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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/06/2007 - CONSIDERATION AND APPROVAL OF THE MINUTES OF THE O ITEM NUMBER: 6 AGENDA ITEM SUMMARY DATE: November 6, 2007 FORT COLLINS CITY COUNCIL STAFF: Wanda Krajicek SUBJECT Consideration and Approval of the Minutes of the October 2, 2007 and October 16, 2007 Regular Meetings. October 2,2007 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 2,2007, 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. Citizen Participation Joe Kissell, 913 West Oak, urged Council to consider adopting a resolution calling for the withdrawal of troops from Iraq. Gary Wockner, 516 North Grant, stated City staff should examine how the war in Iraq has affected the City's economy and the amount of federal dollars that are available for local use. Al Bacilli, 520 Galaxy Court, asked if the City had donated funds to the Northern Labor Trades Council. He did not want any funds provided to the Chamber of Commerce. He requested the City stop providing vendor fees to the business community. Bruce Lockhart,2500 East Harmony Road,did not support any resolution that called for withdrawal of troops from Iraq. He did not support Council consideration of any measure that called for a halt of uranium mining in Weld County. Cheryl Distaso, 135 South Sunset Street,stated Council was not listening to the citizens by avoiding any discussion of a resolution calling for the withdrawal of U.S. troops from Iraq and she urged Council to pass the citizens' resolution that had been presented. Citizen Participation Follow-up City Manager Atteberry stated the questions regarding last year's expenses to the Chamber of Commerce had been answered in a memo that was provided to Mr. Bacilli. The City did partially fund Marcus Buckingham, a speaker at a Chamber of Commerce conference, as numerous city employees and Councilmembers attended the conference and the City received a direct benefit from the conference. Marketing of the City's golf courses and the Lincoln Center through Chamber materials was another expense incurred over the past year. The City has not paid membership fees to the Chamber. 183 October 2, 2007 Mayor Hutchinson stated the vendor fees are one of the potential revenue sources that could be applied by Council to fund some items in the proposed budget. He stated Council was listening to citizens regarding the resolution calling for withdrawal of U.S. troops from Iraq but the citizens should contact their federal representatives to voice their opinions. Councilmembers were not elected to represent citizens on national issues. Councilmember Roy asked if staff could determine what is the cost of the war in Iraq to the citizens of Fort Collins and what dollar amount have the citizens contributed to the war. City Manager Atteberry stated he would consult with staff to see if there are any federal metrics in terms of income tax contribution or gas tax contribution that could provide any figures for the amount of money paid by Fort Collins citizens used in the war effort. He stated the next work session would include a discussion of the vendor fees and the option of using vendor fees as additional revenue. Councilmember Manvel stated his appreciation of the citizens who continued to bring the resolution urging withdrawal of U.S. troops from Iraq and urged those citizens to contact their federal representatives, as well. Agenda Review City Manager Atteberry stated there were no changes from the published agenda. CONSENT CALENDAR 6. Consideration and Approval of the Minutes of the September 4, 2007 and September 18, 2007 Regular Meetings. 7. Second Reading of Ordinance No. 102, 2007, Temporarily Suspendingt he 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. This Ordinance, unanimously adopted on First Reading on September 18, 2007, allows the Ricker Building to be used for this purpose. 8. Second Reading of Ordinance No. 103, 2007, Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands Necessary for the Construction of Public Improvements in Connection with Phase Two of the Harmony and Ziegler Roads Front Range Village Improvements Project. Front Range Village is a large commercial development planned for the area located at the northwest corner of the Harmony Road and Ziegler Road intersection. As a result of this 184 October 2, 2007 new development, street improvements and various off-site improvements are necessary for Harmony and Ziegler Roads and will be constructed through the Street Oversizing Program as part ofthe Harmony and Ziegler Roads Front Range Village Improvements Project. Given the construction schedule for the Project, timely acquisition of the property interests is necessary. All property interests needed for Phase I have been successfully negotiated. This Ordinance,unanimously adopted on First Reading on September 18,2007,authorizes the use of eminent domain for all property acquisitions in Phase 11 of the Project, if such action is necessary. 9. Second Reading of Ordinance No. 104,2007,Authorizing the Conveyance of a Conservation Easement on City Natural Area Property(Roman Ranch) to Larimer County. This Ordinance,unanimously adopted on First Reading on September 18,2007, authorizes the conveyance by the City of a conservation easement on the 1,960-acre Roman Ranch property to Larimer County. The City will receive a$976,000 grant from Great Outdoors Colorado to support the conservation of the property as part of the Laramie Foothills Mountains to Plains project approved in 2004. The grant requires that a conservation easement be placed on the property and conveyed to a qualified third party. The conservation easement acknowledges and protects the natural qualities of the property while allowing some visitor services facilities associated with the recreational opportunities to be provided at Soapstone Prairie Natural Area. 10. Second Reading of Ordinance No. 105, 2007, Designating the A.C. Kluver House (No.2), 323 East Magnolia Street, as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code. Ordinance No. 105, 2007, unanimously adopted on First Reading on September 18, 2007, designates the A. C. Kluver House (No. 2) as a Fort Collins Landmark. The owner of the property, Charles F. Ferrie, is initiating this request. 11. First Reading of Ordinance No. 106, 2007, Appropriating Prior Year Reserves and Unanticipated Revenue in Various City Funds and Authorizing the Transfer of Appropriated Amounts Between Funds or Projects. Following is a list of funds that make up the increase in appropriations: General Fund Unanticipated Revenue $ 239,639 Prior Year Reserves Drug Task Force Reserves 144,603 Library Donation Reserves 125,000 Other Restricted Reserves 72,752 Cultural Services and Facilities Fund 85,728 Transportation Services Fund 837,861 Transit Fund 238,816 185 October 2, 2007 Recreation Fund 152,900 Capital Projects Fund 217,579 Natural Areas Fund 26,000 Neighborhood Parkland Fund 11,567 Communications Fund 37,861 Self Insurance Fund 793,344 Conservation Trust Fund 100,000 Cemeteries 6,900 The purpose ofthis 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 2007 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 theywere 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. 107,2007,Appropriating Unanticipated Grant Revenue and Prior Year Reserves in the General Fund to Purchase an Armored Rescue Vehicle for Police Services. Police Services has applied for federal grant funding to purchase an armored rescue vehicle for the past three years and has recently been awarded funding for over 60%of the expense. This vehicle will significantly improve the safety of citizens and police officers in encounters with armed suspects by giving police the ability to move people out of dangerous areas, block armed offenders from the ability to shoot at citizens, and safely transport police officers on their approach to dangerous scenes. The vehicle is very professional in appearance and resembles a small ambulance, which is preferable in this environment to a military-looking armored personnel carver. It will be routinely deployed on high risk police operations to increase the margin of safety for citizens and police officers. 186 October 2, 2007 13. Items Relating to the Old Oak Estates Annexation and Zoning. A. Resolution 2007-088 Setting Forth Findings of Fact and Determinations Regarding the Old Oak Estates Annexation. B. Hearing and First Reading of Ordinance No. 108, 2007,Annexing Property Known as the Old Oak Estates Annexation to the City of Fort Collins, Colorado. C. Hearing and First Reading of Ordinance No. 109,2007,Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Old Oak Estates Annexation to the City of Fort Collins, Colorado. This is a 100% voluntary annexation and zoning of a property that is approximately 5.73 acres in size. The site is 5227 Strauss Cabin Road located approximately one-half mile south of Harmony Road. Contiguity with the existing municipal boundary is gained along the entire northern and western boundaries. 14. First Reading of Ordinance No. 110, 2007, Designating the Parsons/Morgan House and Attached Garage,723 West Olive Street,as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code. The owner of the property, Myrne Watrous, is initiating this request for Fort Collins Landmark designation for the property. The Parsons/Morgan House, located at 723 West Olive Street, is eligible for Landmark Designation under Standard 3. The home remains a very nice example of a Bungalow, which was a popular architectural form throughout the 1920s. Built circa 1927 for Anna and Fred Parsons, the home, while undergoing some alteration,has retained apreponderance of integrity. The house also features a small attached garage located on the southwest comer of the building. This historic garage dates to the home's period of significance, and is a part of this designation application. The Parsons/Morgan House and Attached Garage is located in the Loomis Addition,a noteworthy neighborhood exemplified by its large number of architecturally and historically significant homes. This designation will continue a legacy of historical recognition and protection of this significant neighborhood. 15. Resolution 2007-089 Authorizing the Issuance of an Additional Revocable Permit to the Colorado Department of Agriculture for the Urban Area Monitoring Network Project for the Purpose of Developing Groundwater Monitoring Data. The Colorado Department of Agriculture is developing the Urban Front Range Monitoring Network which will cover urban areas from Fort Collins to Pueblo as part of the Colorado Agricultural Chemicals and Groundwater Protection Program. The Colorado Department of Agriculture has requested that the City of Fort Collins grant permission to enter various parcels owned by the City to install monitoring wells and conduct periodic groundwater testing as part of their Urban Area Monitoring Well Project. On September 4, 2007, City Council authorized a revocable permit for this same purpose with Resolution 2007-078. 187 October 2, 2007 Since the adoption of that Resolution, the Department of Agriculture has identified two additional monitoring well locations which were not included in the prior Council agenda item. This Resolution will be to authorize a revocable permit to include the two additional monitoring well locations as part of this program. 16. Resolution 2007-090 Authorizing a Revocable Permit to Front Ranee Internet, Inc. for the Downtown Wi-Fi Pilot Project. FRII has requested a revocable permit to attach communications equipment on City-owned street light poles and other public property. 17. Resolution 2007-093 Rescinding Resolution 2007-073 and Acceptin t� he Improvements in the Timberline and Prospect SID#94,the Statement of the City Engineer Showing the Cost of Said District and the Assessment Roll Prepared by the Financial Officer for Said District. The Timberline Road,Drake to Prospect Project was the most heavily congested intersection in the City. In the absence of any City Capital Improvement funding for this intersection, two impacted developers elected to privately fund these improvements in order to proceed with their development projects. These developers are the majority property owners and will receive the proceeds of Special Improvement District #94 to spread a portion of the costs through assessments to other undeveloped property in the area benefitted by the improvements. On August 21 of this year,Council adopted an earlier resolution accepting the improvements, statement of costs and assessment roll for the District. Recently, in preparing the assessing ordinance for the District,City staffnoticed that some of the information originally contained in the attachments to this original resolution may have been misleading or confusing as to the total amount of District costs, the amounts to be assessed against properties in the District, and the properties that would actually be assessed. This Resolution corrects certain information contained in Resolution 2007-073 that was approved by the City Council on August 21, 2007. 18. Routine Deed. Deed of Dedication from Avago Technologies Wireless Manufacturing,Inc.,for apermanent right-of-way for public street purposes, located at 4380 Ziegler Road. Monetary consideration: $10. ***END CONSENT*** Ordinances on Second Reading were read by title by Chief Deputy City Clerk Harris. 7. Second Reading of Ordinance No. 102, 2007, 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. 188 October 2, 2007 8. Second Reading of Ordinance No. 103, 2007, Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands Necessary for the Construction of Public Improvements in Connection with Phase Two of the Harmony and Ziegler Roads Front Range Village Improvements Project. 9. Second Reading of Ordinance No. 104,2007,Authorizing the Conveyance of a Conservation Easement on City Natural Area Property(Roman Ranch) to Larimer County. 10. Second Reading of Ordinance No. 105, 2007, Designating the A.C. Kluver House (No.2), 323 East Magnolia Street, as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code. Ordinances on First Reading were read by title by Chief Deputy City Clerk Harris. 11. First Reading of Ordinance No. 106, 2007, 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. 107,2007,Appropriating Unanticipated Grant Revenue and Prior Year Reserves in the General Fund to Purchase an Annored Rescue Vehicle for Police Services. 13. Items Relating to the Old Oak Estates Annexation and Zoning. B. Hearing and First Reading of Ordinance No. 108,2007,Annexing Property Known as the Old Oak Estates Annexation to the City of Fort Collins, Colorado. C. Hearing and First Reading of Ordinance No. 109,2007,Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Old Oak Estates Annexation to the City of Fort Collins, Colorado. 14. First Reading of Ordinance No. 110, 2007, Designating the Parsons/Morgan House and Attached Garage,723 West Olive Street,as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code. Councilmember Manvel made a motion,seconded by Councilmember Troxell to adopt and approve all items on the Consent Calendar. Yeas: Councilmembers Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: None. THE MOTION CARRIED. 189 October 2, 2007 Staff Reports City Manager Atteberry noted Transfort has been recognized for the "Transit Marketing Program of the Year"by the Colorado Association of Transit Agencies. The award recognizes effective and innovative marketing among the 90 transit agencies in Colorado. He congratulated Marlys Sittner, Transfort/Dial-A-Ride General Manager, and staff for this award. City Manager Atteberry stated Soapstone Prairie Natural Area has been recognized as part of a$5 million pilot program to implement "LandScope America," an online public conservation and educational guide. Soapstone has been selected to be an example of how the online guide will work and will provide information, photos, a video, and information on the history and recreational opportunities of the area. City Manager Atteberry introduced Ron Hill,Program Coordinator with the EPA,who presented the EPA Clean Water PISCES Award to the City for using the state's revolving fund loans to provide water quality through unique watershed approaches to stormwater treatment. Councilmember Reports Councilmember Troxell announced the Rocky Mountain Regional Biocontaimnent Laboratory, located on the Foothills Campus, had its ribbon-cutting ceremony and opening, attended by the Mayor and Councilmembers Brown and Troxell. This facility will deal with public health issues and is an asset to the City. Councilmember Manvel stated he attended the Colorado Municipal League Regional Quarterly Meeting, a gathering of governments from Northern Colorado to discuss regional issues. Resolution 2007-091 Approving a Collective Bargaining Agreement with the Fraternal Order of Police, Adopted The following is staff s memorandum on this item. "EXECUTIVE SUMMARY The City and the Fraternal OrderofPolice("FOP')entered into a collective bargaining agreement for 2006 and 2007, which agreement will expire on December 31, 2007. City staff and the FOP have tentatively reached an agreement which addresses the terms and conditions of employment of the members of the bargaining unit for 2008 and 2009. This Resolution ratifies the terms and conditions of a possible agreement, which would take effect on January 1, 2008 and terminate December 31, 2009. BACKGROUND Passage of Citizen Ordinance No. 001 in August 2004 by City voters modified the City Code to provide for collective bargaining between the City and members of the Police Services bargaining 190 October 2, 2007 unit. Members ofthe bargaining unit selected the Northern Colorado Lodge#3, Colorado Fraternal Order of Police("FOP')to serve as their bargaining agent. A summary of the new terms contained in the 2008 and 2009 agreement is attached to the Resolution as Exhibit "A". Adoption of the Resolution would approve the terms and conditions of the 2008 and 2009 collective bargaining agreement and authorize the City Manager to execute the agreement on behalf of the City." Wendy Williams,Assistant City Manager,stated the City has a two-year contract with the Fraternal Order of Police(FOP)that expires at the end of 2007. A tentative agreement has been reached and City was unable to complete the negotiations with has been ratified by the FOP membership. The C y p g the FOP and a mediator was brought in to assist in negotiations. Martin Semple, chief negotiator and outside counsel, stated the collective bargaining process was a long process. One problem encountered in the negotiations was a lack of preparation by the FOP team that slowed down the process. The City team had to cancel sessions or cut them short because the FOP team was not prepared. Another problem was that members of the City's bargaining team received many contacts from different members of the FOP which led to confusion as to what the bargaining unit wanted. When the bargaining process went to mediation, the FOP brought in the same attorney who helped them two years ago,which helped the mediation become productive. The collective bargaining agreement is a fair and balanced agreement from both sides. One unusual aspect of the agreement was that the FOP rejected the City's proposal to increase vacation time and instead wanted to maintain the current status. The City and the FOP agreed to maintain the current split on health insurance. One proposal originally made by the FOP was to increase the pay Of a number of its job categories significantly less than the cost of living. The City offered a higher increase in pay for significant job categories within Police Services. Another unusual aspect of the negotiations was in the final offer the City wanted to increase the pay of lieutenants and dispatch supervisors more than the FOP ultimately was willing to accept. The final agreement contains a 3% wage increase in 2008 for police officers,sergeants and CSOs and 4%for lieutenants and dispatchers and dispatch supervisors. In 2009,there will be a 3%across-the-board increase for all job categories. An additional item in the agreement includes a provision for a labor management committee to be appointed by the Police Chief and the FOP President to meet on a regular basis to deal with issues sooner than every two years during negotiations. The agreement is a fair and balanced agreement for two years that covers all the wages, benefits and other conditions of employment subject to bargaining under the Code. Bruce Lockhart, 2500 East Harmony Road, stated the criticism of the FOP was not warranted and the criticism might make future bargaining more difficult. Councilmember Troxell asked how much staff time was spent on negotiations and the expenses incurred by the negotiating process. Assistant City Manager Williams stated a considerable amount of time went into the negotiations,identifying the issues and figuring the cost of various proposals. The cost of using Mr. Semple, chief negotiator, shared between the City and the FOP, was 191 October 2, 2007 considerable. The City, per the agreement, does provide a certain number of hours for the FOP members to prepare for negotiations, which is another cost. Councilmember Manvel asked for a total cost of the negotiations. City Manager Atteberry stated $5,000 has been included in the 2008 budget and $55,000 was budgeted for the 2009 negotiations, which does not include staff time. Councilmember Manvel stated the percent of health insurance paid by the FOP and the City will stay the same and asked what the current amount is and how does it compare with the amount paid by other City employees. Williams stated the percentage paid by the employees and the City remain the same for all employees, including the FOP. The dollar amount changes, but the percentage remains the same. For example,a member of the Advantage Plan of the City's health insurance will pay 15% of the premium, whether a member of the FOP or other City employee. A member of the Core Plan will pay 10%of the premium. The percentages increase for employees with spouse and family coverage. By 2008,the City will be"at market"with sharing of health insurance premiums with its employees. Councilmember Roy made a motion, seconded by Councilmember Manvel, to adopt Resolution 2007-091. Councilmember Manvel stated he hoped this agreement would continue a good relationship with the City's police officers. The vote on the motion was as follows: Yeas: Councilmembers Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: None. THE MOTION CARRIED. Public Hearing on the 2008-2009 Recommended Biennial Budget for the City of Fort Collins The following is staff s memorandum on this item. "EXECUTIVE SUMMARY This is the second official Public Hearing on the CityManager's 2008-2009Recommended Biennial Budget for the City of Fort Collins. The first Public Hearing was held on September 18, 2007. First Reading of the Ordinance adopting the 2008-2009 biennial budget is scheduled for October 16, 2007, with Second Reading of the Ordinance on November 20, 2007. Additional public input was taken at Budget Open House and Public Education Session held Monday, September 17, 2007. 192 October 2, 2007 The City Manager's 2008-2009 Recommended Budget can be reviewed at the Main Library, the Harmony Branch Library, or the City Clerk's Office. The recommended budget can also be viewed on the internet at www.tegov.com/budget." Barbara Hagen, 5920 Palmer Court,requested a dedicated handicap entrance to the Lincoln Center on the Meldrum Street side and replacement of two or three parking places with a cement ramp that joins the existing sidewalk. Handrails are needed, as well as adequate lighting and a crosswalk to the parking lot across the street to provide safer access to the Lincoln Center. Vicki Lutz, 1644 Foxbrook Way,Director of Crossroads Safe House, asked for funding for human services that are essential to help citizens in need. These services, such as Crossroads Safe House, have served Fort Collins and are as essential as police and fire service. Jenny Merrill, Fort Collins citizen, supported more funding for transit as an essential City service. The proposed budget does not contain any funding for evening Dial-A-Ride services which excludes citizens who must use DAR for transportation to Council meetings. Stephanie Barrett,400 Impala Circle,Fort Collins Housing Authority Commissioner,urged Council to provide more funding for human services. Vivian Armendariz, 820 Merganser Drive, supported funding for services for disabled people that are currently not funded. Tracy Schwartz,7805 Emerald Avenue,Resource Development Director for Neighbor to Neighbor, a program which helps people establish and maintain housing stability,thanked Council for its years of support of this essential service and requested an increase in funding as demands on the program are greater each year. Current funding supports housing counseling and emergency rent assistance. Providing assistance to people who are in danger of losing their homes provides a cost benefit to the city and keeps people from becoming homeless. Families are struggling with mental health and physical challenges, transportation, education, child care, domestic violence, substance abuse and other issues and the need for more human services is growing greater, not lessening. Mike Sollenberger, 3937 Harbor Walk Lane,Fort Collins Housing Authority Commissioner,urged Council to increase funding for affordable housing. Support of affordable housing is good for the economy as it allows employers to provide jobs and be competitive without moving to other communities that have a better supply of lower cost housing. Having affordable housing in Fort Collins will lessen the distance people must drive from work to a place they can afford to live, providing an environmental benefit. Care Housing and the Housing Authority are funded with federal monies but any funding provided by the City can be leveraged to provide greater funding for projects that will assist people in need. He requested funding for the Land Bank for land acquisition that would be used for future affordable housing projects. Mary Smith, 1618 Sagewood, thanked Council for funding a trash districting study and she hoped the data would show that a more efficient trash hauling system would help Fort Collins meet the greenhouse gas reduction goals and reduce other pollutants. 193 October 2, 2007 Ellen Lawson, 519 East Plum, supported the proposed trash districting study for the sake of better air quality. She suggested each trash hauler provide financial information on the profits and costs each company incurs and the City then use that information to redistrict trash collection so each business would have a City-mandated similar total customer make-up to what they currently have. The revenues would not decline and each company's trucks would not be traveling throughout the city. Trash company costs would go down,the City would save on street repair costs and residents would have cleaner air, less noise and save on street assessments. Lloyd Walker, 1756 Concord Drive, spoke in favor of the proposed trash districting study as the current trash collection system is costing the City in terms of accelerated pavement wear and a districting plan would be beneficial to the City and its residents. He proposed funding for community policing that worked closely with Neighborhood Watch groups. The areas of Neighborhood Quality, Safe Environment and Economic Development are tied together. He suggested regional sales tax revenue sharing as one way to fund and promote regional projects. Bruce Lockhart,2500 East Harmony,stated the funding for downtown district maintenance included in the proposed budget should be eliminated. Parking and building maintenance is part of the cost of doing business and the downtown businesses should be incurring that expense. He asked how results would be measured from the funding for economic development and long range planning. He asked what the plan was for the old police building. He did not support funding for the Mason Corridor or the use of Certificates of Participation to renovate or build new buildings. Gary Wockner, 516 North Grant, stated the proposed budget had no funding allocated to preserving the Poudre River, but there was funding for the Halligan Reservoir expansion. He did not support the Reservoir expansion as it was too expensive and involved environmental threats to the Poudre River. Shane Miller,4325 Mill Creek Court,supported funding to preserve the Poudre River as that would be less expensive than building reservoirs. He requested funding for evening Dial-A-Ride service as that is a critical service the City should provide. Cheryl Distaso, 135 South Sunset Street,stated the proposed budget did not contain enough funding for paratransit services. Evening hours for Dial-A-Ride should be funded so that the disabled have the opportunity to attend evening functions such as Council meetings. Nancy York, 130 South Whitcomb, supported the funding included in the proposed budget for the ClimateWise Program. She proposed turning off lights and computers as away to save money under building and facilities maintenance. Creative ways are needed to reduce the City's fleet fuel funding. She questioned the funds spent on holiday lighting and asked for a permanent holiday lighting plan that would reuse lights. Karen Miller, 4325 Mill Creek Court, thanked Council and the City Manager and staff for the positive programs that have been developed, such as recycling asphalt and concrete. She requested adequate funding for snow removal so people can receive emergency services even when large amounts of snow fall. 194 October 2, 2007 Councilmember Ohlson stated Council would be examining funding allocated to make changes to the Lincoln Center in the future and requested a memo on a short term fix to make the front entrance more handicap accessible and safe. He asked for the total amount of money that was available and what amount was in reserves,what was available for one-time expenditure or for ongoing expenses. He asked for more details regarding how departments budget funds for existing staff. He stated there was no funding in the proposed budget to renovate the old Police Building. He supported more funding for affordable housing and other non-profits. City Manager Atteberry stated the proposed budget contains one-time funding for Picnic Rock for 2008,but not for 2009. He noted funding for the proposed trash districting study could be reduced from $135,000 to $75,000. The objectives of the study are to examine districting in terms of pavement efficiencies, safety in neighborhoods, noise and more efficient delivery of services. He noted the human services program is embedded within the offer of Neighborhood Livability entitled Affordable Housing Funds and Community Development. Funding in the amount of$345,000 is proposed at the same level as in 2006-2007 and is to be distributed through the competitive process. The item not funded was an enhancement of the Human Services Program of$210,000 per year. City Manager Atteberry stated the proposal to renovate the old Police Building was not funded and the City is examining whether to sell or lease the building and is determining the cost to retrofit the building to make it a usable space. City Manager Atteberry stated a question was raised as to how the results would be measured from the funding of economic development. There are related performance measures to any offer that are accepted in the Budgeting for Outcomes (BFO) process. If the offer does not deliver the results listed in the offer, then it would not be funded in the next budget cycle. The City has improved its performance measurements and benchmarking so results can be measured. The BFO process allows the benefit of scrutinizing the base-level budgets of each department and provides a lean budget. He stated Certificates of Participation were used to fund the new Police Building and it is an often-used method of financing capital projects by municipalities that has been in practice around the country for many years. Councilmember Troxell asked if there were performance benchmarks from previous years. City Manager Atteberry stated some limited measures were available. Councilmember Ohlson stated the City funds social services in two ways. One is with the Community Development Block Grant (CDBG) and the other is with General Fund dollars. He requested a memo explaining the amount of funding from each and how the funds were allocated. Councilmember Poppaw requested information as to how the funds for social services were leveraged into larger amounts in combination with state and federal grants. Mayor Hutchinson asked if the General Fund amount of$345,000 was paid to Latimer County to provide social services. City Manager Atteberry stated the City did provide funds to Larimer County in the past,but two years ago the City changed its methods and now distributes those dollars through the CDBG process. 195 October 2, 2007 Councilmember Manvel asked for information comparing the amount of funding the City provides for social services compared to assistance provided by other organizations in the area. ("Secretary's Note: The Council took a brief recess at this point in the meeting.) Resolution 2007-092 Affirming the Canal Importation Ponds and Outfall Project,Adopted as Amended The following is staff s memorandum on this item. "FINANCLIL IMPACT The estimated cost of the Canal Importation Ponds and Outfall Project is $21.5 million and is anticipated in the Stormwater f and budgets from 2007 to 2010. EXECUTIVE SUMMARY The Canal Importation Basin Stormwater Master Plan, adopted by City Council in 2001 and reaffirmed in 2004 as a part of the Citywide Stormwater Master Plan, called for $51.5 million in flood control improvements in order to avoid an estimated$125 million of direct f ood damage over the next 50 years. The Canal Importation Ponds & Outfall Project (CIPO) is one element of the improvements in the Canal Importation Basin. The CIPO Project will reducef ood damages to both public and private property and remove properties from the foodplain. The improvements to the Red Fox Meadows Natural Area as a result of the project incorporate important environmental benefits and are expected to improve water quality, habitat conditions and enhance public access to the site. BACKGROUND Utilities and Natural Areas are ready to begin construction of the CIPO/Red Fox Meadows Restoration and Improvement Project. This project was approved in 2004 as apart of the Citywide Stormwater Master Plan. The first installment offunding was included in the 2007 budget and the design is near completion. The project includes the following elements: • Creation of a new detention area at Taft Hill Road and Glenmoor Drive. • Modification to the outlet structure at the existing Plum Detention Area, at Skyline and Elizabeth. • Expansion of the Avery Park Pond and modification of its outlet structure. • Expansion of the Fairbrooke Detention Area, southwest corner of Prospect and Taft Hill. • Relocation and enhancement of the outdoor classroom in the Fairbrooke Detention Area. • Creation of a new detention area and wetlands, southeast corner of Prospect and Taft Hill (Kane Detention Area). • Expansion of the existing Red Fox Meadows Detention Area. 196 October 2, 2007 • Creation of water quality areas in Fairbrooke and Red Fox Meadows Detention Areas. • Approximately 5,000 feet of 24-inch through 102-inch storm sewer pipe and associated inlets. • Restoration and enhancements to Red Fox Meadows Natural/Stormwater Detention Area. The project team is aware of the interest and sensitivity to the design of the detention areas and natural area enhancements at Red Fox Meadows. The project team has incorporated the following elements into the restoration of the Red Fox Meadows Natural Area: • Gentle slopes on the banks of the new Kane detention area and the expanded Red Fox Meadows detention area. • Peninsulas and varied bank shapes to provide a natural look. • A natural, meandering stream to carry low flow runoff and ground water. • A small pond or riffle areas in the Kane detention area for improved wildlife habitat. • Irrigation canals in current locations to minimize loss of riparian habitat. • Removal of the existing flume over the Larimer County No. 2 Canal. • Removal of the existing flume over the New Mercer Canal. • A minimum of new exposed concrete structures. • Special designs, treatments and landscaping to buffer necessary structures and minimize potential for graffiti. • Inlet trash collection devices upstream of Red Fox Meadows. • Provisions for water quality improvement. • Removal of Russian olive and small caliber Siberian elm trees. • Larger caliper Siberian elms removed after collaboration with Natural Areas and Forestry staff. • High quality stands of native trees and shrubs preserved where possible. • Existingfoxdenspreserved when possible;recreate dens in an isolated area ofsite when not possible. • Native species for re-vegetation. • Clumps of trees and shrubs throughout newly constructed areas for future wildlife habitat. • A temporary irrigation system to speed establishment of native grasses, shrubs, and trees. • A new gravel parking area along Longworth Road for 7 cars, I handicap space and I bus. • Educational kiosk, vault toilet, bike rack, trash receptacles near parking lot. • A crushed rock trail system with access from parking area to Red Fox Meadows Detention Area. • An access from the south (via Stuart), including pedestrian bridges over irrigation canals. • An access from the south from Promenade Way. • A detached slightly meandering sidewalk along the east side of Taft Hill Road. • A wetlands education area near the parking area for use by school groups. Public outreach on this project has been extensive. The project mailing list contains over 3,500 addresses for newsletters and project updates. The project team has received input from a public open house, meetings with neighborhood groups, the Land Conservation and Stewardship Board, 197 October 2, 2007 City Council, the Water Board, two City Council worksessions,and hundreds ofindividual contacts. Numerous changes to the project have resulted from this input. The CIPO Project will reduce flood damages to both public and private property, remove properties from the floodplain and for others remaining in the floodplain, reduce the levels offlooding on those structures. The planned improvements to the Red Fox Meadows Natural Area as a result of the CIPO project incorporate important environmental benefits and are expected to improve water quality, habitat conditions and enhance public access to the site. For these reasons, it is staffs professional recommendation that the Canal Importation Ponds & Outfall/Red Fox Meadows Natural Area Restoration Project proceed. " Jim Hibbard, Water Engineering and Field Services Manager, stated the Canal Importation Ponds and Outfall Project (CIPO) is a joint project between the Natural Areas Program and the Utilities. The project is not a stand-alone project but is designed to work with other projects in the Canal Importation Basin that have already been built. The Canal Importation Basin has a history of multiple floods, including the major flood of 1997. Repeat flooding can decrease a neighborhood's vitality and cause it to decline. Removing a neighborhood from the floodplain can halt the decline and lessen the economic impact of flooding from the neighborhood and the community as a whole. The proposed improvements have been postponed for 10 years. The CIPO Project offers a significant opportunity to improve water quality and restoration of a natural area back to its original state. The design of the Project had to meet the objectives of the Natural Areas Program and the Stormwater Program. The Project involves numerous detention ponds and significant pipeline projects from Elizabeth Street to Prospect. The design has been modified by reducing the size of the water quality area on Red Fox Meadows by using innovative technologies in the Basin and inlets to collect the trash and sediment at those locations before it reaches Red Fox Meadows. Significant stands of trees have been identified that will be saved. A new pedestrian access is proposed from Promenade Way. The design team has designed an outlet that will be seen, but will blend in with the surroundings. There has been significant public outreach, newsletters and mailings, meetings with neighborhood groups and an open house was held in May. The Project has a cost estimate of $21.5 million,$5 million of which was included in the 2007 budget and is now being used for design efforts. Another$5 million will be included in the budget over the next three years. If the Project is approved by Council, a preconstruction open house will be held in the early spring and construction will begin on the site in March 2008. The initial efforts will be focused on Red Fox Meadows and the Fairbrooke property, then the Project will move north and eventually end at Glenmoor Pond. The total Project should be completed in 2011. Doug Ernest, 1625 West Elizabeth, stated his condominium was flooded in the 1997 flood. He believed his area was not naturally a floodplain, but rather a floodplain that was created by development over the years. Since 1997,mitigation has taken place,such as making the Avery Park holding pond deeper, but there are still only two or three drains on West Elizabeth which are very inadequate for drainage. Flooding occurs in the area on a fairly frequent basis,such as the flooding that occurred in August. He urged Council to move forward with the Project. 198 October 2, 2007 Rich Dvorak,2506 Bradbury Court,was concerned that the area on the southwest corner of Taft Hill and Prospect was now a detention pond,mostly comprised of weeds,and the City does not maintain the area. He questioned whether the area would be maintained once the Project is completed. Lloyd Walker, 1756 Concord Drive, thanked staff for listening to public comment and making adjustments to the design to incorporate those thoughts. He asked if it was necessary to have two detention ponds on the Kane property and Fairbrooke property as the construction of the two ponds would greatly damage the natural habitat. He also asked if the Fairbrooke area could be left unmowed to allow the area to return to a more natural state. Gary Wockner, 516 North Grant, Water Board member, stated he voted against this Project when it was presented to the Water Board. He did not support the Project because of the expense, the flood risk and because it is not ecologically-minded. He stated the City's stormwater fees were extremely expensive and this project would add to those fees. The Project will take 180 homes out of the 100-year floodplain at a cost of$21 million and that was not a good use of funds. The flood of 1997 was a 500-year flood and this Project is designed to protect against 100-year floods. If another major flood of the size of the 1997 flood occurs, the Project will not protect homes. He questioned the design of the Project and stated it did not use current stormwater drainage methods such as infiltration. He urged Council to delay the Project. Larry Rosener,5926 Huntington Hills Drive,Civil and Environmental Engineering Professor,CSU, stated he had spent eight years working on stormwater management practices to improve and protect the urban environment and 31 years in stormwater management consulting work. He supported the Project and felt it was required for the health and protection of citizens and property. The Project can be done in an environmentally sensitive manner so that the final result will be an area that is better than what is there today. Lori Brunswig, 1901 Ridgewood Road, stated the Project was not right for the people who live in the Canal Importation Basin. The Project should be located on different properties so that wetlands were not destroyed. It did not remove enough homes from the floodplain to justify the expense. She urged Council to delay the Project and request other options that will remove more homes from the floodplain. Shane Miller,4325 Mill Creek Court, asked if an alternative proposal was made that would look at mitigation efforts to increase infiltration instead of diverting the stormwater. He asked if the Project conflicted with the Land Use Code which states non-permeable surfaces should not be built on natural stormwater drainage. He urged Council to delay the Project and review any alternative proposals that used newer infiltration methods, instead of diversion of stormwater. Councilmember Troxell stated information he had received from the previous owner of Red Fox Meadows indicated there was an artesian spring flow under Red Fox Meadows and he asked if the area could serve as a detention pond with this water source located beneath the ground. Hibbard stated the City had ample opportunity to discover what lay underneath Red Fox Meadows as storm sewer lines and water lines have been installed through that area numerous times. Extensive soil borings have been done in preparation for the Project. Staff has dug test holes to determine what the 199 October 2, 2007 subsurface situation is in the area. The geotechnical consultant and civil engineering consultants are confident the soils will perform as expected. There was a field drain in the area that used to run water into that area,but no water has come out of the pipe at the corner of Prospect and Taft Hill in many years. It is possible conditions upstream have changed enough to affect the flow of the artesian spring flow. Councilmember Troxell asked if the 30-inch sewer line to the south of Red Fox Meadows would need to be rerouted. Hibbard stated portions of that sewer line would be relaid as a part of the Project. Councilmember Troxell asked if the current natural water flow from the area was required by Colorado water law. Hibbard stated the Project will comply with Colorado water law. Some of the ground water will be used to restore the stream but the direction of flow will not be changed nor i� � does the Project create any consumptive uses that would be in violation of Colorado water law. Councilmember Manvel asked if it was possible to have a larger detention pond on the Fairbrooke property and not disturb the Kane property. Hibbard stated that is not feasible. If the Fairbrooke property were dug any deeper than currently proposed,it would become so deep that the water would not drain out of the detention area. Both areas together are necessary to accomplish the Project. Water coming from the west will be detained at Fairbrooke as well as Kane so that when water comes into the Red Fox Meadows, there will be room for that drainage water and there will not be any adverse impacts to the properties downstream. Councilmember Manvel asked how the Project fits into the overall Stormwater Master Plan. Hibbard stated the Project is one element in the Master Plan for the Canal Importation and Ponds area. All the projects work together. The Sheldon Lake Project is completed and it works with this Project. There are projects that come after this Project that will take more properties out of the floodplain. Future projects that work with this Project will help other areas that will not receive any flood relief from this Project. There will always be some flooding downstream in the Campus West area because it is not economically feasible to totally remove it from the floodplain. Council has directed staff to use the measure of the 100-year flood to determine economic feasibility of a project. The Project will reduce the amount of flooding in Campus West significantly and the amount of water crossing Shields street onto the CSU campus,crossing the campus,then exiting the other side will be reduced by one-half. The Project fits nicely with CSU's Master Plan. Staff has fully coordinated with CSU when designing this Project. Campus West is in the City's floodplain, not a FEMA floodplain, and has been in the floodplain since 2001. This Project does not put anyone in the floodplain and does not require anyone to get flood insurance because it is not a FEMA floodplain so there is no federally-mandated flood insurance. The total cost of projects in this basin is approximately$51 million and,based on conservative estimates,over the next 50 years,will save $125 million in damages. These projects are cost-effective and beneficial. Councilmember Roy requested a description of the plan to revegetate the area and a time frame for completion. Hibbard stated the Utilities staff was working closely with the Natural Areas staff specialists to ensure that all was done to speed revegetation. Natural grasses do grow slowly and a recovery period will be necessary. A temporary irrigation system will be installed to speed the 200 October 2, 2007 process. A temporary cover crop might be necessary to help start the native vegetation. Trees will be planted and temporarily irrigated. Recovery should be well underway after three growing seasons. Karen Manci, Senior Environmental Planner, stated the recovery time could take longer,depending on rainfall. The cover crop would lower the amount of weeds present at the site which would enable the native grasses to become established more easily. Typical short-grass prairie restoration can take up to ten years to get good grass established. The temporary irrigation should shorten that time. Councilmember Roy asked how construction might impact citizens at times and what mitigation efforts would be put into place. Hibbard stated there will be disruptions that occur along Castle Rock as large-diameter pipe is installed and customer service will be provided so that those disruptions will be minimal. Residents of Longworth Road could be heavily impacted with much truck traffic occurring so the plan is to not use Longworth Road for truck traffic but to build a parallel road to be used. The road will be removed when the work is completed at the site. Mayor Hutchinson stated the Project must be viewed in context of the entire Master Plan and asked how the Project is in agreement with Council policy. Hibbard stated the Plan closely follows previous Council policy direction,including the policy that Natural Areas and stormwater detention sites be acquired jointly when feasible. There is not much "ultra new" technology in the area of stormwater drainage. The Basin is 95% developed and the "low-impact" technologies such as infiltration are best suited for areas that are under new development. This Project is very expensive because it involves retro-fit technology. As each Basin heads south through the city,there are fewer problems because the new developments incorporate newer technologies that were not available when this Basin was developed. Councilmember Brown asked for an explanation of the financing of the Project. Hibbard stated funds for the operation of the stormwater system as well as capital improvements comes from the rate payers and impact fees from developers. The current financing plan was adopted by Council in 2005 and calls for no new debt service but is "pay-as-you-go." The debt load currently on the Utilities was authorized by Council in the 1990s and early 2000s. Since 2002,no new debt has been incurred. There has been no rate increase since 2004 nor is there a rate increase proposed in the near future. The City's rates are relatively high when compared to other locations in the nation,but other locations are raising their rates. The funding is available to finish the proposed projects. Councilmember Ohlson asked what other options had been brought to Council such as providing 80%of the flood protection at half the cost or using the property south of Prospect, east of Shields as a potential detention area rather than using the Kane property. Hibbard stated staff had examined other options that had been presented to Council in 2004 when the Master Plan was adopted. Staff presented an option that was 50-year flood protection and was economically feasible. Staff discovered that using a lower criteria only provide a 10-20% savings in cost but left many more homes in the 100-year floodplain. At the August 28 work session, staff presented an option for this Project, based on a 50-year flood protection, but the cost savings was less than 5%. The only difference in the cost between providing 50-year flood protection and 100-year flood protection is in the size of the pipe to be laid. The other costs of the Project are the same. The property at Prospect and Shields was considered during the Master Plan process in 2004,but not necessarily as part of the design of this Project. Staff determined using the property at Prospect and Shields was 201 October 2, 2007 not feasible as it would require improvement of the water conveyance over a longer distance from Red Fox Meadows than the current Project requires and would cost more and cause environmental damage, as well. Councilmember Ohlson asked if future development included new technology so that retro-fit projects such as this one would not be necessary. Hibbard stated the City was doing a better job now than five or ten years ago. The stormwater program has been continuously improving since 1980. Staff is working with City planners to consider changing City Plan standards in the area of landscaping and aesthetics in stormwater projects. The floodplain regulations protect the floodways from development where most of the water is conveyed and are designed to prevent development in areas that would need later flood control. The best management practices should be reviewed and in some new developments there are new technologies that will help reduce run-off from new developments and improve water quality. Councilmember Ohlson asked what was proposed to improve the aesthetics of the Glenmoor/Plum/Avery Park aspect of the Project. Hibbard stated the Glenmoor Pond will be significantly excavated so that detention there will lessen the impact in Red Fox Meadows. There will not be as many islands or as gentle a slope as in Red Fox Meadows but the intent is to create something pleasant for people to enjoy. Plum Park does not require much work so there will belittle disruption. Reforestation has already occurred in Plum Park but there will be more plantings there as well as in Avery Park. Councilmember Manvel stated the Fairbrooke area is now mowed and asked which areas would be allowed to grow more naturally and not be mowed. Hibbard stated most of Glenmoor Pond would be mowed with a riparian zone along the stream that would be left as a natural area. Plum Park will also continue to be mowed. Fairbrooke has a diagonal sidewalk crossing it and currently it is proposed that east of the sidewalk will be left in a more natural state and not be mowed,but west of the sidewalk will continue to be mowed. Mowing occurs in these areas about five times during a growing season that receives a fair amount of rain. If it is a dry year, it may only be mowed twice. Occasional mowings help to control weeds. The western end of Avery Park is mowed, while the eastern end stays more natural. Councilmember Roy made a motion, seconded by Councilmember Troxell, to adopt Resolution 2007-092. Councilmember Roy stated this Project will provide flood protection for people primarily in an area of modest homes and modest incomes and should be effective for a very long time. While a natural habitat will be temporarily destroyed, the long term result will be greater protection of people and the homes they live in and the natural areas will rebound. This Project meets the needs of many citizens and will provide a great benefit for 80 years or more into the future. Mayor Hutchinson asked if the Project would benefit the entire stormwater system,not just within the Basin. Hibbard stated the Project has beneficial effects on Spring Creek, the CSU campus and further on. This Project is one step in further improvements in other areas. 202 October 2, 2007 Councilmember Ohlson requested a friendly amendment to the Resolution that called for the Fairbrooke area to be restored to a more natural state and not be mowed. City Attorney Roy stated the Resolution, in part, approves the design of the Project and any desire of the Council to modify the design should be documented in the Resolution. Mayor Hutchinson asked if restoring Fairbrooke to a more natural state would be possible and would that add significantly to the cost of the Project. Hibbard stated it was quite possible to make the proposed change. Some of the adjacent property owners may object to the area not being mowed. One solution might be to mow a strip around the property, leaving the core more natural, but providing a transition from lawns to a more natural state. The area would probably be mowed for the first few years as a weed control mechanism until native grasses are firmly established. Councilmember Roy, maker of the motion, accepted the friendly amendment. Councilmember Troxell questioned the need for any amendment to the Resolution as he believed the current Resolution did allow flexibility in the design such as this proposed change. He asked if Council was approving a detailed design as it was not attached to the Resolution. City Attorney Roy stated the design was not attached as an exhibit to the Resolution but the Resolution does affirm the design of the project as well as the timeline and the purpose. Materials have been submitted to the Council that describe the design of the Project and are part of the record. The Resolution approves what has been submitted to the Council. If this change is important to Council, then it needs to record that by amending the Resolution. The proposed amendment does address long-term maintenance as well as the design and would clarify such issues in the future. City Manager Atteberry stated if Council wants the proposed design change incorporated into the Project, then staff will do so. If Council wants to clarify the design change for the record, then the amendment is needed. Councilmember Troxell, who seconded the motion, also accepted the friendly amendment. Councilmember Brown asked if the neighbors of the area had the expectation that mowing would continue as it had in the past. Owen Randall,Chief Engineer,stated the majority of the people living around the Fairbrooke Area expected the City to maintain the area as it has in the past. Mayor Hutchinson asked if further outreach sessions were scheduled where this information could be shared. Hibbard stated outreach was ongoing and a pre-construction open house was planned to inform citizens what to expect in terms of the construction activities. At those times, information about the proposed changed could be handed out. If a buffer strip could be mowed, then the neighbors might be satisfied with the proposed change. Councilmember Troxell stated the recent heavy rains of August 2 were a stark reminder of the intense storms and amounts of water that can fall in this Basin. The Project has an excellent engineering team doing the design. He supported the Project. 203 October 2, 2007 Councilmember Poppaw thanked staff for the extensive public outreach done for the Project. She supported the Project as it would protect homes of citizens who did not have the financial means to deal with the aftermath of a flood. Councilmember Manvel thanked staff for its hard work and outreach efforts and stated the Project is an important one for the City. Councilmember Brown stated the Project was well-designed and planned and would protect both property and the lives of citizens. Councilmember Ohlson stated the Project had been greatly improved from its original design. The average household pays$171 per year in stormwater fees and these projects need public scrutiny as they are very expensive. He did not think the Project incorporated best practices and he hoped future projects would incorporate newer technology and not be "deeper holes and bigger pipes." He did not support the Resolution. Mayor Hutchinson stated this Project was an excellent one that would improve drainage within the City. Many newer technologies cannot be used in an area that has already been developed, but the newer development areas in the City were incorporating these newer technologies. The stonmwater system, of which this Project is a part, is expensive,but it is interconnected and it was important to note that flooding in Fairbrooke could affect areas across town. The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvell, Poppaw, Roy, and Troxell. Nays: Ohlson. THE MOTION CARRIED. Adiournment The meeting adjourned at 9:53 p.m. Mayor ATTEST: City Clerk 204 October 16, 2007 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 16,2007, 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. Citizen Participation Eric Sutherland, 631 Laporte, stated a key provision in the Electric Energy Supply Policy specifies that the Fort Collins Utilities is to continue diversifying the portfolio of energy sources in the City and to increase the City's percentage of renewable energy to 15% by 2017. Utilities is currently claiming to achieve part of that goal through renewable energy credits and he did not believe that was a good practice. He urged Council to discontinue the practice of buying renewable energy credits as the practice does not help reduce greenhouse gas vectors or reduce resource depletion vectors. Joe Kissel,913 West Oak,urged Council to adopt a resolution calling for the immediate withdrawal of U.S. troops from the war in Iraq. Israel Brener, 2224 Rollingwood Drive,stated the ordinance that established the"3-unrelated"rule is difficult to understand and should be repealed. Cheryl Distaso, 135 South Sunset, urged Council to adopt a resolution calling for the immediate withdrawal of U.S. troops from the war in Iraq. NancyYork, 130 South Whitcomb,requested Council to adopt a resolution calling for the immediate withdrawal of U.S. troops from the war in Iraq as it was far too costly in terns of both money and lives. Vivian Armendariz, 820 Merganser Drive, requested Council to allow the use of candles when a vigil is held in Old Town Square. Cyndy Tiley, 4412 East Mulberry Street, stated she has multiple sclerosis and needs to use Dial-A- Ride. She requested continuation of paratransit services for herself and others who rely on the service to navigate the city. 205 October 16, 2007 Citizen Participation Follow-up Mayor Hutchinson stated the Platte River Power Authority provides electric power to Fort Collins, Longmont, Estes Park and Loveland. The policy of renewable energy needs that could be provided through renewable energy credits has been changed from 83%to 50%. Renewable energy credits are audited. Renewable energy is more expensive to produce and the renewable energy credits are used to pay for energy from renewable sources to be placed into the power grid that supplies electricity to all of the PRPA customers. Councilmember Troxell stated the"3-unrelated"rule should be reviewed and a determination should be made as to any unintended consequences to either renters or landlords. Councilmember Ohlson stated the"3-unrelated"rule has been in effect only 10 months and had been debated for several years before it was passed. Many neighborhoods in his district have been postively impacted by the rule and it is working as it was intended. Councilmember Roy noted his district also has seen positive results from the"3-unrelated"rule and it appeared to be encouraging families to move into neighborhoods that had previously had many problems. Agenda Review City Manager Atteberry noted Item#15 First Reading of Ordinance No. 114, 2007, Amending the City Code to Increase the Capital Improvement Expansion Fee, Street Oversizing Fee and Neighborhood Parkland Fee to Ref ect Inf ation in Associated Costs ofServices had an amended title to the ordinance. In Item#23 Items Relating to the Prospect RoadII-25Interchange Rezonings, he recommended pulling Resolution 2007-098 Amending the City Structure Plan Map Pertaining to the Northeast Corner of Prospect Road and I--25 and First Reading of Ordinance No. 127, 2007, Amending the Zoning Map of the City of Fort Collins by Changing the Zoning Classifications for that Certain Property Known as the Northeast Corner of East Prospect Road and I-25 Rezoning and to consider an amended Resolution 200 7-099 Amending the I-25 Subarea Plan. A work session will be scheduled to consider the pulled items. CONSENT CALENDAR CONSENT NON-BUDGET ITEMS 6. Second Reading of Ordinance No. 106, 2007, 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 2007 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 206 October 16, 2007 for unanticipated operation expenses from reserves that are set aside for that purpose. This Ordinance was unanimously adopted on First Reading on October 2, 2007. 7. Second Reading of Ordinance No. 107,2007,Appropriating Unanticipated Grant Revenue and Prior Year Reserves in the General Fund to Purchase an Armored Rescue Vehicle for Police Services. This Ordinance, unanimously adopted on First Reading on October 2, 2007, appropriates federal grant funding Police Services has received to purchase an armored rescue vehicle. This vehicle will significantly improve the safety of citizens and police officers in encounters with armed suspects by giving police the ability to move people out of dangerous areas, block armed offenders from the ability to shoot at citizens, and safely transport police officers on their approach to dangerous scenes. 8. Items Relating to the Old Oak Estates Annexation and Zoning. A. Second Reading of Ordinance No. 108,2007,Annexing Property Known as the Old Oak Estates Annexation to the City of Fort Collins, Colorado. B. Second Reading of Ordinance No. 109,2007,Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Old Oak Estates Annexation to the City of Fort Collins, Colorado. These Ordinances, unanimously adopted on First Reading on October 2, 2007, annex and zone property located at 5227 Strauss Cabin Road,located approximately one-halfmile south of Harmony Road. This is a 100%voluntary annexation. 9. Second Reading of Ordinance No. 110, 2007, Designating the Parsons/Morgan House and Attached Garage,723 West Olive Street,as a Fort Collins Landmark Pursuant to Chanter 14 of the City Code. Ordinance No. 110, 2007, unanimously adopted on First Reading on October 2, 2007, designates the Parsons/Morgan House and Attached Garage,723 West Olive Street,as a Fort Collins Landmark. The owner of the property, Myrne Watrous, is initiating this request. 10. First Reading of Ordinance No. 111,2007,Appropriating Unanticipated Grant Revenue from the Bureau of Justice Assistance in the General Fund for the Larimer County Drug Task Force. This Ordinance appropriates grant funds received by the City for the Larimer County Drug Task Force from the Bureau of Justice Assistance. These funds are to be used to fund the investigation of illegal narcotics activities in Larimer County. 207 October 16, 2007 11. First Reading of Ordinance No. 112,2007,Appropriating Prior Year Reserves In the Street Oversizing Fund for Transfer To the Capital Projects Fund - North College Avenue hmvrovements Project to Be Used for to Acquire Property Necessary for Future Immovements along North College Avenue. The Fort Collins Master Street Plan provides for the eventual relocation of East Vine Drive from its present location to a somewhat parallel location to the north. The designed realignment location on North College Avenue will be opposite and east of Pinon Street. There is a Building on Basics(BOB)Capital Improvement Project planned to improve North College Avenue from Vine to Conifer, including the purchase of additional right-of-way, scheduled in 2011. However,it has been determined that the best location for two proposed water transmission lines running generally east-west to cross North College is at the same location as the proposed realigned East Vine Street. One of the proposed water transmission lines is a joint venture between ELCO(East Larimer County Water District) and NWCWD (Northern Weld County Water District),known as NEWT. The other line is for the City of Greeley,known as GWET. The construction of these two lines is scheduled to begin in early 2008. The owner of a tract of land on the east side of North College Avenue needed for this relocated street has offered that parcel for sale to the City. The requested price has been determined by staff to be within fair market value. In order to have funds to acquire this needed tract prior to the BOB funding, $225,000 must be appropriated from Street Oversizing to acquire this parcel. 12. First Reading of Ordinance No. 113, 2007,Authorizing the Lease of City-Owned Property at 211 South Bryan Avenue for Up to Ten Years. The Fort Collins Baseball Club (formerly the Fort Collins Youth Baseball Association), a local non-profit that provides recreational and competitive baseball programming to more than 3300 players ranging in age from 5 to 18 years old, resides and operates out of an approximately 1,495 square-foot City facility located near the baseball diamonds at City Park. The City has leased this facility to the baseball club at no cost since 1983 in recognition of the community benefits derived from the organization's recreational programming. The term of the current lease is expired and the Baseball Club wishes to renew its lease arrangement with the City for up to ten years. Staff believes that it is in the best interest of the community to renew this no-cost lease. 13. Resolution 2007-094 Authorizing a Revocable Permit to Kurt E.Zimmerman for Access to a Stock Water Tank Located on Soapstone Prairie Natural Area. This Resolution authorizes a revocable permit to Kurt E. Zimmerman to allow him to continue to use overflow water from a City livestock watering system on Soapstone Prairie Natural Area to water livestock on the Zimmerman property. This will not require a physical change on the City's property and will allow an informal arrangement that had not previously been documented to continue. 208 October 16, 2007 14. Resolution 2007-095 Amending Resolution 2007-062 to Extend the Deadline For a Task Force of Citizens to Make Recommendations Regarding the Citv's Holiday Display Polio The Holiday Display Task Force was appointed by the City Manager in early August 2007 for the purpose of reviewing the City's current Holiday Display Policy and recommending possible modifications to the policy. The Task Force held its first meeting on August 22, 2007. Since then members have met regularly and investigated a number of options, with the goal of developing a recommendation to City Council by the designated deadline of October 31, 2007. The Task Force was originally scheduled to present its recommendations to Council at its regular meeting on November 6, 2007. The agenda schedule for that meeting necessitates that the materials for the meeting be submitted by noon on October 17, 2007, effectively eliminating two full weeks from the Task Force's original schedule. The presentation of the Task Force's recommendations to City Council has been tentatively rescheduled to November 20,2007,pending Council's approval of this Resolution,in order to give Task Force members time to complete the group's recommendations. While the Task Force fully intends to submit its recommendations as required for the November 20, 2007, Council meeting, extending the deadline to the end of the year will allow additional flexibility should Council wish the Task Force to develop any follow-up recommendations as a result of the November 20, 2007, discussion. Therefore, the proposed Resolution will extend the Task Force's deadline to December 31, 2007. CONSENT BUDGET ITEMS 15. First Reading of Ordinance No. 114, 2007,Amendingth e City Code to Increase the Capital Improvement Expansion Fee, Street Oversizing Fee and Neighborhood Parkland Fee 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 2007 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 2006. This Ordinance increases the CIEF and the neighborhood parkland fees by the estimated 2007 increase in the CPI of 2.50%,and the Street Oversizing fees by 4.85%, which reflects the projected increase reported in the Engineering News Record. 16. Items Relating to the 2008 Downtown Development Authority Budget. A. First Reading of Ordinance No. 115,2007,Appropriating Downtown Development Authority Operating Funds and Fixing the Mill Levy for Fiscal Year 2008. 209 October 16, 2007 B. First Reading of Ordinance No. 116,2007,Appropriating Revenue in the Downtown Development Authority Debt Service Fund for Payment of Debt Service for the Year 2008. C. First Reading of Ordinance No. 117, 2007, Authorizing the Transfer of Appropriations Between Capital Improvements Within the Downtown Development Authority Operations and Maintenance Fund Related to the City of Fort Collins, Colorado, Downtown Development Authority Taxable Subordinate Tax Increment Revenue Bonds, Series 2004A. The Downtown Development Authority Board of Directors (the 'Board") adopted its proposed budget for 2008 totaling $6,709,104 on September 13, 2007. The Board determined the mill levy necessary to provide for payment of administrative costs incurred by the DDA at its regular meeting of September 13, 2007. Ordinance No. 115, 2007, appropriates the DDA operating funds and sets the mill levy. Ordinance No. 116,2007,appropriates funds for 2008 DDA debt service payments from the tax increment received by the City. Ordinance No. 117, 2007 authorizes the transfer of appropriations of$1,000,000 from the City of Fort Collins Museum project to the funding of Beet Street for 2008. 17. Resolution 2007-096 Adopting a Revenue Allocation Formula to Define the City of Fort Collins' Contribution to the Poudre Fire Authority Budget for the Year 2008 for Operations and Maintenance. This Resolution establishes a Revenue Allocation Formula between the City of Fort Collins and the Poudre Fire Authority to contribute funding for maintenance and operating costs of Poudre Fire Authority. ***END CONSENT*** Ordinances on Second Reading were read by title by City Clerk Krajicek. 6. Second Reading of Ordinance No. 106, 2007, Appropriating Prior Year Reserves and Unanticipated Revenue in Various City Funds and Authorizing the Transfer of Appropriated Amounts Between Funds or Projects. 7. Second Reading of Ordinance No. 107, 2007,Appropriating Unanticipated Grant Revenue and Prior Year Reserves in the General Fund to Purchase an Armored Rescue Vehicle for Police Services. 210 October 16, 2007 8. Items Relating to the Old Oak Estates Annexation and Zoning. A. Second Reading of Ordinance No. 108,2007,Annexing Property Known as the Old Oak Estates Annexation to the City of Fort Collins, Colorado. B. Second Reading of Ordinance No. 109,2007,Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Old Oak Estates Annexation to the City of Fort Collins, Colorado. 9. Second Reading of Ordinance No. 110, 2007, Designating the Parsons/Morgan House and Attached Garage,723 West Olive Street,as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code. Ordinances on First Reading were read by title by City Clerk Krajicek. 10. First Reading of Ordinance No. 111,2007,Appropriating Unanticipated Grant Revenue from the Bureau of Justice Assistance in the General Fund for the Larimer County Drug Task Force. I t. First Reading of Ordinance No. 112, 2007, Appropriating Prior Year Reserves In the Street Oversizing Fund for Transfer To the Capital Projects Fund - North College Avenue Improvements Project to Be Used for to Acquire Property Necessary for Future Improvements along North College Avenue. 12. First Reading of Ordinance No. 113, 2007,Authorizing the Lease of City-Owned Property at 211 South Bryan Avenue for Up to Ten Years. 15. First Reading of Ordinance No. 114, 2007, 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. 16. Items Relating to the 2008 Downtown Development Authority Budget. A. First Reading of Ordinance No. 115,2007,Appropriating Downtown Development Authority Operating Funds and Fixing the Mill Levy for Fiscal Year 2008. B. First Reading of Ordinance No. 116,2007,Appropriating Revenue in the Downtown Development Authority Debt Service Fund for Payment of Debt Service for the Year 2008. C. First Reading of Ordinance No. 117, 2007, Authorizing the Transfer of Appropriations Between Capital Improvements Within the Downtown Development Authority Operations and Maintenance Fund Related to the City of Fort Collins, Colorado, Downtown Development Authority Taxable Subordinate Tax Increment Revenue Bonds, Series 2004A. 211 October 16, 2007 21. First Reading of Ordinance No. 118, 2007, Being the Annual Appropriation Ordinance Relating to the Annual Appropriations For the Fiscal Year 2008; Adopting the Budget For the Fiscal Years Beginning January 1,2008,And Ending December 31,2009;and Fixing the Mill Levy for Fiscal Year 2008. 22. Items Relating to Utility Rates and Charges for 2008. A. First Reading of Ordinance No. 119, 2007, Amending Chapter 26 of the City Code to Revise Water Plant Investment Fees and Raw Water Requirements. B. First Reading of Ordinance No. 120, 2007 Amending Chapter 26 of the City Code Relating to Wastewater Rates and Charges. C. First Reading of Ordinance No. 121, 2007, Amending Chapter 26 of the City Code to Revise Sewer Plant Investment Fees. D. First Reading of Ordinance No. 122, 2007 Amending Chapter 26 of the City Code Relating to Electric Rates and Charges. E. First Reading of Ordinance No. 123, 2007, Amending Chapter 26 of the City Code to Revise Electric Development Fees and Charges. F. First Reading of Ordinance No. 124, 2007, Amending Chapter 26 of the City Code to Revise Stormwater Plant Investment Fees. G. First Reading of Ordinance No. 125, 2007,Amending Chapter 26 of the City Code Relating to Utility Connection Fees and Miscellaneous Charges. 23. First Reading of Ordinance No. 126, 2007, Amending the Zoning Map of the City of Fort Collins by Changing the Zoning Classifications for That Certain Property Known as the Southwest Corner of East Prospect Road and I-25 Rezoning. 24. First Reading ofOrdinance No. 128,2007 Authorizing the Conveyance of 143 Acres of Land To Colorado State University Research Foundation In Exchange for 267 Acres of Land Adjacent to Reservoir Ridge Natural Area. Councilmember Troxell made a motion, seconded by Councilmember Poppaw, to approve the Consent Calendar as amended. Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: None. THE MOTION CARRIED. 212 October 16, 2007 Consent Calendar Follow-up Councilmember Manvel noted Item #14 Resolution 2007-095 Amending Resolution 2007-062 to Extend the Deadline For a Task Force of Citizens to Make Recommendations Regarding the City's Holiday Display Policy extended the time for the Holiday Task Force to report to Council until December 31,but staff hoped the report would come before Thanksgiving. Councilmember Ohlson stated Item#I I First Reading of Ordinance No. 112, 2007, Appropriating Prior Year Reserves In the Street OversizingFund for Transfer To the Capital Projects Fund-North College Avenue Improvements Project to Be Used for to Acquire Property Necessary for Future Improvements along North College Avenue was a good move for the North College area. Item#12 First Reading of Ordinance No. 113, 2007, Authorizing the Lease of City-Owned Property at 211 South Bryan Avenue for Up to Ten Years authorized a lease to help the Fort Collins Baseball Club He requested information on its scholarship program for low-income participants. Staff Reports City Manager Atteberry noted the Water Treatment Facility had recently received two water quality awards that honored the Facility's ongoing commitment and production of high quality water. For the ninth year in a row,the Facility received the"Director's Certificate of Recognition"Award from the Partnership for Safe Water. The Water Treatment Facility had also received the "Bronze Achiever Award" from the Environmental Leadership Program which honors achievements in improving drinking water quality as well as drinking water treatment and distribution operations. He recognized Brian Janonis, Interim Utilities Director, and Kevin Gettig, Water Production Manager, and their staff for performing quality work. Councilmember Reports Councilmember Manvel stated in early October, he met with the Regional Air Quality Council, which is continuing to work on strategies to reduce ozone levels in Northern Colorado and the Denver area. The "Repair Your Air" campaign, a drive-by exhaust test program that encourages people to repair the high exhaust emissions from their vehicles, has begun in Denver and is being evaluated for cost-effectiveness and reduction of emissions. If it is successful, the program could be expanded throughout Northern Colorado. He also attended a meeting of the MPO, which is working on transportation issues to improve air quality. He received a draft of the North Front Range 2035 Regional Transportation Plan which projects transportation needs and solutions for the next 30 years. Mayor Hutchinson stated the Colorado Climate Project was now completed and had been approved by the Directors of the Project. The Project developed over 70 recommendations and actions that will be given to the Governor concerning climate change. Mayor Hutchinson, as a Director of the Project, appointed Dr. Tony Frank, CSU Provost,Brian Moeck, PRPA General Manager, and Judy Dorsey,CEO of the Brendle Group,a local environmental engineering firm to the Project panel. The Project was begun by the Rocky Mountain Climate Organization, a private, not-for-profit 213 October 16, 2007 organization,was nonpartisan and included an analytical examination of actions might be suggested regarding climate change, including cost and benefit analysis. Ordinance No. 118,2007, Being the Annual Appropriation Ordinance Relating to the Annual Appropriations for the Fiscal Year 2008 and Adopting the Budget for the Fiscal Years Beginning January 1, 2008 and Ending December 31, 2009, and Fixing the Mill Levy for Fiscal Year 2008,Adopted as Amended on First Reading. The following is the staff memorandum on this item. "FINANCIAL IMPACT This Ordinance represents the annual appropriation for fiscal year 2008, and adopts the total City budget for fiscal year 2008 at $569.6 million and for fiscal year 2009 at $537.3 million. This Ordinance also sets the City mill levy at 9.797 mills, unchanged since 1991,for fiscal year 2008. EXECUTIVE SUMMARY The Annual Appropriation Ordinance is presented for First Reading. This ordinance sets the City Budget for the two year period 2008-2009. The Ordinance is based on the City Manager's Recommended Budget, with several additions directed by City Council at its October 9, 2009 Work Session. The additional offers total $1,038,916 in one-time General Fund expenditures and $124,148 (2009 costs) in on-going General Fund offers. If approved on First Reading, these additions to the Recommended Budget would be funded through the use of an additional$412,715 in General Fund Reserves and an increase in revenue from the Sales and Use Tax Vendor Fee of $390,000 per year(on-going.) These additions use all of the total available funds, including one-time Reserves and on-going Vendor Fee revenue. BACKGROUND This biennial budget represents the work of many dedicated employees who have come together for the second time to use the Budgetingfor Outcomes(BFO)approach to develop this recommendation. Nearly 100 employees were involved in creating a recommended budget which builds on the ideas of transparency in the budget process, clear choices for how to allocate limited revenues and organizational accountability. These principles are the hallmark of the BFO process. The purpose of utilizing the BFO approach is to: • Identify what's important to the community and develop a sound financial and service plan to achieve those outcomes; 214 October 16, 2007 • Allocate dollars based on current priorities and results, not simply increase last year's spending; • Effectively deal with revenue limitations; and • Emphasize accountability, efficiency, innovation and partnerships Using this approach, City Council and staff worked in close collaboration over the past two months to build a financial plan, based on revenue available, that will achieve service outcomes which matter most to our citizens and community. This work has resulted in the development of the Final 2008-2009 Budget. The approval of the Appropriation Ordinance on First Reading represents a major milestone in this process. The final budget is organized around seven Council approved Result Areas or Outcomes that citizens want and need: Economic Health Fort Collins has a healthy economy reflecting the values of our unique community in a changing world. Environmental Health Fort Collins creates, maintains and promotes a healthy and sustainable environment with an adequate, high quality water supply. Safe Community Fort Collins is a safe place to live, work, learn and play. Neighborhood Livability Fort Collins improves the livability, choices, and affordability of our neighborhoods. Cultural and Recreational Fort Collins provides diverse cultural and recreational Opportunities opportunities that foster physical and mental well-being for community members. Transportation Fort Collins improves the safety and ease of traveling to, from, and throughout the city. High Performing Government Fort Collins is a model for an entrepreneurial, high qualitv city government. In developing the budget, City Council and staff has continued to use the BFO process because it helps the City achieve a number ofgoals: • Create clarity in the budget process for the community • Allocate revenues to highest priorities and the outcomes citizens want and need • Understand the trade-off between services funded and unfunded • Emphasize accountability, efficiency, innovation and partnerships. 215 October 16, 2007 Budget Highlights The 2008-09 Final Budget is a financial and service plan linked to the seven key outcomes and results that matter most to our citizens. Some key highlights of the City Budget include: 1. The total budget for all City funds for 2008 is $569.6 million and$537.3 million for 2009. (The total budget is lower in 2009 because of a major one-time expense in 2008 for the Mason Corridor Project.) 2. The budget includes no tax increase. 3. The tax revenue projections for 2008-09 are based on formulas developed and reviewed with City Council in May 2006 Sales and use taxis projected to increase by 2.03%in 2008 and 2.63% in 2009. 4. Minor inflation oriented fee adjustments are included for several programs. For example, the Recreation Division will make its typical market oriented inflationary adjustments to its user fees to reflect increased costs for hourly employees and supplies. 5. Wastewater rates will increase 12%in 2008 and 11%in 2009. Electric rates are projected to increase 2.3% to 2.7% in response to increases from Platte River Power Authority. 6. The recommended budget includes no reductions in force. Several vacant positions were eliminated as departments worked to develop offers which were lean, efficient and targeted at the services citizens want and need. Budget Assumptions $320.1 $338.1 5.6% $351.5 4.09 $24.3 $23.9 -1.6% $26.2 9.69 $33.0 $105.7 220.3% $58.6 -44.6° $377.4 $467.7 23.9% $436.3 -6.70 0 0 472.5 $569.6 20.6% $537.3 -5.70 As the budget development process began in early 2007, City Council and staff met on several occasions to outline goals and assumptions for developing the recommended budget. Council also reviewed the Key Outcomes during the first Council goal setting retreat in April. 216 October 16, 2007 Some of the key assumptions used in developing the Final Budget include: 1. Limited revenue growth for 2008 and 2009 The local economy has improved throughout 2007, and staff continues to plan for a limited amount of sales tax revenue growth through 2008 and 2009. 2. Use of reserves With new retail development under construction, staff expects that sales tax revenues will improve significantly in 2010. To bridge the gap between our current sales tax level and an expected improvement in 2010, the recommended budget used limited available reserves to eliminate the need to reduce services in the short-term. Approximately$3 million in General Fund reserves was used to balance the 2008-09 Recommended Budget. In the 2010-11 Budget, the City expects that sales tax revenues will improve as new retailers are open and generating new sales tax revenue. Staffdiscussed the use ofreserves with the City Council at its April 2007 retreat and received Council's consent to develop a recommended budget based on this assumption. At its October 9 Work Session, Council gave staffdirection to include an additional amount of resources from General Fund reserves in the appropriation ordinance being considered on First Reading. By using an additional$400,000 in Reserves, the balance in the General Fund Reserve accounts would remain above the recommended level of 60 days Reserve (16.67% of General Fund expenditures. Council further agreed to formally review a General Fund reserve policy at an upcoming work session. 3. Vendor Fee Policy Change The Appropriation Ordinance is based on the assumption that the City will modify its Vendor Fee, thus yielding additional sales tax revenue that can be applied to General Fund purposes. The Vendor Fee is paid to vendors who collect sales and use taxes on behalf of the City. Currently, approximately$700,000 is kept each year by businesses as a vendorfee. Staffproposed that the Vendor Fee could be reduced from 3%to I%,yielding approximately $390,000 of additional revenue available to the City General Fund. The proposed vendor fee would allow vendors to keep 1% ($45) of the first $4,500 in tax collected. Vendors would keep approximately$310,000 annually, which would result in the City realizing a greater share of the actual sales and use tax collected. This does not change the sales tax rate that residents pay, but rather recoups a greater amount of it from the vendors who collect the taxes on the City's behalf. Council directed staff to include this revenue increase in the Final Budget Appropriations Ordinance. To implement this change in the Vendor Fee for Collection of Sales Tax, an Ordinance will be presented for First Reading on November 6. Second Reading will be 217 October 16, 2007 scheduled for November 20 to coincide with the Second Reading and final adoption of the 2008-09 Budget. 4. New facilities must be operated and maintained In 2007, three new facilities will open: the new Police Services building, the new Northside Aztlan Community Center, and Spring Canyon Community Park. While the capital fundsfor these projects were provided through debt financing and voter approved capital programs, the resources to operate and maintain them must be provided through existing General Fund sources. 5. Public Safety needs and environmental issues are funding priorities As initial revenue allocations between the various Budget Outcomes were made, new resources were allocated to these priorities to enhance these services based on feedback provided to staff at the City Council retreat. 6. Employee salary adjustments are planned for in 2008 and 2009 A basic assumption was made that employee salary adjustments would be funded. As a basic cost of doing business, it is essential to ensure that these cost increases are funded before making any decisions about additional services or enhancements. 7. Economic health programs are vital to future revenues Investing in the local economy continues to be a priorityfor long-term financial stability, so economic health programs are a high priority. As staffdeveloped the recommended budget, one of the messages sent to both our employees and residents is that 2008-09 are not expected to be "rebuilding years. " The City saw significant budget cuts in 2006-07, including a large number of layoffs due to slow revenue growth. For 2008-09, the budget is aimed at fine tuning our service level and addressing a limited number of emerging issues and high priority services with neither significant cuts nor enhancements expected. A limited number of enhancements which address the goals outlined above were included in approved offers. Though many appealing service enhancement offers were submitted by departments, Council found that they could fund only a limited number, given limited revenue growth. Adjustment to Recommended Budget During September and October, 2007, City Council and staffinet in work sessions to review the City Manager's Recommended Budget in detail. At its October 9 Work Session, Council gave staff general direction to include a number of additional offers in the appropriations ordinance to be 218 October 16, 2007 considered on First Reading on October 16. (See Offer Descriptions,Attachment 1) These included the following items: �G Ongoing 2008 2009 167.1 HPG Sustainable City Government $ 67,151 $ 69,048 TBD Envir. Air Quality Monitoring $ 20,000 211.2Neigh Neighborhood Services—Grant Enhancement $ 5,000 $ 5,000 211.3 Neigh Neighborhood Services-Code Enforcement $ 17,500 $ 17,500 213.1 HPG Development Review Center-Innovative Tech $ 12,600 Ongoing Total $ 89,651 $ 124,148 One time 30.4HPG Network Services-Equipment (Voice over JP)** $ 39,974 $ 37,342 213.1 HPG Development Review Center-Innovative Tech $ 121,600 203.3 Neigh Enhancement of Human Services Grant $ 100,000 $ 100,000 Program TBD Envir Air Quality Monitoring $ 30,000 126.2 Transp. Transfort Strategic Operating Plan Update $ 100,000 TBD Envir. Hazardous Waste Study $ 50,000 TBD Econ NCEDC Contribution $ 30,000 $ 30,000 203.2 Neigh Partial Restoration of Affordable Housing $ 200,000 $ 200,000 Fund One time total $ 671,574 $ 367,342 "Note: Offer 30.4 partially funded through Telecommunications Fund In order to fund these desired services, additional resources beyond those included in the 2008-09 City Manager's Recommended Budget will be required to balance the Appropriation Ordinance. Council provided staff with direction to bring forward a proposal that includes the use of an additional$400,000 in General Fund Reserves and a change to the Sales and Use Tax Vendor Fee which would result in an additional $390,000 in sales tax revenue. In order to balance the appropriation to these desired purchases, the use of General Fund Reserves was increased slightly 219 October 16, 2007 beyond the amount directed by Council to total $412,715. The Partial Restoration of Affordable Housing Fund was also adjusted to be $200,000 in each year for a total of$400,000 in funds restored. In total, $1,252,715 in additional offers are included in the Final Budget. Of these offers, $1,038,916fund one-time expenditures and$124,148 (2009 costs)fund on-going programs. Conclusion The 2008-2009 Final Budget is a sound financial plan to deliver the services we believe our citizens value most. The budgeting process has enabled us to focus and apply the resources available to key community outcomes. Citizens will receive excellent value for their tax dollars. Any final amendments agreed to by Council will be included in the second(and final)reading of the budget ordinances on November 20, 2007. By Charter, the budget must be adopted and appropriations for the 2008 fiscal year must be approved by November 30. " City Manager Atteberry stated this Ordinance was the first formal vote on the 2008-2009 budget. The budget is based on the seven Key Outcomes: Economic Health, Environmental Health, Safe Community,Neighborhood Livability, Cultural and Recreational Opportunities, Transportation and High Performing Government. There has been much Council review and citizen input into the process of developing the budget. The total resources in 2008 are$570 million, and includes one- time and ongoing monies from all City funds,not just the General Fund. In 2009,the total resources are $537 million. The City is committed to "World-Class" services, but there is concern the City will not be able to keep up with the level of services provided in previous years. Sales and use tax income increase is projected to be 2% for 2008 and 2.6% for 2009. The budget does not contain any proposals for property tax or sales tax increases. The electric rates are proposed to be raised for residents by 2.3% in 2008 and 2.6% increase in 2009. The rate changes are pass-through rate increases from PR-PA. The wastewater rates will increase by 12% in 2008 and I I% in 2009, a necessary increase to fund significant capital improvements to rebuild the Mulberry Wastewater Treatment Plant. The budget does contain planned uses of reserve funds to help address short-term funding needs with anticipated revenue increases in 2010. The proposed budget would change the vendor fee allocation,which will generate about$390,000 of ongoing funds per year,beginning in 2008. There is also approximately$400,000 of one-time reserve funds to be used to address some shortfalls to the budget. After several work sessions, Council has produced a short list of possible additions to the budget that were not previously funded. These items total approximately $1.2 million of additional offers. Council has also requested one-time funding for nighttime Dial-A-Ride. That funding would provide service while the Transfort Strategic Plan is updated,if Council chooses to fund the Update. He recommended using one-time dollars in the amount of$65,000 to fund nighttime Dial-A-Ride (DAR). Mayor Hutchinson asked if adjustments are already made to the proposed budget or would they be formally added at the second reading of the ordinance. City Attorney Roy stated as long as the City 220 October 16, 2007 Manager understands which changes are needed,the direction does not need to be through a formal motion. The second reading of the ordinance is when the budget is adopted. City Manager Atteberry clarified that the$65,000 for nighttime Dial-A-Ride service is not included in the current ordinance. Council has three choices: (1) do nothing; (2) remove an offer from the funded list and replace it with funding for DAR; or(3) look at alternative sources of revenue such as using one-time reserves. Julie Brewen, 1715 West Mountain, Fort Collins Housing Authority Executive Director, urged Council to fund the partial restoration of the Affordable Housing offer. Affordable housing relies on first-in local contribution in order to leverage other sources of funding. Funding of affordable housing is complex,but must begin locally. Stable housing is the first step in allowing a person to become a contributing member of the community. She also requested funding for the Human Services Enhancement offer. Chadrick Martinez, 1303 Swallow,Executive Director of CARE Housing,requested restoration of affordable housing funds. CARE Housing has used City funds as leverage to receive$31.74 from various grants for every dollar contributed by the City. For 2008, a sizable development is planned for 156 units and each City dollar used for that development will generate$124 in leveraged funds. The City funds have helped CARE Housing to serve a larger segment of the community and keep its rents to $495 per unit, on average. Susan Williams, 400 Impala Circle, urged Council to fully fund paratransit services, especially nighttime Dial-A-Ride service. Antoinette Lueck, 2400 North Taft Hill Road, requested Council to fund nighttime Dial-A-Ride service. Wendie Robinson,3539 Sunflower Way,Neighbor-to-Neighbor Executive Director,an organization that helps homeless people find homes, counsels renters and home owners in unaffordable housing situations, provides 159 affordable apartments and educates first-time home buyers, thanked the Council, City Manager and staff for including$200,000 for the affordable housing program and for reinstating$100,000 in the human services program. The funds are critical for citizens who are low- income and are struggling to find safe, decent housing. Jenny Merrill, Fort Collins citizen, urged Council to fully fund Dial-A-Ride services, especially nighttime service. Denise Rogers, 1503 Windcreek Court,Affordable Housing Board Chairperson,reminded Council that affordable housing was a critical component of the economic health of the City and asked Council to support the partial restoration of funding for the Affordable Housing fund. Whilehousing costs have risen over the past seven years, the City's investment in affordable housing has plummeted, yet the impact fees charged by the City have increased $1000/year over the past ten years. Affordable housing developments cannot afford the increased fees. A partial restoration of 221 October 16, 2007 funding for the affordable housing funds allows the City to offset some of the impact of its own policies on affordable housing projects. Bruce Hall, Fort Collins citizen, requested increased funding for affordable housing, to improve Dial-A-Ride and to strengthen neighborhood services. Improving services in those areas would improve the quality of life in the city for low-income and handicapped citizens. Valerie Baker-Easley,424 Pine Street,Director of the Homelessness Prevention Initiative,thanked Council for the funding received from the Human Services program in 2006 as it provided rental assistance for 100 families which saved $500,000 in potential homeless costs. She requested additional human services funding to prevent homelessness. Bruce Lockhart,2500 East Harmony Road,stated he did not want more funding provided for a trash districting study, the Mason Corridor, or for the downtown area. Jackie Ballard,3757 Celtic Lane,requested more funding for the Homelessness Prevention Initiative as she had been a recipient of the Initiative and knew how beneficial it was. Yvonne Longacre, 1550 Blue Spruce, was concerned that not enough funding was provided for services for the disabled. She urged Council to fund nighttime Dial-A-Ride service as well as other programs that serve the disabled community. Cheryl Distaso, 135 South Sunset, urged Council to fund nighttime Dial-A-Ride service and to consider funding 24-hour Transfort service at a future date. She did not think partial funding or a voucher system was a reasonable solution. Mary Smith, 1618 Sagewood Drive,thanked the Council for including funding for a trash districting study. The current trash collection system is inefficient and is destructive to city streets and the air quality. Shane Miller, 4325 Mill Creek, supported funding for a hazardous waste study and air quality monitoring and funding for Dial-A-Ride services. Nancy York, 130 South Whitcomb, supported funding the Transfort Strategic Plan Update as the current system is inefficient and needs to be evaluated and improved. She urged Council to fund Dial-a-Ride services,the air quality monitoring study,the Pavement Management Program and more affordable housing. Vivian Armendariz, 820 Merganser Drive, asked that Dial-A-Ride nighttime service be funded. Richard Withey, 842 Wagonwheel Drive,urged Council to continue funding nighttime service for Dial-A-Ride. 222 October 16, 2007 Mayor Hutchinson stated the City Manager was required to present Council with a balanced budget in September. Each Outcome area had a prioritized list and when funds were depleted, a line was drawn and all items beneath the line were unfunded. In work sessions, Council has identified items that were under the line that it would consider restoring funding. Many items in the process fell "below the line" and were not funded. Council is considering only a few of those items. Councilmember Roy clarified the issue of holiday lighting. The budget offer of$75,000 for holiday lights in the downtown area was an offer to improve the quality and quantity of downtown lighting and in 2007, an upgrade in lighting was being investigated to change from incandescent lights to LED lights. A one-time investment will be funded by the DDA to purchase energy-saving LED lights. Funding to install and remove the lights and to cover other costs will be shared by the City, the DDA, and the DBA. The lights will not be cut down,but taken down and reused. clarified that the current Ordinance contained the items Ann Turn uist Policy and Project Manager, q � Y J Council discussed at the work session and consequently,those items did not need to be added to the Ordinance. Any items beyond those discussed at the work session would need to be added. Councilmember Ohlson made a motion, seconded by Councilmember Manvel,to adopt Ordinance No. 118, 2007 on First Reading. Councilmember Manvel asked if staff had included funding sources from reserves and from the vendor fees for the additional expenditures in the budget. City Manager Atteberry answered in the affirmative and he noted Council would need to adopt the vendor fee change which would be brought to Council on November 6. Tumquist stated there were additional offers that used ongoing funds and additional offers that used one-time funds. Together the offers total$1.2 million over two years. Mayor Hutchinson asked if the $1.2 million was within the available resources. City Manager Atteber y stated resources were available,with the exception of$65,000 for nighttime Dial-A-Ride. To fund the DAR service, Council could either choose to not fund something else or look at additional revenue such as reserves. This fundingis one-time funding and could come from g reserves. Councilmember Brown made a friendly amendment to amend the ordinance to use reserves as one- time funding of$65,000 for DAR nighttime service for 2008 while the Transfort Strategic Plan is updated. The friendly amendment was accepted by Councilmembers Ohlson and Manvel. Mayor Hutchinson stated the list of additions to the budget that were suggested by three or more Councilmembers and discussed at work sessions were items that fell below the budget line and were now under consideration to be funded. He called for discussion on an exception basis,of any items that Councilmembers may not support. 223 October 16, 2007 City Attorney Roy clarified that Council had before it the motion to adopt the budget, as proposed, including DAR funding coming from one-time reserves. The list of additional, potential expenditures has available funding and Council needs to decide whether any item should be removed from the list. No suggested changes to the list of additions to the budget were made. City Manager Atteberry clarified the friendly amendment provided funding for DAR service from one-time reserve funds in 2008, not in 2009. Mayor Hutchinson stated the funding for DAR does not negate what was previously decided for nighttime DAR service during the 2007 budget discussions. It does allow funding for the service while the Transfort Strategic Plan is updated which will allow more time to search for public/private support for DAR service. This was one-time funding, not a permanent continuation of nighttime DAR service. Councilmember Ohlson stated the budget was far from perfect but included much compromise to reach this point. He noted human services was enhanced by$100,000 and affordable housing was enhanced by$200,000. He thanked the public for its input into the process and noted the input made a difference. Councilmember Poppaw thanked the citizens for their input and stated the budget reflected what the citizens wanted. Mayor Hutchinson stated Budgeting for Outcomes has had a significant impact on the budgeting process and the BFO process has made the budget transparent. It is focused on the needs of Fort Collins citizens. Staff and Council have worked closely together and created a budget that is lean and efficient. There was still opportunity for citizen input until November 20,when second reading of the ordinance would occur. 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. Councilmember Ohlson left the meeting at this point.) Items relating to Utility Rates and Charges for 2008, Adopted on First Reading. The following is the staff memorandum on the item. 224 October 16, 2007 "FINANCIAL IMPACT The rate Ordinances are projected to increase the annual operating revenues of the Wastewater Fund by 12% and the Light and Power Fund by approximately 2.3%. No increases are proposed for water and stormwater monthly rates. The combined utility fees for atypical single family residence will increase $3.34 per month. Proposed water, wastewater and stormwater plant investment fees (PIFs) are updated to reflect a new customer's impact on the system and maintain existing customers' equity in the system. 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. If the proposed fees are adopted,water, wastewater and stormwater plant investment fees, and electric development fees and charges will increase. The combined utility development fees for atypical single family residence (exclusive of raw water requirements which are not changing)will increase from $9,213 to $10,639 or 15.5%. The proposed fees will be effective January 1, 2008. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 119, 2007,Amending Chapter 26 ofthe City Code to Revise Water Plant Investment Fees and Raw Water Requirements. B. First Reading of Ordinance No. 120, 2007Amending Chapter 26 of the City Code Relating to Wastewater Rates and Charges. C. First Reading of Ordinance No. 121, 2007,Amending Chapter 26 ofthe City Code to Revise Sewer Plant Investment Fees. D. First Reading of Ordinance No. 122, 2007 Amending Chapter 26 of the City Code Relating to Electric Rates and Charges. E. First Reading of Ordinance No. 123, 2007,Amending Chapter 26 ofthe City Code to Revise Electric Development Fees and Charges. F First Reading of Ordinance No. 124, 2007,Amending Chapter 26 ofthe City Code to Revise Stormwater Plant Investment Fees. G. First Reading of Ordinance No. 125, 2007,Amending Chapter 26 ofthe City Code Relating to Utility Connection Fees and Miscellaneous Charges. Ordinance No. 120, 2007 and Ordinance No. 122, 2007 establish monthly wastewater and electric rates for 2008 as follows: 225 October 16, 2007 %Increase Wastewater 12 Electric 2.0-2.6 The electric rate Ordinance also includes a housekeeping change to the power adjustment clause. Ordinance No. 125, 2007, updates utility connection fees and miscellaneous charges for returned items and turn-off notices to recover the cost of these services. Ordinances Nos. 119, 121, 123, and 124, 2007, adopt revised water, sewer and stormwater plant investment fees and electric development fees. The fees are one-time charges paid by developers or r r the cost o the utility infrastructure needed to serve new development. Per Council builde s o h p f f t1' .f direction, plant investment fees are reviewed on an annual basis and revised during the biennial budget cycle. Plant investmentfees(PIFs)for water, wastewater and stormwater were updated with the 2006-2007 budget. Electric development fees and charges are updated annually. BACKGROUND PLANT INVESTMENT FEES • WATER The water plant investment fees are developed to recover the current value ofpast investment and the current value of future growth-related investment through 2040. This method includes calculating net water system equity, capacity units, and determining the net system equity per unit. Water system assets are valued at replacement costs adjusted by the construction cost index as published by Engineering News Record. Net system equity is determined by subtracting outstanding debt principal from the total replacement costs plus estimated future growth related to capital projects. That result is then divided by the future total plant capacity to determine unit cost. The unit cost is applied to an estimated representative annual usage for each customer class to determine the proposed water PIF. The following schedule details PIFs for the various customer classes. WATER PLANT INVESTMENT FEES BY CUSTOMER CLASS 2006 PIFs 2008-2009 Proposed Peak Day Current Peak Day Proposed Customer Class/Meter Size Usage d Char re Usage d Char re Change nit Fee($per gallon) $3.69 $4.03 9.2° Residential: Single Family Inside Use 191 $ 71 181 $ 73 39 Outside Use-$/S .Ft. 86 $ 0.37 77 $ 0.3 -3° 226 i October 16, 2007 Multi-Family (per unit) Inside Use 13 $ 496 12 $ 49 0° Outside Use-$/S . Ft. 26 $ 0.28 23 $ 0.2 4° Von-Residential(meter size) /. inch 1,806 $ 6,64 1,73 $ 6,97 5° 1 inch 5236 $ 19306 5,11( $ 20,59 7 1 /:inc 10 47 $ 38 63 10,30 $ 41,51 7° 2 inch 16,711 $ 61,661 16 21 1 65 33 6° 3 inc 33 24 $122 66 35 37 $142 54 160 > than 3 inches Based on specific customer re uirements *differences due to rounding The impact to a typical single family residence (8,600 sq.ft lot) is a decrease of$66 from $3,892 to $1,826. The decrease is due to a reduction in average usage by the residential class. Other In addition to updating the wastewater PIF charges, the Ordinance revises Section 26-149 of the City Code which describes Raw Water requirements for non-residential service. The revision clarifies that the customer is required to provide Raw Water equal to 1.92 times the customer's estimated peak annual use. The revisions apply (1) to a customer with two or more meters and(2) to a customer who increases their annual allotment. An additional change is to correct a spelling error wherein Raw Water Requirements are currently referenced as "RVR"and that is corrected to be "RWR". • WASTEWATER The wastewater plant investment fees are developed using a method which assesses new customers based on an allocation of the costs of the existing facilities and the projected growth-related improvements. The utilityforesees a significant amount ofgrowth-related treatmentplantprojects on the planning horizon. The 2005 study of the wastewater plant investment fees recommended a 174% increase. Due to the magnitude of the proposed increase, Council directed a three-year phase-in of the fees which was implemented beginning January, 2006 The final phase of the 3- phase implementation is included in the proposed 2008 wastewater PIFs. The proposed fees are shown in the following tables: WASTEWATER PLANT INVESTMENT FEES Customer Class/Meter Size Existin 2007 Pro osed 2008 Volume Current Volume Proposed G d Char re G d Char re Chan e in le Family 340 $ 2 223 321 $ 3,194 43.7% uld-Family236 $ 1,583 208 $ 2,069 30.7% 227 October 16, 2007 Von-Residential(meter size) /.inc 709 $ 4,749 624 $ 6.206 30.7% 1 incl 1,814 $ 12 151 1.644 $ 16,361 34.6% 1 '/ inc 3,279 $21 965 2,854 $ 28,396 29.3% 2 inc 5,802 $38 865 5 122 $ 50,963 31.1% 3 inci 12,105 $81 086 12,209 $121 484 49.8% 4 inch and above assessed on individual basis Wastewater plant investmentfees for a typical single-family residence in 2008 would increase from $2,223 to $3,194, or 43.7%. • STORMWATER Plant investment fees for stormwater are adopted on a citywide basis. All new development must provide on-site detention as specified in the master plan. Regional elements are sized to handle existingfows and to work in coordination with on-site detention in new developments. Stormwater PIFs pay for a developer's proportionate share of the system infrastructure as it exists at the time they develop. The unit of measure used to allocate the value of the existing system between new customers and existing customers is acres of developed land, adjusted with a runoff coejf cient(a measure of how water runs off various surfaces). Proposed development fees are calculated by dividing the value of the current system, less outstanding debt, by the total acres of land (existing developed and developable)in the service area. This number is then adjusted by the average runofffor the system. The result is the unit value of the existing system per acre of developed land. 2008 % 2006 Proposed Change Fees Fees 3 070 $4,420 43.97% The significant increase in fees is due to the large investments in stormwater infrastructure over the last few years. • ELECTRIC 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 12%for residential and 20%for commercial development. The increases are due primarily to the significant increases experienced in the cost of transformers, metals and other construction materials. The following tables compare current fees with proposed fees for residential and commercial development: 228 October 16, 2007 ELECTRICDEVELOPMENT FEES& CHARGES RESIDENTIAL Category Charge 2007 2008 % diff. Persquarefoo $0.04215 $0.04731 12° Per lineal front foo $7.90 $9.53 21° 150A Single t7 Fan $1078 $1177 9° Electric Capacity 200A Single Fee ono Fan $1806 $1991 10° 150AMulti Fa $719 $785 9° 200A Multi Fa $1267 $1399 10° 1/ $585 $625 7° 4/ $756 $787 4° Building � ' °a 350 W $732 $873 199 Site Charges 1/0 mobil $458 $490 7° 410 mobil $593 $623 5° 2008 2006 Proposed Change Fees Fees 3070 $4,420 1 43.97% The significant increase in fees is due to the large investments in stormwater infrastructure over the last few years. • ELECTRIC 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 12%for residential and 20%for commercial development. The increases are due primarily to the significant increases experienced in the cost of transformers, metals and other construction materials. The following tables compare current fees with proposed fees for residential and commercial development: 229 October 16, 2007 ELECTRIC DEVELOPMENT FEES& CHARGES RESIDENTIAL Category Charge 2007 2008 %diff. Persquarefoo $0.04215 $0.04731 12° Per lineal front foo $7.90 $9.53 21° 150A Single C Fan $1078 $1177 99 Electric m Capacity 200A Single ° Fee ado Fan $1806 $1991 10 c 150A Multi Fa $719 $785 9° 200A Multi Fa $1267 $1399 10° 1/ $585 $625 7° 4/ $756 $787 4° Building 350 kC $732 $873 19° Site Charges 1/0 mobil $458 $490 7° 410 mobil $593 $623 5° ELECTRIC DEVELOPMENT FEES& CHARGES COMMERCIAL Category Charge 2007 2008 % diff. Persquarefoo $0.04215 $0.04731 12° Per lineal front foo $29.83 $35.52 19° 208V1-Ph $946 $1,146 219 Electric 240VI-P1 $1091 $1323 21° Capacity Service Fee Entrance(per 100 208V3-Pi $1 638 $1 985 21° amps) 240V3-Pi $1 890 $2 291 21° 480V3-PI $3 779 $4 581 21° Primary Circuit(1-phase $7.20 $8.78 22° Primary Circuit(3 phase $13.10 $17.72 35° Building Site Transformer Installation-1 Charges 9hase $1 119 $1 148 3° ransformer Installation-3 has ee $2 097 $2 132 29 The impact to a typical single family residence (8,600 sq.ft. lot, 150 amp service) is an increase of$298 from $2,578 to $2,876, or 12%. 230 October 16, 2007 SUMMARY OF PIF CHANGES AND COMPARISONS The following table shows the overall impact of the proposed Plant Investment Fees and Electric Development Charges on a typical single family residence. Impact on Single Famll Current Proposed Chan e Water* $ 3,892 $ 3,826 -2% $ 66 Raw Water** $ 5,203 $ 5,203 0% $ 0 Wastewater $ 2,223 $ 3,194 44% $ 971 Stormwater* $ 520 $ 743 43% $ 223 Electric* $ 2,578 $ 2,876 12% $ 298 Total $14,416 $15,842 10% $1,426 *Typical, based on lot size **No increase for Raw Water Comparison to other utilities is difficult due to differences in customer use patterns, the unique capital needs of each utility, and different policy direction from governing bodies. The question of how Fort Collins compares to other area utilities often arises. The graph below compares water, wastewater, and stormwater PIFs and raw water requirements for a single family residence for some neighboring communities. Wastewater, Stormwater and Water Plant Investment Fees (Including Cash in Lieu of Raw Water Fees) 30000 25000 20000 15000 10000 5000 0 Fort Collins Fort Collins- Fort Proposed Boulder Greeley Longmont Loveland Windsor 2008 Raw Water Fees 5203.09421 5203.09421 0 7505.7 7957.33 6487.8567 15000 ®Water PIF 3892 3826 9710 9500 7856 5340 6725 ■Storm Drainage PIF 516.741047 743.972452 2002 227 650 489 632 ❑Wastewater PIF 2223 3194 1855 1 3900 3000 2360 3700 ❑Wastewater PIF ■Storm Drainage PIF ®Water PIF p Raw Water Fees 231 October 16, 2007 MONTHLY RATES Wastewater The Ordinance increases the City's wastewater rates by 12%. 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 $19.70 to $22.07 or $2.37 per month in 2008. This is based on a system average of 5,200 gallons per month winter quarter average (WQA) water use. 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 plant f 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 filters effectiveness has not recovered to its past efficiency. In late 2006, a study byMWH Consulting Engineers was commissioned to determine the best solution for the long-term use of the Mulberry plant. Upgrading the plant's secondary treatment processes by removing the trickling f lter 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 11% 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. As shown in the graph below, the City's wastewater rates remain comparable to those of other local utilities: Wastewater Rate Comparisons - WQA 5,200 gallons Data July 25, 2007 A $30 $24.65 $25 $22.07 $20 $17.67 $18.38 $18.94 $19.70 $19.70 $20.00 E N. t o $75 o $10.14 w V $10 m $5 d a' $- Denver Longmont Greeley aaulEer FL Coillns Loveland Windsor FLG- C0.80ra 3007 Propelled ]008 232 October 16, 2007 Electric The Utilities are proposing an electric rate increase averaging 2.3% in 2008 and 2.7% 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 September 27, 2007, Platte River's Board adopted a 3%wholesale rate increase for 2008 and projects a rate increase of about 3.5%in 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 200 7 Integrated Resource Plan) • Capital expenditure increases(newprojects&increased material costsfor existingprojects) • Reduction in surplus sales revenues The proposed 2.3%increase in 2008 will vary slightly by rate class. Residential rates will increase 2.0%-2.2%, commercial rates will increase 2.2%-2.3%, and industrial rates will increase approximately 2.6%. For a typical residential customer using 700 kilowatt-hours per month, the monthly bill will increase 97 cents per month from $48.43 to$49.40. The following chart compares average monthly residential electric rates with other front range utilities: Electric Rate Comparison - 700 kWh per Month $80 m $65.88 d ^ $70 $56.70 $56.95 $60 $54.43 $50 $42.82 $47.41 $48.43 $49.40 ` = $40 E c $30 d $20 2gyp L) $10 Q $ Layrvt ladatl R.Cdll.Z%1'! R.CRr W X -Waa %ad_8 Q.$rs R.V.R 2(p8 Bl1/2(U1 233 October 16, 2007 Other In addition, the electric rate Ordinance includes a housekeeping change to the Power Factor Adjustment clause ofthe commercial and industrial rate classes to reflect the changes in technology. Prior to the capabilities of modern metering equipment, special recording equipment was periodically installed on services to measure power factor. Meters now collect the data necessary to make these calculations each month so periodic testing is no longer required. Monthly Rate Summary The following table summarizes the impact of the proposed rate increases on a typical single family residential customer's monthly utility bill. In total, a "typical"customer's bill will increase$3.34 per month. Typical Residential Customer-Monthl Utili Bill Current Proposed % 2007 2008 Incre$ase Increase Electric 700 kWh per month $ 48.43 $ 49.40 $0.97 2% Wastewater 5,200 gallons/month winter quarter use $ 19.70 $ 22.07 $2.37 12% Stormwater 8,600 s . t. lot, light runoff $ 14.26 $ 14.26 $0.00 0% Water January 5,000 allons $ 22.56 $ 22.56 $0.00 0% July 21,000 gallon $ 60.90 $ 60.90 $0.00 0% Total JanuaryMonthly UtilityBill $704.95 $708.29 $3.34 3% Total June Monthly Utili Bill 743.29 746.63 3.34 2% The following charts compare water, wastewater,stormwater and electric utility costs for eight front range cities. They include the recommended 2008 increases for wastewater and electric for Fort Collins. Projected rate adjustments for the other cities are unknown at this time. Residential Utilities 2007 Rate Gomparlson January Water Use-5,000 Gallons f140 $120 $100 $80 sa0 $40 $20 eo wat.o.rmrwwfm.1... s{fesx+aaws.m1.wps.. c(ffersu.aoP.ou�7l a(Hrmeoa..1p. eemn✓ is Rwp ionAmon+ s+4.aem ++.v 4ao +aaa.00 s+.47 $ iowmntl W{PslWn3 tle.0me9q r Na.af pna7 Nvo f20.00 f12A7 62106 1 62"6 1 N6.70 $14.06 1 $13.76 1 i20.N Ol ll.aVlc fN.4a iN.Y6 fN.4a !J] .A. 1 5N.43 $42.12 1 N7.41 1 f66.88 234 October 16, 2007 Residential Utilities 2007 Rate Comparison July Water Use 21,000 Gallons $180 $160 $140 $120 $100 $80 $60 $40 $20 $ Boulder Co.Spra Denver FLCollins Ft.Co llins Greeley Windsor (Xcel) (8/2007) (Xcel) '07 'OB (Xcel) Longmont Loveland (PVREA) ®Stormwater 6.75 6 ].396 U.260V6 U260V6 4.3 7.13 H.39 3.892 p Wastewater 18.94 24.65073119 H.N H.69904 22.07 18.384 17.67 H102 20 ■Water 521234 71,11*2371 57.H 6 .90442 60.90442 54.38 60.11 39.35 60.5859]556 ®Electric 58.7015 56.9 ,6"7 '6.7015 68.43 49.4 Sfi.708 62.822 67.407 65.875 CUSTOMER SERVICE FEES AND CHARGES The Utilities is proposing increasing the turn-off notice fee from$7.00 to$10,00 and the return item fee(returned checks, electronic transfers, credit card payments)from$15 to$25. The increases are necessary to offset the associated costs and align with current business practices. WATER BOARD AND ELECTRIC BOARD RECOMMENDATIONS The Water Board reviewed the 2008-2009 water utilities' budgets, water, sewer and stormwater plant investment fee changes, and monthly wastewater rate increases at the August 23, 2007 Board meeting. The Board voted 8 to 1 approving the proposed budget and fee changes with an amended motion encouraging City Council to increase the appropriation for water conservation and demand management. The Electric Board reviewed the 2008-2009 Light and Power budget and the proposed increases to the electric rates and development fees and charges at its meeting on August 15, 2007. The Board unanimously approved a motion supporting the proposed budget and fee changes. " Councilmember Manvel thanked staff for providing the comparison of wastewater, stormwater and water plant investments fees of Fort Collins to other communities. He asked if Boulder had a small stormwater monthly fee but a large plant investment fee because it has completed most of its stormwater improvements and so it has already incurred a large investment that must be funded so the plant investment fee is paid by people moving into the community,but Boulder is not investing in a new system. Fort Collins is investing in a new system and that causes the City's stormwater fees to be high since major investments are still being made into the stormwater system. He also noted that Fort Collins residential utility rates are average for rates along the Front Range. 235 October 16, 2007 Jim Hibbard, Water Engineering and Field Services Manager, stated Boulder has significant problems along Boulder Creek but he did not know whythere was such a large difference between Boulder's plant investment fees and rates. Councilmember Roy made a motion, seconded by Councilmember Troxell,to adopt Ordinance No. 119, 2007 on First Reading. Yeas: Brown, Hutchinson, Manvel, Poppaw, Roy and Troxell. Nays: None. THE MOTION CARRIED. Councilmember Roy made a motion,seconded by Councilmember Troxell,to adopt Ordinance No. 120, 2007 on First Reading. Yeas: Brown, Hutchinson,Manvel,Poppaw, Roy and Troxell. Nays: None. THE MOTION CARRIED. Councilmember Troxell made a motion, seconded by Councilmember Poppaw,to adopt Ordinance No. 121, 2007 on First Reading. Yeas: Brown, Hutchinson, Manvel, Poppaw, Roy and Troxell. Nays: None. THE MOTION CARRIED. Councilmember Manvel made a motion,seconded by Councilmember Poppaw,to adopt Ordinance No. 122, 2007 on First Reading. Yeas: Brown, Hutchinson, Manvel, Poppaw, Roy and Troxell. Nays: None. THE MOTION CARRIED. Councilmember Troxell made a motion,seconded by Councilmember Roy,to adopt Ordinance No. 123, 2007 on First Reading. Yeas: Brown, Hutchinson, Manvel, Poppaw, Roy and Troxell. Nays: None. THE MOTION CARRIED. Councilmember Roy made a motion,seconded by Councilmember Manvel,to adopt Ordinance No. 124, 2007 on First Reading. Yeas: Brown, Hutchinson, Manvel, Poppaw, Roy and Troxell. Nays: None. THE MOTION CARRIED. Councilmember Troxell made a motion,seconded by Councilmember Roy,to adopt Ordinance No. 125, 2007 on First Reading. Yeas: Brown, Hutchinson,Manvel, Poppaw, Roy and Troxell. Nays: None. THE MOTION CARRIED. 236 October 16, 2007 Items Relating to the Prospect Road/I-25 Interchange Rezonings, Adopted as Amended on First Reading. The following is the staff memorandum on this item. "EXECUTIVE SUMMARY A. Resolution 2007-097 Amending the City Plan Structure Plan Map Pertaining to the Southwest Corner of Prospect Road and 1-25. B. Resolution 2007-098 Amending the City Structure Plan Map Pertaining to the Northeast Corner of Prospect Road and I-25. C. Resolution 2007-099 Amending the I-25 Subarea Plan. D. First Reading of Ordinance No. 126, 2007, Amending the Zoning Map of the City of Fort Collins by Changing the Zoning Classifications for That Certain Property Known as the Southwest Corner of East Prospect Road and 1-25 Rezoning. E. First Reading of Ordinance No. 127, 2007, Amending the Zoning Map of the City of Fort Collins by Changing the Zoning Classifications for that Certain Property Known as the Northeast Corner of East Prospect Road and 1-25 Rezoning. This is a request to amend the I-25 Subarea Plan and the City Plan Structure Plan map, and rezone 143 acres located at the southwest corner of East Prospect Road and Interstate 25 and rezone 105 acres located at the northeast corner of East Prospect Road and Interstate 25. The current Structure Plan designations for the 143 acres in the southwest are Commercial Corridor District,for a 25 acre parcel, and Open Lands, Parks and Stream Corridors,for a 118 acre parcel. The current I-25 Subarea Plan designations are Commercial Corridor District and Proposed Open Space, with corresponding zoning district designations of 25 acres of C, Commercial and 118 acres of POL, Public Open Lands. The City proposes a Structure Plan amendment and amendments to the I-25 Subarea Plan to change the area into the Employment District designation with a corresponding rezoning to the E, Employment District. The current Structure Plan designation for 86 of the 105 acres in the northeast is the Industrial District and the current I-25 Subarea Plan designation for the area is also Industrial District. The current Structure Plan designation for 19 of the 105 acres is the Urban Estate District and the current I-25 Subarea Plan designation for the area is also Urban Estate. The applicant proposes a Structure Plan amendment and amendments to the I-25 Subarea Plan to change the area into additional Commercial Corridor and Employment District designations with corresponding rezonings to the C, Commercial District and the E, Employment District. APPLICANT FOR REZONING OF THE SOUTHWEST CORNER: 237 October 16, 2007 City of Fort Collins Department of Natural Resources City Planning and Community Development Department P.O. Box 580 Fort Collins, CO 80522-0580 OWNER OF PROPERTY INCLUDED IN THE SOUTHWEST CORNER REZONING: City of Fort Collins c%Darin A. Atteberry, City Manager 300 LaPorte Avenue, City Hall West Fort Collins, CO 80521 APPLICANT FOR REZONING OF THE NORTHEAST CORNER: Land Acquisition and Management, LLC 7200 South Alton Way Suite B 150 Centennial, CO 80012 OWNER OF PROPERTY INCLUDED IN THE NORTHEAST CORNER REZONING: Same BACKGROUND Staff is recommending changes to the I-25 Subarea Plan and the City Plan, Structure Plan map and the rezoning of 143 acres into the E, Employment District in the southwest and in the northeast, the rezoning of 86 acres into 66 acres of C, Commercial District and 20 acres of E, Employment District, and the rezoning of 19 acres from UE, Urban Estate District to the E,Employment District. The northeast corner rezonings would result in at total of96 acres ofC, Commercial zoned area(66 rezoned acres added to 30 acres of existing C zoning)and 39 acres of E, Employment zoning. The E,Employment zoned areas would provide a buffer between the 96 acres of Commercial zoning and residential areas to the north and east. The review of land uses and zoning around the Prospect Road/I-25 interchange is based on: 1. City Council direction to staffindicating the Council's generalpreferencefor a higher level of"commercial"use for portions of the former Resource Recovery Farm property located in the southwest quadrant of the Prospect Road/I-25 interchange. Staff has concluded that rezoning 25 acres of the property,from C, Commercial and 118 acres from POL, Public Open Lands to E,Employment(for a total of 143 acres ofE,Employment)would encourage new businesses and expansion of local businesses while preserving the area as an attractive community gateway, and would be in the best interests of the City. 238 October 16, 2007 2. Simultaneously, the City received a rezoning request from the owners of property in the northeast quadrant of the Prospect RoadII-25 interchange requesting a change in zoning of 86 acres of I, Industrial and 19 acres of UE, Urban Estate. Staff decided to review the land uses around the Prospect RoadII-25 interchange as a result of the rezoning requests from the City and the privateproperty owners to determine what would be the best land use pattern for the area around the interchange for the City as a whole, independent of the specific rezoning requests. The amendments to the plans are related to the rezoning requests but are independent actions. If the amendments to the plans are approved, the rezoning requests are simply implementation actions to the plan amendments. The fundamental policy issue to be addressed in the rezoning request for the southwest corner is: should City Plan be amended and zonings changed to cover an area currently preserved as open space to an area that will permit the development of employment land uses in the SW quadrant of the Prospect RoadII-25 interchange? The fundamental policy issue to be addressed in the rezoning request for the northeast corner is: should City Plan be amended and zoning changed to allow for the development of a regional/community scale shopping center in the northeast quadrant of the Prospect RoadII-25 interchange? A regional/community shopping center in the northeast quadrant will help contribute tax revenues necessary to fund Prospect RoadlI-25 interchange improvements and related infrastructure. Given the cost to improve infrastructure, development from all four quadrants around the interchange will need to contribute funding to improve the interchange. The rezoning requests need to be viewed independently from the City's Adequate Public Facilities (APF) requirements: All development plans for parcels impacting the Prospect RoadII-25 interchange must include a Transportation Impact Analysis(TIA). The TIA will determine whether traffic generated by the development will result in reduced level ofservice(LOS)at the interchange and the physical improvements that will need to be constructed to mitigate the impacts. In order to begin construction, developments must either build the needed improvements, or have funding appropriated that will cover improvement costs. In summary, the specific plan amendments for the southwest request involves changing 25 acres of commercial and 118 acres of open space designated land to create 143 acres of employment land in the southwest quadrant of the interchange. The specific plan amendments for the northeast quadrant of the interchange involve changing 86 acres of industrial to 66 acres of commercial and 20 acres of employment and changing 19 acres of urban estate to employment. THE SOUTHWEST SITE The properties proposed for rezoning are currently an undeveloped 25 acre parcel of land zoned C, Commercial, and a 118 acreparcel of theformer Resource Recovery Farm zoned POL,Public Open Lands. The adjoining existing zoning and land uses are as follows: 239 October 16, 2007 N.• C, Commercial and E, Employment, mainly undeveloped E: C, Commercial, and County Commercial and FA1, Farming zoning, partially developed retail and office uses, and agricultural uses S: POL, Public Open Lands, and RC, River Corridor, public open space and the Boxelder Sanitation District's wastewater treatment facility W.- POL, Public Open Lands, the Running Deer Natural Area, Colorado Welcome Center and I-25 rest area The property was annexed into the City of Fort Collins as part of the 325 acre Sludge Farm Annexation in June of 1988 and zoned RC, River Corridor District. In 1997, the 25 acre parcel was placed into the C, Commercial District and the 118 acre parcel was placed into the E, Employment District as a result of the City Plan comprehensive rezoning of the entire city. The sizes of the commercial and employment areas were based on an Overall Development Plan(ODP)for the area prepared by the Planning Department for the Utilities Department. The Utilities Department operated a sludge application process on the property until transferring that operation to other sites in northern Larimer County. The Natural Resources Department purchased 144 acres from the Utilities Department to be preserved as open space(the Running Deer Natural Area), and in 2003, purchased an additional 151 acres as open space. In May 2004, the City Council,following thepolicies and implementation actions contained in the I-25 Subarea Plan, rezoned the 151 acre parcel from E, Employment into the POL, Public Open Lands District. The 118 acres requested for rezoning is a portion of the 151 acre tract. THE NORTHEAST SITE The adjoining existing zoning and land uses are as follows: N.• C, Commercial and LMN, Low Density Mixed Use Neighborhood, undeveloped E: County FA-1, Farming, Kitchell Estates, large lot residential subdivision, and UE, Urban Estate, undeveloped 100 acre parcel owned by the Poudre School District S: C, Commercial, and County Commercial,partially developed retail and office uses W.- C, Commercial and E, Employment, mainly undeveloped The property was annexed into the City of Fort Collins as part of the 235 acre Galatia Annexation in 1990 and zoned HB, Highway Business, IP, Planned Industrial, and RLP, Low Density Planned Residential Districts. All of the zoning districts had a Planned Unit Development (PUD) zoning condition attached which required development proposals to be reviewed against the criteria of the Land Development Guidance System (LDGS) which was the City's PUD ordinance at the time. In 1997, the Galatia Annexation were rezoned as part of the City Plan comprehensive community rezoning. The 30 acres ofHB, Highway Business was rezoned C, Commercial; the 86 acres ofIP, Planned Industrial was rezoned I, Industrial; and the 119 acres of RLP, Low Density Planned Residential was rezoned UE, Urban Estate. The HB, IP, and RLP Districts were eliminated from the Land Use Code in 1997. No parcels were rezoned as a result of adoption of the I-25 Subarea Plan in 2003. 240 October 16, 2007 Approximately 100 acres of the 119 acres zoned UE are currently owned by the Poudre School District. The property is undeveloped, but will likely be used for athletic fields and school bus storage. CITY PLAN AND THE I-25 SUBAREA PLAN In 1997, the City adopted City Plan as the City's the new Comprehensive Plan. The Structure Plan map showed Commercial Corridor land use designations in all four quadrants immediately adjacent to the Prospect Road/I-25 interchange; Employment District designations for other areas in the southwest and southeast uadrants•Low Density Mixed-Use Residential designation in northeast, q ty 8n the northwest quadrant; and Rural/Open Lands and Stream Corridors designation for other areas in all four quadrants. The Structure Plan map also identified the need for additional planning in the I-25 corridor and designated the area as the "I-25 Special Study Corridor. " In addition, City Plan's chapter on Principles and Policies contained the following: PRINCIPLELU-4: More specific subareaplanning efforts willfollow the adoption of these City Plan Principles and Policies which tailor City Plan's citywide perspective to individual neighborhoods, districts, corridors, and edges. Policy LU-4.5 Priority Subareas. The following areas have been identified as priority for future subarea planning: • I-25 Corridor Concurrent with the development of the I-25 Subarea Plan, was a multi jurisdictional cooperative planning effort to develop the Northern Colorado Regional Communities I-25 Corridor Plan. The planning boundaries ofthe two efforts overlapped. The regional plan studied the)--25 corridorfrom County Road 52 on the north to an area south of the Town of Berthoud, while the subarea plan studied the area from County Road 52 to County Road 32 (Carpenter Road). The most significant difference between the two plans is that the subarea plan dealt with land uses in more detail than the regional plan. The regional plan was based on existing land use plans of the participating jurisdictions. The regional plan focused on developing a set of design standards, a transportation element,and open lands/naturalareaspolicies. The Northern Colorado Regional Communities)-25 Corridor Plan was adopted by the City in November 2001. In 2003, the City adopted the I-25 Subarea Plan as an element of City Plan. The key points, conclusions, and policies of the I-25 Subarea Plan are summarized as follows: 1. The I-25 Subarea Plan mainly deals with the area located east ofI-25 from around the Prospect Road interchange on the south to County Road 52 on the north, and County Road 5 on the east. 2. No change in the City's GMA boundary was proposed. 3. Two activity centers were identified, one at the Mulberry Street interchange and the other at the Prospect Road interchange. The NE quadrant of the Mulberry interchange was plannedfor thepotential location ofa regional/community shopping 241 October 16, 2007 center. The NE quadrant of the Prospect interchange was designated as a mix use activity center with commercial, industrial, and residential uses. 4. Employment and industrial districts adjacent to I-25 are to be designed in a manner as to maintain a perception of openness through the corridor. 5. Secondary uses (retail and highway-oriented commercial uses) typically permitted in employment/industrial districts will be required to be set back at least 114 mile from I-25 to avoid a commercial strip appearance along I-25. 6. Detached single-family residential development isprohibited within 114mileofI-25. 7. Low density, mixed use neighborhoods are to be concentrated within 112 mile of Mulberry Street. 8. The balance of areas planned for residential development are to be urban estate developments. 9. The City's Resource Recovery Farm is to be preserved as open space. 10. The subarea is planned to eventually be served with multi-modal transportation options. A supplemental street system will facilitate movement within the subarea, thus, diminishing the need to utilize I-25 for short trips. 11. Most undeveloped land within the subarea is expected to annex prior to development. LAND USE CODE The regulations covering rezonings in the City of Fort Collins are contained in Division 2.9 of the Land Use Code. Section 2.9.4 (H) (2) indicates the following: Mandatory Requirements for Quasi-Judicial Rezonings. Any amendment to the Zoning Map involving the zoning or rezoning ofsix hundred forty(640)acres of land or less (a quasi-judicial rezoning) shall be recommended for approval by the Planning and Zoning Board or approved by the City Council only if the proposed amendment is: (a) consistent with the City Comprehensive Plan; and/or (b) warranted by changed conditions within the neighborhood surrounding and including the subject property. Section 2.9.4 (H) (3) of the Land Use Code indicates the following: Additional Considerations for Quasi-Judicial Rezonings. In determining whether to recommend approval of any such proposed amendment, the Planning and Zoning Board and City Council may consider the following additional factors: (a) whether and the extent to which theproposed amendment is compatible with existing and proposed uses surrounding the subject land, and is the appropriate zone district for the land; (b) whether and the extent to which the proposed amendment would result in significantly adverse impacts on the natural environment, including, but not 242 October 16, 2007 limited to, water, air, noise, stormwater management, wildlife, vegetation, wetlands and natural functioning of the environment; (c) whether and the extent to which the proposed amendment would result in a logical and orderly development pattern. SOUTHWEST CORNER APPLICANTS REQUEST AND JUSTIFICATION: In 2003, the Natural Resources Department Natural Areas Program completed purchase of the Resource Recovery Farm (RRF) as a scenic and open lands buffer. At the time of purchase, the eastern portion of the RRF was not described as an area of interest to the Natural Areas Program in the Natural Areas Policy Plan, nor the various community separator plans adopted by the City. Because the eastern portion was not shown in these plans, and because it has low natural resource values, Natural Areas Program staff embarked on a planning process to help guide the property's ultimate management and disposition status. In August 2005, the Natural Resources staffshared a series of options for the RRFproperty with the Council and requested policy direction. The Council indicated its general preference for a higher level of"commercial"usefortheproperty. Based on Council's perspective, the Natural Resources Department staff concluded that rezoning a substantial portion of the property (118 acres)from POL, Public Open Lands to E, Employment would be in the best interests of the City. In addition, staffs perspective is that the 25 acre parcel zoned C, Commercial, immediately adjacent to the interchange and owned by the City should be combined with the 118 acre parcel to create a 143 acre parcel for employment type uses. Employment zoning would allow the property to be used for economic development purposes. At the same time, however, the adopted I-25 Subarea Plan - as well as other constraints on the property, would allow the property to be developed in a manner that preserves an aesthetically pleasing viewshed from I-25 as well as protects adjoining areas with high natural values (namely Boxelder Creek and the Running Deer Natural Area). The rezoning request excludes Boxelder Creek, it will remain zoned POL. Regulations contained in the Land Use Code applicable to the I-25 corridor, and more generally throughout the community, are intended to have employment/industrial districts designed in a manner to maintain openness through the use ofsetback requirements, maximum buildingfrontage allowances, restricting building heights,and proper management off oodplains. Minimum building setback requirements are 205 feet from the centerline of I-25. Maximum building frontage allowance is 50%at the 80 foot minimum setbackfrom the property line, which can be expanded to 60%at an increased setback of 120 feet. Building heights are restricted to 40 feet within 600 feet from the property line adjoining I-25. NORTHEAST CORNER APPLICANTS REQUEST AND JUSTIFICATION The following has been submitted by the applicant as a justification for the rezoning requests: 243 October 16, 2007 • The Prospect /1-25 interchange was constructed in 1966. Since its construction, traffic volumes have increased significantly and the interchange structure has deteriorated. • A recent North 1-25 Environmental Impact Statement(EIS)team analysis of the interchange indicates that portions of the interchange are CURRENTLY experiencing a failing Level of Service (LOS) quality F(failure). • Furthermore, the EIS team projects increases of roughly 4 times the current traffic volume for the interchange in the next 20 years. • North I-25 EIS projections call for a 200 foot widening of interstate right-of-way (ROW) to accommodate an additional lane of traff c in each direction and improvements to the on/off ramps and safety lanes. As a result, any reconstruction of the Prospect interchange must accommodate a wider footprint. The current interchange ROW will not accommodate this widening. • Cost estimates/projections for the interchange and Prospect Road improvements are substantial: a The projection for the interchange itself is $25,000,000.00 (excluding ROW acquisition costs). a Boxelder Creek crossing of Prospect Road west of interchange is $3,000,000. a Prospect Road east of the interchange to County Road 5 is$1,700,000 to$2,300,000 (excluding design, entitlements, utilities, structures, relocation of Timnath inlet canal, and CR5/Prospect intersection). a Prospect Road west of interchange to Summit View is $1,000,000 to 1,300,000 (similar exclusions). a The total, thus, ranges from $30,700,000 to $31,600,000, at a minimum. • Colorado Department of Transportation (CDOT), the Federal Highway Administration (FHwA) and the City have little funds to aid in the construction of this interchange and related street improvements. • A new interchange is needed to meet the Adequate Public Facilities (APF) requirement for the new CSU R&D center in the southwest quadrant as well as for the property owner's anticipated project or other developments on the interchange corners. A new interchange will serve as a "Gateway to CSU", as envisioned by the University. If the City wishes to have this interchange constructed anytime in the near future, it will likely need to be funded by a public/private financing vehicle. • The 1-25 Subarea Plan and the current Overall Development Plan (ODP) on the property were developed prior to the current interchange cost projections and proposed land use changes on the City-owned property becoming available. Clearly such magnitude of interchange constructions costs and such land use changes could not have been anticipated. • Gene Andrist, a financial planner involved with the financing of many interchanges and other major projects throughout the state, has developed a number offunding scenarios for public/private financing of the interchange. Increased levels of retail space at the interchange corners appears to be the key to provide increased revenue sources to the City to pay for interchange and related improvements. • A recent Economic Planning Systems (EPS) study commissioned by the City to evaluate future retail capacity in the vicinity of Fort Collins, determined that over the next few years 244 October 16, 2007 an increase of approximately 1.5 million feet of retail space is anticipated. The City is in a very competitive market with the Towns of Timnath, Windsor and Wellington for this retail space. If the City wishes to capture any of this increased retail space (and its related sales tax) the City needs to move quickly and aggressively. The property owners (the Whites) have been very involved is a series of planning related studies/projects for the interchange, the surrounding area, and along the I-25 corridor. Listed below is a summary of their involvement: BOXELDER CREEK REGIONAL STORMWATER ALLJANCE • Served from the inception of the Boxelder Alliance until present as the representative for a group ofprivate property owners. • Was one of 5 groups (Landowners, City, Wellington, Larimer County, Colorado Water Conservation Board) who EQUALLYfunded the stormwater masterplan. • Served as 1 of 5 voting members on the Technical Advisory Committee (TAC) which provided overall direction to the Alliance's efforts. The TAC.• 0 Prepared the Scope of Work for the engineering consultant, 0 Selected the engineering consultant, 0 Provided ongoing direction to%oordination with the selected consultant a Reviewed/commented on work products, o Held monthly public meetings to discuss progress, o Participated in weekly/biweekly meetings to complete tasks for the Alliance, o Reviewed/commented on final Regional Master Plan, o Participated in Alliance presentations to Alliance members and town councils. • Served as 1 of 5 voting members on the Financial Advisory Committee (FAC). 0 FAC was formed to ensure financial feasibility to the engineering options. 0 Independently funded legal consultant to the FAC. 0 The FAC.• Completed funding analyses of the Master Plan alternatives, • Researched project financing options, Completed damages & consequences assessments, Developed Funding/Implementation Strategy for final Master Plan, Coordinated with TA in developing a recommended alternative. • Prepared list ofproperty owners in vicinity ofI-25/Prospect(400 names)for public notices. • Advised local property owners group of Alliance financing issues. • Coordinated with Alliance members including: Lorimer County, Town of Wellington, the City, Town of Timnath, Town of Windsor, North Poudre Irrigation Company, Boxelder Sanitation Distirict, New Cache la Poudre Irrigation Company, Colorado Water Conservation Board, Colorado Department of Transportation and others. NORTHI-25 EIS • Attended North I-25 EIS Technical Advisory Committee meetings (usually was the only member of the public in attendance). • Participated in all local(Group 7) meetings. 245 October 16, 2007 • Organized group of landowners in the neighborhood of I-25/Prospect and advised them of interchange issues. • Met regularly with City Transportation staff as well as CDOT and Felsburg Holt Ullevig., consultants on the North 1-25 EIS project. • With City Transportation staffandotherproperty owners, influenced theproposed alignment and details of the Prospect/I-25 interchange to the advantage of City. • Facilitated meetings between North I-25 EIS and Boxelder Creek Stormwater Alliance to resolve mutual issues. • Researched and resolved historic preservation issue with North I-25 EIS team. PROSPECT ROAD IMPROVEMENTS • Organized group of local property owners concerning issues pertaining to future Prospect Road improvements. • Coordinated regularly with City Transportation and Engineering staff. • Facilitated series of public/private meetings with the City, Timnath Engineer, and local property owners to address future improvements to Prospect before they became problems. These issues included: o Boxelder Creek crossing of Prospect west of I-25, o Greeley Water Extension & Transmission Project(GWET) crossing of Prospect, o Boxelder Sanitation District sewer crossing of Prospect at McLaughlin Lane, o Relocation of Timnath Inlet canal to allow future widening of Prospect, o Prospect/County Road 5 intersection issues, o Boxelder Creek stormwater overflow canal crossing of Prospect(the Grand Canal). o With Town ofTimnath,Don Bachman, Cache la Poudre Irrigation Company,Poudre Valley School District and a local developer, developed cross section profile of future Prospect ROW which is in use today. GREELEY WATER EXTENSION AND TRANSMISSION PROJECT(GWET) Greeley's GWETproject is a 60-inch diameter waterline delivering water from their pre-treatment plant northwest of Fort Collins to Greeley. In its nominal configuration, the bottom of the pipeline is to be placed on top of approximately 2 feet ofgravel and covered with at least 60 inches of soil making the total depth of their pipeline excavation and backfill approximately 12 feet. The sheer size of this project makes it important to anticipate related issues in advance of the project's construction. The 200 7 segment ofthisproject included a crossing ofProspect Road at McLaughlin Lane, a crossing ofI-25 at a location north of Prospect and completion to a point in the vicinity of the Fort Collins Airpark. The 1-25 crossing is particularly complicated since three irrigation company canal crossings, the Boxelder Creek crossing, a Boxelder Sanitation District sewer line crossing as well as various other utility crossings are located in close proximity to one another. • The Whites facilitated several public/private meetings with representatives from Greeley, Timnath,BoxelderAlliance, City Transportation/Engineering and Stormwater Departments, the Poudre Valley School District, Boxelder Sanitation District, CDOT, a group of affected landowners, and others to discuss details of the project. 246 October 16, 2007 • Arranged to have GWET representatives attend several Boxelder Alliance TAC meetings to coordinate the particularly tight and complex I-25 crossing as well as other mutual issues. • Facilitated meetings with the Timnath Engineer and Timnath GMA developers to discuss project alignment to minimize impacts to properties in vicinity of Timnath. • Worked closely with Poudre Valley School District personnel regarding crossing of the GWET project across the District's and White's properties. • The 2007 segment of the GWET pipeline is nearing completion. AMENDMENTS TO THE STRUCTURE PLAN MAP AND THE I-25 SUBAREA PLAN.• The Structure Plan map, a component of City Plan, the City's Comprehensive Plan, sets forth a basic pattern of development, showing how Fort Collins should grow and evolve over the next 20 years. The I-25 Subarea Plan is an element of City Plan and provides greater detail and policies for the I-25 corridor. For the southwest corner, the maps in these existingplans currently designate the 25 acre parcel as commercial and the 118 acre parcel as open space. For the northeast corner, the maps in these existing plans currently designate 30 acres as commercial, 86 acres as industrial, and 19 acres as urban estate (not including the 100 acres owned by the Poudre School District) in the northeast quadrant of the Prospect RoadII-25 interchange. To recommend approval of the City Plan and I-25 Subarea Plan amendments, the City Council has to find that:(])the existing Structure Plan is in need of change; and(2) the proposed changes would promote the public welfare and be consistent with the vision, goals,principles, and policies of City Plan. The applicable criteria are contained in Appendix C of City Plan. Review Criteria for Structure Plan Minor Amendments: Appendix C of City Plan outlines mandatory requirements for public notice, review process and evaluation criteria for minor amendments to City Plan, including Structure Plan map amendments. The Plan text states: "A plan amendment will be approved if the City Council makes specific findings that• The existing City Plan and/or related element thereof is in need of the proposed amendment;and The proposed plan amendment will promote the public welfare and will be consistent with the vision,goals,principles and policies of City Plan and the elements thereof. " To support the requested rezoning, amendments to existing plans will be necessary. Attachment 1 contains the statements,policies,and maps which need to be amended within the I-25 Subarea Plan. Attachment 2 is a summary of the recommended changes to the City Plan Structure Plan map. ANALYSIS BASED ON REZONING REVIEW CRITERIA How the rezoning requests address the requirements in the City's Land Use Code are summarized below: (a) consistent with the City's Comprehensive Plan; 247 October 16, 2007 Staff decided to review the land uses around the Prospect RoadlI-25 interchange as a result of the rezoning requests from the City,for the southwest quadrant, and the private property owner,for the northeast quadrant, to determine what would be the best land use pattern for the area around the interchange for the City as a whole, independent ofthe specific rezoning requests. The amendments to the plans are related to the rezoning requests but are independent actions. If the amendments to the plans are approved, the rezoning requests are simply implementation actions to the plan amendments. Staff is recommending the plans be amended to allow the commercial and open space lands in the southwest quadrant to be changed to the employment district designation. Basically, the plan amendments revert the property back to the land uses planned and zoned prior to the 1-25 Subarea Plan adoption. Staff is recommending the plans be amended to allow additional commercial and employment land uses to develop in the northeast quadrant of the Prospect RoadlI-25 interchange. It is becoming more apparent that 1-25 is not a logical urban edge to the community. The importance of the I-25 corridor to the economic development of Northern Colorado can be viewed all along the corridor. The towns of Timnath, Windsor, and Wellington are changing the character of areas east of I-25 from the rural, low density residential areas envisioned in both the initial City Plan of 1997, and the 2004 update, to urban types of uses. In staffs opinion, the City's plans need to be changed to address the new regional context of what is happening beyond the City's Growth ManagementArea (GMA) boundary. In City Plan, one of the stated community goals is: Fort Collins will maintain its role as a regional economic center. The downtown, the Foothills Mall, and South College Avenue are typically the areas cited as the most important retail shopping locations to help achieve this goal. Staff believes that interstate interchanges need to be elevated to share a similar importance. Principle ECON-2 states: Economic Sustainability: The City will strive to develop an economy which will be self-sustaining within the limits of its GMA. Policy ECON-2.2 states: Fort Collins will be a leader in developing an economy which continues to "develop" within its GMA. The southwest and northeast quadrants of the Prospect RoadlI-25 interchange are within the City's GMA boundary. The plan amendments and rezonings will help strengthen the interchange for an expanded role in the City's economic development strategies. Policy GM-4.2 states: 248 October 16, 2007 Capital Improvement Policy. The City will continue to operate under the following Capital Improvement Policies: e. The City will use a variety ofdifferentfunding sources to f end capital projects with an emphasis on the "Pay-as-you-go"philosophy. One of the northeast applicant's stated justifications for the plan amendments and rezoning is to provide a land use basis for the ability to generate sufficient tax revenues from the development of parcels around the Prospect Road/I--25 interchanges to cover the costs of necessary infrastructure improvements, including the major expense of reconstructing the Prospect Road/I-25 interchange. This would be consistent with the pay-as-you-go philosophy. (b) warranted by changed conditions within the neighborhoodsurroundingandincludingthe subject property. When identified for open space preservation in the I-25 Subarea Plan, the eastern portion of the Resource Recovery Farm (RRF) was not described as an area of interest to the Natural Resources Department's Natural Areas Program in the Natural Areas Policy Plan, nor the various community separator plans adopted by the City. Because the RRF was not shown in these plans, and because it has low natural resource values, Natural Areas Program staff embarked on a planning process to help guide the property's ultimate management and disposition status. Staff has concluded that the eastern portion is not needed for open space in order to achieve any of the City's natural area preservation goals. There are several changed conditions that help justify the plan amendments and rezoning request. When the 1-25 Subarea Plan was adopted in 2003, it was assumed that the necessary improvements to the Prospect Road/I-25 interchange would be funded by the Colorado Department of Transportation (CDOT) and/or the Federal Highway Administration (FHWA)since it was part of the federal/state highway system. It was not anticipated that the responsibility for improving the interchange would fall on local governments and/or adjacent property owners using public/private partnerships. The plan amendments and rezoning request will help address this changed condition whereby local revenues will need to be created in order to finance interchange improvements. The competition for retail sales tax dollars is also significantly different now in 2007 than it was in 2003. In order for the City to remain competitive in the Northern Colorado market, undeveloped retail commercial sites in desirable locations need to be provided. The City is lacking in areas to attract regional/community scale retail establishments. Interstate interchanges are the type of desirable sites for such regional serving retail uses. Land use plans by other jurisdictions,particularly the Town ofTimnath, are changing the character ofareas east ofI-25 from the rural, low density residential, areas shown on the City's plans, to more intense urban uses. In June 2007, the Timnath Town Board approved an amendment to Timnath's Land Use Plan which extended Timnath's Growth Management Area (GMA) boundary north of Timnath to County Road 52 (the northern boundary of the A-B brewery). The Timnath Land Use Plan also intensified the residential densities and land uses in the area to include commercial and 249 October 16, 2007 employment uses. This is a significant change of conditions that affects areas within the Fort Collins GMA boundary. I-25 is no longer a line from which land uses begin to decrease in intensity from employment and commercial uses adjacent to the highway, to urban residential, to urban estate residential, to rural uses. The land uses in areas east of I-25 are beginning to mirror the urban types of land uses west of I-25. Even the 100 acres of UE zoned property owned by the Poudre School District slated for use as athletic fields and school bus storage are not low intensity, rural types of land uses. In addition to the above, Section 2.9.4[HJ[3]provides factors that may be considered along with the mandatory requirements for quasi-judicial rezonings. Staff has prepared a response to each of the additional factors, demonstrating how the optional criteria could also be met: (a) whether and the extent to which the proposed amendment is compatible with existing and proposed uses surrounding the subject land,and is the appropriate zone districtfor the land; The E, Employment District is the appropriate zone for the southwest corner. Areas to the north, northeast, and east are designated for a mix of commercial, industrial, and employment uses. Also, the regulations contained in the Land Use Code are intended to have employment districts along the I-25 corridor designed in a manner to maintain openness through the use of: setback requirements, maximum building frontage allowances, restricting building heights, and proper management of floodplains. The C, Commercial District and the E, Employment District are the appropriate zones for the northeast corner. The E, Employment District will provide for a land use transition from the C, Commercial District areas to the surrounding residential properties to the north and east. The E, Employment District is more restrictive than the previous I, Industrial District for the property to the north.Areas to the south and west are designated for a mix of commercial and employment uses. And again, the regulations contained in the Land Use Code are intended to have employment districts along the I-25 corridor designed in a manner to maintain openness through the use of setback requirements, maximum building frontage allowances, restricting building heights, and proper management offloodplains. (b) whether and the extent to which the proposed amendment would result in significantly adverse impacts on the natural environment, including, but not limited to, water, air, noise, stormwater management, wildlife, vegetation, wetlands and natural functioning of the environment; Staff believes that development in the E, Employment District at the southwest corner would have no significant adverse impacts on the natural environment. Any development application will be subject to the City's development standards relative to natural habitat, energy conservation, stormwater and landscape design. Staff's perspective is that development in the C, Commercial District and the E,EmploymentDistrict at the northeast corner would have no significant adverse impacts on the natural environment. Again, development applications will be subject to the City's development standards relative to 250 October 16, 2007 natural habitat, energy conservation, stormwater and landscape design. Part of the reason for enlarging the C, Commercial zoning in the NE quadrant was to devote land to the proper management of the Boxelder Creekfoodplain. (c) whether and the extent to which the proposed amendment would result in a logical and orderly development pattern. The Prospect RoadII-25 interchange represents an opportunity to create a key community gateway, combining a balance of economic development and open space preservation. It is logical that such an important interchange maximize the ability to have land available for the development of a mix of commercial and employment types of uses. The City's development standards will require adequate public utilities and infrastructure to be in place to assure an orderly development pattern. FINDINGS OF FACT/CONCLUSIONS After reviewing the East Prospect Road and I-25 rezonings and amendments to the I-25 Subarea Plan and the City Plan Structure Plan map, staff makes the following findings of fact and conclusions as explained in detail above: 1. The request for amendments to the I-25 Subarea Plan and the City Plan Structure Plan map would be consistent with the City Plan's overall vision, goals,principles, and policies. 2. The rezoning requests are consistent with City Plan, the City's Comprehensive Plan, based on the Structure Plan map amendment and amendments to the I-25 Subarea Plan. 3. The proposed E,Employment District is appropriate for the parcels at the southwest corner of Prospect Road and I-25. 4. The proposed C, Commercial District and E, Employment District are appropriate for the northeast corner and will help provide tax revenues necessary to cover local funding required to improve the Prospect RoadlI-25 interchange as well as other infrastructure improvements. 5. The proposed rezonings will not result in significantly adverse impacts on the natural environment. 6. The proposed rezonings will result in a logical and orderly pattern of development. STAFF RECOMMENDATION Staffrecommends approval ofthe amendments to thel--25 Subarea Plan and the City Plan Structure Plan map and the rezoning of 25 acres of C, Commercial and 118 acres ofPOL, Public Open Lands to to 143 acres of E, Employment at the SW corner and for the NE corner, the rezoning of 86 acres ofl, Industrial to 66 acres of C, Commercial and 20 acres of E, Employment and the rezoning of 19 acres from UE, Urban Estate to E, Employment. to create a 39 acre E zoned buffer between the C, Commercial zoned area (a total of 96 acres) and residential areas to the north and east. PLANNING AND ZONING BOARD RECOMMENDATION The Planning and Zoning Board, at its regular monthly meeting on September 20, 2007, voted 7-0 to recommend approval of the plan amendments and the requested rezonings. " 251 October 16, 2007 Councilmember Troxell withdrew from the discussion of Items Relating to the Prospect RoadII-25 Interchange Rezonings due to a conflict of interest. City Manager Atteberry noted Resolution 2007-098 Amending the City Structure Plan Map Pertaining to the Northeast Corner of Prospect Road andI--25 and First Reading of Ordinance No. 127, 2007, Amending the Zoning Map of the City of Fort Collins by Changing the Zoning Classifications for that Certain Property Known as the Northeast Corner ofEast Prospect Road and I-25 Rezoning have been pulled and will be discussed at a work session. Resolution 2007-099 Amending the I--25 Subarea Plan has been amended to reflect the changes. Ken Waido,Chief Planner, stated the item was a request to rezone 25 acres that are currently zoned C-Commercial and 118 acres that are currently zoned POL-Public Open Lands into 143 acres of the E-Employment zone. This is a quasi-judicial rezone as it is less than 640 acres and Council must decide if the two criteria for rezoning have been met. The first criteria is that the rezoning must be consistent with City Plan and/or warranted by changed conditions in the neighborhood, including the subject property. City Plan contains a Structure Plan Map that gives the Land Use Code a structure of neighborhoods, districts and corridors. At the time City Plan was adopted, it was recognized that the I-25 corridor needed additional planning so that corridor was identified as a special study corridor. The City participated in the Northern Colorado Regional Community's I-25 Corridor Plan, which discussed a unified set of quality development controls, a multimodal transportation network and methods of protecting significant natural areas and open spaces. Subsequently,the City developed its own I-25 Subarea Plan that included the previous Plan's items and was more detailed in its land use description. The City has Plans that cover the areas west of I-25, so the I-25 Subarea Plan was concentrated on the east side of I-25 from Prospect north to Anheuser-Busch. This rezoning does not result in any change to the Growth Management Area boundary. Employment districts adjacent to I-25 were designed to maintain the perception of openness throughout the corridor and the Resource Recovery Farm was to be preserved as open space. The land use designation for areas surrounding the interchange is C-Commercial. There are Employment and Industrial areas to the north of the Commercial zone. The Land Use Code contains specific development standards for the I-25 corridor, aimed at maintaining a sense of openness. Depth, width and height restrictions have been developed to maintain a sense of openness. The request to rezone 143 acres to E-Employment is not consistent with the adopted I-25 Subarea Plan so the existing Plan must be amended. The second criteria to rezone is changed conditions. The eastern portion of the Resource Recovery Farm was not identified as an "area of interest" by the Natural Areas Policy Plan or any of the community separator plans and has low natural resources value. CDOT and the Federal Highway Administration are likely not to fund the needed interchange improvements and local revenue sources must be found to improve the interchange. Interchanges are very desirable sites for employment centers and regional commercial uses. Land use plans of other jurisdictions are changing the character of areas east of 1-25 from rural, low density to more urban-intense uses. Timnath is considering modifying its I-25 Plan and drastically change the land use character of areas east of I-25. The new Plan would create much higher density of residential uses, and would remove any separator between Timnath and Fort Collins. Timnath is proposing a Growth Management boundary IGA with Larimer County that would encompass the area east of the Prospect/I-25 252 October 16, 2007 interchange. These current plans significantly change the use of the land east of I-25 from the vision created in City Plan. Additional considerations are: (1)will the development of the area be compatible with surrounding uses, will development create any adverse impact on the natural environment and; (2) will the amendment of the Plan lead to a logical and orderly development pattern. Areas north,northeast and east ofthe subject property are designated for commercial and industrial employment uses which can be higher intensity uses than the E-Employment zone would permit. Any development would go throughthe development process. The interchange represents a key community gateway and can combine a balance of economic development and open space preservation. Shane Miller,4325 Mill Creek,asked what"and/or"means in the Land Use Code and how does this rezoning preserve open space. The fact that Timnath is changing its Plan is not a good reason for the City to change its vision of the I-25 corridor. W aido stated the 1-25 Subarea Plan discusses maintaining the perception of openness,not necessarily open space. The Plan recognizes the 1-25 corridor will develop and has standards that would maintain low building heights and separation between buildings so the view corridors are maintained. The changes Timnath is considering in its Plan for the area east of 1-25 directly affect the City's Plan for that area and the City needs to reexamine what it is planning for the area. Councilmember Manvel asked if the purpose was to preserve the viewshed with limited commercial development and to keep an open-feeling space but not keeping the land as actually open space to be used by citizens for hiking and bird watching. Waido stated that purpose was what the Land Use Code was designed to protect. City Attorney Roy stated, according to the Code, "and"indicates all connected words or provisions apply. "And/or"indicates the connected words may apply singly or in any combination. "Either/or" indicates the connected words or provisions apply singly but not in combination. Councilmember Roy asked if the I-25 Subarea Plan had become null and void. Joe Frank,Advance Planning Director, stated the Plan has been adopted and is part of the Comprehensive Plan and used to make land use decisions. The Northern Colorado 1-25 Corridor Plan was originally eight jurisdictions that joined together to look at the 27-mile stretch of 1-25 from Berthoud to north of Fort Collins. It was adopted by all jurisdictions, except Weld County and Johnstown. A MOU was adopted by the six jurisdictions that had adopted the Plan to continue to participate and there is an I-25 Policy Committee that meets quarterly to consider implementation of the Plan. Councilmember Roy requested a map of the I-25 Corridor Plan area from when it was adopted and what has occurred since adoption,including any known future plans. He asked what was the relative value was of open lands in the I-25 corridor. John Stokes,Natural Resources Director,stated the 143 acres under consideration was acquired by the Natural Areas Program in 2003 for open space purposes. When the land was acquired, it was not in any plans the Natural Areas Program had for open space or conservation. A year ago, Natural Resources asked Council for direction regarding the property. One option was to rehabilitate the property and replant it in native vegetation or to 253 i October 16, 2007 develop a build-out plan for the property. Council was comfortable with the development option, using the Land Use Code standards. Currently,the property is a cornfield and is not an area that fits into the Natural Areas system. Portions of the property are not involved in the proposed rezoning that do fit into the Natural Areas system. Councilmember Roy made a motion, seconded by Councilmember Manvel, to adopt Resolution 2007-097. Councilmember Roystated Fort Collins had a continuing responsibility to determine how best to g P Y improve the I-25 interchanges and fund those improvements. Opportunities must be created locally to fund improvements which are extremely costly. Mayor Hutchinson asked if Council should consider the future expense of interchange improvements as part of the criteria in making its decision. City Attorney Roy stated the basic criteria for Council's decision was that the rezoning had to either be consistent with the Comprehensive Plan and/or warranted by changed conditions within the neighborhood. An additional consideration is whether, and the extent to which, the amendment is compatible with existing and proposed uses and is the appropriate zone district. Another consideration is whether, and the extent to which, the proposed amendment would result in significantly adverse impacts on the natural environment. A third consideration is whether,and the extent to which,the proposed amendment would result in a logical and orderly development pattern. Potential expenditures for infrastructures do not fit into those considerations. The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvel, Poppaw, and Roy. Nays: None. THE MOTION CARRIED. Councilmember Roy made a motion, seconded by Councilmember Manvel, to adopt the revised version of Resolution 2007-099. Councilmember Manvel asked if the revised version of the Resolution removes some changes that were originally proposed by staff. City Attorney Roy stated the original version of the Resolution contained two reasons that supported the change to the 1-25 Subarea Plan for the northeast corner of I-25/Prospect and the revised version only contains reasons to support changes for the southwest comer of the interchange. The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvel, Poppaw, and Roy. Nays: None. THE MOTION CARRIED. Councilmember Roy made a motion,seconded by Councilmember Poppaw,to adopt Ordinance No. 126, 2007 on First Reading. Yeas: Brown, Hutchinson, Manvel, Poppaw, and Roy. Nays: None. THE MOTION CARRIED. 254 October 16, 2007 Ordinance No. 128, 2007, Authorizing the Conveyance of 143 Acres of Land to Colorado State University Research Foundation in Exchange for 267 Acres of Land Adjacent to Reservoir Ridge Natural Area.Adopted on First Reading. The following is staff s memorandum on this item. "FINANCIAL IMPACT The value of each of the exchange properties has been determined to be $4 million respectively. Both parties have made adjustments to the size of the exchange properties and negotiated various provisions in order to arrive at an equal exchange value. In addition to the exchange transaction, the City will obtain an option to buy 27 acres from CSURFfor $405,000. There also will be an internal transfer of funds from the Natural Areas Program in the amount of$2,000,000 to the general fund to compensate the general fund for 25 of the 143-acre City-owned exchange parcel. Thus, the net cash investment of new Natural Area Program funds for the exchange and the acquisition will be $2,450,000. Of the 143-acre City-owned exchange parcel, 118 acres were acquired by the Natural Areas Program in 2003 for$12,317 per acre, or$1,453,509. Thus, the total investment by Natural Areas in the 143-acre exchange parcel is$3,453,509($2,000,000 for the 25-acre general fund parcel, and $1,453,509 for the 118-acre parcel). This $3,453,509 investment will traded for the 267-acre CSURF exchange parcel valued at$4,000,000. The City's Natural Areas Program will own/manage all of the property acquired from Colorado State University. Ongoing management costs for the 267 acres (and the 27 acres)are expected to be fairly low ($35,000 annually), since the City already manages much of the surrounding land. In the future there could be modest capital costs associated with constructing a trail and a small bridge to cross an irrigation canal. All costs for managing and/or improving the land will be born by the City's dedicated Natural Areas funds. EXECUTIVE SUMMARY The adoption of this Ordinance will authorize a land exchange between the City offort Collins and the Colorado State University Research Foundation (CSURF). The proposed exchange consists of the City trading 143-acres of City-owned land at the southwest corner of I-25 and Prospect (a portion oftheformer Resource Recovery Farm)for 267-acres ofstate-owned landon Colorado State University's foothills campus. The exchange land currently owned by the City would become a gateway for Colorado State University into the City, and ultimately would include research, development, educational, and light manufacturing facilities. The exchange land currently owned by Colorado State University would become part of the Reservoir Ridge Natural Area, which is owned/managed by the City's Natural Areas Program. In addition to the exchange, the City would acquire an option to purchase an additional 27 acres from CSURF that is adjacent to the CSURF exchange property and Reservoir Ridge. 255 October 16, 2007 BACKGROUND For the past year, the City and Colorado State University (CSU) have been discussing various concepts related to land conservation as well as CSU's desire to have a significant gateway presence on the 1-25 corridor. Those conversations recently crystallized as it became apparent to both parties that significant, advantageous arrangements could be made that would greatly benefit both parties. The 143-acre City-owned exchange property at the southwest corner of I-25 and Prospect(known as the Resource Recovery Farm) has been owned by the City since around 1980. It originally was acquired for use as a bio-solids land-application site for the Wastewater Utility. The property's original size was 325 acres; over time much of that land was acquired by the City's Natural Areas Program to become part of Running Deer Natural Area. The most recent acquisition was in 2003, when 151 acres were acquired by the Natural Areas Program at the direction of City Council to protect open space along 1-25. Of those 151 acres, 118 acres are proposed to be part of the land trade with CSU. The remaining 33 acres would be retained by the Natural Areas Program to protect Boxelder Creek and the Poudre River corridors. An additional 25 acres that is held by the general fund of the City at the corner ofI-25 and Prospect would bring the total amount of the trade parcel to 143 acres. (See attached map) In the proposed transaction with CSURF, the 143-acre trade parcel is described as two pieces, the 25 acres at the corner ofI-25 and Prospect and the additional 118-acres to the south. The 25 acres would be conveyed to CSURF subject to all applicable zoning and development regulations. The 118 acres also would be conveyed subject to all applicable zoning and development regulations with the additional proviso thatforty percent(4091o) of the 118 acres would be required to be "outdoor spaces. " Outdoor spaces are defined to be landscaped orpark areas, native vegetation areas, water features,paths, or trails, but no other paved or surfaced areas. In addition to this requirement, the outdoor spaces are not allowed to be aggregated in a single contiguous area and must be distributed throughout the 118-acre parcel. The intention of these provisions is to continue to provide a relatively "transparent"built environment at the site, so that good views are maintainedfrom 1-25 to the west. CSU's intention in acquiring the 143-acre property is several fold: (1) to establish a gateway presence on I-25 that will lead visitors to CSU to the main campus by way of Prospect; (2)to create a research and development "campus-like"facility primarily focused on green technologies; and (3) to provide a location in partnership to a major start-up company with plans to begin manufacturing solar panels as soon as 2008. The start-up company developed its technology at CSU and intends to have as many as 300 employees within a year. The 267-acre CSURF-owned property that would be conveyed to the City is land that has traditionally been utilized by CSUfor grazing and animal husbandry. The east and west boundaries of the property adjoin existing natural areas. The south boundary adjoins other CSU lands; the north boundary adjoins City-owned natural area as well as the 2 7-acreparcel held by CSURF that will be optioned for purchase by the Natural Area Program (see attached map)for Four Hundred and Five Thousand Dollars($405,000). When the 267-acre and 27-acre parcel are combined with existing natural areas, the total contiguous conserved area will be 748 acres, one ofthe largest local 256 October 16, 2007 natural areas. The conserved area will stretch from the top of the first major foothill west of town to Overland Trail Road. In addition to habitat contiguity, conservation values include wetlands, shortgrass prairie, and prairie dog colonies. Scenically, this area will be one of the few, if not the only place in north Fort Collins, where an unobstructed vista to the foothills is preserved. In addition to the conservation values, the area will provide trail connection opportunities from Overland Trail to the foothills and contributes to a longer-term plan to connect this area by trail to the Poudre River. Moreover, the protected area will surround and be adjacent to the Primrose Studio. The Primrose Studio, along with land was donated to the City of Fort Collins NaturalAreas Program by Rob and Mary Udall with the stipulation that the art studio be made available to the public for classes and meetings related to conservation. Primrose Studio is planned to be open November 18th. " Councilmember Troxell withdrew from the discussion ofFirst Reading ofOrdinance No. 128, 2007 Authorizing the Conveyance of 143 Acres of Land To Colorado State University Research Foundation In Exchange for 267 Acres of Land Adjacent to Reservoir Ridge Natural Area due to a conflict of interest. John Stokes,Natural Resources Director,thanked CSU and the Colorado State University Research Foundation(CSURF)for working together with the Natural Areas Program to create this project that was of mutual benefit to both organizations. The property was formerly known as the Resource Recovery Farm and is different from other properties in the Natural Areas system. The property was acquired to help preserve the viewshed from I-25 and is located on the southwest corner of 1-25 and East Propect. The property owned by CSURF is 267 acres located on Colorado State University's foothills campus. An additional 27-acre tract located next to the property will be optioned for purchase from CSURF. A land trade is proposed between the City and CSURF. 143 acres of land in the Natural Areas system will be traded for 267 acres owned by CSURF. The two parcels are valued at $4 million each. Two outside appraisers have placed this value on the properties. The additional 27-acre tract to be optioned would be bought for$15,000 per acre,which is the same price per acre as the two properties being traded. The property can be bought any time over the next three years at the discretion of the Natural Areas Program. The 143-acre tract is in two pieces. The General Fund owns 25 acres and the Natural Areas Program owns 118 acres. Natural Areas would acquire the 25-acre tract from the General Fund for$2 million and then the 25 acre tract would be conveyed as part of the land exchange with all development rights intact. The 118-acre tract was acquired in 2003 for$1.4 million as part of a 151-acre acquisition. Natural Areas would retain 33 acres that would not be conveyed in the land exchange. The 33 acres is located on the south end of the property,near the Poudre River and on the west side,near Boxelder Creek and those areas do fit into the Natural Areas Program. The I I8-acre parcel conveyed is subject to a 40% development restriction, which means 40% is required to be outdoor spaces such as landscape,park areas,native vegetation,water features,paths or trails,but no other paved or surface area. The outdoor spaces must be distributed throughout the 118-acre parcel. The purpose is to promote a campus-like development that would be aesthetically pleasing. This restriction would be in addition to the 1-25 Subarea Plan development regulations and zoning requirements. CSU has been supportive of this restriction throughout negotiations. 257 October 16, 2007 One issue that has been raised is the need to raise funds for improvements at the I-25/Prospect interchange. Having a taxable entity own the 143-acre parcel would be beneficial in this regard. The parcel will be held by CSU, a taxable entity and would be part of any special district that might be formed in the future to pay for improvements. The City will retain a"right of first refusal"on the 143-acre parcel to ensure it will not be conveyed to a tax-exempt entity. The total investment by the Natural Areas Program is $3.5 million and it is proposed to be traded for 267 acres that has been valued at$4 million. The land the City will receive will create a premiere natural area on the northwest side of town. At the corner of I-25 and Prospect, an academic and business hub devoted to sustainable technology will be created by CSU, along with the potential location of a solar manufacturing company that could provide over 300 new jobs. Reservoir Ridge Natural Area is adjacent to the 267-acre parcel that would be acquired in the land exchange. When the 267-acre parcel and the 27-acre parcel are acquired, an area of 748 acres of natural area will be created and would connect from Horsetooth to Overland Trail. It has great habitat values and opportunities for trail connection. It surrounds Primrose Studio, located at Claymore Lake. Primrose Studio, an art studio,was donated to the Natural Areas Program by Rob and Mary Udall with the stipulation that the art studio would be restored and made available to the public for art and nature classes. The remodel is almost complete and the building will be opened to the public on November 18. Bruce Lockhart,2500 East Harmony Road,stated the zoning change that just occurred for the parcel of land located at the southwest corner of 1-25 and Prospect created a much higher value for the property and he did not think the land exchange was a good deal for the City. Instead,the property should be sold to the highest bidder to provide funds for the City. Shane Miller, 4325 Mill Creek, asked if the 40% development restriction that was put on the I- 25/Prospect parcel was subject to any waivers in mitigation during the development process. He asked how the property would be valued if the City chose to exercise the "right of first refusal", should CSU want to sell the property. He asked what the time frame was to exercise the option to buy the 27-acre parcel from CSURF and how would the property be valued. Mayor Hutchinson noted the City is not trying to sell the land and make money. This is a proposal to swap land of equal value and would provide great benefit to the public in terms of usable open space. The City's interest has been carefully preserved. Stokes stated the development restriction on the I-25/Prospect parcel is included in the deed and cannot be waived or changed and runs in perpetuity. If the City decided to exercise its right of first refusal, then the property would be valued at fair market value at the time of the sale. Carrie Daggett,Assistant City Attorney, stated the deed restriction bases the right of first refusal on the owner having received a legitimate offer to purchase the property. It is based on the offer on the table at the time. The development restrictions contained in the deed adds another layer of restriction and does not eliminate the regulatory restrictions that apply. 258 October 16, 2007 Councilmember Roy asked if the 33 acres that Natural Areas is keeping could be exchanged for the 27 acres CSURF currently owns and that the City has an option to buy. He wondered if a conservation easement could be placed on the 33 acres to protect the habitat, yet let CSU still use the land. Stokes stated the 27-acre parcel is held in a trust and was donated to CSU by the Udall family. CSU needs to receive cash compensation so the trust can be funded. Kathleen Henry, President of CSURF, stated the gift agreement between the Udall family and CSU states that if the property is sold,the proceeds are to be used to fund an endowment to support the College of Natural Resources. CSU must have cash to meet the provisions of the agreement. Councilmember Roy asked for the value of the 27-acre parcel. Stokes stated it was valued at $405,000, using the same price per acre that was used to value the two parcels involved in the land exchange. Councilmember Roy made a motion,seconded by Councilmember Manvel,to adopt Ordinance No. 128, 2007 on First Reading. Councilmember Manvel stated the exchange was an exciting prospect and noted that while the City was losing some open space next to I-25,the 33 acres that was retained by Natural Areas is located next to Running Deer Natural Area. The large area created in the foothills will be a great resource for recreation uses that are not possible on the property located at I-25 and Prospect. Mayor Hutchinson stated staff had been very careful to ensure this exchange was beneficial to the City and was valued appropriately. The exchange offers a great benefit to the public. The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvel, Poppaw, and Roy. Nays: None. THE MOTION CARRIED. Other Business Councilmember Brown stated a Fort Collins family, Jerry and Margaret Walsh, lost their son, Sergeant Nick Walsh, in the war in Iraq. Fort Collins has a tradition of naming streets after those who have distinguished themselves through service or sacrifice for their community and country. He made a motion, seconded by Councilmember Roy, to add the name of Sergeant Nick Walsh to the list of possible names for future streets in Fort Collins. Councilmember Manvel asked if the name was to be "Sergeant Nick Walsh," "Nick Walsh," "Nicholas Walsh," "Walsh,"or any combination. Councilmember Brown stated any combination of the name would be acceptable. The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvel, Poppaw, Roy and Troxell. Nays: None. THE MOTION CARRIED. 259 October 16, 2007 Councilmember Manvel made a motion, seconded by Councilmember Poppaw, to adjourn the Council meeting and to reconvene after the meetings of the General Improvement District No. 1 and the Urban Renewal Authority are completed. Yeas: Brown,Hutchinson,Manvel,Poppaw,Roy and Troxell. Nays: None. THE MOTION CARRIED. (**Secretary's Note: The Council adjourned at 9:45 p.m.and reconvened at 9:55 p.m. following the meetings of the General Improvement District No. 1 and Urban Renewal Authority) Executive Sessions Authorized Councilmember Manvel made a motion,seconded by Councilmember Brown,for Council to go into Executive Session,as permitted under Section 2-31(a)(2)ofthe City Code for the purpose of meeting with attorneys of the City regarding pending litigation and other legal matters. Yeas: Brown, Hutchinson, Manvel, Poppaw, Roy and Troxell. Nays: None. THE MOTION CARRIED. (**Secretary's Note: The Council adjourned into Executive Session at 9:55 p.m. and reconvened following the Executive Session at 10:40 p.m.) Councilmember Manvel made a motion, seconded by Councilmember Roy, to go back into Executive Session, as permitted under Sections 2-31(a)(2) and(3)of the City Code for the purpose of meeting with attorneys of the City regarding pending litigation and other legal matters and for the additional purpose of considering a possible real property acquisition. Yeas: Brown, Hutchinson, Manvel, Poppaw, Roy and Troxell. Nays: None. THE MOTION CARRIED. (**Secretary's Note: The Council adjourned into Executive Session at 10:40 p.m. and reconvened following the Executive Session at 11:10 p.m.) Adjournment The meeting adjourned at 11:10 p.m. Mayor ATTEST: City Clerk 260