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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/17/2004 - CONSIDERATION AND APPROVAL OF THE COUNCIL MEETING ITEM NUMBER: 7 AGENDA ITEM SUMMARY DATE: February 17, 2004 FORT COLLINS CITY COUNCIL STAFF: Wanda Krajicek SUBJECT Consideration and approval of the Council Meeting minutes of an adjourned meeting of November 25, 2003, and regular meeting minutes of December 2 and December 16, 2003. November 25, 2003 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council-Manager Form of Government Adjourned Meeting - 6:00 p.m. An adjourned meeting of the Council of the City of Fort Collins was held on Tuesday, November 25, 2003, at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered by the following Councilmembers:Bertschy,Hamrick,Kastein,Martinez,Roy,Tharp and Weitkunat. Staff Members Present: Fischbach, Jensen, Roy. Executive Session Authorized Councilmember Bertschy made a motion, seconded by Councilmember Tharp, to adjourn into Executive Session for the purpose of discussing personnel matters under Subsection2-3l(1)(a)of the City Code. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. THE MOTION CARRIED. Adiournment The meeting adjourned at 9:30 p.m. Mayor ATTEST: City Clerk 328 December 2, 2003 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, December 2, 2003, at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered by the following Councilmembers:Bertschy,Hamrick,Kastein,Martinez,Roy,Tharp and W eitkunat. Staff Members Present: Fischbach, Harris, Roy. Citizen Participation A certified court interpreter stated he was available to assist Spanish speaking members of the audience. David May, Fort Collins Area Chamber of Commerce, spoke regarding the City's six-point plan regarding the local economy and thanked the Council for addressing economic issues. He stated several"anti-business"individuals spoke at the last meeting and indicated that the economy did not have serious problems. He stated it was important for the economy to receive attention and quoted from a December 2002 City study regarding the economy. He stated those who said"go slow"were really saying "do nothing." He stated the six-point economic plan was a good start and that the Chamber of Commerce was nearing completion of a business climate report. Bobbie Poole, 2316 Manchester Court, spoke regarding the need for a human rights protection ordinance in response to the Clear Act. She stated adoption of the ordinance would address perceptions and send a positive message. She stated the Clear Act included an immunity clause that provided that law enforcement officers and agencies could not be held accountable for any actions taken under the Clear Act. Isabel Rodriguez-Thacker,4014 South Lemay#9,Poudre School District employee,spoke regarding the Clear Act and her work with Hispanic students, many of whom were afraid to come to this meeting. She stated some of her students were here illegally and that many had been here since grade school. She asked the Council to consider adopting a human rights protection ordinance. Cheryl Gustasson spoke regarding the Clear Act and the need for a human rights protection ordinance. She stated many feared law enforcement and that an ordinance would help with perceptions. She stated the Mayor had asked the City Attorney for an opinion regarding whether illegal immigrants were protected from harassment by the police and that the City Attorney's office 329 December 2, 2003 issued a memo on November 18 stating that there were existing State laws that protect the civil rights of illegal immigrants and prohibit racial profiling and harassment. She spoke regarding the Garcia brothers who were stopped by police in another area of Colorado and deported within the "boundaries of these laws." She stated a new law was needed. Kelly Ohlson, 2040 Bennington Circle, defended himself against statements that had been made by Mr. May that he was"anti-business." He commended the discussions regarding the economy and stated nothing should be done to artificially stimulate population growth. He encouraged the Council to set tactical and strategic goals relating to the economy before adopting policies and programs. Flora Seines, 1713 Concord Drive, (assisted by the interpreter) spoke regarding the Clear Act and human rights. Ken Gordon, Human Relations Commission chair, spoke regarding his experiences as an African- American and the experiences of his children and stated there were instances of discrimination and racial profiling in Fort Collins. Theresa Ramos-Garcia, Fort Collins Board of Realtors, stated the Board did not support a moratorium on alley houses and did support standards and guidelines that were under discussion. Alberto Valdez, 3802 Lynda Lane, spoke regarding the impacts of the Clear Act and global economies on human rights. He stated countries like the U.S. benefit from the wealth and labor of countries such as Mexico and the labor of immigrants. He stated the Clear Act would contribute to more instances of racial profiling and would require the local police department to accept additional duties without adequate training. Victor Seines, 1713 Concord Drive,spoke regarding the need for a human rights ordinance to protect people. Citizen Participation Follow-up Councilmember Tharp stated she was appalled the experiences of the Gordon family in Fort Collins. She noted that the Clear Act had not yet been approved and that the National League of Cities had taken a position against the Clear Act because of the impact on local resources. She stated the City could not tell the federal government what to do. She requested that information be placed on the City's web page advising citizens how to report incidents of alleged racial profiling and that the City Manager clarify what kind of training police officers receive. She questioned passing another law when there were already laws on the books addressing the issue. ("Secretary's Note: The interpreter translated Councilmember Tharp's comments into Spanish.) 330 December 2, 2003 Councilmember Roy thanked all of the speakers and challenged Mr. May's comments regarding "anti-business"individuals. He also spoke regarding the Clear Act and how it created more fear for the entire nation. He stated all people should be able to search out and find freedom and that laws such as the Clear Act worked against human dignity. (**Secretary's Note: The interpreter translated Councilmember Roy's comments into Spanish.) Councilmember Bertschy thanked Mr.Ohlson forhis ideas concerning the economy and Ms.Ramos- Garcia for her comments regarding alley houses. He spoke regarding the rationale for a moratorium on alley houses. He spoke regarding the Clear Act and a response he received from the Police Chief regarding how contacts with Spanish-speaking residents are handled. He stated any individual stopped by the police had the right to ask for an interpreter and that there was always someone who could speak fluent Spanish on duty. He stated it was difficult for the City to react to a law that had not been enacted. (**Secretary's Note: The interpreter translated Councilmember Bertschy's comments into Spanish.) Mayor Martinez thanked the speakers for expressing their concerns and asked people to report any alleged instances of discrimination and racial profiling. He questioned the need for another law and requested that the City Attorney's memo regarding the Clear Act be placed on the City's web page. He supported asking the Human Rights Commission and Multicultural Commission to work on a process to encourage those who feel wronged to make a report. He stated the Clear Act would not mandate enforcement and that enforcement would be voluntary. He stated it was unlikely that the Clear Act would pass and encouraged people to talk to their Congressional delegation about the Act. He stated it would be an unfunded mandate to ask the police to enforce immigration laws. He stated a lack of reporting of crimes was a nation-wide problem. (**Secretary's Note: The interpreter translated Mayor Martinez's comments into Spanish.) Agenda Review City Manager Fischbach stated item #20 Resolution 2003-133 Authorizing the Acceptance of a Donation by Lon J.And Jolene K. Jacobs of a Conservation Easement on Property Located at 4550 Hidden Springs Road would be pulled from the agenda at the request of Mr. and Mrs. Jacobs. CONSENT CALENDAR 7. Postponement of Items Relating to the Peterson Annexation, until February 3, 2004. A. Postponement of Second Reading of Ordinance No. 051, 2003, Annexing Property Known as the Peterson Annexation to the City of Fort Collins,to February 3, 2004. 331 December 2, 2003 B. Postponement of Second Reading of Ordinance No.052,2003,Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Peterson Annexation, to February 3, 2004. On April 1, 2003, Council unanimously adopted Resolution 2003-041, amending the Structure Plan for the property known as the Peterson Annexation, and Council also unanimously adopted Resolution 2003-042,setting forth findings of fact and determinations regarding the Peterson Annexation. This is a request for a 100% voluntary annexation of approximately 27.89 acres, located a half mile east of I-25 and south of Vine Drive. This requested zone district is Urban Estate. On April 1, 2003, Council unanimously adopted Ordinance No. 051, 2003 and Ordinance No. 052, 2003, annexing and zoning the property included in the Peterson Annexation. Because there have been further delays in the final approval of this project,staff recommends postponing Second Reading of these Ordinances to February 3, 2004. 8. Postponement of Items Relating to the Streamside Annexation, until February 3, 2004. A. Postponement of Second Reading of Ordinance No. 053, 2003, Annexing Property Known as the Streamside Annexation to the City ofFort Collins,to February 3,2004. B. Postponement of Second Readingof OrdinanceNo.054,2003,Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Streamside Annexation, to February 3, 2004. On April 1, 2003, Council unanimously adopted Resolution 2003-043, amending the Structure Plan for the property known as the Streamside Annexation, and Council also unanimously adopted Resolution 2003-044,setting forth findings of fact and determinations regarding the Streamside Annexation. This is a request for a 100%voluntary annexation of approximately 73.67 acres,located just over half a mile east of I-25 and south of Vine Drive. This requested zone district is Urban Estate. On April 1, 2003, Council unanimously adopted Ordinance No. 053, 2003 and Ordinance No. 054, 2003, annexing and zoning the property included in the Streamside Annexation. Because there have been further delays in the final approval of this project,staff recommends postponing Second Reading of these Ordinances to February 3, 2004. 9. Items Relating to the Appropriation of Miscellaneous Revenues for Police Services. A. Second Reading of Ordinance No. 157, 2003, Appropriating Unanticipated Grant Revenue in the General Fund for the Police Services Safety Belt Program. 332 December 2, 2003 B. Second Reading of Ordinance No. 158, 2003, Appropriating Unanticipated Grant Revenue in the General Fund for Police Services and Authorizing the Transfer of Matching Funds Previously Appropriated in the Police Services Operating Budget to the Grant Project. C. Second Reading of Ordinance No. 159, 2003, Appropriating Unanticipated Grant Revenue in the General Fund for the Youth Community/Family Conferencing and Restore Programs and Authorizing the Transfer of Matching Funds Previously Appropriated in the Municipal Court Operating Budget to the Grant Project. Click It or Ticket "November Mobilization"2003 Campaign Fort Collins Police Services has been awarded a grant from the Colorado Department of Transportation in the amount of$3,000. This grant will fund overtime costs associated with the enforcement of Colorado's seat belt laws. Ordinance No. 157, 2003, was unanimously adopted on First Reading on November 18, 2003. Local Law Enforcement Block Grant Fort Collins Police Services has been awarded a grant from the U. S.Department of Justice, Local Law Enforcement Block Grant program (LLEBG) for the procurement of equipment and technology related to basic law enforcement functions. The grant funds will be used to purchase computer equipment that is compatible with the new CAD/RMS system. Ordinance No. 158, 2003, was unanimously adopted on First Reading on November 18, 2003. Office of Juvenile Justice,Division of Criminal Justice (DC D Grant A grant in the amount of$47,195 has been received from the Colorado Division of Criminal Justice (DCJ) for salaries associated with the operation of the Youth Community/Family Conferencing (restorative justice) and Restore Programs. Ordinance No. 159, 2003, was unanimously adopted on First Reading on November 18,2003,appropriating the funds need for this program. 10. Second Reading of Ordinance No. 160, 2003 Appropriating Unanticipated Grant Revenue in the General Fund for the Radon Program and Authorizinp the Transfer of MatchingFunds unds Previously ppropriated in the Natural Resources Operating Budget to the Grant Project This Ordinance,which was unanimously adopted on First Reading on November 18, 2003, appropriates the $15,000 CDPHE grant funds in the General Fund for the Radon Program. It also authorizes the transfer of$15,000 from the Natural Resources operating budget to the Grant Fund. The funds will be used to continue the radon education and testing programs. 333 December 2, 2003 11. Second Readiniz of Ordinance No. 161, 2003, Appropriating Storm Drainage Fund Prior Year Reserves into the Fossil Creek Basin Capital Project for the Construction of Storm Water Improvements Associated with the Timberline Road Waterline Improvement Project. The Fossil Creek Drainage Basin Master Plan identifies the need to improve the storm drainage culverts under Timberline Road at Fossil Creek, between Trilby and Carpenter Roads. The new culverts are a prerequisite for a future project that will remove approximately 105 homes from the Fossil Creek floodplain in the Paragon Point area. These improvements are adjacent to the Fossil Creek Wetlands Natural area on the west and the Fossil Creek Reservoir Natural area on the east. Ordinance No. 161, 2003, which was unanimously adopted on First Reading on November 18, 2003, appropriates prior year reserves for the Timberline Road Waterline Improvement Project. 12. Items Relating to the Competitive Process for Allocating City Financial Resources to Affordable Housing Projects/Programs and Community Development Activities: the Fiscal Year 2003-2004 Home Investment Partnerships (HOME) Program, the Fiscal Year 2003- 2004 Community Development Block Grant (CDBG) Program, and the City's Affordable Housing Fund. A. Second Reading of Ordinance No. 162,2003,Appropriating Unanticipated Revenue in the Home Investment Partnerships Fund. B. Second Reading of Ordinance No. 163,2003,Appropriating Unanticipated Revenue in the Community Development Block Grant Fund. Ordinance No. 162 and 163, 2003, which were unanimously adopted on First Reading on November 18,2003,appropriate unanticipated program income revenue for the HOME and CDBG programs respectively. 13. First Reading of Ordinance No. 164, 2003, Appropriating Unanticipated Revenue in the Capital Projects Fund for Transfer to the Capital Leasing Corporation Fund to be Used for Interest Associated with the Debt Service Payments on the City Office Building at 215 North Mason Avenue and the Civic Center Parking Structure. In 1998, the City completed a Lease Certificates of Participation financing to provide the funding for the Mason Street Office Building and the Parking Structure. The total amount of financing was$17.2 million. During the design and construction phases,the City Finance Department invested the proceeds and earned more money than initially planned. Although the project is substantially complete, money remains in the project's escrow. Appropriate uses for the remaining funds include project improvements and interest payments on the semi-annual lease payments. Although the City normally transfers money from its General 334 December 2, 2003 Fund to the Capital Leasing Corporation Fund to pay the interest on the lease payments,this Ordinance transfers $718,668 from interest earnings in the Capital Projects Fund - Office Building capital project to the Capital Leasing Corporation Fund to make the interest payments. This will allow the City to freeze the appropriation from the General Fund, in effect providing more savings to the City's General Fund at the end of 2003. 14. First Reading of Ordinance No. 165, 2003 Authorizing the Transfer of Appropriations Between Funds to be Used for the Advanced Traffic Management System. This Ordinance transfers money from the General Fund to the Congestion Mitigation and Air Quality(CMAQ) account for the Advanced Traffic Management System (ATMS). Funds will be transferred as outlined below in resolution of a June 2001 CDOT Audit Report that found that a $52,962 grant paid to the City by CDOT was unallowable and recommended that CDOT require the City to repay those funds. Instead of requiring repayment, CDOT has agreed to allow the City to apply those funds to one of the City's top 2004 CMAQ projects. 15. Items Relating to the Pulliam Ranch Leases. A. Resolution 2003-131 Approving the Sublease of City-Leased Property at 8281 West County Road 32 C, Loveland, Colorado. B. Resolution 2003-132 Approving the Lease of City-Owned Property and Sublease of City-leased Property in Sections 15, 16, 17, 18, 20, 21, 22, and 27 of Township 6 North, Range 70 West of the 6th P.M., Larimer County, Colorado. C. First Reading of Ordinance No. 167, 2003, Approving the Terms of the Lease Agreements for the Pulliam Ranch. Adoption of the Resolutions will allow the City to recover a portion of the annual lease amounts due to the Pulliam Trusts by leasing the areas of the Pulliam Ranch which are to be purchased and subleasing those areas and the existing residence which are leased and optioned for purchase. Adoption of the Ordinance will allow the City to submit the lease to the County in order for the leased property to be removed from the property tax rolls during the term of the lease and option contracts to purchase the Pulliam Ranch over a five year period. The City will have exclusive use rights to the leased portions of the Ranch up to the time of purchase and thus has agreed to remove the property tax burden from the Lessors. 335 December 2, 2003 16. First Reading of Ordinance No. 168, 2003, Enacting a New Article VII of Chapter 7.5 of the City Code Establishing a Passenger Facility Charge at the Fort Collins/Loveland Municipal Airport. The Aviation Safety and Capacity Expansion Act of 1990 provided a new source of funding (Passenger Facility Charges-PFC),for authorized airports to fund needed airport expansion projects that might otherwise go unfunded. In 1993 and 1995 the Fort Collins/Loveland Airport received approval from the FAA to collect PFCs since the airport was receiving scheduled passenger airline service. In these prior years the FAA allowed a maximum PFC collection of$3.00 per enplaned passenger, which is the amount the Cities were approved to collect.Once the airport lost scheduled airline passenger service in 1997 the Airport's PFC collections were canceled. Allegiant Air started regular scheduled airline passenger service on July 31, 2003 which qualifies the airport to submit a new Application for the collection of PFCs. Since our last PFC Application,the FAA has increased the maximum amount for PFCs from$3.00 to$4.50 per enplaned passenger. The approval of this Ordinance will enact a new article of the City Code establishing a PFC for $4.50 per enplaned passenger flying from the Fort Collins/Loveland Airport. 17. First Reading of Ordinance No. 170. 2003, Amending Section 2-575 of the City Code Relating to Councilmember Compensation. Article 11, Section 3 of the City Charter provides that the compensation of Councilmembers shall be adjusted annually for inflation in accordance with the Denver/Boulder Consumer Price Index. In 2003, Councilmembers were compensated $585 per month, and the Mayor received $880 per month. This Ordinance amends Section 2-575 of the City Code to set the 2004 compensation of Councilmembers at $595 and the compensation of the Mayor at $895, as required by the City Charter. The 2004 compensation amounts, adjusted for inflation in accordance with the Denver/Boulder Consumer Price Index are $595 per month for Councilmembers and $895 per month for the Mayor. 18. First Reading of Ordinance No. 171, 2003 Designating the E. Kimple House 415 East Elizabeth Street, as a Fort Collins Landmark Pursuant to Chanter 14 of the City Code The owners of the property, Jennifer Anderson and Susan Hogg, are initiating this request for Fort Collins Landmark designation for the E. Kimple House. The Edward and Sylvia Kimple House is significant to Fort Collins under Landmark Preservation Standard 3,for its architectural merits. It is a relatively intact and nicely detailed example of a small Queen 336 December 2, 2003 Anne/ Folk Victorian residential dwelling. The property is listed on the National Register of Historic Places,as a contributing element of the Laurel School National Register District. 19. First Reading of Ordinance No. 172,2003,Desi ig< atine the Historic Seventh Day Adventist Church,400 Whedbee Street,as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code. The owner of the property, The Whole Life Church of Religious Science, is initiating this request for Fort Collins Landmark designation for the Historic Seventh Day Adventist Church. The property is individually eligible for landmark designation under City of Fort Collins Landmark Preservation Standards (1) - Association with events that have made a significant contribution to the broad patterns of history; and (3) - Embodies the distinctive characteristics of a type, period, or method of construction. 20. Resolution 2003-133 Authorizing the Acceptance of a Donation by Lon J. And Jolene K. Jacobs of a Conservation Easement on Property Located at 4550 Hidden Springs Road. Lon J. and Jolene K. Jacobs have proposed to donate to the City Natural Areas program a conservation easement on a property 35 acres in size in the Hidden Springs Subdivision at 4550 Hidden Springs Road in Fort Collins.This conservation easement will allow a five acre or less building envelope for the existing 3,650 square foot residential home and 768 square foot pole barn.The conservation easement will require that the entire property outside of the building envelope remain natural, with no four wheel vehicles or grazing of any animals permitted. The Jacobs Property is adjacent to and situated immediately southwest of the Cathy Fromme Prairie Natural Area. It is adjacent to and immediately north of the Larimer County Landfill. The Conservation easement will afford additional scenic views of the foothills of the Rocky Mountains. Mr.and Mrs.Jacobs will provide to the City a current appraisal,Phase One Site Assessment, Title Commitment and Survey defining the building envelope. The Conservation easement will be donated to the City as a charitable contribution. The acceptance of the donation is contingent upon receipt of an acceptable appraisal and a fully-executed Conservation Easement. 337 December 2, 2003 21. Resolution 2003-134AuthorizingthePurchasingAgenttoEnterintoa Professional Services Agreement with Bondi&Co.,Certified Public Accountants,for Auditing Services for 2003, With Annually Renewable Terms for 2004 Through 2007. The proposed resolution authorizes the Purchasing Agent to enter into an agreement for auditing services with Bondi & Co. for the 2003 audit. The agreement would be renewable on an annual basis through 2007 with the approval of the Leadership Team. The agreement can be terminated if the auditing services are deemed unsatisfactory. 22. Resolution 2003-135 Approving the Purchase of Animal Control Services from the Larimer Humane Society for 2004 as an Exception to the Competitive Purchasing Process. The City of Fort Collins has contracted with the Larimer Humane Society for animal control services for nearly 20 years. The contract requires the Larimer Humane Society to provide a variety of specialized equipment and personnel necessary to provide animal control services to the City of Fort Collins; to operate a shelter facility, to provide emergency veterinary care;to dispose of dead animals;to respond to animal-related calls for service;to enforce City ordinances pertaining to animals;the administration of a pet licensing program and to provide accurate quarterly reports to City staff. There is no other known organization, entity or individual currently capable of performing these services. The City of Fort Collins relies on the Larimer Humane Society to address animal-related issues within the City limits and it remains dedicated to providing professional animal control services to the City. Adoption of this Resolution will allow this contractual relationship to continue. 23. Items Relating to the Employment Contracts of the City Manager, City Attorney and Municipal Judge. A. Resolution 2003-136 Authorizing the Mayor to Execute a Fourth Addendum to the City's Employment Agreement with John F. Fischbach as City Manager of the City of Fort Collins. B. Resolution 2003-137 Authorizing the Mayor to Execute a Fourth Addendum to the City's Employment Agreement with Stephen J. Roy as City Attorney of the City of Fort Collins. C. Resolution 2003-138 Authorizing the Mayor to Execute a Fifth Addendum to the City's Employment Agreement with Kathleen M. Lane as Municipal Judge of the City of Fort Collins. 338 December 2, 2003 The City Manager,City Attorney and Municipal Judge are hired directly by the City Council, and the terms and conditions of their employment are spelled out in employment agreements for each employee. The employment contract of each of these employees presently contains a provision under which the City pays for the cost of an annual physical exam. Questions have arisen regarding the kinds of tests that are within the scope of that provision. The purpose of the new provisions is to standardize the wording related to this benefit for each employee and to impose a maximum dollar amount to be expended by the City for such benefit, irrespective of the kinds of medical tests that may be recommended for each employee. The result will be to provide maximum flexibility with regard to the nature of the exam while still controlling the cost to the City. 24. Items Relating to Participation in Help Preserve Open Space Revenue Sharing with Windsor and Johnstown. A. Resolution 2003-139 Approving and Adopting an Updated Natural Areas Policy as a Policy Element of the City's Comprehensive Plan. B. Resolution 2003-140 Authorizing an Intergovernmental Agreement with Larimer County and Larimer County Municipalities For Sharing County Help Preserve Open Space Tax Revenue with Windsor and Johnstown. This Natural Areas Policy update and Intergovernmental Agreement (IGA) allow the municipalities of Loveland,Fort Collins,Estes Park,Berthoud,Timnath, and Wellington to relinquish to Windsor and Johnstown a portion of the minimum 55% and maximum 65% municipal share of revenue from the County wide sales tax for parks and open space("Help Preserve Open Space"or"HPOS"). By entering into the IGA,Loveland,Fort Collins,Estes Park, Berthoud, Timnath and Wellington each request Larimer County to pay a portion of the HPOS revenues to Windsor and Johnstown in a proportion determined using the formula used to apportion the municipal share of those revenues. 25. Resolution 2003-141 Adopting the City's 2004 Legislative Policy Agenda. Each year the Legislative Review Committee(LRC)develops a legislative agenda to assist in the analysis of pending legislation. The proposed 2004 Legislative Policy Agenda, has been updated from the 2003 document and was reviewed and approved by the LRC on November 13,2003. Changes are highlighted.This document will be used as a guide for the upcoming 2004 General Assembly and the second session of the 108th Congress. The purpose of the Legislative Policy Agenda is to articulate the city's position on common legislative topics. It will be used by Council members and staff to determine positions on pending legislation and as a general reference for state legislators and the Colorado congressional delegation. 339 December 2, 2003 ***END CONSENT*** Ordinances on Second Reading were read by title by Chief Deputy City Clerk Hams. 9. Items Relating to the Appropriation of Miscellaneous Revenues for Police Services. A. Second Reading of Ordinance No. 157, 2003, Appropriating Unanticipated Grant Revenue in the General Fund for the Police Services Safety Belt Program. B. Second Reading of Ordinance No. 158, 2003, Appropriating Unanticipated Grant Revenue in the General Fund for Police Services and Authorizing the Transfer of Matching Funds Previously Appropriated in the Police Services Operating Budget to the Grant Project. C. Second Reading of Ordinance No. 159, 2003, Appropriating Unanticipated Grant Revenue in the General Fund for the Youth Community/Family Conferencing and Restore Programs and Authorizing the Transfer of Matching Funds Previously Appropriated in the Municipal Court Operating Budget to the Grant Project. 10. Second Reading of Ordinance No. 160, 2003,Appropriating Unanticipated Grant Revenue in the General Fund for the Radon Program and Authorizing the Transfer of MatchingF unds Previously pproLLnated in the Natural Resources Operating Budget to the Grant Project. 11. Second Reading of Ordinance No. 161, 2003, Appropriating Storm Drainage Fund Prior Year Reserves into the Fossil Creek Basin Capital Project for the Construction of Storm Water Improvements Associated with the Timberline Road Waterline Improvement Project. 12. Items Relating to the Competitive Process for Allocating City Financial Resources to Affordable Housing Projects/Programs and Community Development Activities: the Fiscal Year 2003-2004 Home Investment Partnerships (HOME) Program, the Fiscal Year 2003- 2004 Community Development Block Grant (CDBG) Program, and the City's Affordable Housing Fund. A. Second Reading of Ordinance No. 162,2003,Appropriating Unanticipated Revenue in the Home Investment Partnerships Fund. B. Second Reading of Ordinance No. 163,2003,Appropriating Unanticipated Revenue in the Community Development Block Grant Fund. 340 December 2, 2003 Ordinances on First Reading were read by title by Chief Deputy City Clerk Harris. 13. First Reading of Ordinance No. 164, 2003, Appropriating Unanticipated Revenue in the Capital Projects Fund for Transfer to the Capital Leasing Corporation Fund to be Used for Interest Associated with the Debt Service Payments on the City Office Building at 215 North Mason Avenue and the Civic Center Parking Structure. 14. First Reading of Ordinance No. 165, 2003, Authorizing the Transfer of Appropriations Between Funds to be Used for the Advanced Traffic Management System. 15. First Reading of Ordinance No. 167, 2003, Approving the Terms of the Lease Agreements for the Pulliam Ranch. 16. First Reading of Ordinance No. 168,2003,Enacting a New Article VII of Chapter 7.5 of the City Code Establishing a Passenger Facility Charge at the Fort Collins/Loveland Municipal Airport. 17. First Reading of Ordinance No. 170, 2003, Amending Section 2-575 of the City Code Relating to Councilmember Compensation. 18. First Reading of Ordinance No. 171, 2003, Designating the E. Kimple House, 415 East Elizabeth Street, as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code. 19. First Reading of Ordinance No. 172,2003,Desi ng ating the Historic Seventh Day Adventist Church,400 Whedbee Street,as a Fort Collins Landmark Pursuant to Chanter 14 of the City Code. 29. First Reading of Ordinance No. 173,2003,Making Various Amendments to the City of Fort Collins Land Use Code. 30. First Reading of Ordinance No. 174, 2003, Continuing a Temporary Manufacturing Equipment Use Tax Rebate Program for Fort Collins Manufacturers. 31. First Reading of Ordinance No 175 2003 Appropriating Unanticipated Revenue and Prior Year Reserves in the Benefits Fund to be Used to Cover Medical Claims and Other Expenses. 32. First Reading of Ordinance No. 176, 2003, Appropriating Prior Year Reserves in the Transportation Services Fund for Transfer to the North Front Range Transportation &Air Quality Planning Council Fund for the Pumose of Providing a Loan to the Metropolitan Planning Organization. 341 December 2, 2003 Councilmember Bertschy made a motion, seconded by Councilmember Kastein, to adopt and approve all items not withdrawn from the Consent Calendar. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED Consent Calendar Follow-up Councilmember Tharp spoke regarding item #13 First Reading of Ordinance No. 164, 2003, Appropriating Unanticipated Revenue in the Capital Projects Fund for Transfer to the Capital Leasing Corporation Fund to be Used for Interest Associated with the Debt Service Payments on the City Ojjice Building at 215 North Mason Avenue and the Civic Center Parking Structure and expressed concern that additional money was available to the General Fund after the discussions about a tight budget. Councilmember Kastein spoke regarding item #13 First Reading of Ordinance No. 164, 2003, Appropriating Unanticipated Revenue in the Capital Projects Fund for Transfer to the Capital Leasing Corporation Fund to be Used for Interest Associated with the Debt Service Payments on the City Office Building at 215 North Mason Avenue and the Civic Center Parking Structure and stated he had similar concerns regarding why that money could be freed up at this point. He asked if the additional money could be used in the 2005 exceptions process or at any time deemed appropriate by the Council. City Manager Fischbach replied in the affirmative. Councilmember Kastein spoke regarding #14 First Reading of Ordinance No. 165, 2003, Authorizing the Transfer of Appropriations Between Funds to be Used for the Advanced Traffic Management System and requested a detailed report regarding traffic improvements since the implementation of the system. He stated he was interested in information from the Transportation Board on evaluation criteria for the system. Councilmember Weitkunat spoke regarding item #14 First Reading of Ordinance No. 165, 2003, Authorizing the Transfer of Appropriations Between Funds to be Used for the Advanced Traffic Management System and asked how often it happened that CDOT asked for repayment of money. City Manager Fischbach stated this was a federal program and that federal auditors determined that the grant should not have been awarded by CDOT. Councilmember Hamrick spoke regarding item #13 First Reading of Ordinance No. 164, 2003, Appropriating Unanticipated Revenue in the Capital Projects Fund for Transfer to the Capital Leasing Corporation Fund to be Used for Interest Associated with the Debt Service Payments on the City Office Building at 215 North Mason Avenue and the Civic Center Parking Structure and expressed concern that the money was sitting in an account without Council's knowledge. 342 December 2, 2003 Staff Reports City Manager Fischbach presented an update regarding staff responses to Council requests for information. ("Secretary's Note: Council discussed some of the items under Councilmember Reports.) He reported on the participation of City employees in the Drive Less Challenge and certification for Roger Daigle, Sports Turf Crew Chief, as one of only five certified sports field managers in Colorado. He spoke regarding the efforts of City employees as community volunteers. Councilmember Reports Councilmember Kastein spoke about the request for information from staff regarding signalization at Laurel and Mason and reminded Council that $.75 million had already been allocated to the number one priority intersection at Harmony and Shields. He stated the $200,000 needed for the Laurel/Mason signal was a lot to spend and that $3.5 million was needed to continue the work on Harmony. Councilmember Tharp spoke about the Laurel/Mason intersection signal and stated the City could be responsive to pedestrian concerns about that intersection by using one-time money for a signal light. She stated there was$6.1 million in undesignated reserves. She stated she would like to know the procedure for moving that project forward. Mayor Martinez asked about the amount available in reserves. City Manager Fischbach stated the approved budget included $2,004,000 in left over reserves. He stated at the end of the year there would be $2,722,000 in reserves that the Council could appropriate by motion. Councilmember Weitkunat stated she wanted to be cautious about "piecemealing" transportation solutions when there were intersections that had been identified as priorities for years. She stated funding for the Laurel/Mason intersection might be inappropriate given the long term needs in other parts of the City. She stated she would not support looking at the Laurel/Mason intersection outside of the big transportation picture. Mayor Martinez asked about the cost to fix Harmony and Seneca. City Manager Fischbach stated the approximate cost was $4.2 million. He stated $750,000 had been set aside for engineering and that roughly$3.5 million would have to be taken from reserves. Mayor Martinez asked if funds could be dedicated to quicken the pace for that project. City Manager Fischbach replied in the affirmative. Councilmember Bertschy stated the Prospect/Timberline intersection also needed work. He asked where the Laurel/Mason intersection would rank with respect to other dangerous intersections. He 343 December 2, 2003 stated would affect his decision on whether to appropriate funds for that intersection. He stated there were pedestrian and traffic safety concerns at the intersection. Councilmember Hamrick followed up on the staff response item relating to creation of a Blue Ribbon Budget Committee. City Manager Fischbach stated would be discussed with the economic development subcommittee. Councilmember Hamrick stated he saw this as purely a budget committee and that he would support Councilmember Tharp's original suggestion for a separate Blue Ribbon Budget Committee. Councilmember Tharp stated her original suggestion was a budget committee that would be separate from an economic development subcommittee. Councilmember Bertschy stated it was his understanding that there would be a budget committee separate from the economic development subcommittee. Councilmember Hamrick stated he would like to see a Resolution prepared for Council consideration to state the intent regarding the budget committee. City Manager Fischbach stated the Resolution would be scheduled on December 16. Councilmember Bertschy reported that the City had received a plaque from the Governor's Office of Innovation and Technology for second place nationally in the 2002 Digital Cities Survey. Ordinance No. 173, 2003 Making Various Amendments to the City of Fort Collins Land Use Code. Adopted on First Reading. The following is staff s memorandum on this item. EXECUTIVE SUMMARY Staff has identified a variety ofproposed changes, additions and clarifications in the Fall biannual update of the Land Use Code. On November 20, 2003, the Planning and Zoning Board considered the proposed changes and took specific action on four individual items. Outside of these four specific items, the Board voted 6-0 to recommend approval of the balance of the proposed changes to City Council. 344 December 2, 2003 BACKGROUND The Land Use Code was first adopted in March of 1997. Subsequent revisions have been recommended on a biannual basis to make changes, additions, deletions and clarifications that have been identified in the preceding six months. The proposed changes are offered in order to resolve implementation issues and to continuously improve both the overall quality and "user-friendliness" of the Code. " City Manager Fischbach introduced the agenda item. Ted Shepard,Chief Planner, stated this was the fall cycle for Land Use Code changes. He stated the Planning and Zoning Board expressed to petitioners that would be heard from at this meeting that they would be welcome to come back during the Spring 2004 cycle to have a separate work session with the Board. He stated one member of the Planning and Zoning Board asked him to clarify that she did not support a Code change relating to modifications to be heard by the Hearing Officer because the Planning and Zoning had a seven-member body that had a history of interpreting standards in a more advantageous way than a single Hearing Officer. He stated staff was recommending that Land Use Code change be approved primarily based on the recommendation from the Paul Zucker report. John Prouty,3944 JFK Parkway, spoke regarding the proposed amendment allowing modifications ancillary to Type 1 reviews to be heard by the Type 1 Hearing Officer. He stated it was important that the City Council and the Planning and Zoning Board not focus on minutiae. He recommended that the City Council approve this Land Use Code change because it would result in the best use of the City staff s time and expertise, it would free the Planning and Zoning Board to focus on macro considerations, and it would result in increased efficiency and a reduction in the uncertainty of the development review process. Linda Ripley,VF Ripley and Associates,representing a client who would like to develop a reception center, spoke regarding adding a new land use definition in the U-E zone. She spoke regarding the purposes of reception center(weddings,retreats,holiday parties,seminars,celebrations,etc.). She stated the site of a reception center would be integral to the land use. She showed slides depicting a reception center and sites in the U-E zone that would be appropriate for a reception center. She stated there was no process to allow her client's project to be brought forth for consideration on its own merits. She stated a determination was made that the solution was to allow reception centers in the U-E zone. Councilmember Tharp made a motion, seconded by Councilmember Weitkunat, to extend the speaker's time by one minute. 345 December 2, 2003 Councilmember Hamrick spoke against making a special allowance for one speaker and not making the same allowance for others. Councilmember Kastein stated it would be appropriate during Council questions to ask a speaker to complete a presentation. Councilmember Bertschy suggested that other speaker's could complete Ms. Ripley's presentation. THE MOTION WAS WITHDRAWN Julie Baker,representing Wendy Meyer, spoke regarding concerns that had been heard at Planning and Zoning Board discussions regarding allowing reception centers in the U-E zone. She stated additional performance standards had been set since the Planning and Zoning Board meeting: that all parking would be accommodated on the site, that the primary building facility would be a minimum of 5,000 square feet, that the primary facility would be located a minimum of 300 feet from the nearest residence, that the minimum lot size would be four acres, that there would be no amplified outdoor music played after 8:00 p.m. Sunday through Thursday or past 9:00 p.m. Friday and Saturday, and that access would be from a collector or arterial street. She stated she and her partner had been searching for four years for a perfect property for a reception center. She stated reception centers were common in other areas and that a reception center would be an asset to the community. She spoke regarding the need for reception centers in the City. Stacy Richter, wedding event planner and publisher of the Perfect Wedding Guide, stated the Planning and Zoning Board recommended that this was a significant use that was needed in Fort Collins. She stated the goal was that reception centers would be integral in the U-E zone. She stated the Planning and Zoning Board had delayed the matter to the Spring. She asked that the Council make its decision based on the information presented rather than solely on the Planning and Zoning Board recommendation. She referenced a map showing the Urban Estates parcels in Fort Collins that were four acres or larger. She stated one of the proposed performance standards was to require four acres or larger for reception centers in the U-E zone. She stated there were 26 parcels met that performance standard. She referenced a second map showing collector and arterial streets in relation to the U-E parcels that were larger than four acres and stated 13 sites met that performance standard. She stated the other performance standards would narrow the number of possible sites to only a few. She stated requiring an entrance from a collector or arterial street would help to address neighborhood concerns about traffic. She stated other performance standards addressed concerns regarding noise and that the reception center operators would obey all laws, including noise ordinances, to avoid risking livelihoods. She stated the landscaping at an outdoor reception area would also buffer any noise. She stated the reception center would not be a"Fiddler's Green." Joe Carter, 5126 Corbett Drive, Cityscape Urban Design, supported giving the Administrative Hearing Officer the authority evaluate modification requests in conjunction with Type I reviews. 346 December 2, 2003 He stated the City has made strides to streamline and improve the development review process since the Zucker report. He stated allowing the Administrative Hearing Officer to make these types of decisions through the Type 1 hearing would make the process better. Councilmember Tharp asked Ms. Ripley to complete her presentation. Ms. Ripley stated her third point was that there would be community benefit, such as preservation of historic buildings, preservation of pockets of open space and natural resources, and economic benefits. Councilmember Weitkunat requested clarification regarding what was being asked of Council. Shepard stated if it was the desire of the Council to allow a modification to be heard by the Hearing Officer that a change would have to be made to the Ordinance on Second Reading. He stated was not included in the Ordinance as drafted. Councilmember Weitkunat stated it made sense to allow the Hearing Officer to make a decision on a modification on Type 1 reviews when the Hearing Officer was allowed to make the initial decision. She stated she would support putting this in the Ordinance. Councilmember Kastein asked if the Council Development Review Committee had looked at the issue. Councilmember Hamrick stated the Development Review Committee had not taken a look at a lot of the changes coming out of the Zucker report. He stated this was a gap in the process. Councilmember Kastein asked if the Development Review Committee was still meeting. Councilmember Tharp stated the Committee had not been convened to deal with these changes. Councilmember Kastein asked if all of the recommendations from the Zucker report had been addressed and if the Committee was interested in looking at those issues. Cameron Gloss,Director of Current Planning,stated this item was included in the discussion at the meeting that was held with the Development Review Committee. He stated he highlighted the change relating to modifications in his presentation to the Committee. He stated the Zucker report ranked this item as the third in his top priorities for changes. He stated his presentation to the Committee talked about this as a key change for the fall Land Use Code change cycle. Councilmember Tharp stated the Committee did agree with the priorities set out in staffs presentation at that time although she did not recall this item. 347 December 2, 2003 Councilmember Hamrick asked when the Planning and Zoning Board addressed these Land Use Code changes. Gloss stated the Board addressed the changes on November 20. Councilmember Hamrick stated it would be helpful to have the Board minutes. Gloss stated the summary minutes had not been completed and that the packet included some abbreviated minutes that addressed the individual items that were of greatest concern. Councilmember Hamrick stated he would prefer to receive the Board minutes rather than a staff summary. City Manager Fischbach stated the Land Use Code changes would not have been heard at this meeting if the minutes were to be included. Councilmember Hamrick asked if there was some urgency in having the Land Use Code changes considered now rather than at another time. Gloss stated there was a set schedule for Code changes and that the intent was to get them done before the first of the year. He noted that there was discussion with Planning and Zoning Board members regarding the summary minutes at the Board's Study Session and that the Board was comfortable with the summary minutes except for the issues identified by Shepard. Councilmember Hamrick noted that the Board had a number of split votes and that was the reason he was interested in the discussion. City Manager Fischbach asked if Councilmember Hamrick wanted issues to be delayed until minutes were available. Councilmember Hamrick stated he would support delaying issues until the minutes were available since the Board's role was to advise the City Council. He stated he was concerned that the Board's discussion was not available to the Council when decisions were being made. He stated the intent of the Board was not clear on issues when there was a split vote. Mayor Martinez asked if there was Council support to delay the process until Board minutes were available. Councilmember Roy stated he would support Councilmember Hamrick's concern. He stated he had questions about the small scale reception centers in the Urban Estates zone. Councilmember Weitkunat stated she would not support this direction. Mayor Martinez stated it appeared that only two Councilmembers supported a delay until the minutes were available and that there was therefore no direction for a delay. Councilmember Bertschy stated he would prefer to have the minutes available. 348 December 2, 2003 Councilmember Kastein asked if this was a Planning and Zoning Board study session or a regular meeting. Gloss stated it was a regular meeting. Councilmember Kastein noted that a videotape would be available since it was a regular meeting. City Manager Fischbach stated the videotape could be made available to the Council. Mayor Martinez asked that the videotape be made available so that the process would not be delayed. Councilmember Bertschy requested that the videotape be made available to the Council prior to Second Reading. City Manager Fischbach indicated that would be done. Councilmember Tharp suggested proceeding with the discussion at this time. She stated she believed that allowing modifications to be heard by the administrative hearing officer was a reasonable way to streamline the process. Councilmember Hamrick asked for an explanation of the difference between Type 1 and Type 2 reviews and requested that examples be given. Gloss presented examples of the two types of reviews. Councilmember Hamrick asked about the appeal process. Gloss stated Type 1 and Type 2 reviews would be appealed to the City Council. City Manager Fischbach stated the appeal on Discount Tire Company was a Type 1 review. (**Secretary's Note: The Council took a brief recess at this point.) Councilmember Weitkunat spoke regarding item 615 relating to the modification procedure. She stated the Land Use Code changes were considered to fix glitches that had been identified. She stated it was inappropriate to have to go through a full blown Planning and Zoning Board hearing for modifications. She stated this change would respond to the Zucker report and would fix a problem in the Land Use Code. She supported adding this change to the ordinance to allow the hearing officer to hear modifications. Councilmember Hamrick asked for further explanation about the change relating to contiguity standards for Overall Development Plans. Gloss stated the Council recently made findings about restricting the Growth Management Area (GMA) boundary and that staff had completed an assessment about the amount of available land for Overall Development Plans (ODPs) within the GMA. He stated staff did not see an advantage to requiring that lands be contiguous for an ODP, which was intended to provide a framework for development, to show where street connections might be made to provide a continuous street network, and to highlight where natural resources needed to be protected. He stated this was pre-planning for future development. He stated staff saw 349 December 2, 2003 no reason for the pre-planning to not occur and that staff saw no good reason to continue the contiguity standards for ODPs. Councilmember Hamrick asked if this was based on the assumption that there was a fixed GMA. Gloss replied in the affirmative and noted that there had been much development at the fringes of the City since the ordinance was written in 1997. Councilmember Hamrick asked how compatibility issues would be addressed. Gloss stated the issue was the purpose of the Overall Development Plan,which was not detailed land planning but was an overall framework. He stated the ODP did not specify densities or design for development and that it did not create any vested property rights. He stated a development was not built based on the ODP, that the development would have to go through project development plan processes and that it would have to meet contiguity requirements for a specific phase.He stated building permits could be years after the ODP. Councilmember Hamrick asked if there would be any problem with infrastructure under this approach. Gloss stated the ODP identified where the overall deficiencies existed. Councilmember Weitkunat stated it was helpful to look at the ODP as the"vision"and the PDP as the "small picture." She stated it made sense that the ODP not require contiguity while the PDP would require contiguity. Councilmember Bertschy stated zoning was "anticipated" if the property had not been annexed. Gloss stated reliance was on the Structure Plan. Councilmember Bertschy asked if the Structure Plan would hold on the ODP pending future contiguity for development. Gloss stated development contiguity and annexation contiguity,based on statutory requirement, were two different things. Councilmember Bertschy asked if it was the City's policy to require annexation at the time of PDP. Gloss stated an ODP must be in the City because the County did not process ODPs and the ground was therefore already annexed. Councilmember Roy stated he would like to hear more from those who spoke about the reception center issue regarding why they did not feel they received a fair hearing from the Planning and Zoning Board. Ms.Ripley stated there were two applicants working on the reception center concept. She stated she and her client did not feel that they were treated unfairly. She expressed a concern about what was said in the staff report with regard to the 7-0 vote of the Board to not add reception centers to the U- E zone. She stated was not the message she got at the Board meeting and that the Board sent a clear 350 December 2, 2003 message that they wanted staff to look at the performance standards,that they thought that it would be possible for this to work, and that they felt that they did not have enough time to understand the performance standards that were presented. She stated the Board was uncomfortable with the issue but did not want to "kill" it. She stated she believed that a review of the video would make all of this clear. Councilmember Tharp stated there was a paragraph in the summary that stated the Board indicated that while the addition of the use into the U-E zone was plausible that the Board would feel more comfortable with more research on the impact and that the Board could benefit from a separate work session on this issue. She stated this statement and the 7-0 vote gave conflicting information. She stated she would support following the Board suggestion regarding more research and a separate work session on this particular topic. She stated it would be necessary to review the tape to determine why there was a 7-0 vote against it if the summary statement was part of the Board's thinking. Councilmember Kastein stated the matter could be remanded to the Planning and Zoning Board for additional information. Councilmember Tharp stated she would support remanding the matter to the Board. Mayor Martinez stated he would also support that. Councilmember Bertschy asked what the options would be, short of changing the Land Use Code, when an applicant was looking at a specific use and it did not match the zoning for a specific site. Shepard stated one option would be under Section 1.3.4,which provided that the Planning Director could add the use for that one particular property if that use was not found anywhere else in the definitions. He stated this would require the staff to come back to the Council to get the land use ratified. He stated the option was attempted in this case and that staff elected not to go that route because the performance standards had not been studied at that time. He stated another process would be to rezone the property and that would be spot zoning. He stated the City's preference was to rezone large parcels rather than small parcels for specific projects. He stated the remaining option was to add the use to the zone district. He stated the Planning and Zoning Board chair had asked if a use variance could be done and that it was determined that would not be allowed because it could be interpreted as spot rezoning. Councilmember Bertschy asked about the rezoning ofthe property where the Lifestyle Center would be located. Shepard stated was an amendment to the Harmony Corridor Plan, which then allowed the land use to be included in the Harmony Corridor zone district. He stated the Resolution amending the plan was followed by an Ordinance that allowed the land use in the zone. He stated a PDP then came forward to the Planning and Zoning Board for the specific project. 351 December 2, 2003 Councilmember Bertschy stated it appeared that the reception center issue should go back to the Planning and Zoning Board to be reconsidered for consideration of emerging information. Councilmember Kastein asked if the requested use would work in some of the U-E parcels and not in others. Shepard replied if the affirmative and stated the U-E zone was a diverse zone and had a variety of vacant, unplatted and old County subdivision parcels. Councilmember Kastein asked why reception centers would be acceptable in one U-E property and not in another. He asked why the Code could not address a standard for placement of a reception center in the U-E zone. Shepard stated this would go back to the performance standards and that this use would require acreage, an indoor facility for catering, on-site parking, minimum lot size, and buffering. He stated there were some suitable properties in the U-E zone and that some U-E properties would not be suitable. Councilmember Kastein asked if the performance criteria could be applied as a requirement. Shepard stated the performance standards had improved and that staff's initial reluctance was "waning." Councilmember Kastein asked if this issue was worth another look by the Planning and Zoning Board. Shepard replied in the affirmative and stated the performance standards had been enhanced and that there was still a residual issue surrounding the Planning and Zoning Board process. Councilmember Weitkunat asked if the issue was as follows: that there was a definition in the Code relating to small reception centers and allowance in the Commercial zone, and an issue of allowing reception centers in the U-E zone which could be remanded to the Planning and Zoning Board. Gloss replied in the affirmative. Councilmember Hamrick asked if any public outreach would be done with the residents in the U-E zone to notify them that there could be an impact to their areas. Shepard stated notification would take place at the time of application for a PDP. He stated because this was district and City-wide and legislative in nature that staff had been reluctant to do a broadcast notification. He stated notification was PDP specific. He stated the neighborhood had been informed regarding the possibility of a reception center on one of the sites and that there had been informal meetings between the potential applicant and the neighbors. Councilmember Tharp asked if this issue would have to wait until the next round of Land Use Code changes. Shepard replied in the negative and stated Land Use Code changes had been made in the past outside of the customary biannual process. Councilmember Tharp supported doing that in this case. 352 December 2, 2003 Mayor Martinez agreed with Councilmember Tharp. Greg Byrne,CPES Director,stated one of the performance standards would be limitation on lot size and access and that would significantly limit the number of suitable lots. He stated a mailing to affected areas would therefore be much more feasible. Councilmember Weitkunat made a motion,seconded by Councilmember Tharp,to adopt Ordinance No. 173, 2003 on First Reading, including item 615 allowing the Hearing Officer to hear modifications and including item 625 relating to the contiguity requirement for ODPs,and to remand the issue of small scale reception event centers in the U-E zone(item#596)back to the Planning and Zoning Board for an expeditious review. Councilmember Kastein asked for clarification regarding which of the five items were included in the Ordinance. Shepard summarized his understanding of the motion as follows: that item #596 (small reception events centers in the U-E zone) would be remanded to the Planning and Zoning Board,that item#613 (definition of adjacent)would be continued until the Spring round of changes, that item #615 (modification of standards for Type 1 reviews being heard by the Hearing Officer) would be included in the Ordinance on Second Reading,and that item#625 (contiguity requirement for ODPs) would be included in the Ordinance on Second Reading. Councilmember Hamrick expressed a concern that there be language relating to item 615 that would direct the Planning and Zoning Board to monitor reports from the Hearing Officer on a quarterly basis and express any concerns they might have. Gloss stated this could be done. Mayor Martinez asked if the intent was for the Board to monitor the Hearing Officer. Councilmember Hamrick stated he would like to see a quarterly report to the Board on the types of modifications granted so that the Board could have some kind of"oversight." Councilmember Tharp stated this would be a way to see what kinds of modifications were being heard. She stated the issue could be revisited if extensive modifications were being heard by the Hearing Officer. Councilmember Bertschy stated asked if there would be performance standards for small scale reception centers in other zones. Shepard stated performance standards would not be required for the South College Avenue zone and North College Avenue zone because those areas already had nightclubs, restaurants and convention centers. Councilmember Bertschy asked if performance standards would be needed for small scale reception centers that had outdoor concerts. Shepard stated concerts would not be allowed by definition. 353 December 2, 2003 Mayor Martinez stated he wanted to ensure that everyone had a fair chance to be heard at the Planning and Zoning Board hearing. He asked if there were time limits for presentations at Board hearings. Gloss stated the Board chair had the opportunity to place a restriction on the amount of time for individual speakers. He stated time limits were generally imposed when there were many speakers on an individual item. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED Councilmember Kastein requested that Council receive minutes and agendas from the Development Review Committee meetings. Ordinance No. 174,2003 Continuing a Temporary Manufacturing Equipment Use Tax Rebate Proeram for Fort Collins Manufacturers Adopted on First Reading_ The following is staff s memorandum on this item. FINANCIAL IMPACT Based on prioryear's actual rebates,staffanticipates that the Manufacturers Rebateprogram could cost the City approximately $500,000 in 2003 and $500,000 in 2004. Costs can vary greatly depending on the purchasing activity of local manufacturers. Payment will be made from the Use Tax Carryover Reserve. The reserve currently has a balance of$2.4 million. EXECUTIVE SUMMARY In March 1996, City Council approved a temporary rebate program for use tax paid on manufacturing equipment. The goal of the program was to maintain the local economic base by providing modest tax relief to manufacturing concerns located in Fort Collins. The program has provided rebates to manufacturersfor taxespaid during the calendaryears 1996 through 2001. The rebate program was discontinued for calendar year 2002 due to economic conditions. Staff is proposing that the program be reinstated for 2003 and 2004, so that rebates may be made of taxes received by the City during those two years. Payments are made in arrears. This is a "rebate"of tax paid in the previous year. It is not a tax exemption. If approved for calendar years 2003 and 2004, staffwill ask manufacturing companies 354 December 2, 2003 to submit applications by late March of each year—as prescribed in the program. Rebates will be paid upon review ofthe applications. Historically,many ofthe companies have requested extensions to file at an even later date. Modifications were last made to the program in 1999 to reflect several requests made by the manufacturing community. Staff is now requesting that Council approve the program without any changes or modifications for 2003 and 2004. BACKGROUND The Manufacturers Use Tax Rebate Program was initiated in 1996, and was intended to focus on encouraging the reinvestment made by local manufacturingfirms in new manufacturing equipment. This type of investment used to be made every three or four years. The standard today is that the reinvestment in equipment occurs every fifteen to eighteen months. This type of continual reinvestment could result in a relative windfall for the community since there is little added cost or impact associated with existingfrms. The program has provided the following results: #of Companies Applied Amount Rebated 1996 10 $ 373,600 1997 17 $ 439,917 1998 10 $ 385,845 1999 13 $ 329,135 2000 14 $ 332,780 2001 11 $ 440,905 Total 75 $2,302,182 SUMMARY.• With the suspension of the Street Oversizing Fee Exemption Program and the Development Impact Fee Rebate Program in the late 1990s, the Manufacturers Use Tax Rebate Program remains as an economic incentive for retaining local manufacturers. The City of Fort Collins has experienced strong growth in sales tax revenues over the past several years with the past two being an exception. Our manufacturing concerns have remained a very important element of our tax base. Staff recommends that the City continue the program for taxes received by the City in 2003 and 2004 as approved by Council while carefully monitoring return tax collections. The City Manager can recommend, at anytime, that the program be suspended should the City encounter economic conditions that would make the program cost prohibitive. In the event that a revenue shortfall should occur, the program will be reevaluated for continuance. " 355 December 2, 2003 City Manager Fischbach introduced the agenda item. Alan Krcmarik,Finance Director,presented background information regarding the agenda item and the history and purpose of the Manufacturers Use Tax Rebate program. He stated the program was designed to encourage local firms to continue to invest in the community. He spoke regarding the tiered nature of the program and stated under the original program the maximum rebate was $2.4 million.He presented information regarding the program participation and amounts rebated over the last six years. He stated the amount rebated was a fairly modest part of the total use tax and manufacturing tax paid. He spoke regarding the companies that had participated in the program. He stated staff was proposing that the Council renew the program for another two years. He stated in was expected that about $500,000 would be the range of rebates in 2004. David May, Fort Collins Chamber of Commerce, spoke in support of the proposed Ordinance. He stated this proposal made a difference for companies in a competitive environment. He stated this was also important because it was symbolic of support for the business community. He urged adoption of the Ordinance. Councilmember Weitkunat asked about the percentage of use tax paid. Krcmarik stated the program was originally 3% and that after two years it was changed to 2.25%. Councilmember Weitkunat asked if this meant that for every million dollars spent on equipment $2,225 would be paid as tax. Krcmarik replied in the affirmative. Councilmember Weitkunat asked if the company could receive two-thirds of it back. Krcmarik stated on the first $5 million in equipment the company could receive two-thirds of the tax back. Councilmember Weitkunat stated it would be helpful to understand the percentage of the rebate in real dollars. Krcmarik stated the rebate amount over six years was about 8.9% of the taxes paid in by the manufacturers. Councilmember Hamrick asked how economic conditions had changed since 2002 to convince the City Manager that the program should be continued. City Manager Fischbach stated the decision to discontinue the program was made while he was on medical leave and that the staff now believed that the economy was turning around. He noted that sales tax revenue was up. Krcmarik stated there had been three consecutive months of sales tax growth and that the signs at the national level showed the economy turning around. He stated there had been some stabilization in the Colorado economy. Councilmember Hamrick asked about the purpose of the use tax carryover reserve. Krcmarik stated the reserve was kept for added protection for the City's governmental activities. 356 December 2, 2003 Councilmember Hamrick asked if this was different than the emergency fund. Krcmarik replied in the affirmative and stated the use tax was volatile and sensitive to economic conditions. Councilmember Hamrick stated he supported the concept of the temporary program and that it was necessary to spend the money in the best interests of the City. He asked if a distinction was made between "clean"manufacturers and those that might"pollute." City Manager Fischbach stated the only requirement was the time requirement of three years. Councilmember Hamrick asked if there was any requirement targeting large versus small businesses. City Manager Fischbach replied in the negative. Councilmember Hamrick asked if any study had been done to show that this type of incentive actually gets companies to reinvest or stay in a community. Krcmarik stated the City had not conducted such a study. He stated a study could be made of the companies that participated in the program in the early years to determine what kind of impact this program had on its decisions. Councilmember Hamrick stated it would be good to understand how effective the program has been as an economic development tool. He asked about language in Section 5 that read "subject to the appropriation of funds for such purpose" and whether this meant that this would come back to the Council for the appropriation of funds. Krcmarik stated applications would be received early in the year and that an appropriation ordinance would be brought to the Council. Councilmember Roy asked how many businesses would be able to apply for this rebate. Krcmarik stated staff estimated that 25 to 30 companies would be eligible to participate. Councilmember Roy asked if 30 applied that the rebate could be more than $1 million each year. Krcmarik stated the companies that have not participated to date tend to be smaller and that their refunds would tend to be lower than the average had been. He stated 4 to 5 major taxpayers have received most of the rebate. Councilmember Roy asked why the decision to suspend the program for economic reasons was charged to the City Manager rather than the City Council. City Manager Fischbach stated the decision was Council's and that the issue regarding continuation of the program was now before Council. Councilmember Roy stated the agenda material indicated that in the event of a revenue shortfall the City Manager would reevaluate the program for continuation and noted that cutting over$3 million from the budget seemed to be a revenue shortfall. City Manager Fischbach stated thee use tax rebate was a small investment for the City to make in order to retain the manufacturing community. 357 December 2, 2003 Councilmember Tharp stated Section 4 of the Ordinance specified that the program would be discontinued at the discretion of Council. She asked how the program was discontinued in 2002 without Council action when this was a policy decision. Krcmarik stated when the program was established it was renewed each year, and that if it was not renewed the program sunset. He stated this was discussed about a year ago and that the discussion with Council was that the program would not be renewed for one year. Mayor Martinez asked if this issue came to the Council for a decision. Councilmember Tharp asked if the Council decided not to continue the program. Krcmarik stated an appropriation ordinance was brought to the Council last year that appropriated the money for rebate from the prior year. He stated the discussion was that the program was not being renewed. He stated the program would need to be renewed late in the year prior to applications from the companies. Councilmember Tharp expressed a concern that the program was discontinued and noted that she was not fully aware that this had been done. Mayor Martinez stated the Council did not vote to discontinue the program and asked for clarification that the staff chose not to continue the program. Krcmarik stated the program was not presented to the Council for renewal. Councilmember Kastein asked if it was Council's discretion whether to discontinue the program in the past as it was stated in Section 4 of this Ordinance. Krcmarik stated the language was similar. He stated Section 2 provided an effective date for operation of the program. He noted that there was a one-year gap in the program. Councilmember Kastein asked if the program could be discontinued at the discretion of Council at any time if the program was put into place at this time. City Attorney Roy spoke regarding the history of the program and the gap in the program during the time it was discontinued. He stated the language of the ordinances allowed the Council throughout the history of the program to abort the program during any of the two-year terms. Councilmember Kastein asked if the Council would be able to decide not to make an appropriation. City Attorney Roy replied in the affirmative. Mayor Martinez asked for clarification that the Council did not make a decision to discontinue the program. City Attorney Roy stated no ordinance was brought forward for extension of the program. Councilmember Kastein asked if there was a maximum cap on the program except for individual entities. City Manager Fischbach replied in the negative. 358 December 1, 2003 Mayor Martinez asked if an ordinance would be brought forward each time to ensure that the Council was afforded an opportunity to continue the program. City Manager Fischbach stated staff would look at ways to ensure that this would occur. Councilmember Kastein made a motion,seconded by Councilmember Hamrick,to adopt Ordinance No. 174, 2003 on First Reading. Councilmember Kastein stated this was a good program and thanked the staff for bringing this ordinance forward. He stated he had mixed feelings about the economy. He stated this was a way to stimulate businesses that enhanced the local economy and that tough economic times were a good time to help struggling companies. He stated he would like information on ways to incorporate past earnings from use tax revenues and how use tax revenue was spent. He suggested that there might be a way to raise the cap on the amount given back to companies if there was a"windfall." Councilmember Weitkunat stated the rebate program was an important economic tool and that it was good for reinvestment in the community. She stated the use tax was a tax on use of equipment and that the dollars were used to benefit companies. She stated it was important to have rebates to companies that were trying to improve their businesses. She spoke regarding the volatility of the use tax. Councilmember Bertschy stated he would support the program. He stated it was important to invest in the current employee base and to support the expansion of manufacturers that were currently in the City. He stated he would like to see tracking of the influence of the rebate on companies expanding and staying in the community. He stated it was important to track the success of this kind of program. Councilmember Hamrick agreed with the need to track the impact of this kind of program. He stated it was important to know that the program was doing what it was supposed to do. He suggested that the economic health coordinator could be charged with this kind of activity and with locating at what would most benefit the economy. Councilmember Roy expressed a concern about measuring the desired level of economic performance of the organization and going forward with this program when over $3 million in budget cuts had been required. He urged continued caution and stated he would support the ordinance provided the City continued to be cautious about how services would continue to be provided to the citizens. Councilmember Tharp stated tough economic times were a time when the rebate should not have been cut. She stated the money could be taken from the carryover reserve of$2.4 million. She 359 December 2, 2003 supported continuing the program and stated she was glad to see that the Ordinance specifically gave Council the discretion regarding continuing the program. Mayor Martinez stated he supported this and that he believed that it was an intelligent investment. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED Ordinance No. 175, 2003 Appropriating Unanticipated Revenue and Prior Year Reserves in the Benefits Fund to be Used to Cover Medical Claims and Other Expenses, Adopted on First Reading. The following is staff s memorandum on this item. FINANCIAL IMPACT This Ordinance is requested at this time, because the City has now received the most recent claims data available, namely through October31, 2003. This Ordinance increases the 2003 Benefits Fund appropriations by $3.4 million to cover benefit expenses. Funding for these appropriations is comprised of unanticipated revenue in the Benefits Fund and Benefits Fund reserves from prior years. Current budget projections indicate that actual revenues will exceed budgeted revenues by approximately$300,000. The remaining$3.1 million is requestedfromprioryears'plan reserves. No additional finding is requested from outside of the Benefits Fund. EXECUTIVE SUMMARY Benefits Fund Reserves and Expenses for 2003 were projected in early 2001 and were based on enrollment and cost trend information available at that time. Actual revenues exceed budgeted projections due to increased plan enrollment. Expenses exceeded budgeted projections due to higher than expected claims activity and medical inflation trend. During 2003 to date, seventeen claims have incurred charges over$40,000,- three of these claims exceed the stop loss deductible of $120,000. Total chargesfor these seventeen claims alone are$1.45 million. Moreover,staffknows ofone additional claim that will exceed the stop loss deductible of$120,000. Catastrophic claims of this nature are difficult to project, and contribute significantly to unanticipated claims experience. " 360 December 2, 2003 City Manager Fischbach introduced the agenda item and stated this Ordinance was consistent with previous discussions with the Council. Rick De la Castro, Human Resources Director, stated staff would make a brief presentation and answer any questions. Vincent Pascale, Benefits Administrator, stated this was a request to use additional funds in the amount of$3.4 million already on hand in the Benefits Fund. He spoke regarding the progression of medical claims costs since 2001. He stated the requested supplemental appropriation was consistent with the three-prong approach ofincreasing the City contribution;increasing the employee contribution for premiums, co-payments and deductibles; and drawing down plan reserves. He stated reserves were projected to be $1.9 at the end of 2003 after this appropriation. He stated the appropriation would have no impact on the plan or proposal to implement a 15% contribution for 2005. Kelly Ohlson, 2040 Bennington Circle, stated this issue should be given considerable thought and direction. He stated the issue was fairness and justice for the taxpayers and the employees. He stated in the"true market'employees paid 28-60%of costs. He asked the Council to consider the escalation of medical costs. He suggested that a committee be created to look at the issue of reducing medical and dental claims. He stated this would mean taking away some coverage,having rational deductions, increasing co-pays, etc. He stated the real issue was the real dollar figure for medical costs. Mayor Martinez asked if the projected escalation in medical costs will"break"the City as described by Mr. Ohlson. Alan Krcmarik, Finance Director, stated this appropriation would not "break"the City. He stated the trend could"break"the fund balance if it continued at 23%. He stated the trend appeared to be moderating somewhat but that projections heard at a recent seminar forecast increases in the 13-17%range. City Manager Fischbach stated some of the changes referred to by Mr.Ohlson were being implemented. He stated an additional $1 million was being taken from the employees. He stated an actuarial study has indicated that the actions being taken were good for now. He stated staff was working with a consultant to determine the "real market' and what it was paying for benefits. Mayor Martinez asked if the trend was still troublesome even with the extra$1 million being taken from employees. De la Castro stated the trend was troublesome because costs were increasing geometrically every year. He stated this was a national trend and was not unique to Fort Collins. Mayor Martinez asked if the trend would through the benefits package into bankruptcy. De la Castro stated to be able to pay claims with that kind of trend that a system would have to be put into place to increase revenues and stem costs. He stated if the trend is not reversed that a more "radical" approach to stemming costs would have to be adopted. 361 December 2, 2003 Councilmember Hamrick asked if medical claims continued to increase whether the City would have to increase its share and the employee share unless benefits were drastically reduced. He asked where the money would come from if the City's share continued to rise. De la Castro stated the money would come from three sources: employee,employer or reduction in benefits. City Manager Fischbach stated roughly 50% of the City's increase would come from the General Fund and 50% would come from other funds. Councilmember Hamrick asked if drawing from the General Fund would mean possible reductions in other programs. City Manager Fischbach replied in the negative and stated measures had been taken and would continue to be taken to bring this under control. He stated the actuary did not see the City"breaking the bank"with the changes that were being implemented. Councilmember Hamrick stated his concern was the possible need to reduce other programs and services. Mayor Martinez asked which other funds would pay for 50%of the employer's share of costs. City Manager Fischbach stated those funds included utilities, transportation, recreation, etc. Councilmember Roy asked about projections for 2004-2006. De la Castro stated projections were for an increase of 18%based on national data from the actuary,plan design, and claims experience patterns. He stated it was difficult to forecast individual medical experiences for employees. He stated projections had to be based on recent experience and national trends. He stated efforts such as the wellness program and medical plan design were intended to help stem costs. Councilmember Roy asked about the projected costs for 2006 using the 18% figure. De]a Castro stated the projection was $17.6 million for medical and dental. Councilmember Roy asked about the projected costs for this year. De la Castro stated the projection was $10.4 million by the end of December. Councilmember Roy asked how much was anticipated to be in reserves in 2006. De la Castro stated the 2006 projection was $1.7 million, which would be roughly 10% of paid claims. Councilmember Roy asked if employee costs would add $3 million (an extra$1 million each year) toward the approximately $17 million in 2006 claims. City Manager Fischbach stated was in addition to what the employees already paid. Councilmember Roy expressed a concern that employee costs would not go far toward offsetting costs given the trend in escalating costs. De la Castro stated in 2004 the changes in plan design and premiums would generate an additional $1 million beyond what employees were already contributing. Pascale stated in 2004 premiums would go to 15% for employees and that it was 362 December 2, 2003 expected that premium rates would go up for 2005,meaning that a higher percentage would be taken from a higher premium cost for employees for 2005. Mayor Martinez noted that the purpose of this agenda item was to appropriate funds for medical claims for this year. Councilmember Kastein asked for clarification that the projections through 2009 assumed the 15%. Pascale replied in the affirmative. Councilmember Kastein stated it would be helpful to see a breakdown in revenues and costs in the information presented. He asked if both the cost side and revenue side of the equation would be looked at by the consultant. City Manager Fischbach replied in the affirmative. Councilmember Kastein asked if options to stem costs, such as the effectiveness of the wellness program,would be evaluated by the consultant. City Manager Fischbach replied in the affirmative. Councilmember Kastein stated he believed that it was important to look at revenue and costs. He stated he would support adoption of this Ordinance given the fact that the consultant would be studying both sides of the picture in the future. Councilmember Weitkunat stated this action was to appropriate money for medical claims. She stated this had raised a "flag" that the Council needed to be made aware of catastrophic claims as they came in. She stated it was important that the Council be kept informed regarding how the three- pronged approach would be changing the situation. Councilmember Weitkunat made a motion, seconded by Councilmember Kastein, to adopt Ordinance No. 175, 2003 on First Reading. Councilmember Hamrick thanked Mr. Ohlson for his comments and stressed that an overall plan to reduce the dollar amount of claims was needed. He stated it appeared that everyone recognized the need to do something about this and that he would have no problem with adopting this appropriation. He stated he wanted to make sure that the City looked at the dollar amount of claims and the impact on the overall budget and the taxpayers. Councilmember Tharp stated medical costs were a national problem. She expressed a concern that such a large amount was being taken from reserves at this point when the amount of future catastrophic costs was unknown. She stated the Council must go forward with this appropriation "cautiously" and that the plan to work with a consultant would be very helpful to address the problem for the future. She stated there will probably be a need to reexamine the employee contribution in the future because 15%might not be realistic. 363 December 2, 2003 Councilmember Kastein stated he would support the motion and that everyone was aware of the "staggering"problem of escalating claims. Councilmember Bertschy agreed with the comments that had been made and stated he looked forward to hearing the recommendations of the consultant. Mayor Martinez stated he supported the appropriation. The vote on the motion was as follows: Yeas Councilmembers Bertschy, Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED Items Relating to the North Front Range Transportation and Air Quality Planning Council, Adopted. The following is staff s memorandum on this item. FINANCIAL IMPACT The City has been the primary sponsor for the North Front Range Transportation and Air Quality Planning Council(MPO)for several years. The City has been financially responsible for costs of the MPO and these costs have been accounted for in the City's Transportation fund. The external auditors and reviewersfrom the Government Finance Officers Association have commented that the MPO should be accounted for as a more independent organization. To this end, the MPO is now a separate fund, but still within the City of Fort Collins' accounting entity. According to the Charter, expenditures within a fund should not exceed revenue. To ensure that the MPO does not exceed its revenue, the City will be advancing, in the form of a loan, up to $175,000 to the MPO. When the MPO is reimbursed through grant programs and contributions from other member cities, the MPO will repay the City of Fort Collins. Repayment is expected to be completed in January 2004 and, at the latest, by the end of the first quarter of 2004. EXECUTIVE SUMMARY A. Resolution 2003-142 Authorizing the Mayor to Execute an IntergovernmentalAgreementfor the Provision ofa Loan to the North Front Range Transportation and Air Quality Planning Council. 364 December 2, 2003 B. First Reading of Ordinance No. 176, 2003, Appropriating Prior Year Reserves in the Transportation Services Fund for Transfer to the North Front Range Transportation &Air Quality Planning Council Fund for the Purpose of Providing a Loan to the Metropolitan Planning Organization. The North Front Range Transportation and Air Quality Planning Council serves as the Metropolitan Planning Organization (MPO) and lead air quality planning agency for the North Front Range region. It was created in 1988 and includes two counties, eleven cities and towns, the State of Colorado Transportation Commission, and the State of Colorado Air Quality Control Commission. In this capacity, the MPO promotes regional transportation and air quality planning related to transportation for the counties, cities, and towns in northern Colorado. The activities of the MPO are funded through federal grant programs administered by the Colorado Department of Transportation. The City of Fort Collins has been the financial sponsor of the organization and accounted for the financial transactions within the City of Fort Collins Transportation Fund. As a step to provide for the future independence of the MPO, the MPO is now accounted for in its own .fund within the City of Fort Collins accounting system. In the future it will be an independent organization and conduct its own financial management. The MPO operates on grants and contributions on a reimbursable basis. The City of Fort Collins usually advances fundsfor MPO activities and then is reimbursed through CDOT distributions. As the year 2003 comes to a close, staff projects that the MPO may have spent as much as $175,000 that is subject to reimbursement that will not be received until some time in 2004. Due to the indefinite nature of the reimbursements and the requirement that all City funds have balanced revenues and expenditures, the staff recommends that the City's Transportation Fund provide financial support to the MPO by loaning up to $175,000. The City will be repaid from future grant reimbursements and other funds contributed by the other members of the MPO. The Resolution authorizes the Mayor to sign the loan to the MPO. The Ordinance appropriates the prior year reserves to be transferred to the MPO. " City Manager Fischbach introduced the agenda item. Alan Krcmarik,Finance Director,presented background information regarding the agenda item. He stated the MPO was working with the member organizations and the Colorado Department of Transportation to reimburse the City as quickly as possible. He stated the Resolution would approve an intergovernmental agreement and a promissory note and that the Ordinance was proposed for First Reading and might not be needed by the time of Second Reading. Mayor Martinez asked how much money was still owed the City. Krcmarik stated at this point the City was owed $159,000. 365 December 2, 2003 Mayor Martinez stated he did not believe that it was a good idea for the City to advance monies such as this in the future. City Manager Fischbach stated it was his understanding that this was the last time the MPO would need this assistance. Councilmember Kastein made a motion, seconded by Councilmember Tharp, to adopt Resolution 2003-142. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED Councilmember Hamrick made a motion,seconded by Councilmember Kastein,to adopt Ordinance No. 176, 2003 on First Reading. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED Executive Session Authorized Councilmember Bertschy made a motion, seconded by Councilmember Hamrick, to adjourn into Executive Session under Section 2-31(a)(2)of the City Code for the purpose of consulting with the City Attorney regarding legal issues. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED (**Secretary's Note: The Council adjourned into Executive Session at 10:00 p.m. and reconvened following the Executive Session at 10:48 p.m.) Other Business Councilmember Tharp made a motion,seconded by Councilmember Bertschy,to extend the meeting until 11:00 p.m. The vote on the motion was as follows:Yeas: Councilmembers Bertschy,Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED Councilmember Bertschy stated an issue had come up that the definition of private clubs in the smoking ordinance might be inconsistent with other existing private clubs. He stated he would like staff to take a look at the issue and present his report to the Council. City Attorney Roy asked if the intent was to make the definition more in line with the other existing private clubs such as the Elks 366 December 2, 2003 and similar organization. Councilmember Bertschy stated was his intent. He asked if other Councilmembers supported having staff look at this issue. The consensus was in favor. Adjournment The meeting adjourned at 10:55 p.m. Mayor ATTEST: City Clerk 367 December 16, 2003 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, December 16, 2003, at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered by the following Councilmembers:Bertschy,Hamrick,Kastein,Martinez,Roy and Tharp. Councilmembers Absent: Weitkunat. Staff Members Present: Fischbach, Krajicek, Roy. Diversity Update City Manager Fischbach presented a diversity update and stated the presentation was available in writing in Spanish. An interpreter translated his introductory remarks into Spanish. He stated the Clear Act was proposed federal legislation that addressed the authority of state and local governments to enforce federal immigration laws. He stated information was available in both English and Spanish on the City's website. He spoke regarding the existing state laws prohibiting racial profiling. He stated all personnel were trained to prevent bias-based policing. He stated the Human Rights Office assisted with training and that compulsory diversity training was required of all officers. He summarized the procedures and options to file a complaint regarding inappropriate police behavior or behavior perceived to be inappropriate. He spoke regarding the information that was available through the City regarding police complaints and discrimination. He stated the City's Diversity Plan had just been updated and that the diversity team had surveyed City service areas on changes or improvements to diversity strategies, obstacles and needs, new or potential diversity areas,and the role of the diversity team. He summarized the findings of the diversity survey and the goals of the diversity team. Citizen Participation Leroy Gomez, 3213 Sharps, Latino/Hispanic activist, spoke in favor of adoption of a human rights protection ordinance. He stated the Citizen Review Board was not working and that racial profiling did exist. Bob Vinton, 1313 Parkwood Drive, representing the Chamber of Commerce economic vitality committee, spoke regarding the composition of the committee and stated the committee had completed a report entitled "Improving the Economy of Fort Collins, Colorado" which made 12 368 specific recommendations focusing on the concept that communities must take conscious and proactive steps to shape their economic futures. He delivered copies of the report to the Council. Eric Davis, Service Bar owner, 126 West Mountain Avenue, expressed concerns regarding the impact of the smoking ordinance changes on the only private club in Fort Collins that was not owned by a nonprofit organization. He stated he felt that recent changes to the ordinance were directed at his business. He asked members of the Service Bar to raise their hands to show that they cared about this issue. He argued that a nonprofit private club was not more"private"than a for-profit private club. He asked that the Council delay implementation of the ordinance change or change the wording so that it did not affect his business. Paul Smith,new resident,expressed concern about a division between the police and the community. He stated he had worked on"cordial relationships"between the police and the community where he lived previously. He stated if police officers were asked to or permitted to make inquiries regarding immigration status that this would have a negative impact on police/community relations. Olivia Abeyta, Fort Collins resident, thanked the City for its work on diversity. She stated she worked with immigrants and heard about abuses all the time. She stated many lived in fear and needed help in filing complaints. She stated there was racism in Fort Collins and that the Council needed to hear about this. She stated a human rights protection ordinance might speed change. Cheryl Distaso, 135 South Sunset,spoke regarding the need for a human rights protection ordinance. She stated other cities that had passed similar ordinances. She stated there had been discussions about a human rights protection ordinance before the introduction of the Clear Act. She spoke regarding civil rights abuses nationwide in the wake of September 11. Herme Hernandez,assisted by an interpreter,stated there was discrimination in Fort Collins and that children who did not have a Social Security number on their applications to receive toys from the Police Department had their applications rejected. She stated people with a Latino background were subject to discrimination. Tony Gaines, Service Bar member, stated members of the Service Bar had taken off work to come to this meeting. He stated the members had signed up knowing that the private bar was a smoking establishment. He stated those who came to this meeting had never had an opportunity to debate the ordinance changes. He suggested that the matter be placed on the docket at this meeting. Jane Ellen Cumbelek, Fort Collins resident, read the human rights protection ordinance. Lou Wright completed the reading of the human rights protection ordinance. Norma Latisia, assisted by an interpreter, spoke regarding her experience of being pulled over by a police officer. She stated she still did not know why she was stopped. 369 December 16, 2003 Dr. Von Gordon, African-American resident and single mother, expressed concerns regarding the comments of the Mayor reported in the newspaper upon the resignation of members of the Human Relations Commission. She stated"common citizens"experienced different shades of racism every day. She stated many feel that they would not be believed if they reported incidents and feared that making such a report would bring down more "heat' on them. She stated she and her family had experienced racism in Fort Collins and that teenagers of color experienced harassment from the police. Ken Gordon, former chair of the Human Relations Commission, stated he was looking for a community where his family could settle down. He stated he had received many"nasty"phone calls and a-mails at his home since resigning from the Commission and had been called a"quitter." He stated the City Council should not have been surprised at his resignation since there had been no movement on the issue of diversity after he had spoken out on the issues. He stated"racist people" in Fort Collins were able to do things because the majority were silent. He stated he had not seen the Diversity Plan until this meeting. He stated the Fort Collins community was not welcoming to people of color. Citizen Participation Follow-up Mayor Martinez asked staff to look into comments that Hispanic people were "mistreated" at a Citizen Review Board meeting. He asked staff to determine if Social Security numbers were required for children to receive Christmas presents through the Police Department. He stated he had not expected that the new smoking regulations would impact private clubs immediately and that he had thought that existing clubs would be"grandfathered." He suggested that Council address that issue under Other Business. He asked that staff follow-up with the woman who stated she did not know why she was stopped by the police. He stated"quitting"was not the answer and that a human rights protection ordinance would not change some forms of discrimination. He urged people to report instances of discrimination to the proper authorities. He stated he would encourage people to keep working on "revolutionary change"in a positive way. He stated a cartoon in the Bullhorn portrayed him as being the subject of a traffic stop and that he objected to the stereotypical image of the community portrayed in the cartoon. Councilmember Bertschy reported that the National League of Cities had taken a position against the Clear Act. He stated he had voted as a representative of the City in favor of the NLC resolution and noted that the NLC was the only national organization that had taken the lead in opposing the Clear Act. He stated the City Council would not be taking action at this meeting on the smoking ordinance. He stated the feedback that had been received would be taken into consideration. Councilmember Roy thanked those who spoke on the human rights protection ordinance. He thanked Mr. Gordon and Ms. Gomez for their service on the Human Relations Commission and stated he hoped that there was an impetus to create a more positive future for the community. He 370 December 16, 2003 stated the City Manager's update on diversity had indicated that there were a number of state laws dealing with racial profiling and asked if there was any local ordinance that would prohibit City police officers from racial profiling. City Attorney Roy replied in the negative and stated there was a state law that applied to the City. He stated the City did have harassment laws and that the state law and local ordinances were described in the memorandum that the City Attorney's office issued at the Mayor's request. Councilmember Hamrick thanked those who spoke about the human rights protection ordinance and described their experiences with racism in the community. He stated he had been "quiet" on the issue because he had been unclear about the exact purpose of the human rights protection ordinance. He stated the purpose was clearer and that he wanted to acknowledge that it would take three Councilmembers to bring the ordinance forward. He stated if part of the problem was inherent in a system in which "shades of racism" existed that it was not a valid argument to ask people to use that system. He stated the guidelines regarding police stops might not be entirely sufficient. He stated he would like to see some sort of ordinance come forward and that it would need to be clear what issues the ordinance was to address. He stated he saw a need to have a dialogue with the community on this issue. He stated he would like to see a panel of citizens formed to deal with some of these issues and make recommendations to the City Council about what needed to be done to make improvements. He stated he would be supportive of an ordinance to clarify guidelines for stopping people. Councilmember Tharp stated it had become apparent that there was an existing problem and that there were two separate problems. She stated there was a problem with racism and how people were treated in the community and that there was a problem with illegal immigrants. She stated the two issues needed to be separated. She stated the City Council could not be expected to circumvent existing federal laws relating to illegal immigrants. She stated she was not advocating any ordinance that would encourage support for people who were here illegally. She stated she would support looking at the existing laws relating to harassment and racial profiling, the operation of the Citizen Review Board, and the police complaint process. She supported Councilmember Hamrick's proposal to establish a panel to look at the matter and narrow the issues to those that the City Council could deal with relating to the existing local laws, enforcement, treatment of people in the community, and a workable process to deal with complaints. Councilmember Kastein recommended a study session to discuss the information presented and the analysis given by the City Attorney. He stated he was sorry that Mr. Gordon and Ms. Gomez had resigned from the Human Relations Commission and that he had not"seen the signals earlier." He stated he wanted to continue to hear about the kinds of abuses and discrimination that had been reported. He stated where illegal activity existed that the police force was empowered to address that activity. He stated the state law that covered racial profiling and harassment was sufficient and that the City did not need to address those issues further. He stated it would make sense to collect all of the material for another review. He stated there may have been some unintended consequences of 371 December 16, 2003 the change to the smoking ordinance that affected the Service Bar. He stated he would like to hear more from the City Attorney and City Manager on that issue. He stated the Council would not act on the issue at this meeting but that he would like to hear how the ordinance was affecting existing businesses. Councilmember Bertschy asked if the Multicultural Corporation was established as a multi- jurisdictional agency to review issues related to multicultural issues in the community. City Manager Fischbach replied in the affirmative. Councilmember Bertschy stated he would like to see if the Multicultural Corporation could be part of the review process. He stated there was also a Human Relations Commission that had a charter and that he would like a review of how the Council had utilized the advice from the Commission. He stated the HRC was the Commission that should be advising the Council on these kinds of issues. He asked if there was access to complaint forms through the Library, which would be a neutral location. City Manager Fischbach replied in the affirmative. Mayor Martinez stated the Council could take a look at these issues in a study session and discuss how the Council could take action. He suggested that a coalition of the Human Relations Commission, Human Rights Office, Multicultural Corporation and CSU could work on ways to resolve these issues. He stated one of the main problems was getting people to report abuses. Agenda Review City Manager Fischbach stated item#14 Second Reading of Ordinance No. 174, 2003, Continuing a Temporary Manufacturing Equipment Use Tar Rebate Program for Fort Collins Manufacturers would be withdrawn from the Consent Calendar for discussion at the request of Councilmember Roy. CONSENT CALENDAR 7. Second Reading of Ordinance No. 164, 2003, Appropriating Unanticipated Revenue in the Capital Projects Fund For Transfer to the Capital Leasing Corporation Fund to be Used for Interest Associated with the Debt Service Payments on the City Office Building at 215 North Mason Avenue and the Civic Center Parking Structure. In 1998, the City completed a Lease Certificates of Participation financing to provide the funding for the Mason Street Office Building and the Parking Structure. The total amount of financing was S 17.2 million. During the design and construction phases,the City Finance Department invested the proceeds and earned more money than initially planned. Although the project is substantially complete, money remains in the project's escrow. Appropriate uses for the remaining funds include project improvements and interest payments on the semi-annual lease payments. Although the City normally transfers money from its General 372 December 16, 2003 Fund to the Capital Leasing Corporation Fund to pay the interest on the lease payments,this Ordinance,which was unanimously adopted on First Reading on December 2,2003,transfers $718,668 from interest earnings in the Capital Projects Fund-Office Building capital project to the Capital Leasing Corporation Fund to make the interest payments. 8. Second Reading_of Ordinance No. 165, 2003, Authorizing the Transfer of Appropriations Between Funds to be Used for the Advanced Traffic Management System. This Ordinance, which was unanimously adopted on First Reading on December 2, 2003, transfers money from the General Fund to the Congestion Mitigation and Air Quality (CMAQ) account for the Advanced Traffic Management System (ATMS). 9. Second Reading of Ordinance No. 167,2003,Approving the Terms of the Lease Agreements for the Pulliam Ranch. This Ordinance, which was unanimously adopted on First Reading on December 2, 2003, allows the City to submit the lease to the County in order for the leased property to be removed from the property tax rolls during the term of the lease and option contracts to purchase the Pulliam Ranch over a five year period. The City will have exclusive use rights to the leased portions of the Ranch up to the time of purchase and thus has agreed to remove the property tax burden from the Lessors. 10. Second Reading of Ordinance No. 170, 2003, Amending Section 2-575 of the Cites Relating to Councilmember Compensation. Article II, Section 3 of the City Charter provides that the compensation of Councilmembers shall be adjusted annually for inflation in accordance with the Denver/Boulder Consumer Price Index. In 2003, Councilmembers were compensated $585 per month, and the Mayor received $880 per month. This Ordinance, which was unanimously adopted on First Reading on December 2, 2003, amends Section 2-575 of the City Code to set the 2004 compensation of Councilmembers at $595 and the compensation of the Mayor at $895, as required by the City Charter. 11. Second Reading of Ordinance No. 171, 2003, Desi i�i� ating the E. Kimple House, 415 East Elizabeth Street, as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code. The owners ofthe property,Jennifer Anderson and Susan Hogg,initiated this request for Fort Collins Landmark designation for the E. Kimple House. The Edward and Sylvia Kimple House is significant to Fort Collins under Landmark Preservation Standard 3, for its architectural merits. It is a relatively intact and nicely detailed example of a small Queen 373 December 16, 2003 Anne/Folk Victorian residential dwelling. The property is listed on the National Register of Historic Places,as a contributing element of the Laurel School National Register District. Ordinance No. 171, 2003, which was unanimously adopted on First Reading on December 2, 2003, designates the above described property as a Fort Collins Landmark. 12. Second Reading of Ordinance No. 172, 2003, Desi natiniz the Historic Seventh Day Adventist Church,400 Whedbee Street, as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code. The owner of the property, The Whole Life Church of Religious Science, initiated this request for Fort Collins Landmark designation for the Historic Seventh Day Adventist Church. The property is individually eligible for landmark designation under City of Fort Collins Landmark Preservation Standards (1) - Association with events that have made a significant contribution to the broad patterns of history; and (3) - Embodies the distinctive characteristics of a type, period, or method of construction. Ordinance No. 172, 2003, which was unanimously adopted on First Reading on December 2, 2003, designates the above mentioned property as a Fort Collins Landmark. 13. Second Reading of Ordinance No. 173, 2003, Making Various Amendments to the City of Fort Collins Land Use Code. Staff has identified a variety of proposed changes, additions and clarifications in the Fall biannual update of the Land Use Code. On December 2, 2003, Council voted 7-0 to adopt Ordinance No. 173, 2003 on First Reading, subject to three specific actions. First, the placing of the Small Scale Reception Center into the Urban Estate zone district shall be expeditiously remanded back to the Planning and Zoning Board for further review. Second, the Modification of Standard procedure shall be allowed to be considered by Decision Maker (Planning Director or Hearing Officer) for Project Development Plans that are subject to Administrative (Type One) Review. Third, a quarterly report shall be prepared for the Planning and Zoning Board summarizing the Type One Modifications that were considered by the Decision Maker for the purpose of oversight and monitoring. 14. Second Reading of Ordinance No. 174, 2003, Continuing a Temporary Manufacturing Equipment Use Tax Rebate Program for Fort Collins Manufacturers. In March 1996, City Council approved a temporary rebate program for use tax paid on manufacturing equipment. The goal of the program was to maintain the local economic base by providing modest tax relief to manufacturing concerns located in Fort Collins. The program has provided rebates to manufacturers for taxes paid during the calendar years 1996 374 December 16, 2003 through 2001. The rebate program was discontinued for calendar year 2002 due to economic conditions. Staff is proposing that the program be reinstated for 2003 and 2004, so that rebates may be made of taxes received by the City during those two years. Payments are made in arrears. This is a "rebate" of tax paid in the previous year. It is not a tax exemption. If approved for calendar years 2003 and 2004,staff will ask manufacturing companies to submit applications by late March of each year—as prescribed in the program. Rebates will be paid upon review of the applications. Historically,many of the companies have requested extensions to file at an even later date. Modifications were last made to the program in 1999 to reflect several requests made by the manufacturing community. Staff is now requesting that Council approve the program without any changes or modifications for 2003 and 2004. Ordinance No. 174, 2003, was unanimously adopted on First Reading on December 2, 2003. 15. Second Reading of Ordinance No. 175, 2003, Appropriating Unanticipated Revenue and Prior Year Reserves in the Benefits Fund to be Used to Cover Medical Claims and Other Expenses. This Ordinance, which was unanimously adopted on First Reading on December 2, 2003, increases the 2003 Benefits Fund appropriations by$3.4 million to cover benefit expenses. Funding for these appropriations is comprised of unanticipated revenue in the Benefits Fund and Benefits Fund reserves from prior years. Current budget projections indicate that actual revenues will exceed budgeted revenues by approximately $300,000. The remaining $3.1 million is requested from prior years'plan reserves. No additional funding is requested from outside of the Benefits Fund. 16. Second Reading of Ordinance No. 176, 2003, Appropriating Prior Year Reserves in the Transportation Services Fund for Transfer to the North Front Range Transportation & Air Quality Planning Council Fund for the Purpose of Providing a Loan to the Metropolitan Planning Organization. The MPO operates on grants and contributions on a reimbursable basis. The City of Fort Collins usually advances funds for MPO activities and then is reimbursed through CDOT distributions. For First Reading of the Ordinance, staff estimated the amount of the advance from the City to the MPO to be$175,000. Since December 5,the MPO has received monies from the Colorado Department of Transportation and other members of the organization, which lower the unreimbursed advance to $1,200. Due to the indefinite nature of the reimbursements and the requirement that all City funds have balanced revenues and expenditures, the staff recommends that the City's Transportation Fund provide financial support to the MPO by loaning up to $175,000. The City will be repaid from future grant reimbursements and other funds contributed by the other members of the MPO. 375 December 16, 2003 This Ordinance, which was unanimously adopted on First Reading on December 2, 2003, appropriates the prior year reserves to be transferred to the MPO. 17. Items Relating to the Fort Collins-Loveland Municipal Airport. A. Second Reading of Ordinance No. 168,2003,Enacting a New Article VII of Chapter 7.5 of the City Code Establishing a Passenger Facility Charge at the Fort Collins/Loveland Municipal Airport. Allegiant Air started regular scheduled airline passenger service on July 31, 2003 which qualifies the airport to submit a new Application for the collection of PFCs. Since our last PFC Application,the FAA has increased the maximum amount for PFCs from$3.00 to$4.50 per enplaned passenger. This Ordinance,which was adopted on First Reading on December 2, 2003, enacts a new article of the City Code establishing a PFC for $4.50 per enplaned passenger flying from the Fort Collins/Loveland Airport. B. Resolution 2003-143 Identifying Projects to be Funded by Passenger Facility Charges Collected at the Fort Collins-Loveland Municipal Airport. The PFC Application requires specific identification of projects that the PFC funds will be used for. Section 7.5-93 of the new Code provision set forth in Item"A"above,provides for project designation by resolution of both City Councils of Fort Collins and Loveland. The Resolution identifies the three projects as: rehabilitation of the south general aviation ramp area,design of the future snow removal equipment building and the Master Plan Study. The south general aviation ramp rehabilitation project was completed last year and involved reconstructing a 400 X 386 foot section of aircraft ramp area. The design of the snow removal building is 95%complete and will be finished within 60 days. (The Funding for the construction of the snow removal equipment building is not yet programmed by the FAA.) Both of these projects were 90%funded with FAA money. The Master Plan Study will begin early next year;the FAA Grant for 90%of the Study cost has already been approved by both Councils. In addition, the Colorado Aeronautics Board has approved funds for half of the City's costs, or 5% of the Study's total costs. The State Grant Agreement for these funds was recently received and will be submitted to the City Council for approval in January. The PFC funds generated from this Application will be in the amount of$100,658 and will be used to reimburse the airport's share of funds for the two completed projects and for the airport's share of funds that will be spent for the Master Plan study. The Master Plan Study will begin early next year and will develop a new 20-year Capital Improvement Plan, CIP, for future PFC Applications. 18. First Reading of Ordinance No. 177, 2003, Amending Section 2-582 of the City Code Regarding the Employment Status of Deputy and Assistant City Attorney 376 December 16, 2003 This Ordinance would clarify that Deputy and Assistant City Attorneys are not management employees of the City but, rather, are unclassified employees whose positions are approved by the Council, and who are appointed by the City Attorney, and serve at the pleasure of the City Attorney. 19. Resolution 2003-144 Approving the Purchase of Seventy-Eight Panasonic CF-73 Tou book Laptop Computers from Portable Computer Systems as an Exception to the Competitive Purchasing Process. The present purchase is for seventy-eight (78) laptops to replace Toshiba and Panasonic laptops currently reaching the end of their service life. Not only are these laptops beyond their four-year replacement cycle, most will not work properly within the new dispatch system due to be put in service early in 2004. The new CF-73s will be equipped with wireless PC modems suitable for use in the City's Computer Aided Dispatch system. 20. Resolution 2003-145 Finding Substantial Compliance and Initiating Annexation Proceedings for the Trailhead Annexation. The Trailhead Annexation is an annexation,zoning and structure plan amendment for 91.25 acres of land located north of East Vine Drive,west of the Waterglen Subdivision.The parcel is contiguous to existing City boundaries by the Buderus Second Addition and the Vine Business Park Annexation.The requested zoning is Low Density Mixed-Use Neighborhood. (LMN). The proposed Resolution states it is the City's intent to annex this property and directs that the notice required by State Statutes be given of the Council's hearing to consider the annexation ordinance. The public hearing for the annexation ordinance must occur no less than 30 days and no greater than 60 days from adoption of the Resolution finding compliance with State Statutes. This Resolution will schedule the Public Hearing and First Reading of the annexation ordinance on February 3, 2004. 21. Resolution 2003-146 Authorizing the City Manager to Execute an Intergovernmental Agreement with the North Front Range Transportation and Air Quality Planning Council for the Provision of Support Services. Since early August, 2003 the City had been in negotiations with the North Front Range Transportation and Air Quality Planning Council (MPO) to renew the intergovernmental agreement between the two entities for support services. This new agreement is structured around the MPO discontinuing the use of City financial services and the need to alter City support services accordingly. 377 December 16, 2003 22. Resolution 2003-147 Authorizing the Formation of an Ad Hoc Council Compensation and Benefits Committee. The proposed resolution establishes a two-person Council committee, comprised of Councilmembers Eric Hamrick and Kurt Kastein,to work with various members ofCity staff in developing a scope of work and a competitive bid RFP process to obtain the services of one or more employee compensation and benefits consultants. The ad hoc Council committee will also review the various responses to the RFP, and make a recommendation to the City Council for the adoption of a resolution selecting the best qualified consultant or consultants. The consultant(s)will work with the committee and City staff to generate a final report to Council containing recommendations regarding employee compensation and benefits. 23. Resolution 2003-148 Authorizingthe e Mayor to Enter into an Intergovernmental Agreement with Latimer County for the Provision of Social and Human Services for the Calendar Years 2004 and 2005. This Resolution authorizes the Mayor to enter into an Intergovernmental Agreement with Larimer County for the purpose of providing social and human services to the City of Fort Collins for the 2004 and 2005 calendar years. The intergovernmental agreement allocates funds appropriated in the 2004 budget for these purposes, and provides for the use of budgeted funds in 2005,contingent upon appropriation of those funds. Since 1981,the City has contracted with Latimer County to allocate and administer the distribution of human services via the Health and Human Services Community Partnerships Program administered by the County. 24. Resolution 2003-149 Making Appointments to Various Boards and Commissions. Vacancies currently exist on various boards,commissions,and authorities due to resignations of board members and the expiration of terms of members. Applications were solicited during September. Council received copies of the applications and Council teams interviewed applicants during October and November. This Resolution makes 56 appointments to 25 boards and commissions. Names of those individuals recommended for appointment by each Council interview team have been inserted in the Resolution. 378 December 16, 2003 In addition, this Resolution affirms two Team Fort Collins appointments to the Youth Advisory Board. ***END CONSENT*** Ordinances on Second Reading were read by title by City Clerk Krajicek. 7. Second Reading of Ordinance No. 164, 2003, Appropriating Unanticipated Revenue in the Capital Projects Fund For Transfer to the Capital Leasing Corporation Fund to be Used for Interest Associated with the Debt Service Payments on the City Office Building at 215 North Mason Avenue and the Civic Center Parking Structure. 8. Second Reading of Ordinance No. 165, 2003, Authorizing the Transfer of Appropriations Between Funds to be Used for the Advanced Traffic Management System. 9. Second Reading of Ordinance No. 167,2003,Approving the Terms of the Lease Agreements for the Pulliam Ranch. 10. Second Reading of Ordinance No. 170, 2003, Amending Section 2-575 of the City Code Relating to Councilmember Compensation. U. Second Reading of Ordinance No. 171, 2003, Designating the E. Kimple House, 415 East Elizabeth Street, as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code. 12. Second Reading of Ordinance No. 172, 2003, Designating the Historic Seventh Day Adventist Church,400 Whedbee Street, as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code. 13. Second Reading of Ordinance No. 173, 2003, Making Various Amendments to the City of Fort Collins Land Use Code. 14. Second Reading of Ordinance No. 174, 2003, Continuing a Temporary Manufacturing Equipment Use Tax Rebate Program for Fort Collins Manufacturers. 15. Second Reading of Ordinance No. 175, 2003, Appropriating Unanticipated Revenue and Prior Year Reserves in the Benefits Fund to be Used to Cover Medical Claims and Other Expenses. 16. Second Reading of Ordinance No. 176, 2003, Appropriating Prior Year Reserves in the Transportation Services Fund for Transfer to the North Front Range Transportation & Air 379 December 16, 2003 Quality Planning Council Fund for the Purpose of Providing a Loan to the Metropolitan Planning Oreanization. 17. Second Reading of Ordinance No. 168,2003, Enacting a New Article VII of Chapter 7.5 of the City Code Establishing a Passenger Facility Charge at the Fort Collins/Loveland Municipal Airport. Ordinances on First Reading were read by title by City Clerk Krajicek. 18. First Reading of Ordinance No. 177, 2003, Amending Section 2-582 of the City Code Regarding the Employment Status of Deputy and Assistant City Attorneys. 30. First Reading of Ordinance No. 178,2003,Imposing a Moratorium upon the Acceptance of Applications forthe Approval of Development Plans and/or the Issuance of Building Permits for Dwellings Constructed on the Rear Portion of Lots Located Within the N-C-L, Neighborhood Conservation Low Density, N-C-M, Neighborhood Conservation Medium Density, and the N-C-B, Neighborhood Conservation Buffer Zone Districts. Councilmember Bertschy made a motion,seconded by Councilmember Tharp,to adopt and approve all items not withdrawn from the Consent Calendar. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Roy and Tharp. Nays: None. THE MOTION CARRIED Citizen Participation Follow-up Councilmember Tharp spoke regarding item #23 Resolution 2003-148 Authorizing the Mayor to Enter into an Intergovernmental Agreement with Larimer County for the Provision of Social and Human Services for the Calendar Years 2004 and 2005 and stated the City had maintained its level of commitment for funding for social and human services. Councilmember Kastein spoke regarding item#22 Resolution 2003-147Authorizing the Formation Of an Ad Hoc Council Compensation and Benefits Committee and stated the Committee would initially be working on a Request for Proposals for a consultant to examine compensation and benefits. Councilmember Bertschy stated the City had been talking with the City of Loveland about ways to pool health care costs. He stated there had been several ideas broached with the Colorado Municipal League about ways to form a pool. 380 December 16, 2003 Councilmember Hamrick spoke regarding item#22 Resolution 2003-14 7A uthorizing the Formation ofan Ad Hoc Council Compensation and Benefits Committee and stated he was looking forward to working with Councilmember Kastein on the committee. Staff Reports City Manager Fischbach presented an update on the status of staff responses to Council questions and requests for information. City Attorney Roy reported that Senior Assistant City Attorney Greg Tempel had received an award as Outstanding Assistant City Attorney for 2003 from the Metro City Attorney's Association. Councilmember Reports Councilmember Bertschy reported that the City received a Digital Cities award at the National League of Cities conference in Nashville. He reported that he heard good ideas about rental housing at the conference. He stated the City was frequently held up as a good example for many types of programs at the conference. Public Hearing on Draft Changes and Amendments to the 2003 International Residential Code (IRC) ®. Held. The following is staff s memorandum on this item. EXECUTIVE SUMMARY The purpose of this hearing is to provide Council a public forum in which to hear a variety of responses to the draft changes and amendments to the 2003 International Residential Code(IRC)® (the latest version of the nationally-recognized "model"residential building code), and to obtain information on which to base an informed decision for adoption. Following the public hearing, the proposed changes and amendments are scheduled to be considered by the City Council at a study session on February 10, 2004, after which staff will present ordinances proposing the changes and amendments at a regular Council meeting. The draft changes and amendments to the IRC®have undergone a sixteen-month review by staffand a joint Fort Collins-Larimer County task group. This latest residential building code, already in effect in much of the country, replaces the now-obsolete Uniform Building Code currently adopted by Fort Collins. It specifically covers only new one- and two-family dwellings and contains some of the most significantpotential changes to the Fort Collins Building Code in many years, including important new provisions for: 381 December 16, 2003 • Indoor Air Quality: Radon-reducing venting systems and interior moisture control/ventilation systems. • Energy Conservation: Updated energy-conservation construction standards providing increased energy- conservation and performance, and a new optional simplified compliance table. • Architectural Features: 1) Safer, less steep stair geometry with lower risers and greater step depth. 2) Lower minimum ceiling height. • Structural and Exterior Elements: 1) Structural connection from foundation to roof. 2) Weather-resistant membrane backing behind lap siding. FINANCIAL IMPACT Fees The draft amendments relocate building permit and plan review fees from the building code to the City Code, Chapter 7.5, "Administrative Fees", which is administered by the City Manager. The change provides greater responsiveness and flexibility to adapt to changing economic conditions and service demands. No fees changes are proposed except for a new amendment that codifies the current policy for issuing "Foundation and Framing" (F&F)permits and increases the amount of the flat fee from $150 to $200. An ­F&F"is a limited conditional permit that allows builders to start and complete construction up to the unfinished structure and shell without paying the full building permit fee and associated Capital Improvement Expansion Fees, and other related utility fees. Increased Construction Costs Some provisions of the 2003 INTERNATIONAL RESIDENTIAL CODE(IRC) ®and amendments as drafted will have an impact on the cost of new housing construction. BACKGROUND (A) TASK GROUP A local volunteergroup, made up ofbuilding code off cials from Fort Collins and Larimer County, City board members, builders, private building specialists, and representatives from the Home Builders Association ofNorthern Colorado, has been meetingfor the past 16 months examining the model code plus local amendments. 382 December 16, 2003 Although the Task Group's purpose is to represent a range of perspectives and not to achieve consensus, general agreement was achieved on many issues. Members were encouraged to, and often did express opinions/suggestions on the draft code update package. The major remaining issues are: Roof to Foundation Connection:No significant net cost increase. Cost of IRC requirement for a continuous roof-to-foundation connection to resist wind-uplift forces will be offset by more extensive wall-bracing provisions currently in effect. Stairs: The modest cost for actual stairway construction is not the significant issue.More important are the constraints associated with compact home designs and the greater floor opening dimensions created by the added 20 inches of horizontal stair length. This requirement would have thegreatest effect on newer higher-density developments containing homes have compact floor plans on smaller lots, where a two foot increase in stair length can affect the entire exterior footprint. Under-floor moisture control: A vapor retarder is now required on any exposed interior ground surfaces. The draft amendments would require sealing and attaching the membrane to the foundation wall. Additionally, in the 10% - 15% of new homes with suspended structural basement floor systems, the new provisions require special criteria for the under-floor space below if the basement floor is wood, and therefore subject to moisture damage and f ngal growth. In such cases, the draft amendments specify enclosed-combustion or power-vented heating and water-heating appliances to reduce the possibility of"down-drafting"combustion products into the living space when they are located in basement space above;and a moisture ventilation system with a continuously operating fan. Radon-resistant construction: The IRC® does not mandate radon systems, but provides an optional appendix chapter for jurisdictions that opt to do so. One of the following three mandatory draft options for only new construction are provided; a) passive system, b) a continuously-operating fan "active"system, or c)active system for homes with basements and passive systems elsewhere. Siding Weather Backing: The IRC®specifies water-resistant membrane("house wrap')attached to exterior sheathing behind f ber board or hardboard lap siding. Energy Conservation: IRC®increases wall insulation performance from R-13 to R-18. IRO®increases windows thermal performance from U-0.5(R-2)to U-0.35(R-3)and specifies solar filtering factor (SHGC) of 0.4. HVAC IRC®requires sealing all ductwork. 383 December 16, 2003 Amendment requires frame cavities used as ducts be tested for leakage. Amendment stipulates testingfor manufacturer's specification and for combustion safety. Amendment specifies newACequipment must meet the 2007Federal efficiency standard upon adoption. (B) SCHEDULED PUBLIC MEETINGS DATE/TIME PUBLIC HEARING TYPE • November 20, 2003, 1:00 p.m. Building Review Board • November 20, 2003, 5:00 p.m. Air Quality Advisory Board • December 3, 2003, 6:00 p.m. Natural Resources Advisory Board • December 4, 2003, 4:00 p.m. Affordable Housing Board • December 16, 2003, 4:00 p.m. City Council—Public Hearing • December 18, 2003, 1:00 p.m. Building Review Board • January 21, 2004, 5:00 p.m. Electric Board • February 10, 2004, 6:00 p.m. City Council -Study Session • March (?), 2004, 6:00 p.m. City Council -First Reading O RANGE OF OPTIONS The draft code changes could have long-term effects in terms of both housing costs and public benefit. " Mayor Martinez stated this was a public hearing. City Manager Fischbach introduced the agenda item. Greg Byme,CPES Director,presented background information regarding the agenda item. He stated this public hearing would lead to a study session on February 10 and that this was an opportunity for the public to be heard. He stated extensive background materials had been given to the Council and that all of the options were technically sound and had the endorsement of the Building Official. He stated there were important cost considerations and policy options for the Council to consider. He stated staff wanted to hear questions and concerns from the Council and the public. Felix Lee,Director of Building and Zoning,stated the purpose of revising the current building codes was two-fold. He stated the Building Code review process occurred on a regular three-year cycle when model codes were updated and published. He stated the City had historically adopted the new building code with its own local amendments. He stated the Code review and adoption process was an opportune time to include any new provisions that offered improved health, safety and welfare benefits to the community. He stated this code cycle offered an opportunity to correct many of the 384 December 16, 2003 current energy efficiency problems in current construction practices identified in the New Home Energy Efficiency Study of July 2002. He stated this code cycle was unique in that the City would be considering a published code that was the product of a historic merger of three national principal code writing organizations. He stated the 1997 Uniform Building Code was being phased out nationally and that the UBC had been adopted by the City since 1958. He stated the International Residential Code contained all needed regulations in a single code book. He stated a volunteer group which had convened twice monthly over the past 16 months included code officials, public board members, builders, building specialists, nonprofit energy specialists and representatives from the Homebuilders Association of Northern Colorado. He stated the process was not consensus driven out the outset and that it was made clear that the idea was to represent as many perspectives as possible. He stated the draft code had been presented to the Building Review Board,the Air Quality Advisory Board,the Natural Resources Advisory Board, and the Electrical Board and that it would be presented to the Affordable Housing Board in January. He stated the Building Review Board would be conducting a second review with the added cost data that was included in the Council's material. He stated the draft code amendments included administrative housekeeping changes and several important technical revisions. He stated the major changes that would have the most impact on home construction practices related to safety,architectural features,indoor air quality,and energy conservation. He explained in detail the proposed changes in requirements relating to minimum ceiling height in habitable rooms(from 7.5 feet to 7 feet), a less steep and safer stair geometry, fan- powered moisture exhaust ventilation pipe, and energy efficient enclosed combustion of power vented heating and water heating appliances. He explained the radon system options: a passive radon system with provisions for a future fan installation,fan installation at the time of construction, fan installation only in new homes with basements, or a sub-slab area beneath the basement floor slab which would have a layer of gravel vented to the roof. He described the proscriptive compliance method in the energy code and explained new thermal criteria that would specify an increase in the wall insulation(from R-15 to R-18) and window thermal performance(from R-2 to R-3)with the added required feature of a minimum solar shading factor to reduce summer cooling loads. He stated all joints and seams in HVAC systems must be sealed with approved sealants and that frame cavities used as part of the duct system must be pressure tested for leakage. He stated new air conditioning systems must meet seven federal standards and that all systems must be tested. He stated the size of heating and cooling systems would be limited to the size set out in industry standards. He stated vinyl faced fiberglass insulation would be required to be protected from damage to prevent the release of carcinogenic materials. He presented visual information relating to the range of options and the range of associated buyer costs. He stated 52 other jurisdictions in the State had adopted the IRC and that 30 had adopted the new energy standards. He stated no other jurisdiction in Colorado was requiring radon mitigation with the exception of Larimer County in specific subdivisions. Mayor Martinez stated each participant would have three minutes to speak at the public hearing. 385 December 16, 2003 Greg Snyder, 619 Bear Creek, stated Fort Collins was below the State and national averages in lung cancer rates. He stated radon mitigation would be fixing a problem that did not exist. He stated he had seen an article in Forbes magazine that discussed studies that had been done to show that low levels of radon and radium were beneficial to people's health. He presented copies of the article to the City Council. Leo Bucellato spoke regarding the dangers of radon and the benefits of radon mitigation. He asked that the Council not underestimate environmental problems facing the community. Juliette Wilson spoke regarding the benefits of radon mitigation. She stated the costs of radon mitigation systems would be less than the costs of cancer. Jim Lane stated he had seen no definitive scientific studies showing that radon was an issue. He stated the EPA had never issued a final rule regarding radon,and that science should lead regulation. He questioned how radon could be a problem when Colorado had the third lowest lung cancer rate in the country. He stated those in the mitigation business and City staff would gain from passage of radon mitigation requirements. Bob Peterson, small business owner and builder, spoke regarding the impact of the model energy code of 1997 on affordable housing and remodeling and renovation projects. He stated the regulations needed to be adjusted so that local builders could make a living. He stated more regulations equated to more cost. He stated the IRC was a good code but that the proposed amendments to the IRC such as radon mitigation and the energy code were an invasion of our rights to make choices. He stated the cost of the radon system in the future had never been addressed. ("Secretary's Note: The Council took a brief recess at this point.) Darrel Schriner, construction employee, stated some of the code changes would raise the price of homes. He requested that the Council consider some of the projects that were currently underway. He stated he was requesting that some existing approved plats grandfathered to allow them to remain under the 1997 code. He stated some plats would have to change if they were required to meet the new requirements, that some model homes would have to be remodeled, and that there would be confusion on the part of homebuyers. He stated the best way to mitigate radon was to open doors and windows on a daily basis. Jamie Basler stated the costs of running the fans in an active radon mitigation system had not been addressed. He stated the energy demand of a radon fan was 60 watts (.06 kilowatt) and that the life of home was 75 years. He stated the energy used per system was 39,420 KW and that the current cost would be 6¢ per kilowatt. He stated the operational cost for the life of the home would be $2,365 and that the cost to consumers for the 14,400 new homes built over the next 20 years would be $34 million. 386 December 16, 2003 Peter Benson, Village Homes, supported the IRC and spoke against adding the other options. He stated his company already offered some of the options as a choice but that not every builder or homeowner should be forced to pay for the options. He stated radon mitigation was based on "bad science." He asked that the IRC be approved without the radon mitigation requirement. Will Harper, Fort Collins Board of Realtors, stated all homeowners should have full use and enjoyment of their homes as free government interference as possible while maintaining the public good. He supported the current process of informed choice regarding radon mitigation. He stated the adoption of an ordinance requiring radon mitigation in new construction would eliminate informed choice for new homebuyers. He asked that the City consider the impact on the increasing cost of new home construction. He stated the ability to have affordable housing for all citizens was further eroded by the passage of each new ordinance that added to the cost of new homes. He stated passive radon mitigation systems were adequate in most cases to preserve the integrity of housing costs without compromising health and quality of life for homebuyers. He stated homebuyers could choose to enhance the system. He stated the Board of Realtors would support a requirement for passive radon mitigation systems rather than active radon mitigation systems. Eric Levine, 145 North Meldrum Street,spoke in support of active radon mitigation systems in new housing. He stated lowering exposure to powerful cancer-causing agents such as radon would lower the incidence of cancer and save lives. He stated Larimer County required passive radon mitigation systems in nearly all new subdivisions. He stated animal studies agreed that radon was dangerous and caused cancer. He stated this was probably the single most important issue the Council would wrestle with and that it was a"life or death"issue for hundreds of people purchasing new homes in Fort Collins. He stated much of what was before Council had been recommended many years ago by the Air Quality Advisory Board and that no action had been taken. He stated radon was deadly and that the City's program fell short of what the County had been doing for the last seven years. Rondell Ferguson, Fort Collins Board of Realtors, stated there was no sufficient data to make any conclusive statement linking lung cancer with elevated radon levels. She stated an EPA study found that no significant change in the relationship between radon levels and lung cancer had been observed. She stated outdoor air contained about one part radon for every two trillion parts of air. She stated there was no concrete evidence that radon was linked to lung cancer. Harry Pullman,remodeling contractor,urged the Council not to require mandatory radon mitigation systems. He stated staff was proposing that heaving and cooling systems not be oversized, yet the proposal was to put radon mitigation in every house whether it was needed or not. He stated his company always encouraged customers to test for radon during basement remodels. He stated if radon mitigation was installed in new housing that it would not take into consideration how basements would be finished in the future and the cost of having to do it more than once. 387 December 16, 2003 Jim Wetzler, Fort Collins Board of Realtors, stated active radon mitigation systems would need to be replaced every three to five years at a cost of approximately$300 for parts and labor. He stated Larimer County had one of the lowest lung cancer mortality rates in the country. He stated a passive mitigation system might be sufficient and cost effective. He stated passive systems could easily be turned into active systems if necessary. He stated the cost for adding radon mitigation during construction was approximately $3504500 per unit building as opposed to $80042,500 for retrofitting an existing structure. He stated the citizens should have the right to make personal choices concerning their own homes. He stated the proposed regulation for adding passive or active mitigation systems to new homes would remove personal choice and would drive housing costs up. He stated the Board of Realtors advocated a passive system if one must be mandated at all. Dr.Bruce Cooper,Medical Director of Health District ofNorthem Larimer County,stated the Board of the Health District considered the issue of radon reduction system systems, gave careful consideration to the exposure levels in this area, considered the science behind the risks of radon at those concentrations, and discussed the costs of regulation. He stated the Board recommended that the City add passive radon reduction systems to building codes. He stated the Board had recently discussed whether active systems would be better. He stated active systems would save more lives but that after consideration of cost effectiveness issues the Board supported passive systems as being more cost effective than active systems. He stated there was undisputable evidence that radon exposure for miners caused significant lung cancer and that there was accumulating evidence that exposure to the radon levels in housing caused lung cancer. He stated the National Research Council had said that between 10-14%of lung cancers were caused by radon exposure at the levels seen on average across the nation. He stated the levels in Fort Collins were twice as high as the national average. He stated the Board of the Health District strongly supported the addition of passive radon mitigation systems to the Building Code. Paul Olan, 3336 Gunnison Drive, spoke in opposition to reducing ceiling heights to seven feet because of the impact on taller people. An unidentified man stated reducing ceiling heights would be inappropriate because it would work against spaciousness in homes. He spoke regarding radon studies and stated EPA regulators were wasting money on scaring people about radon. Eric Crohnwall,Fort Collins Board of Realtors,spoke regarding the cost effectiveness ofpassive and active systems. He stated the Natural Resources Department attempted to address the issue in a study entitled "Health Benefits of Radon Resistant New Construction and Associated Costs." He stated the study did not include the operational expense of active systems. He stated to run an active system in all affected homes would cost$34 million,which would be about three times the estimated costs for construction. He stated an active system would cost$168,500 per cancer avoided and that a passive system would cost $51,000 per cancer avoided. 388 December 16, 2003 Tom Honn, 1601 Quail Hollow Drive, stated Larimer County's Code required that some new subdivisions required radon tests on finished homes before a certificate of occupancy and that certain areas required that passive radon systems be installed. He stated the issue was whether radon mitigation should be required at all based on inadequate science. He stated people should have a choice regarding whether it should be done. He stated it was unknown whether radon systems would reduce the levels of radon exposure and that it was unfair to lead people to think that they would be protected. He stated the there was a cumulative effect of code changes on the cost of housing. Arnold Drennen, 3412 Canadian Parkway, stated he had installed radon mitigation in about 2,000 houses. He urged the Council to consider requiring at least a skeleton passive system to ensure that all houses could be mitigated in the future. He stated a passive system would guarantee future mitigation at the minimal expense of$400-$500 including a post-mitigation test. Bill Kiche, Northern Colorado builder, stated the Council was underestimating the building community and potential homeowners. He stated radon mitigation should be their choice. He stated the Cityrequired that the realtor disclose radon to buyers of new construction and existing properties. He stated this allowed the homeowner to make a choice about what to do. Gil Paven, representing the Homebuilder's Association of Northern Colorado, stated an ordinance was passed in 1996 requiring that radon information be provided at the time of contract signing for all residential sales. He stated radon mitigation providers increased their business more than tenfold. He stated this proved that radon awareness and installation of systems could be market driven. He stated 70-75%of homes in Fort Collins were above EPA guidelines and that 25-30%were not. He stated the radon ordinance being discussed would be unfair to those homes that were below EPA guidelines. He stated there were builders installing systems voluntarily. He stated the average cost for a retrofit system was approximately $850 and that retrofits were being bid competitively by approximately five mitigators listed with the National Environmental Health Association. He spoke regarding the methods used to reduce costs in installations. He stated it would be most fair to allow the general public to make the decision regarding whether they want to retrofit or use a passive reduction system. Carl Glaser, contractor and architect, stated he had voluntarily installed passive systems in multifamily dwellings since 1996. He stated passive systems were less expensive at the outset. He stated one issue was monitoring and inspection. He stated classes in Fort Collins to qualify inspectors had been discontinued, that it was costly and time consuming to attend a course in Colorado Springs to become licensed to inspect work, and that it was necessary for most installers to hire outside consultants to inspect work on passive systems. He asked that if the Council decided to require a passive system that testing be conducted in the City to allow contractors and City inspection forces to become qualified to inspect the work. P 9 P 389 December 16, 2003 Nancy York, Air Quality Advisory Board, stated 3 out of 4 homes in Fort Collins had high radon levels. She stated the EPA had stated no level of radon was safe and that all of the major health organizations agreed that many lung cancers could be prevented with radon mitigation. She spoke in favor ofthe code as presented and stated energy conservation would reduce costs and consumption of finite resources over time. She stated the issue of radon mitigation went beyond money. She supported the adoption of at least a requirement for passive radon mitigation in new residential construction and testing of the systems. She stated passive mitigation would lower radon levels by an average of 47% and that active systems would render an overall reduction of between 85-90%. Linda Stanley, chair of the Air Quality Advisory Board, 2040 Bennington Circle, stated the Board recommended that City Council adopt the proposed amendments to the following sections of the International Residential Code: interior moisture control and ventilation, energy conservation and radon. She stated the Board recommended active mitigation. She stated the Board felt that the adoption of the energy code was a big step forward. She stated the Board reviewed a report that found that most new homes in Fort Collins were not meeting the energy code and that these amendments to the code would help correct that problem. She stated the changes would also save builders costs in call-backs and warranties. She stated price was not the same thing as cost. She stated the Board recommended active mitigation for radon because of significant health risks. She stated at a minimum there should be passive systems with some sort of testing and owner notification. Randy Fisher,chair of the Natural Resources Advisory Board,stated the majority of the Board voted to recommend some sort of passive system for radon mitigation and to support the interior moisture control and indoor ventilation provisions of the new code. He stated the Board discussed radon reduction and mitigation at length and that the Board had supported some kind of radon mitigation for a long time. He stated the risk for unmitigated radon was about 10 to the minus 3 and as high as 10 to the minus 2 if there were existing health issues. He stated this meant that there could be as much as one excess cancer per 1,000 people or even 100 people. He stated this was an unacceptable risk for this society when the minimal mitigation measures required by these codes would be very cost effective in reducing risks. He stated he personally felt that an active mitigation system was the best. David May, president of the Fort Collins Area Chamber of Commerce, stated the real issue was science versus myth. He stated there were studies on both sides of the issue of risks associated with radon. He stated the Chamber of Commerce believed that any government regulations that were imposed on the community should be based on strong scientific data,especially when the regulations would cost the citizens of the community money. He stated costs issues must be kept in mind and that these kinds of costs impacted affordable housing. He stated no other community in Colorado required radon resistant new construction even though those communities had the same radon levels as Fort Collins. He stated there was not enough hard science to warrant mandatory government 390 December 16, 2003 intervention on this issue. He stated the Chamber of Commerce opposed the adoption of any type of mandatory radon resistant new construction in the Building Code. He stated the market should decide what choices to make. Michelle Jacobs, Director of Community Affairs for the Homebuilder's Association of Northern Colorado,stated members of the Association had participated in the dialogue on the Code and local amendments. She stated the Association supported the international codes as more user friendly but that the Association had concerns about the Energy Conservation Code and the inclusion of appendix relating to radon control methods. She stated a survey was sent by the City to local realtors to determine the effectiveness of the current radon program and that 77% of buyers and sellers were informed about radon, 76%had radon inspections done, 84% encouraged buyers to test for radon, 76%of buyers requested mitigation when levels were above EPA standards,and that in 91%of sales the buyer and seller came to agreement on the cost of mitigation. She stated this demonstrated that the public was aware of radon and that homebuyers would take the necessary actions that they deem appropriate for their families. She stated Fort Collins had been active since 1997 in pursuing public awareness of indoor air quality. She stated decisions should be made based on sound scientific evidence,which was absent from the radon discussion. She stated homebuyers had the choice now to mitigate for radon or not and that the decision should be left in their hands. She presented an official position paper for distribution to the Council. Mayor Martinez asked if Councilmembers had any requests for follow-up. City Manager Fischbach stated there would be a study session on this issue. Councilmember Bertschy stated the goal was to hear public input. Consideration of an Appeal of the October 7, 2003 Decision of the Hearing Officer Regarding Discount Tire PDP, #26-02,Upheld. The following is staff s memorandum on this item. "EXECUTIVE SUMMARY A Notice of Appeal was filed with the City Clerk on October 21, 2003, with respect to the October 1, 2003, decision of the Hearing Officer approving the Project, by Marilee J. Lithe, who lives nearby. An Amended Notice ofAppeal was f led with the City Clerk on November 10, 2003, by Ms. Lube. The Appellant contends that the Hearing Officer did not properly interpret the Land Use Code and Charter. 391 December 16, 2003 BACKGROUND The original Type I hearing for the Discount Tire at Fossil Creek Project Development Plan was conducted on July 2, 2003, and approved on July 14, 2003. It was appealed to City Council, and on September 16, 2003, City Council remanded the matter back to the Hearing Officer for a rehearing. A rehearing tookplace on October 1, 2003for the Discount Tire as Fossil Creek Project Development Plan, and the project was approved on October 7, 2003 subject to the following conditions: 1. The Applicant shall include on the Final Plan, the hours ofoperation of 8:00 a.m. to 6:00 p.m. Monday through Friday, and 8:00 to 5:00 p.m. on Saturday. 2. The Applicant shall ensure that parking area lights are extinguished no later than 8:00 p.m. 3. This approval is contingent upon the City Council vacation ofportions ofthe College Avenue (SH 287) and Fossil Creek Parkway rights-of-way as specified on Exhibit A of the "Right-of-way vacations for Discount Tire at Fossil Creek PDP. The appellant contends that, in re-hearing the matter, the Hearing Officer failed to properly interpret and apply the relevantprovisions ofthe Code and Charter. Although the Notice ofAppeal does not list any specific sections of the Land Use Code that the Appellant believes were not properly interpreted and applied, it appears that the Notice ofAppeal is focused primarily on issues pertaining to water quality,food erosion, drainage, leaking oil and f uel and consequent possibility of soil and water contamination, air pollution, noise, and traffic matters. " Mayor Martinez stated 20 minutes would be allowed for each side to make a presentation and that each side would then be allowed 10 minutes for rebuttal. City Attorney Roy explained the appeal process and stated the Council could uphold, overturn or modify the decision of the Hearing Officer or remand the matter for further consideration. Troy Jones, City Planner,presented background information regarding the agenda item. He stated the appeal related to a tire store proposed at the southeast comer of Fossil Creek Boulevard and Highway 287. He stated the hearing was conducted on October 1, 2003 and was remanded for a rehearing. He stated in this case a neighbor had appealed the decision. He summarized the allegations made by the appellant as dealing with water quality, flood protection,erosion,drainage, leaking oil and fuel, the possibility of soil and water contamination, air pollution, noise and traffic 392 December 16, 2003 matters. He stated the staff response dealt with how the application was meeting the applicable standards. Mayor Martinez stated the appellants would be allowed 20 minutes for a presentation. Merilee Lube, 5326 Fossil Ridge Drive, appellant, stated she appeared before Cameron Gloss on October 1, 2003 and that she had several problems with his decision to approve the project. She stated she objected to the possibility of environmental damage to Fossil Creek and possible problems with stormwater safety to the surrounding area. She stated there would be problems over time after the property developed. She stated a study was done by the City relating to the history of flooding along Fossil Creek. She stated Discount Tire wanted to put its store in the area that was flooded in 1997. She stated a USGS study showed that flooding along Fossil Creek was approximately a 50 year event. She stated during a flood that oil from Discount Tire would leak into Fossil Creek. She stated the proposed stormwater improvements included enlarging the channel immediately upstream and downstream of the new Fossil Ridge Drive structure and that the cost included potential utility relocations. She stated the City was in the process of ranking all projects to be included in the City's master's plans and that the Fossil Ridge project was high on the County's priority list. She stated she would like to see the Fossil Ridge project placed at the top of the City's priority list. She stated approximately 250 cars would come and go into Discount Tire every day and that the oil retention area was not adequate. She stated oil leakage would go directly into Fossil Creek and would go eventually into Fossil Ridge Reservoir and the Platte River. She stated there was no plan for protection for an asphalt area she identified on a slide and stated oil leakage would go through the asphalt over time. She stated the identified area flooded about every 5 years. She stated there was no guarantee that any of the big units entering the area during construction would not leak diesel fuel, oil, etc. and impact Fossil Creek and Fossil Ridge Drive. She presented visual information relating to ducts that had not been replaced and stated during flooding it was not possible to get out on Fossil Ridge Drive. She stated the creek was owned by the County and that the County did not have any idea that Discount Tire was building at this location. She stated having Discount Tires at this location would mean an extra 250 cars coming off of Highway 287. She stated there were already traffic safety issues at this location and that the addition of another 250 cars each day would create a"major traffic mess." She stated there were also safety issues with school buses. She stated pollution in her neighborhood would be created by 18-wheelers delivering tires. She spoke regarding permeability of the soil and stated products may have to be stored outside of the facility during construction and that there could be a possibility of leaks. She questioned how the creek would be protected during construction. She stated it was important to know who was responsible for studying these types of issues and who would be responsible for any adverse environmental impacts in the future. She questioned whether there was any kind of drainage and erosion plan for the construction phase. She stated the appropriate studies had not been done regarding the drainage issues. Jack Blake, Stewart and Associates, representing the applicant, stated the staff analysis described how the engineering work complied with all of the City codes. He stated run-off from the site would 393 December 16, 2003 not go straight to the creek because there was a drainage Swale. He stated the storm drainage and run-off engineering met the City's standards and codes. He stated there might be one 18-wheeler going into Discount Tire each week. He stated the flooding was not the responsibility of the applicant and that the City was working on flooding issues. He stated any resolution of the problem would have to be a City/County project. Mayor Martinez stated each side would have 10 minutes for rebuttal. Ms.Lube asked when the project would start,how long it would take,and when it would be finished. She questioned how much inconvenience there would be to residents and to school traffic. She asked how buses would get back and forth during construction. She asked if Highway 287/Parkway traffic would be inconvenienced. She asked if there would be emissions control on all vehicles including construction vehicles. She asked why Discount Tire must build at this location and within a floodplain. The applicant declined to make a rebuttal. Mayor Martinez stated the question that was before the Council was whether the Hearing Officer failed to properly interpret and apply relevant provisions of the Land Use Code. Councilmember Kastein asked staff to comment on the floodplain and drainage issues brought up by the appellant. Glenn Schleuter, Stormwater Utility,stated he heard a number of issues. He stated one issue presented was County access to the subdivision,which was undersized and needed to be addressed by the County, and which could possibly be addressed jointly by the City and the County in the future. He stated another issue was water quality. He stated there was a water quality pond on this site and that a bigger rain would always wash through such a pond and dilute the pollution. He stated a third issue was proximity to the floodplain and that the site itself was not in the floodplain although the driveway entrance was in the floodplain. He stated the proposed project met all of the City's requirements regarding water quality, building placement, etc. Councilmember Kastein asked for staff comment regarding whether a traffic impact study was performed or needed. Eric Bracke, Traffic Engineer, stated a traffic impact study was performed and that the intersection currently had good levels of service(levels A and B) with the new timing plan in place. He stated it was anticipated that there would be about 214 trips generated each day by this project, which equated to 107 vehicles. He stated the accident rate for this intersection was less than one accident per million vehicles entering the intersection and that over two was considered to be a high accident location. He stated this met all of the City's standards and that the project barely met the requirements for needing a traffic impact study. 394 December 16, 2003 Councilmember Kastein asked about the application of the Adequate Public Facilities ordinance in this case. Bracke stated this project would virtually have no impact on the intersection and that the level of services would remain at levels A and B. Councilmember Tharp asked about the issue of flooding downstream of the project and whether the issue was that this project would not change the situation. Schleuter replied in the affirmative and stated the problem occurred because small culverts were allowed in the older County subdivision. Councilmember Tharp asked if the project itself would have any effect on that problem i.e.that the problem existed before and would continue. Schleuter stated the water from this site would be drained and long gone before the peak of Fossil Creek ever hit the crossing. Councilmember Tharp asked if there was any City/County plan to deal with the flooding issue separate from this development. Schleuter stated this was identified in the Master Plan as an issue and that it was not identified for funding by the City at this point. He stated there could be City funding if the area was annexed in the future and that the County did not have a way to collect fees in that basin at this time. Councilmember Tharp asked if the affected properties were in the County. Schleuter replied in the affirmative. Councilmember Bertschy asked if any street improvements were required as part of the development. Jones stated Fossil Creek Parkway just went through a street oversizing upgrade within the last year and that a right hand turn lane onto Fossil Creek from Highway 287 would be required. Councilmember Bertschy asked if there was already an existing left hand turn lane because there was an existing light at the intersection. Bracke replied in the affirmative. Councilmember Roy stated there was a great deal of discussion about lighting at the hearing and asked if there had been any firm agreements relating to that issue. Jones stated one of the conditions placed on the approval was that the applicant would be required to ensure that parking area lights would be extinguished no later than 8:00 p.m. Councilmember Hamrick asked about the hours of operation. Jones stated the approval specified the hours of operation as 8:00 a.m. to 6:00 p.m. Monday-Friday and 8:00 a.m. to 5:00 p.m. on Saturday. He stated it was his understanding that those would be the store hours of operation. Councilmember Kastein made a motion,seconded by Councilmember Tharp,to find that the Hearing Officer did not fail to interpret and apply the relevant provisions of the Land Use Code and to uphold the decision of the Hearing Officer. 395 December 16, 2003 Councilmember Roy stated a statement was made by the Discount Tires representative that there would be no tires outside at this location. He stated there were tires stored outside at the South College location and that he hoped that the tires at the old location could be moved inside. Councilmember Hamrick commented that it did not appear that there would be any extenuating impact from this project on the existing conditions within the County. Councilmember Kastein thanked the appellant for her hard work on stating her case. He stated in this case infrastructure was in place to accommodate this City development. Councilmember Tharp stated general concerns were raised with regard to commercial property abutting existing residential. She stated the property was zoned properly for commercial development and the applicant had a plan to buffer the property. She stated the applicant had made reasonable accommodations and that the Hearing Officer listened to and responded to all of the concerns raised. She stated she shared the concern about the flooding in the area and that it appeared to be a totally separate issue. She stated this development did not change that situation. Mayor Martinez stated he felt that the Hearing Officer did a good job of hearing all of the concerns and issues. The vote on the motion was as follows: Yeas Councilmembers Bertschy, Hamrick, Kastein, Martinez, Roy and Tharp. Nays: None. THE MOTION CARRIED Ordinance No. 178, 2003 Imposing a Moratorium upon the Acceptance of Applications for the Approval of Development Plans and/or the Issuance of Building Permits for Dwellings Constructed on the Rear Portion of Lots Located Within the N-C-L, Neighborhood Conservation Low Density, N-C-M, Neighborhood Conservation Medium Density, and the N-C-B,Neighborhood Conservation Buffer Zone Districts.Adopted on First Reading. The following is staff s memorandum on this item. 396 December 16, 2003 EXECUTIVE SUMMARY This ordinance would impose a moratorium on the acceptance of applications for the approval of development plans and/or issuance ofbuilding permits for "alley houses"or other dwellings on the rear portion of lots located within the Eastside and Westside neighborhoods. Recent development applications for alley houses or other secondary dwelling units within the City's Eastside and Westside neighborhoods have raised citizen and neighborhood concerns about the appropriateness of existing Land Use Code design standards related to such development. Testimony from recent public hearings and neighborhood meetings has highlighted the following perceived problems: • Architecture that is incompatible with the neighborhood, in terms of mass, bulk, scale, height, and character • Increased traffic and speeding on alleys not designed as streets • Additional noise and dust impacts with gravel surfaced alleys • Parking spillover onto adjacent lots and alleys • Loss of privacy in backyards • Increased noise • Destabilization of neighborhoods due to the increased number of rental units and a lack of reinvestment In response to these citizen concerns and direction given by City Council, staff has developed a project to identify and comprehensively address each issue raised. The project may result in amendments to the Land Use Code, codifying certain guidelines identified in the adopted Neighborhood Character Design Guidelines for the East Side and West Side Neighborhoods in Fort Collins, and clarification of the City's alley paving policy. Given the considerable body of work created under the previous effort, staff anticipates that the project could be completed in as a few as 3-4 months. A moratorium on new applications for alley houses will provide the community time to take stock ofthe current situation and moveforward in a collaborative effort between neighborhoods and the development community to arrive at an agreeable solution. BACKGROUND Some of the same issues were raised ten years ago, just two years after the Eastside/Westside Neighborhood Plans were originally adopted and corresponding zoning districts created. At that time, the City responded with an emergency ordinance that resulted in the minimum lot area 397 December 16, 2003 required for an alley house. The intent of that ordinance was to temporarily halt the construction of alley houses. Staffwas also instructed to work with a consultant to prepare design standards and guidelines, reevaluate the lot area/density issue, and arrive at a permanent solution. After an extensive public process, standards and guidelines were presented to City Council for adoption in August 1995. The City Council directed staff to revise the document to simplify and clarify the text. Two ordinances were presented to Council in February 1996 The agenda item summary contained a table that reflected an inventory of all lots in the Eastside/Westside neighborhoods. The purpose of that study was to provide Council with information about the effect that the lot area change would have on the ability to construct alley houses. The study revealed that increasing the minimum lot area requirement to 5,000-sq.ft. would reduce the number of larger lots eligible for potential alley houses by 51.3%. The ordinances contained provisions to change the lot area in the N-C-M and N- C-B zone to 5,000 sq.ft.per principal building, and 6,000 sq.ft. in the N-C-L zone, and to limit the size of an alley house to 800 sq.ft. above grade. The changes were adopted on First Reading, with the condition that additional changes be made prior to Second Reading. At Second Reading, the City Council considered the appropriateness of adding "standards" back into the "guidelines" document, but elected not to include standards in the final document. " City Manager Fischbach introduced the agenda item. Cameron Gloss, Director of Current Planning, stated alley houses were second principal buildings usually built at the rear of a lot and accessed by a public alley. He stated at Council's direction staff had prepared an ordinance placing a temporary moratorium on the construction of these alley houses within the Eastside and Westside neighborhoods. He stated staffs response had been carefully crafted based on issues raised by citizens at recent public hearings, at a City Council sponsored neighborhood meeting,and a site tour. He presented visual information illustrating some of the key issues. He stated there were several City policies supporting the concept of alley houses. He stated alley houses were considered to be a potential form of in-fill development, if carefully sited and constructed,at the time the Eastside and Westside neighborhood plans were adopted. He stated this concept was also embodied in City Plan when it was adopted in 1997. He stated there had been some examples over the last 10 years that did not necessarily work particularly well. He showed an example at 526 South Whitcomb in which the mass and scale of the alley house was substantially larger than the historic older home at the front. He stated there were parking impacts with some alley house development. He stated during the site tour some accessory buildings were seen that did not necessarily fit the character of the neighborhood, such as an example at 614 South Loomis. He stated the ordinance would not place a restriction on accessory buildings, but that staff understood that there might be neighborhood residents at this meeting who wanted to speak to that issue. He stated a restriction could be placed in the ordinance on Second Reading to address the issue of accessory buildings. He stated some of the perceived problems heard at the public meetings and hearings related to several key points: (1)architectural compatibility with the established character of Old Town;(2)additional traffic volume,noise,and dust impacts on alleys and adjacent properties; 398 December 16, 2003 and (3)impacts on the stability of neighborhoods. He stated there were specific parameters for the moratorium. He stated it would only involve three zoning districts in the Eastside/Westside neighborhoods, that it would only relate to principal buildings, that it would run for six months or until the adoption of standards (whichever would occur first), that it would not apply to properties that had a vested property right. He stated from the staff perspective, the six-month period would be adequate for completion of a project to address specific concerns and to translate guidelines into standards. He stated staff had been working on a draft public input process and identifying key stakeholders. Greg Belcher, 718 Mathews Street, spoke in support of a moratorium on alley houses to help preserve the historic nature of Fort Collins. He expressed concerns that alley houses be appropriate in size, scale and architectural compatibility to historic neighborhoods. He stated he had concerns that accessory buildings intended for storage could be used for something else. He stated the neighbors should not be a "policing force" to monitor those kinds of structures and enforce City zoning laws. He stated public notice should be required in cases where buildings appeared to be oversized or contentious. He encouraged Council to incorporate accessory houses in the moratorium to better evaluate the types of structures that would go into historic neighborhoods. Gina Janett,730 West Oak Street,stated that when she was on Council in 1996,the Council worked hard to address issues of compatibility and scale. She stated this was a longstanding problem that kept resurfacing. She stated the issues were size, scale and use and urged the Council to support the moratorium. She stated new subdivisions had copious covenants that would never allow things such as alley houses. She stated Old Town did not have covenants and that the City had a larger role in land use issues for Old Town. Lucille Evans, 714 Mathews Street, stated she was "appalled with the monstrosity" that had been built at 722 Mathews Street. She stated a building intended as a garage had the appearance of an alley house because of its height. She stated Old Town was unique and that alley houses would "create a hodgepodge"that would destroy the unique appearance of Old Town. She stated she never received a notice that the structure would be placed at 722 Mathews Street. She stated one should never destroy in order to build. She asked that the Council adopt a moratorium. Dian Sparling, 324 Jackson Avenue, stated this was the second time she had spoken to the Council about regulations for alley houses and that she participated in a neighborhood meeting sponsored by the Council. She stated the overwhelming majority of participants felt that there needed to be a pause to look at the issue again to get a better handle on the correct building procedures to be followed in the Old Town area. She stated an alley tour was attended by about 15 citizens and Councilmembers. She stated at that time evidence was gathered about the "look and feel' of the encroaching alley house problem. She asked that the City Council take action. 399 December 16, 2003 Leslie Boat, 718 Mathews Street, stated she lived in a historic house built in 1898. She stated a neighbor had begun construction on a 26 x 28 foot detached garage and storage area. She stated this massive building was 22%2 feet high and towered over her yard. She stated she assumed that this would be an alley house and would be limited to 800 square feet but that a second story was added and capped with a soaring roof. She stated she was told that this was not an alley house but a legal, uninhabitable garage with storage space. She stated she was informed that the permit allowed a three-quarter bath,hot water heater,furnace,large windows on all sides,numerous electrical outlets and five overhead lights. She stated she was advised that if she saw anyone living there that she should call and report the neighbor for violating the Code. She stated the building was technically uninhabitable but that someone could live in this space. She stated reliance on neighbors to be watchdogs to monitor the uses of their neighbors property was a"recipe for disastrous neighborhood relations." She stated this building which was eight feet from her property line would probably be used as a dwelling eventually. She urged Council to vote in favor of a moratorium on alley houses and all secondary buildings in Old Town to protect neighborhoods from the blight of disproportionate structures. She stated size limitations should be imposed on all secondary buildings regardless of their proposed use because uses would change. She asked that Council direct staff to check to see that all of the rulings were followed in the permit acquisition and to find out if she had any recourse at all in this matter. Eric Nichols, Fort Collins Board of Realtors, read a prepared statement endorsing those aspects of City Plan that welcomed in-fill development. He stated the association felt that regulatory barriers such as the proposed moratorium were unnecessary and that the current guidelines for alley housing are adequate. He stated the adoption of inflexible standards would discourage and create additional problems for affordable house. He stated the Board of Realtors recognized that there were issues dealing such as parking, architectural compatibility, neighborhood contiguity, and traffic safety issues along alleyways but that there was no demonstrated need for the moratorium. He stated there were processes in place under the current system to address the issues identified in this ordinance and that there had been only three alley houses built in the last two years in the City. He stated the Board of Realtors agreed with and supported actions by the City to encourage alley housing development which promotes neighborhood continuity and neighborhood needs,while discouraging development that detracts from the integrity and cohesiveness of those neighborhoods. He stated the current guidelines relating to alley housing could continue to be a good template for development of alley housing. He stated affordable housing was a clear community priority and that alley housing was one element that could assist this community in achieving affordable housing while enhancing Old Town neighborhoods. Barbara Liebler, 710 Mathews Street, stated she applauded the concept of a moratorium for alley houses but that there were other buildings being built that were a problem because they were too large for their space even though they were not officially housing units. She encouraged the Council to strike the words "secondary residential structures" throughout the ordinance and substitute the 400 December 16, 2003 words "secondary structures" to allow a review of guidelines for size, scale, design, etc. for secondary structures regardless of what their uses were claimed to be. Mark Anderson, 704 Mathews Street, stated as the Code was currently written he would be able to divide his lot three ways and put two four-plex apartments on the back half of his half acre of property. He stated at some point Old Town would be saturated with population and that absentee landlords and developers would be interested in adding units to properties such as his. He stated he was concerned about the bulk of the secondary buildings that were being built. He stated there were subtle design changes that could be made to accommodate some secondary buildings. He recognized the history of growth and adaptation in Old Town and supported ensuring that change was done well. He stated he would like to see the moratorium adopted. Megan Flanagan, 617 West Myrtle Street, supported a moratorium to finalize planning and design standards that will have a long term effect on the City's character. Bob Peterson,builder, stated he had successfully built several alley houses that were applauded by the neighborhoods. He stated he followed the current City guidelines and supported adoption of those guidelines as standards so that they could be enforced. He stated a moratorium was not needed and that it would be an "economically unsound and foolish political move." Michelle Jacobs, Homebuilder's Association of Northern Colorado, stated the association was concerned about the moratorium and its impact on companies that provided shelters for families and contributed to the quality of life in Fort Collins. She stated the association strongly opposed a moratorium on alley houses. She stated guidelines were already in place regarding parking and that the association would welcome architectural standards for residential and commercial alley units. She stated this would bring predictability to the homeowner, the neighbors and the builder. She stated one problem was the limited amount of land for expansion. She stated the City had taken actions in support of in-fill and redevelopment and that alley units were part of that picture. She stated alley houses were one way to combat the affordable housing crisis. She questioned whether there was an emergency requiring the moratorium when only six alley houses had been built or were in the permit stage. She stated Master Plan called for compact development,sense of neighborhood and walkability and that the moratorium would ignore the guidelines given in the Plan. She asked that Council not adopt a moratorium because standards could be created simultaneously with construction. Eric Odell, 617 West Myrtle Street, spoke in favor of a moratorium and turning the guidelines into enforceable standards. He stated the moratorium would be a short term way to address a long term solution. 401 December 16, 2003 Harry Pullman, remodeling contractor, stated a moratorium would not solve the problem of"bad neighbors teaming up with bad contractors and putting out a bad product." He suggested working on the problem instead of imposing a moratorium. Councilmember Tharp asked how the situations with the four-plex and a storage area house happened. Gloss stated with the situation at 722 Mathews that the area above the garage was not considered to be habitable space and that it was therefore not defined as an alley house. He stated staff had worked with the property owner to clarify the situation and that the property owner was pressing forward and was continuing to call this non-habitable space. He stated it was therefore exempt from the design standards that were in place for alley houses. He stated for the situation with the triplex structure at 611 Peterson that if allowed by the zoning district the applicant had the right to go to the Planning and Zoning Board to request approval of a triplex at the back of the lot. He stated in this case the lot was subdivided. Councilmember Kastein stated it appeared that there were issues with guidelines that were not being followed. He asked if some of the work would be to decide which of the guidelines should be turned into standards. Gloss replied in the affirmative. Councilmember Kastein stated the analysis indicated that roughly three to four months of staff time would be required for this work and asked if that would be sufficient. Gloss replied in the affirmative. Councilmember Kastein asked if all of the work would be complete by June 30. Gloss stated staff was confident that the work could be completed before that date. Councilmember Bertschy made a motion,seconded by Councilmember Roy,to adopt Ordinance No. 178,2003 on First Reading,to direct staff to add accessory structures before Second Reading of the Ordinance and to include accessory structures in the moratorium. Councilmember Bertschy explained how this would work. He stated there appeared to be consensus from the citizens and the homebuilders that the guidelines should become standards. He stated one way to do that was to pause and develop the standards. He stated he did not understand why anyone would be opposed to the moratorium because it would protect property owners looking toward development and property owners wishing to influence the type of development that would occur. He stated one of the economic goals for the Old Town neighborhood was to preserve its character. He stated there was a"disconnect'in looking at Old Town as the source of affordable housing. He stated he did not believe that this was the highest and best use of that property. He stated the moratorium was consistent with City Plan and that it would not stop development or in-fill. He stated there was a need for good architectural standards and that those would assist development. He stated this would accomplish the long term objectives, promote City Plan and provide for 402 December 16, 2003 neighborhood compatibility. He stated only three zoning districts would be included in the moratorium. He supported moving ahead. Councilmember Kastein stated there was an issue and that a moratorium would impact people in the industry. He asked for a friendly amendment to the motion to change the moratorium to run until March 31. Councilmember Bertschy questioned whether that time frame was realistic from the staff s point of view. Gloss stated would be an aggressive schedule and that staff was hoping to complete the work by April 1. Councilmember Bertschy asked why the June 30 date was selected. City Attorney Roy stated there was no legal reason. Councilmember Bertschy stated he would accept April 30 for the moratorium period. Councilmember Roy stated work often took longer than anticipated. He stated six months seemed reasonable to allow time for quality work. Councilmember Bertschy asked if the work was accomplished in less time than six months if the moratorium would cease. City Attorney Roy replied in the affirmative. Councilmember Kastein made a motion to amend Section 5 of the Ordinance to set the effective date at April 1, 2004. THE MOTION DIED FOR LACK OF A SECOND Councilmember Tharp stated she would prefer the April 1 date and that she would encourage staff to complete the work as quickly as possible. She stated she did not like the need for a moratorium but that voluntary guidelines had not worked. She expressed a concern that the core of the downtown would not maintain its value unless this action was taken. Councilmember Roy thanked staff and citizens for their work on this issue. He stated six months was a reasonable time to develop standards that would protect Old Town. He stated the guidelines were ineffective as a tool to protect the architectural diversity of Old Town. He stated this ordinance would not affect the core part of downtown. He stated this would allow homes to exist in a cohesive manner and that there would be quality standards. He stated he would like to see the staff work completed as quickly as possible. Councilmember Kastein stated there were issues relating to scale and compatibility. He stated City Plan pushed in-fill and density. He stated staff had indicated that it would be possible to accomplish 403 December 16, 2003 the staff work in three to four months and that he did not agree with allowing six months to do the work. He stated the moratorium was not needed and that it would impact businesses. Mayor Martinez stated he would not support the motion because there had been a chance for a compromise to accomplish the work and end the moratorium sooner. He stated he did not see a reason to have a moratorium while standards were being developed. He stated standards could be developed without violating property rights. The vote on the main motion was as follows: Yeas: Councilmembers Bertschy, Hamrick,Roy and Tharp. Nays: Councilmembers Kastein and Martinez. THE MOTION CARRIED City Manager Fischbach stated the agenda item on the manufacturer's use tax could be heard on January 6, 2004 because there was no urgency. He stated the other two items could be introduced. He noted that he intended to begin recruiting for the new staff economic health coordinator regardless of the action taken since the appointment would not be made until after January 6. Councilmember Tharp made a motion,seconded by Councilmember Kastein,to extend the meeting to H:00 P.M. Mayor Martinez stated he would vote against the motion because there would not be adequate time to the public to express their views. The vote on the motion was as follows: Yeas: Councilmembers Bertschy,Kastein,Roy and Tharp. Nays: Councilmembers Hamrick and Martinez. THE MOTION CARRIED Resolution 2003-150 Relating to the Adoption of an Action Plan Pertaining to the Citv's Economic Health, Discussed. The following is staff s memorandum on this item. FINANCIAL IMPACT This Resolution is intended to positively impact the Fort Collins economy and related tax base of the City of Fort Collins. The Resolution also authorizes the City Manager to create a new staff" position to coordinate the City's efforts to promote the economic health of the community. 404 December 16, 2003 EXECUTIVE SUMMARY Resolution 2003-150 is a follow-up to the November 25, 2003, study session where City Council requested that staff bringforth several action items pertaining to the City's economic health. The action items are as follows: • The reaffirmation ofthe City ofFort Collins economicpolicy adoptedon February 16, 1999. • Appointment ofCouncilmembers Tharp and Weitkunat to serve as the City Council liaisons to an Economic Vitality and Substainability Group. • Establishment of the Economic Vitality and Sustainability Group. • Development of an Economic Vitality and Sustainability Plan for the City and the establishment ofguidelines for funding an Economic Vitality and Community Sustainability Fund no later than June 30, 2004. • The creation of the position of economic advisor within the City. (The major duties of the position are outlined in Exhibit B). • Directing the City Manager to begin a dialogue with the business community regarding a possible amendment to Chapter25 ofthe City Code which would reduce the amount retained by retailers on sales tax collected by them on behalf of the City. " City Manager Fischbach introduced the agenda item. He stated the Resolution was intended to positively impact the Fort Collins economy and related tax base. He stated the Resolution would authorize the City Manager to create a new staff position to coordinate the City's efforts to promote the economic health of the community. He spoke regarding the proposed action plan regarding the economy. City Attorney Roy stated it was not required that the agenda item be completed by 11:00 p.m. He stated if the item was not completed by 11:00 p.m.that it would become the first agenda item on the next discussion agenda at the next regular meeting. David May, Fort Collins Area Chamber of Commerce, spoke in support of the Resolution. He encouraged a focus on the economy strategy and"niche"of the community. He suggested changing the job description for the advisory board that would be created. Bill Carson,Hi-Tech Network, supported the Resolution. He asked for serious consideration of the problem of people who had lost their primary jobs in the last few years. He stated this problem would continue due to off-shore outsourcing and that active efforts would be required to replace these jobs. He asked that the Council to consider that the nature of these problems were not growth related but were`recovery"problems. 405 December 16, 2003 J.J. Johnston, Northern Colorado Economic Development Corporation, spoke in support of the Resolution. He stated more than 4,000 people were officially unemployed in Fort Collins and that thousands more were underemployed. Doug Johnson,leader ofNorthem Colorado Net,an organization for job seekers,presented statistics regarding unemployment and spoke regarding the activities of his organization. He stated only about 38%of the members who had found jobs were able to find a job in the City. Mayor Martinez stated the uncompleted agenda items would be continued until the next meeting. City Manager Fischbach stated he would begin recruiting for the new staff position and would begin the outreach process with the business community regarding the vendor's fee. Adjournment The meeting adjourned at 11:00 p.m. Mayor ATTEST: City Clerk 406