Loading...
HomeMy WebLinkAboutMINUTES-10/28/2014-AdjournedOctober 28, 2014 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council -Manager Form of Government Adjourned Meeting — 6:00 PM • ROLL CALL PRESENT: Weitkunat, Overbeck, Poppaw, Campana, Troxell, Cunniff ABSENT: Horak Staff present: Atteberry, Daggett, Nelson • Executive Session Authorized. Councilmember Troxell made a motion, seconded by Councilmember Cunniff, to go into Executive Session for the purpose of meeting with the City's Attorneys and City Management Staff to discuss the following matters as permitted under Section 2-31(a)(2) of the City Code and Colorado Revised Statutes Section 24-6-402(4)(b): (1) specific legal questions related to litigation or potential litigation involving the City regarding federal review and permitting Halligan Reservoir and regarding certain City water rights, and (2) the manner in which particular policies, practices, or regulations of the City related to infrastructure requirements for development and payment for street lighting operations may be affected by existing or proposed provisions of federal, state, or local law. RESULT: ADOPTED [UNANIMOUS] MOVER: Wade Troxell, District 4 SECONDER: Ross Cunniff, District 5 AYES: Weitkunat, Overbeck, Poppaw, Campana, Troxell, Cunniff ABSENT: Horak (Council adjourned into Executive Session and returned at 7:05 p.m.) 2. The purpose of this item is to codify the longstanding City policy and practice whereby the Light & Power Fund has been responsible for providing municipal street lighting as an in -kind payment to the General Fund as part of the Electric Utility's payment in lieu of taxes and franchise fees. The Ordinance also revises the language related to the Water and Wastewater Funds' required 6% payment to the General Fund to clarify that this is a payment in lieu of taxes and franchise fees (as opposed to just a payment in lieu of taxes). This change is consistent with Article V, Section 23 of the City Charter and with the wording used in City Code to reference the same fee paid by the Light & Power Fund. Lance Smith, Utilities Strategic Financial Planning Manager, provided background on the payment in lieu of taxes (PILOT) topic. This Ordinance revises the City Code to align with the City's long-term practice of Light and Power paying for and maintaining street lighting and adds clarification in the City Code that PILOT is not just for taxes, but also for franchise fees, with regard to the water and wastewater utilities. City of Fort Collins Page 445 Councilmember Troxell asked why Light and Power is paying for street lighting as an in -kind contribution. Smith replied Light and Power is being paid by the Light and Power fund as a service to the community; the in -kind phrase was not correct. Councilmember Troxell noted Light and Power also pays the 6% PILOT and questioned whether it is paying more than it should for the operation of street lights in the community. Smith replied that could be argued and stated the PILOT could be adjusted. Councilmember Troxell questioned whether some of these items should be financed through the General Fund. City Attorney Daggett noted the Charter does allow Council to set a payment in lieu of taxes and franchise fees to be paid by each of the utilities; therefore, it is within Council's purview to consider that. Historically, Council has set a 6% PILOT which has been paid in addition to the utility funding street lighting. City Manager Atteberry stated a case could be made to increase the PILOT to cover any additional costs, including street lighting. He noted the annual cost of the program is about $1.3 million. Councilmember Campana supported raising the PILOT to cover those costs but stated he does not believe any type of inequity has occurred as a result of the previous practice. Councilmember Cunniff asked if the street lighting amount of $1.3 million is considered as part of the base utility rate. Smith replied the amount is not part of the fixed charge; it is collected through the variable charges based on electric consumption. Councilmember Cunniff stated he would not prefer to add a payment in lieu of franchise fee category. Mayor Weitkunat stated the word "franchise fee" was not included in the original language and this would provide clarification. City Attorney Daggett replied the Charter makes clear this is a payment in lieu of taxes and franchise fees and the electric utility provision specifically references taxes and franchise fees; however, the water and wastewater provisions do not. This change would provide a level of consistency. Councilmember Campana made a motion, seconded by Mayor Weitkunat, to adopt Ordinance No. 146, 2014, on First Reading. Councilmember Troxell stated he would not support the motion as Light and Power is an independent enterprise. He stated the fees should be captured as a PILOT and the street lights should be paid from the General Fund. Mayor Weitkunat stated she would support the Ordinance as it is a correction and movement toward consistency in Codes. The vote on the motion was as follows: Yeas: Weitkunat, Campana and Poppaw. Nays: Troxell, Conniff and Overbeck. THE MOTION FAILED. City Manager Atteberry stated this Ordinance would codify a longstanding tradition in terms of payment and asked how he should proceed in terms of funding the street lighting program. City of Fort Collins Page 446 Mayor Weitkunat requested Council reconsider the vote and address some concerns prior to Second Reading. Councilmember Cunniff stated he would prefer this item to return as a straightforward PILOT increase. Councilmember Troxell stated he would be open to a reconsideration of the vote but encouraged a broader discussion of viewing the Utilities as an enterprise. Councilmember Cunniff requested a work session to discuss the PILOT, franchise fee, and General Fund options prior to bringing the item back for First Reading. Mayor Weitkunat encouraged a reconsideration of the vote Councilmember Troxell made a motion, seconded by Mayor Weitkunat, to reconsider the vote on Ordinance No. 146, 2014. Yeas: Weitkunat, Campana, Poppaw and Troxell. Nays: Cunniff and Overbeck. THE MOTION CARRIED. Councilmember Troxell stated he would like to have a broader conversation regarding the Utilities at a work session. City Attorney Daggett stated it would be appropriate for a motion to postpone if it is Council's intent to push the discussion of this item to a later date. Councilmember Campana encouraged a vote on the First Reading of the Ordinance but supported additional conversations at a later date, stating this item is more of a clarification item. RESULT: ORDINANCE NO. 146, 2014, ADOPTED ON FIRST READING [4 TO 21 MOVER: Wade Troxell, District 4 SECONDER: Karen Weitkunat, Mayor AYES: Weitkunat, Poppaw, Campana, Troxell NAYS: Overbeck, Cunniff 1 ABSENT: Horak • OTHER BUSINESS Councilmember Cunniff stated the Leadership Planning Team had requested Council discuss the proposal it has made with respect to campaign finance ordinance changes. He stated the goal is . to encourage submittal of campaign finance reports in a timely manner. Council will be considering Charter amendments with respect to election provisions in the spring. Councilmember Troxell stated he would like to have a broader work session discussion regarding election and campaign provisions. Councilmember Overbeck stated he has recently been informed that the North Poudre Irrigation Company, of which the City is a 35% shareholder, is moving forward with a proposal to cut down hundreds of trees and he has not yet seen a report related to its following of state City of Fort Collins Page 447 guidelines regarding tree preservation. He requested a work session on the issue. City Manager Atteberry replied Councilmembers are being offered tours of the site. Kevin Gertig, Utilities Executive Director, replied Council will be receiving background information on the project, which is an operational maintenance issue. Councilmember Overbeck stated he would like Council to have a discussion prior to the removal of any trees. City Manager Atteberry suggested Council and staff reconsider the issue for a work session following the scheduled tour. Councilmember Conniff noted this discussion is similar to the issue at Warren Lake. City Manager Atteberry stated Council's concerns will be expressed to the North Poudre Executive Director. Councilmember Conniff requested and received Council support to draft a Resolution to present to CSU's Board of Governors outlining Council's concerns with respect to the impacts of an on - campus stadium and expressing its preference for other options to be the preferred options. • ADJOURNMENT The meeting adjourned at 7:37 PM. ,s ATTEST • `,kt OF FORT � City Clerk �: �y City of Fort Coffins Page 448