HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/02/2008 - CONSIDERATION AND APPROVAL OF THE MINUTES OF THE S ITEM NUMBER: 6
AGENDA ITEM SUMMARY DATE: December 2, 2008
FORT COLLINS CITY COUNCIL STAFF: Wanda Krajicek
SUBJECT
Consideration and Approval of the Minutes of the September 16, October 7, October 21 and
November 18 Regular Meetings,the October 14 and November 12,2008 Special Meetings and the
October 14 and October 28, 2008 Adjourned Meetings.
September 16, 2008
COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
Council-Manager Form of Government
Regular Meeting- 6:00 p.m.
A regular meeting of the Council of the City of Fort Collins was held on Tuesday, September 16,
2008, at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was
answered by the following Councilmembers: Brown, Hutchinson, Manvel, Ohlson,Poppaw,Roy,
and Troxell.
Staff Members Present: Atteberry, Krajicek, Roy.
Lopez Webelo Cub Scout Den 2 presented the flag ceremony.
Citizen Participation
Wanda Mayberry, 500 Tulane Drive, shared her concerns with the current voting system and she
supported alternatives to plurality voting. She requested a staff review to determine the possibility
of using one the alternatives for municipal elections.
Vivian Armendariz, 820 Merganser Drive, stated the behavior of Councilmembers during Council
meetings was distracting and unprofessional. She recommended the Council do some team building
to improve their relationships.
Jan Kok, 2006 Catkins Court, spoke in favor of improving voting methods for municipal elections.
He requested that Council review the alternatives to plurality voting.
Howard Abraham, 3362 Florida Drive, Loveland, Fort Collins/Loveland Pilots Association
President, stated a meeting was held between staff and the Pilots Association that enabled the two
groups to reach agreement about the Airport Minimum Standards.
Eric Fried, 4255 Kingsbury Drive, supported alternatives to plurality voting methods and he urged
Council to review alternative methods and consider using one of the alternatives for municipal
elections.
Monte Barry, 415 South Howes, stated he was riding his bike on the Poudre Trail and met a Fort
Collins Police car driving on the trail. He shared his concerns about motorized vehicles driving on
the bike trails and endangering bicyclists riding the trail.
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Citizen Participation Follow-up
Councilmember Ohlson asked for more information about vehicles on the bike trails. He noted Fort
Collins has a professional police force that works diligently for its citizens. City Manager Attebeny
stated there are business reasons for police to drive vehicles on trails as that could be the quickest
route to respond to a call along the trail. He would provide more information about vehicles on bike
trails.
Councilmember Manvel stated there is room for improvement to the plurality voting method
currently used and alternative voting methods could provide a solution that better reflects the
public's wishes for the outcome of an election.
Agenda Review
City Attorney Roy stated Ordinance No. 107,2008 and Ordinance No. 102,2008 have been amended
by adding a whereas clause to both ordinances that reads "whereas, City staff will assist Larimer
County in upholding the conditions for approval of Greeley's project as set forth by the Larimer
County Planning Commission on October 17, 2007, for areas within the County's jurisdiction that
are affected by the project."
CONSENT CALENDAR
6. Consideration and Approval of the Minutes of the August 19, 2008 Regular Meeting.
7. Postponement of Second Reading of Ordinance No. 064, 2008, Amending Sections 23-83
and 24-2 of the City Code Pertaining to Awnings and Canopies over Sidewalks Indefinitely
On June 3, 2008, Council considered a Code amendment to allow for different awning
overhang treatments in the downtown area. This action was precipitated by a request from
a downtown restaurateur. Council adopted Ordinance No. 064, 2008 unanimously on First
Reading,but expressed several concerns in terms of design considerations,use of materials,
signage,and historical accuracy. Council directed staff to engage the planning and historical
preservation staff to discuss these concerns prior to Second Reading. Engineering staff
postponed Second Reading until the September 16,2008, in order to meet with appropriate
staff.
Engineering staff convened a meeting of Engineering, Historical Preservation and Planning
staff to discuss the issues and to develop a game plan to move forward. It soon became
apparent that this issue has grown to be much more than a simple Code amendment. A more
complete, comprehensive analysis of downtown design standards appears to be necessary.
Staff recommends that Council postpone this item indefinitely on Second Reading,with the
proviso that the Planning,Development and Transportation staff will convene a work group
and develop a project scope and budget proposal to address Council's concerns as they relate
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to the downtown area design standards. Staff will return to Council either late 2008 or
January 2009 with a proposal.
8. Second Reading of Ordinance No. 103,2008,Adopting Minimum Standards for Commercial
Aeronautical Activities at the Fort Collins-Loveland Municipal Airport.
The Airport has not previously adopted minimum standards for commercial aeronautical
operations occurring at or around the Airport. However, the FAA recommends that all
federally funded airports adopt minimum standards. This Ordinance,unanimously adopted
on First Reading on August 19,2008,authorizes the adoption of those minimum standards.
Public comments received during First Reading at the August 19th City Council meeting
concerned changing language in Article Three,which deals with"Retail Self Service Fueling
Operator" standards. The Airport Steering Committee met on August 21 st and conducted
detailed discussions with representatives from the FNL Pilots Organization concerning their
comments about Article Three. At this meeting it was agreed by all parties present,that the
importance of approving Minimum Standards for the Airport takes precedence over
proposing changes that would further delay adoption of the Standards. At this meeting,the
Steering Committee and staff committed to meeting with all interested parties to discuss their
concerns. On September 2, 2008, such a meeting was held with a good exchange of
information and all parties agreed to continue follow-up meetings as more information is
gathered.
9. Second Reading of Ordinance No. 104.2008,Appropriating Unanticipated Grant Revenue
from the Office of National Drug Control Policy in the General Fund for the Larimer County
Drug Task Force.
This Ordinance,unanimously adopted on First Reading on September 2,2008,appropriates
grant funds received by the City for the Latimer County Drug Task Force from the Office of
National Drug Control Policy. These funds are to be used to fund the investigation of illegal
narcotics activities in Larimer County.
10. Second Reading of Ordinance No. 105, 2008,Appropriating Unanticipated Grant Revenue
in the General Fund for a Cultural Resources Survey and Authorizing the Transfer of
Matching Funds Previously Appropriated in the Advance Planning Budget.
This Ordinance,unanimously adopted on First Reading on September 2,2008,appropriates
$35,000 from the Colorado Historical Society for preparation of the Historic Context for
Post-World War II commercial and residential architecture in Fort Collins, for the period
from 1945 and 1967. A professional consulting firm will be hired to develop the historic
context on post World War II commercial and residential architecture in Fort Collins, to
conduct the intensive-level survey, and to prepare cultural resource inventory forms for 62
properties.
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11. Second Reading of Ordinance No. 106,2008,Extending the Custodial Contracts for Porter
Industries and Varsity Contractors Through December 31, 2009.
Currently,most City buildings are cleaned after normal working hours. Because of the wide
variation in facility usage by City employees and the public, janitorial companies must
provide cleaning staff on multiple shifts of various length beginning after 4:00 p.m. and
ending somewhere around 4:00 a.m. Switching to daytime cleaning will simplify the staffing
requirements for the vendors and result in various cost savings for the City. This Ordinance,
unanimously adopted on First Reading on September 2,2008,approves an extension of the
agreements with the custodial contractors for an additional year so that the day cleaning
transition can be made with existing contractors who know the buildings and will be
stakeholders in the success of the effort.
12. First Reading of Ordinance No. 107, 2008, Authorizing the Conveyance to the City of
Greeley of Permanent Waterline Easement and a Temporary Construction Easement on the
City-Owned Dry Creek Stormwater Wetland.
The City of Greeley is in the process of building a 30-mile,60-inch pipeline that will provide
water from its Bellvue water treatment plant located northwest of the City of Fort Collins to
the residents of the City of Greeley and surrounding towns.
As part of this project, the City of Greeley is constructing a portion of the new waterline
across the Dry Creek Stormwater Wetland located south of Vine Drive and east of North
Lemay Avenue. Greeley has requested a 50-foot permanent easement and a 75-foot
temporary construction easement from the Natural Areas Program. The area to be impacted
by this project consists of 0.449 acres within the permanent easement and another 0.656
within the temporary easement.
13. Postponement of Items Relating to the Adoption of the 2006 International Property
Maintenance Code(IPM09 with Local Amendments That Update the City Code Regulating
Corrective Measures Relatine to Existing Buildin¢Conditions and Rental Housing Standards
to October 7 2008.
A. Hearing and First Reading of Ordinance No. 108,2008,Amending Chapter 5,Article
II, Division 3, of the City Code for the Purpose of Adopting the 2006International
Property Maintenance Code (IPMQ9), with Amendments
B. First Reading of Ordinance No. 109,2008,Amending Chapter 5,Article VI,Division
2, of the City Code Relating to Supplemental Rental Housing Provisions.
These Ordinances address physical deterioration,health and safety conditions that affect the
well-being of neighborhoods, buildings, and residents of Fort Collins. Together, the
proposed regulatory tools will enhance the City's ability to provide the community with
improved preventative measures.
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Staff is requesting postponement of this item until October 7,2008 to allow sufficient time
for the public to review the ordinances and supporting documents.
14. Items Relating to the Annexation of the Eagle View Natural Area.
A. Resolution 2008-083 Finding Substantial Compliance and Initiating Annexation
Proceedings for the Eagle View Natural Area First Annexation.
B. Resolution 2008-084 Finding Substantial Compliance and Initiating Annexation
Proceedings for the Eagle View Natural Area Second Annexation.
The proposed Resolutions make findings that the voluntary petitions for annexation for the
Eagle View Natural Area First Annexation and the Eagle View Natural Area Second
Annexation substantially comply with the Municipal Annexation Act, determine that a
hearing should be established regarding the annexations,and directs that notices be given of
the hearings. The hearings will be held at the time of first readings of the annexation and
zoning ordinances,scheduled for October 21,2008. Not less than thirty days of prior notice
is required by State law. These annexation requests are in conformance with the State of
Colorado Revised Statutes as they relate to annexations, the City of Fort Collins
Comprehensive Plan (City Plan), the Larimer County and City of Fort Collins
Intergovernmental Agreements, the City of Fort Collins Land Use Code, and the Fossil
Creek Reservoir Area Plan. There are no issues or known controversies associated with
these annexations.
15. Resolution 2008-085 Authorizing the Lease of a Portion of the City-owned Property at 250
North Mason Street For Up to Two Years.
Since the Transit Center became operational,the City has leased an office to a company that
has provided over-the-road bus service at the Center. The current tenant is Greyhound Lines,
Inc. Greyhound's lease will expire September 30, 2008 and the company has expressed a
desire to continue leasing the premises. This service has been beneficial to the community
and staff would like to continue leasing the premises to the current tenant.
The proposed lease agreement is for the rental of approximately 190 square feet of office
space and an outdoor bicycle/storage unit. The new lease term would be for one year, with
the City having the option to renew for an additional one-year term. The annual rental
would be at least$3,800. The tenant would be required to carry commercial general liability
insurance,commercial automobile liability insurance and worker's compensation insurance.
16. Resolution 2008-086 Repealing Resolution 2008-052 and Approving the Programs and
Proiects That Will Receive Funds from the Federal Community Development Block Grant
(CDBG)and Home Investment Partnerships(HOME)Programs,the City's Human Services
Program Fund and Affordable Housing Fund.
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On June 3, 2008, the City Council passed Resolution 2008-052 that established which
programs and projects will receive funding with CDBG funds for the FY 2008 Program year
(Entitlement Grant and Program Income), which starts on October 1, 2008, and which
programs will receive funds from previous CDBG and HOME fiscal years(Reprogrammed
and Unprogrammed funds) and from the City's Human Services Program and Affordable
Housing Fund. The CDBG Commission presented a list of recommendations as to which
programs and projects should receive funding. After adoption of Resolution 2008-052,staff
discovered an error in the allocation of available HOME Community Housing Development
Organization (CHDO) funds. Staff erroneously assigned CHDO funds to the Fort Collins
Housing Authority(FCHA) instead of the Fort Collins Housing Corporation(FCHC). The
FCHC is eligible to utilize HOME CHDO funds while the FCHA is not eligible to do so.
Resolution 2008-086 corrects the errors made in Resolution 2008-052. There are no changes
to the amounts of funding to each of the applicants approved by the Council in Resolution
2008-052. The only changes made by Resolution 2008-086 to the funding allocations made
in Resolution 2008-052 are changes with regards to which funding source will be used to
fund individual projects/programs. The changes only apply to funding for affordable housing
projects/programs, funding for public service programs are not affected.
17. Resolution 2008-087 Authorizing the Purchasing Agent to Enter Into a Professional Services
Agreement With McGladrey & Pullen LLP, Certified Public Accountants, for Auditing
Services.
Article II, Section 17 of the Charter requires the Council to provide for an annual
independent audit of the financial transactions of the City. C.R.S. §29-1-603 requires"the
governing body of each local government in the state shall cause to be made an annual audit
of the financial statements of the local government for each fiscal year." In addition,a local
government that spends over$500,000 of federal financial assistance (as is the case for the
City)must have additional audit procedures performed and reports issued in accordance with
the Single Audit Act as outlined in Office of Management and Budget Circular A-133. The
City is considered to have met these requirements when a licensed firm of certified public
accountants "signs off' on the City's audit and issues the proper reports. The auditor
selection process was designed to ensure that the selected firm exceeds the minimum
requirements and with knowledge and experience in auditing similar entities.
After completion of the audit, the auditor submits an opinion on the City's financial
statements that is included in the Comprehensive Annual Financial Report (CAFR). The
report is completed by May 31 and made available for public distribution after it is printed
in June. The auditor also issues Federal Awards Reports in compliance with the Single Audit
Act and OMB Circular A-133. Upon completion,the report is sent to the appropriate federal
and state agencies and is made available for public inspection. Additionally, a report
commonly called a Management Letter is issued to the Council that provides suggestions for
improving financial related policies and procedures.
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18. Routine Easement.
A. Easement for construction and maintenance of public utilities from Ray B. and
Audrey A. Hess, to replace existing oil switch with above grade oil switch, located
at 400 Jefferson. Monetary consideration: $1155.
***END CONSENT'
Ordinances on Second Reading were read by title by City Clerk Krajicek.
8. Second Reading of Ordinance No. 103,2008,Adopting Minimum Standards for Commercial
Aeronautical Activities at the Fort Collins-Loveland Municipal Airport.
9. Second Reading of Ordinance No. 104, 2008,Appropriating Unanticipated Grant Revenue
from the Office of National Drug Control Policy in the General Fund for the Latimer County
Drug Task Force.
10. Second Reading of Ordinance No. 105, 2008,Appropriating Unanticipated Grant Revenue
in the General Fund for a Cultural Resources Survey and Authorizing the Transfer of
Matching Funds Previously Appropriated in the Advance Planning Budget.
11. Second Reading of Ordinance No. 106,2008, Extending the Custodial Contracts for Porter
Industries and Varsity Contractors Through December 31, 2009.
22. Second Reading of Ordinance No. 102,2008,Authorizing the Conveyance of Two Waterline
Easements on City Property to the City of Greeley and the East Latimer County and North
Weld County Water Districts.
Ordinances on First Reading were read by title by City Clerk Krajicek.
12. First Reading of Ordinance No. 107, 2008, Authorizing the Conveyance to the City of
Greeley of a Permanent Waterline Easement and a Temporary Construction Easement on the
City-Owned Dry Creek Stormwater Wetland.
Councilmember Ohlson made a motion, seconded by Councilmember Troxell to adopt Item#12 as
amended and approve all items on the Consent Calendar. Yeas: Brown, Hutchinson, Manvel,
Ohlson, Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
Staff Reports
City Manager Atteberry thanked Rodney Albers,Water Utility Field Operations Superintendent,for
helping a citizen who was involved in a serious bike accident.
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Councilmember Reports
Councilmember Ohlson stated the Finance Committee has reviewed the latest audit of the City and
staff has implemented the auditors' recommendations regarding keeping of financial records. The
Finance Committee discussed tax increment methodology for the Urban Renewal Authority and the
Downtown Development Authority, the 2009 budget exceptions that will be presented to Council
and refunding $18.5 million of water bonds.
Councilmember Poppaw thanked Police Sergeant Jim Burns for taking her on a ride-along and she
noted it was an eye-opening experience.
Councilmember Manvel stated the Metropolitan Planning Organization met in Severance to discuss
implementation of the State's plan to improve air quality and lower ozone levels. An
implementation plan should be in place within six months along the Front Range.
Ordinance No. 102, 2008,
Authorizing the Conveyance of Two Waterline Easements on City Property to the
City of Greeley and the East Larimer County and North Weld
County Water Districts,Adopted on Second Reading
The following is staffs memorandum on this item.
"EXECUTIVE SUMMARY
The City of Greeley, the North Weld County Water District and East Larimer County Water
Districts, (the "Districts') are in the process of acquiring the necessary easements for their
waterline transmission projects("GWET"and"NEWT')which are scheduled to begin construction
in January 2009. The City of Fort Collins Engineering Department owns a parcel of land at 1000
North College Avenue on which the City of Greeley and the Districts have requested easements for
their projects. The City property was purchased for the future intersection of the realigned East
Vine Drive and North College Avenue as shown on the Master Street Plan. In addition to the$2000
compensation, the City of Greeley has also agreed to demolish the existing building, as requested
by City staff, and reseed the ground after construction is complete. This Ordinance, unanimously
adopted on First Reading on August 19, 2008, authorizes the conveyances of the easements.
City staff will continue to assist Lorimer County to uphold the conditions set forth in the approval
of the project by the Larimer County Planning Commission on October 17, 2007 for the areas
impacted by the project lying in Larimer County's jurisdiction. "
Councilmember Roy made a motion, seconded by Councilmember Brown,to adopt Ordinance No.
102, 2008 on Second Reading.
Councilmember Troxell asked what questions had been raised regarding this easement.
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Councilmember Roy stated concerns were raised about environmentally sensitive areas that would
be disturbed by installation of the waterline.
The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvel, Ohlson,Poppaw,Roy
and Troxell. Nays: none.
THE MOTION CARRIED.
Resolution 2008-088
Authorizing the City Manager to Execute a Long-Term Airport
Access Agreement with Rocky Mountain Airport Investments,LLC
and Related Intergovernmental Agreements with Metropolitan Districts
at the Fort Collins-Loveland Municipal Airport, Adopted
The following is staff's memorandum on this item.
"FINANCIAL IMAPCT
As part of the overall proposed agreement with Rocky Mountain Airport Investments, LLC
(hereinafter the "Developer'), the Developer has agreed (specified in the attached Access
Agreement and Intergovernmental Agreement)to provide proceeds from a Metropolitan District(5
mills) to the Airport in exchange for access to the Airport for aviation related uses. The payment
from the Metropolitan District is estimated at$56,000 in the f rst year offormation to$400,000 by
year 10. The total estimated revenue to the Airport from the Metropolitan District over the first 10
years totals$2.4 million.
The Cities of Fort Collins and Loveland have been searching for new revenue streams for the
Airport that will ultimately eliminate the $60,000 to $100,000 (for each City)yearly contribution
to the Airport for operating expenses. Staffs opinion is that this is the first of several significant
steps the Airport can take in the coming 5-10 years to improve the Airport's cash flow and eliminate
the Cities'subsidy. Without the contributions of this development, it is unlikely in the short-term
thatAirportf:nances will change significantly. The use ofthe Metropolitan District is an innovative
solution to providing long-term financing to the Airport in exchange for access. Metropolitan
Districts provide stable property tax based revenue that will grow as the assessed valuation of the
Airpark grows with development.
EXECUTIVE SUMMARY
Beginning in 2007, City staff from Fort Collins and Loveland worked on a proposal by Rocky
Mountain Airport Investments, LLC (the "Developer') to develop an airpark located to the
southeast and north ofAirport, and access the airfield for limited aeronautical purposes through-
the-fence. The Developer owns 200 acres adjacent to the Fort Collins—Loveland Municipal Airport
(Airport), the property is divided into two parcels;one is identified as the north parcel and the other
is the southeast parcel.
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The Access Agreement contemplates a 50 year Airport access easement, with a 30 year extension
to permit the airpark to access the airfield from its property for limited aeronautical uses which are
defined in detail in the Agreement. The 30 year extension would occur only if the Developer
successfully acquires a Fixed Base Operator (FBO) lease with the Cities and invests an estimated
$7.0 million into improving and upgrading the FBO facilities. The current FBO facilities are in
need of significant upgrades.
In return for the access to the Airport, the Developer will create a metropolitan district that includes
the Airpark properties, and will commit 5 mills of property taxes to the Airport in exchange for
access. The payment from the Metro District satisfies the Airpark's need to provide an access fee
to the Airport. This revenue projection for the first ten years ofthe Metro Districtpayment beginning
in 2011 equals$2.4 million. Any revenue generated by the Airport is restricted to Airport uses and
cannot be returned to the owner cities per FAA regulations.
BACKGROUND
The proposedAccess Agreement provides significant benefits to the Airport and Cities byfurthering
the goal of increasing revenue to the Airport to eliminate the general subsidy that the Cities provide.
This is one ofthe most significant goals outlined by the Airport Steering Committee and is included
in the Airport's Business Plan that is being developed. The Access Agreement also contains a
provision that allows for a 30 year extension to the term if the Developer enters into an on-Airport
fixed base operator (FBO) lease with the Cities that includes the expenditure of approximately$7
million by the Developer on new FBO buildings,facilities, equipment and related infrastructure.
These improvements will greatly improve the Airport's image and amenities for pilots, airline
personnel and the travelling public. Without a significant infusion ofprivate capital into the FBO,
staff does not see any other means for making the improvements that are necessary to keeping the
Airport competitive and attractive.
There are two kinds ofdevelopment that generally impactAirports, development that takes place on
the Airportproperty(or within the fence), and those that happen adjacent to the Airport that access
the Airport through the fence. The Airport is a significant community asset that has been largely
funded through Federal funds comingfrom the Federal Aviation Administration (FAA). There are
advantages and disadvantages to either development on Airport or adjacent. On-Airport
development takes place on publically owned land and improvements (i.e., a hangar) ultimately
revert back to the Airport once the long-term lease is completed. The on-Airport lease and rate
ensures that the user is paying its fair share for accessing the Airport and its benefits.
Off-Airport developments that literally access the Airport "through the fence" (T TF) also have to
payfortheprivilegeofaccessingapublicfacility. The TTFpayments to access the Airport typically
take the form of an access fee that is charged when users come on the Airport to use facilities. The
payment to the Airportfrom an off-site user has to equal what the on-Airport user pays;this is called
"parity"
The core issue in negotiating the Access Agreement and IGA with Developer has been working to
achieve parity. This is done through the formation of the Metro District that will pay for the
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Airpark's access fees. Properties within the Metro District will contribute 5 mills to the Airport as
their fee. Periodically, the Airpark and Airport will evaluate the sufficiency of the 5 mills to ensure
thatparity is being maintained as the Airport increases its on-Airport lease rates and as the Airpark
builds out.
Financial Analysis
The Developer will form a Metro District with a 5 mill rate that will generate property tax revenue
for the Airport in exchange for paying an Airport access fee. It is assumed that the Metro District
will be in place by the beginning of 2010 and will begin making payments in the year after it is
formed. The Developer has an aggressive build-out plan for the Airpark that has been shared with
City staff. City staff is more comfortable projecting a slower build out rate for the project to ensure
that financial projections to the Airport are not over estimated.
Staff project that in 2011, the Airpark project will contribute $56,000 in revenue to the Airport,
growing to over$400,000 by 2020. This assumes that around 1.5 million square feet are developed
over this time period, or around 150,000 sq feet per year. Staff believes this is a reasonable build-
out schedule. Should the Developer successfully built out the project faster, the Airport would
receive additional revenue growth from the growth in assessed valuation and taxable property.
• Major Provisions of the Access Agreement and Intergovernmental Agreement
Term of the Agreement
The Access Agreement and the access easement granted in this Access Agreement shall terminate
fifty(50)years after the effective date of the IGA. In the event that the Developer enters into a fixed
base operator ("FBO') lease with the Cities and the Developer timely and substantially satisfies
all its obligations under that lease to build on the Airport new FBO buildings,facilities, equipment
and related infrastructure, the Agreement and the access easement granted herein shall instead
terminate eighty (80) years after the effective date of the IGA. The Developer must invest an
estimated$7 million into the FBOfacilities to secure the additional 30years on the lease. The exact
timing and amount of the investment in the FBO will be specified in the lease that has yet to be
finalized and signed.
Use of Metro District
The Developer intends to establish and record certain covenants, conditions and restrictions against
the real property that makes up the Airpark. The Developer intends to establish one or more Metro
Districts ("Districts') which shall, in part, manage the common areas of the Airpark and enforce
the Airpark Covenants, Conditions and Restrictions (CC&R's).
Access to the Airport is contingent upon the Cities' prior execution of Intergovernmental
Agreement(s), IGA, with the Districts for aircraft access and use of the Airport from the Airpark
under the terms and conditions stated in the Access Agreement. Prior to approval of the IGA the
following conditions must be met:
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• The Airpark is under actual construction.
• The construction and improvement of taxilanes connecting the Airpark and the Airport are
completed and acceptable to the Cities.
• The Metro District(s)are established in good standing and capable of imposing the 5.0 mill
levy on the Adjacent Property together with any required adjustments thereto, and are
capable ofpaying the Fee to the Cities and to pay the Cities any additional amount required
in the IGA. The Metro District(s)shall also be required to have full voter authorization to
increase the mill levy on the Adjacent Property, without the requirement of any future
election, in order to provide any increases in revenue to the Cities as necessary to maintain
compliance with the Cities'FAA grant assurances.
• The Developer grants the Cities an access easement on the Airpark taxilane for emergency
vehicles, FBO vehicles, maintenance/safety inspections, etc.
• The Airpark's CC&R's are recorded and in effect against the Airpark
• The construction of the Airport Taxiway is completed and deemed acceptable by the Cities.
• Developer agrees that no final plat shall be approved by the City ofLoveland for any portion
of land within the southeast parcel or within the north parcel of the Adjacent Property until
such time as an IGA has first been entered into by the Cities with the Metro District(s)for
either the entire southeast parcel or for the entire north parcel respectively. This restriction
on the final plat approval shall not survive beyond the expiration of this Agreement.
Payment of Airport Access Fees
In consideration of gaining access to the Airport's facilities Access Fees will be paid to the Cities
as follows:
• The Metro Districts will enter into an Intergovernmental Agreement with Cities.
• The Districts will pay to the Cities, subject to annual adjustments, an amount equal to 5.0
mills ("Fee')based on the assessed value of all taxable real property and improvements,
(excluding personal property) within the Adjacent Property.
• The Fee is intended, with annual adjustments, to provide the Airport with a source of
revenue which is equal to, or greater than, the revenue that would otherwise be provided if
the Airpark were developed upon Airport property. In addition, the Fee is intended to ensure
that the Lot Owners within the A irparkpayfees and charges to the Cities that are at parity
with those paid to the Cities by their on-Airport tenants.
• The Cities shall have the ability to close access to the Airport through the point of
ingress/egress in the event of nonpayment of the Fees due from the District(s).
Termination of the Access Agreement
The Access Agreement can be terminated for the following reasons:
• If, with regard to the southeast parcel of the Adjacent Property, all of the conditions stated
above have not been fully satisfied and an IGA for this parcel has not been entered into
within 36 months of the date of this Agreement.
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• If, with regard to the remainder of the Adjacent Property(north parcel)all of the conditions
stated above have not been fully satisfied and the IGA for this parcel has not been entered
into within 120 months of the date of the Agreement.
• If, the Developer provides written notice of termination to the Cities.
• If, the Developer does not make payments required under the terms of the Agreement and
under any IGA.
Litigation Expenses and Attorney's Fees
In the event of the default of any of the provisions of the Access Agreement or the IGA by either
party, as determined by a court, the defaulting party shall be liable to the non-defaulting parry for
the non-defaulting parry's reasonable costs oflitigation incurred by reason ofthe default, including
reasonable attorneys'fees.
Most Commercial Aeronautical Services are NOT permitted within the Adjacent Airpark
Property:
• Uses not allowed are those which are normally provided by the on-Airport FBO(s). The uses
not allowed include:
• Aircraft Line Services; aircraft, airframe and engine repair and maintenance; flight
training;aircraft rental;storage ofaviation fuels and related other services such as the sale
of air charts and miscellaneous pilots supplies.
Commercial Aeronautical uses that are allowed include the following:
• The construction of hangars/buildings that are used for the storage, servicing and
maintenance of aircraft that are used for private corporate or personal use; aircraft
research and development; aircraft manufacturing ofparts and components; assembly of
aircraft parts and components; final assembly of aircraft parts and components into
completed aircraft; flight testing associated with assembled aircraft; painting of
manufactured aircraft and parts; and air freight services.
• The Developer may not enter into a contract that prohibits any on-Airport FBO from selling
fuel to tenants of the Airpark.
• The Developer shall grant to the Cities an Avigation Easement which grants users of the
Airport the right to fly over the Airpark property and make noise, vibrations and emissions
associated with aircraft and the Airport's other activities.
Obligations of Developer:
• Taxilane construction — the Developer is responsible for paying for the taxilane
improvements that will connect the Airpark site with the Airport property.
• Security plan—the Developer must ensure there is an Airpark security plan in place that is
in full compliance with Transportation Security Administration and FAA rules and
regulations.
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• FBO Investment— to secure the longer lease term, the developer needs to acquire an on-
Airport FBO lease from the Cities and invest an estimated$7 million into new and improved
FBO facilities and amenities.
• Avigation easement on its property — the Developer shall grant the cities an Avigation
Easement to ensure that Airport operations adjacent and around the Airparkproperties are
not compromised.
• Non-compromise of FNL activities — the Developer agrees that nothing in the Access
Agreement or Intergovernmental Agreement will impact ongoing Airport operations or
implementation of long-term plans.
• Minimum Standards Compliance—the Developer agrees to abide by the Airport Minimum
Standards within the Airpark property as they currently exist or may be amended by the
Cities in the future.
• Grant assurances—In the event that the FAA notifies the Cities verbally or in writing of an
alleged violation of its grant assurances to the FAA as a result of this Agreement, or as a
result of the action or inaction of any off-Airport uses, the Developer shall fully cooperate
with the Cities to immediately rectify such violation. In the event that the FAA notifies the
Cities formally of such a violation, such as but not limited to notification by a Director's
Determination, the Cities may, in their sole discretion and without being required to appeal
any such FAA determination, terminate this Agreement and any access to the Airport
granted pursuant to this Agreement. However, if the FAA grants to the Cities a period of
time to cure the violation, the Cities agree,prior to such termination, to allow the Developer
that period of time to cure the circumstances causing the grant assurance violation.
FAA Commentary
Throughout the past 16 months the FAA has been consulted by the Cities on numerous occasions,
including in meeting with local leaders and the Colorado Congressional delegation. The FAA does
not offer an opinion on through-the-fence agreements, it only offers advisement. Staff and the
Developer have worked to address all the issues raised by FAA, including term, language on grant
assurances, relief of issues,parity between on and off Airport uses, and security provisions.
In the event a party on the Airport feels discriminated against by the uses off the Airport, there is
a formal FAA process, known as a Part 16 complaint, that would be heard within the FAA process
to determine ifsuch a complaint had merit."
City Manager Atteberry stated the agreement could bring great changes to the Fort Collins/Loveland
Airport. The Airport is an important part of the region and improving the facilities will enable major
improvements.
Mike Freeman, Chief Financial Officer, stated Loveland and Fort Collins were approached early in
2007 by Water Valley regarding development of 200 acres of property located next to the Airport
and how access to the Airport might be achieved. An access agreement and intergovernmental
agreement is proposed for Council consideration. Currently,the Airport has one"through the fence"
agreement with Triad. The proposed agreement will be located in areas on either side of the Triad
property. The agreement sets rules for how access is established from private property through the
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fence that surrounds the Airport and onto Airport property. A fee must be paid in exchange for
access to the Airport. The developer proposes creating a metro district or multiple metro districts
with 5 mills of property tax to be dedicated for Airport uses in exchange for access to the Airport.
Staff estimates that about $56,000 of income would be generated from the first four years of
payments from a metro district. About$400,000 income could be generated by the 1 Oth year with
almost$2.4 million in revenues generated over 10 years. These revenues could help eliminate the
direct subsidies the two Cities currently pay for Airport operation and help the Airport become more
self-sufficient.
Since the Airport uses both federal funds and public monies, the Federal Aviation Administration
requires that on and off-Airport users be treated equally and fairly. Parity must be reached as part
of the agreement which means the payment to the Airport from the developer as an off-site user has
to equal what the on-Airport user pays. The term of the agreement is for 50 years but, if the
developer successfully enters a fixed-base operator lease with the Cities and invests an estimated$7
million in improving facilities on Airport property,the agreement calls for an extension of 30 years,
in 10-year increments. As long as the developer is performing and meeting all the requirements of
the agreement, the renewals are at the developer's option.
Formation of a metro district is a key component of the agreement. The Airpark will create and
adopt covenants, conditions and restrictions that are typical in a metro district that will trigger the
development and execution of the intergovernmental agreement. The intergovernmental agreement
will be between the Cities and the Metro District. The Airport access is ultimately contingent on
successfully executing the intergovernmental agreement(IGA). In order for the IGA to be approved,
the Airpark must be under construction,the taxiways need to be completed,the metro districts must
be formed and in good standing, the developer must grant the Cities an access easement to the
Airpark taxilane so traffic can travel between the Airport and the development and all the covenants
of the Metro District must be recorded. The Metro District agrees to pay 5 mills and the access fee
that is paid through the Metro District is intended, with annual adjustments,to provide the Airport
with a source of revenue which is equal to, or greater than, the revenue that would otherwise be
provided if the development occurred on Airport property to provide parity. The Cities have the
ability to close the access in the event of non-payment from the Metro District. If default of any
provisions of the access agreement by either party should occur as determined by court, the
defaulting party is liable for reasonable costs of litigation, including attorney's fees.
The agreement is specific as to what commercial aeronautic activity is allowed to occur on the
private property. A fixed-base operator is not allowed off Airport property. Services related to a
fixed-base operator are to be located on Airport property.
Howard Abraham,Fort Collins/Loveland Pilots Association President, stated the vision created by
this agreement will improve the future of the Airport. He asked for the data used to determine parity
in the agreement. Inequities do exist as owners of hangars or businesses on Airport property do not
have 50-year leases. Hangars built on private property are owned into perpetuity while hangars built
on Airport property lease the land under the building and the Cities retains the building at the end
of the lease.
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Jerry Stooksberry,Airport business owner,stated the agreement offers opportunities for development
at the Airport. When a building occurs on Airport property, the Airport retains the building at the
end of the lease at zero value. He urged Council to examine this policy and change it to market
value of the building to ensure parity between development on the Airport and at the Airpark.
Jason Barton, 2600 Canton Court, supported the agreement as it will help improve the Airport and
will create many jobs and attract businesses to the area.
Rich Fisher, Airport hangar owner, asked for specifics about services that would be offered at the
off-Airport facilities and on-Airport facilities. The term of the agreement puts the on-Airport
facilities at a disadvantage as those facilities can only have a 25-year lease.
Councilmember Poppaw asked if lengthening Airport leases has been discussed to ensure parity with
the off-Airport property. Freeman stated lengthening the Airport leases is a complicated issue the
Airport Steering Committee would need to address and is not part of this agreement. "Through the
fence"agreements are different than building hangars on Airport property. The FAA has given its
approval of this agreement. As part of the agreement, the developer will make improvements on
Airport property that will revert to the Cities, once they are built. Parity involves fairness in terms
of cost of access. To build a hangar on Airport property is very different from providing fixed-base
operator services. The rates adopted at the Airport for hangar development on Airport property are
appropriate and mirror market values. City Manager Atteberry stated the difference is in millions
of dollars of investment for the off-Airport development as opposed to the development of a hangar
on Airport property.
Councilmember Ohlson asked about the disadvantages to the City if the agreement is approved.
Freeman stated compromise has been reached with the agreement. The lease term is for an extended
period of time that does not have provisions above and beyond a typical "through the fence"
agreement. The agreement does require the developer to make extensive investments on Airport
property as a condition of extending the lease past 50 years. City Atteberry noted the long term of
the lease will enable the development to move forward and improvements to be made at the Airport.
A shorter lease term would not be feasible for the amount of investment that will occur.
Councilmember Ohlson asked when the concerns of those who own businesses and hangars at the
Airport would be addressed. Freeman stated staff recognizes that the Triad agreement needs to be
renegotiated. The Triad property has not paid the fees it should and the taxiway that connects the
Airport to the development has not been maintained. Private property owners in the Triad
development have provided the funds to repair the taxiway and make it usable. The Triad users are
not currently paying any fees to access the Airport and staff will make it a priority to gain an
agreement from those users to pay access fees. The Airport Steering Committee has been asked to
examine the terms of the Master Lease Agreement, the reversion agreement and the cost of the
leases. The Steering Committee has affirmed the current standard lease agreement.
Councilmember Ohlson asked if the proposed development is located in Loveland city limits.
Freeman answered in the affirmative. City Manager Atteberry noted any future land use actions will
go through the Loveland land use process.
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Councilmember Ohlson asked ifthe proposed metro district will be commercial and industrial or will
it included some residential development. Freeman stated the proposal is for commercial and
industrial uses. Dave Gordon, Airport Manager, stated the agreement specifies that no residential
development will be allowed. The FAA does not support residential development at a"through the
fence" development.
Councilmember Brown asked for clarification of the steps that need to occur before the IGA
becomes effective. Freeman stated the steps are in place to ensure the developer is moving forward
with construction of the project before access is granted. The Airpark needs to be under
construction,the taxilanes that connect the development to the Airport must be completed,the metro
district(s) must be formed and in good standing, the developer must grant access from the Airport
to its property and the covenants in the agreement must be in place.
Councilmember Brown asked about the guarantee to the developer that the IGA will be approved,
once he begins this process. Greg Tempel, Senior Assistant Attorney, stated Council will approve
the terms of the IGA with adoption of the proposed resolution. The IGA will not be brought back
to Council for separate approval at a later date.
Councilmember Poppaw asked if the issue of the length of leases on Airport property could be
addressed after the IGA is approved. Tempel stated Council can direct the Airport Steering
Committee to review the issue of length of term of leases at the Airport as an ongoing issue.
Mayor Hutchinson stated the proposed IGA is not related to the length of leases. The Airport
Steering Committee has already spent much time discussing the issue of term length of leases at the
Airport and will continue that discussion.
Councilmember Manvel asked if the extension of the"through the fence"agreement beyond 50 years
is at the discretion of the developer,provided he is complying with all provisions in the agreement.
Freeman stated the developer will have the option of renewing the agreement for 30 years,in 10 year
increments as long as he is in good standing after 50 years. He also has to enter into a successful
lease with the Cities for the fixed-base operator and make a substantial investment,estimated at$7
million, on Airport property. City Manager Attebeny stated if the developer does not build the
fixed-base operator facility,the agreement would not be extended past 50 years. The developer must
meet the terms of the agreement and any time he is notified that he is out of compliance but does not
correct the deficits,the agreement can be voided. The longer term of the agreement is necessary as
the development includes significant initial capital outlay and commitment from the Cities was
essential for the development to move forward.
Martin Lind, Rocky Mountain Airport Investments,LLC, Windsor, stated the length of the lease is
related to the initial investment in the development. The length is essential to convince investors of
the longevity of the project. Checks and balances exist in the agreement to ensure the development
does occur and meets minimum standards. The extensions on the agreement after 50 years were
included to allow the Cities to review the provisions of the agreement and ensure that all
improvements and services were provided. Approving the agreement will enhance the Airport and
be a benefit to Northern Colorado.
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Councilmember Manvel asked if the improvements on Airport property would revert to Airport
ownership at the termination of the agreement and what would be the increase in expenses at the
Airport with these improvements.. Mr.Lind stated the improvements,totaling$7 million,will revert
to the Airport at the end of the agreement. He has a contract to buy the lease of the current fixed-
base operator on the Airport and make improvements to the operation,which is part of the$7 million
in improvements. There will be privately-owned hangars that will only be accessed to the outside
of the hangars. The only access to the Airport will be through the fixed-base operator. Freeman
stated expenses at the Airport should not greatly increase.
Councilmember Roy stated the City's policy for metro districts includes a provision that they will
not have more than a 40-year duration. He asked how the proposed development could form a metro
district that would last for 50 years or more and be in compliance with the City's policy. City
Manager Atteberry stated the metro district at the Airport will be within Loveland's jurisdiction,not
Fort Collins. The length of the agreement is a variance from typical agreements the City makes and
is designed specifically for development at the Airport.
Councilmember Roy asked for clarification of the City's metro district policy and whether it was
possible to extend the duration of a metro district. City Attorney Roy stated the Policy that was
adopted was a guideline that Council would use in reviewing metro districts that need Council
approval of service plans that will function within the City of Fort Collins. This district would not
meet those guidelines.
Councilmember Roy asked why more precise definitions of future use were not included in the
agreement. Gordon stated the language of the agreement was written to enable those not in the
aviation industry to easily understand the terms. The agreement is specific relating to the Airport
Minimum Standards and what the fixed-base operator will provide as a core business on Airport
property. The agreement does state what is and is not allowed on the Airport and off the Airport.
Councilmember Troxell made a motion, seconded by Councilmember Ohlson,to adopt Resolution
2008-088.
Councilmember Ohlson asked if the Airport was being renamed to "Airpark of the Rockies." City
Manager Atteberry stated the name of the Airport has not changed. Airpark of the Rockies is the
name currently used by the developer for his property.
Councilmember Ohlson asked if there were any environmentally sensitive habitats on or near the
developer's property. Mr. Lind stated his property does not have any environmental issues. The
2006 Airport Master Plan addresses environmental and noise abatement issues. The stormwater plan
for his development is done through the City of Loveland. The structures built on the property will
be LEED-certified.
Councilmember Manvel asked if the Airport Steering Committee had discussed the issue of
reversion and Airport leases. City Manager Atteberry stated any policy can be reconsidered but the
Committee has already spent considerable time studying these issues and has decided not to change
the policy at this time.
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Councilmembers Manvel,Poppaw and Ohlson requested the Airport Steering Committee continue
to examine the issue of reversion and length of hangar leases on Airport property as the current
policy does not offer incentives to the current business owners to make capital improvements.
Councilmember Troxell stated the Airport is a great asset to Northern Colorado and the proposed
development will greatly enhance the Airport.
Councilmember Roy stated the proposed agreement will help to move the Airport towards self-
sufficiency. A metro district seems appropriate for this development.
Councilmember Brown stated the developer has a record of success and is offering a forward-
looking plan that will benefit Northern Colorado.
Councilmember Ohlson stated the City should provide a transportation network for its citizens and
the Airport is part of that network. The financial support the City gives to the Airport is necessary.
Mayor Hutchinson stated this agreement will benefit Fort Collins,Loveland and Northern Colorado.
The vote on the motion was as follows: Yeas: Brown,Hutchinson, Manvel, Ohlson,Poppaw,Roy
and Troxell. Nays: none.
THE MOTION CARRIED.
("Secretary's note: The Council took a brief recess at this point in the meeting.)
Resolution 2008-089
Conditionally Approving the Anheuser-Busch Park and
Recreation District Service Plan,Adopted
The following is staff s memorandum on this item.
"FINANCIAL IMPACT
There is no financial impact on the City offort Collins. The proposed Anheuser-Busch Parks and
Recreation District(`District) contemplates imposing a S mill property tax, with a cap of 10 mills,
generating operations and maintenance income to the District and imposing user fees for some of
its facilities. The District boundaries contain property that, at present, is entirely owned by
Anheuser-Busch or affiliates of Anheuser-Busch, and would therefore not impose new taxes on
parties other than Anheuser-Busch or in the broader area around the District.
EXECUTIVE SUMMARY
Anheuser-Busch is proposing to create a Parks and Recreation District on approximately 18 acres
of the property immediately north of the Fort Collins brewery. The land in the District is proposed
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to consist of two uses: a wildlife habitat area, and a softball field with related facilities. A Service
Plan for the District was submitted to the City on August 4, 2008.
For the City Council to approve the proposed Service Plan for the District, certain findings of fact
must be made that are outlined in State Statutes. Staffs opinion is that this District meets the
requirements.
BACKGROUND
The proposed District is a quasi-municipal corporation that is being formed to provide active and
passive park and recreational facilities and services for the general public. The active
improvements include a ballfield,parking lot, and walking trails. The active improvements will be
available to the public on a "first-come first-serve" basis. The passive improvements consist of a
wildlife habitat and a agricultural/ecological research area. Given the environmentally sensitive
nature of the wildlife habitat, the applicant is proposing that access to the passive improvements be
restricted for research purposes and by appointment only to the general public.
A request for a District within the City limits is somewhat unusual. While the City has a policy
regarding the formation of Metropolitan Districts, it does not have a policy regarding park and
recreation districts. Special districts like a park and recreation district do differ from metropolitan
districts in that they have fewer powers. The proposed District further limits its powers as
demonstrated in the Service Plan submitted to the City.
Following is a summary of the proposed District:
Benefits to Anheuser-Busch by Creating the District:
1. Anheuser-Busch believes a District provides an additional level of legal protection should
someone get injured while using the facilities.
2. As a public entity, the District will ensure that the public facilities are cared for in a manner
that benefits the public and preserved for that purpose.
3. As a public entity, the District would be eligible to apply for grants and other funding
resources that as a private entity it is unable to access. There may also be opportunities to
partner with the other public agencies including the City to receive certain state-sponsored
grants to expand/operate the park facilities.
Summary of the Key Impacts by Creating the District:
1. The District will not issue debt• The District would have the power to assess fees, rates and
charges upon the users of the facilities as well as impose a small operational mill levy (10
mill cap). The District is proposing to impose a S mill property tax beginning in 2010 which
is expected to generate$133,000 annually to the District. The District would have no ability
to issue bonds or any other instruments of debt.
2. The District will not use Eminent Domain: The District is leaving open the option that the
City may use Eminent Domain to construct public improvements within the District, in which
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case the District and City will enter into an intergovernmental agreement concerning the use
of eminent domain.
3. The principal purpose of the District is to maintain current parks and recreation facilities:
This type of district (i.e., Parks and Recreation) is established under Title 32 of Colorado
Statutes and only provides for the construction, installation, operation and maintenance of
public park and recreation facilities. In this case, the District would only operate and
maintain existing facilities, with the ability to reconstruct or repair those improvements as
necessary over time.
4. The District may dedicate the parks and recreation facilities (called improvements in the
Service Plan) to the City, but that is not currently being proposed.
5. The District would be formed by late 2008. Ifthe Plan is approved,Anheuser-Busch will file
a petition in Larimer County District Court seeking permission to hold an organizational
election, to be done by mail, on November 4, 2008. This is when the electors of the District
will vote on several questions regarding the organization of the District. Once the election
is over, the court may issue an Order and Decree organizing the District.
6. The District will dissolve after 40 years: The District would have an initial term of20 years
then could be renewed for two ten year extensions with City Council approval (this is
consistent with the City's policy on Metropolitan Districts).
7. The District could work with the City to help develop additional park property: The District
is willing to help the City acquire property from Anheuser-Busch for a community park to
the benefit of the citizens of Fort Collins. The District also is willing to enter into an
Intergovernmental Agreement ("IGA') after it is formed to specify how this cooperative
arrangement would take place.
8. The District will file an annual report: The District is required to file an annual report with
the City Clerk not later than September 1st of each year for the year ending the preceding
December 31st.
9. The District will not apply, or allow others to apply,for any Great Outdoors Colorado or
other state,federal or local government grants without the City's consent.
Analysis of the Service Plan
City staff has reviewed the proposed Service Plan for the District and evaluated the proposal by
addressing a series of questions that are outlined with the answers below:
QL Is there a sufficient existing and projected need for the services in the area of the District?
Al. The City currently has no plans to develop a neighborhood park near the District although
a community park is planned for the future. This District would provide the neighborhood
park services the City has not planned to provide.
Q2. Are the existing services in the area of the District inadequate for present and projected
needs?
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A2. Yes, existing services in the area of the District are inadequate for present and projected
parks and recreation needs. There are no other ball fields,playgrounds, or picnic areas in
the area of the District.
Q3. Adequate services are not, or will not be available to the area through another governmental
entity(county, city or special district)within a reasonable time and at a comparable basis?
A3. The parks and recreation facilities to be provided by the District are similar to those
provided by atypical neighborhood park The County does not provide neighborhoodparks
and there are no special districts in the area to provide these services. The City of Fort
Collins does develop neighborhoodparksfor City residents, utilizingfundingfromacapital
expansion (impact) fee on new residential construction to develop these parks. A
neighborhoodparkgenerally serves a square mile residential area. The City does not intend
to develop a neighborhood park within a mile of the proposed district because this area is
not zoned for residential development. Because there won't be any homes in the area there
is no need for a neighborhood park to serve residents and there is no funding source to pay
for the park.
Q4. The proposed services and facilities are compatible with the services and facilities within
the City?
A4. Yes, the services proposed by the District are similar to those provided by a City
neighborhood park. At this time, the services are most likely to be of greatest benefit to
Anheuser-Busch employees rather than nearby home owners because at this time there are
few adjacent residences and the Anheuser-Busch employees will be in this vicinity often by
virtue of their employment nearby. These services and facilities are compatible with those
offered by the City.
Q5. The proposal is in substantial compliance with a master plan?
A5. The City's Parks and Recreation Policy Plan does not call for the development of a
neighborhood park in the area of the District but does not specifically address possible
needs in this area. The creation of the District is not inconsistent with the Plan and is in
substantial compliance with the portions of the Plan that relate to this proposal.
Q6. The proposal is in the best interests of the area to be served?
A Yes, the proposal is in the best interest of the area to be served because the services will be
enjoyed bypeople employed in the area and would likely not be available in the future absent
the creation of the District.
Q7. Does the proposed District have the financial ability to provide the services at an
economical and sufficient level of service?
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A7. The District is proposing a 5 mill property tax with the ability to increase to 10 mills(the cap
on the rate). An additional source of revenue are user fees for the use of the improvements.
Therefore, the District has sufficient financial ability to provide for the ongoing parks and
recreational services in the District boundaries.
Summary of Findings
Based on the staffreview ofthe proposed District and in assessing the criteria upon which a District
may be formed, staff recommends that the City Council conditionally approve the Service Plan
requested by the applicant. The contingency that needs to be addressed to meetfull approval is that
the District enter into an intergovernmental agreement to cooperatively work on developing a
community park and pursuing grant funds such as Great Outdoors Colorado (GOCO). "
Mike Freeman, Chief Financial Officer, stated the proposal is for a parks and recreation district on
18 acres of property located north of the Fort Collins Anheuser-Busch brewery. The land is
proposed to be a wildlife habitat area and softball field. The proposed Service Plan forms the
District. The land under consideration is both actively used as a ball park and associated parking and
the passive area is largely an environmentally sensitive area that is not open to the public and is used
primarily for research by Colorado State University. The parks and recreations district is proposed
to provide an extra level of legal protection as it will be a quasi-governmental entity and will be
eligible for governmental immunity. The district has the ability to levy a property tax to be used to
care for and maintain the assets. The district can apply for grants. The district has agreed not
compete with the City for Great Outdoors Colorado grants but the district and the City can agree to
jointly work together to obtain grant funds.
The district will have a cap on the mill levy of 10 mills. The initial levy will be 5 mills,which will
create $130,000 for operations and maintenance. The district will not use eminent domain, except
by agreement through an IGA with the City. The purpose of the district is to maintain facilities and
the Service Plan prohibits the district from issuing any debt. The formation of the district is
proposed for late 2008,through filing of a petition with Larimer County District Court. The Service
Plan dissolves the District after 40 years. The District will file an annual report with the City.
Councilmember Manvel asked if the area will be publicized as a City recreation area. Freeman
stated the area will be publicly available on a first-come, first-serve basis. Marty Heffernan,
Executive Director of CPRE, stated the facility has been open to the public, but has not been well-
publicized. The District will publicize the availability of the fields,particularly for rental. The area
has a softball field,picnic grounds, walking paths and playground.
Councilmember Ohlson asked if there were any environmentally sensitive areas on the property.
Heffernan stated some of the land west of the ballfield is designated as an environmentally sensitive
area. Anheuser-Busch does not plan to put trails in the area or allow people in that area.
Councilmember Troxell stated the Mountain Vista Golf Course and the Fort Collins soccer complex
are located near the brewery. He asked if these recreation areas would be considered as part of the
City's parks and recreation plan. Heffernan stated the Mountain Vista Golf Course is a private
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course and complements the City's golfing opportunities. The City has helped sponsor GOCO grants
for the soccer complex to help it become established and the Fort Collins Soccer Club is an excellent
partner to the Parks and Recreation program.
Councilmember Roy made a motion, seconded by Councilmember Manvel, to adopt Resolution
2008-089 as amended.
City Attorney Roy stated two changes have been made to the resolution. Additional language was
added to Section 4 which establishes the conditions under which the Council is approving the
Service Plan. The additional condition that was added addresses the possible situation where the
property may be taken off the property tax rolls if the statute requires that and it is the intent of the
parties that the City would not experience any net revenue loss. If loss of net revenue occurs,
Anheuser-Busch will be making payments in lieu of the taxes that it would become exempt from.
The second change is the addition of a new Section 5 which reads"That nothing herein is intended
to prevent, delay or interfere with the calling of an election as required by law for the organization
of the District. In the event that, subsequent to the holding of such election,the intergovernmental
agreement required in Section 4 above has not been executed prior to December 31, 2009, the
District will forthwith take all necessary steps to dissolve in the manner prescribed by law, and the
provisions of this Resolution will be of no further force and effect." This provision is being added
so the election can be held on November 4, 2008.
Heffernan noted Section 4 states the Developer and the City enter into an intergovernmental
agreement to cooperatively develop a City-owned community park . The intent is to cooperate in
the City's acquisition of property from Anheuser-Busch for the development of a community park.
It is not intended that Anheuser-Busch and the City would actually work on that development
together.
The vote on the motion was as follows: Yeas: Brown,Hutchinson, Manvel, Ohlson, Poppaw,Roy
and Troxell. Nays: none.
THE MOTION CARRIED.
Resolution 2008-081
Appointing Two Representatives to the Colorado Municipal
League Policy Committee,Adopted
The following is staffs memorandum on this item.
"EXECUTIVE SUMMARY
Appointments to the CML Policy Committee are made each fall and members serve for a one-year
period. Each member municipality ofthe League is entitled to a representative, and all cities over
100,000 are entitled to designate two representatives.
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The Policy Committee is responsible for reviewing legislative proposals and recommending to the
League Executive Board, positions of support, opposition, no position or amendment to a wide
variety of legislation affecting cities and towns. At each annual conference in June, the Policy
Committee proposes to the membership, revisions to the League's policies which guide League
positions on public policy issues affecting municipalities.
The Committee meets three or four times a year, before and during legislative sessions as well as
in May prior to the annual conference.
This Resolution appoints Councilmember and City Manager Darin
Atteberry to represent the City of Fort Collins on the Colorado Municipal League Policy
Committee. "
Councilmember Troxell noted he has been serving on the Colorado Municipal League Policy
Committee since April 2007 and he would like to continue serving on this committee.
Councilmember Poppaw made a motion, seconded by Councilmember Roy, to adopt Resolution
2008-081 and to nominate Councilmember Manvel for appointment to the Colorado Municipal
League Committee because he is on the Legislative Review Committee and the two committees are
closely related.
The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, and
Roy. Nays: Troxell.
THE MOTION CARRIED.
Other Business
Councilmember Ohlson asked that transportation/transit items and economic health and finance
issues be placed on the work session calendar every six months to inform Council of potential issues
or upcoming decisions. Other Councilmembers agreed these topics need discussion on a regular
basis.
Councilmember Roy asked for a resolution to be brought forward to raise the City's bike plan rating
to platinum.
Councilmember Ohlson noted the proposed Bike Plan was scheduled for Council consideration on
October 7, 2008 and the discussion of Fort Collins' bike rating should be held at that time. City
Manager Atteberry stated staff would provide an analysis about the steps needed to be taken to reach
platinum designation for the City's biking program and the costs associated with achieving that
rating. Council agreed to wait until October 7 to have a discussion about the steps needed to reach
platinum status.
City Manager Atteberry stated the Department of Local Affairs(DOLA)and the Governor's Energy
Office have developed a grant for local governments called the "New Energy Communities Grant."
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The City has partnered with Larimer County and the Fort Collins Housing Authority to submit a$3.2
million grant to DOLA, of which$2.0 million will be provided as a local match,which are already
anticipated expenditures. A net increase of funds will be$1.2 million, if the grant is received. The
intent of the grant is to further the goals of FortZED to implement energy efficiency measures to
make the downtown area and City and County governments greener. He asked for a motion from
Council that would show Council's support for the grant application.
Councilmember Troxell made a motion,seconded by Councilmember Poppaw,to authorize the City
Manager to apply, together with Latimer County and the Fort Collins Housing Authority, to the
"New Energy Communities Grant Program"sponsored by the Colorado Department of Local Affairs
and the Governor's Energy Office, for a grant in the amount of$1.2 million,to be matched by$2.0
million in local funds,to be used for energy efficiency,conservation and education measures focused
on downtown Fort Collins and City and County Government and Fort Collins Housing Authority
property, as well as for downtown Loveland, to further the goals of the FortZED initiative.
Councilmember Ohlson asked what steps were in place to ensure items requiring a Council vote
would be only on the published agenda and not come before Council as a last-minute item. City
Manager Atteberry stated the most effective way to prevent items from coming before Council that
are not on the published agenda is through the setting of the agenda,which is done by the Leadership
Team. This item is a grant submittal, which typically is done without Council approval and the
funds,if the grant is received,must be appropriated which will require Council action and will offer
opportunity for public input when the appropriation request comes before Council.
Mayor Hutchinson noted this item is time sensitive and needed immediate action. The motion was
made to show support for the grant submittal.
The vote on the motion was as follows: Yeas: Brown,Hutchinson, Manvel, Ohlson, Poppaw, Roy
and Troxell. Nays: none.
THE MOTION CARRIED.
Adjournment
The meeting adjourned at 9:00 p.m.
Mayor
ATTEST:
City Clerk
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October 7,2008
COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
Council-Manager Form of Government
Regular Meeting- 6:00 p.m.
A regular meeting of the Council of the City of Fort Collins was held on Tuesday,October 7,2008,
at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered
by the following Councilmembers: Brown,Hutchinson,Manvel,Ohlson,Poppaw,Roy,and Troxell.
Staff Members Present: Atteberry, Harris, Roy.
Webelo Cub Scout Pack 94, Den 1 conducted the flag ceremony.
Citizen Participation
Eric Sutherland,631 LaPorte Avenue,stated the City's municipally-owned utility is an asset for the
community and it was good to celebrate Public Power Week but more needs to be done to improve
electric production and lower the production of greenhouse gases.
Vivian Armendariz, 820 Merganser Drive,thanked Joe Olson, City Traffic Engineer, for doing an
inventory of street corners to determine if pedestrian crossing buttons are handicap-accessible and
for installing a radar-activated crossing detector on the corner of Maple and College to assist the
handicapped in crossing the street. She asked for funding to install more radar-activated street
crossings. She objected to closing City streets for the CSU Homecoming Parade.
Bruce Lockhart, 2500 East Harmony Road, did not support trash districting or recycling trash.
Carrie Gillis, 2213 Timber Creek Drive, stated Council did not have any discussion concerning
funding for transportation issues scheduled this year. Transportation funding is of great concern to
the citizens and needs to be addressed.
Citizen Participation Follow-up
Councilmember Ohlson stated transportation and economic health issues will be discussed every six
months. Transportation issues will be discussed before the end of the year. City Manager Atteberry
noted a work session has been added to the December 16 meeting for discussion of transportation
and economic issues.
Councilmember Poppaw stated Council will have a discussion on transportation when it considers
adoption of the Bicycle Plan at this meeting.
Councilmember Manvel stated a joint meeting with the Windsor Town Board will be held on
November 3 to discuss the I-25/392 interchange.
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October 7, 2008
Councilmember Roy stated the Consent Calendar on this Agenda contains two items relating to the
Mason Corridor which deal with transit, redevelopment and infrll for Fort Collins.
Councilmember Troxell stated more regional discussion on transportation issues is needed.
Agenda Review
City Manager Atteberry requested Item#17 First Reading of Ordinance No. 122, 2008, Temporarily
Suspending the Operation and Enforcement of the Land Use Code and Zoning Map Regarding the
Usage of the "Ricker Building" as an Emergency Daytime Severe Winter Weather Shelter for the
Homeless and Item#23 Resolution 2008-092 Authorizing a Revocable Permit to CGRS, Inc. to do
Environmental Testing on City Property at 220 North Howes Street be withdrawn from the Agenda.
Item#17 does not need to be considered as another site has been secured to provide daytime shelter
for the homeless. Item#23 does not need to be considered because the State is no longer requiring
the testing for contamination on City Property.
Eric Sutherland,631 LaPorte Avenue, removed Item#9 Items Relating to Utility Rates and Charges
for 2009 from the Consent Calendar.
Bruce Lockhart, 2500 East Harmony, pulled Item #19 First Reading of Ordinance No. 124, 2008,
Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands Necessary for the
Construction of Public Trail Improvements in Connection with the Mason Corridor Trail Project.
CONSENT CALENDAR
6. Consideration and Approval of the Minutes of the September 2, 2008 Regular Meeting.
7. Second Reading of Ordinance No. 107, 2008, Authorizing the Conveyance to the City of
Greeley of a Permanent Waterline Easement and a Temporary Construction Easement on the
City-Owned Dry Creek Stormwater Wetland.
The City of Greeley is in the process of building a 30-mile,60-inch pipeline that will provide
water from its Bellvue water treatment plant located northwest of the City of Fort Collins to
the residents of the City of Greeley and surrounding towns. As part of this project,the City
of Greeley is constructing a portion of the new waterline across the Dry Creek Stormwater
Wetland located south of Vine Drive and east of North Lemay Avenue. Greeley has
requested a 50-foot permanent easement and a 75-foot temporary construction easement from
the Natural Areas Program. The area to be impacted by this project consists of 0.449 acres
within the permanent easement and another 0.656 within the temporary easement. This
Ordinance, unanimously adopted on First Reading on September 16, 2008, authorizes the
conveyance of the permanent waterline easement and the temporary construction easement.
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October 7, 2008
8. First Reading of Ordinance No. 110,2008,Amendingthe City Code to Increase the Amounts
of the Capital Improvement Expansion Fees Contained in Chapter 7.5 of the Code so as to
Reflect Inflation in Associated Costs of Services.
This Ordinance increases the fee schedules for the Capital Improvement Expansion fees and
Neighborhood Parkland fee by the estimated 2008 changes in the Denver-Boulder-Greeley
Consumer Price Index ("CPI").
Costs in the Capital Improvement Expansion fees ("CIEF") Study and the fee schedule for
the Neighborhood Parkland fees were calculated using costs from 1995. The fees were last
adjusted in 2007. This Ordinance increases the CIEF and the Neighborhood Parkland fees
by the estimated 2008 increase in the CPI of 3.70%,and the Street Oversizing fees by 6.30%,
which reflects the projected increase reported in the Engineering News Record.
9. Items Relating to Utility Rates and Charges for 2009.
A. First Reading of Ordinance No. 111, 2008 Amending Chapter 26 of the City Code
Relating to Wastewater Rates and Charges.
B. First Reading of Ordinance No. 112, 2008 Amending Chapter 26 of the City Code
to Revise Electric Rates and Charges.
C. First Reading of Ordinance No. 113, 2008, Amending Chapter 26 of the City Code
to Revise Electric Development Fees and Charges.
The proposed ordinances increase wastewater rates 11%,electric rates by 2.8%on average,
and electric development fees by 5-6%. If approved,changes would be effective January 1,
2009.
10. Items Relatine to the 2009 Downtown Development Authorityget.
A. First Reading of Ordinance No. 114,2008,Appropriating Downtown Development
Authority Operating Funds and Fixing the Mill Levy for Fiscal Year 2009.
B. First Reading of Ordinance No. 115,2008,Appropriating Revenue in the Downtown
Development Authority Debt Service Fund For Payment of Debt Service for Fiscal
Year 2009.
The Downtown Development Authority Board of Directors (the `Board") adopted its
proposed budget for 2009 totaling $48,730,577 on September 11, 2008. The Board
determined the mill levy necessary to provide for payment of administrative costs incurred
by the DDA at its regular meeting of September 11, 2008. Ordinance No. 114, 2008,
appropriates the DDA and Beet Street operating funds for 2009 and sets the mill levy at 5.00
mills, unchanged since 2002 for the 2003 budget.
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Ordinance No. 115,2008,appropriates funds for 2009 DDA debt service payments from the
tax increment received by the City.
11. First Reading of Ordinance No. 116, 2008, Appropriating Prior Year Reserves and
Unanticipated Revenue in Various City Funds and Authorizing the Transfer of Appropriated
Amounts Between Funds or Projects.
The purpose of this annual "clean-up" Ordinance is to combine dedicated revenues or
reserves that need to be appropriated before the end of the year to cover the related expenses
that were not anticipated and,therefore,not included in the 2008 budget. The unanticipated
revenue is primarily from fees,charges,rents, contributions and grants that have been paid
to City departments to offset specific expenses. Prior year reserves are primarily being
appropriated for unanticipated operation expenses from reserves that are set aside for that
purpose.
This Ordinance appropriates prior year reserves and unanticipated revenue in various City
funds,and authorizes the transfer of appropriated amounts between funds. The City Charter
permits the City Council to provide by ordinance for payment of any expense from prior year
reserves. The Charter also permits the City Council to appropriate unanticipated revenue
received as a result of rate or fee increases or new revenue sources. Additionally, it
authorizes the City Council to transfer any unexpended appropriated amounts from one fund
to another upon recommendation of the City Manager, provided that the purpose for which
the transferred funds are to be expended remains unchanged;the purpose for which they were
initially appropriated no longer exists; or the proposed transfer is from a fund or capital
project account in which the amount appropriated exceeds the amount needed to accomplish
the purpose specified in the appropriation ordinance.
If these appropriations are not approved, the City will have to reduce expenditures even
though revenue and reimbursements have been received to cover those expenditures.
12. First Reading of Ordinance No. 117.2008,Appropriating Proceeds from the Issuance of City
of Fort Collins,Colorado,Water Utility Enterprise,Water Revenue Refunding Bonds,Series
2008, in the Maximum Aggregate Principal Amount of$19,000,000, in the Water Utility
Fund.
After the regular Council meeting tonight, the Board of the Water Utility Enterprise will
consider an ordinance which authorizes the issuance of City of Fort Collins Colorado,Water
Utility Enterprise, Water Revenue Refunding Bonds, Series 2008, in the Maximum
Aggregate Principal Amount of$19,000,000. The Bonds will be issued to refund,pay and
discharge all of the outstanding Water Revenue Refunding Bonds and Improvement Bonds,
Series 1998.
The City will be paying off higher cost bonds with new bonds that will have lower interest
rates. The passage of Amendment 1 (the TABOR Amendment) by the Colorado voters in
1992, required the City to form enterprises in order for its utilities to be able to issue
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municipal bonds without an election. Since that time,all utility bonds have been issued by
the appropriate utility enterprise. However, the City Charter grants only the Council the
power to appropriate the funds. Therefore,this action by the Council is necessary in order
to appropriate the bond proceeds for the Water Utility. Authorizing the issuance of the bonds
and appropriating the proceeds are both necessary to complete the bond transaction. The
final rates will be determined by selling the bonds at a competitive sale later this year.
13. Items Relating to the Mason Corridor/MAX Bus Rapid Transit Project-Phase 1.
A. Resolution 2008-090 Authorizing the Mayor to Execute an Intergovernmental
Agreement Between the City of Fort Collins and the Colorado Department of
Transportation for Funding of Phase 1 Improvements of the Mason Corridor/MAX
Bus Rapid Transit Project.
B. First Reading of Ordinance No. 118, 2008, Appropriating the Funds from the
Downtown Development Authority and Unanticipated Colorado Department of
Transportation SB-1 Funding into the Mason Corridor Capital Project Account.
These funding contracts between the City and CDOT and the City and DDA will allow for
work to advance on the Phase 1 of the Mason Corridor/MAX Bus Rapid Transit (BRT)
project. This funding will be used for final design/engineering, construction, and vehicle
acquisition.The design/engineering and construction improvements will include all elements
of the MAX BRT service, including passenger stations, pedestrian access improvements,
traffic signalization related to the BRT operations, signage/wayfinding, and converting
Mason and Howes streets to two-way operation. The MAX BRT vehicles will be 60-foot
articulated transit vehicles,designed to allow for low-floor boarding and will use alternative
fuel. Subsequent funding contracts will be submitted to the City from CDOT and the Federal
Transit Administration later this year and in 2009 to provide funding for the full corridor
improvements from the Downtown Transit Center to the new South Transit Center,south of
Harmony Road.
14. First Reading of Ordinance No. 119,2008,Appropriating Unanticipated Grant Revenues in
the General Fund for the Restorative Justice Program and Authorizing the Transfer of
Matching Funds Previously Appropriated in the Police Services Operating Budget.
A grant in the amount of$19,513 has been received from the Colorado Division of Criminal
Justice (DCJ) for salaries associated with the continued operation of Restorative Justice
Services. A$2,168 cash match is required and will be met by appropriating funds from the
police operating budget. Restorative Justice is an alternative method of holding a young
offender accountable by facilitating a meeting with the young offender, the victim/victim
representative and members of the community to determine the harm done by the crime,and
what should be done to repair the harm. By identifying and repairing the harm caused by the
crime,criminal justice officials are optimistic repeat offenses by these youth will be reduced
and the needs and concerns of the victims and affected community will be addressed.
Restorative Justice Services includes the RESTORE Program for shoplifting offenses, and
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October 7, 2008
Restorative Justice Conferencing Program (RJCP) for all other offenses. The grant period
is from October 1, 2008 to September 30, 2009.
15. First Reading of Ordinance No 120 2008 Amending Section 2.9.3(B)of the Land Use Code
Modifying the Procedure for Initiating a Text Amendment.
There are two sub-sections to Section 2.9.3. The first, (A), describes the procedure for
amending the zoning map and the second,(B),describes the procedure for amending the text.
Presently, amending the text of the Land Use Code may be proposed by City Council, the
Planning and Zoning Board, the Director, any resident of the city, or any owner or person
having an interest in land located within the municipal boundaries of the city.
The change would delete the ability to propose a text amendment to the Land Use Code by
any resident of the city,or any owner or person having an interest in land located within the
municipal boundaries of the city.
Residents and owners are not prohibited from proposing text amendments. Instead of a
direct application, however, a request would be subject to established City Council policy
which requires that proposed changes would need to be supported by the City Manager,the
Leadership Team, or three Councilmembers.
16. First Reading of Ordinance No 121 2008 Amending Section 2-119 of the City Code
Pertaining to the Functions of the Building Review Board.
This Ordinance will amend Section 2-119 of the City Code to update the functions of the
Building Review Board. These provisions include:
• Authorizing the Building Review Board to consider a contractor license applicant's
alternative qualifications;
• Adding a new provision to formally authorize the Building Review Board to serve
as the"board of appeals"for appeals related to International Property Maintenance
Code (IPMQ and Supplemental Rental Housing Provisions; and
• Adding a new provision to authorize the Building Review Board to advise City
Council on policy matters related to functions of the Board.
17. First Reading of Ordinance No 122 2008 Temporarily Suspending the Operation and
Enforcement of the Land Use Code and Zoning Map Regarding the Usage of the "Ricker
Building" as an Emergency Daytime Severe Winter Weather Shelter for the Homeless.
Local health and human service agencies have asked the City to assist in providing a facility
to house a temporary emergency daytime shelter for the homeless in the event of severe
winter weather.
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18. First Readine of Ordinance No. 123, 2008 Authorizing the Conveyance to the Platte River
Power Authority ofan Easement and Right-of-Way and a Temporary Construction Easement
on the City-Owned Fossil Creek Wetlands Natural Area.
Platte River Power Authority is constructing a new transmission line in southeast Fort
Collins to support a request from the City for a new substation at Trilby Road and Portner
Road. The new transmission line, referred to as the Harmony-Portner-Boyd 230kV
transmission line, will cross a portion of the Fossil Creek Wetlands Natural Area. The
transmission line will be constructed using a direct drilling procedure that will not result in
any surface disturbance within the permanent easement. A temporary easement consisting
of 0.493 acres will be used to stage and operate the drilling equipment. Surface disturbance
and subsequent restoration activities will occur within the temporary easement.
19. First Reading of Ordinance No. 124,2008,Authorizingthe a Acquisition by Eminent Domain
Proceedines of Certain Lands Necessary for the Construction of Public Trail Improvements
in Connection with the Mason Corridor Trail Project.
The final phase of the Mason Trail project provides a critical connection between Colorado
State University, the existing Mason Trail between Harmony Road and the Spring Creek
Trail, and the City's community wide trail system (through connections with the Spring
Creek Trail and the Fossil Creek Trail). Due to the importance of this connection, staff is
seeking authorization to use the eminent domain process to acquire the necessary property
interests in the event that good faith negotiations are not successful; staff is hopeful and
optimistic that the private property acquisition will be accomplished by negotiated
agreement.
20. Hearing and First Reading of Ordinance No. 125, 2008, Amending the Zoning Map of the
City by Changing the Zoning Classification for that Certain Property Known as the Vineyard
Rezoning.
This is a request to rezone an 8.68 acre parcel located on the west side of South College
Avenue immediately north of Crestridge Drive. The current zoning district designation is
Community Commercial (CC)District. The applicant proposes zoning of Commercial (C)
District. A Structure Plan amendment is not necessary for this rezoning request. There are
no perceived issues or known controversies with this rezoning request.
21. First Reading of Ordinance No. 126, 2008,Authoriziniz the Purchasing Al?ent to Enter into
an Extension of the City Park Nine Golf Course Golf Services and Concession Agreement
for up to Five Additional Years.
The existing Agreement with City Park Nine Golf Course Golf Professional/Concessionaire,
DMAC Golf,LLC,as owned,operated,and assigned by David R. McCleave,PGA,expires
on December 31, 2008. As per terms in the RFP and the Agreement, the Agreement may
be extended beyond the original five(5)year term if performance is satisfactory, subject to
City Council approval and the negotiation of a mutually acceptable extension agreement for
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up to five (5) additional years. This is contingent on staff recommendation, public
input/comment, a recommendation from the Golf Board, and final approval by the City
Council. A mutually acceptable Extension Agreement has been negotiated,and both the staff
and the Golf Board fully recommend approval by Council.
22. Resolution 2008-091 Authorizing the Initiation of Exclusion Proceedings of Annexed
Properties Within the Territory of the Poudre Valley Fire Protection District.
This resolution authorizes the City Attorney to file a Petition in Larimer County District
Court to exclude properties annexed into the City in 2007 from the Poudre Valley Fire
Protection District in accordance with state law and to allow for the provision of fire
protection services to such properties by the Poudre Fire Authority.
23. Resolution 2008-092 Authorizing_a Revocable Permit to CGRS, Inc. to do Environmental
Testingon n City Property at 220 North Howes Street.
225 Maple Street,LLC,owns the property located at 225 Maple Street which is the location
for Haiston Oil Company, Incorporated. Haiston Oil Company has relocated its business
from this location, and has removed its petroleum storage tanks from the site. In order to
complete the regulatory process regarding the storage tanks,an environmental investigation
is required. As part of the environmental investigation, Haiston Oil's consultant, CGRS,
Inc.,has requested a revocable permit to collect soil samples on City-owned property at 220
North Howes Street,which is adjacent to its property. CGRS,Inc.anticipates the soil boring
process will take approximately 2 to 3 hours. CGRS may also need to do testing within the
building at 220 North Howes,or in the public right-of-way adjacent to 220 North Howes and
225 Maple Street. All costs associated with the soil boring and tests will be the
responsibility of CGRS,Inc. All lab results from the tests will be provided to the City at no
cost. The City is in negotiations to acquire 225 Maple Street.
24. Resolution 2008- 093 Authorizing the Mayor to Execute an Intergovernmental Agreement
Between the City and the Colorado Department of Transportation Whereby the City Will
Receive a "CMAO" Grant and an Enhancement Program Grant for the North College
Avenue/US287 Improvement Project.
This Resolution authorizes the Mayor to enter into an agreement with CDOT for the City to
receive CMAQ and Enhancement grant funding for improvements along North College
Avenue/US287 Avenue from the Poudre River north to the Hickory/Conifer intersection.
These grants will help fund the planning,design/engineering,rights-of-way acquisition,and
construction costs for this project. In particular, the CMAQ grant funds will target bicycle
and pedestrian improvements and the Enhancement Funds will target the streetscape
improvements along the corridor. This project will be designed and built in collaboration
with the City's North College Improvement Project and Pedestrian Plan improvements
funded via the voter-approved "Building on Basics" 1/4 cent sales tax initiative.
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***END CONSENT'
Ordinances on Second Reading were read by title by Chief Deputy City Clerk Harris.
7. Second Reading of Ordinance No. 107, 2008, Authorizing the Conveyance to the City of
Greeley of Permanent Waterline Easement and a Temporary Construction Easement on the
City-Owned Dry Creek Stormwater Wetland.
Ordinances on First Reading were read by title by Chief Deputy City Clerk Harris.
8. First Reading of Ordinance No. 110,2008,Amending the City Code to Increase the Amounts
of the Capital Improvement Expansion Fees Contained in Chapter 7.5 of the Code so as to
Reflect Inflation in Associated Costs of Services.
9. Items Relating to Utility Rates and Charges for 2009.
A. First Reading of Ordinance No. 111, 2008 Amending Chapter 26 of the City Code
Relating to Wastewater Rates and Charges.
B. First Reading of Ordinance No. 112, 2008 Amending Chapter 26 of the City Code
to Revise Electric Rates and Charges.
C. First Reading of Ordinance No. 113, 2008, Amending Chapter 26 of the City Code
to Revise Electric Development Fees and Charges.
10. Items Relating to the 2009 Downtown Development Authority Budget.
A. First Reading of Ordinance No. 114,2008,Appropriating Downtown Development
Authority Operating Funds and Fixing the Mill Levy for Fiscal Year 2009.
B. First Reading of Ordinance No. 115,2008,Appropriating Revenue in the Downtown
Development Authority Debt Service Fund For Payment of Debt Service for Fiscal
Year 2009.
11. First Reading of Ordinance No. 116, 2008, Appropriating Prior Year Reserves and
Unanticipated Revenue in Various City Funds and Authorizing the Transfer of Appropriated
Amounts Between Funds or Projects.
12. First Reading of Ordinance No. 117,2008,Appropriating Proceeds from the Issuance of City
of Fort Collins,Colorado,Water Utility Enterprise,Water Revenue Refunding Bonds,Series
2008, in the Maximum Aggregate Principal Amount of$19,000,000, in the Water Utility
Fund.
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13. First Reading of Ordinance No. 118, 2008, Appropriating the Funds from the Downtown
Development Authority and Unanticipated Colorado Department of Transportation SB-1
Funding into the Mason Corridor Capital Project Account.
14. First Reading of Ordinance No. 119,2008,Appropriating Unanticipated Grant Revenues in
the General Fund for the Restorative Justice Program and Authorizing the Transfer of
Matching Funds Previously Appropriated in the Police Services Operating Budget.
15. First Reading of Ordinance No. 120,2008,Amending Section 2.9.3(B)ofthe Land Use Code
Modifying the Procedure for Initiating a Text Amendment.
16. First Reading of Ordinance No. 121, 2008, Amending Section 2-119 of the City Code
Pertaining to the Functions of the Building Review Board.
18. First Reading of Ordinance No. 123, 2008 Authorizing the Conveyance to the Platte River
Power Authority of an Easement and Right-of-Way and a Temporary Construction Easement
on the City-Owned Fossil Creek Wetlands Natural Area.
19. First Reading of Ordinance No. 124,2008,Authorizing the Acquisition by Eminent Domain
Proceedings of Certain Lands Necessary for the Construction of Public Trail Improvements
in Connection with the Mason Corridor Trail Project.
20. Hearing and First Reading of Ordinance No. 125, 2008, Amending the Zoning Map of the
City by Changing the Zoning Classification for that Certain Property Known as the Vineyard
Rezoning.
21. First Reading of Ordinance No. 126,2008, Authorizing the Purchasing Agent to Enter into
an Extension of the City Park Nine Golf Course Golf Services and Concession Agreement
for up to Five Additional Years.
28. Items Relating to the Adoption of the 2006 International Property Maintenance Code
(IPMC)® with Local Amendments Relating to Existing Building Conditions and Rental
Housing Standards.
A. Hearing and First Reading of Ordinance No. 108,2008,Amending Chapter 5,Article
II, Division 3, of the City Code for the Purpose of Adopting the 2006 International
Property Maintenance Code (IPMC)®, with Amendments.
B. First Reading of OrdinanceNo. 109,2008,Amending Chapter 5,Article VI,Division
2, of the City Code Relating to Supplemental Rental Housing Provisions.
30. First Reading of Ordinance No. 127, 2008, Being the Annual Appropriation Ordinance
Relating to the Annual Appropriations for the Fiscal Year 2009; Amending the Budget for
the Fiscal Year Beginning January 1, 2009, and Ending December 31,2009; and Fixing the
Mill Levy for Fiscal Year 2009.
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Councilmember Manvel made a motion,seconded by Councilmember Poppaw,to adopt and approve
all items not withdrawn from the Consent Calendar. Yeas: Brown, Hutchinson, Manvel, Ohlson,
Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
Consent Calendar Follow-up
Councilmember Manvel noted Item#24 Resolution 2008-093 Authorizing the Mayor to Execute an
Intergovernmental Agreement Between the City and the Colorado Department of Transportation
Whereby the City Will Receive a "CMAQ" Grant and an Enhancement Program Grant for the
North College Avenue/US287Improvement Project provides funds to make improvements to North
College Avenue.
Councilmember Ohlson expressed concerns about the Building Review Board's handling ofrequests
for contractor licenses. The Board is to ensure that licenses are issued only to qualified contractors
that meet all requirements. A variance to the requirements should not be granted to enable a
contractor to gain experience as a contractor. He asked for clarification of the functions of the
Building Review Board to ensure variances for license requirements are handled correctly. He
requested a map that shows where Platte River Power Authority transmission lines are located and
for staff to ensure that any future transmission lines be placed underground. He asked for the City
to consider having its own environmental testing for contaminants done on City property even when
a private citizen is required to have testing done on neighboring properties.
Staff Reports
City Manager Atteberry stated the CDBG/HOME Program has received an Excellence in
Government award from the Volunteers of America, Colorado Branch.
Mark Jackson, Transportation Group Director,noted the City's Deicing Storage Materials Facility
has received national recognition for excellence in design, best practices and environmental
sustainability practices. He stated the City has been awarded Gold Level Bike-Friendly Community
status from the League of American Bicyclists.
City Manager Atteberry stated a$550,000 grant has been received from Great Outdoors Colorado
for Red Mountain and Soapstone Natural Area for trail development.
Councilmember Reports
Mayor Hutchinson attended the Colorado Municipal League,District 2 meeting to discuss regional
issues with other Larimer County and Weld County officials. He was elected President and City
Clerk Krajicek was elected Secretary/Treasurer of District 2.
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Items Relating to the Adoption of the 2006 International Property
Maintenance Code (IPMC)®with Local Amendments Relating to Existing
Building Conditions and Rental Housing Standards, Adopted on First Reading
The following is staff s memorandum on this item.
"FINANCL4L IMPACT
Costs to the City to enforce the codes are anticipated to be covered by the current operating budget
for the Neighborhood and Building Services Department(NBS).
Property owners will have expenses related to correcting violations and complying with the
codes/standards.
EXECUTIVE SUMMARY
A. Hearing and First Reading of Ordinance No. 108, 2008, Amending Chapter 5, Article II,
Division 3, of the City Code for the Purpose ofAdopting the 2006International Property
Maintenance Code (IPMC)*, with Amendments.
B. First Reading of Ordinance No. 109, 2008, Amending Chapter 5, Article VI, Division 2, of
the City Code Relating to Supplemental Rental Housing Provisions.
These Ordinances address physical deterioration and health and safety conditions that affect the
well-being of neighborhoods, buildings, and residents of Fort Collins. Together, the proposed
regulatory tools will enhance the City's ability to provide the community with improvedpreventative
measures.
BACKGROUND
Discussions emerged in 2005 among concerned citizens, community interest groups and City
Council members about the physical condition ofbuildings, rental standards, and exterior premises
nuisance codes. Revisions to occupancy limits and other neighborhood quality-of-life code changes
precipitated the discussions. Concerns have been directed at physically neglected properties and
rental housing impacts that may contribute to the deterioration of neighborhoods. Property
maintenance conditions and related complaints that are not addressed by existing code provisions
were the focus.
Current Obsolete Codes
The current adopted model code (1976 Uniform Code for the Abatement of Dangerous Buildings)
that addresses dangerous buildings is obsolete. The current Rental Housing Standards of 1982 are
inadequate to address today's rental housing needs.
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October 7, 2008
Solution
Staff proposes to adopt the IPMC with local amendments as a tool to replace the City's obsolete
codes relating to existing building conditions and rental housing. The City has already adopted the
International Code series for new construction. The IPMC is one of the International Codes that
applies corrective measures to existing substandard buildings and premises. Neighboring Front
Range and metro communities such as Greeley, Loveland, Longmont, Northglenn, Wheat Ridge,
Arvada and Commerce City have already adopted the IPMC and local amendments pertinent to their
needs.
Public Outreach
Staff engaged in extensive public outreach seeking recommendations and input for the proposed
IPMC with local amendments and Supplemental Rental Housing Provisions. This outreach
included:
• City boards and commissions;
• the real estate and rental industry;
• neighborhood groups and individual citizens; and,
• City Council Work Sessions -September 2006, August 2007, and March 2008.
Staffpresented and discussed at length the proposed 2006International Property Maintenance Code
(IPMC)with local amendments on April 24, 2008, June 26, 2008, July 9, 2008, July 31, 2008 and
August 28, 2008 with the Building Review Board (the appellate board for building code related
matters). At these five meetings, Board members provided concerns and input for the proposed
IPMC. On August 28, 2008, the Board also discussed the proposed Supplemental Rental Housing
Provisions specifically related to existing undocumented rental housing units. Board of Realtors
representatives, Eric Kronwall and Michelle Jacobs, attended the August 28, 2008 Building Review
Board meetings and offered their recommendation and input.
Direction from Council
(See March 11, 2008 Work Session Summary-Attachment 1)
Below are Council's recent direction and/or questions. Staff responses are in italics.
1. Clarify vacant versus abandoned and "Vacant Building Notification"process (the Vacant
Building Notification process has been deleted per staff, Building Review Board and Board
of Realtor recommendations. The definition of"abandoned" is included in the Ordinance.
2. Severe weathering of exterior building/structure surfaces (walls, etc) because of
deteriorated protective coating (paint) and severely damaged roofing allowing water into
the building are covered by this proposed Code and should be eliminated from the proposed
Exterior Nuisance Codes (Has been eliminated from the Exterior Nuisance Codes.)
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3. Clarify how the treatment of stagnant water on private property under the new proposed
code provision compares to how similar conditions on City property are addressed. The
City treats stagnant water on City property and mitigates it either mechanically or
chemically. With West Nile a concern, city staff is extremely active in the maintenance
program to eliminate or reduce any standing water on City facilities. In addition, most of
the Storm Water sites that have standing water by design (wetlands) are monitored by
Colorado Mosquito Control (CMC).
4. Staff, including the City Attorney's Office, is to further develop the process to address
existing "non-recorded"housing/rooming unitsfor which no documentation or evidence can
be provided establishing their lawful creation (Included in Ordinance No. 109, 2008).
STAFF RECOMMENDATION
Staffhas incorporated Council direction and inputfrom public outreach and recommends adoption
of the 20061nternational Property Maintenance Code (IPMC)®with local amendments, referred
to as the IPMC, which applies to all existing buildings EXCEPT owner-occupied single family
dwellings with no rooms for rent and which are NOT "dangerous, " "unfit to occupy" or
"unlawful. "
Staffrecommends adoption ofthe proposed 2006IPMC with local amendments to protect,promote
and enhance the physical and economic health, safety, welfare and sustainability of the community
with respect to existing buildings, equipment and premises that are determined to be one or more
of the following:
• Substandard Structures or equipment: A substandard structure is one that may pose a risk
to the life, health or safety of the occupants or the public, even though it does not presently
constitute a danger.
• Unfitfor Human Occupancy: A structure is unfit for human occupancy whenever the code
official finds that it is in disrepair or lacks maintenance, is unsanitary, vermin or rat
infested, contains filth and contamination, or lacks ventilation, illumination, sanitary or
heating facilities.
• Dangerous Structures: A structure or premises is dangerous when it is no longer
structurally sound or poses an imminent threat to the health and safety of the public or the
occupants.
• Unlawful Structures: An unlawful structure is one that is occupied by more persons than
permitted by law or which was erected, altered or occupied without approval.
The penalties for not correcting these violations range from civil inf•actions to criminal
misdemeanors. Every violation requires notification and a reasonable time period for the property
owner to make necessary corrections.
The proposed IPMC as amended also replaces and updates the current "Rental Housing
Habitability Standards" adopted in 1982 that prescribe minimum requirements for basic living
conditions in rental housing, such as: shelter, safe exits, heating, sanitary bathroom facilities,
lighting and ventilation.
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New habitability provisions for rental housing under the IPMC with local amendments include:
• Insect Screens: From April 1 to November 1, windows or openings required for ventilation
will need to be supplied with screens for insect control and the prevention of West Nile and
other insect borne diseases upon signing of the lease/rental agreement.
• Heating: Increases minimum indoor heating capacity from 60 degrees F to 65 degrees F
except when outdoor temperature is below 4 degrees F the indoor temperature is whatever
the system is able to maintain.
• Egress Windows: Enlarges and lowers emergency escape/rescue openings in below-grade
sleeping rooms.
• Security Door Locks: Doors providing access to a dwelling unit will need to be equipped
with a deadbolt lock designed to be readily opened from the inside.
• Security Window Locks: Operable windows located within 6 feet above ground must be
equipped with a window sash locking device.
• Smoke Alarms: Smoke alarms are required for all rental housing.
• Carbon Monoxide Alarms: Carbon Monoxide alarms are required for rental housing with
fuel-burning appliances or an attached garage.
Are the proposed revisions too regulatory or restrictive?
Staff believes the proposed revisions are neither excessive in number of local amendments nor
over-regulatory in substance. The majority of local amendments are for administrative
purposes integrating the IPMC into the City Code. Many proposed local amendments delete
or substitute less restrictive requirements than the model IPMC. (See Attachment 3 for
deletions from the model JPMC)
Ordinance No. 109, 2008, Supplemental Rental Housing Provisions:
Staffrecommends amending Chapter 5,Article VI, Division 2(Rental Housing Standards)ofthe City
Code relating to Supplemental Rental Housing Provisions to eliminate duplicate provisions now
included in the IPMC. These provisions apply to all rental housing, including single and multi-
family dwellings, manufactured housing, and hotels and rooming houses.
Staff recommends adoption of the proposed revisions to:
• Provide better clarity.
• Enhance health and safety of residents.
• Improve consistency and equity in the administration of regulations.
• Create a link to the IPMC for rental housing conditions, inspection and responsibility.
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• Establish an approval process for "non-recorded" rental housing/rooming units by
establishing the date of creation or conversion of the additional housing unit for the
purposes of calculating correct and appropriate fees. Owners of dwellings, within multi-
family buildings without a Certificate of Occupancy (CO), will be required to provide
historical data in order to establish the date of creation or conversion. The owner will be
required to pay development fees based upon clear historic records of conversion or when
the unit was first used as a rental. Ifthe owner is unable to provide evidence, then the owner
will be required to pay the fees in effect at the time of the issuance of the (CO).
• Clarify the appeals process to be consistent with the Zoning Board of Appeals and the
Planning and Zoning Board; and to identify who is eligible to appeal and for notification of
adjacent property owners.
These standards supplement the provisions contained in the proposed 2006 IPMC with local
amendments and are necessary to protect the public health, safety and welfare of the residents of
Fort Collins. The revisions apply to ALL rental housing, including single and multi family
dwellings, hotels and rooming houses.
The penalties range from civil infractions to criminal misdemeanors depending on the severity of
the violation. Notice must be given to the property owner allowing a reasonable amount of time to
correct the violation (depending on the severity of the violation.)
PUBLIC MEETINGS, BOARDS AND COMMISSIONS
Extensive public outreach has occurred over the past two years, including:
Public meetings, presentations and outreach
• Open Public Meetings—January 25, 2007; February 1, 2007; July 24, 2007
• Small stakeholder meetings—March—May 2007
• Newspaper columns and newsletter articles—2007 and 2008
• North Fort Collins Business Association presentation—September 26, 2007
• Affordable Housing Coalition presentation—October ]7, 2007
• Associated Students of Colorado State University— October 31, 2007; May 8, 2008
• International Building Code Review Committee—November 8, 2007
• Fort Collins Board of Realtors—January 15, 2008 and January 29, 2008, and attendance
at Building Review Board meeting August 28, 2008
• Colorado Apartment Association presentation—March 18, 2008
• Center for Public Deliberation Capstone discussion—April 21, 2008
Boards and Commissions (see attachment 4 for Board minutes and recommendations)
• Planning and Zoning Board Work Session—July 13, 2007
• Affordable Housing Board—September 6, 2007 and June 5, 2008
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• Building Review Board—July 26, 2007;April24, 2008;June 26, 2008;July 9, 2008(special
work session);July 31, 2008;August 28, 2008
Feedback varied significantly with opinions on both sides of the issues. There is a general concern
for the potential financial hardship new codes can place on low-income residents.
TIMELINE
The 2006 IPMC with local amendments and Supplemental Rental Housing Provisions will be
implemented upon adoption. "
Beth Sowder,Neighborhood Services Manager,stated the 2006 International Property Maintenance
Code(IPMC)is applicable to all residential and non-residential buildings and will replace the current
Dangerous Building Code and the Rental Housing Standards and bring them together into one
document. The Supplemental Rental Housing provisions will amend Chapter 5 of the City Code and
provide a fair process for the City to evaluate, inspect and approve non-recorded dwelling units.
These are separate dwelling units that have been added to single-family dwelling units, sometimes
many years ago,but the City currently has no process to make such additions legal. Adoption of the
2006 IPMC will establish the standards used to determine the safety of buildings, structures and
equipment. It includes a variety of conditions from substandard, to unfit to occupy, unlawful and
dangerous. The Supplemental Rental Housing provisions will provide a consistent and equitable
process to address non-recorded dwellings.
The current Codes that address rental properties and dangerous buildings are outdated. The two
proposed ordinances will aid and improve the functions staff currently performs during the course
of normal work duties without adding additional cost to the City. Property owners may incur
additional costs for correction if their properties are found in violation of the Code. In extreme
cases, if the condition is not corrected,the property may be vacated or, ultimately,torn down. The
proposed Code changes are intended to prevent deterioration of neighborhoods by establishing basic
standards for maintenance of properties while also ensuring the health and safety of all residents.
After receiving Council direction at work sessions,the terms"vacant'and"abandoned"have been
more clearly defined. "Vacant'is now defined as unoccupied while"abandoned"imparts a degree
of disrepair and poses a public nuisance. Exterior surfaces must be repaired when 25% of the
exterior protective surface is degraded. Degraded is defined as conditions when siding is missing,
where there are holes or the exterior lacks a protective barrier such as paint,to the extent that water
is entering the wall cavity.
The Supplemental Rental Housing Standards are proposed to provide a process to address dwelling
units created in the past,often as the result of remodeling or reconfiguring a single-family dwelling
unit without City review or approval. The intent is to have the unrecorded dwelling units receive
permits and make them safe and to be fair when calculating permit and development fees based on
when the dwelling was converted. Inspections would be performed to ensure the units are safe and
in compliance and a certificate of occupancy would be issued.
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The IPMC will replace the City's current rental housing standards as well as the Dangerous Building
Code. The IPMC is a national standard and could be reviewed and updated by the City every three
years in conjunction with the national review cycle. The local amendments provide four degrees of
hazards or conditions and appropriate levels of violation. Staff will be able to address substandard
conditions which need repair before deterioration occurs to a level where the property is considered
dangerous. The proposed IPMC will require larger basement bedroom escape windows, screens
during West Nile virus season,the ability to heat to 65 degrees,locks on doors and windows,smoke
alarms and carbon monoxide detectors where gas appliances are used and/or garages are attached.
Some concerns have been expressed that Fort Collins is too aggressive with the proposed
amendments and that too many local amendments are being applied to the national standard. Staff
proposes amending 130 individual Code sections out of the 253 contained in the national standard.
Of those local amendments,33 are definitions that are added for clarity,6 definitions were amended
to clarify and connect the terms used in other adopted City Codes, 65 were amended to provide
terminology for clarity and to reference specific sections of the City Code. The remaining 26
changes are local amendments proposed to address specific physical conditions such the four degrees
of hazard and appropriate penalties, updates to the rental housing standards and other amendments
exempt non-rented,owner-occupied single-family dwellings from the substandard conditions. Ten
of the local amendments are less restrictive than the national standard such as exempting owner-
occupied dwellings from the substandard conditions by having screens required only on rental
dwellings, by deleting all the minimum habitable room dimensions and deleting the heating
requirements for indoor work places. Six are for clarity and are neither more or less restrictive,four
are considered more restrictive and relate to rental housing improvements, and six are intended to
retain current standards applicable to rental housing.
Some concerns have been expressed that adoption of these standards will make Fort Collins more
restrictive than neighboring communities. A survey of Loveland,Greeley and Longmont shows Fort
Collins is generally less restrictive. Those communities apply the IPMC to all buildings,including
owner-occupied dwelling units, require screens on all dwelling units year-round, minimum room
sizes on all dwelling units,all dwelling units must be able to heat up to 68 degrees and work places
must be able to heat to 65 degrees. Those communities require smoke alarms in all housing and do
not have a minimum requirement for exterior and interior deteriorated paint.
The Supplemental Housing Standards are intended to create a process to allow unrecorded multiple
dwelling units to acquire a certificate of occupancy. It also includes an appeal process through the
Building Review Board. The process to issue a certificate of occupancy for existing,multi-family
rental units where there is no prior City review or approval begins with the determination of whether
the zoning allows for multi-family dwellings. The property owner, with staff s assistance, must
show evidence of when the building was converted to multi-family units, then fees will be figured,
based on the fee schedule of that date. If the date is before 1965,the original fees would be waived.
The owner must submit a signed affidavit declaring he/she was unaware the dwelling unit in question
did not have a certificate of occupancy at the time of purchase. If no affidavit is submitted, the
building will be treated as if it were created, converted or constructed in the present time and be
subject to current fees. If no evidence is found to show when the building was converted, current
fees would be used to assess the fees to be paid. The new IPMC standards would be used to perform
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an inspection to ensure safety and compliance. Once any violations that are found are corrected, a
certificate of occupancy will be issued.
Both the proposed IPMC and Supplemental Rental Housing Standards have been extensively
discussed with various citizen groups and stakeholders. The Planning and Zoning Board and the
Affordable Housing Board recommend adoption of the IPMC and approve the concept of addressing
unrecorded dwellings in a consistent and equitable way. The Building Review Board supports
adoption of the IPMC. The Board recommends adopting the provision relating to unrecorded
buildings only if any identified past-due development fees of a non-recorded dwelling are waived
if the current owner was not the responsible party for the creation of the non-recorded dwelling.
Staff believes the proposed fees for non-recorded dwellings provides a consistent and equitable
approach for the community.
Lloyd Walker, 1756 Concord Drive, stated it is time to update the rental housing standards and he
supported adoption of both ordinances. It is appropriate to require non-recorded multi-family
dwelling units to be brought to current standards.
Debbie Tamlin, 1210 Kirkwood,President ofthe Fort Collins Board of Realtors,supported adoption
of the IPMC. The provisions in the Code will allow staff to deal with dangerous properties in the
community. The Board of Realtors supports the exemption of owner-occupied, single-family
detached,dwelling units that have no rooms for rent from the standards. The Board does not support
the provisions in the supplemental rental housing standards requiring a certificate of occupancy for
non-recorded multi-family dwelling units and the fees that would be associated with the certificate.
No other jurisdiction in the United States imposes retroactive fees on compliant or non-compliant
rental units. The Board requested that Section 5-260 and Section 5-261 be removed from the Code.
Eric Kronwal1, 1119 Monticello Court,thanked staff for allowing much public input into the process
of adoption of the IPMC and rental housing standards. He supported adoption of the IPMC.
Carrie Gillis, 2213 Timber Creek Drive, stated City staff should have the tools to address unsafe
buildings. She did not support the exemption of owner-occupied dwellings from the standards in
the Code.
Chip Parrish, member of the Board of Realtors, stated adoption of the IPMC will benefit the
community and help to maintain property and provide standards for rental units. He did not support
the local amendments that are being added as they were onerous and did not add greater benefits to
the community. He did not support charging fees for a certificate of occupancy for non-recorded
dwelling units.
Jeff Schneider, Fort Collins resident, did not support imposing fees on non-recorded multi-family
dwelling units.
City Attorney Roy read new language for Ordinance No. 109,2008, Section 5-261(b)in its entirety.
He noted the year 1965 is used as the cut-off date because City records of fees and other records
relating to the conversion of units are poor or non-existent prior to that year. The fees collected on
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conversions made before 1965 would be nominal and the amount of time needed to search the
records and compute the fees would outweigh the fees themselves. Building permit fees will need
to be paid for whatever work is necessary to bring the dwelling unit into compliance with the current
rental housing standards. Colorado law states the fees need to be fair and rational and staff believes
the fees meet that requirement because they are reasonably related to the cost of mitigating the
impacts of the unit. It is unclear whether these fees would be considered retroactive fees or fees that
are past due.
Mayor Hutchinson asked if someone who recently purchased a house must pay the fees for a
conversion done twenty years ago, but no certificate of occupancy was ever issued. City Attorney
Roy stated the current owner would have to pay the fees unless the owner could show,with clear and
convincing evidence,the date when conversion occurred and can sign an affidavit stating they had
no knowledge that a certificate of occupancy was not issued for the dwelling. As the ordinance is
currently written,the current owner must pay the fees,unless the conversion date was before 1965.
The policy question before Council is how to deter property owners from unlawfully converting
single-family dwellings into multi-family dwelling units without paying the proper fees. Waiving
the fees would not provide any consequence for illegally converting a dwelling,other than requiring
the payment of the fees necessary to bring the property up to Code,so the property owner would not
have paid all the fees that would have been due at the time of the conversion or construction. He
noted the ordinances establish minimum habitability standards for the City to enforce and does not
relate to the mutual obligations of landlord and tenant, which are addressed in State law.
Councilmember Brown asked what changes had occurred that would ensure the City's records are
correct after 1965. Lee stated records kept after 1965 are more accurate because a specific form was
used to record all the necessary information. There are only general, handwritten notes for
information kept before 1965, which were not very accurate. 1965 is a reasonable cut-off date
because fees charged before that year were nominal.
Councilmember Brown expressed his concerns about charging fees to a property owner who was not
responsible for converting a dwelling unit and requiring that property owner to prove when the
conversion occurred even though the City's records are not very accurate,particularly for the 1960s.
He asked what will be accomplished by collecting the fees in arrears and what would be the amount
of fees charged in arrears. Lee stated fees need to be charged in arrears as a matter of fairness to
those property owners who have already paid fees to legally convert their properties. If a property
was converted after 1965,the impact fees would be approximately$400 and the fees increase as the
conversion date becomes more recent. The fees charged will be based on the impact fees in place
at the time of conversion. Impact fees are in place to offset the impact of the dwelling units. The
fees would be approximately$15,000 if the conversion is charged with today's fee.
Councilmember Manvel asked what was the standard dwelling size used to calculate the fees. Lee
stated the fees were based on a 1500 square foot basement dwelling unit. The fees are based on
different factors. Some are impact fees,plant investment fees for sewer,water and electric,and the
cost of purchasing the actual amount of water supplied for the life of the unit. In 1965, the fees for
water were only$200,but today the water fees are $5,000 to $6,000. In 1985, the permit fee, sales
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and use tax, street oversizing fee,water and sewer tap,raw water fee, secondary electric fee would
have totaled$3,000.
Councilmember Ohlson asked at what point do City records show, with certainty, whether a
certificate of occupancy was issued and fees were paid for the conversion of a dwelling unit. Lee
stated the records from 1970 forward are reasonably accurate.
Councilmember Ohlson asked if units that were illegally converted will now be considered as legal
units. Lee stated the proposed ordinance requires the units that were converted illegally to be
brought up to Code and obtain a certificate of occupancy in order to rent the units. Zoning of the
property is one factor that will be considered when a certificate of occupancy is requested. If the
property is not zoned for rentals, the use of the property as rental units must stop.
Councilmember Poppaw asked what would be the result of changing the cut-off date from 1965 to
1975. Lee stated the properties that did not pay the fees before 1975 would not be charged any fees.
If the conversion was done after 1975, the fees for the date the conversion occurred would be
charged.
Mayor Hutchinson asked what the fees would be if a dwelling unit was converted in 1975 and did
not receive a certificate of occupancy. Lee stated the property owner would be responsible for
providing evidence that the unit was converted in 1975 and not more recently. Staff would assist
in providing that evidence by offering City records and other resources to examine. Staff would
examine the converted units to determine when the conversion took place. If a date is established
that is consistent with the property itself and the available records indicate the conversion was before
1975,the fees that would have been paid at the time of conversion would be waived. If the date of
conversion is established to be 1975, the property owner will pay the impact fees that would have
been due in 1975.
Councilmember Ohlson asked why the IPMC will not apply to non-rented single family dwelling
units. Lee stated the Building Review Board recommended removing owner-occupied dwelling units
and the Board of Realtors endorsed removing the provision.
Councilmember Ohlson asked why the minimum room size was deleted and the minimum heating
requirement was set to 65 degrees. Lee stated the requirements were set in such away so as to build
as large a consensus as possible among the various groups reviewing the proposed Code. The IPMC
sets the minimum heating requirement for homes at 68 degrees and 65 degrees in work places.
Councilmember Manvel asked why so many local amendments were being added. Lee stated the
local amendments were proposed to concentrate on serious health and safety issues and to set those
standards higher than the IPMC. Local amendments requiring carbon monoxide alarms and larger
egress windows from basement bedrooms are stricter than what is required in the IPMC and affect
health and safety.
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Councilmember Roy asked for an estimate of the number of illegally converted rental units. Lee
stated there are 1400 duplexes in the city,but there was no way to estimate the number that have not
received a certificate of occupancy.
Councilmember Roy asked how the City will learn about housing that has been illegally converted.
Mike Gebo,Deputy Building Official,stated a complaint must be filed against a property before the
City investigates whether a duplex is legal. Generally,neighbors will notify the City that too many
people are living at a residence and violating the 3-unrelated ordinance, which begins the City's
investigation. Utility records, tax records, sales information, and affidavits from neighbors would
be used to ascertain when the property was converted.
Mayor Hutchinson asked for more information to be provided for Second Reading regarding the cut-
off year for unrecorded duplexes and the pros and cons of changing the cut-off year from 1965 to
1975.
("Secretary's note: The Council took a brief recess at this point in the meeting.)
Councilmember Manvel made a motion,seconded by Councilmember Roy,to adopt Ordinance No.
108, 2008 on First Reading.
Councilmember Ohlson made a friendly amendment to change the minimum heating temperature
requirement from 65 degrees to 68 degrees Fairenheit(20 degrees Q. The friendly amendment was
acceptable to Councilmembers Manvel and Roy.
Councilmember Troxell asked what was the difference between the 2003 IPMC and the 2006 IPMC.
Lee stated the 2006 IPMC is the latest version. There are not many differences between the 2003
and 2006 editions and staff recommends using the most recent version of a code. Gebo noted the
proposed 2006 IPMC is a maintenance code. Currently,commercial buildings are required to meet
the standards in the 2006 Building Code. Staff is in the process of reviewing the 2006 International
Residential Code and is moving towards adoption of 2006 versions of all the Codes.
Councilmember Ohlson noted an illegal conversion must first match the zoning requirement for the
property as a first step in obtaining a certificate of occupancy. The idea is to encourage compliance
and not be punitive with fees. The public process in considering the proposed Code has been lengthy
with many opportunities for public input. Compromises have been reached,but the proposed Code
with local amendments will benefit Fort Collins.
Councilmember Manvel stated the local amendments provide clarity for definitions and improve the
basic IPMC. Much effort and staff time has been dedicated to developing the proposed Code with
local amendments which is a great improvement over the current Code, adopted over 20 years ago.
Councilmember Roy stated the proposed Code does strengthen requirements and he thanked staff
and citizens who have spent many hours developing the proposed ordinance.
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Mayor Hutchinson noted the proposed Code will give staff tools to address dangerous housing that
staff currently does not have. Staff has taken an international code and customized it to Fort Collins.
The vote on the motion was as follows: Yeas: Brown,Hutchinson,Manvel, Ohlson,Poppaw, Roy
and Troxell. Nays: none.
THE MOTION CARRIED.
Councilmember Manvel made a motion,seconded by Councilmember Roy,to adopt Ordinance No.
109, 2008, on First Reading, with the modification presented by City Attorney Roy.
Councilmember Troxell stated he did not support the idea of charging fees for unrecorded converted
dwelling units.
Councilmember Brown stated he did not support the idea of retroactively collecting fees on
properties that were converted years ago.
The vote on the motion was as follows: Yeas: Hutchinson, Manvel, Ohlson, Poppaw, and Roy.
Nays: Brown, Troxell.
THE MOTION CARRIED.
Resolution 2008-094
Adopting the 2008 Bicycle Plan,Adopted
The following is staffs memorandum on this item.
"FINANCL4L IMPACT
Approval of the 2008 Bicycle Plan does not create a direct financial impact for the City. Future
implementation ofthe Bicycle Plan recommendations may involve f nancial commitments by the City
and those items will be brought forward for City Council review at the appropriate time.
EXECUTIVE SUMMARY
The 2008 Bicycle Plan is an update to the 1995 Bicycle Program Plan. The 2008 Bicycle Plan
presents existing conditions ofthe bicycle facilities, evaluates the City's accomplishments over the
last 13 years, and proposes recommendations for bicycle facilities and programs. The Plan further
articulates the vision for bicycling in Fort Collins, expanding its relationship beyond engineering,
education, encouragement and enforcement to include economy, environment and community.
BACKGROUND
The 2008 Bicycle Plan involved extensive public outreach over the last several years. It was
presented to several City Boards and Commissions, local organizations, a Citizen Advisory
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Committee, and the general public. Many ideas collected through that process have been included
in the Plan. Comments made by the Transportation Board were addressed in the 2008 Bicycle Plan.
In addition, the following organizations and City Boards were presented with the Plan and have
provided support: Air Quality Board, Bike Fort Collins, Downtown Development Authority,
UniverCity, Economic Advisory Commission, Natural Resources Advisory Board, Parks and
Recreation Board, Senior Advisory Board, and the Youth Advisory Board. The 2008 Bicycle Plan
provides a platform for implementation of many bicycle-related improvements for the Fort Collins
community.
As an overview of existing programs, the 2008 Bicycle Plan specifically highlights the progress
made in Fort Collins with regard to engineering, education, encouragement, and enforcement since
the 1995 Plan. Beyond that, recommendations were made to continue efforts toward improving
bicycling opportunities in Fort Collins and are summarized as follows:
• Engineering: interim solutions, innovative solutions, improved signal detection.
• Education and Encouragement: expansion of existing programs.
• Enforcement: proactive campaigns, coordination and education for the public as well as
local enforcement agencies.
Furthermore, based on public input, the 2008 Bicycle Plan was expanded to address the following
areas of concern and provided the associated recommendations:
• Economy: bicycle-related tourism and bicycle-related commercial development.
• Environment: measurement methods of environmental benefits.
• Community:potentialfor BicycleAdvisory Committee,Platinum Level designation with the
League of Bicyclists.
The format and timing for implementation of the recommendations resultingfrom the 2008 Bicycle
Plan were not established as part of the Plan. This approach provides on-going possibilities for
community organizations as well as the City to use the Plan as a solid foundation to improving the
future of bicycling in Fort Collins. The Plan indicates some innovative planning measures but
encourages the evolution of ideas to improve bicycling. Finally, the 2008 Bicycle Plan maintains
the message that Fort Collins is a great place to ride for all ages and all levels of ability.
In addition, staff has recently learned of the recent upgrade in designation by the League of
American Bicyclists. As indicated in the attached letter, dated September 19, 2008, the League of
American Bicyclists has awarded the City of Fort Collins with a Gold Level designation. "
Mark Jackson,Transportation Group Director,stated the proposed Bicycle Plan has received much
public input and is a plan supported by the community.
Denise Weston, Senior Transportation Planner,stated the City has recently received the Gold Level
Designation from the League of American Bicyclists. The Plan has been presented to many of the
City's boards and commissions, Bike Fort Collins, the Downtown Business Association and the
general public. Many of the recommendations received at these public input sessions were included
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in the Plan. The Plan addresses engineering issues such building bicycle facilities and a list of other
prioritized infrastructure projects. Interim solutions are proposed such as signage or striping that
could be done on an immediate basis. The implementation of the Transportation Master Plan will
include the full implementation of the roadway improvements such as maintaining priority commuter
routes. Improving signal detection loops will help recognize bicycles at local intersections. Multi-
modal recommendations would expand bicycle-transit,bicycle-pedestrian and bicycle-auto linkage
and increase bicycle parking throughout the city and at transit stops.
D.K.Kemp,Bicycle Coordinator,stated continuation of current safety programs such as the CoExist
Campaign and adding new programs are proposed in the Plan, as well as expanding public-private
partnerships and community relationships. The enforcement component has been improved in the
proposed Plan and will be combined with education. A new component of the proposed Bicycle
Plan is economic recommendations. Promoting the city as a bicycling destination will bring national
events to the city. People from around the country will come for bicycling events. More work needs
to be done to attract bicycle manufacturers and other businesses related to bicycling to the city.
Better measurement tools are needed to measure the environmental benefits from bicycling. The
current tools do not offer an accurate assessment. One recommendation is to form a bicycle advisory
committee to allow for the exchange of ideas from all areas of the community.
Weston clarified the Bicycle Plan recommends the pursuit of a bicycle advisory committee and also
recommends an independent, public process to determine the members of the committee. The
committee should represent the entire community. After the Bicycle Plan is adopted,
implementation strategies will be prepared by staff. If a bicycle advisory committee is formed, it
could advise on the implementation strategies.
Rick Price, 1925 Wallenberg Drive, stated Fort Collins is a great place for bicycling and he
supported adoption of the Bicycle Plan. He urged Council to create a bicycle advisory committee
and to commit to working towards the Platinum Level Designation by 2012.
Brad Abrahamson,6124 Paragon Court,stated the current bicycle trails were a great benefit for Fort
Collins and the proposed Bicycle Plan would improving bicycling even more. He supported building
a velodrome in the city.
Bruce Votipka,2812 Cherrystone Place,stated the Bicycle Plan is a visionary,comprehensive plan
that will achieve its goal of integrating the bicycle into the daily lives of the residents of Fort Collins.
He wanted more emphasis placed on educating the public about bicycle safety.
Bill Jenkins, 710 Mathews Street, urged Council to adopt the Bicycle Plan as the Plan affirms and
promotes the importance of bicycling in the community.
Cheryl Distaso, 135 South Sunset, supported allowing wheelchairs to legally use bicycle lanes and
she urged Council to adopt the Bicycle Plan.
Tim Anderson, 1115 Clubview Terrace, supported adoption of the Bicycle Plan and the creation of
a bicycle advisory committee.
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Jeff Morrell, 1615 Sand Creek Court,stated the Bicycle Plan provides an excellent vision for the city
and he asked Council to establish a bicycle advisory committee to assist in implementing the Plan.
Lila Hickey, Fort Collins resident, stated the Plan will encourage more people to ride bicycles and
will help Fort Collins develop the image of"Bike Town USA."
Councilmember Brown asked for the cost analysis of working towards the platinum designation.
Kemp stated the City needs to continue the programs currently in place which are funded by grants
from Congestion Mitgation and Air Quality(CMAQ)Program. Other local,state and federal grants
are available to fund bicycle programs. The Bicycle Plan includes high cost items for major capital
improvements and smaller cost items for educational campaigns. A specific cost to achieve platinum
designation is not available. Many projects listed in the Bicycle Plan will be incorporated with
projects from Transportation Planning,so it is important to collaborate with Transportation Planning
to leverage funds for state and federal funding. Jackson stated the Building on Basics capital
improvement fund will provide some funding for the capital projects listed in the Bicycle Plan. The
League of American Bicyclists does not have a set checklist the City must follow to achieve platinum
designation. That designation is reached by growing the bicycle program,having greater community
involvement, and showing the longevity of the program.
Councilmember Brown asked if funds will be taken from other areas to pay for the platinum
designation if more grant funding is not received. Jackson stated the amount of resources available
will dictate which projects will be implemented. The City has capital improvement project lists that
are prioritized by criteria for all modes of travel. Bicycle projects often fit very nicely with other
transportation improvement projects that are high priority capital improvement projects. Kemp
noted the Streets Plan includes all modes of travel, so bicycles are often included in capital
improvement street projects.
Mayor Hutchinson asked if Council will review specific capital improvement projects as they are
developed. City Manager Atteberry answered in the affirmative. He noted bicycle projects
frequently can be folded into a road capital improvement project and the grant funding for bicycle
projects can be used in conjunction with the capital funding.
Councilmember Ohlson stated implementation ofthe Bicycle Plan should result in the City achieving
platinum designation.
Councilmember Troxell asked that implementation of the Plan include all other alternative modes
of transportation. Bicycle manufacturers and local businesses should be encouraged to actively
participate in the Plan, which will improve the city's economic health. Evaluation of the Bicycle
Plan is critical and safety education and enforcement needs to play a key role in implementation.
Councilmember Roy asked for details about forming a bicycle advisory committee. City Manager
Atteber y stated staff supports the idea of a bicycle advisory committee but the City is not ready yet
to form the committee. Staff will bring a code amendment for Council consideration that would
amend the roles and responsibilities of the Transportation Board and would create a direct link
between the bicycle advisory committee and the work of the Transportation Board. Committee
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October 7, 2008
membership could be expanded beyond the Transportation Board members. Appointment to the
committee could be done by the City Manager to enable formation of the committee in a more timely
fashion.
Councilmember Roy made a motion, seconded by Councilmember Poppaw, to adopt Resolution
2008-094.
Councilmember Manvel stated the creation of a bicycle advisory committee is an important
component of the Plan and should happen quickly. The Plan is an excellent one and has broad
support from the community.
Councilmember Ohlson made a friendly amendment to change the fourth whereas clause in the
resolution to read "...(3) the community, by involving a bicycle advisory committee."
Councilmember Roy accepted the friendly amendment.
Councilmember Ohlson asked if use of cyclovias or car-free events, as discussed in the Plan, was
elitist or too exclusionary. Kemp stated the concept of a cyclovia is to inspire recreation on City
streets through walking, skating, bicycling or other alternative modes of transportation and is
designed to bring the community together. They are not exclusionary as the events would be only
for a short amount of time. The events would encourage people to come to a public place to gather
without using their cars.
Councilmember Roy stated the bicycling community has made a tremendous effort to help Fort
Collins achieve gold designation. Platinum designation is possible with continued community
involvement. A bicycle advisory committee will be an integral part of that achievement.
Councilmember Brown stated the Plan will greatly benefit Fort Collins and he thanked the bicycling
community for its efforts and input into the Plan.
Councilmember Poppaw stated the Plan was excellent and the goal of achieving platinum
designation should be set.
Mayor Hutchinson stated encouraging bicycling in Fort Collins will provide an economic benefit to
the city and the Plan will provide greater benefits.
The vote on the motion was as follows: Yeas: Brown,Hutchinson, Manvel, Ohlson, Poppaw, Roy
and Troxell. Nays: none.
THE MOTION CARRIED.
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Ordinance No. 127,2008,
Being the Annual Appropriation Ordinance Relating to the Annual
Appropriations for the Fiscal Year 2009; Amending the Budget for the
Fiscal Year Beginning January 1, 2009, and Ending December 31,2009;
and Fixing the Mill Lew for Fiscal Year 2009, Adopted on First Readine
The following is staff s memorandum on this item.
"FINANCL4L IMPACT
This Ordinance amends the City Budget for fiscal year 2009 and represents the annual
appropriation for fiscal year 2009 in the amount of$548,437,224. The Ordinance also sets the City
mill levy at 9.797 mill, unchanged since 1991.
EXECUTIVE SUMMARY
This Ordinance amends the adopted 2009 Budget and sets the amount of$548,437,224 to be
appropriated for fiscal year 2009. The Net City Budget, which excludes internal transfers between
City funds, is $440,379,274 for 2009. The Net City Budget, as amended, is allocated to:
Adopted Amended
2009 2009
Operations $351,346,102 $356,110,925
Debt Service 26,232,854 26,235,588
Capital 58,776,761 58,032,761
This Ordinance also sets the 2009 City mill levy at 9.797 mills, unchanged since 1991.
BACKGROUND
City Council adopted the 2008-2009 Biennial Budget and appropriated monies for expenditure in
fiscal year 2008. State statutes and the City Charter both require an annual appropriation to cover
expenses for the ensuing year (2009) based upon the adopted budget. The Second Reading must be
done before the last day of November and is currently scheduled for October 28, 2008.
2009 Revenue Update
The revenue forecast model was updated in July of 2008 with data from the first six months of the
year. The update was presented to the Finance Committee on July 21. Sales tax revenue is
projected to increase 4.0%in 2009 over 2008 collections due to the influence ofcurrent retail trends
and the addition of the Front Range Village retail center. The 2009 use tax "ceiling" is reduced
slightly to reflect the decrease in residential building activity and automobile sales.
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General Fund Revenue:
Adopted 2009 Amended 2009
Sales Tax (2.25) $49,840,160 $52,270,182
Use Tax (2.25) $ 8,300,000 $ 8,200,000
Recommended 2009 BudgetAdditions
After reviewing all the requests, the City Manager is recommending the following adjustment to the
2009 budget which was presented to the Finance Committee on September 15. One addition has
been made since the Finance Committee reviewed the list of adjustments. The addition is the
Homelessness Initiative Support for $100,000. This request is for one-time money from the
General Fund. The adjustments are listed in two categories: Basic Operational—requests that are
needed for operation and maintenance of the service area; and Enhancements — requests that
expand the scope of service. General Fund recommended adjustments total $1,326,568 and
recommended adjustments to Other Funds total$2,704,505.
General Fund:
On ooinQ One-time
A. Basic Operational
1. Parks Maintenance—Fuel Costs $ 60,500
2. Parks Maintenance— Weed Control 30,000
3. Parks Maintenance— Trail Mowing 5,135
4. Operations Services—Natural Gas 42,000
5. Budget Accounting&Reporting Tool-Phase 2 65,000
6. Streets Snow Removal Fuel&Materials 215,226
7. Signal Maintenance Fuel Costs 11,786
8. Signs &Pavement Markings Fuel&Paint 60,417
9. Pavement Management Program 323,280
10. Street Patching&Maintenance Fuel&Asphalt 78,964
11. Sweeping, Mowing Road Shoulders&Maintenance
of Alleys, Unpaved Roads—Fuel 42,405
12. Streets Facility Natural Gas 7,505
13. Lincoln Center Services 10,250
Total General Fund Basic Operational $ 887,468 $ 65,000
B. Enhancements
1. Pilot Program, Asst. District Attorney on Site $ 88,000
2. Repay Larimer County for DDA Parking Garage $186,100
4. Homelessness Initiative Support _ 100.000
Total General Fund Enhancements $186,100 $ 188,000
Total General Fund Adjustments $ 1,073,568 $253,000
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October 7, 2008
Other Funds:
Ongoing One-time
A. Basic Operational
1. PFA Station 4 Debt Payment $234,354
2. Harmony Road Maint. Fuel&Materials 17,637
3. Golf Fuel Costs 49,787
4. Utility-Information Technology Functions
not budgeted 536,400
5. Pavement Management Program 966,720
6. Utility Funds Fuel Costs 416,60
Total Other Funds Basic Operational $ 2,221,505 $0
B. Enhancements
1. Security Improvements to 330 S. College and
700 Wood Street $200,000
2. Downtown Parking Demand Analysis 30,000
3. Utilities Security Coordinator $ 75,000
4. Utilities-Equipment/Furniture for Additional Staff 20,000
5. Light&Power-Energy Services Program
Coordinator 60,000
6. Light&Power-Energy Services Engineer 98,000
Total Other Funds Enhancements $ 233,000 $ 250,000
Total Other Fund Adjustments $2,454,505 $250,000
Miscellaneous
In addition to the recommended adjustments, a couple of miscellaneous adjustments must be made
to correct the 2009 appropriations for recent changes. The additional revenue projected to be
received in the Sales & Use Tax Fund must be appropriated for transfer to the General Fund and
to the other funds receiving this revenue.
Also, with the refinancing of the City's certificates ofparticipation in June 2007, the debt payments
in the Capital Leasing Corporation Fund have changed. Total debt payments have increased by
about$3,000 with the General Funds portion increasing by less than$10,000. These appropriation
changes must also be made and are included in the Amended 2009 appropriations. "
City Manager Atteberry stated this ordinance is a mid-cycle adjustment to the adopted budget. The
2009 budget is$548.5 million and includes operational expenses,capital and transfers. The budget
continues the City's commitment to world-class service. He stated his concerns with the City's
ability to continue providing the levels of service expected by the citizens and how the City will pay
for those services. No tax increases are proposed in this budget. Proposed increases in wastewater
and electric utility services are included in the budget which were projected when the 2008-2009
budget was adopted. Property taxes have remained at the same rate since 1991. The budget
continues programs, services, and staffing levels implemented in 2008, with a few exceptions.
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October 7, 2008
Mike Freeman, Chief Financial Officer, stated the revenue picture is stronger than projected for
2009. An increase of 4% in sales tax revenue is projected for 2009, largely the result of new sales
tax opportunities from Front Range Village. The use tax projection is about the same as for 2008.
Property tax revenues are projected to increase at a modest rate for 2009. Investment earnings will
decrease but adjustments have been made. Payment-in-lieu-of-taxes,revenues from the utilities and
enterprises that are paid to the general fund, will increase slightly, around 1%.
Councilmember Ohlson clarified that sales tax will not increase 4% in 2009, but the revenues
collected from sales tax are projected to increase by 4% and revenues from property taxes are
expected to increase by 2%. The City's share of property taxes has not changed since 1991.
Freeman stated although the sales tax revenue growth will be strong in 2009, staff projects the sales
tax growth in revenue will slow to 2.5%or less in 2010 and 2011. Staff recommends not allocating
all the revenue that will be available in the general fund in order to have reserves available for the
2010-2011 budget. Staff is projecting about $5 million in reserves, beyond the Council's 60-day
policy for the general fund,and recommends the reserves be allocated as revenue into the 2010-2011
budget process.
The proposed electric rate increase of 2.8%is the result of a pass-through charge from Platte River
Power Authority. A major capital project to rebuild the Mulberry Wastewater Treatment Plant is
underway and a rate increase to the wastewater fee is needed to support the debt service for the new
plant. The stormwater and water rates are not being increased at this time.
City Manager Atteberry stated costs in the general fund have been kept lower than projected and
revenues have been higher than projected which has created a $6.5 million balance in the general
fund. Staff recommends using $1.5 million to fund exceptions to the 2009 budget and carry the
remaining$5 million into the 2010-2011 budget because of the expectation of lower than projected
sales tax revenue for the 2010-2011 budget cycle. It is recommended to use $1.3 million for
exceptions to the general fund. Significant fuel price increases had impacted City operations and
increases to departmental fuel budgets are requested. Pavement management allocation in the
general fund is requested for$323,000,coupled with unanticipated excess revenues from the 1/4 cent
sales tax dedicated to transportation. The cost of materials related to pavement maintenance has
increased 40% over a two-year period.
New programs recommended for funding include a one-year pilot program between the district
attorney's office and the police department to place an attorney from the district attorney's office in
the Police Services building to create a closer relationship with the district attorney's office. The
Homeless Initiative to end homelessness in Fort Collins in 10 years would receive$100,000 in one-
time dollars that would leverage additional community resources to help put a coordinator in place.
The City has a long-term obligation to Larimer County to pay for the Civic Center Parking structure
and an exception is requested to meet this obligation. 42% of the requested funds are related to
increased fuel and energy costs, 30% for operating enhancements and 28% for the new programs.
Other funds,which are non-general funds,total $2.7 million. Other funds to be used for pavement
management total $966,000, which is in addition to the request for funds from the general fund.
Debt payments from capital expansion fees would be dedicated to the new Fire Station 4, planned
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October 7, 2008
for the corner of Taft Hill and Drake Road. Information Technology services in Utilities has
requested security and energy services enhancements in Utilities to correct security deficiencies to
protect assets the City owns. He noted an amendment to the proposed ordinance removes$100,000
from the 2009 budget that was designated for implementation of the Downtown River District.
Bruce Lockhart,2500 East Harmony Road,asked how the City's finances have been affected by the
downturn in nation's economy and the stock market.
City Manager Atteberry stated the City has lost about$45,000 invested in a trust fund.
Councilmember Brown asked if consideration was given to retiring some debt by using the revenues
that are recommended to be placed in reserve. Freeman stated debt retirement was not considered.
Maintaining current services in the next budget cycle will be quite difficult to achieve without setting
aside reserves for the 2010-2011 budget.
Councilmember Troxell asked what process was used to choose the new programs proposed under
the exceptions. City Manager Atteberry stated most of the requests for the 2009 budget are critical
items such as fuel costs. Pavement management has been an important priority for Council. The
pilot program to place a district attorney at Police Services was chosen because it addressed public
safety issues. The pilot program to assist the Homeless Initiative was chosen to leverage some of
the City's resources now to help meet the goal of no homelessness in Fort Collins in 10 years. The
repayment to Latimer County for the Civic Center parking structure must be done to honor the
agreement made with the County.
Councilmember Roy made a motion,seconded by Councilmember Manvel,to adopt Ordinance No.
127, 2008 on First Reading.
Councilmember Ohlson stated the proposed budget takes a fiscally conservative approach but it does
continue street maintenance and recognizes that fuel costs have increased dramatically.
Mayor Hutchinson stated the process to develop the budget is an open process that focuses on citizen
needs. The decision to place $5 million in reserves is a prudent fiscal decision and looks ahead to
the next budget cycle.
The vote on the motion was as follows: Yeas: Brown,Hutchinson,Manvel, Ohlson, Poppaw, Roy
and Troxell. Nays: none.
THE MOTION CARRIED.
Suspension of Rules
Councilmember Troxell made a motion,seconded by Councilmember Manvel,to suspend the rules
and extend the meeting. Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell.
Nays: none.
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October 7, 2008
THE MOTION CARRIED.
Items Relating to Utility Rates and Charges for 2009,Adopted on First Reading
The following is staff s memorandum on this item.
11FINANCL41,IMPACT
The rate Ordinances are projected to increase the annual operating revenues of the Wastewater
Fund by 11%and the Light and Power Fund by approximately 2.8916. No increases are proposed
for water and stormwater monthly rates. The combined utility fees for atypical single family
residence will increase $3.68 per month.
Proposed electric development fees and charges cover costs of new commercial and residential
development. The financial impacts vary by the size and nature ofthe development. Ifthe proposed
fees are adopted, electric development fees and charges will increase 5 to 6%. The combined utility
development fees for a typical single family residence (exclusive ofraw water requirements which
are not changing) will increase from $10,639 to $10,790 or 1.4%.
The proposed fees will be effective January 1, 2009.
EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 111, 2008 Amending Chapter 26 of the City Code Relating
to Wastewater Rates and Charges.
B. First Reading of Ordinance No. 112, 2008 Amending Chapter 26 of the City Code to Revise
Electric Rates and Charges.
C. First Reading of Ordinance No. 113, 2008,Amending Chapter 26 of the City Code to Revise
Electric Development Fees and Charges.
The proposed ordinances increase wastewater rates 11%, electric rates by 2.8% on average, and
electric development fees by 5-6%. If approved, changes would be effective January 1, 2009.
BACKGROUND
MONTIILYRATES
Wastewater
Ordinance No. 111, 2008 increases the City's wastewater rates by 11%. The increase is applied
"across the board" to all customers. With the proposed rate, a typical single family residential
customer's monthly bill will increase from $22.06 to $24.48 or$2.42 per month in 2009. This is
based on a system average of 5,200 gallons per month winter quarter average (WQA) water use.
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October 7, 2008
The wastewater rate increase is needed to generate sufficient revenue to fund the wastewater
operations and meet the increase in long-term debt service obligations for a major capital project
to replace the trickling filter, make odor control improvements and prepare for future regulation-
based improvements at the Mulberry facility.
The Mulberry plant was built in 1946 with upgrades in 1958 and 1972. In the past two years, the
treatment performance of the plant's 60 year old trickling filter (which provides first-stage
secondary treatment for the plantf ow)has degraded several times requiring it to be taken off-line,
cleaned and restarted. Failure of the trickling filter creates a significant increase in odors until it
has been cleaned. Even after restarting, the trickling filter's effectiveness has not recovered to its
past efficiency. In late 2006, a study by MWH Consulting Engineers was commissioned to determine
the best solution for the long-term use of the Mulberry plant. Upgrading the plant secondary
treatment processes by removing the tricklingfilter and its associated facilities and installing a new
aeration basin and associated facilities is the most cost-effective solution. Because the trickling
filter is already recommended for replacement, odor control improvements will also take
place. Upgrading the facility will also allow the Utilities to prepare for future regulation-based
improvements. The improvements, including design and construction, are projected to cost$31.8
million and will be funded by debt.
An I % increase is proposed for 2009, 10%for 2010, and 9%for 2011 to maintain reserve
requirements, meet debt service, and continue operations and maintenance functions.
Electric
The Utilities are proposing an electric rate increase averaging 2.8% in 2009. The rate increase is
wholly due to the increases in purchase power costs from Platte River Power Authority, the City's
wholesale energy supplier. On August 28, 2008, Platte River's Board adopted a 3.8%wholesale
rate increase for 2009. Platte River's increases are due to several factors:
• Increased coal and rail costs at Rawhide and Craig power plants.
• Increased purchased power costs from WAPA (Western Area Power Administration).
• Mercury mitigation costs.
• Expanded energy efficiency programs (1%of revenues per PR's 2007Integrated Resource
Plan).
• Capital expenditure increases (new projects and increased material costs for existing
projects).
• Reduction in surplus sales revenues.
Platte River's long term financial budget also includes avoiding significant rate hikes for the
expenses needed for replacement power when the Rawhide plant is out of commission for 5 to 6
weeks. PRPA's rate increases for these costs will be spread out over 6 years from 2009 to 2014.
The proposed 2.8%increase in 2009 will vary slightly by rate class. Residential rates will increase
2.5%-2.7% commercial rates will increase 2.7%-2.9%, and industrial rates will increase
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October 7, 2008
approximately 3.2%. For a typical residential customer using 700 kilowatt-hours per month, the
monthly bill will increase $1.26 per month from $49.40 to $50.66.
Monthly Rate Summary
The following table summarizes the impact ofthe proposed rate increases on a typical single family
residential customer's monthly utility bill. In total, a "typical" customer's bill will increase$3.68
per month.
Typical Residential Customer-Monthly Utility Bill
Current Proposed $Increase
2008 2009 Increase
Electric
700 kWh per month $49.40 $50.66 $1.26 2.6%
Wastewater
5,200 gallons/month
winter quarter use $22.06 $24.48 $2.42 11%
Stormwater
8,600 sq.ft. lot, light runoff $14.26 $14.26 $0.00 0%
Water
January 5,000 gallons $22.56 $22.56 $0.00 0%
July 21,000 gallons $60.90 $60.90 $0.00 0%
Total January Monthly Utility Bill $108.28 $111.96 $3.68 3.4%
Total June Monthly Utility Bill $146.63 $150.30 $3.68 2.5%
ELECTRIC DEVELOPMENT CHARGES
Electric development charges include the allocated and actual costs to the utility for each
commercial or residential development. The two components of these charges are the Electric
Capacity Fee for the off-site electric system, and the Building Site Charge for the on-site electric
costs. The electric development charges are typically increased annually to adjust for inflation and
cost increases. Increases range from 5.1%for single family, 5.7%for multi family, and 5.8%for
commercial development. The increases are due primarily to the significant increases experienced
in the cost of transformers, metals and other construction materials.
The impact to a typical single family residence (8,600 sq.ft. lot, 150 amp service) is an increase of
$151 from $2,876 to $3,027, or 5%.
The Water Board reviewed the 2009 water utilities budget and monthly wastewater rate increase
at the September 25, 2008 Board meeting. The Board approved a motion supporting the proposed
budget and rate change.
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October 7, 2008
The Electric Board reviewed the 2009 Light and Power budget and the proposed increases to the
electric rates and development fees and charges at its meeting on September 17, 2008. The Board
approved a motion supporting the proposed budget and fee changes. "
City Manager Atteberry noted the rate increases that are recommended in the proposed ordinances
are pass-through increases from the Platte River Power Authority.
Eric Sutherland, 631 LaPorte Avenue, stated the rate increase for the electric utility includes an
additional amount paid to Platte River Power Authority for energy efficiency expenditures. He asked
if those funds would be spent on local energy efficiency programs. He asked Council to consider
amending Ordinance No. 112, 2008 to eliminate the Green Pricing Program as it was not
accomplishing its goal of financing renewable energy programs.
Bruce Lockhart, 2500 East Harmony, did not support using funds to support renewable energy
sources such as wind power.
Councilmember Roy asked for assurances that the energy funds would be spent on local energy
efficiency programs. Brian Janonis, Utilities Executive Director, stated the electric rate increases
are pass-through costs from Platte River for increased coal and rail costs at the Rawhide and Craig
power plants; increased purchase power costs from Western Area Power Authority; mercury
mitigation costs; expanded energy efficiency programs which are for large, industrial customers,
such as computer industry customers; capital expenditure increases and a reduction in surplus sales
revenues.
Mayor Hutchinson asked if Platte River had plans to increase the purchase of renewable energy
credits(RECs). Janonis stated Fort Collins is not purchasing any additional RECs but is maintaining
the existing contracts.
Councilmember Manvel stated the wastewater utility currently has five reserve funds totally $23
million and he asked why new bonds were being issued to fund the rebuilding of the Mulberry
wastewater treatment plant instead of using the reserves. Terri Bryant,Utilities Finance and Budget
Manager,stated the reserves are not being used because the reserves are not adequate to fund the$31
million project. $6.8 million of the reserves are being used for the design portion of the project and
there are $5 million in other capital projects being planned.
Councilmember Manvel asked if now was a poor time to buy bonds,given the current financial crisis
in the country. Bryant stated the City does not intend to actually sell the bonds until January with
the hope that the bond market will be in better shape after the first of the year.
Councilmember Roy asked if a portion of the increase in electric rates will be used for local energy
efficiency programs. Janonis stated the energy efficiency programs are for local large industries with
planned projects that are looking for additional energy efficiency. Smaller residential and
commercial energy efficiency programs are run internally through the Utilities department.
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October 7, 2008
City Manager Atteberry stated more information about Platter River efficiency programs would be
provided for second reading. When Platte River agreed to the 5-year rate increase schedule, the
increases were intended to cover coal and transportation costs and were spread over a five-year
period to lessen the impact on consumers.
Councilmember Ohlson asked for information to be provided before second reading about
improvements to the Drake wastewater facility to provide odor control; if it was possible to sell
RECs and use the funds to invest locally; and why the proposed wastewater rates are 30%to 40%
higher per month for Fort Collins residents than Greeley and Longmont.
Councilmember Troxell stated the proposed rate increase is different from the future of distributive
power generation which be discussed at a work session in three weeks.
City Manager Atteberry asked what the typical residential bill will increase to with the proposed rate
increases. Bryant stated the wastewater rate increase will raise a typical residential bill by$2.42 per
month to about $28.48.
Councilmember Manvel made a motion,seconded by Councilmember Roy,to adopt Ordinance No.
111,2008 on First Reading. Yeas: Brown,Hutchinson,Manvel,Ohlson,Poppaw,Roy and Troxell.
Nays: none.
THE MOTION CARRIED.
Councilmember Manvel made a motion,seconded by Councilmember Roy,to adopt Ordinance No.
112,2008 on First Reading. Yeas: Brown,Hutchinson,Manvel,Ohlson,Poppaw,Roy and Troxell.
Nays: none.
THE MOTION CARRIED.
Councilmember Manvel made a motion,seconded by Councilmember Roy,to adopt Ordinance No.
113,2008 on First Reading. Yeas: Brown,Hutchinson,Manvel,Ohlson,Poppaw,Roy and Troxell.
Nays: none.
THE MOTION CARRIED.
Ordinance No. 124,2008,
Authorizing the Acquisition by Eminent Domain Proceedings of Certain
Lands Necessary for the Construction of Public Trail Improvements in
Connection with the Mason Corridor Trail Project. Adopted on First Readin¢
The following is staff s memorandum on this item.
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October 7, 2008
"FINANC)AL IMPACT
Property acquisition costs will be covered by available project funds, whether or not eminent
domain is required.
This phase of the Mason Corridor Trail project will rely on grant funding administered through the
Colorado Department of Transportation.
EXECUTIVE SUMMARY
The final phase of the Mason Trail project provides a critical connection between Colorado State
University, the existing Mason Trail between Harmony Road and the Spring Creek Trail, and the
City's community wide trail system(through connections with the Spring Creek Trail and the Fossil
Creek Trail). Due to the importance of this connection, staff is seeking authorization to use the
eminent domain process to acquire the necessary property interests in the event that good faith
negotiations are not successful;staff is hopeful and optimistic that the private property acquisition
will be accomplished by negotiated agreement.
BACKGROUND
In October 2000, the Fort Collins City Council approved the overall Master Plan for the Mason
Transportation Corridor, includingplanned bicycle/pedestrian trail improvements. As ofSeptember
2006, the City completed the first phase of these trail improvements which extend from Harmony
Road north to the Spring Creek Trail.
The current phase, and the last independent segment ofthe Mason Trail(north of Prospect Road the
trail is combined with the Mason Corridor Bus Rapid Transit guideway)continues the existing trail
alignment along the west side of the Burling Northern Santa Fe (BNSF)Railway corridor from the
Spring Creek Trail, north to Prospect Road, a distance ofapproximately one-halfmile. As currently
designed, the proposed segment of trail passes through three separate Colorado State University
(CSU) ownerships and one private property. This Ordinance only pertains to the private property
owner.
The purpose of this Ordinance is to permit staff, if absolutely necessary and only if extensive good
faith negotiations are not successful, to use eminent domain to acquire the necessary property
interests for the proposed trail improvements. Over the past two years the City has had numerous
cooperative and constructive conversations with the property owner, and has every indication that
negotiations will be successful. The property owner favors the trail and has made significant efforts
to include the trail in the owner's pending re-development plans. However, due to the
transportation importance of the bicycle/pedestrian link between Colorado State University, the
existing Mason Trail, the Spring Creek Trail and the City's community wide trail system, and in
deference to the Colorado Department of Transportation's preference to have eminent domain
authorization present prior to formal negotiations, staff recommends adoption of this Ordinance. "
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City Manager Atteberry noted this ordinance relates to the Mason Trail and authorization of the use
of eminent domain is required by the Colorado Department of Transportation.
Bruce Lockhart, 2500 East Harmony, did not support the use of eminent domain for any reason.
Councilmember Manvel noted eminent domain is used only as a last resort and the Mason Trail is
not only a recreational trail but is a transportation corridor for many bicyclists.
Mayor Hutchinson asked how often the City has used eminent domain to acquire property. Helen
Matson, Real Estate Services Manager, stated over ten years, staff has requested authorization for
the use of eminent domain for 100 properties,but only went to court for one property. This request
is required because the project is receiving federal funding,which requires the ability to use eminent
domain. City Manager Atteberry noted City policy states eminent domain proceedings will not be
used unless there are compelling reasons to use it.
Councilmember Roy made a motion,seconded by Councilmember Manvel,to adopt Ordinance No.
124,2008 on First Reading. Yeas: Hutchinson,Manvel,Ohlson,Poppaw,Roy and Troxell. Nays:
Brown.
THE MOTION CARRIED.
Other Business
Councilmember Brown requested a brief report on the status of City debt,how the debt is rated,the
projected revenues relating to the debt and how it will be paid, current revenues compared to
projections for revenues for the current year to be given at the next meeting and on an annual basis.
City Manager Atteberry stated the report will be given at the next meeting.
Councilmember Ohlson made a motion, seconded by Councilmember Manvel, to adjourn the
meeting until the end of the other meetings that Council will be conducting in order to then
reconvene and entertain a motion to go into executive session. Yeas: Brown,Hutchinson,Manvel,
Ohlson, Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
("Secretary's note: The Council adjourned at this point in the meeting to conduct the other
meetings scheduled for tonight.)
Executive Session Authorized
Councilmember Ohlson made a motion, seconded by Councilmember Roy, to go into executive
session,as permitted under Section 2-31(a)(2)of the City Code,to confer with attorneys for the City
regarding potential litigation,and to the extent that the State Sunshine Law may be applicable to the
City, under Section 24-6-402(4)(b) and (e) to confer with the City's attorneys for the purpose of
receiving legal advice on specific legal questions and to determine positions relative to matters that
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may be subject to negotiations; to develop strategy for negotiations; and to instruct negotiators.
Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
Suspension of Rules
Councilmember Brown made a motion, seconded by Councilmember Manvel,to suspend the rules
and extend the meeting past midnight. Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy
and Troxell. Nays: none.
THE MOTION CARRIED.
("Secretary's note: The Council went into executive session at this point in the meeting and
returned at 12:25 a.m.)
Adiournment
Councilmember Ohlson made a motion, seconded by Councilmember Roy to adjourn the meeting
to 6:00 p.m. on October 14, 2008 to consider additional items of business. Yeas: Brown,
Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
The meeting adjourned at 12:26 a.m.
Mayor
ATTEST:
City Clerk
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October 14,2008
COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
Council-Manager Form of Government
Special Meeting- 1:00 p.m.
A special meeting of the Council of the City of Fort Collins was held on Tuesday,October 14,2008,
at 1:05 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered
by the following Councilmembers:Brown,Hutchinson,Manvel,Ohlson,Poppaw,Roy,and Troxell.
Staff Members Present: Atteberry, Harris, Roy.
Executive Session Authorized
Councilmember Ohlson made a motion,seconded by Councilmember Poppaw,to go into executive
session,as permitted under Section 2-31(a)to confer with attorneys for the City regarding potential
litigation and,to the extent that the State's Sunshine Law,under Section 24-6-402(4)(b)and(e)may
be applicable to the City,to confer with the City's attorneys for the purpose of receiving legal advice
on specific legal questions and to determine positions relative to matters that may be subject to
negotiations to develop strategy for negotiations; and to instruct negotiators. Yeas: Brown,
Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
("Secretary's Note: The Council adjourned into Executive Session at 1:05 p.m. and reconvened
following the Executive Session at 2:32 p.m.)
Councilmember Troxell left the meeting during the Executive Session.
Mayor Hutchinson stated the Town of Timnath has passed on first reading,an ordinance annexing
the southwest corner of I-25 and Harmony Road. This is a critical issue for Fort Collins as the
intersection is a gateway to Fort Collins. The City has a formal intergovernmental agreement with
Larimer County,recognizing that the intersection has been in the Fort Collins Growth Management
Area for 28 years. Based on that agreement, Fort Collins has invested heavily in the area,
contributing to major improvements to the 1-25/Harmony interchange,the Transit Center and other
investments. Second reading of the Timnath ordinance is scheduled for October 29, 2008. The
special meeting has been called to allow Council the opportunity to act before that deadline. All
notification requirements have been met in calling the Special Meeting. He asked for Council
discussion regarding the necessity of acting immediately.
Councilmember Manvel stated it is essential for Council to act immediately. Notice of the Special
Meeting was correctly posted but more information was not published before the meeting as details
were under consideration up to the time of the meeting.
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Councilmember Manvel made a motion, seconded by Councilmember Poppaw, finding that the
postponement of any action taken at this meeting would be contrary to the interests of the City.
City Manager Atteberry stated the Town of Timnath has initiated an annexation that encroaches into
the City of Fort Collins' Growth Management Area, which has been in place for 28 years.
Specifically,Timnath has created a flagpole annexation to cross I-25 on Harmony Road,in order to
bring into the Town a property on the southwest corner of I-25 and Harmony. A second annexation
by Timnath will bring in the remainder of the property, which lies between Kechter Road to the
south, Harmony Road to the north, Strauss Cabin Road to the west, and I-25 to the east. Together,
these properties are known as Riverwalk or the Stoner Property. The proposed annexation by
Timnath lies within the City's Growth Management Area. The GMA was implemented through an
intergovernmental agreement between the City of Fort Collins and Larimer County. There are other
cooperative GMAs in the region, including agreements between the City and Loveland, Windsor,
Wellington, and Larimer County. None of these entities have ever utilized hostile annexation into
the City's boundaries. Fort Collins has invested significant funds into the Harmony/1-25 corridor,
based on regional planning and agreements that were in place. He, City staff, and the Mayor have
had multiple contacts with the Town of Timnath and have spent many hours trying to cooperate with
Timnath and find a compromise that would be mutually beneficial, but those efforts have been
unsuccessful,to date. On October 8,2008,a formal objection to the annexation was sent to Timnath
and mediation has been requested. Despite the objection, all indications are that Timnath plans to
proceed with the second reading of the annexation on October 29. He and the Mayor have been told
the annexation will proceed as planned. Timnath's forcible annexation into the 28-year GMA is
completely unacceptable to the City of Fort Collins and it is imperative that Council use every legal
means available to preserve this important gateway to the community. The Town of Timnath issued
a resolution on September 17 that offered Fort Collins a small portion of the revenue from Riverwalk
and gave the City only 30 days to respond to the resolution. Staff has been exploring options to offer
in response and,in order to meet the tight deadline set by Timnath,this Special Meeting was needed.
Staff recommends initiating the City's own annexation in response to the Timnath annexation.
John Kirsch, 2207 Gemstone Court, expressed his disappointment with Council and City
management in the handling of Timnath and Riverwalk Project.
Councilmember Manvel stated calling a special meeting required unusual and extreme circumstances
and this situation met that criteria.
Mayor Hutchinson noted meetings have been held with Timnath in an attempt to reach compromises
on the issue, but no resolution was reached between Timnath and Fort Collins. Good governance
requires Council to act now.
The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw and
Roy. Nays: none.
THE MOTION CARRIED.
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Mayor Hutchinson stated the next step is to adopt an emergency ordinance conveying natural areas
to Fort Collins Capital Leasing Corporation. Since the ordinance was not available for public
inspection at least 24 hours before the meeting,it is necessary to read the ordinance into the record.
City Attorney Roy stated each action taken at this meeting is to facilitate the annexation of property
by the City, which, in part, will overlap a portion of the annexation undertaken by the Town of
Timnath.
Councilmember Poppaw made a motion,seconded by Councilmember Manvel,to adopt Emergency
Ordinance No. 128, 2008, Authorizing the Conveyance of a Portion of the Arapaho Bend Natural
Area to the Fort Collins Capital Leasing Corporation. She read the Ordinance into the record.
Lindsey Kuntz, Real Estate Specialist, read the legal description contained in Exhibit A.
The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw and
Roy. Nays: none.
THE MOTION CARRIED.
City Attorney Roy noted an agreement between Fort Collins Capital Leasing Corporation and the
City for the conveyance of the property and a deed now needed to be signed, after passing
Emergency Ordinance No. 128, 2008.
Mayor Hutchinson signed the agreement and deed, which were accepted by Chuck Seest, Fort
Collins Capital Leasing Corporation Secretary.
City Attorney Roy explained that, during the course of this transaction, the Council will receive a
petition from the Fort Collins Capital Leasing Corporation, which has just taken ownership of the
bulk of the Arapaho Bend Natural Area. This petition will be an application to disconnect portions
of the Natural Area for the purpose of re-annexation. The Land Use Code does not contain a process
for disconnection. State statute contains provisions relating to disconnection but those provisions
only apply to statutory cities. Fort Collins is a home rule city. Staff believes it is advisable for the
City to adopt its own disconnection process, which is the purpose of the next ordinance.
Councilmember Roy made a motion, seconded by Councilmember Poppaw, to adopt Emergency
Ordinance No. 129, 2008, Amending Division 2.12 of the City's Land Use Code to Add a New
Section Establishing a Procedure for Disconnecting Property from the City. He read the Ordinance
into the record. Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw and Roy. Nays: none.
THE MOTION CARRIED.
City Attorney Roy stated Fort Collins Capital Leasing Corporation has signed an application to
disconnect portions of the Natural Area that was conveyed to it. The City Manager has signed a
similar application to disconnect an adjacent part of Harmony Road, as well as certain portions of
Strauss Cabin Road and Kechter Road. Those petitions have been given to the City Clerk. Pursuant
to the new Code provision just adopted,the next step is adoption of a third ordinance that grants the
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disconnect of both properties,for the purpose of the subsequent re-annexation,together with certain
additional properties.
Councilmember Manvel made a motion, seconded by Councilmember Roy, to adopt Emergency
Ordinance No. 130,2008,Authorizing the Disconnection of Portions of Arapaho Bend Natural Area
and Portions of Harmony Road, Strauss Cabin Road and Kechter Road. He read the ordinance into
the record. Kuntz read the legal description contained in Exhibit A. Yeas: Brown, Hutchinson,
Manvel, Ohlson, Poppaw and Roy. Nays: none.
THE MOTION CARRIED.
Adiournment
The meeting adjourned at 3:21 p.m.
Mayor
ATTEST:
City Clerk
197
October 14,2008
COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
Council-Manager Form of Government
Adjourned Meeting-6:00 p.m.
An adjourned meeting of the Council of the City of Fort Collins was held on Tuesday, October 14,
2008, at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was
answered by the following Councilmembers: Brown, Hutchinson, Manvel Ohlson, Poppaw, and
Roy.
Councilmembers Absent: Troxell
Staff Members Present: Atteberry, Harris, Roy.
Resolution 2008-095
Responding to the Town of Timnath's Resolution #19;
Series 2008, Proposing a Program of Cooperation with the
City of Fort Collins Regarding the Riverwalk Project,Adopted
The following is staff's memorandum on this item.
"EXECUTIVE SUMMARY
On September 17, 2008, the Timnath Town Board adopteda Resolutionproposing cooperation with
Fort Collins regarding a property known as "Riverwalk" and requested a response from Fort
Collins within 30 days. Riverwalk, which is located at the southwest corner of Harmony and I-25,
lies within Fort Collins' Growth Management Area (GAM) which is identified in an
Intergovernmental Agreement (IGA) with Larimer County. The IGA was established in 1980 and
Riverwalk was incorporated into Fort Collins' GMA at that time. On September 24, Timnath
initiated an annexation of Riverwalk. On October 1, Timnath Council had its first reading of the
annexation ordinance; the second reading is scheduled for October 29.
Fort Collins'staff has prepared Resolution No.095, 2008, as a response to Timnath's September 17
Resolution. The Resolution describes the City's longstanding willingness to cooperate with Timnath
on mutually acceptable development and revenue sharing approaches for Riverwalk and other I-25
properties ofmutual interest and concern. The Resolution also describes the City's unwillingness
to fund various infrastructure improvements that have been proposed by Timnath and states that the
annexation by Timnath into the approved GAM of the City is not in the spirit of cooperation, but
rather in the spirit of competition.
Due to these, and other undesirable consequences associated with Timnath's annexation into Fort
Collins' GMA, the Resolution states that if Timnath were willing to discontinue its annexation of
Riverwalk, the City would be willing to enter into an IGA with Timnath that establishes I-25 as the
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boundary between the two communities. The City also would consider the possibility of revenue
sharing between the two communities and various other kinds ofcooperative undertakings. Lastly,
the Resolution states that if Timnath proceeds with its annexation into Fort Collins,funding for
various infrastructure improvements and access associated with Riverwalk will be the responsibility
of Timnath andlor the owners and developers of the property.
BACKGROUND
Colorado law encourages regional land use planning and IGAs. " Local governments are
authorized and encouraged to cooperate...with other units of government...for the purposes of
planning or regulating the development of land including....the joint exercise ofplanning zoning,
subdivision, building and related regulations. Local governments may provide through
intergovernmental agreements for the joint adoption ....of mutually binding and enforceable
comprehensive development plans within their jurisdictions. "(29-20-105) Pursuant to this statute,
Fort Collins, Loveland, Windsor and Larimer County have executed IGA's to cooperate in managing
development within their respective jurisdictions. One f ndamental principle underlying regional
cooperation is that municipalities do not annex inside each other's GMA's. The Fort Collins-Larimer
County IGA has included the Riverwalk Property since 1980.
Annexation is a statutory process under which properties adjacent to municipalities become part
of those municipalities. The purposes behind annexation, as stated in the statute are:
(a) To encourage natural and well-ordered development of municipalities of the state;
(b) To distribute fairly and equitably the costs of municipal services among those persons who
benefit therefrom;
(c) To extend municipal government, services and facilities to eligible areas which form apart
of the whole community;
(d) To simplify governmental structure in urban areas;
(e) To provide an orderly system for extending municipal regulations to newly annexed areas;
(f) To reduce friction among contiguous or neighboring municipalities; and
(g) To increase the ability of municipalities in urban areas to provide their citizens with the
services they require. (31-12-102)
Timnath and Fort Collins do not have an IGA. After extensive discussions and negotiations, Fort
Collins presented a draft IGA to the Timnath Town Board in 2003 that Fort Collins understood was
acceptable to the Timnath. The draft IGA included material regarding annexations, development
referrals, community separators, and cooperative planning areas. Timnath declined to execute that
IGA.
In 2002-03, Timnath participated in the Fort Collins-Timnath-Windsor Separator Study which
identified specific opportunities to achieve mutual goals for visual and geographic separation via
purchase of land or development rights. The Study stated that "there is strong local support for
establishing effective community separators...as evidenced by Timnath's update ofits comprehensive
plan to both accommodate and reflect community separator opportunities. "
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Key findings and conclusions from the Study led to subsequent implementation efforts by Fort
Collins'Natural Areas Program. Those efforts were based on the following statements in the Study:
• "...meaningful implementation of these community separators will require significant
purchase ofproperties or development rights by public agencies. "
• "Until Timnath and Windsor adopt open space funding mechanisms, Fort Collins and
Larimer County will need to fund most property and development rights acquisitions in the
area. Fort Collins has afar greater interest in implementing the Fort Collins/Timnath
Separator than Larimer County... "
After the Study was completed, Fort Collins worked with several landowners in the community
separator to acquire conservation easements and 105 acres of fee ground near the Prospect
intersection. In response to Timnath's concerns about its ability to construct various types of
potential public improvements on one of the easements, including expansion of County Road 5 and
food control improvements, the City included specific language in the easement which would allow
infrastructure projects to proceed. The pending draft of the easement was forwarded to the Town
of Timnath with a letter from the Fort Collins'City Manager on March 2, 2005. No response was
received from the Town of Timnath.
Since the time of the Study and Timnath's comprehensive plan of 2003, however, Timnath's vision
for the future has changed. Timnath has dramatically expanded its comprehensive planning area,
even to go so far as to propose incorporating areas of Fort Collins' GMA that have been part of
Fort Collins since 1980. Furthermore, that area, Riverwalk, is now being annexed into Timnath.
In June of 2007, Fort Collins became aware of a proposed revision of Timnath's comprehensive
plan. Fort Collins was not notified of the revision, as required by law. The proposed revision
contained major changes, including expansion of Timnath all the way to County Road 52,far to the
north of any previous comprehensive plan.
After objections by Fort Collins and citizens, in January of this year, the Larimer County
Commissioners tabled consideration of a proposed Timnath-Larimer County Intergovernmental
Agreement (IGA) to establish a Timnath Growth Management Area (GAM) based on the revised
comprehensive plan. At thatpoint, City staffstarted working with Timnath staffto resolve the issues
raised by the City at the Commissioners'public hearing.
City staff believes the main reason for the Larimer County Commissioners'tabling the proposed
IGA was to allow the City and Town to participate in a joint land use planning effort in order to
come to an agreement as to the appropriate land uses and location of GMA boundaries (for both
Timnath and Fort Collins)primarily for the area north of Mulberry Street, but also for additional
areas located east of 1-25, as well as to explore the potential for establishing boundaries for
cooperative planning areas and/or areas of influence.
The comprehensive planning process was to address the following questions/issues:
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1. What is the planning vision for the area?
2. What are the major planning goals?
3. What land uses are envisioned for the area?
4. What are the population employment projections for the area given the planned land uses?
City staff prepared a draft Memorandum of Understanding (MOU)for the City and Town to
participate in a joint land use planning.
Timnath staff responded with a counter MOU which had the following Scope of Work:
a. Identify transportation and storm drainage issues of mutual concern.
b. Identify possible construction and funding opportunities to address issues identified
in a.
C. Work to implement the specific recommended actions resulting from this MOU.
Throughout 2008, City and Town staffinet to dialogue about these, and other, issues. During this
time, the City presented numerous options and ideas for Timnath to consider, including the concept
that each entity would stay on its respective side of I-25. Unfortunately, the Town has either not
been interested in, or has not responded, to these offers. The Town has continued to hold fast to its
expansive, comprehensive plan. Furthermore, unfortunately, the Town has continued to narrow the
scope of the joint meetings. Currently the focus of the meetings is solely on streets within one mile
of 1-25.
In addition to staff meetings with Timnath, Fort Collins' Mayor, Doug Hutchinson, and City
Manager, Darin Atteberry, have met on multiple occasions with the Mayor and Town Manager of
Timnath (Donna Benson and Becky Davidson, respectively). Unfortunately, those meetings have
been unproductive, in spite of the fact that Mayor Hutchinson and City Manager Atteberry offered
numerous concessions to the Town. The Mayor and the City Manager have consistently indicated
to Timnath that an annexation by Timnath into the Fort Collins GMA was unacceptable to Fort
Collins.
In summer of 2007, the developer(s) of Riverwalk (the Stoner Team) approached the City about
annexation and development. After discussions with the Stoner Team, and based on what staff
believed were sound planningprinciples, City staff agreed that a revision ofthe Harmony Corridor
Plan and Design Standards were in order.
Several subsequent meetings were held between City staff and the Stoner Team concerning: details
of the plan amendment and design standards; pre-annexation agreement and conditions;
infrastructure needs;development design;and potential financing strategies. The Stoner Team and
the Cityjointlyfended a study ofengineering optionsfor improving storm drainage across Harmony
Road. Two public open houses were conducted by City staff on the proposed amendments to the
Plan and design standards; the Stoner Team attended and participated in both Open Houses. Staff
presented the amendments to affected boards and commissions. A full day "charette"facilitated by
a local planning consultantf:rm selected and paidfor by the City, was held between the Stoner Team
and City staff to discuss a variety of development issues. The City Council held two work sessions
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related to the property: the first on the overall vision for the I-25 corridor; and the second,
specifically on the proposed amendments to the Harmony Corridor Plan and design standards.
Between November 2007 and Apri12008, City staff continued to work on refining the amendments
(with input from the Stoner Team) and had scheduled to move forward with a recommendation of
approval to City Council;the hearing was scheduled forJune, 2008. In addition, staffdevised a new
process for developers to review their project with the City Council in advance of any decision
making by the Councilor the Planning and Zoning Commission. (Thisprocess was then successfully
utilized by a developer pursuing a major King Soopers and retail development on North College
Avenue.) On or about mid-April 2008, however, staff learned that the Stoner Team was no longer
interested in pursuing the plan amendment; subsequently, the Stoner Team terminated further
negotiations with City staff. Shortly thereafter, the City learned that Timnath was in negotiations
with the Stoner team regarding annexation of the property.
After all the goodfaith dialogue and negotiations related to Timnath's comprehensive plan revision,
the proposed Riverwalk development, and numerous other issues, the City recently learned by
accident (no notice was provided by Timnath) of its proposed annexation of Riverwalk. The City
believes that this annexation clearly is not in the best interests of the City, Timnath, nor the region.
The City believes that thisproposed annexation violates the most fundamental principles ofregional
planning. Almost all of the property to be annexed is contiguous to Fort Collins, and it serves as
an important gateway to the City.
As noted previously, Riverwalk is located within the Fort Collins GMA boundary, which was
established through an IGA between the City of Fort Collins and Larimer County in 1980. The
boundary,for all intents and purposes, represents the future City limits of Fort Collins. There are
a series of policies and specific provisions within the Fort Collins-Larimer County IGA that
essentially require properties to annex into the City prior to their development, or as soon after
development that the requirements of the State's annexation laws can be met. Both the City and the
County have greatly benefitted f•om their IGA. The annexation of the Stoner property into Timnath
would undermine and destroy almost three decades of intergovernmental cooperation of growth
management and land use planning.
Harmony Road is a crucial gateway into Fort Collins and it is extremely important that the road be
identified, designed, built, and maintained to reflect its importance. The City should control
development standards on what is one of the major gateways into its jurisdiction. Furthermore,
revenues from development are important to support City operations and facilities. Moreover, the
City has expended fends and done a great deal ofplanning in the area to achieve the overall vision
for the community and the gateway area. A few tangible examples include: the 1991 Harmony
Corridor Plan; 1995 purchase of Natural Areas in the gateway area; participation in the new
interchange in 1999; the City's park-n-ride; the City taking over responsibility for Harmony Road
from the State;floodplain planning and design in conjunction with different owners over the years;
trail systems throughout the area; and, renaming of streets formerly known as CR7 and CR36.
These investments were not speculative on the City's part. The City relied on the GMA agreement,
geographic ties to Fort Collins, and good faith relationships with all surrounding jurisdictions.
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The state annexation laws are intended not only to provide for the orderly growth of urban
communities but also to reduce friction among contiguous or neighboring communities. Properties
seeking annexation must have one-sixth contiguity to existing municipal boundaries in order to be
eligible for annexation. The purpose of that contiguity requirement is to ensure that a "community
of interest" exists between the area proposed to be annexed and the annexing municipality.
Timnath's annexation ofRiverwalkwouldnotfoster orderly growthpatterns;instead, itwouldlikely
set in motion a patchwork of annexations by competing municipalities on opposite sides of the
Interstate. And, it would certainly not reduce friction between Fort Collins and Timnath. Moreover,
there exists no community interest between Riverwalk and existing Timnath town limits; that
community of interests exists between Riverwalkand Fort Collins. Ifthat were not the case, Timnath
would not need to utilize a flagpole annexation in order to reach inside the Fort Collins GMA and
annex the property.
Thus,for these, and other reasons, on October 8 2008, the City filed an objection and request for
mediation pursuant to Section 24-32-3209(w.3)(b) of the Colorado Revised Statutes. It is Fort
Collins'expectation that, as required by this statute, Timnath will take no further action with regard
to this annexation for at least ninety days from October 8 or until completion of the mediation.
While City staff appreciates Timnath's offer to cooperate with Fort Collins, as expressed in the
resolution of September 17, staff believes that the offer is disingenuous. While expressing an offer
ofcooperation, at the same time Timnath has expanded its growth area into Fort Collins GMA with
a revised comprehensive plan and pursued an annexation into the City's 28 year-old GMA. Further,
staff has learned that the Town of Timnath has approached other properties in our GMA about
potential annexation. These efforts are antithetical to the concept of cooperation.
Even if the City were willing to support the Riverwalk project in Timnath's town boundaries,.
Timnath's resolution states that Timnath would be willing to "assist in funding the needed
infrastructure. " Yet the developer is not proposing to pay the City's impact fees, which would be
used to support these expenses.
Conclusion
Staff believes that Timnath's offer of cooperation is unacceptable. Timnath's annexation of
Riverwalk violates long-standing agreements andregionalplanning efforts andprinciples. Theoffer
is financially unacceptable to Fort Collins because it proposes to place a major fiscal burden on
Fort Collins for a development located in Timnath.
Staff recommends the attached draft resolution as a counter-offer. The resolution states that:
if[Timnath]is willing to not annex the Property to Timnath, the City Council would
be willing to enter into an intergovernmental agreement with Timnath that would
address the regional planning issues referenced above as well as the possibility of
equitable revenue sharing,future Fort Collins community separator acquisitions,
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mutually acceptable GMA boundaries, regional trail collections, and a joint design
review committee.
and, that:
if the Town Board pursues the annexation of the Property, such annexation will
seriously jeopardize these joint planning efforts and the funding of the infrastructure
improvements needed to mitigate the impacts of the development and allow access
thereto will be the sole responsibility of the Town of Timnath and/or the owners and
developers of the Property. "
City Manager Atteberry stated lengthy conversations have been held with the Town of Timnath
regarding various issues, including the possible annexation of the Riverwalk or Stoner Property.
Discussions have also been held regarding stormwater issues,capital facilities,regional cooperative
land use planning as it relates to Timnath's growth management boundary proposals, community
separators,and other issues. The resolution before Council is a counteroffer to the Town of Timnath,
which adopted a resolution on September 17 that offered the City 20% revenue sharing, joint
standards and joint committees. After careful consideration, staff does not find Timnath's offer
acceptable because the offer continues to contemplate the annexation of the Riverwalk Property into
the Town of Timnath. This annexation undermines over 25 years of regional planning that involved
thousands of hours of citizen participation, multiple Councils, Planning Directors, staff and City
Managers. Conversations with Timnath need to continue to attempt to resolve other issues.
Mayor Hutchinson noted a special meeting was held earlier in the day and Council took action to
prevent this annexation. A special meeting was required because second reading of Timnath's
ordinance authorizing the annexation is scheduled to be held on October 29,2008. The City met all
standards for notification to call a special meeting.
Councilmember Roy made a motion, seconded by Councilmember Poppaw, to adopt Resolution
2008-095.
Councilmember Manvel stated Timnath's move to annex property in Fort Collins' GMA is not
acceptable. The proposed Resolution states that the City is willing to enter into an intergovernmental
agreement with Timnath that would address the regional planning issues, if the Town Board of
Timnath is willing to stop the annexation of the Riverwalk Property. Fort Collins is absolutely
opposed to Timnath moving forward with the annexation.
Councilmember Roy stated the special meeting was not a secret meeting, as reported in the
newspaper. The special meeting was held in accordance with all requirements of the Code.
Mayor Hutchinson noted a compromise is still possible with the Town of Timnath and he was
hopeful further conversations could continue. It is in the best interests of the City to retain the
Riverwalk Property within the City's GMA. The City has been a good steward of the area for many
years with the idea of the area as a gateway into Fort Collins. The City has invested in the Park-and-
Ride Transit Center and in the interchange itself.
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Jay Stoner, 605 South College Avenue, developer of the Riverwalk Property, stated the current
actions are combative and detrimental to regional cooperation. Postponing annexation and entering
into mediation can be productive, as long as all parties have the same objective of improving
Northern Colorado.
Rebecca Davidson, Timnath Town Manager, stated the Town of Timnath was willing to enter into
mediation and she believed there was the misunderstanding about the resolution offered by the Town
of Timnath.
The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw and
Roy. Nays: none.
THE MOTION CARRIED.
Adiournment
The meeting adjourned at 6:20 p.m.
Mayor
ATTEST:
City Clerk
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October 21, 2008
COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
Council-Manager Form of Government
Regular Meeting-6:00 p.m.
A regular meeting of the Council of the City of Fort Collins was held on Tuesday,October 21,2008,
at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered
by the following Councilmembers: Brown,Hutchinson,Manvel,Ohlson,Poppaw,Roy,and Troxell.
Staff Members Present: Jones, Krajicek, Roy.
Citizen Participation
Bob McCluskey,719 West Shore Court,thanked Councilmember Brown for his years of active duty
service and for his service to the City.
Eric Sutherland,631 LaPorte Avenue,urged Council to vote against the electric utility rate increase
because there is a lack of planning for the City's energy future.
Carrie Gillis,2213 Timber Creek Drive,thanked Councilmember Brown for his service to the City.
She urged Council to adopt an attitude of cooperation in the mediation process with the Town of
Timnath.
Kevin Cross, 300 Peterson,Fort Collins Sustainability Group, stated the Group did not support the
proposed increase in electric rates as the new rates did not include funding for any of the measures
recommended by the Climate Task Force to reduce community-wide greenhouse gas emissions.
Mary Smith, 1618 Sagewood Drive, stated trash districting will benefit Fort Collins and two City
Boards have given formal recommendations in support of trash districting. She urged Council to
move forward with citywide trash districts.
Shelly Leach, Fort Collins resident,member of the Women's Commission, stated the Commission
encouraged citizens to vote in the November 4 election.
Ray Smith, 1618 Sagewood Drive, urged Council to approve trash districting as it will keep the
numbers of large trucks on neighborhood streets to a minimum and protect children walking to
school.
Ellen Lawson, 519 East Plum, stated trash districting would create one system that would improve
recycling, air quality, and street maintenance.
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October 21, 2008
Citizen Participation Follow-up
Councilmember Troxell stated trash districting is not necessary and a neighborhood can choose to
work together to use one trash hauling company.
Councilmember Manvel stated urged citizens to vote early for the November 4 election as it is a
long, complicated ballot.
Councilmember Ohlson stated it is difficult for individual neighborhoods to work together to use one
trash hauling company. It is much easier for neighborhoods with existing homeowner associations
to contract with one trash hauling company.
Agenda Review
Deputy City Manager Jones requested Item#19 Postponement ofltems Pertaining to the Annexation
of the Eagle View Natural Area to December 2, 2008 be withdrawn from Council consideration.
Item#23 Resolution 2008-100Adopting the 2008 Update to the Three Mile Plan for the City of Fort
Collins is withdrawn to allow for more staff review and will be brought for Council consideration
no later than November 18. Item #30 Consideration of the Appeal to City Council of the Water
Board's August 28, 2008 Denial of the Floodplain Variance for a School in the Poudre River 500-
year Floodplain is postponed to December 16 to allow the Poudre School District Board of
Education time to consider the school's application.
Kevin Cross,300 Peterson,withdrew Item#7,Items Relating to Utility Rates and Charges for 2009.
CONSENT CALENDAR
6. Second Reading of Ordinance No. 110, 2008, Amending the City Code to Increase the
Amounts of the Capital Improvement Expansion Fees Contained in Chapter 7.5 of the Code
so as to Reflect Inflation in Associated Costs of Services.
This Ordinance,unanimously adopted on First Reading on October 7,2008,increases the fee
schedules for the Capital Improvement Expansion fees and Neighborhood Parkland fee by
the estimated 2008 changes in the Denver-Boulder-Greeley Consumer Price Index("CPI").
Costs in the Capital Improvement Expansion fees ("CIEF") Study and the fee schedule for
the Neighborhood Parkland fees were calculated using costs from 1995. The fees were last
adjusted in 2007. This Ordinance increases the CIEF and the Neighborhood Parkland fees
by the estimated 2008 increase in the CPI of 3.70%,and the Street Oversizing fees by 6.30%,
which reflects the projected increase reported in the Engineering News Record.
7. Items Relating to Utility Rates and Charges for 2009.
A. Second Reading of Ordinance No. 111,2008 Amending Chapter 26 of the City Code
Relating to Wastewater Rates and Charges.
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October 21, 2008
B. Second Reading of Ordinance No. 112,2008 Amending Chapter 26 of the City Code
to Revise Electric Rates and Charges.
C. Second Reading of Ordinance No. 113,2008,Amending Chapter 26 of the City Code
to Revise Electric Development Fees and Charges.
These Ordinances, unanimously adopted on First Reading on October 7, 2008, increase
wastewater rates 11%, electric rates by 2.8% on average, and electric development fees by
5-6%. The changes will be effective January 1, 2009.
8. Items Relating to the 2009 Downtown Development Authority Budget.
A. Second Reading of Ordinance No. 114, 2008, Appropriating Downtown
Development Authority Operating Funds and Fixing the Mill Levy for Fiscal Year
2009.
B. Second Reading of Ordinance No. 115, 2008, Appropriating Revenue in the
Downtown Development Authority Debt Service Fund For Payment of Debt Service
for Fiscal Year 2009.
Ordinance No. 114, 2008, appropriates the DDA and Beet Street operating funds for 2009
and sets the mill levy at 5.00 mills, unchanged since 2002 for the 2003 budget.
Ordinance No. 115,2008,appropriates funds for 2009 DDA debt service payments from the
tax increment received by the City. Both Ordinances were unanimously adopted on First
Reading on October 7, 2008.
9. Second Reading of Ordinance No. 116, 2008, Appropriating Prior Year Reserves and
Unanticipated Revenue in Various City Funds and Authorizing the Transfer of Appropriated
Amounts Between Funds or Proiects.
The purpose of this annual "clean-up" ordinance is to combine dedicated revenues or
reserves that need to be appropriated before the end of the year to cover the related expenses
that were not anticipated and,therefore,not included in the 2008 budget. The unanticipated
revenue is primarily from fees, charges, rents, contributions and grants that have been paid
to City departments to offset specific expenses. Prior year reserves are primarily being
appropriated for unanticipated operation expenses from reserves that are set aside for that
purpose. This Ordinance was unanimously adopted on First Reading on October 7, 2008.
10. Second Reading of Ordinance No. 117, 2008,Appropriating Proceeds from the Issuance of
City of Fort Collins Colorado Water Utility Enterprise, Water Revenue Refunding Bonds,
Series 2008 in the Maximum Aggregate Principal Amount of$19,000,000.
Immediately following the October 21,2008 Council meeting,the Board of the Water Utility
Enterprise will consider on second reading Ordinance No.006,which authorizes the issuance
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October 21, 2008
of City of Fort Collins Colorado,Water Utility Enterprise,Water Revenue Refunding Bonds,
Series 2008,in the Maximum Aggregate Principal Amount of$19,000,000. The bonds will
be issued to refund, pay and discharge all of the outstanding Water Revenue Refunding
Bonds and Improvement Bonds, Series 1998.
The City will be paying off higher cost bonds with new bonds that will have lower interest
rates. All utility bonds are issued by the appropriate utility enterprise; however, the City
Charter grants only the Council the power to appropriate the funds. Therefore, this action
by the Council is necessary in order to appropriate the bond proceeds for the Water Utility.
Authorizing the issuance of the bonds and appropriating the proceeds are both necessary to
complete the bond transaction. The final rates will be determined by selling the bonds at a
competitive sale later this year. This Ordinance,was unanimously adopted on First Reading
on October 7, 2008.
11. Second Reading of Ordinance No. 118.2008,Appropriating the Funds from the Downtown
Development Authority and Unanticipated Colorado Department of Transportation SB-1
Funding into the Mason Corridor Capital Project Account.
This Ordinance, unanimously adopted on First Reading on October 7, 2008, appropriates
funding provided from contracts between the City and CDOT and the City and DDA to
advance work on the Phase 1 of the Mason Corridor/MAX Bus Rapid Transit(BRT)project.
This funding will be used for final design/engineering,construction,and vehicle acquisition.
12. Second Reading of Ordinance No. 119,2008,Appropriating Unanticipated Grant Revenues
in the General Fund for the Restorative Justice Program and Authorizing the Transfer of
Matching Funds Previously Appropriated in the Police Services Operating Budget.
A grant in the amount of$19,513 has been received from the Colorado Division of Criminal
Justice, Juvenile Accountability Block Grant, for the continuation of Restorative Justice
Services. This Ordinance, unanimously adopted on First Reading on October 7, 2008,
appropriates those funds. A cash match of$2,168 (10%) is required and will be met by
appropriating the funds from the Police Operating budget.
13. Second Reading of Ordinance No. 120, 2008, Amending Section 2.9.3(B) of the Land Use
Code Modifying the Procedure for Initiating a Text Amendment.
This Ordinance, unanimously adopted on First Reading on October 7, 2008, amends the
procedure to initiate a text amendment to the Land Use Code. The amendment deletes the
ability to propose a text amendment to the Land Use Code by any resident of the city,or any
owner or person having an interest in land located within the municipal boundaries of the
city. Residents and owners are not prohibited from proposing text amendments. Instead of
a direct application,however,a request would be subject to established City Council policy
which requires that proposed changes would need to be supported by the City Manager,the
Leadership Team, or three Councilmembers.
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October 21, 2008
14. Second Reading of Ordinance No. 121 2008, Amending Section 2-119 of the City Code
Pertaining to the Functions of the Building Review Board.
This Ordinance,unanimously adopted on First Reading on October 7,2008,amends Section
2-119 of the City Code to update the functions of the Building Review Board. These
provisions include:
• Authorizing the Building Review Board to consider a contractor license applicant's
alternative qualifications;
• Adding a new provision to formally authorize the Building Review Board to serve
as the"board of appeals"for appeals related to International Property Maintenance
Code (IPMQ and Supplemental Rental Housing Provisions; and
• Adding a new provision to authorize the Building Review Board to advise City
Council on policy matters related to functions of the Board.
15. Second Reading of Ordinance No. 123, 2008, Authorizing the Conveyance to the Platte
River Power Authority of an Easement and Right-of-Way and a Temporary Construction
Easement on the City-Owned Fossil Creek Wetlands Natural Area.
Platte River Power Authority is constructing a new transmission line in southeast Fort
Collins to support a request from the City for a new substation at Trilby Road and Portner
Road. The new transmission line will cross a portion of the Fossil Creek Wetlands Natural
Area. The transmission line will be constructed using a direct drilling procedure that will not
result in any surface disturbance within the permanent easement. A temporary easement
consisting of 0.493 acres will be used to stage and operate the drilling equipment. Surface
disturbance and subsequent restoration activities will occur within the temporary easement.
This Ordinance,unanimously adopted on First Reading on October 7,2008, authorizes the
conveyance of the easements.
16. Second Reading of Ordinance No. 125, 2008, Amendin¢ the Zoning Map of the City by
Changing the Zoning Classification for that Certain Property Known as the Vineyard
Rezoning.
This Ordinance,unanimously adopted on First Reading on October 7,2008,rezones an 8.68
acre parcel located on the west side of South College Avenue immediately north of
Crestridge Drive. The current zoning district designation is Community Commercial (CC)
District. The applicant proposes zoning of Commercial (C) District. A Structure Plan
amendment is not necessary for this rezoning request. There are no perceived issues or
known controversies with this rezoning request.
17. Second Reading of Ordinance No. 126,2008,Authorizing the PurchasinaAgent to Enter into
an Extension of the City Park Nine Golf Course Golf Services and Concession Agreement
for up to Five Additional Years.
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October 21, 2008
This Ordinance, unanimously adopted on First Reading on October 7, 2008, extends the
agreement with City Park Nine Golf Course Golf Professional/Concessionaire,DMAC Golf,
LLC, for up to five (5) additional one-year renewable periods through December 31,2013.
18. First Reading of Ordinance No. 131,2008,Appropriating Funds for the Harmonv and Zieeler
Roads Improvements Project.
In Spring 2007, Council heard estimates and appropriations for the Harmony Road and
Ziegler Road Improvements, Front Range Village Development. This Project is now
complete,with the final pavement overlay completed this spring on Harmony Road and the
roundabout at Horsetooth and Ziegler.The financial closeout ofthe project is underway.This
appropriation reconciles the various funds that contributed to the project and appropriates
additional amounts to cover unanticipated expenses in the project.
19. Postponement of Items Pertaining to the Annexation of the Eagle View Natural Area to
December 2, 2008.
A. Resolution 2008-097 Setting Forth Findings of Fact and Determinations Regarding
the Eagle View Natural Area First Annexation.
B. Hearing and First Reading of Ordinance No. 132,2008,Annexing Property Known
as the Eagle View Natural Area First Annexation to the City of Fort Collins,
Colorado.
C. Hearing and First Reading of Ordinance No. 133,2008,Amending the Zoning Map
of the City of Fort Collins and Classifying for Zoning Purposes the Property Included
in the Eagle View Natural Area First Annexation to the City of Fort Collins,
Colorado.
D. Resolution 2008-098 Setting Forth Findings of Fact and Determinations Regarding
the Eagle View Natural Area Second Annexation.
E. Hearing and First Reading of Ordinance No. 134,2008,Annexing Property Known
as the Eagle View Natural Area Second Annexation to the City of Fort Collins,
Colorado.
F. Hearing and First Reading of Ordinance No. 135,2008,Amending the Zoning Map
of the City of Fort Collins and Classifying for Zoning Purposes the Property Included
in the Eagle View Natural Area Second Annexation to the City of Fort Collins,
Colorado.
The above items represent a 100%voluntary request to annex approximately 86 acres known
as the Eagle View Natural Area and place the area into the POL—Public Open Lands Zone
District. The annexations encompass an area slightly larger than the 86 acre natural area,or
a total of about 90.8 acres,due to the inclusion of adjacent County road rights-of-way. Staff
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October 21, 2008
is requesting a postponement of these annexations to December 2, 2008 to allow time for
consideration of various annexation strategies in the area of Kechter Road and Strauss Cabin
Road.
20, First Reading of Ordinance No. 136,2008,Desi ng ating the Loomis-Jones House,401 Smith
Street as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code.
The owners of the property, Ralph and Patricia Tvede, are initiating this request for Fort
Collins Landmark designation for the property. The property has significance to Fort Collins
under Landmark Preservation Standards(1)and(3). The residence is one of the oldest frame
houses in Fort Collins, and embodies many distinctive characteristics of the Vernacular
Architectural Style of the late 19th and early 20th centuries. Additionally,the house at 401
Smith is significant for its association with Abner Loomis, an important and well-known
early citizen of Fort Collins. Furthermore, the Loomis-Jones House is a rare surviving
example of vernacular residential architecture, built within two decades after the
establishment of the Fort Collins town site. It has been an integral part of the Eastside
residential area since before 1894 and contributes to the historic architectural character and
diversity of the area.
21. First Reading of Ordinance No. 137, 2008, Desi ng ating the Ricketts Farm, 2300 West
Mulberry, as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code.
The owners of the property, Richard and Teresa Ricketts, are initiating this request for Fort
Collins Landmark designation for the property. The property has significance to Fort Collins
under Landmark Preservation Standards(2)and(3). The Ricketts Farm was the home of the
Philander Ricketts family,prominent early citizens of Fort Collins. The residence,designed
and constructed by Philander Ricketts, embodies many unusual construction techniques of
the period, as well as many distinctive characteristics of early 20th century Vernacular
Architecture.
22. Resolution 2008-099 Submitting the Urban Renewal Plan for the Prospect South Area to the
Planning and Zoning Board the Latimer County Board of Commissioners and the Poudre
School District Board of Education.
Staff is taking the necessary steps to bring forward an Urban Renewal Plan for Prospect
South. One of the necessary steps required by Colorado's Urban Renewal Law is for the
Council to formally submit the Urban Renewal Plan to the Planning and Zoning Board,the
Poudre School District Board of Education, and the Latimer County Board of
Commissioners for its review and, with respect to the Planning and Zoning Board, for a
written recommendation as to its conformity with City Plan.
The Planning and Zoning Board is scheduled to review the proposed Urban Renewal Plan
on November 20, 2008. The Council is scheduled to conduct a public hearing and consider
resolutions approving an Existing Conditions Study and the Urban Renewal Plan for the
Prospect South area at its December 2 regular meeting. Adoption of this Resolution,
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referring the Plan to the other respective bodies, does not commit the Council to approving
the Existing Conditions Study and Urban Renewal Plan for the Prospect South area.
23. Resolution 2008-100 Adopting the 2008 Update to the Three Mile Plan for the City o Fort
Collins.
The Three-Mile Plan is a policy document that is required to ensure that the City complies
with the regulations of the Colorado Revised Statutes. This is the 2008 update to the Three-
Mile Plan for the City.
24. Resolution 2008-101 Authorizing a Grant Agreement with the State of Colorado and an
Intergovernmental Agreement with Larimer County to Receive Grant Funds from the State
of Colorado for Construction of Trails and Other Public Improvements at Soapstone Prairie
Natural Area.
The City of Fort Collins and Latimer County have received a special cycle trails grant from
the State of Colorado's Great Outdoors Colorado(GOCO)to help fund construction of trails
and other public improvements at Soapstone Prairie Natural Area and Red Mountain Open
Space. This Resolution will authorize the City Manager to sign a Grant Agreement with the
State of Colorado and enter into an Intergovernmental Agreement (IGA) with Larimer
County to facilitate acceptance and dispersal of the funds.
25. Resolution 2008-102 Approving and Adopting an Identity Theft Prevention Program of the
City's Utilities for the Detection. Prevention and Mitigation of Identity Theft.
Under the revision to the FACT Act 2003 (Fair and Accurate Credit Transactions Act),each
utility is required to have policies and procedures in place by November 1,2008 which meet
the standards outlined by Federal Agencies including the Federal Trade Commission. There
are a number of red flags or potential warnings of identity theft included in current
legislation. Portions of these occur more frequently in utilities than others. The role of the
Council acting as the City's Board of Directors is to grant initial approval of the Identity
Theft Program plan before implementation and annual report review.
26. Resolution 2008-103 Reappointing Utilities Executive Director Brian Janonis to the Platte
River Power Authority Board of Directors.
The Platte River Power Authority Board of Directors is comprised of two representatives
from each of the four member cities.The Mayor(or Mayor's designate)fills one slot and the
second representative is appointed by the Council. Utilities Executive Director Brian Janonis
has served as the City's representative since February 2008 to the expiration of his term on
December 31, 2008.
This Resolution reappoints Brian Janonis for the new term which expires December 31,2012
or until such appointment is changed by the Council.
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October 21, 2008
***END CONSENT***
Ordinances on Second Reading were read by title by City Clerk Krajicek.
6. Second Reading of Ordinance No. 110, 2008, Amending the City Code to Increase the
Amounts of the Capital Improvement Expansion Fees Contained in Chapter 7.5 of the Code
so as to Reflect Inflation in Associated Costs of Services.
7. Items Relating to Utility Rates and Charges for 2009.
A. Second Reading of Ordinance No. 111,2008 Amending Chapter 26 of the City Code
Relating to Wastewater Rates and Charges.
B. Second Reading of Ordinance No. 112,2008 Amending Chapter 26 of the City Code
to Revise Electric Rates and Charges.
C. Second Reading of Ordinance No. 113,2008,Amending Chapter 26 of the City Code
to Revise Electric Development Fees and Charges.
8. Items Relating to the 2009 Downtown Development Authority Budget.
A. Second Reading of Ordinance No. 114, 2008, Appropriating Downtown
Development Authority Operating Funds and Fixing the Mill Levy for Fiscal Year
2009.
B. Second Reading of Ordinance No. 115, 2008, Appropriating Revenue in the
Downtown Development Authority Debt Service Fund For Payment of Debt Service
for Fiscal Year 2009.
9. Second Reading of Ordinance No. 116, 2008, Appropriating Prior Year Reserves and
Unanticipated Revenue in Various City Funds and Authorizing the Transfer of Appropriated
Amounts Between Funds or Projects.
10. Second Reading of Ordinance No. 117, 2008,Appropriating Proceeds from the Issuance of
City of Fort Collins, Colorado,Water Utility Enterprise, Water Revenue Refunding Bonds,
Series 2008, in the Maximum Aggregate Principal Amount of$19,000,000.
11. Second Reading of Ordinance No. 118,2008,Appropriating the Funds from the Downtown
Development Authority and Unanticipated Colorado Department of Transportation SB-1
Funding into the Mason Corridor Capital Project Account.
12. Second Reading of Ordinance No. 119,2008,Appropriating Unanticipated Grant Revenues
in the General Fund for the Restorative Justice Program and Authorizing the Transfer of
Matching Funds Previously Appropriated in the Police Services Operating Budget.
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October 21, 2008
13. Second Reading of Ordinance No. 120, 2008,Amending Section 2.9.3(B) of the Land Use
Code Modifying the Procedure for Initiating a Text Amendment.
14. Second Reading of Ordinance No. 121, 2008, Amending Section 2-119 of the City Code
Pertaining to the Functions of the Building Review Board.
15. Second Reading of Ordinance No. 123, 2008, Authorizing the Conveyance to the Platte
River Power Authority of an Easement and Right-of-Way and a Temporary Construction
Easement on the City-Owned Fossil Creek Wetlands Natural Area.
16. Second Reading of Ordinance No. 125, 2008, Amending the Zoning Map of the City by
Changing the Zoning Classification for that Certain Property Known as the Vineyard
Rezoning.
17. Second Reading of Ordinance No. 126,2008,Authorizing the Purchasing Agent to Enter into
an Extension of the City Park Nine Golf Course Golf Services and Concession Agreement
for up to Five Additional Years.
31. Items Relating to the Adoption of the 2006 International Property Maintenance Code
(IPMC)® with Local Amendments Relating to Existing Building Conditions and Rental
Housing Standards.
A. Second Reading of Ordinance No. 108, 2008, Amending Chapter 5, Article II,
Division 3, of the City Code for the Purpose of Adopting the 2006 International
Property Maintenance Code (IPMC)®, with Amendments.
B. Second Reading of Ordinance No. 109, 2008, Amending Chapter 5, Article VI,
Division 2, of the City Code Relating to Supplemental Rental Housing Provisions.
32. Second Reading of Ordinance No. 124, 2008, Authorizing the Acquisition by Eminent
Domain Proceedings of Certain Lands Necessary for the Construction of Public Trail
Improvements in Connection with the Mason Corridor Trail Project.
Ordinances on First Reading were read by title by City Clerk Krajicek.
18. First Reading of Ordinance No. 131,2008,Appropriating Funds for the Harmony and Ziegler
Roads Improvements Project.
20. First Reading of Ordinance No. 136,2008,Designating the Loomis-Jones House,401 Smith
Street, as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code.
21. First Reading of Ordinance No. 137, 2008, Designating the Ricketts Farm, 2300 West
Mulberry, as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code.
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October 21, 2008
Councilmember Manvel made a motion,seconded by Councilmember Poppaw to adopt and approve
all items not withdrawn from the Consent Calendar . Yeas: Hutchinson,Manvel, Ohlson, Poppaw,
Roy and Troxell. Nays: none.
THE MOTION CARRIED.
Staff Reports
Chuck Seest, Finance Director, gave a report on the status of City debt and bond rating. The City
has a $350 million portfolio invested primarily in bonds that have continued to pay interest and
mature. Cash kept for operations, which can vary on a weekly amount from $8 million to $15
million, is divided between the local agency investment funds in the state and First National Bank
which minimized the City's losses in the recent national financial crisis. The City did experience
a$45,000 investment loss when the Colorado Diversified Trust,the liquid government investment
pool, experienced a loss of millions of dollars after Lehman Brothers went under. The investment
portfolio is expected produce a 3.5%return for 2008. The stormwater and water utilities debt rating
has been upgraded to AA+. That rating will benefit the City when bonds are sold. The City's
"Policy Target"to manage debt states no more than 15%of overall governmental expenditures can
be used to service debt. Debt service costs have been kept below 10% for the past two years.
Councilmember Ohlson asked if the phrase"Policy Target"could be changed to indicate 15%is a
maximum amount allowed for debt service. Seest stated the phrase "Policy Target" originated in
the 1980s, when the City's debt service was much higher than 15% and lowering the debt service
to 15%was a target goal of the City. It is a phrase that can be changed.
Councilmember Ohlson asked for a comparison to peer cities of the total debt in dollar amounts and
percentages.
Councilmember Brown asked what was the composition of the investment portfolio. Seest stated
the investments were primarily in federal agency-backed notes such as federal home loan credit,
Fannie Mae, Freddie Mac, and in Triple-A corporates such as Bershire-Hathaway.
Councilmember Ohlson asked about future warning signs. Seest stated understanding what the
recent federal actions mean for Fannie Mae and Freddie Mac investments and where to reinvest the
City's funds will be a constant challenge.
Deputy City Manager Jones stated the Water Treatment Facility recently received a second Bronze
Environmental Achievement Award from the Colorado Department of Public Health and
Environment for its substantial natural gas savings. The Water Treatment Facility also won the
Director's Award for Partnership for Safe Water for continued success in water quality.
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October 21, 2008
Councilmember Reports
Councilmember Ohlson stated the Downtown Development Authority annual retreat was held and
proposals for 2009 such a future downtown amphitheater,a state-of-the-art community market,alley
improvement projects were discussed.
Items Relating to the Adoption of the 2006International Property
Maintenance Code (IPMC)®with Local Amendments Relating to
Existing Building Conditions and Rental Housing Standards, Adopted on Second Readin¢
The following is staff s memorandum on this item.
"EXECUTIVE SUMMARY
A. Second Reading of Ordinance No. 108, 2008, Amending Chapter 5, Article II, Division 3,
of the City Code for the Purpose ofAdopting the 2006International Property Maintenance
Code (IPMC) with Amendments.
B. Second Reading of Ordinance No. 109, 2008, Amending Chapter 5, Article VI, Division 2,
of the City Code Relating to Supplemental Rental Housing Provisions.
Ordinance No. 108, 2008, unanimously adopted on First Reading on October 7, 2008, adopts the
IPMC with local amendments as a tool to replace the City's obsolete codes relating to existing
building conditions and rental housing.
Ordinance No. 109, 2008, adopted on First Reading on October 7, 2008, by a vote of 5-2 (nays:
Brown, Troxell) amends Chapter 5, Article VI, Division 2 (Rental Housing Standards) of the City
Code relating to Supplemental Rental Housing Provisions to eliminate duplicate provisions now
included in the IPMC. These provisions apply to all rental housing, including single and multi-
family dwellings, manufactured housing, and hotels and rooming houses.
On First Reading, Section 5-261 of the City Code regardingfees was amended. In order to explore
additional options with regard to that provision, the Council Leadership Team has recommended
that no changes be made to Section 5-261 at this time. Therefore, thatprovision has been withdrawn
and will be considered separately at the Council Meeting of December 2, 2008. "
Jeff Scheick, Planning Development and Transportation Director, stated the 2006 International
Property Maintenance Code (IPMC) establishes minimum health and safety requirements and
corrective procedures applicable to all existing residential buildings and all non-residential buildings
and replaces obsolete regulations currently in effect. The rental housing standards updates existing
rental housing regulations relating to administration and procedures and eliminates duplicate
provisions that are included in the IPMC. It will apply to all rental housing, including single and
multi-family dwellings, manufactured housing, hotels and rooming houses. The rental housing
standards have been revised by withdrawing provisions establishing collection of permit and impact
fees for conversion to, or creation of, rental dwelling units. This provision will be considered as a
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October 21, 2008
separate item on December 2. Adoption of the IPMC and the rental housing standards will improve
staff s ability to administer the regulations and should not require additional administrative costs.
The conditions that need correction may result in additional cost to the property owner.
Mayor Hutchinson noted the issue of fees charged for non-recorded converted rentals has been
removed from the ordinance and will be considered separately on December 2.
Carrie Gillis,2213 Timber Creek Drive,stated the requirements of the IPMC should not be limited
to rentals,but should include owner-occupied,single family dwellings. She urged Council to include
owner-occupied dwellings in the IPMC.
Alan Cram, 2425 Hampshire Square, did not support adoption of the rental housing standards as
current codes were already in place to address issues that arise and another layer of rules were not
necessary.
Mayor Hutchinson stated asked how many rental properties would be affected by the rental housing
standards. Mike Gebo, Deputy Building Official, stated six properties in town are dangerous
buildings that cannot be addressed by using the current Code. Many rental properties will need
improvement to meet the new rental housing standards.
Councilmember Manvel asked if the new provisions to the rental housing standards were a big
change from the current standards. Gebo stated improvements are contained in the new provisions
such as enlarging egress windows in basement bedroom windows and requiring smoke and carbon
monoxide detectors.
Mayor Hutchinson asked what outreach has been done to gather public input. Felix Lee, Director
of Neighborhood and Building Services, stated outreach began over two years ago when a work
session was held with Council. Numerous public meetings have been held; staff has made several
presentations to the Board of Realtors and to various boards and commissions.
Councilmember Brown asked if a historically designated home that is used as a bed and breakfast
or as a rental unit could be required to meet the standards. Lee stated an exception exists for historic
properties,if the exception is not related to health or safety. If a modification is necessary for health
or safety reasons, the City would allow modification of the historic home.
Councilmember Troxell stated statistics provided by staff show there are approximately 12,000
renters in the city and he asked if the City had a list of addresses for rentals. Lee stated no list was
available to staff.
Councilmember Troxell asked how many rentals need to make improvements to become compliant
with the new standards and if the current Code is sufficient to address most issues that arise. Gebo
stated inspectors find many properties that are lacking smoke detectors,have malfunctioning heating
systems,or do not have screens in the summer,but no set number is known of how many rentals will
need corrections. The current Code does not address some issues, such as requiring heating
capability to 68 degrees,requiring smoke detectors or carbon monoxide detectors in all dwellings,
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October 21, 2008
requiring screens during the summer months. The new provisions are improvements to the basic
tools already available to inspectors.
Councilmember Troxell asked for the cost of rent of an average rental property and what will be the
impact of the new provisions on rental rates. Lee stated he could provide the average rent cost at a
later date. Staff projects the costs of most improvements will be recouped by the property owner in
just a few months.
Councilmember Troxell asked if market demand for rentals would force property owners to keep
their properties up to acceptable standards without needing more regulations imposed upon property
owners. Scheick noted the public outreach done for the past two years included a large portion of
the housing industry and the feedback received from those groups showed that the market can afford
the improvements that will be required and keep rents at a consistent rate.
Councilmember Manvel asked why owner-occupied dwellings will be excluded from the IPMC. Lee
stated the exemption was included in the amendments to the IPMC because of concern about owner
property rights issues. A renter has less control over the dwelling conditions and the IPMC will
assist renters with issues that can arise with rental units.
Mayor Hutchinson noted the exclusion of owner-occupied properties was intended to make the
IPMC less intrusive and still allow renters some recourse with properties that are not up to certain
standards.
Councilmember Roy made a motion,seconded by Councilmember Manvel,to adopt Ordinance No.
108, 2008 on Second Reading.
Councilmember Manvel stated raising the heating standard from 60 degrees to 68 degrees will lessen
the use of space heaters in rental housing and increase safety. Requiring screens on windows in the
summer also will protect renters from West Nile virus. If a property already meets the standards in
the IPMC with amendments, the property owner will not have any increased cost to bring the
property up to the standard.
Councilmember Troxell stated data has not been provided to support adding more requirements for
rental housing. The rental housing market will mandate that landlords keep their properties in
acceptable condition and those properties that are not in habitable living conditions will not be
rented.
Councilmember Ohlson suggested staff develop a plan to provide an amnesty period of up to one
year to bring non-conforming duplexes into compliance and get a certificate of occupancy,provided
the zoning of the property allows for multi-family dwellings, with no charge of impact fees, other
than the processing costs required to obtain a certificate of occupancy. The goal is reinvestment in
properties, compliance, and improving the safety of the residents.
Councilmember Roy stated it is reasonable for the City to ensure renters have a safe and healthy
place to live.
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October 21, 2008
Mayor Hutchinson noted a list of rentals is not available because the City does not require rental
registration.
Councilmember Brown stated he did not support charging impact fees on properties that were
converted years ago but he could support an amnesty period to provide time for non-conforming
rental properties to acquire a certificate of occupancy. Safety standards for renters are essential.
Councilmember Troxell stated the City currently has affordable and safe housing and the
supplemental rental housing standards are too intrusive and no data has been provided to show a
need for those standards.
Mayor Hutchinson stated the proposed standards are not intrusive into private property and provide
reasonable standards for housing.
The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw,Roy
and Troxell. Nays: none.
THE MOTION CARRIED.
Councilmember Roy made a motion,seconded by Councilmember Manvel,to adopt Ordinance No.
109, 2008 on Second Reading.
Councilmember Roy expressed his support for an amnesty period to bring non-conforming rental
properties into compliance and acquire a certificate of occupancy.
Councilmember Manvel noted the portion of the supplemental rental housing standards that required
fees for non-conforming rental properties had been removed and he asked why all Councilmembers
did not now support the ordinance.
Councilmember Troxell did not believe there was a safety issue with rental housing in the City and
the proposed standards only add more regulations that are not necessary and will negatively impact
affordable housing by causing increase in rent.
Councilmember Manvel stated the ordinance mainly contains definitions and does not contain any
increased standards that could increase costs. Lee stated the revised ordinance is primarily
administrative,clarifying the appeals process,fines,civil citations and other procedural matters and
does not address habitability standards.
Councilmember Ohlson stated staff had worked diligently to build consensus on this item and the
standards provide very basic requirements for renters that address safety and health. Protecting the
rights of renters is a basic component of government and he would have liked the standards to be
more stringent.
Councilmember Troxell stated the ordinance did incorporate dwelling conditions and he did not
believe added regulations were necessary.
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October 21, 2008
The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, and
Roy. Nays: Troxell.
THE MOTION CARRIED.
("Secretary's note: The Council took a brief recess at this point in the meeting.)
Ordinance No. 124,2008,
Authorizing the Acquisition by Eminent Domain Proceedings of Certain
Lands Necessary for the Construction of Public Trail Improvements in
Connection with the Mason Corridor Trail Project.Adopted on Second Readine
The following is staff s memorandum on this item.
"EXECUTIVE SUMMARY
The final phase of the Mason Trail project provides a critical connection between Colorado State
University, the existing Mason Trail between Harmony Road and the Spring Creek Trail, and the
City's community wide trail system(through connections with the Spring Creek Trail and the Fossil
Creek Trail). Due to the importance of this connection, staff is seeking authorization to use the
eminent domain process to acquire the necessary property interests in the event that good faith
negotiations are not successful; staff is hopeful and optimistic that the private property acquisition
will be accomplished by negotiated agreement. This Ordinance, adopted on First Reading by a vote
of 6-1 (nays: Brown) will authorize staff, if absolutely necessary and only if extensive good faith
negotiations are not successful, to use eminent domain to acquire the necessary property interests
for the proposed trail improvements. "
Councilmember Manvel made a motion,seconded by Councilmember Roy,to adopt Ordinance No.
124, 2008, on Second Reading.
Mayor Hutchinson asked why authorization to use eminent domain is required. Helen Matson,Real
Estate Services Manager, stated the project is federally funded and any time federal funds are used,
eminent domain must be authorized to receive those funds. The property owner is very cooperative
and staff does not anticipate using eminent domain.
Councilmember Roy asked for an update on the Mason Corridor Project. Mark Jackson,
Transportation Group Director, stated acquiring this property will help staff complete the Mason
Trail north to the CSU campus. Two grade-separated crossings are underway along the Mason Trail.
The Transit Project has received $4.6 million from the State of Colorado for the first phase of the
Mason Corridor Bus Rapid Transit from the Downtown Transit Center into CSU.
The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy
and Troxell. Nays: none.
THE MOTION CARRIED.
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October 21, 2008
Resolution 2008-104
Excusing the Absence of Councilmember Diggs Brown From Future
Meetings of the City Council,Adopted
The following is staff s memorandum on this item.
"EXECUTIVE SUMMARY
As a member of the country's armed services, Councilmember Brown has received orders for
deployment outside of the United States. This will be the last Council meeting for Councilmember
Brown until his deployment is over or until his term on the Council ends in April 2009.
Resolution 2008-104 excuses Councilmember Brown from all regular and special Council meetings
during his deployment and recognizes his contributions as a Councilmember and member of the
armed services.
BACKGROUND
In addition to his service to the community as a member of the Fort Collins City Council, Major
Diggs Brown is an active member ofthe Colorado Army National Guard. Major Brown has recently
received orders for deployment outside of the United States, and this will be his last Council
meeting.
Under the City Charter, a Council seat is considered vacant if the Councilmember misses regular
and special meetings for 60 consecutive days, unless excused by resolution of the Council. "
The following citizens expressed their thanks and appreciation to Councilmember Brown for his
service to the City and the United States:
David May, 225 South Meldrum
Eric Kronwall, 1119 Monticello Court
Kevin Westhuis, 2944 Telluride Court, Fort Collins Board of Realtors
Mel Hilgenberg, 172 North College
Vivian Armendariz, 820 Merganser Drive
Councilmember Ohlson made a motion,seconded by Councilmember Troxell,to adopt Resolution
2008-104 and he read the resolution in its entirety.
Councilmember Poppawthanked Councilmember Brown for his service on City Council and wished
him well.
Councilmember Roy commended Councilmember Brown for his service and dedication to the City.
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October 21, 2008
Councilmember Troxell expressed his appreciation for Councilmember Brown's service to the
country by serving in the U.S. Army for many years and for his service to the City. He noted
Councilmember Brown was instrumental in creating the Veterans Plaza.
Councilmember Manvel thanked Councilmember Brown for his commitment to the City and his
willingness to discuss issues and work with Council.
Councilmember Ohlson stated excusing Councilmember Brown was an appropriate decision by
Council and he thanked Councilmember Brown for his dedication to the City.
Mayor Hutchinson expressed his gratitude to Councilmember Brown for his service to the
community and to the country.
Councilmember Brown stated it was a great honor to serve in the military for 30 years and to serve
on Council for 3 1/2 years. He was proud of working to add two patrol officers to the City's police
force without raising taxes and for initiating the creation of the Veteran's Plaza at Spring Canyon
Community Park.
Mayor Hutchinson presented Councilmember Brown with a framed picture of downtown Fort
Collins in appreciation of his service.
The vote on the motion was as follows: Yeas: Hutchinson, Manvel, Ohlson, Poppaw, Roy and
Troxell. Abstain: Brown
THE MOTION CARRIED.
Items Relating to Utility Rates and Charges for 2009,Adopted on Second Readine
The following is staff s memorandum on this item.
"EXECUTIVE SUMMARY
A. Second Reading of Ordinance No. 111, 2008 Amending Chapter 26 of the City Code
Relating to Wastewater Rates and Charges.
B. Second Reading of Ordinance No. 112, 2008 Amending Chapter 26 of the City Code to
Revise Electric Rates and Charges.
C. Second Reading of Ordinance No. 113, 2008, Amending Chapter 26 of the City Code to
Revise Electric Development Fees and Charges.
These Ordinances, unanimously adopted on First Reading on October 7, 2008, increase wastewater
rates 11%, electric rates by 2.8%on average, and electric development fees by 5-6%. The changes
will be effective January 1, 2009. "
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October 21, 2008
Councilmember Roy asked if adopting the proposed rate changes will prohibit the City from making
changes to the Energy Policy. Brian Janonis, Utilities Executive Director, stated staff has added a
fourth goal of cooperation with Platte River Power Authority to the draft Energy Policy after
receiving direction from Council and plans to present the Policy for Council consideration on
December 2. Plans to implement the Policy should be completed early in 2009 and staff will return
to Council with the rate impacts and Council will be able to modify rates in mid-2009.
Mayor Hutchinson noted Council can act at any time to modify the rates,but implementation plans
should be completed before any rate changes are contemplated.
Councilmember Roy made a motion,seconded by Councilmember Manvel,to adopt Ordinance No.
111, 2008, on Second Reading.
Mayor Hutchinson stated the proposed rate increases are a cost of business adjustment. The cost of
coal transportation and other expenses has forced Platte River to increase its prices. The City's
utility is required to be operated so that it neither makes a profit nor lose money. The wholesale cost
of electricity from Platte River has increased, so that cost must be passed on to the customers.
The vote on the motion was as follows: Yeas: Brown,Hutchinson,Manvel,Ohlson,Poppaw,Roy
and Troxell. Nays: none.
THE MOTION CARRIED.
Councilmember Roy made a motion,seconded by Councilmember Manvel,to adopt Ordinance No.
112, 2008, on Second Reading. Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy and
Troxell. Nays: none.
THE MOTION CARRIED.
Councilmember Roy made a motion,seconded by Councilmember Manvel,to adopt Ordinance No.
113, 2008, on Second Reading. Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy and
Troxell. Nays: none.
THE MOTION CARRIED.
Other Business
Councilmember Brown made a motion, seconded by Councilmember Troxell, to cancel the
November 4,2008 regular Council meeting. Yeas: Brown,Hutchinson,Manvel,Ohlson,Poppaw,
Roy and Troxell. Nays: none.
THE MOTION CARRIED.
Councilmember Ohlson made a motion, seconded by Councilmember Manvel, to adjourn the
meeting until the conclusion of the General Improvement District No. 1 meeting and the Water
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October 21, 2008
Utility Enterprise meeting and then reconvene to conduct any other business that may come before
the Council, including a possible executive session. Yeas: Brown, Hutchinson, Manvel, Ohlson,
Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
("Secretary's note: The Council adjourned at 9:05 p.m. and reconvened at 9:10 p.m.)
Executive Session Authorized
Councilmember Ohlson made a motion, seconded by Councilmember Roy, to go into executive
session to discuss potential litigation and confer with the City's attorneys regarding related legal
issues, as permitted under Section 3-31(a)(2) of the City Code and, if applicable, Section 24-6-
402(3)(a)(11) of the Colorado Revised Statutes. Yeas: Brown, Hutchinson, Manvel, Ohlson,
Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
("Secretary's note: The Council went into executive session at this point in the meeting.)
Adjournment
Councilmember Ohlson made a motion, seconded by Councilmember Manvel, to adjourn the
meeting to Tuesday, October 28, 2008 at 6:00 p.m. Yeas: Brown, Hutchinson, Manvel, Ohlson,
Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
The meeting adjourned at 10:15 p.m.
Mayor
ATTEST:
City Clerk
225
October 28 2008
COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
Council-Manager Form of Government
Adjourned Meeting-6:00 p.m.
An adjourned meeting of the Council of the City of Fort Collins was held on Tuesday, October 14,
2008, at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was
answered by the following Councilmembers: Hutchinson, Manvel Ohlson, Poppaw, Roy and
Troxell.
(Councilmember Brown has been excused from Council meetings from October 28, 2008 through
April 7, 2009, per Resolution 2008-104.)
Staff Members Present: Atteberry, Krajicek, Roy.
Ordinance No. 127,2008,
Being the Annual Appropriation Ordinance Relating to the Annual Appropriations
for the Fiscal Year 2009; Amending the Budget for the Fiscal Year
Beginning January 1,2009, and Ending December 31, 2009; and
Fixing the Mill Levy for Fiscal Year 2009,Adopted on Second Reading
The following is staff s memorandum on this item.
"EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading October 7, 2008, amends the adopted 2009
Budget and sets the amount of$548,437224 to be appropriated for fiscal year 2009. The Net City
Budget, which excludes internal transfers between City funds, is $440,379,274 for 2009. The Net
City Budget, as amended, is allocated to:
Adopted Amended
2009 2009
Operations $351,346,102 $356,110,925
Debt Service 26,232,854 26,235,588
Capital 58,776,761 58,032,761
This Ordinance also sets the 2009 City mill levy at 9.797 mills, unchanged since 1991. "
City Manager Atteber y stated amending the 2008-2009 budget is a responsible approach to 2009
and anticipates revenue issues for the 2010-2011 budget cycle. The requested amendments to the
general fund budget and utilities budget are in line with Council direction and input on various policy
matters. No property tax or sales tax increases are proposed. The 2009 budget does include rate
increases for wastewater and electric fees.
226
Councilmember Roy made a motion,seconded by Councilmember Manvel,to adopt Ordinance No.
127, 2008 on Second Reading. Yeas: Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell.
Nays: none.
THE MOTION CARRIED.
Resolution 2008-105
Making Board and Commission Liaison Assignments and Various
Committee,Board and Authority Appointments,Adopted
The following is staff s memorandum on this item.
"EXECUTIVE SUMMARY
Resolution 2008-105 reassigns liaison assignments and other appointments held by Councilmember
Brown to the remaining Councilmembers.
The absence of Councilmember Brown necessitates the reassignment of various board and
commission liaison assignments and committee appointments, which were made by the Council
following the Apri12007 election.
A Resolution has been prepared showing the responsibilities of current Councilmembers and
showing as "blank" those responsibilities previously held by Councilmember Brown.
Councilmember Brown's current assignments are highlighted in yellow on the attached grid which
is provided as a planning tool for Council's use in determining assignments to fill current
vacancies."
Councilmember Roy volunteered to serve as the liaison to the Citizen Review Board and the Golf
Board.
Councilmember Poppaw volunteered to serve as the liaison to the Planning and Zoning Board.
Councilmember Manvel offered to serve as the alternate to the Downtown Development Authority
Board of Directors and to serve on the North Front Range EIS Project Regional Coordination
Committee.
Councilmember Troxell volunteered to serve on the I-25 Corridor Policy Committee.
Mayor Hutchinson chose to serve on the Ethics Review Board.
Councilmember Roy made a motion, seconded by Councilmember Poppaw, to adopt Resolution
2008-105 with the Councilmember names added. Yeas: Hutchinson,Manvel,Ohlson,Poppaw,Roy
and Troxell. Nays: none.
THE MOTION CARRIED.
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Councilmember Ohlson made a motion, seconded by Councilmember Roy,to adjourn the meeting
until later in the evening after the Council has completed its work session,and to then be reconvened
for consideration of a possible executive session.Yeas: Hutchinson,Manvel,Ohlson,Poppaw,Roy
and Troxell. Nays: none.
THE MOTION CARRIED.
("Secretary's note: The Council adjourned at 6:10 p.m. and reconvened at 9:50 p.m.)
Executive Session Authorized
Councilmember Poppaw made a motion, seconded by Councilmember Roy, to go into executive
session, as permitted under Section 2-31(a)(2) of the City Code, for the purpose of meeting with
attorneys for the City to discuss potential litigation and related legal issues and to the extent that the
State open meetings laws may apply to the City, under Section 24-6-402(4)(B)M CRS, for the
purpose of receiving legal advice on specific legal questions. Yeas: Hutchinson, Manvel, Ohlson,
Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
("Secretary's note: The Council went into executive session at this point in the meeting.)
Adjournment
The meeting adjourned at 10:55 p.m.
Mayor
ATTEST:
City Clerk
228
November 12,2008
COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
Council-Manager Form of Government
Special Meeting- 6:00 p.m.
A special meeting of the Council of the City of Fort Collins was held on Wednesday,November 12,
2008, at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was
answered by the following Councilmembers: Hutchinson, Manvel, Ohlson, Poppaw, Roy, and
Troxell.
(Councilmember Brown was excused from Council meetings from October 28,2008 through April
7, 2009, per Resolution 2008-104.)
Staff Members Present: Atteber y, Krajicek, Roy.
Citizen Participation
Bruce Lockhart, 2500 East Harmony Road, stated the proposed Climate Plan has goals that
unrealistic and not achievable. He did not support adoption of the Plan.
Katy Friedenfall,Director of Community Affairs,ASCSU,stated Colorado State University students
would like to have the 3-unrelated ordinance reviewed before May,2009 and requested that Council
consider amending the ordinance so it is more friendly to students.
Citizen Participation Follow-up
Councilmember Manvel noted the review of the 3-unrelated ordinance is scheduled to include two
academic years, which would include data gathered through May 2009.
Councilmember Troxell stated the City is currently collecting data on the 3-unrelated ordinance and
he requested the review be done before May 2009.
City Manager Atteberry stated Neighborhood Services will create a work plan that will show what
the review of the 3-unrelated ordinance will entail. The input from students will be included in any
survey done as part of the review.
Resolution 2008-106
Authorizing a Grant Agreement with the U.S. Department of Energy
and Project Agreements with Colorado State University, Larimer County,
the Governor's Energy Office, and Other Entities, to Receive Grant Funds
for Development and Demonstration of a Coordinated and
Integrated System of Mixed Distributed Electric Resources, Adopted
The following is staff s memorandum on this item.
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November 12, 2008
"FINANCIAL IMPACT
The total budget for the project is $11.2 million. This Resolution authorizes the City Manager to
execute the agreement with the Department of Energy and enter into subcontract agreements with
the project partners that outline,per the grant submittal, how matching funds are contributed and
DOE funds are distributed among the partners (a more detailed summary of the matching funds is
included as Exhibit A to the Resolution).
Total project budget: $11,188,349
Totalmatchingfunds: $ 4,864,969
Funds requested from DOE: $ 6,323,380
EXECUTIVE SUMMARY
This project will modernize and transform a portion of the electrical distribution system in the City
by developing and demonstrating a coordinated and integrated system ofmixed distributed electric
resources, including renewable generation (solar), rotary- and inverter-based generation, and
demand response methods, that will reduce peak loads on multiple distribution feeders in the
downtown area by up to 30%and deliver improved efficiency and reliability.
BACKGROUND
The applicant for the overall project is the City of Fort Collins. The project will address the
research, development, and demonstration of a coordinated and integrated system of 3.5 MW of
mixed distributed resources in Fort Collins to achieve a 20-30%peak load reduction on multiple
distribution feeders. Fort Collins is well positioned to execute this contract due to the unique
combination of world-class research facilities at Colorado State University,participation ofglobal
industry leaders and local entrepreneurs able to commercialize the technology, the City of Fort
Collins focus on and investments in clean energy as a key pillar offuture growth, the presence of
a city-owned utility and extensive community support.
The methods used in this project involve the monitoring, aggregation, distribution system
integration, dispatch, and verification of distributed generation, renewable energy, and demand
response resources (Distributed Energy Resources or DER)for reducing peak loading from 20 to
30%on 2 feeders within Fort Collins Utilities'electric distribution network. Over 3.5 megawatts
(MW) of DER from approximately 5 participant locations will be aggregated with a mix of
distributed generation sources, including renewable generation, rotary- and inverter-based
generation. The demand response capabilities will be aggregated from a mix of heating, cooling,
and ventilation loads; process loads; and thermal storage. Intentional Islanding will be
demonstrated at one or more locations on one of the feeders.
The benefits of this smart-grid technology include enhancing the security and reliability of the
energy infrastructure,facilitating recoveryfrom disruptions;saving costs; new distribution system
configurations;management friendly operations;and environmental rewardsfrom using renewable
energy with demand response solutions. The Project will be used to develop and demonstrate key
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November 12, 2008
technologies expected to have strong commercial application, including three interacting technology
platforms to manage the DER mix and demonstrate peak load reduction, advanced mixed fuel
technology, low-cost grid parallel switchgear, and simulation and robust controller design ofDER
based solutions. The major impact ofthe project will be modernizing the local electric grid by using
the dynamic real-time state of the grid with the explicit benefit of providing a more efficient and
updated grid capable of incorporating more renewable sources.
The City of Fort Collins and the City-owned Fort Collins Utility will provide leadership for this
project, with a strong focus on growing and retaining clean energy companies, support for a wide
variety of clean energy initiatives, including the establishment of a Zero Energy District within the
city("FortZED'), and increasing the penetration of local renewable energy sources. Other project
participants include Lorimer County, CSU, InteGrid Lab, the Community Foundation of Northern
Colorado; and the Governor's Energy Office. Private sector participation spans local companies
and worldwide technology leaders. Manufacturers include; Advanced Energy (innovative power
and control technologies); Woodward (largest provider of energy control and optimization
solutions); Spirae, (renewable energy and distributed power controls and solutions); and Eaton,
(global leader in electrical systems and components). These companies are critical to
commercialize the technologies developed under this grant. Consultants and end users include The
Brendle Group (engineering consulting in energy efficiency) and New Belgium Brewing Company
(a leading craft brewery).
Mike Freeman, Fort Collins Chief Financial Officer, is project director andprincipal investigators
include Patty Bigner, Fort Collins Utilities; Dr. Peter Young, Colorado State Univ.; Dr. Sunil
Cherian, Spirae; GeoffHemsley, Woodward; Babette Cornell, Lorimer County; Robert Yanniello,
Eaton; Eric Seymour, Advanced Energy;Judy Dorsey, The Brendle Group; and Jim Spencer, New
Belgium.
Councilmember Troxell withdrew from discussion of this item due to a conflict of interest.
Mike Freeman,Chief Financial Officer,stated the resolution authorizes the City Manager to sign the
contract with the Department of Energy and allows negotiations with the partners in this Project.
Bruce Lockhart, 2500 East Harmony, asked what would be the cost-effectiveness of the Project
compared to the cost of$11 million.
Councilmember Roy asked how the Project will affect the Climate Action Plan and what are some
of the benefits of the Project. Freeman stated the Project must track carbon dioxide reduction,which
will affect the Climate Action Plan. Different technologies will be used for this Project to help
electric utilities determine how to reduce peak load. The goal is to reduce peak load in the summer
by 20-30%by using new technologies and energy efficiencies. At this time,this is the largest stated
zero-energy district in the world and the goal is to generate 45 MW of total power from alternative
sources. City Manager Atteberry stated this Project aligns with Council's priorities in sustainability,
economic development and seeking alternative funding sources.
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November 12, 2008
Councilmember Ohlson asked if this Project will create new jobs. Freeman stated the economic
impact of the Project has not been projected and was not a parameter requested in the grant from the
Department of Energy. New technologies will likely be patented as a result of this effort and that
will fuel growth within the participating companies which, in turn, will create more jobs.
Councilmember Roy made a motion, seconded by Councilmember Poppaw, to adopt Resolution
2008-106.
Councilmember Roy stated Fort Collins is a leader in developing new technologies for energy
production and this Project will move the City forward in the new energy economy.
Councilmember Ohlson stated this Project will benefit both the public and private sectors.
Mayor Hutchinson stated peak load reduction is an important goal and the economic benefit will be
substantial.
The vote on the motion was as follows: Yeas: Hutchinson, Manvel, Ohlson, Poppaw, and Roy.
Nays: none.
THE MOTION CARRIED.
Resolution 2008-107
Declaring the Intent of the City of Fort Collins, Colorado to Issue
Economic Development Revenue Bonds to Provide Financing for a
Manufacturing Facility for Ambiance Incorporated, DB/A Fort Collins
Brewery; Prescribing Certain Terms and Conditions of Such Bonds; and Containing
Other Provisions Relating to the Proposed Issuance of Such Bonds, Adopted
The following is staffs memorandum on this item.
"EXECUTIVE SUMMARY
This Resolution declares the City's intent to authorize the issuance of an amount not to exceed
$5,000,000 of economic development revenue bonds for the Fort Collins Brewery project(a small
manufacturing company)from the annual statewide allocation the City receives. This is not the
receipt of dollars, but the intent to exercise the right to issue tax exempt bonds for purposes
prescribed in the Internal Revenue Code by the federal government. Economic development
revenue bonds are one type of bond that can be issued for private activity purposes. This action
does not authorize a bond issue.
The urgency of this inducement resolution relates to expenses related to a land purchase on
September 29, 2008. Fort Collins Brewery desires the ability to reimburse itself out of the tax
exempt bond proceeds for expenditures that accrue before the issuance of the bonds. The Internal
Revenue Code will permit such reimbursementprovided that the public issuer(City of Fort Collins)
adopts an inducement resolution and the expenditure accrued no earlier than 60 days prior to the
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November 12, 2008
date such resolution was adopted. In order to meet this requirement, the resolution needs approval
prior to November 28, 2008.
The request for Council to authorize the actual bond issue will occur later this year. If the actual
bond issue does move forward, it will not occur until 2009, with the source of the funds being the
City's allocation for 2009. In fiscal year 2009, the City of Fort Collins is estimated to receive a
private activity bond allocation of$5,600,000. If these bonds are authorized, they will not be an
obligation of the C&&of Fort Collins.
Fort Collins Brewery relocation and expansion on a site within the city limits will result in
additional property taxes for the City as well as use tax on construction materials and equipment
purchases.
BACKGROUND
The Project
Under the federal and state laws governing the use of tax-exempt private activity bonds, the City
may issue the bonds, but may not use its own revenues to support the project. The project will
generate the revenue required to repay the bonds. In the event the project does not generate
sufficient revenue, the bondholders may request payment from the letter of credit provider or the
insurer of the transaction. The total amount of private activity bonds to be issued will not exceed
$5,000,000. The project proponent, Fort Collins Brewery, may use its resources to pay for the
bonds or issue additional taxable bonds to finance the project. Out West Properties, LLC, a
Colorado Limited Liability Corporation, is an affiliated holding company that purchased the
property and will construct the new facility
The proceeds of the bonds, together with the proceeds of certain taxable bonds to be issued by the
City concurrently with the Bonds, will be loaned to Out West Properties, LLC(the "Borrower') to
finance the acquisition of a manufacturing facility for the production of beer (the "Project'). The
Project consists of a purchase of a parcel of land located in the northwest corner of Lincoln Street
and Lemay Avenue. Construction of an approximately 30,000 square foot building is to be located
there, as well as the purchase ofcertain equipment. The project will be owned by the Borrower and
operated and managed by Fort Collins Brewery, an entity under common ownership with the
Borrower.
In Fall 2008,Fort Collins Brewery approached the City with the concept for this project. An inquiry
was made by Fort Collins Brewery as to the availability of private activity bonds for small
manufacturing. Fort Collins Brewery has been operated by the current ownership group since2003.
Today, it distributes its product along the Front Range and in various states in the Midwest and as
far east as Pennsylvania. The facility that Out West Properties, LLC will be constructing with the
bond proceeds is being designed to achieve minimal impact on the environment.
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The City's Prior Usage of Private Activity Bonds
The most recent direct usage of the City's annual allocation of private activity bonds occurred
earlier this year for Custom Blending, Inc., a multi functional manufacturer ofspices, spice blends
and liquid flavorings for wholesale operations and retail grocery stores. Their project was for a
new facility in the City's Harmony Technology Park.
City staff is consulting Fort Collins Housing Authority and other advocates for affordable housing
to determine whether they can utilize the private activity bonds. Staff will update Council later this
month or when the request for authorization ofthe bonds comes before the Council later in the year.
In the event an affordable housing project does come forward even after the bonds for Fort Collins
Brewery have been authorized, the City will recommend a project to the Colorado Housing and
Financing Authority (CHFA). CHFA has sent notices out this fall that funds are available at the
statewide level for housing projects.
The City's Role in Issuance of Private Activity Bonds
Under the federal tax laws and the Colorado Revised Statutes, the City's role in this transaction,
should it move forward, is to be the Issuer of the Bonds.
THE BONDS SHALL BE SPECIAL, LIMITED OBLIGATIONS OF THE CITY. THE CITY WILL
NOT BE OBLIGATED TO PAY THE BONDS OR THE INTEREST THEREON, EXCEPT FROM
THEASSETS OR REVENUES PLEDGED THEREFOR. INNO EVENT SHALL THE STATE, THE
CITY(OTHER THAN THE FROM THE BORROWER'S ASSETS PLEDGED THEREFORE) OR
ANY POLITICAL SUBDIVISION THEREOF BE LIABLE FOR THE BONDS, AND THE BONDS
SHALL NOT CONSTITUTE A DEBT OF THE STATE, THE CITY OR ANY SUCH POLITICAL
SUBDIVISION THEREOF.
In the event a bond is authorized, the proceeds of the Bonds will be loaned to Out West Properties,
LLC. according to the terms of a future loan agreement to provide the financing of the project.
SUMMARY OFACTION: Inducement Resolution
The primary reason for adopting an inducement resolution is also found in federal tax law. fa
municipal borrower or private activity bond beneficiary (e.g., Out West Properties, LLC) desires
the ability to reimburse itself out of the tax exempt bond proceeds for expenditures that accrue
before the issuance of the bonds, the Internal Revenue Code will permit such reimbursement
provided that the public issuer adopts an inducement resolution and the expenditure accrued no
earlier than 60 days prior to the date such resolution was adopted. Accordingly, inducement
resolutions are often adopted very early in the bond process to maximize the project costs to which
the tax exempt proceeds can be applied However, as is made clear in the resolution, adoption does
not create an obligation on the part of the City to authorize the bonds. "
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November 12, 2008
Chuck Seest, Finance Director, stated Fort Collins Brewery has expansion plans and has already
purchased land for the expansion The Brewery has asked the City to consider issuing private activity
bonds for small manufacturing. Staff has determined the company is a credit-worthy applicant. This
inducement resolution is needed to allow the Brewery to capture the real estate expense as part of
the bond proceeds and meet IRS requirements. The issuance of bonds will come before Council in
December.
Mayor Hutchinson stated the City can facilitate economic development by issuing private activity
bonds and asked if there was a maximum amount of this type of bonds that can be issued in one year.
Seest stated the State receives a certain amount of funding for private activity bonds from a federal
allocation. The State allots a certain amount of those funds to municipalities,based on population.
The City received$5.6 million last year and used most of those funds for the Custom Blending bond
issue. If another project is not identified to use the funds,the funding is relinquished to the State and
returns to the statewide pool.
Councilmember Troxell asked about the selection process for businesses that qualify for private
activity bonds. Freeman stated the City has typically used its allocation of private activity bonds for
affordable housing projects and the Housing Authority has stated it does not need the City's
allocation of funds in 2009. The projects emerge at different times of the year and, once it is
determined they meet the criteria and qualify as manufacturing and fit within the targeted industry
groups and need help financially to enable the project to move forward. No prioritization scheme
is used at this time.
Councilmember Roy made a motion, seconded by Councilmember Troxell, to adopt Resolution
2008-107. Yeas: Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
Items Pertaining to the Annexation and Zoning of the Eagle View
Natural Area,Adopted on First Reading
The following is staff s memorandum on this item.
"EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 138, 2008, Annexing Property Known as the Eagle View
Natural Area First Annexation to the City of Fort Collins, Colorado.
B. First Reading of Ordinance No. 139, 2008 Amending the Zoning Map of the City of Fort
Collins and Classifying for Zoning Purposes the Property Included in the Eagle View
Natural Area First Annexation to the City of Fort Collins, Colorado.
C. First Reading of Ordinance No. 140, 2008, Annexing Property Known as the Eagle View
Natural Area Second Annexation to the City of Fort Collins, Colorado.
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November l Z 2008
D. First Reading of Ordinance No. 141, 2008, Amending the Zoning Map of the City of Fort
Collins and Classifying for Zoning Purposes the Property Included in the Eagle View
Natural Area Second Annexation to the City of Fort Collins, Colorado.
The above items will accomplish the annexation and zoning ofapproximately 86 acres ofland solely
owned by the City known as the Eagle View Natural Area and place the area into the POL—Public
Open Lands Zone District. The annexations are in conformance with the State of Colorado Revised
Statutes as they relate to annexations, the City of Fort Collins Comprehensive Plan, the Lorimer
County and City of Fort Collins Intergovernmental Agreement, the City of Fort Collins Land Use
Code, and the Fossil Creek Reservoir Area Plan.
BACKGROUND
Applicant and Property Owner: City of Fort Collins
The City of Fort Collins acquired the property known as the Eagle View Natural Area, containing
a total ofapproximately 86 acres, in October 2002. City staffis recommending that the City Council
annex the property into the City limits. Due to the size of the property and the limited amount of
contiguity to the existing City limits, the property is being annexed via two annexations, the Eagle
View Natural Area First Annexation (containing 66.9 acres) and the Eagle View Natural Area
Second Annexation (containing 19.1 acres). The first phase consists of 66.9 acres and the second
consists of 19.1 acres. The Eagle View Natural Area is located south ofKechter Road, one-quarter
mile west ofl-25, and north of the Fossil Creek Reservoir. As indicated, the property is preserved
as a City-owned natural area and, thus, the proposed zoningfor the annexations is the POL—Public
Open Lands District, consistent with the property's designation on the City Structure Plan.. The
existing land uses and zoning of surrounding properties are as follows:
N.• County-FA-I Farming, undeveloped
E: County- C, Commercial, boat sales; and FA-I Farming, undeveloped
S: Fossil Creek Reservoir
W.• City-LMN, Low Density Mixed Use Neighborhood, residential development; and County
-FA-1 Farming, undeveloped
Compliance with Existing Policies and State Law
The natural area property is located totally within the Fort Collins Growth Management Area
(GMA). According to policies and agreements between the City and Larimer County contained in
the Intergovernmental Agreementfor the Fort Collins Growth ManagementArea, the City will agree
to consider annexation of property in the GMA when the property is eligible for annexation
according to State law. The Eagle View Natural Area First Annexation parcel gains its required
116 contiguity to existing City limits from a common boundary with the McClelland's Creek PD&
PLD Second Filing Annexation(September 2007)to the west ofthe parcel. The Eagle View Natural
Area Second Annexation parcel gains its required 116 contiguity to existing City limits from a
common boundary with the Eagle View Natural Area First Annexation to the north of the parcel.
The two parcels are being annexed concurrently which is permitted by the State of Colorado Revised
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Statutes as they relate to annexations. Because the parcels are solely owned by the City, they may
be annexed without notice and hearing.
Proposed Zoning
The proposed zoning for the Eagle View Natural Area is the POL —Public Open Lands, which is
consistent with the City Structure Plan and with recommendations from the adopted Fossil Creek
Reservoir Area Plan, an element of the City's Comprehensive Plan. The POL District is for large
publicly ownedparks and open lands which have community-wide emphasis or other characteristics
which warrant inclusion under this separate designation rather than inclusion in an adjoining
neighborhood or other zoning district designations.
Findings
In evaluating the proposal for the annexation and zoning of the Eagle View Natural Area, staff
makes the followingfindings offact:
1. The annexation of the natural area is consistent with the policies and agreements between
Larimer County and the City of Fort Collins contained in the Intergovernmental Agreement.
2. The natural area meets the eligibility requirements included in State law to qualify for a
voluntary annexation to the City of Fort Collins of land solely owned by the City.
3. The requested Zone District, POL—Public Open Lands, is in conformance with the City's
Comprehensive Plan and City Structure Plan.
Planning and Zoning Board Recommendation
The Planning and Zoning Board reviewed the requested annexation and zoning of the Eagle View
Natural Area at its regular monthly meeting of October 16, 2008. Staff informed the Board that
three adjacent property owners had called to express opposition to the annexation, but that none of
the owners indicated they were going to attend the meeting. The property owners indicated to staff
they would like the City's open space area to remain in the County. The Board then voted 6-0 (1
member absent) to recommend to the City Council approval of the Eagle View Natural Area
annexations and requested POL, Public Open Lands, zoning. "
Ken Waido, Chief Planner, stated the annexation is 86 acres in size and entirely owned by the City
as a natural area. The annexation is proposed in two parts to meet contiguity requirements in State
law. County road rights-of-way have not been included in this annexation,so Kechter Road,Strauss
Cabin Road and the county road between the two parcels are not part of the annexation.
Shawna Swig-Ferrara,owner of property next to Eagle View,stated she represented other property
owners around Eagle View. The property owners did not receive a notice of the annexation and did
not support the annexation of the property into the City. She expressed concerns that the annexation
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will create an"island"of City property surrounded by property located in the County and asked how
the annexation will affect nearby homes, located in the County.
Councilmember Manvel asked what affect the annexation will have on neighboring homes. Waido
stated the annexation should not affect neighboring properties. A letter was sent to neighboring
property owners notifying them of the annexation. Under an intergovernmental agreement with
Latimer County, when any contiguous property to the City begins development, the County will
require that property to annex into the City prior to development so it can be processed according
to the City's zoning and development regulations. Existing property owners, not developing their
property, should not be affected by the annexation and will remain in the county.
City Manager Atteberry noted the City owns several natural areas that should have been annexed into
the City some time ago and the intent is to annex those properties into the City as soon as possible.
Councilmember Roy made a motion,seconded by Councilmember Poppaw,to adopt Ordinance No.
138, 2008 on First Reading. The vote on the motion was as follows: Yeas: Hutchinson, Manvel,
Ohlson, Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
Councilmember Manvel made a motion,seconded by Councilmember Roy,to adopt Ordinance No.
139, 2008 on First Reading. The vote on the motion was as follows: Yeas: Hutchinson, Manvel,
Ohlson, Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
Councilmember Roy made a motion,seconded by Councilmember Manvel,to adopt Ordinance No.
140, 2008 on First Reading. The vote on the motion was as follows: Yeas: Hutchinson, Manvel,
Ohlson, Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
Councilmember Manvel made a motion,seconded by Councilmember Poppaw,to adopt Ordinance
No. 141, 2008 on First Reading. The vote on the motion was as follows: Yeas: Hutchinson,
Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
Items Relating to the City's Ownership, Administrative Control, and
Maintenance of Certain Portions of Harmony Road. Adopted on First Reading
The following is staff s memorandum on this item.
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November 12, 2008
"FINANCL4L IMPACT
Any additional costs ofoperating andmaintaining Harmony Road will be covered in existing Streets
and Traffic Operations budgets.
EXECUTIVE SUMMARY
A. Resolution 2008-108 Authorizing the Mayor to Enter into a Modification and Ratification
Intergovernmental Agreement with the Colorado Department of Transportation.
B. First Reading of Ordinance No. 142, 2008, Amending Ordinance No. 067, 2005, to Clarify
the Portion of Harmony Road that is Owned, Controlled and Maintained by the City.
In 2005, the City and the Colorado Department of Transportation (CDOT) executed a series of
documents, including an intergovernmental agreement (the "IGA'), that transferred ownership,
administrative control, and maintenance of Harmony Road to Fort Collins. The City and CDOT
staff are recommending an amendment to the IGA to clarify the jurisdictional limits of the two
entities. In addition, the City has agreed with CDOT to assume operation and maintenance
responsibility for the traffic signal at the intersection of Harmony Road and the Harmony Transit
Center. This is easier and more efficient for Fort Collins than for CDOT, and can be assumed under
existing budgets.
BACKGROUND
The City and CDOT entered into an intergovernmental agreement on July 15, 2005, regarding the
transfer ofownership, administrative control,and maintenance of State Highway 68/Harmony Road
from CDOT to the City. Fort Collins agreed to assume ownership, control, and maintenance of East
Harmony Road and in return, CDOT agreed to pay Fort Collins the sum of$13,700,000 in
accordance with the 2005 Agreement. This amount represented the estimated O&M costs for 20
years (2005 dollars). The text of the agreement, as well as an earlier resolution of the State
Transportation Commission, made reference to mile marker 4.468 as the point at which the City's
ownership responsibilities of Harmony Road would end and CDOT's would begin. The original
intent of the agreement was for Fort Collins'jurisdiction to extend to a point east of the Harmony
Transit Center. However, mile marker 4.468 actually extends to the eastern edge ofthe Harmony/I-
25 interchange.
The City and CDOT have worked together to develop a mutually agreed-upon terminus near the
west access ramp ofI-25. In addition, CDOT has requested that the City assume responsibility for
the operation and maintenance of the traffic signal at the intersection of Harmony Road and the
Harmony Transit Center. This poses no problem for the City's Traffic Operations group; it is
actually easier and more efficient to incorporate the signal into the Fort Collins system. Costs
associated with operation and maintenance ofHarmony Road and the traffic signal will be absorbed
into existing Streets and Traffic Operations budgets.
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The proposed Resolution would authorize the execution of a new agreement with CDOT to reflect
the change in maintenance responsibilities and clarify the point at which the City's jurisdiction ends
and CDOT's begins. The Ordinance would amend Ordinance No. 067, 2005, to reflect these same
changes."
Mark Jackson, Transportation Group Director, stated the City and the Colorado Department of
Transportation entered into an intergovernmental agreement in 2005 to transfer ownership of
Harmony Road, west of US 287 to I-25. This fall, CDOT notified the City that an error in the
agreement incorrectly identified the mile marker for the eastern boundary of the agreement. The
proposed modification to the IGA identifies a point on the west I-25 interchange ramps as the eastern
boundary. The City will also assume ownership, operation and maintenance of the traffic signal
located at the Transit Center on Harmony Road, which provides greater efficiency for signal use.
Councilmember Roy made a motion, seconded by Councilmember Manvel, to adopt Resolution
2008-108. The vote on the motion was as follows: Yeas: Hutchinson, Manvel, Ohlson, Poppaw,
Roy and Troxell. Nays: none.
THE MOTION CARRIED.
Councilmember Manvel made a motion, seconded by Councilmember Ohlson,to adopt Ordinance
No. 142, 2008 on First Reading. The vote on the motion was as follows: Yeas: Hutchinson,
Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
Resolution 2008-100
Adopting the 2008 Update to the Three Mile Plan for the City of Fort Collins, Adopted
The following is staff's memorandum on this item.
"EXECUTIVE SUMMARY
The Three-Mile Plan is apolicy document that is required to ensure that the City complies with the
regulations of the Colorado Revised Statutes. This is the 2008 update to the Three-Mile Plan for
the City.
BACKGROUND
The current Three-Mile Plan has been in use since it was last amended by Council on November 21,
2007. According to law, the plan should be updated and revised annually. This update is presented
for Council review.
The Three-Mile Plan describes each ofthe items listed in Section 31-12-105 ofthe Colorado Revised
Statutes, dealing with annexation. The four categories specified in the statute are as follows:
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November 12, 2008
Transportation-related items:
• Streets
• Subways
• Bridges
• Parkways
• Aviation Fields
• Other Public Ways
• Terminals for Transportation
Parks,Natural Areas and Open Lands-related items:
• Waterways
• Waterf•onts
• Playgrounds
• Squares
• Parks
• Grounds
• Open Spaces
Utilities and related items:
• Public Utilities
• Terminals for Water, Light, Sanitation, and Power Provided by the Municipality
Proposed Land Uses:
• Inside Growth Management Area (GMA)
• Outside Growth Management Area (GMA)
The Three-Mile Plan lists the plans, policies, maps, and other documents adopted by the City
Council that generally describe the proposed location, character and extent of the specific
topographic features, infrastructure, and facilities listed above. In addition, there are some plans
and policies that have been adopted not by the City, but by Larimer County, CSU or adjoining
municipalities, as these are also located within the boundaries of the Three-Mile Plan for the City
of Fort Collins, Colorado."
Steve Olt, Interim Current Planning Director, stated in order to annex property, Colorado law
requires any municipality to have a plan in place for the area within three miles in any direction from
any point of its municipal boundary. The plan should be updated and revised annually by a
municipality. The purpose of the plan, prior to the completion of any annexation within the three
mile area, is to describe the proposed location character and extent of transportation network,
waterways,parks and open space, aviation fields,public utilities to be provided and proposed land
uses for the area.
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November 12, 2008
City Attorney Roy noted a letter had been received from the Mayor of the Town of Timnath that
expressed Timnath's objection to the adoption of the Three-Mile Plan. The letter stated Timnath's
concerns that the Plan could set the stage for the City of Fort Collins to attempt to annex east of I-25,
within the Town of Timnath's growth management area.
City Attorney Roy stated the City would be remiss if it failed to update its Plan, as required by the
State's annexation law. This is routinely done each year because the annexation law prohibits the
City from annexing anywhere outside of its limits unless it has in place an annually updated Plan,
showing,within a 3-mile radius,the character,location and extent of certain kinds of facilities. The
intent of adopting this Plan is not to set the stage for any particular annexation anywhere, but it is
a statutory requirement that the City must comply with in order to do any annexations at all.
Mayor Hutchinson asked if the Council was required to update the Plan before November 21,2008
as that is one year from the previous update. City Attorney Roy answered in the affirmative, if the
City wishes to pursue any annexations within the three-mile area.
Councilmember Ohlson asked what was changed in the Plan from last year. City Attorney Roy
stated the only change to the text was a paragraph added to the introduction to clarify that the City
will not annex all land within three miles outside of its limits because some of those areas are in
other municipalities and to clarify that not all the plans referenced in the Three-Mile Plan apply to
all areas within the three-mile limit.
Councilmember Troxell asked for an explanation of the waterways map included in the Plan. Olt
explained the southwest corner has City limits outside the growth management area because those
areas are City-owned natural areas that have been annexed outside the growth management area.
Councilmember Troxell asked if Christman Field was still an operational airport, as listed on the
Airport Map. City Manager Atteberry stated Colorado State University owns the airfield but it is not
currently in use.
Councilmember Poppaw made a motion, seconded by Councilmember Roy, to adopt Resolution
2008-100. The vote on the motion was as follows: Yeas: Hutchinson, Manvel, Ohlson, Poppaw,
Roy and Troxell. Nays: none.
THE MOTION CARRIED.
Resolution 2008-109
Accepting an Amended Petition, Finding Substantial Compliance, and
Initiating Annexation Proceedings for the Portions of the Gateway Annexation
Not Claimed by the Town of Timnath. Adopted
The following is staffs memorandum on this item.
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November 12, 2008
"EXECUTIVE SUMMARY
The proposed Resolution makes findings that the voluntary petition for annexation for the Gateway
Annexation, containing a total of approximately 256.3 acres, substantially complies with the
Municipal Annexation Act, accepts the petition, and determines that a hearing should be established
regarding the annexation of the portions of the Gateway Annexation not claimed by the Town of
Timnath, and directs that notices be given of the hearing. The hearing will be held at the time of
second reading ofthe annexation and zoning ordinances scheduled for December 16, 2008.Not less
than thirty days prior notice is required by State law. The annexation request is in conformance
with the State of Colorado Revised Statutes as they relate to annexations, the City of Fort Collins
Comprehensive Plan (City Plan), the Larimer County and City of Fort Collins Intergovernmental
Agreements, the City of Fort Collins Land Use Code, and the Harmony Corridor Plan.
BACKGROUND
Applicant and Property Owner: Fort Collins Capital Leasing Corporation
In 1995, the City acquired the property known as the Arapaho Bend Natural Area (the "Natural
Area') containing a total of approximately 277.5 acres, and annexed the property into the City
limits as part of the Arapaho Bend First and Second Annexations in 1999. On October 14, 2008,
the City transferred ownership ofapproximately 195.3 acres ofthe Natural Area to the Fort Collins
Capital Leasing Corporation("FCCLC'), aspermitted under Section 23-111 ofthe City Code. The
Council then received from FCCLC an application to disconnect from the City the portions of the
Natural Area owned by the FCCLC, as permitted under a newly established section of the City's
Land Use Code(Section 2.12.6). Council then adopted Emergency Ordinance No. 130, 2008, which
authorized the disconnection of those portions ofthe Natural Area, as well as portions of Harmony
Road, Strauss Cabin Road, and Kechter Road.
Later that same day, a petition was filed by FCCLC to re-annex the Natural Area, together with
Harmony Road;Strauss Cabin Road between Harmony and Kechter Roads;Kechter Road between
Strauss Cabin Road and Interstate-25;and Interstate-25 from Kechter Road to Harmony Road. On
October 29, 2008, FCCLC filed an Amended Petition with the City Clerk making certain changes
to the property to be annexed. The total size ofthe annexation, as now proposed, is approximately
256.3 acres. Portions of I-25 are still contained in the area, including the highway right-of way
from about three-quarters (314) of a mile north of Harmony Road to about one (1) mile south of
Harmony Road. However, Kechter and Strauss Cabin Roads are no longer included in the
annexation.
There is a portion ofthe Gateway Annexation(Harmony Road from Strauss Cabin Road to the east
side ofl-25)which overlaps aproposed annexation to the Town of Timnath known as the Riverwalk
Annexation Number 1. The Colorado Annexation Act requires that, upon application of the City,
the District Court must hold an election ofthe landowners in the area claimed by both the City and
Timnath in order to determine which municipality can annex that area. The Act also authorizes the
City to proceed, by the adoption of this resolution, with the annexation of that portion of its
annexation that is not also claimed by Timnath. The resolution must contain the legal description
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November 12, 2008
of that portion of the annexation, which areas are shown on Exhibit "B"attached to the resolution.
Due to the size of the property and the limited amount of contiguity to the existing city limits, the
property is being annexed via three annexations.
The existing land uses and zoning of surrounding properties are as follows:
N. County-FA-1 Farming, undeveloped; and Strauss Cabin Park
E: Town of Timnath RC, Regional Commercial, Zoning, Wal Mart Supercenter (under
construction); and City-owned open space east of I-25
S: County - FA-1 Farming, undeveloped; and County C Commercial for small parcels both
north (owned by the State of Colorado)and south of Harmony Road(convenience store/gas
station and a landscaping business)
W.• County-FA-1 Farming, including about 160 acres of land owned by Larimer County; the
Meadow Heights Subdivision(23lots);and CityPOL,Public Open Lands, District(Arapaho
Bend Natural Area)
The Gateway First Annexation parcel gains its required 116 contiguity to existing City limits from
common boundaries with the Arapaho Bend First and Second Annexations (January 1999). The
Gateway Second Annexation parcel gains its required 116 contiguity to existing City limits from a
common boundary with the Arapaho Bend Second Annexation to the west of the parcel. The
Gateway Third Annexation parcel gains its required 116 contiguity to existing City limits from a
common boundary with the Gateway Second Annexation to the north of the parcel. The last two
parcels are being annexed in a series which is permitted by the Colorado Annexation Act.
Planning and Zoning Board Recommendation:
The Planning and Zoning Board will conduct a public hearing on the annexation and zoning
requests at their regular monthly meeting on November 20, 2008, and will make its
recommendations at that time. The Board's recommendations will be forwarded to the City Council
in time for public hearing and second readings of the annexation and zoning ordinances which are
scheduled for December 16, 2008. "
Ken Waido, Chief Planner, stated this annexation brings in property that is not currently being
considered for annexation by the Town of Timnath. The Gateway annexation is 256 acres and
includes portions of the Arapaho Bend Natural Area and portions of I-25. The annexation is divided
into three separate annexations to provide contiguity.
City Attorney Roy stated the resolution has three exhibits attached, containing legal descriptions.
Exhibits A and B have legal descriptions that essentially describe the same property. Exhibit A was
attached to the petition filed by the Fort Collins Capital Leasing Corporation and describes a certain
part of the property on the Interstate as going to the east right-of-way line, then in a southerly
direction. Exhibit B is a revised description that describes the metes and bounds of the east right-of-
way line. He gave the City Clerk an affidavit from the City Surveyor that described the differences
between Exhibits A and B.
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Mayor Hutchinson asked if the difference between the Exhibits was that one gave a more accurate
description of the area. City Attorney Roy stated the Exhibits describe the total area that the City
is seeking to annex through the Gateway annexation. By law, since a portion overlaps Timnath's
Riverwalk annexation,the City cannot proceed with the annexation of the overlap portion,the area
claimed by both. Exhibit C of the Gateway annexation describes everything but the overlap portion
and is the area that is the subject of the annexation. The annexation of the disputed portion will not
be resolved until after an annexation election has been held by the court. The City has applied to the
court for the holding of that election within the time period required by annexation law.
Councilmember Roy made a motion, seconded by Councilmember Poppaw, to adopt Resolution
2008-109. The vote on the motion was as follows: Yeas: Hutchinson, Manvel, Ohlson, Poppaw,
Roy and Troxell. Nays: none.
THE MOTION CARRIED.
Adjournment
The meeting adjourned at 7:15 p.m.
Mayor
ATTEST:
City Clerk
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November 18, 2008
COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
Council-Manager Form of Government
Regular Meeting- 6:00 p.m.
A regular meeting of the Council of the City of Fort Collins was held on Tuesday,November 18,
2008, at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was
answered by the following Councilmembers: Hutchinson, Manvel, Ohlson, Poppaw, Roy, and
Troxell.
(Councilmember Brown excused from Council meetings from October 28, 2008 through April 7,
2009, per Resolution 2008-104.)
Staff Members Present: Atteberry, Krajicek, Roy.
Citizen Participation
City Manager Atteberry stated Floyd and Ruth Barber are the property owners of rental property on
Grape Street, which is included in the area of the Market Place Project, College and Willox. Joe
Frank, Advance Planning Director, stated a financial agreement has been approved by the Urban
Renewal Authority to assist in improving the infrastructure for the Market Place Project. The
property on the northeast corner of College and Willox will be redeveloped as a shopping center.
A part of the property to be purchased by the developer contains nine rental units on the south side
of Grape Street and College Avenue,with seven of the units owned by the Barbers. The developer
anticipates the land purchase will be completed in mid-January and one condition of the sale is that
the rental units are to be removed from the site. The residents of the rental units received notification
around October 23 to vacate the premises. Staff did not learn of the eviction notices until the end
of October. At that time, staff began to develop a relocation plan to assist the renters. The financial
agreement included a provision that a relocation plan for the tenants would be developed and staff
began immediately to create a plan. As part of the agreement, the developer had committed$10,000
and the Urban Renewal Authority committed$10,000 to assist in relocation. Neighbor to Neighbor
Services (N2N) was enlisted to help with the relocation. $2000 per dwelling unit is being offered
to aid in relocation. Two households have utilized the funds for relocation expenses. Staff from the
City and N2N have met with the residents on Grape Street to answer questions about the relocation
program.
The following citizens expressed their anger and frustration with the handling of eviction notices and
the relocation process:
Cheryl Distaso, 135 South Sunset
Meghan Kelly, on behalf of Colletta Kim, resident of a Grape Street unit
Betty Aragon Mitotes, 140 2nd Street
Tanya Carlson, 1910 North College, #4
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Avery Spencer, 1912 North College
Avery Spencer, Sr., 1912 North College
David Bartecci, 206 Remington
Daven Sprague, 1910 North College
Kandi Sprague, 1910 North College
Laura McColley, process server
Ruth Barber, owner of property on Grape Street, stated three of the families in the rental units have
known about the sale of the property since April. The notice to vacate was distributed on October
23 and tenants were given one month to relocate and the Barbers offered to help tenants move.
Floyd Barber, owner of property on Grape Street, stated the tenants were aware they had month-to-
month contracts and that the land was being sold.
Bill Remin, 418 Wood Street, stated Police Services is not enforcing the restraining orders he has
had issued by the courts.
Citizen Participation Follow-up
Council stated the intent of the financial agreement was to provide assistance to make the tenants'
relocation as easy as possible and asked staff to help resolve the issues raised by the tenants. The
relocation funds should be provided to the tenants in a manner that makes the process as easy as
possible.
City Manager Atteberry stated the program is intended to provide assistance with relocation through
reimbursing costs that the tenants incur as a result of moving. It is staff s responsibility to help with
the plan to disburse the relocation funds,but many ofthe complaints are tenant-landlord disputes and
are outside of the City's control. Mediation between the tenants and the property owner has been
offered. A full accounting of the relocation funds will be provided to Council.
City Manager Atteberry stated he would meet with Police Chief Harrison and City Attorney Roy to
review Mr.Remin's claim of non-enforcement of restraining orders. Council will receive a follow-
up report.
("Secretary's note: The Council took a brief recess at this point in the meeting.)
Resolution 2008-110
Repealing Resolution 2007-53 and Disbanding the Foothills Mall
Urban Renewal Plan Area, Adopted
The following is staffs memorandum on this item.
"EXECUTIVE SUMMARY
Pursuant to Section 31-25-107, C.R.S., this Resolution repeals Resolution 2007-053 which approved
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the Urban Renewal Plan for the Foothills Mall and renders the same null and void and of no further
force and effect, thereby disbanding the Foothills Mall Urban Renewal Plan Area (the "Plan
Area').
BACKGROUND
On May 15, 2007, Council adopted Resolution 2007-053, approving an Urban Renewal Plan for the
Foothills Mall Area. The Plan was developed at the request of General Growth Partners (GGP),
the owners ofthe Mall, and was preparedfor the Fort Collins Urban Renewal Authority and the City
of Fort Collins pursuant to the provisions of the Urban Renewal Law, CRS 31-25-101 et seq.
The Foothills Mall Urban Renewal Plan described the framework for certain public undertakings
constituting urban renewal projects and other authorized activities under the Urban Renewal Law
in the Foothills Mall Area. The Plan was intended to stimulate private sector development in and
around the Foothills Mall Area and to take advantage ofthe use of Tax Increment Financing(TIF)
for public improvements and redevelopment activities. Unfortunately, the property owner has not
initiated any redevelopment activities since the adoption ofthe Plan and is not likely to do so in the
near future as a result of the current economic climate. Meanwhile, the twenty-five year clock on
the Plan Area continues to run making the use of TIF less viable. Staff believes that the Plan Area
should be dissolved at this time. When the economic climate and market conditions improve so that
either the current or future property owner of the Mall is interested in pursuing redevelopment of
the Mall, the Council can reconsider designating the Mall as an Urban Renewal Plan Area and
initiating a new twenty-five year clock. "
City Manager Atteberry stated redevelopment of the Foothills Mall has been a top priority for staff
and Council, but the property owner, General Growth Partners, is unable to proceed with the
redevelopment at this time. Staff believes repealing the current Urban Renewal Area Plan and
pursuing another Plan at a later time is a wise strategy to allow the redevelopment to use the entire
twenty-five year time span of the Plan whenever the property owner is able to proceed.
Trevor Simonton, Fort Collins resident, asked for an explanation of an urban renewal area.
City Manager Atteberry explained the creation of an urban renewal area is intended to remove blight
from communities and provide economic incentives to help property owners remove the blight.
Councilmember Manvel asked if forming a new urban renewal area for the Mall would start a new
25 year clock and if the Blight Study done for the current URA could be used again. Ken Waido,
Chief Planner, stated the ability to use the current Study will depend on when a new URA is
proposed. The Study will need to be modified if a considerable amount of time has passed before
the request is made. Formation of a new URA will start a new 25 year clock for the Plan.
Councilmember Roy asked how many tax dollars the urban renewal area has generated and for the
amount of sales tax revenues generated by the Mall. Mike Freeman, Chief Financial Officer,stated
the URA has collected no increment to this point. He will provide Council with a report of the sales
tax revenues generated by the Mall.
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Mayor Hutchinson asked if any further work w be done by staff to encourage redevelopment of the
Mall. City Manager Atteberry stated the Mall redevelopment will remain a high priority for staff and
conversations will continue between the City and the property owners.
Councilmember Roy made a motion, seconded by Councilmember Troxell, to adopt Resolution
2008-110. The vote on the motion was as follows: Yeas: Hutchinson, Manvel, Ohlson, Poppaw,
Roy and Troxell. Nays: none.
THE MOTION CARRIED.
Executive Session Authorized
Councilmember Ohlson made a motion,seconded by Councilmember Manvel,to go into Executive
Session, as permitted by Section 2-31(a)(1)(a) of the City Code to review and discuss the
performance and proposed compensation and benefits of the City Manager, City Attorney and
Municipal Judge. Yeas: Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
("Secretary's note: The Council went into executive session at this point in the meeting.)
Adjournment
Councilmember Ohlson made a motion, seconded by Councilmember Roy to adjourn the meeting
to November 25, 2008 at 6:00 p.m., to continue the annual evaluations of the City Manager, City
Attorney and Municipal Judge and to conduct any other business that may come before the Council.
Yeas: Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
The meeting adjourned at 10:45 p.m.
Mayor
ATTEST:
City Clerk
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