Loading...
HomeMy WebLinkAboutMINUTES-11/06/2001-RegularNovember 6, 2001 • 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, November 6, 2001, 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, Tharp, Wanner and Weitkunat. Staff Members Present: Fischbach, Krajicek, Roy. Citizen Participation Linda Stanley, 2040 Bennington Circle, presented objections to the I-25 Corridor Plan and asked Council to reject the Plan when it is presented for Council consideration. Paulette Haley, elementary schoolteacher, representing her mother Margaret Fisch, 2814 South Taft Hill Road, stated that her mother's house would be demolished in the Taft Hill improvement plan. She stated that the City's appraisal for the property was $129,000 and that the appraisal has been • increased to $150,000 through negotiation. She stated that the property owner has been asked to pay $2,600 for an appraisal. She stated that their appraisal was for $165,500 and that the City has stopped negotiations. She stated that they would like the utilities moved approximately 150 feet from the old house to the new house, the irrigation ditch issues resolved, to keep their address, and to have attorney's fees paid. She asked for Council's help regarding the issue and asked that her another be compensated properly for her property. Ramon Ajero, 3712 Soderburg Drive, expressed concerns regarding whether the proposed deletions from the I-25 Corridor Plan would result in a substantive change in the City's implementation of the Plan. He stated that he had concerns that these changes would replace explicit language with "read between the lines" language that would not provide clarification regarding policy. He raised questions regarding the impact of the Plan on affordable housing, vehicle miles traveled, and costs. Mike Doten, Director of Citizen Planners, spoke regarding the I-25 Corridor Plan and expressed concerns that the Plan does not address affordable housing, that there was limited work done regarding air quality analysis, that additional infrastructure will be added and that there would be funding problems, that parallel roads will cause sprawl, and that the Plan may cause economic decline in the core area. Bill Miller, Skydive Avenue resident, spoke in opposition to adoption of the I-25 Corridor Plan and stated that it would be a public subsidy to speculators who have invested in land along the corridor, that land use planning should be done before transportation infrastructure is planned, that the 0 187 revenue sharing provisions of the Plan would require Fort Collins to pay a portion of infrastructure costs generated by other communities that ignore the standards encouraged by Fort Collins, that approval of the Plan will make it difficult for future Councils to deny future funding requests, that the Plan will place enormous demand upon municipal finances at a time of economic uncertainty, and that the Plan will encourage growth. Karen Wagner, County resident and downtown property owner, expressed opposition to the I-25 Corridor Plan and expressed concerns that the proposed deletions from the Plan do not address citizen concerns about the Plan and do not really change the intent of the Plan. She suggested changes that would truly address citizen concerns. She expressed concerns regarding the impact of the economic downturn on the I-25 corridor and asked Council to adopt a vision rather than a road plan. Citizen Participation Follow-up Councilmember Tharp thanked the citizens who spoke during citizen participation Councilmember Bertschy thanked those who spoke and requested a two -page memo regarding the concerns expressed by Ms. Haley. Mayor Martinez asked if the I-25 Corridor Plan addresses affordable housing and if the City is in violation of federal air quality standards. City Manager Fischbach stated that staff will look at incorporating affordable housing into the Plan and that the City is not in violation of federal air quality standards at this time. He stated that modeling work has been done to suggest that the City will be in violation of air quality standards in the future. Mayor Martinez asked for information regarding whether not adopting a plan would contribute to poor air quality. City Manager Fischbach stated that work has been done that shows that this would be the cases. Councilmember Kastein asked if the questions and answers that have been prepared for Council by staff regarding the I-25 Corridor Plan are available to the public. City Manager Fischbach stated that this information is available to the public. Councilmember Kastein noted that answers to many of the questions that have been asked regarding the I-25 Corridor Plan are available on the City's website. Councilmember Kastein requested more information regarding the issues posed by Ms. Haley. Aeenda Review City Manager Fischbach stated that the agenda would stand as published. 188 November 6, 2001 Mayor Martinez noted that there are several Consent Calendar sections on the agenda and that items pulled from each Consent Calendar would be considered immediately rather than at the end of the meeting. Councilmember Hamrick pulled item # 17 First Reading of Ordinance No. 164, 2001, Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands for a Natural Area Along Spring Creek on a Portion of Lot 1 of Shadowbrook P. U. D. from the Consent Calendar. CONSENT CALENDAR 7. Second Reading of Ordinance No. 148, 2001, Amending Chanter 7 of the City Code Relating to Election Campaigns. This Ordinance, which was unanimously adopted on First Reading on October 16, 2001, amends Article V of Chapter 7 of the City Code relating to campaign practices in local elections. The majority of the changes proposed are intended to provide clarification of existing provisions. 8. Second Readin@ of Ordinance No. 154, 2001, Amending Chapter 20 Article II of the City Code Regarding Noise. • As part of an effort to improve noise enforcement, the City Manager initiated review of the City's noise control ordinance (codified in Chapter 20, Article II of the City Code), which was originally implemented in 1981. A staff team reviewed the ordinance and proposed modest amendments to bring it up-to-date. The Council Health and Safety Committee reviewed the proposed amendments and made some changes. Ordinance No. 154, 2001, was unanimously adopted on First Reading on October 16, 2001. 9. Second Reading of Ordinance No 155, 2001 Appropriating Prior Year Reserves and Unanticipated Revenue in Various Funds and Authorizing the Transfer of Appropriated Amounts Between Funds. Ordinance No. 155, 2001, which was unanimously adopted on First Reading on October 16, 2001, appropriates prior year reserves and unanticipated revenue in various City funds, and authorizes the transfer of appropriated amounts between funds. The City Charter permits the City Council to provide by ordinance for payment of any expense from prior year reserves. The Charter also permits the City Council to appropriate unanticipated revenue received as a result of rate or fee increases or new revenue sources. 0 189 November 6, 2001 10. Second Reading of Ordinance No 156 2001 Authorizing the Purchasing Agent to Enter into an Agreement for the Financing by Lease -Purchase of Vehicles and Equipment. Ordinance No. 156, 2001, which was unanimously adopted on First Reading on October 16, 2001, authorizes the Purchasing Agent to enter into a lease -purchase financing agreement with Koch Financial Corporation at 4.533% interest rate. The agreement shall be for an original term from the execution date of the agreements to the end of the current fiscal year. The agreement shall provide for renewable one-year terms thereafter, to a total term of five (5) years, subject to annual appropriation of funds needed for lease payments. 11. Second Reading of Ordinance No 157 2001 Amending Sections 13-23 and 13-24 of the City Code Concerning the Enforcement and Conciliation of Human Rights Violations. The City's Human Rights Code (Chapter 13 of the City Code) previously limited conciliation efforts by the City Manager. The City Manager has delegated his role under the Human Rights Code to the City's Human Rights Resource and Education Office. Conciliation is only authorized after the City Manager makes a finding of probable cause and any conciliation effort must be completed within 90-days of the filing of the complaint by a citizen alleging discrimination. Ordinance No. 157, 2001, which was unanimously adopted on First Reading on October 16, 2001, allows conciliation to occur at an earlier point in the complaint process (upon the filing of a complaint instead of upon completion of the investigation and a finding of probable cause) and will remove the 90-day time limit on reaching a conciliation. 12. Second Reading of Ordinance No 158 2001 Amending Sections 23-82 and 23-83 of the City Code Pertaining to Encroachments. Ordinance No. 158, 2001, was unanimously adopted on First Reading on October 16, 2001. At the time of First Reading, Councilmember Hamrick asked whether the previously proposed waiver of an encroachment permit fee for news racks should apply to all kinds of publications which might be offered on the news racks, regardless of whether they contain traditional speech, such as the Coloradoan or the Denver Post, or more commercial speech, such as the Thrifty Nickel. The proposed fee waiver has been eliminated. Ordinance No. 158, 2001, has been amended between First and Second Reading to set the fee for news racks and other constitutionally protected speech at the nominal amount of $10 so as to avoid any prior constraint concerns. 13. Second Reading of Ordinance No 160 2001 Approving the Terms of the Sublease by the City of a Portion of Rivendell School Property for a Community Recycling Drop-off Facili . 190 November 6, 2001 • The City Manager has executed a sublease agreement by which the City will sublease from the executive board of Rivendell School a portion of the school's paved surface area as the location for a community recycling collection facility ("drop-off site"), for an initial period through the end of the current calendar year with up to 10 one-year renewals. This Ordinance which was unanimously adopted on First Reading on October 16, 2001, allows the City to submit the Agreement to the County in order to remove a one -acre portion of the Rivendell School site from the property tax rolls. 14. Second Reading of Ordinance No. 161, 2001 Repealing Ordinance No 2 2001 and Designating the Deines Barn and Twin Silos as a Landmark Pursuant to Chanter 14 of the City Code. This is a housekeeping item. The Deines Barn and Twin Silos were originally designated as a Landmark by Ordinance No. 2, 2001. When staff was preparing the final documents for recordation, it was discovered that there was an invalid signature on the application. The question of ownership of the Deines Barn and Twin Silos has since been resolved. The legal owner, the Shenandoah Owners' Association, has expressed its desire that the structures be designated. Staff, in consultation with the City Attorney's Office, . determined that the best course of action would be to repeal the original ordinance adopted by Council, and treat the owner's request as a new designation action. Ordinance No. 161, 2001, was unanimously adopted on First Reading on October 16, 2001. 15. Items Relating to the Law Enforcement Assistance Fund (LEAF ) Contract with the Colorado Department of Transportation Providing Funds for the Fort Collins Police Services Drunk Driving Enforcement Program. A. Resolution 2001-136 Approving and Authorizing the Mayor to Execute the Drunk Driving Enforcement Grant Contract #L-31-02 Between the City and the Colorado Department of Transportation. B. First Reading of Ordinance No. 162, 2001, Appropriating Unanticipated Revenue in the General Fund for Police Services Drunk Driving Enforcement Program. The Colorado Department of Transportation has awarded Fort Collins Police Services a 2002 Law Enforcement Assistance Fund (L.E.A.F.) grant in the amount of $35,000 to help reduce the number of drunk drivers in Fort Collins. This grant will provide overtime compensation for Fort Collins Police Officers who are involved in operations, which focus on the detection and arrest of drunk drivers. 0 191 November 6, 2001 16. First Reading of Ordinance No 163 2001 Authorizing an Option to Lease, and a Subsequent Lease of City -Owned Property at City Park North Ballfield to Cricket Colorado Property Company, for the Location of Antenna Equipment and Related Facilities Along With Associated Easements. Cricket Colorado Property Company, a division of Cricket Communication ("Cricket") contacted the Parks Division to discuss the possible lease of land for an antenna and related equipment to enhance its cellular phone service. The property to be leased and a related utility easement are located in City Park, north of the ballfields. Council has approved similar leases for Sprint and Voice Stream in the same area. Through a series of negotiations, staff has developed a proposed Site Lease with Option that meet the needs of the City and Cricket. 17. First Reading of Ordinance No 164 2001 Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands for a Natural Area Along Spring Creek on a Portion of Lot 1 of Shadowbrook P.U.D. Over the past several years the Brookhaven Homeowner's Association has approached the City inquiring whether the City was interested in purchasing land along Spring Creek as the creek moves through its Planned Unit Development. In June of this year, the Association presented a formal proposal to sell 2.484 acres of land along Spring Creek to the Natural Resources Department for $10,000 dollars. Staff has reviewed and approves the proposal. However, due to the restrictive nature of the Association's Condominium Declaration for the conveyance of property, the Association's Board of Directors has requested the City acquire the property through Eminent Domain. Without eminent domain, all Brookhaven Homeowners (approximately 50 homeowners) in the Association and any lending institutions holding deeds of trust on each condominium would need to execute the conveyance document pursuant to the Bylaws of the Association. Staff recommends adoption of this Ordinance on First Reading to authorize the use of eminent domain proceedings to acquire the property. 18. Resolution 2001 137 Finding Substantial Compliance and Initiating Annexation Proceedings for the Paradigm Annexation. The applicant, Hattman Associates, on behalf of the property owner, Paradigm Properties, LLC, has submitted a written petition requesting annexation of 16.29 acres located south of East Prospect Road, west of McLaughlin Lane, and east of Interstate 25. The property is largely undeveloped except for the Fort Collins Motorsport retail operation (motorcycles, ATV's, snowmobiles, and ski-doos) at the southwest corner of 192 November 6, 2001 the site. The requested zoning for this annexation is C — Commercial. The surrounding properties are zoned C - Commercial in Larimer County to the south and east and C — Commercial in the City to the west and the north. 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. 19. Resolution 2001-138 Establishing a Two -Person Transportation Funding Committee to Formulate Recommendations Regarding the Funding of the City's Long -Term Transportation Needs. The City's 10-year capital needs related to transportation are extensive. Unfunded transportation capital needs amount to over $415 million for this 10-year period. At present, there is no identifiable, stable funding source to ensure that the transportation capital needs will be constructed. Because transportation is such an integral element to the health and vitality of the community, City Council wants to: • I. review the long-term transportation capital needs of the City II. develop a funding strategy related to the long-term transportation capital needs III. determine if any transportation capital projects should be placed on the ballot for consideration by City voters at the November 2002 election. To facilitate this work, this resolution will establish a two -member Council committee to work with the City Manager in preparing recommendations related to the City's transportation capital needs and will appoint Mayor Pro Tern Bill Bertschy and Councilmember Kurt Kastein to the Committee. 20. Routine Easement. A. Easement for construction and maintenance of public utilities, from David Larkins, to underground electric services, located at 321 North Meldrum. Monetary consideration: $10. Staff: Patti Teraoka. Ordinances on Second Reading were read by title by City Clerk Krajicek. 7. Second Reading of Ordinance No. 148, 2001, Amending Chapter 7 of the City Code Relating to Election Campaigns. • 193 November 6, 2001 91 9. Second Reading of Ordinance No 155 2001 Appropriating Prior Year Reserves and Unanticipated Revenue in Various Funds and Authorizing the Transfer of Appropriated Amounts Between Funds. 10. Second Readiniof Ordinance No 156 2001 Authorizing the Purchasing Agent to Enter into an Agreement for the Financing by Lease -Purchase of Vehicles and Equipment. 11. Second Reading of Ordinance No 157 2001 Amending Sections 13-23 and 13-24 of the City Code Concerning the Enforcement and Conciliation of Human Rights Violations. 12. Second Reading of Ordinance No 158 2001 Amending Sections 23-82 and 23-83 of the City Code Pertaining to Encroachments. 13. Second Reading of Ordinance No 160 2001 Approving the Terms of the Sublease by the City of a Portion of Rivendell School Property for a Community Recycling Drop-off Facility. 14. Second Reading of Ordinance No 161 2001 Repealing Ordinance No. 2 2001 and Designating the Deines Barn and Twin Silos as a Landmark Pursuant to Chapter 14 of the City Code. 30, Second Reading of Ordinance No 159 2001 Authorizing the Purchasing Agent to Enter into an Agreement with Outdoor Promotions Inc. to Provide Bus Shelters, Bus Benches, and Advertising for the City of Fort Collins Transit Service for 20 Years. Ordinances on First Reading were read by title by City Clerk Krajicek. 15. Items Relating to the Law Enforcement Assistance Fund (L.E.A.F.) Contract with the Colorado Department of Transportation Providing Funds for the Fort Collins Police Services Drunk Driving Enforcement Program. B. First Reading of Ordinance No. 162, 2001, Appropriating Unanticipated Revenue in the General Fund for Police Services Drunk Driving Enforcement Program. 16. First Reading of Ordinance No 163 2001 Authorizing an Option to Lease and a Subsequent Lease of City -Owned Property at City Park North Ballfield to Cricket Colorado Property Company for the Location of Antenna Equipment and Related Facilities Along With Associated Easements. 194 November 6, 2001 • 17. First Reading of Ordinance No. 164, 2001 Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands for a Natural Area Along Spring Creek on a Portion of Lot 1 of Shadowbrook P.U.D. 25. Items Relating_ to the Cathy Fromme Natural Area First and Second Annexations and Zonings. A. Cathy Fromme Natural Area First Annexation and Zoning Resolution and Ordinances: 2. Hearing and First Reading of Ordinance No. 177, 2001, Annexing Property Known as the Cathy Fromme Natural Area First Annexation to The City of Fort Collins. 3. Hearing and First Reading of Ordinance No. 178, 2001, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Cathy Fromme Natural Area First Annexation. B. Cathy Fromme Natural Area Second Annexation and Zoning Resolution and Ordinances: 2. Hearing and First Reading of Ordinance No. 179, 2001, Annexing Property Known as the Cathy Fromme Natural Area Second Annexation to The City of Fort Collins. 3. Hearing and First Reading of Ordinance No. 180, 2001, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Cathy Fromme Natural Area Second Annexation. 26. Items Relating to the Coyote Ridge Annexation. A. Coyote Ridge First Annexation and Zoning Resolution and Ordinances: 2. Hearing and First Reading of Ordinance No. 165, 2001, Annexing Property Known as the Coyote Ridge First Annexation to The City of Fort Collins. 0 195 November 6, 2001 3. Hearing and First Reading of Ordinance No. 166, 2001, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Coyote Ridge First Annexation. B. Coyote Ridge Second Annexation and Zoning Resolution and Ordinances: 2. Hearing and First Reading of Ordinance No. 167, 2001, Annexing Property Known as the Coyote Ridge Second Annexation to The City of Fort Collins. 3. Hearing and First Reading of Ordinance No. 168, 2001, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Coyote Ridge Second Annexation. C. Coyote Ridge Third Annexation and Zoning Resolution and Ordinances: 2. Hearing and First Reading of Ordinance No. 169, 2001, Annexing Property Known as the Coyote Ridge Third Annexation to The City of Fort Collins. 3. Hearing and First Reading of Ordinance No. 170, 2001, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Coyote Ridge Third Annexation. D. Coyote Ridge Fourth Annexation and Zoning Resolution and Ordinances: 2. Hearing and First Reading of Ordinance No. 171, 2001, Annexing Property Known as the Coyote Ridge Fourth Annexation to The City of Fort Collins. 3. Hearing and First Reading of Ordinance No. 172, 2001, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Coyote Ridge Fourth Annexation. E. Coyote Ridge Fifth Annexation and Zoning Resolution and Ordinances: 2. Hearing and First Reading of Ordinance No. 173, 2001, Annexing Property Known as the Coyote Ridge Fifth Annexation to The City of Fort Collins. 196 November 6, 2001 • 3. Hearing and First Reading of Ordinance No. 174, 2001, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Coyote Ridge Fifth Annexation. F. Coyote Ridge Sixth Annexation and Zoning Resolution and Ordinances: 2. Hearing and First Reading of Ordinance No. 175, 2001, Annexing Property Known as the Coyote Ridge Sixth Annexation to The City of Fort Collins. 3. Hearing and First Reading of Ordinance No. 176, 2001, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Coyote Ridge Sixth Annexation. 27. Items Relating to the Fossil Creek Wetlands Natural Area Second Annexation and Zoning. B. Hearing and First Reading of Ordinance No. 181, 2001, Annexing Property Known as the Fossil Creek Wetlands Natural Area Second Annexation to The City of Fort Collins. • C. Hearing and First Reading of Ordinance No. 182, 2001, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Fossil Creek Wetlands Natural Area Second Annexation. 28. Items Relating to the Pineridge Fifth Annexation and Zoning, B. Hearing and First Reading of Ordinance No. 183, 2001, Annexing Property Known as the Pineridge Fifth Annexation to The City of Fort Collins. C. Hearing and First Reading of Ordinance No. 184, 2001, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Pineridge Fifth Annexation. 29. Items Relating to the Westchase I and II Annexation and Zoning. A. Items Relating to the Westchase I Annexation. 2. Hearing and First Reading of Ordinance No. 185, 2001, Annexing Property Known as the Westchase I Annexation to the City of Fort Collins. 0 197 November 6, 2001 3. Hearing and First Reading of Ordinance No. 186, 2001, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Westchase I Annexation. B. Items Relating to the Westchase II Annexation. 2. Hearing and First Reading of Ordinance No. 187, 2001, Annexing Property Known as the Westchase II Annexation to the City of Fort Collins. 3. Hearing and First Reading of Ordinance No. 188, 2001, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Westchase II Annexation. 32. Items Relating to the Johnson Property Rezoning and Structure Plan Amendment. B. Hearing and First Reading of Ordinance No. 190, 2001, Amending the Zoning Map of the City of Fort Collins by Changing the Zoning Classification for That Certain Property Known as the Johnson Property Rezoning. 33. First Reading_of Ordinance No 191 2001 Amending the Code of the City of Fort Collins to Adjust the Capital Improvement Expansion Neighborhood Parkland and Street Oversizing_Fees for Increases Due to Increases in the Cost of Construction and Raw Water. 34. Items Relating to Utility Rates for 2002. A. First Reading of Ordinance No. 192, 2001, Amending Chapter 26, Article III, Division 4 Relating to User Rates and Charges for Water. B. First Reading of Ordinance No. 193, 2001, Amending Chapter 26, Article IV, Division 4 of the Code of the City Relating to Wastewater Fees and Charges. C. First Reading of Ordinance No. 194, 2001, Amending Chapter 26, Article VII, Division 2 of the Code of the City Relating to Stormwater Fees. 36. Items Relating to the 2002 Downtown Development Authority Budget. A. First Reading of Ordinance No. 195, 2001, Appropriating Operating Funds and Approving the Budget of the Downtown Development Authority for the Fiscal 198 November 6, 2001 • Year Beginning January 1, 2002, and Fixing the Mill Levy for the Downtown Development Authority for 2002. B. First Reading of Ordinance No. 196, 2001, Appropriating Revenue in the Downtown Development Authority Debt Service Fund for Payment of Debt Service for the Year 2002. 38. First Reading of Ordinance No. 197, 2001, Beine the Annual Appropriation Ordinance Relating to the Annual Appropriations for the Fiscal Year 2002 and Adopting the Budget for the Fiscal Years Beginning January 1. 2002, and Ending December 31, 2003 and Fixing the Mill Levy for Fiscal Year 2002. Councilmember Bertschy made a motion, seconded by Councilmember Hamrick, to adopt and approve all items not withdrawn from the Consent Calendar. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Tharp, Wanner and Weitkunat. Nays: None. THE MOTION CARRIED Ordinance No. 164, 2001 Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands for a Natural Area Along Spring Creek on a Portion of Lot 1 of Shadowbrook P.U.D., Adopted on First Reading. The following is staffs memorandum on this item. "Executive Summary Over the past several years the Brookhaven Homeowner's Association has approached the City inquiring whether the City was interested in purchasing land along Spring Creek as the creek moves through its Planned Unit Development. In June of this year, the Association presented a formal proposal to sell 2.484 acres of land along Spring Creek to the Natural Resources Department for $10, 000. Staff has reviewed and approves the proposal. However, due to the restrictive nature of the Associations' Condominium Declaration for the conveyance of property, the Associations' Board of Directors has requested the City acquire the property through eminent domain. Without eminent domain, all Brookhaven Homeowners (approximately 50 homeowners) in the Association and any lending institutions holding deeds of trust on each condominium would need to execute the conveyance document pursuant to the Bylaws of the Association. Staff recommends adoption of this Ordinance on First Reading to authorize the use of eminent domain proceedings to acquire the property. " 0 199 November 6, 2001 Councilmember Hamrick asked why the City is buying the land. Ron Mills, Right -of -Way Acquisition Agent, stated that Natural Resources feels that the property would be a good acquisition to expand the corridor along Spring Creek and the trail. Councilmember Hamrick asked if this is a natural area. Mills stated that it is in the floodplain and that a trail is already there. Councilmember Hamrick asked if this acquisition fits within an overall natural areas policy. Mills stated that the Natural Resources Department has reviewed the acquisition and wants to go ahead with the purchase. Councilmember Hamrick asked why this was not reviewed by the Natural Resources Advisory Board. Mills stated that the Natural Resources Department felt that because of the small consideration being paid, it was not necessary to take this item to the Board. Councilmember Bertschy asked if the consideration is below the appraised value. Mills stated this is the estimated value in the floodplain. Councilmember Kastein made a motion, seconded by Councilmember Weitkunat, to adopt Ordinance No. 164, 2001 on First Reading. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Tharp, Wanner and Weitkunat. Nays: None. THE MOTION CARRIED Consent Calendar Follow-uo Councilmember Kastein spoke regarding item #15 Items Relating to the Law Enforcement Assistance Fund (L.E.A.F.) Contract with the Colorado Department of Transportation Providing Funds for the Fort Collins Police Services Drunk Driving Enforcement Program and item #19 Resolution 2001-138 Establishing a Two -Person Transportation Funding Committee to Formulate Recommendations Regarding the Funding of the City's Long -Term Transportation Needs. Councilmember Bertschy spoke regarding item #13 Second Reading of Ordinance No. 160, 2001, Approving the Terms of the Sublease by the City of a Portion of Rivendell School Property for a Community Recycling Drop-off Facility. Councilmember Tharp spoke regarding item #18 Resolution 2001-137 Finding Substantial Compliance and Initiating Annexation Proceedings for the Paradigm Annexation. 0 November 6, 2001 Staff Reports City Manager Fischbach reported that the City has recently closed on the 500th home loan in the HOME program. Greg Byrne, CPES Director, stated that this is a milestone for this program and introduced HOME Program Manager Julie Smith. Councilmember Reports Councilmember Kastein reported regarding North Front Range Transportation and Air Quality Planning Council discussions regarding adoption of a resolution finding a positive air quality conformity determination for the 2025 Regional Transportation Plan, adoption of the transportation plan, approval of the addition of three projects into the transportation improvement program, adoption of a pension and deferred compensation plan for the MPO, a public input solicited regarding a vote on the regional transportation authority in 2003. Mayor Martinez reported regarding Health and Safety Committee discussions concerning the ordinance pertaining to enforcement issues relating to three unrelated persons residing in one dwelling, a proposed teen night ordinance, and a proposed ordinance regarding electric assisted bicycles. • Councilmember Bertschy reported on the CSU Liaison Committee discussions regarding emergency response to an anthrax hoax perpetrated at one of the federal installations near campus. Councilmember Bertschy thanked the HOME program staff and spoke regarding the intent and benefits of the program for first time homebuyers. Mayor Martinez assured the public that the City is in safe hands regarding emergency response. ANNEXATIONS AND ZONINGS CONSENT CALENDAR 25. Items Relating to the Cathy Fromme Natural Area First and Second Annexations and Zonings. A. Cathy Fromme Natural Area First Annexation and Zoning Resolution and Ordinances: 1. Resolution 2001-145 Setting Forth Findings of Fact and Determinations Regarding the Cathy Fromme Natural Area First Annexation. 0 201 November 6, 2001 2. Hearing and First Reading of Ordinance No. 177, 2001, Annexing Property Known as the Cathy Fromme Natural Area First Annexation to The City of Fort Collins. 3. Hearing and First Reading of Ordinance No. 178, 2001, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Cathy Fromme Natural Area First Annexation. B. Cathy Fromme Natural Area Second Annexation and Zoning Resolution and Ordinances: 1. Resolution 2001-146 Setting Forth Findings of Fact and Determinations Regarding the Cathy Fromme Natural Area Second Annexation. 2. Hearing and First Reading of Ordinance No. 179, 2001, Annexing Property Known as the Cathy Fromme Natural Area Second Annexation to The City of Fort Collins. 3. Hearing and First Reading of Ordinance No. 180, 2001, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Cathy Fromme Natural Area Second Annexation. This is a request for a 100% voluntary annexation. The acreage of the two annexation sites are as follows: Cathy Fromme Natural Area First Annexation is approximately 81 acres, and Cathy Fromme Natural Area Second Annexation is approximately 156 acres. The recommended zoning is Public Open Lands (POL), which is consistent with the Structure Plan designation of Rural/Open Lands and Stream Corridors. 26. Items Relating to the Coyote Ridge Annexation. A. Coyote Ridge First Annexation and Zoning Resolution and Ordinances: 1. Resolution 2001-139 Setting Forth Findings of Fact and Determinations Regarding the Coyote Ridge First Annexation. 2. Hearing and First Reading of Ordinance No. 165, 2001, Annexing Property Known as the Coyote Ridge First Annexation to The City of Fort Collins. 202 November 6, 2001 • 3. Hearing and First Reading of Ordinance No. 166, 2001, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Coyote Ridge First Annexation. B. Coyote Ridge Second Annexation and Zoning Resolution and Ordinances: 1. Resolution 2001-140 Setting Forth Findings of Fact and Determinations Regarding the Coyote Ridge Second Annexation. 2. Hearing and First Reading of Ordinance No. 167, 2001, Annexing Property Known as the Coyote Ridge Second Annexation to The City of Fort Collins. 3. Hearing and First Reading of Ordinance No. 168, 2001, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Coyote Ridge Second Annexation. C. Coyote Ridge Third Annexation and Zoning Resolution and Ordinances: • 1. Resolution 2001-141 Setting Forth Findings of Fact and Determinations Regarding the Coyote Ridge Third Annexation. 2. Hearing and First Reading of Ordinance No. 169, 2001, Annexing Property Known as the Coyote Ridge Third Annexation to The City of Fort Collins. 3. Hearing and First Reading of Ordinance No. 170, 2001, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Coyote Ridge Third Annexation. D. Coyote Ridge Fourth Annexation and Zoning Resolution and Ordinances: 1. Resolution 2001-142 Setting Forth Findings of Fact and Determinations Regarding the Coyote Ridge Fourth Annexation. 2. Hearing and First Reading of Ordinance No. 171, 2001, Annexing Property Known as the Coyote Ridge Fourth Annexation to The City of Fort Collins. 0 203 November 6, 2001 3. Hearing and First Reading of Ordinance No. 172, 2001, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Coyote Ridge Fourth Annexation. E. Coyote Ridge Fifth Annexation and Zoning Resolution and Ordinances: 1. Resolution 2001-143 Setting Forth Findings of Fact and Determinations Regarding the Coyote Ridge Fifth Annexation. 2. Hearing and First Reading of Ordinance No. 173, 2001, Annexing Property Known as the Coyote Ridge Fifth Annexation to The City of Fort Collins. 3. Hearing and First Reading of Ordinance No. 174, 2001, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Coyote Ridge Fifth Annexation. F. Coyote Ridge Sixth Annexation and Zoning Resolution and Ordinances: Resolution 2001-144 Setting Forth Findings of Fact and Determinations Regarding the Coyote Ridge Sixth Annexation. 2. Hearing and First Reading of Ordinance No. 175, 2001, Annexing Property Known as the Coyote Ridge Sixth Annexation to The City of Fort Collins. Hearing and First Reading of Ordinance No. 176, 2001, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Coyote Ridge Sixth Annexation. This is a request for a 100% voluntary annexation. The acreage of the six annexation sites are as follows: Coyote Ridge First is approximately 2.5 acres, Coyote Ridge Second is approximately 181 acres, Coyote Ridge Third is approximately 161 acres, Coyote Ridge Fourth is approximately 192 acres, Coyote Ridge Fifth is approximately 325 acres, Coyote Ridge Sixth is approximately 235 acres. All six annexations are publicly owned property. The recommended zoning is Public Open Lands (POL), which is consistent with the Structure Plan designation of Rural/Open Lands and Stream Corridors. 27. Items Relating to the Fossil Creek Wetlands Natural Area Second Annexation and Zonin . 204 November 6, 2001 • A. Resolution 2001-147 Setting Forth Findings of Fact and Determinations Regarding the Fossil Creek Wetlands Natural Area Second Annexation. B. Hearing and First Reading of Ordinance No. 181, 2001, Annexing Property Known as the Fossil Creek Wetlands Natural Area Second Annexation to The City of Fort Collins. C. Hearing and First Reading of Ordinance No. 182, 2001, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Fossil Creek Wetlands Natural Area Second Annexation. This is a request for a 100% voluntary annexation. The site is approximately 24.74 acres of publicly owned property located south of Trilby Road, east of Timberline Road, north of Carpenter Road, and west of I-25. The recommended zoning is Public Open Lands (POL). The property is located within the Fort Collins Urban Growth Area (UGA). According to policies and agreements between the City of Fort Collins and Larimer County, contained in the Intergovernmental Agreement for the Fort Collins Urban Growth Area, the City • will annex property within the UGA when the property is eligible for annexation according to Colorado Revised Statutes (CRS). 28. Items Relating to the Pineridge Fifth Annexation and Zoning. A. Resolution 2001-148 Setting Forth Findings of Fact and Determinations Regarding the Pineridge Fifth Annexation. B. Hearing and First Reading of Ordinance No. 183, 2001, Annexing Property Known as the Pineridge Fifth Annexation to The City of Fort Collins. C. Hearing and First Reading of Ordinance No. 184, 2001, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Pineridge Fifth Annexation. This is a request for a 100% voluntary annexation. The site is approximately 4.76 acres of publicly owned property located southeast of Hughes Stadium including a portion of the South Overland Trail and County Road 42C rights of way, and small piece of the Pineridge Natural Area. The recommended zoning is Public Open Lands (POL). 0 205 November 6, 2001 29. Items Relating to the Westchase I and II Annexation and Zonine. A. Items Relating to the Westchase I Annexation. 1. Resolution 2001-149 Setting Forth Findings of Fact and Determinations Regarding the Westchase I Annexation. 2. Hearing and First Reading of Ordinance No. 185, 2001, Annexing Property Known as the Westchase I Annexation to the City of Fort Collins. 3. Hearing and First Reading of Ordinance No. 186, 2001, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Westchase I Annexation. B. Items Relating to the Westchase II Annexation. 1. Resolution 2001-150 Setting Forth Findings of Fact and Determinations Regarding the Westchase II Annexation. 2. Hearing and First Reading of Ordinance No. 187, 2001, Annexing Property Known as the Westchase II Annexation to the City of Fort Collins. 3. Hearing and First Reading of Ordinance No. 188, 2001, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Westchase II Annexation. This is a request for a 100% voluntary annexation. The acreage and location of the two annexation sites are as follows: The Westchase I Annexation and Zoning is approximately 4.279 acres, and is located within and just east of the Timberline Road right-of-way, just north of the intersection of Timberline and Trilby. The Westchase II Annexation and Zoning is approximately 157.93 acres and is located north of the current Trilby Road alignment and east of the Westchase I Annexation and Zoning. Both properties are located within the Fossil Creek Reservoir Planning Area. Both properties are located within the Fort Collins Urban Growth Area (UGA). According to policies and agreements between the City of Fort Collins and Larimer County contained in the Intergovernmental Agreement for the Fort Collins Urban Growth Area, the City will agree to consider annexation of property in the UGA when the property is eligible for annexation according to state law. November 6, 2001 0 ***END ANNEXATION AND ZONING CONSENT' Annexation and Zoning Consent Calendar Items Adopted. Kelly Ohlson, 2040 Bennington Circle, withdrew item #25A Cathy Fromme Natural Area First and Annexation and Zoning Resolution and Ordinances from the Annexation and Zoning Consent Calendar. Councilmember Hamrick withdrew all items from the Annexation and Zoning Consent Calendar. City Manager Fischbach stated that staff would be available to answer specific questions regarding the annexation and zoning agenda items. He noted that these proposed annexations have been reviewed in study sessions with the City Council and spoke regarding the intent of natural areas annexations. Kelly Ohlson, 2040 Bennington Circle, stated that these annexations were originally proposed as a way to deal with law enforcement in the natural areas and that the issue in reality relates to the creation of enclaves for future annexations. He stated that the Council should not have given the direction to create these enclaves for future annexations until a detailed analysis was available. . He stated for the record that this will prove not to be an economic benefit to the City in the future. He stated that there needs to be a community discussion regarding the final geographical boundaries of the City followed by discussion of policies in this area. Councilmember Hamrick asked about police services to natural areas. City Manager Fischbach stated that the reference has been to the legal ability of Fort Collins Police Sery ices to respond to the natural areas. He noted that two rangers work in the natural areas. Councilmember Hamrick asked if there would be an increase in staffing by rangers. Greg Byme, CPES Director, stated that there would be no change in this staffing level. Councilmember Hamrick asked about the estimated $6.6 million in capital construction cost for two miles of widening South Taft Hill Road mentioned in the memo outlining costs for annexation of the natural areas and whether the City currently receives the Larimer County regional road impact fee. Ron Phillips, Transportation Services Director, stated that the City currently collects this fee. Councilmember Hamrick asked if the County impact fees would increase if the natural areas are annexed. Phillips stated that the regional roads eligible for improvement using the County impact fees include South Taft Hill Road. 0 207 November 6, 2001 Councilmember Hamrick asked about the relationship between this fee and the annexations. City Manager Fischbach stated that there is no relationship between the two. Councilmember Hamrick asked about the policy regarding changing the Growth Management Area and whether an annexation can be done before the GMA is amended. City Manager Fischbach stated that in all cases, with the exception of natural areas, that an annexation can not be done outside of the Urban Growth Area. He stated that natural area annexations are an exception allowed under both the intergovernmental agreement with the County and City Plan. Byrne stated that if the City wishes to annex outside of the Growth Management Area, the County will consider that annexation to be a de facto movement of the boundary set in the intergovernmental agreement. He noted that the County has joined as a property owner in the petition for annexation of some of the property proposed for annexation. Councilmember Hamrick noted discrepancies between City Plan and the IGA. Byrne stated that staff recommends approval of the annexations. Councilmember Kastein asked if the IGA language was specifically approved to provide a policy to allow for annexation of natural areas outside of the Urban Growth Area. Byrne stated that the language was approved for that purpose for areas south of County Road 32. Mayor Martinez asked if the IGA language or the City Plan language should be followed. City Attorney Roy stated that staff is reviewing the language to determine if there is an inconsistency and stated that if the language is inconsistent that City Plan is not binding upon the Council when making a decision to annex. He stated that the IGA permits, but does not require, these annexations. Councilmember Hamrick stated that the sole purpose of these annexations is creation of an enclave which would mean the involuntary annexation of the enclave in the future. He asked if the City has approached any of the businesses or citizens in the enclave about voluntary annexation. City Manager Fischbach stated that the enclave would consist of about 1,781 acres and that there are approximately 3,000 to 5,000 businesses and homeowners in that area and that the creation of an enclave for annexation is the most effective way to deal with annexation in this type of situation. He stated that he has reviewed the policy implications with Council on a number of occasions. He noted that an economic analysis regarding annexation of the enclave would be done at the time of annexation because circumstances change over time. Councilmember Hamrick asked if portions of the enclave could annex voluntarily. City Manager Fischbach stated that there is no practical way to do voluntary annexations in this case. Councilmember Hamrick noted with regard to item 427 Items Relating to the Fossil Creek Wetlands Natural Area Second Annexation and Zoning that this is a 100% voluntary annexation, which he supports, and that it is within the Growth Management Area. He stated that there are frflF3 November 6, 2001 • no cost figures presented in connection with this annexation. City Manager Fischbach stated that is a comer site of raw land. Troy Jones, City Planner, stated that the policy is not to do such a cost analysis for each individual voluntary annexation. He stated that this is a vacant piece of property. Councilmember Hamrick expressed a concern regarding the cost analysis process because there may be some annexations Council would like to deny or delay depending on the cost of the annexation. Jones stated that it is staffs understanding that a cost analysis is to be provided for enclaves and that additional staff time would be needed to provide cost analyses for all voluntary annexations. Councilmember Weitkunat stated that it was her understanding that a cost analysis would be provided when the annexation would involve homes, residences and businesses rather than vacant land. Councilmember Kastein asked that staff provide a summary to Council regarding the policy discussion regarding cost analyses from the study sessions. - Councilmember Hamrick asked for clarification regarding item #28 Items Relating to the Pineridge Fifth Annexation and Zoning because this is a 100% voluntary annexation located -- • outside of the Growth Management Area. He asked if this is a natural area or if it is located next to a natural area. Jones stated that the property is part of the Pineridge natural area. Councilmember Hamrick asked with regard to item #29 Items Relating to the Westchase I and II Annexation and Zoning if these properties are vacant. Jones stated that these properties are currently under development and outlined the agreement with the County regarding annexation. Councilmember Hamrick asked if Council would like to see a cost analysis on this type of annexation. City Manager Fischbach stated that prior to Second Reading that he would provide information to Council regarding the cost analysis policy previously agreed to by Council. Councilmember Weitkunat made a motion, seconded by Councilmember Kastein, to adopt and approve the above listed Annexation and Zoning Consent Calendar items, 425 through #29. Councilmember Tharp stated that the issue of economic impacts of adding an enclave to the City was thoroughly discussed in Council study sessions. Councilmember Weitkunat stated that when the City owns and is responsible for open lands property, the property should be annexed. She stated that the proposed uses are public in nature and that most of these lands are undevelopable and that such properties should be brought into the City. 0 209 November 6, 2001 Councilmember Hamrick stated that he would not support the motion because the City is annexing outside of the Growth Management Area. He stated that the referenced enclave is also outside of the Growth Management Area. He stated that there has not yet been a discussion regarding how large the City should be, that this is creation of a flagpole annexation, and that the citizens can not afford the enclave annexation. Councilmember Wanner stated that he supports the motion because an opportunity cost will be created if the City does not move quickly to make it possible to annex this area. He spoke regarding the importance of creating a City with a compact urban form. He stated that an economic analysis will be done at the time annexation of the enclave is considered. Councilmember Kastein stated that this follows policy directives to annex land that is eligible for annexation that is inside the Urban Growth Area and to create enclaves. He stated that the decision regarding annexation of the enclaves will be made by a future Council. He stated that he would support the motion. Councilmember Bertschy stated that the natural areas have been purchased as part of the process to separate the City from other entities and that way to reconcile the Growth Management Area is to make these natural areas the hard edge of the City beyond which the City will not annex. Mayor Martinez stated that he would support the motion. He requested a definition regarding a "flagpole annexation." City Manager Fischbach stated that these are not flagpole annexations because an enclave is being created. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Kastein, Martinez, Tharp, Wanner and Weitkunat. Nays: Councilmember Hamrick. THE MOTION CARRIED Ordinance No. 159, 2001 Authorizing the Purchasing Agent to Enter into an Agreement with Outdoor Promotions, Inc. to Provide Bus Shelters, Bus Benches, and Advertising for the City of Fort Collins Transit Service for 20 Years Adopted on Second Reading. The following is staff s memorandum on this item. "Executive Summary Outdoor Promotions, Inc., submitted the successful proposal to the City's May 11, 2001, Request for Proposal No. P-793 regarding providing bus shelters and bus benches and sale of advertising space on the same. The City and Outdoor Promotions, Inc. currently have a Services 210 November 6, 2001 Agreement that expires December 31, 2001. This Ordinance, which was adopted 5-1 on October 16, 2001, authorizes the City to extend that agreement for a 20 year period commencing January 1, 2002 and extending through December 31, 2021. " City Manager Fischbach stated that this item appears on the discussion agenda because there was not a unanimous vote on First Reading. Kelly Ohlson, 2040 Bennington Circle, spoke in opposition to the ordinance because it would exempt the City from its own sign code. He stated that the City should have negotiated to receive a portion of the gross rather than net proceeds. He stated that philosophically this makes the City a partner in the "buy -consume" society and contributes to more visual pollution and degradation of the urban environment. He stated that it will now be possible to advertise "gas guzzling" sport utility vehicles at bus stops, while it will not be possible to advertise any kind of political message such as one encouraging people to use alternative modes of transportation. John Walker, attorney and member of Citizens for Protection of Property Values, stated that bus bench signs should not be allowed at any given location with bus shelter signs, that there should not be directional arrows on signs, that liquor store advertising should not be allowed, that bus shelter signs should not be allowed in residential areas, and that bus shelter signs should not be allowed without the consent of the adjoining property owner. He stated that this will contribute . to visual distraction and pollution and flies in the face of the sign code. He asked how much quality of life will be sacrificed to save a troubled bus system. Mayor Martinez asked if the City exempts itself from the sign code. City Attorney Roy stated that Section 24-1 of the Code generally prohibits signage in the public right-of-way and that there are exceptions for City directional signs. He stated that this would be another exception. Mayor Martinez asked why the City exempts itself. City Attorney Roy stated that there is a need to provide directional signs to provide information to the public, and that in this instance that if the program is to be approved by the Council then the exception becomes necessary to allow it. Mayor Martinez asked whether the contract is to the advantage of the City. Jim O'Neill, Director of Purchasing and Risk Management, stated that there is an error in the agenda item summary and that the City is to receive a percentage of the gross revenues. Tom Frazier, Multi - Modal Transportation Group Leader, stated that the contract provides that the contractor will provide a minimum amount to the City each year. Mayor Martinez asked about the City's reliance on sales tax. City Manager Fischbach stated that the City is heavily reliant upon sales tax and that staff is looking at this issue. Mayor Martinez stated that this is an argument in favor of promoting the "buy -consume" society. 0 211 November 6, 2001 Mayor Martinez asked about the issue of directional arrows on bus shelter advertising. Frazier stated that one bus shelter has an ad with an arrow pointing toward a particular store and that there have been no problems with this ad at this time. He stated that staff reviews signs to ensure that misdirection will not be given to motorists. Councilmember Kastein stated that it appears that staff has the authority to review signs for safety issues. He asked if bus benches are allowed with bus shelters. Frazier stated that a bus shelter and a bus bench can be allowed at the same site and that advertising is permitted on only one, although this is not stated in the contract. Councilmember Kastein asked about the percentage of bus shelters in residential areas. Frazier stated that the sign code provides restrictions to placing advertising in residential areas and that the contract specifies the placement of a certain number of shelters or benches without advertising in residential areas. Councilmember Kastein if the City monitors the placement of signs that might be offensive to some people in certain areas. City Attorney Roy stated that the sign code does not have provisions for asking individual property owners if they like the content of advertising or think it is compatible with their use. He stated that there are controls within the contract that allow the City to regulate the advertising and that the City could take advertising content into consideration. Councilmember Kastein requested that the City Attorney summarize those controls in a memo and make the memo available to Mr. Walker. City Attorney Roy stated that these controls are also spelled out in the contract. Frazier stated that the City contacts property owners before a bus bench is put in to ensure that advertising is not from competitors and that the property owner is aware of what is taking place. Councilmember Hamrick asked if there are other areas in which the City exempts itself from its own requirements. Paul Eckman, Deputy City Attorney, clarified the exemptions outlined in the sign code and stated that the exemption allowing bus bench signs is not in the sign code. City Attorney Roy stated that the sign code regulates signage on private property. Councilmember Weitkunat stated that the issue of exemptions for other things is not pertinent to the discussion of this ordinance and suggested that this issue be dealt with in a memo from staff. Councilmember Tharp requested an explanation why political and advocacy ads will not be allowed. City Attorney Roy stated that this is to avoid an appearance of partiality or endorsement and to avoid the appearance that the City is creating a public forum. Councilmember Weitkunat made a motion, seconded by Councilmember Tharp, to adopt Ordinance No. 159, 2001 on Second Reading. 212 November 6, 2001 • Councilmember Hamrick stated that he understands the need for additional revenue but disagrees with the method of obtaining this revenue. He stated that this will contribute to visual pollution and that there are safety issues. He stated that he would not support the motion. Councilmember Bertschy stated that he voted for the ordinance on First Reading and will not support the ordinance on Second Reading. The vote on the motion was as follows: Yeas: Councilmembers Kastein, Martinez, Tharp, Wanner and Weitkunat. Nays: Councilmember Bertschy and Hamrick. Items Relating to the Completion of the Fall Cycle of the Competitive Process for Allocating City Financial Resources to Affordable Housing Projects/Programs and Community Development Activities: The City's Fiscal Year 2001-2002 Home Investment Partnerships HOME) Program, the City's Affordable Housing Fund, and Reprogrammed Community Development Block Grant (CDBG) Program Funds, Adopted. The following is staffs memorandum on this item. • "Executive Summary The Home Investment Partnerships (HOME) Program and the Community Development Block Grant (CDBG) Program provide funds from the Department of Housing and Urban Development (HUD) to the City of Fort Collins which can be allocated to affordable housing related programs and projects, thereby, reducing the demand on the City's General Fund Budget to address such needs. The City Council is being asked to consider the adoption of three resolutions. The first resolution establishes which programs and projects will receive funding with HOME funds for the FY 2001-2002 Program year, which started on October 1, 2001. The second resolution establishes which programs and projects will receive funding from the City's Affordable Housing Fund And, the third resolution establishes which programs and projects will receive funding from reprogrammed CDBG Program funds. A. Public Hearing and Resolution 2001-151 Approving the FY2001-2002 Home Investment Partnerships Program for the City of Fort Collins. B. Public Hearing and Resolution 2001-152 Allocating Funding from the City's Affordable Housing Fund. C. Public Hearing and Resolution 2001-153 Approving the Allocation of Reprogrammed Community Development Block Grant Funds. 0 213 November 6, 2001 BACKGROUND: The City Council is being asked to consider the adoption of three resolutions. The first resolution establishes which programs and projects will receive funding with HOME funds for the FY 2001-2002 Program year, which started on October 1, 2001. The second resolution establishes which programs and projects will receive funding from the City's Affordable Housing Fund. And, the third resolution establishes which programs and projects will receive funding from reprogrammed CDBG Program funds. Additional background material about the competitive process is included in Attachment "A". Since early January of this year, the CDBG Commission and members of the City staffs Affordable Housing Team have conducted public hearings to assess community development and housing needs in Fort Collins, conducted technical assistance training workshops for applicants, and solicited applications for funding. The CDBG Commission reviewed written applications, personally interviewed each applicant, analyzed the applications, and formulated a list of recommendations to the City Council as to which programs and projects should receive funding. The competitive process established refined criteria to determine priorities between proposals received by the City. The ranking criteria are divided into five major categories. Each category is given a total number of points that has been weighed according to their importance with respect to local and federal priorities. The five major categories are: 1. Impact/Benefit 2. Need/Priority 3. Feasibility 4. Leveraging Resources 5. Capacity and History The Impact/Benefit criteria provide greater rewards to proposals that target lower income groups. The Need/priority criteria help assure the proposal meets adopted City goals and priorities. The Feasibility criteria reward projects for timelines and documented additional funding. The leveraging resources criteria reward proposals which will return funds to the City (loans) and for their ability to leverage other resources. And, the Capacity and History criteria help gage an applicant's ability to do the project and reward applicants that have completed successful projects in the past (have good track records). The ranking sheet used to assist the CDBG Commission is presented in Attachment A. The Commission also considered the funding guidelines contained in the Priority Affordable Housing Needs and Strategies report adopted by the Council on February 2, 1999. These guidelines include: 214 November 6, 2001 • HOME funds should generally be allocated as follows: 90% for Housing projects and 10% for Program Administration. HUD HOME Program regulations also require the City to set aside 15% for Community Housing Development Organization (CHDO) projects and allow an allocation of 5% for CHDO operations; • CDBG funds should generally be allocated as follows: 65% for Housing projects; 10% for Program Administration; 10% for Public Facilities; and 15% for Public Services. • funds allocated to housing should generally be divided as follows: 70% for rental projects and 30% for homeownership opportunities; and • the average subsidy should be $5,000 per unit, with relatively more funding to projects producing housing for lower income families. The CDBG and HOME Programs are ongoing grant administration programs funded by the Department of Housing and Urban Development (HUD). The City of Fort Collins has received CDBG Program funds since 1975 and HOME Program finds since 1994. The City is an Entitlement recipient of CDBG funds and a Participating Jurisdiction recipient of HOME funds, meaning the Ciry is guaranteed a certain level of funding each year. The level of funding is dependent on the total amount offends allocated to the programs by Congress and on a formula developed by HUD, which includes data on total population, minorities as a percentage of • population, income levels, housing stock conditions, etc. Additional background information on the City's CDBG and HOME Programs is presented in Attachment B. AVAILABLE FUNDS The amount of the City's HOME Grant for FY 2000-2001 is $685,000. Added to the HOME grant will be $100,000 of HOME Program Income to make a combined amount of $785,000 available for projects and administrative purposes. Subtracting $78,500 (10% maximum allowed by HOME regulations) for administrative purposes, leaves $706,500 available for projects and programs. The HOME funds will be combined with $6711950 from the City's Affordable Housing Fund and $1,090,000 of reprogrammed CDBG funds to create a potential pool of $2, 468,450 offends available for programs from the fall cycle of the competitive process. CDBG funds are typically allocated in the spring and are, thus, not available for use in the fall cycle of the competitive process. However, of some projects previously allocated CDBG funds, one has been canceled, another changed the scope of its funding from acquisition to construction, and the Denver Office of the Department of Housing and Urban Development has reversed a previous ruling concerning the eligible use of CDBG funds to pay City development impact fees effecting two other projects. Since the City had previously allocated CDBG funds to several entities for their projects, substitute funds had to be found to honor the City's commitments. The $1, 090, 000 of reprogrammed CDBG funds comes from the following sources: • 215 November 6, 2001 $250, 000 Concorde Capital —project canceled $300, 000 CARE Housing — changed from acquisition to construction $250, 000 Elizabeth Street Apartments - impact fees $290, 000 Volunteers of America - impact fees The following summarizes the amount and sources of available funds: AMOUNT SOURCE $ 796,950 FY 2001 HOME Grant and Program Income 671,950 City's Affordable Housing Fund 1,090,000 Reprogrammed CDBG Funds ----------------- $2, 558,900 Total SELECTION PROCESS On January 11, 2001, the CDBG Commission held a public hearing to obtain citizen input on community development and affordable housing needs. The HOME Program office placed legal advertisements in local and regional newspapers starting in July to solicit requests for HOME funded programs and projects and for proposals for the use of funding from the City's Affordable Housing Fund.. The application deadline was Thursday August 23. At the close of the deadline the City received 11 applications requesting a total of approximately $4.1 million. Copies of all applications were forwarded through the City Manager's office to the City Council on September 13 and placed in the Council Office for review. Also on September 13 copies of the applications were distributed to the CDBG Commission. On Thursday October 4, the CDBG Commission met to hear presentations and ask clarification questions from each applicant. The Commission then met on Thursday October 11 for the purpose of preparing a recommendation to the City Council as to which programs and projects should be funded within funds available from the fall cycle of the competitive process. At this meeting the Commission reviewed the written applications, the applicant's verbal presentation, the information provided during the question and answer session, and reviewed the performance of agencies who received HOME funds or funding in other previous years. The Commission then worked on the formulation of their list of recommendations. CDBG COMMISSION'S LIST OF RECOMMENDATIONS HUD HOME regulations limit the amount of available funds that can be categories. Funds for Administrative purposes are limited to 10% of the means 90% of the Grant must be used for housing projects. Within t 216 allocated to various HOME Grant which :e 90% required for November 6, 2001 • projects, the City is required to set aside 15% for Community Housing Development Organization (CHDO) projects and allow an allocation of 5% for CHDO operations. CDBG funds can not be used for construction purposes The Commission, thus, not only had to decide which applicants presented programs and projects which best fit into the City's HOME and CDBG Programs, but also had to insure funding allocations were kept within HUD regulations and follow the funding guidelines contained in the Priority Affordable Housing Needs and Strategies report. Listed below is a summary of each applicant's initial request for funding and the Commission's list ofrecommendations. City of Fort Collins - Home Buyer Assistance Request: $300, 000 Recommendation: $200, 000 HOME funds and $100, 000 Affordable Housing Fund (AHF) This program is administered by the Advance Planning Department and provides zero - percent interest loans to eligible first-time homebuyers. The assistance covers down • payment and closing costs to a maximum of $8, 000 for households at 51 % to 80% of Area Median Income (AMI) and $16,000 for buyers at or below 50% of AMI. The $100,000 requested from the AHF will be used in those cases where properties are currently rented and subjected to Federal relocation requirements. Approximately 62 households will be assisted in the next year with this program. Habitat for Humanity — Development Fees and Down Payment Assistance Request: $ 73, 242 Recommendation: $47, 000: $15, 000 AHF for development fees and $32, 000 AHF for homebuyer assistance Habitat is requesting HOME funds to acquire two new lots in the Waterglen subdivision and funding to pay for Development and Building Permit Fees for two current lots soon to be under construction. In addition, Habitat requests AHF funding for down payment to support large family acquisition (four bedrooms), because values of these homes may exceed the FHA maximum cost limits ($175, 750) imposed by federal regulations on the HOME Program. 0 217 November 6, 2001 Care Housing — Fairbrooke Heights Development Request: $500, 000 Recommendation: $470, 000: $206, 250 HOME funds, $194, 700 CHDO f unds, and $69, 050 AHF CARE plans to use HOME funds for construction purposes. The project will be a 36 unit multi family rental development, which will consist of two- bedroom units. The site is located at 1827 Somerville Drive, which is east of the intersection of Somerville Drive and Langshire Drive. Bethphage - Acquisition of Group Home Request: 195, 000 AHF Declining Balance Loan Recommendation: $111,900AHF Bethphage is interested in acquiring and rehabilitating a single-family home for five individuals with developmental disabilities. All individuals identified to live in the project will be disabled and have incomes at or below 30% ofAMI. Fort Collins Housing Authority - Rigden Farm Land Acquisition Request: $241,000 Recommendation: $241, 000 CDBG f unds The Fort Collins Housing Authority and Sierra Land Corporation are forming a joint venture to develop 120 affordable housing units at Rigden Farm located at Timberline and Drake. HOME funds are requested to acquire the land for 33 rental units at 50% ofAMI Specifically, the total project will consist of 33 rental units at 50% of AMI, 38 for -sale units at 40-60% ofAMI, 32 single-family units at 60-80% ofAMI, 6 carriage houses renting at 60-80% ofAMI, 56 single family detached units at 75-95% ofAMI, of which 45 units will be market rate. Fort Collins Housing Corporation — Stanford Road Triplex Acquisition and Rehabilitation Request: $92,250 Recommendation: $92, 250 CDBG f nds 218 November 6, 2001 • The Fort Collins Housing Corporation requests funds to purchase a triplex consisting of one each two bedroom, three bedroom and four bedroom units. This property requires approximately $12,000 of rehabilitation. Financing will be secured through First National Bank at a rate of 5.75% for 80% loan, adjustable every 5 years. Neighbor to Neighbor — Northern Front Range Family Transitional Housing Request: $20, 000 Recommendation: $0 Neighbor to Neighbor is requesting funding for Tenant Based Rental Assistance to provide gap funding that will keep formerly homeless families and individuals with mental illness in transitional housing to allow for opportunities of self-sufficiency. Funds would support the Northern Front Range Continuum of Care, a regional partnership that supports homeless in Northern Colorado. Lagunitas - Redtail Affordable Housing Request: $1,260,000 • Recommendation: $0 The Lagunitas Company is requesting funding for acquisition and construction of an 84-unit condominium development. All of the units will be for purchase and will be affordable to households between 50% and 80% ofAM7. Units in this development will be one, two, and three bedroom units configured in 8-12 units per building, and all will include, either an attached or detached garage. KB Home - Provincetowne Request: $927,598 Recommendation: $0 KB Home is requesting funds to subsidize four areas in the development of the Provincetowne project: general construction, handicap modifications for 12 units, permitting and development fees, and down payment assistance for homeowners. Provincetowne is a new subdivision in Fort Collins located at Lemay and Trilby. Approximately 850 units are planned in a variety of housing types, including single-family detached and • 219 November 6, 2001 townhouse style. KB Home has already committed to making 30% of these units or 255 units affordable. In this particular development phase, there will be 141 affordable housing units. The designs include two and three bedroom floor plans, and one story ranch units at the ends of the multiple unit buildings. Volunteers of America — Elderly Housing Request: $290, 000 Recommendation: $71, 000 HOME funds and $219, 000 AHF Volunteers of America is proposing a 60-unit independent living apartment complex reserved for very low-income elderly located at 1401 Horsetooth Road. This project is a HUID 202 project, with commitments of $4,156,400 for construction -related activities and $800,500 for a five year rental subsidy to support the project. The project has previously received $250,000 of HOME funds from the City. Elizabeth Street Apartments —Elderly Housing Request: $250, 000 Recommendation: $125, 000 HOME funds and $125, 000 AHF Request by Simpson Housing for funds to pay City development Impact/Building permit Fees to help construct 50 senior apartments on West Elizabeth Street. Total amount of funding requested = $4,149,090 Total amount of funding available = $2,558,900 Total amount offunding allocated = $1,802,150 The total amount of funding requests considered by the CDBG Commission was approximately $4.1 million, however, only about $2.5 million of funds are available. With the amount of total requests far exceeding available funding, obviously not all applications could be funded. Also, some applicants requested funds for projects that are ineligible for the use of CDBG funds. The CDBG Commission has recommended full funding for five (5) proposals, and partial funding for two (2) other projects. Proposals, which did not receive full funding, were deemed of a lower priority and, in some cases, a lack offunds, program category limitations, or funding 220 C� November 6, 2001 guidelines prohibited their full funding. The Commission has recommended no funding for three (3) proposals. The Commission's reasons for either full funding, partial funding, or no funding are presented in Attachment C. The Commission has recommended allocation of $333,250 of the $1, 090, 000 of reprogrammed CDBG funds. The balance of $756, 750 of the reprogrammed CDBG funds will be available for allocation in the 2002 spring cycle of the competitive process. Summary of the Community Development Block Grant Commission's Recommendations for Funding Request Recommendation $92,250 $92,250 $250,000 $250,000 $290,000 $290,000 $500,000 $470,000 $300,000 $300,000 $73, 242 $47, 000 $195,000 $111,900 $241,000 $241,000 $20,000 $0 $927,000 $0 $1,260,000 $0 Applicant — Project Ft. Collins Housing Corporation — Housing rehabilitation Elizabeth Street — Development fees Volunteers ofAmerica - Development fees CARE Housing, Inc. — Fairbrooke City of Fort Collins — Downpayment assistance Habitat for Humanity — Homebuyer assistance & Development fees Bethphage — Group home Ft. Collins Housing Authority — Rigden Farm Neighbor to Neighbor — Tenant based rental assistance KB HOME — Provincetowne Lagunitas - Condos" 0 221 November 6, 2001 City Manager Fischbach introduced the agenda item. Ken Waido, Chief Planner, presented background information regarding the agenda item and stated that Council's approval of the three Resolutions would determine which projects and programs would receive funding from the HOME program, the Affordable Housing Fund, and reprogrammed CDBG funds for affordable housing. He spoke regarding the CDBG Commission's review process and recommendations. Councilmember Bertschy made a motion, seconded by Councilmember Wanner, to adopt Resolutions 2001-151, 2001-152 and 2001-153. Councilmember Bertschy stated that there was an excellent presentation at the Study Session by staff and the CDBG Commission. He thanked the Commission for another round of hard work. Councilmember Tharp stated that the CDBG Commission's process gives the Council a clear picture of why decisions are made. Councilmembers Wanner, Kastein and Weitkunat and Mayor Martinez also thanked the Commission for its hard work. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Tharp, Wanner and Weitkunat. Nays: None. THE MOTION CARRIED ("Secretary's Note: The Council took a brief recess at this point.) Items Relating to the Johnson Property Rezoning and Structure Plan Amendment, Adopted. The following is staffs memorandum on this item. "Executive Summary A. Resolution 2001-155 Amending the City's Structure Plan Map. B. Hearing and First Reading of Ordinance No. 190, 2001, Amending the Zoning Map of the City of Fort Collins by Changing the Zoning Classification for That Certain Property. Known as the Johnson Property Rezoning. APPLICANT. The James Company 2919 Valmont Road, Suite 204 Boulder, CO 80301 222 November 6, 2001 • OWNERS: Spring Creek Farms, LLP 3432 Carlton Ave. Fort Collins, CO 80525 PROJECT DESCRIPTION: This is a request to rezone approximately 217 acres of property located on the northeast corner of Timberline and Drake Roads. The property is currently zoned T — Transitional, as shown in the attached diagram titled "Existing Zoning. " The Structure Plan designation for the property is a combination of Industrial, Urban Estate, Low Density Mixed -Use Residential, Medium Density Mixed -Use Residential, and Neighborhood Commercial Center, as shown in the attached diagram titled "Existing Structure Plan Designation. " The applicant is proposing to amend the Structure Plan to change the configuration of the Industrial designation, remove the Neighborhood Commercial Center designation from the site, slightly modify the boundary line between Medium Density Mixed -Use Residential and Low Density Mixed -Use Residential, and to slightly modify the boundary line between Urban Estate and Low Density Mixed -Use Residential, as shown in the attached diagram titled, "Applicant's Proposed Structure Plan Configuration. " The applicant is also requesting to rezone the property to a combination of LMN, MMN, I, and UE to correspond to the requested Structure Plan amendment, as shown in the attached diagram titled "Applicant's Proposed Zoning Configuration. " • BACKGROUND: The inherent nature of the T — Transition Zone District is that property is entitled to be taken out of such zone district in a "timely manner. " The Land Use Code requires that staff take proposed rezonings of any property in the T — Transition District to the next regularly scheduled Planning and Zoning Board hearing at least 14 days after the rezone application is submitted, and requires Council to Rezone the property within 60 days of the Planning and Zoning Board hearing. The Structure Plan Resolution The Resolution to amend the Structure Plan is accompanied by two options of Exhibit A. The first option is the Structure Plan Amendment as proposed by the applicant (labeled "Exhibit A — Applicant'). The second option is the Structure Plan Amendment as proposed by the P&Z Board (Labeled "Exhibit A — P&Z'). Council will need to decide which of the two versions of "Exhibit A" it would like the Resolution to adopt. 0 223 November 6, 2001 Amending the Structure Plan The Structure Plan is an element of the Comprehensive Plan. The proposed zoning is not consistent with the current Structure Plan, however, the applicant proposes to amend the Structure Plan in a manner that would make the Structure Plan consistent with the zoning that is proposed. Appendix C of the Comprehensive Plan specifies that the City Council must make the following two findings in order for the Structure Plan to be amended: The existing Structure Plan is in need of the proposed amendment, and The Structure Plan amendment will promote the public welfare and will be consistent with the vision, goals, principles and policies of City Plan and the elements thereof. The applicant proposes the following four changes to the Structure Plan The first proposed change to the Structure Plan is to eliminate the Neighborhood Commercial Center designation on the site. The Planning and Zoning Board agreed with this change to the Structure Plan at both the September 17th and October 18th hearings. The second proposed change to the Structure Plan is to change the configuration between the Medium Density Mixed -Use Residential and the Low Density Mixed -Use Residential. The Planning and Zoning Board agreed with this change to the Structure Plan at both the September 17th and October 18th hearings. The third proposed change to the Structure Plan is to move the boundary line between the Industrial designation and Low Density Mixed -Use Residential designation roughly 500 feet to the north to a location that coincides with an agreed upon historic buffer for the Jessup farmstead. The Planning and Zoning Board agreed with this change to the Structure Plan at the October 18th hearing. The Historic Preservation staff, Advance Planning staff, Current Planning Staff, and an historic preservation consultant (hired by the City) have been working with the applicant for several months to determine an appropriate treatment of the two historic farmsteads on the site. Because the applicant proposes a Structure Plan designation boundary based on the edge of an appropriate historical buffer for the northern farm site (the Jessup farmstead), the treatment of the historical buffer becomes an issue to be discussed with this rezone and Structure Plan amendment application. After much negotiation and careful consideration, staff has come to an agreement with the applicant on the appropriate buffer area configuration around the Jessup farmstead site. The proposed district boundary between the Industrial designation and the Low Density Mixed -Use Residential designation is based on the southern edge of the historic buffer 224 November 6, 2001 • area for the Jessup farmstead. The agreed upon historic buffer is diagramed in the attachment titled "Concept Plan: Jessup Farm Compound. " As currently depicted on the Structure Plan, there are 33.4 acres designated as Industrial in the north corner of the site. The northwestern most 12.28 acres of the Industrial designated area consists of the historic Jessup farmstead and it's buffer area. The applicant proposes that the southeastern 21.12 acres of the area currently designated as Industrial be changed to the Low Density Mixed -Use Residential designation. Clark Mapes from the Advance Planning Department made the following comments with regard to the request to move the boundary line of the Industrial designation in the area south of the Jessup farmstead: "After considering this spot [between the Jessup Farm complex and the adjacent LMN neighborhood to the south] in greater detail, we agree [with the applicant] that it appears impractical to extend any meaningful or significant industrial use into this small area, isolated from adjacent industrial development to the east by topography and the RR tracks. Regarding the relationship to Industrial uses across Timberline to the west, we do not believe it is worthwhile to push for Industrial use on a piece of high ground south of the farm. It could be highly intrusive, sandwiched between the farm site and the future • neighborhood. " Troy Jones from the Current Planning Department made the following comment with regard to the removal of the Industrial designation from the area south of the farm site on the Structure Plan: "The applicant has included a diagram of their anticipated design that addresses the transition between the neighborhood and the farmstead. This design includes a buffer area outside the limits of the farm complex with a single loaded street along the northern edge of the neighborhood so the fronts of the housing units will face the open farmstead buffer rather than backyards and privacy fences. Front yards and the human interaction of residential street activity is a much preferred treatment of the edge to a valuable historical resource such as the Jessup farmstead than industrial uses are. If industrial is required to be located between the two uses it is likely that that area of the development could end up as mini storage or some other incompatible use. The northern edge of the residential neighborhood is also much better served by having a historic farmstead as its neighbor than an industrial use. To the west, Timberline is a logical edge and will be a huge barrier (future 6-lane arterial). Such a barrier would be a logical edge between different types of uses such as industrial and residential. To the east, the change in topography associated with the valley wall, and the barrier of the railroad track makes 0 225 November 6, 2001 the area in question have little to no visual or functional relationship to the industrial land in the adjacent Prospect Industrial Park " The applicant has indicated that they are not industrial developers, so if the southeastern 21.12 acre piece of the industrial designated property were to be zoned Industrial, it would not be developed by this applicant; therefore, the applicant would not have any control over the design, character or specific use that would be sandwiched between the historic Jessup Farmstead and the LMN neighborhood to the south. Staff believes that there is a need to change the Structure Plan with regard to the reconfiguration of the Industrial designation on the site because the Industrial designation would be far less compatible with the historic Jessup Farmstead and the adjacent LMN neighborhood to the south than would a designation of Low Density Mixed -Use Residential. Furthermore, staff finds that the proposed Structure Plan amendment would promote public welfare and be consistent with the goals, principles and policies of City Plan because adaptive reuse of the historic resource would be better suited to be located adjacent to a residential neighborhood than to vacant developable industrial land. The fourth proposed change to the Structure Plan is to change the location of the boundary line between the Low Density Mixed -Use Neighborhood designation and the Urban Estates designation. As currently depicted on the Structure Plan, there are 94.89 acres of Urban Estate designation on the property. At 2 units per acre, the existing UE designated property allows 189 dwelling units at an overall average density of 2 units per acre. The applicant now proposes, and staff supports, a layout where 85.58 acres of the site is designated Urban Estate in a configuration where the boundary line between the two designations shifts some UE to the west of the original line and some LMN east of the original line. If the property were to be zoned consistent with the applicant's proposed Structure Plan amendment, there would be between 28 and 56 additional units allowed as a result of the change. Advance Planning staff has repeatedly expressed that the lines on the Structure Plan are general lines that are color codes painted with a "broad brush" approach. It has always been the intention that, unless a Structure Plan line was specifically shown on a roadway, section line or specific kind of clear demarcation or topographical feature (such as a ridgeline or river), the line should have some inherent "wiggle room. " On the current Structure Plan configuration, there is a rough north -south line, which designates Urban Estate east of the line and Low Density Mixed -Use Residential and Industrial west of the line. This line does not specifically coincide with the valley wall, but has upper and lower valley wall ground on both sides. Planning staff would argue that this location of this line is subject to some variation. Advance 226 November 6, 2001 • Planning and Current Planning staff have been working with the applicant for several months to come up with a specific conceptual layout of streets and blocks in the vicinity of the proposed boundary line and, given a closer site -specific consideration, it makes good planning sense to allow this line to vary slightly. As a result of the variation to this line on the Structure Plan, there would only be a net change from Urban Estate to Low Density Mixed -Use Residential of less than 10 acres of land, which does not compromise the ability of the remaining Urban Estate land to achieve the desired density transition between the higher intensity uses at the top of the valley wall and the low intensity uses intended for the lower ground associated with the Poudre River Corridor. Stafff:nds that there is a need to change the Structure Plan with regard to the reconfiguration of the Urban Estate and Low Density Mixed -Use Residential designation boundary because the Structure Plan was not intended to be precise at this location, and a closer site -specific consideration of this designation in this location accomplishes the intent to step down the level of intensity toward the river valley just as well as a plan reflecting the current Structure Plan configuration. Furthermore, staff finds that the reconfiguration of the Urban Estate and Low Density Mixed -Use Residential designation boundary would promote the public welfare and be consistent with the goals, principles and policies of City Plan and that the proposed amendment accomplishes the intent to provide a transition of intensity from the top of the high intensity uses at the southwest corner of the site to the low intensity uses at the lower southeast corner of the • site just as well as if the Structure Plan were not changed. The Zoning Ordinance The Ordinance does not include legal descriptions of each of the zone district boundaries, but rather refers to a zone district configuration "more particularly described in Exhibit A, " which is attached to the Ordinance. There are two versions of Exhibit A. The first is the zone district configuration proposed by the applicant (labeled "Exhibit A — Applicant'). The second is the zone district configuration supported by the P&Z board (labeled "Exhibit A — P&Z'). Given the fact that there are two possible zone boundary configurations under consideration, the most practical way to present the information is diagrammatically for First Reading. Once Council chooses which of the zoning configurations it supports on First Reading, then the legal description for the chosen configuration will be generated and put into the Ordinance for Second Reading. 0 227 November 6, 2001 The Land Use Code The al2plicant proposes four zone districts for the property; MMN—Medium Density Mixed -Use Neighborhood District, LAN — Low Density Mixed -Use Neighborhood District, UE — Urban Estate District, and I — Industrial District. The locations of the applicant's proposed zone district boundaries correspond to the proposed Structure Plan amendments. Section 2.9.4(H) of the LUC specifies the process for amending the zoning map. This section of the code specifies two mandatory requirements and three additional considerations. Mandatory Requirements Consistent with the Comprehensive Plan; and/or Warranted by changed conditions within the neighborhood surrounding and including the subject property. The proposed zoning configurations are consistent with the proposed Structure Plan amendments, and, if Council amends these components of the Structure Plan as recommended, the rezone request will be consistent with the Comprehensive Plan. Additional Considerations Whether, and the extent to which, the proposed zoning change is compatible with existing and proposed uses surrounding the subject land, and is the appropriate zone district for the land; Whether, and the extent to which, the proposed zoning change would result in significantly adverse impacts on the natural environment, including, but not limited to, water, air, noise, stormwater management, wildlife, vegetation, wetlands and the natural functioning of the environment; Whether, and the extent to which, the proposed zoning change would result in a logical and orderly development pattern. A key issue that needs to be considered regarding the rezoning of the property is how the area adjacent to the Wastewater Treatment Facility should be zoned. Based on the policies and procedures that apply to wastewater treatment plants by the Colorado Water Quality Control Division (CWQCD), there must be a minimum 1000 foot setback from such wastewater plants to habitable structures (Please see the attached memo titled, "Water Quality Site Application'). The applicant has proposed to zone this buffer area UE, but has offered a restrictive covenant that specifically disallows any habitable structures within 1000 feet of the planned wastewater treatment plant expansion. "Habitable structures" is defined in CWQCD state policy as residences, schools, and commercial structures at which people work on a regular basis. At both 228 November 6, 2001 • the September 17 and October 18 Planning and Zoning Board Hearings the Board recommended RC - River Conservation zoning for this 1000 ft. setback area. Both the RC and UE zone districts permit habitable structures. Regardless of which of the two zones the buffer area ends up in, there needs to be a condition placed on the zone district that disallows habitable structures within the buffer area. Simply obtaining a contract from the developer agreeing to a restrictive covenant disallowing habitable structures within the buffer area does not preclude the need to have conditional zoning. Paul Eckman, the Deputy City Attorney, has explained that staff may accept the restrictive covenant, but using such a contract as the only method to disallow the habitable structures within the buffer would be considered "contract zoning" and is not permitted. A restrictive covenant may be accepted as part of the development application, but in order to legally tie the restriction to the zoning, a condition must be placed on the rezoning application. The restrictive covenant then becomes an additional tool with which the condition placed on the zoning can be tracked and enforced. Given the need to restrict any habitable structures from being developed in the wastewater plant's buffer area, and the fact that either RC or UE would require the need for a condition to be placed on the zoning, staff supports the applicants requested UE configuration which includes the wastewater plant's 1000 foot buffer area. A conditional zoning that disallows any habitable structures in the wastewater plant's 1000 foot buffer would allow either UE or RC zone to be compatible with the plant. Otherwise, the proposed zoning for the entire site is compatible with existing and • proposed uses surrounding the subject land, and is the appropriate zone district configuration. The Natural Resources Department does not consider the proposed zoning to have any adverse impacts on the natural environment. To the extent that it can be determined at the zoning stage of the development review process, staff finds that the proposed Zoning Map amendment would result in a logical and orderly development pattern because the proposed configuration of zone district boundaries would promote a transition of intensityfrom the top of the high intensity uses at the southwest corner of the site to the low intensity uses at the lower southeast corner of the site. 0 229 November 6, 2001 Initial Zoning Upon Annexation The site was annexed as part of the Timberline Annexation in November of 1997. At the time the annexation was under review, staff and the Planning and Zoning Board had recommended that the property be zoned in accordance with the configuration shown on the attachment diagram titled "Timberline Annexation and Zoning". When the annexation came before Council, they decided to zone the property T — Transition upon annexation rather than the recommended zoning configuration. Much of the concern with regard to the zoning this property at that time revolved around whether or not it would be appropriate to assign active farm areas a zone district that did not allow farming, and that perhaps it would be more appropriate to zone the property into developable zone districts at such time the property was proposed to be developed. The Council minutes of the first and second reading of the annexation hearings are attached. Planning and Zoning Board Hearings Because the applicant is requesting a Structure Plan amendment as part of the rezone request, staff couldn't support the proposed Structure Plan re -configuration without additional review time beyond the "timely hearing" schedule. The applicant voluntarily postponed the Planning and Zoning Board hearing to September 17, 2001 to give staff adequate time to review the proposed Structure Plan Amendment, which upon a detailed review, staff supported. A version of the Johnson Property Structure Plan Amendment and Rezoning was heard and voted on at the September 17, 2001 Planning and Zoning Board Meeting. The Planning and Zoning Board forwarded a recommendation to Council to approve the Structure Plan and Zoning Map amendments as redrawn in the diagram titled "Recommended Configuration by P&Z on 9117" by a vote of 5-0. Boardmembers expressed frustration that a recommendation was required to be made that night because they felt that all of the pertinent issues had not been resolved between staff and the applicant. Board members also voiced frustration about being involved in designing variations of the plan at the hearing. In the days following the September 17, 2001 hearing, staff and the applicants met to resolve the issues that the Planning and Zoning Board believed were pertinent to the justification of the proposed Structure Plan amendment. The applicants then made several design refinements based on design solutions proposed by staff, which in turn changed the proposed Structure Plan and Zoning Map configuration to be different than any scenario that had been discussed by the Planning and Zoning Board at the September 17, 2001 hearing. Rather than take a recommended zoning configuration to Council that the Planning and Zoning Board had not seen or commented on, it was staffs recommendation to the applicant that the project go back to the Planning and Zoning Board for a recommendation on the new proposed configuration. The 230 November 6 2001 •applicant again voluntarily postponed the "timely hearing" requirement to allow the issue to go back to the Planning and Zoning Board, this time for the October 18, 2001 Hearing. At the October 18, 2001 Planning and Zoning Board Hearing, the Board recommended by a vote of 4-0 to deny the Structure Plan Amendment and Rezone request as proposed by the applicant. The Board, however, did forward a recommended configuration for a Structure Plan Amendment and Rezone that it could support, by a vote of 3-1, as shown in the attached diagram titled "Recommended Configuration by P&Z on 10118. " City Manager Fischbach introduced the agenda item. Greg Byrne, CPES Director, presented background information regarding the agenda item and stated that there is general agreement among all parties on most issues. He stated that there are several issues that need to be decided by the Council. Troy Jones, City Planner, presented information regarding the approximately 220 acre site and its surroundings. He stated that the site is currently zoned T-Transition and showed an aerial photograph of the site. He spoke regarding the existing Structure Plan designations for the site and the applicant's proposal for a Structure Plan amendment. He stated that Council would need to determine that any rezoning application is consistent with the Structure Plan and that the •Structure Plan would need to be amended if it is found that the rezoning is not consistent with the Structure Plan. He stated that the proposed Resolution would amend the Structure Plan and that the proposed Ordinance would change the zoning. He stated that the Planning and Zoning Board has recommended something slightly different than the applicant's proposal. He stated that the areas of difference relate to (1) the zone district line between the Low Density Mixed Use Neighborhood and the Urban Estate Neighborhood and (2) the zoning of a corner piece. He stated that the first item for Council decision is the Structure Plan Amendment and that once that is decided the zoning needs to be decided. He outlined the two main issues in detail. He stated that staff concurs with the applicant in both points of disagreement, and he outlined the reasons for staffs recommendation regarding both issues. He noted that Council has received a memo dated November 6 regarding the two issues and that the Option 2 of the ordinance attached to that memo is recommended for adoption if Council agrees with the staff recommendation regarding the conditional zoning of the corner property. He stated that the ordinance included in the agenda would be used if Council agrees with the Planning and Zoning Board that no condition on the zoning ordinance is necessary. He stated that there are two versions of Exhibit A: (1) reflecting the applicant's proposal and (2) reflecting the Planning and Zoning Board's recommendation. He stated that the Council motion regarding the ordinance should also refer to which Exhibit is included in the motion for approval. City Attorney Roy read the new Section 2 (for either option of the ordinance) for the record: "Section 2. No habitable structures (residences, schools, and commercial structures at which people work on a regular basis) shall be permitted within one thousand feet of the existing Drake 0 231 November 6, 2001 Road Wastewater Treatment Plant, or within one thousand feet of the expansion to said plant planned by the Wastewater Utility as of the date of this ordinance, as shown on Exhibit B attached hereto." Mayor Martinez requested clarification regarding Exhibit B. Jones stated that the Exhibit is a point of clarification regarding the Wastewater Treatment Plant and its future expansion. David Johnson, representative of the Johnson family, spoke in favor of the James Company application. He stated that the family sold it property to the James Company because it is a Colorado company and because it will preserve the family homesteads and historical houses. He stated that the family found out only several months ago at a hearing about the thousand foot buffer for the wastewater treatment plant. He stated that the Urban Estate zoning with the condition would be best for everyone. Melinda Bartlett, representing the James Company, the applicant, spoke regarding the caliber of the project, the work done with regard to historic preservation, and the areas of disagreement between the applicant and the Planning and Zoning Board. She outlined the applicant's position with regard to the location of the Urban Estate line abutting a proposed roadway and the arbitrariness of the Planning and Zoning Board's recommendation to include river conservation on the wastewater plan buffer. She stated that the intent of the no -build zone would be upheld by adoption of a conditional zoning and that inclusion of a river conservation are in the treatment plan buffer would affect about 32 acres of the development and would reduce the number of units that could be placed in the Urban Estate zone area. She spoke regarding the costs of development and the need to have enough units to make the development cost effective. She requested that the City Council uphold the applicant's proposal to amend the Structure Plan as presented by City staff to include the revised location for the Urban Estate line and to eliminate the river conservation area. Jim Postle, President of James Company, stated that it is important to the developer to have a good mix of products and spoke regarding the site constraints of the proposed development. He stated that the issue of economic is important to the developer. He spoke in favor of Urban Estates zoning with the buffer condition. Councilmember Bertschy asked for clarification regarding the permitted uses and density in the Urban Estate zone. Jones stated that several types of residential, commercial and institutional uses are allowed in the Urban Estate zone. He stated that the residential development would have to be no more than two units per acre on the average and that the development could be clustered in a pod of up to five units per acre within the pod provided that 50% or more of the zone district must be preserved as open space. Councilmember Bertschy asked if the density transfer would be lost in the river corridor setting. Jones stated that if the 32.5 acres were zoned River Corridor that the remainder of the 84 acre 232 November 6, 2001 •piece would only be able to have the two units per acre and consequently about 74 units would be taken away from what would otherwise be allowed in the Urban Estate zone. Councilmember Bertschy asked for clarification regarding the issue of the location of the Urban Estate line. Jones spoke regarding the potential changes in density and allowable units. Councilmember Tharp asked about the triangle located in the middle of the development. Jones stated that is the Cargill Seed Research Farm and that staff has been working with them and other area property owners on a conceptual basis regarding what will eventually happen to those properties. He stated that this application does not propose to change the Structure Plan for the Cargill site. Councilmember Tharp asked about compatibility of the Cargill site with the surrounding housing. Jones stated that staff s opinion is that it is compatible. Councilmember Tharp asked about the potential future complaints from homeowners who will locate outside of the thousand foot buffer this close to the wastewater treatment plant. Mike Smith, Utilities Director, spoke regarding planned odor control improvements for the plant and stated that it is possible for odors outside of the thousand foot buffer under certain conditions. Councilmember Tharp expressed a concern that the residents who buy those houses will come . back to the City in the future demanding that odor from the plant be mitigated. Councilmember Hamrick asked about health and safety issues with the location. Smith stated that there are issues related to odors, airborne pathogens and hazardous materials storage on the treatment plant site. Councilmember Kastein asked about the City's long term liability with these types of issues. City Attorney Roy suggested that a brief executive session to discuss those types of issues might be appropriate. Councilmember Kastein made a motion, seconded by Councilmember Tharp, to adjourn into Executive Session to discuss legal issues relating to the subject presently pending before the Council pursuant to Section 2-31 of the City Code. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Tharp, Wanner and Weitkunat. Nays: None. I�I:lolu(711f[�7�[ a :: ("Secretary's Note: The Council adjourned into Executive Session and following the Executive Session at 9:20 p.m.) 0 233 November 6, 2001 Councilmember Hamrick asked for clarification regarding the findings that would need to be made to determine that the Structure Plan should be amended: (1) that the existing Structure Plan is in need of the proposed amendment and (2) that the Structure Plan amendment will promote the public welfare and will be consistent with the vision, goals, principles and policies of City Plans and its elements. He asked about the need for changing portions of the UE zone to L-M-N zoning. Byrne stated that the intent is to give definition to the placement of the line in area where there is no roadway or geographic feature. Councilmember Hamrick asked how this would promote the public welfare or how it demonstrates a need. Byrne stated that the public welfare will be served by an appropriate mix of uses and by appropriate location of those uses with relation to the road network. He stated that this is an effort to match the conditions on the ground with some good planning and the zoning districts. Councilmember Hamrick asked if increasing the densities closer to the wastewater treatment plant exposes more people to air quality issues. Byrne replied in the affirmative. Councilmember Tharp noted that this is current T-Transition zoning and that a fairly dense residential development will be located on this site in proximity to the wastewater treatment facility. She asked if this is the proper use for that land when taking into consideration that the wastewater treatment plant and its uses will eventually expand. She questioned whether the City should take on the additional expense for mitigating the wastewater treatment plant to serve a residential area that is not there now. She expressed a concern regarding placement of this many houses close to the existing wastewater treatment plant and asked if other Councilmembers shared this concern. Councilmember Bertschy stated that he lives about 2,500 feet from a sewage treatment plant and that he knew that when he bought the house. He stated that others live within 800 feet of the plant and that in his five years on Council he has not received one complaint regarding sewage treatment plant air quality issues. He stated that he is not concerned about the proximity issues and that staff has indicated that mitigation efforts will be done in connection with plant expansion. Councilmember Kastein stated that the proposed Structure Plan does not change a lot with regard to proximity of densities to the plant because this is not a transitional Structure Plan. He stated that the proposed Structure Plan amendment would move the zoning line slightly and noted that the UE zone has the potential to be five units per acre when clustered. He stated that the Structure Plan change is not a substantial change, and that if the Structure Plan worked before it should still work after this change. Councilmember Weitkunat stated that residential housing is located in proximity to electrical substations, oil wells and railroad tracks. She stated that homebuyers are aware of what is 234 November 6, 2001 • nearby. She stated that it is important to look at the Structure Plan in the context that when it was developed we knew that the lines were not specific. She stated that the change is consistent with the goals and vision of City Plan now that the specific development is being discussed since the Structure Plan lines were never intended to be straight, hard lines and were intended to move with topography and circumstances. She stated that it seems logical that the lines would now follow the streets. Councilmember Wanner requested clarification regarding development of the historic farm site and slope areas shown on the map. Jones stated that there might be adaptive reuse of the farm sites and that they will be preserved. He stated that the sloped areas will not be developed because they are the steepest part of the valley wall. Councilmember Wanner stated that any concerns regarding the treatment plant do not extend to the change in the L-M-N zone area because that is at least 1,400 feet from the plant. He asked for clarification about the units that would be lost to the developer if the corner property was zoned River Corridor. Jones stated that the buffer area is 32.5 acres and that this would include roughly 74 units with two per acre. Councilmember Bertschy asked if the developer took the wastewater treatment plant into consideration in the development plan. •Ms. Bartlett, representing the James Company, stated that the developer is cognizant of the issues associated with locating residential development near any type of unfavorable conditions. She stated that the developer is prepared to issue disclosures to all prospective homebuyers regarding the issues associated with proximity to the wastewater treatment plant, a railroad and arterial roadways. She stated that the developer would also consider having the homebuyers sign waivers of liability for the benefit of the wastewater treatment plant. Councilmember Bertschy asked if such disclosure would be given to anyone who would buy the home in the future. Ms. Bartlett stated that the disclosure would be included in the covenants that would run with the land. She stated that the developer has looked into preparing a pamphlet that would notify interested parties regarding conditions, issues and available remedies. Councilmember Bertschy asked if the 10-acre neighborhood park shown on the map is City owned property. Ms. Bartlett stated that it would be City owned property and that the parcel has not yet been located pending the results of the rezoning. Councilmember Weitkunat made a motion, seconded by Councilmember Tharp, to adopt Resolution 2001-155 based on 'Exhibit A - Applicant" and based on the findings that the existing Structure Map is in need of the proposed amendment based on changing conditions, historical aspects and recent issues arising with odor, and that the Structure Map does promote the public welfare and will be consistent with the visions, the goals and the principles and 0 235 November 6, 2001 policies of City Plan. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Kastein, Martinez, Tharp, Wanner and Weitkunat. Nays: Councilmember Hamrick. THE MOTION CARRIED Councilmember Weitkunat made a motion, seconded by Councilmember Wanner, to adopt Ordinance No. 190, 2001 Option 2 on First Reading based on the zoning map of "Exhibit A - Applicant" with the inclusion of a condition that no habitable structures shall be permitted within 1,000 feet of the wastewater treatment plant or its expansion thereof planned by the Wastewater Utility as of the date of this ordinance. Councilmember Bertschy asked if the motion is in a proper format. City Attorney Roy stated that the motion incorporates the condition and the Exhibit and proposal recommended by the applicant and by staff. Deputy City Attorney Paul Eckman stated that staff will provide on Second Reading a metes and bounds description of the graphic charts selected. Councilmember Bertschy stated that he would support the ordinance. He noted that one concern that has been expressed is that this increases density even though the plan does in fact fit the intent of City Plan and is the type of infill project that is being encouraged. He stated that lowering the density and not promoting good design, including the future roadway system, would be a grave mistake given the physical constraints of the site. Councilmember Hamrick stated that he would not support the ordinance because of concerns regarding the wastewater treatment plant and the clustering of neighborhoods near such a facility. Mayor Martinez stated that he would support the ordinance and thanked staff for its work on this issue. Councilmember Tharp spoke regarding the developer's attention to the issues that might be created by proximity to the treatment plant. She stated that she would support the ordinance. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Kastein, Martinez, Tharp, Wanner and Weitkunat. Nays: Councilmember Hamrick. THE MOTION CARRIED BUDGET CONSENT ITEMS 33. First Reading of Ordinance No 191 2001 Amending the Code of the City of Fort Collins to Adiust the Ca ital Improvement Expansion Neighborhood Parkland and Street 236 November 6, 2001 • Oversizing Fees for Increases Due to Increases in the Cost of Construction and Raw Water. This Ordinance increases the fee schedules for the Capital Improvement Expansion Fees and Neighborhood Parkland Fee by the change in the 2000 Denver -Boulder -Greeley Consumer Price Index. Costs in the Capital Improvement Expansion Fees ("CIEF") Study and the fee schedule for the Neighborhood Parkland Fees were calculated using costs from 1995. The relevant governing provisions of the City Code call for increases to keep up with annual inflation, and the fees were last adjusted in late 2000. This Ordinance increases the CIEF and the neighborhood parkland fees by the projected increase in the CPI-U of 4.91%. For the Neighborhood Parkland and Community Parkland fees, the fee levels are increased by $75.00 and $126.58, respectively to cover the increase in the raw water cost. The Street Oversizing fees are being increased by 5.96%, the increase in the cost of construction as reported in the Engineering News Record. 34. Items Relating to Utility Rates for 2002. A. First Reading of Ordinance No. 192, 2001, Amending Chapter 26, Article III, Division 4 Relating to User Rates and Charges for Water. • B. First Reading of Ordinance No. 193, 2001, Amending Chapter 26, Article IV, Division 4 of the Code of the City Relating to Wastewater Fees and Charges. C. First Reading of Ordinance No. 194, 2001, Amending Chapter 26, Article VII, Division 2 of the Code of the City Relating to Stormwater Fees. As proposed in the 2002-2003 budget, the three ordinances increase the City's utility rates for customers inside the city limits by 6% for water service and 2% for wastewater service. Stormwater rates increase by 45% for all customers. Electric rates do not change. The proposed changes will become effective on billings issued on or after January 1, 2002. The Water Board reviewed and recommended the rate changes in conjunction with its discussion on the 2002-2003 budget. 35. Resolution 2001-154 Adopting a Revenue Allocation Formula to Define the City of Fort Collins' Contribution to the Poudre Fire Authority Budget for the Year 2002 for Operations and Maintenance. In December 1981, the Council entered into an agreement with the Poudre Valley Fire Protection District, creating the Poudre Fire Authority. 0 237 November 6, 2001 According to the Intergovernmental Agreement between the City of Fort Collins and the Poudre Valley Fire Protection District, the City will contribute funding for maintenance and operating costs to the Authority based on a "Revenue Allocation Formula" ("RAF"). The RAF is to be set annually based upon a percentage of sales and use tax revenues (excluding dedicated sales and use tax revenues that must be spent on specific projects) and a portion of the operating mill levy of the City's property tax. Article X, Section 20 of the State Constitution limits the rate of growth to a combination of the Denver - Boulder Consumer Price Index and additions to the local property tax base primarily due to construction and annexation. Although voters passed a ballot measure in November, 1997 allowing the City to retain excess revenues over the growth limits imposed by Article X, Section 20, the RAF is still reviewed annually and proportionately reduced, if necessary, if City revenues exceed the estimated annual percentage increase in revenues that the City would be permitted to retain under Article X, Section 20. 36. Items Relating to the 2002 Downtown Development Authority Budget. A. First Reading of Ordinance No. 195, 2001, Appropriating Operating Funds and Approving the Budget of the Downtown Development Authority for the Fiscal Year Beginning January 1, 2002, and Fixing the Mill Levy for the Downtown Development Authority for 2002. The Downtown Development Authority (the "DDA") adopted the proposed DDA budget for 2002, totaling $416,740, and determined the mill levy necessary to provide for payment of all properly authorized expenditures incurred by the District, at its regular meeting of November 1, 2001. B. First Reading of Ordinance No. 196, 2001, Appropriating Revenue in the Downtown Development Authority Debt Service Fund for Payment of Debt Service for the Year 2002. This Ordinance appropriates funds for 2002 from the tax increment received by the City for the DDA for debt service payments. Debt service and annual lease payments include: the semi-annual payments of the 1992 DDA Refunding Revenue Bonds in the amount of $1,321,938, the DDA share of the Parking Structure lease payment of $282,406, the amount of $35,112 for the annual interest payment on the subordinate revenue bonds issued in 2000, and $100,000 for various projects identified by the DDA board from tax increment revenues from expanding the DDA boundaries to include the Mulberry/Lemay Crossing Property. ***END BUDGET CONSENT*** 238 November 6. 2001 •Councilmember Hamrick withdrew Item #34 Items Relating to Utility Rates for 2002 from the Budget Consent Calendar. Councilmember Bertschy made a motion, seconded by Councilmember Wanner, to adopt and approve all items not withdrawn from the Budget Consent Calendar. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Tharp, Wanner and Weitkunat. Nays: None. THE MOTION CARRIED Items Relating to Utility Rates for 2002 Adopted on First Reading_, The following is staffs memorandum on this item. "Executive Summary A. First Reading of Ordinance No. 192, 2001, Amending Chapter 26, Article III, Division 4 Relating to User Rates and Charges for Water. B. First Reading of Ordinance No. 193, 2001, Amending Chapter 26, Article IV, Division 4 of the Code of the City Relating to Wastewater Fees and Charges. • C. First Reading of Ordinance No. 194, 2001, Amending Chapter 26, Article VII, Division 2 of the Code of the City Relating to Stormwater Fees. As proposed in the 2002-2003 budget, the three ordinances increase the City's utility rates for customers inside the City limits by 6% for water service and 2% for wastewater service. Stormwater rates increase by 45% for all customers. Electric rates do not change. The proposed changes will become effective on billings issued on or after January 1, 2002. The Water Board reviewed and recommended the rate changes in conjunction with its discussion on the 2002-2003 budget. Additionally, the proposed water and wastewater ordinances eliminate the rate differences between inside and outside city customers. Historically, the rates paid by customers outside the City limits were one and one half times higher than the water and wastewater rates paid by customers inside the City limits. The cost to provide service inside and outside the City limits no longer supports the different rate levels. In 1994 Council directed staff to 'freeze" the outside City rates until the inside rates "caught up". With the proposed increases for 2002, the outside rates are now close to equivalent to rates inside the City limits and in a few cases, customers outside the City may pay less than they would on inside City rates. Staff recommends that the water and wastewater rates for customers outside the City limits be established at the same levels as for like customers inside the City limits beginning in 2002. 0 239 November 6, 2001 The table below shows the impacts of the proposed rate adjustments on a typical single family residential customer's monthly bill. Typical Residential Utility Increase Increase Customer 2001 2002 $ % Water $32.16 $34.09 $1.93 6.0% 160, 000 izal. per year Wastewater $16.19 $16.51 $0.32 2.0% (5, 600 gal./mo. WQC) Electric $31.98 $31.98 $0.00 0% (500 kWh per month) Stormwater (8,600sq. ft. lot, light $8.13 $11.79 $3.66 45.0% runoff) Total Utility Bill $88.46 $94.37 $5.91 6.7% BACKGROUND: Water If approved by City Council, water rates for all customer classes inside the City limits will increase by 6%. The increase is necessary to pay debt service for the Water Treatment Facility Master Plan and to fund the operations and maintenance of the City's water system. Separate rates for customers outside the City limits will be eliminated and customers outside of the City limits will pay the same rates as similar customers within the City limits. Historically these customers had higher rates than inside city users. A housekeeping change is also included in the water rate ordinance. The term "minimum" has been replaced by "base" in order to clarify that the fixed monthly portion of the rate is in addition to the charges for water usage. It is anticipated that future water rates will increase an average of 6% in 2003. No water rate increases are currently projected during the years 2004-2006. Wastewater This ordinance will increase wastewater rates for all customers inside the City limits by 2% in 2002. The increase is needed to fund the operations and maintenance of the City's wastewater 240 November 6, 2001 • system and to finance capital improvements. Separate rates for customers outside the City limits will be eliminated and customers outside of the City limits will pay the same rates as similar customers within the City limits. Historically these customers had higher rates than inside city users. The wastewater rate ordinance also eliminates the classification of users "Category I.• Special Without Agreement". There are no customers in this rate class and it is no longer needed. Current projections indicate an additional 2% wastewater increase in 2003. An annual 2.5% rate increase is projected for the years 2004-2006. Stormwater The proposed ordinance increases Stormwater fees by 45% for all customers. The increase is necessary to fund the operations and maintenance of the City's stormwater system, to pay debt service and to accelerate the citywide capital improvements program. Current projections indicate an annual 10% increase will be necessary in the years 2003 and 2004, 7% in 2005, and 6% in 2006 The proposed rate increases are in accordance with the Stormwater Financing Plan adopted by City Council Resolution 2001-93. The ordinance also eliminates the minimum monthly bill for stormwater service. The minimum • applied to only five customers with lot sizes less than 380 square feet. This is a housekeeping change to simplify administration of the rates. Electric No electric rate increases are projected for 2002 or 2003. It is currently projected that a 2% increase may be necessary in 2004 and in 2006 Summary Although it has been necessary for the City to raise utility rates over the years, a comparison with inflation shows that increases to the total City utility bill for a typical residential customer have been less than inflation since 1985. The following graph shows the overall increases in monthly utility charges for a typical single family residential customer in comparison with inflation. The typical residential customer is defined as electric use of 500 kWh per month, metered water use of 160, 000 gallons per year, wastewater with 5,600 gal./mo. winter quarter consumption, and stormwater for a 8,600 sq. ft lot with light runoff. 0 241 November 6, 2001 City Manager Fischbach introduced the agenda item. Councilmember Hamrick asked how the typical single-family residential customer's monthly bill is defined and whether it is an average. Dave Agee, Utilities Chief Financial Officer, stated that the following averages are used: 160,000 gallons of water per year, 5,600 gallons for wastewater for winter quarter consumption, 500 kilowatt hours per month for electricity, and an 8,600 square foot lot with light runoff coefficient for stormwater. Councilmember Hamrick asked if the average is determined by looking at all customers. Agee stated that staff uses amounts that are typically used in the industry for comparative data and that City rates are then applied to this amount of use. Councilmember Hamrick asked if the majority of homeowners in Fort Collins are above or below these usage amounts. Agee stated that staff has not looked at this issue in this way. $120 $100 $80 $60 $40 $20 $0 Fort Collins Utilities Compared with Inflation (Typical Residential Customer with Electric, Metered Water, Winter Quarter Wastewater, and Stormwater) 1985 1990 1995 Total Utility Bill 2000 2001 Proposed +Inflation 2002 Collins customers. Mike Smith, Utilities Director, stated that this information available for electric customers but that not all customers are metered for water use. that there has been growth in electric usage because of air conditioning. Council member Hamric k requeste d further informat ion prior t o Second Reading about t h e average for Fort would be He stated Councilmember Tharp noted that a 6% increase is proposed for 2002 and another 6% increase is proposed for 2003 to cover debt service although the Water Board minutes indicate that the projected revenue exceeds the debt service requirement. She asked for clarification regarding whether it is required to raise the water rate to cover debt service. City Manager Fischbach suggested that staff prepare an answer to this question prior to Second Reading. He noted that revenue bonds require coverage factors of 1.4%. 242 November 6, 2001 •Councilmember Tharp expressed a concern with steep monthly billing increases. She stated that she would like to see the City do something to control costs over the next few years. Councilmember Tharp expressed a concern regarding the level of increase for primary services that will add to the taxpayer's burden. Agee stated that the intent of meeting the revenue coverage is to meet and exceed the coverage because some pledged revenue is plant investment fees. He stated that the increase would not be requested if it was not needed. Mayor Martinez asked if fees can exceed the costs to the City to provide services. City Attorney Roy stated that fees can not exceed costs. Councilmember Wanner made a motion, seconded by Councilmember Kastein, to adopt Ordinance No. 192, 2001 on First Reading. Councilmember Hamrick stated that he would not support the motion because of the implication for the increases in fees for utility bills for the average citizen. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Kastein, Martinez, Wanner and Weitkunat. Nays: Councilmembers Hamrick and Tharp. THE MOTION CARRIED • Councilmember Bertschy made a motion, seconded by Councilmember Weitkunat, to adopt Ordinance No. 193, 2001 on First Reading and to adopt Ordinance No. 194, 2001 on First Reading. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Tharp, Wanner and Weitkunat. Nays: None. Ordinance No. 197, 2001 Being the Annual Appropriation Ordinance Relating to the Annual Appropriations for the Fiscal Year 2002 and Adopting the Budget for the Fiscal Years Beginning January 1, 2002, and Ending December 31, 2003, and Fixing the Mill Levy for Fiscal Year 2002 Adopted on First Reading. The following is staffs memorandum on this item. 0 243 November 6, 2001 "Financial Impact This Ordinance represents the annual appropriation for fiscal year 2002, and adopts the total City Budget for fiscal year 2002 at $439,139,184 and for fiscal year 2003 at $444, 933, 617. This Ordinance also sets the City mill levy at 9.797 mills, unchanged since 1991, for fiscal year 2002. Executive Summary There have been three study sessions involving discussion of the 2002-2003 budget for the City of Fort Collins. In addition, two public hearings were held along with input from the boards and commissions of the City to aid in the development of the budget. From City Council direction and the input from the public and boards and commissions, the City of Fort Collins 2002-2003 Biennial Budget was developed and is now presented to City Council for consideration and adoption and to appropriate the necessary monies to fund the budget for fiscal year 2002. The Second Reading of this ordinance is scheduled for November 20, 2001. The net City budget, which excludes internal transfers between funds is $293,215,561 for 2002 and $293, 078, 557 for 2003. The net City budget is allocated to: 2002 2003 Operations $249,243,771 $250,632,623 Debt Service $ 6,143, 736 $ 4,626,459 Capital $ 37,828,054 $ 37,797,475 This ordinance also sets the 2002 City mill levy at 9.797 mills, unchanged since 1991. BACKGROUND: The development of the 2002-2003 budget began in March of this year. Input for development of the budget was received from two official public hearings, as well as through other citizen participation, and from the City's boards and commissions. Three budget study sessions were held. Acknowledging the input of the public and the boards and commissions, Council directed that the following service additions be included in the 2002-2003 budgetfor the City. 2002 Onizoin One-time On oin Primary Services: 1. New Office Building O&M $114, 000 2, Major Facilities Maintenance $200,000 $343,000 $200,000 3. Utility Cost Increase $120,165 $20,700 4. Development Review (a) $300, 000 5. B&ZAdminAide $57,504 $26,700 244 2003 One-time $215,000 $32,000 $300.000 • November 6, 2001 6. Plans Analyst $94,874 $68,174 7. Affordable Housing Production $222,047 $272,474 8. Affordable Housing Land Bank $500, 000 $500, 000 9. City Plan Update $300,000 10. Downtown Strategic Plan $100, 000 11. Parks Maintenance $92,600 $43,600 $640,900 5437,800 12. Second Sheet oflceO&M $254,590 $57,060 13. Police Staffing $648,379 $267,088 $666,014 $273,418 14. Police Operations $150,000 15. Communications Center (Police) $100,000 16. New Police Bldg Set -aside $320, 000 $320, 000 17. Pavement Management $300,000 $1,701,866 $300,000 $1,821,370 18. Storm Clean-up Payback $150,000 $150,000 19. Graffiti Reporting $13,000 20 Transportation Master Plan Update $325,000 Total Primary Services $2,117,530 $4,372,293 52,674,678 $3,854,822 Secondary Services: 21. Library Special Services 22. July 4th Celebration 23. Soft Gold Park Development 24. Human Rights Coordinator 25. Transit DAR/ Route 9 Expansion Total Secondary Services Support Services: 26. Rebate Program 27. Contractual Sales Tax Rep. 28. Recruitment Ad Budget 29. Real Estate Services 30. IT Basic Infrastructure 31. E-Commerce Infrastructure 32. GIS Strategic Plan 33. Communication Programs 34. Cable Programming 35. Special November Elections 36. Community Liaison Coord. 37. City Council Expenses 38. Regular Municipal Election 39. Humane Society 40. Island Grove Services 41. Human Services Contract (b) Total Support Services Total Addidans/Enhancements $49, 543 $11, 700 $30,000 $200,000 $57, 798 $57, 798 $160,000 $160,000 $79,543 $440,498 $0 $217,798 $45, 000 $30,000 $45, 000 $50,000 $20,000 $82,243 $10,000 $25,000 $92, 500 $45,350 $50,000 $10,000 $22, 474 $50,000 $50,000 $20,000 $92,208 $92, 500 $180,000 $10,760 $11,190 51,400 $1,500 $14,791 $15,383 $274, 775 $329, 743 $48, 073 $414, 708 $2,471,848 $5,142,534 $2,722,751 $9,629,862 0 245 November 6, 2001 Resources Available $2,475,974 $2,722,751 $9,676,552 Net Available $4,126 $0 $46,690 NOTE: (a) None of the monies recommended will be spent until a more definitive plan is prepared by the City Manager and review with City Council. (b) This is a 4% increase similar to other Contract Agencies 439 and #40). This item was overlooked on the original recommended service enhancement list. 2002 and 2003 Budget Adjustment There has been interest from both the public and Council to advance the schedule of the Building Community Choices (BCC) North College Corridor project. As originally scheduled, the project would be scheduled for construction in 2005. Cash flow over the 0.25 cent BCC tax projections allows the City the opportunity to accelerate the North College project schedule for construction to begin in 2003. This adjustment does not affect the schedule for other projects within the BCC Streets and Transportation package nor does the adjustment affect the projected balance at the completion of the voter approved BCC package. To accomplish the advanced schedule for the North College project, the budget for 2002 (BCC Streets and Transportation package in the Capital Projects Fund) and the appropriation to fund fiscal year 2002 has been increased by $238, 447 for design and right-of-way costs. In addition, $2,016,854 has been added to the 2003 budget. These adjustments have been made to the Ordinance presented to Council in this agenda item for adoption. 2003 Budget Exception Process Council has discussed a number of service enhancements during this budget process. These items will be put on a `priority" list to be considered during the 2003 budget exception process. These items are (not in priority order): 1. Humane Society (what changes are necessary) 2. Transit services (such as Southside Shuttle/Harmony Corridor route) 3. Library services (Youth Services Librarian at the Harmony Library) 4. Land Banking Monies (do we continue to fund after the `performance audit" is completed?) 5. Community Separators Program (what will be needed after the studies are completed?) November 6, 2001 • 6. Development Review Center (what will be the needs be for a center? Will additional fees help offset the increased costs?) Staff will continue to monitor revenue collection throughout 2001 as well as analyzing revenue projections for the years 2002 and 2003. Any revision of revenue projections (whether up or down) will be included as part of the 2003 exception process. " Councilmember Wanner made a motion, seconded by Councilmember Weitkunat, to adopt Ordinance No. 197, 2001 on First Reading. Councilmember Bertschy stated that Council has received comments and correspondence from the public regarding the implications of the economic downturn. He noted that a memo has been received from the City Manager regarding the approximately $5 million in reserves, and he questioned whether this is enough. City Manager Fischbach stated that his memo indicated that staff is pleased with the results of the September sales tax collections because it had been anticipated that sales tax revenue would be hit hard because of the September I 1 attacks and their aftermath. He stated that the final figures indicate that the total sales tax collections were down 1.74% compared to a year ago. He stated that this is a decrease of $83,000 for the month. He stated that use tax collections were up 15.2% compared to a year ago, that the return use tax collections were up nearly 43%, car tax was up 14%, and the audit program produced $300,000 •this month. He stated that year to date sales tax collections are up 6.56% over the same period of a year ago, use tax collections are up 33.7% over last year, and that two large manufacturing expansion payments have been received. He stated that total collections for the year are up 11.26% or $6.1 million higher than last year. He stated that there is reason for caution. He stated that if the City's collections are zero percent growth for the next two months that final collections will be about $71.4 million, which would be higher than the budget projection. He stated that the City's strengths include the Wal-Mart expansion, Colorado State University's record enrollment, the expansion along the Harmony Corridor, a successful year for sales and use tax collections and the sales tax audit program, new jobs in the Colorado economy, and the continuing creation of small companies. He stated that staff will monitor the City's weaknesses, including economic problems and layoffs in the manufacturing sector, the fact that building permits may be up only because of the two large expansions, and the possibility that it will be difficult to sustain the audit program at this year's level. He stated that staff is cautiously optimistic. He stated that there is a financial uncertainty fund that is required by the City's financial policies to be at 3.5% of the General Fund and that it is currently at 5.7%. He stated that this is intended to cushion the City against any economic downturn and to provide time to adjust expenditures to meet specific situations. He stated that staff is also developing a plan to deal with the economic situation should it worsen more than anticipated. He stated that the City will continue to monitor all economic indicators, which at this time point up. 0 247 November 6, 2001 Councilmember Kastein suggested that the City Manager provide more information to the Council Finance Committee regarding the economic indicators being monitored and the plan that would address a worsening economic situation. Councilmember Bertschy requested additional information prior to Second Reading and noted that he was considering a motion to increase the contingency fund to provide an additional cushion. He asked for information regarding the impacts of such a motion as well as reasons for and reasons against such an action. He expressed a concern regarding public perceptions about the economic downturn. Councilmember Tharp expressed concerns regarding the level of City spending and stated that this is not a conservative budget. She stated that the budget is an 8.8% increase, which is double the rate of inflation and expressed a concern regarding employee increases. She asked how this escalating level of spending can be justified and asked if Council should not look at the excess reserve as a savings account to be used for major projects such as roads to reduce the amount of new tax money needed for roads. She questioned whether the Council is getting good revenue projections when the City continues to have excess revenues. She noted that a mill levy increase is being adopted and that because of the increased assessed valuation of property more tax money will be brought into the City. She asked if Council should consider a major policy decision as to how the additional money is spent rather than simply adding it to the General Fund. She stated that this money could be set aside instead for costly roads. She stated that she has asked many questions during the budget process and the only result has been minor tinkering with the budget. She stated that the basic direction of City spending has not been changed. She expressed a concern that some budget questions are addressed in a public forum and that others are answered in e-mail discussions away from the public forum. She stated that she has asked a number of questions regarding the police budget because it showed an increase of 17.6% and the communications and technology budget that showed an increase of 28%. She stated that both items have reasonable explanations. She stated that her concern is how the City will measure the results of an increase of $3 million to the police base budget and an additional $840,000 in enhancements over the next two years. She expressed a concern that there is no data to show the results of adding to the police budget last year. She spoke regarding the citizen input regarding the necessity of having an adequate transit system and stated that funds have not been included for proper staffing for environmental compliance, pollution control or energy conservation. She stated that she is not in favor of increasing Council's expense account. She noted that there is nothing in the budget to address the Buckingham -Alta Vista curb sidewalk issue or the need for a children's librarian at the Harmony branch. She stated that there is still a $300,000 line item for the development review process although more than one Councilmember objected to this. She noted that there is also an expensive price tag for the update of the transportation plan. She stated that because of all of these concerns she would not be voting in favor of the budget. She stated that in the next budget cycle she would be looking for staff to present a tighter budget; a clearer explanation of revenue sources, increased fees and capital projects; and more response to 248 November 6, 2001 •Council direction. She stated that this budget does not reflect a close watch on tax spending and does not reflect her priorities. Councilmember Hamrick stated that he supported much of Councilmember Tharp's comments. He stated that he would like to see the impact of having additional funding go into reserves. He stated that he does not support funding for a development review center, that he would like to see a focus on pollution prevention, that he would like more information regarding the pilot process that was done in connection with the Natural Resources request for another planner to deal with land use standard compliance and development regulation adjacent to natural areas, that he has concerns regarding the separator program and the fact that not all of the money that was appropriated for the Timnath-Windsor separator study was expended for the study, that there was money appropriated for the Fort Collins -Wellington separator and no money has been spent from the appropriated funds, and that he would like figures on what it would cost to implement the separators. He stated that he has additional questions and would express those in an e-mail at a later time. Councilmember Kastein stated that he is comfortable with the proposed budget even though he had many questions throughout the budget review process. He noted that questions are asked of staff to resolve issues and that if further direction is sought that the issue must be brought back to Council. He stated that such issues should be resolved long before the budget is in front of Council for approval. He stated that consensus needs to be built on budget issues and that he felt isthat there is consensus on the budget because issues have been discussed throughout the process. He stated as an example that there was discomfort on Council with the development review center and that the consensus was to put the money into the budget for that item and that the City Manager would come back to Council with information regarding how the money would be used when it was time for appropriation. He stated that no dissension was indicated when that solution was discussed at the Study Session. Councilmember Wanner agreed with Councilmember Kastein's statement. He stated that it is important when Council has disagreements that budget issues are resolved in study sessions. He stated that it is not the time to bring up new questions late in the year when there are deadlines for adoption of the budget. He stated that these questions have been brought up during the budget process and have appeared to be resolved. He stated that Councilmember Bertschy's questions regarding the economic downturn are appropriate because of recent events and some of the other questions that were asked should have been pursued more firmly and resolved during the budget discussion sessions. Councilmember Tharp stated that the issues she raised were brought up during the budgeting process and that these issues were not resolved to her satisfaction. She stated that her position on some issues does not necessarily change just because there is no support for her position from other Councilmembers. She stated that she wants the citizens to know that she raised the issues that remain a concern for her. She noted that she is a minority opinion at this point on these 0 249 November 6, 2001 issues and wishes to acknowledge that her position has not changed regarding some of the issues that have been discussed. Councilmember Hamrick stated that he would like to see the Climate -Wise funds be ongoing rather than one-time and that he would like to see the diversion of $85,000 from the sports field preparation project to other uses. Councilmember Kastein asked if Councilmember Hamrick would like Council direction regarding these issues. Councilmember Hamrick stated that these types of ideas were items that he would like to have seen incorporated into the budget throughout the process and that it is not always clear about how consensus can be reached to accomplish these types of revisions. Mayor Martinez stated that the protocol regarding line items is that the Councilmember who has concerns regarding the budget item must obtain support from at least two other Councilmembers for the change. He stated that revisions can not be made at the direction of a single Councilmember and that direction to staff must come from the Council as a whole. He stated that Council's role in the budget process is to look at the larger picture and that the role of the City Manager is to make the budget work in accordance with Council's overall direction regarding the level of service that should be provided. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Warmer and Weitkunat. Nays: Councilmember Tharp. THE MOTION CARRIED Adjournment Councilmember Bertschy made a motion, seconded by Councilmember Wanner, to adjourn to November 13, 2001 at 6:00 p.m. to conduct the annual evaluations of the City Attorney, City Manager and Municipal Judge. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Tharp, Wanner and Weitkunat. Nays: None. THE MOTION CARRIED 250 • The meeting adjourned at 10:35 p.m. ATTEST: City Clerk • Mayor x 251 November 6, 2001