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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/02/2010 - CONSIDERATION AND APPROVAL OF THE MINUTES OF THE J DATE: February 2, 2010 AGENDA ITEM SUM ARY STAFF: Wanda Krajicek FORT COLLINSCO NCIL Consideration and Approval of the Minutes of the January 19, 2010, Regular Meeting. i January 19, 2010 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 19,2010, 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, Kottwitz, Manvel, Ohlson, Poppaw, Roy, and Troxell. Staff Members Present: Atteberry, Krajicek, Roy. Citizen Participation Ray Czaplewski, 2012 Huntington Circle, thanked Council for budget decisions supporting neighborhood services, including reinstating funding the Code Enforcement Officer position. Lloyd Walker, 1756 Concord Drive, expressed support for licensing rental properties in single- family zoning districts. He encouraged Council to proactively enforce rental property standards. Stacy Lynne, 216 Park Street, expressed concern regarding the vendor selected for the City's pilot trash district. She asked how and when residents in the pilot district would be notified of the public hearings. She expressed concern about the"Pay-as-You-Throw" ordinance. Citizen Participation Follow-up Mayor Hutchinson stated trash districting is constitutional and quite common in the United States. He added there were no individual notices sent to residents within the pilot trash district, not due to cost,but due to a Council decision. He stated there will be a special hearing regarding the issue on February 2, 2010, two weeks prior to the First Reading of the ordinance. The hearing will involve a staff presentation from City staff and Waste Management staff and will provide an opportunity for citizen questions and staff responses. Councilmember Troxell stated he would like all citizen questions to be answered and asked what the process will be for answers not readily available at the hearing. City Manager Atteberry stated staff is prepared to answer questions at the hearing and noted Council should continue the item if Councilmembers disagree. Mayor Hutchinson stated all questions will be recorded at the hearing and all questions will be answered prior to any Council vote on the item. 73 January 19, 2010 Ann Turnquist, Policy and Project Manager, stated two articles in the Coloradoan and one in the Northern Colorado Business Report have been written regarding the pilot trash district, a press release was issued,Twitter will be used,and the neighborhood newsletter and e-mail list will notify residents of the hearing. The City will also e-mail individuals who have asked, through the City's webpage, to be notified of hearings relating to the topic. Additionally, Channel 14 will broadcast the hearing dates. Agenda Review City Manager Atteberry stated there were no changes to the published agenda. Stacy Lynne, 216 Park Street, withdrew Item #10, Resolution 2010-002 Authorizing the City Manager to Apply for Liquor Licenses on Behalf of the City. CONSENT CALENDAR 6. Consideration and Approval of the Minutes of the December 1, 2009, December 15, 2009, and January 5, 2010 Regular Meetings. 7. Second Reading of Ordinance No. 001, 2010, 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 5, 2010, appropriates the grant funds. 8. First Reading of Ordinance No. 002, 2010, Amending Section 2-445 of the City Code Regarding Membership on the Youth Advisory Board. This Ordinance changes the membership of the Youth Advisory Board from its current membership of 7 to a range of 5 to 9 members. This change provides greater flexibility to accommodate fluctuating interest by young people in serving on the board. In the past, it has been difficult at times to secure and retain seven engaged board members. Currently, there are young people interested and excited about serving on the board,but no vacancies. 9. Resolution 2010-001 Approving Revised Costs and Fees for Fort Collins Municipal Court. The Fort Collins Municipal Court assesses various costs and fees, in addition to fines and other penalties. According to the City Charter,these costs and fees are enacted by Council, upon recommendation of the Judge. Various costs and fees have been approved by resolution over the years. At this time, Judge Lane recommends making some minor changes: adding a Collection Fee, revising the applicability of the Did Not Pay Fee to 74 January 19, 2010 expand it,changing references to promissory notes to instead refer to payment plans(as they are referred to in the Court's current computer software version), and changing the title of the Short Check Fee to "Returned Check Fee"to be more descriptive. The Traffic Calming Surcharge, adopted by Council by ordinance,has also been added to the list so that all costs and fees assessed by the Court are included. 10. Resolution 2010-002 Authorizing the City Manager to Apply for Liquor Licenses on Behalf of the City. This Resolution authorizes the City Manager, on behalf of the City, to apply for liquor licenses for City facilities as the City Manager determines appropriate. It also authorizes the City Manager to designate other members of City staff as the City Manager deems appropriate to apply(as co-applicant)on behalf of the City for such licenses and to apply to be a registered manager of a licensed premises. The application for, and management of, the licensed facilities will, for the purposes of indemnification under the City Code and the Colorado Governmental Immunity Act (CGIA), be considered within the scope of employment of the City Manager and his designees and among the official duties they are to perform for the City. ***END CONSENT*** Ordinances on Second Reading were read by title by City Clerk Krajicek. 7. Second Reading of Ordinance No. 001, 2010, Appropriating Unanticipated Grant Revenue in the General Fund for the Police Services Victim Services Team. Ordinances on First Reading were read by title by City Clerk Krajicek. 8. First Reading of Ordinance No. 002, 2010, Amending Section 2-445 of the City Code Regarding Membership on the Youth Advisory Board. 14. Items Relating to Net Metered Electric Service and Interconnection Standards of Electric Generation Facilities to the Fort Collins Electric Distribution System. A. Hearing and First Reading of Ordinance No. 003, 2010, Amending Chapter 26, Article VI of the City Code Relating to Net Metered Electric Service. B. Hearing and First Reading of Ordinance No. 004, 2010, Adopting Standards for Interconnection of Electric Generation Facilities to the Fort Collins Electric Distribution System. Councilmember Manvel made a motion,seconded by Councilmember Troxell,to adopt and approve all items on the Consent Calendar with the exception of pulled Item No. 10. Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: None. 75 January 19, 2010 THE MOTION CARRIED. Staff Reports City Manger Atteberry stated staff would give a brief update regarding the voter-approved Lincoln Center remodel. Jill Stillwell,Cultural Services Director,stated the Lincoln Center is 31 years old and has an average of 250,000 visitors each year. Renovations will include expanding the number of restrooms, improving performer facilities,and improving acoustics. She stated the renovation is slated to meet LEED gold standards for sustainability. The estimated cost of the renovation is approximately$7.2 million which includes $5.5 million in funding from the Building on Basics capital tax renewal, a $621,000 grant from the Downtown Development Authority, and a fundraising goal of$1 million. Stillwell detailed the remodel plans and stated the project will go to bid in April, 2010, with ten months of renovations beginning June 1, 2010. She stated the Lincoln Center will be closed during that time. Mayor Hutchinson commended the project and the preservation of some of the building's original characteristics. Councilmember Manvel asked about the displacement of the groups that regularly use the facility. Stillwell replied groups have found or will find other venues and the Showstopper series will not be available during the closure. Councilmember Roy discussed a suggestion he had received from a citizen regarding the placement of a traffic calming roundabout with an art project on Canyon Avenue. Brian Janonis, Utility Services Executive Director, introduced Bill Freeman, the new Utilities Finance and Budget Manager. Items Relating to Net Metered Electric Service and Interconnection Standards of Electric Generation Facilities to the Fort Collins Electric Distribution System, Adopted on First Reading The following is staff's memorandum for this item. "EXECUTIVE SUMMARY A. Hearing and First Reading of Ordinance No. 003, 2010, Amending Chapter 26, Article VI of the City Code Relating to Net Metered Electric Service, Adopted on First Reading. B. Hearing and First Reading of Ordinance No. 004, 2010, Adopting Standards for Interconnection of Electric Generation Facilities to the Fort Collins Electric Distribution System, Adopted on First Reading. 76 January 19, 2010 The proposed net metering rate and interconnection standards have been developed with the goal of establishing rates and standards that encourage and facilitate the installation of renewable generation within our community. As requested, staff is proposing net metering language that establishes limits similar to those established by the Colorado Legislature through Colorado Revised Statute §40-2-124, and subsequently by the Colorado Public Utilities Commission (PUC)for customers served by investor owned utilities. The PUC has established net metering limits at 120%of annual consumption. The PUC also enacted language limiting the installation to the capacity of the service entrance. The proposed interconnection standards have been developed to support the adoption of a net metering rate that enables customers to install renewable generation capable of supplying up to 120% of their annual kilowatt-hour consumption. The standards define the requirements of the connection between the utility and the customer's generator to insure a safe connection thatprotects the distribution system, adjacent customers, the generator and the customer. BA CKGR O UNDIDIS C USSION At the May 19, 2009, Fort Collins City Council meeting, Council adopted on First Reading, a net metering ordinance. However, at that meeting, Council asked staff to add language that more clearly defined generation limits. On June 2, 2009, Council tabled the Second Reading of a proposed net metering rate ordinance. Prior to the Council meeting on June 2, 2009, Council expressed a desire to adopt net metering levels similar to those that were adopted by the State of Colorado through C.R.S. §40-2-124. The PUC set limits at 120%of consumption in the Colorado Code of Regulations§723-3-3664. Consideration of the net metering rate ordinance was postponed to allow staff to develop interconnection standards that would define interconnection requirements specific to the Fort Collins distribution system and define settings that considered the level of potential generation defined in C.R.S. §40-2-124. Staff is presenting the attached optional net metering language and interconnection standards for City Council consideration. The specific language as adopted by the PUC in response to C.R.S. §40-2-124 is provided below: 3664. Net Metering. (a) All investor owned QRUs (Qualified Retail Utility) shall allow the customer's retail electricity consumption to be offset by the electricity generated from eligible energy resources on the customer's side of the meter that are interconnected with the QRU, provided that the generating capacity of the customer's facility meets the following two criteria: (I) The generator shall be sized to supply no more than 120 percent of the customer's average annual electricity consumption at that site, where the site includes all contiguous property owned or leased by the consumer, without regard 77 January 19, 2010 to interruptions in contiguity caused by easements, public thoroughfares, transportation rights-of-way, or utility rights-of-way; and (II) The rated capacity of the generator does not exceed the customer's service entrance capacity. Staff is proposing adoption of the same limits as defined in (I) and(II) above. Staff has developed and is proposing adoption of the Standards for Interconnection of Electric Generation Facilities to the Fort Collins Electric Distribution System (the "Standards'). The Standards provide a guideline for customers who want to connect a generator to the Fort Collins electrical distribution system. The Standards have been developed to enable connection ofdifferent types of electric generation, including inverter based, such as solar photovoltaic and small wind generation, induction and synchronous generators. The Standards insure a safe connection that protects the customer, the generator, adjacent customers and the distribution system. Additionally, the Standards facilitate the installation of distributed generators by providing clear requirements to customers. Historically, Light and Power has applied the Institute of Electrical and Electronics Engineers (IEEE) standard 1547 as the guideline for existing interconnection requirements. In order to maximize the level of distributed generation on the system and ensure the continued safe operation of the system, Light and Power staff worked with NEI Engineering,specifically Dr.Keith Malmedal and Dr. P.K. Sen, to develop interconnection standards specific to the Fort Collins distribution system. FINANCIAL IMPACT The proposed net metering rate requires Fort Collins Utilities to purchase excess annual kilowatt- hour production generated by the customer's generator at the customer's retail energy rate. As the number and size of net metered customers grows, the financial impact the rate is having on Light and Power revenues will need to be reviewed. Currently the City has less than 50 net metered customers and has made payment to two. SUSTAINABILITY: ECONOMIC, ENVIRONMENTAL,AND SOCLAL IMPACTS The overarching goal in the development of the net metering rate and the Standards is to develop rates and standards that facilitate the installation of renewable generation in the community. The intent ofproviding net metering to customers is to ensure that customers are given the full value for the energy generated and are allowed credit for any excess energy generated. Ensuring that customers can obtain the maximum value from the utility towards their investment in renewable generation encourages installation. This benefits both the customer and the environment. Approximately 1.61 pounds of CO2 are avoided for each kilowatt-hour saved. " 78 January 19, 2010 Mayor Hutchinson stated this agenda item will be treated as two separate issues for discussion purposes and asked for the staffpresentation regarding Ordinance No. 003, 2010,Amending Chapter 26, Article VI of the City Code Relating to Net Metered Electric Service. Steve Catanach, Light and Power Operations Manager, stated Council adopted a net metering ordinance on First Reading on May 19, 2009 but, prior to Second Reading, state requirements changed regarding net metering and staff needed more time to work on interconnection requirements. He stated net metering is only required for eligible or qualified renewable energy resources including solar, fuel cell, wind, geothermal, combined heat and power, and biomass. Catanach added the net metering ordinance is structured to define how to financially handle excess energy generation. The recommendation is to carry any excess energy generated by a customer in one month, to the following month with the production reset to zero at the end of a year. The ordinance also recommends a 120% net metering limit with the year running from April to March rather than a calendar year. Staff is also recommending compensating customers for excess energy generation at the customer's retail energy rate. Rick Coen, 412 Garfield, thanked staff for working with him and other solar installers in Fort Collins and expressed support for the ordinance. Phil Friedman, 201 South Grant, stated he is a member of the Natural Resources Advisory Board. He expressed support for the ordinance and asked how new construction might be considered,given these projects would not have any historical basis for their electrical consumption. He asked staff and Council to consider feed-in tariffs in the future. Sue Radford, 2732 Wakonda, asked staff and Council to consider feed-in tariffs and provide real financial incentives for people to install solar panels. Eric Sutherland, 631 LaPorte Avenue, expressed concern about the process being used to regulate the City's electric utility. He opposed the ordinance stating net metering is a 1990s technology. He expressed support for feed-in tariffs. Councilmember Roy asked for a definition of feed-in tariffs and the possibility of it happening in Fort Collins. Catanach replied Fort Collins staff and Mayor are meeting with the Mayor of Gainesville, Florida regarding feed-in tariffs. He stated feed-in tariffs involve paying a cost for renewable energy that a customer may install and purchasing that energy at a premium rate. Councilmember Roy asked for a more formal report on the topic. Councilmember Troxell asked about the organic agreement and its impact on net metering. Catanach replied it has no impact on net metering. He stated the power supply agreement and organic contracts have not been fully completed. Councilmember Troxell asked if microturbines and back pressure steam turbines would be considered additional resources required to be approved by Council action, or would fall into the 79 January 19, 2010 category of combined power. Catanach replied microturbines would be combined heat and power and, if electricity is secondary to the process, the back pressure steam turbines would as well. Councilmember Troxell asked if a variance was possible regarding the 120% net metering limits. Catanach replied Council would need to approve any variance. Councilmember Troxell asked if this impacts the "three percent of local generation" in the power supply agreement. Brian Janonis, Utility Services Executive Director, replied the City is currently operating under the existing power supply agreement which expires in 2030 or 2040 and has not allowed any municipally-owned self-generation. Councilmember Roy asked if a list of specific eligible renewable resources available and how other resources could be added to the list. Catanach replied resources need to fall into the six previously mentioned categories: solar, fuel cell, wind, geothermal, combined heat and power, and biomass. Councilmember Poppaw asked if there is a formal, long-term vision in mind. Catanach replied the intent of net metering is to provide some incentive to assist customers in the financial justification for installing a renewable system. Once the costs of renewable systems come down,rates will need to be examined. Councilmember Manvel asked about properties with no history of consumption. Catanach replied options include community solar gardens and the sale of shares in a development of renewable energy. He stated calculations would be made for anticipating energy consumption of new structures. Councilmember Poppaw asked with whom staff consulted in terms of outreach. Catanach replied staff made several presentations to the Electric Board and asked solar installers to review the net metering proposal and the interconnection standards. Councilmember Troxell made a motion, seconded by Councilmember Poppaw,to adopt Ordinance No. 003, 2010, on First Reading. Councilmember Troxell commended staff on this step as the first of many. Councilmember Poppaw stated this protects the current system without limiting future potential. Councilmember Manvel agreed there are future options and commended staff. Mayor Hutchinson stated this does enable necessary changes and expressed support for the ordinance. The vote on the motion was as follows:Yeas:Hutchinson,Kottwitz,Manvel,Ohlson,Poppaw,Roy and Troxell. Nays: None. THE MOTION CARRIED. 80 January 19, 2010 Mayor Hutchinson asked for the staff presentation regarding Ordinance No. 004, 2010, Adopting Standards for Interconnection of Electric Generation Facilities to the Fort Collins Electric Distribution System. Steve Catanach, Light and Power Operations Manager, stated this ordinance involves standards for interconnecting all types of distributed generation to the electrical system, not only renewable sources. The intent of the standards is primarily to protect the line crews, to protect customers' generating equipment from damage, to protect adjacent facilities from damage or power quality problems, and to provide customers with clear guidance regarding interconnection requirements. He stated the standards were designed so as to not limit the level of renewable generation that could be installed. Eric Sutherland, 631 LaPorte Avenue, expressed concern that the Fort Collins Utilities are not as advanced as it is making itself out to be. He asked how much money the City is spending on Utilities consultants and stated feed-in tariffs are widely used around the country. Phil Friedman, 201 South Grant Avenue, stated the ordinance will ensure safe connections with distributed generation and protects the system. He stated the net metering and interconnection standards should remain flexible for future changes. Rick Coen,412 Garfield,stated Fort Collins has really been doing net metering for years,and is just now codifying it. He commended staff for work on the interconnection standards. Councilmember Troxell asked if the primary purpose of the interconnection standards is safety. Catanach replied protection of employees,customers'generating equipment,adjacent customers and the system are all primary purposes. Councilmember Troxell asked if having the interconnection standards is fundamental to having the ability to net meter and export electric power. Catanach agreed and stated, in order for a customer to meet the 120% level of consumption, there is potential to install equipment allowing up to six times its peak load generating capacity. This is another reason for the interconnection standards. Councilmember Troxell stated there is a fundamental change going on at the distribution utility to allow for two-directional flow of electric power. Councilmember Troxell asked about the Advanced Metering Infrastructure and installation of smart meters. Catanach replied the meters are another component in the two-way flow. Councilmember Troxell asked if the interconnection standards would allow for the possibility of microgrids within the distribution utility. Catanach replied the standard could be adapted to address those kinds of things in the future. 81 January 19, 2010 Councilmember Roy made a motion,seconded by Councilmember Poppaw,to adopt Ordinance No. 0041 2010, on First Reading. Councilmember Troxell stated this is an important piece in the building of a distribution system that can enable the integration of renewable forms of electric generation. The vote on the motion was as follows:Yeas:Hutchinson, Kottwitz,Manvel,Ohlson,Poppaw,Roy and Troxell. Nays: None. THE MOTION CARRIED. Resolution 2010-002 Authorizing the City Manager to Apply for Liquor Licenses on Behalf of the City, Adopted The following is staff s memorandum for this item. "EXECUTIVE SUMMARY This Resolution authorizes the City Manager, on behalf of the City, to apply for liquor licenses for City facilities as the City Manager determines appropriate. It also authorizes the City Manager to designate other members of City staff as the City Manager deems appropriate to apply (as co- applicant) on behalf of the City for such licenses and to apply to be a registered manager of a licensed premises. The application for, and management of, the licensed facilities will, for the purposes of indemnification under the City Code and the Colorado Governmental Immunity Act (CGIA), be considered within the scope of employment of the City Manager and his designees and among the official duties they are to perform for the City. BA CKGRO UND/DISCUSSION The City Manager initially intends to apply as co-applicant for a hotel-restaurant liquor license on behalf of the City and the licensed premises will be the Northside Aztlan Community Center (NACC). The NACC makes certain facilities available for the public for rent and many renters wish to serve alcohol at their events. Although NACC staff submitted two different RFPs to select a private vendor to sell alcohol at NACC, no one submitted a proposal the first time and one proposal was submitted the second time but did not meet the City's qualifications. The Lincoln Center and the Senior Center do have a private vendor selling alcohol at events in these facilities. The vendor holds the liquor licensefor thefacility. The Lincoln Center and Senior Center host more events where alcohol is sold than are hosted by the NACC, so they were able to secure a vendor, unlike the NACC. Under current City policy, the City allows those who rent space at the NACC to serve alcohol gratuitously at private events. Consequently, alcohol cannot currently be sold at the NACC. 82 January 19, 2010 Renters who wish to serve alcohol at private events must buy it themselves and provide it to patrons at no charge. This greatly increases the expenses of holding events at the NACC, and limits its ability to attract rentals. If the City holds the liquor license, renters would not have to incur the expense of providing the alcohol. Beverages could be sold to event guests, with revenues covering expenses and producing a profit for NACC. The application and qualification process for the City's hotel-restaurant license for NACC will be conducted through the City Clerk's Office. Designated City staff will complete the registered manager application and will name the management-level person who will be responsible for the day-to-day management of alcohol sales and service at the applicable City facility. If this Resolution is adopted by the City Council, the City Manager may also apply for other City facilities to become liquor licensed establishments instead of having a vendor hold the license. The City Manager is required to provide Council with at least 60 days advanced written notice of any proposed liquor license application. Adoption of the Resolution provides the City Manager with the authority to apply for and hold a liquor license on behalf of the City. This Resolution makes it clear the City Manager's actions in this regard are within the scope of his responsibilities and those of his designees. FINANCIAL IMPACT With the City holding the liquor license, renting NACC becomes more affordable, and attractive from a customer standpoint. More renters will select NACC as the place to host events if alcohol service is provided by the NACC. Funds to purchase alcohol will be provided from the NACC rental budget. Revenue generated from the sale of alcohol during these events will more than offset any expense and will add to the overall revenue base of the NACC. " City Manager Atteberry stated the intent of this item is to keep various City facilities competitive in the marketplace for certain events. Stacy Lynne,216 Park Street,asked if buying and selling liquor is an essential government service. She expressed concern about a consent agenda item in November, 2009, involving a City liquor license. Councilmember Ohlson asked if any type of outreach to businesses with liquor licenses was done regarding the item in November. Steve Budner, Recreation Area Manager, replied staff went through the liquor licensing application process which involves posting notice of the hearing on the facility at least 30 days prior to going before the liquor licensing authority. Councilmember Ohlson asked if there is currently a vendor at the Lincoln Center and if this item is being proposed in part because there is no private sector interest in bidding for liquor sales at these facilities. Marty Heffernan, Director of Culture, Parks, Recreation, and Environment, stated 83 January 19, 2010 a request for proposals was put out for vendors to provide this service when the Northside Aztlan Community Center(NACC) was opened and none were received. Councilmember Ohlson asked how many City facilities currently have a vendor to sell alcohol. Heffernan replied the Senior Center and the Lincoln Center have concessionaires that hold liquor licenses. Non-profit organizations also have the ability to obtain Special Event Permits to serve alcohol for one-time events. Councilmember Ohlson stated he understood this is in part due to Recreation budget cuts but expressed concern about the NACC having more of a youth orientation and was,therefore,perhaps not an appropriate location for liquor sales. Budner replied the NACC was partly designed to provide fairly low-cost room rentals for wedding receptions and other community events. He stated it keeps these events in Fort Collins and provides an affordable venue that might not otherwise be available. He stated the venue is not in competition with local businesses because the price point is too low and the level of service is not as high. He added that most of these events occur in the evening after the facility is closed and there are procedures in place to make certain events occurring during the day are appropriately monitored. Councilmember Ohlson asked if staff has had any feedback regarding the general concept of alcohol being introduced into a community center. Budner replied he had a meeting with one citizen and stated there will be no restaurant type atmosphere; the liquor license will be for rental situations only. Councilmember Ohlson stated this resolution would authorize the City Manager to apply for a liquor license for future events at City facilities. City Manager Atteberry stated he does intend to give approval for the liquor license at the NACC and added he has had only a few comments from citizens regarding the issue. He added he is required to notify Council before applying for a liquor license for any City facility. Councilmember Roy asked if an amendment to the resolution prohibiting liquor sales at the NACC would render the resolution impossible to enforce. Councilmember Manvel noted that, for any City facility including the NACC, there is a 60-day window between the City Manager notifying Council and Council giving its approval. City Manager Atteberry clarified this resolution does authorize the City Manager to move forward with the NACC liquor license application and the 60-day notice would apply to other facilities in the future. City Attorney Roy clarified that Councilmember Roy is not in favor of a liquor license at NACC and stated it is possible for this resolution to be modified to allow the City Manager to make other applications while not giving him the latitude to do it at NACC. 84 January 19, 2010 Councilmember Roy asked what the total annual income is expected to be from a liquor license at NACC. Heffernan replied the current estimate involves losing two or three rentals per month, at $400 to$800 each,without a liquor license. The total potential loss in rental income would fluctuate between $9,600 and $28,800 per year. Councilmember Troxell asked what the current process is for serving alcohol at the NACC. Heffernan replied alcohol can be served at an invitation-only event but not sold; therefore the host cannot recoup the cost of buying the alcohol. Mayor Hutchinson clarified this license will be used at specific events and buying and selling liquor would not be allowed as a matter of course. City Manager Atteberry stated this will be closely monitored and will involve appropriate hiring and serving procedures. Councilmember Manvel noted the resolution does not specifically lay out the ability for the City Manager to move ahead with the license for the NACC. City Attorney Roy noted Council can only authorize the application for a license;the liquor licensing authority would actually grant the license. Heffernan clarified that the intention was to allow the liquor license application to move forward at the NACC without the 60-day Council notification process. City Attorney Roy stated the resolution can be amended to allow the application to move forward at the NACC without the 60-day notification period. Councilmember Roy asked how many events occur annually at NACC at which alcohol is served. Budner replied there were 185 events last year, approximately 130 of which provided alcohol. Councilmember Troxell asked if this resolution would allow a liquor license in perpetuity. Jenny Lopez-Filkins,Assistant City Attorney,replied a liquor license,once approved by a liquor authority, is renewed on an annual basis assuming no suspension of the license. She clarified this resolution simply grants the City Manager the authority to apply for a liquor license and stated annual renewals of liquor licenses are handled through the City Clerk's Office. Councilmember Troxell asked who would be taking on the responsibility of potential improper liquor service. Lopez-Filkins replied there is potential individual liability on behalf of individual City employees, particularly the City Manager. The City itself could also have potential liability. It is likely,under the Colorado Governmental Immunity Act,that the City and the individual would be immune from lawsuit assuming no willful misconduct. City Attorney Roy stated the purposes of the resolution are to make certain Council approves the policy of holding liquor licenses at City facilities and to ensure that the application for and holding of the license and management of the facilities is within the scope of the employment of the City employees involved. 85 January 19, 2010 Councilmember Troxell asked if bartenders would be City-paid employees. Heffernan replied the intent is to hire a trained concessionaire who would actually provide the service while the City holds the liquor license. City Attorney Roy stated the City would do what it could, contractually with the concessionaire, to protect the City and its employees from liability. Councilmember Troxell asked if there is a conflict with the City Manager applying for a liquor license from the Liquor Licensing Authority. Lopez-Filkins replied the Liquor Licensing Authority is Municipal Court Judge Kathleen Lane. City Attorney Roy stated the Judge may need to have someone act in her stead if there were an enforcement action against the City. Councilmember Roy made a motion, seconded by Councilmember Manvel, to adopt Resolution 2010-002, including language that clearly outlines the intent and provisions as discussed. City Attorney Roy clarified the intent is to authorize applying for the NACC liquor license without the 60-day Council notification process. He suggested the following language: the City Manager is hereby authorized to apply for a liquor license on behalf of the City to be held at NACC and at such other City facilities as the City Manager deems appropriate, provided however that the City Manager is to notify the City Council in writing of any such proposed application for facilities other than NACC at least 60 days prior to filing of the same. Councilmember Troxell stated he would not support the resolution, citing potential liability concerns. Councilmember Manvel stated he would support the resolution in order to allow the maximum use of the NACC. Councilmember Ohlson stated this item should not have been on the Consent Calendar and commended the discussion which resulted in his support of the resolution. Mayor Hutchinson stated there is a need for this type of service and expressed support for the resolution. The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw and Roy. Nays: Troxell. THE MOTION CARRIED. Other Business Mayor Hutchinson stated, in response to a citizen question, trash districting is legal and constitutional and noted the City's legal staff is capable of ensuring that the City stays within legal and constitutional boundaries. 86 January 19, 2010 Executive Session Authorized Councilmember Ohlson made a motion, seconded by Councilmember Manvel, to adjourn into Executive Session, as permitted under Sections 2-31(a)(2) and (a)(3) of the City Code, for the purposes of discussing the possible acquisition of real property and meeting with attorneys for the City about pending litigation and related legal issues. The vote on the motion was as follows:Yeas:Hutchinson,Kottwitz,Manvel,Ohlson,Poppaw,Roy and Troxell. Nays: none. THE MOTION CARRIED. Adjournment The meeting adjourned at 10:05 p.m. Mayor ATTEST: City Clerk 87