HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/16/2010 - CONSIDERATION AND APPROVAL OF THE MINUTES OF THE O DATE: November 16, 2010
STAFF: Wanda Krajicek • - • •
Consideration and Approval of the Minutes of the October 19 and November 2, 2010, Regular Meetings.
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October 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, October 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
David May, Fort Collins Chamber of Commerce, discussed the Chamber's position on the subject
of economic development.
Eric Sutherland, 3520 Golden Currant, discussed a public records request he submitted regarding
the Smart Gird project.
Bruce Lockhart, 2500 East Harmony Road, asked about funding sources for the "Yes on 2B"
campaign.
Ross Cunniff, 2267 Clydesdale, supported Ballot measure 2B.
Heather Wolhart, 2520 Constitution Avenue, asked about various tax increase proposals and
opposed potential changes to floodplain regulations.
Mary Atchison,2024 Linden Lake Road,thanked Council and staff for continued investment in City
amenities and supported Ballot measure 2B.
Citizen Participation Follow-up
Mayor Hutchinson asked for a response regarding Mr. Sutherland's open records request. City
Attorney Roy replied the request was for documentation of claims regarding savings from water
meter replacement and regarding the 1 1-year payback period for meter replacement and other Smart
Grid enhancements. Staff provided documents produced by staff in which the savings had been
calculated and the payback period had been determined. A claim of confidentiality exists with
regard to the methodology by which the determinations were made. The consultant considers that
methodology to be proprietary information; the disclosure of which would put the consultant at a
competitive disadvantage. The support for keeping that information confidential comes from the
Colorado Open Records Act.
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October 19, 2010
Councilmember Ohlson stated Council should err on the side of openness and providing public
information. City Manager Atteberry stated the City organization has only a minimal set of
circumstances under which it would not act in a fully open manner. City Attorney Roy stated, not
only as a matter of policy, but as a matter of law, the vast majority of records in the City's
possession must be made available.
Councilmember Roy asked if the City had signed a non-disclosure agreement with the consultant.
City Attorney Roy replied in the negative and stated a professional services agreement with the
consultant did not reference confidentiality. The question of proprietary information came about
when the consultant responded to the open records request.
Mayor Hutchinson stated the proposed sales tax increase would assist in balancing budget shortfalls.
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 September 21 and October 5, 2010
Regular Meetings.
7. Second Reading of Ordinance No. 104, 2010, Appropriating Unanticipated Grant Revenue
in the General Fund for the East Building Roof Rehabilitation of the Paramount Cottage
Camp, 1544 West Oak Street.
This Ordinance, unanimously adopted on First Reading on October 5, 2010, appropriates
unanticipated revenue in the amount of$67,100 for the east building roof rehabilitation of
the Paramount Cottage Camp, 1544 West Oak Street. A grant in the amount of$33,550 is
provided by the Colorado Historical Society's State Historical Fund. The building's owners,
Maureen Plotnicki and Stephen Weber are providing matching funds. The State Historical
Fund grant is in addition to the previous grant the City received in early 2010 for this
property. The City will not be responsible for any monetary contribution, but will only be
responsible for administering the grant and the cash match funds.
8. Second Reading of Ordinance No. 105, 2010, Amending_Ordinance No. 100, 2009, for the
Purpose of Removing the Requirement to Rezone the Property Known as the Riverwalk
Annexation Within One Year.
When the Riverwalk property was annexed and zoned T, Transition on October 27, 2009,
the zoning ordinance included a requirement that the property be rezoned within one year.
This Ordinance, unanimously adopted on First Reading on October 5, 2010, removes the
deadline for rezoning the property, allowing the property to remain in the Transition "T"
zone district.
***END CONSENT***
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October 19, 2010
Ordinances on Second Reading were read by title by City Clerk Krajicek.
7. Second Reading of Ordinance No, 104, 2010, Appropriating Unanticipated Grant Revenue
in the General Fund for the East Building Roof Rehabilitation of the Paramount Cottage
Camp, 1544 West Oak Street.
8. Second Reading of Ordinance No. 105, 2010, Amending Ordinance No. 100, 2009, for the
Purpose of Removing the Requirement to Rezone the Property Known as the Riverwalk
Annexation Within One Year.
Councilmember Troxell made a motion,seconded by Councilmember Manvel,to adopt and approve
all items on the Consent Calendar. Yeas:Hutchinson,Kottwitz,Manvel,Ohlson,Poppaw,Roy and
Troxell. Nays: none.
THE MOTION CARRIED.
Staff Reports
City Manager Atteberry stated the City recently earned a Certificate of Excellence for Performance
Management from the International City and County Management Association. The City was
recognized for its Budgeting for Outcomes process, its "open book" process, the biannual citizen
survey, and community scorecard. Channel 14 received an award from the National Association of
Telecommunications Officers for a program entitled "Driven by Data PDT." The City has been
selected to host the 2011 Big Ideas Conference for the Alliance for Innovation.
Public Hearing on the 2011-2012 Recommended
Biennial Budget for the City of Fort Collins, Hearing was Held
The following is staff s memorandum for this item.
"EXECUTIVE SUMMARY
This is the second official public hearing on the City Manager's 2011-2012 Recommended Biennial
Budget for the City of Fort Collins. The purpose of this public hearing is to gather public input on
the 2011-2012 Budget. Public input will also be taken during the budget adoption meetings on
Tuesday, November 2 and Tuesday, November 16, 2010 at 6:00 p.m. in the Council Chambers.
The City Manager's 2011-2012 Recommended Budget can be reviewed at the Main Library, the
Harmony Branch Library, Council Tree Library, or the City Clerk's Office. The recommended
budget can also be viewed on the internet at www.fcgov.com/budget. "
City Manager Atteberry provided an overview of the proposed budget, noting this discussion will
primarily be related to General Fund items, and the schedule of items as the budget process moves
forward.
Sarah Allmon, 1200 East Stuart, opposed cuts to Transfort and Dial-a-Ride services.
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October 19, 2010
Tomas Gonzales, 710 Sherry Drive, opposed cuts to the Northside Atzlan Center and Dial-a-Ride,
and the potential closure of the Mulberry Pool. He read a letter from a Boston College student who
grew up in Fort Collins and spent time at the Atzlan Center.
Michael Devereaux,2150 Maid Marian Court,Commission on Disabilities vice-chairman,opposed
cuts to Dial-a-Ride service on behalf of the Commission on Disabilities.
Irene Vernon,Northside Atzlan Center Advisory Board, expressed concern about potential cuts to
low-income programs.
Frank Martinez, 3815 Celtic Lane, Northside Atzlan Center Advisory Board, opposed cuts to
programs and positions at the Center. He expressed support for Ballot measure 2B.
Maricela DeMir ya, Northside Atzlan Center Advisory Board, expressed concern about potential
cuts to youth programs.
Annette Geiselman, 3000 Milner Court, opposed proposed budget cuts to the Discovery Science
Center Museum. She discussed potential revenue from the-new museum.
Patricia Vigil, 5815 Auburn,Northside Atzlan Center Advisory Board, opposed cuts to senior and
youth programs at the Atzlan Center.
Steve Van der Meer, 1712 Westview, opposed proposed budget cuts to the Discovery Science
Center Museum.
Doug Garcia, 1320 St. John Place, , opposed the proposed closure of Mulberry Pool, suggesting
increased fees or reduced hours as alternatives.
MacKenzie Caylor, 7133 Egyptian Drive, opposed the proposed closure of Mulberry Pool.
Amy Fromme,4900 Langdale Court,Team Vortex,opposed the proposed closure of Mulberry Pool.
James Heaton, 416 North Roosevelt, opposed the proposed closure of Mulberry Pool.
Diane Fromme, 4900 Langdale Court, opposed the proposed closure of Mulberry Pool.
Ruth Bruce, Fort Collins resident, physical therapist, opposed the proposed closure of Mulberry
Pool.
Jackie Charlesworth, 1036 Tierra Lane, Team Vortex, opposed the proposed closure of Mulberry
Pool and suggested raising fees as an alternative to closure.
Wilfredo Galarza, Colorado State University student and Northside Atzlan Center employee, read
a letter from Jose Guadeola,opposing budget cuts at Northside Atzlan Center and praising employee
Debra Bueno.
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October 19, 2010
Pauline Nol, 927 Pioneer Avenue, opposed the proposed closure of Mulberry Pool and supported
ballot measure 2B.
Jose Olivo, Colorado State University student, opposed budget cuts at Northside Atzlan Center.
Walter Daukshor, 6106 Ashton submitted a letter signed by 300 residents opposing the proposed
closure of Mulberry Pool.
Ernesto Jamison, Colorado State University student, opposed budget cuts at Northside Atzlan
Center.
Krista Nero, 4907 Country Farms Drive, opposed the proposed closure of Mulberry Pool and
suggested raising fees or closing the pool during summer months as alternatives. She asked if the
passage of Ballot measure 2B would guarantee the continuation of these services.
Blaine Saipaia, 1603 Holly Way,opposed budget cuts to Northside Atzlan Center programs,stating
cuts would particularly affect low-income residents.
Charlie Hicks, 3008 Shore Road, opposed the proposed closure of Mulberry Pool.
Lisa Hill, 1405 Rollingwood Lane, FAST Swim Team parent, opposed the proposed closure of
Mulberry Pool.
Sandy Hicks, 3008 Shore Road, opposed the proposed closure of Mulberry Pool.
Brandon Kramer, 1113 West Myrtle Street, opposed the proposed closure of Mulberry Pool.
Lance Wright,4909 Overbill Drive,opposed the proposed closure of Mulberry Pool and budget cuts
to Northside Atzlan Center and Dial-a-Ride. He suggested cutting enforcement of the 3-Unrelated
Ordinance as an alternative.
Virginia Serrano, 129 North Sunset Street, opposed budget cuts to Northside Atzlan Center.
Rich Salas, 319 Bluebird Court, opposed budget cuts to Northside Atzlan Center programs and
positions.
Sierra(no last name given),read a letter from Miguela Luna opposing budget cuts to the Northside
Atzlan Center.
Julie Pando, 2521 Romeldale Court, opposed the proposed closure of Mulberry Pool and read a
letter from Nicoletta Mays opposing budget cuts to the Northside Atzlan Center.
Syvie Martinez,3815 Celtic Lane,read a letter from Kevin Keller opposing budget cuts to Northside
Atzlan Center programs and positions.
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October 19, 2010
Jennifer LaPierre, 4887 Basswood Drive, read a letter opposing budget cuts to Northside Atzlan
Center.
Cheryl Distaso, Center for Justice, Peace, and Environment, opposed cuts to Dial-a-Ride night
service and suggested eliminating subsidies for City employee parking as an alternative.
Jose Sandoval, 9074 Spirit Street, Wellington, opposed budget cuts to Northside Atzlan Center.
Teresa Garcia, 3603 Kunz Court, opposed budget cuts to Northside Atzlan Center.
Eric Sutherland, 3520 Golden Currant, asked why a copy of the proposed budget was not available
for citizen inspection at the hearing. He expressed concern about a lack of detail in the proposed
budget.
Bruce Lockhart, 2500 East Harmony, suggested selling surplus City-owned property and
repurposing funds from the open space tax as alternatives to increasing sales tax.
Joseph Fresques, Fort Collins resident, opposed budget cuts to Northside Atzlan Center.
Mayor Hutchinson thanked the citizens who spoke and noted there will be at least four additional
meetings for public input regarding the budget. Should Ballot measure 2B pass,Council will be able
to make decisions about which of the potential cuts or reductions could be funded.
Councilmember Roy stated a special work session may be held on November 9th, depending upon
the outcome of the November 2nd election.
Councilmember Ohlson expressed pride in the new Northside Atzlan Center building and stated the
Center has been a priority. He noted road maintenance,police and fire services, and neighborhood
parks would also face budget cuts without the passage of Ballot measure 2B.
Councilmember Troxell thanked the citizens who spoke.
Adjournment
The meeting adjourned at 8:55 p.m.
Mayor
ATTEST:
City Clerk
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November 2, 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, November 2,
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
Eric Sutherland, 3520 Golden Currant, commented regarding an open records request he had
submitted to the City.
Steve Yurash, 4021 Yellowstone Court, Electric Board member, discussed a proposal to heat a
student housing development on Centre Avenue with electric heat. He suggested the proposed
project be reviewed by the Electric Board.
Stacy Lynne, 216 Park Street, discussed state politics.
Kevin Cross, 300 Peterson, Fort Collins Sustainability Group,encouraged the use of tiered electric
rates and asked that the March 8, 2011 work session be focused on tiered residential electric rates.
Citizen Participation Follow-up
Mayor Hutchinson discussed the guidelines for Citizen Participation and noted comments are to be
directed to Council.
Councilmember Roy asked about the status of the recall effort involving Councilmember Poppaw.
City Clerk Kraijeck replied the recall effort did begin but no recall petition signatures were ever
submitted for consideration. -
Councilmember Roy stated Council should consider tiered electric rates.
Councilmember Kottwitz asked that the Grove Project,mentioned by Mr. Yurash,be presented to
the Electric Board for consideration.
Councilmember Ohlson stated the transformer boxes are painted in order to prevent graffiti and it
is a cost savings measure. He stated the attempt to recall Councilmember Poppaw was a failure.
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November 2, 2010
Agenda Review
City Manager Atteberry stated there were no changes to the published agenda.
CONSENT CALENDAR
6. Items Relating to the 2011 Downtown Development Authority Budget.
A. First Reading of Ordinance No. 106,2010,Relating to the Downtown Development
Authority Annual Appropriations for the Fiscal Year 2011 and Fixing the Mill Levy
for Fiscal Year 2011.
B. First Reading of Ordinance No. 107,2010,Appropriating Revenue in the Downtown
Development Authority Debt Service Fund for Payment of Debt Service Obligations
for the Year 2010.
Ordinance No. 106, 2010, adopts the 2011 Budget, sets the amount of $826,758 to be
appropriated for fiscal year 2011 for the administrative operations budget, sets the amount
of$5,950,214 for debt service payments to be appropriated for fiscal year 2011 and sets the
2011 mill levy for the Fort Collins, Downtown Development Authority at five mills,
unchanged since 2002.
Ordinance No. 107,2010, appropriates 2010 debt service obligations for the amount due of
$1,562,232.
7. First Reading of Ordinance No. 108,2010,Appropriating Unanticipated Grant Revenues in
the General Fund for Police Services' Restorative Justice Program and the Transfer of
Matching Funds PreviouslyAppropriated in the Police Services Project Budget.
A grant in the amount of$30,000 has been received from the Colorado Division of Criminal
Justice Juvenile Accountability Incentive Block Grants fund for salaries associated with the
continued operation of Restorative Justice Services,which includes the RESTORE program
for shoplifting offenses, and the Restorative Justice Conferencing Program for all other
offenses. Restorative Justice is an alternative method of holding a young offender
accountable by facilitating a meeting with the offender,the victim/victim representative and
members of the community to determine the harm caused by the crime, and how to repair
the harm. By identifying and repairing the harm caused by the crime, Criminal Justice
officials are optimistic repeat offenses by these youth will be reduced and the needs and
concerns of the victims and affected community will be addressed. A$3,333 cash match is
required for the $30,000 grant and will be met by appropriating funds from prior project
income.
8. Hearing and First Reading of Ordinance No. 109, 2010, Adopting and Determining the
Effective Date of the District-Precinct Map for the 2011 Regular Municipal Election.
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November 2, 2010
This Ordinance adopts the District-Precinct Map for the 2011 regular municipal election for
the purposes of(1)determining the eligibility for District Council offices for the April 2011
election; (2)determining eligibility for any interim appointments to fill any District Council
vacancies which may occur after November 26, 2010; and (3) determining residency for
voting in any special municipal election conducted after November 26, 2010.
9. First Reading of Ordinance No. 110, 2010, Authorizing the Lease of City-Owned Property
at 945 East Prospect Road.
The City purchased 945 East Prospect in 1991 as part of the Prospect/Lemay Choices '95
Intersection Improvement Project. This project did not materialize and may not become
active in the future. The property has been rented since its purchase. It is recommended by
staff to continue renting this house,having the tenant responsible for all utility/phone/cable
expenses and site clean-up. The property is currently leased.
10. Resolution 2010-066 Authorizing the Initiation of Exclusion Proceedings of Annexed
Properties Within the Territory of the Poudre Valley Fire Protection District.
This Resolution authorizes the City Attorney to file a petition in Larimer County District
Court to exclude properties annexed into the City in 2009 from the Poudre Valley Fire
Protection District in accordance with state law and to allow for the provision of fire
protection services to such properties by the Poudre Fire Authority.
11. Resolution 2010-067 Approving an Amendment to the Collective Bargaininggreement
between the City and the Fraternal Order of Police Regarding Salary For 2011.
The City and the Northern Colorado Lodge#3,Colorado Fraternal Order of Police("FOP")
entered into a collective bargaining agreement for 2010 and 2011, which included a
provision for the future negotiation of salary levels for members of the bargaining unit for
2011. City staff and the FOP engaged in negotiations and have tentatively reached an
agreement regarding the 2011 salary levels.
***END CONSENT***
Ordinances on First Reading were read by title by City Clerk Krajicek.
6. Items Relating to the 2011 Downtown Development Authority Budget.
A. First Reading of Ordinance No. 106,2010,Relating to the Downtown Development
Authority Annual Appropriations for the Fiscal Year 2011 and Fixing the Mill Levy
for Fiscal Year 2011.
B. First Reading of Ordinance No. 107,2010,Appropriating Revenue in the Downtown
Development Authority Debt Service Fund for Payment of Debt Service Obligations
for the Year 2010.
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November 2, 2010
7. First Reading of Ordinance No. 108,2010,Appropriating Unanticipated Grant Revenues in
the General Fund for Police Services' Restorative Justice Program and the Transfer of
Matching Funds Previously Appropriated in the Police Services Project Budget.
8. Hearing and First Reading of Ordinance No. 109, 2010, Adopting and Determining the
Effective Date of the District-Precinct Map for the 2011 Regular Municipal Election.
9. First Reading of Ordinance No. 110, 2010,Authorizing the Lease of City-Owned Property
at 945 East Prospect Road.
15. First Reading of Ordinance No. 111, 2010, being the Annual Appropriation Ordinance
Relating to the Annual Appropriations for the Fiscal Year 2011 and Adopting the Budget for
the Fiscal Years Beginning January 1,2011 and Ending December 31,2012,and Fixing the
Mill Levy for Fiscal Year 2011.
16. Items Relating to Utility Rates and Charges for 2011.
A. First Reading of Ordinance No. 112, 2010, Amending Chapter 26 of the City Code
to Revise Water Rates, Fees and Charges.
B. First Reading of Ordinance No. 113, 2010, Amending Chapter 26 of the City Code
to Revise Wastewater Rates, Fees and Charges.
C. First Reading of Ordinance No. 114, 2010,Amending Chapter 26 of the City Code
to Revise Electric Rates, Fees and Charges.
D. First Reading of Ordinance No. 115, 2010, Amending Chapter 26 of the City Code
to Revise Electric Development Fees and Charges.
Councilmember Manvel made a motion, seconded by Councilmember Roy, to adopt and approve
all items on the Consent Calendar. Yeas:Hutchinson,Kottwitz,Manvel,Ohlson,Poppaw,Roy and
Troxell. Nays: none.
THE MOTION CARRIED.
Consent Calendar Follow-up
Councilmember Manvel commended the Police Services Restorative Justice Program.
Councilmember Reports
Councilmember Troxell commended a presentation by Utilities staff member Dennis Sumner
regarding the Jump Start Zone for Fort Zed.
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November 2, 2010
Ordinance No. 111, 2010,
Being the Annual Appropriation Ordinance Relating to the Annual Appropriations for the
Fiscal Year 2011 and Adopting the Budget for the Fiscal Years Beginning
January 1, 2011 and Ending December 31, 2012,
and Fixing the Mill Lew for Fiscal Year 2011, Adopted on First Reading
The following is staff s memorandum for this item.
"EXECUTIVE SUMMARY
The Annual Appropriation Ordinance is presented for First Reading. This Ordinance sets the City
Budget for the two year period (2011-2012). The approved Budget becomes the City's financial
plan for the next two fiscal years.
BA CKGR O UND/DIS C USSIO N
This biennial Budget represents the work of many dedicated individuals who came together to
participate in the budgetprocess. Since 2005, the City has used the Budgeting for Outcomes(BFO)
process. BFO has a number of advantages over traditional budgeting approaches and helps the
City meet several important goals, including:
• Create clarity about the overall budget process for the community;
• Allocate revenues to the highest priorities and outcomes citizens want and need;
• Understand the choices for funding programs and services; and
• Emphasize staff accountability, efficiency, innovation and partnership.
Using this approach, City Council and staff worked in close collaboration over the past two months
to build a financial plan, based on revenue available, that will achieve service outcomes which
matter most to the citizens and community. This work has resulted in the development of the Final
2011-2012 Budget. The approval of the Appropriation Ordinance on First Reading represents a
major milestone in this process.
As the budget development process began in February 2010, City Council and staff met on several
occasions.to outline goals and assumptions for developing the recommended budget. Council was
actively engaged in the development and approval of the seven key outcomes that have shaped this
budget.
Result Area/Outcome Description
Culture, Parks and Recreation Fort Collins provides diverse parks, cultural, and
recreational amenities.
Fort Collins has a healthy, sustainable economy
Economic Health reflecting the values of our unique community in a
changing world.
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November 2, 2010
Environmental Health Fort Collins promotes,protects and enhances a healthy
and sustainable environment.
Fort Collins exemplifies an efficient, innovative,
High Performing Government transparent, effective and collaborative city
government.
Neighborhood Livability Fort Collins fosters and supports a variety of quality
neighborhoods.
Safe Community Fort Collins provides a safe place to live, work, learn
and play.
Transportation Fort Collins provides for safe and reliable multi-modal
travel to,from, and throughout the City.
Budget Highlights
The 2011-12 Final Budget is a financial and service plan linked to the seven key outcomes and
results that matter most to our citizens. Some key highlights of the City Budget include:
1. The total Budget for all City funds for 2011 is$425.8 million and$426.4 million for 2012.
2. The Budget includes no tax increase.
3. Sales and Use tax revenue accounts for approximately 55% of the General Fund revenue
collected annually. This tax revenue is projected to increase by 1.5%in 2011 with a slightly
larger increase in 2012 of 2.9%.
4. The projected Utility rate increases for 2011 to fund operations and maintain minimum
reserves are a 9%increase for Wastewater, a 6.5%increase for Electric, a 3%increase for
Water and no increase for Stormwater. For 2012, the projected Utility rate increases are
an 8% increase for Wastewater, a 6.23%increase for Electric and no increases for Water
and Stormwater.
5. In 2011 the Budget will reduce classified, unclassified, and contractual City staff by a net
of 13.28 full-time equivalent (FTE)positions. The estimated reduction in hourly staff in
2011 is 25 FTE positions. For 2012, the net change is an additional decrease of 5.75 FTE
for classified, unclassified, and contractual City staff and a decrease of approximately 10
hourly FTE.
Budget Assumptions
2010 2011 % Change 2012 % Change
Operating $448.7 $379.7 -15.4% $386.9 1.9%
Debt $21.3 $22.8 7.0% $23.2 1.8%
Capital $28.0 $25.0 -10.7% $18.1 -27.6%
Total City Appropriations $498.0 $427.5 -14.2% $428.2 0.2%
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November 2, 2010
Less Internal Service Funds -$58.1 -$55.2 -5.0% -$57.0 3.3%
Less Transfers to Other
Funds -$95.4 -$39.9 -58.2% -$38.5 -3.5%
_N $3-4' IY Net 66 Piul�et� 2 T735V " `$332, "" , - _6
Note: This includes GID and URA which will be appropriated in separate ordinances.
Some of the key assumptions used in developing the Final Budget include:
1. Limited revenue growth for 2010 and 2011
Despite the stabilization of the economic conditions in 2010, most experts agree that the recovery
will continue to occur gradually with sectors of the economy enduring a lasting reduction in output
and employment. The 2011-2012 Budget, therefore, employs conservative assumptions of growth
that reflect a cautiously optimistic outlookfor the next two years.
Z Use of reserves
Approximately $4.2 million in General Fund reserves were used to balance the 2011 budget and
$712,000 in the 2012 Budget. Reserves are used primarily for one-time projects.
3. Employee salary adjustments
No merit-based pay increases are budgeted for City employees in 2011, and any adjustments in 2012
(not to exceed 2%) will be based on the market conditions. The budget also includes two unpaid
furlough days for all City employees in 2011.
4. Focus on City Council and community priorities and adjust to changing revenues
This Budget continues to place a high priority on the services identified by citizens and City Council
as most important. Due to significant decreases in revenue, this Budget includes reductions in
several areas, including parks and recreation and general government.
Adjustments to the City Manager's Recommended Budget
During previous Budget work sessions, Council did not provide any collective change in direction
on the Budget. Accordingly, there are no changes for First Reading on the City Manager's
Recommended Budget. An additional Budget discussion is scheduled for the November 9 Work
Session.
Conclusion
The 2011-2012 Final Budget is a sound financial plan to deliver the services the citizens value most.
Due to limited resources, it does not, however,fully meet the demand for services that citizens need
and expect. However, the Budgeting for Outcomes process has enabled staff tofocus and apply the
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November 2, 2010
resources available to key community outcomes. Citizens will receive excellent value for their tax
dollars.
Any final amendments agreed to by Council will be included in the Second Reading of the Budget
Ordinance on November 16, 2010. By Charter, the Budget must be adopted and appropriations for
the 2011 fiscal year must be adopted by November 30, 2010. "
Mayor Hutchinson stated the budget hearing will continue, despite not knowing the outcome of the
election regarding ballot measure 2B. A work session will be held November 9th and the Second
Reading of the budget will be November 16th.
Sarah Allman, 1200 East Stuart, opposed budget cuts to Transfort and Dial-a-Ride night service.
Toney Wilson, 2719 Park Lake Court, Northside Atzlan Center boxing team coach, opposed cuts
to the Northside Atzlan Center budget.
Stacy Lynne, 216 Park Street, discussed budget priorities and opposed budget cuts to Transfort and
the Northside Atzlan Center.
Justin Salazar, 116 King Avenue, opposed budget cuts to the Northside Atzlan Center.
Randy Starkey, 727 Redstone Drive, Bellvue, opposed the proposed closure of Mulberry Pool.
Julie Pando, 2521 Romeldale Court, opposed budget cuts to the Northside Atzlan Center.
Annette Zacharias,2218 Timber Creek, City of Fort Collins Women's Commission, asked Council
to consider community safety and poverty issues when planning budget cuts.
Irene Vernon, Northside Atzlan Center Advisory Board co-chair, opposed budget cuts to the
Northside Atzlan Center.
Nina Simmers,Ann Street,pro-bono mediator for Neighborhood Services,asked that the mediation
program continue to receive funding.
Dr. Maricela DeMirgyn, 335 Parker Street, Northside Atzlan Center Advisory Board co-chair,
opposed budget cuts to the Northside Atzlan Center.
Michael Devereaux,2150 Maid Marian Court,Public Transit Action Group,opposed cuts to Dial-a-
Ride night service, noting its users have no other options.
Patsi Maroney, 2906 Eastborough Drive, pro-bono mediator for Neighborhood Services, opposed
cuts to the mediation program.
F Evan Welting, Elgin Court, Fort Collins Area Swim Team Head Coach, opposed the proposed
closure of Mulberry Pool.
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November 2, 2010
Ernie Miranda, 323 North Howes, opposed budget cuts to the Northside Atzlan Center.
Jackie Charlesworth, 1036 Tierra Lane, Team Vortex Head Coach, opposed the proposed closure
of Mulberry Pool.
Jaime Fulgencio, 3288 Ambush Drive, opposed budget cuts to the Northside Atzlan Center.
Desirae Salazar, 825 Kingston Drive, opposed budget cuts to the Northside Atzlan Center.
Mariah Ortiz, 3808 Celtic Lane, opposed budget cuts to the Northside Atzlan Center on behalf of
Irish Elementary students.
Frank Martinez, 3815 Celtic Lane, submitted letters to Council opposing budget cuts to the
Northside Atzlan Center.
Felicia Saenz, 90 S 17th Avenue Drive, Brighton, opposed budget cuts to the Northside Atzlan
Center.
Danielle Robertson, 1031 Davidson Drive, opposed budget cuts to the Northside Atzlan Center.
Tatiana Seijas, 1020 Wabash Street, opposed budget cuts to the Northside Atzlan Center.
Brandon Robertson, 1031 Davidson Drive, opposed budget cuts to the Northside Atzlan Center.
Kevin Flores, Colorado State University student, opposed budget cuts to the Northside Atzlan
Center.
Neva Menchaca, 501 North Hollywood Street,opposed budget cuts to the Northside Atzlan Center.
Paul Hewitt, Fort Collins resident, opposed budget cuts to the Northside Atzlan Center.
Cheryl Distaso, Center for Justice, Peace, and Environment, opposed budget cuts to Dial-a-Ride
services and the Northside Atzlan Center.
Eric Sutherland, 3520 Golden Currant, discussed the energy services budget.
Mayor Hutchinson and Councilmember Manvel thanked the citizens who spoke.
Councilmember Roy made a motion,seconded by Councilmember Manvel,to adopt Ordinance No.
1117 2010, on First Reading.
Councilmember Roy stated he would support the motion and looked forward to possible changes
with the potential passage of Ballot measure 2B.
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November 2, 2010
Councilmember Manvel stated City Charter requires this budget schedule and added it is impossible
to fix all the budget problems without knowing exactly what funds are available.
Councilmember Kottwitz thanked the citizens for their efforts and stated she would propose budget
changes regardless of the potential passage of Ballot Measure 2B.
Mayor Hutchinson stated he would support the motion and looks forward to restoring funding to the
Northside Atzlan Center and Mulberry Pool should Ballot Measure 2B pass.
The vote on the motion was as follows: Yeas: Hutchinson,Kottwitz,Manvel,Ohlson,Poppaw,Roy
and Troxell. Nays: none.
THE MOTION CARRIED.
Items Relating to Utility Rates and Charges for 2011, Adopted on First Reading
The following is staffs memorandum for this item.
"EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 112, 2010,Amending Chapter 26 of the City Code to Revise
Water Rates, Fees and Charges.
B. First Reading of Ordinance No. 113, 2010,Amending Chapter 26 of the City Code to Revise
Wastewater Rates, Fees and Charges.
C. First Reading of Ordinance No. 114, 2010,Amending Chapter 26 of the City Code to Revise
Electric Rates, Fees and Charges. `
D. First Reading of Ordinance No. 115, 2010,Amending Chapter 26 of the City Code to Revise
Electric Development Fees and Charges.
The Ordinances propose the following rate increases for monthly utility billings:
%Increase
Water 3.0% across the board
Wastewater 9.0% across the board -
Electric 6.5% on average)
The changes would take effect for billings with meter readings_on or after January 1, 2011.
The water and wastewater rate increases are across the board to all customer classes. The electric
rate increase is proposed to vary by rate class from 0%to 10%. There is no change in the monthly
rate for stormwater. A typical single family customer's monthly bill will increase $8.91 from
$129.75 to $138.66 or 6.9%.
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November 2, 2010
A small reduction (1-3%) in electric development fees for 2011 is also proposed. No changes in
plant investment fees are planned for water, wastewater or stormwater.
BA CKGR O UND/DIS C USSION
A. Monthly Water Rates (Ordinance No. 112, 2010)
Ordinance No. 112, 2010,proposes a 3%water rate increase. The increase is across the board and
applies to all rate classes. A cost of service study was conducted in 2009 and the 2010 water rate
classes were realigned based on the study. With the proposed rate, a typical single family
residential customer's monthly bill will increase 3%as shown in the table below:
Single Family 2010 Monthly Water Proposed 2011
Typical Use Bill Monthly Water Bill $Increase %Increase
January - 5000 $23.43 $24.13 $0.70 3%
allons
July - 2 1,000 gallons $63.22 $65.11 $1.89 3%
Monthly Average
based on seasonal use $34 83 $35.87 $1.04 3%
of 117,131 gallons
per vear
Although 3%water rate increases were implemented in 2007 and in 2010, water operating revenues
decreased 13.4%between 2006 and 2009. The reduction in use is thought to be a combination of
conservation, weather and economic factors. The proposed 2011 rate increase is required to fund
operations, capital improvements and maintain debt service coverage.
B. Monthly Wastewater Rates (Ordinance No. 113, 2010)
r
Ordinance No. 113, 2010, proposes a 9% wastewater rate increase. The increase is across the
board and applies to all rate classes. A 2009 cost ofservice study was conducted and wastewater
rate classes were realigned in 2010. With the proposed increase, atypical residential customer's
bill will increase from$26.23 to$28.59 or$2.36per month. The typical customer is based on 4,800
gallons of winter quarter water use.
Council has approved a series of annual wastewater rate increases starting in 2008. The prior rate
increases, as well as the proposed 201 l increase, are necessary to fund wastewater operations and
meet the increase in long term debt service obligations for a major capital project to replace the
trickling filter, make odor control improvements and to prepare for filture regulation based
improvements at the Mulberry Water Reclamation Facility. An 8%increase is projected for 2012.
In addition, staff is proposing a clarification to the Code to set a default winter quarter water use
for residential customers who did not establish a winter quarter average (WQA) during the prior
January-March. The winter quarter water use approximates the customer's indoor water use and
is defined in Section 26.206 of the City Code as "the average monthly amount of water billed to the
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November 2, 2010
user during the preceding months of January, February and March. " City Code does not address
customers who have not been at the premise to establish a WQA. Current administrative practice
is to assign such single family customers a default WQA of 5,200 gallons. The 5,200 gallons was
based on a historic average water use. With the lower water use during the last few years, the
average WQA for single family residential customers has dropped to 4,800 gallons per month.
Winter quarter water use for duplexes and multifamily units is also now lower than historical
averages. Based on this trend of reduced winter quarter water use, staff is recommending that the
Code be amended to specify the default amounts for all residential customer classes as follows:
Default Winter Quarter Avera e
Current Administrative Default Proposed To Be
Residential Rate Class Practice Included In City Code
Single Family 5,200 gallons WQA 4,800 gallons WQA
Duplex 8,500 gallons WQA 7,200 gallons WQA
Multi Family 4,200gallons/unit WQA 3,400gallons/unit WQA
These default amounts will only be used for customers who have not established a WQA for the
premise during the previous January, February and March. The reduction in default WQA amounts
will result in the loss of about$38,000 per year.
C. Monthly Electric Rates (Ordinance No. 114, 2010)
A system average 6.5%electric rate increase is proposed for 2011. This rate increase will not be
applied to all customer rate classes across the board. Based on a cost of service study conducted
by staff in 2010, the rates are proposed to vary by rate class as follows:
Proposed Electric Rate Increase or 2011
Residential Energy Rate 10.0%
Residential Demand Rate 10.0%
General Service (small commercial) 0.0%
General Service 50 (medium commercial) 5.1%
General Service 750 (lar e commercial, industrial) 5.6%
Traffic Signals 6.7%
Floodlights 0.0%
Avera e System Increase 6.5%
The above recommendations are based on modified cost of service results but are capped with a
limit of no more than a 10% increase for any customer class. The Council Finance Committee
reviewed the results of the electric cost of service study and the staff recommendations at its
September 20, 2010 committee meeting and supported this modified cost ofservice implementation.
Fort Collins' electric rates will remain among the lowest in the state. The impacts of these rate
recommendations for typical residential and commercial customers are shown in the following
table:
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November 2, 2010
2011 Electric Rate Impacts on Typical Customers
Average
Proposed Rate Class
Rate Class 2010 2011 $Inc. % Inc. %Inc.
Residential
700 kWh/month $54.43 $59.94 $5.51 10.1% 10.0%
Residential Demand
1,400 kWh/month, 10 kW $102.00 $112.42 1 $10.42 10.2% 10.0%
General Service
2,300 kWh/month $193.61 $194.41 -$2.20 -1.1% 0.0%
General Service 50
54,000 kWh/mo, 140 kW $3,277 $3,443 $166 5.1% 5.1%
General Service 750
2,000,000 kWh/month, 3600 kW $98,932 $104,453 $5,521 5.6% 5.6%
The 6.5%system-wide increase is due to an increase in purchase power rates and the second year
of the Energy Policy implementation. The majority of the rate increase results from a 6.1%
wholesale rate increase from Platte River Power Authority. This increase in purchase power cost
equates to a 4.7% retail rate increase. Secondly, as part of the 2010 budget, Council approved a
significant increase to the Utilities' energy services budgets in order to implement additional
programs targeted to meeting Energy Policy and Climate Action Plan goals. In 2010, half of this
energy services budget increase was funded from reserves with the remainder funded from a 1.8%
rate increase. The 2010 plan called for a second].8%rate increase in 2011 to continue the energy
conservation and efficiency programs at the 2010 level.
Platte River's 2011 6.1%purchase power rate increase is due to several key factors:
• Reduced surplus energy sales
• Increased operations and maintenance costs
o Major maintenance work at Craig Unit I
o Ongoing O&M of aging plants
0 Environmental costs—primarily mercury removal at Rawhide
• Increased fuel expense due to higher utilization of natural gas peaking plants
• Increased financing and depreciation expense for transmission put into service
• Decrease in interest income
• Capital investment
Theproposed electric rate Ordinance also deletes an outdated reference to rental charges for traffic
equipment. The rental charges related to an early traffic signal system (1970s era) which was
purchased by the Light and Power Fund and then repaid by the traffic department through the
referenced rental charges.
Monthly Rate Increase Summary
The following chart summarizes the impact of the proposed rate changes on a typical residential
customer:
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November 2, 2010
2011 Utility Rates—Impact to T ical Single mily Customer
Proposed
Current 2010 2011 $Increase' %Increase
Electric
700 kWh per month $54.43 $59.94 $5.51 10.1%
Wastewater
4,800 allmo W A $26.23 $28.59 J $2.36 9.0%
Stormwater
8,600 sq ft lot, light run o $14.26 $14.26 $0.00 0.0%
Water
Monthly Average based on
seasonal use of 117,131 gallons
per year $34.83 $35.87 $1.04 3.0%
Total Typical Monthly Utility
Bill $129.75 $138.66 $8.91 6.9%
The following graphs compare Fort Collins current 2010 and proposed 2011 rates with the current
2010 and estimated 2011 rates of several surrounding communities. The graphs are based on the
same typical customer shown in the table above with the exception of water, which is based on
21,000 gallons, atypical July use. The estimated 2011 rate increases for the comparison cities are
based on information obtained by staff through phone inquiries. These are not approved rates for
any of the cities or Xcel. Denver wastewater and stormwater rates have not been released and so
the 2011 graph reflects 2010 wastewater and stormwater rates for Denver.
D. Electric Development Fees (Ordinance No. 115, 2010)
Electric developmentfees recover both actual on-site costs(building site charges)and allocated off-
site costs (electric capacity charges) to serve commercial or residential development. These fees
are typically adjusted annually to reflect cost increases; however, some material costs have
decreased slightly and labor costs have remained constant. The proposed 2011 Electric
Development Fee Ordinance(Item D)reflects a 1-3%reduction in costs. The following table shows
the impacts on a sample residential and commercial development.
Typical Single Family Lot
8600 square feet, 70 foot of street frontage, 150 amp service, 410 secondary service
Current 2010 Proposed 20ll $ Change % Change
$3,221 1 $3,139 -$83 -2.6%
Model Commercial Development
82,000 sq ft, 1900 ft street frontage, 250 ft primary srv, 600 amps, 208Volt, 3-phase, 1-
transformer
Current 2010 Proposed 2011 $ Change % Change
$31,361 $31,079 -$28 2 -0.9%
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November 2, 2010
Water, wastewater and stormwater plant investment fees were revised for 2010. There are no
changes recommended for 2011. "
Ellen Switzer, Financial Operations Manager, stated the proposed rates would increase monthly
electric rates an average of 6.5%, increase water rates 3% across the board, increase monthly
wastewater rates 9%across the board,and slightly reduce electric development fees. Switzer stated
Fort Collins' residential utility rates will remain among the lowest in the state.
Steve Yurash, 4021 Yellowstone Circle, spoke on behalf of himself and fellow Electric Board
members Tom Bamish and John Harris, and stated they voted against the proposed electric utility
rate changes. He stated the rate increase is too onerous for citizens during these economic times.
He suggested pay increases for technical staff and postponing rate structure changes until the AMI
system is in place.
Eric Sutherland, 3520 Golden Currant, offered a citizen amendment to Ordinance No. 115, 2010,
to add language that would price the connection of new multi-family residential housing that uses
inefficient electric heating to be prohibitively expensive.
Councilmember Troxell asked about the timing of the rate changes with regard to implementation
of the AMI system. Brian Janonis, Utilities Executive Director, replied differential rates could not
be supported until the AMI system is in place. He stated the 1.8% Energy Efficiency rate increase
has been split over two years.
Councilmember Kottwitz asked if the entire rate increase will also be needed next year, as it was
last year. Janonis replied reserves are being used in 2010.
Councilmember Roy made a motion,seconded by Councilmember Manvel,to adopt Ordinance No.
112, 2010, on First Reading. Yeas: Hutchison, Kottwitz, Manvel, Ohlson, Poppaw, Roy and
Troxell. Nays: none.
THE MOTION CARRIED.
Councilmember Roy made a motion,seconded by Councilmember Manvel,to adopt Ordinance No.
113, 2010, on First Reading. Yeas: Hutchison, Kottwitz, Manvel, Ohlson, Poppaw, Roy and
Troxell. Nays: none.
THE MOTION CARRIED.
Councilmember Roy made a motion,seconded by Councilmember Manvel,to adopt Ordinance No.
114, 2010, on First Reading.
Councilmember Kottwitz stated she would not support the motion as she does not agree with the
1.8% increase.
Councilmember Manvel stated Fort Collins has a policy in place driving the increase.
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November 2, 2010
Councilmember Ohlson stated Fort Collins has one of the lowest electric rates in the state and
perhaps the country.
The vote on the motion was as follows: Yeas: Hutchison, Manvel, Ohlson, Poppaw, Roy and
Troxell. Nays: Kottwitz.
THE MOTION CARRIED.
Councilmember Roy made a motion,seconded by Councilmember Manvel,to adopt Ordinance No.
115, 2010, on First Reading.
Councilmember Manvel asked that the fifth Whereas clause be checked for accuracy prior to Second
Reading.
The vote on the motion was as follows: Yeas: Hutchison,Kottwitz, Manvel, Ohlson,Poppaw,Roy
and Troxell. Nays: none.
THE MOTION CARRIED.
Adjournment
The meeting adjourned at 7:45 p.m.
Mayor
ATTEST:
City Clerk
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