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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/17/2009 - CONSIDERATION AND APPROVAL OF THE MINUTES OF THE J ITEM NUMBER: 6 AGENDA ITEM SUMMARY DATE: February 17, 2009 FORT COLLINS CITY COUNCIL STAFF: Wanda Krajicek SUBJECT Consideration and Approval of the Minutes of the January 20,2009 Regular Meeting and the January 13 and January 27, 2009 Adjourned Meetings. January 13, 2009 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council-Manager Form of Government Adjourned Meeting - 6:00 p.m. An adjourned meeting of the Council of the City of Fort Collins was held on Tuesday, January 13, 2009, at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered by the following Councilmembers: Hutchinson, Manvel Ohlson, Poppaw, Roy and Troxell. (Councilmember Brown has been excused from Council meetings from October 28, 2008 through April 7, 2009, per Resolution 2008-104.) Staff Members Present: Atteberry, Krajicek, Roy. City Manager Atteberry stated a citizen has requested that Council add the name "Louis Brown, Jr. Parkway" to its list of street names and the request will added the agenda that will be presented at the next Council meeting on January 20. Ordinance No. 004,2009, Adopting the 2009 Classified Employees' Pay Plan, Adopted on First Reading The following is staffs memorandum on this item. "EXECUTIVE SUMMARY The City of Fort Collins 2009 Pay Plan establishes a structure for employee compensation. It is the framework that sets the minimum and maximum pay for City positions. The methodology used by the City has evolved based on compensation best practices. The 2009 Pay Plan uses average actual salary data collected from a redefined market for benchmark positions to determine pay range midpoints within occupational groups. BACKGROUND Prior to 2007, the philosophy used to develop the City's annual pay plan was based on setting pay range maximums, within occupational groups, at the 70th percentile of the market. Accordingly, the City benchmarked approximately 79jobs against 18 peer organizations, including Front Range municipalities, counties, and the State of Colorado. Pay ranges were developed using pay range maximum data collected from the 18 peer organizations and limited private sector data. The philosophy ofsetting pay range maximums at the 70th percentile is no longer considered a best practice. Therefore, the City redefined its philosophy for establishing the City's Pay Plan. In addition, pay data was gathered for the newly defined market, which more accurately reflects the market we compete in for talent. 361 January 13, 2009 The 2008 Pay Plan represented a transition toward the new compensation philosophy. Rather than using pay range maximums to develop the pay structure, average actual pay data was collected from the same 18 benchmark organizations. The 2008 budget included creation of a Compensation Analyst position to help further implement the new pay philosophy. In 2008, staff attended a course, "Market Pricing - Conducting a Competitive Pay Analysis, " to learn about best practices in compensation, benefits and total rewards. Staff used the recommended methodology to design the 2009 Pay Plan. 2009 PA Y PLAN DE VEL OPMENT Step 1—Market Identification Twenty-two meetings were held with Service Area/Unit Directors, Department Heads, and Division Managers to identify the appropriate market for the City's benchmark jobs. This market identification process addressed Council's direction to ensure that the City's Pay Plan more closely aligned with the actual markets the in which the City competes(both the public and private sectors). During this process, the City identified 157 benchmark jobs for which market pay data could be gathered. Benchmarkjobs now represent approximately 40%ofall City jobs. The Colorado Front Range, extending from Fort Collins south to Colorado Springs, was identified as the market for professional and technical jobs. Northern Colorado, including Larimer and Weld Counties was the market identified for administrative support and some labor trade jobs. Salary data for these two markets includes Cities and Counties with populations ranging from approximately 50,000 to 550,000, and private sector date, where available. Step 2—Market Data Collection and Analysis Once the market was defined, average actual salary data was collectedfor the benchmarkjobs using surveys from Mountain States Employer's Council (MSEC) and the Colorado Municipal League (CML). Average actual salary(also referred to as the mean) is the sum of all reported pay for every employee in a benchmark job divided by the number of incumbents in a given job. Because the salary data was collected in March 2008, staff"aged" the data by multiplying survey salaries by an Employment Cost Index (for government jobs) to arrive at effective pay rate to be implemented in March 2009. PRIMARY DATA SOURCES Mountain States Employer's Council (MSEC) Colorado Compensation Survey MSEC Colorado. Compensation Survey represents Colorado employers of all sizes. Data was collected from 436 respondents situated all across the State of Colorado, including the four geographic areas of Denver/Boulder, Northern Colorado, Southern Colorado, and the Western Slope and representing 49,404 employees. Although government employers are included in this survey, they represent only 16.5% of the employers. MSEC surveys 343 benchmark jobs. 362 January 13, 2009 Mountain States Employer's Council (MSEC) Information Technology Compensation Survey Data is collected from 341 respondents. There are 5,634 employees and 76 benchmark jobs. Information is not broken down by geographic region or type of industry. Mountain State Employer's Council (MSEC) Public Employers Compensation Survey Data is collected from 130 respondents. There 34,414 employees and 317 benchmark jobs. Colorado Municipal League (CML) CML reports compensation from many jurisdictions in the State of Colorado, including municipalities, counties, and special districts. Step 3—Establish Pay Ranges Average actual salaries were used to set the Ciry's market or midpoint far each pay grade within the eight occupational groups that make up the Classified Employees' Pay Plan. In order to determine pay grade midpoints (the pay structure), staff used regression analysis to establish the best line offit for the average actual salaries and pay grades. Midpoints were then used to establish the minimum and maximum of the pay range (40%spread). Each pay grade was analyzed. The result of this effort is the recommended 2009 Classified Employee Pay Plan. " City Manager Atteberry stated Council is considering the 2009 Employee Pay Plan. In 2003, the City began evaluating employee health care benefits and costs have been significantly reduced. The employee health care benefits were far out of market for other cities across the north Front Range. The City now pays 75%of employee premiums and 25% of the premium is paid by the employee. Out-of-pocket expenses have been adjusted and this year the City has seen a reduction in claims. The benefits are now at market average. At the Council's direction, the pay philosophy has been changed, the definition of the market has been redefined and the City has moved towards performance-based pay. Amy Sharkey, Compensation, Benefits and Human Resources Manager, stated the new pay philosophy states the City's compensation program will be competitive in attracting and attaining the quality employees needed to execute the City's mission and vision. The pay philosophy directs that the pay ranges established within the pay plan will use a redefined market and the average actual salaries of those markets and that the pay employees receive will be at or slightly above the market. The redefined market used for the 2009 Plan varies with the type ofjob within the City. A Service Area/Unit Director job has a national and Front Range market. Professional technical jobs were compared to the market along the Front Range,using both private and public data. Administrative support and some labor trade markets were compared to the private and public market in northern Colorado. A national market primarily looks at the western region of the United States. Front Range is Fort Collins to Colorado Springs and northern Colorado is Larimer and Weld counties. All data provided by private organizations to compensation surveys was used for the analysis. Data from 363 January 13, 2009 public organizations with a population of 50,000 to 550,000 was used. The 2009 Pay Plan provides a foundation for establishing employee pay, using the market data, and sets the pay ranges. A pay range is established using the average actual salary data from published surveys. The data is used to set the midpoint of pay ranges. The minimum and maximum of the pay range are figured based on the midpoint. The pay for performance system implemented by the City in 2008 lets the City differentiate rewards for employees, based on performance. A performance evaluation system was created to aid supervisors and managers in implementing the performance based pay system. Pay increases are based on individual employee performance and the market. Not all employees will be receiving the same pay increase. City Manager Atteberry stated Council's role in the process is to adopt a budget that appropriates the funds needed to pay for the Pay Plan. The 2009 budget contains a 4% increase for employees, on average. Council also adopts the classified employees' Pay Plan that establishes the minimums and maximums of the pay ranges for each job type. The City Manager's role in the process is to take the Pay Plan adopted by Council and the money that is appropriated and implement the Plan in the most effective way. With the market redefinition and pay philosophy, it has been apparent that a significant number of City employees are behind the average of the market. The City Manager's recommendation to Council is to keep the 4% pay increase and add 1.4% to phase in the market adjustments over the next 3 years. The Finance Committee did not support that recommendation, given the current economic climate. He has spoken with every Councilmember and does not believe a majority of Council supports his recommendation,but he continues to make the recommendation to bring salaries to average actual salaries over a three year period. Since Council support is not provided, the best alternative is to keep intact the 4% already adopted in the budget and adopt the Pay Plan. Councilmember Ohlson stated the City's pay philosophy is to pay"at or slightly above average"and that wording needs to be changed. Employees that have worked for the City for a long period of time and have been performing well have salaries that are significantly higher than average market. Sharkey stated the City does not currently have any merit employees at the maximum of their pay range. Length of time employed by the City is not a guarantee an employee will get to the top of the pay range. The employee must perform well. The Pay Plan is evaluated every year and if the market moves the pay ranges, employees can still only move through the pay range based on performance. City Manager Atteberry stated the previous pay philosophy was to pay employees at the 70% percentile maximum. The policy centered around the maximum pay grade, not the average actual and two-thirds of the work force was at pay grade maximum. With the new pay philosophy, most employees will be paid around the average actual and will not be at pay grade maximum. It is possible for an employee to reach the pay range maximum, but it will take a high performer some time to reach that level. Mayor Hutchinson noted the market average is the reference point for a range, it is not one employee's average pay, but is used to establish a range and the City Manager is required to stay within the ranges with pay for performance. 364 January 13, 2009 Councilmember Ohlson stated the phrase"at or slightly above average" should be changed but not the entire Policy. Assistant City Manager Williams stated the terminology was deliberately chosen to emphasize the pay philosophy. When the 70th percentile was used, the maximum pay was became the focus because, if an employee stayed with the City long enough and was a good performer, the assumption was the employee would reach the pay maximum. The philosophy now focuses on where the average employee will be paid and the goal is not to have people at the maximum of a pay range but to pay within the mid-point of a pay range. It will be much more difficult to move up within a pay range with pay for performance. Councilmember Manvel stated the distribution of pay will change with the new pay philosophy and will not be skewed to the upper end of pay ranges. Williams noted the ratings system in place for pay for performance has multiple layers of review to ensure the distribution of pay is examined each year. Councilmember Troxell stated developing a pay plan that is market-driven and performance based is an excellent strategy for the City and the market study showed approximately 300 positions are behind the market. He asked what funding was available to provide an extra 1.4% to those employees whose pay is below market. City Manager Atteberry stated the City has significant, ongoing savings from reduced claims cost for the employee and employer. Those dollars are appropriated and could be used for this purpose. Councilmember Poppaw asked how long can the City stay healthy if the economy continues to decline and she did not believe adopting the Pay Plan was a good fiscal decision. City Manager Atteberry stated his recommendation is fiscally sound and the City organization, through cost reductions and efficiencies, can afford to put the Pay Plan into effect. The forecast for the next year is conservative and Fort Collins is in much better shape than many other communities. The City will reduce costs with a hiring freeze and filling positions only if justification is provided by departments. This is an investment in the human capital of the City and without a world-class work force that is provided compensation at least at market,the City will not be able to keep up with the expectations of the community. Councilmember Poppaw asked if it was possible to postpone consideration of the Pay Plan until 2009,first quarter results are available. City Manager Atteberry stated the City has already delayed implementation of the Pay Plan for six weeks. A Plan is in place that is data-driven, the methodology is sound, is best practices, and adopting the Plan is the right thing to do. Councilmember Poppaw asked if the City can sustain the Plan if the recession continues for two years or more. City Manager Atteberry stated his belief that the City is in good financial condition but there is no guarantee the economy will not drop further. If further adjustments are necessary in the future, those will be brought to Council. It is not appropriate to make those adjustments at the expense of the employees. Councilmember Roy asked for additional language to be added to the ordinance that would cap the increase at 4% instead of 5.4%. City Attorney Roy stated there is no place in the ordinance to address the percentage of increase that has been used to calculate the amount needed to fund the Pay 365 January 13, 2009 Plan. The ordinance will adopt a Pay Plan that is consistent with the amount budgeted. It is not necessary to address percentages and would not be appropriate. Mayor Hutchinson stated the City Manager has recommended a 5.4% benchmark average increase for the implementation of the Pay Plan and Council has indicated, given the economic difficulties, that it is considering supporting only the use of funding at the 4% level that is budgeted. He asked if the motion to adopt the ordinance should contain language directing the City Manager to cap the increase at 4%. Councilmember Troxell stated Council needs to address the Plan to provide for City employees and to take the first step in bringing many employees up to the average actual of their pay range. There are funds available to support the Plan. Council must consider if it wants to provide for a competitive staff and work towards the pay philosophy that was adopted. City employees should be paid appropriately and Council should prioritize programs in the tough economic times and drop those programs that are less important. City Attorney Roy stated language could be added to the fourth"Whereas" clause to say"Whereas the Pay Plan recommended by the City Manager is consistent with City Council objectives,including the philosophy of establishing pay ranges by using the average actual salaries for benchmark positions to set the mid-point of pay ranges for those positions and is consistent with the amount previously budgeted by the City Council for 2009 employee compensation increases at an average level of 4%." Councilmember Poppaw asked why an average pay increase of 3.5%was not considered to provide more funds in the future, if the downturn is much greater than anticipated and layoffs of employees occurs. City Manager Atteberry clarified that no layoff of City employees is anticipated. The City organization is very lean and is having a difficult time keeping up with Council and community expectations of the organization. If the economy worsens, a discussion about cuts will be held concerning what services can be eliminated and the jobs tied to those services. He did not expect that to happen in 2009. The City is a service organization and people are needed to deliver services who need to be paid. Best practices state that pay should be based on the market. Compensation is a significant part of the City's budget. Not funding the pay philosophy will undermine the work done to institute pay for performance. Assistant City Manager Williams stated reducing the average increase from 4% to 3.5% would save between $350,000 and $400,000. This is the first year of implementing performance-based pay and adequate compensation is needed to truly differentiate job performance based on merit. Waiting until a future date to begin to bring employees up to market average that are currently behind the average exacerbates the problem and the cost of bringing those employees up to market will only be more expensive. City Manager Atteberry stated from 2003 through 2005,the City partially froze salaries. Part of the reason many salaries are so far behind market now is due to the pay freeze at that time. The City has never caught up to the market from that time and continues to fall behind. Councilmember Manvel stated the market has been redefined which has made a difference in comparing salaries. The question is whether it is true that an administrative professional job with 366 January 13, 2009 the City is directly transferable with an administrative job in the private sector. Williams stated the market data was collected earlier in 2008, before the economic downturn. When the market is reassessed next year, possible changes could be seen. Councilmember Manvel stated caution was needed and the figures from the first quarter needed to be examined before going forward. He did not support using the cost savings that were achieved from reduced claims cost for the employee and employer to pay an additional 1.4%. Councilmember Ohlson asked if comparing the pay ranges of city positions to private sector jobs pushed the pay ranges higher. Williams stated that was correct, particularly in the technical engineering area. Sharkey stated comparing City employee pay to similar private sector pay did not affect the pay ranges for lower pay grades within the occupational groups, but the technical and professional pay grades were affected by the comparison. Councilmember Ohlson asked what percentage of City positions had salary ranges that were higher than market average. Sharkey stated that information will be provided to Council before Second Reading. Councilmember Troxell stated the Pay Plan was designed to bring performing employees to 50%of their peer actual average for their job class. The cost savings of$700,000 that is available to bring the employees to market average should be used to achieve that goal. Councilmember Roy made a motion,seconded by Councilmember Manvel,to adopt Ordinance No. 004, 2009 on First Reading with the proposed changes to the fourth "Whereas" clause. City Attorney Roy stated the phrase "that the staff believes" would be removed; the wording "and is consistent with the amount previously budgeted by the City Council _for 2009 employee compensation increases at an average level of 4%"would be added. Mayor Hutchinson stated the new language added to the Ordinance clarifies that the amount to be used for the Pay Plan is the amount already in the approved budget and not the additional funding recommended by the City Manager. Councilmember Ohlson noted the salary increases in the proposed Pay Plan total $3.2 million and the pay for performance philosophy is being fully implemented. Fully funding the pay for performance aspect of the Pay Plan is the culmination of three years of work to develop a philosophy that is market-driven and data based. The motion, as presented, will fully fund the pay for performance. The downturn of the economy needs to be recognized and it is not prudent to make the extra adjustments recommended by the City Manager. Councilmember Poppaw stated the City is a lean organization but economic realities require great caution to be used with the City's finances. She expressed concerns that the funding will not be available in the future to fund the Pay Plan and layoffs would become necessary. This is not the time to consider 5.4% raises for anyone. 367 January 13, 2009 Councilmember Ohl son noted the increase will be 4%,on average. Top-performing employees may receive more and some employees will receive less. Councilmember Troxell stated the market analysis has shown that 300 positions are behind market average. Paying employees what the market shows is an average salary should be a priority. Councilmember Roy stated the City organization has made many sacrifices over the past 5 years that many other organizations have not made. $15 million has been cut from the budget over the past 5 years and 110 people were laid off. Council and staff have worked hard to make the organization function at a level that is efficient. It is right to fund the Pay Plan and pay for performance and the funds have already been appropriated. Councilmember Manvel stated 4%is a reasonable increase that has been budgeted and will fund pay for performance. Special circumstances do exist for certain positions that are not in line with market average so some extra adjustments will be made. He did not support using the $700,000 of cost savings for additional pay increases. Pay for performance is a huge investment and funding the results of the evaluations for pay for performance is important. Councilmember Poppaw offered a friendly amendment to the motion that would amend the increase from 4% to 3.5%. Councilmember Roy, maker of the motion, did not accept the amendment. Councilmember Troxell stated his support for the City Manager's recommendation to fully fund the pay for performance. The increase of 4% does not recognize the inequity that exists with 300 positions that are below market. Mayor Hutchinson stated the budget process has allowed for the City to set aside funds for the unknowns of the future. Adjustments have been made over recent years that were difficult but the end result is a lean organization. The uncertainty of the economy requires Council to be cautious but the funds have been budgeted to allow for a 4% increase, on the average and should be used to compensate employees. The vote on the motion was as follows: Yeas: Hutchinson, Manvel, Ohlson, and Roy. Nays: Poppaw, Troxell. THE MOTION CARRIED. Other Business Councilmember Ohlson made a motion, seconded by Councilmember Roy, to adjourn the meeting to the end of the work session to consider a possible executive session. Yeas: Hutchinson Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none. THE MOTION CARRIED. ("Secretary's note: Council adjourned to the end of the work session and reconvened at 10:10 p.m.) 368 January 13, 2009 Executive Session Authorized Councilmember Ohlson made a motion, seconded by Councilmember Roy, to go into executive session, as permitted under Section 2-31(a)(2)of the City Code for the purpose of meeting with the City Attorney regarding potential litigation and to discuss related legal issues. Yeas: Hutchinson Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none. THE MOTION CARRIED. ("Secretary's note: The Council went into executive session at this point in the meeting.) Adjournment The meeting adjourned at 10:50 p.m. Mayor ATTEST: City Clerk 369 January 20, 2009 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,January 20,2009, at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered by the following Councilmembers: Hutchinson, Manvel, Ohlson, Poppaw, Roy, and Troxell. (Councilmember Brown excused from Council meetings from October 28, 2008 through April 7, 2009, authorized by Resolution 2008-104.) Staff Members Present: Atteberry, Krajicek, Roy. Council recognized.Kim Jordan, CEO of New Belgium Brewing Company, in honor of her award as CEO of the Year and presented her with a key to the city. Citizen Participation Eric Sutherland,631 LaPorte Avenue,stated the proposed Electric Service Code change is not legal and should not be adopted. Chip Parrish, 144 North Mason,stated the Rental Housing Code relating to unrecorded duplexes has a few holes in the process. New mortgage rules will make it difficult for property owners to use the equity in their investment properties to make repairs that could be required by the proposed changes to the Code. He had concerns that the process to bring unrecorded duplexes into compliance will be onerous on the property owners. He requested Council hold a work session to review the process proposed by staff. Jay Stoner, 5800 East County Road 58, stated adding the name "Louis B. Brown, Jr."to the City's list of street names was a great recognition of a citizen who contributed greatly to the community. Betty Aragon-Mitotes, 140 2nd Street, asked that a sound test to be conducted at the site of the proposed music venue is to be built near the Buckingham neighborhood. The neighborhood is concerned the noise from the music venue will be much greater than is currently allowed. Paige Noon, 1307 West Mountain,requested a sound test for the Buckingham neighborhood so the neighborhood can understand how the impacts of the proposed increase in maximum decibels will affect the area. Debbie Tamlin, President of the Fort Collins Board of Realtors,thanked staff for working with the Board to resolve issues relating to unrecorded duplexes. She asked that careful consideration be given to any changes that might be made to the Code to bring unrecorded duplexes into compliance. 370 January 20, 2009 Carrie Gillis, 2213 Timber Creek Drive, requested that Council consider the issue of unrecorded duplexes at a work session. Michelle Jacobs,Fort Collins Board of Realtors,stated the permitting process in the Rental Housing Code for unrecorded dwelling units will affect many people and the City must communicate, in writing, with all property owners. Many questions need to be answered about the process and she requested Council schedule a work session before it formally considers the permitting process. Theadora Bey, Buckingham neighborhood resident,requested a sound test be performed at the site of the proposed Oxbow Music Venue so the neighbors can assess how the proposed noise ordinance will affect the neighborhood. Matthew James Gomez, 216 2nd Street, stated his concerns about noise levels from the new music venue and he requested a sound test be performed by staff. Cheryl Distaso, 135 South Sunset, thanked staff and Council for adding two public meetings and extending the time for public comment concerning the proposed Transfort routes. She expressed her concerns with the proposal to raise the decibel limits for noise in the downtown area. Clint Skutchan, 719 Great Plains Court, Executive Vice President of the Fort Collins Board of Realtors,requested Council hold a work session on unrecorded duplexes as it is a complex issue and property owners have many unanswered questions that need to be considered. Michael Brown, 13047 Logan Street, Thornton, son of Louis B. Brown, Jr., thanked Council for adding his father's name to the list of street names and recognizing the contributions of his father to the community. Citizen Participation Follow-up Councilmember Ohlson asked to postpone the scheduled work session on the proposed downtown noise standards until a sound test can be held. City Manager Atteberry stated all parties are in support of performing a sound test at the Oxbow Music Venue but the staff recommends that the test performed during the summer season. The item will be moved from the February 24 work session. Councilmember Ohlson asked that the issue of unrecorded duplexes be placed on a work session. Councilmember Troxell stated adding the name "Louis B. Brown" to the list of street names is a great recognition of a man who contributed much to Fort Collins. He supported a work session about unrecorded duplexes. Councilmember Roy asked what expertise is used by staff and Platte River to gather information on emerging technologies and to set the City's policies on electric generation and consumption and conservation. City Manager Atteberry stated any sources of information would be provided to Council. Platte River has issued an request for proposal to identify a consulting team to help with long term vision development and to examine Platte River's management practices to determine 371 January 20, 2009 what could be improved to address some of the emerging energy issues. The Platte River Board has agreed to develop a Climate Action Plan at the request of the Governor's Energy Office. Councilmember Roy asked how many months out of the year an outdoor music venue would be in use. Agenda Review City Manager Atteberry stated there were no changes to the published agenda. Councilmember Ohlson pulled Item 917 Resolution 2009-006 Approving the Execution of an Agreement to Modify andA mend an Intergovernmental Agreement Concerning the Implementation of an "E911" Emergency Telephone Service. CONSENT CALENDAR 6. Consideration and Approval of the Minutes of the January 6, 2009 Regular Meeting_ 7. Second Reading of Ordinance No. 001, 2009, Appropriating Unanticipated Grant Revenue in the General Fund for the Police Services Victim Services Team. The City has received a grant in the amount of$34,000 from the Eighth Judicial District Victims Assistance and Law Enforcement (V.A.L.E.) Board to help fund victim services activities. This Ordinance, unanimously adopted on First Reading on January 6, 2009, appropriates the grant funds. 8. Second Reading of Ordinance No. 002, 2009,Appropriating Proceeds from the Issuance of City of Fort Collins, Colorado, Wastewater Utility Enterprise, Sewer Revenue Refunding Bonds, Series 2009, Scheduled to be Sold the Week of January 20, 2009, In the Maximum Aggregate Principal Amount of$34,000,000 in the Wastewater Utility Fund. This Ordinance,unanimously adopted on First Reading on January 6,2009,appropriates the Wastewater Utility Fund proceeds from bonds issued by Ordinance No. 003, of the Board of the Wastewater Utility Enterprise,for the purpose of funding a major capital improvement project at the Mulberry Reclamation Facility. The improvements including both design and construction of the new facility will total approximately $34 million. 9. Second Reading of Ordinance No. 003, 2009, Amending Section 2-428 of the City Code Expanding the Functions of the Transportation Board to Include the Establishment of a "Bicycle Advisory Committee." This Ordinance, unanimously adopted on First Reading on January 6, 2009, establishes a Bicycle Advisory Committee(BAC). The BAC will be a citizen advisory committee which reports to the City of Fort Collins Transportation Board. BAC members will have interest 372 January 20, 2009 in or knowledge of bicycling related issues. The BAC's role will be to review issues related to bicycling in the areas of engineering, enforcement, education, encouragement, environment, community, and economy, as noted in the 2008 Bicycle Plan. 10. First Reading of Ordinance No 005, 2009, Appropriating Unanticipated Grant Revenue in the General Fund for the Natural Resources Radon Program and Authorizing the Transfer of Matching_Funds. The City has received a $4,051 grant from the Colorado Department of Public Health and Environment for continuing radon education and outreach to encourage radon testing and mitigation through media advertising and low-cost test kit sales. The grant period is from October 1, 2008 through September 30, 2009. 11. First Reading of Ordinance No. 006, 2009, Appropriating Unanticipated Grant Revenue in the General Fund for Continuation of the Restorative Justice RESTORE Program. A grant in the amount of$15,000 has been received from the Bohemian Foundation for salaries associated with the continued operation of the RESTORE Program. The grant period is from December 1, 2008 to November 31, 2009. 12. First Reading of Ordinance No. 007, 2009, Appropriating Revenue in the Downtown Development Authority Debt Service Fund for Payment of Debt Service on Bond Series 2008A for the Year 2009. This Ordinance will appropriate the tax increment revenue in the Downtown Development Authority Debt Service Fund for the payment of debt service for the year 2009 to the City of Fort Collins for the 2008A Taxable Subordinate Tax Increment Revenue Bonds. 13. Items Relating to a Volunteer Handicap Parking Enforcement Program. A. First Reading of Ordinance No. 008, 2009, Relating to Changes in the City of Fort Collins Traffic Code to Implement a Volunteer Handicap Parking Enforcement Program (the "Program"). B. First Reading of Ordinance No.009,2009,Appropriating Prior Year Reserves in the Transportation Services Fund for the Volunteer Handicap Parking Enforcement Program Under the current traffic code, citations for handicap parking space violations may only be written by a police officer or parking services officer who personally observes the violation and citations for handicap parking space violations cannot be delivered by mail. The changes proposed in Ordinance No. 008,2009,will allow citizen volunteers to observe violations of handicap parking spaces, and provide evidence of the violation to a Parking Services enforcement officer. The officer will confirm vehicle ownership information with the Department of Motor Vehicles and issue a citation by mail to the owner of the offending 373 January 20, 2009 vehicle. In Colorado, vehicle owners are prima facie responsible for parking citations, regardless of who was driving the vehicle. Ordinance No. 009,2009,appropriates the funds to implement the Program. 14. First Reading of Ordinance No. 010, 2009, Amending Ordinance No. 058, 2007, Which Amended the Zoning Map of the City of Fort Collins by Changing the Zoning Classification for that Certain Property Known as the Rigden Farm Tract A Rezoning. An error was made in Ordinance No. 058, 2007. Section 2 of that Ordinance stated that the property should not be included in the Residential Neighborhood Sign District. Section 2 should have read that the property was to be included in the Residential Neighborhood Sign District. This Ordinance will correct that error. 15. Resolution 2009-004 Authorizing a Revocable Permit to Don Kehn Construction, Inc. for the Completion of Mining Reclamation Activities on Arapaho Bend Natural Area. Arapaho Bend Natural Area was purchased on January 20, 1995. Prior to City ownership of the Arapaho Bend Natural Area,Kehn operated a sand and gravel mine on a portion of the property under a permit issued by the Colorado Division of Reclamation,Mining and Safety (CDRMS). Mining was completed prior to the City's purchase; however reclamation of the mined area is not complete as required by the CDRMS. Approval of a revocable permit for up to five years gives Kehn access to 6.183 acres of the property to complete the required reclamation activities, which includes the backfilling of approximately one-half acre of gravel pond and revegetation of the site. 16. Resolution 2009-005 Makin Fg indings of Fact and Conclusions Pertaining to the Appeal of the Water Board's August 28, 2008 Denial of the Floodplain Variance for a School in the Poudre River 500-year Floodllain. On September 30, 2008, an amended Notice of Appeal was filed seeking to overturn the August 28, 2008 decision of the Water Board denying a floodplain variance for a school in the Poudre River 500-year floodplain at 720-750 East Vine Drive. On January 6, 2009, City Council voted to remand the variance request back to the Water Board for further consideration. In order to complete the record regarding this appeal, the Council should adopt a Resolution making findings of fact and finalizing its decision on the appeal. 17. Resolution 2009-006 Approving the Execution of an Agreement to Modify and Amend an Intergovernmental Agreement Concemin the he Implementation of an "E911" Emergency Telephone Service. The City of Fort Collins is a party to an Intergovernmental Agreement ("IGA") dated November 14, 1990,which established a separate legal entity called the Larimer Emergency Telephone Authority("LETA"). LETA is responsible for administering the operation of the 374 January 20, 2009 emergency telephone service program (911) and defining the manner in which each of the parties will participate in the authority. On June 4, 2008, the LETA Board of Directors approved an agreement to modify and amend the original IGA. This Resolution approves the execution of the Agreement. 18. Resolution 2009-007 Updating the List of Names for Arterial and Collector Streets. Section 24-91 of the City Code requires that all new arterials and collectors be named from the official list of street names approved by the City Council. The list is adopted by the City Council and names can be added only by resolution of the City Council. This Resolution represents an update to the official list of eligible street names in order to add four new names and delete three names that have been selected since the last update in February of 2006. This is not a request to name or rename a specific street. This action represents a clean-up of the official list in order to keep name selection opportunities as current as possible. ***END CONSENT*** Ordinances on Second Reading were read by title by City Clerk Krajicek. 7. Second Reading of Ordinance No. 001, 2009, Appropriating Unanticipated Grant Revenue in the General Fund for the Police Services Victim Services Team. 8. Second Reading of Ordinance No. 002, 2009, Appropriating Proceeds from the Issuance of City of Fort Collins, Colorado, Wastewater Utility Enterprise, Sewer Revenue Refunding Bonds, Series 2009, Scheduled to be Sold the Week of January 20, 2009, In the Maximum Aggregate Principal Amount of$34,000,000 in the Wastewater Utility Fund. 9. Second Reading of Ordinance No. 003, 2009, Amending Section 2-428 of the City Code Expanding the Functions of the Transportation Board to Include the Establishment of a "Bicycle Advisory Committee." 23. Second Reading of Ordinance No.004,2009,Adopting the 2009 Classified Employees' Pay Plan. Ordinances on First Reading were read by title by City Clerk Krajicek. 10. First Reading of Ordinance No. 005, 2009, Appropriating Unanticipated Grant Revenue in the General Fund for the Natural Resources Radon Program and Authorizing the Transfer of Matching Funds. 11. First Reading of Ordinance No. 006, 2009, Appropriating Unanticipated Grant Revenue in the General Fund for Continuation of the Restorative Justice RESTORE Program. 375 January 20, 2009 12. First Reading of Ordinance No. 007, 2009, Appropriating Revenue in the Downtown Development Authority Debt Service Fund for Payment of Debt Service on Bond Series 2008A for the Year 2009. 13. A. First Reading of Ordinance No. 008, 2009, Relating to Changes in the City of Fort Collins Traffic Code to Implement a Volunteer Handicap Parking Enforcement Program (the "Program"). B. First Reading of Ordinance No. 009,2009,Appropriating Prior Year Reserves in the Transportation Services Fund for the Volunteer Handicap Parking Enforcement Program. 14. First Reading of Ordinance No. 010, 2009, Amending Ordinance No. 058, 2007, Which Amended the Zoning Map of the City of Fort Collins by Changing the Zoning Classification for that Certain Property Known as the Rigden Farm Tract A Rezoning. 22. A. First Reading of Ordinance No. 011, 2009, Approving an Intergovernmental Agreement Between Timnath and Fort Collins Regarding Growth Management Areas and Associated Issues Authorizing Disposition of Property as Provided Therein. B. First Reading of Ordinance No. 012,2009,Appropriating$1.2 Million in Prior Year Reserves in the Stormwater Fund and Self-Insurance Fund and Irrevocably Pledging an Additional $800,000 in Undesignated Reserves to be Contributed to the Town of Timnath, Colorado for Improvements to the Boxelder Overflow Project. Councilmember Roy made a motion, seconded by Councilmember Manvel to adopt and approve all items not withdrawn from the Consent Calendar. Yeas:Hutchinson,Manvel,Ohlson,Poppaw,Roy and Troxell. Nays: none. THE MOTION CARRIED. Consent Calendar Follow-up Councilmember Roy thanked Vivian Armendariz and Susan Williams for their involvement and input into Item 413 Items Relating to a Volunteer Handicap Parking Enforcement Program. Staff Reports City Manager Atteberry stated a large power outage occurred earlier in the day that affected about 10,000 customers and Platte River is investigating the disruption of service. He noted the December sales tax numbers were up 1/2% from December 2007. 376 January 20, 2009 Items Relating to an Intergovernmental Agreement Between the City of Fort Collins and the Town of Timnath, Adopted on First Reading The following is staffs memorandum on this item. "FINANCIAL IMPACT If the IGA is approved by both Fort Collins and Timnath, Fort Collins would contribute up to S2,000,000 from the Utilities Stormwater fund and other sources for improvements to the Boxelder Overflow Project. In addition, Fort Collins would receive approximately 51,500,000 if Timnath elects to acquire the Vangbo property from the Natural Areas fund. Various indirect impacts also would occur. Various indirect impacts also would occur due to the fact that certain properties currently within the Fort Collins GMA east of I-25 would become part of the Timnath GMA under the Agreement and those properties would therefore not become part of Fort Collins'tax base. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 011, 2009, Approving an Intergovernmental Agreement Between Timnath and Fort Collins Regarding Growth Management Areas and Associated Issues Authorizing Disposition of Property as Provided Therein. B. First Reading of Ordinance No. 012, 2009, Appropriating 51.2 Million in Prior Year Reserves in the Stormwater Fund and Self-Insurance Fund and Irrevocably Pledging an Additional S800,000 in Undesignated Reserves to be Contributed to the Town of Timnath, Colorado for Improvements to the Boxelder Overflow Project. Fort Collins and Timnath have negotiated a proposed intergovernmental agreement(IGA)to resolve certain differences that have arisen between them regarding a variety of planning and growth management issues. The IGA is intended to firmly establish the Growth Management Areas(GMA) for each municipality. In addition, the IGA authorizes the conveyance ofan easement on Arapahoe Bend Natural Area for a portion of the Boxelder Overflow Project, and the potential sale of the Vangbo Natural Areas property to Timnath. It also authorizes a contribution by Fort Collins to Timnath's Boxelder Overflow Project. The IGA terminates overlapping annexations by Timnath and Fort Collins in the vicinity of Harmony and I-25. Furthermore, the IGA makes clear that the Riverwalkproperty, at the southwest corner ofI-25 and Harmony will stay within the Fort Collins' GMA. BACKGROUND Over the last few years, Fort Collins and Timnath have had both major and minor disagreements about their respective GAM s, community separators, revenue sharing,flood control, and other issues. Those issues came to a head in the fall of 2008, when Timnath began the process to annex a property known as Riverwalk, located at the southwest corner of I-25 and Harmony. The Riverwalk property has been part of Fort Collins' GMA since 1980. In reaction to Timnath's annexation process, Fort Collins'created an overlapping annexation on Harmony Road intended 377 January 20, 2009 to prevent Timnath from using Harmony as a flagpole to annex the Riverwalk property, thereby creating the opportunity for additional Timnath annexations of properties within the Fort Collins GMA. At the same time, on October 8 2008, Fort Collins filed an objection and request for mediation pursuant to Section 24-32-3209(w.3)(b) of the Colorado Revised Statutes. Fort Collins and Timnath conducted mediation sessions on December 1, 2008 and December 15, 2008. Fort Collins' interest were represented by Mayor Doug Hutchinson, Mayor Pro Tem Kelly Ohlson, City Manager Darin Atteberry and City Attorney Steve Roy. The outcome ofthese successful negotiations is the attached Intergovernmental Agreement (1GA). The following is a summary of the most significant provisions of the IGA. Growth Management Areas. Generally, I-25 will constitute the boundary between the Fort Collins and Timnath GMA's. However, Fort Collins will retain in its GAM five properties east of I-25 that are located near the northeast and southeast corners of the intersection of I-25 and Colorado Highway 14 (Mulberry). The Timnath GMA will be located exclusively on the east side oft-25. Neither party will annexproperty within the other parry's GMA, nor will either party acquire community separators, natural areas, community parks, recreation areas or open space within the other part's GALA without the other parry's consent, except to the extent that such acquisitions are incidental to the acquisition of property for other legitimate municipal purposes such as rights-of-way and storm drainage facilities, in which case each party will attempt to note the other party of such acquisitions. Neither party will annex the 1-25 right-of-way except that Fort Collins may annex those portions of I-25 that are or will be bordered on both sides by property within its city limits and except that Timnath may annex the former frontage road at the southeast corner of I-25 and Harmony Road. Neither party will amend the contiguous boundaries.oftheir respective GMA 's without the written consent of the other party. Riverwalk Annexation. The Riverwalk Property will remain in the Fort Collins GMA. Upon withdrawal or denial of the petition for the Riverwalk Annexation, Fort Collins and Timnath will stipulate to the dismissal ofthepending court action related to that annexation. Fort Collins may then complete the annexation of Harmony Road up to the west access ramps ofI-25, and Timnath may then annex Harmony Road up to the east access ramps of 1-25. 378 January 20, 2009 Future Cooperative Efforts. The parties will work cooperatively to study, design and plan a proposed pedestrian and transit connection between the Riverwalk Project and the property on the opposite side of I-25. However, no commitment has been made by either party to fund or construct the connection. Unless a subsequent agreement is reached with regard to revenue sharing or plan review, neither will occur except for such review as may be required by state law or unless either party invites such review. Conservation Easements. The parties will attempt to devise a mechanism for jointly managing the conservation easements that Fort Collins presently owns on three properties in the future Timnath GMA. Option to Purchase the Vangbo Property. During the twelve months following the execution of the agreement, Timnath will have the option of either proposing a use for the Vangbo property that is acceptable to Fort Collins or exercising an option to purchase the property for the amount that Fort Collins paid for the property in 2005 plus interest at the same rate that the money used to acquire the property would have earned if it had remained in the City's Natural Areas Fund, which rate will be capped at four percent. If Timnath exercises its option to purchase the Vangbo property within the next twelve months, it will have an additional twelve months to close the transaction. Boxelder Overflow Project. Timnath is in the process of constructing a major storm drainage project, the cost of which is expected to exceed$4 million. The purpose of the project is to manage overflows from Boxelder Creek within the future Timnath GMA and the Town of Timnath and to reduce the Boxelder Creek floodplain. Timnath contends that the need for this project is driven by two factors to which Fort Collins has contributed over the years. The first had to do with the construction ofI--25 in the 1960's, which entailed the installation oftwo box culverts that did not adequately handle the Boxelder Creek overflows, resulting in more of those flows remaining on the east side of I-25. In the 1980's, at Fort Collins' request, the Colorado Department of Transportation (CDOT) installed two additional box culverts so that a greater portion of the overflows could be transmitted west of I-25. However, Fort Collins also requested that those two additional culverts not be opened until Fort Collins had constructed additional storm water facilities west of I-25 to mitigate any damage that might be caused by those flows. Those improvements have not been constructed. Instead, improvements to be constructed within the next five to ten years by the recentlyformed Boxelder Basin Regional Stormwater Authority will contain 379 January 20, 2009 those flows upstream from Timnath. In the interim, Timnath believes that it needs to construct its project in order to more expeditiously deal with the situation. The second way in which Timnath believes that it has been prejudiced by Fort Collins'actions with regard to this issue is that Fort Collins adopted, in 1999, new rainfall standards that ultimately resulted in'the delineation of a broader regulatory floodplain in which development was either restricted or could not occur. This affected Timnath when Lorimer County and the Federal Emergency Management Agency(FEMA) ultimately adopted the same rainfall standards. Timnath believes that it was not adequately informed of, or involved in, that decision. Given these considerations, Fort Collins has agreed to bear one-half of the cost of the Timnath project, with its share to be capped at a maximum of$2 million. That amount would be paid over a four year period, with $1.2 million to be appropriated when the agreement is approved. The additional amount of$800,000 would be irrevocably pledged for this purpose by the Council and would be paid to Timnath at the rate of$200,000 per year over four years. All payments would be on a reimbursement basis. In consideration of Fort Collins'payments, Timnath has agreed to release any claims or causes of action it might have against the City with regard to the Boxelder Creek stormwater and floodplain issues. It has also agreed to not request that CDOT take any action with regard to the storm drainage facilities under 1-25 that might result in the opening of two box culverts under 1-25 that are currently closed, and to support Fort Collins in opposing the opening of the culverts fa request to open them is made to CDOT by a third party. In addition to making these payments, Fort Collins has agreed to grant Timnath an easement through a portion of its Arapaho Bends Natural Area to accommodate the project. As part of the easement agreement, Timnath will be required to minimize the size ofthe easements and impacts on the natural area, and to restore the natural area to its pre-construction condition. Finally, Fort Collins has agreed to support Timnath's FEMA application for the project and to also support the project when it is reviewed by the Larimer County Flood Review Board Fort Collins'Stormwater Utility staffwill be afforded an opportunity to review and comment on the engineering cost estimates for the project. However, Timnath will retain sole control and decision- making authority with regard to all aspects of the project. Conclusion Staff believes that the provisions of the IGA equitably resolve the current disputes between the parties and that by successfully establishing firm land-use planning boundaries, the City and Timnath both avoid the possibility of long-term complex, expensive, and uncertain battles over each other's respective GMA 'sand municipal boundaries. The IGA also lays the groundworkfor a long- term working relationship between the two municipalities and offers the potential for additional collaboration and cooperation. " 380 January 20, 2009 City Manager Atteberry stated the agreement that was reached during mediation resolved some longstanding issues with Timnath and will help with regional cooperation. The agreement addresses issues include growth management areas,the Riverwalk project, future cooperative efforts between Timnath and the City, conservation easements, the potential future of the Vangbo property and the Boxelder Overflow Project. Patrick Brady, 1025 Montview Drive,stated approval of the IGA will improve regional cooperation and he supported adoption of the IGA. He did not support adoption of the appropriation ordinance as those funds should be spent on promoting development within Fort Collins. Becky Davidson, Timnath Town Manager, thanked Council for the work that has been done to develop the IGA and will greatly improve relations between Timnath and Fort Collins. Mayor Hutchinson noted the issues addressed in the IGA are very complex and resolving the Boxelder Creek stormwater problems saved millions of dollars of expense for Fort Collins. Appropriating stormwater funds for the Boxelder Overflow Project will benefit both Timnath and Fort Collins. City Manager Atteberry stated costs have been saved by resolving the issues with Timnath and not continuing the disputes. Councilmember Roy made a motion, seconded by Councilmember Manvel,to adopt Ordinance No. 011, 2009 on First Reading. Councilmember Poppaw thanked the City's team for the hard work done to create the IGA and better relationships with Timnath. Councilmember Troxell stated the City should be proactive in developing regional cooperation and needs to give every proposed development along I-25 a fair hearing. Councilmember Manvel noted when a property owner abuts two municipalities, the owner can choose which municipality to be annexed into, if the municipality wants the property. This problem could arise again along I-25 where properties abut two municipality limits. Councilmember Roy thanked the City's team and the Timnath team for the exceptional effort put forth in reaching the agreement. Mayor Hutchinson stated some of the issues that have been resolved with the agreement date back to the construction of I-25 and resolving the issues is a great accomplishment for both communities. The vote on the motion was as follows: Yeas: Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none. THE MOTION CARRIED. 381 January 20, 2009 Councilmember Roy made a motion,seconded by Councilmember Manvel,to adopt Ordinance No. 012,2009 on First Reading. Yeas: Hutchinson,Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none. THE MOTION CARRIED. City Manager Atteberry noted Jay Stoner, developer of the Riverwalk Project, will request a pre- application hearing at the first possible date. Ordinance No. 004, 2009, Adopting the 2009 Classified Employees' Pay Plan. Adopted on Second Reading The following is staffs memorandum on this item. "EXECUTIVE SUMMARY Ordinance No. 004, 2009, adopted on First Reading on January 13, 2009 by a vote of 4-2 (Nays: Poppaw, Troxell), adopts the 2009 classified employees'pay plan. The 2009 Pay Plan establishes a structure for employee compensation. It is the framework that sets the minimum and maximum payfor Citypositions. Fundingfor the 2009 Classified Employees'PayPlan is included in the 2009 Adopted City Budget, as amended " Amy Sharkey, Compensation and Benefits Manager, stated the 2009 Pay Plan sets the pay ranges for employees. The minimum is the lowest an employee will be paid for the job in a particular pay range and the maximum is the highest an employee will be paid for a job in a particular pay range. It is a guideline to implement pay increases that are approved by Council through the Personal Services budget. The pay increase that employees receive will be based on the 2008 performance evaluation. A performance-based pay plan was introduced in 2008 and within the plan is a rating scale that employees are rated against. Any employee that falls in the"below City standards"rating category will not receive a pay increase in 2009. The pay increases are based on the employee's performance and where the employee's pay falls in relation to the market. Councilmember Troxell noted a 4% increase, on average, was added to the ordinance on First Reading. He expressed concern that 300 City employees are below the average actual of their peers and he asked if any of those employees who are paid well below their average market would receive a pay increase that will bring them to the average of their pay range. City Manager Atteberry stated the employees who are below the range and earn a "2" or"3" rating will be brought to at least the minimum of their range. Some positions are below"average market" which makes them difficult to fill. Those positions will be ranked as premium positions and efforts will be made to bring them up to market average in order to attractive viable candidates to the positions. A 4%budget will not allow the City to fully implement pay for performance and market adjustments. City Attorney Roy stated new language has been added to the Ordinance for Second Reading. The language in Section 3 will be replaced with the following language: "that the City Manager shall fix the compensation levels of all classified employees within the pay levels established in the Plan 382 January 20, 2009 except to the extent that the City Manager determines, due to performance or other extraordinary circumstances, that the pay level of a particular employee should remain below the minimum or be fixed above the maximum for that employee's job title." Councilmember Manvel noted the new language gives the City Manager some flexibility within the Pay Plan to address extraordinary inequities. Mayor Hutchinson stated many City employees are behind the market average as a result of pay freezes several years ago. The new language in the Ordinance will allow the City Manager to follow the pay ranges and also make exceptions to the Plan in order to bring some of the job positions that are paid below market. Councilmember Roy made a motion,seconded by Councilmember Manvel,to adopt Ordinance No. 004, 2009 on Second Reading, as amended. Councilmember Poppaw stated greater caution is needed in these hard economic times and approving a 4% raise is not a prudent decision. Councilmember Troxell stated the fact that 300 employees are paid well below the average market needs to be addressed. Fiscal responsibility is important and if the City does experience fiscal . difficulties and budget cuts need to be made, priorities must be set to determine what areas or programs are not performing along with the positions that belong to that area. Mayor Hutchinson stated the Pay Plan will enable the City to implement pay for performance but does recognize the uncertainties of the present economic situation. Council did not approve the 5.4% requested by the City Manager to implement pay for performance and bring all employees who are below their market average at least to the minimum of their range but has approved the 4%increase that is already included in the 2009 budget and will fund pay for performance. The vote on the motion was as follows: Yeas: Hutchinson,Manvel,Ohlson,Roy and Troxell. Nays: Poppaw. THE MOTION CARRIED. Resolution 2009-006 Approving the Execution of an Agreement to Modify and Amend an Intergovernmental Agreement Concerning the Implementation of an "E911" Emergency Telephone Service, Adopted The following is staffs memorandum on this item. "EXECUTIVE SUMMARY The Ciry ofFort Collins is a parry to an Intergovernmental Agreement(IGA ')dated November 14, 1990, which established a separate legal entity called the Larimer Emergency Telephone Authority 383 January 20, 2009 ("LETA'). LETA is responsible.for administering the operation ofthe emergency telephone service program(911)and defining the manner in which each of the parties will participate in the authority. On June 4, 2008, the LETA Board of Directors approved an agreement to modify and amend the original IGA. This Resolution approves the execution of the Agreement. BACKGROUND On June 4, 2008, the LETA Board of Directors approved an agreement to modify and amend the original IGA. The proposed modification includes the following: 1. LETA will continue to be governed by a seven(7)member Board of Directors, including one representative each from Larimer County, the City of Fort Collins, City of Loveland, the hospital districts of Larimer County, the fire protection districts of Larimer County and two (2) members representing the towns of Berthoud, Estes Park, Johnstown, Timnath, Wellington, Windsor and Colorado State University. The City Council of Fort Collins shall appoint the Fort Collins representative and the City Council of Loveland shall appoint the Loveland Representative. The Board ofCounty Commissioners shall continue to appoint the Lorimer County representative as well as the fire and hospital district representatives and the small town representatives, upon nomination by the LETA Board of Directors after consultation with the towns, the districts and Colorado State University. Term ofservice on the LETA Board shall remain at two (2)years but the existing term limit provisions have been removed, allowing board members to serve multiple and consecutive terms. 2. LETA 's powers shall essentially remain the same, but those powers are more clearly enumerated. The most significant change in this regard is the delegation to the LETA Board of Directors ofthe power to establish the annual surcharge to be collected on hardwire and wirelessphones inLarimer County. Presently, the County Commissioners and the governing bodies ofthe cities and towns have been asked to approve this surcharge. Even though the LETA surcharge which began at$.50 in 1990 and has not been changed since its reduction to S .45 in 1995, the process of having all of the governing bodies annually approve the surcharge has been cumbersome and time consuming. Having the LETA Board set the .surcharge should be much more efficient. It is important to note that all the members ofthe LETA Board remain directly responsible to the constituencies which they represent. In other words, while their respective governing bodies may no longer be voting on the surcharge, they retain control over their appointed representatives on the LETA Board 3. The approval of three-quarters ofthe signatories replaces the one hundred percent(100%) requirement of the existing IGA. This includes termination of the Authority by mutual agreement,future amendments to the IGA and the assignment and delegation of rights and duties under the IGA. 4. The new IGA clarifies that the LETA Board of Directors and LETA officers and employees are afforded the benefits of Colorado law with regard to governmental immunity. " 384 January 20, 2009 City Attorney Roy stated two changes have been made to the resolution. The first bullet has been deleted and two bullets have been added to the second Whereas clause so it now reads: "...recognize Colorado State University as having the same status as the towns that are signatories to the E911 Agreement for the purposes of representation on the LETA Board;" and "eliminate the current requirement that the E911 surcharge be annually approved by Larimer County and the cities and towns that are signatories and instead authorize the LETA Board of Directors to approve the amount of the surcharge within the statutory limitations." Councilmember Ohlson asked why the LETA Board, which is an appointed Board, should be allowed to approve the amount of the surcharge without approval from participating municipalities. The Board is not elected and is not held accountable to the citizens. City Manager Atteberry stated the City has had representation on the LETA Board since it began and the only time Council hears from LETA is when it is seeking a rate increase. Justin Smith, Larimer County representative and LETA Board Chairperson, stated LETA is composed of 25 different entities,including all cities and towns in Larimer County, fire districts, hospital districts and Larimer County itself. It provides an annual report to Council and establishes the surcharge on all telephone devices to provide the emergency service. It is difficult for the Board to determine the amount of surcharge needed to provide adequate 911 service and then take the proposed surcharge to all the governing bodies in a timely fashion to be approved and put into place for collection of the fees. This LETA Board is the only one out of 67 boards in the state of Colorado that is required to gain approval of fees from the participating entities. Allowing the Board the ability to set the fee will enable it to respond quickly to changes that can arise. LETA has consistently lowered its surcharge over the years and does not anticipate raising its fees in the near future. It takes about 6 months to go through the fee process just to keep the fee the same rate. Council appoints a representative to the LETA Board that answers to Council which provides a measure of control. Councilmember Roy asked how many Board members were on the LETA Board and why the requirement was being changed from 100%to 75% of approval from the signatories. Smith stated the Board has 25 members. LETA carries a risk if any one player does not respond or chooses to go a different direction and puts the Authority at risk. 11 of the members are fire authorities which are volunteer groups who only meet once a month or once a quarter and it is difficult to get a response from them on a time-sensitive basis. Changing the approval percentage from 100% to 75% will increase the ability of the Board to function in a more timely fashion. Councilmember Roy asked if Boardmembers will be allowed to serve multiple terms with the removal of the two term limit. Smith stated LETA contains much technical material and it can take 2-3 years for a Boardmember to learn what the Authority does and to provide good representation. Allowing more terms will provide greater continuity and better decision making. Each entity has the ability to remove its representative if the representative does not perform. Councilmember Roy asked what new technologies will be implemented to provide 911 coverage for areas in the County that currently do not receive that service. Smith stated difficulties in communication are located primarily in the northwest part of the County and a transition is underway to convert to a better radio system, but that change does not involve using LETA funds. 385 January 20, 2009 Councilmember Troxell stated his concern that a possible conflict might exist for him because the revised resolution adds CSU to the E911 Agreement and he works for CSU. He did not believe he was materially impacted by the addition of CSU. He asked why CSU was inserted into the resolution. City Attorney Roy stated Councilmember Manvel had requested a"Whereas"clause to call attention to the addition of CSU and the change in the method of approving the surcharge,which led to the changes made to the resolution. The change in the status of CSU does not create a conflict of interest for Councilmember Troxell because no substantial benefit or detriment will occur as a result of this action. Councilmember Manvel made a motion, seconded by Councilmember Roy, to adopt Resolution 2009-006, as amended. Councilmember Manvel stated his concern with eliminating the requirement that each entity approve the surcharge set by the LETA Board but there are statutory limitations in place that provide a check on any increase in the fee that might be approved. The vote on the motion was as follows: Yeas: Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none. ("Secretary's note: Troxell abstained, which, by Charter, counts as a vote in the affirmative.) THE MOTION CARRIED. Adjournment Councilmember Ohlson made a motion, seconded by Councilmember Roy, to adjourn the meeting to 6:00 p.m., January 27, 2009 so Council can consider conducting additional business, including a possible executive session. Yeas: Hutchinson,Manvel,Ohlson,Poppaw,Roy and Troxell. Nays: none. THE MOTION CARRIED. The meeting adjourned at 8:00 p.m. Mayor ATTEST: City Clerk 386 January 27, 2009 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council-Manager Form of Government Adjourned Meeting- 6:00 p.m. An adjourned meeting of the Council of the City of Fort Collins was held on Tuesday, January 27, 2009, at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered by the following Councilmembers: Hutchinson, Manvel Ohlson, Poppaw, Roy and Troxell. (Councilmember Brown has been excused from Council meetings from October 28, 2008 through April 7, 2009, per Resolution 2008-104.) Staff Members Present: Atteberry, Harris, Roy. Executive Session Authorized Councilmember Ohlson made a motion, seconded by Councilmember Roy, to go into executive session,as permitted under Section 2-31(a)(2)of the City Code for the purpose of meeting with the City Attorney regarding potential litigation and to discuss related legal issues. Yeas: Hutchinson Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none. THE MOTION CARRIED. ("Secretary's note: The Council went into executive session at this point in the meeting.) Adjournment At the conclusion of the executive session, the meeting was adjourned at 7:25 p.m. Mayor ATTEST: Chief Deputy City Clerk 387