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MINUTES-02/03/2004-Regular
• February 3, 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, February 3, 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 W eitkunat. Staff Members Present: Fischbach, Krajicek, Roy. Citizen Participation Walt Raren, owner of ABCD's Compact Discs, 157 North College Avenue, spoke regarding the application of the new downtown parking regulations and parking permit fees. He stated 436 City employees who used the parking garage were being subsidized by the taxpayers in the amount of $26 per month and that City employees were each paying only $10 per month for parking. He stated he was quoted a figure of $80 per month per parking space for maintenance and that the total • maintenance amounted to about $864,000 per year. He stated the City needed to "level the playing field" if they wanted downtown businesses comply with the regulations. He suggested raising the fee for government employees to $18 or allowing a fee of $10 to park on the roof. He questioned whether the new technology being employed at a cost of $250,000 per year would solve the problem of continued ticketing of visitors and shoppers downtown. He questioned whether the two-hour parking limit downtown was enough to create a friendly environment to bring people downtown. He stated lowering the prices for downtown employees to encourage parking in the garage would open up parking for visitors and shoppers, and he supported increasing the parking time to three hours for free parking. • Derek Breier, Director of Community Affairs for ASCSU, thanked the Council for allowing a brief presentation at the last study session about the "three unrelated" ordinance. He stated restricting the relationship of home occupants had nothing to do with the behavior or safety of the home. He stated the ordinance was nearly unenforceable and was an unspecific solution to neighborhood problems. He stated noise, parking and trash were the main problems and that those problems had nothing to do with the relationship of home occupants. He stated Council focused mainly on behavioral issues at the study session. He stated the ordinance was founded on restricting the relationship of home occupants rather than their behavior. He stated owner -occupied homes generally had more cars than rentals and that dissolving the ordinance would not increase parking problems. He stated education could work as an effective tool for improving the quality of rental homes. He stated the problem of noise could not be resolved by restricting the relationship of home occupants. He stated licensing 471 was not a solution and that this was an unfair idea that would force rentals to be held to a different living standard than their neighbors. He stated the cost of inspections would likely be passed directly to tenants and that this would be an unnecessary tax on the 50% of Fort Collins homes that were rentals. He stated it was not fair to place the cost burden of improvements on renters. He stated the "three unrelated" ordinance should be removed from the City's books and that there should be problem -specific solutions rather than unneeded laws. He stated the ordinance had been used in some cases as leverage between landlords and tenants or even between tenants. He stated the law offered no real benefit to the community at -large. Kelly Ohlson, 2040 Bennington Circle, spoke regarding economic health, vitality and development. He stated the "expansionist, more land, more buildings, more people" thinking was 18'h century thinking. He stated this benefited the few and cost the many in terms of quality of life and tax rates. He suggested and described three organizations that could help the economic committee work on alternatives to old style thinking based on growth myths: the Rocky Mountain Institute, Redefining Progress, and Alternatives to Growth - Oregon. Citizen Participation Follow-up Mayor Martinez requested a one -page memo about the parking costs. Councilmember Tharp stated there was a lot of concern at the meeting on downtown parking about the City's subsidies to employees. She requested that staff provide information on the subsidy to employees. City Manager Fischbach stated the City paid the parking to encourage employees to park in the garage instead of parking on the street. He stated this freed up parking for others and avoided the issue of City employees becoming "meter chasers" when they had to move their cars on the street. He stated the subsidy was intended to ensure the available of on -street parking and to improve productivity. He stated some City employees had free parking at their facilities and that it was unfair to expect some employees at some facilities to pay for parking. Councilmember Weitkunat commented on Mr. Ohlson's presentation on economic vitality. She stated the economic committee would be looking for the kind of information presented by Mr. Ohlson about resources. She stated it was important to note that the committee would not be talking about community expansion, community sprawl or growth. She stated the discussions would be on economic vitality and health. Councilmember Hamrick requested a one -page memo on the garage parking situation. He stated he was interested in knowing if City employees were taking parking away from customers. He stated his position was that he would like to see the "three unrelated" ordinance abolished. He stated he was interested in seeing some kind of rental licensing program and that he viewed rentals as "unlicensed businesses." He stated he would like to see a study of home prices in communities with different levels of growth. Councilmember Roy stated he would like to look at ways to give businesses support for parking in 472 • the parking garage as was being done for City employees. He stated everyone wanted to make the downtown strong and an incubator for businesses. He stated he was hearing frustration that there was a standard for City employees that did not apply to businesses. He stated he would like to see data on whether there was a negative rate of return for visitors who received a parking ticket while shopping or dining downtown. He stated a rental licensing program might make sense for health and safety reasons. Councilmember Bertschy stated he would like to explore the issue of lengthening the parking time on the street downtown. He stated he supported eliminating the "three unrelated" ordinance. He encouraged additional comments on economic issues. Councilmember Tharp stated the new parking plan included a first time warning ticket and that the new technology would allow this to happen. She stated the first warning would be a friendly reminder to visitors not familiar with the parking requirements. She stated any employer could provide a subsidy to employee parking as the City did. She stated freeing up downtown parking would increase business. She stated she was awaiting the recommendation of the City task force on rental licensing. Councilmember Roy stated the difference between the City and other employers was that the taxpayers were paying the parking subsidy for City employees. Agenda Review • City Manager Fischbach stated item #27.5Resolution 2004-019 Finding Substantial Complianceand Initiating Annexation Proceedings.for Such Property to be Known as the Adrian Annexation had been added to the agenda because of the need to reinitiate proceedings due to a Coloradoan publication error. • Councilmember Hamrick asked if other newspapers would be able to provide publication services. City Manager Fischbach stated he could provide a one -page memo on that issue. He stated there was a statutory definition relating to newspapers of record and that it was his understanding that the Coloradoan was the only local newspaper meeting that definition. Mayor Martinez asked what actions could be taken to ensure that publications were done as required. City Manager Fischbach stated staff did a thorough job of following up on all required publications. 473 February 3, 2004 CONSENT CALENDAR Postponement of Items Relating to the Peterson Annexation and Zoning to April 6, 2004. Postponement of Second Reading of Ordinance No. 051, 2003, Annexing Property Known as the Peterson Annexation to the City of Fort Collins, to April 6, 2004. Postponement of Second Reading of Ordinance No. 052, 2003, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Peterson Annexation, to April 6, 2004. On April 1, 2003, Council unanimously adopted Resolution 2003-041, amending the Structure Plan for the property known as the Peterson Annexation, and Council also unanimously adopted Resolution 2003-042, setting forth findings of fact and determinations regarding the Peterson Annexation. This is a request for a 100% voluntary annexation of approximately 27.89 acres, located a half mile east of I-25 and south of Vine Drive. This requested zone district is Urban Estate. On April 1, 2003, Council unanimously adopted Ordinance No. 051, 2003 and Ordinance No. 052, 2003, annexing and zoning the property included in the Peterson Annexation. Because there have been further delays in the final approval of this project, staffrecommends postponing Second Reading of these Ordinances to April 6, 2004. 8. Postponement of Items Relating to the Streamside Annexation and Zoning to April 6, 2004 a. Postponement of Second Reading of Ordinance No. 053, 2003, Annexing Property Known as the Streamside Annexation to the City of Fort Collins, to April 6, 2004. b. Postponement of Second Reading of OrdinanceNo. 054,2003, Amending theZoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Streamside Annexation, to April 6, 2004. On April 1, 2003, Council unanimously adopted Resolution 2003-043, amending the Structure Plan for the property known as the Streamside Annexation, and Council also unanimously adopted Resolution 2003-044, setting forth findings of fact and determinations regarding the Streamside Annexation. This is a request for a 100% voluntary annexation of approximately 73.67 acres, located just over half a mile east of 1-25 and south of Vine Drive. This requested zone district is Urban Estate. 474 • February 3, 2004 On April 1, 2003, Council unanimously adopted Ordinance No. 053, 2003 and Ordinance No. 054, 2003, annexing and zoning the property included in the Streamside Annexation. Because there have been further delays in the final approval ofthis project, staffrecommends postponing Second Reading of these Ordinances to April 6, 2004. 9. Second Reading of Ordinance No. 008, 2004, Appropriating Unanticipated Revenue into a Proiect Account for the Design of Improvements to South Taft Hill Road, Between Horsetooth Road and Harmony Road (CR-38E). The City of Fort Collins Engineering Department has received a total of $300,000 from Larimer County's Regional Road Capital Expansion Fee Program. Under this program, the County collects a fee from building permits issued within unincorporated Larimer County and the City of Fort Collins. This impact fee program was initiated by Larimer County in 1999, and adopted by the City of Fort Collins in February of 2000. Taft Hill Road (County Road 19) between Fort Collins and Loveland is identified as one of five regional roads in the Larimer County Transportation Plan dated 1998. Larimer County has selected this segment of South Taft Hill Road (Horsetooth to Harmony) from among the five eligible regional roads for use of these funds. This project will design this section of South Taft Hill Road for the ultimate four -lane urban arterial street section. At the request of the County, a design for • a potential interim three -lane arterial street section will also be produced. This Ordinance was adopted 6-0 (Mayor Martinez was absent) on First Reading on January 20, 2004. • 10. Second Reading of Ordinance No. 009, 2004, Appropriating Unanticipated Revenue in the Building Community Choices Capital Proiects Fund -North College Avenue Corridor Improvements, Phase 1. The North College Avenue Corridor Improvement project covers an area on Riverside/Jefferson from Mulberry to College and on North College Avenue from Jefferson to north of Cherry Street. The project is managed by City of Fort Collins Transportation Services and is funded by a combination of sources including the City's 1997 Building Community Choices funds, Colorado Department of Transportation (CDOT) resurfacing funds, Federal Congestion Mitigation and Air Quality (CMAQ) funds, and Federal Surface Transportation Program (STP) funds. Ordinance No. 009, 2004, was adopted 6-0 (Mayor Martinez was absent) on First Reading on January 20, 2004. 475 February 3, 2004 11. Second Readin¢ of Ordinance No. 010, 2004, Appropriating Unanticipated Grant Revenue in the General Fund for the Police Services Victim Services Team. The Fort Collins Police Services Victim Services Team has been awarded an 18-month grant in the amount of $36,800 for the period of January 1, 2004 through June 30, 2005, by the Eighth Judicial District Victims and Law Enforcement (V.A.L.E.) Board to help fund services provided by this team. These funds will be used for a part-time paid victim advocate who provides crisis intervention services during weekday hours and is housed in the Victim Services Office. These funds will also pay for some of the operational expenses needed to provide 24-hour a day, 7-day a week services to victims of crime in our community. Previous V.A.L.E. grant awards received were $19,500 in 1998, and $19,000 for each year from 1999 through 2003. This particular grant was changed to an 18-month cycle, and will then run from July 1 through June 30 in future years. This Ordinance, which was adopted 6-0 (Mayor Martinez was absent) on First Reading on January 20, 2004, appropriates the unanticipated grant revenue in the general fund for the Police Services Victim Services Team. 12. Second Reading of Ordinance No. 011, 2004, Appropriating Unanticipated Grant Revenue in the General Fund for the Police Services Drunk Driving Enforcement Program. On November 18, 2003, City Council approved Resolution 2003-125 authorizing the Mayor to enter into a Law Enforcement Assistance Fund (L.E.A.F.) Contract, #L-24-04, with the Colorado Department of Transportation to provide funds for the Fort Collins Police Services Drunk Driving Enforcement Program. This Ordinance, which was adopted 6-0 (Mayor Martinez was absent) on January 20, 2004, appropriates the grant funds. 13. Second Reading of an Ordinance No. 012, 2004, Appropriating Unanticipated Revenue in the General Fund for Police Services for the State Homeland Security Program. The City Attorney and Risk Management staffs have been reviewing the existing self- insurance program. Expenses which relate to loss prevention activities of the City are not specifically listed in the Code. This Ordinance, which was adopted 6-0 (Mayor Martinez was absent) on January 20, 2004, amends the Code to clarify the payment of expenses relating to loss prevention activities are allowed. 14. Second Reading Ordinance No. 013, 2004, Amending Section 8-106 of the City Code Concerning the Payment of Covered Expenses. The City Attorney and Risk Management staffs have been reviewing the existing self- insurance program. Expenses which relate to loss prevention activities of the City are not specifically listed in the Code. This Ordinance, which was adopted 6-0 (Mayor Martinez was 476 • February 3, 2004 absent) on January 20, 2004, amends the Code to clarify the payment of expenses relating to loss prevention activities are allowed. 15. Second Reading of Ordinance No. 014, 2004, Designating the Garrick House, 516 South Meldrum Street, Fort Collins, Colorado as a Fort Collins Landmark Pursuant to Charter 14 of the City Code. The owners of the property, Rena and Rudy Hansch, initiated the request for Fort Collins Landmark designation for the Gamick House. The residence is individually eligible for landmark designation under City of Fort Collins Landmark Preservation Standard (3) - Embodies the distinctive characteristics of a type, period, or method of construction. Ordinance No. 014, 2004, was adopted 6-0 (Mayor Martinez was absent) on January 20, 2004. 16. Second Reading of Ordinance No. 015, 2004, Authorizing the Grant of a Correction Sewerline Easement to Boxelder Sanitation District in Exchange for the Vacation of Part of an Existing Easement. In 1973 Riverbend Farms, Inc. granted a perpetual sewer line easement to Boxelder • Sanitation District along East Prospect Road. Boxelder subsequently installed the sewer line outside the easement area in some locations. The City of Fort Collins has since purchased the parcels the sewer line crosses for the Riverbend Ponds (1988 and 1998) and Running Deer (2000) Natural Areas. The District is requesting that the City grant a correction easement to reflect the area where the sewer line was actually installed and has agreed to vacate that part of the original easement no longer needed by the District in view of the actual location of the sewer line. This correction benefits the City in that the new easement will accurately describe the location of the sewer line and language specific to the natural areas and agreeable to both parties can be included in the new easement agreement. Ordinance No. 015, 2004 was adopted 6-0 (Mayor Martinez was absent) on January 20, 2004. 17. Second Reading of Ordinance No. 016, 2004, Authorizing the City to Grant a Permanent Easement to Paradigm Properties, LLC on the Resource Recovery Farm. Paradigm Properties LLC, owner of a 12.75 acre tract of land at the southeast comer of the intersection oft-25 and Prospect Road, also known as 1800 SE Frontage Road, has requested a permanent, nonexclusive storm drainage easement across the Resource Recovery Farm located at the Southwest corner of the intersection. The easement is needed for a proposed development of a commercial mixed use project on Paradigm's property. The conceptual plan shows five detention ponds amid pad sites which will release surface water runoff to the southwest portion of the tract. A culvert running under I-25 and proceeding into an open • ditch area adjacent and running parallel to I-25 allows the flow to enter a 24-inch pipe that 477 February 3, 2004 runs southwesterly across the Resource Recovery Farm forming a holding pond at approximately the center of the easement distance. There is a release valve at the southwestern corner of the pond that diverts the flow at an historic flow rate of 1.36 CFS. The flow continues to a 36-inch culvert that deposits the water into a wetland area at the western edge of the parcel and subsequently into the Boxelder Creek. Ordinance No. 016, 2004 was adopted 6-0 (Mayor Martinez was absent) on January 20, 2004. 18. First Reading of Ordinance No. 017. 2004, Appropriating Unanticipated Revenue in the General Fund for E911 and Emergency Medical Dispatch Systems at Fort Collins Police Services Dispatch Center. The Larimer Emergency Telephone Authority (LETA) collects a monthly fee from all county telephone users to purchase equipment, train users and maintain equipment used to process E911 phone calls and dispatch appropriate Emergency Services Providers. In 2003, LETA developed a formula for the anticipated annual budget for these services for each Public Safety Answering Point (Emergency Services Dispatch Center) based on the number of dispatchers and the number of E911 phones calls received in the Center. Based on the formula, LETA provides the funds to the individual Centers for payment of expenses. The annual budget based on the formula for Fort Collins Police Services is $29,875. 19. First Reading of Ordinance No. 018, 2004, Appropriating Unanticipated Revenue in the Transportation Services Fund and Authorizing the Transfer of Appropriations For the Purpose of Constructing Bicycle Lane and Streetscape Improvements along West Elizabeth Street Between City Park Avenue and Shields Street. This Ordinance appropriates unanticipated revenue of $219,000. Project improvements include the construction of safer bike lanes, pedestrian crossings, and streetscape improvements along West Elizabeth Street between City Park Avenue and Shields Street. Bike lane improvements will involve relocating the existing curb to widen the street and install 7 foot bike lanes to replace the existing 4-5 foot bike lanes. Pedestrian and streetscape improvements include center medians with a refuge area for a midblock pedestrian crossing, improved pedestrian crossings at the intersections, landscaping, and upgrading existing utilities. 20. First Reading of Ordinance No. 019, 2004, Appropriating Prior Year Reserves. City Council authorized expenditures in 2003 for various purposes. The authorized expenditures were not spent or could not be encumbered in 2003 because: EM • February 3, 2004 There was not sufficient time to complete bidding in 2003 and therefore, there was no known vendor or binding contract as required to expend or encumber the monies. The project for which the dollars were originally appropriated by Council could not be completed during 2003 and reappropriation of those dollars is necessary for completion of the project in 2004. To carry on programs, services, and facility improvements in 2004 with unspent dollars previously appropriated in 2003. The unexpended and/or unencumbered monies lapsed into individual fund balances at the end of 2003. 21. First Reading of Ordinance No. 020, 2004, Adopting Undated Rules and Regulations Governing Grandview and Roselawn Cemeteries and Amending Section 23-156 of the City Code Pertaining to Cemetery Rules and Regulations. Every few years the Cemetery Division needs to revise/update its rules and regulations to • better meet the needs of the community. Pursuant to Section 23-156 of the City Code, all cemeteries owned by the City shall be operated and maintained in accordance with rules and regulations adopted by the City Council by resolution, and knowing violation of such rules and regulations shall be unlawful. However, Article II, Section 6 of the City Charter states that all legislative enactments establishing any rule or regulation for the violation of which a penalty is imposed or limiting the use of private property shall be by ordinance. Because violation of cemetery rules and regulations could result in a criminal penalty, and because the rights of interment purchased by the public could be considered private property rights, the cemetery rules and regulations should be adopted by ordinance, and they have been so adopted in the past. LJ This Ordinance will amend Section 23-156 to require that cemetery rules and regulations be adopted by the City Council by ordinance rather than by resolution. It will also authorize a number of changes and updates to the Cemetery Rules and Regulations. The primary change is the offering of Saturday burials, including in -ground burials, entombments and inurnments, and establishing guidelines for the scheduling of Saturday burials. 22. First Reading of Ordinance No. 021, 2004, Authorizing the Mayor and the City Clerk to Apply and Contract for Beneficial Use of Water on Behalf of the City of Fort Collins, and Prescribing the Terms for Application for an Allocation of the Right to Use Colorado -Big Thompson Project Water to the City by Northern Colorado Water Conservancy District. 479 February 3, 2004 The City owns 18,855 acre-foot units of Colorado -Big Thompson water which are held under permanent contracts or temporary use permits with the Northern Colorado Water Conservancy District. The Northern Colorado Water Conservancy District requires that all Colorado -Big Thompson units held under temporary use permits on December 31 of any year be converted to use under permanent contracts. As of the end of the year, the City had 150units ofColorado-Big Thompson water held under temporary use permits that must now be converted to what is referred to as a permanent Section 131 contract. This conversion is accomplished by adopting an ordinance conforming to the standard form of ordinance provided by Northern Colorado Water Conservancy District, and approved as to form by the City Attorney's Office. Adoption by City Council will authorize the Mayor and City Clerk to apply for the permanent contract. 23. First Reading of Ordinance No. 022, 2004, Authorizing the Lease of City -Owned Property at 212 West Mountain Avenue for Uv to Five Years. The City and the County purchased the property at 212 West Mountain Avenue in 1985 as part of the Block 31 purchases. In the Intergovernmental Agreement dividing Block 31, this property was quit claimed to the City. The County occupied this building until the new County Courthouse was completed in the summer of2003. This building has a total of 7,704 square feet, of which 6,225 is currently usable. This space has been considered for other City users, but a need has not been identified. Staff has shown the space to a private entity and negotiations are continuing. Staff recommends leasing this property until this area of Block 31 is needed for future improvements. 24. First Reading of Ordinance No. 023, 2004, Vacating Portions of the Rights -of -Way as Dedicated on the Plat of Fossil Creek Meadows, First Filing. This site is located east of College Avenue, just north and south of Fossil Creek Parkway. It was a County development proposal that dedicated the streets as shown and laid out on the Fossil Creek Meadows, First Filing plat. Fossil Creek Parkway was built, but the Frontage Road was not. The dedicated right-of-way was annexed into the City when the parcel was annexed in 1985. Since that time a development proposal, Discount Tire at Fossil Creek, for which an Administrative Hearing was held on October 7, 2003, was submitted and shows that Fossil Creek Parkway was constructed slightly different than was originally platted. The plat approved at the Administrative Hearing proposes vacating portions of right-of-way along Fossil Creek Parkway that are no longer needed and dedicating portions which are needed due to the location in which it was constructed. The plat for Discount Tire at Fossil Creek also proposes the vacation of a portion of the right-of-way dedicated for a frontage road for College Avenue. The frontage road is no longer needed, but a portion of right-of-way needed for the expansion of College Avenue will be retained by the City, with the remainder proposed for vacation. • February 3, 2004 25. Resolution 2004-013 Finding Substantial Compliance and Initiating Annexation Proceedings for the Trailhead Annexation. The Trailhead Annexation is an annexation, zoning and structure plan amendment for 91.25 acres of land located north of East Vine Drive, west of the Waterglen Subdivision. The parcel is contiguous to existing City boundaries by the Buderus Second Addition and the Vine Business Park Annexation. The requested zoning is Low Density Mixed -Use Neighborhood. (LMN). The proposed resolution states it is the City's intent to annex this property and directs that the notice required by State Statutes be given of the Council's hearing to consider the annexation ordinance. The public hearing for the annexation ordinance must occur no less than 30 days and no greater than 60 days from adoption of the resolution finding compliance with State Statutes. This resolution will schedule the public hearing and first reading of the annexation ordinance on March 16, 2004. This Resolution was previously considered by Council at its December 16, 2003 meeting. However, the applicant has requested the delay of the annexation, which has delayed the • previously scheduled first reading date. Thus, this Resolution must be reconsidered with a new hearing date. 26. Resolution 2004-014 Approving the Purchase of a Replacement Sheet of Ice and Related Euuipment as an Exception to the Competitive Purchasing Process. Edora Pool & Ice Center (EPIC) has two sheets of ice that are used for skating lessons, hockey, and other community skating events. The original sheet of ice (the "Blue Rink") was augmented in 2002 by the addition of a second sheet of ice (the "Green Rink"). Commercial Refrigeration provided and installed the refrigeration and cooling systems for the "Green Rink". During the design process, the skid for the refrigeration system was sized to accommodate a third compressor that would eventually support the replacement of the existing "Blue Rink" with the identical system installed for the "Green Rink". Additionally, piping from this skid was sized to accommodate the "Blue Rink" and stubbed to the "Blue Rink" so it could be extended to the new header during the planned renovation. The design for the renovation of the "Blue Rink" is identical to the design for the "Green Rink" and requires all of the same components provided by Commercial Refrigeration. .W1 February 3, 2004 27. Resolution 2004-015 Making Appointments to the Commission on the Status of Women. Vacancies currently exist on the Commission on the Status of Women due to the resignations of Cecilia Altizer and Lee Varra-Nelson. Councilmembers Weitkunat and Tharp interviewed applicants and are recommending Beth Etter and Stacey Arnold to fill the vacancies with terms to begin immediately and to expire on December 31, 2007. 27.5 Resolution 2004-019 Finding Substantial Compliance and Initiating Annexation Proceedings for Such Property to be Known as the Adrian Annexation. The applicant, M. Torgerson Architects, on behalf of the property owners, John and Julie Adrian, has submitted a written petition requesting annexation of 2.18 acres located at the southeast comer of West Vine Drive and Impala Drive. The property is north of Laporte Avenue, west of North Taft Hill Road, and east of North Overland Trail. It is currently being used as an existing single-family residence (with house and horse barn). The requested zoning for this annexation is LMN — Low Density Mixed -Use Neighborhood. The surrounding properties are zoned LMN - Low Density Mixed Use Neighborhood in the City to the north, FA — Farming in Larimer County to the east, FA — Farming in Larimer County to the west, and FA — Farming in Larimer County to the south. The proposed Resolution makes a finding that the petition substantially complies with the Municipal Annexation Act, determines that a hearing should be established regarding the annexation, and directs that notice be given of the hearing. The hearing will be held at the time of first reading of the annexation and zoning ordinances. Not less than thirty days of prior notice is required by State law. ***END CONSENT*** Ordinances on Second Reading were read by title by City Clerk Krajicek. 9. Second Reading of Ordinance No. 008, 2004, Appropriating Unanticipated Revenue into a Project Account for the Design of Improvements to South Taft Hill Road, Between Horsetooth Road and Harmony Road (CR-38E). 10. Second Reading of Ordinance No. 009, 2004, Appropriating Unanticipated Revenue in the Building Community Choices Capital Projects Fund -North College Avenue Corridor Improvements, Phase 1. 11. Second Reading of Ordinance No. 010, 2004, Appropriating Unanticipated Grant Revenue in the General Fund for the Police Services Victim Services Team. EM • February 3, 2004 12. Second Reading of Ordinance No. 011, 2004, Appropriating Unanticipated Grant Revenue in the General Fund for the Police Services Drunk Driving Enforcement Program. 13. Second Reading of an Ordinance No. 012, 2004, Appropriating Unanticipated Revenue in the General Fund for Police Services for the State Homeland Security Program. 14. Second Reading Ordinance No. 013, 2004, Amending Section 8-106 of the City Code Concerningthe he Payment of Covered Expenses. 15. Second Reading of Ordinance No. 014, 2004, Designating the Garrick House, 516 South Meldrum Street, Fort Collins, Colorado, as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code. 16. Second Reading of Ordinance No. 015, 2004, Authorizing the Grant of a Correction Sewerline Easement to Boxelder Sanitation District in Exchange for the Vacation of Part of an Existing Easement. 17. Second Reading of Ordinance No. 016, 2004, Authorizing the City to Grant a Permanent • Easement to Paradigm Properties, LLC on the Resource Recovery Farm. Ordinances on First Reading were read by title by City Clerk Krajicek. 18. First Reading of Ordinance No. 017, 2004, Appropriating Unanticipated Revenue in the General Fund for E911 and Emergency Medical Dispatch Systems at Fort Collins Police Services Dispatch Center. 19. First Reading of Ordinance No. 018, 2004, Appropriating Unanticipated Revenue in the Transportation Services Fund and Authorizing the Transfer of Appropriations For the Purpose of Constructing Bicycle Lane and Streetscape Improvements along West Elizabeth Street Between City Park Avenue and Shields Street. 20. First Reading of Ordinance No. 019, 2004, Appropriating Prior Year Reserves. 21. First Reading of Ordinance No. 020, 2004, Adopting Updated Rules and Regulations Governing Grandview and Roselawn Cemeteries and Amending Section 23-156 of the Cif Code Pertaining to Cemetery Rules and Regulations. 22. First Reading of Ordinance No. 021, 2004, Authorizing the Mavor and the Citv Clerk to Apply and Contract for Beneficial Use of Water on Behalf of the City of Fort Collins, and Prescribing the Terms for Application for an Allocation of the Right to Use Colorado -Big • Thompson Proiect Water to the City by Northern Colorado Water Conservancy District. 483 February 3, 2004 23. First Reading of Ordinance No. 022, 2004, Authorizing the Lease of City -Owned Propertv at 212 West Mountain Avenue for Up to Five Years. 24. First Reading of Ordinance No. 023, 2004, Vacating Portions of the Rights -of -Way as Dedicated on the Plat of Fossil Creek Meadows, First Filing. 33. First Reading of Ordinance No. 024, 2004, Appropriating Prior Year Reserves in the Equipment Fund to Be Used to Purchase Property Located at 518 North Loomis Avenue and to Make Certain Site Improvements to the Property Thereon. 35. First Reading of Ordinance No. 025, 2004, Amending Chapter 15, Article XV of the Cit Code Relating to Solid Waste Collection and Recycling Services. Councilmember Weitkunat made a motion, seconded by Councilmember Kastein, to adopt and approve all items on 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 Consent Calendar Follow-up Councilmember Tharp asked for the reason for delays for item #7 Postponement ofltems Relating to the Peterson Annexation and Zoning to April 6, 2004. City Manager Fischbach stated the delays were due to the County's processing delays. Councilmember Kastein spoke regarding item #19 First Reading of Ordinance No. 018, 2004, Appropriating Unanticipated Revenue in the Transportation Services Fund and Authorizing the Transfer of Appropriations For the Purpose of Constructing Bicycle Lane and Streetscape Improvements along West Elizabeth Street Between City Park Avenue and Shields Street. Councilmember Tharp stated she attended the open house regarding the West Elizabeth Street improvements and that the project should improve safety. Councilmember Bertschy spoke regarding the change in policy to allow Saturday interments that would be accomplished through item #21 First Reading of Ordinance No. 020, 2004, Adopting Updated Rules and Regulations Governing Grandview and Roselawn Cemeteries and Amending Section 23-156 of the City Code Pertaining to Cemetery Rules and Regulations. EM February 3, 2004 Staff Reports City Manager Fischbach reported on the Master Naturalists Program and its volunteer outreach efforts, the City/County/City of Loveland food and cash drive which was won by the City of Fort Collins, and the success of the City's anti-spam and anti -virus software. Greg Byrne, CPES Director, reported on building services staff certifications. Councilmember Reports Mayor Martinez reported on the Safe Kids Partner Recognition Award received by the City. Councilmember Hamrick reported on the Legislative Review Committee discussions relating to several bills pending before the State Legislature. Mayor Martinez commented regarding a State bill regarding eminent domain. Councilmember Kastein expressed appreciation to the building inspection staff for the extra work they were doing to learn more for soil inspections, energy code, etc. He commented that staff was • doing more work with the same staff. Mayor Martinez suggested that a letter be sent from the Council to building inspection staff to thank them for their efforts. He reported that there had been a recognition event for Museum volunteers and that there had been a groundbreaking for In -Situ. He reported that he gave a presentation at a small business luncheon on the City's economic vitality plan. He stated there was a Climate Wise recognition/recruitment event on January 28. He stated he had given a presentation at the U.S. Conference of Mayors on the earned income tax credit program and that a presentation on the program would be given in Longmont for other cities. Resolution 2004-016 Appointing the Members of an Economic Vitality and Sustainability Action Group, Adopted as Amended. The following is staffs memorandum on this item. FINANCIAL IMPACT No direct financial impact. Support of the Group's work will require expenses associated primarily with research, data analysis, and the preparation of written reports. 0 485 February 3, 2004 EXECUTIVE SUMMARY On January 6, 2004 City Council adopted Resolution 2004-006 and endorsed the establishment of an Economic Vitality and SustainabilityAction Group (Task Force). Councilmembers Marty Tharp and Karen Weitkunat (the Council Economic Policy Committee) were to prepare and present to City Council a cross-section of business and economics representatives of the community as well as members of the general public that are interested in serving on the Task Force. Councilmembers Tharp and Weitkunat developed a matrix as a tool to help identify the interests to be reflected on the Task Force. The matrix (see Attachment "A') blended various job and business categories —many of the typical ones listed on the North American Industry Classification System —with some of the important perspectives that should be represented, e.g., environment, economy, entrepreneurial, social, emerging technology and global/local. Using the matrix, potential members were identified to ensure a good cross-section of people and those that have a good working knowledge of these attributes. A preliminary list ofpotential Task Force members was developed—Councilmembers Tharp and Weitkunat suggest expanding the group to 16 members (versus the 13 as originally discussed among all the Councilmembers). Resolution 2004-016 presents a list ofcommunity members to serve on the Task Force. All but three people have been contacted and have expressed their willingness to serve on this group. The number ofpeople that can serve on the Task Force is obviously limited. Yet there are many in the community with skills and expertise that can benefit the work ofthe Task Force. Consequently, a list of Community Resource People that will be asked to work with, provide information and/or assist with analysis of information or proposed strategies as the Task Force does its work, has been established. This list is not complete and, in fact, will remain changeable and flexible throughout the project. " City Manager Fischbach stated Councilmembers Tharp and Weitkunat would be making a presentation. Councilmember Tharp stated she and Councilmember Weitkunat had put together what they considered to be a "balanced list" for members of the Task Force. She stated the list included individuals with a variety of expertise regarding sustainable, vital economic growth. She asked that Council accept the list and move forward with the charge to the group, which would be creating the guidelines under which an economic plan would be created. She stated a list had been developed with the names of other people and organizations from the community as a resource list. She stated a statewide study was done by CU on economic viability by county and that this would be a "first step" resource for the Task Force. She thanked those who had agreed to serve on the Task Force. • February 3, 2004 She stated the expectation was that the Task Force would move quickly to develop the guidelines. She stated the City had always had a good set of economic policies and that the City had not been as aggressive in explaining how the policies should be implemented. She stated that would be the next step. Councilmember Weitkunat stated she and Councilmember Tharp had considered applications from people with impressive credentials who were willing to serve and share their expertise. She stated developing the final list was difficult and that the number to serve on the Task Force must be manageable. She stated the intent was to appoint individuals with a variety of interests and credentials. She stated the list of key resources was developed. She stated the Task Force would be looking at challenges, strengths and issues. She stated the group would not be working on "expansionism" or the building industry. She stated she and Councilmember Tharp felt that the list of names was balanced and that they were asking for Council support. She stated the hope was that the group would work quickly and diligently. City Manager Fischbach stated an updated Resolution had been placed in the Council's "read before the meeting" packets and that the revised Resolution now included the following names: Jim Butzek, Ken Deines, Bill Dieterich, Mary Fischer, Tom Gleason, Rich Harter, Paul Hudnut, Tim Johnson, Kim Jordan, Stuart MacMillan, Chadrick Martinez, David Neenan, Mary Robertson, Linda Stanley, • David Wright and Ellen Zibell. • Kelly Ohlson, 2040 Bennington Circle, expressed concerns regarding the appointment process. He stated the process was not "democratic," that it was "exclusionary" and that it was not open to citizens. He stated the general public had no way of knowing that they could apply or express an interest in serving on the task force. He suggested that several names be deleted from the list and that efforts should be made to move to a more sustainability. He stated he was glad to see that the Resolution had been changed so that the group would not be responsible for creating the economic plan. He stated the Council and the community should create the plan. He stated he did not see on the list many "advocates for sustainability" or individuals who would support "a new path of economic health." He suggested the addition of other individuals who would support "sustainability" and stated the group as listed would be "exclusionary." He asked the Council to create a "more balanced board" by adding several other individuals. Trudi Haines, 625 Hinsdale Drive, stated she had expressed an interest in serving on the Task Force. She stated she was concerned about the economic viability of the community and outlined her qualifications for appointment. She stated she did not have an opportunity to discuss her qualification and background before the list of appointees was developed. She expressed concerns about the process and asked that Council consider adding her to the action group. She outlined her background, education and work experience and stated the group did not include a human resource leader. U-I February 3, 2004 Councilmember Weitkunat stated individuals submitted resumes and letters asking to be included on the Task Force and that there was no application process. She stated there were many people with credentials as impressive as Ms. Haines' who expressed an interest in serving on the Task Force. She stated the membership of the task force could be "huge" with members with "glowing credentials" and that many of the people on the resource list could have been selected to serve on the committee. She stated Ms. Haines should be listed on the resource list. She stated this would be a blue ribbon task force that could work together on economic challenges and that could obtain information from the individuals on the resource list. She stated she regretted that all of the people interested in serving could not be selected to serve. Mayor Martinez stated it was his assumption that the Task Force would be reaching out to people such as Ms. Haines. Councilmember Hamrick objected to the process that was used for the selection of the members of this board. He stated the discussions on this had been "secret" and that the process had not been open to the public. He stated it was inappropriate for communications on this process to be "confidential." He stated he would make a motion under Other Business to release to the public any information that was "confidential" on this matter. He stated there was no way for the public to know who the committee picked or to comment. He stated there was no opportunity for individuals to apply for this board. He stated it was his understanding that names were placed in consideration through e-mails from the Council and that he did not know that letters had been submitted. He stated the process should have been open to public feedback. He stated he would like to know why the information was kept as "confidential" Councilmember Tharp stated it was not easy to put together a blue ribbon task force of key people representing a variety of segments of the community and that this could not be accomplished through a public application process. She stated this was accomplished by "searching" for those people who would represent a particular segment of the community and determining whether those people were willing to serve. She stated she and Councilmember Weitkunat believed that this process would create the best possible Task Force. She stated it was still up to Council to vote on the group that was recommended. She stated she believed that the recommended group was the "best possible diverse group" and that the group represented diverse segments of the community and would help the Council look at economic and sustainability issues. Councilmember Kastein stated he agreed that it was a good idea for Council to "target" certain people and that it was Council's prerogative to find people that they believed would fulfill the needs. He stated the recommended group could be augmented with additional names or that applications could be solicited for several weeks with the intent of adding additional names to the committee. Mayor Martinez stated the Council had agreed to limit the number of committee members to 15. Em. • February 3, 2004 Councilmember Tharp stated 16 names were placed on the list to ensure a broader representation. She stated the group could be slightly larger but that her expectation was that the group would start working in the next week. She stated the combination of the Task Force and the individuals on the resource list should allow the group to move ahead. Councilmember Kastein stated the Council had also talked about another committee that would be long term and ongoing. He stated such an Economic Advisory Board should be appointed through the same process used for other boards and commissions. Councilmember Bertschy stated he was persuaded by the discussion that someone from a major manufacturing firm or from human resources should be appointed. He suggested that Council consider adding Ms. Haines to the list. He stated he could also support Councilmember Kastein's suggestion to have an application process for additional appointments. He stated there was a need for the Task Force to get moving and that at a minimum he would like to see Ms. Haines added to the list. Councilmember Weitkunat stated this was an extremely objective process. She stated the "confidential" discussion of pros and cons on individuals should not be public and that this could be characterized as "head hunting." She stated some discretion needed to be followed in developing a list of names of individuals willing to serve. She stated this was not so much a matter of • "confidentiality" as "discretion." She stated she and Councilmember Tharp worked diligently on the list to include people knowledgeable about education, environment and sustainability. Shestated some people in the manufacturing industry were unable to serve. She stated the resource list was developed because all of the people could not be placed on the task force list. She stated it was time to move forward. She stated she believed that the list of individuals would be able to address challenges, strengths and issues. She stated this was the time to move ahead to get the job done without "bias." Councilmember Roy stated he was concerned about the process for picking the members of the group. He stated the "economic vitality" aspects had been covered and that he was concerned that the "sustainability" aspects were not addressed. Councilmember Weitkunat stated she looked at the individuals on the list as knowledgeable about economic vitality and sustainability. She stated at least three individuals on the list were known for their positions on sustainability. Councilmember Roy stated he was interested in proceeding with the creation of this group based on how it would merge the economic and sustainability needs of the community to create a livable and quality community. He stated there were not many on the list who would work from the sustainability angle. He asked about the appointment of an individual from Windsor (Mr. Martinez) • when outstanding individuals from this community could not be appointed. He stated the first 489 February 3, 2004 WHEREAS clause of the Resolution stated the intent was to "promote the City's economic health." He stated he did not believe that this was the intent. He stated the fifth WHEREAS clause stated the nominees would "represent a cross section of business and economic representatives of the community, as well as members of the general public." He stated the other piece of quality of life and livability was "sustainability." He stated the list should be enlarged to include people to talk about sustainability. He stated the process was counter to a democratic process to allow people to have an "even opportunity" to participate. Councilmember Hamrick stated he felt that this process violated City confidentiality rules. He stated such discussions needed to be kept as open as possible. He questioned whether the Task Force meetings would be held in secret and stated the meetings should be open to the public. He asked about the resource list and whether the biographical information had been released to the public. City Manager Fischbach stated it had been completed in the afternoon and had likely not been released yet. He stated the information was eligible for release to the public. Councilmember Hamrick stated the public was invited to comment on this Resolution but that the information was not available. He stated it would be helpful to go through the biographical information and review each individual's qualifications in a public process. Councilmember Weitkunat stated she saw this as a "stalling tactic" and stated the group would not be meeting privately or secretly. She stated she wanted to move forward on this issue. Councilmember Weitkunat made a motion, seconded by Councilmember Tharp, to adopt Resolution 2004-16. Councilmember Bertschy made a motion, seconded by Councilmember Tharp, to add Trudi Haines to the group. Councilmember Weitkunat stated she did not object to having Ms. Haines as a member of the group but that she felt that it was inappropriate that this kind of lobbying took place when that opportunity was not available to other citizens. She stated she saw this as a "poor process." Councilmember Tharp stated Ms. Haines made such a compelling case regarding the expertise that she might bring to the board that she saw no reason not to add her to the group. She stated this addition would not affect the size of the group too much. She stated the process was "imperfect" no matter how it was done. Councilmember Kastein stated he had no issue with the list of people selected by Councilmembers Tharp and Weitkunat. He stated the Resolution would direct the group to identify economic challenges, strengths and issues facing the community and specific economic strategies to leverage strengths and overcome problems. He stated the target list of people was excellent and he suggested 0 February 3, 2004 going ahead with the names as listed and allow the group to get started as quickly as possible. He stated he would like the Council to consider taking applications for several weeks with the intent of identifying people who should be added to the committee. Councilmember Tharp stated the Council could add to the resource list rather than the Task Force. She stated the group was capable of gathering information from people who were not officially on the Task Force. She favored keeping the Task Force as listed. Mayor Martinez stated the Task Force could make recommendations to the Council regarding additional resources needed. Councilmember Kastein asked that the adjunct group be publicized and that interested people be invited make known their interest in being added to the resource list. Councilmember Tharp stated there were people in various segments of the community who had expertise. She stated it would be helpful to have a broad base of experts on the resource list. The vote on the motion to amend the main motion to add Trudi Haines to the list was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Nays: is None. THE MOTION CARRIED Councilmember Roy made a motion, seconded by Councilmember Hamrick, to amend the motion on the floor to change the first WHEREAS clause from "proposed measures designed to promote the City's economic health" to include the statement "proposed measures designed to promote the City's economic health and ability to be sustainable." The vote on the motion to amend the first WHEREAS clause was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED Councilmember Hamrick stated some of the appointees might have a direct conflict of interest from a financial perspective. He stated he believed that it would be inappropriate to appoint people who would have that sort of conflict of interest. He asked if any of the individuals recommended for appointment might have such a conflict of interest. Councilmember Tharp stated the Task Force was not to create the plan but to gather information and help with developing guidelines for a plan. She stated she saw no particular benefit for anyone by • any action that the Task Force would take. She stated the Council would take action at a later date 491 February 3, 2004 to adopt a plan. She stated people from a wide variety of backgrounds were needed for information gathering. She stated none of the appointees would benefit by helping with the creation of guidelines for a City-wide economic plan. Councilmember Hamrick asked how the group would operate and if a chair would be elected. Councilmember Tharp stated the details of operation would be worked out by the Task Force. She stated the Task Force would have staff support and would meet on a regular basis. Mayor Martinez stated the Council had recommended previously that the Task Force appoint a chair other than a Councilmember. Councilmember Roy asked if the person from Windsor (Chadrick Martinez) would be eligible to serve on a City board or commission. City Attorney Roy stated individuals residing outside of the Growth Management Area were not eligible to serve on boards or commissions. Mayor Martinez asked if there was a difference between a board or commission and this Task Force. City Attorney Roy stated the residency rule applied only to boards and commissions of the City and not to ad hoc committees. Councilmember Bertschy stated there had been some discussion that the list did not include anyone from the nonprofit and community service sectors and that there was a lack of diversity. He stated other individuals who were approached were not able to serve and that Mr. Martinez had indicated a willingness to serve. He noted that Mr. Martinez was the director of the CARE Housing Board and that it was important to have a representative from the nonprofit sector on the committee. He stated it was important to maintain diversity on this group. Mayor Martinez stated he had not heard any public recommendations about who else should serve on the group. He stated Council was welcome to recommend additional names. Councilmember Roy stated he had clearly stated his position on how the process should have worked. He stated he would support the appointment of John Gless, Randy Fischer, or Glen Colton because of their interest in sustainability. He stated the list was "heavily weighted" toward a particular endeavor and was not balanced to work toward the mutual goals of economic health and quality of life and vitality. Councilmember Roy made a motion, seconded by Councilmember Hamrick, to add John Gless and Randy Fischer to the group. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick and Roy. Nays: Councilmembers Kastein, Martinez, Tharp and Weitkunat. THE MOTION FAILED 492 • February 3, 1004 Councilmember Hamrick stated the names MacMillan and N eenan were "redundant." He stated both had extensive development backgrounds and asked why both were needed. Councilmember Weitkunat stated the two individuals had different ideologies and that both had extensive community involvement. She stated Mr. Neenan had a "total community perspective" far beyond development issues and that he was a "strong community member." She stated Mr. MacMillan worked on the Chamber of Commerce Board. She stated Council's request not to have the Chamber of Commerce represented was honored and that the appointment of Mr. MacMillan would add the "voice of the Chamber to a degree." She stated he was also knowledgeable in the retail sector and was involved in "social aspects" of the community. She stated the individuals listed represented the community rather than just an industry. Councilmember Hamrick stated the group was too large due to the addition of Ms. Haines. Councilmember Hamrick made a motion, seconded by Councilmember Roy, to strike the name David Neenan. The vote on the motion was as follows: Yeas: Councilmembers Hamrick and Roy. Nays: Councilmembers Bertschy, Kastein, Martinez, Tharp and Weitkunat. • THE MOTION FAILED Councilmember Weitkunat stated she was ready to vote and that she was sorry for the "embarrassment" this discussion was causing the community. Councilmember Tharp stated Council was kept informed as the list was developed and that there was an opportunity throughout the process to add suggestions. She stated the opportunity for Council participation had apparently not satisfied some Councilmembers. She stated she felt that this "terrific group" would be charged with helping to define the problem and the direction. She stated she believed that the group would do an excellent job. Councilmember Kastein thanked Councilmembers Tharp and Weitkunat for their work on putting the list together. Councilmember Hamrick stated he appreciated the efforts of Councilmembers Tharp and Weitkunat and that he was still bothered by the process. He stated he would not support the Resolution because there had not been adequate public visibility. Councilmember Roy thanked Councilmembers Tharp and Weitkunat for their work on the list. He stated the list of names was "incomplete for the task at hand." He stated the health of the community did not relate solely to economics. He stated this list of names reached out to a particular segment • of the community and to those who already had a "voice." He stated to have a healthy community 493 February 3, 2004 25 to 50 years from now that thoughts needed to be included in the discussion that were being "discounted." He stated he would not support the Resolution because he recognized that it "missed the boat." Councilmember Bertschy stated the Council had adopted a Resolution setting forth a six -point plan for looking at the economic health and sustainability of the community and that one of the points was to move forward with an action group. He stated there would never be a "perfect list" and that the group needed to get going on its work. He stated he would support the Resolution. Mayor Martinez stated the Council had an understanding that the work of Councilmembers Tharp and Weitkunat was a "work in progress" and that their work did not constitute a "secret meeting." He stated this did not represent secret work behind closed doors. He stated the group represented a cross section of the community and that it included those who represented sustainability. He stated the group would be working in the best interests of the community. He stated it was a Task Force rather than a board or commission. The vote on the main motion as amended was as follows: Yeas: Councilmembers Bertschy, Kastein, Martinez, Tharp and Weitkunat. Nays: Councilmembers Hamrick and Roy. THE MOTION CARRIED ("Secretary's Note: The Council took a brief recess at this point.) Resolution 2004-017 Making an Appointment to the Downtown Development Authority, Postvoned. The following is staffs memorandum on this item. "EXECUTIVE SUMMARY A vacancy exists on the Downtown Development Authority due to the expiration of term of Greg Belcher. Councilmember Bertschy and Mayor Martinez interviewed the applicants and did not reach agreement on a recommendation to fill the vacancy. The Council interview team wishes to submit Karen Wagner and Jack Wolfe for Council's consideration. Applications are attached for the two applicants being considered. " City Manager Fischbach stated he understood that Mayor Martinez and Councilmember Bertschy had comments to make. Mayor Martinez asked that Council consider his recommendation to appoint Jack Wolfe. 494 n U February 3, 2004 Councilmember Bertschy spoke in favor of the appointment of Karen Wagner. Nancy York, 130 South Whitcomb, supported the appointment of Karen Wagner. Kelly Ohlson, 2040 Bennington Circle, supported the appointment of Karen Wagner and stated it was inappropriate that a conversation took place between the Executive Director of the DDA and one of the Councilmembers in which the Executive Director pushed for the appointment of one of the applicants. He stated the Executive Director, as a public employee, should not be involved in influencing the selection process. David Wright, Director of Citizen Planners, supported the appointment of Karen Wagner. Randy Fischer, 3007 Moore Lane, supported the appointment of Karen Wagner. David May, Fort Collins Area Chamber of Commerce, supported the appointment of Jack Wolfe. Kim Jordan, DDA Chair, stated she believed that a diversity of opinion should be welcomed regarding appointments, and that she felt that it was not improper for the DDA Executive Director to speak to Councilmembers about his views on appointments. She stated it was the • recommendation of the DDA Board that someone with financial analysis expertise be appointed and that she supported the appointment of Jack Wolfe. Councilmember Hamrick asked for Councilmember Bertschy's perspective on why the skills of a banker were needed on the DDA Board. Councilmember Bertschy stated the DDA dealt with large amounts of money and that it was helpful to have a financial perspective. He stated Mr. Wolfe was well qualified for the appointment although he felt that Ms. Wagner would be the best choice. Councilmember Hamrick asked how the DDA Board dealt with large sums of money if there was no banker on the Board. Councilmember Bertschy stated the DDA Board operated in ways similar to the City Council and that the backgrounds of all Boardmembers were brought into the decision -making process. He stated there had been financial people on the DDA Board in the past. Mayor Martinez asked if it had been the practice to have someone from the banking industry on the DDA Board. Ms. Jordan stated the DDA Board was looking at the long term future and that part of that was looking at handling a larger pool of money that had come in through economic revitalization and redevelopment efforts. She stated it was her hope that the new appointee would is bring a different and fresh perspective to the Board to attend to a balanced list of issues. 495 February 3, 2004 Councilmember Hamrick asked the City Attorney ifthere was any Code provision or regulation that would address the conversation that took place between the DDA Executive Director and Councilmembers. Mayor Martinez stated this point was perhaps out of character with the discussion. Councilmember Tharp stated if the conversation was an improper action that could have an impact on the vote and that she would like to have an answer regarding the appropriateness of the conversation. City Attorney Roy stated the members and employees of the DDA Board were expressly exempted from the City's conflict of interest provisions set out in the City Charter and City Code. He stated the person who would be responsible for answering the question would need to review the State statutes and have a better understanding of the facts before giving an answer. Councilmember Hamrick asked if the City Attorney could follow-up on the question. City Attorney Roy asked for clarification that he was being asked to give an opinion to the Council regarding the appropriateness of Mr. Steiner's recommendation to the Councilmembers. Councilmember Hamrick stated was his intent. City Attorney Roy stated he could prepare such an opinion. Councilmember Hamrick asked what criteria an appointee to the DDA Board would have to meet before being appointment. City Attorney Roy stated each appointed member of the DDA Board, except any member from the City Council, must reside, be a business lessee or own real property in the DDA District. He stated an officer or director of a corporation having its place of business in the DDA District would be eligible for appointment to the Board. Councilmember Hamrick asked if both candidates met the criteria for appointment. City Attorney Roy stated it was his understanding that both candidates met the criteria. Councilmember Roy asked about the number and names of current DDA Board members. Ms. Jordan listed the current Board members. Councilmember Roy stated the discussion on appointments to the Task Force in the previous agenda item focused on ensuring diversity in race and gender. He suggested that there was a need to create a DDA Board that was somewhat more diverse and balanced. Councilmember Weitkunat made a motion, seconded by Councilmember Kastein, to adopt Resolution 2004-017 inserting the name Jack Wolfe. .m, • February 3, 2004 Councilmember Hamrick stated the Council should ensure a Board that was balanced in perspective. He stated a diverse Board was achieved by appointing people with different perspectives. He stated opportunities, ideas, creativity and discussion would be missed if all Board members had the same perspective. He stated people willing to speak out on issues would be an asset to any team. He stated he could not support the motion and would continue to support the appointment of Karen Wagner. Councilmember Roy stated the Wagners had been a part of the downtown renaissance. He stated Ms. W agnerhad demonstrated a connection to this community and the downtown and that she would be an asset to the Board. Councilmember Weitkunat suggested focusing on the function of the DDA. She stated the discussion had turned into a "political name game" rather than focusing on expertise and credentials. She expressed a concern that appointments to influential boards were being made based on friendship rather than credentials. She stated the DDA Board was extremely important and that the Board had asked for appointments of individuals who had expertise in certain areas. She stated the Council needed to do what was good for the community and that she believed that the appointment of Jack Wolfe was best. She stated the Board had indicated that it was important to appoint someone with financial expertise and that someone should be appointed to help the Board move forward. • Councilmember Roy stated Ms. Wagnerhad expertise in investments and income properties andthat this indicated some financial acumen. • Councilmember Bertschy stated he would continue to support the appointment of Ms. Wagner. Councilmember Kastein stated he would support the appointment of Mr. Wolfe. Councilmember Roy stated he continued to support the appointment of Ms. Wagner. Councilmember Tharp stated she would lean in the direction of adding a person who had financial background to the Board. She stated Mr. Wolfe would bring specific expertise to the Board. Mayor Martinez stated the Board had asked for some representation from the banking community. He stated he was persuaded by the request of the Board and the interview of Mr. Wolfe. He stated Mr. Steiner had indicated to him that he was in no position to make a recommendation about appointments. Councilmember Tharp stated she wanted to make it clear that Mr. Steiner did talk with her and told her that a banker was needed on the Board. She stated she was unaware that the conservation might be inappropriate. 497 February 3, 2004 Councilmember Roy made a motion, seconded by Councilmember Hamrick, to postpone Resolution 2004-017 until the City Attorney had offered his opinion on whether a conversation between DDA Executive Director Chip Steiner and Councilmember Tharp was appropriate and whether the conduct violated applicable provisions and standards of conduct. Councilmember Roy stated it was important for the Council to ensure that interactions with individuals in the community were all aboveboard and appropriate. He spoke in support of postponing the Resolution until the City Attorney's opinion could be given to the Council. Councilmember Kastein asked the City Attorney to comment on the appropriateness of the Council adopting the Resolution with pending work by the City Attorney on the requested opinion. City Attorney Roy stated adoption of the Resolution was at the discretion of the Council and its determination whether the pending opinion was needed before a vote on the Resolution. Councilmember Kastein stated whether or not the conversation between Mr. Steiner and Councilmember Tharp was proper that he believed that Mr. Wolfe was the right person for the job. Councilmember Weitkunat stated she agreed with Councilmember Kastein. She asked about the previous statement by the City Attorney. City Attorney Roy stated the City's conflict of interest provisions did not apply to authorities of the City if the authorities were governed by State statutory rules of conduct and if the City Code expressly exempted the authority from the conflict of interest provisions. He stated the City Code exempted the DDA from the Charter conflict of interest provisions. He stated he would need to determine which provisions would apply and whether the conduct in question violated any of those standards. He stated he was not in a position at this time to give a recommendation as to the propriety of the conversation. Councilmember Weitkunat asked if the Council could go ahead and make a decision on the appointment. City Attorney Roy stated the Council could adopt the Resolution rather than postpone if it believed that it had enough information to make the decision. Councilmember Tharp stated she believed that an opinion was necessary and that she supported postponement until the Council received the opinion. Mayor Martinez asked if the opinion would indicate whether or not something illegal was done. Councilmember Tharp stated she wanted to know if the Executive Director should not have been influencing her decision and that the opinion could influence her decision on how to vote. The vote on the motion to postpone was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Nays: None. me3 February 3, 2004 THE MOTION CARRIED City Attorney Roy stated the motion on adoption of the Resolution was postponed until he had given an opinion to the Council. Mayor Martinez asked for a timeframe on preparation of the opinion by the City Attorney. City Attorney Roy stated he would have an opinion to the City Council prior to the next Council meeting. Ordinance No. 024, 2004 Appropriating Prior Year Reserves in the Equipment Fund to Be Used to Purchase Property Located at 518 North Loomis Avenue and to Make Certain Site Improvements to the Property Thereon, Adopted on First Reading. The following is staffs memorandum on this item. "FINANCIAL IMPACT • Funding is available in the Fleet Services Reservefund. The use of this reserve is designated for the acquisition of Fleet vehicles, equipment, and expansion or replacement of supporting facilities. Remaining reserve funds will be $1,464,917 if this ordinance is approved. EXECUTIVE SUMMARY This request is for appropriating Fleet Services Reserve funds in the amount of $597,000 to purchase the property and $85, 000 to provide site improvement - such as landscaping, site cleanup, and fence removal. The property consists of three connected warehouse buildings totaling 20,000 square feet. The associated land totals 1.01 acres. The proposed use of this property would be for consolidating furniture and Fleet and Facility Services' maintenance and repair materials in a single location. Currently, 21,500 square feet ofstorage is provided in four temporary locations in the downtown Civic Center complex plus one location at the Fleet Services site at Wood Street. Additionally, the purchase of this warehouse space will preclude the need to include this storage in thefuture Operations Services (Fleet and Facility Services) administration and supportfacility. This has the potential of saving substantial dollars required for that project. Staffpersonnel have discussed thepossibility ofthe Citypurchasing this site with the Martinez Farm neighborhood group. " 0 499 February 3, 2004 City Manager Fischbach introduced the agenda item. Ken Marmon, Operation Services Director, presented background information regardingthe agenda item. He presented visual information regarding the property and its proximity to other City properties, described the site and spoke regarding the City's storage needs. He stated the purchase price for the property was $597,000 and that $85,000 in improvements were planned. He stated the requested appropriation was $682,000 and that fleet reserves would remain at $1.46 million after the purchase. He stated the benefits would include consolidation of storage, meeting short term storage needs for the police department, and the lease of other City properties. He stated there would be a substantial savings to buying this property compared to new construction. He stated there had been a number ofineetings with the neighborhood and that positive feedback was received. He stated this was a win -win solution for all parties involved. David Warner, 405 North Grant, Martinez Park neighborhood, spoke in support of the City's purchase of the Salvation Army property. He stated the neighborhood was generally in favor of the City turning this into storage. Leigh Lentile, 527 North Loomis Avenue, spoke in support of the City's purchase of the Salvation Army property. Capt. Don Shepherd, Salvation Army, spoke in support of the City's purchase of the Salvation Army property. Councilmember Kastein asked what purchases would be delayed or what opportunities would be missed by drawing down the fleet reserves. City Manager Fischbach stated the purpose of the reserve fund was to save money to build an additional facility on Wood Street. He stated the cost for that new facility would be three times the cost of this facility. He stated this was an opportunity for savings. Councilmember Kastein asked if vehicles were also funded from the reserve fund. City Manager Fischbach stated the reserve fund was solely for buildings. Mayor Martinez asked if there were plans for any other buildings using this fund. City Manager Fischbach stated no other projects would be delayed. Marmon stated the reserve was designated for future expansion and fixed equipment and that adequate reserves would remain for the replacement of any fixed equipment in the event of any major failures. He stated expansion was needed to deal with large inventories. He stated fixed equipment did not include rolling fleet. Mayor Martinez asked if there would be adequate money for fixed equipment. Marmon replied in the affirmative. 500 February 3, 2004 Mayor Martinez asked if money had been saved in the reserve for this type of facility. Mannon replied in the affirmative and stated this would be the most cost-effective option for a facility. Mayor Martinez asked for more information regarding the locations of current storage. Mannon stated storage was currently at the Car Barn, the old Cramer's Auto Body, Ricker Brothers, Poudre Valley Creamery and the existing office complex at 117 North Mason (Toliver's). Mayor Martinez asked if consolidation of storage on Loomis would mean that the existing storage would become vacant. Mannon stated the Car Barn would remain in use for storage, that Cramer's Auto Body was being looked at for downtown redevelopment, that Ricker Brothers would be vacated and could possibly be used for Police storage, and that there would be some additional space at 117 North Mason. Mayor Martinez asked if this building would accommodate all of the needs. Mannon stated this site would have 20,050 square feet and that the current storage was 21,000 square feet. He stated storage for many furnishings would no longer be needed as renovations were completed. He stated the Salvation Army space would be adequate for storage for up to 25 years. Mayor Martinez asked what the remainder of the reserve fund would be used for. Mannon stated • shop expansion (repair stalls) could be needed in 5-10 years and that the reserves would be needed for such expansions. • Mayor Martinez asked if the Police Department would be charged storage rent to use additional storage. Mannon replied in the negative. Mayor Martinez asked if the Police Department would be charged for any renovation work that would be needed to use the storage and whether that could be taken from the reserve fund. Mannon stated some of the renovation costs would be covered by capital expansion fees. Mayor Martinez asked if security enhancements would be paid by the Police Department. City Manager Fischbach stated would come from the Police Department budget. Mayor Martinez asked if the Police Department had funds available for security enhancements. City Manager Fischbach stated the Police Department had sufficient funds for this type of work. Mayor Martinez commented that employee salaries were being frozen and that there were budget cutbacks and that more than $600,000 was being used for a building. He asked if the security enhancements could be paid for from the fleet reserve fund. City Manager Fischbach stated the Police Department had money in the budget for the security enhancements. 501 February 3, 2004 Mayor Martinez requested information on where the security enhancements would come from in the Police budget. City Manager Fischbach stated he would request this information from the Police Department. Councilmember Kastein asked if this reserve fund was encumbered for fleet use only. City Manager Fischbach stated the fund was created and dedicated for fleet use. Councilmember Bertschy made a motion, seconded by Councilmember Tharp, to adopt Ordinance No. 024, 2004 on First Reading. Councilmember Roy stated this was a cooperative effort between the staff, the neighborhood and the Salvation Army. He stated this was a win -win solution for everyone. Councilmember Kastein stated he appreciated the Mayor's line of questioning and that there was a need to explore whether there might be higher priorities for money not encumbered for a particular use. He stated the Council was interested in knowing the targeted uses for reserve funds. City Manager Fischbach stated staff had provided information on the $268 million in reserves. Councilmember Kastein stated there had been discussions since the budget discussions about how reserves might be used. He stated he would support the motion. Mayor Martinez stated reserves afforded opportunities to buy at the right time. He stated it was also necessary for the public to understand how an expenditure of this magnitude could be made at a time of budget cuts. He stated it was important to provide more space for the police department and that he did not want the Police Department to have to cut something else from the budget to get the space needed. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED 502 February 3, 2004 Items Relating to 2004 Water Rates for Single Family and Duplex Water Customers. The following is staffs memorandum on this item. EXECUTIVE SUMMARY A. Resolution 2004-018 Expressing the Council's Intent to Continue in Effect for 2004 the Existing User Rates and Charges for Water (Option A). OR B. Resolution 2004-018 Directing the City Manager to Develop a Modified 5-Tiered Rate Structure for Residential Water Customers (Option B). OR C. Resolution 2004-018 Directing the City Manager to Develop a Water Budget -Based Rate Structure for Residential Water Customers (Option Q. At the December 9, 2003 Study Session, Utilities staffpresented City Council with four water rate • options for single family and duplex customers. During the study session there were various levels ofsupport expressed for two options: (1) retaining the current tiered rate structure (with or without modifications); and (2) the water budget rate structure. • Based on input from Council, this item presents three options for water rates in 2004. Option A — Existing 5-Tiered Rate Option A is a resolution to retain the current 5-tiered water rate for 2004. Option B — Modified 5-Tiered Rate Option B is a resolution directing staff to bring back to Council an Ordinance implementing a modified 5-tiered rate for residential single family and duplex customers. Option C — Water Budget Rate Structure Option C is a resolution directing staff to bring back to Council an ordinance implementing a water budget rate structure for residential single family and duplex customers. If Option A is favored, the current rate ordinance would remain in effect for 2004 and no additional action would be required by Council. Ifeither Option B or C is approved, a rate ordinance implementing such would be scheduled forfirst reading at the March 2, 2004 Council meeting and second reading at the March 16, 2004 Council 503 February 3, 2004 meeting, and would be effective for billings with meter readings on or after May 1, 2004. BACKGROUND At the December 9, 2003 Study Session, Utilities staff presented City Council with four water rate options for single family and duplex customers: • Retain existing 2003 5-tiered rate • Modified 3-tier rate • Seasonal rate • Water budget rate Staff requested Council feedback and direction as to whether the current 5-tiered rate should be retained for 2004, and ifnot, which rate option would bepreferred. The Council expressed interest in two of the options: Retaining the current 5 tiered rate with possible modifications of increasing the number of tiers to seven and/or reducing the impact of the upper tiers. (Note: The staff examined the idea ofadding additional tiers to the 5-tier structure (expanding it to a 7-tier rate structure) but it is not recommended for two reasons. First, the addition of two tiers adds to the complexities of administering the rate and makes it more difficult to present tiered usage data on the customer's bill. Secondly, the additional tiers do not provide a significant advantage over the 5-tiered rate in mitigating the impacts to larger users) The Water Budget rate with the possible modifications of lowering the fixed charge and dividing the excess water charge into a couple of tiers to spread out the impact. Based on the input from Council, this item presents three options for Council consideration: (A) a resolution retaining the current 5-tiered water rates for single family and duplex customers. (B) a resolution directing staff to bring back to the Council an ordinance implementing a modified 5-tiered rate to mitigate the current rate impacts for larger users. © a resolution directing staff to bring back to the Council an ordinance implementing a Water Budget rate structure. The three options are explained below in more detail. Option A - Retain the Existing 5-Tiered Rate 504 February 3, 2004 The option retains the existing 5-tiered rate without any changes. Existing 5-Tiered Rate Structure Fixed charge $12.72 0-7,000 gallons $1.78 per 1000 gal 7, 001-13, 000 gallons $2.37 per 1000 gal 13,001-20,000 gallons $2.97 per 1000 gal 20, 001-33, 000 gallons $3.56 per 1000 gal Greater than 33, 000 gallons $4.45 per 1000 gal Pros: • Continues to send a very strong price signal to all large water users. Cons: • Provides no relief to large users who currently pay 2.5 times more per gallon at the top tier of the rate than in the first tier. • Revenue recovered through this rate may exceed revenue projections. This rate was part of the City's drought response in addition to the water restrictions that were in place in • 2003. The rate was designed to recover adequate revenues with a 15% reduction in water use. Without mandated water restrictions in 2004, it is expected that customers may use more water than in 2003. The increase in water use may result in revenue in excess of projected revenue requirements. • Option B — Modify the Existing 5-Tiered Rate This option modifies the existing 5-tiered rate by reducing thepercentage increase between the tiers. Existing 5-Tier Rate Structure (Option A Option B Fixed charge $12.72 $12.71 0-7, 000 gallons $1.78 per 1000 gal $ 1.78 per 1,000 gal. 7, 001-13, 000 gallons $2.37 per 1000 gal $ 2.14 per 1, 000 gal. 13, 001-20, 000 gallons $1.97 per 1000 gal 1 $ 2.56 per 1, 000 gal. 20, 001-33, 000 gallons $3.56 per 1000 gal $ 3.08 per 1, 000 gal. Greater than 33,000 gallons 1 $4.45 per 1000 gal $ 3.69 per 1, 000 gal. Pros: • Meets, but does not exceed, projected revenue targets based on estimated customer water use. • Provides some relief to larger users while continuing to send a strong price signal to 505 February 3, 2004 encourage conservation. (Top tier is 2.07 times greater than first tier.) Does not increase rates for small users. Cons: • Lower "penalty "price signal for larger users. Comparison of Option A and Option B Water Use (gallons) Monthly Bill Option A Monthly Bill Option B % Reduction in Monthly Bill 7,000 $25.18 $25.18 0% 10,000 $32.29 $31.68 2.18% 20,000 $60.19 $55.94 7.60% 30,000 $95.79 $86.74 10.43 % 40,000 $137.62 $121.81 12.98% 50,000 $182.12 $158.71 14.75% 60,000 $226.62 $195.61 15.85% 70,000 $271.12 $232.51 16.61% 80,000 $315.62 $269.41 17.15% 90,000 $360.12 $306.31 17.57% 100,000 $404.62 1 $343.21 17.89% Option C - Develop new Water Budget Rate Structure This option develops a new rate structure based on the water budget concept. More specifically, each residential single family and duplex customer would have a predetermined monthly water budget consisting of an indoor allotment and outdoor allotment. The indoor allotment would be based on the customer's average winter quarter (Dec -Feb) water consumption times a factor of 1.2 to allow for monthly fluctuations. The outdoor allotment would be based on 70% of the lot size and a predetermined irrigation component for each month of the year. The typical water budget would vary month to month with it being larger during the summer months and smaller during the winter months. Monthly water consumption in excess of the water budget would be billed at a higher variable rate to discourage excessive water use. Pros: Promotes the perception offairness by using an individualized water budget based on the customers estimated indoor water use (winter quarter water consumption) and estimated outdoor water use based on lot size. Maintains a high price penaltyfor excessive water use Could be easily adapted for drought conditions by proportionally reducing the outdoor water allotment. 506 0 February 3, 2004 Cons: Very complex to administer, explain and understand Monthly water bills for low water users will increase slightly as compared to both the existing and modified 5-tiered rate. The rates for the water budget presented at the December 9, 2003 Council study session are as follows: Fixed Charge - $16.50 Water Budget Rate - $1.65 per 1, 000 gallons Excessive Water Use Rate - $4.90 per 1, 000 gallons There was a suggestion by Council that the fixed charge be lowered to match the fixed charge of the present 5-tiered rate ($12.76). Lowering the fixed charge will raise the water budget rate in order to compensate for the decrease. The water budget rate with the lowered fixed charge will increase to $2.02 per 1, 000 gallons. Also, it was suggested that the excessive water use rate be separated into a couple ofsteps or tiers. • Staff is recommending the following: 4. Water consumption which exceeds the water budget up to 20% would be charged at the rate of $3.00 per 1, 000 gallons. 5. Water consumption which exceeds the water budget by more than 20% would be charged at the rate of $4.00 per 1, 000 gallons. r 1 L_J The following is a summary of the proposed water budget rate with the changes suggested by Council: Fixed Charge $12.72 Water consumption within the water budget $2.02 per 1, 000 gallons allotment Water consumption which exceeds the $3.00 per 1, 000 gallons water budget allotment up to 20% Water consumption which exceeds the $4.00 per 1,000 gallons water budget allotment by more than 20%. City Manager Fischbach introduced the agenda item. He noted that one other agenda item followed this item and suggested that the Council decide whether both agenda items would be completed at this meeting. 507 February 3, 2004 Mayor Martinez suggested proceeding with this agenda item and making an announcement later in the meeting if the following agenda item was to be postponed to another meeting. Mike Smith, Utilities General Manager, presented background information regarding the agenda item. He stated three options were being presented for consideration: Option A - the existing five - tier rate with no changes; Option B - a modified five -tier rate; and Option C - the water budget rate. He described each of the three options in detail and addressed the pros and cons of each option. He presented a comparison of annual costs for customers for each of the three options. He stated staff was recommending Option C and that the secondary recommendation was for Option B. He stated staff felt that Option C would be a better long term solution even though it would be more difficult to administer. He stated the Water Board recommended Option C. Councilmember Kastein asked for a hard copy of one of the charts presented by Mr. Smith. Mayor Martinez stated each audience participant would have three minutes to speak. Randy Fischer, 3007 Moore Lane, spoke in support of continuance of the tiered rate structure (Option A). Richard Jensen, 2715 West Mulberry, spoke in support of Option C. Kevin Westhuis, 2944 Telluride Court, spoke against the tiered rate structure and spoke in favor of a rate structure based on the cost of providing and delivering water. Cordelia Stone, 4512 Moccasin Circle, supported Option A. Bob Haberstroh, 1209 Parkwood Drive, stated he had a large lot with many trees and stated the issue was fairness and that the same price per gallon should be charged to everyone (Option Q. Joe Lewandowski, 1036 Mirromere Circle, spoke in support of the tiered rate (Option A) and an educational outreach effort. Nancy York, 130 South Whitcomb, spoke in favor of Option A. Linda Stanley, 2040 Bennington Circle, supported either of the tiered rate options (Option A or Option B). Doug Hutchinson, 1315 Whedbee Street, spoke regarding conservation efforts and the robust water supply and stated there was no valid rationale for tiered water rates in 2004. om • February 3, 2004 Kelly Ohlson, 2040 Bennington Circle, spoke in support of a modified tiered water rate structure (Option B) to allow people time to adjust. ("Secretary's Note: Mayor Martinez asked if the Council wanted to delay the next agenda item to the next meeting. City Manager Fischbach noted that the agenda for the next meeting was relatively long. Councilmember Tharp stated she was concerned that people had been waiting for more than three hours for the next agenda item and that she would like to hear their comments. Mayor Martinez stated the consensus appeared to be to continue the meeting. The Council took a brief recess at this point.) Councilmember Kastein asked for confirmation that the water budget rates would mean a 3.8% increase for the lower 25" percentile compared with the tiered rates. Smith replied in the affirmative. Councilmember Kastein stated the dollar amount for the lower 25'h percentile in 2003 was actually lower than the amount paid for that group in 2002. Smith stated was correct. Councilmember Kastein stated the water budget rate was actually higher than the 2002 rates. Smith stated was correct. • Councilmember Hamrick asked about the 70% credit for landscape under the budgeting scenario. Smith stated this included all landscaping that was not impervious. Councilmember Hamrick asked if grass was treated the same as xeriscape landscaping in this scenario. Smith replied in the affirmative and stated figures were based on 70% of the size of the lot. Councilmember Hamrick asked if the 70% would vary. Smith stated it would vary depending on winter quarter use. Councilmember Bertschy asked if the customer could pay a monthly rate based on a 12-month average. Smith stated budget billing was available. Wendy Williams, Utilities Assistant General Manager, stated the budget billing was based on the previous year's use. Councilmember Bertschy asked why there must be a higher rate if there were extra days in the billing month. Smith stated it was easier to pro rate on budget billing than it was on the tiered rate system. He stated pro rating occurred using the lower tier once the billing period exceeded 32 days. Councilmember Tharp stated she would ask questions relating to the actual cost of water and comparisons with other cities at another time. She stated it seemed unfair to raise the initial cost if water budgeting was implemented and she asked why this was necessary. Bill Switzer, Utilities • Financial and Budget Manager, stated the current rate had lower and higher steps and that the 509 February 3, 2004 assumption under the water budget rates was that there would not be any penalty for revenues because of the flat rate. He stated those who were lower than the average went up and those who were higher than the average when down because of the flat rate. He stated the first tier of the tiered rate was below the average and therefore went up. Smith showed a slide comparing Fort Collins rates with other cities in Colorado. Councilmember Weitkunat asked if the tiered rate was implemented to conserve water. Smith replied in the affirmative. Councilmember Weitkunat asked if the tiered rate conserved water. Smith replied that some water was saved. Councilmember Weitkunat asked what happened to the water conserved and whether the City could use it later. Smith stated conservation helped the City to carryover extra water for 2004. He stated restrictions were usually implemented when the water supply was projected to be inadequate to meet demand. He stated watering restrictions and the water rates were both designed to reduce demand to meet the projected supply. Councilmember Weitkunat asked if watering restrictions were an element ofthe conservation efforts. Smith replied in the affirmative. He stated staff could not say for certain how much of the savings was due to the rate structure or the watering restrictions or the wet weather in May and June. Councilmember Weitkunat asked if conserving water was a goal in drought times but not in non - drought years. She asked if the City was still conserving at the level of drought conditions and if the purpose of conservation had changed. She stated some audience participants had said that everyone should use only 3,000 gallons of water and that she did not see this as a realistic goal. She asked why the tiered rate would need to continue in non -drought years. Smith stated there were differing philosophies behind Options A, B and C. He stated Options A and B provided for maximum conservation of water, while Option C would eliminate excessive water use. Councilmember Weitkunat stated the community was more than willing to conserve water when necessary. Smith stated this was true. Councilmember Weitkunat asked why a flat rate could not be used in non -drought times. She stated paying for what was used was fair and that people did not complain about the flat rate. Smith stated the flat rate did not send a message to conserve. Councilmember Weitkunat asked if this meant that you could not have a flat rate if you wanted to force people to conserve. She stated people would conserve with education and watering restrictions. Smith stated it was possible to have a flat rate and have education and other promotions 510 • February 3, 2004 and that there would be some conservation. He stated the rate structure was another way to send the conservation message and that the tiered rate was a strong message to conserve. Councilmember Weitkunat stated Council's decision was on the philosophy. Williams stated conservation programs had been in effect for many years. She stated a conservation rate was put into effect in 2003 because of the drought. Councilmember Weitkunat asked if the programs were successful. Williams stated progress had been made. Councilmember Weitkunat asked if there was anything wrong with the flat rate. Smith stated the flat rate worked in non -drought times. He stated in non -drought times it served the purpose of collecting revenue in relation to the water used. Mayor Martinez asked if Mr. Hutchinson's figures on "water in the bank" were accurate. Smith stated the figures were accurate. Mayor Martinez asked why there was a need to conserve if there was that much "water in the bank." He asked where the water that could not be carried over was going. Smith stated the intent was to • have water to carryover from this year to next year. LJ Mayor Martinez asked how much could be carried over and how much would go down the river. Dennis Bode, Water Resources Manager, stated about 15,000 acre-feet was carried over from 2003 because CBT allowed a 30% carryover and because special arrangements with other entities (such as the North Poudre Irrigation Company) were allowed. He stated normally 7,000-8,000 acre-feet could be carried over and that this was the minimum carryover for planning purposes. He stated all of the run-off to which the City would be entitled could not be captured in good years and that water would go downstream. Mayor Martinez asked how much could be carried over from 2004. Bode stated would not be known until later in the season when the CBT set the carryover rules. He stated a minimum of 7,000-8,000 acre-feet would be expected to be carried over. Mayor Martinez stated Prof. Sanders stated in the study session that we were not in a drought and did not need to cut back to this extent. He asked if the City was in disagreement with Prof. Sanders' statement. Bode stated it was premature to say that we were out of the drought. He stated the 2004 supply was much better than the 2003 supply and that there was roughly 15,000 acre-feet "in the bank" compared with 5,000 acre-feet last year. 511 February 3, 2004 Mayor Martinez stated Prof. Sanders had indicated that there was about 45,000 acre-feet "in the bank." Bode stated there were 15,000 acre-feet of carryover, about 15,000 acre-feet allocated by NCWCD and a normal yield from the Poudre River even in a dry year of 10,000-12,000 acre-feet. Mayor Martinez asked what would happen to the 45,000 acre-feet if the City did not use it. Bode stated 7,000-8,000 acre-feet would be carved over to next year, and the excess could be rented out or a way might be found to carryover more than the minimum. Mayor Martinez asked if water could be rented out that this meant that the City had more than enough. Bode replied in the affirmative. Mayor Martinez asked how much water the City used each year. Bode stated there was treated water demand of about 30,000 acre-feet each year. He stated the City owned senior water rights. Mayor Martinez asked if the water supply would be adequate if the City returned to normal rates with education efforts to conserve. Bode replied in the affirmative. Councilmember Bertschy stated the tiered rate policy was based on long term water policy. He stated the determination of long term storage needs upon build -out of the City had been made. He stated if water could be conserved now it would cost less to develop water supplies. He stated the drought was short-term but that the longterm capacity needed was the issue. Smith stated at the time the tiered rate structure was adopted a majority of the Council felt that this was a structure that would stay in place permanently with adjustments made periodically to the tiers in accordance with drought/non-drought conditions. He stated there were conservation goals in the water supply demand management policy adopted by the Council. He stated there were different ways to meet the conservation goals and that the tiered rate structure would be one way to meet the conservation goals. Bode stated the idea with the water budget rate structure was that there would be some savings because of the impact on water wasters. He stated those savings could be enough to meet the conservation goals set out in the water supply demand management policy. He stated the water budget rate structure would be include a conservation rate and would encourage water conservation without being "punitive." Mayor Martinez stated there was a steady improvement in conservation even before the tiered rate structure was implemented. Bode stated was correct. Mayor Martinez asked how much more water would be captured when the Pleasant Valley pipeline was completed. Bode stated would add water supply. Mayor Martinez stated the increased capacity of Halligan Reservoir would increase water supply. Bode stated was correct. 512 0 February 3, 2004 Councilmember Roy asked what the State water law required for returning water to the downstream flow. Smith stated single -use water could be used only once before it must be returned to the stream. He stated multi -use water could be captured at the wastewater plant and reused. Councilmember Roy asked how much single -use water was returned downstream. Smith stated the majority was single -use. Councilmember Roy asked how much of the water "in the bank" would not be available if it did not rain or snow. Bode stated the water referenced as "in the bank" (about 30,000 acre-feet) was already in storage in the CBT system and Joe Wright Reservoir regardless of this year's conditions. Councilmember Roy stated the information presented showed 54.9% of all monthly bills in tier 1 and asked how many households this represented. Switzer stated households moved in and out of the tier during the year and that "bills" did not equal "households." He stated 54.9% of the bills were at 7,000 gallons or less and that the actual number varied by season. Councilmember Roy asked how many were in tier 1 and tier 5. Smith stated tier 1 included 172,637 bills and that tier 5 included about 9,000. is Smith Tharp stated conservation was one of the goals of the water management plan. Smith stated was correct. Councilmember Tharp asked if the reasons for that goal were the ability to deal with future growth and the needs of the City and to show that the City had a reasonable conservation program when applying for federal dollars for storage projects. Smith replied in the affirmative. Councilmember Tharp stated a more "nebulous" reason for conservation was the drought cycle and the need to learn to live with reasonable water use. She asked if all of these were good reasons for conservation. Smith replied in the affirmative. Councilmember Tharp stated the City was growing and that future water use needed to be anticipated. She stated educating people to conserve was a reasonable goal even though the water supply was adequate at this time. She stated the predictions were that this water basin was not doing as well as other parts of the State. She stated she was concerned and that it seemed to her that conservation efforts were necessary. She stated the third option sounded good originally but that cost figures that would raise the base for all users were a concern. She asked for a justification for shifting part of the cost to smaller users. Smith stated when the tiered rate was adopted the smaller users were given a "break." Councilmember Tharp asked if this meant that the tiers should have been more price neutral. Smith • stated it should have been price neutral for the smaller users rather than a decrease. Switzer stated 513 February 3, 2004 dropping the fixed charge helped the people at the bottom end of the rate because the fixed charge was a bigger portion of their bill. Councilmember Tharp stated the concept of tiered rates was good and asked if there was a possibility of looking at Option B and not instituting the top (fifth) tier. Smith stated was a possibility because there was minimal revenue recovered from the fifth tier. Councilmember Tharp stated people were paying an "outrageously high amount" in the fifth tier and that if that was dropped back to a more reasonable amount that a message would still be sent regarding excessive use. Switzer stated the plan became more revenue neutral as upper steps were dropped and as revenue was collected elsewhere. Smith stated the fifth tier could be dropped on a modified rate. Councilmember Tharp stated the penalty for using more than a certain amount of water may not have been "a smart idea." She stated if tier 5 could be dropped and the 2% of the cost could be spread out over other tiers that this could be a compromise between the current rates and water budgeting. Smith stated this was an option that could be brought back for Council consideration. Switzer stated there were an infinite number of options and that staff needed guidelines to reduce the number of options. Councilmember Kastein stated Councilmember Tharp's idea was a step in the right direction. He asked if tiered pricing had not been done and if the water supply was normal whether the flat rate would have been increased by 6%. Smith stated the flat rate and the variable rate would have gone up 6% per year. He stated under a flat rate structure the fixed charge would be $16.80 and the variable charge would be $1.66 per 1,000 gallons. Switzer stated this assumed that people would continue some conservation measures. Councilmember Kastein asked ifprice-based disincentives could be applied to a flat rate i.e. whether the flat rate could be increased by a certain percentage and everyone could be asked to conserve. Smith replied in the affirmative and stated the issue would be whether raising the flat rate would result in reduced water use. Councilmember Kastein stated the current calculation was based on 70% of the lot size and that over time under the water budget rate structure it could be determined how people would adjust their habits to stay within the budget. He asked if the 70%, which defined the allotment people would have, could be adjusted up or down to match supply. Smith stated the water budget included the possibility of adjustments to "send a message" during times of drought. Councilmember Roy asked what kind of money would be redistributed if the top tier were removed in Option B. Smith stated there was not a lot of revenue generated in the fifth tier. Switzer stated 514 • February 3, 2004 the amount would be in the tens of thousands of dollars. Smith stated a few pennies in the other tiers would make up the difference. Councilmember Hamrick asked why the price for the lower tier was dropped when the tiered rates were adopted and if this was because there was not a lot of "waste to go after" at that end of the spectrum. Smith stated there was discussion about that. Switzer stated the cost per gallon went up for everyone, including the lower tier, and that the fixed charge was reduced to offset that since the lower tiers were not summer time use. Councilmember Hamrick asked if the lower tier received a fixed rate discount because they actually consumed less from the system. Smith replied in the affirmative. Councilmember Hamrick asked how many people would exceed their budget with the 70% figure. Bode stated about 30% of the people in a study of 100 homes were using above a "reasonable amount of water." Councilmember Hamrick asked how that compared with the number of people in the higher tiers now. He questioned whether the water budget rates would push more people into a higher bracket. Switzer stated it was difficult to make comparisons because small volume users could be wasting • water. • Councilmember Hamrick asked if having a garden, water display or trees could mean going over budget. Bode stated the 26 inches applied to 70% of the lot would be enough to take care of trees, bushes or a garden in most cases. Councilmember Hamrick stated this appeared to be a generous budget. Smith stated the figure was based on 70% of total lot size and that the assumption was that this was ground that could be irrigated. Bode stated the amount of water use allowed would take care of most landscapes. Councilmember Hamrick asked what other assumptions were used besides planting to bluegrass. Bode stated the full 70% would not be needed if part of the area was gravel and that many people used below the 26 inches. Councilmember Hamrick asked what the incentive would be to reduce use if the water budget was generous. Bode stated the ongoing charge paid per gallon would be one incentive to reduce consumption and that there could be other incentives offered by the Utility. Switzer stated the assumption was that people were good citizens and that the budget water rate would mean a higher rate per gallon used. He stated the wastewater equation for all 12 months was based on winter quarter water use. 515 February 3, 2004 Councilmember Hamrick stated there would be no incentive to use less than the budget. Smith stated philosophy of the budget rate differed from the tiered rate philosophy. He stated the one was based on eliminating excessive use and the other was based on "heavy duty" conservation. Councilmember Roy made a motion, seconded by Councilmember Hamrick, to adopt Resolution 2004-018 directing the City Manager to develop a modified 5-tiered rate structure for residential water customers (Option B) with elimination of the fifth tier, folding the fifth tier into the other tiers and leaving the fixed charge the same. Councilmember Bertschy requested clarification regarding whether the intent of the motion was to eliminate the fifth tier and change the structure to four tiers. Councilmember Roy stated the intent was to keep the fixed charge the same at $12.72 and fold in the fifth tier. Councilmember Bertschy asked ifthe intent was that the next highest tiers would absorb most ofthat so that the bottom tier would remain the same. Councilmember Roy stated was his intent. Smith stated it was staff s understanding that the fixed charge would stay the same, tier 1 would stay the same and an effort was to be made to "fold in" any of the lost revenue into the other tiers starting with the top tier. Councilmember Bertschy asked if that would mean a couple of cents difference. Smith stated it would not be much. Mayor Martinez asked what the impact would be on tier 2 over a year. Switzer stated it would be a matter of pennies per month. He stated it was his understanding that tier 1 would remain unchanged. Councilmember Weitkunat stated she would not support the tiered rate because she did not believe that it was appropriate in non -drought times. She stated conservation should be done in other ways and that the residents of the City did a good job of conserving when asked to do so. She stated the City valued a "green city" and that City policies and philosophies had promoted yards, green medians and trees and that people who followed those policies were now being penalized. She stated people were now being told that the City should be like Phoenix. She stated this did not have to be the method to conserve. She noted that meters were placed in the City to allow more to be charged for higher water consumption. She stated the budget rate structure may have some flaws but that she would like to see it tried. She stated she favored a flat rate so that people would pay equally for water use. 516 • February 3, 2004 Councilmember Tharp stated she had received many a -mails regarding this matter and that the senders were on all sides of the issue. She stated she could not support the water budget rate structure because it would raise everyone's rates. She stated she supported the compromise of Option B without the fifth tier and continuing conservation and education efforts. She stated the issue would be revisited in the future if this compromise did not work. She stated she would be looking at water rates compared to other cities. She stated the continuous raising of the water rates was a concern. Councilmember Kastein stated the water budget rate structure or flat rate would be abetter approach. He stated in was unfortunate that the people in the lower 25th percentile were actually given a price break for water in 2003. He stated the increase under budgeting for the lowest tier would only be in comparison to last year. He stated he would like to seethe City try the water budget rate structure. He stated he did appreciate the move to more reasonable rates offered by Councilmember Tharp's option. He stated his intent was not to eliminate green lawns or penalize large water users. He stated his intent was to eliminate water waste and that there needed to be agreement on what constituted "waste." He stated he would not support the motion. Councilmember Hamrick stated there were differing definitions about "waste" and that from his perspective the issue was whether the City government or the market should define "waste." He • stated he preferred the latter. He stated the community was much smaller when the policy was green lawns and that water was a finite resource in an arid environment. He stated everyone needed to learn to conserve because an unlimited water supply would be costly or not possible. He stated a conservation ethic should be instilled in the community. Councilmember Kastein stated water bills should state how people were being charged. Councilmember Bertschy stated more could be done with regard to incentives to conserve water. He stated the long term needs of the community and costs for developing new water storage were important issues and that a strong conservation policy should be in place. Mayor Martinez asked about the credentials for Tom Brown, who served on the Water Board. Smith stated he was an economist for the U.S. Forest Service. Mayor Martinez read excerpts of a memo received from Mr. Brown which stated agriculture accounted for over 80% of water used in Larimer County and over 90% in Weld County. He stated Mr. Brown recommended going back to a fixed rate per gallon until a study of this complex issue was completed. He questioned why the Council was not listening to experts on the Water Board such as Mr. Brown and Prof. Sanders. He stated staff was also saying that there could be a return to base rates because of the "water in the bank." He questioned why people were being punished and why meters were being made into a "demon." He stated the motion was a move in the right direction 517 February 3, 2004 but that the issue had been made too complex when the real issue was whether we were still in a drought. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Roy and Tharp. Nays Councilmembers Kastein, Martinez and Weitkunat. THE MOTION CARRIED Mayor Martinez asked if Council wanted to consider a motion suspending the Resolution that required that the meeting end by 11:00 p.m. Councilmember Bertschy made a motion, seconded by Councilmember Roy, to suspend the Resolution requiring that the meeting end by 11:00 p.m. and to consider agenda item #35 and conclude the meeting at the conclusion of that item. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Roy, Tharp and Weitkunat. Nays: Mayor Martinez. THE MOTION CARRIED Ordinance No. 025, 2004 Amending Chapter 15, Article XV of the City Code Relating to Solid Waste Collection and Recycling Services, Postponed. The following is staffs memorandum on this item. EXECUTIVE SUMMARY Since it was adopted in 1996, the pay -as you -throw (PAYT) Code provisions governing theprovision of solid waste collection services have been implemented by trash haulers as a condition of their City license, with one amendment made in March 2000 to establish an audit system for the City's use. At a Council review in 2002, staff was requested to improve the effectiveness with which the PAYT Code provisions are applied. Clarification to the language in the Code is proposed to specifically state that all single family and two-family residences in Fort Collins are subject to unit -based (PAYT) trash rates, including those participating in group accounts for trash service. The proposed changes remove any ambiguity in the existing requirement, and do not introduce a new or different approach. Specifically, the proposed changes would: Require haulers to list unit -based prices for all levels ofservice (i. e., for one-, two-, three -can per week service) in written format when bidding services for consolidated accounts, and expressly require haulers to retain records ofany 518 • February 3, 2004 contracts they are awarded (to provide trash hauling services to group accounts), including prices, for three years as part of existing recordkeeping requirements. 2. Require haulers to publicize unit -based prices to individual residents who participate in group accounts and to allow residents to choose their level of service, and to be billed according to that service level price thereafter. This would prohibit haulers from providing a single level of service for all residents in a group, unless it can be documented that every resident selected that level of service. Staff estimates that up to 10, 000 residences (approximately 19% ofresidences in Fort Collins) are currently participating in group accounts and are not receiving unit -based trash rates. If PAYT is applied to these residences, staffestimates a savings of15, 000 cubicyards ofmunicipal solid waste that would otherwise be landfzlled. Staff also expects to see a 4-6% increase in recycling in these residences. BACKGROUND • In 1995, the City of Fort Collins adopted a PAYT trash requirement for trash haulers (Section 15- 412 of the Municipal Code). By requiring that haulers charge a variable rate for trash, the PAYT system provides economic incentives for single-family and two family residences to reduce their household waste and increase efforts to recycle. The City requires trash hauling companies to apply these variable rates as a condition of their license to provide residential trash services. The Natural Resource Department continues to work at the request ofthe City Council to ensure that the PAYTprogram is effective. One issue that has been brought to staffs attention is the difficulty of applying variable rates in situations where property management companies, homeowner associations (HOAs), neighborhood associations, or other intermediaries negotiate with trash haulers for group service and rates. The Ciry continues to endorse the practice ofconsolidated trash collection accounts because oftheir positive environmental benefits (less damage to roads, traffic, noise, and pollution). However, in some cases staff has found that individual customers in group accounts are not being given their choice oftrash service level with unit -based rates. For example, an HOA may negotiate a contract whereby all homes receive the same 90-gallon containerper week and are billed the same base rate, and the option ofchoosing a lower service level (e.g., 30-gallon or 60-gallon) is not available. This situation negates the economic incentive of the PAYT system and reduces its effectiveness. Staff considered several options including the proposed amendments to the PAYT requirement: • 519 February 3, 2004 F No action: This option was ruled out as staff believes the effectiveness of PAYT can be improved, as directed by City Council. G. Execute enforcement action based on existing Code requirements: Staffbelieves that the existing Codeprovisions require that individual volume -based service be made available to all single family residences, including those receiving service through a group account. However, enforcement practices to date have not forced this issue, and there were indications that one or more of the city's licensed trash haulers considered the Code provisions to be unclear in this regard. As a result, staff chose to seek clarification of the language prior to stepping up enforcement on these issues. H. Clarifv existine ordinance to remove anv ambieuity about its applicability to Qrou accounts: Staff feels this is the best option, as it merely clarifies existing language without affecting the overall intent of the Council in adopting the PAYT requirements while putting the trash haulers on clear and specific notice of the way the requirements apply to group accounts. Consider other options besides PAYT to reach Council's adopted goals for recvcline levels and waste diversion: Staffs opinion is that the next best option for reaching the City's recycling and solid waste diversion goals would besome,form ofdistricting. Given that in 1998, the City Council chose a different course of action —specifically, to direct staff to find other ways besides districting to reach the City's goals—stafffelt that this was an option of last resort. If the City Council decides not to amend the PAYT Code provisions, staff would recommend revisiting the issue of districting. Staff conducted extensive public outreach efforts while working on the proposed amendments: • 712112003 -Letter sent to all licensed trash haulers informing them of scope of ordinance amendments and inviting theirfeedback at a meeting on 81512003. • 81512003 -Meeting with licensed trash haulers (RAM Waste, Inc., and Waste Management, Inc. attended). • 811212003 - Meeting with Gallegos Sanitation, Inc. (special meeting scheduled as they did not attend the 81512003 meeting). 520 • February 3, 2004 911912003 - PAYT Public Open House at the Lincoln Center. - "Let's Talk Trash" 3 col. X 4 in. advertisement ran in Colorodoan 911512003 and 911712003 - Invitation letters were mailed to all licensed trash haulers, individuals who had expressed interest in the issue, and a list of property management companies and homeowner's associations (HOAs) received from the City's Neighborhood Resources office. • 101112003 -Reviewed PAYT options with the Natural Resources Advisory Board. • 1011312003 -Completed telephone calls to all property management companies listed in the Fort Collins yellow pages to solicit their input on the issue. • 1011412003 - "PAYT Update" letters were mailed to all property management companies, trash haulers, and individuals that expressed interest in the issue (including some HOAs). • 1011412003-MetinpersonwithrepresentativesfromFaithPropertyManagementtoreceive their input. • • 111512003 —Reviewed current staff recommendation with the Natural Resources Advisory Board. Received unanimous support for the proposal from the Board. • Further background information and discussion will be included in staffs presentation to City Council. Council consideration of this item was postponed from December at the request of interested trash haulers. " City Manager Fischbach introduced the agenda item. Susie Gordon, Natural Resources Program Manager, presented background information regarding the agenda item. She stated minor amendments were proposed to the pay -as -you -throw (PAYT) trash ordinance to reinforce that PAYT rates must be applied for all residential trash service, including consolidated groups such as homeowners' associations. She spoke regarding the benefits of the PAYT program and waste diversion and outlined the staff recommendations regarding the amendments to the PAYT ordinance. Mayor Martinez stated each audience participant would have three minutes to speak. 521 February 3, 2004 Ray Meyer, Ram Waste employee, stated tiered rates were offered to management companies and homeowners' associations and that the management company or HOA would choose the service. He stated subcontractors such as Ram Waste could not control the level of service chosen by management companies or HOAs for their members. He stated one solution would be for the City to educate the management companies and HOAs regarding the options. He asked the Council to vote against the amendments. Matt Gallegos, Gallegos Sanitation, stated his company had pioneered recycling in Fort Collins. He stated the company offered curbside recycling, yard waste collection, construction waste diversion, and supported PAYT. He stated jobs with the company were threatened by the proposed amendments. He stated the changes would publicize the company's records and expose confidential business information such as rates, delivery routes, accounts and contracts. He stated this could result in the complete loss of a substantial part of business. He stated the changes made in 1996 and 2000 to this same section of the City Code cost this hauler in the range of hundreds of thousands of dollars in equipment, education, training and additional accounting requirements. He stated the customers chose the services they wanted. Bruce Philbrick, Fort Collins resident and City of Loveland solid waste management program employee, spoke in support of the PAYT program and the proposed changes to the City Code. He stated the PAYT worked only when it was applied equally to all households and when each household received the trash bill, when it was offered at three different service levels, and when the prices for the service levels were included. He stated there was a connection between the amount of waste generated and the amount paid. He stated PAYT was not being applied equally in Fort Collins with the HOAs. He suggested looking at a pre -paid stamp for extra trash placed at the curb. Linda Stanley, 2040 Bennington Circle, asked the Council to vote to close the loopholes on PAYT. She stated landfill space was a scarce resource and that people should be charged for the amount of landfill space that they used. She stated the market rate should be applied equally. Mark Glorius, Gallegos Sanitation, stated PAYT was a good program and that the issue was the record keeping part of the proposed amendments. He stated there should be no need to provide contracts, prices, proposals or any other paperwork to the City. He stated the addition of language that the records were to be kept on -site or at the place of business would make the change more agreeable. He stated the existing language could put some of the local companies out of business. He asked that the language be clarified so that records would be protected. Rob Pederson, HOA resident, spoke in support of the changes. He stated he was offered one level of service by the HOA (weekly) and that no other choice was available. He stated he would support the amendments so that he could pay for the service he actually used. 522 0 February 3, 2004 Lyn Piing, 1136 East Stuart, spoke in opposition to the amendments. She stated the amendments showed an apparent lack of concern for local businesses and existing local jobs. She stated requiring the local haulers to turn their records over to the City would put them out of business by the national haulers. John Puma, President of Ram Waste, stated the proposed changes requiring the companies to provide their contracts and pricing information were not acceptable. He stated this requirement would cause loss of jobs. He stated the local haulers patronized the landfill and the recycling center and that the national haulers had their own landfills. Randy Fischer, 3007 Moore Lane, stated the proposed changes were not that onerous. He stated the haulers were already required to provide information to the City to provide evidence that they were complying with the rules. He stated the amendments made the requirement more explicit. He stated he doubted that anyone would go out of business if the changes were made. He stated there could not be an effective PAYT ordinance if only part of the City complied and that a significant part of the community was not in compliance with PAYT. He stated the only mechanism that could be used to ensure compliance by the HOAs was through the hauler licensing requirements. He urged adoption of the proposed amendments. • Traci Branham, Gallegos Sanitation, stated the management companies and HOAs made the choice regarding the service level for the homeowners. She stated the trash haulers did not make this choice and that they were following the PAYT rules. She stated the haulers' records were private and that they should only be seen at their offices. • Wendy Stedinski, homeowners' association member, spoke in support of the amendments to the PAYT ordinance. She stated her HOA blatantly and openly ignored the PAYT ordinance and forced the highest level of service on all 320 homeowners regardless of the amount of trash being generated. She stated the trash haulers were complying with the PAYT ordinance and that her HOA's response to an offer of different levels of service was that the default level of service for each of the 320 homes would be 95 gallon cart service. She stated homeowners would be allowed to contact the hauler for a different level of service, that the HOA would continue to be billed for the 95-gallon service level, and that the hauler would be expected to work out some kind of refund. Mayor Martinez asked if the City's practice would change regarding asking for copies of records and the conditions for City inspection of records. Gordon stated the haulers were required since 1996 to fill out a report every six months to provide the City with information about the volumes of trash and recyclables collected, amount of participation, and rate structure. She stated since 1999 the haulers were required to keep certain records on their premises. She stated it would beat the City's discretion to have an auditor inspect the records to determine that unit based pricing was being charged. 523 February 3, 2004 Mayor Martinez asked if the auditors would go to the hauler's place of business. Gordon replied in the affirmative and stated the City required only the submission of a report every six months. Mayor Martinez asked if the City could ask haulers to submit their records to the City. Came Daggett, Assistant City Attorney, stated the Code provisions were modeled on the sales tax provisions. She stated the City Manager could conduct an investigation of a hauler and during the course of that investigation to potentially request records. She stated the City could conduct an audit and that audits had been conducted in the past in the same manner as sales tax audits at the hauler's location. She stated records could be requested only in the event of an investigation and that would not be a routine event. Mayor Martinez asked if the Code provided criteria for an investigation. Daggett stated an investigation would be conducted as part of the hearing process for suspension or revocation of a license. She stated there were specific provisions to protect confidential records. Mayor Martinez asked if the City Manager could call for an investigation without any criteria. Gordon stated staff responded to problems on a complaint basis. Mayor Martinez asked if the City Manager would have the authority to call for an investigation on a "whim." City Attorney Roy stated the City Code provided that an investigation could be conducted by the City Manager for the purpose of ascertaining the correctness of any reports, plans, etc. or for the purpose of determining compliance with any requirements of the Article. He stated there was no probable cause standard specified. He stated language could be added on Second Reading to limit the discretion and explain that the purpose of the investigation was to determine compliance and that the investigation would need to be based upon some reasonable suspicion arising from the initial inspection of the records. Mayor Martinez stated the businesses appeared to have a concern that their records could be exposed to competitors and that this could put them out of business. City Attorney Roy stated the current Code provided that the confidential customer records or financial or proprietary information that the haulers were required to maintain or that came into the possession of the City due to some audit or investigation shall be maintained as confidential by the City unless otherwise required by court order or as agreed by the relevant party -in -interest. He stated this made it explicit that such records were not available to inspection by competitors or open to the public unless there was a court order. Mayor Martinez asked if the City could collect copies of these records. City Attorney Roy stated the City could collect records in an investigation and that they were otherwise kept at the place of business and made available for inspection as required. Mayor Martinez stated a memo from Ms. Gordon indicated that the haulers would be required to provide a list of the rate schedules that were in use and that "absolute secrecy" of rates charged to 524 • February 3, 2004 group accounts was not possible if customers in group accounts were to be able to choose the desired service. Daggett stated the Code currently required that all haulers provide information to the City if they were not using prepaid bags or labels to explain how they were complying with the volume based rates. She stated one mechanism for doing that would be for the haulers to submit their rate schedules. She stated they would not have to identify the customers or how many customers they were using the rate schedules for. She stated this would give the City enough information to determine if the rate schedules complied with the volume based requirements. Mayor Martinez stated the issue was that competitors might have access to the rate schedules and run them out of business. Daggett stated the rate information was already in the public domain if it was given to customers to allow them to make a choice. She stated it was difficult to keep that type of information confidential because it had already been given to hundreds of people. Mayor Martinez asked if the City could just look at the rate schedule instead of requiring that it be submitted to the City. Daggett stated it was more practical to have the haulers submit the basic information than for the City to request the information. She stated the haulers had to submit on an annual basis information that demonstrated that they were meeting the requirements before their licenses could be renewed. • (*"Secretary's Note: The Council took a brief recess at this point.) • Councilmember Bertschy stated the certain types of records would have to be maintained by the hauler (contracts for service, etc.) and asked if it would be possible to add language that would state that all information was considered to be proprietary and confidential. City Attorney Roy asked if the question was whether the records could be protected if such language was added. Councilmember Bertschy replied in the affirmative. City Attorney Roy stated if there was a request for inspection of the records that the outcome would depend upon whether a court agreed that the information was proprietary. Mayor Martinez asked if such language could be included. City Attorney Roy replied in the affirmative. Councilmember Tharp asked if contracts and negotiations were often considered by the courts to be proprietary. City Attorney Roy stated the tests used by the court to decide was whether the release of the information would make it too difficult for the City to obtain similar information in the future or whether release of the information would put the company at a significant competitive disadvantage. He stated would be determined on a case -by -case basis. He stated the City could assert confidentiality and argue that the information should not be released. 525 February 3, 2004 Councilmember Tharp asked if the company with the proprietary information could argue its case. City Attorney Roy stated would be possible if permitted by the judge. Councilmember Weitkunat stated this appeared to blame trash haulers for what the HOAs were doing. She stated this was not a trash hauler problem and that there was not enough information on the table to make the adjustments at this meeting. She stated this was not the answer to the actual problem of HOAs and management companies not complying with PAYT. She stated penalizing the trash haulers and requiring access to their records was an inappropriate consequence of the amendments. She stated the problem was getting the HOAs and property management companies to follow the PAYT rules presented to them by the trash haulers. She stated the problem was not solved by making the Code enforcement harder and punishing the trash haulers. She stated this issue needed to be looked at again. Councilmember Roy stated the amendments could be successful if the haulers' concerns regarding the records could be addressed. He stated tightening up the PAYT ordinance moved the City closer to a better solution. He stated he would support looking in some way at the HOAs flaunting of the rules. He stated the missing piece was willing participation by the HOAs and asked how the City could address that issue. Greg Byrne, CPES Director, stated it would be difficult to address the issue. He stated the City licensed the hauler and not the HOA and that it was therefore the hauler that must comply with the law. He stated it was the hauler's responsibility to offer a contract to the HOA that would be in compliance with the law. He stated there was no mechanism in place to deal with the HOAs on this issue and that a new mechanism would need to be created. Councilmember Hamrick asked how the trash hauler would deal with a HOA that did not want to comply. Byrne stated the hauler must offer the HOA a range of rates that complied with the PAYT structure. He stated each of the homeowners in the HOA would be offered an opportunity to choose from those rates. Mayor Martinez asked the haulers if they offered rate structures like that to the HOAs. An unidentified member of the audience stated the haulers did offer such rates and usually offered multiple rate structures and options. Mayor Martinez asked if the haulers would be in violation of the law if they make such an offer. Gordon replied in the negative. Mayor Martinez asked how the hauler should respond if there was a complaint since the hauler had no enforcement power. Daggett stated the haulers had the option to provide information directly to the homeowners. She stated there might be other ways for the hauler to confirm that the HOA was providing the information to the homeowners. She stated the amendments were designed to place the hauler in the position of making sure that the information was going to the homeowners. 526 • February 3, 2004 Mayor Martinez asked if the City could require by ordinance that the HOAs offer to the homeowners the tier structure offered by the haulers and penalize the HOA if that was not done. Daggett stated the burden on the haulers to ensure that notice was provided to the homeowners was not necessarily huge given the current requirement in the Code that a notice be sent to all customers informing them of recycling options. She stated it would be necessary to add a new Article to the Code to deal with the issue on the HOA level. She stated would add administrative burden to the City to identify the HOAs and track what they were doing. Mayor Martinez stated it should not be the responsibility of the haulers to enforce the law for the City. Daggett stated the concept was that the City regulated the trash hauler's service and that this should be one aspect of their service. Mayor Martinez stated staff was saying that it was the haulers' problem and that he believed that it was unfair to hold the haulers accountable for the actions of the HOAs. City Attorney Roy stated he would like the opportunity to discuss with staff the alternative mentioned by Ms. Daggett regarding a companion provision in the Code relating to HOAs. Councilmember Kastein stated trash haulers were required to give notice that there were recycling options and asked if that same notice could include the options regarding trash. Daggett replied in • the affirmative. Councilmember Kastein stated the records should be kept confidential by the City and that the trash haulers were expressing concern about that. He stated the ordinance should be sent back to staff to make changes, which should be reviewed by the trash haulers. Mayor Martinez stated he would also like to see criteria regarding a City investigation. City Attorney Roy asked if investigations should be distinguished from audits. Mayor Martinez replied in the affirmative. Councilmember Tharp stated the changes were more significant than could be done prior to Second Reading. Councilmember Tharp made a motion, seconded by Councilmember Weitkunat, to postpone consideration of Ordinance No. 025, 2004 until staff could come back with amendments to the ordinance dealing with HOA compliance and adding the other provisions requested by the Council. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED 0 527 February 3, 2004 Other Business Councilmember Tharp stated the human relations staff was being asked to do a lot more work in relation to the human rights ordinance and that the staff had been cut in the past year. She suggested taking money from existing one-time monies for a one-time contract to provide adequate staff to respond to the challenge of dealing with the human rights ordinance. She requested Council support to direct the City Manager to fill that spot with one-time money. Councilmember Roy stated he would support that suggestion. City Manager Fischbach asked if Councilmember Tharp was referring to the intem position that was not budgeted. Councilmember Tharp stated she was referring to the vacant position that was not filled. Mayor Martinez asked that the City Manager evaluate whether it would be less expensive to hire someone temporarily rather than full-time. City Manager Fischbach stated he would do that. Adiournment The meeting adjourned at 12:40 a.m. A4 May r ATTEST: 528