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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/19/2009 - CONSIDERATION AND APPROVAL OF THE MINUTES OF THE A ITEM NUMBER: 6 AGENDA ITEM SUMMARY DATE: May 19, 2009 FORT COLLINS CITY COUNCIL STAFF: Wanda Krajicek SUBJECT Consideration and Approval of the Minutes of the April 14,2009 Special Meeting and the April 21, 2009 Regular Meeting. April 14, 2009 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council-Manager Form of Government Special Meeting- 6:00 p.m. A special meeting of the Council of the City of Fort Collins was held on Tuesday, April 14, 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 Councilmember:Hutchinson,Kottwitz,Manvel,Ohlson,Poppaw,Roy and Troxell. Staff Members Present: Atteberry, Krajicek, Roy. City Clerk Krajicek administered the oaths of office separately to newly-elected Councilmembers Ben Manvel, Aislinn Kottwitz and Kelly Ohlson and to newly-elected Mayor Doug Hutchinson. Mayor Hutchinson stated the Council would elect a Mayor Pro Tem to act as Mayor in the absence or disability of the Mayor. Councilmember Manvel made a motion, seconded by Councilmember Roy, to nominate Councilmember Ohlson as Mayor Pro Tem. Councilmember Manvel noted Councilmember Ohlson has a long history of involvement in City issues and his experience is invaluable for City leadership. Councilmember Roy stated Councilmember Ohlson has served the City both as Councilmember and Mayor for a number of years. He is devoted to making Fort Collins a better place to live. Mayor Hutchinson stated it is traditional to choose the Mayor Pro Tem to represent the diversity of the Council. The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, Manvel, Poppaw, Roy and Troxell. Nays: None. THE MOTION CARRIED. Other Business Councilmember Troxell asked for a delay in Council consideration of trash services regulatory changes that are currently scheduled for the May 5 regular meeting until the process of gaining input from the local trash haulers is completed. City Manager Atteberry stated staff plans to bring a resolution for Council consideration at the May 5 meeting that will authorize a study for a pilot trash district. The trash haulers will have concerns with any study or proposed changes and it is time to move forward with this issue and he did not want to remove the item from the May 5 agenda. Mayor Hutchinson stated the Leadership Team will make the decision about this item on Monday,April 20. 71 1pril 14, 2009 Adjournment The meeting adjourned at 6:15 p.m. Mayor ATTEST: City Clerk 72 April 21, 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, April 21 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 Councilmember: Hutchinson, Kottwitz, Ohlson, Poppaw, Roy, and Troxell. Councilmember Absent: Manvel Staff Members Present: Atteberry, Krajicek, Roy. Citizen Participation Jennifer Lowe, 1129 Bent Tree Court, read a resolution declaring Fort Collins is a"hate free'zone and asked Council to adopt a similar resolution that reaffirms the City's commitment to protecting and honoring diversity within the city. Eric Sutherland, 631 LaPorte, asked Council not to consider the Electric Service Code change that is scheduled for Council consideration at a later date. The State legislature has mandated that the City adopt minimal requirements for net metering and Council should have already taken action on this item instead of delaying it for so long. Jack Daniels, 172 North College, thanked Transfort for its excellent service and asked if Route 19 could stop at the Senior Center instead of just on Shields Street. Bob Pickering,633 Langdale Drive,presented a local economic stimulus proposal that would waive pen-nit fees for home improvement to encourage residents to replace inefficient household appliances. Kalin Logan, 1200 Matuka Court, asked if Transfort buses could be operated for longer hours and that power wheelchairs be allowed to be operated in bike lanes. Mike Devereaux, 2150 Main Marian Court, requested the City allow power wheelchairs to be operated in bike lanes. Cheryl Beckett, 1951 Adriel Drive, encouraged Council to consider adoption of a resolution declaring Fort Collins as "hate free' zone. Cheryl Distaso, 135 South Sunset, stated City Code requires wheelchair users to use sidewalks whenever there is an available sidewalk, but "available' is not defined. She asked Council to consider an ordinance that would clarify"available' sidewalk and would allow power chair users 73 April21, 2009 to ride in bike lanes, when they deem it safer than using the"available' sidewalk. She encouraged Council to adopt a resolution declaring Fort Collins a "hate free' zone. Carrie Ann Gillis, 8020 Park Hill Drive, stated the economic downturn has cost the City S500,000 in loss of sales and use tax. Council must be business friendly, seeking primary jobs and retaining jobs to improve the economy of the area. Council should immediately schedule a discussion of transportation and economic health issues. Citizen Participation Follow-up Mayor Hutchinson asked for direction on the proposed "hate free' zone resolution. City Attorney Roy stated his staff is preparing a resolution addressing this issue. The issue is a sensitive one because it involves the rights of free speech as well as Council's desire to create a community where a civil dialogue can occur about controversial issues where no one feels personally threatened or intimidated. A state law exists that addresses bias motivated crimes and a local City ordinance prohibits the distribution of flyers by attaching them to vehicles without the owner's permission. The resolution will be ready for Council consideration in the near future. Councilmember Roy asked if Transfort Route 19 could be adjusted to accommodate the request to stop at the Senior Center. He asked what other communities are doing concerning the issue of power wheel chairs in bike lanes. City Manager Atteberry stated staff has examined this issue for several months and has concluded allowing power wheelchairs to travel in bike lanes is not the best solution. Wheelchairs may use the bike lane when a sidewalk is not available but staff does not recommend changing the current restrictions for safety reasons. He supported Council consideration of a resolution declaring Fort Collins a "hate free" zone. Councilmember Poppaw stated power wheelchair users should be given the option of using bike lanes if they believe it is unsafe to use their chairs on an uneven sidewalk. Councilmember Troxell stated Fort Collins has decreased tax revenues and he suggested staff consider Mr. Pickering's local economic stimulus proposal as a creative way to increase tax revenue and decrease the wastestream. He asked what the City is doing to reduce expenditure with the decrease in sales tax revenues. City Manager Atteberry stated the City has been working diligently since 2002 to find ways to reduce expenditures. The City has experienced significant reductions in its revenue streams,especially in the transportation and building services budgets. Eliminating fees now would be counterproductive. The City has a hiring freeze in place and has eliminated 106 positions in the past 4 years. Councilmember Poppaw noted the Mayor and City Manager seek input from businesses on a regular basis. She asked for comparison to other communities regarding revenues and expenditures and the financial impact of Mr. Pickering"s proposal. City Manager Atteberry stated he could not recommend any suspension of building permit fees when the revenues in that area are down 54%. 74 April21, 2009 Agenda Review City Manager Atteberry stated there were no changes to the published agenda. CONSENT CALENDAR 6. Consideration and Approval of the Minutes of the March 24. 2009 Adjourned Meeting. 7. Second Reading of Ordinance No. 031, 2009, Authorizing the Conveyance to Urban Development Partners, LLC of a Non-Exclusive Drainage Easement and a Non-Exclusive Maintenance Access Easement on the City Owned Gustav Swanson Natural Area Property. Urban Development Partners,LLC is proposing to build an industrial/office development on approximately 7.6 acres situated on the north and south sides of Vine Drive, approximately 1/4 mile east of College Avenue. The portion on the south side of Vine Drive is located at 213 East Vine Drive and is adjacent to the Gustav Swanson Natural Area. This Ordinance, unanimously adopted on First Reading on March 24,2009,authorizes storm drainage related easements on the Gustav Swanson Natural Area. 8. Second Reading of Ordinance No. 032, 2009, Authorizing the Use of a Portion of Bernard Ranch as Match For a Neotropical Migratory Bird Conservation Act Grant Administered by the U.S. Fish and Wildlife Service. This Ordinance, unanimously adopted on First Reading on March 24, 2009, authorizes the City to use a 440 acre portion of the Bernard Ranch, an 880 acre property under contract to be purchased by the City before the end of March 2009, as match toward a Neotropical Migratory Bird Conservation Act grant. By using the City's previous investment in the Bernard Ranch, a local organization, the Rocky Mountain Bird Observatory, will receive $244,351 from the U.S. Fish and Wildlife Service to fund bird research within the Laramie Foothills Mountains to Plains Project,the Shortgrass Prairie Bird Conservation Region and in the Chihuahuan Desert of Mexico. Since First Reading, the legal description of the area to be used for the Project match has been refined to include those portions of the Ranch that have been specifically identified for the Project. 9. First Reading of Ordinance No.033,2009,Transferring Existing Appropriations in the Street Oversiziml,Fund into the Capital Projects Fund for the Drake Road Improvements, Taft Hill to Overland Trail Project. There are three parcels on the south side of Drake Road between Taft Hill and Overland Trail that have not developed, leaving a constriction which will not allow Drake Road to function as a four lane arterial street. The last subdivision improvement was completed in 1994. Traffic volumes have been increasing on this important east/west arterial. Staff has been 75 April21, 2009 acquiring right-of-way for the last three years in conjunction with electric utility easements needed to underground overhead power lines. Utility work has been completed and staff believes it is time to make the final roadway improvements prior to a scheduled maintenance overlay later this year. These improvements will complete the enlargement of Drake Road to a four lane arterial roadway from Taft Hill Road to Overland Trail. 10. First Readinn_ofOrdinance No.034.2009.Appropriating Proceeds from the Issuance ofCity of Fort Collins Water Utility Enterprise, Water Revenue Refunding Bonds, Series 2009, in the Maximum Aggregate Principal Amount of$8,500,000. After the regular Council meeting, the Board of the Water Utility Enterprise will consider an Ordinance which authorizes the issuance of City of Fort Collins Colorado, Water Utility Enterprise, Water Revenue Refunding Bonds, Series 2009, in the Maximum Aggregate Principal Amount of$8,500,000. The Bonds will be issued to refund,pay and discharge all of the outstanding Water Revenue Refunding Bonds and Improvement Bonds, Series 1998. This Ordinance will appropriate in the Water Utility Fund proceeds from bonds proposed to be issued in Ordinance No.007,of the Board'of the Water Utility Enterprise, for the purpose of refunding,paying and discharging all of the Enterprise's outstanding Revenue Refunding Bonds and Improvement Bonds, Series 1998. 11. First Reading of Ordinance No. 035,2009, Authorizing the Issuance and Sale of the City o Fort Collins, Colorado, Revenue Bond (Larimer Center for Mental Health Project) Series 2009, in a Total Principal Amount Not to Exceed $1,400,0ft Making Determinations as to Sufficiency of Revenues and as to Other Matters Related to the Project and Approving the Form and Authorizing the Execution of Certain Documents Relating Thereto. This Ordinance would authorize the issuance of revenue bonds in an amount not to exceed $1,400,000 of 501(c)(3) for the Larimer Center for Mental Health project (a non-profit corporation). Under State Statute,the City can utilize its tax exempt status and issue revenue bonds for financing a project that will induce a non-profit corporation to locate, expand or remain within its boundaries. From a financial standpoint, the issuance of tax exempt revenue as compared to conventional financing will result in cashflow savings of$315,000 of present value savings of$194,000 over the life of the bonds. These bonds are not an obligation of the City of Fort Collins. 12. First Reading of Ordinance No. 036, 2009, Amending Various Provisions of the City Code and the Fort Collins Traffic Code Ret4arding the Sale and Maintenance of Said Codes. This Ordinance amends the City Code and Traffic Code to reflect that the City's official codifier maintains copies for sale to the public, and to reduce to one the number of public inspection copies the City Clerk is required to maintain. 13. First Reading of Ordinance No. 037,2009,Amending Chapter 5 of the City Code Regarding Violations and Penalties to the International Property Maintenance Code. 76 April21, 2009 The Ordinance would amend the violation and penalty section of the International Property Maintenance Code (iPMC) in order to clarify that certain violations of the IPMC are civil infractions while others are criminal misdemeanors. It would also delete Section 5-48 of the City Code as it is no longer necessary. 14. First Reading of Ordinance No. 038, 2009, Expanding the Boundaries of the Downtown Development Authority and Amending the Plan of Development. The petitions for inclusion would change the boundaries of the Downtown Development Authority (DDA) District and amend the Plan of Development of the Authority to include properties located in the Lemay/Lincoln Avenue area and South Howes Street area. 15. First Reading of Ordinance No. 039, 2009, Authorizing the Lease of City-owned Property at 149 Grandview Avenue for Up to Five Years. The City built this house for use by the Cemetery Superintendent. Since this position has been eliminated, the City does not need to use this house as a staff residence. This house has been a leased property for Grandview Cemetery since 1999. In the future,the area where the house is located will be needed for more cemetery space. Prior to that time, renting the house will generate income that the Cemetery staff can utilize. Staff also believes vandalism can be discouraged by keeping the house occupied. This Ordinance will allow City staff to keep the house rented for up to five years. 16. First Reading of Ordinance No. 040, 2009, Declaring Certain City-Acquired Property as Hickory Street Right-of-Wax The City acquired a 7,673 square foot parcel of real property in 1994 for the purpose of constructing public road and sidewalk improvements on Hickory Street. Although it was never dedicated as public right-of-way, it has been used as such since that time. In order to clearly delineate the boundaries of the public right-of-way for Hickory Street, staff is recommending that the property be dedicated as public right-of-way. 17. First Reading of Ordinance No. 041, 2009, Authorizing the Lease of City-Owned Property at 400 Wood Street for up to Fifteen Years. This Ordinance authorizes the lease of the building located at 400 Wood Street to Foothills Gateway for a five-year lease tern, with the option for two five-year renewal terms, in exchange for payment of nominal rent of$25 per year. 18. First Reading of Ordinance No. 042, 2009, Authorizing the Lease of City-Owned Property at 214 North Howes Street, Along with Related Parking Rights at 220 North Howes Street, for up to Five Years. City Council adopted OrdinanceNo.098,2007,authorizing the lease ofCity-owned property at 214 North Howes Street, along with the use of parking spaces at 220 North Howes Street 77 April 21, 2009 for up to five years. The Ordinance specified a minimum annual lease amount of no less than $61,036, which was based on an annual price of$10.50 per square foot. This Ordinance modifies the authorization from an aggregate annual amount to a per square foot rate and reduces the minimum lease rate from $10.50 to $9 per square foot. 19. Items Relating to the Mountain View School Second Annexation and Zoning_. A. Resolution 2009-032 Setting Forth Findings of Fact and Determinations Regarding the Mountain View School Second Annexation and Zoning. B. Hearing and First Reading of Ordinance No. 043, 2009, Annexing Property Known as the Mountain View School Second Annexation to the City. C. Hearing and First Reading of Ordinance No. 044, 2009, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Mountain View School Second Annexation to the City. This is a request to annex and zone 1.46 acres located on the north side of LaPorte Avenue, midway between North Taft Hill Road (to the east) and North Overland Trail (to the west). The property is partially developed as a Poudre School District parking lot and is in the FA, Farming Zone District in Larimer County. Existing Poudre School District facilities are to the west and south; and property to the east and north are undeveloped; however, the Sanctuary West residential development proposal,located north of LaPorte Avenue,is under review by the City. The requested zoning for this annexation is LMN, Low Density Mixed- Use Neighborhood. 20. Resolution 2009-033 Authorizing Revocable Permits to ERO Resources Corporation for the Installation of Groundwater Monitoring Wells on City Property for Use in Evaluating the Environmental Impacts of the Northern Integrated Supply roject and the Halligan-Seaman Water Management Project. As part of the Northern Integrated Supply Project (NISP) Environmental Impact Statement (EIS) and the Halligan-Seaman Water Management Project (HSWMP), groundwater monitoring is necessary along certain areas of the Poudre River. ERO Resources Corporation is the third-party contractor for the NISP EIS and has requested that the City grant permission to enter various parcels owned by the City to install monitoring wells to conduct periodic groundwater monitoring. 21. Resolution 2009-034 Authorizing the Lease of City-owned Property at 222, 224 and 226 West Mountain Avenue to Moe Kamand, for or up to Two Years. The City and the County purchased the building at 222,224 and 226 West Mountain Avenue in 1985 as part of the Block 31 purchases. In the Intergovernmental Agreement dividing Block 31, this property was quit claimed to the City. Since the City and County's purchase of this property, these spaces have been leased to commercial customers. The current tenant 78 April21, 2009 of 222, 224 and 226 West Mountain Avenue, Moe Kamandy of the Mountain Cafe, has leased the 1,370 square feet of space since October 2004. These spaces are not conducive for use by other City users. Staff recommends continuing to lease these spaces to Moe Kamandy of the Mountain Cafe until this area of Block 31 is needed for the future Performing Arts Center improvements. The total yearly lease payment for these spaces will be at least $11,200. In addition, the tenant will be responsible for the following expenses: taxes, all utilities, and janitorial. 22. Resolution 2009-035 Authorizing the City Manager to Enter into a License to Enter and Fee Sharing Agreement with the Discovery Science Center. The License to Enter and Fee Sharing Agreement between the City and Discovery Science Center (DSC) allows the DSC to share office and exhibition space with the Fort Collins Museum(FCM)in the City building located at 200 Mathews Street.The agreement includes a provision for charging an admission fee and paying those fees, along with certain other museum-related fees,to the DSC to fund DSC employee salaries,benefits and program costs. The Fee Sharing Agreement will keep aspects of the Discovery Science Center open, operating, and providing benefit to the public during this transition phase until the new facility is operational. The DSC has historically charged an admission fee to fund operations and an admission fee will be charged at the new museum when it opens.The Agreement also clarifies the parties' rights and obligations in sharing the Museum property and is in keeping with the Operating Agreement that was signed between the City and the DSC in March 2008. 23. Resolution 2009-036 Approving and Adopting an Identity Theft Prevention Program of the City's Municipal Court for the Detection, Prevention and Mitigation of Identity Theft. Under the revisions to the FACT Act of 2003 (Fair and Accurate Credit Transactions Act), each creditor is required to have policies and procedures in place by May 1,2009 which meet the standards outlined by Federal Agencies including the Federal Trade Commission. There are a number of red flags or potential warnings of identity theft included in current legislation. The role of the Council acting as the City's Board of Directors is to grant initial approval of the Identity Theft Program plan before implementation and annual report review. The program includes the following: • Establish a Privacy Officer • Conduct a Needs Assessment • Develop an Annual Program Report • Develop and Implement Policies and Procedures • Employee Training— 2 Hours in First Year 24. Resolution 2009-037 Authorizing the City Attorney to Provide Legal Services to the Fort Collins Capital Leasing Corporation. This Resolution authorizes the City Attorney to provide legal services to the Fort Collins Capital Leasing Corporation. 79 April 21, 2009 25. Resolution 2009-038 Authorizing the Mayor to Execute an Intergovernmental Agreement with the Colorado Department of Transportation to Design, Construct, and Enhance Components of the Traveler Information Web Page. This Congestion Mitigation and Air Quality (CMAQ) project will design, construct, and enhance components of the existing Traveler Information Web Page — www.fcgov.com/fctrip. The project will include installation of equipment to expand coverage of the existing closed circuit television (CCTV) system. Additional vehicle detection equipment will also be installed to provide more comprehensive congestion measurement to improve the accuracy of the roadway condition information available to the public on the web page. 26. Resolution 2009-039 Making_Appointments to Various Boards and Commissions. A vacancy currently exists on the Affordable Housing Board due to the resignation ofAshley Monahan. Councilmembers Poppaw and Roy reviewed the applications on file. The Council interview team is recommending Mike Sollenberger to fill the vacancy with a tenor to begin immediately and set to expire on December 31, 2012. A vacancy currently exists on the Art in Public Places Board due to the resignation of Jane Liska-Smith. Applications were solicited and Councilmember Poppaw and Mayor Hutchinson conducted interviews. The interview team is recommending Shelby Sommer to fill the vacancy with a tenor to begin immediately and set to expire on December 31, 2009. A vacancy currently exists on the Commission on Disability due to the resignation of Jason Holland. Applications were solicited and Mayor Hutchinson and Councilmember Poppaw conducted interviews. The interview team is recommending Kalin Logan to fill the vacancy with a tenor to begin immediately and set to expire on December 31, 2010. A vacancy currently exists on the Land Conservation and Stewardship Board due to the resignation of J. Karyl Ting. Councilmember Manvel and Mayor Hutchinson reviewed the applications on file. The interview team is recommending Linda Knowlton to fill the vacancy with a term to begin immediately and set to expire on December 31, 2011. A vacancy currently exists on the Natural Resources Advisory Board which was not filled during the annual appointment process. Applications were solicited and Councilmember Manvel and Mayor Hutchinson conducted interviews. The interview team is recommending Steve Ambrose to fill the vacancy with a term to begin immediately and set to expire on December 31, 2012. A vacancy currently exists on the Parks and Recreation Board due to the resignation of Mark Lueker. Applications were solicited and Mayor Pro Tern Ohlson and Mayor Hutchinson conducted interviews. The interview team is recommending Danna Ortiz to fill the vacancy a with tenn to begin immediately and set to expire on December 31, 2009. 80 April21, 2009 A vacancy currently exists on the Planning and Zoning Board due to the resignation of Jim Wetzler. Mayor Hutchinson and Councihnember Poppaw conducted interviews. The interview team is recommending Jennifer Carpenter to till the vacancy a with term to begin immediately and set to expire on December 31, 2010. A vacancy currently exists on the Senior Advisory Board due to lack of attendance requirements by Janet Otto. Mayor Hutchinson and Councihnember Poppaw conducted interviews and are recommending Kathy Gronberg to fill the vacancy with a term to begin immediately and set to expire on December 31, 2012. Vacancies currently exist on the Youth Advisory Board due to the resignations of Josh Disney and Laura Lamb. Applications were solicited and Councilnember Poppaw and Mayor Hutchinson conducted interviews. The interview team is recommending Kelsey Hennig and Kinsey Kappeler to fill the vacancies with terms to begin immediately and set to expire on December 31, 2010 and December 31, 2011 respectively. ***END CONSENT*** Ordinances on Second Reading were read by title by City Clerk Krajicek. 7. Second Reading of Ordinance No. 031, 2009, Authorizing the Conveyance to Urban Development Partners, LLC of a Non-Exclusive Drainage Easement and a Non-Exclusive Maintenance Access Easement on the City Owned Gustav Swanson Natural Area Property. 8. Second Reading of Ordinance No. 032, 2009, Authorizing the Use of a Portion of Bernard Ranch as Match For a Neotropical Migratory Bird Conservation Act Grant Administered by the U.S. Fish and Wildlife Service. Ordinances on First Reading were read by title by City Clerk Krajicek. 9. First Reading ofOrdinanceNo.033,2009,Transferring Existing Appropriations in the Street Oversizing Fund into the Capital Projects Fund for the Drake Road Improvements,Taft Hill to Overland Trail Project. 10. First Reading ofOrdinanceNo.034,2009,Appropriating Proceeds from the Issuance of City of Fort Collins Water Utility Enterprise, Water Revenue Refunding Bonds, Series 2009, in the Maximum Aggregate Principal Amount of$8,500,000. 11. First Reading of Ordinance No. 035, 2009, Authorizing the Issuance and Sale of the City of Fort Collins, Colorado, Revenue Bond (Larimer Center for Mental Health Project) Series 2009, in a Total Principal Amount Not to Exceed$1,400,000; Making Detenninations as to Sufficiency of Revenues and as to Other Matters Related to the Project and Approving the Form and Authorizing the Execution of Certain Documents Relating Thereto. 81 April21, 2009 12. First Reading of Ordinance No. 036, 2009, Amending Various Provisions of the City Code and the Fort Collins Traffic Code Regarding the Sale and Maintenance of Said Codes. 13. First Reading of Ordinance No. 037,2009,Amending Chapter 5 of the City Code Regarding Violations and Penalties to the International Property Maintenance Code. 14. First Reading of Ordinance No. 038, 2009, Expanding the Boundaries of the Downtown Development Authority and Amending the Plan of Development. 15. First Reading of Ordinance No. 039, 2009, Authorizing the Lease of City-owned Property at 149 Grandview Avenue for Up to Five Years. 16. First Reading of Ordinance No. 040, 2009, Declaring Certain City-Acquired Property as Hickory Street Right-of-Way. 17. First Reading of Ordinance No. 041, 2009, Authorizing the Lease of City-Owned Property at 400 Wood Street for up to Fifteen Years. 18. First Reading of Ordinance No. 042, 2009, Authorizing the Lease of City-Owned Property at 214 North Howes Street, Along with Related Parking Rights at 220 North Howes Street, for up to Five Years. 19. Items Relating to the Mountain View School Second Annexation and Zoning. B. Hearing and First Reading of Ordinance No. 043, 2009, Annexing Property Known as the Mountain View School Second Annexation to the City. C. Hearing and First Reading of Ordinance No. 044, 2009, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Mountain View School Second Annexation to the City. 32. First Reading of Ordinance No. 045, 2009, Amending Section 5-261 of the City Code Related to Fees for Rental Housing and Establishing an Incentive Program with Regard to the Payment of Such Fees For Rental Dwelling Units Not Previously Recorded With or Approved by the City. 33. First Reading of Ordinance No. 046, 2009, Appropriating Funds from the City's General Fund Reserves for Transfer to the Fort Collins Urban Renewal Authority for the Purpose of Providing a Loan for the North College Marketplace Project. CouncilmemberTroxell made a motion,seconded by CouncilmemberPoppaw,to adopt and approve all items on the Consent Calendar. Yeas:Hutchinson, Kottwitz,Ohlson, Poppaw,Roy and Troxell. Nays: none. THE MOTION CARRIED. 82 April21, 2009 Consent Calendar Follow-up Councilmember Roy asked for information about ERO Resources. John Stokes,Natural Resources Director, stated one issue raised by the City concerning the draft Envirnomental Impact Statement (EIS)for the Northern Integrated Supply Project (NISP)was the lack of data related to ground water monitoring. The City specifically asked that such data be gathered and ERO Resources is the company hired by the Anny Corps of Engineers to gather ground water data on the Poudre River. There will be six monitoring sites,with two of the those sites located in Fort Collins. 2-D modeling will also occur at these sites which provides riparian habitat information and changes to habitat that might occur if NISP is approved. As part of its EIS process, the Corps hired the third-party consultant and did not allow the City the option of gathering ground water data itself. The monitoring wells be installed as soon as possible and data will be gathered for at least one year. Councilmember Roy asked for information before the monitoring wells are installed, what information will the wells gather and the length of time the wells will be used. Councilmember Troxell noted several appointments were made to various boards and commissions and the citizens appointed will provide much expertise and knowledge on a volunteer basis to the City, including two appointments to the Youth Advisory Board. He suggested the Youth Advisory Board membership should come from area high school student leadership. He asked what steps the City has taken to prepare for pine beetle infestation. Staff Reports City Manager Atteberry stated Council consideration of the Electric Service Code change and net metering has been moved from May 5 to May 19. The work session for April 28 has been cancelled. City Manager Atteberry stated a question had been raised about the timely issuance of basement remodel permits. Serval hundred remodel permits were issued last year and 91%were issued within 24 hours of the request. Clark Mapes, City Planner, stated a signage system has been designed for the downtown area that includes directional signage for public parking facilities downtown. Pedestrian and vehicle informational signs will be placed on Mulberry and Prospect Streets, as well as in the downtown area. The purpose of the system is to provide awareness of the downtown area and to provide ease of access to visitors. The signs will have a consistent color scheme and graphic design. Funding for the sign system will come from the General Improvement District No. I and possibly,in partnership with the Downtown Development Authority. The new signs should be in place this summer. Councilmember Roy asked if the color scheme for the "Welcome to Fort Collins' sign could be softened as the colors seemed harsh and jarring. Mapes noted other options were available and the design team would consider other colors. Councilmember Ohlson asked if Council would have an opportunity to provide more feedback regarding the sign system. City Manager Atteberry stated much public input has been gathered in the design phase of this project and the final decision was intended to be an administrative decision 83 April21, 2009 but Council can choose to make the final decision on the design of the sign system. Staff will provide Council with diagrams and real pictures and Council can decide if it wants to spend more time to provide input into the design of the signs. Resolution 2009-040 Authorizing the City Manager to Investigate Options for a Cooperative Arrangement That Would Provide Wastewater Treatment Services to Boxelder Sanitation District and to Negotiate a Related Agreement for Future Council Consideration, Adopted The following is staffs memorandum on this item. "FINANCIAL IMPACT Some staff time will need to be allocated. Any agreement negotiated will use the cost of service methodology. EXECUTIVE SUMMARY As an alternative to any modifications or new construction, Boxelder Sanitation District has asked the City ofFort Collins about the possibility of the Cityproviding wastewater treatment services for the District in the_future. The potential regional consolidation of wastewater services would eliminate a wastewater treatment plant in the Fort Collins area and increase efficiencies that cozrld benefit the District, the City, and the region. Due to drought and water conservation, currently the City facilities could accommodate part or all of the District's flow. This request is timely as the City Wastewater Division is beginning the updatingprocess.for the Wastewater Treatment Master Plan. The District request could be formally reviewed as part of this process to predict any future impacts. BACKGROUND The Boxelder Sanitation District (the District) service area borders the City of'Fort Collins Wastewater Utility service area to the north and east. The District currently provides wastewater services to customers within portions of the Fort Collins, Fort Collins Growth Management Area, the town of Timnath, and Larimer County. The District anticipates future service being provided to portions of Weld County. Boxelder Sanitation District operates sewer lines, an industrial pretreatment program and a wastewater treatrrrent plant. The treatment plant is a lagoon system and is located at the confluence of Boxelder Creek and the Cache la Poudre River,just downstream from the City's Drake Water Reclamation,facility and has a current capacity ofapproximately 2 million gallons per day(MGD). The District will need to modify the existing treatment facility or construct a new.facility at the current location to meet future regulatory and capacity needs. Future capacity that the District will 84 April 21, 2009 need is currently predicted to be 8 to 10 MGD and would require a new much larger mechanical facility, similar to those operated by the City ofFort Collins. " Steve Comstock, Water Reclamation and Biosolids Manager, stated Boxelder Sanitation District borders the City on the north and east and has received a new discharge permit that dictates treatment limits for the District. The District has been instructed to investigate the possibility of consolidation. Currently,the District has a lagoon system that treats approximately 2 million gallons of sewage per day. The City's Drake facility treats approximately 23 million gallons of sewage per day. To meet future regulatory and capacity needs,the District will need to modify the existing facility or construct a new facility. The District has requested to confer with the City about the possibility of the City providing wastewater treatment services as an alternative to modifications or new construction. Potential regional consolidation of wastewater services would eliminate a wastewater treatment plant along the Poudre River and provide efficiencies that would benefit both the District and the City. Mayor Hutchinson noted the resolution will allow the City Manager to investigate options for an agreement and is not authorizing any agreement with Boxelder at this time. Comstock stated if Council does not believe it would approve such an agreement, now is the time to halt any further discussions because Boxelder will spend substantial amounts ofmoney to be involved in the process. Councilmember Roy asked for an estimate of costs to both Boxelder and the City if such an agreement were approved. Comstock stated Boxelder would initially be asked to participate in the cost of the Master Plan Agreement process which might cost$10,000 to$15,000 for a consultant to gather the data needed to make a decision. If Boxelder chooses to purchase an part ownership in the Fort Collins facility, the cost would be quite substantial. City Manager Atteberry stated the cost of providing service to Boxelder is one area that will be studied. The Boxelder rate payers would pay for the costs of Fort Collins providing this service. The study could identify some positive, unanticipated outcomes or it could identify some fatal flaws. Councilmember Roy asked for an estimate of the value of the capacity at the Drake Treatment Plant that is not currently in use. Comstock stated it costs approximately$7/gallon to build a wastewater treatment plant. The Drake Treatment Plant has a capacity of 23 million gallons per day and currently processes about 15 million gallons per day. Councilmember Roy asked how many water districts exist in the City's Urban Growth Area. Comstock stated there are 4 sanitation districts:Boxelder Sanitation, South Fort Collins,the City of Fort Collins, and Wellington. Councilmember Ohlson noted the resolution states "to negotiate a related agreement for future Council consideration,'' which conflicts with "investigating options and negotiate a cooperative agreement" as stated in the staff presentation. It makes sense to determine if it is feasible for a cooperative venture that would benefit Fort Collins, the Boxelder Sanitation District and the region but researching a possible agreement is not the same as approving a cooperative agreement. City Manager Atteberry stated staff is asking if Council supports the concept of cooperating regionally with another entity. If it is determined both entities would benefit from this cooperation, an intergovernmental agreement will be brought for Council consideration at a later date. 85 April21, 2009 Councilmember Ohlson asked why the City would strive to only recoup costs and not use this as an opportunity to create a revenue stream, if an IGA would save the Boxelder Sanitation District a large amount of money. Comstock stated the intent was to be as fair as possible with Boxelder but the City could choose to charge fees above recouping costs. Councilmember Troxell made a motion,seconded by Councilmember.Kottwitz,to adopt Resolution 2009-040. Councilmember Troxell stated the opportunity for regional cooperation and the potential for savings for both Fort Collins and the Boxelder Sanitation District make this investigation a good decision. Councilmember Ohlson stated land use and water conservation should be considered in any agreement that might come forward. Councilmember Roy asked for information about increased efficiencies for Fort Collins that might occur from any agreement with Boxelder. Mayor Hutchinson stated moving forward with this investigation will provide the opportunity for regional cooperation and increased efficiencies. This resolution does not commit the City to any agreement but does explore options that might be available that could benefit both the City and Boxelder Sanitation District. The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, Ohlson, Poppaw, Roy and Troxell. Nays: none. THE MOTION CARRIED. Resolution 2009-041 Authorizing the City Manager to Investigate Options for a Cooperative Arrangement That Would Provide Water Treatment Services to the Tri-Districts and to Negotiate a Related Agreement for Future Council Consideration, Adopted The following is staffs memorandum on this item. "FINANCIAL IMPACT Stafftime, includingfinance and legal, will be required. The agreement will incorporate a one-time capital investment,plus negotiation of annual shared operation and maintenance fees, and sharing of capital and replacement finding. EXECUTIVE SUMMARY The Tri-Districts (owner of the Soldier Canyon Filter Plant) must expand its facility or, as an alternative,purchase treatment capacity in the City ofFort Collins Water Treatment Facility(WTF). 86 April21, 2009 The WTF has underutilized capacity, due to israter conservation efforts citywide, and could realize debt Bernice repayment, and more efficient operation, with the Tri-Districts'involvement. The Tri- Districts would provide raw water-through its own water decrees for treatment through the City's TVTF. BACKGROUND The City's Water Treatment Facility(WTF), located at 4316 LaPorte Avenue, has a current capacity of 87 million gallons per day (mgd). The plant currently operates at capacity levels well below this design. In response to the drought of 2002, the conservation program and tiered.fee rates,per capita water usage has decreased to a level that appears to be sustainable, resulting in as much as 20 mgd of excess treatment capacity through the year 2035 (projected build out). The Tri-Districts (collectively East Larimer County Water District, Fort Collins-Loveland Water District and North Weld County Water District) owns the Soldier Canyon Filter Plant, located directly to the west of the Fort Collins WTF. The City and the Tri-Districts have an existing intergovernmental agreement that allows for water- sharing at various locations in the water transmission system, and for water selling(through Fort Collins-Loveland Water District). The Tri- Districts serves approximatelv18,000 customers that reside in the City of Fort Collins. Therefore, a working relationship with the Tri-Districts is already in place. The Tri-Districts is currently evaluating options to increase treatment capacity at its plant in order to serve its growing customer base. One of its alternatives is to enter-into a long-term agreement with the City for the use of its excess treatment capacity. This is a regional solution, benefitting the City by maximizing the use of the idle treatment capacity, reducing debt load on its ratepayers and benefitting the Tri-Districts by delaying capital expenditures. This capacity could be provided by the City through a wholesale contract agreement (similar to West Fort Collins Water District) or through a sale of treatment capacity. The Tri-Districts desires to purchase treatment capacity, rather than purchase water through a contract agreement. There are several benefits to the City in arranging a sale of treatment capacity to the Tri-Districts: 1. Efficient use of unused constructed capacity. 2. Potential accelerated repayment of debt service. 3. Enhanced(continued) cooperation with Tri-Districts. 4. Less environmental impact on region due to no construction of facilities at Soldier Canyon. 5. Increases City's minimum water treatment levels, which have been declining, allowing more efficient operation during low winterJlow rates. " Lisa Voytko, Water Production Manager, stated the Tri-Districts own and operate the Soldier Canyon Water Treatment Plant, located to the west of the Fort Collins Water Treatment Facility. The Tri-Districts and Fort Collins share an outlet at Horsetooth Reservoir and get water from the Poudre River through the Pleasant Valley Pipeline. The City's water treatment plant has a peak 87 April21, 2009 capacity of 87 million gallons/day(MGD). The Soldier Canyon Plant has a current capacity of 50 MGD, with potential for expansion to 60 MGD. The Tri-Districts has a need at this time,to expand the Soldier Canyon Plant and has approached Utilities with the possibility of purchasing treatment capacity in the City's water treatment facility in lieu of expanding Soldier Canyon Plant. The City's water treatment plant had a peak production day of 51 MGD in June 2008. Water conservation and tiered water rates have reduced general water production at the plant. The City has much unused capacity at the plant and would be able to handle the influx of 10 MGD from the Tri- Districts. The projected peak demand, targeted for 2035, is 67 MGD. The plant capacity is 87 MGD. Staff would explore recouping of capital costs with any agreement with the Tri-Districts. If the Tri- Districts wants to purchase any portion of treatment capacity, the City would request .a capital payment which the Districts would need to pay even if the Soldier Canyon Plant were to be expanded. This would lessen the debt repayment currently at the City's water treatment plant. The Tri-Districts would bring raw water to the City's plant through the Pleasant Valley pipeline or through the Horsetooth inlet structure and, because both entities use the same waters, the waters would be blended to create good influent water quality and effluent water quality would remain constant and excellent. The City would act as a surrogate for the Tri-Districts because the Tri- Districts would bring the water to the City, the City would treat the water, and the Tri-Districts would be responsible for distribution to their rate payers. Another component of fees that would be examined would include fixed operation and maintenance cost, the yearly cost of providing the building, staff and equipment and variable operation and maintenance costs, which varies with the amount of water that is treated. If the Tri-Districts use 10 MGD of City water treatment capacity, the Soldier Canyon Plant would not be expanded which would lessen environmental impacts. The City currently has a very good working relationship with the Tri-Districts through water sharing and water selling and any agreement could create even better relationships. During the winter months, the City's treatment plant experiences lower water production rates which creates certain challenges in treating low flows. Cost efficiencies could occur with an additional 10 MGD that would help the City's plant operate more efficiently. Ross Cunniff, 2267 Clydesdale, urged Council to carefully consider all City water management policies before accepting any agreement to share water treatment facilities. Councilmember Poppaw asked what provisions would be considered to cover emergency maintenance or other extraordinary costs that might arise from an agreement with the Tri-Districts. Voytko stated any agreement would include fixed and variable operation and maintenance costs, as well as an emergency fund. Councilmember Poppaw asked if the Tri-Districts had developed any water conservation plans for their customers. Voytko stated each District has water conservation plans in place, as required by the state. ELCO and Fort Collins-Loveland Water Districts border Fort Collins and include some Fort Collins residents in their districts. Their water conservation plans mirror and utilize the City's water conservation plan within their own districts. The North Weld County Water District has the lowest number of residents and has less funding available. Its plan is concentrated on unaccounted 88 April21, 2009 losses, utility programs such as improving metering, checking for unaccounted losses within the water system and educational programs. The City's estimated water use is about 40,000 acre-feet and the combined build-out, water consumption for the Tri-Districts, based on their water conservation plans, is about 33,000 acre feet. Councilmember Ohlson asked if the City could ultimately be processing water from NISP because one member of the Tri-Districts is a sponsor of NISP. Kevin Gertig, Water Resources/Treatment Services Manager,stated he did not believe the City would be treating N ISP water as the participants would have to do an exchange, but the possibility would be evaluated through the proposed review process. Mayor Hutchinson asked if the proposed resolution would commit the City to processing any NISP water. Gertig stated the resolution would allow staff to review the possibilities and gather data to determine the possible outcomes of any agreement with the Tri-Districts. Councilmember Roy asked if the resolution allows the City Manager to negotiate an agreement that would not be presented to Council for approval. City Manager Atteberry stated Council would need to approve an intergovernmental agreement with the Tri-Districts. Negotiations will be halted if it appears not to be in the best interests of Fort Collins. Staff believes it is worth the effort to determine if a win-win agreement can be negotiated. City Attorney Roy noted the last sentence in the resolution states "and to negotiate a related agreement for future presentation to and consideration by the City Council." The intent of the language is that it would be up to Council to decide whether to approve the proposed agreement brought to it. The wording could be changed from"related"to"proposed"agreement. Staff would negotiate the terms and conditions of an agreement that is subject to Council's approval which is the intent of the language in the resolution. Councilmember Roy stated the word"proposed"is a better choice than"related." City Attorney Roy stated the same language should also be used retroactively,in the resolution just adopted concerning the Boxelder Sanitation District. Councilmember Poppaw asked if the review will consider the question of parity between the two entities as the City does not want to enable other communities to have less stringent regulations regarding water conservation. City Manager Atteberry stated the Districts need to know what CounciI's expectations are concerning water conservation. Councilmember Roy asked that the Water Board review any agreement that is negotiated with the Tri-Districts before Council considers authorizing an agreement. City Manager Atteberry stated the Water Board will have opportunity to review any proposed agreement with the Tri-Districts and with Boxelder Sanitation District. Councilmember Troxell asked how the blending of raw water would be a benefit for Fort Collins. Voytko stated during spring runoff when the Poudre River has a lower water quality than Horsetooth Reservoir, water rights could be adjusted so that more Horsetooth water could be used. 89 April 21, 2009 Councilmember Kottwitz asked if the City has worked with the Fort Collins-Loveland Water District to market water conservation measures. Voytko stated ELCO and the Fort Collins-Loveland Water Districts rely on the City programs to assist with their water conservation programs. Councilmember Roy made a motion, seconded by Councilmember Poppaw, to adopt Resolution 2009-041, as amended. City Attorney Roy clarified that Resolutions 2009-040 and 2009-041 would be amended to change the word "related" to "proposed" in the titles and in the last sentence of both resolutions. Councilmember Ohl son stated the potential for regional cooperation is a good reason to proceed with this review but he would not support any agreement that would enable bad land use patterns, lack of water conservation programs or lack of growth management programs. Councilmember Roy stated Fort Collins citizens have conserved and sacrificed to have a high quality water treatment system and any community or district that partners with Fort Collins should have the same requirements that are asked of the City's citizens. City Manager Atteberry stated if the Districts cannot agree to the same requirements Fort Collins has for its rate payers,no agreement will be reached. The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, 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.) Ordinance No. 045, 2009, Amending Section 5-261 of the City Code Related to Fees for Rental Housing and Establishing an Incentive Program with Regard to the Payment of Such Fees For Rental Dwelling Units Not Previously Recorded With or Approved by the City, Adopted on First Reading The following is staffs memorandum on this item. "FINANCIAL IMPACT Adoption of the Ordinance will financially impact the City and the owners of unrecorded/ unapproved rental dwelling units. 90 April21, 2009 Revenue/Savings Costs After Incentive Period During Incentive Period During Incentive Period City Revenues - O n e Costs-Covered under current Revenues -Fees.for application fee/unit plus Neighborhood & Building development review, building permit fees if Services, Engineering .and building permit, and improvements needed to Current Planning budgets past-due impact fees at comply with Rental current rates Standards Property Savings - From waiver of Costs (per rental dwelling No savings - Costs to Owners all past-due fees unit): one application .fee owners include current plus any buildingpermit fees fees noted above ENVIRONMENTAL IMPACT Adoption of the Ordinance is expected to improve indoor air quality, safety and sanitation,for rental housing residents. EXECUTIVE SUMMARY Council has identified sanitary and safe housing for all Fort Collins residents as one of its primary concerns. On October 21, 2008, Council adopted the Supplemental Rental Housing provisions related to minimum health and safety standards_for rental housing.At that time, Council postponed discussion of City Code Section5-261 relating tofeesand "unrecorded/unapproved"dia-ellingunits — housing units created or converted without required City approvals. Council directed staff to consider options for establishing "incentive periods", --periods of time wherein rental property owners would be encouraged through financial incentives to identify their-unrecorded/unapproved rental units and comply with the City's rental housing minimum health and safety standards. At the February 24, 2009 work session, staffpresented potential incentive options. Council directed sta.fto further refine these incentives to engage morepeople in the community who ivould be directly affected by unrecorded/unapproved rental housing units (including long term residents and CSU students in addition to the rental housing industry), and to obtain their input on the various incentives. The stakeholder group considered options regarding the length of the application period(12 to 24 months), the amount of the application.or filing fee (5100 to$600), and whether the application.fee should be increased over the application period to provide an incentive for owners to identify unrecorded units as soon as possible. Staff, in collaboration with community stakeholders, of the followingproposed incentive period for Council's consideration: 91 April21, 2009 Twenty five month application period. Property owners would have twenty-Jive months from the date the ordinance goes into effect to apply for a certificate ofoccupancy. A one-time fee would be charged_for processing the application as follows: $200 during the first thirteen months, increasing to $300.for the next six months, then $400 for the last six months. Owners would also have to pay any fees or taxes that would normally be due upon issuance of a building permit for any work needed to bring their dwelling units into compliance with the Rental Housing Standards. Staff, the rental industry, and the Affordable Housing Board recommend the proposed incentive period (24 months). In addition to the 24 months, staff proposed another thirly days to assure advance outreach and comprehensive notice to all stakeholders. BACKGROUND THE ISSUE An unknown number of rental dwelling units do not have formal approval by the City in the form of a final inspection or a certificate of occupancy. All rental dwelling units in the City are required to comply with the City's Rental housing Standards. In addition, the City Code was recently amended by the Council to require that the owners o/all rental dwelling units in the City obtain a certificate of occupancv before renting, offering to rent, or continuing to rent such units. The current City Code has no specific procedures.for dealing with existing, unrecorded/unapproved rental housing. If City staff becomes aware of such a housing unit, the owner is required to bring the unit into compliance with current minimum health and safetystandards. In addition, impact fees are collected at the current rates as though such housing units were created at the time they are discovered. (Impact fees are,fees imposed to offset the added costs ofproviding public services and infrastructure associated with creating any housing unit.) For asingle-family converted to a 1,500 square foot basement.finish duplex today, the impact fees would be approximately $12,000. According to the 2007 census data, approximately 80% of the two-family dwellings in the City (duplexes) are occupied by renters. This wozdd be approximately 1,400 duplexes. However,staffhas no reliable way ofdeterminingjust how many rental dwelling units actually exist in the City, much less how many of those units may present a health or safety risk to their occupants or may otherwise fail to comply with the City's Rental Housing Standards. This is partly because many of the rental units were constructed before certificates of occupancy were required for single and nt;o-family dwellings (before 1980), partly because many others have come into existence through the unlaxful conversion of single-family residences to duplexes and finally some current owners may be unaware that the rental dwelling never complied with City requirements. In order to ensure that rental units in the City comply with the Rental Housing Standards, staff recommends that the City Council approve an incentive program to help identify where those units are located and to determine their suitability for habitation. The purpose of the incentives is to motivate the owners ofunrecorded/unapproved dwelling units to obtain a certificate ofoccupancy. Prior to issuing the certificate of occupancy, staff would work with the property owners to ensure 92 April21, 2009 that the units come into compliance with the Rental Housing Standards. Essentially, the incentives consist of lowering the cost of bringing the units into compliance for a given period of time. To accomplish this, the suggested incentive period would afford "amnesty"firoin past due impact .fees and civil infractions.for property owners who voluntarily identify their unrecordedhmapproved housing/dwelling units and submit an application for a certificate of occupancy. Owners must still make sure the units meet City Rental Housing Standards and must pay the associated costs if work has to be done to meet these standards. COUNCIL DIRECTION FROM WORK SESSION(See attachment#1) Council expressed general agreement with the importance of an amnesty period to encourage compliance. Council's discussion focused on the proposed length of time allowed for rental property owners to come fotward with their unrecorded/unapproved dwelling units. Staff initially recommended a ttiventy-four-month voluntary application period plus a six-month implementation delay for initial public outreach. Council generally agreed to consider an extended incentive period due, in part, to the current economic conditions. Council directed staff to: • consider incentives to deter property owners from waiting until the twenty-four month deadline to identify their rental units; • continue outreach efforts to neighborhoods and renters; and • verify what enforcement tools are available,for unrecorded/non-approved rental housing in the interim. Based upon the Council discussion at the work session and feedback from stakeholders, staff now recommends atwenty-five month program, which includes an additional month at the beginning of the program for outreach. During this extra month, staff will commence an ongoing comprehensive and targeted prrblicoun each campaign to inform all affected parties of the incentiveprogram. (See attachment #2) OUTREACH(See attachment #3) From November 2008 to February 2009, staff conducted outreach with a variety ofaffected parties to gather input on both the problem and proposed solutions, including: rental property owners and managers, landlords, members of CSU Legal Services, citizens, representatives,fr om the Board of Realtors, the Colorado Apartment Association, and the Fort Collins Housing Authority. Since the February worksession,staffand various community representatives(including local rental housing industry representatives, long-term residents, and CSU students) have met for the express purpose of developing the proposed incentive option. Cormcilmember Troxell recommended consulting with the CSU Everitt School of Real Estate for more data on the number of affected rental housing units. Toward this end, staff contacted Anne 93 April21, 2009 Spiy, Administrator for the Everitt Real Estate Center. She stated that the Center did not have any data and referred staff to other agencies that may be able to help. None of those leads has yet produced specific data regarding the number of unrecorded/unapproved rental housing units in the community. The housing industry (represented by the Fort Collins Board of Realtors, the Colorado Apartment Association, and theFort Collins Housing Authority), residents,andstudents collaborated with City sta.fto develop proposed incentives to encourage widespread compliance with minimums health and safety standards in rental housing. Although there is a consensus within the housing industry that compliance with rental housing minimum health and safety standards is important, there are concerns over the financial impact of having to make necessary improvements during the current economic downturn. The long-term neighbors generally support Cou ncil's direction and feel the incentiveperiod should be no longer than hventy-four months. They also generally concur with the early application strategy through progressive fee increases to deter- owners from waiting to the last minute to participate. They support the same application period but prefer intervals with fees increased as.follows: $200 during the first thirteen months, increasing to $400 for the next six months, then $600 for the last six months. They felt this was a reasonable compromise in lieu of paying impact fees during the incentive period. Students' concerns are related to a possible increase in rents because of needed improvements. They are also reluctant to complain about health and safety violations for.fear of retribution by landlords. PROPOSED INCENTIVE OPTION FOR PROPERTY OWNERS With extensive outreach and stakeholder collaboration, together with Council's direction, staff has developed the proposed incentive option described below to encourage widespread compliance. A variety of options were considered. The majority ofstakeholders concur with the proposed course of action presented below: Twenty-five month application period. Property owners would have twenty-five months.from om the date the ordinance goes into effect to apply for a certificate of occupancy. A one-time fee would be charged for processing the application as follows: $200 during the first thirteen months, increasing to $300 for the next six months, then $400 for the last six months. Owners would also be responsible,for paying any,fees or taxes that would normally be due upon issuance of a building permit for any work needed to bring their divelling units into compliance with the Rental Housing Standards. The proposed approach would provide an incentive for property owners to voluntarily disclose unrecorded/unapproved rental housing properties. If property owners voluntarily provide this information within the application period, they will be charged a one-time application fee (in lieu of the regular development review fee) but will not have to pay any impact_fees or City building permit fees for work done in the past when the units were created. 94 April21, 2009 To qualify for the voluntary application period, the added rental housing unit(s) must have been created or converted by December 31, 2008. This date was chosen to be as inclusive as possible to encourage compliance ofall existing unrecorded/unapproved rental dwelling,yet sending a clear message that anilly newly created rental units (as ofJanuary 1, 2009) must comply with current City standards and pay all applicable fees and taxes. Staff believes most unrecorded/unapproved dwelling units would have been created yews ago when there were fewer regulations and lower impact fees. In addition,property owners oftwo family and multi family dwellings in zone districts that currently do not allow for such dwellings would have to produce "clear and convincing evidence"that, when the dwellings were constructed or converted to such use, the use was allowed by the City. If there is no clear evidence and current -zoning does not allow two family or multi-family dwellings, the dwelling unit will have to revert back to a single family unit. Applicants will not have twenty- five months to make necessary corrections forcompliance. Required corrections for compliance will follow the City's standard building permit process for completing work. Once the application has been submitted and the preliminary inspection completed, the time allowed to make any corrections would be based on the degree of urgency of the health/safety violations, the cost of any needed improvements, and the time needed to comply with any zoning requirements. Staff recommends that any property that undergoes ownership transfer during the incentive period be eligible to participate, provided that the new owner applies within the incentive period. Otherwise, the newproperty owner would have no incentive to submit an application to comply with the Rental Housing Standards. CONTINUED NON-COMPLIANCE If the owner of an unrecorded/unapproved rental dwelling unit fails to come forward during the incentive period, and the unit later comes to the attention of the City, the owner will be assessed all applicable building permit, development review and impact fees at the rates in effect at the time such unit is discovered unless,prior to June 15, 2012, the owner can demonstrate to the Building Official or to the Building Review Board that the dwelling was purchased priorDeeember 31, 2008, and that the owner could not reasonably have known of the program. The City will also require that the property owner bring the unit into compliance with the Rental Housing Standards and pay the normal fees.for any building permits needed to accomplish that. STAFF RECOMMENDATION Staff, representatives from the housing industry and the Affordable Housing Board recommend: a. A 25-month application period. b. A one-time application/ftlingfee of$200, which would apply during the first thirteen months; the.fee would increase to$300 during for the next six months, and increase to $900 during the last six months of the program. 95 April21, 2009 C. Owners would have to pay any fees and/or taxes that would normally be due upon issuance of a building permit for any work needed to bring the dwelling unit(s) into compliance with the Rental Housing Standards. d. Owners will not be assessed any City impact fees if they provide a complete application during this 25-month program. e. Owners will not be subject to civil citations during the incentive period. The recommendation is based on: 1. protecting the public interest regarding residents at risk in existing substandard rental housing; 2. ensuring responsible stewardship of City.fees; 3. providing an incentive to foster a longstanding community partnership with owners and the housing industry to encourage widespread compliance during the current economic downturn; and 4. allowing a reasonable period of time to make all rental property owners aware of the incentive program and the need to identify their unrecorded/unapproved rental properties. TIMELINE The proposed ordinance becomes effective ten days.fiom adoption at Second Reading on May 5, 2009. " Jeff Scheick,Planning,Development and Transportation Director,stated the purpose of the proposed Code revisions is to encourage rental housing safety. Requirements for certificates of occupancy for dwelling units have been in place since 1980 and recently, City Code was modified to include the provision that owners of rental housing comprising of two or more units must have a certificate of occupancy before rental. When the new Rental Housing Standards were adopted last fall, Council directed staff to develop ways to bring unrecorded duplexes into compliance with the new standards with minimum financial impact to the property owners but would encourage the owners to bring the unrecorded units up to the new standards. The focus of the standards is to provide safe and sanitary conditions for people living in rental units. The proposed twenty-five month application period will provide amnesty where no impact fees will be charged. Waiving the impact fees represents a savings of hundreds orthousands of dollars to the property owners. Staff recommends the twenty-five month application period to provide enough time to inform a broad base of renters and rental property owners and provide opportunity for the properties to be brought into compliance. In order for the unrecorded units to meet the criteria for the application and waiver of impact fees, the units must have been created or converted by December 31, 2008. If the zoning for the area where the unrecorded units are located does not allow such housing,the owners will need to produce clear and convincing evidence that the City did allow such housing when the units were first created as rental units. The standard development review fee would be waived in lieu of the proscribed application fee at the time of the application during the incentive period. The standard building permit fees and taxes related to the cost of regular improvements must be paid. The time required 96 Apri121, 2009 to process an application will depend on the amount of time needed by the property owners to bring the property into compliance. If a property owner does not submit an application and get a certificate of occupancy for unrecorded rental units by the end of the twenty-five month application period, the property owner will be charged current impact,building and development review fees and make all improvements necessary to bring the property into compliance as if the rental units were newly created. Chip Parrish,Fort Collins resident,stated the mortgage market for investment properties has changed dramatically and it is increasingly difficult to purchase or refinance investment properties. The incentive program, recommended by staff, provides a good option for owners to bring their properties into compliance without large fees that could only be paid through refinancing the property. He supported the proposed plan. Carrie Ann Gillis, 8020 Park Hill Drive, thanked staff for interacting with many different groups to develop a solution for this issue. She supported the proposed plan. Michelle Jacobs, 352 Greentail Drive, Loveland, Fort Collins Board of Realtors, thanked City staff for working with citizens from various viewpoints to craft the proposed incentive plan and she supported adoption of the Ordinance as it is a fair compromise and will provide safer housing for tenants. Brandon Bidwell, 2919 Worthington, stated the twenty-five month application period will provide an incentive for property owners to report unrecorded rental units and will give landlords enough time to comply with the City's rental standards. Sarah Bennett, Fort Collins Board of Realtor President, stated the Board supports the proposed incentive plan and is in the best interests of the community. The twenty-five month timeframe will provided enough time to implement the plan and gain compliance from property owners. Waiving impact fees is the greatest incentive to bring those property owners forward during the voluntary application period. The Board has offered $3000 of in-kind promotion to assist staff in informing the community of the voluntary application period. Chris Guillan, 412 Scott Avenue, Fort Collins Board of Realtors, stated adoption of the proposed incentive plan will lead to safer housing for renters. Rick Hausman, I813 Pawnee Drive, stated adoption of the proposed Ordinance will create safer housing for tenants. Tom Tucker, 3019 Stanford, property manager, did not support adoption of the proposed incentive plan as it is not right to charge fees for a property that was converted to rental units many years ago. Such properties should be"grandfathered" in and not charged any fees. The property owner should not have to prove his property was zoned for duplexes at the time it was converted. The onus should be on the City to prove the property was never zoned for duplexes. 97 April21, 2009 Blue Hovatter;Fort Collins resident,stated the proposed plan was developed to provide safe housing for renters but the timeframe for the plan is too long and should be shorter to require landlords to quickly bring rental property into compliance. The fees should be higher. Clint Skutchan, 719 Great Plains Court, Fort Collins Board of Realtors, stated the rental housing standards adopted by the City contain provisions that allow only 30 days for correction of basic health and safety violations. The timeframe for the proposed plan will not allow landlords the luxury of delaying corrections of basic health and safety violations. The basic development review fee is $192 and the fees proposed in the plan reflect this cost. Raising the fees by a large amount during the last six months of the incentive program would be punitive to those who do not learn of the program until that time. The Board supports the adoption of the proposed plan. Doug Brobst, 1625 Independence Road, stated the current development review fees are $450. Waiving impact fees, which are a considerable sum, is an excellent incentive that will encourage most property owners to bring their rental units into compliance. The proposed plan does not address the issue of property owners who will wait until the very last moment to bring their properties into compliance, even though their tenants are living in unsafe conditions. The fee structure should be much higher to encourage property owners to apply within the first thirteen months. Councilmember Kottwitz asked if a tenant could break a lease because of unsafe living conditions. City Attorney Roy stated State statutes allow certain circumstances where failure to meet the standards established in State law justifies the tenant breaking the lease. The City Code does not govern that issue. Councilmember Kottwitz asked for clarification of the timeframe that will be allowed for property owners to fix any safety violations found on their rental properties. Felix Lee, Director of Neighborhood and Building Services,stated the amount oftime allowed for corrections is dependent on the severity of the issue. If a violation seriously affects the health and safety of tenants,City staff can post the property as "unfit for occupancy." Councilmember Kottwitz asked if staff would work with property owners to prove when a rental property was converted and if it was zoned for that purpose at the time the property was converted. Lee stated staff will assist citizens with the research necessary to provide a date of conversion. The point of the voluntary application period is to encourage compliance. Diane Jones, Deputy City Manager, stated the focus is to determine if the property meets the current rental housing standards and is in the correct zone for rentals. Councilmember Kottwitz asked if a process existed to allow a property located in a zone that does not allow rentals to obtain an exemption. Peter Barnes, Zoning Supervisor, stated a determination will need to be made if the property was ever in a zone that allowed duplexes. If the property was never zoned for duplexes, the process would end and the property could no longer be used as a duplex. 98 April21, 2009 Councilmember Ohlson asked for clarification of the fees that would be charged for this process. Scheick stated a new rental unit built today would be charged$192 for a review fee and $250 for an engineering review. Since the unrecorded units are not new, some streamlining of fees could occur and not every unit reviewed under this policy will be charged $450. The cost of review will most likely be$2004250. The goal is to bring as many properties into compliance as possible and staff is attempting to balance City fees with .providing incentives to property owners to submit applications. Councilmember Ohlson asked if the compliance process will include a requirement that each unit has its own water meter. Lee stated there is no requirement for units to be on separate water or electric meters but the property would be charged multi-family rates for those utilities. Staff will provide more information about the changes in rates for water, stormwater and electric rates. Councilmember Ohlson stated if a property would be required to become a single-family dwelling if it cannot be proven it was originally zoned for duplexes. Lee answered in the affirmative. Councilmember Troxell asked for more information about the improvement of safety in the unrecorded dwelling units. Lee stated health issues would include moisture control to prevent mold, general sanitation, adequate plumbing. Scheick noted some key elements of safety in rental units include egress windows from basement bedrooms, smoke detectors,and electrical wiring that meets Code requirements. Councilmember Roy asked for the number of applicants staff expects if the ordinance is adopted. Scheick stated many property owners are ready to comply as soon as the process is put into place. Councilmember Troxell made a motion,seconded by Councilmember Kottwitz,to adopt Ordinance No. 045, 2009 on First Reading. Councilmember Troxell stated the proposed plan includes input from many different stakeholder groups and the proposal addresses many of the issues raised previously. This plan will encourage compliance with the rental housing standards. The twenty-five month application period allows enough time for properties to voluntarily become approved. Councilmember Kottwitz stated the application process will be productive and encourage property owners to come forward and bring their rental properties into compliance and does not create a punitive approach. Councilmember Ohlson stated the City needs to work harder to ensure a variety of viewpoints are included in any community discussion of issues to make sure all views are considered. Any one viewpoint should not be allowed to dominate. The proposed plan will provide greater compliance for rental units and provide safer and more sanitary living conditions for renters. Councilmember Roy stated the proposed plan does provide a way for unrecorded duplexes to be brought into compliance and will provide a net gain for the City. 99 April21, 2009 Councilmember Poppaw thanked staff for its work in developing the application period. Mayor Hutchinson stated the proposed plan is a balanced approach to a difficult problem and is an attempt to be fair to all sides of the issue. The goal of the plan is to have rental housing that meets health and safety standards and the incentives in the plan should provide encouragement to property owners to submit their applications. The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, Ohlson, Poppaw, Roy and Troxell. Nays: none. THE MOTION CARRIED. Ordinance No. 046, 2009, Appropriating Funds from the City's General Fund Reserves for Transfer to the Fort Collins Urban Renewal Authority for the Purpose of Providing a Loan for the North College Marketplace Project, Adopted on First Reading The following is staffs memorandum on this item. "FINANCIAL IMPACT There will be significant and beneficial financial impacts to both the City of Fort Collins and the Fort Collins Urban Renewal Authority as a result of the North College Marketplace. Over the life of the North College Urban Renewal Authority Plan Area, the project will generate an estimated $16.4 million in tax increment. This action approves the loan agreement between the City and the Urban Renewal Authority (URA) to.finance the commitment made by the URA Commission to the project proponent back in September 2008. The project proponent has delivered the documents reflecting the commitment of Kroger Corporation ("King Soopers) to the project. When the Urban Renewal Authority(URA)Commission approved the agreement in September 2008, interest rates were higher(4.00%)and the related itemization ofthefinancial impact was as.follows: 1. URA Funding for projects elsewhere in the URA Plan Area $4.6 M 2. URA Funding for the North College Marketplace A. City Capital Improvements - College/Willox Improvements $2.8 M B. City Capital Improvements - Stormwater/Wetlands Improvements $1.8 M C. Other Public Improvements - On-Site (not Deeded to City) $3.4 M Subtotal for Funding of the Project Public Improvements $8.0 M 3. URA Funding for financing costs to URA $3.8 M Total Financial Impact of the Project 16.4 M 100 April21, 2009 Now that interest rates have dropped significantly (2.85%), the related itemization of the financial impact is as.follows: 1. URA Funding for projects elsewhere in the URA Plan Area $5.8 M 2. URA Funding.for the North College Marketplace A. City Capital Improvements - College/Willox Improvements $2.8 M B. City Capital Improvements - Stormwater/ Wetlands Improvements $1.8 M C. Other Public Improvements - On-Site (not Deeded to City) $3.4 M Subtotal for Funding of the Project Public Improvements $8.0 M 3. URA Funding for financing costs to URA $2.6 M Total Financial Impact of the Project 16.4 M The decline in interest rates as compared to the projection in September when the Financial Assistance Agreement was approved results in an additional$1.2M being available for projects within the overall North College URA Plan Area. EXECUTIVE SUMMARY The Urban Renewal Authority (URA) is seeking a loan from the City to establish monetary flow of funds to begin the North College Marketplace wetlands mitigation reimbursement and of street infrastructure capital improvement projects and the demolition and property cleanup. The cost of these projects, without financing charges, total $4,942,476. The requested loan amount from the City ofFort Collins' General Fund Reserves to the Urban Renewal Authority will be 55,000,000. The URA will utilize the City's Interfund Borrowing program that was formally added to the City's investment policies last year. This program enables the City to use a portion of its investment portfolio to assist CityDepartments and related entities(e.g.,the Downtown Development Authori(y, and the Urban Renewal Authority)to access funds at a competitive interest rate while still providing a market based yield to the City investment portfolio. BACKGROUND On September 16, 2008, the URA Board approved Resolution No. 011, authorizing an agreement between the URA and 1908North College, LLCto providefinaaxcial assistancefor the North College Marketplace. It was determined at that time that the URA would need to borrow the fiords to pay for the public improvements and then bond against that amount in the fixture. The URA is proposing to borrow a total of$5,000,000 from the City. The City and the URA entered into an intergovernmental agreement on August 15, 2006 allowing the City to advance funds to the URA in support of its activities. Any such advance of funds shall be evidenced in writing in the form of a loan memorialized by a promissory note or a grant, which 101 April21, 2009 transaction shall not be valid until f rst having been approved by both the City Council and the URA Commission." Additionally, the 2008 Updated Investment Policy mod4ied on December 2, 2008 will allow for Interfund Borrowing. Attached is Exhibit C (Attachment 1)from the Redevelopment Agreement.for the North College Marketplace project whereas the public improvements have been listed to include total costs. The two line items regarding this action are listed below: *Off Site Street Infi-astructure (Local Street Portion) $2,812,620 *Wetlands Mitigation, Landscaping, Unsuitable Materials and Payment to the Wetlands Reserve - Natural Areas Fund $1,763,206 *Demolition and Property Cleanup Cost $ 366,650 Subtotal $4,942,476 *Contingency Funds 57,524 Total $5,000,000 All costs are the same as presented to the URA Board on September 16, 2008. " Christina Vincent, Urban Renewal Authority Planner, stated approval of the proposed loan to the Urban Renewal Authority (URA) will enable road improvements on North College Avenue and Willox, utilities and site preparation with wetlands mitigation to begin. Chuck Seest,Finance Director,stated interest rates have improved significantly since the project was approved last September. As a result, the financing costs have dropped from $3.8 million to $2.6 million and the difference is available to be utilized in the project area. The teens of the loan agreement will make$5 million available to the URA ten days after second reading of this ordinance. The interest rate is tied to the 10-year T-note. The URA plans to repay the note within a 10-13 year timeframe. However, the URA is subject to a 5% late charge if it is late on an annual payment. Once the funding is provided to the URA, the URA will appropriate the funds into a City capital project in order for the street and stonnwater improvements to be made. Another loan agreement will be presented to Council in the fourth quarter of 2009 for the remaining $3 million of project costs. Bringing the loans in a phased manner lowers the overall cost to the URA and preserves the City's ability to retain its capital, as well. Councilmember Ohlson asked if the URA will receive a larger portion of the funds if construction costs are lower than projected. Seest stated it is likely there will be savings on the street improvement project. The URA funds are used only on a reimbursable basis, to paid for expenses already incurred. A significant portion of the improvements projects are City capital projects and are under the control of the City and fall under the City's purchasing policies. 102 April21, 2009 Councilmember Ohlson asked for information regarding the quality of wetlands being restored. Joe Frank, Advance Planning Director, stated the mitigation project will produce a better quality of wetlands than is currently at the site. The wetlands will be given to the City,once the improvements are installed. The Project agreement states the businesses that will be located on the site will provide ongoing funding for maintenance of the wetlands. Councilmember Ohlson asked for updates on future wetlands mitigation projects that would indicate how well the mitigation is working. Councilmember Roy asked for an update on the North College Marketplace Project. Eric Holsapple, developer,stated the Project is ahead of schedule and is almost through the City's approval process. The Planning and Zoning Board will consider the site planning issue in May. The bidding process is continuing for the Project and lower steel and asphalt prices are helping to decrease costs. Councilmember Roy asked why King Soopers is not interested in attaining a LEED certification. Mr. Holsapple stated the design of King Soopers stores meets 75-80% of LEED requirements, but the expense to achieve a LEED certification is too great and does not give them a great enough return on investment. Councilmember Roy asked how the downturn in the economy is affecting King Soopers' plans for the site. Mr. Holsapple stated King Soopers is planning to build marketplace at its original size of 120,000 square feet. Councilmember Ohlson asked if other developments that come to this intersection after this Project will be required to pay a share of the street improvement costs. City Manager Atteberry stated improvement costs will be collected from future developments and those funds will be returned to the URA for other projects. Councilmember Ohlson stated future projects that receive URA funding should be required to achieve LEED certification. Councilmember Poppaw asked if it is possible to require the North College Marketplace to achieve LEED certification. Mr. Holsapple stated King Soopers is examining every cost associated with this project and is not willing to spend any more money towards LEED certification. The cost of achieving LEED certification could stop the project completely. City Manager Atteberry stated adding a LEED certification requirement to URA policies is possible,but it does come with a cost. In some cases, a project may choose not to come to Fort Collins if it must meet that requirement. Staff has discussions with developers about LEED certification and green building practices and encourages new development to meet that standard. Councilmember Ohlson made a motion,seconded by Councilmember Roy,to adopt Ordinance No. 046, 2009 on First Reading. Councilmember Ohlson stated when a project has received incentives from the City, such as URA funding, the project should be required to reach LEED certification. 103 April21, 2009 The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, Ohlson, Poppaw, Roy and Troxell. Nays: none. THE MOTION CARRIED. Adjournment The meeting adjourned at 9:55 p.m. Mayor ATTEST: City Clerk 104