HomeMy WebLinkAboutMINUTES-05/21/2013-RegularMay 21, 2013
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 21, 2013,
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: Horak, Cunniff, Overbeck, Campana, Troxell and Weitkunat.
(Councilmember Poppaw arrived at 9:26 p.m.)
Staff Members Present: Atteberry, Nelson, Roy.
Mayor Weitkunat recognized the participants in the Cityworks 101 class.
Agenda Review
City Manager Atteberry stated Item No. 10, First Reading of Ordinance No. 076, 2013,
Appropriating General Fund Reserves.for the Platte River Power Authority Transmission Line
Relocation Project Located on the Woodward Property, needs to be removed from the Consent
Calendar for separate consideration as the Ordinance has been revised to adjust the source for the
appropriated funds.
City Manager Atteberry stated Council will consider different options relating to Item No. 27,
Second Reading of Ordinance No. 057, 2013 Terminating the Moratorium Imposed by Ordinance
No. 145, 2012 with Respect to Oil and Gas Operations Conducted Under an Oil and Gas Operator
Agreement Between the City and Prospect Energy, LLC and Exempting Such Operations from the
Prohibitions Contained in Section 12-135 ofthe City Code, and will need to consider the Resolution
relating to this item prior to the Ordinance.
Citizen Participation
Eric Sutherland, 3520 Golden Currant, discussed tax increment financing and stated the
methodology used by the County Assessor does not provide accurate assessments of increment
versus base.
Stacy Lynne, 305 West Magnolia, asked that Council read an update on her son's custody case. She
opposed new fees at Northside Atzlan Center.
Diane Smith, Senior Advisory Boardmember, supported the North Front Range Transit Vision
Feasibility Study.
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John Anderson, Larimer County resident, opposed money spent toward consumerism and opposed
the definition of the triple bottom line in Fort Collins.
Per Hogestad, 1601 Sheeley Drive, expressed concern regarding the City's planning process and
requested that a new planner be assigned to the project in his neighborhood.
Jack Applin, 1608 Sheeley Drive, expressed concern regarding consistency in the Land Use Code.
Rick Hoffman, 1804 Wallenberg Drive, stated he had hoped the West Central Neighborhood Plan
would offer more protection to existing neighborhoods. He requested additional examination of the
Plan in the development review process.
Vida Hogestad, 1601 Sheeley Drive, asked why the newly -hired Neighborhood Development
Review Liaison has not been a resource for her neighborhood.
TJ McManus, 1605 Sheeley Drive, stated the City planner for the development proposal in this
neighborhood has considered his home and the surrounding homes to be 2-story homes in order to
be more compatible with the proposed development. He argued the homes are single -story ranch
homes and are considered so by several entities.
Reuel Rolston, 1612 Sheeley Drive, stated the development team has not solicited input from the
neighborhood or allowed a neighborhood meeting process for the proposed development in his
neighborhood.
Ruth Hufbauer, 1609 Sheely Drive, expressed concern regarding the planning process.
Jana Brandes, 1600 Sheeley Drive, requested development be done in an intelligent, compatible
way.
Deb Applin, 1608 Sheeley Drive, expressed concern that historic designation does not apply to the
rear of the house with regard to future development. She suggested the development go before the
Landmark Preservation Commission for suggestions.
Mike Pruznick, 636 Castle Ridge Court, expressed concern regarding the processes relating to
boards and commissions and Council.
Ray Martinez, 4121 Stoneridge Court, expressed concern regarding the amount of liquor licenses
in North Fort Collins.
Sandy Lemburg, 300 Remington, announced a March Against Monsanto on Saturday at Library
Park.
Matthew Martinez, Fort Collins resident, thanked Council and staff for hard work regarding Frack
Free Fort Collins.
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Citizen Participation Follow-up
Mayor Weitkunat stated an application has been filed for development review regarding the
development in the Sheeley neighborhood; therefore, Council cannot participate in the discussion.
She stated planning staff will take into consideration the issues and respond appropriately.
Councilmember Cunniff stated he has expressed concern regarding the planning process and
encouraged additional work on ease of citizen input.
Councilmember Overbeck requested follow-up regarding a petition mentioned by one of the
citizens. City Manager Atteberry stated the issue of potentially fraudulent acquisition of petition
signatures was presented to Police Chief Hutto and Council will receive follow-up information.
Councilmember Campana stated staff has made considerable improvements on the planning process,
including the development of the Neighborhood Development Review Liaison position, and noted
more of this type of dialogue will occur as more infill and redevelopment projects occur.
Councilmember Conniff requested a report on the fee structure for the Northside Atzlan Center.
Councilmember Campana noted some background research may already exist regarding the
saturation of liquor licenses.
Councilmember Troxell requested additional information related to the Northside Atzlan Center
fees.
CONSENT CALENDAR
6. Consideration and Approval of the Minutes of the April 29 Adjourned Meeting,
Second Reading of Ordinance No. 066, 2013, Appropriating Prior Year Reserves and
Unanticipated Revenue in the General Fund for Cultural Development and Programming
Activities, Tourism Programming, and the Fort Collins Convention and Visitors Bureau
This Ordinance, unanimously adopted on First Reading -on May 7, 2013, appropriates
$139,465, of which $57,571 is For 2013 Cultural Development and Programming Activities
(Fort Fund), $9,842 for 2013 Tourism Programming (Fort Fund), and $72,052 for 2013 Fort
Collins Convention and Visitors Bureau (CVB) from Unanticipated Revenue (Lodging Tax)
and Prior Year Reserves (unspent appropriations) in the General Fund Lodging Tax
Reserves. Lodging Taxes for 2012 were estimated at $815,000; actual Lodging Tax
revenues collected equaled $1,011,840 ($196,840 over estimate). In 2013, the Fort Collins
CVB is due to receive $740,552 based on 2012 Lodging tax collections and prior year
reserves. However, the CVB has already received $65,736 of the unanticipated $137,788
Lodging tax revenue in 2012 so only $72,052 is needed to be appropriated to the Fort Collins
CVB.
8. Second Reading of Ordinance No. 067, 2013 Amending Resolution 2013-001, Ordinance
No. 006, 2013, and Ordinance No. 007, 2013, to Correct an Error in the Naming of the
May 21, 2013
Annexation as "Hansen 'Annexation" by Renamingthe Annexation "Hansen Farm
Annexation."
In January and February of this year, the City Council adopted Resolution 2013-001,
Ordinance No. 006, 2013 and Ordinance No. 007, 2013, all pertaining to the what was called
the "Hansen Annexation." This reference to the "Hansen Annexation" was in error because
the reference should have been to "Hansen Farm" Annexation. The purpose of this
Ordinance, unanimously adopted on First Reading on May 7, 2013, is to correct that error.
9. First Reading of Ordinance No. 069, 2013, Appropriating Prior Year Reserves in the Keep
Fort Collins Great Fund to Support the Landmark Rehabilitation Loan Program for 2013.
This is a request for an appropriation of $33,000 to support the City's Landmark
Rehabilitation Loan Program from prior years in the Keep Fort Collins Great Fund (KFCG).
The Landmark Rehabilitation Loan Program is a highly successful financial incentive
program for encouraging the sustainable revitalization of historic residential and commercial
structures. The Program was funded with Keep Fort Collins Great funds in the amount of
$25,000 each year for 2013-2014. However, this year alone, the popular program received
over $65,000 in loan funding requests from 12 applicants for 24 projects costing over
$206,200 in materials and services. Without Rehabilitation Loan Program funding, many of
these projects could not proceed.
The request is for the use of KFCG Other Community Priority prior year reserves created
by the 2012 unspent Design Assistance Program (DAP) budget. Both the Loan Program and
the DAP were funded in 2012 from KFCG - Other 'Community Priorities. These two
incentive programs are closely linked sub -programs of the Historic Preservation Program,
and provide a continuum of financial support for qualified historic preservation projects.
10. First Reading of Ordinance No. 076, 2013, Appropriating General Fund Reserves for the
Platte River Power Authority Transmission Line Relocation Project Located on the
Woodward Property.
Council approved.the Woodward incentive package in April 2013. As a part of that
agreement, Woodward agreed to advance funds to support the relocation of the Platte River
Power Authority (PRPA) Transmission Line. This Ordinance appropriates $1,297,080 from
the General Fund Reserves for the relocation of the PRPA transmission line. Immediate
appropriation is needed to allow the transmission line relocation to move forward so that
Woodward's building site plans may remain on schedule. Delay in authorizing the
appropriation may necessitate the need for PRPA to construct and remove a temporary
transmission line as well as design and construct the relocated permanent transmission line.
This effort would require that PRPA incur additional costs.
11. First Reading of Ordinance No. 070, 2013, Amending Section 4-196 of the City Code so as
to Changethe Violation of Interference with Animal Control Officers from a Civil Infraction
to a Criminal Misdemeanor Offense.
On February 19, 2013, City Council adopted Ordinance No. 021, 2013, amending Chapter
4 of the City Code decriminalizing certain offenses related to the care and keeping of
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animals. This change was intended to include all animal offenses that constitute
neighborhood nuisances. After further deliberation, Animal Control recommends keeping
the section pertaining to interference with an animal control officer as a criminal
misdemeanor. Staff recommends changing this Code section from a civil infraction to a
criminal misdemeanor.
12. First Reading of Ordinance No. 071, 2013, Amending Section 19-65 of the City Code
Related to the Service of a Civil Citation.
In an effort to correct an inadvertent change that occurred with a previous Code change, this
amendment will provide the ability for a civil citation to be issued immediately for repeated
civil infractions. This will apply to a second or subsequent violation within a twelve (12)
month period for the same violation. This process already applies for Land Use Code
Section 3.8.16 pertaining to occupancy limits, so this change would make the process
consistent for civil infractions. Additionally, this Code change specifies that a civil citation
may be issued immediately for animal code violations.
13. First Reading of Ordinance No. 072, 2013, Amending Sections 19-36 and 19-41 of the City
Code Pertaining to Municipal Court Referees.
This Ordinance makes two minor changes to the Code provisions relating to Municipal
Court Referees. First, it removes the residency requirement for such Referees from Section
19-36 so that the Assistant Municipal Judges, who lives outside the City limits, can serve as
a back-up Referee, especially on animal infraction cases. Second, it revises Section 19-41
so that all Referees have the same authority to reduce or waive penalties and assessments
when appropriate. It removes the previous distinction between the authority of the Parking
Referee and the Civil Infraction Referee, which was creating some confusion.
14. First Reading of Ordinance No. 073, 2013, Amending the City Code to Grant Revocable
Permits to Non -City Utilities in Annexed Areas and Correct Internal References
This Ordinance eliminates the requirement that a non-Cityutility provider apply for a permit
to continue providing electric service to properties annexed into the city. A revocable permit
would automatically be granted at annexation and revoked upon transfer of service.
The second proposed Code change would allow the Utilities Executive Director to adopt
minor technical revisions that clarify an existing standard or improve conformity toward best
engineering practices.
15. First Reading of Ordinance No. 074, 2013, Amending the Citv Code to Authorize
Administrative Adoption of_Minor Rule_ Revisions, Clarifications, and Interconnection
Project Standards.
This item grants the Utilities Executive Director authority to approve temporary exemptions
or technical modifications to the City's various electric utility regulations for the purpose of
supporting City -managed special pilot projects, equipment testing or research partnerships.
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This authority will not be extended to allow exemptions of such regulations and standards
to on going operations or services provided to Utility customers not participating in testing
or research projects.
16. First Reading of Ordinance No. 075, 2013, Authorizing the Purchasing Agent to Enter into
Standard Power Purchase Program Agreements with Solar Photovoltaic System Owners for
up to 20 Years.
17.
Fort Collins Utilities' Solar Power Purchase Program (FCSP3) encourages the installation
of new local solar systems on behalf of all Utilities customers in support of Fort Collins
renewable energy commitments under the Colorado Renewable Energy Standard (RES). The
basis of the FCSP3 is a fixed -price, 20-year Power Purchase Agreement (PPA) between Fort
Collins Utilities and photovoltaic system owners for solar energy generation. Program
funding was approved through the budget process. This action is necessary to authorize the
required long-term (20 year) purchase power agreements.
Street Project Development Plan.
On February 13, 2013, an Administrative Hearing was held to consider approval of the 621
South Meldrum Street Project Development Plan and Modification of Standard to Section
3.2.2(J). The Hearing Officer issued a written decision on February 25, 2013 to approve the
proposed Project Development Plan and Modification of Standard, with two conditions. On
March 19, 2013, an Amended Notice of Appeal was filed byAlan, Eric and Walter Skowron.
On May 7, 2013, City Council voted 7 - 0 to uphold the decision of the Hearing Officer,
concluding that the evidence presented did not indicate the Hearing Officer failed to conduct
a fair hearing either by considering evidence relevant to the Hearing Officer's findings
which was substantially false or grossly misleading or by failing to receive all relevant
evidence offered by the Appellants.
In order to complete the record regarding this appeal, Council should adopt a Resolution
making findings of fact and finalizing its decision on the Appeal.
18. Resolution 2013-047 Adopting the Recommendations of the Cultural Resources Board
Regarding Fort Fund Disbursements.
The Cultural Development and Programming and Tourism Programming accounts (Fort
Fund) provide grants to fund community events. This Resolution will adopt the
recommendations from the Cultural Resources Board to disburse these funds.
19. Resolution 2013-048 Authorizing the Lease of City -owned Property at 906 East Stuart Street
to Fort Collins Waldorf Education Association, Inc. for up to Two Years.
Since August 2006, the City has leased 906 East Stuart to Fort Collins Waldorf Education
Association, Inc., known as River Song Waldorf School. River Song Waldorf School
continues. to meet the national Community Development Block Grant Funding ("CDBG")
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criteria by serving a majority (51 % or more) of low -moderate income clients below 80% of
the Area Median Income. This Resolution authorizes the lease of the property to River Song
Waldorf School for an additional two years.
20. Resolution 2013-049 Authorizing the Execution of the First Amendment to the
Intergovernmental Agreement Establishing the Boxelder Basin Regional Stormwater
Authority.
The Boxelder Basin Regional Stormwater Authority (BBRSA) was established by an
intergovernmental agreement (IGA) between the City of Fort Collins, Latimer County and
the Town of Timnath to fund and implement regional stormwater improvements.
Staff recommends approval of the first amendment to the IGA in order to:
Obtain approval of the member governments for the BBRSA to accept a loan from
the Colorado Water Conservation Board (CWCB) to fund the design and
construction of the remaining projects;
Authorize the BBRSA to determine and make minor revisions to properties within
the Service Area of the BBRSA by designating areas as "non -tributary areas", and
to grant fee credits to other areas within the Service Area; and
Establish a sunset provision such that upon completion of the Projects, payment of
all debt incurred by the Authority for the construction of the Projects, and agreement
among the Members as to any continuing obligation for operation and maintenance
of any Authority projects, the BBRSA can be terminated.
21. Resolution 2013-050 Nominating Mayor Karen Weitkunat as a Candidate for Re-election
to the Executive Board of the Colorado Municipal League.
This Resolution formally endorses the nomination of Mayor Karen Weitkunat as a candidate
to the Executive Board of the Colorado Municipal League. Mayor Weitkunat is an active
participant and continues to represent the City well as a member of the Colorado Municipal
League Executive Board.
***END CONSENT***
Ordinances on Second Reading were read by title by City Clerk Nelson.
7. Second Reading of Ordinance No. 066, 2013, Appropriating Prior Year Reserves and
Unanticipated Revenue in the General Fund for Cultural Development and Programming
Activities, Tourism Programming, and the Fort Collins Convention and Visitors. Bureau.
8. Second Reading of Ordinance No. 067, 2013 Amending Resolution 2013-001; Ordinance
No. 006, 2013, and Ordinance No. 007, 2013, to Correct an Error in the Naming of the
Annexation as "Hansen Annexation' by Renaming the Annexation "Hansen Farm
Annexation."
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May 21, 2013
27. Second Reading of Ordinance No. 057, 2013 Terminating the Moratorium Imposed by
Ordinance No. 145, 2012 with Respect to Oil and Gas Operations Conducted under an Oil
and Gas Operator Agreement Between the City and Prospect Energy, LLC and Exempting
Such Operations from the Prohibitions Contained in Section 12-135 of the City Code.
Ordinances on First Reading were read by title by City Clerk Nelson.
First Reading of Ordinance No. 069, 2013, Appropriating Prior Year Reserves in the Keep
Fort Collins Great Fund to Support the Landmark Rehabilitation Loan Program for 2013.
10. First Reading of Ordinance No. 076, 2013, Appropriating General Fund Reserves for the
Platte River Power Authority Transmission Line Relocation Project Located on the
Woodward Property.
11. First Reading of Ordinance No. 070, 2013, Amending Section 4-196 of the City Code so as
to Change the Violation of Interference with Animal Control Officers from a Civil Infraction
to a Criminal Misdemeanor Offense.
12. First Reading of Ordinance No. 071, 2013, Amending Section 19-65 of the City Code
Related to the Service of a Civil Citation.
13. First Reading of Ordinance No. 072, 2013, Amending Sections 19-36 and 19-41 of the City
Code Pertaining to Municipal Court Referees.
14. First Reading of Ordinance No. 073, 2013, Amending the City Code to Grant Revocable
Permits to Non -City Utilities in Annexed Areas and Correct Internal References.
15. First Reading of Ordinance No. 074, 2013, Amending the City Code to Authorize
Administrative Adoption of Minor Rule Revisions, Clarifications, and Interconnection
Project Standards.
16. First Reading of Ordinance No. 075, 2013, Authorizing the Purchasing Agent to Enter into
Standard.Power Purchase Program Agreements with Solar Photovoltaic System Owners for
up to 20 Years.
Councilmember Overbeck withdrew Item No. 20, Resolution 2013-049 Authorizing the Execution
of the First Amendment to the Intergovernmental Agreement Establishing the Boxelder Basin
Regional Stormwater Authority, from the Consent Calendar.
Councilmember Conniff withdrew Item No. 16, First Reading of Ordinance No. 075, 2013,
Authorizing the Purchasing Agent. to Enter into Standard Power Purchase Program Agreements
with Solar Photovoltaic System Owners for up to 20 Years, from the Consent Calendar.
Councilmember Campana withdrew Item No. 19, Resolution 2013-048 Authorizing the Lease of
City -owned Property at 906 East Stuart Street to Fort Collins Waldorf Education Association, Inc.
for up to Two Years, from the Consent Calendar.
May 21, 2013
Gary Wockner, 516 North Grant, withdrew Item No. 20, Resolution 2013-049 Authorizing the
Execution of the First Amendment to the Intergovernmental Agreement Establishing the Boxelder
Basin Regional Stormwater Authority, from the Consent Calendar.
Mayor Pro Tern Horak made a motion, seconded by Councilmember Overbeck, to adopt all items
not withdrawn from the Consent Calendar. Yeas: Campana, Horak, Weitkunat, Cunniff, Troxell and
Overbeck. Nays: none.
THE MOTION CARRIED.
Staff Reports
Poudre Fire Authority Chief Tom DeMint stated the wildland fire situation has improved
dramatically over the last couple months.
Captain Kelly Close provided additional details regarding the wildland fire forcast.
Councilmember Reports
Mayor Weitkunat reported on a Colorado Municipal League luncheon hosted by Fort Collins and
other Northern Colorado cities. She also reported the Airport Steering Committee is continuing
work on finding an airline provider for the Airport.,
Ordinance No. 076, 2013,
Appropriating General Fund Reserves for the Platte River Power Authority Transmission
Line Relocation Project Located on the Woodward Property. Adopted on First Reading
The following is the staff memorandum for this item.
"EXECUTIVE SUMMARY
Council approved the Woodward incentive package in April 2013. As a part of that agreement,
Woodward agreed to advance funds to support therelocation of the Platte River Power Authority
(PRPA) Transmission Line. This Ordinance appropriates $1,297,080 from the General Fund
Reserves for the relocation of the PRPA transmission line. Immediate appropriation is needed to
allow the transmission line relocation to move forward so that Woodward's building site plans may
remain on schedule. Delay in authorizing the appropriation may necessitate the need for PRPA to
construct and remove a temporary transmission line as well as design and construct the relocated
permanent transmission line. This effort would require that PRPA incur additional costs.
BACKGROUND /DISCUSSION
OnApril2, 2013, Council adopted Ordinance No. 056, 2013, Appropriating General Fund Reserves
to Fund a Reimbursement Reserve Fund in Connection with an Agreement between the City,
Downtown Development Authority (DDA) and Woodward, Inc., Regarding the Link-N-Green
Development. Ordinance No. 056, 2013, provided that Woodward would advance up to $6.05
million to the City, to be repaid by Pledged Tax Increment Revenues ("TIF') to fund certain public
improvements, including right-of-way improvements and open space restoration, as well as the
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relocation ofa power transmission line. Furthermore, in Ordinance No. 056, 2013, the City agreed
to appropriate $2.272 million for a reimbursement to the reserve fund to ensure the adequate
support for construction of the Improvements. Because the Woodward advance funds are not yet
available, City staff is requesting the immediate appropriation of $1, 297, 080 from City reserves in
order to allow the relocation of the transmission line to begin. The Cityfunds will be reimbursed
by the Woodward advance.
On April 15, 2013, the City entered into an Intergovernmental Agreement ("IGA') with PRPA,
which provided that the City of Fort Collins will pay for the relocation and installation of the
2301115kV transmission line that currently crosses the Woodward property (Attachment 1).
Design plans resulted in placing one new transmission tower in the Williams Natural Area just
south of the Mulberry/Lemay Avenue intersection and the removal of three transmission towers
northwest of Mulberry; two in the Springer Natural Area and one at the Water Reclamation natural
area. Ordinance No. 063, 2013, authorizing the necessary easements from the City, was adopted
on second reading on May 7, 2013.
Specifically, one pole will be added in the Williams Natural Area (reference pole #6, yellow line,
Attachment 2). The general size of the pole will be approximately 100 to 125 feet tall and 3 to 5 feet
in circumference at the base, depending upon the distance from pole #5. Placement will be
approximately 150. feet south of the existing bike trail and approximately 60, feet west ofthe sidewalk
thatparallels south bound Lemay Avenue. Contingency placement will be known once the following
items are specified:
• Signal light/pole on the northwest corner of Mulberry and Lemay for the westbound traffic
on Mulberry
• Proposed restaurant placement at the southeast end of the Woodward Property
• New bike trail route across Lemay.
FINANCIAL I ECONOMIC IMPACTS
The transmission line relocation is a critical path component of the redevelopment of the new
Woodward site. Commitment from the City to PRPA is needed immediately so materials can be
secured to complete the project and avoid the need and cost oftemporary transmission lines. Staff
is requesting an appropriation for $1,297,080 from the General Fund Reserve. Additional
appropriations will be forthcoming for the other portions of the project described above. "
Mike Beckstead, Chief Financial Officer, stated the change in this item is the source of funding for
the appropriation, which should be identified as unanticipated revenue per the contract between the
City and Woodward.
Mayor Pro Tem Horak made a motion, seconded by Councilmember Troxell, to adopt Ordinance
No. 076, 2013, as amended, on First Reading.
City Attorney Roy read the Ordinance amendments.
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Councilmember Cunniff asked if any type of contingency is built in if the cost goes over the
estimate. Beckstead replied in the affirmative and noted any additional dollars would belong to the
City, not PRPA.
The vote on the motion was as follows: Yeas: Horak, Weitkunat, Cunniff, Troxell, Overbeck and
Campana. Nays: none.
THE MOTION CARRIED.
Ordinance No. 075, 2013,
Authorizing the Purchasing Agent to Enter into Standard Power Purchase
Program Agreements with Solar Photovoltaic System Owners for
up to 20 Years, Adopted on First Reading
The following is the staff memorandum for this item.
"EXECUTIVE SUMMARY
Fort Collins Utilities ' Solar Power Purchase Program (FCSP3) encourages the installation of new
local solar systems on behalf of all Utilities customers in support ofFort Collins renewable energy
commitments under the Colorado Renewable Energy Standard (RES). The basis of the FCSP3 is a
fixed price, 20-year Power Purchase Agreement (PPA) between Fort Collins Utilities and
photovoltaic system owners for solar energy generation. Program funding was approved through
the budget process. This action is necessary to authorize the required long-term (20 year) purchase
power agreements.
BACKGROUND /DISCUSSION
The basis of the FCSP3 is a fixed price, 20 year Power Purchase Agreement (PPA) between Fort
Collins Utilities and photovoltaic system owners for solar energy generation. This arrangement is
commonly known within the solar industry as a `feed -in -tariff model. " The customer may enter
agreements with solar developers for the installation of the system, which also may include
financing, lease purchase and rooftop property leasing.
The energy output of the solar system goes directly to Fort Collins Utilities' electric grid and
customers arepaid based on the metered output of the system, according to the PPA. The agreement
does not alter the customer's electric bill. This approach is sometimes referred to as "in front of the
meter ", implying that the interconnection with the grid is on the utility side of the customer's billing
meter. The PPAs also convey the Renewable Energy Credits (RECs)—the right to claim the
renewable energy attributes of a project —to Utilities to be used toward compliance with the
Colorado RES.
Expanding customer -sited solar renewable energy supports the community's Climate Action Plan
and Energy Policy greenhouse gas reduction goals while supporting local investment.
Key Issues
Two key issues were discussed at length to arrive at the proposed program, (1) incentive pricing
approach and, (2) "in front of vs. "behind" the meter. For the first issue, a competitive bidding
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approach to set offer prices was considered. After tracking the limited success of several other
utility programs that used a bidding approach, staff concluded that a standard price approach was
recommended. The recommendations related to the second key issue are based on balancing benefits
to all rate paying customers, participating customers and the solar industry. Customers understand,
and some have asked for the net metered approach because itprovidesfor a "hedge "against future
utility price increases. While attractive to the participating customer, the "hedge" is an uncertain
financial element which is borne by all other ratepayers. The FCSP3 offers benefits to all rate
payers by obtaining renewable energy at a price competitive with other paths to RES commitments.
The FIT approach ("in front of the meter') makes the offer simple and well defined for all parties
and limits uncertainty related tofuture electricity rates. Thestablecontractpriceprovidesfinancial
certainty for all parties and encourages partnerships between solar developers, host customer sites
and sources offinancing.
The FCSP3 fact sheet is included as Attachment 1. Page three lists key attributes of the proposed
program along with the purpose and benefits of each attribute.
Renewable Energy Standard
The Colorado Renewable Energy Standard (RES) was originally established by voters as
Amendment 37, and has been modified by the Colorado legislature. Fort Collins' commitments are
a minimum of 3% through 2014, 6% in 2015 and 10% in 2020.
Year
Minimum
Actual
Electricity Amount
(megawatt -hours)
2012
3.0%
3.4%
53,000
2015
6.0%
TBD
90,000
2020
10.0%
TBD
150,000
Utilities current renewable energy commitments are met through a mix of wind energy projects,
renewable energy credits and local solar installations. Faced with making new investments in
renewable energy, Utilities proposed to meet a portion of its commitment through a program that
focuses on the installation of solar systems on local customers' premises. Similar successful
programs are in place in a number of locations throughout the country and world.
It is important to note that voluntary renewable energy purchases through Utilities' Green Energy
Program do not count towards the overall renewable energy commitments under the RES.
The 2015 renewable energy target corresponds to an increasefrom current renewable energy levels
of approximately 40,000 megawatt -hours (M"). There are several ways Utilities could meet the
increased requirements, including:
1. Purchase of qualified renewable energy credits.
2. Wind energy, through development or participation in new utility -scale projects.
3. Solar energy, through development or participation in new utility -scale projects.
4. Solar energy, through a program which supports the installation of systems located locally
on customer premises (e.g., on Utilities' electric distribution system).
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The RES includes the option to use "multipliers" that provide additional benefits based on
renewable energy technology and location. The RES multiplier for locally based solar energy is 3X,
meaning that solar energy produced counts three times towards the RES obligation. The multiplier
was designed to make solar energy investments competitive with wind energy investments.
The solar projects from this program are expected to generate approximately 7,500 megawatt -hours
annually. Utilizing the_3x multiplier, this amount will meet approximately 25 percent ofthe overall
renewable energy commitmentfor 2015 (50% ofthe additional 2015 gap). Additional resources will
still be required to meet the total 2015 commitment, and are expected to be met via additional
purchases from Platte River Power Authority.
Next Steps
Utilities will develop the application materials in order to open an initial application period in July
2013. A second application period will occur in the first quarter of 2014. All solar systems need
to be installed by July 2015 in order to meet the RES commitments.
Other Solar Options
Utilities also offers small-scale solar rebates with net metering and voluntary green energy
purchase options. Customers can visitfcgov.com/solar to view current programs thatsupport solar
installations.
FINANCIAL /ECONOMIC IMPACTS
PPA purchases under the FCSP3 are to be capped at Slmillion per year funded by a 112% electric
rate increase in each ofyears 2013 and 2014. Funding commitments for these power purchases will
persist for the 20 year term of the agreements. At the end of the agreement term, Utilities will
consider the option to establish new agreements based on continuing needs for community
renewable energy.
The installation of approximately five megawatts of new solar energy within Fort Collins is also
expected to. provide local economic benefits through the purchase and installation of the solar
systems. The distribution amongst local companies of on-goingpower purchase payments ($1 million
annually) will depend upon the structure of agreements between customers, solar developers and
financial partners.
Under the preferential treatment by the Colorado RES oflocally deployed solar electric generation,
these green power purchases are competitive with other alternatives (wind power) available
currently.
ENVIRONMENTAL IMPACTS
The solar projectsfrom this program are expected to generate approximately 7,500 megawatt -hours
of electricity. Using current conversion factors, this will result in avoiding over 6,000 metric tons
of carbon emissions. The program will also greatly expand local generation, helping to support the
transition to a dynamic and distributed smart grid system. Successful program results may also
provide the groundworkfor continued program expansion in future years.
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BOARD / COMMISSION RECOMMENDATION
Staff presented information about the program to the Energy Board at its regular meeting on May
2. The Board completed a memo (Attaclhment2) which noted that, "The Energy Board has reviewed
the pilot program with staffand supports the overall objectives and proposed attributes. Therefore,
the Board requests City Council approve the Purchasing Manager be granted authority to energy
into 20 year agreements for the Fort Collins Solar Power Purchase Program. "
PUBLIC OUTREACH
Utilities began seeking feedback from business customers and solar industry stakeholders in
January. In addition to one-on-one meetings with key account customers, Utilities initiated an on-
line survey of business customers in April with 112 responses. Survey results indicated strong
interest in the program and general agreement with the overall goals (Attachment 3). Roughly half
of respondents indicate interest to participate.
The survey results and additional feedback were discussed at a public open house April 23rd,
attended by 28 people. Four key questions were:
• direct to grid program proposal versus benefits of net metering
• whether property tax will be assessed against the PV installations
• how businesses as building tenants might be able to participate
• how these systems will be treated at the head of the 20-year PPA term.
Solar industry feedback was solicited through the Colorado Solar Energy Industries Association
(COSEIA). Specific solar industry stakeholders also participated in the survey and open house. "
Lisa Rosintosky, Utilities Customer Connections Manager, introduced a presentation and noted this
item is related to the fixed -price 20-year power purchase agreement.
John Phelan, Energy Services Manager, stated the purpose of the program is to procure new locally -
installed solar capacity on behalf of all rate payers to help meet the community's renewable energy
commitments to the Colorado Renewable Energy Standard (RES). He stated the specific action
before Council will authorize the purchasing agent to enter into 20-year agreements.
Eric Sutherland, 3520 Golden Currant, asked who sets the rates for this program and stated the item
should mention time of use.
Mike Pruznick, 636 Castle Ridge Court, questioned moving forward at this time and expressed
concern this may not be consistent with the upcoming PRPA 20-year plan.
Councilmember Conniff asked whether the first come -first served method was considered versus
other methods which may be more beneficial and asked if there may be a way to structure this so
as to allow potential dovetailing with a beneficial PRPA program. Phelan stated the plan is to have
an application window and a lottery type of system will be used if there be more than enough
qualifying projects.
Councilmember Cunniff asked about the criteria for the projects. Phelan replied criteria are
currently being developed based on other successful programs around the country.
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Councilmember Cunniff asked about metering design considerations. Phelan replied these projects
will have a different set of interconnection requirements than the current small-scale systems.
Councilmember Cunniff asked about the 20-year tern. Phelan replied there is a time limit to take
advantage of the multipliers embedded in the original Amendment 37 and subsequent legislation for
the Colorado RES and this is only a small piece of an overall renewable energy program.
CouncilmemberTroxell made a motion, seconded by Councilmember Campana, to adopt Ordinance
No. 075, 2013, on First Reading.
Councilmember Cunniff supported the concept but requested staff responses to questions prior to
Second Reading.
Councilmember Troxell stated this item contributes to additional distributed energy resources. He
supported a time of use approach.
Mayor Pro Tern Horak noted the Energy Board strongly recommended this item for approval.
The vote on the motion was as follows: Yeas: Weitkunat, Campana, Overbeck, Cunniff, Horak and
Troxell. Nays: none.
THE MOTION CARRIED.
Resolution 2013-048
Authorizing the Lease of City -owned Property at 906 East Stuart Street to Fort Collins
Waldorf Education Association, Inc. for up to Two Years, Adopted
The following is the staff memorandum for this item.
"EXECUTIVE SUMMARY
Since August 2006, the City has leased 906 East Stuart to Fort Collins Waldorf Education
Association, Inc., known as River Song Waldorf School. River Song Waldorf School continues to
meet the national Community Development Block Grant Funding ("CDBG') criteria by serving a
majority (51 % or more) of low -moderate income clients below 80% of the Area Median Income.
This Resolution authorizes the lease of the property to River Song Waldorf School for an additional
two years.
BACKGROUND /DISCUSSION
The property at 906 East Stuart was acquired by the City in 1985 for use as a child care facility.
CDBG funding was used to purchase the property. City properties purchased with CDBG funding
are restricted to a nominal rental rate and must be used by non-profit organizations that meet the
CDBG criteria.
906 East Stuart was a private residence at the time of purchase. The building contains a total of
2, 071 square feet. The ground floor contains], 687 square feet and is the main area of use for the
school. The second floor, containing 384 square feet, is only accessible from an outside stairway
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entrance and is used for its office area and storage. The lot size is 0.3 acres. The condition of this
facility is fair.
River Song Waldorf School has been leasing the property since August 2006. It operates a year-
round early childhood program, and other associated uses, for pre -kindergarten children.
Due to the requirements from CDBG, the rent for ihis.facility is $5 peryear. The market rent would
be $1,200 to 51,350 per month if this property was rented as a private residence. The tenant is
responsible for utilities, maintenance, and improvements. The City is not responsible for any
maintenance expense during the lease. River Song Waldorf School has been a good tenant and has
taken good care of the property. In addition to its routine maintenance expenses, it has also
replaced the,furnace and painted the exterior at its cost.
FINANCIAL /ECONOMIC IMPACTS
The Tenant is responsible for all maintenance, repair, and necessary upgrades, including, but not
limited to, all landscaping maintenance and upkeep (including trees), snow removal, interior and
exterior painting, appliances, building systems upkeep, etc. The Tenant pays all utility costs. The
Tenant pays $5 per year to the City for leasing the property." ,
Councilmember Campana withdrew from the discussion of this item due to a conflict of interest.
Mayor Pro Tern Horak made a motion, seconded by Councilmember Overbeck, to adopt Resolution
2013-048. Yeas: Cunniff, Troxell, Overbeck, Horak and Weitkunat. Nays: none.
THE MOTION CARRIED.
Resolution 2013-049
Authorizing the Execution of the First Amendment to the Intergovernmental Agreement
Establishing the Boxelder Basin Regional Stormwater Authority: Adopted
The following is the staff memorandum for this item.
"EXECUTIVE SUMMARY
The Boxelder Basin Regional Stormwater Authority (BBRSA) was established by an
intergovernmental agreement (IGA) between the City ofFort Collins, Larimer Countyand the Town
of Timnath to,fund and implement regional stormwater improvements.
Slaff recommends approval of the first amendment to the IGA in order to:
Obtain approval of the member governments for the BBRSA to accept a loan from the Colorado
Water Conservation Board (CWCB) to fund the design and construction of the remaining projects;
1. Authorize the BBRSA to determine and make minor revisions to properties within the Service
Area of the BBRSA by designating areas as "non -tributary areas ", and to grant fee credits
to other areas within the Service Area; and
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Establish a sunset provision such that upon completion of the Projects, payment of
all debt incurred by the Authorityfor the construction ofthe Projects, and agreement
among the Members as to any continuing obligation for operation and maintenance
of any Authority projects, the BBRSA can be terminated.
BACKGROUND /DISCUSSION
On August 20, 2008, the City of Fort Collins, Larimer County and the Town of Wellington entered
into an intergovernmental agreement (IGA) to establish the Boxelder Basin Regional Stormwater
Authority (BBRSA). The BBRSA was established to fund and implement the regional stormwater
improvements outlined in the Boxelder Regional Stormwater Master Plan. The stormwater
improvements benefit the citizens ofFort Collins through protection of the health, property, safety
and welfare of the city and by enhancing the ecological health of Boxelder Creek
It is in Fort Collins' best interests to participate in the BBRSA in order to:
• Make already cost effective improvements more economical by sharing costs;
• Reduce substantial public infrastructure costs for road crossings;
• Equitably share the cost between participating agencies;
• Provide economic benefits by removing undeveloped lands from the 100-Year. loodplain;
and
• Provide a cooperative approach that initiates solutions to stormwater problems in Fort
Collin 's Growth Management Area (GMA).
The BBRSA has completed the design and construction of the Coal Creek Flood Mitigation Project
and has preliminarily designed the two remaining regional stormwater projects which consist ofthe
East Side Detention Facility (also known as the Gray Lakes Project) and the Larimer/Weld Canal
Crossing Structure. Timnath (in conjunction with its TDA) has entered into an Intergovernmental
Authority with the BBRSA to participate in the funding of the remaining projects.
The BBRSA investigated potential funding scenarios (i.e., pay-as-you-go, bonding, loan) and
initially recommended in 2011 to the member entities that a bonding approach be pursued. After
additional research, the BBRSA determined the most cost efficient method of funding the regional
stormwater projects is by obtaining a loan through the Colorado Water Conservation Board
("CWCB'). According to Section 2.05 (fi of the IGA, all member entities must agree to the issuance
of debt by the BBRSA.
On January 17, 2013, representatives from Fort Collins, Larimer, Wellington and Timnath as well
as the BBRSA Board of Directors met to discuss the latest estimated regional stormwater project
cost estimates, the funding approach, a potential sunset provision, the BBRSA stormwater fee
structure, and potential revisions to the BBRSA'service area boundary. As a result of those
discussions, the BBRSA developed a draft amendment to the IGA that will:
Allow the BBRSA to accept a loan from the CWCB to fund the design and construction of
the remaining projects; and
Authorize the BBRSA to determine and make minor revisions to properties within the Set -vice
Area of the BBRSA by designating areas as "non -tributary areas ", and to grant fee credits
to other areas within the Service Area; and
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• Establish a sunset provision such that upon completion ofthe Projects, payment of all debt
incurred by the Authority for the construction of the Projects, and agreement among the
Members as to any continuing obligation for operation and maintenance of any Authority
projects, the BBRSA can be terminated.
FINANCL4L / ECONOMIC IMPACTS
The BBRSA has preliminarily designed the East Side Detention Facility (Gray Lakes Project) and
the Larimer/Weld County Crossing Structure. These are the two remaining projects needed to meet
the goals ofthe Boxelder Regional Stormwater Master Plan. Through preliminary design, the total
cost of the two projects is estimated to be approximately $9.9 million. The most cost efficient
method offunding the projects (and lowest interest rate) is by obtaining a loan through the CWCB.
The anticipated interest rate of 2.75% for the CWCB loan is significantly lower than an estimated
interest rate of 4.0%for issuance ofbonds. The BBRSA will obtain a 20-year loan, however, it may
be possible to pay it off in a shorter time period (16-17 years). The loan requires a 10% local
match, which will be the responsibility of the BBRSA.
In addition to the revenue generated by stormwater fees within the BBRSA service area boundary,
the BBRSA has also obtained fundingfrom Timnath. The BBRSA entered into an intergovernmental
agreement (Boxelder/Timnath IGA, dated November 15, 2012) with Timnath and its TDA which
provides that the TDA shall participate in the funding of the projects. Pursuant to the
Boxelder/Timnath IGA, the TDA has transferred 5500, 000 to the BBRSA for use in the design ofthe
remaining projects. In addition, the TDA will reimburse the BBRSA for 25%ofthe total costs ofthe
remaining projects. The financial participation by Timnath results in a decrease in the amount of
revenue required to be collected by the BBRSA.
The combination ofannual stormwater service fee revenue collected by the BBRSA and the financial
contribution from Timnath provides sufficient funding to cover the on -going costs ofthe BBRSA and
the CWCB loan payment.
ENVIRONMENTAL IMPACTS
The IGA contains language that ensures a holistic approach toward stormwater quality best
management practices, stream stability, and habitat enhancement. Through reconfiguration of the
master plan improvements, most notably increased detention storage at the Gray Lakes Detention
Project, the BBRSA is able to eliminate the majority of Middle Basin improvements proposed in the
original Boxelder Regional Stormwater Master Plan. As a result, the need to grade or alter the
majority of Boxelder Creek south of County Road 50 has been eliminated, thereby protecting the
existing stream corridor.
Ken Sampley, Stormwater/Floodplain Program Manager, provided an overview of the Boxelder
Basin Regional Stormwater Authority. He provided information regarding the benefit -cost scenario
for the project.
Gary Wockner, 516 North Grant, stated this taxing Authority was narrowly approved after a
contentious discussion and argued this would subsidize housing development in the area of Fort
Collins that is proposed to undergo hydraulic fracturing. He requested that Councilmember
Campana recuse himself from the vote if he owns any property in the area.
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May 21, 2013
Councilmember Overbeck stated this storm line would go through the UDA area near the Budweiser
plant, which is an area of contention.
Councilmember Overbeck requested additional details regarding the financing package. Sampley
replied the loan package is at approximately a 2.5% interest rate. The financing rate structure is
lower than it would be through a bond sale so it is beneficial for the government sponsors and for
those paying the fees. He stated it is a 20-year loan commitment, though that will hopefully be paid
off sooner.
Councilmember Overbeck asked what kinds of rates could be attained in the private bond market.
Sampley replied it would likely be around 4%.
Councilmember Troxell made a motion, seconded by Councilmember Campana, to adopt Resolution
2013-049.
Mayor Weitkunat commented that this is a cooperative effort to bring forward a solution to
stormwater and flooding issues on the eastern side of 1-25.
Councilmember Campana commented that he does not own property in this area
Councilmember Overbeck stated this project has some positive aspect in terms of environmental
safety; however, he stated he would oppose this item as the project could be financed in the private
bond market rather than using taxpayer funding.
Councilmember Cunniff stated oil and gas development in this area would be in direct conflict with
any development.
Councilmember Troxell stated he would support the motion as the item addresses stormwater issues
within the City.
The vote on the motion was as follows: Yeas: Troxell, Campana, Horak and Weitkunat. Nays:
Overbeck and Cunniff.
IIr ixnazIIlfrt j[�rra
Consideration of an Appeal of the Planning and Zoning Board's March 21, 2013
Decision to Approve the Carriage House Apartments, Project
Development Plan, Planning and Zoning Board Decision Upheld
The following is the staff memorandum for this item.
"EXECUTIVE SUMMARY
On March 21, 2013, the Planning and Zoning Board considered and unanimously approved the
application for the Carriage House Apartments, Project Development Plan. The application
consisted ofa request to demolish two existing single family homes at 1305 and 1319 South Shields
Street and in their place, construct five, three story multi family buildings, with a total of 57 units
divided among one, two and three -bedroom apartments for a total of 97 bedrooms. The project is
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located in the Neighborhood Conservation Buffer (N-C-B) Zone District and is within the Transit -
Oriented Development (TOD) Overlay District.
On April 4, 2013, Joel Rovnak (Appellant) filed a Notice ofAppeal, alleging that the Planning and
Zoning Board failed to conduct a fair hearing because it allegedly considered evidence that was
substantially false and grossly misleading when approving the Project Development Plan
application.
BACKGROUND /DISCUSSION
The Applicant submitted a traffic impact study as part of the Carriage House Apartments Project
Development Plan application and the traffic impact study was accepted by the City Traffic
Engineer. The traffic impact study was provided to the Planning and Zoning Board as an attachment
to the staff report for consideration.
The staffreport to the Board included analysis of how the Project Development Plan complied with
the Land Use Code's transportation Level of Service requirements (Staff Report, pg. 10).
Under the appeals procedure contained in the City Code, the appeal is required to be considered
upon the record, the relevant provisions of the Code and Charter, the grounds for appeal cited in
the notice of appeal and the arguments made by parties -in -interest at the hearing on the appeal,
provided the arguments raised by parties -in -interest were raised in the notice of appeal.
The City Code allows for new evidence to be considered when offered by City staff or parties -in -
interest in response to questions presented by Councilmembers at the hearing. Staff is prepared to
answer questions regarding the allegations on appeal, if asked by Councilmembers.
ACTION OF THE PLANNING AND ZONING BOARD
After testimony from the Applicant, affected property owners, the public and staff, the Planning and
Zoning Board voted 6 - 0 to approve the Carriage House Apartments Project Development Plan
application with conditions.
In support of its motion to approve the Carriage House Apartments Project Development Plan, the
Board adopted the findings of fact and conclusions as contained on page 13 of the staff report.
QUESTIONS FOR COUNCIL CONSIDERATION
Did the Planning and Zoning Board fail to hold a fair hearing by considering evidence relevant to
its findings which were substantially false or grossly misleading?
ALLEGATIONS ON APPEAL
1. The traffic impact studyfalsely attributes data to the Institute of Transportation Engineers
(ITE) Trip Generation Manual
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The Appellant maintains that the Planning and Zoning Board considered the traffic impact study
which contained information relating to estimated tripgeneration which was substantiallyfalse and
grossly misleading.
The traffic impact study was included in the Planning and Zoning Board's packet for consideration
in its decision making, although the Board did not discuss the specific details of the traffic impact
study in connection with itsdecisionto approve the Project Development Plan.
Staff has prepared information regarding the data contained in the traffic impact study and is able
to answer questions regarding this allegation if asked by Council.
2. Traffic projections were further reduced for alternative modes of transportation.
In the notice of appeal, the Appellant asserts that the information contained in the traffic impact
study was further skewed by a 25% reduction in trips to account for alternative modes of
transportation.
The traffic impact study was included in the Planning and Zoning Board's packetfor consideration
in its decision making, although the Board did not discuss the 25% trip reduction contained in the
study in connection with its decision to approve the Project Development Plan.
Staff has prepared information regarding the 25% trip reduction contained in the traffic impact
study and is able to answer questions regarding this allegation if asked by Council.
3. Fort Collins Traffic Operations has established apolicy that discriminates against student
housing.
The Appellant asserts that the City and/or the traffic consultant used a recent study of student
housing trip generation in Minnesota (Spack Memorandum) to estimate trips for the Carriage House
Apartments.
The Spack Memorandum was provided to the Planning and Zoning Board at its hearing for
consideration, although the Board did not discuss the details of the Spack Memorandum during the
hearing or in connection with its decision to approve the Project Development Plan.
Staff has prepared information regarding the Spack Memorandum and is able to answer questions
regarding this allegation if asked by Council.
4. City Council has established policies prohibiting discrimination in multi family housing.
The Appellant asserts that the submitted traffic impact study was flawed because of the use of
standards used in outside municipalities that relate to student oriented housing.
The traffic impact study and the Spack Memorandum were provided to the Planning and Zoning
Board for consideration in its decision, however the Board did not discuss the Spack Memorandum
or specifics of the Traffic Impact Study during the hearing or in connection with its decision to
approve the Project Development Plan.
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Staff has prepared information regarding the submitted traffic impact study and is able to answer
questions regarding this allegation if asked by Council.
5. The negative impacts of artificially reduced traffic projections extend beyond a single
proposal.
The Appellant asserts that the adjusted trip generation estimates used in traffic impact studies was
also prevalent in other project approvals and have a negative impact. The Appellant also maintains
that the flawed trip generation will negatively impact Street Oversizing fees collected.
The Planning and Zoning Board did not discuss the impact of trip generation rates contained in the
submitted traffic impact study during the hearing or in connection with its decision to approve the
Carriage House Apartments Project Development Plan.
Staff has prepared information regarding trip generation impacts and Street Oversizing fees and
is able to answer questions regarding this allegation if asked by Council.
COUNCIL ACTION REQUESTED
Review the record and determine if the decision of the Planning and Zoning Board to approve the
Carriage House Apartments Project Development Plan should be upheld, overturned, modified, or
remanded, to the Board for further consideration. "
Councilmember Campana withdrew from the discussion of this item as he was a member of the
Planning and Zoning Board when the project came before that Board.
City Attorney Roy described the City's appeal process.
Councilmember Overbeck stated he attended the site visit.
Councilmember Troxell stated he attended the site visit and asked the Traffic Engineer about the
outcome of the traffic study which showed no need for a signalized intersection at Shields.
Councilmember Conniff stated he attended the site visit and asked questions about the physical
layout of the site.
Courtney Levingston, City Planner, stated the proposed project would demolish the existing single-
family homes located at 1305 and 1319 South Shields Street and construct five multi -family
buildings in their place. The 4.8 acre site is in the Neighborhood Conservation Buffer District and
is within the Transit Oriented Development Overlay District. Levingston stated the project was
approved by the Planning and Zoning Board on a 6-0 vote and she discussed the allegations of the
appeal which were primarily related to the failure of the Board to appropriately discuss traffic study
implications.
APPELLANT PRESENTATION
Joel Rovnak, 1308 Bennett Road, stated his appeal is based on the trip generation calculation of the
project. He provided traffic counts for apartment buildings and extrapolated that data to the
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proposed project. He stated the equation used in the traffic study used a much lower rate than it
should have and the predicted trips were then reduced by 25% due to alternative modes. He
requested that the item be remanded to the Planning and Zoning Board using trip generation rates
that adhere to the Land Use Code.
OPPONENT PRESENTATION
Carolyn White, counsel for the opponents to the appeal, argued no misleading evidence was
presented at the original hearing, with the exception of that presented by Mr. Rovnak, which was
considered by the Board. She noted this project was compliant with the Land Use Code in all
respects with no modifications sought and discussed the voluntary concessions made by the
developer to aid in neighborhood concerns. She stated Mr. Rovnak's conclusions were flawed based
on confusion between the use of bed versus dwelling units as the unit of measurement.
Matt Delich, Delich Associates, stated the traffic impact study (TIS) was prepared per City
guidelines and was accepted by City staff. He stated the most accurate trip generation variable for
student housing is beds, not dwelling units, and discussed the apparent confusion in Mr. Rovnak's
analysis. Mr. Delich discussed the conservative nature of the traffic generation analysis in the traffic
impact study.
Ms. White stated all of the allegations raised in the appeal are without merit and she requested that
Council uphold the decision of the Planning and Zoning Board approving the project.,
APPELLANT REBUTTAL
Mr. Rovnak assured Council his calculations did not confuse beds and dwelling units; he simply
offered calculations using both units to illustrate they both yield low numbers of trip generation.
He noted the letter to him from the City Traffic Engineer clearly indicates the use of consideration
of student housing.
OPPONENT REBUTTAL
Ms. White stated the way Mr. Rovnak plugged the data into the equation was not correct.
Mr. Delich stated the oversizing fees discussed by Mr. Rovnak are calculated by a different City
department and are not based on the traffic impact study.
COUNCIL DISCUSSION
Mayor Weitkunat requested staff input regarding the calculation based on beds versus dwelling units
and the City's position on multi -family housing versus student housing. Joe Olson, City Traffic
Engineer, replied he spoke before the Student Housing Action Plan committee to discuss trip
generation, at which meeting the variable of dwelling units being used for student housing projects
was discussed. He stated the committee had suggested the use of beds rather than dwelling units
in order to garner more accurate data and added the correct variables were used with the correct
equations in Mr. Delich's traffic impact study.
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Mayor Weitkunat asked if any of the information provided this evening was presented at the
Planning and Zoning Board hearing. Olson replied the traffic impact study was submitted at the
hearing.
Councilmember Troxell asked about the level of experience of Delich Associates. Mr. Delich
replied he has forty-five years of experience and his son, Joe, has thirteen years of experience and
a Professional Engineering degree, which requires standards of excellence and due diligence.
Additionally, he stated both he and his son are Professional Transportation Operation Engineers.
Councilmember Troxell asked why the state licenses engineers. Mr. Delich replied the licensing
is necessary to provide responsibility for work completed.
Councilmember Troxell asked if Mr. Rovnak had involved a Professional Engineer in his analyses.
Mr. Rovnak replied in the negative.
Councilmember Troxell noted the importance of the Professional Engineering certification in this
instance.
Councilmember Cunniff asked if multiple traffic impact studies were received by the Planning and
Zoning Board. Olson replied in the negative. Levingston replied the Traffic Impact Study prepared
by Mr. Delich was part of the information received by the Board and additional information was
provided at the hearing by Mr. Rovnak.
Mayor Weitkunat asked about the 25% reduction in trip generation for alternative modes and
whether or not that is a general City policy. Olson replied there is an initial scoping session for any
traffic impact study during which a discussion is held as to whether or not a project should receive
a reduction in trip generation.
Mayor Pro Tem Horak asked about the specific 25% amount. Olson replied it is an estimate and is
the typical amount used for multi -family housing near campus or other activity centers, although it
is calculated on a case -by -case basis.
Councilmember Conniff asked what part of campus is used when it is considered an activity center.
Olson replied there is no set distance and estimates are used to gain approximate numbers of trip
generation.
Mayor Pro Tern Horak asked about the impact of not using the 25% reduction. Olson replied not
using that reduction would not have had much impact on the requirements for the project; the level
of service at the affected intersection would have remained essentially the same.
Mayor Pro Tern Horak asked what the Planning and Zoning Board would be looking at differently
should the item be remanded. Olson replied some of these issues that have caused confusion would
be clarified.
Councilmember Troxell made a motion, seconded by Mayor Weitkunat, to uphold the Planning and
Zoning Board's decision to approve the Carriage House Apartments Project Development Plan and
that the Board conducted a fair hearing.
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Councilmember Cunniff expressed concern that the process in general is not as straight forward as
it should be, though he does not believe an unfair hearing occurred.
Mayor Weitkunat stated she is supportive of the motion based on the evidence heard and noted the
issues raised at the Planning and Zoning Board hearing were generally focused on other aspects of
the project.
Mayor Pro Tern Horak noted staff and the Planning and Zoning Board found the traffic impact study
to be appropriate and properly calculated and there was no grossly misleading evidence considered
at the hearing.
The vote on the motion was as follows: Yeas: Weitkunat, Horak, Cunniff, Overbeck and Troxell.
Nays: none.
THE MOTION CARRIED.
(Secretary's note: The Council took a brief recess at this point in the meeting.)
Items Relating to the Oil and Gas Operator Agreement Between the City and Prospect
Energy, LLC. (Continued from April 23, 2013), Adopted on Second Reading (Option 3)
The following is the staff memorandum for this item.
"EXECUTIVE SUMMARY
A. Resolution 2013-036 Approving an Amendment to the Oil and Gas Operator Agreement
Between the City and Prospect Energy, LLC (Options 1, 2 and 3).
B. Second Reading of Ordinance No. 057, 2013 Terminating the Moratorium Imposed by
Ordinance No. 145, 2012 with Respect to Oil and Gas Operations Conducted under an Oil
and Gas Operator Agreement Between the City and Prospect Energy, LLC and Exempting
Such Operations from the Prohibitions Contained in Section 12-135 of the City Code
(Options 1, 2 and 3).
On March 19, 2013, Council approved an Operator's Agreement with Prospect Energy to conduct
oil and gas operation in the city limits. The terms of the Agreement ensure stringent public health
and safety measures are in place through Best Management Practices (BMPs), which generally
exceed current requirements mandated by the Colorado Oil and Gas Conservation Commission
(COGCC), and provide strict controls on the release of methane gases and other volatile organic
compounds (VOCs). The Council also adopted on First Reading Ordinance No. 057, 2013, by a vote
of 5-1 (nays: Ohlson, absent: Poppaw), removing the Moratorium imposed by Ordinance No. 145,
2012, with respect to an Oil and Gas Operator Agreement with Prospect Energy.
Option #I -Amended Operator Agreement Resolution 2013-036
Resolution 2013-036 will further amend the Operator's Agreement with Prospect Energy to clarify
that (I) no new drilling will occur in any plugged or abandoned well in the Fort Collins Field and
that (2) all Colorado Oil and Gas Conservation Commission rules to be effective August 1, 2013 will
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apply to any exploration and drilling activities in the Undeveloped Acreage (UDA), and (3) along
the west and southern boundaries of the UDA, a 1,000 foot set -back shall be required from any
residential area in accordance with COGCC standards of measurement, and (4) the Amended
Agreement must be approved by Council and in effect on or before June 1, 2013.
Option #2—Amended Operator Agreement Resolution 2013-036
Limit the Agreement to the Fort Collins Field by removing UDA from the Operator Agreement and
prohibit re-entry into plugged and abandoned wells.
While the Whereas clauses for Options #1 and #2 have changed substantially, the substance of the
Operator Agreement in Options #1 and #2 is the same, with the exception that the Agreement needs
to be executed by June 1 instead of June 15.
Option #3—Amended Operator Agreement Resolution 2013-036
Resolution 2013-036will further amend the Operator's Agreement with Prospect Energy to include
some options in Option #1 plus thefollowing (1) certain portions oftheAgreement apply to existing
wells within the City limits ofthe Fort Collins Field, and that (2) will insure any wells drilled in the
UDA from the initial drilling phase through completion will be required to have a $10, 000, 000 per
occurrence policy that covers Pollution and Cleanup, and General Liability, that (3) increased
setbacks will be required in certain areas of the UDA, and that (4) the Amended Agreement must
be approved by Council and take effect on or before June 1, 2013.
BACKGROUND /DISCUSSION
During Council discussion on March 19, 2013, questions arose regarding the inclusion of
Undeveloped Acreage (UDA) in the Operator Agreement. Staff responded incorrectly as to when
staff was aware of the UDA. The UDA was disclosed on March], 2013. Staff received the first
Operator Agreement that included the UDA on March 7, 2013.
Councilfurther inquired as to how development ofthe UDA may occur. Generally, Prospect Energy
is limited to the terms and conditions contained in a confidential Surface Use Agreement (SUA) with
Anheuser-Busch, Incorporated signed in April 2011. According to the Larimer County mineral
lease notice (Attachment 4), the SUA is for a primary term of three years expiring March 2014. If,
at the expiration of the Primary Term of the SUA, lands not then included within a producing or
spacing unit are not engaged in drilling or reworking operations, then the lease expires. According
to the notice, an option to extend the agreement for an additional three years is available ifProspect
Energy makes an additional payment.
In addition to any requirements imposed by the SUA, any oil and gas development would be
required to comply with the Council -approved Operator Agreement. A key aspect ofthe Agreement
requires the following:
Conceptual Review —No less than thirty (30) days prior to the submission of an Application for a
Permit to Drill (APD) (note: APD is the Colorado Oil and Gas Conservation Commission (COGCC)
permitting process), Prospect Energy will schedule a meeting with the City to review the proposed
new well or drilling activity. The goal of this meeting would be for staff and the applicant to review
the proposed oil and gas operation in a manner that ensures compliance with the operator
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agreement and applicable state and federal regulations. This pre -submittal meeting will also allow
the applicant and staff to:
• explore site -specific concerns
• discuss project impacts and potential mitigation methods including field design and
infrastructure construction to minimize impacts
• discuss coordination of field design with other existing or potential development and
operators
• identify sampling and monitoring plans for air and water quality, and other elements of the
operator agreement as contained in Exhibit A (Best Management Practices).
Option #3 Amendment Conditions
Staff was asked to further negotiate with Prospect Energy on the following conditions:
Would Prospect Energy agree to adhere to the Best Management Practices (BMP) contained
in the Operator Agreement for existing wells in the Fort Collins Field?
Prospect Energy is willing to apply certain BMP's to the Fort Collins Field for wells contained
in the City Limits provided that any existing wells in the. Growth Management Area (GMA) are
exempt Prospect Energy has agreed in whole or in part to 22 of'48 sections of the BMPs; see
Attachment 8 for details. 18 of the 48 sections of the BMPs do not apply so Prospect Energy has
agreed to 22 of the 30 sections that apply to the existing field.
2. Would Prospect Energy increase insurance provisions?
Prospect Energy agrees to provide liability insurance that covers pollution, cleanup and general
liability in the amount of $10,000,000 per occurrence during the initial drilling of a New Well
through completion. Following completion, Prospect Energy will provide ongoing pollution,
cleanup and general liability coverage in the amount of $1,000,000 per occurrence and
$2,000,000 aggregate, and general liability umbrella coverage in the amount of $5,000,000.
3. , Would Prospect Energy agree to increase the set -backs to 2000 feet rather than 1000 feet
along the southern and western boundaries of the UDA?
Prospect Energy agrees to increase set -backs far certain portions of the UDA as described in
Exhibit C; 1500 feet from the proposed school lease line and 1000 feet from the lease lines where
residential or building units exist (see Attachment 6).
4. Would Prospect Energy agree to increased inspections by the City?
The Agreement, Appendix A, Number 8 already provides the City with the right to inspect the
Company's operations and sites during business hours, upon the giving of 24 hours advance
written notice to the Company. Staff believes this is sufficient to allow for any inspection in
addition to what COGCC may provide.
5. Would Prospect Energy allow additional monitoring or alert systems to be placed within the
Fort Collins Field or in the UDA?
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Prospect Energy is unable to commit to any property uses within the Fort Collins Field or the
UDA as they are not the property owners. Staff believes that there would be other public or
private property options available if Council wishes to consider this monitoring at a future date.
Prospect Energy has indicated thatifOption #3 is not approved on May 21, 2013 they will withdraw
the option.
Staff was also asked to respond to citizen questions by preparing a list of questions and answers,
and then past them on the Oil and Gas Web -site (http://www.fcgov.com/oilai7dgas/)for easy access
by the public. This was completed on May 7, 2013 and subsequently updated to include questions
answered during the Oil and Gas Presentation held May 8, 2013.
Council asked staff to hold a community meeting specifically providing an opportunityfor those
residents who may be most affected by an Operator Agreement with Prospect Energy to an
informational meeting. An invitation was extended to approximately 3, 000 residents to attend such
a meeting on May 8, 2013 at the Lincoln Center. At least 120 persons attended the event which
included informational table displays with opportunities to ask questions ofproject team members,
a presentation outlining the proposed agreement and possibility to exempt Prospect Energy from
a City Moratorium prohibiting any new oil and gas development and ban from new drilling and
operations conducted by Prospect Energy in the Fort Collins Field (city limits) and the UDA. "
Mayor Weitkunat noted Resolution 2013-036 will be considered first.
Laurie Kadrich, Community Development and Neighborhood Services Director, stated adoption of
Ordinance No. 057, 2013 on Second Reading would remove Prospect Energy from a moratorium
on new drilling and allow the company to use hydraulic fracturing in their operations. Given
adoption of this Ordinance, Council will have the option to leave the current operator agreement in
place or amend that agreement in one of three ways as presented by staff. Kadrich showed a map
of the Fort Collins Field and the undeveloped area (UDA), for which Prospect Energy owns the
drilling rights. The current agreement applies to any new well in the city limits of the Fort Collins
Field or the UDA, and may apply in the Growth Management Area if the City and County reach
agreement about that issue. Kadrich detailed the community outreach which has occurred prior to
tonight's meeting and outlined the choices for Council consideration. Option #1would amend the
agreement to include greater setback requirements on the southern and western boundaries of the
UDA to 1,000 feet and would prohibit any reentry into the plugged and abandoned wells in the Fort
Collins Field. Prospect Energy agrees to this option and the timeframe to act would be June 1, 2013.
Option #2 would amend the agreement to remove the UDA from the agreement and disallow any
reentry into plugged and abandoned wells in the Fort Collins -Field. Prospect Energy will not enter
into an amended agreement including only the Fort Collins Field. Option #3 would amend the
agreement to include greater setback requirements in the UDA along the area that there may be a
future school, would prohibit reentry into the plugged and abandoned wells in the Fort Collins Field,
would add certain best management practices to the existing wells in the Fort Collins Field in the
city limits, and would increase insurance provisions during the time of drilling for the UDA.
Prospect Energy is willing to agree to this option if it is adopted this evening; however, they have
indicated they will withdraw the option from future consideration.
Danny Hesser, 2133 Ford Lane, expressed concern regarding potential health risks of drilling and
supported a ban on operations.
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May 21, 2013
Maya Hesser, 2133 Ford Lane, stated mineral rights should not take precedent over health and safety
of citizens.
Matthew Martinez, Fort Collins resident, expressed concern regarding potential health risks of oil
and gas operations.
Dian Sparling, 324 Jackson, expressed concern regarding endocrine disruptors which result from
spills at oil and gas wells. She requested protection for the health of citizens until studies are
complete regarding the dangers of drilling.
Kelly (no last name provided), stated no health studies will be complete until 2020 and expressed
concern regarding potential health risks of drilling and tracking. She requested Council enforce the
ban on Prospect Energy.
Andrew Stewart, 2503 Maple Hill, stated best management practices need to be adopted and stated
air and water can be treated to be safe.
Brigitte Schmidt, 932Inverness, requested Council receive an agreement from the operator that they
will work with the County to complete an operator agreement within the growth management area.
Nick Armstrong, 2238 Ballard Lane, stated Prospect Energy will basically be self-regulating.
Kevin Cross, Fort Collins Sustainability Group, supported a continued ban on all £racking, and
supported Option #2.
John Gascoyne, 718 West Mountain, stated citizens should be protected and should not fear
litigation.
Cheryl Distaso, Fort Collins Community Action Network, supported Option #2 and questioned the
process regarding the late revised agenda.
Kamana Hesser, 2133 Ford Lane, expressed concern regarding the health risks of drilling.
Dolores Williams, 415 Mason Court, expressed concern about Prospect Energy making litigation
threats and opposed the use of tracking until it is proven safe.
Chris Gabar, Fort Collins resident, stated France has banned tracking and requested protection from
fracking for Fort Collins:
James Sack, Fort Collins resident, expressed concern about Prospect Energy making litigation
threats.
Karen Snyder, Fort Collins resident, supported the most strict, protective option and the continuance
of the ban on tracking.
Shawntae Cerda, Food and Water Watch, opposed the use of tracking in Fort Collins.
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Greg Hirschi, 2626 Thoreau Drive, asked that Council carefully consider its options and noted his
property is on the border of the 1000 foot setback for the UDA.
Michael O'Keefe, Loveland resident, supported continuing the moratorium on fracking.
Lia Pace, Fort Collins resident, supported continuing the ban on fracking.
Lauren Swain, Sierra Club, supported continuing the ban on fracking.
Sweede Anderson, Fort Collins resident, urged Council to pause and ensure enough insurance is
available before moving ahead with fracking.
Linda Vrooman, Fort Collins resident, opposed fracking based on its use of water.
Will Walters, 1701 Tanglewood, opposed fracking based on health risks until it is proven safe.
Ron Harper, 3532 Hearthfire, supported Prospect Energy and its efforts to operate safely.
Jerry Dauth, 1925 Serramonte, supported increased setback requirements.
Gary Wockner, Clean Water Action, supported continuing the full ban on fracking and questioned
the City's dealings with Prospect Energy.
Josh Joswick, Bayfield resident, supported the power of local government to ensure the safety of
citizens.
Rico Moore, 721 West Myrtle, supported maintaining the ban on fracking.
Rob Willis, counsel representing Prospect Energy, supported adoption of the operator agreement.
Rudy Zitti, Fort Collins resident, supported adoption of the operator agreement.
Shane Davis, Fort Collins resident, supported a drilling ban citing failure rates of wells.
(Secretary's note: The Council took a brief recess at this point in the meeting.)
Councilmember Conniff asked if the existing agreement with the operator would take effect on
August 1, 2013, should Council lift the moratorium. Kadrich replied Council would need to act on
Second Reading. City Attorney Roy replied the effective date of the Ordinance, which has been
passed on First Reading, is to occur no later than August I st, or the agreement is off. Adoption on
Second Reading could occur at any time prior to ten days before August I st.
Councilmember Conniff commended staff and Prospect Energy for their work on the agreement.
Councilmember Troxell made a motion, seconded by Councilmember Campana, to adopt Resolution
2013-036, Option #3.
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Mayor Weitkunat requested additional explanation of this Option. Kadrich replied this Option
includes enacting early any Colorado Oil and Gas Conservation rules that would take effect on
August 1 st, not allowing any reentry to the plugged and abandoned wells in the Fort Collins Field,
the extension of new setbacks in the UDA for its northwestern and southeastern boundaries,
application of best management practices to the existing wells in the Fort Collins Field, and
increases the insurance during the drilling activity in the UDA to $10 million.
City. Attorney Roy noted the Ordinance for Option #3 is the same as that for Option 41 and he noted
changes to that Ordinance since First Reading are shown with redline and strike -outs.
Councilmember Troxell stated this Option addresses input from Council and guarantees protections
above and beyond by the operator.
Councilmember Overbeck argued citizens want sound science over an agreement and want to be
protected.
Councilmember Cunniff stated the late presentation of this option is poor process and stated he
could not support the motion, as the option misses some of the best management practices. He
added he would support a five -to -seven year moratorium to allow consideration of the results of a
state health study.
Mayor Pro Tern Horak asked Councilmember Overbeck to elaborate on his opposition.
Councilmember Overbeck replied this agreement does not provide protection for citizens and the
vast majority of citizens support a ban on tracking. He stated he would also support a continued
moratorium to allow time for a health study.
Mayor Pro Tern Horak expressed concern about losing a potential lawsuit. Councilmember
Overbeck replied citizens want to take a stand.
Councilmember Poppaw asked Mayor Pro Tern Horak for his opinion on a timeline. Mayor Pro
Tern Horak replied litigation could ultimately lead to the City losing a great deal of money and
would result in Prospect Energy operating under state regulations rather than the more stringent
regulations in the operator agreement.
Mayor Weitkunat noted the moratorium passed in June exempted Prospect Energy. She stated the
agreement addresses the concerns of citizens while also protecting the City from costly litigation.
Councilmember Overbeck stated this agreement does not protect property values in terms of
Prospect Energy's liability insurance and reiterated his concerns regarding health and safety
concerns.
Councilmember Troxell stated this agreement allows the City to be proactive.
Councilmember Campana stated he would prefer to be on the offensive in terms of Colorado oil and
gas regulation.
Councilmember Overbeck supported proceeding cautiously and placing the importance of health
and safety above that of a lawsuit.
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City Attorney Roy read into the record the changes to the Resolution.
Mayor, Pro Tem Horak asked about Councilmember Cunniffs suggested moratorium and its
applicability to Prospect Energy. Councilmember Cunniff replied he would propose no exemptions
for the moratorium, and believes that would be defensible in court.
The vote on the motion was as follows: Yeas: Campana, Horak, Weitkunat and Troxell. Nays:
Poppaw, Cunniff and Overbeck.
THE MOTION CARRIED.
Councilmember Troxell made a motion, seconded by Mayor Pro Tern Horak, to adopt Ordinance
No. 057, 2013, Option #3, on Second Reading.
Mayor Pro Tern Horak opposed the accusation that he colluded with Prospect Energy regarding the
agreement. He argued Council has a fiduciary responsibility to the citizens and stated opposing this
agreement would not be good for Fort Collins.
Councilmember Conniff agreed there would likely be litigation should the moratorium not be lifted
and the agreement not be adopted; however, he disagreed that the City does not have a defensible
position.
Councilmember Campana agreed with Councilmember Conniff but stated the resources and time
could be spent on protecting citizens using real-time monitoring rather than in court.
Councilmember Conniff noted he is of the opinion there was no collusion on the part of any
Councilmembers.
Councilmember Overbeck argued a health study should be completed first in order to protect the
safety and health of citizens.
Mayor Weitkunat argued Prospect Energy has shown concern for the health and safety of citizens.
The vote on the motion was as follows: Yeas: Campana, Horak, Weitkunat and Troxell. Nays:
Poppaw, Cunniff and Overbeck.
THE MOTION CARRIED.
Other Business
Councilmember Troxell asked about the possibility of moving forward with Land Use Code
amendments addressing reciprocal setbacks and requirements to identify plugged and abandoned
wells prior to development, and the continuance of land use development regulations now that the
ban is in place.
Councilmember Conniff and other Councilmembers agreed those items should be investigated. He
requested the consideration of an extended five to seven year moratorium on all oil and gas
extraction within the City limits with the purpose of determining the outcome of the State's long-
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term health study. He stated he would like Council to be able to consider the item before the
existing moratorium terminates.
Councilmembers Poppaw and Overbeck agreed with Councilmember Cunniff to provide that
direction to staff.
The meeting adjr ourned at 11:32 p.m.
ATTEST:
City Clerk
Adjournment
FORrc.
v.
SEAL
i
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