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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/21/2012 - ITEMS RELATING TO HOUSING LEASES FOR ON-SITE HOUSIDATE: August 21, 2012 STAFF: Rick Bachand, John Stokes Lindsay Kuntz AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 12 SUBJECT Items Relating to Housing Leases for On-Site Housing Located on Natural Areas. A. Second Reading of Ordinance No. 069, 2012, Authorizing the Lease of City-Owned Property at Gateway Natural Area. B. Second Reading of Ordinance No. 070, 2012, Authorizing the Lease of City-Owned Property at Bobcat Ridge Natural Area. C. Second Reading of Ordinance No. 071, 2012, Authorizing the Lease of City-Owned Property at Reservoir Ridge Natural Area. EXECUTIVE SUMMARY Natural Areas owns four houses at three natural areas, including Gateway Natural Area, Bobcat Ridge, and Reservoir Ridge. These Ordinances, unanimously adopted on First Reading on July 17, 2012, update the four on-site housing leases for these natural areas. In all cases, employees living at these locations provide a range of “on call” duties, including site security, visitor assistance, maintenance, and other duties outside of normal work hours without receiving “on call” pay. To compensate the employees for their requirement to respond to these “on call” duties when necessary outside of normal working hours, the monthly rental rates are reduced by approximately 50% of fair market value. The fair market rental rates were determined by Real Estate Services, based upon recent rental comparisons. Similarly, the value of the employer-provided lodging is excluded from the employee’s income as the lodging is a condition of employment. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - July 17, 2012 (w/o attachments) COPY COPY COPY COPY ATTACHMENT 1 DATE: July 17, 2012 STAFF: Rick Bachand, John Stokes, Lindsay Kuntz AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 22 SUBJECT Items Relating to Housing Leases for On-Site Housing Located on Natural Areas. A. First Reading of Ordinance No. 069, 2012, Authorizing the Lease of City-Owned Property at Gateway Natural Area. B. First Reading of Ordinance No. 070, 2012, Authorizing the Lease of City-Owned Property at Bobcat Ridge Natural Area. C. First Reading of Ordinance No. 071, 2012, Authorizing the Lease of City-Owned Property at Reservoir Ridge Natural Area. EXECUTIVE SUMMARY Natural Areas staff is recommending updates to four on-site housing leases, which must be approved by City Council. Natural Areas owns four houses at three natural areas, including Gateway Natural Area, Bobcat Ridge, and Reservoir Ridge. In all cases, employees provide a range of “on call” duties, including site security, visitor assistance, maintenance, and other duties outside of normal work hours without receiving “on call” pay. To compensate the employees for their requirement to respond to these “on call” duties when necessary outside of normal working hours the monthly rental rates are reduced by approximately 50% of fair market value. The fair market rental rates were determined by Real Estate Services, based upon recent rental comparisons. Similarly, the value of the employer- provided lodging is excluded from the employee’s income as the lodging is a condition of employment. BACKGROUND / DISCUSSION The City’s Natural Areas Department (NAD) has responsibility for Gateway, Bobcat Ridge, and Reservoir Ridge Natural Areas. As Gateway and Bobcat Ridge are regional sites a 1/2 hour drive outside of town, there are efficiencies and site security issues that warrant a full-time, on-site resident ranger. At Gateway, in addition to the on-site ranger, Natural Areas has elected to provide housing for an on-site, seasonal maintenance technician to help accomplish a variety of maintenance and security objectives. At Reservoir Ridge, renting the existing small residence to a year- round, hourly paid caretaker permits the smooth operation and security of the Primrose Studio, while eliminating routine visits by NAD staff to the site at odd hours of the day. NAD believes the on-going arrangement of having on- site staff at these areas represents a sound, management approach to the security, maintenance, and operations of these sites. The benefits of housing staff on site at the reduced rental rates are decreasing the amount of comp-time or overtime paid to the employee for a variety of duties that occur after normal visitor hours; providing around-the-clock site presence and security; providing timely assistance to visitors at times when Ranger staff would not normally be available; and reducing the amount of daily travel (to and from) the sites. In addition to the reduced rent, resident staff will be responsible to pay the full price of all utilities with an exception at the Gateway Office/House for Seasonal Employee where NAD will cover utility costs as the office/house is used daily for other NAD business related activities. The City will be responsible for maintenance of each residence including repairs of plumbing, all appliances, wiring, exterior premises, structural components and painting when necessary. Resident staff will be responsible for keeping the premises in an orderly condition both inside and out (mowing, weeding, etc.). Employees can make no repairs or alterations without prior written permission from the City. Only authorized employees and their immediate family members are allowed to live on the premises. Finally, resident staff will be required to vacate the premises when he/she is no longer in the assigned position. COPY COPY COPY COPY July 17, 2012 -2- ITEM 22 FINANCIAL / ECONOMIC IMPACTS Natural Areas will receive the following monthly income for a total of $1,850/month or $22,200 per year. The updated monthly rental rates are as follows: Gateway Ranger Residence $630/month (a $230/mo increase) Gateway Office/Housing for Seasonal Employee $240/month (a $40/mo increase) Bobcat Ranger Residence $630/month (a $230/mo increase) Reservoir Ridge - Primrose Studio Caretaker Residence $350/month (no change) ENVIRONMENTAL IMPACTS There are no environmental impacts as part of the lease arrangement. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BOARD / COMMISSION RECOMMENDATION At its June 13, 2012 meeting, the Land Conservation and Stewardship Board voted unanimously to recommend that City Council approve the four updated Natural Areas Department on-site staff leases. ATTACHMENTS 1. Location maps 2. Land Conservation and Stewardship Board minutes, June 13, 2012 ORDINANCE NO. 069, 2012 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE LEASE OF CITY-OWNED PROPERTY AT GATEWAY NATURAL AREA WHEREAS, the City is the owner of real property located in Poudre Canyon and known as Gateway Natural Area (the “Natural Area”); and WHEREAS, there are two residential buildings located in the Natural area: a house designated as 5212 West State Highway 14, Bellvue, Colorado, which is leased to the Gateway Natural Areas Ranger pursuant to Ordinance No. 042, 2001 (the “Ranger Residence”), and an adjacent house/office space designated as 5216 West Highway 14, Bellvue, Colorado, a portion of which is leased to a seasonal Natural Areas maintenance technician pursuant to Ordinance No. 028, 2008 (the “Office/House”); and WHEREAS, the Ranger and Maintenance Technician are required to live onsite as part of their duties, and in exchange each pays a reduced monthly rental rate; and WHEREAS, because the Natural Area is located outside of Fort Collins, having staff reside onsite facilitates maintenance, security and visitor assistance at the Natural Area; and WHEREAS, the Natural Areas department would like to update the leases for the Ranger Residence and the Office/House; and WHEREAS, copies of the proposed Gateway Ranger Residence Lease and Office/House Lease are on file in the office of the City Clerk and available for inspection; and WHEREAS, under the terms of the proposed new leases, the monthly rent for the Ranger Residence would be at least $630 with the tenant responsible for most utilities, and the monthly rent for the Office/House would be $240, with the City responsible for the utilities; and WHEREAS, each lease would be on a month-to-month basis, and the tenant would be required to vacate the premises if his or her employment status with the City changed; and WHEREAS, under Section 23-111(a) of the City Code, the City Council is authorized to sell, convey or otherwise dispose of any and all interests in real property owned in the name of the City provided that the City Council first finds, by ordinance, that such sale or other disposition is in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby finds that leasing the Ranger Residence and the Office/House to on-site employees at Gateway Natural Area under the terms described above is in the best interests of the City. Section 2. That the City Manager is hereby authorized to execute lease agreements for the Ranger Residence and the Office/House on terms and conditions consistent with this Ordinance, together with such additional terms and conditions as the City Manager, in consultation with the City Attorney, determines to be necessary or appropriate to protect the interests of the City including, but not limited to, any necessary changes to the description of the premises to be leased, as long as such changes do not materially increase the size or change the character of the leased premises. Section 3. The authorization to lease pursuant to this Ordinance shall be valid for a period of ten years. Introduced, considered favorably on first reading, and ordered published this 17th day of July, A.D. 2012, and to be presented for final passage on the 21st day of August, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 21st day of August, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk ORDINANCE NO. 070, 2012 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE LEASE OF CITY-OWNED PROPERTY AT BOBCAT RIDGE NATURAL AREA WHEREAS, the City is the owner of real property known as Bobcat Ridge Natural Area (the “Natural Area”); and WHEREAS, the Natural Area includes a house and detached garage located at 10200 West County Road 32C, Loveland, Colorado (the “Residence”); and WHEREAS, the Natural Areas department currently requires a Natural Areas ranger to live onsite at the Natural Area as part of his duties, and in exchange the ranger pays a reduced monthly rental rate; and WHEREAS, because the Natural Area is located outside of Fort Collins, having staff reside onsite facilitates maintenance, security and visitor assistance at the Natural Area; and WHEREAS, the Natural Areas department would like to update the lease for the Residence; and WHEREAS, a copy of the proposed Bobcat Ridge Residence Lease is on file in the office of the City Clerk and available for inspection; and WHEREAS, under the terms of the proposed new lease, the monthly rent for the Residence would be at least $630 with the tenant responsible for most utilities; and WHEREAS, the lease would be on a month-to-month basis, and the tenant would be required to vacate the premises if his or her employment status with the City changed; and WHEREAS, under Section 23-111(a) of the City Code, the City Council is authorized to sell, convey or otherwise dispose of any and all interests in real property owned in the name of the City provided that the City Council first finds, by ordinance, that such sale or other disposition is in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby finds that leasing the Residence to an on-site employee at Bobcat Ridge Natural Area under the terms described above is in the best interests of the City. Section 2. That the City Manager is hereby authorized to execute a lease agreement for the Residence on terms and conditions consistent with this Ordinance, together with such additional terms and conditions as the City Manager, in consultation with the City Attorney, determines to be necessary or appropriate to protect the interests of the City including, but not limited to, any necessary changes to the description of the premises to be leased, as long as such changes do not materially increase the size or change the character of the leased premises. Section 3. The authorization to lease pursuant to this Ordinance shall be valid for a period of ten years. Introduced, considered favorably on first reading, and ordered published this 17th day of July, A.D. 2012, and to be presented for final passage on the 21st day of August, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 21st day of August, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk ORDINANCE NO. 071, 2012 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE LEASE OF CITY-OWNED PROPERTY AT RESERVOIR RIDGE NATURAL AREA WHEREAS, the City is the owner of real property known as Reservoir Ridge Natural Area (the “Natural Area”); and WHEREAS, the Natural Area includes the Primrose Studio, which was donated to the City on condition that it be used as a nature education classroom and low-cost meeting space, and a separate residence located at 4300 West County Road 50 (the “Residence”); and WHEREAS, the Residence is currently leased to an on-site caretaker employed by the Natural Areas department, pursuant to Ordinance No. 152, 2007; and WHEREAS, the caretaker is required to live onsite as part of his duties, and in exchange pays a reduced monthly rental rate; and WHEREAS, because the Natural Area is located outside of Fort Collins, having staff reside onsite facilitates maintenance, operation and security at Primrose Studio; and WHEREAS, authority to lease the Residence under Ordinance No. 152, 2007 will expire in January 2013, and the Natural Areas department would like to update the lease for the Residence; and WHEREAS, a copy of the proposed Reservoir Ridge Residence Lease is on file in the office of the City Clerk and available for inspection; and WHEREAS, under the terms of the proposed new lease, the monthly rent for the Residence would be at least $350 with the tenant responsible for most utilities; and WHEREAS, the lease would be on a month-to-month basis, and the tenant would be required to vacate the premises if his or her employment status with the City changed; and WHEREAS, under Section 23-111(a) of the City Code, the City Council is authorized to sell, convey or otherwise dispose of any and all interests in real property owned in the name of the City provided that the City Council first finds, by ordinance, that such sale or other disposition is in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby finds that leasing the Residence to an on-site employee at Reservoir Ridge Natural Area under the terms described above is in the best interests of the City. Section 2. That the City Manager is hereby authorized to execute a lease agreement for the Residence on terms and conditions consistent with this Ordinance, together with such additional terms and conditions as the City Manager, in consultation with the City Attorney, determines to be necessary or appropriate to protect the interests of the City including, but not limited to, any necessary changes to the description of the premises to be leased, as long as such changes do not materially increase the size or change the character of the leased premises. Section 3. The authorization to lease pursuant to this Ordinance shall be valid for a period of ten years. Introduced, considered favorably on first reading, and ordered published this 17th day of July, A.D. 2012, and to be presented for final passage on the 21st day of August, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 21st day of August, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk