs. He stated the negotiating parties were working toward an AOC that would not require the City to share in direct clean-up costs and that would require the City to provide access required to carry out removal and remediation activities. He stated Public Service was nearing completion of the design phase for the ongoing removal and monitoring of this contamination. He stated the estimated cost for the clean-up, operation and maintenance was $8 million and that EPA would provide daily on -site coordination and oversight. He stated time was critical if remediation was to be completed this year. He stated the work would require diversion of the Poudre River into a system of pumps and pipes and access to a dry riverbed during a period of several weeks at a time of low river flow. He stated the Ordinance would allow the City Manager, in consultation with the City Attorney, to enter into the AOC provided it would contain terms and conditions determined necessary and appropriate to protect the City's interest. He stated there had been considerable public outreach, board and commission reviews, and web postings. Councilmember Kastein asked where the $8 million would come from. Byrne stated the source of funding was a topic of the active negotiations. He stated the costs for the clean-up would be borne largely by Xcel and Schrader Oil. He stated the EPA was bearing costs for being on -site to assess 152 October 5, 2004 the extent and character of the contamination. He stated the City would be required to continue to provide its own on -site review and oversight as well as the use of City property for a period of decades. He stated restrictive covenants would also be placed on City property. Councilmember Hamrick made a motion, seconded by Councilmember Bertschy, to adopt Ordinance No. 163, 2004 on First Reading. Councilmember Tharp asked about the impact on the Aztlan Center and the proposed center at that location. Byrne stated the Brownfield study and this project were attempts to stimulate redevelopment in the area. He stated the Northside Center could be safely built on this site. He stated there would be some additional costs for the new center relating to the approved disposal of any contaminated material found during excavation of foundations and installation of a vapor barrier system to prevent harmful gases from leaking into the building. Councilmember Tharp asked for confirmation that a center built with proper precautions might cost the City more but that it would be a safe facility. Byrne replied in the affirmative. Councilmember Weitkunat stated this was an important step for the northern part of the City to move forward and for protection of the river. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED Resolution 2004-118 Submitting the Existing Conditions Study and Urban Renewal Plan for the North College Corridor Area to the Planning and Zoning Board, the Poudre School District Board of Education, and the Larimer County Board of Commissioners. Adopted The following is staff's memorandum on this item. "EXECUTIVE SUMMARY On June 15, 2004, the City Council adopted Resolution 2004-076 authorizing and directing staff to prepare a Study of Existing Conditions relative to certain "Blight Factors" in the Colorado Urban Renewal Law and an Urban Renewal Plan for the North College Corridor Area. Since that time, staff has worked with a Citizens Advisory Committee, composed of business owners, business tenants, and members of the Planning and Zoning Board, to develop these documents. Before the Council can officially approve the Urban Renewal Plan, State law, specifically Colorado Revised Statutes 31-25-107(2), requires the Council to formally submit the Urban Renewal Plan to the Planning and Zoning Board for its review and recommendation as to the Urban Renewal Plan's conformity with City Plan, the City's Comprehensive Plan, which is the general plan for development of the municipality as a whole. The Planning and Zoning Board is scheduled to review 153 October 5, 2004 the proposed Urban Renewal Plan on October 21. The Council is scheduled to conduct a public hearing and consider a resolution approving the Urban Renewal Plan for the North College CorridorArea at its November 16 regular meeting. The Council also needs to submit a copy of the Urban Renewal Plan to the Poudre School District Board of Education and the Larimer County Board of Commissioners for their review. Adoption of this Resolution does not commit the Council to approving the Existing Conditions Study (a.k.a. "Blight Study") and Urban Renewal Plan for the North College Corridor Area at this time. BACKGROUND In 1982, the Fort Collins City Council created an Urban Renewal Authority (URA) and designated itself as the governing board (known as the "Authority"). The boundaries of the URA are the municipal limits. The Fort Collins URA was created to prevent and eliminate conditions related to certain "blight factors" in the community. State Statutes gives the URA broad powers to carry out its statutory mandate. Included are the powers to enter into contracts, borrow funds and acquire property voluntarily or by eminent domain, among others. Urban renewal projects may be financed in a variety of ways. URAs are authorized to borrow money, issue bonds, and accept grants from public or private sources. The principal method of financing urban renewal projects is through obligations secured by property tax or sales tax increments from the project area( "tax increment financing"). An URA exercises its powers by planning and carrying out urban renewal plans in urban renewal areas. In 1995, the City Council adopted the North College Avenue Corridor Plan as an element of the City Plan, the City's comprehensive plan. Among its goals were to: 1. Revitalize the area to improve the "neglected commercial strip" image, and 2. Increase the opportunityfor development and expansion of business and industry The North College Corridor was also targeted as an area for redevelopment and infill in the recently updated City Plan document. One of the outstanding concerns by property owners in the Corridor is the area's economic viability in terms of future business development and commercial growth. Several factors contribute to this issue including: lack of infrastructure improvements — particularly for storm water drainage, street connectivity, and street improvements (curbs, gutters, sidewalks, street trees, and bike lanes). Unfortunately, revitalization of the North College Corridor has been relatively slow and spotty. It is clear to most that if the area is to be successful, a comprehensive approach to the areas revitalization is necessary. In June of this year, the City was approached by the North Fort Collins Business Association to recognize the North College Avenue Corridor as an urban renewal project area and to create an urban renewal plan for it. Before an urban renewal plan for this area can be approved, the area must be found by the Authority (City Council) to be a blighted area as defined in State Statutes. 154 October 5, 2004 Since June, staff has worked with a Citizens Advisory Committee, composed of business owners, business tenants, and members of the Planning and Zoning Board, to develop a draft Existing Conditions Study (a.k.a. "Blight Study ") and Urban Renewal Plan for the North College Corridor Area. Before the Council can officially approve the Urban Renewal Plan, the State law on Urban Renewal Authorities, specifically Colorado Revised Statutes 31-25-107(2), requires the Council to formally submit the Urban Renewal Plan to the Planning and Zoning Board for its review and recommendation as to the Urban Renewal Plan's conformity with City Plan, the City's Comprehensive Plan, which is the general plan for development of the municipality as a whole. By adopting this Resolution the Council will formally submit the Urban Renewal Plan to the Planning and Zoning Board, the Poudre School District Board of Education and the Board of Commissioners of Larimer Countyfor their review and, with respect to the Planning and Zoning Board, for written recommendation as to its conformity with City Plan. Adoption of this Resolution does not commit the Council to approve the Blight Study and Urban Renewal Plan for the North College Corridor Area at this time. " Mayor Martinez noted that he pulled this item from the Consent Calendar because of the discussion under Agenda Review. Interim City Manager Atteberry stated staff would be available to answer any questions. Councilmember Weitkunat asked for clarification regarding the revised Resolution. Greg Byrne, CPES Director, stated this was an action required by State statute to give direction to transmit the draft document to the Poudre School District and Latimer County for review. He stated staff had already met informally with those two agencies. He stated the draft document was expected to have further revisions as the public process proceeded and after the two agencies had completed their reviews of the draft. Councilmember Weitkunat asked what changes had been made. Ken Waido, Chief Planner, stated the two changes related to sections discussed with the Citizen Advisory Committee last Thursday. He stated the Committee recommended adding more specific language to indicate that the power of eminent domain would be used as a last resort. He stated the Committee also recommended that the plan advisory committee include one or two Councilmembers as members rather than as liaisons. Councilmember Tharp asked where those revisions were in the document. Waido stated the changes were in Sections 4 and 8 of the document. Councilmember Weitkunat asked if the request was for Council authorization to transmit the draft document to the two agencies. Waido replied in the affirmative. Councilmember Weitkunat made a motion, seconded by Councilmember Kastein, to adopt Resolution 2004-118. Councilmember Weitkunat stated this was an important action for North College Avenue. Councilmember Bertschy stated there would be a study session on this item next week. 155 October 5, 2004 The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED Other Business Mayor Martinez stated that during the budget exception process, he would like the Council to consider the hiring of four officers dedicated to neighborhood policing. Councilmember Bertschy stated he was concerned with the addition of staff and that he would like to see that weighed in comparison with other needs. He stated he would support exploring the idea of directed enforcement in the area of neighborhood policing. Councilmember Tharp stated she viewed this as micromanaging the Police Department and that the allocation of staffing should be left up to the Police Chief. She stated Council's role was to provide policy direction and to consider during the budget process any addition of staffing recommended by the Police Chief to accomplish that policy direction. Mayor Martinez stated he did not view his suggestion as micromanaging and viewed it instead as providing a "grant" to deal with neighborhood problems. Councilmember Tharp stated she wanted a solution that would work and not restrict the Police Chief on how he is to manage the Police Department. Councilmember Hamrick stated he would like to hear from the Police Chief about his priorities and that this should be reviewed within the context of the budget exception process. He stated he would like to know how the collective bargaining agreement would impact such a dedication of police officers. Councilmember Kastein stated he supported better neighborhood enforcement. He stated there needed to be more time to study the Police Department's levels of service in all areas. He stated there might be higher priorities than neighborhood enforcement. Councilmember Hamrick stated he agreed with Councilmember Kastein about the need to look at overall priorities in the Police Department. Mayor Martinez asked when this issue would be scheduled for a study session. Interim City Manager Atteberry stated he hoped to schedule this item for a study session before the end of the year. He stated he had heard from a number of Councilmembers that they would like a briefing on police priorities. He stated he wanted to have a series of briefings for Councilmembers regarding an overview of each service area. 156 October 5, 2004 Executive Session Authorized Councilmember Bertschy made a motion, seconded by Councilmember Hamrick, to adjourn into Executive Session pursuant to Section 2-31(a)(2) and (3) of the City Code to discuss possible land acquisition and to confer with legal counsel regarding related legal issues. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED ("Secretary's Note: The Council adjourned into Executive Session at 9:30 p.m. and reconvened following the Executive Session at 10:25 p.m.) Adjournment The meeting adjourned at 10:25 p.m. Z. ayor ATTEST: `� t 1 1 157