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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/05/2005 - CONSIDERATION AND APPROVAL OF THE REGULAR COUNCIL ITEM NUMBER: 6 AGENDA ITEM SUMMARY DATE: July5, 2005 FORT COLLINS CITY COUNCIL STAFF: Wanda Krajicek SUBJECT Consideration and approval of the regular Council meeting minutes of May 17, 2005 and June 7, 2005. May 17, 2005 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council-Manager Form of Government Regular Meeting- 6:00 p.m. A regular meeting of the Council of the City of Fort Collins was held on Tuesday, May 17, 2005, 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: Hutchinson, Kastein, Manvel, Ohlson, Roy, and Weitkunat. Councilmembers Absent: Brown Staff Members Present: Atteberry, Krajicek, Roy. Citizen Participation Steve Musiel,Kel-Mar strip business owner at 5848 South College Avenue,opposed the southwest enclave annexation. Courtney Speshky, incoming ASCSU Director of Community Affairs, thanked the Mayor for attending the community picnic on May 7. She stated she was looking forward to continuing the dialogue with the City on issues such as the "three unrelated" ordinance. Brian Chaco, Colorado Lifestyle Furniture owner, opposed the southwest enclave annexation and stated the businesses in the area were in opposition to the annexation due to increased fees and utility costs. Greg Ost, small business owner in the Kel-Mar business district, stated affected residents and business owners in the proposed southwest enclave annexation were concerned about the purpose, process and likely outcomes. Tony Mann, 5201 Greenview Drive, small business owner, spoke against the southwest enclave annexation. Lynn Colter,Applewood Estates resident,opposed the proposed southwest enclave annexation and the costs to the residents and the City. She noted that thousands of signatures had been gathered on petitions opposing the annexation. Brian Schumm, 5948 Colby Street, spoke in favor of the annexation of the Kel-Mar strip and stated the businesses in that area were currently benefitting from City services. He noted that he had attempted to work through a number of issues with the City and the County for the last few years. He stated the City had "control' in the enclave due to the Growth Management Area, the intergovernmental agreement with the County, and previous Council direction regarding land use within that zone. He asked that the Council direct the City Manager and staff to follow the Structure 88 May 17, 2005 Plan and to process rezonings within the City rather than allow them to be processed by the County within the Growth Management Area. Neil Hurst, President of the Fossil Creek Homeowners Association, stated he represented 240 residents and opposed the southwest enclave annexation. He stated there should be a public vote on the annexation, which would represent"taxation without representation." Charlene Hayes, Sidekick Flea Market owner, opposed the southwest enclave annexation. John Cockson, 5108 Plateau Court, spoke against the southwest enclave annexation and stated the annexation would be costly to the residents of the annexation area and the City. Al Baccili, 520 Galaxy Court, opposed the costly southwest enclave annexation. Mark Brophy, 1109 West Harmony Road, spoke against the"tyrannical" forced southwest enclave annexation. He urged Councilmembers to indicate their views during Citizen Participation Follow- up about the comments made during Citizen Participation. Lee Fairman, 5823 Auburn Drive, spoke regarding the purchase of the Abraxis Building for $750,000. Mayor Hutchinson stated this was an agenda item and that there would be an opportunity for Citizen Participation at that time if the item was withdrawn from the Consent Calendar. Gail Zirtzlaff, 2048 Manchester Drive, expressed concerns regarding enforcement of the "three unrelated" ordinance. Citizen Participation Follow-up Mayor Hutchinson thanked those who spoke during Citizen Participation. He stated Citizen Participation Follow-up was an opportunity for Council to give feedback rather than to debate the issues in a town meeting format. Councilmember Ohlson commented that the open space in the southwest part of the City was not purchased with the intent of creating an annexation enclave. He stated those open space purchases were based on plans and five overwhelming citizen votes. He stated the enclave was created upon the annexation of those open spaces and that he did not believe that the annexation of the open space was necessary or appropriate. Councilmember Kastein agreed with Councilmember Ohlson's comments about the purchase of the open space and that he believed that it was appropriate for the City to annex that open space because it was City-owned property. He stated he was now evaluating the need to annex the southwest enclave annexation area. He thanked the speaker who spoke about the"three unrelated"ordinance. 89 May 17, 2005 Agenda Review City Manager Atteberry stated there was a revision to item #20 Resolution 2005-054 Making an Appointment to the Downtown Development Authority to insert the name"George Brelig"and that there was a revision to item #21 Resolution 2005-045 Making an Appointment to the Fort Collins Housing Authority Board of Commissioners to insert the name "Karen Weitkunat." Mark Brophy, 1109 West Harmony Road, withdrew item #8 Items Relating to the Purchase and Lease of Property Located as 212 LaPorte Avenue from the Consent Calendar. Bev Weiss withdrew item #14 First Reading of Ordinance No. 057, 2005, Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands Necessary for the Construction of Public Improvements in Connection with the Dry Creek Drainage Improvements Project-East Vine Diversion Channel from the Consent Calendar. Councilmember Roy withdrew item#15 First Reading of Ordinance No. 058, 2005,Authorizing an Easement for a Pedestrian Bridge for Opera Gardens Lofts from the Consent Calendar. CONSENT CALENDAR 6. Consideration and approval of the regular Council meeting minutes of April 19, 2005 and the adjourned Council meeting minutes of April 26, 2005. 7. Second Reading of Ordinance No. 049,2005,Appropriating Unanticipated Revenue in the General Fund to the Fort Collins Housing Authority to Fund Affordable Housing and Related Activities. The Fort Collins Housing Authority("Authority")paid the City of Fort Collins $12,033 as a 2004 payment for public services and facilities. The Authority annually requests that the City refund the Payment in Lieu of Taxes(PILOT)to fund sorely needed affordable housing related activities and to attend to the low-income housing needs of Fort Collins residents. Resolution 1992-093 reinstated the requirement that the Authority make annual PILOT payments to the City. The City may spend the PILOT revenues as it deems appropriate in accordance with law, including remitting the funds to the Authority if the Council determines that such remittal serves a valid public purpose. The Council has remitted the PILOT payment to the Authority annually since 1992. Ordinance No. 049, 2005, was unanimously adopted on First Reading on May 3, 2005. 8. Items Relating to the Purchase and Lease of Property Located as 212 LaPorte Avenue A. Second Reading of Ordinance No.050,2005,Appropriating Unanticipated Revenue in the Capital Projects Fund- Building Community Choices -New Main Library/ Acquisition and Design Capital Project and Authorizing the Transfer Between Funds of Existing Revenue to be used to Purchase Property Located at 212 LaPorte Avenue. 90 May 17, 2005 B. Resolution 2005-049 Authorizing the City Manager to Execute a Lease Agreement for 212 Laporte Avenue,Fort Collins,Colorado to Abraxis Art Glass&Doors, Inc. The City of Fort Collins developed the Downtown Civic Center Master Plan in 1996. At that time,the Plan called for Block 32 to have municipal government offices and a library. The Plan includes a pedestrian corridor through the middle of the block. The City has purchased most of the Block, but there are currently two properties still under individual ownership. The City constructed its new office building on the east half of Block 32 and the Plan contemplates the construction of the new Library on the westerly side of Block 32. This Library is part of the Building Community Choices. The owner of 212 West LaPorte Avenue is moving his business and has approached the City to purchase the property. This is a good opportunity to purchase this site for the City's future use on the Block. With this property, the City will own the entire Block except for the southwesterly corner. Buying today with a willing seller will save the City money in the future and, until the Block is developed, the City will rent the property to generate income. 9. Second Reading of Ordinance No. 051,2005,Amendin¢ Section 2380) of the Fort Collins Traffic Code Pertaining to License Plates. At the time of the adoption of the Traffic Code,it was the understanding of staff and Council that the Traffic Code would most likely be subject to future amendments, not only for the purpose of clarification and correction of errors,but also for the purpose of ensuring that the Traffic .Code remains consistent with State traffic laws. This amendment will require motorcycles, trailers, and other vehicles to attach license plates to the rear of the vehicle. This change is necessary for the section to be consistent with state law. Staff will submit the changes to Colorado Department of Transportation (CDOT) for approval pursuant to statute. As this amendment is made to conform to state law, it is anticipated that CDOT will approve the amendment. Ordinance No. 051, 2005, was unanimously adopted on First Reading on May 3, 2005. 10. First Readine of Ordinance No.053,2005,Appropriating Prior Year Reserves in the General Fund for Cultural Development and Programming Activities and Tourism Capital. This Ordinance appropriates lodging tax revenues that were in excess of 2004 budgeted lodging tax receipts to Cultural Development and Programming ("CDP"), Visitor Events, and Tourism Capital fund accounts. Lodging tax revenue for 2004 was estimated to be $573,600 and the 2005 budget appropriated an equal amount. However, actual receipts totaled $601,143 for 2004 and the difference of$27,543 has not been appropriated. This Ordinance also appropriates the CDP and Visitor Events funds in the General Fund reserves for lodging taxes to be used to support events that provide a public benefit to the 91 May 17, 2005 Fort Collins Community and promote the utilization of public accommodations within the city. The City's Cultural Resources Board reviews applications for these funds and makes recommendations to the City Council. 11, First Reading of Ordinance No.054,2005 Authorizing the Transfer of Appropriations from the Street Oversizing Fund to the Capital Project Fund - Timberline Road Improvements Project to Be Used for Completion of Engineering Design and Establishing Appropriations for Railroad Crossing Improvements at the Project. Developers have contributed $100,000 to the City to begin the engineering design of Timberline Road from Prospect to Drake. There are additional engineering design costs with the project to be funded by Street Oversizing. This item appropriates $184,000 into the project budget for the completion of the final engineering design. In addition, railroad crossing permits with Great Western Railroad for widening the track on both Timberline Road and Prospect Road need to be submitted one year in advance of the construction in order to schedule the railroad crews. The permit requires that funds for the crossing material and labor be budgeted and available in the project. $280,000 will be appropriated and earmarked for the railroad crossing agreement in order to submit the required permits and work orders. The total transfer amount is $464,000 and is available in existing Street Oversizing Fund appropriations. 12. First Reading of Ordinance No. 055,2005,Authorizins the Purchasing Agent to Enter into an Agreement for the Financing by Lease-Purchase of Vehicles and Equil2ment. This Ordinance authorizes the Purchasing Agent to enter into a lease-purchase financing agreement with Koch Financial Corporation at 4.96 percent interest rate. The agreement is for an original term from the execution date of the agreement to the end of the current fiscal year. The agreement provides for renewable one-year terms thereafter,to a total term of five (5) years, subject to annual appropriation of funds needed for lease payments. The total lease terms, including the original and all renewal terms, will not exceed the useful life of the property. This lease-purchase financing is consistent with the financial policies of the City of Fort Collins. All equipment shall be purchased following the City's purchasing ordinances and procedures to ensure that the City realizes all cost savings. The vehicles and equipment financed under the agreement will comply with applicable City policies,and will be in accordance with the goal of optimizing City resources without impacting service to the community. 13. First Reading of Ordinance No. 056, 2005, Amending the Zoning Map of the City of Fort Collins by Changing the Zoning Classification for that Certain Property Known as the Schrader Rezonine. This is a request to rezone a parcel owned by Schrader Oil Company and the abutting Burlington Northern Santa Fe right-of-way,presently zoned T (Transition),to RDR(River 92 May 17, 2005 Downtown Redevelopment). The subject site consists of 5 t acres located south of Willow Street and east of College Avenue. 14. First Reading of Ordinance No.057,2005,Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands Necessary for the Construction of Public Improvements in Connection with the Dry Creek Drainage Improvements Project - East Vine Diversion Channel. The design portion of the Dry Creek Drainage Improvements Project ("Project") began in 2003. The construction of the Project began in April 2005 with completion scheduled for 2006. The total project involves a combination of sub-projects in the upper, middle and lower basins of Dry Creek with the goal of reducing the likelihood of flooding in Fort Collins and Larimer County. The approval of this ordinance does not automatically result in the filing of a petition in eminent domain; it simply allows staff to use the process if good faith negotiations fail to result in an agreement between the City and affected property owners. Staff is hopeful that all acquisitions will be accomplished by agreement. 15. First Reading of Ordinance No.058,2005,Authorizing an Easement for a Pedestrian Bridge for Opera Gardens Lofts. The development of Opera Garden Lofts was approved as a minor amendment to the Opera Galleria, contingent upon the developer being able to provide off-street parking to the users of the new mixed-use building and also contingent upon negotiating permission from the City for a bridge between the Opera Galleria and the Civic Center Parking Structure ("CCPS"). The developer cannot commence construction until this easement is granted. The developer has indicated that this bridge is important to make the Opera Garden Lofts project more attractive to lenders and potential purchasers of units. The Opera Gardens Lofts project will add two floors to the Opera Galleria. The easement request is to construct an above-grade pedestrian bridge from the 4th floor of the CCPS to one of the new floors of the Opera Galleria. This pedestrian bridge will not replace the existing bridge,which is a public bridge. The new bridge will be a private bridge to be used by users of the mixed-use structure. 16. Resolution 2005-050 Authorizing a Revocable Permit to Coburn Development, Inc., for a Period of Up to Two Years on Property Owned by the City for the Puroose of Access and Performing Due Diligence Activities. The City of Fort Collins conducted a Request for Proposal ("RFP")process that requested proposals for the development of a portion of Block 33 in accordance with adopted City plans. The property included in this RFP was 75%of the block, excluding the Car Barn and associated parking. Through this process, the City selected Coburn's firm to complete the requested work in the RFP. At that time, the City and Coburn entered into an Exclusive 93 May 17, 2005 Negotiating Agreement. The goal for this project is for Coburn to eventually acquire the property from the City and develop it in accordance with the approved plans. Coburn has done a preliminary design for the property and is proceeding into conceptual review. In order for Coburn to continue its work, the firm needs to have permission from the City to access the property and to perform due diligence work on the property including surveying and geotechnical drilling. They will also need on-going access to the site as the project develops. Issuing this Permit allows Coburn to continue the work as required by the Exclusive Negotiating Agreement for the property on Block 33. This Permit is not intended to include construction activities. 17. Resolution 2005-051 Authorizing the City to Enter into a Contract with Public Strategies Group, Inc., for the Purchase of Services to Develop the 2006 and 2007 Budget Using the Budgeting for Outcomes Format, as an Exception to the Competitive Process. Public Strategies Group,Inc.,has developed a unique process for budgeting—Budgeting for Outcomes. Because the City is facing a structural change in its revenues, this approach is being used to match citizen expectations with available resources. 18. Resolution 2005-052 Adopting the Recommendations of the Cultural Resources Board Regarding Fort Fund Disbursements. The guidelines for the Cultural Development and Programming and Tourism Programming accounts (Fort Fund) provide a three-tiered funding system. Organizations may apply for grants from these accounts to fund community events. Tier#1 was established as an annual programming fund for organizations whose primary purpose is to present three or more public events annually. These groups may apply for funding from Tier#1 each April. Tier #2 allows organizations that are not eligible for Tier #1 support to apply for funding of events that are not fund-raising in nature and do not generate more than$5,000 in proceeds after expenses. Tier#3 allows organizations that are not eligible for Tier#1 support to apply for funding of events that generate more than $5,000 in proceeds after expenses and are fund-raising in nature. Applications for support from Tier 42 and Tier#3 are accepted each January and June. 19. Resolution 2005-053 Authorizingthe he City Manager to Enter into an Intergovernmental Agreement with the Board of The Great Outdoors Colorado Trust Fund and an Intergovernmental Agreement With Three Partner Entities for the Laramie Foothills: Mountains to Plains Grant Project. On December 1, 2004, Great Outdoors Colorado (GOCO) awarded the City, Latimer County, Legacy Land Trust, and The Nature Conservancy an $11.6 million grant for the Laramie Foothills Mountains-to-Plains Project. A portion of this grant in the amount of $976,000 will be allocated directly to the City of Fort Collins to help support the project. A Grant Agreement between the partner entities is required to set out the respective obligations of the parties and to enable the City to receive the grant award. A Project 94 May 17, 2005 Agreement also is necessary to designate a "grant agent' for the local partners. Larimer County will serve as the grant agent. 20. Resolution 2005-054 Making an Appointment to the Downtown Development AuthoritK A vacancy currently exists on the Downtown Development Authority due to the resignation of Mary Brayton. Resolution 2005-054 making an appointment to the Downtown Development Authority has been prepared to insert a name for the Council appointment to replace Mary Brayton. 21. Resolution 2005-045 Making an Appointment to the Fort Collins Housing Authority Board of Commissioners. A vacancy currently exists on the Housing Authority due to the resignation of Marty Tharp. Resolution 2005-045 making an appointment to the Housing Authority has been prepared to insert a name for the Council appointment to replace Marty Tharp. 22. Routine Easements. A. Easement for construction and maintenance of public utilities from Archer Homes, Inc.,to relocate existing electric system to accommodate additional units,located at 400 Jackson. Monetary consideration: $10. B. Easement for construction and maintenance of public utilities from Pheasant Run Investments, to place existing overhead electric system underground at 1229 East Mulberry. Monetary consideration: $360. C. Easement for construction and maintenance of public utilities from Jeffrey Jay and Carol Shuster Johnson, located at 132 Yale to install electric oval vault to place existing overhead electric system underground. Monetary consideration: $200. D. Easement for construction and maintenance of public utilities from South Link Lane Condominium Association, located at 401 Link Lane to place existing overhead electric system underground. Monetary consideration: $1920. ***END CONSENT*** Ordinances on Second Reading were read by title by City Clerk Krajicek. 7. Second Reading of Ordinance No. 049, 2005, Appropriating Unanticipated Revenue in the General Fund to the Fort Collins Housing Authority to Fund Affordable Housing and Related Activities. 8A. Second Reading of Ordinance No. 050, 2005, Appropriating Unanticipated Revenue in the Capital Projects Fund-Building Community Choices-New Main Library/Acquisition and 95 May 17, 2005 Design Capital Project and Authorizing the Transfer Between Funds of Existing Revenue to be used to Purchase Property Located at 212 LaPorte Avenue. 9. Second Reading of Ordinance No. 051,2005,Amending Section 238(1) of the Fort Collins Traffic Code Pertaining to License Plates. Ordinances on First Reading were read by title by City Clerk Krajicek. 10. First Reading of Ordinance No.053,2005,Appropriating Prior Year Reserves in the General Fund for Cultural Development and Programming Activities and Tourism Capital. 11. First Reading of Ordinance No.054,2005,Authorizing the Transfer of Appropriations from the Street Oversizing Fund to the Capital Project Fund - Timberline Road Improvements Project to Be Used for Completion of Engineering Design and Establishing Appropriations for Railroad Crossing Improvements at the Project. 12. First Reading of Ordinance No. 055, 2005,Authorizing the Purchasing Agent to Enter into an Agreement for the Financing by Lease-Purchase of Vehicles and Equipment. 13. First Reading of Ordinance No. 056, 2005, Amending the Zoning Map of the City of Fort Collins by Changing the Zoning Classification for that Certain Property Known as the Schrader Rezoning. 14. First Reading of Ordinance No.057,2005,Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands Necessary for the Construction of Public Improvements in Connection with the Dry Creek Drainage Improvements Project - East Vine Diversion Channel. 15. First Reading of Ordinance No.058,2005,Authorizing an Easement for a Pedestrian Bridge for Opera Gardens Lofts. 26C. First Reading of Ordinance No. 059, 2005, Appropriating Unanticipated Revenue and Authorizing the Transfer of Appropriations Between Program Years in the Community Development Block Grant Fund. 26D. First Reading of Ordinance No. 060, 2005, Appropriating Unanticipated Revenue in the HOME Investment Partnerships Fund. Councilmember Kastein made a motion,seconded by Councilmember Ohlson,to adopt and approve all items not withdrawn from the Consent Calendar. The vote on the motion was as follows: Yeas: Councilmembers Hutchinson, Kastein, Manvel, Ohlson, Roy and Weitkunat. Nays: None. THE MOTION CARRIED. 96 May 17, 2005 Consent Calendar Follow-up Councilmember Ohlson spoke regarding item #12 First Reading of Ordinance No. 055, 2005, Authorizing the Purchasing Agent to Enter into an Agreementfor the Financing by Lease-Purchase of Vehicles and Equipment and requested additional information prior to Second Reading. City Manager Atteberry stated the City owned approximately 2,000 pieces of equipment and vehicles, including vehicles and small equipment. Councilmember Reports Councilmember Roy thanked those who participated in the successful Old Town Marathon and spoke regarding the revenue generated for the City by such events. Councilmember Ohlson thanked staff for their help in orienting the new Councilmembers during the transition period. Councilmember Kastein reported on the discussions of the North Front Range Transportation and Air Quality Planning Council relating to a presentation regarding the RTA formed in the Pikes Peak area. Items Related to the Completion of the Spring Cycle of the Competitive Process for Allocating City Financial Resources to Affordable Housing and Community Development Projects/Programs and Community Development Activities Utilizing Community Development Block Grant (CDBG) and HOME Investment Partnership Funds, Adopted The following is staff s memorandum on this item. "EXECUTIVE SUMMARY A. Resolution 2005-055 Approving the Fiscal Year 2005 Community Development Block Grant Programs and Projects and the Use of Unprogrammed FY 04 CDBG Entitlement Grant Funds, Reprogrammed FY 03 HOME Grant Funds, Unprogrammed FY 04 HOME Grant Funds, and the HOME FY 04-05 Community Housing Development Organization Set Aside Funds for the City of Fort Collins. B. Resolution 2005-056 Approving the Fiscal Year 2005 Home Investment Partnerships Program for the City of Fort Collins. C. First Reading of Ordinance No. 059, 2005, Appropriating Unanticipated Revenue and Authorizing the Transfer of Appropriations Between Program Years in the Community Development Block Grant Fund. D. First Reading of Ordinance No. 060, 2005, Appropriating Unanticipated Revenue in the HOME Investment Partnerships Fund. 97 May 17, 2005 The Community Development Block Grant (CDBG)Program and HOME Investment Partnership Program provide Federal funds from the Department of Housing and Urban Development(HUD) to the City of Fort Collins which can be allocated to housing and community development related programs andprojects, thereby, reducing the demand on the City's General Fund Budget to address such needs. The City Council is being asked to consider the adoption of two resolutions related to fording under the CDBG and HOME Programs. The first resolution (Resolution 2005-055) establishes which programs and projects will receive funding with CDBG funds for the FY 2005 Program year, which starts on October 1, 2005, and the Use of Unprogrammed FY 04 CDBG Entitlement Grant Funds, Reprogrammed FY 03 HOME Grant Funds, Unprogrammed FY 04 HOME Grant Funds, and the HOME FY 04-05 Community Housing Development Organization Set Aside Funds. The CDBG Commission presents a list of recommendations as to which programs and projects should receivefunding. The second resolution(Resolution 2005-056)establishes the major funding categories within the HOME Program for the FY2005 Program year, which also starts on October 1, 2005. Specific projects for the use ofHOMEfunds will be determined in November as a result of the fall funding cycle of the competitive process for the allocation of the City's financial resources to affordable housing programs/projects and community development activities. The following are the allocations recommended by the Community Development Block Grant Commission to the Fort Collins City Council: PLANNING AND ADMINISTRATION Maximum 20% of CDBG Grant Funds - $230,817 Amount of Request Recommendation I Applicant—Project $193,046 $193,046 City o FortCollins - CDBGAdministration $20,000 $0 North Fort Collins Business Association — Urban Renewal Action Plan AFFORDABLE HOUSING PROJECTS Amount o Re uest Recommendation Applicant—Project $200,000 $200,000 City of Fort Collins Advance Planning-Home Bu er Assistance $300,000 $300,000 Fort Collins Housing Corporation - Village on Plum Preservation Phase H $152,735 $152,735 Fort Collins Housing Corporation - Village on Bryan Avenue Senior Apartments, Rehabilitation $240,000 $51,000 Habitat for Humanity- Vacant Property Acquisition $251,611 $251,611 Neighbor to Neighbor-Rehabilitation of A ordable Housin $500,000 $0 CARE Housing-Affordable Housing Land Collaborative $90,000 $0 Collins Colorado Housing, LLC- "Access Sumac" Acquisition and Rehabilitation All affordable housing project funding allocations are a Due-on-sale Loan with a 5%fee 98 May 17, 2005 PUBLIC FACILITYAPPLICATIONS Amount of Request Recommendation Applicant—Project $47,376 $0 City of Fort Collins Engineering-Daisy Street Improvements $97,572 $0 City of Fort Collins Engineering- Scott Avenue Improvements $211,500 $0 City of Fort Collins Engineering-North Mason Road Improvements $84,600 $0 City of Fort Collins Engineering-Alpine Street Improvement $97,010 $0 City of Fort Collins Engineering-Pinon Street Improvements $12,000 $12,000 City of Fort Collins Facilities - Crossroads Sa ehouse Rehabilitation $7,000 $7,000 1 Northern ColoradoAIDSProject - Facility Purchase All public facility funding allocations are a Due-on-sale Loan with a 5%fee PUBLIC SERVICE APPLICATIONS Amount o Re uest Recommendation Applicant—Project $20,000 $0 Project Sel-Su icienc $17,500 $15,000 Springfield Court Early Learning Center—Sliding Fee Scholarshi Program $12,464 $0 Court Appointed Special Advocates $5,200 $0 Ensi ht Skills Center—Home Safety $6,669 $6,669 Elderhaus—Eagle's Club $20,000 $0 Win shadow - Outreach Program $10,000 $8,500 Education and Life Training Center-Employment Skills Training $10,000 $10,000 Respite Care- Sliding Fee Scholarship Program $9,490 $0 Meals on Wheels—Meal Subsidy Project $19,685 $19,685 B.A.S.E. Cam - Sliding Fee Scholarship Program $14,000 $12,250 Sunshine School- Sliding Fee Tuition Scholarship $15,000 $3,599 Rehabilitation and Visiting Nurses Association — Home Health Care Scholarship Fund $4,000 $0 FirstCall- 2-1-1 Enhanced Information and Referral $30,000 $25,000 Neighbor to Neighbor— Comprehensive Housing Counseling $14,000 $4,640 Northern Colorado AIDS Project- Case Management and Homeless Prevention $25,500 $23,500 United Day Care -Sliding Scale Tuition Scholarship $11,750 $7,750 The Family Center/La Familia El Nidito Child Care Center 99 May 17, 2005 $30,000 $26,000 Catholic Charities Northern—Shelter and Supportive Services or the Homeless $15,000 $0 Women's Resource Center-Dental Care Assistance and Health Care Assistance $10,520 $10,520 Disabled Resource Services -Access to Independence Program All public services funding allocations are a Grant. Total amount of funding requested=$2,805,228 A summary of the Commission's CDBG funding recommendations by category is as follows: Recommended Funding % of Total Category $ 193,046 14.4% Planning and Administration (Maximum $230,817 based on 20%of CDBG Entitlement Grant 955,346 71.3% Affordable Housing 19,000 1.4% Public Facilities 173,113 12.9% Public Services (Maximum $173,113 based on 15% o CDBG Entitlement Grant $1 340 505 100.0% 1 Total CARRYOVER FUNDING or the Fall Cycle of the Competitive Process Amount Source $121,436 Unprogrammed FY 2005 CDBG Entitlement Grant 11,831 Unprogrammed FY2004 CDBG Entitlement Grant 46,265 Reprogrammed FY2003 HOME Grant 159,663 Unprogrammed FY 2004 HOME Grant 23,330 Unprogrammed FY 2004-05 HOME CHDO Set Aside $362 525 1 Total Unprogrammed fording is the amount ofgrantfunds available from a fiscal year federal grant that has yet to be allocated to a specific project. Reprogrammedfunding is the amount ofgrant funds that were previously allocated to a project(s) but have been returned to the City due to failure to complete the project(s). Presented below is a series of tables summarizing the CDBG Commission's recommendations by funding source. Unprogrammed FY 04 CDBG Entitlement Grant $12,000 1 City o Fort Collins Facilities - Crossroads Sa ehouse Rehabilitation 7,000 Northern Colorado AIDS Project - Facility Purchase $19,000 61.6%Allocated 11,831 38.4% Unprogrammed $38 831 Total 100 May 17, 2005 FY 05 CDBG Entitlement Grant $193,046 City of Fort Collins - CDBG Administration 200,000 City o Fort Collins Advance Planning-Home Buyer Assistance 300,000 FCHC— Village on Plum Preservation Phase II 166,491 Neighbor to Neighbor-Rehabilitation o A ordable Housing $859,537 87.6% Allocated 121,436 12.4% Unprogrammed $980 973 1 Total FY 05 CDBG Entitlement Grant—Public Services ($173,117 maximum) $ 17,500 1 Springfield Court Early Learning Center—Sliding Fee Scholarship Program 6,669 Elderhaus—Eagle's Club 8,500 Education and Lie Training Center-Employment Skills Training 10,000 Respite Care - Sliding Fee Scholarship Program 19,685 B.A.S.E. Cam - Sliding Fee Scholarship Program 12,250 Sunshine School- Sliding Fee Tuition Scholarship 3,599 Rehabilitation/Visiting Nurses Association—Home Health Care Scholarship Fund 25,000 Neighbor to Neighbor— Comprehensive Housing Counseling 4,640 Northern Colorado AIDS Project- Case Management/Homeless Prevention 23,500 United Day Care - Sliding Scale Tuition Scholarship 7,750 The Family Center/La Familia El Nidito Child Care Center 26,000 Catholic Charities Northern —Shelter/Supportive Services or the Homeless 10,520 Disabled Resource Services -Access to Independence Program 173$ 113 1 100.0%Allocated Reprogrammed FY 03 HOME Grant $152,735 1 FCHC- Village on Bryan Avenue Senior Apartments 51,000 Habitat or Humanity- Vacant Property Acquisition $203,735 81.5%Allocated 46,265 18.5% Unprogrammed $250 000 Total Unprogrammed FY 04 HOME Grant $ 0 1 0.0%Allocated $159,663 1 100.0% Unprogrammed $159 663 1 Total HOME FY 04-05 Co munity Housing Development Organization Set Aside $ 85,120 Neighbor to Neighbor-Rehabilitation o A ordable Housing $ 85,120 78.5%Allocated $ 23,330 21.5% Unprogrammed $108 450 Total 101 May 17, 2005 BACKGROUND The Community Development Block Grant(CDBG)Program and HOME Investment Partnership Program provide Federal funds from the Department of Housing and Urban Development (HUD) to the City of Fort Collins which can be allocated to housing and community development related programs and projects, thereby, reducing the demand on the City's General Fund Budget to address such needs. The City Council is being asked to consider the adoption of two resolutions related to funding under the CDBG and HOME Programs. The first resolution (Resolution 2005-055) establishes which programs and projects will receive funding with CDBG funds for the FY 2005 Program year, which starts on October 1, 2005, and also how some unprogrammed and reprogrammed funds from both the CDBG and HOMEPrograms will be utilized during the coming year. The CDBG Commission presents a list of recommendations as to which programs and projects should receivefunding. The second resolution(Resolution 2005-056)establishes the major funding categories within the HOME Program for the FY2005 Program year. Specif c projects for the use of HOME funds will be determined in November as a result of the fall funding cycle of the competitive process for the allocation of the City's financial resources to affordable housing programs/projects and community development activities. The resolution establishing which programs and projects will receive CDBG funds represents the culmination of the spring cycle of the competitive process approved in January 2000 by the Council for the allocation of the City's financial resources to affordable housing programs/projects and community development activities. Additional background material about the competitive process is included in Attachment 1. Since early January of this year, the CDBG Commission and members of the City staffs Affordable Housing Team have conducted public hearings to assess community development and housing needs in Fort Collins, conducted technical assistance training workshops for applicants, and solicited applications for CDBG funding. The City's Affordable Housing Board reviewed the written applications for affordable housing projects and forwarded a priority ranking of proposals, as well as comments and questions, to the CDBG Commission. See Attachment 2 for a copy of the Board's materials sent to the CDBG Commission. The CDBG Commission, in addition to reviewing the written applications, personally interviewed each applicant, analyzed the applications, and formulated a list of recommendations to the City Council as to which programs and projects should receive funding. The competitive process established refined criteria to determine priorities between proposals received by the City. The ranking criteria are divided into five major categories. Each category is given a total number of points that has been weighed according to its importance with respect to local and federal priorities. The five major categories are: L Impact/Benefit 2. Need/Priority 3. Feasibility 4. Leveraging Resources 5. Capacity and History 102 May 17, 2005 The Impact/Benefit criteria provide greater rewards to proposals that target lower income groups. The Need/Priority criteria help assure the proposal meets adopted City goals and priorities. The Feasibility criteria reward projects for timelines and documented additional funding. The Leveraging Resources criteria reward proposals which will return funds to the City(loans)and for their ability to leverage other resources. And, the Capacity and History criteria help gage an applicant's ability to do the project and reward applicants that have completed successful projects in the past(have good track records). The ranking sheet used to assist the CDBG Commission and the Affordable Housing Board is presented in Attachment 1. The Commission also considered the funding guidelines contained in the updated Priority Affordable Housing Needs and Strategies report adopted by the Council on July 20, 2004. These guidelines include: • CDBG funds should generally be allocated as follows: 65%for Housing projects; 15%for Public Services; and the balance for Administration and Public facilities; • funds allocated to housing should generally be divided as follows: 70%for rental projects and 30%for homeownership opportunities; and • the average subsidy should be$7,400 per unit, with relatively more funding to projects producing housing for lower income families. The CDBG Program is an ongoing grant administration program funded by the Department of Housing and Urban Development(HUD). The City of Fort Collins has received CDBG Program funds since 1975. In 1975 and FY 1976-1977 the City received HUD CDBG discretionary grants. Since FY1977-1978, the City has been an Entitlement Grant recipient ofCDBGfunds, meaning the City is guaranteed a certain level offunding each year. The level offending is dependent on the total amount offunds allocated to the program by Congress and on a formula developed by HUD, which includes data on total population, minorities as a percentage of population, income levels, housing stock conditions, etc. Additional background information on the City's Community Development Block Grant Program is presented in Attachment 3. AVAILABLE FUNDS The amount ofthe City's CDBG Entitlement Grantfor FY2005-2006 is$1,154,08 7. The Entitlement Grant will be combined with $30,831 of Unprogrammed FY2004 CDBG funds and$518,113 of HOME Program funds to create a total of$1,703,030 offunds available for programs and projects during the next CDBG Program year. The following summarizes the amount and sources of available funds: 103 May 17, 2005 AMOUNT SOURCE $1,154,086 FY 2005 CDBG Entitlement Grant 30,831 CDBG FY 2004 Unprogrammed Funds 250,000 HOME FY 2003 Reprogrammed Funds 159,663 HOME FY 2004 Reprogrammed Funds 108,450 HOME FY 2004-2005 CHDO Funds $1 730 030 1 Total Unprogrammedfunding is the amount ofgrantfunds available from a fiscal yearfederalgrant that has yet to be allocated to a specific project. Reprogrammed funding is the amount ofgrant funds that were previously allocated to a project(s) but have been returned to the City due to failure to complete the project(s). Below is a summary ofrecent CDBGfunding levels allocatedfrom HUD to the City ofFort Collins: Entitlement Reprogrammed Program Total Year Grant Funds Income Funds 1995 $1,231,000 $ 0 $ 40,000 $1,271,000 1996 $1,202,000 $ 0 $ 40,000 $1,242,000 1997 $1,188,000 $181,273 $ 50,000 $1,419,273 1998 $1,162,000 $216,875 $ 50,000 $1,428,875 1999 $1,169,000 $ 0 $ 50,000 $1,219,000 2000 $1,175,000 $ 34,358 $ 93,544 $1,302,902 2001 $1,227,000 $403,151 $ 89,651 $1,719,802 2002 $1,209,000 $767,262 $ 87,712 $2,063,974 2003 $1,243,000 $ 0 $182,686 $1,425,686 2004 $1 219 000 $220 400 $ 0 $1 439 400 SELECTIONPROCESS The selection process for the City's FY2005-2006 CDBG Program began on January 6, 2005, when the CDBG Commission held a public hearing to obtain citizen input on community development and affordable housing needs. The CDBG Program office placed legal advertisements in local and regional newspapers starting in January to solicit requests for CDBG funded programs and projects forFY2005-2006. The application deadline was Thursday February 24. At the close ofthe deadline the City received 36 applications requesting a total of approximately $2.8 million. Copies ofall applications wereforwarded through the City Manager's office to the City Council on March 3 and placed in the Council Office for review. Also on March 3, copies of the housing applications were distributed to the Affordable Housing Board and copies of all applications were distributed to the CDBG Commission. On Thursday, March 24 the Affordable Housing Board conducted a special meeting to review the housing proposals and prepare a priority listing of applications to the CDBG Commission. On Tuesday March 29, Wednesday March 30, and Thursday March 31, the Commission met to hear 104 May 17, 2005 presentations and ask clarification questions from each applicant. The Commission then met on Thursday April 7 for the purpose ofpreparing a recommendation to the City Council as to which programs and projects should be f ended for the FY 2005-2006 program year. At this meeting the Commission reviewed the written applications, the applicant's verbal presentation, the information provided during the question and answer session, and reviewed the performance of agencies who received FY 2004-2005 CDBG funds or funding in other previous years. The Commission then worked on the formulation of their list of recommendations. CDBG COMMISSION'S LIST OF RECOMMENDATIONS HUD CDBG regulations limit the amount of available CDBG funds which can be allocated to various generic categories. Funds for Planning and Administrative purposes are limited to 20% of the total of the Entitlement Grant and any Program Income. This means the 20%limitation for Planning and Administrative purposes is$230,817. CDBG f mds for Public Services are limited to 15% of the total of the Entitlement Grant and Program Income, making the amount $173,113. The Commission, thus, not only had to decide which applicants presented programs and projects which best fit into the City's CDBG Program, but also had to insure funding allocations were kept within HUD regulations and follow the funding guidelines contained in the Priority Affordable Housing Needs and Strategies report. Listed below is a summary of each applicant's initial requestfor funding and the Commission's list of recommendations. PLANNING AND ADMINISTRATION AD-2 G&of Fort Collins- CDBG Administration Amount of Request: $193,046 Recommendation: $193,046 Proposal covers the administrative costs of the FY 2005-2006 CDBG Program Administration including salary, benefits and operating expenses for 2.4 staff positions. PA-1 North Fort Collins Business Association — Urban Renewal Action Plan Amount of Request: $20,000 Recommendation: $0 This proposal will cover costs to help implement the North College Urban Renewal Plan beyond the City's efforts to conduct a market study for the area and update the North College Corridor Plan. 105 May 17, 2005 AFFORDABLE HOUSING PROJECTS HO-I City of Fort Collins Advance Planning-Home Buyer Assistance Amount of Request: $200,000 Due-on-sale loan with 5%fee Recommendation: $200,000 Due-on-sale loan with 5%fee This program is administered by the Advance Planning Department and provides zero percent interest loans to eligible first-time homebuyers. The assistance covers down payment and closing costs to a maximum of$9,576 for households at 51% to 80% of Area Median Income (AMI) and $19,152 for buyers at or below 50%ofAM1 who are receiving section 8 assistance or Habitat loans. Approximately 40 households will be assisted in the next year with this portion of the funding. Matching HOME funds will be requested in the fall cycle. HO-2 Fort Collins Housing Corporation - Village on Plum (aka Sleepy Willow) Preservation Phase H Amount of Request: $300,000 Due-on-sale loan with 5%fee Recommendation: $300,000 Due-on-sale loan with 5%fee The Village on Plum is located at Taft Hill Road and West Plum Street. The Fort Collins Housing Corporation is requesting funding for various upgrades to improve marketability and retention, based upon the recommendations of the private consultant that conducted a study last fall. Improvements include: replacement of aluminum windows and window coverings, electrical replacements/fixtures, boilers, air conditioners, site-work and parking. HO-3 Fort Collins Housing Corporation - Village on Bryan Avenue Senior Apartments, Rehabilitation Amount of Request: $152,735 Due-on-sale loan with 5%fee Recommendation: $152,735 Due-on-sale loan with 5%fee The Village on Bryan Avenue, Senior Apartments are located on the corner of Bryan Avenue and Mountain Avenue. The Fort Collins Housing Corporation is requestingfundingfor immediate needs of the property including: air conditioning, accessible tub surrounds, security, wheel chair accessible automatic door, and concrete repair. HO-4 Habitat for Humanity- Vacant Property Acquisition Amount of Request: $240,000 Due-on-sale loan with 5%fee Recommendation: $51,000 Due-on-sale loan with 5%fee Habitat for Humanity is requesting money to purchase four lots at $60,000 per lot. 106 May 17, 2005 HO-5 Neighbor to Neighbor-Rehabilitation ofA fordable Housing Amount of Request: $251,611 Due-on-sale loan with 5%fee Recommendation: $251,611 Due-on-sale loan with 5%fee Neighbor to Neighbor (N2N) is requesting funds to improve and preserve existing affordable housing. N2N recently completed a Capital Needs Assessment of their properties, and this application addresses their priority needs for nine of their properties. HO-6 CARE Housing-Affordable Housing Land Collaborative Amount of Request: $500,000 Due-on-sale loan with 5%fee Recommendation: $0 CARE Housing proposes to acquire 35 acres of land at Rigden Farm, to be used in a collaborative development with the Fort Collins Housing Authority, and Fort Collins HabitatforHumanity. The collaborative partnership would result in the development ofat least 109 multi family rental units and 56single-family homes. HO-7 Collins Colorado Housing. LLC- "Access Sumac"Acquisition and Rehabilitation Amount of Request: $90,000 Due-on-sale loan with 5%fee Recommendation: $0 Collins Colorado Housing is requestingfunding to acquire,preserve as affordable,and rehabilitate for accessibility, an existing 4 plex located at 3303 Sumac Street. $50,000 of the request is for acquisition and$40,000 for rehabilitation of two units. These units will provide housing for those who are disabled and want to remain in their homes. Residents would also be connected with local resources through direct referral. PUBLIC FA CILITY APPLICA TIONS PF-I QE of Fort Collins Engineering-Daisy Street Improvements Amount of Request: $47,376 Grant Recommendation: $0 Engineering is requestingfunding to upgrade the existing roadwayfrom a sidewalk-less,gravel and dirt roadway to a paved roadway, including: an asphalt surfaced road, concrete sidewalks, and a curb and gutter drainage system. PF-1 QE of Fort Collins Engineering-Scott Avenue Improvements Amount of Request: $97,572Grant Recommendation: $0 107 May 17, 2005 Engineering is requestingfunding to upgrade the existing roadway from a sidewalk-less,gravel and dirt roadway to a paved roadway, including: an asphalt surfaced road, concrete sidewalks, and a curb and gutter drainage system. PF-3 City of Fort Collins Engineering-North Mason Road Improvements Amount of Request: $211,500 Grant Recommendation: $0 Engineering is requestingfunding to upgrade the existing roadway from a sidewalk-less,gravel and dirt roadway to a paved roadway, including: an asphalt surfaced road, concrete sidewalks, and a curb and gutter drainage system. PF-4 City of Fort Collins Engineering-Alpine Street Improvements Amount of Request: $84,600 Grant Recommendation: $0 Engineering is requestingfunding to upgrade the existing roadway from a sidewalk-less,gravel and dirt roadway to a paved roadway, including: an asphalt surfaced road, concrete sidewalks, and a curb and gutter drainage system. PF-5 CV of Fort Collins Engineering-Pinon Street Improvements Amount of Request: $97,010 Grant Recommendation: $0 Engineering is requestingfunding to upgrade the existing roadway from a sidewalk-less,gravel and dirt roadway to a paved roadway, including: an asphalt surfaced road, concrete sidewalks, and a curb and gutter drainage system. PF-6 City of Fort Collins Facilities- Crossroads Safehouse Rehabilitation Amount of Request: $12,000 Due-on-sale loan with 5%fee Recommendation: $12,000 Due-on-sale loan with 5%fee The City offort Collins, Facilities developed the Crossroads Safehouse Master Plan in September of 2004. This application requests funding to address priorities of the plan including: a new furnace, new sidewalk, and insulation improvements to increase energy efficiency and improve the comfort of the residents. 108 May 17, 2005 PF-7 Northern Colorado AIDS Proiect-Facility Purchase Amount of Request: $7,000Due-on-sale loan with 5%fee Recommendation: $7,OOODue-on-sale loan with 5%fee Northern Colorado AIDS Project is seeking funding to complete the acquisition of their facility at 400 Remington Street. PUBLIC SERVICE APPLICATIONS PS-I Proiect Self-Sufficiency Amount Requested: $20,OOOGrant Recommendation: $0 The mission of Project Self-Sufficiency is to assist single parents in their efforts to build and maintain strong, healthy families, achieve economic independence, and become free from community and government assistance. CDBG funds of$20,000 will be used to pay salaries of advisors who work with Fort Collins participants. PS-2 Springrfleld Court Early Learning Center—Sliding Fee Scholarship Program Amount Requested: $17,500Grant Recommendation: $15,000 Grant Offering full-day childcare services,Springfield Court Early Learning Center scholarship program provides sliding scale day care to benefit low-income families. CDBG funding of$17,500 will provide sliding scale day care for 32 children, at a requested subsidy of$547 per child. PS-3 Court Appointed Special Advocates Amount Requested: $12,464 Grant Recommendation: $0 CASA recruits and trains community volunteers to work as Court Appointed Special Advocates to represent children who are in the court system due to abuse and/or neglect. CDBG funding of $12,464 will provide partial salaries for the Case Supervisors and the Volunteer Coordinator. PS-4 Ensight Skills Center—Home Safety Amount Requested: $5,200 Grant Recommendation: $0 Ensight provides visual rehabilitation to people with diseases of the eye. CDBG funding of$5,200 will provide the partial salary for one of two part-time Occupational Therapists to do home visits. 109 May 17, 2005 PS-5 Elderhaus—Eagle's Club Amount Requested: $6,669 Grant Recommendation: $6,669 Grant Eagle's Club is a men's group designed to meet the biopsychosocial needs of the members and to encourage participation so that their caregivers can receive some needed time away. CDBG funds of$6,669 would be used to pay the partial salary of the Program Director. PS-6 Wingshadow- Outreach Program Amount Requested: $20,OOOGrant Recommendation: $0 The Outreach Program includes six services: Street Intervention, Wolf Paws, G.E.D. classes, Community Service Projects and the Challenge Course. CDBG funds of$20,000 would be used to pay the entire salary of an outreach assistant. PS-7 Education and Life Training Center-Employment Skills Training Amount Requested: $10,000 Grant Recommendation: $8,500 Grant ELTC equips clients, many of whom are often low-and moderate-income,for immediate entry into the job market through a variety of skills training. CDBG funds of$10,000 would be used to provide salaries and benefits of teachers who provide computer courses, medical office courses and literacy courses. PS-8 Respite Care-Sliding Fee Scholarship Program Amount Requested: $10,000 Grant Recommendation: $10,000 Grant Respite Care offers day and overnight care as a service for families with developmentally disabled children up to age 21. CDBG funds of$10,000 could be used to provide sliding fee scholarships to low-income families. The subsidy requested is $500 per child for specialized care. PS-9 Meals on Wheels—Meal Subsidy Project Amount Requested: $9,490 Grant Recommendation: $0 Meals on Wheels provides meals and social interaction to homebound clients in Fort Collins five days a week. CDBG funds of$9,490 would be used to completely subsidize a year's worth of meals to 10 extremely-low and low-income persons. 110 May 17, 2005 PS-10 B.A.S.E. Camp-Sliding Fee Scholarship Program Amount Requested: $19,685Grant Recommendation: $19,685 Grant BASE Camp provides before and after school day care for 1800 elementary-aged children at 25 school sites. CDBG funds of$19,685 would be used to support sliding fee scholarships for low- income families. The requested subsidy is $197 per child,for children receiving part-time care. PS-11 Sunshine School-Sliding Fee Tuition Scholarship Amount Requested: $14,000 Grant Recommendation: $12,250 Grant Sliding Fee Tuition Scholarship provides qualityfull-day childcare services to low-income families of children 2-112 to 6 years of age. CDBG funds of$14,000 would be used to support sliding fee scholarships for 16low-income children. The requested subsidy is $875 per child. PS-12 Rehabilitation and Visiting Nurses Association—Home Health Care Scholarship Fund Amount Requested: $15,000 Grant Recommendation: $3,599 Grant RVNA provides home care services, skilled and unskilled, as well as acute and long-term care. CDBG funds of$15,000 would provide services to 25 frail, elderly and/or disabled who have minimal or no access to healthcare needs. The requested subsidy per person served is $600. PS-13 FirstCall-2-1-1 Enhanced Information and Referral Amount Requested: $4,000 Grant Recommendation: $0 2-1-1 provides information about services that are available and makes appropriate referrals to the programs which will best serve the caller's needs. CDBG funds of$4,000 will be used to support the staff salary of one referral specialist. PS-14 Neighbor to Neighbor— Comprehensive Housing Counseling Amount Requested: $30,000 Grant Recommendation: $25,000 Grant Housing Counseling consists of Emergency Rent Assistance Counseling, Pre-rental Counseling, Landlord/Tenant Counseling, Pre purchase Counseling/Homebuyer Training, Mortgage Default Counseling and Reverse Mortgage Counseling. CDBG funds of$30,000 would be used to support 111 May 17, 2005 the staff salaries of direct-service employees. The requested subsidy is $9 per person served,for the variety of services provided. PS-15 Northern Colorado AIDS Project- Case Management and Homeless Prevention Amount Requested: $14,000 Grant Recommendation: $4,640 Grant The Case Management and Homeless Prevention Program helpfamilies and individuals coping with HIV/AIDS retain their stability and health as their ability to be financially independent diminishes. CDBG funds of$14,000 will provide partial funding for two case managers, and a special fund to provide short-term housing assistance,prescription assistance and utility assistance to keep clients housed and in stable living situations. PS-16 United Day Care-Sliding Scale Tuition Scholarship Amount Requested: $25,500 Grant Recommendation: $23,500 Grant United Day Care provides full-day early child care and education programs. CDBG funds of $25,500 would be used to subsidize the difference between the parent fee and the actual cost of care for 47 low-income children. The requested subsidy per child is $543. PS-17 The Family Center/La Familia El Nidito Child Care Center Amount Requested: $11,750 Grant Recommendation: $7,750 Grant The Family Center provides bilingual early childhood development care as well as other educational programs to provide a full-range ofservices for the child and his family. CDBG funds of$11,750 would be used to support the staff salaries of three teachers to help retain a stable staffing environment. The requested subsidy translates to $181 per person served. PS-18 Catholic Charities Northern —Shelter and Supportive Services for the Homeless Amount Requested: $30,000Grant Recommendation: $26,000 Grant The Mission provides overnight shelter to homeless individuals and families. CDBG funds of $30,000 would be used to support salaries to staff The Mission. The requested subsidy translates to $33 per person served. 112 May 17, 2005 PS-19 Women's Resource Center-Dental Care Assistance and Health Care Assistance Amount Requested: $15,000Grant Recommendation: $0 Dental Care and Health Care assist low-income women with their dental health needs and information on HIV/AIDS prevention. CDBG funds of$15,000 would provide support for staff salaries. PS-20 Disabled Resource Services-Access to Independence Program Amount Requested: $10,520Grant Recommendation: $10,520 Grant The DRS Independent Living Center provides short and long-term help to low-income disabled. CDBGfunds of$10,520 would be used to support staffsalaries. Total amount of funding requested= $2,805,228 A summary ofthe Commission's CDBGfunding recommendations by category for the total amount of funds available is as follows: Recommended Funding % of Total Category $ 193,046 14.4% Planning and Administration (Maximum $230,817 based on 20%of CDBG Entitlement Grant 955,346 71.3% Affordable Housin 19,000 1.4% Public Facilities 173,113 12.9% Public Services (Maximum $173,113 based on 15% of CDBG Entitlement Grant $I 340 505 1 100.0% 1 Total CARRYOVER FUNDING or the Fall Cycle of the Competitive Process Amount Source $121,436 Unprogrammed FY2005 CDBG Entitlement Grant 11,831 Unprogrammed FY 2004 CDBG Entitlement Grant 46,265 Reprogrammed FY2003 HOME Grant 159,663 Unprogrammed FY 2004 HOME Grant 23,330 Unprogrammed FY 2004-05 HOME CHDO Set Aside $362 525 1 Total The total amount of CDBG funding requests considered by the CDBG Commission was approximately$2.8 million, however, only $1.7 million of CDBG and HOME funds are available. With the amount of total requests far exceeding available funding, obviously not all applications could be funded. Due to HUD funding limitations, some Public Service applications received no 113 May 17, 2005 funding or less funding than requested in order to keep the generic category within program maximums. The CDBG Commission has recommended full fording for eleven (11) proposals. In the Commission's opinion, these applications recommended for full funding best fit CDBG Program national objectives, the selection criteria, and the finding guidelines. The CDBG Commission has recommended partial fundingfor ten(10)proposals. Proposals, which did not receive full funding, were deemed of a lower priority and, in some cases, a lack of funds, program category limitations (especially in the Public Services category), or funding guidelines prohibited their fill funding. The Commission has recommended no funding for fifteen (15)proposals. The Commission's reasons for either full funding, partial funding, or no funding are presented in Attachment 4. A comparison of the Commission's funding recommendations according to the priority ranking of affordable housing proposals developed by the Affordable Housing Board is presented below. The table lists the Board's ranking of affordable housing proposals and presents each proposal's request for funding and the funding recommendation by the Commission. Priority Applicant Funding Funding Ranking Project Request Recommendation 1 City of Fort Collins $200,000 $200,000 Home Buyer Assistance Program 2 Ft. Collins Housing Corporation Bryan $152,735 $152,735 Avenue Senior Apartments, Rehabilitation 3 Ft. Collins Housing Corporation $300,000 $300,000 Village on Plum Preservation Phase II 4 CARE Housing $500,000 $0 Affordable Housing Land Collaborative 5 Neighbor-to-Neighbor $251,611 $251,611 Rehabilitation ofAffordable Housing 6 Collins Colorado Housing $90,000 $0 "Access Sumac"Acquisition and Rehabilitation 7 Habitatfor Humanity $240,000 $51,000 Vacant Property Acquisition Again, the Commission's reasonsfor eitherfullfunding,partial funding, or no funding are presented in Attachment 4. " 114 May 17, 2005 City Manager Atteberry introduced the agenda item and stated staff and CDBG Chair Bob Browning were available to answer questions. Ken Waido,Chief Planner,presented background information regarding the agenda item. He noted that the Council had conducted a study session on this matter. He stated the funds being allocated came from two sources — the Community Development Block Grant program and the HOME program. He stated the City received 36 proposals requesting over$2.8 million and that there was just over$1.7 million available to allocate. He stated some proposals could not be funded and that some proposals could not be fully funded. He stated the CDBG Commission was making recommendations for funding after extensive review of the proposals, interviews and deliberations regarding the merits of the proposals. He stated the Commission was recommending the allocation of$1.3 million,with over 71%going toward affordable housing proposals. He stated$173,113 was recommended for allocation in the public services area and that some funding was recommended for public facilities and program administration. He stated 80% of the funding was recommended for allocation to programs and projects. He stated the Commission was also recommending that $362,000 be carried over to the fall cycle to be combined with other monies that would become available for new proposals. Mayor Hutchinson stated audience participants would each have three minutes to speak. Sandra Collogi, Director of Community Outreach for Crossroads Safehouse, stated the $12,000 recommended for Crossroads Safehouse facility master plan upgrades was critical funding. Mark Brophy, 1109 West Harmony Road,asked how much would be paid by the federal government and how much would be paid by the City. Nancy Jackson,Disabled Resource Services Director,thanked the City for the full funding received by the agency. Erin Fugler, Fort Collins Program Manager for Neighbor-to-Neighbor, thanked the City for the funding received by the program. Linda Preston, Base Camp Executive Director, expressed appreciation for CDBG funding for the program. Julia Crommer, Neighbor-to-Neighbor Asset Manager, thanked the City for the CDBG funding received by the program. Ann Porter, United Day Care Center Executive Director, thanked the Council for CDBG funding support for the program. Councilmember Roy asked staff to answer Mr. Brophy's question. Waido stated all of the funds being allocated were federal funds from the Department of Housing and Urban Development through the CDBG and HOME Investment programs. 115 May 17, 2005 Councilmember Weitkunat made a motion, seconded by Councilmember Manvel, to adopt Resolution 2005-055, Resolution 2005-056, Ordinance No. 059, 2005 on First Reading and Ordinance No. 060, 2005 on First Reading. Councilmember Weitkunat expressed appreciation for the work of the CDBG Commission. She stated she had concerns about administrative dollars and the North College project. She asked staff and the Commission to consider the work session discussion during the fall cycle. Councilmember Roy stated the Council had received quality background information on this agenda item and that there had been a work session discussion. He stated this program served"core needs" of the community. Councilmember Manvel stated this was "vital funding" and that there were many worthwhile projects that could not be funded. He stated the CDBG Commission had a difficult job in developing a recommendation. The vote on the motion was as follows: Yeas: Councilmembers Hutchinson, Kastein, Manvel, Ohlson, Roy and Weitkunat. Nays: None. THE MOTION CARRIED. Resolution 2005-057, Approving Certain Key Outcomes for the Budgeting for Outcomes Budget Preparation Process, Adopted The following is staffs memorandum on this item. "EXECUTIVE SUMMARY After years of using a base plus incremental budget approach to the City's service and financial planning, the existing economic realities present an opportunity to move to an innovative and more responsive budget process—Budgeting for Outcomes. As policy makers, City Council has a key role in the development and adoption of the City's service and financial plan. In past years, the Council's policy agenda has been indirectly linked to preparation of the biennial budget. Budgeting for Outcomes offers afresh approach to developing the budget more directly linked to Council policies and based on results. City Council strongly endorsed this approach and its role in the process. One ofthe initial steps in Budgetingfor Outcomes is to identify key results or outcomes upon which the budget is to beprepared. Taking into account data from the community feedbackfrom citizens to Council members and survey data—the City Council, at its May 3 work session, identified seven results or outcomes on which the 2006-2007 biennial budget will focus. These include: 116 May 17, 2005 Improve Economic Health: Fort Collins produces quality jobs, is economically diverse and builds on our core community strengths such as higher education, downtown, natural environment, and arts and culture. Improve Environmental Health: Fort Collins creates a clean and sustainable environment. Improve Neighborhood Quality:Fort Collins improves the safety, livability, choices and affordability of neighborhoods. Safer Community: People in Fort Collins are safer at home, work, and play. Improve Cultural, Recreational, and Educational Opportunities: Fort Collins provides quality cultural, recreational, open space/natural areas, and educational opportunities to enrich lives. Improve Transportation:Fort Collins improves the safety and ease oftraveling to, from, and throughout the city. A High Performing Government: Fort Collins is a model for an entrepreneurial, high performing City government These outcomes or results form the foundation of the development of the 2006-2007 biennial budget and the City Manager's recommended budget that will be presented to City Council in September 2005. Additionally, the Council intends to use these key outcomes in the development of its 2005- 2007 Policy Agenda. " City Manager Atteberry stated this was an important agenda item and would formalize direction given at previous meetings by the City Council. He strongly recommended that the Council approve the Resolution. Diane Jones, Deputy City Manager, stated the Resolution would outline the foundation for Budgeting for Outcomes. She stated this was an effort to identify the"key results"that mattered to citizens of the community: (1) to improve the economic health of Fort Collins; (2) to improve environmental health; (3)to improve neighborhood quality; (4)to ensure a safer community; (5)to improve the cultural,recreational and educational opportunities; (6)to improve transportation; and (7) to be a high performing government. She stated this would be the foundation for the budget process and for some of the policy work that would be done by the Council over the next few years. She stated dollars would be allocated among the seven result areas and that the City was reviewing the factors (activities, services) that would produce those results. She stated based on the framework, the staff would prepare "offers" or "packages" of services and programs that would relate to producing those results. She stated there would be a process of ranking and selecting the offers for development of the recommended budget to be submitted to the City Council in September. 117 May 17, 2005 Mark Brophy, 1109 West Harmony Road,stated the City should not be"entrepreneurial"and should be the"referee"between competing entrepreneurs. He stated there needed to be enough government spending to ensure a safer community but that too much spending would make people "afraid" of the government. Councilmember Kastein asked when the Council will set the policy agenda. City Manager Atteberry stated had not yet been determined. He stated there would be a connection between the policy agenda process and the Budgeting for Outcomes process. He stated staff could make recommendations on the policy agenda process and that the Council would determine the process. He stated the two processes could be overlapping or separate. He suggested that the Council determine its preference and stated a detailed policy agenda discussion by Council would improve the quality of the process. Mayor Hutchinson stated the seven key results were the foundation and that adoption of the Resolution would give the staff the basis for further work. He suggested that the Leadership Team put together a proposed schedule for Council's discussion by e-mail. Councilmember Kastein stated it was important to have a policy agenda process in place that the Council could agree on. He stated he believed that the policy agenda needed to be in place early in the Budgeting for Outcomes process. Mayor Hutchinson stated the Leadership Team would put together a proposed schedule for Council's discussion. Councilmember Ohlson asked if the wording in the first six key outcomes was the exact language arrived at during the work session. City Manager Atteberry replied in the affirmative. Councilmember Ohlson asked about the seventh key outcome relating to "high performing government"and suggested that the language be"high performing City government." He asked for an explanation of how staff viewed"entrepreneurial high performing City government"and stated he felt that it was important that everyone understand what that meant. City Manager Atteberry stated the dictionary definition of"entrepreneurial"related to capitalistic ways and profit centers. He stated was not the"spirit" in which this outcome had been discussed. He stated he viewed an "entrepreneurial high performing City government"as one that was innovative and creative, made up of initiators,proactive in bringing forth new policy recommendations,problem solving oriented, and energetic. He stated the concept related to the energy level and spirit of the workforce. Councilmember Manvel stated he hoped that"high performing"would also include "efficient and economical." City Manager Atteberry stated those concepts were embedded in the overall concept of"high performing." He stated this would become apparent in the requests for results, the three indicators,the results maps and the causal factors. He stated"best practices"did not always mean the most expensive and"glamorous." He stated"efficient"was implicit within the concept of"high performing." 118 May 17, 2005 Councilmember Manvel stated he believed that "entrepreneurial' spoke to doing things in new, creative ways to save money i.e.finding ways for people to do business with the City on the Internet. Councilmember Kastein made a motion, seconded by Councilmember Weitkunat, to adopt Resolution 2005-057. Councilmember Kastein stated the definition of"high performing government' must be refined during development of the policy agenda. He stated this could mean adding dimensions such as "efficient,cost effective and proactive"and specifying what those terms meant. He stated the policy agenda should provide more direction for staff and should assign priorities. Councilmember Roy asked staff to outline the time line of events in the budget process. City Manager Atteberry stated he must deliver a recommended budget to the City Council by the first Tuesday in September. He stated staff would be working with the Council in the interim. He stated a work session was scheduled for June 9 for Council to review the work done by staff teams on the Request for Results. He stated staff teams were working to prepare "offers" for evaluation by various results teams that would be working on funding recommendations. He stated this would be an open and collaborative staff process. Councilmember Roy stated he wanted to make the citizens aware of the new Budgeting for Outcomes process and to make sure that the citizens had opportunities to provide feedback. He asked if there was a way to allow such feedback via the City website. City Manager Atteberry stated this had not been done but would be easy to accomplish. Mayor Hutchinson asked that the policy plan process and budget milestones be shown together on the information to be sent to the Council. The vote on the motion was as follows: Yeas: Councilmembers Hutchinson, Kastein, Manvel, Ohlson, Roy and Weitkunat. Nays: None. THE MOTION CARRIED. Items Relating to the Purchase and Lease of Property Located at 212 LaPorte Avenue,Adopted The following is staff s memorandum on this item. "FINANCIAL IMPACT Ten months ofrental payment($30,000)will be paid to the City of Fort Collins at the time of closing and will be used as part of our purchase price of the property. Rent collected after the tenth month will result in unanticipated revenue to Operation Services. The tenant will pay all expenses for maintenance, utilities,janitorial and taxes. 119 May 17, 2005 EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 050, 2005, Appropriating Unanticipated Revenue in the Capital Projects Fund-Building Community Choices-New Main Library/Acquisition and Design Capital Project and Authorizing the Transfer Between Funds of Existing Revenue to be used to Purchase Property Located at 212 LaPorte Avenue. B. Resolution 2005-049 Authorizing the City Manager to Execute a Lease Agreement for 212 Laporte Avenue, Fort Collins, Colorado to Abraxis Art Glass &Doors, Inc. The City ofForl Collins developed the Downtown Civic Center Master Plan in 1996. At that time, the Plan called for Block 32 to have municipal government offices and a library. The Plan includes a pedestrian corridor through the middle of the block. The City has purchased most of the Block, but there are currently two properties still under individual ownership. The City constructed its new office building on the east half ofBlock 32 and the Plan contemplates the construction of the new Library on the westerly side of Block 32. This Library is part of the Building Community Choices. During the design phase of the office building at 215 North Mason, staff attempted to acquire the property 212 West LaPorte Avenue. The owner did not want to sell. The decision was made to design and construct the building without impacting the property at 212 West LaPorte Avenue. The existing building impacted the continued flow of the pedestrian corridor and there have been parking issues since the City's occupation of the office building. The owner of 212 West LaPorte Avenue is moving his business and has approached the City to purchase the property. This is a good opportunity to purchase this site for the City's future use on the Block. With this property, the City will own the entire Block exceptfor the southwesterly corner. Buying today with a willing seller will save the City money in the future and, until the Block is developed, the City will rent the property to generate income. The purchase price is $625,000. The seller will be leasing the premises after closing until his building is built. At the time of closing, the purchase price will be credited by $30,000 for ten month's rent of the property. The balance due after this credit is $595,000, of which $250,000 is available in the capital Projects fund - Building Community Choices - New Main Library/Acquisition and Design capital project. In addition,staffis recommending that Council use existing appropriations in the Capital Projects Fund - Major Building Maintenance, totaling $345,000,for the balance of the purchase price. Ordinance No. 050, 2005, which approves funding for the acquisition of this property, was unanimously adopted on First Reading on May 3, 2005. Until the time this property is needed for construction of the Library, the City will rent the property. The first tenant will be the existing occupant of the building, Abraxis Art Glass &Doors, Inc. The owner of this company is constructing a new building at another location and until the construction is complete, the company will rent this space from the City at the rate of$3,000 per month. At the time of closing, the tenant will pay to the City $30,000, representing 10 month's rental payment. 120 May 17, 2005 The term of this Lease is for one year, with an option to renew for a second year. The lease also allows the tenant to terminate the lease without penalty upon thirty (30) days notice to the City. During the term of this lease, the tenant will be responsible for the following costs: building maintenance, taxes,janitorial and all utilities. " City Manager Atteberry stated staff could present a brief summary and respond to questions. Mayor Hutchinson requested a brief staff presentation. Helen Matson, Real Estate Manager, presented background information relating to the proposed purchase of the building at 212 LaPorte Avenue for future library use for$625,000. She stated the building would be rented back to the seller for 10 months and that $595,000 would be paid by the City at closing. Ken Marmon,Operations Services Director,stated the plan was to keep the purchase price down by continuing to rent the property until it was needed by the City in the future. Mark Brophy, 1109 West Harmony Road, stated the City had become a"land baron" and that the City should not be in the real estate business. He stated there was land around the current building for expansion. He stated moving the library to the new location would impact property values around the current location. He stated library patrons at a downtown location would have to park in a parking garage. He stated$595,000 would be spent to provide a library that would give"worse service"than the existing library. He stated the budget should be cut and that this would be a good place to do that. Councilmember Weitkunat asked for clarification that the purchase of land would be done through Building Community Choices money and that the voters approved the purchase of land for a library. Matson replied in the affirmative. Councilmember Weitkunat stated this piece of land was not available when the original land purchase was completed. Councilmember Ohlson asked for a one-page memo regarding the restrictions on the existing library site regarding how the land could be used. City Manager Atteberry stated construction on current main library site was limited. Councilmember Manvel stated it was his understanding that there were two ballot issues on which ballots were case — one to build a new library on that site and the second to leave that block as mostly open space. He stated both issues passed and that the current building footprint was the maximum that could be allowed. He stated that at this time the maximum square footage was already taken up by the current library. Councilmember Kastein asked how much of the $625,000 was Building Community Choices money. Matson stated there was a balance of$345,000 in Building Community Choices money and that the rest would be taken from facilities maintenance and would be repaid at a later time. 121 May 17, 2005 Councilmember Ohlson asked if taking money from facilities maintenance would delay any building repair. Marmon stated the money was coming specifically from Facility Capital Maintenance,which could be used only for specific purposes. Councilmember Ohlson made a motion, seconded by Councilmember Roy,to adopt Ordinance No. 050, 2005 on Second Reading and to adopt Resolution 2005-049. The vote on the motion was as follows: Yeas: Councilmembers Hutchinson,Kastein,Manvel,Ohlson,Roy and Weitkunat. Nays: None. THE MOTION CARRIED. Ordinance No. 057, 2005, Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands Necessary for the Construction of Public Improvements in Connection with the Dry Creek Drainage Improvements Project - East Vine Diversion Channel, Adopted on First Reading The following is staff s memorandum on this item. "FINANCIAL IMPACT Property acquisition costs for the construction of the Dry Creek Drainage Improvements Project will be covered by available project funds. Appropriations for the Project consist of$1,700,000 in 2003, $3,000,000 in 2004 and$3,400,000 in 2005. EXECUTIVE SUMMARY The design portion of the Dry Creek Drainage Improvements Project ("Project') began in 2003, The construction of the Project began in April 2005 with completion scheduled for 2006 The total project involves a combination ofsub projects in the upper, middle and lower basins ofDry Creek with the goal of reducing the likelihood offooding in Fort Collins and Larimer County. The approval of this ordinance does not automatically result in the filing of a petition in eminent domain; it simply allows staff to use the process if good faith negotiations fail to result in an agreement between the City and affected property owners. Staff is hopeful that all acquisitions will be accomplished by agreement. Staff intends to follow the standard City acquisition process: 1. Staff will conduct an internal value finding. If the preliminary valuation of the property indicates that the value of the property to be acquired exceeds $5,000 staff will order an appraisal from a certified appraiser. 122 May 17, 2005 2. Staff will attempt to meet with each property owner onsite, and may include the appraiser in this meeting. 3. Staff will mail and/or hand deliver letters of intent to the owners with written offers based on the internally prepared value findings or appraisals. 4. Staff will negotiate in good faith to reach a mutually acceptable agreement. 5. Staff will inform the owners that they always have the right to consult with their own appraiser and/or attorney at any time in the process. BACKGROUND Dry Creek, a tributary to the Poudre River, extends from the Wyoming border to where it joins the Poudre River near the intersection of Mulberry Street and Timberline Road. The Dry Creek Basin ("Basin') is approximately 23 miles long and six miles wide, encompassing approximately 61 square miles. The upper and middle portions ofthe basin are primarily used as rangeland, irrigated hay meadows and pastures. The majority of the lower basin is developed for commercial, industrial and residential uses. The 100-year floodplain and floodway were originally mapped as part of a Federal Emergency Management Agency("FEMA')Flood Insurance Study in 1979 and revised in 1996 The original master plan was completed in 1980.In 2002,Fort Collins Utilities mapped a revised floodplain and floodway for portions of the Basin as part of a comprehensive update of the City's stormwater master plan. The floodplain and floodway map reflect the higher rainfall standard adopted by City Council in 1999. Dry Creek is a FEMA designated floodplain and is subject to the City's floodplain regulations. The total project includes modifications to Douglas Lake spillway, construction of two detention ponds, installation of a SCADA system, construction of an irrigation water supply pipeline from Reservoir#4 to Terry Lake, and construction of open channels to carry stormwater flows from the Larimer& Weld Canal to near the confluence ofDry Creek and the Poudre River. Sub projects in the lower basin are currently in the final design phase. In the lower basin one ofthese sub projects, the East Vine Diversion Channel, requires the purchase of a permanent storm water and access easement and a temporary construction easement from a private property owner. Staff has initiated the negotiation and education process and is reviewing the proposed improvements with the affected property owners. However, to ensure that the City will be able to secure all of the property interests needed in time to begin construction of the sub project, it is necessary to initiate the first step of the eminent domain process, including passage of this ordinance authorizing acquisition by eminent domain. Staff has advised the affected property owners that it is not unusual for the City to authorize the use of eminent domain at the same time as negotiations are taking place and that it is the City's intention to continue good faith negotiations for the property interests. " 123 May 17, 2005 City Manager Atteberry introduced the agenda item. Helen Matson, Real Estate Manager, stated staff was requesting permission to go forward with eminent domain proceedings only if a mutually agreed satisfactory price could not be negotiated between the City and the Weiss family. She stated the property was needed for the Dry Creek Drainage Improvement Project- East Vine Diversion Channel. Dean Saye,Utilities Project Manager, gave a brief overview of the Dry Creek project and how this property would be affected by the East Vine Diversion Channel. He addressed the potential for flooding in the North College trailer parks and businesses. He described the stormwater mitigation components of the project involving detention and conveyance. He stated Douglas Reservoir and two reservoirs to be built would be used for detention and that the Larimer-Weld Canal would convey flood flows around the northeast part of Fort Collins to a site spill weir to the new East Vine Diversion Channel. He stated the Weiss property was bounded on the north by the Larimer-Weld Canal and on the south by Vine Drive. He stated this property would have some benefit due to the removal of about 10 acres from the flood fringe. He stated the proposed alignment of the East Vine Diversion Channel was chosen because it was the shortest route that could be taken without using a diagonal route. He stated this route would also allow utilization of the Lindenmeier Lake Outlet Channel as a flood control. He stated this alignment would also provide some buffering to the Lindenwood Estates if development occurred in the area. He stated at some point outfall would be needed for the Dry Creek basin to drain the North College area and that the outfall would likely parallel the proposed Vine Street realignment. He stated the same crossings at the Vine Drive and Burlington Northern-Santa Fe Railroad could be used. He stated the intent was to combine the ability to bring the flood flows into one crossing location. He presented visual information showing the relationship between the proposed channel and the Weiss property. He stated he had met with the Weiss family to discuss the easement and the need for the project and that efforts had been made to optimize the design to limit the easement to only 1.02 acres. He stated this required acquisition of another .7 acre easement on the Lindenwood HOA property. He stated side slopes were steepened to minimize the width and length of the easement. He stated staff had worked to minimize impacts to the Weiss farm by scheduling work in November. He stated the property would be used for a stormwater structure and that it could also be used in density calculations for future development projects and as a buffer area. Bev Weiss, property owner, stated her family was not notified of this meeting. She asked that this agenda item be pulled and held. She stated the trail mentioned by Mr. Saye did not belong to Lindenwood and that the Lindenwood residents were trespassing on the ditches. She stated the property owner had been told by the City and County that Lindenwood and all property owners would share in this project. She stated Mr. Saye had now indicated that the City did not want to "disturb" Lindenwood and wanted to take about two acres of the Weiss property. She stated this would shorten the field for farming and make it difficult to irrigate because water must come from the north irrigation ditch. She invited the Council to see the site with an independent engineer. She stated the property had been in the family for 75 years and that there had been no flooding during that time. She stated the property had a high value and that placing the Vine Drive alignment through the property and this stormwater project on the property would devalue the whole property. 124 May 17, 2005 She stated she had been"lied to"by the City many times and that she found out about this meeting only last Friday. She asked that this be tabled. Mark Brophy, 1109 West Harmony Road, stated the property owners should be informed before eminent domain proceedings were put on the Council agenda. He stated there were many other options for moving stormwater around. He stated the City should find a way to do this without using the "despotic power" of eminent domain. He suggested that the City appropriate $30,000 to give to Mrs. Weiss to hire a lawyer to argue for her on the real value of the property. He stated money for appraisers and lawyers should be paid by the City rather than Mrs. Weiss, Councilmember Weitkunat asked for clarification about the recommended action, i.e. that this was not the condemnation. Matson stated staff was asking permission to go to eminent domain if necessary because Mrs.Weiss had indicated repeatedly that she was not willing to grant an casement to the City. She stated staff was requesting up front approval so that eminent domain could proceed if needed. She stated the City would continue to negotiate with the Weiss family and that eminent domain would be the last option. She stated the City had ordered an appraisal and that Mrs. Weiss would have an opportunity to have an appraisal of her choosing done. She stated the City would reimburse the cost of the property owner's appraisal in accordance with City policy. Councilmember Weitkunat asked for clarification regarding the shared project referenced by Mrs. Weiss. Saye stated Larimer County was originally part of this project and was no longer participating due to funding problems. He stated the City was now asking for a 1.02 acre easement on the Weiss property and that the project had been relocated to the west to minimize the size of the easement. He stated the City was negotiating with the Lindenwood HOA for a.7 acre easement and a 13 acre casement on another neighboring property. Councilmember Weitkunat noted that there were other properties involved. Saye stated there would be three properties involved. Councilmember Weitkunat asked for clarification of the map showing the Weiss property and whether the property was approximately 110 feet by 65 feet. Saye stated the property was approximately 65 feet wide and one location. Councilmember Weitkunat noted that Mrs.Weiss seemed to indicate that half of the field would be taken. Saye stated the entire tract was roughly 100 acres and that the City was asking for 1.02 acre for the casement. Councilmember Weitkunat asked if the diversion channel and drainage would be closed or open. Saye stated it would be a grass-lined channel that would be maintained by the City. Councilmember Weitkunat asked if that would be true for the length of the diversion channel. Saye noted the diversion channel would be grass-lined roughly to the existing Lindenmeier Lake outlet channel. He stated the portion across the Weiss property would be fenced. 125 May 17, 2005 Councilmember Weitkunat asked if there would be water in the channel only during flooding conditions. Saye stated there would be water only if there was groundwater and noted that there was high groundwater in the Lindenwood area. Councilmember Weitkunat asked about the impact of the project on the irrigation of the Weiss property. Saye stated he did not believe that the irrigation would be affected because the channel was at the highest part of the property and would not intercept any irrigation. Councilmember Roy noted that Mrs. Weiss indicated that she found out about this meeting late on Friday and asked staff to address that. Matson stated she called Mrs. Weiss on Friday to let her know about the agenda item. She stated it was her understanding that Mrs. Weiss was aware that this would eventually happen. She stated she assured Mrs. Weiss that this agenda item was simply to ask for permission for eminent domain if needed, rather than actually proceeding to eminent domain. Councilmember Kastein asked about the process to analyze where stormwater improvements would be placed, how property owners were brought into the discussion, and what public meetings were held. Saye stated the Dry Creek problem had been an issue for the City and County for at least 15 years. He stated over that period of time the City and County had been working together to develop a master plan on how to control flooding in Dry Creek. He stated in 2002 the two entities hired an engineer to develop a master plan for improvements in the basin. He stated several open houses were held. Bob Smith,Stormwater Planning Manager,stated a number of meetings and open houses were held to look at concepts and that the proj ect was at a more detailed analysis stage at this point. Councilmember Kastein asked why this authorization was needed at this point in the negotiations. Matson stated past experience showed that there was a lag time after commencement of eminent domain that could impact construction. She stated up front approval made it possible to proceed with eminent domain if needed on a more timely basis. Saye stated he had met with the Weiss family many times and that he had been told repeatedly that an easement would not be granted unless the City wanted to buy the entire farm. He stated this project had 12 separate components that would be built and that eight of those were being built around irrigation systems,ditches, lakes and reservoirs. He stated there were difficult scheduling problems. He stated staff had made an effort to develop an optimized design and "rational" easements. He stated a delay could take the construction into irrigation season or planting season. He stated staff was trying to preserve the ability to build this project. Councilmember Kastein asked if the piece that was in question was the cross hatched section on the map. Saye used visual information to show the property that was needed for the easement. City Manager Atteberry stated the City had been aware from the beginning that this easement would become the subject of an eminent domain proceeding. He stated preapproval of eminent domain was a normal way for the City to do business because of the construction delay problem. He stated he would talk with staff about how property owners could be notified of such actions. He stated he believed that it was important to preserve the option to seek preapproval of eminent domain proceedings. 126 May 17, 2005 Mayor Hutchinson asked if this action was time sensitive and whether the Council must act on it at this time. Matson stated Council action was needed to avoid construction delays.City Attorney Roy stated there would be a Second Reading of the Ordinance on June 7 and that additional discussions could occur prior to Second Reading. He stated it was important to have enough lead time to be able to go to court in a timely fashion if necessary. He suggested adoption on First Reading with direction for any additional work the Council felt was necessary prior to Second Reading. Councilmember Roy asked about the culvert or diversion under East Vine in conjunction with another project. Saye stated Dry Creek in a 100-year event could carry as much as 900 cubic feet of stormwater per second at the Vine Drive intersection. He stated there would be 500 cubic feet per second coming down the channel at the same time. He stated there was currently a 24 inch culvert under Vine Drive and that as part of this project a series of box culverts would be built under Vine Drive to carry 1,400 cubic feet per second. He stated the Street Master Plan showed the realignment of Vine Drive and that a channel or pipe system would be built to take the stormwater off of the North College business area under Vine and the railroad. Councilmember Roy asked if the diversion would be for both projects, even though this canal diversion was being built first. Saye replied in the affirmative. He stated the culvert would have the ability to handle the flows from both projects. He stated without the project there would be 6,000 cubic feet per second of flow. He noted that the irrigation structures could not be used if water was not taken out of the ditches. Mayor Hutchinson stated it appeared that a problem with an irrigation ditch to the north was being moved to Dry Creek i.e. all of the problems were being put into one place. He asked for clarification that the ditches would be used for a stretch and then the water would be taken back out to be sent back down Dry Creek. Saye replied in the affirmative. Mayor Hutchinson stated part of the Weiss property and the other properties would be removed from the flood fringe. Saye stated the floodplain came through the area and that the property owner would realize a benefit from the project because the floodplain would be vastly reduced on the property. He stated the flood fringe would be removed from a portion of the Weiss property. Councilmember Weitkunat made a motion, seconded by Councilmember Kastein, to adopt Ordinance No. 057, 2005 on First Reading. Councilmember Roy stated the City was "ahead of itself' on this. He stated the Weiss family deserved a registered letter from the City giving notification. He stated he would not support the motion. He stated the future realignment of Vine would be done to some degree at the expense of the Weiss family. He stated a project would be built to deal with one flow and that a valuable piece of real estate would be removed from the floodplain. He stated he was not comfortable with the process of eminent domain. He stated timely notice should be given. Councilmember Ohlson stated he supported improvements to the notification process. He stated he would not support the motion and that,except in an emergency situation,he would vote against any 127 May 17, 2005 measure in the future when the Council was told that it had to"vote tonight'even though work had gone forward for several years. Councilmember Weitkunat stated she would support the motion. She stated this process had been used for many years and that it was appropriate to use this process in this case. She stated a different notification process may be needed. She stated this action would authorize staff to proceed if necessary. She stated this was one of the most important projects done in the northern part of the City. She stated a "creative engineering feat' would help take the northern area out of a serious floodplain. She stated time was of the essence and that the Ordinance should be adopted. Councilmember Manvel agreed that better notification was needed and this project was important to development in the northern part of the City. He stated he would therefore support the motion. Councilmember Kastein stated"this was process was not broken." He stated he was satisfied with staffs response regarding the process to date, including discussion with this property owner. He stated he would support the motion with the understanding that staff would contact the property owner one more time prior to Second Reading to discuss the issue. Mayor Hutchinson stated he would support the First Reading adoption of the Ordinance because it was a precautionary first step. The vote on the motion was as follows: Yeas: Councilmembers Hutchinson, Kastein, Manvel and Weitkunat. Nays: Councilmembers Ohlson and Roy. THE MOTION CARRIED. Ordinance No. 058, 2005, Authorizing an Easement for a Pedestrian Bridge for Opera Gardens Lofts.Adopted on First Reading The following is staff s memorandum on this item. "FINANCIAL IMPACT The compensation for the easement across the alley will be $10,000 and the compensation for the attachment to the Civic Center Parking Structure, which will result in the loss of one parking space and costs associated with reconfiguration ofparking spaces, is $16,000. The total revenue for the Transportation/Parking Fund will be $26,000. 128 May 17, 2005 EXECUTIVE SUMMARY The development of Opera Garden Lofts was approved as a minor amendment to the Opera Galleria, contingent upon the developer being able to provide off-street parking to the users of the new mixed-use building and also contingent upon negotiating permission from the City fora bridge between the Opera Galleria and the Civic Center Parking Structure ("CCPS'). The developer cannot commence construction until this easement is granted. The developer has indicated that this bridge is important to make the Opera Garden Lofts project more attractive to lenders and potential purchasers of units. The Opera Gardens Lofts project will add two floors to the Opera Galleria. The easement request is to construct an above-grade pedestrian bridge from the 4th floor of the CCPS to one of the new floors of the Opera Galleria. This pedestrian bridge will not replace the existing bridge, which is a public bridge. The new bridge will be a private bridge to be used by users of the mixed-use structure. Staff has worked with the developer to negotiate the terms of the easement, which will be for a term of up to 99 years. The City may not terminate this easement during the first 31 years, which is the expected period for initial construction and mortgage financing. After that time, the City may terminate the easement with 120 days notice to the easement holder. The easement is contingent upon the developer entering into a development agreement with the City by October 31, 2005. The design of the pedestrian bridge and schedule for construction is subject to City approval. The Ordinance also makes the grant of this easement contingent upon execution of the easement for the City's public pedestrian bridge, which had been negotiated several years ago but was never signed by the Opera Galleria owner. The Ordinance authorizes the easement under the terms and conditions as discussed above, and generally in the form of Easement Agreement on file in the City Clerk's Office. " City Manager Atteberry introduced the agenda item. Gary Diede, Transportation Services, stated there had been a question regarding whether Opera Galleria could take access to the Civic Center Parking Structure. He stated staff had been working with the applicant to determine the conditions of that access. He stated consensus had been reached between staff and the applicant regarding how to provide access through a pedestrian bridge to the Parking Structure. He stated the proposed Ordinance would allow that and would require certain payments by the applicant. Councilmember Roy stated the Opera Galleria was one of the most recognizable structures in Old Town and that the agenda material suggested that there was some support for adding two floors. He stated he would like to see a rendering of what the structure would look like and would like to know the level of support for changing the structure. Mikal Torgerson, applicant,presented information regarding the proposed changes. He stated the two floors that would be added would not be visible from College Avenue and that the design would 129 May 17, 2005 be sensitive to the historic architecture. He stated the Landmark Preservation Commission was "enthusiastic" about this design approach. He stated the only substantive comment by the Commission was that the design look at gabled roofs. He stated there would be three penthouse units with roof-top gardens. He stated the proposed bridge connecting the Parking Structure to the project would be visible. He stated the new addition would be visible from the alley down LaPorte Avenue and from the Parking Structure. He stated it would screen the existing mechanical units on the Opera Galleria. Councilmember Roy asked for a frontscape. Mr. Torgerson showed visual information giving a "pedestrian-eye view" from the east side of College Avenue. He noted that the project would not be visible from that perspective. Councilmember Roy asked how this renovation would impact historic designation and grants. Mr. Torgerson stated the portion of the building being added onto was the portion that was added onto the historic building in 1989 and was adjacent to the historic structure. He stated it was his understanding that this would not have an impact on the historic status of the project. Councilmember Roy asked staff about the effect of the project on the historic structure. Karen McWilliams, Historic Preservation Planner, stated the property was designated on the National Register of Historic Places. She stated the project plans were reviewed by staff and the Landmark Preservation Commission. She stated everyone was in agreement that it would meet the nationally recognized Secretary of Interior Standards relating to alterations to historic structures. Councilmember Roy asked if this determination had been made only at the local level. McWilliams stated the National Register program was administered by the Colorado Historical Society. She stated the City was a Certified Local Government and as such was able to make such determinations on behalf of the Colorado Historical Society. She stated the design made the addition virtually invisible from the streetscape and that the addition was being made to a previous addition. She stated there was minimal impact to the historic structure and viewshed. Councilmember Ohlson asked why a project of this size was considered as a Minor Amendment to the Opera Galleria PUD. City Manager Roy stated he would need time to respond to the question. Councilmember Ohlson asked the applicant about his understanding of that review. Mr. Torgerson stated the project was approved almost two years ago contingent on the bridge easement and the provision of proper parking. He stated his recollection was that this was in the approved Opera Galleria PUD and that additions within the PUD were processed as Minor Amendments. Councilmember Ohlson stated he would address that matter under comments. He asked for an explanation of the language in the read-before memo that indicated that the project"would have no significant effect on the historic status of the building." McWilliams stated any kind of construction on the building would have an effect. She stated the terminology used with regard to National Register and local landmark properties was whether it would be a"significant effect,"i.e. a change that would be obvious,notable,etc. and whether the effect would be adverse or positive. She stated in this case, because of the placement of the dwelling units on new construction in a manner that 130 May 17, 2005 would not be visible from most corridors, the determination was that this would not have any "significant effect." Councilmember Ohlson asked for clarification that this addition would not be on the historic structure. McWilliams stated it was on an addition that was already added at the rear of the historic structure in the 1980's. Councilmember Ohlson asked if the City was getting a fair value for the taxpayers. Helen Matson, Real Estate Manager, stated the $10,000 for the easement was figured on square footage and at a 33%value because of the low impact on the alley below. She noted that some parking spaces were being lost. Diede stated one parking space would be lost due to access to the pedestrian bridge and that the value of that was determined by the cost of the parking structure divided by the number of parking spaces with an adjustment because this was a handicapped parking space ($16,000). Councilmember Ohlson asked to see the streetscape view again, noting that one person indicated that the project would be"virtually invisible"and the applicant indicated that it would be"invisible" from College Avenue. Mr. Torgerson stated the applicant found that it was invisible except for a "small sliver of the roof." City Attorney Roy stated in general the Land Use Code distinguished between Minor and Major Amendments and established different processes. He stated the CPES was in the position to decide whether it was a Minor Amendment (to go through an administrative process) or a Major Amendment(to go through a Type 1 or Type 2 Review). He stated staff would provide information to the Council before Second Reading on why this was considered to be a Minor Amendment. Mayor Hutchinson noted that this agenda item was authorization for an easement rather than the anything to do with the addition. City Attorney Roy agreed. Councilmember Roy stated an e-mail was sent to Council on May 16 indicating that each on-street parking stall could generate up to $300,000 in annual retail sales. He stated the agenda item summary for this indicated that the developer could not commence construction until the easement was granted and that the developer had indicated that this easement was important to make the Opera Garden Lofts project more attractive to lenders and potential purchasers of units. He stated there would be at least a 31-year arrangement and that the $300,000 value of a parking space was in last year's dollars. Councilmember Kastein stated this was not on-street parking. Diede stated it was fourth level parking in the parking garage. Councilmember Kastein asked if the$300,000 would apply to the fourth level in the parking garage. City Manager Atteberry stated Councilmember Roy was referring to a study done several years ago by a consultant on the Downtown Strategic Plan. He stated the value of retail dollars generated per parking space identified in the plan applied specifically to on-street parking. He stated the handicapped parking space in this matter was on the fourth floor of the parking structure and that the value was the capital value of the lost parking space. 131 May 17, 2005 Councilmember Roy stated for at least 31 years and up to 99 years the City would capture$16,000 for a space that would be used exclusively by the private tenants of a development that would be "high end." He stated he did not believe that$16,000 would capture what the lost parking space was worth over 31 years. Matson stated the parking space would be used for the construction of the bridge rather than for occupancy by the Opera Lofts residents and that those residents would buy permits for parking each year. She stated the value was calculated on the capital cost of the space. Councilmember Roy made a motion,seconded by Councilmember Manvel,to adopt Ordinance No. 058, 2005 on First Reading. Councilmember Roy stated this kind of in-fill redevelopment was the right direction. He stated he did have concerns about marketing something below the fair value and that he did have a concern about the loss of a public parking space to create an opportunity for private citizens to have an "exceptional lifestyle" in the downtown. He stated the project was well thought out and that he supported this type of activity in the downtown. He stated this kind of arrangement needed to be made equitably for all the taxpayers rather than to the advantage of the private residents and development principals. Councilmember Weitkunat asked if the easement was being granted because of the City alley or because of the parking lot. Matson stated the air easement was being granted over the City alley and attached to the City Parking Structure. Councilmember Ohlson stated he looked forward to seeing the explanation of why this project was a Minor Amendment. He stated he did support in-fill redevelopment projects and that this was a worthwhile project even if the City did not get"market value"in the trade off. He stated he wanted to see that kind of information(opportunity costs, lost revenue, etc.) in the staff reports on this kind of agenda item in the future i.e. the Council needed to see the cost for loss of the parking spot in this case. He stated the information should be available so that the Council could make a decision on whether to "help" such projects, knowing all of the costs to the City. He stated he hoped that the actual project matched what was seen on the computer graphics as far as elevations. He stated he was supportive of the project and would support the motion. Councilmember Manvel stated the City would lose revenue and would also gain revenue due to the residential occupancy. He noted that the fourth floor of the Parking Structure was largely empty much of the time. Councilmember Kastein stated this was an excellent project and that it would have a positive effect on the downtown. He stated residential units would be built to help keep the Old Town vibrant. He stated he was very supportive of the City's part in this easement. Mayor Hutchinson stated he was comfortable with the parking space situation. The vote on the motion was as follows: Yeas: Councilmembers Hutchinson, Kastein, Manvel, Ohlson, Roy and Weitkunat. Nays: None. 132 May 17, 2005 THE MOTION CARRIED. Other Business Mayor Hutchinson stated the Leadership Team had discussed the Economic Vitality and Sustain ability Action Group (EVSAG) and a loss of momentum. He stated the hope was to build on EVSAG's work on economic strategies and that the discussion was that the work of the EVSAG would be "trivialized" or"lost" without an economic action plan. He stated the Leadership Team discussed rechartering the EVSAG to emphasize the group's activities in light of economic conditions. He stated the economy was a top issue in the recent election campaigns and that he believed that this Council was poised to play a more active role in economic planning. He stated he would like the Council to discuss this in a structured way and that he would like support to ask the City Manager to schedule a time to discuss these issues in a focused way with a meeting facilitator. He stated the main goal was to "harness the brainpower and accomplishments" of the EVSAG and make the strategies part of the planning process. Councilmember Ohlson noted that there were other major issues, including the budget and policy agenda processes. He stated the economy was one of the seven key points adopted by the Council and that it would now be receiving special consideration. Mayor Hutchinson stated this was a "proactive" Council and that this would allow a detailed discussion to determine whether the Council supported "kick starting" work on one of the most important issues, i.e. attention to the economy. He stated he hoped to focus on getting the larger process started to keep the EVSAG from losing momentum. Councilmember Roy stated the original EVSAG created a large array of options and choices (branding, niche marketing, etc.). He questioned whether the second EVSAG was"losing steam" and noted that the efforts of the original EVSAG were still having a"powerful"and"positive"effect in the community. Councilmember Kastein stated he believed that the Council would identify development of an economic plan as a key element during discussions on the budget and the policy agenda. He stated he supported having a discussion on the economic issues sooner rather than later. Councilmember Ohlson stated there would be discussions on the policy agenda and that those discussions would include the economy. He questioned pulling out one of the items for special discussion and stated this could send a message to staff and the community that the other six key outcomes were not as "valued." Councilmember Roy asked for clarification regarding the Mayor's concerns about the current EVSAG. Mayor Hutchinson stated he was concerned that the first EVSAG did some"wonderful work"that was not part of a plan of action. He stated the same thing was happening with the second EVSAG. He stated the City had chartered a group of"brilliant people" representing a cross section of the 133 May 17, 2005 community and that their excellent work was not being turned into any kind of action plan. He stated an economic action plan would take some of that work and get staff to work on some of the issues. Councilmember Roy asked if the Mayor was suggesting a new group. Mayor Hutchinson stated he was not suggesting a new group. He stated the concern was that the work done by EVSAG was not being worked on by the staff. He stated he would like to see the work of the EVSAG be the core of an action plan to revitalize the economy. He stated the economy was the number one issue in the community. Councilmember Roy asked about the status of an Economic Advisor position on staff. City Manager Atteberry stated his intent was to advertise the position as soon as possible. He stated he would e- mail the job description and salary range to the Council. Councilmember Roy stated this would be one of the first steps in addressing the Mayor's concerns. Mayor Hutchinson stated this would be a complementary action. He stated the economic plan did not hinge on hiring that person. He stated he wanted to get the process started on something that would take awhile and to give the EVSAG more"directed employment"in working on an economic plan. He stated the EVSAG had done the strategic work and had not yet done an economic plan. Councilmember Ohlson stated the Council goal was to get 90% of the 80% agreed on done. He stated he was not sure if something else would not get done if this was to get done and if this would send a message that this was a higher priority than anything else. He stated there were many other things that were equally important. Mayor Hutchinson stated this was a unique situation because the EVSAG had already been created and had done some "brilliant work." Councilmember Weitkunat stated the EVSAG had provided information for the retreat on what had been done and that the EVSAG had no direction from Council on what came next. She stated the Council needed to decide on the direction to give the EVSAG. Mayor Hutchinson stated he would like to see a discussion of the EVSAG and its work and how that group should proceed with an action plan. He noted that he did not believe that there would be much Council or staff work needed on this until well after the budget process was concluded. Councilmember Ohlson stated he would support having that discussion. Mayor Hutchinson asked the City Manager to schedule a structured and facilitated discussion on this matter. 134 May 17, 2005 Councilmember Weitkunat noted that there was no opportunity for the public to comment on the Consent Calendar portion of the agenda without pulling an item for separate discussion at the end of the meeting. Councilmember Kastein stated there could be an opportunity for public comment before or after the motion to approve the Consent Calendar. Councilmember Manvel stated this option could be offered. Mayor Hutchinson noted that citizen and Council comments on the Consent Calendar could take place before the vote on the Consent Calendar. Councilmember Ohlson stated this would not work because items had to be pulled from the Consent Calendar before that. He stated the problem was having audience members and staff wait until the end of the meeting just to make a comment on a pulled Consent Calendar item. He suggested having staff look at ways to avoid that situation. City Attorney Roy stated the Mayor could ask if anyone wanted to comment on or pull a Consent Calendar item and could explain the difference. Mayor Hutchinson asked staff to work on that and make suggestions on how this could be handled. Adjournment The meeting adjourned at 9:30 p.m. Mayor ATTEST: City Clerk 135 June 7, 2005 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, June 7, 2005, at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered by the following Councilmembers: Brown, Hutchinson, Kastein, Ohlson, Roy, and Weitkunat. Councilmembers Absent: Councilmember Manvel arrived at 7:30 p.m. Staff Members Present: Atteberry, Krajicek, Roy. Citizen Participation Mayor Hutchinson stated each participant would have three minutes to speak. Reginald (Bud)Heron, 415 South Howes Street, Senior Advisory Board member, stated the Board was committed to the expansion ofthe Senior Center as a Building on Basics project for the growing senior population and other community users. Wayne Anderson, 5242 Fossil Creek Drive, opposed the southwest enclave annexation. He asked that the residents and business owners be given a voice in the annexation. Terri Sullivan, 1649 Shenandoah Circle, Friends of the Library member, expressed concerns about library funding. She stated in the last several years the libraries had lost $230,000 in funding. Larry Webber, 139 Pearl Street,Friends of the Library member,expressed library funding concerns. He stated since 1996 the population had increased by 204%and that library use had increased 690%. He stated the library was an information center for the community and a basic service. B.J.Ferrero,Kel-Mar stripbusiness owner,spoke in opposition to the southwest enclave annexation. She described the"micro-businesses"in the Kel-Mar strip and stated more than 300 families would lose their primary sources of income if the annexation went through. Rudy Maes, 1601 North College Avenue,expressed concern about lack of funding for the library and the bilingual program. JoAnn Malara,2701 Blackstone Court,Kel-Mar strip business owner at 6012 South College Avenue, opposed the southwest enclave annexation. She described the antique, flea market, and"mom and pop" businesses along the Kel-Mar strip and the international clientele. She stated a forced annexation and the resulting increases in fees,taxes and upgrades would drive them out of business. 136 June 7, 2005 Steven Almandinger expressed concern about the City's continuing destruction of beaver dams on Spring Creek. He asked the City to check into flow control devices and to permanently keep at least two beaver dams. Diane Heath, 1113 White Oak Court, Senior Advisory Board chair, spoke regarding the need for enhancements to the Senior Center to serve the growing active senior population and others in the community. Joe Collins,839 Langdale Drive,Kel-Mar strip business owner,spoke in opposition to the proposed southwest enclave annexation. David McDanel, 143 West 2nd Street, Loveland, Disabled Resource Services employee, asked the Council to consider more funding for public transit. Jack Harper, southwest enclave annexation resident, opposed the proposed annexation. Courtney Prozboski, Director of Community Affairs for ASCSU, spoke regarding the "three unrelated" ordinance and the definition of"head of household." Mayor Hutchinson noted that the 30 minute time limit had been exceeded and that additional participation would be allowed at Council's discretion. The consensus was to allow additional participation. Sandy Robbins, 5108 South Shields Street, spoke against the proposed southwest enclave annexation. Ann McSay, 6422 Kyle Avenue, opposed the southwest enclave annexation. Mark Dailey, 409 Greenvale Drive, Fossil Creek Meadows, spoke in opposition to the southwest enclave annexation. Rick Price, 1925 Wallenberg Drive, spoke regarding the lack of scheduled events for Bike Month due to the vacancy in the bicycle and pedestrian coordinator position. He asked that this position be reinstated and that a task force be created to work on implementation of the Fort Collins bicycle program. A] Baccili, 520 Galaxy Court, opposed the southwest enclave annexation. Doug Brobst, 1625 Independence Road, spoke regarding the"three unrelated"ordinance and asked that the Council support the retention and enforcement of the ordinance. Vivian Ontiveros,820 Merganser Drive#908,asked formore funding fortransit services and Dial-a- Ride services after 6:00 p.m. 137 June 7, 2005 Marcia Fitzhorn, Fort Collins resident, supported more funding for public transit. Citizen Participation Follow-up Mayor Hutchinson thanked those who spoke during Citizen Participation. Councilmember Roy noted that the City was recognized as a"world class"place for senior citizens to retire. He stated the Senior Center was important for building on that reputation to help create a better economy for the community. He stated the senior citizens who retired to Fort Collins made a large contribution to the economy. He also asked for information on the bicycle coordinator position and City support for bicycle programs and thanked those who spoke about transit for Fort Collins. Councilmember Kastein thanked the speaker who brought up the issue of beaver dams on Spring Creek. He also commented that the City was approaching a budget cycle in which elimination of $8 million from the budget was being considered. He stated the City would have to stop doing some "good things" and delay doing other things. He stated expansion of any program would have to be done at the cost of something else. He commented that additional analysis was being done on the annexation of the Kel-Mar strip to determine the financial burden to the City. Councilmember Ohlson thanked the speaker who spoke about the beaver dams on Spring Creek and stated the City could improve the way beaver dams were handled. He requested information on the bicycle/pedestrian coordinator position and noted that when positions dealing with implementation of Council policy agenda items were frozen that Council should be advised of the situation. Agenda Review City Manager Atteberry stated there were no changes to the printed agenda. CONSENT CALENDAR 6. Consideration and Approval of the Regular Council Meeting Minutes of May 3 2005. 7. Second Reading of Ordinance No. 053, 2005, Appropriating Prior Year Reserves in the General Fund for Cultural Development and Programming Activities and Tourism Capital. This Ordinance, which was unanimously adopted on First Reading on May 17, 2005, appropriates lodging tax revenues that were in excess of 2004 budgeted lodging tax receipts to Cultural Development and Programming("CDP"), Visitor Events, and Tourism Capital fund accounts. Lodging tax revenue for 2004 was estimated to be $573,600 and the 2005 budget appropriated an equal amount. However, actual receipts totaled $601,143 for 2004 and the difference of$27,543 has not been appropriated. 138 June 7, 2005 In accordance with City Code Section 25-244, 75%of the total lodging tax receipts are to be used for the promotion of convention and visitor activities and 25%for cultural development and programming activities. The City's contract for services with the Convention and Visitors Bureau ("CVB") requires the payment of$400,000 to CVB for 2005, with $5,213 for service enhancements. 8. Second Reading of Ordinance No. 054, 2005, Authorizing the Transfer of Appropriations from the Street Oversizing Fund to the Capital Project Fund - Timberline Road Improvements Project to Be Used for Completion of EngineeringDesign and Establishine Appropriations for Railroad Crossing Improvements at the Project. Developers have contributed $100,000 to the City to begin the engineering design of Timberline Road from Prospect to Drake. There are additional engineering design costs with the project to be funded by Street Oversizing. This item appropriates $184,000 into the project budget for the completion of the final engineering design. In addition, railroad crossing permits with Great Western Railroad for widening the track on both Timberline Road and Prospect Road need to be submitted one year in advance of the construction in order to schedule the railroad crews. The permit requires that funds for the crossing material and labor be budgeted and available in the project. $280,000 will be appropriated and earmarked for the railroad crossing agreement in order to submit the required permits and work orders. The total transfer amount is $464,000 and is available in existing Street Oversizing Fund appropriations. Ordinance No. 054, 2005, was unanimously adopted on First Reading on May 17, 2005. 9. Second ReadingofOrdinance No.055,2005,Authorizing the PurchasinizMentto Enter into an Agreement for the Financing by Lease-Purchase of Vehicles and Equipment This Ordinance, which was unanimously adopted on First Reading on May 17, 2005, authorizes the Purchasing Agent to enter into a lease-purchase financing agreement with Koch Financial Corporation at 4.96 percent interest rate. The agreement is for an original term from the execution date of the agreement to the end of the current fiscal year. The agreement provides for renewable one-year terms thereafter,to a total term of five(5)years, subject to annual appropriation of funds needed for lease payments. The total lease terms, including the original and all renewal terms, will not exceed the useful life of the property. This lease-purchase financing is consistent with the financial policies of the City of Fort Collins. All equipment shall be purchased following the City's purchasing ordinances and procedures to ensure that the City realizes all cost savings. The vehicles and equipment financed under the agreement will comply with applicable City policies, and will be in accordance with the goal of optimizing City resources without impacting service to the community. 139 June 7, 2005 10. Second Reading of Ordinance No. 056,2005,Amending the Zoning Map of the City of Fort Collins by Changing the Zoning Classification for that Certain Property Known as the Schrader Rezoning. This is a request to rezone a parcel owned by Schrader Oil Company and the abutting Burlington Northern Santa Fe right-of-way,presently zoned T(Transition), to RDR (River Downtown Redevelopment). The subject site consists of 5 t acres located south of Willow Street and east of College Avenue. Ordinance No. 056, 2005, was unanimously adopted on First Reading on May 17, 2005. 11. Postponement of Second Reading of Ordinance No.057,2005,Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands Necessary for the Construction of Public Improvements in Connection with the Dry Creek Drainage Improvements Project-East Vine Diversion Channel, to July 5, 2005. This item,which was originally scheduled for the June 7,2005 meeting has been postponed to July 5,2005. Since Council approval of this item on First Reading on May 17,2005, staff has been meeting with the Weiss' to discuss the project and their issues. Further meetings have been scheduled in the next couple of weeks,including a site inspection by the appraiser hired by the City. Staff will be using this extra time to continue to work with the Weiss'and to insure they understand the process and have sufficient notification of the July 5, 2005 Council meeting for Second Reading consideration of the item. 12. Second Reading of Ordinance No. 058, 2005, Authorizing an Easement for a Pedestrian Bridge for Opera Gardens Lofts. The development of Opera Garden Lofts was approved as a minor amendment to the Opera Galleria, contingent upon the developer being able to provide off-street parking to the users of the new mixed-use building and also contingent upon negotiating permission from the City for a bridge between the Opera Galleria and the Civic Center Parking Structure ("CCPS"). The developer cannot commence construction until this easement is granted. The developer has indicated that this bridge is important to make the Opera Garden Lofts project more attractive to lenders and potential purchasers of units. The Opera Gardens Lofts project will add two floors to the Opera Galleria. The easement request is to construct an above-grade pedestrian bridge from the 4th floor of the CCPS to one of the new floors of the Opera Galleria. This pedestrian bridge will not replace the existing bridge,which is a public bridge. The new bridge will be a private bridge to be used by users of the mixed-use structure. Ordinance No.058,2005,was unanimously adopted on First Reading on May 17, 2005. 140 June 7, 2005 13. Items Related to the Completion of the Spring Cycle of the Competitive Process for Allocating City Financial Resources to Affordable Housing and Community Development Projects/Programs and Community Development Activities Utilizing Community Development Block Grant (CDBG) and HOME Investment Partnership Funds. A. Second Reading of Ordinance No.059,2005,Appropriating Unanticipated Revenue and Authorizing the Transfer of Appropriations Between Program Years in the Community Development Block Grant Fund. B. Second Reading of Ordinance No.060,2005,Appropriating Unanticipated Revenue in the HOME Investment Partnerships Fund. The Community Development Block Grant (CDBG) Program and HOME Investment Partnership Program provide Federal funds from the Department of Housing and Urban Development (HUD) to the City of Fort Collins which can be allocated to housing and community development related programs and projects,thereby,reducing the demand on the City's General Fund Budget to address such needs. The City Council is being asked to consider the adoption of two resolutions related to funding under the CDBG and HOME Programs. Specific projects for the use of HOME funds will be determined in November as a result of the fall funding cycle of the competitive process for the allocation of the City's financial resources to affordable housing programs/projects and community development activities. Ordinance Nos. 059 and 060, 2005 were unanimously adopted on First Reading on May 17, 2005. 14. First Reading of Ordinance No. 061, 2005, Appropriating Unanticipated Revenue in the Street Oversizing_ Fund and Authorizing the Transfer of Appropriations from the Street Oversizing Fund to the Capital Project Fund - Trilby and Ziegler Road Improvements Project. The construction of Kinard Junior High School requires minor arterial street improvements for Ziegler Road adjacent to the school property. Staff worked with the Poudre R-1 School District in an effort to coordinate the completion ofZieglerbetween Trilby Road and Kechter Road as well as the connection of Trilby between Timberline Road and Kechter. The improvements will be to an important segment ofroadway which will provide primary access to the new Kinard Junior High School projected to open in the fall of 2006. This project is funded entirely through developer contributions and the construction will be managed by the City Street Oversizing Program staff. 15. First Reading of Ordinance No. 062, 2005, Approving the Terms of the City's Lease of Building 15, Old Town Square, Fort Collins. Colorado. In order for this property to become tax exempt, state law requires that the Council approve the terms of the lease by Ordinance. 141 June 7, 2005 Since February 1996, the City has been leasing space in Old Town Square for the Police Services District One office. Police Services has leased the present Old Town Square location since January 1,2000,which term ended and then renewed for one year on January 1, 2004. The present lease term commenced January 1, 2005 and will expire December 31, 2009. Lease payments under the new lease will include base rent,common area maintenance ("CAM")expenses, insurance,utilities and taxes(should they apply). Base rent for the first year shall be$11.00 per square foot based on 2,075 square feet. The second and third year base rents shall escalate to $12.00 per square foot. The fourth year will escalate to $13.00 per square foot, and the fifth year to $14.00. This escalation was based upon a negotiated amount in line with market rents. CAM, insurance and utilities are based on the City's pro rata share. For the first year the estimated prorated monthly charges amount to $1.90 per square foot for CAM, $.28 per square foot for insurance, and $2.13 per square foot for utilities. 16. First Reading of Ordinance No. 063,2005,Authorizing a Deed of Easement for the Pleasant Valley Pipeline. In April of 2001, the City of Fort Collins purchased certain real property from the estate of Robert Udall to be used as the Reservoir Ridge Natural Area. The City acquired the property along with any existing easements of record. Prior to the City obtaining title to the property, Robert Udall had granted an easement to Northern Colorado Water Conservancy District (NCWCD)for the Pleasant Valley Pipeline,which is used by Fort Collins Utilities to convey water. In March of 2005,NCWCD determined that the legal description used forthe original easement was incorrect (it referenced an incorrect Range), making the original easement defective. Because the City is the current owner of record the City has been asked to approve a Deed of Easement correcting the legal description error. Once approved, NCWCD will record the document and provide a copy for City records. 17. First Reading of Ordinance No. 064, 2005, Authorizing the Dedication of a Parcel of Land and a Permanent Public Transportation Easement to the City of Loveland on Jointly Owned City and City of Loveland Property at the Fort Collins-Loveland Municipal Airport The City of Loveland is seeking to construct a roundabout at the intersection of Crossroads Boulevard and Rocky Mountain Avenue in order to facilitate airport area development and improvements. The area of proposed dedication is.571 acres in size,and the Public Transportation Easement will encumber an area.354 acres in size. Both dedication and easement are generally located at the southeast corner of Section 33, Township 6 North, Range 68 West, a portion of the airport property. Staff has determined that cooperating with Loveland in completing the planned improvements will be of general benefit to the Airport. In addition,due to Federal Aviation Administration ("FAA") funding for the Airport, it is anticipated that the City would be 142 .. . .. . . . .. _.._..__ June 7, 2005 required to pay to the FAA any compensation required from Loveland for the conveyances. Consequently, staff is recommending that no compensation be required in this instance. 18. First Reading of Ordinance No. 071, 2005,Amending Chapter 2, Article 5 of the City Code Pertaining to Administrative Organization. This ordinance makes the necessary Code amendments involving the restructuring of Administrative Services and Communication and Technology Services. These changes are recommended to ensure a more consistent approach towards improving accountability and increasing efficiencies in the services these two areas support. 19. Resolution 2005-058 Authorizingthe he City Manager to Grant Revocable Permits to Schrader Oil Company and the U.S. Environmental Protection Agency on the Aztlan Center Property for Environmental Sampling and Related Activities. Schrader Oil Company representatives have requested that the City allow well sampling by Schrader at the "Poudre River Cleanup Site"property. Staff is recommending that the City grant revocable permits as needed, in the form of license agreements, to Schrader Oil Company for this limited purpose. It is important to note that the monitoring wells Schrader has selected to sample are not permitted by the State of Colorado as is normally required for sampling. However, under EPA's jurisdiction, Paul Peronard, the EPA On-Scene Coordinator,has provided verbal approval for Schrader Oil Company to sample these wells under the AOC. Staff is recommending that the City Council adopt this Resolution in order to authorize the City Manager to enter into the necessary license agreements,including such terms and conditions as may be necessary to protect the interests of the City and minimize impacts to the City's property. 20. Items Relating to the Kingdom Hall Annexation and Zoning A. Resolution 2005-059 Setting Forth Findings of Fact and Determinations Regarding the Kingdom Hall Annexation. B. First Reading of Ordinance No. 065, 2005, Annexing Property Known as the Kingdom Hall Annexation to the City of Fort Collins, Colorado. C. First Reading of Ordinance No. 066, 2005, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Kingdom Hall Annexation to the City of Fort Collins, Colorado. This is a 100% voluntary annexation and zoning of a property approximately 3.87 acres in size. The site is 2104 Kechter Road and located at the northeast corner of South Timberline Road and Kechter Road. Contiguity with the existing municipal boundary is gained along the entire west boundary which abuts Timberline Road the Willow Springs subdivision. The requested zoning is U-E, Urban Estate. This zoning complies with the Structure Plan Map. 143 June 7, 2005 21. Postponement of Items Relating to the Airpark Village Annexation and Zoning, to o August 16, 2005. This item,which was originally scheduled for the June 7,2005,meeting has been postponed to August 16, 2005. The item is being continued primarily due to concerns regarding the proposed amendment to the East Mulberry Corridor Plan (E.M.C.P.) and the Structure Plan Map. Such an amendment is required before the Planning and Zoning Board can recommend Employment zoning for the 147- acre parcel. The applicant is requesting Employment zoning whereas the E.M.C.P. and the Structure Plan Map indicate Industrial zoning. A re- hearing with the Planning and Zoning Board is scheduled for July. 22. Items Relating to the Transfer of Ownership of Harmony Road(State Highway 68)Between College Avenue and I-25 from the Colorado Department of Transportation to the City of Fort Collins. A. Resolution 2005-060 Authorizing the Mayor to Enter into an Intergovernmental Agreement with the Colorado Department of Transportation to Transfer the Administrative Control, Maintenance and Ownership of Harmony Road (State Highway 68) between College Avenue and I-25 from the Colorado Department of Transportation to the City of Fort Collins. B. First Reading of Ordinance No. 067, 2005, Accepting the Abandoned Portion of State Highway 68 (Harmony Road) from Mile Post 0.00 to Mile Post 4.468 as part of the City's Street System. The Colorado Department of Transportation(CDOT)and City of Fort Collins Transportation Services have been discussing the transfer of ownership of Harmony Road from CDOT to the City of Fort Collins for many years.This 4.5 mile section of road is developing into an urban arterial. CDOT made proposals for transfer of ownership of Harmony Road in the past, but the City resisted because of the additional costs involved. In the most recent discussions CDOT offered funds in a one-time payment to the City to fund upgrades and offset the cost of maintenance cost over the next 20 years. CDOT and the City's Transportation staff worked together to develop estimates for the 20 year maintenance. CDOT will retain maintenance responsibility for the portion of Highway 68 between the west frontage road and I-25, including the frontage road intersection. The City will accept responsibility for the portion west of the frontage road. CDOT is offering a one-time payment of 513,700,000 to the City to take ownership on this section of Harmony Road. There is some urgency to this matter because part of these funds need to be committed by CDOT within its current fiscal year(before July 31, 2005). 144 June 7, 2005 23. Resolution 2005-061 Finding Substantial Compliance and Initiating Annexation Proceedings for the Crawford Annexation. This item was considered by Council on April 19, 2005, and was postponed to this date to allow staff to determine the ownership of a 30-foot strip of land included in the annexation. The Crawford Annexation has been revised to remove the westerly 30-foot strip. This 30- foot strip was Quit Claimed in 1902 to another party for access purposes and is not owned by the petitioner. The parcel has been reduced in size and now consists of 29.56 acres. Also it has come to light that the original petition for annexation was signed by the wrong entity, having been signed by Mr. Willox as an individual rather than by the true owner, which is a limited liability company of which he is the manager. Therefore, it is necessary to re- initiate this annexation. The site is located approximately one-half mile west of North College Avenue on the south side of Willox Lane. Contiguity with the existing municipal boundary is gained along the eastern boundary which is shared with the west property line of the Hickory Village Mobile Home Park. Contiguity is also gained along a portion of the southern boundary which is shared with the north property line of the City of Fort Collins Soft Gold Park. The recommended zoning is U-E, Urban Estate. This zoning complies with the Structure Plan Map. 24. Resolution 2005-062 Authorizingthe he City to Enter into a Change Order with Felsburg Holt & Ullevig to Amend an Existing_Agreement to Include the Design of the Mason Transportation Corridor Trail Project North from the Spring Creek Trail to Connect with the Colorado State University Campus as an Exception to the Competitive Process over 100 000. This Resolution will authorize the City Manager to amend the existing agreement,by change order, with the consulting firm of Felsburg Holt & Ullevig (FHU), which designed the southern portion of the trail, to include the design for the Mason Transportation Corridor (MTC) Trail project north from the Spring Creek Trail through the CSU campus. In the future, the City will continue to pursue additional grant funding to cover the construction costs for this segment of the MTC Trail. This extension of the MTC Trail northward from the Spring Creek Trail is consistent with the adopted Master Plan for the Mason Transportation Corridor Project. 25. Resolution 2005-063 Authorizing the City to Enter into a Construction Agreement with The Burlington Northern and Santa Fe Railway Company for Construction Services Adjacent and Upon Railway's Right-of-Way and/or Property,as an Exception to the Competitive Process over S 100,000. The Burlington Northern and Santa Fe Railway Company(the"Railway")will construct two bridges as part of the Dry Creek Basin Improvements Project. 145 June 7, 2005 26. Resolution 2005-064 Approving an Intergovernmental Agreement with the City of Thornton Concerningthe he Dry Creek Drainage Improvements Project. The design portion of the Dry Creek Drainage Improvements Project ("Project') began in 2003. Portions of the Project are currently underway and the balance is scheduled to start later in 2005 with completion scheduled in 2006. The total project involves a combination of sub-projects in the upper, middle and lower basins to reduce the likelihood of flooding. 27. Resolution 2005-065 Approving Expenditures from the Art in Public Places Reserve Account in the Light and Power Utility Fund to Commission an Artist to Design and Paint Murals on Transformer Cabinets Located in the Alley West of College Avenue and North of Laurel Street. This Resolution will approve expenditures of$12,380 for design,materials,installation and contingency for a project for artist Sandy Toland to paint murals on five transformer cabinets located in the alley west of College Avenue and north of Laurel Street. 28. Resolution 2005-066 Reappointing Gordon F. Esplin as Temporary Judge and Authorizing the Execution of an Employment Agreement. Council originally appointed Gordon F. Esplin as Temporary Judge (Assistant Municipal Judge) in 1989, and has reappointed him every two years thereafter. His current appointment terminates on June 30, 2005. Municipal Judge Kathleen M. Lane recommends that Mr. Esplin be reappointed for another two-year term. Mr. Esplin is currently paid $85 per hour for his services. That rate is well below the going rate for legal fees in Fort Collins and is at or below the amount paid to other Assistant Municipal Judges in Colorado who serve only occasionally. However, due to budgetary constraints, staff is not recommending an increase in the compensation paid to Mr. Esplin at this time. Mr. Esplin has agreed to continue in this position at the current pay rate. 29. Resolution 2005-067 Making Appointments to the Affordable Housiny Board and the Zonin Board of Appeals. A vacancy currently exists on the Affordable Housing Board due to the resignation of Sunshine Workman. Councilmember Kastein reviewed the applications on file and is recommending Kevin Brinkman to fill the vacancy with a term to begin immediately and set to expire on December 31, 2009. A vacancy also exists on the Zoning Board of Appeals due to the resignation of Steve Remington. Councilmembers Ohlson and Weitkunat reviewed the applications on file and conducted interviews. The Council interview team is recommending Jim Pisula to fill the vacancy. The term will begin immediately and is set to expire on December 31, 2007. 146 June 7, 2005 ***END CONSENT*** Ordinances on Second Reading were read by title by City Clerk Krajicek. 7. Second Reading of Ordinance No. 053, 2005, Appropriating Prior Year Reserves in the General Fund for Cultural Development and Programming Activities and Tourism Capital. 8. Second Reading of Ordinance No. 054, 2005, Authorizing the Transfer of Appropriations from the Street Oversizing Fund to the Capital Project Fund - Timberline Road Improvements Project to Be Used for Completion of Engineering Design and Establishing Appropriations for Railroad Crossing Improvements at the Project. 9. Second Reading of Ordinance No.055,2005,Authorizingthe PurchasingAgent to Enterinto an Agreement for the Financing by Lease-Purchase of Vehicles and Equipment. 10. Second Reading of Ordinance No. 056, 2005,Amending the Zoning Map of the City of Fort Collins by Changing the Zoning Classification for that Certain Property Known as the Schrader Rezoning. 12. Second Reading of Ordinance No. 058, 2005, Authorizing an Easement for a Pedestrian Bridge for Opera Gardens Lofts. 13. A. Second Reading of Ordinance No.059,2005,Appropriating Unanticipated Revenue and Authorizing the Transfer of Appropriations Between Program Years in the Community Development Block Grant Fund. B. Second Reading of Ordinance No.060,2005,Appropriating Unanticipated Revenue in the HOME Investment Partnerships Fund. Ordinances on First Reading were read by title by City Clerk Krajicek. 14. First Reading of Ordinance No. 061, 2005, Appropriating Unanticipated Revenue in the Street Oversizing Fund and Authorizing the Transfer of Appropriations from the Street Oversizing Fund to the Capital Project Fund - Trilby and Ziegler Road Improvements Project. 15. First Reading of Ordinance No. 062, 2005, Approving the Terms of the City's Lease of Building 15, Old Town Square, Fort Collins, Colorado. 16. First Reading of Ordinance No. 063,2005,Authorizing a Deed of Easement for the Pleasant Valley Pipeline. 147 June 7, 2005 17. First Reading of Ordinance No. 064, 2005, Authorizing the Dedication of a Parcel of Land and a Permanent Public Transportation Easement to the City of Loveland on Jointly Owned City and City of Loveland Property at the Fort Collins-Loveland Municipal Airport. 18. First Reading of Ordinance No. 071,2005, Amending Chapter 2,Article 5 of the City Code Pertaining to Administrative Organization. 20. B. First Reading of Ordinance No. 065, 2005, Annexing Property Known as the Kingdom Hall Annexation to the City of Fort Collins, Colorado. C. First Reading of Ordinance No. 066,2005,Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Kingdom Hall Annexation to the City of Fort Collins, Colorado. 22. B. First Reading of Ordinance No. 067, 2005, Accepting the Abandoned Portion of State Highway 68 (Harmony Road) from Mile Post 0.00 to Mile Post 4.468 as part of the City's Street System. 33. B. First Reading of Ordinance No.068,2005,Annexing Property Known as the Sunrise Ridge Annexation to the City of Fort Collins, Colorado. C. First Reading of Ordinance No. 069, 2005,Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Sunrise Ridge Annexation to the City of Fort Collins, Colorado. 34. First Reading of Ordinance No.070,2005,Making Various Amendments to the City of Fort Collins Land Use Code. Councilmember W eitkunat made a motion,seconded by Councilmember Roy,to adopt and approve all items on the Consent Calendar. The vote on the motion was as follows:Yeas: Councilmembers Brown, Hutchinson, Kastein, Ohlson, Roy and Weitkunat. Nays: None. (Councilmember Manvel absent) THE MOTION CARRIED Consent Calendar Follow-up Councilmember Kastein spoke regarding Item #22 Items Relating to the Transfer of Ownership of Harmony Road (State Highway 68) Between College Avenue and I-25 from the Colorado Department of Transportation to the City ofFort Collins. City Manager Atteberry stated this was a"good news'item for the City and that the quality of services on Harmony Road would improve considerably. Ron Phillips, Transportation Services Director, stated the transfer would take place sometime around the end of CDOT's fiscal year on June 30. 148 June 7, 2005 Councilmember Weitkunat commented regarding Item #27 Resolution 2005-065 Approving Expenditures f om the Art in Public Places Reserve Account in the Light and Power Utility Fund to Commission an Artist to Design and Paint Murals on Transformer Cabinets Located in the Alley West of College Avenue and North ofLaurel Street. She expressed some concerns about the use of the funds for art on utility boxes in an alley. Councilmember Ohlson spoke regarding Item #15 First Reading of Ordinance No. 062, 2005, Approving the Terms of the City's Lease of Building 15, Old Town Square, Fort Collins, Colorado. He noted that this appeared to be approval of a lease that started six months ago and expressed a concern about "approving things after the fact." Staff Reports City Manager Atteberry thanked the Bohemian Foundation for its$100,000 grant to the City to cover youth fares on Transfort for 2006-2007. He also reported that 1,200 young athletes would becoming to Fort Collins on June 25 for the Colorado Hershey State Track Meet. He reported that during the track meet the City would receive an Outstanding Agency Award for efforts to promote health and fitness in Fort Collins. He also reported that Fort Collins received a prestigious award for commitment to water quality for the fifth year in a row from the Partnership for Safe Water. He stated Fort Collins was the first municipality in Colorado to receive the award for five consecutive years. He recognized Utilities General Manager Mike Smith,Jim Hibbard,and Wendy Williams for their work with the Utilities. Councilmember Reports Councilmember Weitkunat reported that the Housing Authority had received the audit report and that the organization was financially sound and in compliance with HUD requirements. She stated the Housing Authority would serve 35 fewer families this year due to funding cuts. She also reported on the first meeting of the North College Urban Renewal Authority. She also reported on the Poudre Fire Authority Board meeting and the purchase of a new fire truck. Mayor Hutchinson reported on some of the actions taken by the Poudre Fire Authority Board of Directors and the opening of Fire Station #14. Councilmember Kastein reported on the Downtown Development Authority meeting. He asked for information about the City's role with regard to the number and placement of liquor licenses in the City. City Attorney Roy stated the criteria used by the Municipal Judge to make those determinations were spelled out in the State statutes and that he would prepare additional information for the Council. Items Relating to the Sunrise Ridge Annexation and Zoning, Adopted The following is staff s memorandum on this item. 149 June 7, 2005 "EXECUTIVE SUMMARY A. Resolution 2005-068 Setting Forth Findings of Fact and Determinations Regarding the Sunrise Ridge Annexation. B. First Reading of Ordinance No. 068, 2005,Annexing Property Known as the Sunrise Ridge Annexation to the City of Fort Collins, Colorado. C. First Reading of Ordinance No. 069, 2005, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Sunrise Ridge Annexation to the City of Fort Collins, Colorado. This is a 100% voluntary annexation and zoning of a property approximately 10.34 acres in size. The site is 5101 S. Strauss Cabin Road located approximately one-halfmile south of East Harmony Road on the west side of Strauss Cabin Road. Contiguity with the existing municipal boundary is gained along the entire west boundary which is shared with the east property line of the Willow Brook Subdivision (Observatory Village). Contiguity is also gained along the entire northern boundary which is shared with the south property line of Brookfield Subdivision (Morningside Townhomes). BACKGROUND The property is located within the Growth Management Area. According to the policies and agreements between the City ofFort Collins and Larimer County contained in the Intergovernmental Agreement for the City of Fort Collins Growth Management Area ("IGA'), the City will agree to consider annexation ofproperty in the GMA when the property is eligible for annexation according to State law. The parcel gains the necessary one-sixth contiguity along the entire north and west property lines. Of the total perimeter boundary, the parcel has 48% contiguity with the City limits. This substantially exceeds the required minimum of 16.66%(one-sixth). The parcel, therefore, complies with the requirements of the IGA and is eligible for annexation. This is a 100%voluntary annexation for a property located within the Growth Management Area. The property satisfies the requirement that no less than one-sixth of the perimeter boundary be contiguous to the existing City boundary. The recommended zoning of U-E, Urban Estate, is in compliance with the City's Comprehensive Plan and Structure Plan Map. Staff recommends the parcel be placed within the Residential Neighborhood Sign District. The Initiating Resolution was considered by City Council on April 19, 2005 and approved. On May 19, 2005, the Planning and Zoning Board took two specific actions in making its recommendation to City Council: 1. The Board voted 6—0 to recommend approval of the annexation. 150 June 7, 2005 2. The Board then voted 4 — 2 to recommend the property be placed in the Urban Estate zone district. Consistency with Existing Policies: According to the policies and agreements between the City of Fort Collins and Larimer County, contained in the amended(November 21, 2000)IGA, the City will agree to consider for annexation property in the U.G.MA. when such property is eligible for annexation according to State law. According to Section 8A of the I.G.A., as amended: "It is the City's intent to annex properties within the GMA as expeditiously as possible consistent with the terms of this Agreement. Except as provided in Section 8(B), the City agrees to consider the annexation of any parcel or parcels of land located within the GMA which are eligible for voluntary annexation pursuant to the provisions of Title 31, Article 12 Colorado Revised Statutes. " The surrounding zoning and land uses are as follows: N. A-C; Existing and Developing Multi-Family(Brookfield Subdivision-marketed as Morningside Townhomes) S: FA-I (County); Existing large-lot, semi-rural single family detached residential E: FA-I (County); Vacant—Fossil Creek Reservoir Inlet Ditch W:L-M-N, Existing Single Family Attached(Willowbrook Subdivision -marketed as Observatory Village) The parcel gains the necessary one-sixth contiguity along the entire west and north property lines. Of the total perimeter boundary, the parcel has 48% contiguity with the City limits. This substantially exceeds the required minimum of16.66%(one-sixth). The parcel, therefore, complies with the requirements of the IGA and is eligible for annexation. One of the stated intents ofthe-IGA is to have urban development occur within the City in order that the provision of urban level services by the County would be minimized. This is a 100%voluntary annexation. The parcel is not an enclave. On April 19, 2005, City Council approved a Resolution which accepted the annexation petition and established that thepetition is in compliance with State statutes. Zoning: A. Planning and Zoning Board Recommendation— Urban Estate (U-E) 1. Consistency with City Plan The Planning and Zoning Board voted 4—2 to recommend that the zoning for the Sunrise Ridge Annexation be U-E, Urban Estate. This district is intended to be a setting for a 151 June 7, 2005 predominance of low-density and large-lot housing. In addition, the zone provides for the Residential Cluster Plan Development option. The main purposes of this District are to acknowledge the presence of the many existing subdivisions which have developed in these uses that function as parts of the community and to provide additional locations for similar development, typically in transitional locations between more intense urban development and rural or open lands. The requested zoning of U-E complies with the City's Structure Plan Map and the Fossil Creek Reservoir Area Plan. 2. Domino Effect Those Board members voting in favor of the U-E zone expressed a concern that allowing L- M-Nzoning would lead to a domino effect. The subjectparcel is the northern-most property ofseven existing lots that front on Strauss Cabin Road. These lots were split offfrom the larger farm approximately 25 years ago. Kechter Road forms the southern boundary. According to those voting in the majority, the same rationale for placement of the subject property into the L-M-Nzone could also logically apply to each subsequent lot to the south, and so on down the line to Kechter Road. 3. Uniform Separation Between L-M-N and U-E The majority was concerned about preserving the integrity of the north-south line that presently separates Observatory Village (City)from the existing seven lots (County). This line was established with the adoption of the Fossil Creek Sub Area Plan. The location of this separation is in alignment with the rear (west)property lines of all seven lots and is uniform and consistent. Allowing L-M-N on Sunrise Ridge would encroach across this line. 4. Piecemeal Approach The majority was concerned about a piecemeal approach resulting in one of seven lots having a zoning significantly different from the other six. If all seven lots petitioned for annexation and L-M-Nzoning, at the same time, then such a request could be considered a more rational and comprehensive approach that would possibly be viewed differently. 5. Lack of Change in Character Finally, the majority indicated that there has not been a sufficient change ofcharacter in the general area to justify an amendment to the Structure Plan Map. 6. Residential Neighborhood Sign District In addition, the P & Z Board recommends the parcel be placed within the Residential Neighborhood Sign District which was created for the purpose ofregulatingsigns for non- residential uses in certain geographic locations ofthe City. The applicants are in agreement with this designation. 152 June 7, 2005 B. Applicants'Request—Low Density Mixed-Use Neighborhood(L-M-N) L Abuts L-M-N and H-C Zones The applicants have indicated that this particular parcel is different from the other six in that its northern boundary abuts the Harmony Corridor zone district. As with Observatory Village to the west,L-M-Nzoning is a logical land use transition from the more intense land uses associated with the Harmony Corridor zone. 2. Change of Character The applicants contend that there has indeed been a change in character in the area. For example, to the north is the Morningside Townhomes. To the west are the single family homes of Observatory Village. Both residential projects exceed 5.0 dwelling units per acre. 3. Future Streets—Rock Creek Drive In addition, Observatory Village has stubbed three public streets to its east property line in anticipation of continuing east to Strauss Cabin Road. One of these streets is Rock Creek Drive. This street serves Fossil Ridge High School, Morningside Townhomes and Observatory Village. It is has been constructed as a collector roadway in accordance with the Master Street Plan and is stubbed into Sunrise Ridge. Development would trigger extension into Sunrise Ridge to intersect with Strauss Cabin Road. It appears incongruous to the applicants that a collector level street is necessary to serve Urban Estate density. 4. Isolated Strip of U-E Finally, the applicants contend that preserving a strip of Urban Estate makes little sense in that there is a vast open area,presently being mined for gravel, east of Strauss Cabin Road and down the Poudre River bluff. Since the gravel operations will ultimately cease and become restored as ponds and open space, a strip of Urban Estate will become isolated and will share little in common with its immediate surrounding area. Compliance with State Law: As mentioned, the annexation has 48%ofitsperimeter boundary contiguous with existing City limits which exceeds the required one-sixth as mandated by State law. Further, the parcel is found to have a community of interest with the City and the parcel is expected to urbanize shortly. Findings of Fact/Conclusion: In evaluating the request.for the Sunrise Ridge Annexation and Zoning, Staffmakes the following findings of fact: 153 June 7, 2005 1. The annexation qfthisparcel is consistent with thepolicies and agreements between Larimer County and the City ofFort Collins, as contained in the amended IGA. 2. The parcel meets all criteria included in State law to qualify for annexation by the City of Fort Collins. 3. The staff proposed zone district, U-E, Urban Estate, is in conformance with the City's Comprehensive Plan(Fossil Creek Reservoir Area Plan)and the City Structure Plan Map. 4. The applicants have requested the property be placed in the L-M-N,Low Density Mixed-Use Neighborhood zone district. 5. P&Z recommends the parcel be placed within the Residential Neighborhood Sign District. 6. On April 19, 2005, City Council approved the Resolution which accepted the annexation petition and determines that the petition is in compliance with State law. Planning and Zoning Board Recommendation: On March 17, 2005, the Planning and Zoning Board took the following action: 1. Voted 6— 0 to recommend annexation into the municipal boundary and inclusion into the Residential Sign District. 2. Voted 4—2 to recommend placement into the U-E, Urban Estate zone district." City Manager Atteberry introduced the agenda item. Ted Shepard,City Planner,presented background information regarding the agenda item. He stated this was a request for an annexation and zoning in compliance with the Intergovernmental Agreement with Larimer County. He stated the Planning and Zoning Board recommended annexation and zoning into the Urban Estate Zone District. He stated the site was located on Strauss Cabin Road (County Road 7)a half mile south of Harmony Road, abutting Observatory Village on the west and Morningside Townhomes on the north. He stated this was a voluntary annexation that exceeded the one-sixth contiguity requirement. He stated the Planning and Zoning Board voted 4-2 on the recommendation for Urban Estate zoning and 6-0 on the annexation. He stated the applicant would give a presentation on the request for LMN zoning. He presented visual information regarding the Structure Plan Map, which showed zoning of the parcel in the Urban Estate zone; an aerial photograph showing the area and surrounding zoning; the Fossil Creek Reservoir Area Plan and the Subarea Plan adopted in 1999 and amended shortly thereafter, which recommended Urban Estate zoning; and site shots from different perspectives. Mayor Hutchinson stated audience members would have five minutes to speak. 154 June 7, 2005 Ken Ashley, 5227 South County Road#7, showed photos of his property and noted that the area to the west was covered with houses. He stated the only land that was open and rural in character was on seven five-acre parcels south of the proposed annexation. He stated the owner of a neighboring property was "intimidated by the potential for developing" and was relocating. He stated his property would be the next "domino" if the City was to "give into this proposal." He stated he acquired his property in 1980 and that this had been a stable neighborhood that practiced "good stewardship" with the land. He expressed "consternation" about the proposed subdivision of property on the northernmost parcel consisting of 10 acres and stated this would "destroy this neighborhood." He stated the "scheme" of the developer was to request annexation and a change of zoning from FA-1 to LMN. He stated FA-1 would allow only two structures per acre and than LMN would allow as many as 64 units on the 10 acres. He stated on April 12 the City had a neighborhood meeting to discuss the Sunrise Ridge proposal and that the property owners expressed "vigorous opposition" to the developer's proposal. He stated the Planning and Zoning Board and City staff had recommended in favor of annexation because of some Intergovernmental Agreement and had recommended a zoning change from FA-1 to UE. He stated this zoning change would allow a density 10 times greater than the FA-1 zoning. He noted that the City had no zoning district suitable for large rural type lots. He stated one of the Planning and Zoning Board members (Ms. Schmidt)noted at the meeting that approval of the annexation and UE zoning would set in motion a domino effect so that the present residents would have little say in what happened to them. He stated there were several "troubling aspects" to the situation, including the fact that Smith was an applicant for the annexation and did not live on the property in question, that Smith offered to buy out a neighbor and could not come up with financing, and that Smith suggested to the neighbor that the other neighbors buy out the neighbor. He stated he wondered if the applicant was speculating that if the property was annexed and the zoning change for higher density was approved that they could sell to a"real developer." He stated the neighborhood was"being victimized by a conspiracy" made up of the Intergovernmental Agreement, the lack of an appropriate City zoning district, and the Sunrise Ridge proposal. He stated City approval of the annexation and UE zoning would ensure the end of an attractive neighborhood. He asked that the proposal be tabled. Ethel Ashley, 5227 South County Road #7, asked that the Council table the proposal until the City was able to adequately study what would actually happening. She stated there was no mandate for annexation, that City staff was developing a new zoning district designed to allow larger rural type lands within the City limits similar to the County's FA-1 zone, and that the property could be zoned T on a temporary basis. She stated 100% of the residents (nine property owners) affected by this proposal were in opposition to the proposal. She stated Observatory Village property owners adjacent to the acreages paid a premium price to face the pastoral view. She stated she spoke with Observatory Village residents who were vigorously opposed to any development that would destroy the view they enjoyed. She stated the residents and the developer differed on"values"of property. She asked that the Council allow enough time to seriously consider the human and social impacts imposed upon the present residents. She requested that the Sunrise Ridge proposal either be rejected or tabled. Pat Balliew, 5335 South County Road #7, adamantly opposed the annexation and rezoning. He stated it would destroy along established neighborhood. He stated all of the properties along County 155 June 7, 2005 Road #7 between Fossil Creek inlet ditch and County Road #36 were developed with a rural character. He stated these nine properties were developed between 1959 and 1987 (an average age of 28 years). He stated 28 years ago in 1977 the closest Fort Collins housing development was at the southeast comer ofHorsetooth and Timberline,over five miles away. He stated zoning allowing higher density development would"domino"down County Road#7 as each property would"refuse to be the buffer." He stated the City's Comprehensive Plan Land Use section stated: "Existing residential neighborhoods will be protected against development that is incompatible with community goals and needs. In-fill and redevelopment located within certain predetermined areas as defined by subarea plans will build on unique and positive qualities of the neighborhood in dynamic and creative ways which respect the character of the neighborhood." He stated the character of the neighborhood was at stake in this decision. He stated approval of the proposal would mean an "inappropriate density transition"to the existing rural lots. He stated the Fossil Creek Reservoir Plan Land Use Policy adopted by the City Council in 1998 indicated as follows: "Where a new neighborhood develops next to an existing lower density residential development,the neighborhood design and layout should complement the established patterns of buildings and outdoor spaces along the edge with no drastic and abrupt increase in the size of buildings or the intensity of building coverage." He stated the existing rural lots averaged five acres each with a single home. He stated these homes were spaced at 300-400 feet apart and that Observatory Village to the west provided a 200-foot open space stormwater retention pond that provided a reasonable transition along that edge. He stated it was unlikely that a similar transition could be provided between Sunrise Ridge and the next rural lot to the south. He stated appropriate zoning was not yet available in the City's Land Use Code. He stated approving this annexation now would start the"cascade"from FA-1 zoning to UE zoning. He stated UE zoning would allow two units per acre,which would be 10 times denser than the existing rural lots. He stated this inconsistency would lead a"greedy land developer"toward a development plan that would drive adjacent rural lot owners away and result in the loss of a pocket of open space that the City would not have to buy or maintain. He asked that the Council defer the Sunrise Ridge Annexation and rezoning until City staff could complete and gain approval for a new zoning district similar to the County FA-1 zoning. He stated with this new zoning district available and the support of a majority of the rural lot landowners that an amendment to the Fossil Creek Land Use Framework Plan should be made to change the proposed zoning from UE to the City's FA-1 equivalent. He stated this action would preserve the character of the existing rural lots and maintain the existing density transition along the edge of existing developments. ("Secretary's Note: Councilmember Manvel arrived at 7:30 p.m.) Carolyn Balliew, 5335 South County Road #7, opposed the proposed annexation and zoning. She stated County Road #7 represented the boundary between high density neighborhoods such as Observatory Village and natural space. She stated City Plan provided that the edges should reflect a transition from the development areas to the rural character of Larimer County. She stated development of a high density neighborhood would be in direct violation of the City Structure Plan and its intent and purpose and that it would also violate the parameters of the Fossil Creek Reservoir Plan. She stated there would be a domino effect if this proposal was approved and that the whole area would end up being high density development. She stated the infrastructure was not adequate for this type of development. She stated the project seemed to have funding problems and that there 156 June 7, 2005 were concerns that the project could be completed in an unattractive manner or could go bankrupt. She stated the development would impact the natural nature of the neighborhood. She stated residents of Observatory Village were also opposed to a high density development. She stated the neighborhood were "upset' that the developer was proposing such a development which would destroy the neighborhood. She asked that the decision regarding the project be put on hold until the Council could approve a zoning comparable with the County FA-1 zoning. Jason Van Vleet, speaking on behalf of his father Rick Van Vleet, former owner of 5101 South County Road #7, urged approval of the annexation. He read a letter from his father stating that if he had retained the property he would have requested annexation and LMN zoning,that the area had been"irrevocably changed"by the Observatory Village and Morningside Townhomes developments, that it would be difficult for the current property owners to market their lands and homes without rezoning approval,and that LMN was the proper zoning for the land for the good of the community. He urged approval of the request for LMN zoning. He stated UE zoning would require that the homes be"stacked"on one side next to the Stanford property and that LMN zoning would allow the homes to be spread out. Councilmember Weitkunat asked about the "stubbing" of streets and the road plan. She asked if County Road#7 would become a major street in the transportation plan and how Rock Creek Drive would fit in. Shepard stated Rock Creek Drive was a collector street and that Strauss Cabin Road would be a minor arterial. He stated it was not built to the minor arterial standard and was designated on the Master Street Plan as a future improvement (two lane arterial). He stated Rock Creek Drive was a fully constructed collector. Councilmember Weitkunat asked for a comparison with other streets. Shepard stated Willox was a minor arterial. Councilmember Weitkunat noted that Rock Creek Drive came into the middle of the site and that it was "stubbed." She asked if that meant that it would be continued. Shepard replied in the affirmative. Councilmember Weitkunat asked if Rock Creek Drive would continue through the site onto Strauss Cabin Road. Shepard replied in the affirmative. Councilmember Weitkunat asked if that would diminish the size of the site. Shepard stated the gross acreage would stay the same for density calculation purposes because the right-of-way had not yet been dedicated. He stated the future right-of-way dedication would be included in this case as part of the gross for density calculation purposes. He stated after dedication it would be "netted out' from the parcel. Councilmember Weitkunat asked for confirmation that there would not be housing wherever the road would go. Shepard stated that was correct. 157 June 7, 2005 Councilmember Weitkunat asked if this parcel was on the perimeter of the Fossil Creek Area Plan and how this would fit into the plan. Pete Wray, City Planner, stated this parcel was close to the outer edge of the Fossil Creek Area Plan study area. He stated the plan area went to I-25 and that Strauss Cabin Road was close to the outer edge. He stated the existing County FA-1 zoning was acknowledged in the Structure Plan for the area between Strauss Cabin Road and I-25. He stated there was significant support during development of the plan for recognizing existing County subdivisions in the southeast area. He stated there was a handful of existing large lot County properties within the Fossil Creek Plan area. Councilmember Weitkunat stated reference was made to some of the work done by the Planning Department on the issue of annexation and the rural character at the edges of the City. She asked for the progress being made on that work. Wray stated the Advance Planning staff was working on finalizing the language for a new zoning district called the Rural Lands District. He stated the decision to extend the Growth Management Area further south to Carpenter Road required development of a new zoning district to capture some of the existing County Airport and FA-1 zoned lands. Councilmember Weitkunat asked if there was a direct correlation between that proposed zone district and these seven parcels. Wray stated these interior County developments were not identified as part of that new zoning classification. Councilmember Weitkunat asked for confirmation that these parcels were within the Growth Management Area boundary. Wray replied in the affirmative. Councilmember Ohlson asked why this could not be delayed until work on the new FA-1 equivalent zoning district was completed. Wray stated in the Fossil Creek Plan Area and the City Plan Structure Map these existing County subdivisions were identified to maintain the large lot character. He stated the Urban Estate designation did not require to the two units per acre maximum or half acre lots. He stated there was an option to maintain the existing 5-7 acre parcels within the UE zone and an option to go to half acre lots. He stated the new Rural Lands zoning was specifically identified for the Fossil Creek Reservoir itself to further reduce residential density and other uses to protect the corridor and the Fossil Creek Reservoir. He stated there were new standards on the west side ofI-25 for reducing residential development within the quarter mile setback of I-25. He stated these seven parcels were outside of that quarter mile setback from 1-25 and that staff believed that the Urban Estate designation recognized and could maintain those large lot properties. He stated the new Rural Lands zoning would allow one unit per 10 acres or clustered residential at 1:2.29. Councilmember Ohlson asked if staff would recommend the use of the new Rural Lands district in this case if it was available. Wray stated staff would not recommend this. Councilmember Brown asked if there was a maximum of 50 units with the LMN zoning. Shepard stated the zone district allowed a maximum density of eight dwelling units per gross acre. He stated under LMN development it was rare to see such a density. 158 June 7, 2005 Councilmember Brown asked how many units would be permitted in the UE zone. Shepard stated two units per acre would be allowed with half acre lot minimums. He stated the clustered development plan scenario would also mean that the maximum was two dwelling units per acre. Councilmember Kastein asked if the zoning to the east was FA-1. Shepard replied in the affirmative. Councilmember Kastein asked if there was a FA-1 designation in the Structure Plan. Shepard replied in the affirmative. Councilmember Kastein asked if the"feathering"with UE was delineated on the Structure Plan Map. Shepard presented visual information showing the Growth Management Area boundary, the LMN and UE areas,the gravel pits east of the bluff and the subject site. He stated the Structure Plan Map included the County areas that were in the Growth Management Area. He pointed out the area recommended for UE zoning and the area further away that was suggested for inclusion in the new Rural Lands district (an area currently zoned County FA-1). Councilmember Kastein asked if the UE and FA-1 designations were separate and distinct in the Structure Plan. Shepard replied in the affirmative. Mayor Hutchinson noted that the Planning and Zoning Board had a split vote on the UE zoning recommendation. He requested a brief summary of how the UE,LMN and FA-1 equivalent zonings would apply in this case. Wray stated the Fossil Creek Plan did not include a recommendation to designate the stretch of land between I-25 and Strauss Cabin Road in any of the City zoning categories. He stated the existing County zoning was acknowledged in that area i.e.one unit per2.29 acres. He stated the Urban Estate designation was primarily in City Plan to acknowledge existing County development. He stated there was a range of lot sizes throughout Fort Collins in existing subdivision from one to two acres,up to seven acres in the Fossil Creek area, seven acre parcels off of Timberline, and mostly five acres and one parcel of about 10 acres in this particular line of parcels. He stated further to the west LMN called for a minimum of five units per acre and up to 12 for a single phase. He stated this was the sequence of density. Mayor Hutchinson asked why staff would not consider the equivalent Rural Lands zoning for this particular situation. Wray stated the City was acknowledging the existing County development pattern and recognizing an opportunity for some increased development potential. He stated FA-1 (one unit per 2.29 acres)would represent about .4 units per acre. He stated there was an option to recognize that full large lot or future development potential up to a maximum of half-acre lots. Mayor Hutchinson asked for confirmation that staff supported the UE option. Wray replied in the affirmative. He stated the new Rural Lands zoning would be considered for future zoning around the Fossil Creek Reservoir buffer area,the Carpenter Road area where the City wanted to protect the airport critical area and corridor area,the Wildflower Subdivision near Trilby and Taft,and a parcel in the northwest corner of the Growth Management Area containing existing County parcels. Mayor Hutchinson asked if this was therefore not one of the specific areas that staff felt would be appropriate for the new Rural Lands zoning. Wray stated staff did not feel that the new zoning 159 June 7, 2005 would be appropriate in this case. Greg Byrne,CPES Director,stated the County's FA-1 zoning was a 100,000 square foot lot and that those lots were often on septic tanks. He stated when property was annexed into the City it generally came onto City services. He stated UE zoning would allow the maintenance of half-acre lots and increased development potential to help offset the cost ofproviding full urban services. Mayor Hutchinson asked the City Attorney to summarize the Council's responsibilities on this agenda item. City Attorney Roy stated Resolution 2005-068 would find that the property was eligible for annexation under the State criteria. He stated the Ordinance No.068,2005 would annex the property and that Ordinance No. 069,2005 would zone the property. He noted that there would be two readings for the annexation and zoning ordinances. He stated State law permitted the annexation of a property and a delay of up to 90 days to place the property in a zone district. Mayor Hutchinson noted that he understood that the applicant wanted to make a statement. Michael Chalona, Land Images, Inc.,representing the applicant, stated the applicant was requesting LMN zoning. He presented visual information relating to the project and its surroundings. He stated the Comprehensive Plan allowed for annexation and amendments to be made to zoning. He stated there had been a change in the character of this area since the last amendment to the framework plan in 2000. He stated approval of LMN zoning would create better connectivity of streets, walks and utility extensions. He stated the Comprehensive Plan was a guide to decision making and needed to be reviewed,revised and updated on an as needed basis. He stated this was a case requiring such a change. He stated the LMN zone district was divided by an arbitrary fence line. He stated staff s report indicated that edges typically consisted of major streets, drainageways, irrigation ditches, railroads, train tracks and major physical features such as Strauss Cabin Road or the Fossil Creek inlet ditch. He stated there should be that kind of zone district definition instead of a fence line. He presented aerial images showing the character change of the area from 1999 to the present. He stated the Comprehensive Plan should be updated in this area because of the change in character. He showed an image of Observatory Village and the fence line referenced above. He stated a number of projects had been approved in the area, including Brookfield (Morningside Townhomes) and Willow Brook 2nd Filing, a higher density LMN development that would transition and buffer from the higher density Morningside development to the single-family residential development of Observatory Village. He stated there was stubbing of roads into the UE zoned projects. He showed visual information relating to the LMN zoning surrounding the project and Harmony Corridor on the north. He stated the project to the south of Kechter Road was about 50 acres and would add about 200 houses to the south of the strips of UE lots,essentially creating an enclave. He stated the major division line between the zone districts should be a physical feature rather than a fence. ("Secretary's Note:The Council took a brief recess at this point for the benefit of the stenographer.) Mayor Hutchinson noted that there was some confusion in informing the applicant about the amount of time available to speak. He stated Council would give five more minutes to Mr.Chalona to speak on behalf of the applicant. 160 June 7, 2005 Mr. Chalona stated the property south of Kechter Road was designated LMN zoning and that 200 houses would be developed. He stated there was multifamily housing to the north with zero buffer or setback and higher density LMN just to the west. He stated City staff was working on amending the Growth Management Area boundary in the Fossil Creek Plan. He stated this could be an opportunity to look at this one particular parcel. He stated it would make sense to have a minor collector(Rock Creek Drive) running through and dividing this property, with LMN zoning in the north half and Rock Creek Drive becoming the zone district divider. He stated LMN zoning would be compatible with the greater neighborhood of Morningside and Observatory Village as well as the seven lots along Strauss Cabin Road. He stated LMN would provide a greater landscape buffer, while UE zoning would mean 7-8 houses backing up to the south property line. He stated there would be a'-domino effect"with LMN zoning only if the current resident chose to sell the property. He stated LMN zoning would allow for a better profit if the current resident chose to sell. He stated realtors and developers had expressed concern that UE zoning would mean multifamily housing buildings 25 feet from the property line. He stated a petition had been presented to the Council with 48 signatures from Morningside and Observatory Village. He stated a majority of those individuals lived right next to this site and would welcome the greater benefit of the extension of Rock Creek Drive. He noted that those individuals had no objection to the annexation or to LMN zoning. He stated the immediate neighbors to the south had no objection to the annexation and zoning to LMN. He asked that the Council approve LMN zoning because of the change of character in the area since the plan was originally amended in 2000, the extension of the minor collector(Rock Creek Drive), the support of the immediate neighbor to the south, the support of neighbors of Morningside and Observatory Village, the pending amendment of the Fossil Creek Map, and the economic benefits of having new residents who would pay building permit fees and taxes. He asked for approval of the annexation and zoning to LMN. Councilmember Weitkunat made a motion, seconded by Councilmember Roy, to adopt Resolution 2005-068. The vote on the motion was as follows: Yeas: Councilmembers Brown, Hutchinson, Kastein, Manvel, Ohlson, Roy and Weitkunat. Nays: None. THE MOTION CARRIED Councilmember Roy made a motion, seconded by Councilmember Weitkunat, to adopt Ordinance No. 068, 2005 on First Reading. The vote on the motion was as follows: Yeas: Councilmembers Brown, Hutchinson, Kastein, Manvel, Ohlson, Roy and Weitkunat. Nays: None. THE MOTION CARRIED Councilmember Kastein made a motion, seconded by Councilmember Brown, to adopt Ordinance No. 069, 2005 on First Reading. Councilmember Kastein stated this would zone the property UE. He stated this would work as the Structure Plan intended to feather densities. 161 June 7, 2005 Councilmember Manvel stated he would abstain on the vote on this motion because he was not present for the entire discussion on this issue. He stated he would watch the tape of the meeting prior to Second Reading and hoped to be prepared to vote on the Ordinance at that time. Councilmember Ohlson stated he would support the motion because of the feathering aspect of the plan. The vote on the motion was as follows: Yeas: Councilmembers Brown, Hutchinson, Kastein, Ohlson, Roy and Weitkunat. Nays: None. (Councilmember Manvel abstained) THE MOTION CARRIED Ordinance No. 070, 2005, Making Various Amendments to the City of Fort Collins Land Use Code. Adopted on First Reading The following is staffs memorandum on this item. "EXECUTIVE SUMMARY Staff has identified a variety of proposed changes, additions and clarifications in the Spring biannual update of the Land Use Code. On May 19, 2005, the Planning and Zoning Board considered the proposed changes and voted 6-0 to recommend approval of the proposed changes to City Council. The Board then voted 5-1 to recommend to Council that staff be directed to reexamine the neighborhood compatibility criteria related to Small Scale Reception Centers. These actions are summarized in the attached memo. BACKGROUND The Land Use Code was first adopted in March of 1997. Subsequent revisions have been recommended on a biennial 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. Attachments include a summary of the Planning and Zoning Board's action and a summary of all the issues as well as the draft Ordinance itself. In addition, at the March 22 work session, Council requested three additional items. First, a report on Parking Flexibility is provided in response to the question on finding two specific commercial parking code standards that could be applied on a flexible basis. Second, a diagram is provided indicating how increasing the number ofdwelling units per building in the L-M-Nzone beyond the present maximum ofeight to twelve could create additional open space or larger yards. Third, more information is provided on the C-L, Limited Commercial zone district. " 162 June 7, 2005 City Manager Atteberry introduced the agenda item. Ted Shepard, City Planner, stated this was the spring 2005 Land Use Code update and clarification. He stated staff was responding to tasks assigned at the March 22 City Council Work Session. He stated the Planning and Zoning Board was asking the City Council to direct staff to take a look at the access criteria for small scale reception centers in the Urban Estate zone. He stated staff would be available to answer questions. Mayor Hutchinson stated each audience participant would have five minutes to speak. Mike Sollenberger, 3937 Harbor Walk Lane, spoke regarding the possibility of adding a land use type into the LMN zone. He stated he had recently done the Maple Hill project east of the Country Club consisting of 160 acres of LMN and that a need was found to amend the building type to allow for 12 units per building and three stories. He stated the primary reason for this change was affordability. He stated this would also be desirable from an open space point of view. He stated in this specific example that he was not asking for an increase in density and that the overall density would still be 12 dwelling units per acre. He stated the change would be to include those in 16 buildings instead of 24 buildings. He stated building a third story on a two-story structure would drop the overall cost per square foot for all of the units by 15-20+percent depending on the structure. He stated this would also add some"interest"to what could be built. He asked that Council ask staff for a study of this matter for the fall land use changes. Mark McCallam,5344 Copernicus Drive,supported the potential Code modification to increase the number of units from eight to 12 or greater within the LMN zone. He stated this change would be good for Observatory Village and the LMN zone. He stated five distinct housing types were offered in Observatory Village. He stated with the Code change there would 11 acres in the northwest corner of Observatory Village that could be used for senior housing to add diversity to the demographics of the development. He stated the proposed Code change would allow developers to get more creative. He asked that Council go forward with a Code change to allow more units per building in the LMN zone. Len McBroom,president of McBroom Company, 820 16th Street, Denver, stated Fort Collins was one of the top markets suggested for senior housing. He stated he had a new senior housing concept that did not yet exist in the City. He stated this new concept was 100% independent living that focused on "extending wellness" for independent, healthy seniors. He stated many seniors would relocate here to be near caregiver family members. He stated he would partner with Village Homes of Colorado on this new concept. He stated a market study had been completed and that a concept meeting had been held with staff. He stated staff indicated that the project was in the LMN zone across the street from the Harmony Corridor and the new Fossil Ridge High School. He stated he favored the proposed land use change to increase the number of units allowed per building in the LMN zone. He stated the proposed development would be 80 apartments in a three-story building with interior corridors, elevators, and attached and detached parking. He stated the overall density would be no more than 12 per acre for the whole community. He stated the project would create a connection between the family environment and the high school. He stated "volunteerism and 163 June 7, 2005 community service would be a huge component" of this concept. He stated the benefits to the community were a desirable new housing type, compatibility with the LMN zone once the modification was made to the existing Code, and a project that would meet a need in the City. He stated the benefit to the applicant would be a more efficient process to bring this concept to the marketplace and more efficient operation of the project. Dennis Houska, 1114 Clubview Terrace, Choice Towing, stated he was interesting in being able to add towing to the CL zone. He stated the business had to be relocated after the company's name was changed to Choice Towing because towing was no longer considered to be an extension of the business. He stated he would like the ability to run his auto repair and towing business in the CL zone. Councilmember Ohlson asked about item #686 referenced by Mr. Houska and whether something was being done with regard to the change and whether it matched what was being requested. Shepard stated the proposed change matched what was being requested by Mr. Houska and was included in the proposed change as #686. Councilmember Ohlson asked if the fall Code changes would be made in approximately six months. Shepard stated staff would begin working on the changes late in July and that the changes would ultimately be brought to the Council in November or December. Councilmember Ohlson asked if 12-unit buildings were allowed in other zones. Shepard replied in the affirmative. Councilmember Ohlson noted he did not want staff to "rush" the change to the LMN zone since changes could be made at times other than the fall changes. Shepard stated changes could be done out of sequence at times other than the spring and fall package changes. Councilmember Brown asked if there would a study presented to Council regarding the 12-plex change in the LMN zone and the impact on transportation and parking. Shepard stated each project would be responsible for a transportation impact study and providing the minimum required parking. Councilmember Weitkunat asked if staff needed direction from Council on whether to incorporate the 12-plex LMN issue in the fall change package. Shepard replied in the affirmative. Councilmember Weitkunat stated she would like staff to take a look at the issue of 12-plexes in the LMN zone for the fall Code change cycle because of affordable housing issues and the need for senior housing. She stated the Land Use Code was a"living document" that changes to reflect the needs of the community. Mayor Hutchinson asked if three or more Councilmembers wanted to provide direction for staff to look at the 12-plex issue for the fall Code changes. He stated he would support this study. 164 June 7, 2005 Councilmember Kastein stated he would support the study for the next cycle. He asked why the Council must give such direction at this point in the process. Shepard stated staff took this matter to the Planning and Zoning Board in April and the Board was not comfortable with proceeding on the matter. Councilmember Kastein stated he would support the study and that the three-story issue would have to be discussed. He stated he had questions about the process that might be a policy agenda issue. He asked what would happen if Council wanted to direct a more comprehensive look at the Land Use Code in some particular areas such as density requirements, parking requirements, distance requirements, etc. He asked if the process as currently structured would work for all of those kinds of things or whether Council would need to express an interest in a dialogue on specific areas. Shepard stated it was helpful to hear from Council directly when dealing with substantive policy changes. He stated the Land Use Code team worked on "continuous improvement" changes to the Code. Greg Byrne, CPES Director, stated if three or more members of the Council wished to direct staff to look at a specific area that it would be helpful to have input from Council on concerns to help guide staffs work. Councilmember Manvel stated the affordability aspect made this appealing. He stated he would support a review of the 12-plex LMN issue. Councilmember Roy stated he was interested in how the concept and design presented by the developers would integrate with open space features and what the architectural standard would be. He stated he was also interested in seeing schematics for the Lakewood project referenced by one of the developers (the Concordia project). Councilmember Ohlson stated he would support the 12-plex study. He noted that the eight-plexes were just added to the LMN zone with mass, scale and aesthetic conditions. He stated this would be a"quantum leap" and that he did not want to imply that a decision had already been made on the 12-plex change. He stated he was open to a study and to considering new building types for environmental reasons. He noted that "cost did not equal price" on projects and that he was not in favor of the study for affordability reasons since there was no evidence that the change would save anyone who lived there any money. He stated the issue should be looked at from an urban planning standpoint. He stated if this was brought forward that there should be very strict guidelines and high standards. City Manager Atteberry stated staff would bring back an informed recommendation that would look at other examples and additional criteria. Mayor Hutchinson asked if this should be discussed at a Work Session or whether staff had enough guidance to proceed with a study. Byrne stated he believed that there was an interplay between the issue of density mentioned by Councilmember Kastein and the 12-plex issue. He stated it could be helpful to discuss this at a Work Session before staff proceeded with its work. 165 June 7, 2005 Councilmember Weitkunat stated she would like to proceed with the decision on the Code changes that had been brought forward at this time. Mayor Hutchinson stated he understood staff would like to have a brief Work Session discussion on the issues that had been brought up. City Manager Atteberry stated the next available Work Session would not be until September. He suggested giving staff time to look at the agenda schedule. Mayor Hutchinson suggested that staff outline the process and the issues heard via e-mail. Councilmember Ohlson stated it appeared that the Council favored studying the matter provided the "bar was raised" as far as design. He suggested the staff work could proceed on the 12-plex issue separate from any discussion on density. City Manager Atteberry stated the CPES Director was indicating that it would be helpful to have a Work Session discussion because of the increased building size and how that would relate to density. He stated staff could proceed with the work without a Work Session discussion if that was Council's direction. Councilmember Roy stated this seemed to be two separate discussions: (1) the higher standard for architecture, open space tie-in and the height in the zone, and (2) density. Byrne stated staff could provide an e-mail regarding staff s understanding of the scope of the staff work. Mayor Hutchinson stated the consensus was to proceed as outlined by the CPES Director. Councilmember Weitkunat stated there was a 35-acre strip involved with the CL zone issue. She stated outdoor storage would be allowed as a permitted use in the CL zone with the Code change. She stated this implied that anyplace along the 35-acre strip could put in outdoor storage. Shepard stated outdoor storage would be a permitted use zone district wide. Councilmember Weitkunat asked if the outdoor storage would be defined as a"towing impound lot." Shepard stated a separate definition of outdoor storage was created for this zone and that there were limits so that the definition would not include auto salvage. He stated this permitted use as defined would be the only type of outdoor storage allowed in the CL zone. Councilmember Weitkunat expressed a concern that there could be a proliferation of outdoor impound lots along Riverside Drive. Shepard stated the Land Use Code would permit that. Councilmember Kastein made a motion, seconded by Councilmember Manvel,to adopt Ordinance No. 070, 2005 on First Reading. Councilmember Kastein stated he looked forward to Council's policy agenda discussion and that he would be making suggestions relating to the Land Use Code (density, parking, separation requirements) and that he would be asking for a more comprehensive outreach. He stated he supported the amendments that were before the Council at this time. 166 June 7, 2005 Mayor Hutchinson stated the policy agenda discussions would be important. He stated he would be looking for Council interest in adding some administrative flexibility to the administration of the Land Use Code. Councilmember Roy stated he would be interested in giving stakeholders a chance to provide feedback on the policy agenda. He noted that the Council would discuss the policy agenda on Monday, June 20. Councilmember Ohlson stated he would look forward to being an "alternative viewpoint" to some of the Land Use Code changes that could emerge during the policy agenda discussion. He stated the "ultimate stakeholders" were the citizens of Fort Collins. He urged the Council to proceed cautiously with changes to the Land Use Code. Mayor Hutchinson stated this Council would be discussing the policy agenda in an open session that would be televised on Monday, June 20. The vote on the motion was as follows: Yeas: Councilmembers Brown, Hutchinson, Kastein, Marvel, Ohlson, Roy and Weitkunat. Nays: None. THE MOTION CARRIED Other Business Councilmember Weitkunat made a motion,seconded by Councilmember Brown,to cancel the June 21,2005 City Council meeting due to the Colorado Municipal League Conference. The vote on the motion was as follows: Yeas:Councilmembers Brown,Hutchinson,Kastein,Manvel,Ohlson,Roy and Weitkunat. Nays: None. THE MOTION CARRIED Adjournment The meeting adjourned at 9:10 p.m. Mayor ATTEST: City Clerk 167