HomeMy WebLinkAboutMINUTES-05/06/2008-RegularMay 6, 2008
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, May 6, 2008, 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: Brown, Hutchinson, Manvel, Ohlson, Poppaw, and Roy.
Councilmembers Absent: Troxell
Staff Members Present: Atteberry, Krajicek, Roy.
Citizen Participation
Eric Sutherland, 631 LaPorte Avenue, urged Council to develop a strong policy for renewable energy
use and to stop using renewable energy credits as part of the renewable energy portfolio.
Trevor Trout, 2801 Eagle Drive, ASCSU, asked Council to reassess boarding house permits to
expand zoning criteria to allow more boarding houses in City neighborhood.
Tiffany Stoddard, 3301 Academic Village, ASCSU, asked when the 3-unrelated ordinance would
be reviewed by the City to determine its effectiveness and requested the review be done two years
after the ordinance went into effect.
Jessica Moseley, 2120 Timber Creek Drive, ASCSU, stated the zoning areas for boarding house
permits needs to be expanded. She supported a two-year review of the 3-unrelated ordinance.
Andy Shank, 511 Garfield, ASCSU, stated more boarding house permits should be allowed to
provide more affordable housing in Fort Collins.
Jerry Gerber, 945 Maple, urged Council to adopt a resolution calling for the withdrawal of U.S.
troops from the war in Iraq.
Taylor Dunn,1131 Timber Lane, stated the 3-unrelated ordinance and the zoning for boarding house
permits should be revised to allow more flexibility for people that live in rental property.
Citizen Participation Follow-up
Councilmember Brown asked for a review of the 3-unrelated ordinance in January 2009, after it has
been in effect for two years.
01 1
Councilmember Ohlson stated the review should not occur until two full school years had been
completed as the ordinance took effect in the middle of a school year.
Councilmember Roy stated 22 boarding house permit applications have been submitted to the City
and all were approved.
Agenda Review
City Manager Atteberry stated there were no changes to the published Agenda.
CONSENT CALENDAR
6. Consideration and Approval of the Minutes of the April 1 and April 15, 2008 Regular
Meetings, and the April 8 and April 22, 2008 Adjourned Meetings.
Second Reading of Ordinance No. 040, 2008, Appropriating Unanticipated Revenue in the
Capital Projects Fund - City Park South Ballfreld Redevelopment Capital Project to Convert
the Use of the Field from Softball to Baseball.
Colorado State University, the Fort Collins Foxes Baseball Club (a semi-professional
baseball team) and the Fort Collins Baseball Club have approached the City Parks Division
with a proposal to redevelop City Park South Ballfield into a hardball field. City Park South
was originally a hardball field until approximately 10 years ago, when it was converted to
softball. New softball fields at Fossil Creek and Spring Canyon Parks allow for the
conversion of City Park South to hardball because there are now enough softball fields to
accommodate the demand.
Estimates for the conversion are $245,706 and include a 20% contingency. CSU has agreed
to pay these costs. The City's Parks Department will manage the project. This Ordinance,
unanimously adopted on First Reading on April 15, 2008, appropriates the revenue for this
Project.
8. Postponement of Second Reading of Ordinance No. 041, 2008, Amending Section 2-272 of
the City Code Pertaining to the Duties and Functions of the Land Conservation and
Stewardship Board to May 20, 2008.
This Ordinance, unanimously adopted on First Reading on April 15, 2008, modifies the
duties of the Land Conservation and Stewardship Board as contained in Section 2-272 of the
City Code. The proposed modification will broaden the scope of the Board's functions to
include review of City plans or projects, or projects or those of other public or private entities
that could have some impact on properties owned by the Natural Areas Program, or of
interest to the Program, if such review was requested by either the City Manager or the City
Council.
Staff is asking that Second Reading ofthis Ordinance be postponed to May 20, 2008 to allow
time for additional staff work.
291
May 6, 2008
9. First Readina of Ordinance No. 042, 2008, Authorizing the Transfer of Existing
Appropriations from the Street Oversizing Fund to the Capital Projects Fund for Building
on Basics - Harmon. Seneca to College Avenue Proiect.
West Harmony Road is a major east -west arterial route in the City of Fort Collins. The
project area has seen substantial residential and commercial development in recent years and
also serves the major destinations of Front Range Community College and the Harmony
Library. Numerous sections of the corridor have been widened, but due to substantial gaps,
the roadway generally functions as a two-lane street through most of this section. Many
sections also lack adequate sidewalks and bike lanes. The Harmony/Shields intersection
produces long delays and has one of the highest accident rates in the City. For these reasons,
improvements to this corridor have been prioritized by the City of Fort Collins.
The proposed improvements include widening West Harmony Road between Seneca and
College Avenue to 4-lane arterial street standards including bike lanes, sidewalks and a
reconstruction of the Harmony/Shields intersection. Construction is planned in 2008 for
West Harmony from Seneca to the Burlington Northern Railroad, including the
Harmony/Shields intersection.
10. First Reading of Ordinance No. 043, 2008, Appropriating Prior Year Reserves in the General
Fund to Purchase Property Located at 225 Maple Street.
The City has acquired all of Block 32, with the exception of the property at 225 Maple Street.
The Civic Center Master Plan includes two City office buildings on this block. The new
office building has not been planned, but this property will be used either as the building site,
a parking garage, or a park adjacent to the new building. In order to proceed with this
transaction, staff is requesting Council to approve the appropriation of funds necessary to
acquire the property and pay associated expenses for the purchase.
11. Ordinance No. 044, 2008, Authorizing the Conveyance of Real Property Located at the
Utility Service Center to an Adjacent Property Owner at 525 North Whitcomb Street.
To compensate for a historical encroachment by a neighboring property at 523 North
Whitcomb, the property owners at 525 North Whitcomb Street wish to purchase from the
City a small offsetting portion of Lot 1 of the Utility Service Center development, located
immediately adjacent and north of 525 North Whitcomb Street.
The owners of 525 North Whitcomb intend to sell a portion of their property to the neighbor
at 523 North Whitcomb to correct the encroachment. In order to maintain the size of their
own lot, the owners of 525 North Whitcomb asked the City to convey to them a strip of
adjacent Utility property 7 feet wide and 140 feet long (980 square feet). This amount may
be revised (downward) to address existing City improvements and desired buffers.
292
May 6, 2008
12. First Reading of Ordinance No. 045, 2008, Authorizing the Conveyance of Non-exclusive
Drainage Easement Interests and a Temporary Construction Easement for a Drainage
Channel for J-B Investments. Inc., on a Portion of the City -Owned Timnath Community
Separator.
J-B Investments, Inc., owner of approximately 52 acres located in the southeast quadrant of
the intersection ofI-25 and Prospect Road, is requesting 4 non-exclusive drainage easements
on, over, and across the 105 acre City of Fort Collins property formerly known as the Vangbo
Property, located in the Timnath Community Separator Area on the east side of the I-25 East
Frontage Road. In addition, J-B Investments is requesting a 20-foot temporary construction
easement adjacent to the 30-foot drainage easement contiguous to the northern boundary.
The requested easements are necessary for J-B Investments to meet Larimer County's
development requirements for its 52-acre property to the north of the easement area. The
drainage easement is necessary to accommodate historic drainage from the proposed
development.
13. Resolution 2008-039 Authorizing the Lease of a Portion of City -Owned Property Located
at 200 West Mountain Avenue, Suites A and B. For Up to Two Years As Part of the Fort
Collins Public Access Network ("FC-PAN").
FC-PAN is the City's designated public access provider. One of its responsibilities, as
required by the City, is to provide and operate a Community Media Center. Operations
Services has identified 449 square feet of City -owned space at 200 West Mountain Avenue
that is available for this purpose and is contracting with FC-PAN for its use. Details of the
agreement are as follows:
The City will provide temporary space for the Community Media Center.
Year One: 449 square feet of space and utilities provided at no cost.
Year Two: 449 square feet of space provided at no cost; FC-PAN pays for
utilities (approximately $65 per month).
14. Resolution 2008-040 Authorizing the Lease of a Portion of City -Owned Property Located
at 200 West Mountain Avenue, Suites A and B, for Up to Two Years As Part of the Rocky
Mountain Innovation Initiative ("RMIZ") Program.
Since Summer 2004, the City has leased space to Rocky Mountain Innovation Initiative
("RMIZ") Program and its participating companies. Currently, RMI2 leases space at 200
West Mountain, Suite C and 321 Maple Street. With the City's Natural Resources Office
move to 215 Mason Street, Suites A and B are now vacant. This Ordinance authorizes the
lease of the vacated Suites A and B to RMI2.
293
May 6, 2008
15. Resolution 2008-041 Authorizing the City Manager to Enter into an Intergovernmental
Agreement with the Colorado Water/Wastewater Agency Response Network (CoWARN),
The Resolution authorizes the City Manager to enter into an intergovernmental agreement
provided by the Colorado Water/Wastewater Agency Response Network (CoWARN) with
CoWARN members to provide and/or receive assistance during an emergency situation.
CoWARN members are other Colorado public and private utilities providing water and
wastewater service. This agreement will not interfere or adversely affect the
water/wastewater operations within the City of Fort Collins.
16. Resolution 2008-042 Amending Resolution 2008-023 Pertaining to the Training Program
of Board and Commission Members.
This Resolution modifies the training requirements for members of City boards and
commissions so as to reduce the number of times that appointees need to attend the training.
17. Resolution 2008-043 Appointing Councilmember Lisa Poppaw to Serve as a City
Representative on the Board of Directors of Beet Street.
This Resolution authorizes Councilmember Lisa Poppaw to represent the City as a member
of the Board of Directors of the Beet Street nonprofit corporation.
18. Resolution 2008-044 Making Appointments to the Community Development Block Grant
Commission and the Telecommunications Board.
Two vacancies currently exist on the CDBG Commission due to the resignations of Autumn
Kiser and Cynthia Torp. Councilmembers Manvel and Roy reviewed the applications on file
and are recommending David Carr and Phil Majerus to fill the vacancies with terms to begin
June 1, 2008 and set to expire on December 31, 2009 and December 31, 2010 respectively.
Two vacancies currently exist on the Telecommunications Board due to the resignations of
Ted Funk and Wayne Wiemerslage. Councilmembers Roy and Ohlson reviewed the
applications on file and are recommending Eve Klopf and Jason Rist to fill the vacancies
with terms to begin immediately and set to expire on December 31, 2009 and December 31,
2010 respectively.
***END CONSENT***
Ordinances on Second Reading were read by title by City Clerk Krajicek.
Second Reading of Ordinance No. 040, 2008, Appropriating Unanticipated Revenue in the
Capital Projects Fund - City Park South Ballfield Redevelopment Capital Project to Convert
the Use of the Field from Softball to Baseball.
294
May 6, 2008
23. Second Reading of Ordinance No. 031, 2008, Amending Chapter 23, Article III of the City
Code for the Purpose ofAdding a Division Regarding Encroachment Permits forNewsracks.
Ordinances on First Reading were read by title by City Clerk Krajicek.
9. First Reading of Ordinance No. 042, 2008, Authorizing the Transfer of Existing
Appropriations from the Street Oversizing Fund to the Capital Projects Fund for Building
on Basics - Harmony, Seneca to College Avenue Project.
10. First Reading ofOrdinance No. 043, 2008, Appropriating Prior Year Reserves in the General
Fund to Purchase Property Located at 225 Maple Street.
11. Ordinance No. 044, 2008, Authorizing the Conveyance of Real Property Located at the
Utility Service Center to an Adjacent Property Owner at 525 North Whitcomb Street.
12. First Reading of Ordinance No. 045, 2008, Authorizing the Conveyance of Non-exclusive
Drainage Easement Interests and a Temporary Construction Easement for a Drainage
Channel for J-B Investments, Inc., on a Portion of the City -Owned Timnath Community
Separator.
22. First Reading of Ordinance No. 046, 2008, Re -authorizing the Issuance and Sale by the City
of Fort Collins, Colorado of Variable Rate Economic Development Revenue Bonds, Series
2008a (Custom Blending, Inc. Project) and of Taxable Variable Rate Economic Development
Revenue Bonds, Series 2008b (Custom Blending, Inc. Project) in the Combined Aggregate
Principal Amount Not to Exceed $5,000,000 for the Purpose of Financing the Acquisition,
Construction and Equipping of a Manufacturing Facility in the City of Fort Collins,
Colorado, and to Pay Certain Costs of Such Bond Issue; Approving and Authorizing
Execution of a Trust Indenture, Loan Agreement, Promissory Note and Bond Purchase
Agreement with Respect to the Bonds; Making Findings and Determinations with Respect
to the Project and the Bonds; Authorizing the Execution and Delivery of Related Documents;
and Repealing All Action Heretofore Taken in Conflict Herewith.
24. First Reading of Ordinance No. 047, 2008, Appropriating Prior Year Reserves in the General
Fund for Review and Analysis of the Draft Environmental Impact Statement for Northern
Integrated Supply Project.
25. First Reading of Ordinance No. 048, 2008, First Reading of Ordinance No. 048, 2008,
Authorizing the Lease of a Portion Of Running Deer Natural Area To Hageman Earth Cycle,
Inc.
295
May 6, 2008
26. Items Relating to the Adoption of the 2006 International Building Code (IBC), 2006
International Energy Conservation Code (IECQ and Local Amendments.
A. First Reading of Ordinance No. 049, 2008, Amending Chapter 5, Article II, Division
2, of the City Code for the Purpose of Adopting the 2006 International Building
Codeg, with Amendments.
B. First Reading of Ordinance No. 050, 2008, Amending Chapter 5, Article II, Division
2, of the City Code For the Purpose of Adopting the 2006 International Energy
Conservation Code®, with Amendments.
Councilmember Manvel made a motion, seconded by Councilmember Roy to adopt and approve
all on the Consent Calendar. Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, and Roy. Nays:
none.
THE MOTION CARRIED.
Consent Calendar Follow-up
Councilmember Roy congratulated Councilmember Poppaw on her appointment as Council
representative to the Board of Directors of Beet Street.
Councilmember Ohlson stated improving Harmony Road from Seneca to College Avenue has been
a proposed project for many years and will finally get underway. He asked for any negative impacts
that might occur with the easements granted across the portion of the City -owned Timnath
Community separator. He stated the lease to support the Fort Collins Public Access Network (FC-
PAN) was good for the community. He stated by providing the lease of City -owned property, the
City was partnering with the Rocky Mountain Innovation Initiative Program which provides space
and support for starting companies to allow them to grow. This was good for the economic health
of the City.
Staff Reports
City Manager Atteberry noted the Natural Areas Program recently received a $153,000 grant from
the Pulliam Charitable Trust to be used for projects at the Bobcat Ridge Natural Area.
City Manager Atteberry stated the Northside Atzlan Community Center has earned Gold "LEED"
certification which is a high standard that is environmentally progressive, provides water and energy
savings.
Jeff Scheick, Planning Development and Transportation Director, stated new signage will be used
for capital improvement transportation projects and is designed to give information about the project.
Councilmember Roy asked for an explanation of Gold "LEED" certification and the cost savings
over the life of a building.
296
May 6, 2008
Councilmember Ohlson stated the Pulliam family has given other gifts that have been used for the
Bobcat Ridge Natural Area and he thanked them for their generosity.
Councilmember Reports
Councilmember Poppaw attended a cycling event that highlighted the active bicycling community
in Fort Collins, the Riffenburgh Elementary School Arbor Day celebration and the CSU Police
Services Awards that honored excellence in service.
Councilmember Manvel attended the Regional Air Quality Council in Denver where the discussion
centered on decreasing volatile organic compounds to lower ozone readings.
Ordinance No. 046, 2008,
Re -authorizing the Issuance and Sale by the City of Fort Collins, Colorado of Variable
Rate Economic Development Revenue Bonds, Series 2008a (Custom Blending, Inc. Project)
and of Taxable Variable Rate Economic Development Revenue Bonds, Series 2008b
(Custom Blending, Inc. Project) in the Combined Aggregate Principal Amount Not to
Exceed $5,000,000 for the Purpose of Financing the Acquisition, Construction and
Equipping of a Manufacturing Facility in the City of Fort Collins, Colorado, and to Pay
Certain Costs of Such Bond Issue; Approving and Authorizing Execution of a Trust
Indenture, Loan Agreement, Promissory Note and Bond Purchase Agreement with Respect
to the Bonds; Making Findings and Determinations with Respect to the Project and the
Bonds; Authorizing the Execution and Delivery of Related Documents; and Repealing All
Action Heretofore Taken in Conflict Herewith. Adopted on First Reading
The following is staff's memorandum on this item.
"EXECUTIVE SUMMARY
On March 4, 2008 the City Council adopted Ordinance No. 02Z 2008, authorizing the issuance of
variable rate economic development bonds for Custom Blending, Inc. That Ordinance provided
Custom Blending a "60 day window, " beginning on March 14th, to issue bonds. As a result of
difficult financial markets and ongoing negotiations related to the site, the bond issue has been
delayed and will not be completed by May 13th. This Ordinance will re -authorize the bond issuance
and provide Custom Blending a new "60 day window " beginning May 30th to issue the bonds.
This Ordinance will re -authorize the issuance of an amount not to exceed $5, 000, 000 of economic
development revenue bonds for the Custom Blending, Inc. project (a small manufacturing company)
from the annual statewide allocation the City receives. This is not the receipt of dollars, but the
right to issue tax exempt bonds for purposes prescribed in the Internal Revenue Code by the federal
government. Economic development revenue bonds are one type of bond that can be issued for
private activity purposes. For fiscal year 2008, the City of Fort Collins received a private activity
bond allocation of $5, 504, 218. These bonds are not an obligation of the City of Fort Collins.
297
May 6, 2008
Custom Blending, Inc. relocation and expansion on a site within the City limits will result in
additional property taxes for the City as well as use tax on construction materials and equipment
purchases. The prospect of additional manufacturing jobs also provides economic benefit.
BACKGROUND
The Project
Under the federal and state laws governing the use of tax-exempt private activity bonds, the City
may issue the bonds, but may not use its own revenues to support the project. The project will
generate the revenue required to repay the bonds. In the event the project does not generate
sufficient revenue, the bondholders may request payment from the letter of credit provider or the
insurer of the transaction. The total amount of private activity bonds to be issued will not exceed
$5,000,000. The project proponent, CBI Real Estate Holdings, LLC, a Colorado limited liability
corporation, may use its resources to pay for the bonds or issue additional taxable bonds to finance
the project.
The proceeds of the bonds, together with the proceeds of certain taxable bonds to be issued by the
City concurrently with the Bonds, will be loaned to CBI Real Estate Holdings, LLC (the
"Borrower') to finance the acquisition ofa manufacturingfacilityfor the production ofspices, spice
blends and liquid flavorings (the "Project'). The Project consists ofa purchase ofa parcel ofland
located in the Harmony Technology Park (the "Park'), bounded on the north by Harmony Road,
on the west by Ziegler Road, on the east by Lady Moon Drive and on the south by Rock Creek Drive.
The property will consist of a three acre parcel which is the third lot west of the southeast corner
of the Park and will be accessed from the proposed Precision Drive. Construction of an
approximately 33,000 square foot tilt -up concrete building is to be located there, as well as the
purchase of certain equipment. The Project will be owned by the Borrower and operated and
managed by Custom Blending, Inc., an entity under common ownership with the Borrower.
In late 2007, Custom Blending, Inc. approached the City with the concept for this Project. An
inquiry was made by Custom Blending, Inc. as to the availability ofprivate activity bonds for small
manufacturing. Custom Blending, Inc. was established in 1984 and initially provided the food
service industry in Colorado with spices and flavoring extracts. Today it is a multi functional
manufacturer of spices, spice blends and liquid flavorings for wholesale operations and retail
grocery stores. Custom Blending, Inc. is also a silver level partner in the City's Climate Wise
program. The facility that Custom Blending, Inc will be constructing with the bond proceeds is
being designed to achieve minimal impact on the environment. The criteria regarding Leadership
in Energy and Environmental Design (LEED) Green Building Rating System, developed by the US
Green Building Council is being pursued by Custom Blending, Inc.
The City's Prior Usage of Private Activity Bonds
The most recent direct usage of the City's annual allocation of private activity bonds occurred
during 2001 for the Oakridge Affordable Housing Project. Since that time, no direct issuance of
private activity bonds by the City has occurred. In the event a project is not identified and approval
Pldo3
May 6, 2008
granted by the City Council prior to September 15th of a given year, the annual allocation is
relinquished to the statewide pool and becomes available for projects throughout the State.
Given that the last two projects which utilized this funding seven years ago related to affordable
multi family housing (Oakridge and Comridge), staff inquired of both the Fort Collins Housing
Authority and Advance Planning staff responsible for housing. A letter is attached from the Fort
Collins Housing Authority stating they will not need the funds this year. Staff also presented this
funding option to applicants for the City's CDBG funds last month. The response was interest in
the future but not for 2008.
As a result ofno affordable housingprojects currently comingforward to utilize thisfunding option,
staff desired to see the funding remain within the City and not revert to the statewide pool as has
been the case in the prior six years. In the event a project does come forward, the City will still have
a portion ofthe 2008 allocation of $5.5 million to issue directly and can also recommend a project
to the Colorado Housing and Financing Authority (CHFA).
The last time the City used private activity bonds for a small manufacturing entity was in 1993 for
a $1.5 million bond for Phelps Tointon Millwork, LLC, a manufacturer of wood cabinetry and
athletic lockers.
The City's Role in Issuance of Private Activity Bonds
Under the federal tax laws and the Colorado Revised Statutes, the City's role in this transaction is
to be the Issuer ofthe Bonds. City staffhas also reviewed the application and relatedfederal income
tax returns
THEBONDSSHALL BE SPECIAL, LIMITED OBLIGATIONS OF THE CITY. THE
CITY WILL NOT BE OBLIGATED TO PAY THE BONDS OR THE INTEREST
THEREON, EXCEPT FROM THE ASSETS OR REVENUES PLEDGED
THEREFOR. INNO EVENT SHALL THE STATE, THE CITY (OTHER THAN THE
FROM THE BORROWER'S ASSETS PLEDGED THEREFORE) OR ANY
POLITICAL SUBDIVISION THEREOF BE LIABLE FOR THE BONDS, AND THE
BONDS SHALL NOT CONSTITUTE DEBT OF THE STATE, THE CITY OR ANY
SUCH POLITICAL SUBDIVISION THEREOF.
The proceeds ofthe Bonds will be loaned to CBI Real Estate Holdings, LLC. according to the terms
of the Loan Agreement to provide the financing of the project.
SOURCESAND USES
The estimated sources and uses of funds relating to the Bonds are summarized below:
299
May 6, 2008
Estimated Amount
SOURCES OFFUNDS:
Proceeds of Series 2008A Bonds
$4,375,000*
Proceeds of Series 2008B Bonds
275,000*
Additional Equity Contribution
1,000,000
TOTAL SOURCES OF FUNDS
$5,650,000
USES OF FUNDS:
Deposit to Project Fund:
Construction of Facility
$5,500,000
For payment of Costs of Issuance, including Underwriter's
fee (1)
$ 150,000
TOTAL USES OF FUNDS
$5,650,000
*Preliminary, subject to change
(1) Any such costs treated as allocable costs of issuance of the Series 2008A Bonds
under present Treasury Department regulations and rulings which in the aggregate
exceed 2% of Series 2008A Bond proceeds (net of certain ineligible proceeds) will
be paid by the Borrower or from proceeds of the Series 2008B Bonds.
Sources and uses are estimates and will likely change prior to second reading.
STRUCTURE OFBOND ISSUE
The objective of this financial transaction is to achieve the lowest possible borrowing costs for the
Project through tax-exempt financing. In return for the tax-exempt financing, the City is able to
assist and retain a small manufacturing company that has been a long standing member of the
community. The underwriter believes this can best be accomplished by structuring the transaction
using variable rate bonds. Using this technique, interest ratesfluctuate and reset periodically. The
underwriter is estimating an interest rate of about 3.50% on the variable rate bonds issued for 25
years.
300
May 6, 2008
The Bond documents set up the repayment schedule. The documents supporting this transaction
have estimated the following principal repayment schedule:
Date of Principal
Principal Amount
Redemption
to be Redeemed
2009
$ 0
2010
155,000
2011
165,000
2012
170,000
2013
180,000
2014
190,000
2015
195,000
2016
205,000
2017
215,000
2018
225,000
2019
235,000
2020
250,000
2021
260,000
2022
275,000
2023
285,000
2024
300,000
2025
315,000
2026
330,000
2027
345,000
2028
365,000
TOTAL
4 660 000
Debt service schedule includes the $275,000 of taxable bonds in addition to the not to exceed
$5, 000, 000 of tax-exempt financing. Payments are scheduled to be made on June I and December
I of each year.
According to the City of Fort Collins policies regarding issuance of tax-exempt financing for this
type ofproject, the City charges an issuer'sfee when the bonds are issued. This fee is estimated to
be $3,400 based on the projected debt service.
General Description of Bond Proceedings
In connection with the issuance of the Custom Blending Project Bonds, the City Council took the
following actions on February 19, 2008: (1) held a "TEFRA" hearing, (2) adopted an inducement
resolution (Resolution 2008-024) and (3) adopted on First Reading an ordinance authorizing the
bonds.
The TEFRA hearing and inducement resolution are still valid. However, the ordinance authorizing
the issuance of the bonds had a "60 day window " attached in accordance with State statute. The
301
May 6, 2008
action City Council will take on May 6th will reauthorize a new ordinance for the issuance of the
bonds and reset a new "60 day" clock beginning May 30th. "
Chuck Seest, Finance Director, stated an ordinance authorizing the issuance of the economic
development bonds was originally adopted on March 4, 2008 but state statutes only allowed for a
60-day window for the issuance of the bonds. Upheaval in financial markets and difficulties in
negotiations have prevented the issuance of the bonds within that 60-day window. This ordinance
will extend the period of time to allow the bonds to be issued.
Councilmember Ohlson stated Council fully supported Custom Blending and the issuance of the
bonds and he asked why this needed discussion. Seest stated when third party financing has been
used, typically the item has been placed on discussion for Council comments. While another public
hearing is not necessary, staff wanted to ensure the public and the governing body had opportunity
to comment.
Councilmember Roy made a motion, seconded by Councilmember Poppaw, to adopt Ordinance No.
046, 2008 on First Reading. Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, and Roy. Nays:
none.
I I am I a kyj IQ I 16)MOARM W13
Ordinance No. 031, 2008,
Amending Chapter 23, Article III of the City Code for the Purpose
of Adding a Division Regarding Encroachment
Permits for Newsracks. Adopted on Second Reading
The following is staff s memorandum on this item.
"EXECUTIVE SUMMARY
On March 4, 2008, the City Council adopted on First Reading, Ordinance No. 031, 2008, pertaining
to newsrack condominiums. On April 1, 2008, City Council voted to delay Second Reading of the
Ordinance until May, 2008 and directed the Downtown Development A uthority, Downtown Business
Association, the publishers and City staff to work together to seek a compromise.
The parties met to negotiate and have developed a compromise agreement. Key points from the
agreement are as follows:
Within the downtown boundary, all publications will be housed in news condominiums.
Condominiums will be located at 16locations; of those, 12 will be built immediately and the
other 4 will be funded andpermitted, but built at a later time. The 16 specific locations were
agreed to during the negotiation process. A map of the locations is attached. At its April
10, 2008 meeting, the Downtown DevelopmentAuthorityapprovedfundingforthe additional
locations.
302
May 6, 2008
Locations of the condominiums will be reviewed no less than every two years.
When reviewing or selecting specific condominium locations, the City Manager will consult
with representatives fom the downtown community and the publishers, in addition to the
Engineering Department.
The Ordinance beingpresented to the Council on Second Reading has been modified to reflect both
the compromise agreement as well as other changes made at the request of the publishers.
Changes include:
Section 23-101 has been revised to limit the indemnification language to free standing
newsracks;
Section 23-102(e)(3) has been revised to clarify that the 300 foot spacing requirement does
not apply to individual newsracks in the same cluster and authorizes the City Engineer to
approve a lesser distance;
Section 23-102(g) has been revised to clarify that individual newsracks will be allowed
within the downtown boundary until at least twelve locations have been designated for
condominiums by the City Manager and the condominiums have actually been installed;
after that, all publications must be included within the condominiums; language was also
added to state that the actual number and location shall be determined by the City Manager
after consulting with the City Engineer, representatives of the downtown community and
affected publishers and that such locations will be reviewed at least every two years.
Section 23-103(2) has been revised to clarify that pay publications will be generally located
in the upper areas of the condominiums to better assist customers in the use of coin boxes,
and beyond that, spaces will still be allocated through a random selection process; the dates
for initial permitting for spaces in the newsrack condominiums have been changed from
April to July to accommodate the new schedule and allow time for construction of the
condominiums; and
Section 23-104(c)(1) has been revised to delete the prohibition against placing newsracks
within the "sight triangle " at street intersections. This change was made at the request of
the Publisher's Coalition. If newsracks within the sight triangle prove to be problematic
from a safety standpoint, Engineering staff will recommend an amendment in the future to
address that concern.
In the Ordinance provided to City Council, specific changes from the compromise are shown in
blueline, and all other changes are shown in redline and strikeout.
Ordinance No. 031, 2008 was adopted on First Reading on March 4, 2008 by a vote of 4-2. (Nays:
Roy, Troxell; Absent: Brown) "
303
May 6, 2008
Kelly DiMartino, Community/Public Involvement Director, stated Second Reading of this Ordinance
was postponed to allow time for further negotiations to reach a compromise between the parties
involved. A compromise has been reached that, within the downtown boundary, all publications will
be housed in condominiums and the number of condos will increase from 12 to 16. A two-year
review of the condo locations has been added and will be done by the City Manager and City
Engineer, in consultation with representatives from the publishers and the downtown community.
Councilmember Poppaw made a motion, seconded by Councilmember Manvel, to adopt Ordinance
No. 031, 2008, on Second Reading.
Councilmember Manvel asked if the location of condos in the downtown area will have different
number of condos at each location. DiMartino stated the number of condos at any one location will
vary and be based on a variety of factors, including the actual amount of space available at that
location and the demand.
Councilmember Manvel thanked all the groups involved for their willingness to compromise and
create a solution that is acceptable.
Councilmember Ohlson asked why the "line of sight' criteria was removed from the ordinance.
Helen Migchelbrink, City Engineer, stated "line of sight' relates to controlled intersections as
opposed to stop sign controlled intersections. The locations chosen for condo placement do not have
any "line of sight' issues.
Councilmember Roy stated this is a freedom of speech issue that did not support the publishing
community and he did not support the ordinance.
The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvel, Ohlson, and Poppaw.
Nays: Roy.
THE MOTION CARRIED.
Ordinance No. 047, 2008,
Appropriating Prior Year Reserves in the General Fund for Review and
Analysis of the Draft Environmental Impact Statement
for Northern Integrated Supply Project, Adopted on First Reading
The following is staff s memorandum on this item.
"FINANCIAL IMPACT
A total of approximately $350,000 has already been spent in the past several years from
appropriated funds in the Water Fund (approximately $240, 000 for water quality studies and other
preliminary work), the Natural Areas Fund (approximately $77, 000for ecological studies and other
preliminary work), and General Fund (approximately $27, 000 for preliminary review work). The
304
May 6, 2008
Ordinance appropriates an additional $225, 000 from reserves in the General Fund to be used
together with an additional $135, 000 in already -appropriated Utilities funds and an additional
$50, 000 in already -appropriated Natural Areas f ends, to pay for technical analysis and review,
preparation of reports and draft comments, and outside legal fees in connection with review of the
Draft Environmental Impact Statement ("DEIS') for Northern Integrated Supply Project ("NISP').
EXECUTIVE SUMMARY
Staff has been preparing for several months for the release of a Draft Environmental Impact
Statement ("DEIS') associated with the Northern Integrated SupplyProject ("NISP'). As indicated
in the staff presentation at the December 11, 2007, Council work session, staff has planned to
develop comments on the DEIS for Council's consideration after the release of the DEIS. The
release date for the DEIS had been delayed several times, but the DEIS was issued on April 30,
2008, and staff will now be able to proceed to analyze NISP based on the DEIS rather than
predictions of what the DEIS would contain. The DEIS contains approximately 700 pages of
detailed analysis, together with numerous technical reports and other appendices, and preparation
of meaningful comments will require substantial effort and the assistance of qualified consultants
to provide input regarding potential impacts to the City and along the Poudre Corridor from NISP.
The Ordinance appropriates $225, 000 in General Fund reserves to assist with the costs associated
with review ofand commenting on the DEIS. Utilities and Natural Areas will also provide additional
funding for this work f •om already -appropriated monies.
BACKGROUND
The Northern Colorado Water Conservancy District (the "District') is proposing a water storage
and supply project known as NISP. The District made a presentation about the project to City
Council on May 22, 2007. Based on thatpresentation and the staffpresentation and Council work
session on December 11, 2007, staff has been preparing to submit comments to the Army Corps of
Engineers (the "Corps') in response to the DEIS.
NISP is a project designed by the District and twelve municipalities and water districts. The Project
is intended to increase water supplies for the collaborating entities. Several different alternatives
to provide enhanced water supplies have been proposed by the District and its partners. The
preferred alternative identified by the partners involves the construction of a new reservoir to the
northwest of Fort Collins (the "Glade " reservoir) and development of what is known as the South
Platte Water Conservation Project. The preferred alternative (as well as three additional
alternatives) has been analyzed by the Corps, and a DEIS describing those alternatives and the
Corps' analysis was released on April 30, 2008. The DEIS is a detailed, federally required review
ofthe alternatives and will include extensive analysis ofenvironmental impacts associated with the
alternatives.
Utilities and Natural Resources staffwork to prepare for the release ofthe DEISprimarily has been
focused on anticipating and evaluating the potential impacts ofNISP's preferred alternative to an
approximately ten -mile reach of the Poudre River from Overland Trail road to 1-25.
fIKIF
May 6, 2008
SUMMARYOFSTAFF WORK
Poudre Technical Advisory Group:
On November 1st, the Natural Resources Department (NRD) and Utilities staff hosted a 4-hour
roundtable discussion with technical experts to assess past, present and potential future condition
of the Poudre River. A technical summary ("white paper') was prepared to present an overview
of major findings and issues, potential change to river dynamics and future conditions. This report
will be posted on the City of Fort Collins web page as of May 2nd.
Evaluation of Hydrologic Modeling and Potential Impacts —Ayres Associates
Ayres Associates was contracted by the NRD and Utilities to make a broad assessment of the
potential impacts of Glade Reservoir on the Poudre River between Overland Trail and I-25. Phase
I of a possible three-phase project describes, at a general level, the potential impacts of NISP's
preferred alternative to Poudre River hydrology, geomorphology, hydraulics, fisheries, and
vegetation. The Phase 1 Report was provided to the Council in the May 1, 2008, Council packet..
Phase 11 of this project could include a more detailed and refined assessment of the potential
impacts. Phase III would entail a close reading of the DEIS and assistance to staff by the consultant
to help develop comments to the Army Corps. This report will be posted on the City of Fort Collins
web page as of May 2nd.
Economic Survey
The City contracted with Dr. John Loomisfrom the Department of Resource Economics at Colorado
State University to conduct a "Contingent Valuation " citizen survey of the 'financial value " of the
Poudre River to a Fort Collins citizen. A questionnaire survey was sent to approximately 550
households in Fort Collins to determine what a typical citizen would consider paying to maintain
or improve flows in the Poudre River. The survey is consistent with the type ofsurvey instrument
the Army Corps of Engineers uses in Environmental Impact Statements. The results of the survey
were provided to the Council in the May 1, 2008, Council packet.
Water Quality
The Utilities Department has been studying potential impacts to drinking water quality from NISP
for several years, and is continuing a cooperative flow and water quality program with the U.S.
Geological Survey at key points on the Cache la Poudre including the Lincoln Street and Boxelder
gauges as well as at several points upstream from the mouth of the canyon. That extensive USGS
flow and water quality dataset could be used in evaluating the EIS and corresponding potential
impacts of NISP on the Poudre River through Fort Collins. USGSflow measurement sites include
a gauge station on the North Fork of the Poudre and gauge stations at and near Joe Wright
Reservoir. In addition, Utilities has established an extensive cooperative monitoring program with
the City of Greeley and the Tri-District Water Plant to establish baseline water quality data both
306
May 6, 2008
up and downstream of the mouth of the canyon as well as Horsetooth, Halligan and Seaman
Reservoirs. These long-term monitoring programs are designed to provide the data necessary to
ensure effective and efficient water supply, treatment operations, and water delivery services to our
customers.
In addition, staff has been working to plan its approach for reviewing and responding to the DEIS,
given the magnitude of the DEIS and, consequently, the magnitude of the review project. A staff
team has been meeting regularly for several months, and will be working with Ayres, the City
Attorney's Office and outside legal counsel, and other outside experts as appropriate, to evaluate
the DEIS and expected impacts from NISP, and to prepare draft comments.
A total of approximately $350, 000 has already been spent in the past several years from
appropriatedfunds in the Water Fund (approximately $240,000for water quality studies and other
preliminary work), the Natural Areas Fund (approximately $77, 000for ecological studies and other
preliminary work), and General Fund (approximately $27, 000 for preliminary review work). The
Ordinance appropriates an additional $225, 000 from reserves in the General Fund to be used
together with an additional $135, 000 in Utilities funds and an additional $50, 000 in Natural Areas
funds, to pay for technical analysis and review, preparation of reports and draft comments, and
outside legal fees in connection with review of the DEIS for NISP. "
John Stokes, Natural Resources Director, stated these appropriations will be used to continue the
City's efforts to review and comment on the draft Environmental Impact Statement (DEIS) for the
Northern Integrated Supply Project. The funds will cover consultant costs related to the review. The
scope of the analysis will cover water quality and the impacts on drinking water and general water
quality on the Poudre River through the city and upriver in Horsetooth Reservoir. The analysis will
also cover ecology and recreation on the Poudre River from the west end of the city to I-25. Staff
will do a limited review of potential socio-economic impacts through the city. The analysis will not
include potential recreation or ecological impacts beyond the city limits. Comments on the DEIS
are to be given to the Army Corps of Engineers by July 29. An extension of the review period has
been requested, but no answer has been received.
Eric Sutherland, 631 LaPorte Avenue, stated the scope of the analysis should be expanded to include
the impact of the project on other water storage projects, particularly those on the North Fork of the
Poudre River as well as the impacts on the River both upstream and downstream of the city.
Councilmember Roy asked why the review of potential socio-economic impacts in the city would
be just a limited review. Stokes noted one part of the DEIS does address socio-economic issues but
staff will not use those issues as the main focus of the comments but will do a limited review of
those impacts. Resources are limited to do this review and a limited amount of time is available to
complete the review so choices had to be made as to where staff would focus most of its attention.
Councilmember Roy noted many upcoming projects to revitalize the downtown area are River -
focused and the Northern Integrated Supply Project could greatly affect those projects and the
307
May 6, 2008
economic health of the city. Stokes noted the Loomis Report, a contingent valuation survey, does
contain research related to economic impacts to the downtown part of the River.
Councilmember Brown asked if $485,000 has already been spent on studying this Project. Stokes
clarified that $350,000 has been spent-$240,000 was allocated to water quality studies, $77,000 was
used for ecological studies and $27,000 came from the General Fund to support those studies.
Projected expenditures are $410,000, with $225,000 from the General Fund, and $135,000 from
Utilities which includes $75,000 in additional funds. $60,000 had already been budgeted for water
quality work. Another $50,000 will come from the Natural Areas budget. A total of $760,000 will
be spent on reviewing the DEIS.
Councilmember Brown asked what benefit will be derived from spending more funds to "study a
study." Stokes stated staff will examine the adequacy of the analysis of the potential impacts that
are contained in the DEIS as well as the mitigation proposals. It is a very complex undertaking to
attempt to understand the DEIS at a deeper level as it is 700 page document with 2600 pages in the
technical appendices. There is considerable expertise available through City staff but external
consultants are also needed to provide the full array of expertise needed to do an in-depth review of
the DEIS. The three major categories to be reviewed are water quality impacts related to the
drinking water supply, outside legal assistance and examining the ecological and recreation impacts
on the Poudre River through the city. The funds already spent were used to create three in-depth
reports concerning the potential impacts related to the reduced stream flows through the city. At the
time the reports were done, the details of the DEIS were not known. Those reports framed the issues
and began the process of understanding all the impacts so when the DEIS was released, staff would
be ready to investigate the issues to a greater detail. Models of the water flows were created and
match closely those released in the DEIS. Impacts to riparian vegetation and fisheries were
identified in the draft reports. The Loomis Study was done to place a value on water in the River
related to values not normally considered to be monetary values, such as the valued place on the
River for recreation, aesthetics, and wildlife values. Kevin Gettig, Water Production Manager, stated
the work already done on water quality as it relates to the NISP Project involves several components.
One is understanding the topography in the actual upper watershed. While much water quality data
is available, information as to what water would go into the Glade Reservoir and the effects of
pumping water from Glade Reservoir to Horsetooth Reservoir is necessary to understand the
impacts. The city has two raw water sources, CBT or Horsetooth water and Poudre River water.
The intakes are located high enough to afford the city the benefits of better water quality than is
available further downstream. One concern is if water is moved from Glade Reservoir into
Horsetooth Reservoir would cause some treatability issues. Models were created to ascertain what
would the effects be. The DEIS contains data relating to water exchanges that needs to be examined.
Mayor Hutchinson noted the proposed review would be complementary efforts to the work already
done by staff.
City Manager Atteberry noted these expenditures are well justified and much of the work to be done
requires a degree of specialization and resources not available through City staff. If the City's
comments are to have credibility with the Army Corps of Engineers, they must be based on very
308
May 6, 2008
specific information and must be data based, with a high level of expertise. In order for staff to
competently advise Council on the best action to take regarding this Project, greater expertise is
needed than is currently available.
Councilmember Brown noted the City does not have a vote in whether or not the NISP Project
proceeds. He asked if this further review would provide a way to negotiate with the Army Corps of
Engineers to do what is best for the city. Stokes stated that was an accurate assessment as it is very
important for the City to develop an intelligent, well -supported, reasonable, practical analysis or the
Army Corps of Engineers will disregard any comments submitted by the City. Substantive
comments are essential and opinions are discounted by the Corps. City Manager Atteberry stated
the further review of the DEIS will be used by staff to provide the best possible analysis for Council
to use to decide Council's formal position on this issue.
Councilmember Poppaw noted the Loomis Report concluded citizens of Fort Collins were willing
to pay $342 per household to ensure that flows are maintained in the Poudre River. This is a prudent
use of City funds, given the potential environmental, cultural and economic impacts to the
community and it would irresponsible not to do this further review.
Mayor Hutchinson stated further work to gather the data and perspectives that are necessary to
intelligently form Council's position on this issue is necessary, as many issues are beginning to
emerge now that the DEIS has been released.
Councilmember Manvel stated the Army Corps of Engineers wants input from the public and from
the City. There will be parts of this Project that will be damaging to the city and Council needs to
know potential damages so mitigation can be requested. Further study is necessary to gather that
information.
Councilmember Roy asked if the Corps will grant an extension of time to respond to the DEIS.
Stokes stated the process allows the City to request an extension but it will be some time before it
is known whether or not an extension has been granted. Staff is proceeding as if no extension will
be granted.
Councilmember Ohlson asked who paid the $6 million for the DEIS. Stokes stated the 12
participating communities and water districts engaged in the Project funded the DEIS.
Councilmember Ohlson asked if Latimer County was doing any review of the DEIS. Stokes stated
he did not know if the County was performing any detailed surveys of the River between the mouth
of Poudre Canyon and west Fort Collins.
Councilmember Roy asked if the City Manager had any conversations with the Latimer County
Manager regarding this Project. City Manager Atteberry stated he had only brief conversations with
Larimer County Manager Lancaster but he will ask what the County's technical reviews will entail.
309
May 6, 2008
Councilmember Manvel made a motion, seconded by Councilmember Poppaw, to adopt Ordinance
No. 047, 2008, on First Reading.
Councilmember Ohlson stated while there is a cost to gathering more information, there is also a cost
if the city does nothing which could be more damaging in the long run.
Councilmember Poppaw stated this expenditure will help protect Fort Collins and the River.
Councilmember Manvel stated this study will provide much information and will allow for the
opportunity to suggest mitigation measures to offset potential damages.
Councilmember Roy encouraged citizens to submit their concerns to the Army Corps of Engineers.
Councilmember Brown stated his concerns with spending large amount of funds to "study the study"
and he noted Larimer County should be paying part of this cost. He asked if the County had been
asked to pay a portion of these costs. Stokes noted no request was made of the County to participate
in this review but the scope of City staff's work is very limited to inside Fort Collins and upriver
with respect to drinking water quality. City Manager Atteberry stated he would ask the County if
it wanted to partner with the City team.
Mayor Hutchinson stated this review was not a "study of a study," but much of the work is centered
on areas the DEIS did not approach, such as the City's issue of water quality. This review will
provide information that will allow Council to make the best possible, informed decision on a
complex issue. It will identify the impacts of the Project on Fort Collins and enable the City to
suggest mitigation measures.
The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy
and Troxell. Nays: none.
THE MOTION CARRIED.
("Secretary's note: The Council took a brief recess at this point in the meeting.)
Ordinance No. 048, 2008,
Authorizing the Lease of a Portion Of Running Deer Natural Area
To Hageman Earth Cycle, Inc.. Adopted on First Reading
The following is staffs memorandum on this item.
"FINANCL4L IMPACT
Hageman Earth Cycle will pay an annual rate of $18, 480 ($1540/month) the first year of the lease.
The lease rate will increase 4% annually. There will be a modest amount of staff time devoted to
lease -related administrative duties.
310
May 6, 2008
EXECUTIVE SUMMARY
Running Deer Natural Area was purchased in 3 transactions between 1998 and 2000. Included in
the purchase was a 15-acre parcel leased to Hageman Earth Cycle by the previous owners for the
operation ofan organic material drop offsite, material processing, and sale oflandscape products.
This portion ofRunning Deer has been leased to Hageman Earth Cycle since 2001. The term of the
new lease is for one year with up to nine renewals.
BACKGROUND
Running Deer Natural Area was purchased in 3 transactions between 1998 and 2000. A 15-acre
portion of the property was leased to Hageman Earth Cycle by the City of Fort Collins Natural
Areas for a seven-year period from July 1, 2001 through June 30, 2008. Hageman Earth Cycle
utilizes the lease area as part of an organic waste recycling service offered by its business. As the
only organic waste recycling business for public use in Fort Collins, Hageman Earth Cycle is
responsible for the diversion ofapproximately 65, 000 cubic yards ofmaterial from the waste stream
destined for the landfill. No other organic material drop off site is located within Fort Collins.
Other activities allowed in the lease include the storage and sale of landscape products.
The initial five year lease period was intended to provide transition time for Hageman Earth Cycle
to relocate to a new location. As additional two-year lease was approved in 2006 to allow
additional time for relocation. Past correspondence indicates clearly the City's desire for
Hageman's Earth Cycle to relocate. However, Hageman has not been able to transition to a new
location and has requested a renewal of the lease.
In addition to the fact that Hageman's Earth Cycle has not been able to move, this lease has been
challenging for other reasons. Environmental concerns including dust complaints and suspected
soil and water contamination have been raised in past years. In November 2007, the Colorado
Department of Public Health and Environment (CDPHE) cited Hageman Earth Cycle for
composting without a permit. While the citation was resolved between Hageman and CDPHE, it
did emphasize the need to assess current environmental conditions and to determine if historic or
recent operations have resulted in an adverse impact to the site.
ALimitedPhase IIEnvironmental Assessmentwas conductedfrom December 2007 through January
2008 to examine water and soil contamination concerns. Five groundwater wells, 3 composite soil
samples, and 2 surface water locations were sampled. Based on field observations and a review of
the laboratory results, there is no evidence that groundwater at the site has been adversely impacted
by metals, volatile organic compounds (VOC's), semi volatile organic compounds (SVOC's),
organochlorinepesticides (OCP's), organophosphorouspesticides (OPP's), nitrate -nitrite, orfecal
coliforms. While select metals, VOCs, SVOCs, OCPs, nitrate -nitrite, andfecal coliforms compounds
were detected in pools of surface water/leachate it does not appear that these compounds are
infiltrating into underlying groundwater at the site, based on the results of this assessment work.
No significant concerns were identified in the Phase II report.
311
May 6, 2008
To continue to monitor the groundwater in the area and to prevent the movement ofsoil and water
offsite several conditions were placed in the lease. The Lessee must design a Stormwater
Management Plan consistent with the standards established in the Urban Drainage and Flood
Control Manual, Volume 3, (the "Standards') which is published by the Denver Urban Drainage
and Flood Control District.
The Plan will include a description of surface water control systems designed, constructed and
maintained to accomplish each and all of the following: (1) manage and accommodate flow onto the
Property duringpeakdischargefroma25 year, 24-hour storm event anda100 year, 24-hour storm
event; and (2) control and collect the onsite run-offwater volume resultingfrom a 25 year, 24-hour
storm event on the Property and a 100 year, 24-hour storm event on the Property; and (3) contain
and manage leachate that is generated when precipitation comes in contact with materials
maintained on or in the vicinity of the Property or in any way by Lessee; and (4) a 100 foot buffer
(or other dimension as the City determines to be appropriate upon review and consideration of the
Stormwater Management Plan) must be planted with native vegetation constructed around the
existing wetlands located adjacent to the Property and depicted on an attached map; and, (5) all
leachate collection structures must be constructed of compacted or in -situ earthen material pr other
low permeability materials to achieve hydraulic conductivity ofless than or equal to 1 x 10 cm/sec.
The Plan shall be developed under the direction ofa professional engineer and submitted to the City
for review and approvalprior to construction ofany ofthe improvements required by the Plan. All
improvements must be approved and constructed by October 1, 2008 or by such other date as the
parties mutually agree is acceptable.
In addition to the lease terms discussed above, the lessee will be required to obtain any permits,
licenses, or other approvals or grants of authorization required in order to conduct its activities.
Further, this lease does not allow for the composting or dyeing ofmaterial on site and all composted
material stored for sale must originate from a permitted composting facility.
Also, the lessee will be required to collect and analyze soil and water samples on an annual basis
in an effort to monitor environmental conditions of the lease area. Sample locations will be
identified by Natural Area staff and all analysis will follow appropriate EPA methodology.
Prior to the end of the lease, the lessee will be required to remove all personal property or
improvements, including all foundations, slabs, and fences, fill and level any excavations, and
restore the ground to a condition that is level and free and clear of debris or other materials.
This lease is a one year lease with up to 9 renewals. If the lease is in place the full term, it will
enable Hageman Earth Cycle to continue its operation for a period of 10 years. Benefits include
the continued diversion of approximately 65, 000 cubic yards of organic waste from the landfill on
an annual basis. The 10 year lease term also allows the lessee up to 10 years to recoup the financial
costs of the required surface water control system and other improvements outlined in the lease.
It also allows staffto focus on managing the lease with the understanding that Hageman Earth Cycle
may be on site for a 10 year term.
312
May 6, 2008
The Natural Areas Program has estimated that restoration of currently owned Natural Areas will
take approximately twentyyears to accomplish, and the restoration ofthe lease parcel has not been
scheduled to occur during the maximum term of the lease. While the property is occupied by
Hageman, the maintenance requirementsfor the City will be reduced as a result ofHageman's use
and maintenance ofthe property. In addition, the interim use will generate revenuesfor the Natural
Areas program. Staff has recommended against sale ofthe property to Hageman, as the long-term
objectives of preserving this property are important and will be met by the City's continued
ownership and eventual restoration of the lease area.
Several different options were discussed during the Land Conservation and Stewardship Board and
the Natural Resources Advisory Board Meetings. A summary of the options are discussed below.
1. Sale of the 15-acre lease area to Hageman Earth Cycle. Natural Resources staff
recommends against selling the lease area to Hageman Earth Cycle. Some ofthe long-term
environmental reasonsfor this recommendation include: the close association with wetlands
on Running Deer Natural Area; shallow depth to ground water (and the potential for
contamination); and potential movement of material stored on Hageman to the Poudre
duringflood events. While these issues can be mitigated in the mid-term, any development
in this location for the long-term is undesirable. Also, this property was purchased as a
Natural Area as part of a planned gateway to the City. Future development in this area is
likely to be employment and research and development related.
2. Shorter -term lease. This option was coupled by NRAB with the suggestion of developing a
multi -agency taskforce to identify long-term solutions to organic waste recycling within Fort
Collins. Natural Resources staff does not favor a shorter -term lease for several reasons.
Primarily, Natural Resources staff does not believe that site -based improvements and
investments are financially feasible with a short-term lease. Natural Resources staff does
not recommend continuing in a lease arrangement of any length without proper
environmental controls.
3. Termination ofthe lease. (LCSB recommendation). While this recommendation would allow
the Natural Areas Program to restore the lease area back to native vegetation, Natural
Resources staffdoes not recommend it. Staff's understanding is that Hageman Earth Cycle
has not been able to find a suitable local, relocation site. Thus, if Earth Cycle is unable to
continue organic recycling operations, it is possible that for at least some period of time
there would be no organic recycling options available to the public. Thus, approximately
65, 000 cubic yards of organic material now being diverted would enter the landfill on an
annual basis.
4. One-year lease with 9 renewals (NRAB and staff recommendation). This option places
several conditions on the lease to address environmental concerns. The expense to Hageman
for the design and construction of the site improvements can be spread over a 10 year
period. The lease can be terminated by either party, so if other viable organic recycling
options become available the City and Hageman Earth Cycle can adapt to changing business
313
May 6, 2008
conditions. This option maintains Natural Area ownership of the lease area and allows for
the eventual restoration ofthe property to natural conditions. Natural Areas program plans
for restoring the Property and making it available for public use do not call for restoration
activity on the Property until after the proposed lease term. Organic recycling will continue
to be provided to the public at this location during the term of the lease. "
John Stokes, Natural Resources Director, stated the proposed lease is to Earth Cycle, East Prospect
Road, next to Running Deer Natural Area and is a one-year lease with renewable terms for nine
additional years. Several options considered in the renewing of the lease were terminating the lease,
selling the property to Earth Cycle, a shorter term lease, and a longer term lease. The lease does
include environmental protections.
Tom Pierce, Fort Collins citizen, opposed the proposed lease to Earth Cycle. He considered the
lessee's use of the property to be an inappropriate use of a natural area.
Roger Hageman, owner of Earth Cycle, stated his business recycles 65,000 yards of yard waste
material each year. His business needs the leased land to continue the recycling of yard waste and
provides a services to Fort Collins citizens.
Gordon Esplin, 1009 East Lake Street, stated the lease of the Running Deer Natural Area land was
originally planned as a temporary solution and the proposed lease allows this use of the land on a
much more permanent basis. He opposed the proposed lease and supported recycling at a different
location.
Councilmember Manvel asked how much organic material goes to the Landfill or other places.
Stokes stated Earth Cycle is capturing about one-third of the organic material that is generated in
Fort Collins.
Mayor Hutchinson stated the lease contains provisions that address environmental concerns raised
about the recycling business and he asked if staff considered the amount of organic material diverted
a major criteria in forming its recommendation. Stokes stated the amount of organic material
diverted is important in context of the City's objectives for recycling and solid waste diversion. City
Manager Atteberry stated Earth Cycle does provide a valuable service to the community but having
an organic material recycling center does raise environmental and land management concerns that
grow as the amount of material recycled by Earth Cycle increases.
Councilmember Ohlson asked why alternative sites for organic material recycling have not been
found. Stokes stated when the Natural Areas purchased the property, the lease with Earth Cycle was
intended to provide a transition arrangement to allow the business time to relocate. Another site has
not yet been found that will work for this business. The longer lease term is proposed to provide a
mid-term solution that would allow the proper environmental controls to be implemented at the site
and allow the cost of those controls to be amortized by Earth Cycle. A shorter -term lease would not
be financially feasible for those controls to be installed. The lease will go year to year so, in the
event, another location is found for this business, the lease can be terminated by the owner. The City
314
May 6, 2008
will also have the ability to terminate the lease should another solution to diverting organic materials
be found.
Councilmember Ohlson asked if the City intends to terminate the lease if the environmental controls
are not put in place or if other environmental violations occur. Stokes stated staff would evaluate
the severity of the violation and decide whether to terminate the lease. The proposed lease does
provide the option to terminate the lease.
Councilmember Brown asked if composting was considered recycling. Stokes stated the yard waste
material diverted from the landfill and goes to Earth Cycle is recycled into another commodity. The
yard waste is composted and used in another way, which is a form of recycling.
Councilmember Brown asked if the City considered offering recycling of organic yard waste to
divert the waste from the landfill and who would pay for that. Stokes stated the public would have
to pay for that service, just as they must pay Earth Cycle to recycle that waste material. Loveland
has a solid waste diversion program that has an additional, voluntary fee for curbside yard waste
pick-up. There is one trash company in Fort Collins that currently offers curbside yard waste pick-up
for an additional fee. The material is then hauled to Earth Cycle.
Councilmember Roy asked for the use of the lease money received from this property and the cost
of reclaiming the land for Natural Area use. Stokes stated the money goes into the Natural Areas
Fund to be used for Natural Areas purposes. Any costs related to mitigating damages to the property
would be the responsibility of Earth Cycle. Restoration costs above and beyond those damages
would be borne by the Natural Areas program. The condition of the property now is similar to its
condition when Natural Areas acquired the property.
Councilmember Roy stated the land was bought using taxpayer money to be used as a Natural Area
and he asked if leasing the property for private enterprise was not in line with a Natural Area use.
Stokes stated Earth Cycle was leasing the property at the time the City acquired it. The intent is to
manage it as a Natural Area going forward once the business leaves. There is no hard infrastructure
on the property so once the business leaves and takes its materials, Natural Areas will restore it. No
trails are planned through the property.
Councilmember Roy asked why a solid waste diversion facility was not available at the landfill site
and what percentage of waste taken to the landfill is yard waste. Stokes stated the County is
interested in such a facility and has requested proposals for a yard waste transfer station at the
landfill but did not receive any proposals that would be financially viable for the landfill operation.
Susie Gordon, Senior Environmental Planner, stated 10% of material taken to the landfill is yard
waste. It will cost the County approximately $17 million to develop a new landfill, once the current
one is full.
Councilmember Manvel noted the City needs to develop a better alternative to encourage citizens
to recycle more organic waste and this lease did not seem to be a constructive move in that direction.
He asked the cost of the mitigation measures Earth Cycle must take to be in compliance with the
315
May 6, 2008
lease. Stokes stated this was a 10-year lease with yearly renewals that will allow either the City or
Earth Cycle to terminate the lease if conditions change or if other recycling solutions are identified
by the City. In order to implement the improvements needed to deal with stormwater issues,
engineering studies are necessary, paid for by Earth Cycle. The cost of engineering and
implementation of the improvements is not known at this time.
Councilmember Roy asked why a Larimer County landfill site was not a workable solution to locate
Earth Cycle. Stokes stated the County does not believe locating a solid waste diversion facility that
would recycle organic material at the landfill is a cost effective solution for the County at this time.
It is unknown if such a location would be acceptable to Earth Cycle. Mr. Hageman, owner of Earth
Cycle, stated he was willing to move his business anywhere that would be beneficial to him. One
prohibition of moving his business to the landfill is the lack of water. It takes a large amount of
water to compost grass and leaves. Lack of water has been a large hindrance in finding a suitable
location for this business, along with accessibility for the public and land for sales of the composted
material. He did submit a bid to Larimer County to recycle yard waste at the landfill, but the County
did not accept his bid. This lease is necessary for Earth Cycle to continue business at the current
location. The current location is more accessible for citizens living on the north side of Fort Collins
and he was uncertain if he could maintain the current volume of business if he were located at the
landfill.
Councilmember Roy asked if traffic flow at the current location of Earth Cycle was an issue as it
requires the use of large, slow trucks that impede traffic. Stokes stated staff had discussed traffic and
safety issues and coordination of traffic signals along Prospect will occur to help alleviate
congestion.
Councilmember Ohlson stated the lease does not allow for the composting or dyeing of material on
site and all composted material stored for sale must originate from a permitted composting facility
and he asked if that was currently happening at the site. Stokes stated that was the current practice
and the intent was to ensure that materials transported off -site are composted at a permitted and
compliant facility.
Councilmember Ohlson asked if the improvements listed in the lease will be completed by October
2008. City Manager Atteberry stated the intent is to have the improvements completed by October.
Stokes stated compliance will be monitored and staff will inform Council in the fall when the
improvements are completed. The lease requires annual reports from the lessee about water quality
and soil testing.
City Manager Atteber y noted Mr. Hageman has expressed interest in buying the property from the
City but this is a City Natural Area and the long term intent of the City is to use this property as a
Natural Area and not to sell it.
Councilmember Ohlson stated the City should continue to help Mr. Hageman locate an alternative
site and look at public/private partnerships and he asked what potential public/private partnerships
are possible to provide a long-term solution. Stokes stated staff continues to search for solutions to
316
diverting solid waste from the landfill. The trash services study, now underway, may provide some
possibilities, the Climate Task Force recommendations include recycling options to reduce carbon
footprint and the possibility of a solid waste transfer station at the County landfill does exist for the
future.
Councilmember Roy asked for information about the availability of water at the County landfill.
Stokes stated that information would be requested from the County.
Councilmember Roy made a motion, seconded by Councilmember Manvel, to adopt Ordinance No.
048, 2008 on First Reading.
Councilmember Roy expressed his concerns that a City Natural Area was being leased and not used
as a Natural Area. Earth Cycle does provide a beneficial service to the citizens.
Councilmember Poppaw stated a more permanent solution to the problem of recycling yard waste
needs to be found. The service provided by Earth Cycle is valuable to Fort Collins, but the business
does not align with using the property as a Natural Area.
Councilmember Ohlson stated compliance with the terms of the lease must be enforced and a
solution must be found that would enable this property to be used as a Natural Area.
Councilmember Brown stated this business provides a valuable service to the community.
Councilmember Manvel noted two extensions had been approved previously on this lease and he
hoped a permanent solution would be found so the full 10-year lease is not necessary.
Councilmember Roy requested regular reports on the progress made in complying with the terms of
the lease and steps taken towards a permanent solution of removing Earth Cycle from this property.
City Manager Atteberry noted staff will continue to work with Mr. Hageman to develop a permanent
solution that does not include staying at the current location. An annual reporting requirement can
be added to the lease.
Councilmember Ohlson noted efforts have been made to assist Mr. Hageman in relocating his
business.
Mayor Hutchinson asked if leasing this property was a legal use of property bought with Natural
Area funds. City Attorney Roy stated leasing the property during a period of transition before the
property is used for the purpose if was intended, but the lease cannot go on indefinitely.
The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, and
Roy. Nays: none.
THE MOTION CARRIED.
317
May 6, 2008
Items Relating to the Adoption of the
2006 International Building Code (IBC),
2006 International Energy Conservation Code (IECC)
and Local Amendments, Adopted on First Reading
The following staff s memorandum on this item.
"EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 049, 2008, Amending Chapter 5, Article II, Division 2, of
the City Code for the Purpose of Adopting the 2006 International Building Code®, with
Amendments.
B. First Reading of Ordinance No. 050, 2008, Amending Chapter 5, Article II, Division 2, of
the City Code For the Purpose of Adopting the 2006 International Energy Conservation
Code®, with Amendments.
The 2006 International Building Code(IBC) and the 2006 International Energy Conservation Code
(IECC) are the most up-to-date editions of the model building codes available that apply to newly
constructed commercial, industrial and multi family buildings (3 or more units), and new additions
to such existing buildings. Staff is presenting these codes and local amendments for adoption to
replace the obsolete 1997 Uniform Building Code (UBC) and companion energy code regulating
multi family and commercial buildings.
BACKGROUND
Fort Collins has a legacy of innovative local code provisions that enhance public health and safety,
offer construction flexibility, and improve energy efficiency and indoor air quality. In anticipation
of the eventual transition to the new model building codes — the International Codes (I -Codes)
developed by the International Code Council — several of these innovations were deliberately
included as local amendments into the City's current 1997 UBC, adopted mid-1998; and again in
2004, when the City adopted the first ofthe I -Code series. This last building -code package approved
by Council contains the 2003 International Residential Code (IRC) ® (covering any new, and
additions to, single-family and two-family dwellings and townhouses), as well as the ancillary I -
Codes applicable to all new and replacement HVAC (heating, ventilating, or cooling) systems,
plumbing systems, and gas piping installations in multi family buildings (three or more units) and
in all other types of nonresidential buildings.
In August 2006, the Code Review Committee began the task of reviewing the 2006 IBC and 2006
IECC as the replacement for the UBC, to regulate the construction of all new, and additions to,
nonresidential buildings and multi family buildings. This committee is composed ofinembersfrom
the Poudre Fire Authority, Building Review Board, Lorimer County Building Department, private
developers, builders, architects, engineers and City staff. The team concluded its review ofthe 2006
IBC and 2006IECC, plus the cumulative mid -cycle code update, the 2007 Supplements and local
318
May 6, 2008
amendments in early April. The Code Review Committee came to a f nal consensus recommending
the proposed codes and amendments to City Council for adoption.
Staff first presented the results of the Code Review Committee's recommendations on the 2006
IBC/IECC at the April 24, 2007 Work Session. At that time, staffrecommended the adoption of the
proposed 2006 IBC/IECC be postponed until review and incorporation of the 2007 Supplements,
published in July 2007. Furthermore, in line with current mandatory radon -resistant construction
standards in new single- and two-family dwellings and townhouses since 2005, Council directed
staff to investigate local amendments for mandatory radon -resistant construction in multi family
housing containing three or more units in order to provide equal protection for all City residents.
At theJanuary22, 2008WorkSession, staffpresentedtheproposedcodeandamendments, including
the 2007 Supplements, the 2006 IECC and radon -resistant construction amendments. Council
directed staff to provide additional information at the scheduled regular Council meeting.
Attachment 2 provides this additional information.
Significant Changes
The major improvements from the current code to the proposed 2006 IBC, 2006 IECC and local
amendments are:
A fundamental strategic shift in protecting buildings and its occupants from the immediate
spread offire through the use offire sprinkler systems instead of using additional building
materials to detain the spread offire;
Mandatory radon -resistant construction in multi family dwellings with three (3) or more
units; and
More energy -conserving construction via the very latest technical standard available.
Costs
The estimated added construction costs include:
Fire sprinkler systems initial cost offset by less expensive construction materials with added
benefit of greater occupant safety and insurance savings.
Radon resistant construction in multi family cost increase per dwelling unit $500 to $700.
Insulation cost increase (roofand wall):
o Commercial roofs no attic - none
o Roof insulation attic - $0.90 per square foot
0 Wall insulation wood frame — $0.18 per square foot
319
May 6, 2008
Wall insulation metal frame - $1.00 per square foot
ISO Insurance RatingBuilding Code Effectiveness
FEMA notified the City last November that Fort Collins was at risk of losing its long-standing,
highly desirable food insurance discount rating for multi family and business properties because
Fort Collins has not yet adopted the IBC. Insurance rates are largely determined by an individual
jurisdiction's "building code effectiveness" ranking using a standardizedgrading system known as
the "Building Code Effectiveness Grading Schedule (BCEGS) ".
On April 15, 2008, at the City's request, a representative of the regional Insurance Service Office
(ISO) conducted an in-depth, on -site interview, documented by a 20 page evaluation instrument. The
representative indicated the City would likely obtain a favorable rating, conditional upon ISO
receiving notification of Fort Collins formally adopting the IBC within the next two months. ISO's
report, expected in about 90 days, will be newly formatted to identify areas where the City could or
might need improvement and what that improvement would look like.
Public Outreach & Recommendations
• Affordable Housing Board — 5/3/07; recommended unanimously
• Commission on Disability — 6114107; recommended unanimously
• Planning and Zoning Board — 8/10/07; recommended unanimously
• Electric Board—1/16108; recommended unanimously
• Public Outreach Meeting—119108; general consensus for adoption
• Natural Resources Advisory Board—1/16108; recommended unanimously
• Building Review Board—1131108; recommended unanimously
• Air Quality Advisory Board — 3124108; recommended unanimously
Recommended Timeline and Effective Date
1. Second Reading 5120108.
2. Effective date: July 1, 2008. Transition period for construction professionals, and for staff
to prepare educational material, workshops, and update license exams.
3. Training for staff and construction professionals — Scheduled for June, Sept., Dec. 2008.
4. Reevaluation of building code rating when ISO officially notified of IBC's effective date."
Felix Lee, Director of Neighborhood and Building Services, gave a presentation that highlighted
changes from the 1997 Uniform Building Code. He noted that replacing the 1997 Building Code
is necessary as that Code is outdated, no longer published and is being replaced with the 2006
International Building Code.
Councilmember Roy asked if any of the Codes address retrofitting buildings to create energy
efficiencies. Lee stated the proposed Codes deal primarily with conventional energy systems but
other programs do exist, such as the LEED program, that address energy efficiencies. Those
320
May 6, 2008
programs are not codified into a code yet. Staff is investigating different models of "sustainable
practices" and will try to incorporate those practices in the future.
Councilmember Brown asked if the radon requirements applied to condos and apartments. Lee
stated any building with 3 or more units would be required to comply, at the ground floor level. Fort
Collins has a high level of naturally occurring radon that needs to be addressed. Radon is not
addressed in the 2006 IBC and the requirements for radon -resistant construction are a Fort Collins
amendment to the IBC.
Councilmember Manvel asked for more information about the amount of radon exposure in Fort
Collins. Brian Woodruff, Environmental Planner, stated 70% of single family homes are above
acceptable levels of radon. Apartment dwellers have contacted staff to say radon testing done in
their units show high radon units but they have no recourse to mitigate the high levels. The proposed
local amendment to the IBC will make it easier for apartment residents or condo owners to mitigate
excessive radon levels.
Councilmember Roy made a motion, seconded by Councilmember Manvel, to adopt Ordinance No.
049, 2008, on First Reading.
Councilmember Manvel stated adoption of this Code with its amendments is consistent with other
communities in the Front Range.
Councilmember Ohlson stated radon is a health and safety issue for the citizens and the City needs
to take the steps necessary to lower the risk, including adopting the IBC with the local amendments.
Mayor Hutchinson asked for more information on the amendment addressing radon mitigation.
Councilmember Roy stated Fort Collins is located in the center of the area that naturally produces
radon and he requested a map that shows areas of radon occurrence.
The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, and
Roy. Nays: none.
THE MOTION CARRIED.
Councilmember Roy made a motion, seconded by Councilmember Manvel, to adopt Ordinance No.
050, 2008, on First Reading. Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, and Roy. Nays:
none.
THE MOTION CARRIED.
321
May 6, 2008
Other Business
Councilmember Ohlson made a motion, seconded by Councilmember Roy, to adjourn to May 13,
2008, immediately following the Council work session for the purpose of considering a possible
executive session. Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, and Roy. Nays: none.
THE MOTION CARRIED.
The meeting adjourned at 9:50 p.m.
ATTEST:
t 11l
City Clerk
Adiournment
322