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HomeMy WebLinkAboutCOUNCIL - COMPLETE AGENDA - 01/17/2012 - COMPLETE AGENDAKaren Weitkunat, Mayor Kelly Ohlson, District 5, Mayor Pro Tem Council Chambers Ben Manvel, District 1 City Hall West Lisa Poppaw, District 2 300 LaPorte Avenue Aislinn Kottwitz, District 3 Wade Troxell, District 4 Cablecast on City Cable Channel 14 Gerry Horak, District 6 on the Comcast cable system Darin Atteberry, City Manager Steve Roy, City Attorney Wanda Krajicek, City Clerk The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and will make special communication arrangements for persons with disabilities. Assisted hearing devices are available to the public for Council meetings. Please call 221-6515 (TDD 224-6001) for assistance. REGULAR MEETING January 17, 2012 Proclamations and Presentations 5:30 p.m. A. Proclamation Declaring 2012 as the Year of Water. Regular Meeting 6:00 p.m. PLEDGE OF ALLEGIANCE 1. CALL MEETING TO ORDER. 2. ROLL CALL. Page 2 3. AGENDA REVIEW: • City Manager Review of Agenda. • Consent Calendar Review. This Review provides an opportunity for Council and citizens to pull items from the Consent Calendar. Anyone may request an item on this Calendar be “pulled” off the Consent Calendar and considered separately. N Council opportunity to pull Consent Calendar items. (will be considered under Item No. 15) N Citizen opportunity to pull Consent Calendar items. (will be considered under Item. No. 17) 4. CITIZEN PARTICIPATION 5. CITIZEN PARTICIPATION FOLLOW-UP This is an opportunity for the Mayor or Councilmembers to follow-up on issues raised during Citizen Participation. CONSENT CALENDAR The Consent Calendar consists of Items 6 through 11. This Calendar is intended to allow the City Council to spend its time and energy on the important items on a lengthy agenda. Staff recommends approval of the Consent Calendar. The Consent Calendar consists of: ! Ordinance on First Reading that are routine ! Ordinances on Second Reading that are routine ! Those of no perceived controversy ! Routine administrative actions. Individuals who wish to make comments regarding items remaining on the Consent Calendar or wish to address the Council on items not specifically scheduled on the agenda must first be recognized by the Mayor or Mayor Pro Tem. Before speaking, please sign in at the table in the back of the room. The timer will buzz once when there are 30 seconds left and the light will turn yellow. The timer will buzz again at the end of the speaker’s time. Each speaker is allowed 5 minutes. If there are more than 6 individuals who wish to speak, the Mayor may reduce the time allowed for each individual. ! State your name and address for the record. ! Applause, outbursts or other demonstrations by the audience are not allowed ! Keep comments brief; if available, provide a written copy of statement to City Clerk Page 3 6. Consideration and Approval of the Minutes of the December 20, 2011 and January 3, 2012 Regular Meetings and the December 13, 2011 and January 10, 2012 Adjourned Meetings. 7. Second Reading of Ordinance No. 001, 2012, Appropriating General Fund Reserves for Additional City Contribution to the Poudre Fire Authority Budget for the Year 2012 for Operations and Maintenance. This Ordinance, unanimously adopted on First Reading on January 3, 2012, outlines the contribution from the City of Fort Collins to the Poudre Fire Authority for the Southwest Enclave Annexation in the amount of $158,009 to contribute funding for operating and maintenance of the Poudre Fire Authority. 8. Second Reading of Ordinance No. 002, 2012, 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 $30,000 from the Eighth Judicial District Victim Assistance and Law Enforcement Board to help fund victim services activities. This Ordinance, unanimously adopted on First Reading on January 3, 2012, appropriates the grant funds. No cash match is required. 9. Second Reading of Ordinance No. 003, 2012, Appropriating Prior Year Reserves in the Transportation Services Fund for the Construction of the East Harmony Road Maintenance Improvements - College Avenue to Timberline Road. The East Harmony Road Maintenance Improvements Project will provide congestion relief and rehabilitate the pavement on East Harmony Road from College Avenue to Timberline Road by completing the following major work items: turn lane construction, utility relocations, asphalt overlay and restriping. Council approved this Project as part of the 2011/2012 Budgeting for Outcomes process. $2.4 million was allocated from the Harmony Maintenance Fund for the 2011 calendar year. A portion of this money was spent in 2011 on maintenance, operations and engineering design. This Ordinance, unanimously adopted on First Reading on January 3, 2012, appropriates the remaining $2,182,287 to the 2012 calendar year to be used for construction. 10. Second Reading of Ordinance No. 004, 2012, Amending Section 14-72(b)(6) of the City Code to Correct an Error in the Procedures for Review of Applications for Demolition or Relocation of Historic Structures. This Ordinance, unanimously adopted on First Reading on January 3, 2012, amends Section 14- 72(b)(6) of the City Code to correct an error regarding a citation cross-reference to requirements for the final Landmark Preservation Commission hearing needed in the event that the Landmark Preservation Commission fails to make a decision within 60 days of the submittal of these requirements. As the City Code currently stands, this error requires the Landmark Preservation Commission to make a decision regarding a historic structure demolition application upon the submittal of only one part of a submittal requirement outlined in 14-72(2)(b). This amendment corrects the error and requires the Landmark Preservation Commission to make a decision pursuant to fulfillment of all the submittal requirements. 11. First Reading of Ordinance No. 005, 2012, Amending Chapter 27 of the City Code to Modify the Requirements for Arborist Licenses, Designate Additional Violations of Chapter 27 as Civil Infractions, and Make Updates. Section 27-34 of the City Code requires businesses that wish to apply pesticides to trees for commercial gain or profit to have a City arborist license. The Colorado Department of Agriculture has conducted a review of the City Code provisions and Forestry policies related to the regulation of pesticides and pesticide application and notified the City Forester of its conclusion that this requirement conflicts with state statutes regarding the regulation of pesticide applicators. The proposed change to Chapter 27 would remove this conflict. Page 4 The other proposed changes to Chapter 27 are: (1) decriminalizing most violations of Chapter 27 by making every violation of Chapter 27 a civil infraction instead of a misdemeanor with the exception of those pertaining to arborist licenses; and (2) updating a position title and cross references, and removing unnecessary detail regarding department structure. END CONSENT 12. Consent Calendar Follow-up. This is an opportunity for Councilmembers to comment on items adopted or approved on the Consent Calendar. 13. Staff Reports. 14. Councilmember Reports. 15. Consideration of Council -Pulled Consent Items. DISCUSSION ITEMS The method of debate for discussion items is as follows: ! Mayor introduces the item number and subject; asks if formal presentation will be made by staff ! Staff presentation (optional) ! Mayor requests citizen comment on the item (five-minute limit for each citizen) ! Council questions of staff on the item ! Council motion on the item ! Council discussion ! Final Council comments ! Council vote on the item Note: Time limits for individual agenda items may be revised, at the discretion of the Mayor, to ensure all citizens have an opportunity to speak. Please sign in at the table in the back of the room. The timer will buzz when there are 30 seconds left and the light will turn yellow. It will buzz again at the end of the speaker’s time. 16. Second Reading of Ordinance No. 183, 2011, Authorizing the Lease of City-owned Property at 430 North College Avenue and 100 Willow Street to the Colorado State University Research Foundation. (staff: Bruce Hendee, Ken Mannon, Helen Matson; 10 minute staff presentation; 30 minute discussion) Colorado State University (CSU) has leased the City-owned property known as the Old Power Plant at 430 North College Avenue for the last 17 years. CSU has used this site as the Engines and Energy Conversion Lab (EECL). This program has grown over the years and it is Colorado State University Research Foundation’s (CSURF) desire to construct a new building that will be used to house additional labs, office and incubator companies sharing the vision of the EECL. A new lease agreement is necessary to accommodate these changes. This Ordinance, authorizing a new lease, was unanimously adopted on First Reading on December 20, 2011 (6-0, Troxell withdrew due to a conflict of interest). Page 5 Second Reading of Ordinance No. 183, 2011, was postponed from January 3 to January 17, 2012, since Council expressed concern with portions of the Lease on First Reading. Staff has met with CSURF to discuss the reduction of items in the River Buffer Zone and the proposed improvements for the access drive to the east door of the existing building. New language for the Lease Agreement is being drafted and CSURF is working on new exhibits showing suggested changes to the access drive. This information will be provided to Council by January 17. 17. Consideration of Citizen-Pulled Consent Items. 18. Other Business. a. Council will consider adjourning into executive session for the purposes of: (1) meeting with the City Attorney regarding pending litigation, as permitted under Section 2-31(a)(2) of the City Code (2) conducting the annual performance review of the City Attorney, as permitted under Section 2-31(a)(1)(a) of the City Code. 19. Adjournment. Every Council meeting will end no later than 10:30 p.m., except that: (1) any item of business commenced before 10:30 p.m. may be concluded before the meeting is adjourned and (2) the City Council may, by majority vote, extend a meeting until no later than 12:00 a.m. for the purpose of considering additional items of business. Any matter which has been commenced and is still pending at the conclusion of the Council meeting, and all matters scheduled for consideration at the meeting which have not yet been considered by Council, will be continued to the next regular Council meeting and will be placed first on the discussion agenda for such meeting. PROCLAMATION WHEREAS, water is a valuable resource, vital to the health and well-being of the citizens of Fort Collins and the residents of Colorado; and WHEREAS, the year 2012 marks the 130th anniversary of the City of Fort Collins Water Utility, the 20th anniversary of the Year of the Poudre and the 75th anniversary of major Colorado water legislation; and WHEREAS, the Colorado Water 2012 campaign is celebrating water statewide with events and activities throughout the year; and WHEREAS, the City of Fort Collins is planning year-long educational activities to bring awareness about the importance of each citizen in helping to protect our water from pollution, to practice water conservation and to get involved in local water issues; and WHEREAS, the City of Fort Collins seeks to connect its citizens with the many ways that water helps to make this a world-class community. NOW, THEREFORE, I, Karen Weitkunat, Mayor of the City of Fort Collins, do hereby proclaim the year of 2012 as the YEAR OF WATER in Fort Collins to celebrate the environmental, economic and community value of water to the City of Fort Collins and its residents. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort Collins this 17th day of January, A.D. 2012. __________________________________ Mayor ATTEST: _________________________________ City Clerk DATE: January 17, 2012 STAFF: Wanda Krajicek AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 6 SUBJECT Consideration and Approval of the Minutes of the December 20, 2011 and January 3, 2012 Regular Meetings and the December 13, 2011 and January 10, 2012 Adjourned Meetings. December 13, 2011 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council-Manager Form of Government Adjourned Meeting - 6:00 p.m. An adjourned meeting of the Council of the City of Fort Collins was held on Tuesday, December 13, 2011, 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: Manvel, Ohlson, Troxell, and Weikunat. Councilmembers Absent: Horak, Kottwitz, Poppaw Staff Members Present: Atteberry, Krajicek, Roy. Executive Session Authorized Councilmember Ohlson made a motion, seconded by Councilmember Troxell, to adjourn into executive session, as permitted under Section 2-31(a)(2) of the City Code for the purpose of meeting with attorneys for the City regarding legal issues. Yeas: Manvel, Ohlson, Troxell, and Weikunat. Nays: none. THE MOTION CARRIED. Adjournment City Attorney Roy clarified that the legal issues discussed in the executive session were related to the implementation of the citizen-initiated ordinance imposing a ban on medical marijuana dispensaries, effective February 14, 2012. At the conclusion of the executive session, the meeting was adjourned at 6:40 p.m. _________________________________ Mayor ATTEST: _____________________________ City Clerk 196 December 20, 2011 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, December 20, 2011, 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: Horak, Kottwitz, Manvel, Ohlson, Poppaw, Troxell and Weikunat. Staff Members Present: Atteberry, Krajicek, Roy. Agenda Review City Manager Atteberry withdrew Item No. 20, Resolution 2011-112 Adopting an Updated Policy for the Review and Approval of Easements on City Natural Areas and Conserved Lands, to January 3, 2012 and recommended consideration of Item No. 30, Resolution 2011-115, Relating to Assistance for Persons Displaced from Affordable Housing in the Fort Collins Area, immediately following Item No. 27, Second Reading of Ordinance No. 167, 2011, Amending Chapter 23, Articles IX and X of the City Code to Update Language Related to the Use of Motorized Devices on City Trails by People with Disabilities. Councilmember Manvel withdrew Item No. 22, Resolution 2011-114 Making Appointments to Various Boards, Commissions, and Authorities of the City of Fort Collins, from the Consent Calendar. Eric Sutherland, 3520 Golden Currant, withdrew Item No. 6, Postponement of Second Reading of Ordinance No. 131, 2011, Amending the Appeals Procedure Contained in Chapter 2, Article II, Division 3 of the City Code Relating to the Procedures for Hearing Appeals to the City Council to February 21, 2012, from the Consent Calendar Citizen Participation Vivian Armendariz, 820 Merganser Drive, opposed the late night Transfort Safe Ride Home program. Liz Pruessner, 712 Ponderosa Drive, Natural Resources Advisory Board chairperson, discussed the Board’s Poudre River Initiative and requested that the City develop an action plan for future generations. Rich Crisler, Occupy Northern Colorado, opposed the fees charged by the Open Door Mission. Joe Piesman, 210 East Elizabeth, Natural Resources Advisory Board member, discussed the Board’s Poudre River Initiative. 197 December 20, 2011 Citizen Participation Follow-up Mayor Weitkunat acknowledged receipt of the Natural Resources Advisory Board Poudre River Initiative and recommendations. Councilmember Poppaw asked staff to address Ms. Armendariz’ concerns regarding prioritizing the Safe Ride Home bus service over additional disabled bus services. City Manager Atteberry replied the Safe Ride Home program was a joint proposal between Police Services, ASCSU, and Transfort, and was approved by Council at the last regular meeting. He stated he would participate in a discussion with Ms. Armendariz regarding her desires for additional disabled bus service. Councilmember Poppaw asked staff to address the fact that Chase Eckert from ASCSU participated in the staff presentation of the Safe Ride Home item. City Manager Atteberry replied the Leadership Planning Team discussed the issue and has made a process change to ensure all individuals at the staff table are expected. In terms of Mr. Eckert, he was present as a partner regarding the item. Councilmember Poppaw stated the presence of lobbyists at the staff table is inappropriate. Councilmember Poppaw requested follow up regarding the Open Door Mission accusations. City Manager Atteberry replied the City does not provide funding for the Mission and stated he would confer with City Attorney Roy regarding the City’s role. Councilmember Manvel asked if the Open Door Mission is paying appropriate lodging taxes and submitting to appropriate inspections. He stated the Safe Ride Home program will aid in solving a public issue for all citizens. Councilmember Troxell noted the Safe Ride Home buses will be available for all citizens and defended the CSU student population as valuable community members. Councilmember Horak noted the Safe Ride Home program is funded jointly by Police Services and ASCSU and is a beneficial partnership. He stated he read the Natural Resources Advisory Board Initiative and noted the issue is part of Council’s plan. CONSENT CALENDAR 6. Postponement of Second Reading of Ordinance No. 131, 2011, Amending the Appeals Procedure Contained in Chapter 2, Article II, Division 3 of the City Code Relating to the Procedures for Hearing Appeals to the City Council to February 21, 2012. At its meeting of October 4, 2011, City Council considered Ordinance No. 131, 2011, Amending the Appeals Procedure. It was adopted on First Reading, but Council asked that staff conduct some outreach on the proposed changes, and Second Reading was scheduled for December 20. A public meeting was held on November 30, and approximately fourteen people attended. Several concerns about the appeals process were raised that are not addressed by the 198 December 20, 2011 proposed changes, and there was considerable discussion of the impact of the proposed amendments. Staff would like to request that Second Reading of this Ordinance be postponed until February 21, 2012. This will permit further discussion of the issues raised at the meeting, and refinement of the proposed amendments to address concerns. 7. Second Reading of Ordinance No. 168, 2011, Appropriating Unanticipated Revenue in the Capital Projects Fund for the Fort Collins Museum/Discovery Science Center Project. This Ordinance, unanimously adopted on First Reading on December 6, 2011, appropriates unanticipated revenue of $163,068 from the Discovery Science Center ($160,625) and LaFarge ($2,443) for the Museum Exhibit Capital Project. 8. Items Relating to Bobcat Ridge Natural Area. A. Second Reading of Ordinance No. 169, 2011, Authorizing the City Manager to Enter into a Grant Contract with History Colorado, the Colorado Historical Society for Funds to Restore Two Historic Structures at Bobcat Ridge Natural Area. B. Second Reading of Ordinance No. 170, 2011, Appropriating Unanticipated Revenue in the Natural Areas Fund Project to Restore Two Historic Structures at Bobcat Ridge Natural Area. The State of Colorado awarded the City a grant of $93,392 from the State Historical Fund to fund 75% of the estimated cost of $124,523 to restore two historic structures at Bobcat Ridge Natural Area: the 1888 pioneer barn and log chicken house. Ordinance No. 169, 2011, authorizes the City Manager to enter into a contract with History Colorado. The contract requires a twenty-year covenant on the property surrounding the barn and chicken shed, which states that the City will agree to maintain the buildings, once restored, for twenty years and will not alter anything on the property without express written permission of History Colorado. The City also received a $24,000 grant from the Pulliam Charitable Trust to provide most of the 25% in funds necessary to match the funds received from the State. Natural Areas Program funds will be used to fund the remaining $7,131 necessary to fully fund the project. Ordinance No. 170, 2011, authorizes the appropriation of the grant funds. Both Ordinances were unanimously adopted on First Reading on December 6, 2011. 9. Items Relating to the Seckner Brothers Building, 216, Linden Street. A. Second Reading of Ordinance No. 171, 2011, Appropriating Unanticipated Grant Revenue in the General Fund for the Exterior Rehabilitation of the Seckner Brothers Building at 216 Linden Street. 199 December 20, 2011 B. Resolution 2011-109 Authorizing the City Manager to Enter Into an Intergovernmental Agreement with the State of Colorado for the Use and Benefit of the Colorado Historical Society for the Administration of the Exterior Rehabilitation of the Seckner Brothers Building Located at 216 Linden Street. This Ordinance, unanimously adopted on First Reading on December 6, 2011, appropriates unanticipated revenue in the amount of $73,890 for the exterior facade rehabilitation of the Seckner Brothers Building, 216 Linden Street. The City was awarded a State Historical Fund grant in the amount of $35,000. Matching funds totaling $36,890 are provided by the Downtown Development Authority ($25,890), a City-funded Zero-Interest Loan ($6,100) and the remainder by the building’s owners, Irwin and Judith Winterowd. In order to accept the grant and proceed with the project, the City must enter into an intergovernmental agreement (IGA) with the Colorado Historical Society agreeing to administer the grant. The City of Fort Collins will only be responsible for administering the grant which will be carried out by Community Development and Neighborhood Services staff. Staff time allocated to administration will be reimbursed by the grant. The Resolution authorizes the City Manager to execute the IGA. 10. Second Reading of Ordinance No. 172, 2011, Adopting the 2012 Classified Employees’ Pay Plan. Ordinance No. 172, 2011, unanimously adopted on First Reading on December 6, 2011, adopts the 2012 classified employees’ pay plan. The 2012 Pay Plan establishes a structure for employee compensation. It is the framework that sets the minimum and maximum pay for City positions. The methodology used by the City is based on compensation best practices. The 2012 Pay Plan uses average actual salary data collected from public and private sector markets for benchmark positions to determine pay range midpoints within occupational groups. Ranges for non-benchmark jobs are established using a point factor system that is calibrated against the benchmark jobs. 11. Second Reading of Ordinance No. 173, 2011, Amending the City Code Concerning the Issuance of Special Event Permits by the Local Licensing Authority. Legislators adopted Senate Bill 11-066, which authorizes a local liquor licensing authority to issue special event permits to qualifying organizations and political candidates without sending the application to the state authority for approval. This Ordinance, unanimously adopted on First Reading on December 6, 2011, authorizes the local licensing authority to approve special event permit applications locally without obtaining state approval as allowed under Senate Bill 11-066. Additionally, there is a proposed increase of $25 in the local application fee to help defray some of the costs associated with the local application process, which generally exceed the proposed fee of $50 per day of permitted event. 200 December 20, 2011 12. Second Reading of Ordinance No. 174, 2011, Amending Chapter 26 of the City Code to Adopt and Provide for Technical Revision of the Fort Collins Stormwater Criteria Manual. The Stormwater Repurposing effort was initiated at a City Council work session in October 2008. The intent of this effort was to review the City’s stormwater program in its entirety, and explore new or reformed methods of water quality and quantity management in each of the City’s stormwater basins. The program review was broken down into 14 categories, with one specifically identifying the need to update the Stormwater Criteria Manual. This Ordinance, unanimously adopted on First Reading on December 6, 2011, adopts the Urban Drainage and Flood Control District (UDFCD) Criteria Manual and will set the standard for the City of Fort Collins. Exception language that identifies key aspects specific to the City will be adopted into the City Code concurrently with this action. 13. Second Reading of Ordinance No. 175, 2011, Designating the Bartlett/Goeke House and Attached Garage, 160 Yale Avenue, as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code. This Ordinance, unanimously adopted on First Reading on December 6, 2011, designates the Bartlett/Goeke House and Attached Garage, 160 Yale Avenue, as a Fort Collins Landmark. The owner of the property, Judith Goeke, is initiating this request. 14. Second Reading of Ordinance No. 176, 2011, Designating the Chestnut/ Wombacher Residence, Attached Three-Car Garage, and Historic Freestanding Fireplace, 331 South Shields Street/1200 West Magnolia Street, as Fort Collins Landmarks Pursuant to Chapter 14 of the City Code. This Ordinance, unanimously adopted on First Reading on December 6, 2011, designates the Chestnut/ Wombacher Residence, Attached Three-Car Garage, and Historic Freestanding Fireplace, located at 331 South Shields Street/1200 West Magnolia Street as a Fort Collins Landmark. The owner of the property, Margaret Wombacher, is initiating this request. 15. Second Reading of Ordinance No. 177, 2011, Designating the Lewis and Mae Tiley/Joanne F. Gallagher Residence and Attached Garage, 2500 South College Avenue, as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code. Ordinance No. 177, 2011, unanimously adopted on First Reading on December 6, 2011, designates the Lewis and Mae Tiley/Joanne F. Gallagher Residence and Attached Garage, located at 2500 South College Avenue, as a Fort Collins Landmark. The owner of the property, Joanne Gallagher, is initiating this request. 16. Second Reading of Ordinance No. 178, 2011, Amending the Land Use Code Regarding Digital Signs and Pole Signs. This Ordinance, unanimously adopted on First Reading on December 6, 2011, amends the Land Use Code regulations for digital signs and freestanding pole signs. With respect to 201 December 20, 2011 digital signs, the recommended Code changes address such things as brightness, color, design, and location. Additional design criteria to enhance the appearance of pole signs are also proposed. Three proposed standards contained in the Ordinance have been amended for Second Reading based on questions or concerns expressed during the First Reading hearing on this matter. One additional change is included on Second Reading to allow for flexibility in determining the compliance period for signs made nonconforming by future sign code amendments. 17. Second Reading of Ordinance No. 179, 2011, Appropriating Prior Year Reserves in the General Fund for Transfer to the Transit Services Fund and Appropriating Unanticipated Revenue in the Transit Services Fund for the Safe Ride Home Weekend Bus Service. Fort Collins Police Services (FCPS) has had recent discussions with the Associated Students of Colorado State University (ASCSU) about creating an additional transportation option for people leaving the downtown area on weekend nights. In this partnership Police Services hopes to accomplish important goals of reducing the number of people and the associated problems in the downtown area and increasing traffic safety by giving people an additional option for leaving downtown safely and decreasing the number of drivers who have been drinking during this timeframe. The available transportation is unable to meet the demand for transportation during this timeframe. ASCSU has an interest in providing this service for students and is willing to invest funds from student fees to address this need. By combining available funding, these parties are able to provide this service to all members of our community for a modest fare. The proposal is to enter into a one year contract between ASCSU and Transfort to provide two fixed bus routes on Friday and Saturday nights, every weekend during the term of the Agreement, from 11:30 PM to 2:30 AM. An ongoing assessment will be conducted to determine the effectiveness of this project, any potential improvements, and explore opportunities for long-term funding. This Ordinance, unanimously adopted on First Reading on December 6, 2011, appropriates the funds for the operation of a late night bus service. 18. Resolution 2011–110 Approving a Collective Bargaining Agreement with the Fraternal Order of Police. The City and the Northern Colorado Lodge #3, Colorado Fraternal Order of Police (FOP), using an interest based bargaining approach, engaged in negotiations regarding the terms and conditions of a possible bargaining agreement for 2012 and 2013. City staff and the FOP have tentatively reached an agreement. On November 30, 2011, bargaining unit members voted to ratify the proposed agreement. 202 December 20, 2011 19. Resolution 2011-111 Authorizing the Filing of Application with the Federal Transit Administration, an Operating Administration of the United States Department of Transportation, for Federal Transportation Assistance Authorized by 49 U.S.C. Chapter 53, Title 23 United States Code and Other Federal Statutes Administered by the Federal Transit Administration. The City of Fort Collins receives approximately $2.7million annually (five year average) in federal assistance from the Federal Transit Administration (FTA) for mass transportation projects. One requirement to receive this federal assistance is that the City retains on file with the FTA, an Authorizing Resolution from City Council that authorizes the City Manager or his/her designee on behalf of the City of Fort Collins to: (a) execute and file application for federal assistance with the FTA (b) execute federal assistance awards (grants) and cooperative agreements with the FTA (c) execute and file the annual certifications and assurances and other documents that are required by the FTA before federal assistance is awarded. The FTA has requested that the City of Fort Collins update the current Authorizing Resolution it has on file for the City, dated November 1990. 21. Resolution 2011-113 Authorizing an Intergovernmental Agreement with the Colorado State Board of Land Commissioners and Larimer County Regarding the Energy by Design Planning Process. Soapstone Prairie Natural Area (Soapstone) and Meadow Springs Ranch (MSR) are owned by the City of Fort Collins Natural Areas Program and Fort Collins Utilities, respectively. Soapstone and MSR are considered split estate properties as the City owns the surface estate and the mineral estate (including oil and gas) is owned by other parties. The State of Colorado owns approximately 12,400 acres of mineral rights underlying the properties: 3,500 underlying Soapstone and 8,900 underlying MSR. The Colorado State Board of Land Commissioners (SLB) has contracted with The Nature Conservancy (TNC) to conduct an Energy by Design (EbD) planning process on Soapstone and MSR. The goal of the EbD process is to develop a plan that conserves key natural, recreational, landscape view, agricultural, and cultural resource values while providing reasonable access to the SLB’s and others’ mineral estate. This plan also includes strategies to avoid, minimize, and mitigate surface impacts to key resources. Subject to Council review and approval of the proposed MOU, the City will be a partner in the planning process. The Memorandum of Understanding outlines the responsibilities of each party for the Energy by Design planning process. 22. Resolution 2011-114 Making Appointments to Various Boards, Commissions, and Authorities of the City of Fort Collins. Vacancies currently exist on various boards, commissions, and authorities due to resignations of board members and the expiration of terms of current members. Applications 203 December 20, 2011 were solicited during September and Council teams interviewed applicants during October, November, and December. This Resolution appoints boardmembers to fill current vacancies and term expirations. ***END CONSENT*** Ordinances on Second Reading were read by title by City Clerk Krajicek. 7. Second Reading of Ordinance No. 168, 2011, Appropriating Unanticipated Revenue in the Capital Projects Fund for the Fort Collins Museum/Discovery Science Center Project. 8. Items Relating to Bobcat Ridge Natural Area. A. Second Reading of Ordinance No. 169, 2011, Authorizing the City Manager to Enter into a Grant Contract with History Colorado, the Colorado Historical Society for Funds to Restore Two Historic Structures at Bobcat Ridge Natural Area. B. Second Reading of Ordinance No. 170, 2011, Appropriating Unanticipated Revenue in the Natural Areas Fund Project to Restore Two Historic Structures at Bobcat Ridge Natural Area. 9. Second Reading of Ordinance No. 171, 2011, Appropriating Unanticipated Grant Revenue in the General Fund for the Exterior Rehabilitation of the Seckner Brothers Building at 216 Linden Street. 10. Second Reading of Ordinance No. 172, 2011, Adopting the 2012 Classified Employees’ Pay Plan. 11. Second Reading of Ordinance No. 173, 2011, Amending the City Code Concerning the Issuance of Special Event Permits by the Local Licensing Authority. 12. Second Reading of Ordinance No. 174, 2011, Amending Chapter 26 of the City Code to Adopt and Provide for Technical Revision of the Fort Collins Stormwater Criteria Manual. 13. Second Reading of Ordinance No. 175, 2011, Designating the Bartlett/Goeke House and Attached Garage, 160 Yale Avenue, as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code. 14. Second Reading of Ordinance No. 176, 2011, Designating the Chestnut/ Wombacher Residence, Attached Three-Car Garage, and Historic Freestanding Fireplace, 331 South Shields Street/1200 West Magnolia Street, as Fort Collins Landmarks Pursuant to Chapter 14 of the City Code. 15. Second Reading of Ordinance No. 177, 2011, Designating the Lewis and Mae Tiley/Joanne F. Gallagher Residence and Attached Garage, 2500 South College Avenue, as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code. 204 December 20, 2011 16. Second Reading of Ordinance No. 178, 2011, Amending the Land Use Code Regarding Digital Signs and Pole Signs. 17. Second Reading of Ordinance No. 179, 2011, Appropriating Prior Year Reserves in the General Fund for Transfer to the Transit Services Fund and Appropriating Unanticipated Revenue in the Transit Services Fund for the Safe Ride Home Weekend Bus Service. 27. Second Reading of Ordinance No. 167, 2011, Amending Chapter 23, Articles IX and X of the City Code to Update Language Related to the Use of Motorized Devices on City Trails by People with Disabilities. Ordinances on First Reading were read by title by City Clerk Krajicek. 28. First Reading of Ordinance No. 182, 2011, Amending Section 15-483 of the City Code So as to Eliminate the Eight-ounce Limitation on the Amount of Medical Marijuana That Can Be Distributed by Licensees to Other Licensed Medical Marijuana Centers. 29. First Reading of Ordinance No. 183, 2011, Authorizing the Lease of City-owned Property at 430 North College Avenue and 100 Willow Street to the Colorado State University Research Foundation. Councilmember Manvel made a motion, seconded by Councilmember Troxell, to adopt and approve all items not withdrawn from the Consent Calendar. The vote on the motion was as follows: Yeas: Weitkunat, Manvel, Kottwitz, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. Staff Reports City Manager Atteberry stated the City will follow up as appropriate and with diligence regarding the Open Door Mission allegations. Glenn Good, Catholic Charities Regional Director, thanked the City for providing warehouse space for assembly and storage of holiday food and gift baskets. The temporary overflow shelter at the Knights of Columbus facility has proven to be needed and well used. Councilmember Poppaw asked about the necessity of individuals to pass a breathalyzer test prior to being allowed to stay at the shelter. Mr. Good replied individuals are turned away if they do not pass a breathalyzer but are offered the opportunity to be taken to the detoxification center in Greeley. Councilmember Reports Councilmember Poppaw discussed the Front Range Recruit graduation for Poudre Fire Authority graduates. 205 December 20, 2011 Councilmember Manvel discussed the Urban Renewal Authority and City financial reports presented at the Finance Committee meeting. He stated the Air Quality Advisory Board heard a presentation regarding the Master Home Environmentalist Program within the City. Mayor Weitkunat discussed the Colorado Municipal League Executive Board meeting and the beginning of the State legislative season. Resolution 2011-114 Making Appointments to Various Boards, Commissions, and Authorities of the City of Fort Collins, Adopted as amended The following is staff’s memorandum for this item. “EXECUTIVE SUMMARY Vacancies currently exist on various boards, commissions, and authorities due to resignations of board members and the expiration of terms of current members. Applications were solicited during September and Council teams interviewed applicants during October, November, and December. This Resolution appoints boardmembers to fill current vacancies and term expirations. BACKGROUND/DISCUSSION Section 1 of this Resolution makes 12 appointments to 9 boards and commissions to fill current vacancies with terms to begin immediately. Names of those individuals recommended to fill current vacancies have been inserted in the Resolution with the expiration date following the names. Section 2 of this Resolution makes 52 appointments to 22 boards and commissions to fill expired terms to begin on January 1, 2012. Names of those individuals recommended to fill expired terms have been inserted in the Resolution with the expiration date following the names. PUBLIC OUTREACH Vacancies were advertised in the Coloradoan and the City News (utility bill insert) and flyers were posted at various City buildings. Vacancies were also posted on fcgov.com, fortcollins.com and in the City’s Neighborhood News Newsletter. Flyers were also mailed to various diverse population groups/organizations, service organization, major employers, board and commission members, Active Applicants (applicants on file during 2011) and term limit boardmembers. 122 applications were submitted to fill 53 vacancies.” Councilmember Manvel discussed the appointment procedure and asked about the reason for not reappointing the sitting co-chair of the Land Conservation and Stewardship Board. Councilmember Kottwitz replied there were several qualified candidates and the decision to appoint a particular candidate over the sitting member was not political. Councilmember Troxell agreed with Councilmember Kottwitz and stated the appointment was made while looking at the overall balance of the Board. 206 December 20, 2011 Councilmember Manvel stated the City’s common practice has been to reappoint sitting members. Mayor Pro Tem Ohlson made a motion, seconded by Councilmember Poppaw, to adopt Resolution 2011-114. Councilmember Manvel requested a friendly amendment to change the appointment to Linda Knowlton. The amendment was accepted by Mayor Pro Tem Ohlson and Councilmember Poppaw. Councilmember Poppaw suggested Ed Reifsnyder be placed on the Board with the next open slot. Councilmember Manvel agreed with Councilmember Poppaw. Mayor Pro Tem Ohlson commended Ms. Knowlton on her work on the Board and stated he would support her reappointment. Councilmember Troxell suggested interviewers need to be made aware of an office position held by an incumbent applicant. The vote on the motion, as amended, was as follows: Yeas: Weitkunat, Kottwitz, Manvel, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. Ordinance No. 167, 2011, Amending Chapter 23, Articles IX and X of the City Code to Update Language Related to the Use of Motorized Devices on City Trails by People with Disabilities, Adopted on Second Reading The following is staff’s memorandum for this item. “EXECUTIVE SUMMARY On First Reading, the City Council amended Ordinance No. 167, 2011 to eliminate the provisions pertaining to implementation of a one year trial period to allow electric assisted bicycles on City trails. Provisions in the Ordinance to change the City Code to clarify that people with temporary or permanent mobility disabilities are allowed to operate ebikes and other power driven mobility devices on trails, and in parks and natural areas, in accordance with City regulations, were retained. This Ordinance was adopted with these revisions, on First Reading on November 15, 2011 by a vote of 4-2 (Nays: Troxell, Weitkunat). Changes were made to the Ordinance between First and Second Readings to shorten the title of the Ordinance, add information about recent ADA regulations, and remove a definition that is no longer needed. An Optional Version of the Ordinance is also provided on Second Reading that includes Code revisions to provide for a pilot ebikes program, as originally presented on First Reading. That version, which also includes shown in bold proposed edits to the title and in “whereas” clauses on 207 December 20, 2011 the first page that improve the explanation of the ADA-related changes, is labeled as “Optional Version.” Marty Heffernan, Director of Culture, Parks, Recreation, and Environment, stated this Ordinance will incorporate into the City Code the necessary changes to comply with the ADA regarding allowing the use of e-bikes, or other power driven mobility devices, on City trails for individuals with mobility disabilities. Ray Martinez, 4121 Stoneridge Court, asked if this Ordinance applies to disabled veterans. Mayor Pro Tem Ohlson replied in the affirmative. Eric Sutherland, 3520 Golden Currant, asked how disability is determined and expressed concern regarding potential speed issues. Doug Whitman, 311 East Plum, supported allowing all e-bikes on trails. Linda Knowlton, 3230 Monarch Court, supported the Ordinance as written and opposed allowing all e-bikes on trails. Dottie Spivak, 1914 Lookout Lane, supported the Ordinance as written and opposed allowing all e- bikes on trails. Glenn Colton, 625 Hinsdale Drive, opposed allowing e-bikes on trails and supported adoption of the Ordinance. Chris VanWoerkam, 8002 Hillsboro Court, supported allowing e-bikes on trails. Dawn Theis and other Parks and Recreation Boardmembers, supported a one-year trial period allowing e-bikes on trails. Rob Kagen, Parks and Recreation Board Vice-Chairperson, stated the Board unanimously supports a one-year trial period allowing e-bikes on trails. Shane Miller, 4325 Mill Creek, supported a one-year trial period allowing e-bikes on trails. Josh Kerson, 2814 West Vine, e-bike designer, thanked Council and staff for work on the item and supported a one-year trial period allowing e-bikes on trails. Trudy Haines, Land Conservation and Stewardship Board Chairperson, stated the Board unanimously opposes the use of e-bikes on trails. Councilmember Troxell asked how an e-bike violation would be determined. Ingrid Decker, Assistant City Attorney, replied regulations would make it unlawful to operate or park a motorized vehicle or other motorized means of conveyance anywhere in a natural area or park, other than on established roadways and designated parking areas. 208 December 20, 2011 Councilmember Troxell asked if walking an e-bike on a trail would be considered a violation. Decker replied in the negative. Councilmember Troxell asked how disallowing e-bikes would affect Fort Collins’ reputation as being bike-friendly. DK Kemp, Bicycle Coordinator, replied in support of the Ordinance. Councilmember Troxell stated he would like Council to discuss the optional version of the Ordinance which would allow a one-year trial period allowing e-bikes on trails. Mayor Pro Tem Ohlson asked about the timeline for the City trial study. Heffernan replied the study is an action item and has been on staff work plans. The first meeting regarding the study will be held the following day. Councilmember Kottwitz asked if respiratory and cardiac illnesses fall under the Americans with Disabilities Act (ADA). Decker replied the term “mobility disability” does not appear in the ADA. The Code provision would include any type of disability which would prevent a rider from using the trails without the means of electric assistance. Councilmember Kottwitz asked how that is going to be enforced. Decker replied the City is obligated to make reasonable accommodations for persons with disabilities and there are limitations on the number and type of questions which can be asked of a person to determine the nature of his disability. The Ordinance is written with the intent of enacting the provisions of the ADA. Councilmember Manvel noted this Ordinance would not change the law to disallow e-bikes, but rather continue the current ban. He supported a thorough trial study but noted there is overwhelming public opposition to allowing the e-bikes at this time. Mayor Weitkunat stated she has received a great deal of public input supporting e-bikes. Councilmember Manvel made a motion, seconded by Mayor Pro Tem Ohlson, to adopt Ordinance No. 167, 2011, on Second Reading. Councilmember Troxell supported a one-year trial allowing e-bikes on trails. Councilmember Kottwitz expressed concern that many individuals who are opposed to e-bikes may not necessarily know much about them. The vote on the motion was as follows: Yeas: Weitkunat, Manvel, Kottwitz, Ohlson, Poppaw and Horak. Nays: Troxell. THE MOTION CARRIED. (**Secretary’s note: The Council took a brief recess at this point in the meeting.) 209 December 20, 2011 Resolution 2011-115 Relating to Assistance for Persons Displaced from Affordable Housing in the Fort Collins Area, Adopted The following is staff’s memorandum for this item. “EXECUTIVE SUMMARY Council appropriated $50,000 in November 2011 for a relocation assistance program. In light of recent developments with the Bender Mobile Home Park, staff developed a disbursement plan that, if approved by Council, will be implemented beginning January 1, 2012. BACKGROUND / DISCUSSION Disbursement Plan Overview Staff is preparing to implement the recently approved budget amendment offer establishing a program that provides relocation assistance for displaced residents of affordable housing in the Fort Collins area. In view of recent concerns expressed by the City Council and the Community regarding the residents of Bender Mobile Home Park, staff has considered that situation in the course of developing the disbursement program. Council appropriated $50,000 in 2012 for a relocation assistance program. Neighbor to Neighbor is able and willing to administer City relocation assistance funds; however, however, to cover its client service and administrative costs it will charge 20% fee on the funds provided. This is an amount allowed by HUD for administration of funds. The fee covers reviewing applications, determining eligibility, disbursement of funds, all accounting, record keeping, and providing reports as requested. Public Purpose Providing monetary assistance to displaced low-income residents in the City, and on the fringes of the City within the City’s Growth management Area promotes the health, safety, and general welfare of a population that, without help, is at great risk of becoming homeless and placing greater burden on existing human service programs. Providing assistance in extreme cases where other resources are not available or residents cannot qualify helps to prevent imminent homelessness. The direct and indirect effects of increased homelessness in Fort Collins have been considered in other contexts, including a Council work session earlier this fall. Keeping people in housing and supporting low-income and affordable housing options supports existing City policies. City Plan (2011) speaks directly to this issue: Policy LIV 8.6 – Mitigate Displacement Impacts-- Explore ways to mitigate the impact upon residents displaced through the closure of manufactured housing parks or conversion of rental apartments, including single room occupancy units, to condominiums or other uses. 210 December 20, 2011 Proposed Disbursement Plan Staff recommends a uniform cap not to exceed $2,000 per household. Applications for assistance will be processed in the order they are received until all funds have been disbursed. Funds will be available to low-income residents, defined as being below 50% of the Area Median Income (AMI) for the City of Fort Collins, being displaced by redevelopment on property that is either in the City or adjacent to the City boundaries and within the Growth Management Area. The disbursement would be a maximum amount per household, to be used for any of the following purposes: • moving costs, including costs to move a trailer or move personal belongings • first month’s rent for new housing • security deposit for new housing • temporary storage of belongings • short-term hotel stays when a lease has been signed for new housing but such housing is not yet available; and • in the case of mobile homes, upgrades to mobile homes to enable acceptance at another park. Funds will be paid directly to a service provider or reimbursed upon documentation of valid receipt and payment. Only insured commercial service providers may receive funds. The $2,000 per household cap is consistent with the recent Grape Street relocation and takes into account typical expenses which would include security deposit, first months rent, moving expenses, and potential move out expenses. 2012 – Next Steps In 2012, Advance Planning will monitor and review this relocation assistance program plan. Work on a Relocation Policy Plan to address displacement of low-income residents is scheduled to begin in early 2012. Pending approval by City Council of this relocation assistance program, staff will use data and information from this program to develop and refine policy and program improvements in 2012. Funding for relocation assistance in fiscal years after 2012 will be reviewed as part of the Budgeting for Outcomes process for 2013-2014. Application of Program to Bender Park Residents The Bender Mobile Home Park is located at 912 Wood Street. The property is approximately 17 acres and borders the Poudre River. (See the attached map). The recent sale of the Bender Mobile Home Park and the state’s deadline to vacate due to a failed septic system increased the urgency and need for a relocation assistance program. State law requires mobile park residents to be given 6 months notice when the sale of a park will result in a change in use. These residents were given six months notice and the deadline for vacating the 211 December 20, 2011 mobile home park is April 2, 2012. The state has extended their deadline to vacate or completely repair the septic system to align with the 6 month change in use notice. As of November 1, 2011 there were 23 trailers in the park with 17 of those being a primary residence. Of those 17, approximately 5-7 are able to be moved and accepted by another park. The remaining trailers cannot be moved and will most likely be abandoned on the property. For those able to relocate their trailers the average cost is $3,000 to $5,000. This includes the disassembling, transporting, reassembling, and required permitting. Many older trailers could also potentially be required to install new skirting, siding, and roof upgrades. For residents to move from the mobile home park into a rental unit typically requires first and last month’s rent, a cleaning deposit, start up costs and deposits for utilities, and moving personal belongings. These costs usually range from $ $1,500 to $ 2,500. In light of the relocation costs and the general intention of the City to assist with a portion of the displacement and relocation costs, staff suggests a $2,000 cap is a meaningful amount that will help residents budget and offset some of their costs. Staff is working with local agencies and the developer to assemble assistance for residents. Neighbor to Neighbor and the Murphy Center are currently assisting residents where they are able within their existing programs. One household has received first month rent assistance from Neighbor to Neighbor and at least one other qualifies. Five residents had initial appointments with a case manager at the Murphy Center but have not returned since the first meeting. The Housing Authority strongly recommended that all residents complete an application with them although the wait list for housing is well over a year. Disabled Resource Services also offered their services. Staff continues to work with the developer in an attempt to leverage and pool funds. To date the developer has shown a willingness to help individuals as their needs are presented. By helping on a one-on-one basis, the developer is able to provide more timely assistance without the paperwork and documentation required by a City/agency program. Developer assistance to date has included: • Waived rent on one of two trailers owned by a resident • Return or non-collection of rent for residents with plans or in process of moving • Direct funds to help resident move trailer to new park • To date has provided 20 roll-offs and disposal for residents to dispose of unwanted items • Has agreed to incur all costs for trailers and items left at time of park closure (estimated cost to dispose of abandoned trailers is $1500-$2,000 per trailer.) As of December 2, 2011 the Northstar Trailer Park had spots for up to four Bender residents. The Northstar owner and the developer are working together to get these residents moved. The County was approached and asked to be a partner in assistance but based on current revenue and funding shortfalls and priorities they will not be offering assistance beyond existing human services programs. 212 December 20, 2011 FINANCIAL / ECONOMIC IMPACTS Providing relocation assistance in these instances is a long term investment. Helping people remain in housing prevents future community costs associated with homelessness. If the disbursement plan is approved by Council, it is likely that a significant portion, if not all funds, will be used by Bender households in 2012, leaving little or no funding assistance available for additional needs that may arise.” Deputy City Manager Diane Jones stated this Resolution is related to a $50,000 appropriation to assist residents displaced from affordable housing due to development projects. The recommendation is that the Neighbor to Neighbor agency conduct the administration of the relocation assistance program. The recommendation is for a uniform cap on assistance not to exceed $2,000 per low-income household for residents within or adjacent to City limits who have been displaced by redevelopment. Approved expenses will be reimbursed based on documentation or paid directly to vendors as necessary. Ginny Sawyer, Neighborhood Administrator, stated this policy has been accelerated based on the assistance needed at the Bender Mobile Home Park. Shane Miller, 4325 Mill Creek, suggested some allocation to aid in offsetting possible rent and utility increases and transportation costs. Cheryl Distaso, 135 South Sunset, Fort Collins Community Action Network, supported the Resolution. Debra Goodson, former resident of the Bender Mobile Home Park, stated the developer, Gino Campana, should bear a greater responsibility for relocation costs. She thanked the City for consideration of assistance funds. Marie Engle, former resident of the Bender Mobile Home Park, stated she is currently homeless and is a disabled veteran. She thanked the City for consideration of assistance funds and requested additional aid. Zach Heath, 2957 Telluride Court, supported the Resolution. Wiley McCallum, Bender Mobile Home Park resident, supported the Resolution but noted the funds are inadequate to support moving expenses. David Bell, Fort Collins resident, supported making the assistance provisions more flexible. John Anderson, Fort Collins resident, supported the Resolution and flexible provisions. Bridgette Schmidt, 932 Inverness, supported the Resolution and encouraged sustainable programs to continue into the future. 213 December 20, 2011 Eric Sutherland, 3520 Golden Currant, supported the Resolution and encouraged reform to the tax structure to improve this type of situation. Tom Tucker, 3019 Stanford, expressed concern about the program being too broad and supported administration by City staff rather than Neighbor to Neighbor. Jerry Gerber, 945 Maple Street, supported the Resolution. Councilmember Troxell asked about a City Charter provision which appears to conflict with this appropriation. Deputy City Manager Jones replied the Statement of Public Purpose addresses the view that it is a legitimate expenditure of the funds in regard to addressing the City’s affordable housing policies and reducing the risk of residents becoming homeless and requiring additional public service funds. City Attorney Roy replied staff has structured the program in a way that the City is in a position to make a good faith argument that it does not violate the Charter provisions. Councilmember Troxell asked if the City had reached out to faith-based organizations for donations specific to the Bender Mobile Home Park residents. Sawyer replied no solicitation of funds from the private sector was completed as the short time frame has required staff time be spent on the aid program. Councilmember Troxell asked what analysis has been completed regarding the needs of the Bender Mobile Home Park residents. Sawyer replied a meeting was held with all residents and appropriate agencies which resulted in certain gaps in funding. City Manager Atteberry replied he would reach out to the faith-based community on behalf of the City. Councilmember Poppaw stated the Interfaith Council has reached out in a tremendous way to the community’s homeless. She stated Mr. Campana should contribute an equal amount of assistance. Mayor Weitkunat asked about any fee which may be charged by Neighbor to Neighbor for administering the program. Sawyer replied the agency was selected as it has the ability to accurately make the disbursements. HUD allows up to a 20% administration fee which will cover staff time. Councilmember Horak asked if there are other areas in town which may be immediately affected by this program. Deputy City Manager Jones replied that could be added to Conceptual Review of project. Councilmember Manvel asked about the flexibility of the provisions. Deputy City Manager Jones replied the goal is to ensure the reimbursable costs directly relate to relocation and these include many of the items mentioned by the speakers. Councilmember Horak asked for a report regarding what assistance has been provided by Mr. Campana. Sawyer replied Mr. Campana has expressed interest in aiding individuals as needs arise. Rent has been waived in some instances and any abandoned mobile homes or other structures will be disposed of at his expense. 214 December 20, 2011 Councilmember Manvel made a motion, seconded by Councilmember Horak to adopt Resolution 2011-115. Councilmember Manvel noted this situation is likely to occur again in the future and therefore, it is clear a public purpose is necessary. The public purpose in this instance is clear. Councilmember Poppaw stated this will help the community prevent homelessness, which should be a goal. She questioned the lack of support from County Commissioners and suggested the dwindling number of affordable housing units in the community will need to be addressed in the near future. Councilmember Horak offered a friendly amendment to ensure the fee charged by Neighbor to Neighbor not exceed 20%. Councilmember Manvel accepted the amendment. Councilmember Kottwitz expressed concern approving this Resolution would be a reactionary decision based on emotions. Council has the responsibility not to set a precedent without appropriate policies. Councilmember Troxell stated individual citizens have a responsibility to address this issue; however, the government does not. Councilmember Horak stated an overall societal responsibility exists when eliminating affordable housing. He supported addressing the issue in a more holistic fashion during the next budget cycle to ensure the public services are not unduly burdened. Mayor Pro Tem Ohlson stated this issue requires a policy which includes private sector responsibilities. He expressed disappointment with the County Commissioners’ decisions. Mayor Weitkunat stated difficultly has arisen with regard to the fact this property does not lie within City limits and there are multiple parties which have not taken their full responsibility for the issue. She supported development of a policy to address these issues in the future. The vote on the motion was as follows: Yeas: Weitkunat, Manvel, Ohlson, Poppaw and Horak. Nays: Kottwitz and Troxell. THE MOTION CARRIED. Ordinance No. 182, 2011, Amending Section 15-483 of the City Code So as to Eliminate the Eight Ounce Limitation on the Amount of Medical Marijuana That Can Be Distributed by Licensees to Other Licensed Medical Marijuana Centers, Adopted on First Reading The following is staff’s memorandum for this item. 215 December 20, 2011 “EXECUTIVE SUMMARY All medical marijuana businesses in Fort Collins must cease operation by February 14, 2012. This amendment would allow existing businesses to sell more than 8 ounces of product to another licensed business outside the City limits in an effort to eliminate inventory by February 14, 2012. BACKGROUND / DISCUSSION During the creation of regulations addressing medical marijuana businesses in Fort Collins limits were included on both sale of medical marijuana to patients and to other licensed businesses. The existing Code includes the following: Sec. 15-483. Prohibited Acts. (b) It shall be unlawful for any licensee holding a medical marijuana center licensed, or for any agent, manager or employee thereof, to: (2)sell, give, dispense or otherwise distribute to any patient or primary caregiver who is not a licensee more than two (2) ounces of any usable form of medical marijuana (excluding medical marijuana-infused products) within any seven-day period of time; (3)sell, give, dispense or otherwise distribute to another licensed center more than eight (8) ounces of medical marijuana in any usable form within any seven-day period of time; The proposed ordinance maintains the sale limitation to patients but amends the restriction to other licensed businesses. Knowing that local businesses are needing to eliminate their inventories, staff feels this amendment will help provide a legal means to do so. The Ordinance would only allow these sales to licensees outside the City limits. Should Council approve the amendment on First Reading on December 20, 2011 and on Second Reading on January 3, 2012, local businesses would have from January 17, 2012 to February 14, 2012 to make these amended sales.” Ginny Sawyer, Neighborhood Administrator, stated this Ordinance would eliminate the current limitation of sales between licensed dispensaries to no more than 8 ounces in a week. This would aid the businesses in eliminating inventory prior to the required February 14, 2012 closing date. Councilmember Troxell asked if a detailed accounting of the existing stock exists. Jerry Schiager, Police Captain, replied the locations are all licensed for up to 300 patients; however, individual plants are not counted. Councilmember Troxell asked if there is an over-abundance of supply. Schiager replied some of the inspected businesses have been found to have extra supply. Sawyer replied some businesses have chosen not to complete their annual renewals which has resulted in some of the extra supply. 216 December 20, 2011 Councilmember Horak asked Schaiger if he supported the Ordinance. Schiager replied this Ordinance will give dispensaries a legitimate means to sell their product to other licensed dispensaries throughout the state. Councilmember Horak made a motion, seconded by Councilmember Manvel, to adopt Ordinance No. 182, 2011, on First Reading. Yeas: Weitkunat, Manvel, Kottwitz, Ohlson, Poppaw and Horak. Nays: Troxell. THE MOTION CARRIED. Ordinance No. 183, 2011, Authorizing the Lease of City-owned Property at 430 North College Avenue and 100 Willow Street to the Colorado State University Research Foundation, Adopted on First Reading The following is staff’s memorandum for this item. “EXECUTIVE SUMMARY Colorado State University (CSU) has leased the City-owned property known as the Old Power Plant at 430 North College Avenue for the last 17 years. CSU has used this site as the Engines and Energy Conversion Lab (EECL). This program has grown over the years and it is CSURF’s desire to construct a new building that will be used to house additional labs, office and incubator companies sharing the vision of the EECL. A new lease agreement was necessary to accommodate these changes. The new lease agreement will be with Colorado State University Research Foundation (CSURF) and CSU will relinquish all rights, title and interest in the original Lease Agreement dated February 15, 1994 and the First Amendment to Lease Agreement dated January 13, 2005. BACKGROUND / DISCUSSION History of Site and Current use The City acquired the property located at 430 North College Avenue in 1912. A municipal landfill operated on a portion of the site in the mid-1900s. The City constructed the existing facility as a power plant. This plant was in operation from 1935 until 1972. From 1972 until 1988, it was used as a switching station. The next use was as an art gallery in 1988 and 1989. On February 15, 1994, the City entered into a Lease Agreement with CSU to use the site and the old power plant building for laboratory and research purposes focusing on internal combustion engine. This Lease Agreement had an original term of ten years with automatic renewals for three successive five year periods, or a total 25 years. The rental rate during these years was $1/year. That Lease Agreement was modified in the summer of 2004. This modification was to add another five year extension period to the lease, making the lease a total of 30 years. Also included in this modification, the City agreed to increase the termination notice period to five years. The City 217 December 20, 2011 agreed to these changes to assist CSU with fundraising activities for EECL’s programs and the potential of a new building. New Lease Terms and Definitions Due to CSU’s plan to add the new building on the City-owned property, staffs from CSU, CSURF and the City started negotiations for a new lease agreement. An agreement has been reached on the terms of the lease (Attachment 2). A summary of the lease definitions and lease terms is provided below: Lease Definitions City Property – the Power Plant property currently leased to CSU. Main Building – the existing Power Plant building. Main Parcel – the Power Plant property that would be leased to CSURF in the new lease. New Building – the building CSURF plans to build on the Main Parcel. Parking Parcel – a parcel of City property south of the Main Parcel that CSURF would lease to build a parking lot on. Leased Premises – the Main Parcel and Parking Parcel. CSURF Affiliates – CSU or any person, persons or entity working for CSURF or CSU or their subsidiary departments, programs or organizations. Lease Terms Tenant: CSURF would be the tenant. The current lease to CSU dated February 15, 1994, with an amendment dated January 13, 2005, would terminate. Lease Term: CSURF intends to construct a new building and related improvements on the property. The “Initial Term” of the Lease would be 40 years, with two 20 year extensions at CSURF’s sole option, if CSURF builds the New Building. However, if CSURF does not build the New Building within eight years, the Initial Term would be 10 years with one five year extended term at CSURF’s sole option, and up to two additional 10 year terms with the City’s consent in its discretion. (Articles II and III) Rent: “Base Rent” for the Initial Term of the Lease would be $1,000 and $1,000 for each extended term if CSURF builds the New Building. If CSURF does not build the new building, there would be no additional rent paid for the five-year extended term, and rent for each succeeding 10 year term would be $500. (Article IV) Option to Purchase: CSURF has the option to purchase the Leased Premises in the future if the City and CSURF can agree on terms, and subject to City Council approval. (Article V) Uses of the Leased Premises: CSURF can build the New Building on the Main Parcel and parking improvements on the Parking Parcel. The City has the right to approve the final plans for all improvements. The Main Parcel can be used for instructional, teaching and laboratory and 218 December 20, 2011 research purposes focused on developing innovative and alternate energy solutions, developing and testing entrepreneurial models, and similar purposes. (Article VI) Maintenance: CSURF is responsible for maintaining the Leased Premises including the Fountain, Monument and Grotto located on the property. CSURF also agrees to restore the Fountain. The City is responsible for any restoration of the Monument and Grotto. (Article VII) Alterations and Improvements: All alterations, additions and improvements to the Leased Premises must be approved by the City as owner of the property, and must comply with the “Reasonable Steps in Vicinity of Poudre River Site” developed in accordance with the EPA’s Administrative Order on Consent for the Northside Aztlan Community Center property cleanup. (Article VIII.) CSURF agrees to relocate or remove improvements comprising at least 50% of the existing utility court area adjacent to the Main Building, which lies within the Poudre River Buffer. (Article VIII) Lease Expiration or Termination: On expiration of the Lease all improvements made by CSURF on the Leased Premises would become the property of the City. If CSURF terminates the lease because of a default by the City, the City would compensate CSURF for the fair market value of the New Building. (Article IX) Right of First Refusal: If the City wants to sell its interest in the Leased Premises it must first give CSURF the opportunity to purchase it on the same terms and conditions. (Article XII) Utilities: CSURF will pay for all utilities used on the Leased Premises. (Article XIV) Subletting and Assignment: CSURF can sublease portions of the Leased Premises with the City’s consent, except that City consent is not needed for CSURF to assign the Lease to CSU or to sublease to CSURF Affiliates. Any money CSURF receives for subleases must be used to financially support CSURF’s approved activities on the Leased Premises. Any money left over after paying CSURF’s costs and expenses for such activities will be divided equally between the City and CSURF, but the amount paid to the City will not exceed the fair market rental value of the Leased Premises for any applicable year. (Article XVI) Environmental Concerns: The City, CSU and CSURF are each responsible for remediation of any environmental contamination on the property that results from their respective occupancies of the property. In addition, CSURF would be responsible for proper removal, remediation or special management or handling of any materials it handles or disturbs on the Leased Premises, during construction or otherwise. In constructing the New Building and other improvements CSURF is responsible for proper worker training, arranging for proper treatment and disposal of waste from the Leased Premises, and for submitting a Voluntary Clean Up Program (VCUP) application to the Colorado Department of Public Health and Environment (CDPHE) for the area of construction and complying with the resulting CDPHE Soil Characterization and Management Plan (SCMP). If CSURF decides not to build the New Building because of environmental contamination issues on the Leased Premises, CSURF may terminate the Lease on 90 days notice to the City. (Article XXVI) 219 December 20, 2011 Parking: If CSURF makes parking improvements on the Parking Parcel the City will be able to use it for public purposes at times other than 8:00 a.m. to 5:00 p.m. Monday through Friday. The City and CSURF will work on identifying possible parking spots on the Main Parcel that could also be available for public parking. (Article XXVIII) A copy of the Lease Agreement is attached (Attachment 2). Follow-up Items from the September 27 Work Session presentation: Fountain: CSURF is planning to move the fountain to a new location on attached Exhibit D. Staff from Historic Preservation did not have any information that the fountain had ever been moved since it was placed at 430 North College Avenue. Along with day to day maintenance of the fountain, CSURF must also restore the fountain to the specifications of the Landmark Preservation Commission. Maintenance of grotto and monument: The grotto could be used for water filtration, with the proper permits. If CSURF does not utilize the grotto, then it will only be responsible for day-to-day maintenance of the grotto and surrounding landscaping and the monument. Renovation of these two landmarks would be the responsibility of the City, at its sole option and cost. If CSURF does want to utilize the grotto, it would not only be responsible for regular maintenance, but would also be responsible to renovate the grotto and landscaping. Removal of items in the River Buffer: Exhibit G of the Lease Agreement (Attachment 2) shows the utility court area and the Lease Agreement specifies that this area will be reduced by at least 50%. This will be accomplished by, upon, or prior to final completion of the New Building. The design for the new building has not been completed, so specifics of equipment to be removed cannot be provided. Exhibit G also shows the proposed Utility Court to be moved farther from the Poudre River, but still within the River Buffer. This is subject to the City’s development review process, and approval by the City as property owner. FINANCIAL / ECONOMIC IMPACTS Regional Economic Development • As a research institution the EECL has been awarded over $20M in research awards: these funds are used locally to fund infrastructure at the EECL, students at CSU, research staff, etc. The EECL currently employs a dozen professional research and support staff, as well as approximately 50 graduate and undergraduate students • The EECL has actively engaged in the development of “spin-off” enterprises, which have been awarded over $55M in funding commitments. In addition these spin-off companies currently employ over 70 professional engineers, managers, and scientists. • Additional companies have been attracted to Fort Collins as the EECL has become an “anchor” for the clean-tech industry 220 December 20, 2011 • Additional companies have been (or are in the process of being) accelerated through partnerships with the EECL (CZero, Van Dyne Superturbo, Spirae). These companies represent additional 20-30 primary jobs in the Fort Collins downtown area. Typical universities will see one start-up company generated for every $100M of R&D, the best universities will see one start-up per $25-$35M of R&D (CalTech, MIT, etc). At the EECL the ratio is 1 start-up per $7M of R&D investment. ENVIRONMENTAL IMPACTS A portion of the Main Parcel had been used in the past as part of a historical municipal landfill and the Parking Parcel is a portion of the Poudre River/Aztlan site (the Brownfields site to the south of the Main Parcel). With this knowledge, the City updated its Phase I of the Main Parcel and followed that with a Phase II Environmental Site Assessment. Since the Parking Parcel is a part of the Poudre River/Aztlan site, CDPHE required the City to update its Soil Characterization and Management Plan of the Poudre River/Aztlan Site. CSURF and the City have agreed to share the costs of these reports since these reports are beneficial to both the City and CSURF. The Phase II Assessment did identify the following: soil contamination, including arsenic, lead and asbestos; groundwater contamination, including benzene, and poly-aromatic hydrocarbons; and, soil vapors including methane. Although soil and groundwater contamination was identified at the site, the contamination may be managed appropriately as to not prohibit construction of a new building and improvements. CSURF has agreed to apply to CDPHE for a Voluntary Clean-up Plan (“VCUP”). The requirements established by CDPHE in the VCUP process will detail to CSURF how potential contamination will be managed during the project. CDPHE will be the primary source for information regarding management of contamination encountered during the construction project. Such measures may include an indoor system to mitigate soil vapors from methane contamination.” Councilmember Troxell withdrew from the discussion of Ordinance No. 183, 2011, Authorizing the Lease of City-owned Property at 430 North College Avenue and 100 Willow Street to the Colorado State University Research Foundation, due to a conflict of interest. Bruce Hendee, Chief Sustainability Officer, stated this Ordinance would extend the lease and allow for a building addition. Carol Webb, Regulatory and Government Affairs, stated six environmental assessments have been conducted on this site since 1993 and discussed the results of those tests. CSURF is pursuing a voluntary cleanup process through the State. Ken Mannon, Operations Services Director, discussed the new lease and stated the new building must be constructed within eight years or the lease will revert to a 10-year term. CSURF has the option to purchase the property at any time given agreed upon terms and Council approval and is responsible for all property maintenance as well as removal of contamination that may be disturbed during construction. 221 December 20, 2011 Eric Sutherland, 3520 Golden Currant, supported the Ordinance. Josh Kerson, 2814 West Vine, supported the Ordinance. Brian Wilson, CSU Engines Laboratory Director, supported the Ordinance. Councilmember Manvel asked about property taxes. Hendee confirmed the property is tax exempt. Mayor Pro Tem Ohlson asked how and why the 200 foot buffer zone has been ignored on this property. Helen Matson, Real Estate Services Manager, replied there were two outbuildings when CSURF started renting the facility and the buffer zones were not considered in the approval process when Solix began renting space. Mayor Pro Tem Ohlson expressed concern regarding the dismissal of the buffer zones. City Manager Atteberry stated he will research the issue. Mayor Pro Tem Ohlson asked why the utility equipment lies within the buffer zone. Matson replied the equipment existed in its current location when Real Estate Services took over the lease. Mayor Pro Tem Ohlson asked when the buildings and equipment would be removed from the buffer zone if the new building is not constructed. City Manager Atteberry replied that issue will be pursued and answered prior to Second Reading. Mayor Pro Tem Ohlson asked about the details of the potential site clean-up. Webb replied clean-up means materials management and minimizing excavation. Councilmember Manvel asked about the use of a tunnel shown on the illustrations. Mannon replied the tunnel was part of the original power plant and 400 feet of the tunnel in front of the building is being considered to be used for cooling implements. Mr. Wilson replied it is unclear as to whether or not this option will be used. Councilmember Horak asked if there are compensation policies for developing within buffer zones. City Manager Atteberry replied he would return to Council with additional information. Mayor Weitkunat noted the benefits of public space as well as buffer preservation. Councilmember Horak made a motion, seconded by Mayor Pro Tem Ohlson, to adopt Ordinance No. 183, 2011, on First Reading. Councilmember Horak commended the project and use of the building. Mayor Pro Tem Ohlson commended the project and use of the building but expressed concern regarding potential new development within the buffer zone. City Manager Atteberry noted the final design is not complete and stated concerns will be addressed. Mayor Weitkunat commended the Engines Lab as an asset to the community. 222 December 20, 2011 The vote on the motion was as follows: Yeas: Weitkunat, Manvel, Kottwitz, Ohlson, Poppaw and Horak. Nays: none. THE MOTION CARRIED. Resolution 2011-116 Appointing a Representative to the Colorado Municipal League Policy Committee, Adopted The following is staff’s memorandum for this item. “EXECUTIVE SUMMARY Fort Collins has two representatives on the Colorado Municipal League Policy Committee, Councilmember Lisa Poppaw and City Manager Darin Atteberry. Councilmember Poppaw has requested to be replaced as she is unable to attend the meetings. This Resolution will appoint another Councilmember as the City’s representative to the CML Policy Committee. BACKGROUND / DISCUSSION The Policy Committee is responsible for reviewing legislative proposals and recommending to the League Executive Board, positions of support, opposition, no position or amendment to a wide variety of legislation affecting cities and towns. At each annual conference in June, the Policy Committee proposes to the membership, revisions to the League’s policies which guide League positions on public policy issues affecting municipalities. The Committee meets three or four times a year, before and during legislative sessions as well as in May prior to the annual conference. The next CML Policy Committee meeting will be held on February 23, 2012.” Councilmember Poppaw made a motion, seconded by Councilmember Kottwitz, adopt Resolution 2011-116 appointing Councilmember Wade Troxell to the CML Policy Committee, replacing Councilmember Lisa Poppaw. Yeas: Weitkunat, Manvel, Kottwitz, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. Resolution 2011-117 Making an Appointment to the Zoning Board of Appeals, Adopted The following is staff’s memorandum for this item. “EXECUTIVE SUMMARY A vacancy currently exists on the Zoning Board of Appeals due to the term limit vacancy of Jim Pisula. 223 December 20, 2011 Mayor Karen Weitkunat and Mayor Pro Tem Kelly Ohlson conducted interviews but did not agree on a recommendation for this vacancy. The Council interview team wishes to submit two names (Robert V. Long and Rudolph C. Zitti) for Council’s consideration for that position.” Councilmember Manvel made a motion, seconded by Councilmember Poppaw, to adopt Resolution 2011-117, appointing Robert Long to the Zoning Board of Appeals. Mayor Weitkunat supported the appointment of Rudolph Zitti to the Zoning Board of Appeals. Mayor Pro Tem Ohlson supported the appointment of Robert Long to the Zoning Board of Appeals. Councilmember Kottwitz supported Rudolph Zitti. The vote on the motion was as follows: Yeas: Manvel, Ohlson, Poppaw and Horak. Nays: Weitkunat, Kottwitz and Troxell. THE MOTION CARRIED. Extension of the Meeting Councilmember Manvel made a motion, seconded by Mayor Pro Tem Ohlson, to extend the meeting past 10:30 p.m. Councilmember Poppaw expressed concern regarding late meetings not being good governance. Councilmember Kottwitz requested information regarding the number of times this Council has extended meetings beyond 10:30 p.m. and beyond 12:00 a.m. Mayor Pro Tem Ohlson suggested discussing the item at a retreat and stated all options need to be considered, including potentially adding a meeting. The vote on the motion was as follows: Yeas: Weitkunat, Manvel, Ohlson, Horak and Troxell. Nays: Kottwitz and Poppaw. THE MOTION CARRIED. Ordinance No. 131, 2011, Amending the Appeals Procedure Contained in Chapter 2, Article II, Division 3 of the City Code Relating to the Procedures for Hearing Appeals to the City Council, Second Reading Postponed to February 21, 2012 The following is staff’s memorandum for this item. 224 December 20, 2011 “EXECUTIVE SUMMARY At its meeting of October 4, 2011, City Council considered Ordinance No. 131, 2011, Amending the Appeals Procedure. It was adopted on First Reading, but Council asked that staff conduct some outreach on the proposed changes, and Second Reading was scheduled for December 20. A public meeting was held on November 30, and approximately fourteen people attended. Several concerns about the appeals process were raised that are not addressed by the proposed changes, and there was considerable discussion of the impact of the proposed amendments. A summary of the meeting is attached. Staff would like to request that Second Reading of this Ordinance be postponed until February 21, 2012. This will permit further discussion of the issues raised at the meeting, and refinement of the proposed amendments to address concerns.” Eric Sutherland, 3520 Golden Currant, expressed concern relating to the appeals process and opposed the Ordinance. Councilmember Manvel made a motion, seconded by Councilmember Horak, postponing Second Reading of Ordinance No. 131, 2011 to February 21, 2012. Yeas: Weitkunat, Manvel, Kottwitz, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. Adjournment The meeting adjourned at 10:45 p.m. _________________________________ Mayor ATTEST: _____________________________ City Clerk 225 January 3, 2012 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 3, 2012, 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: Horak, Kottwitz, Manvel, Ohlson, Poppaw, Troxell and Weikunat. Staff Members Present: Atteberry, Krajicek, Roy. Agenda Review City Manager Atteberry stated there were no changes to the published agenda. Citizen Participation Eric Sutherland, 3520 Golden Currant, discussed the City Charter prohibition of lending money to organizations not under control of the City. Gary Peterson, Fort Collins resident, discussed the alleged intimidation by the Larimer County Sheriff’s Office of doctors who write medical marijuana prescriptions. Cheryl Distaso, 135 South Sunset Street, Center for Justice, Peace, and Environment, thanked Council for its decision to approve financial assistance for individuals forced to relocate from the Bender Mobile Home Park. She encouraged similar assistance from both the developer and Larimer County and supported the formation of a task force relating to these issues. CONSENT CALENDAR 6. Consideration and Approval of the Minutes of the December 6, 2011 Regular Meeting. 7. Postponement of Second Reading of Ordinance No. 183, 2011, Authorizing the Lease of City-owned Property at 430 North College Avenue and 100 Willow Street to the Colorado State University Research Foundation to January 17, 2012. Staff is requesting postponement of Second Reading of Ordinance No. 183, 2012, until January 17, 2012. There were portions of the Lease Agreement that caused concern with the City Council at its December 20, 2011 meeting. Staff from the City and Colorado State University Research Foundation need to discuss these areas of concern and agree on changes to the lease. Several of the key team members will be out of the office for the holiday season. This does not leave enough time to meet and complete negotiations prior to the meeting of January 3, 2012. 226 January 3, 2012 8. First Reading of Ordinance No. 001, 2012, Appropriating General Fund Reserves for Additional City Contribution to the Poudre Fire Authority Budget for the Year 2012 for Operations and Maintenance. This Ordinance outlines the contribution from the City of Fort Collins to the Poudre Fire Authority (PFA) for the Southwest Enclave Annexation in the amount of $158,009 to contribute funding for operating and maintenance of the Poudre Fire Authority. 9. First Reading of Ordinance No. 002, 2012, Appropriating Unanticipated Grant Revenue in the General Fund for the Police Services Victim Services Team. The Fort Collins Police Services Victim Services Team has been awarded a 12-month grant in the amount of $30,000 for the period from January 1, 2012 to December 31, 2012, by the Eighth Judicial District Victims Assistance and Law Enforcement (V.A.L.E.) Board to help fund services provided by this team. These funds will be used for part of the salary for the victim advocate who provides crisis intervention services during weekday hours and is housed in the Victim Services office. These funds will also pay for some of the operational expenses needed to provide 24-hour a day, 7-day a week services to victims of crime in the community. 10. First Reading of Ordinance No. 003, 2012, Appropriating Prior Year Reserves in the Transportation Services Fund for the Construction of the East Harmony Road Maintenance Improvements - College Avenue to Timberline Road. The proposed project will provide congestion relief and rehabilitate the pavement on East Harmony Road from College Avenue to Timberline Road by completing the following major work items: turn lane construction, utility relocations, asphalt overlay and restriping. The lane configurations from College to Boardwalk will look similar to the current striping. The Boardwalk to Timberline stretch will be restriped to a six-lane configuration. 11. First Reading of Ordinance No. 004, 2012, Amending Section 14-72(b)(6) of the City Code to Correct an Error in the Procedures for Review of Applications for Demolition or Relocation of Historic Structures. This is an amendment to Section 14-72(b)(6) of the City Code correcting an error regarding a citation cross-reference to requirements for the final Landmark Preservation Commission hearing needed in the event that the Landmark Preservation Commission fails to make a decision within 60 days of the submittal of these requirements. As the City Code currently stands, this error requires the Landmark Preservation Commission to make a decision regarding a historic structure demolition application upon the submittal of only one part of a submittal requirement outlined in 14-72(2)(b). This amendment corrects the error and requires the Landmark Preservation Commission to make a decision pursuant to fulfillment of all the submittal requirements. 227 January 3, 2012 12. Resolution 2012-001 Adopting an Updated Policy for the Review and Approval of Easements on City Natural Areas and Conserved Lands. The City of Fort Collins Natural Areas and Open Lands Easement Policy was adopted by Resolution 2001-094. To date, approximately forty right-of-way easements have been granted by the City under this Policy. The Natural Areas program (NAP) is proposing revisions to the Policy to address: 1. Compensation and mitigation requirements 2. Review and approval of projects proposed within existing easements 3. Above-ground features associated with buried utility cables and pipelines 4. Specific types of facilities 5. Review and approval of projects within new or existing utility easements on lands conserved with Conservation Easements 6. Oil and Gas and Minerals Exploration and Production 7. Public Information and Review Process. 13. Resolution 2012-002 Authorizing a First Amendment to the Intergovernmental Agreement between the Poudre River Public Library District, the City of Fort Collins and Larimer County. In December 2007 the City Council approved an intergovernmental agreement (IGA) between the Fort Collins Regional Library District (later renamed the Poudre River Public Library District), the City and Larimer County. That agreement addressed a range of items, including the transfer of City-owned assets and library operations to the newly formed Library District, use of remaining library impact fees, and the availability of City support services to the District at District expense. This amendment to the IGA adds Project Management as a service the City will provide to the District and provides a detailed scope of project management services. It also clarifies that in the event that the City receives a request for a refund of City Impact Fees held in the Public Library Fund, the District will reimburse the City for the full amount of any such refund. ***END CONSENT*** Ordinances on Second Reading were read by title by City Clerk Krajicek. 18. Second Reading of Ordinance No. 182, 2011, Amending Section 15-483 of the City Code So as to Eliminate the Eight Ounce Limitation on the Amount of Medical Marijuana That Can Be Distributed by Licensees to Other Licensed Medical Marijuana Centers. 228 January 3, 2012 Ordinances on First Reading were read by title by City Clerk Krajicek. 8. First Reading of Ordinance No. 001, 2012, Appropriating General Fund Reserves for Additional City Contribution to the Poudre Fire Authority Budget for the Year 2012 for Operations and Maintenance. 9. First Reading of Ordinance No. 002, 2012, Appropriating Unanticipated Grant Revenue in the General Fund for the Police Services Victim Services Team. 10. First Reading of Ordinance No. 003, 2012, Appropriating Prior Year Reserves in the Transportation Services Fund for the Construction of the East Harmony Road Maintenance Improvements - College Avenue to Timberline Road. 11. First Reading of Ordinance No. 004, 2012, Amending Section 14-72(b)(6) of the City Code to Correct an Error in the Procedures for Review of Applications for Demolition or Relocation of Historic Structures. Councilmember Troxell withdrew from the discussion of the Consent Calendar due to a conflict of interest with Item No. 7, Postponement of Second Reading of Ordinance No. 183, 2011, Authorizing the Lease of City-owned Property at 430 North College Avenue and 100 Willow Street to the Colorado State University Research Foundation to January 17, 2012. Councilmember Manvel made a motion, seconded by Councilmember Poppaw, to adopt and approve all items on the Consent Calendar. Yeas: Weitkunat, Manvel, Kottwitz, Ohlson, Poppaw and Horak. Nays: none. THE MOTION CARRIED. Staff Reports Carol Webb, Regulatory and Governmental Affairs Manager, stated the Drake Water Reclamation Facility has received ISO certification for environmental management. Mayor Pro Tem Ohlson asked if this accomplishment will be advertised by the City. Webb replied in the affirmative. Councilmember Horak asked that the costs and benefits of the certification be disclosed. Webb replied that information will be forthcoming. Adrienne Battis, City/CSU Community Liaison, gave an update regarding party registration and noted the registration of a party is not only for students. 229 January 3, 2012 Councilmember Reports Mayor Weitkunat discussed the two proclamations read before the Council Meeting and noted this is Radon Action Month and the 100th anniversary of City Park. Ordinance No. 182, 2011, Amending Section 15-483 of the City Code So as to Eliminate the Eight Ounce Limitation on the Amount of Medical Marijuana That Can Be Distributed by Licensees to Other Licensed Medical Marijuana Centers, Adopted on Second Reading The following is staff’s memorandum for this item. “EXECUTIVE SUMMARY All medical marijuana businesses in Fort Collins must cease operation by February 14, 2012. This Ordinance, adopted on First Reading on December 20, 2011 by a vote of 6-1 (nays: Troxell) will allow existing businesses to sell more than 8 ounces of product to another licensed business outside the City limits in an effort to eliminate inventory by February 14, 2012.” Ginny Sawyer, Neighborhood Administrator, stated no changes have been made to the Ordinance since First Reading and noted the Ordinance would aid medical marijuana dispensaries in legally disbursing inventory outside the City limits. Councilmember Troxell expressed concern dispensaries will continue to grow marijuana until February 14th as they would have the ability to sell an unlimited quantity. Jerry Schiager, Police Services, replied this Ordinance could encourage some growers to continue to grow, but noted the timeframe may not allow for a full 12 week grow cycle. Councilmember Manvel made a motion, seconded by Councilmember Poppaw, to adopt Ordinance No. 182, 2011, on Second Reading. Councilmember Troxell stated he would not support the motion as the Ordinance encourages the sale of medical marijuana which is a violation of federal law. Councilmember Horak noted Colorado citizens adopted Amendment 20, allowing the use of medical marijuana in the state. Councilmember Troxell argued the retail model was not addressed as part of Amendment 20. The vote on the motion was as follows: Yeas: Weitkunat, Manvel, Kottwitz, Ohlson, Poppaw and Horak. Nays: Troxell. THE MOTION CARRIED. 230 January 3, 2012 Other Business Mayor Pro Tem Ohlson made a motion, seconded by Councilmember Poppaw, that the City Manager and City Attorney prepare a written statement that can be made available to the general public explaining, from the City’s perspective, why the transaction among the City, Urban Renewal Authority and RMI2 was legally permissible and, from a policy standpoint, why it was in the best interests of the City and the URA; and that the City Council waive the attorney-client privilege to the extent that the City Attorney considers necessary in order to prepare that statement. The vote on the motion was as follows: Yeas: Weitkunat, Manvel, Kottwitz, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. Mayor Pro Tem Ohlson requested information regarding the City’s plan regarding “fracking” and asked that it take appropriate action to protect citizens and property rights. City Attorney Roy stated a roundtable discussion, spearheaded by the Colorado Municipal League, is scheduled for January 20, 2012. Members of City staff will be in attendance at that discussion. City Manager Atteberry stated a response regarding the City’s position will be forthcoming later in January. Adjournment Mayor Pro Tem Ohlson made a motion, seconded by Councilmember Manvel, to adjourn to 6:00 p.m. on January 10, 2012, to consider various matters related to the Northern Integrated Supply Project, including a possible executive session. Yeas: Weitkunat, Manvel, Kottwitz, Ohlson, Poppaw and Troxell. Nays: Horak. THE MOTION CARRIED. The meeting adjourned at 7:00 p.m. _________________________________ Mayor ATTEST: _____________________________ City Clerk 231 January 10, 2012 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council-Manager Form of Government Adjourned Meeting - 6:00 p.m. An adjourned meeting of the Council of the City of Fort Collins was held on Tuesday, January 10, 2012, 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: Horak, Manvel, Ohlson, Poppaw, Troxell, and Weikunat. Councilmembers Absent: Kottwitz Staff Members Present: Atteberry, Krajicek, Roy. Executive Session Authorized Councilmember Ohlson made a motion, seconded by Councilmember Manvel, to adjourn into executive session, as permitted under Section 2-31(a)(2) of the City Code for the purpose of meeting with attorneys for the City, the City Manager and affected members of City staff to discuss possible litigation regarding certain water storage projects and the effect that such projects may have on the City’s water supply and other areas of interest and concern to the City. Yeas: Manvel, Ohlson, Poppaw, Troxell, and Weikunat. Nays: Horak. THE MOTION CARRIED. Adjournment At the conclusion of the executive session, the meeting was adjourned at 7:15 p.m. _________________________________ Mayor ATTEST: _____________________________ City Clerk 232 DATE: January 17, 2012 STAFF: Mike Beckstead AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 7 SUBJECT Second Reading of Ordinance No. 001, 2012, Appropriating General Fund Reserves for Additional City Contribution to the Poudre Fire Authority Budget for the Year 2012 for Operations and Maintenance. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on January 3, 2012, outlines the contribution from the City of Fort Collins to the Poudre Fire Authority for the Southwest Enclave Annexation in the amount of $158,009 to contribute funding for operating and maintenance of the Poudre Fire Authority. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - January 3, 2012 (w/o attachments) COPY COPY COPY COPY ATTACHMENT 1 DATE: January 3, 2012 STAFF: Mike Beckstead AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 8 SUBJECT First Reading of Ordinance No. 001, 2012, Appropriating General Fund Reserves for Additional City Contribution to the Poudre Fire Authority Budget for the Year 2012 for Operations and Maintenance. EXECUTIVE SUMMARY This Ordinance outlines the contribution from the City of Fort Collins to the Poudre Fire Authority (PFA) for the Southwest Enclave Annexation in the amount of $158,009 to contribute funding for operating and maintenance of the Poudre Fire Authority. BACKGROUND / DISCUSSION When the City of Fort Collins annexes property, it reduces the amount of revenue brought into the Poudre Valley Fire Protection District based on the mill levy on such property. The calculated amount of revenue lost from the City's Southwest Enclave Annexation is $158,009. When the 2012 City Budget was adopted, it did not include any additional contribution from the City of Fort Collins to Poudre Fire Authority for the City's Southwest Enclave Annexation. During a PFA Board of Directors meeting on December 14, 2010, it was conveyed that the City would contribute money to PFA to compensate for the lost revenue to the District from the City's Southwest Enclave Annexation (Attachment 1). This Ordinance appropriates the dollars the City committed to PFA in the amount of $158,009. FINANCIAL / ECONOMIC IMPACTS Adoption of the Ordinance will establish the City’s contribution to the Poudre Fire Authority for the Southwest Annexation in 2012. As previously adopted in Resolution 2011-104, the Revenue Allocation Formula outlined the City’s contribution to PFA for operations, maintenance and capital needs in the amount of $18,890,451, excluding the $158,009 contribution for the Southwest Enclave Annexation. Adoption of this Ordinance brings the total 2012 City contribution to PFA to $19,048,460. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. ATTACHMENTS 1. Poudre Fire Authority Board of Directors Meeting Notes, December 14, 2010. ORDINANCE NO. 001, 2012 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING GENERAL FUND RESERVES FOR ADDITIONAL CITY CONTRIBUTION TO THE POUDRE FIRE AUTHORITY BUDGET FOR THE YEAR 2012 FOR OPERATIONS AND MAINTENANCE WHEREAS, on December 22, 1981, the City entered into an Intergovernmental Agreement (the “IGA”) with the Poudre Valley Fire Protection District creating the Poudre Fire Authority (the “PFA”), which IGA was amended in 1987; and WHEREAS, the PFA provides fire protection services to all properties within the City limits and the City has a continuing commitment to provide funding to the PFA for its public safety services; and WHEREAS, City Council adopted Resolution 2011-104 to allocate $18,890,451 to the PFA for operations, maintenance, and capital needs for the year 2012 based on the approved revenue allocation formula (RAF); and WHEREAS, the adopted Resolution did not include compensation in the amount of $158,009 for lost revenue to the PFA from the City’s Southwest Enclave Annexation; and WHEREAS, this Ordinance will appropriate $158,009 from General Fund reserves for the PFA’s 2012 operations and maintenance budget; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such appropriations, in combination with all previous appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated revenues to be received during the fiscal year. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS, that there is hereby appropriated for expenditure from reserves in the General Fund the sum of ONE HUNDRED FIFTY EIGHT THOUSAND AND NINE DOLLARS ($158,009) for additional contribution to the 2012 Poudre Fire Authority Budget. Introduced, considered favorably on first reading, and ordered published this 3rd day of January, A.D. 2012, and to be presented for final passage on the 17th day of January, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 17th day of January, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk DATE: January 17, 2012 STAFF: Melissa Funk AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 8 SUBJECT Second Reading of Ordinance No. 002, 2012, Appropriating Unanticipated Grant Revenue in the General Fund for the Police Services Victim Services Team. EXECUTIVE SUMMARY The City has received a grant in the amount of $30,000 from the Eighth Judicial District Victim Assistance and Law Enforcement Board to help fund victim services activities. This Ordinance, unanimously adopted on First Reading on January 3, 2012, appropriates the grant funds. No cash match is required. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - January 3, 2012 (w/o attachments) COPY COPY COPY COPY ATTACHMENT 1 DATE: January 3, 2012 STAFF: Melissa Funk AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 9 SUBJECT First Reading of Ordinance No. 002, 2012, Appropriating Unanticipated Grant Revenue in the General Fund for the Police Services Victim Services Team. EXECUTIVE SUMMARY The Fort Collins Police Services Victim Services Team has been awarded a 12-month grant in the amount of $30,000 for the period from January 1, 2012 to December 31, 2012, by the Eighth Judicial District Victims Assistance and Law Enforcement (V.A.L.E.) Board to help fund services provided by this team. These funds will be used for part of the salary for the victim advocate who provides crisis intervention services during weekday hours and is housed in the Victim Services office. These funds will also pay for some of the operational expenses needed to provide 24-hour a day, 7-day a week services to victims of crime in the community. BACKGROUND / DISCUSSION The Victim Services Team has received funding from the V.A.L.E. grant since the inception of the program in 1996. Services have been provided to thousands of victims and their family members who have become victims of violent crime in the community. Council has approved appropriations of the grant revenue every year. Services to the community would be drastically cut without this grant award. FINANCIAL / ECONOMIC IMPACTS The City has received a grant in the amount of $30,000, a $4,000 decrease from 2011, from the Eighth Judicial District Victim Assistance and Law Enforcement (V.A.L.E.) Board to help fund victim services activities. This grant requires no cash match. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. ORDINANCE NO. 002, 2012 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED GRANT REVENUE OF IN THE GENERAL FUND FOR THE FORT COLLINS POLICE SERVICES VICTIM SERVICES TEAM WHEREAS, the City of Fort Collins Police Services has been awarded a grant in the amount of $30,000 (the “Grant”) for the period from January 1, 2012 to December 31, 2012 by the Eighth Judicial District Victims and Law Enforcement (“VALE”) Board to support the Fort Collins Police Services Victim Services Team (the “Victim Services Team”); and WHEREAS, the Victim Services Team provides crisis intervention, resources and referral services to victims of violent crime as well as other traumatic situations; and WHEREAS, the Grant will be used to fund a part of the salary for the victim advocate who provides crisis intervention services and to partially pay for operational expenses needed to provide 24-hour a day, 7-day a week services to victims of crime in our community; and WHEREAS, Article V, Section 9, of the City Charter permits the City Council to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriations, in combination with all previous appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, City staff has determined that the appropriation of the Grant from the VALE Board to support the Victim Services Team will not cause the total amount appropriated in the relevant funds to exceed the current estimate of actual and anticipated revenues to be received in that fund during any fiscal year. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated from unanticipated grant revenue in the General Fund the sum of THIRTY THOUSAND DOLLARS ($30,000) for expenditure in the General Fund for the Fort Collins Police Services Victim Services Team. Introduced, considered favorably on first reading, and ordered published this 3rd day of January, A.D. 2012, and to be presented for final passage on the 17th day of January, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 17th day of January, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk DATE: January 17, 2012 STAFF: Rick Richter Tim Kemp AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 9 SUBJECT Second Reading of Ordinance No. 003, 2012, Appropriating Prior Year Reserves in the Transportation Services Fund for the Construction of the East Harmony Road Maintenance Improvements - College Avenue to Timberline Road. EXECUTIVE SUMMARY The East Harmony Road Maintenance Improvements Project will provide congestion relief and rehabilitate the pavement on East Harmony Road from College Avenue to Timberline Road by completing the following major work items: turn lane construction, utility relocations, asphalt overlay and restriping. Council approved this Project as part of the 2011/2012 Budgeting for Outcomes process. $2.4 million was allocated from the Harmony Maintenance Fund for the 2011 calendar year. A portion of this money was spent in 2011 on maintenance, operations and engineering design. This Ordinance, unanimously adopted on First Reading on January 3, 2012, appropriates the remaining $2,182,287 to the 2012 calendar year to be used for construction. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - January 3, 2012 (w/o attachments) COPY COPY COPY COPY ATTACHMENT 1 DATE: January 3, 2012 STAFF: Rick Richter Tim Kemp AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 10 SUBJECT First Reading of Ordinance No. 003, 2012, Appropriating Prior Year Reserves in the Transportation Services Fund for the Construction of the East Harmony Road Maintenance Improvements - College Avenue to Timberline Road. EXECUTIVE SUMMARY The proposed project will provide congestion relief and rehabilitate the pavement on East Harmony Road from College Avenue to Timberline Road by completing the following major work items: turn lane construction, utility relocations, asphalt overlay and restriping. The lane configurations from College to Boardwalk will look similar to the current striping. The Boardwalk to Timberline stretch will be restriped to a six-lane configuration. BACKGROUND / DISCUSSION Council approved this project as part of the 2011 / 2012 Budgeting for Outcomes process. $2.4 million was allocated from the Harmony Maintenance Fund for the 2011 calendar year. A portion of this money was spent in 2011 on maintenance, operations and engineering design. The reappropriation of funds to the 2012 calendar year is for the remainder of $2,182,287 which will be used for construction. Engineering has been working on the final construction documents in 2011, along with identifying and negotiating right- of-way and temporary construction easements for the proposed turn lanes. The City is also working with the Union Pacific Railroad and the Public Utilities Commission for the at-grade crossing west of Timberline Road. A pedestrian connection will be constructed across the railroad tracks on the north side of Harmony Road with the completion of this project. The project will be bid in spring 2012 and constructed in early summer 2012. Staff is seeking to reappropriate the funds previously approved in 2011 to calendar year 2012. FINANCIAL / ECONOMIC IMPACTS In 2006, the City received funding from the Colorado Department of Transportation (CDOT) to maintain Harmony Road and complete a list of capital improvements for the corridor. This project addresses the need for pavement maintenance for a significant stretch of Harmony Road, which meets the intent of the agreement with CDOT. This section of roadway is the last major portion of Harmony Road to receive pavement treatment when looking at the limits from College Avenue to Strauss Cabin Road. Short and long term benefits include the easing of traffic congestion, improved signal timing and reduced vehicle delays along the corridor. By implementing these improvements in 2012 to one of the City’s key arterial thoroughfares, the traveling public will move more efficiently among the businesses throughout the corridor due to the restriping to six lanes adjacent to the Union Pacific Railroad. More extensive and costly future repairs will be avoided by investing now in extending the life of the pavement. ENVIRONMENTAL IMPACTS The project will have a positive impact on long term air quality. Congestion relief will be aided by the six-lane configuration from Boardwalk to Timberline, along with the addition of three new right turn lanes in this stretch. Congestion relief will reduce vehicle wait time, thus reducing vehicle emissions. COPY COPY COPY COPY January 3, 2012 -2- ITEM 10 Another positive environmental factor is that a majority of the pavement already exists. There are very few widening areas along the two mile stretch, which reduces the footprint of the construction limits. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. PUBLIC OUTREACH The Project Team met with business owners adjacent to the project. Public outreach will be intensified prior to, and during construction of the project. ATTACHMENTS 1. Project Location Map ORDINANCE NO. 003, 2012 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE TRANSPORTATION SERVICES FUND FOR THE CONSTRUCTION OF THE EAST HARMONY ROAD MAINTENANCE IMPROVEMENTS - COLLEGE AVENUE TO TIMBERLINE ROAD WHEREAS, in 2006, the City received funding from the Colorado Department of Transportation (CDOT) to maintain Harmony Road for 20 years and to complete a list of capital improvements along the corridor; and WHEREAS, with the 2011-2012 budget process, the City Council approved offer number 146.6 appropriating funds in 2011 for pavement maintenance on Harmony Road from College Avenue to Timberline Road (the “Project”); and WHEREAS, the Project includes the following major work items: turn lane construction, utility relocations, and asphalt overlay and re-striping; and WHEREAS, benefits of the Project include the easing of traffic congestion, improved signal timing, and reduced vehicle delays along the corridor; and WHEREAS, City staff has been working on the final design and the Project will be ready to bid in the spring of 2012; and WHEREAS, the funds appropriated in the 2011 budget will lapse into the Transportation Services Fund reserves at the end of 2011; and WHEREAS, City staff is requesting the reappropriation of $2.4 million to complete the Project in 2012; and WHEREAS, Article V, Section 9, of the City Charter permits the City Council to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriations, in combination with all previous appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated; and WHEREAS, City staff has determined that the appropriation of the revenue as described herein will not cause the total amount appropriated in the Capital Projects Fund to exceed the current estimate of actual and anticipated revenues to be received in that fund during any fiscal year. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS, that there is hereby appropriated for expenditure from prior year reserves in the Transportation Services Fund the sum of TWO MILLION ONE HUNDRED EIGHTY-TWO THOUSAND TWO HUNDRED EIGHTY-SEVEN DOLLARS ($2,182,287) for the construction of the East Harmony Road Maintenance Improvements - College Avenue to Timberline Road.. Introduced, considered favorably on first reading, and ordered published this 3rd day of January, A.D. 2012, and to be presented for final passage on the 17th day of January, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 17th day of January, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk DATE: January 17, 2012 STAFF: Karen McWilliams Courtney Levingston AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 10 SUBJECT Second Reading of Ordinance No. 004, 2012, Amending Section 14-72(b)(6) of the City Code to Correct an Error in the Procedures for Review of Applications for Demolition or Relocation of Historic Structures. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on January 3, 2012, amends Section 14-72(b)(6) of the City Code to correct an error regarding a citation cross-reference to requirements for the final Landmark Preservation Commission hearing needed in the event that the Landmark Preservation Commission fails to make a decision within 60 days of the submittal of these requirements. As the City Code currently stands, this error requires the Landmark Preservation Commission to make a decision regarding a historic structure demolition application upon the submittal of only one part of a submittal requirement outlined in 14-72(2)(b). This amendment corrects the error and requires the Landmark Preservation Commission to make a decision pursuant to fulfillment of all the submittal requirements. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - January 3, 2012 (w/o attachments) COPY COPY COPY COPY ATTACHMENT 1 DATE: January 3, 2012 STAFF: Karen McWilliams Courtney Levingston AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 11 SUBJECT First Reading of Ordinance No. 004, 2012, Amending Section 14-72(b)(6) of the City Code to Correct an Error in the Procedures for Review of Applications for Demolition or Relocation of Historic Structures. EXECUTIVE SUMMARY This is an amendment to Section 14-72(b)(6) of the City Code correcting an error regarding a citation cross-reference to requirements for the final Landmark Preservation Commission hearing needed in the event that the Landmark Preservation Commission fails to make a decision within 60 days of the submittal of these requirements. As the City Code currently stands, this error requires the Landmark Preservation Commission to make a decision regarding a historic structure demolition application upon the submittal of only one part of a submittal requirement outlined in 14- 72(2)(b). This amendment corrects the error and requires the Landmark Preservation Commission to make a decision pursuant to fulfillment of all the submittal requirements. BACKGROUND / DISCUSSION Chapter 14 of the City Code is the City’s preservation ordinance and includes the bulk of regulation on historic properties. Specifically, Section 14-72 provides the procedure regarding demolition of structures that are individually eligible for local landmark designation commonly called the Demolition/Alteration Review. According to this section, if a structure is found to be individually eligible for local landmark designation, an applicant wishing to demolish that structure must attend a preliminary and then a final hearing with the Landmark Preservation Commission. In order to schedule the final hearing, an applicant is required to provide: 1. documentation of the history and architecture of the building by completing a Colorado Cultural Resource Survey Architectural Inventory Form 2. information about the historic character of the immediate neighborhood, so that the impact of the proposal on the eligibility of other nearby properties may be assessed; 3. final, approved plans for the proposed work. At the Final Hearing, the Landmark Preservation Commission conducts a public meeting to determine if the requirements (as stated above) are met, and either approves the application, postpones the application due to submittal insufficiencies, or may refer the application to City Council for consideration. The final subsection (6) of Section 14-72 states that if the Landmark Preservation Commission fails to make a decision within 60 days of the submittal of the requirements for final hearing that the application for demolition will be approved by default. The City Code correction for Section 14-72(6) is as follows: (6) In the event that the Commission has not made a final decision within sixty (60) days of the date of the submittal of information required pursuant to Subparagraph (2)b.2.(b)(2)b hereof, in detail acceptable to the Director of Community Development and Neighborhood Services, then the Commission shall be deemed to have approved, without condition, the proposed demolition or relocation. In conclusion, this amendment corrects the existing error in Section 14-72(b)(6) by stating that the applicant must submit all three requirements that are outlined in 14-72(2)(b) to the Landmark Preservation Commission. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. ORDINANCE NO. 004, 2012 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING SECTION 14-72(b)(6) OF THE CODE OF THE CITY OF FORT COLLINS TO CORRECT AN ERROR IN THE PROCEDURES FOR REVIEW OF APPLICATIONS FOR DEMOLITION OR RELOCATION OF HISTORIC STRUCTURES WHEREAS, Section 14-72 of the City Code establishes procedures for the review of applications for demolition or relocation, under the City’s landmark preservation ordinances; and WHEREAS, Section 14-72(b)(6) contains an error in a citation of a cross-reference, which error results in an incomplete and illogical requirement by imposing an obligation upon the Landmark Preservation Commission to make a decision regarding a demolition application upon the submittal of only one part of a three-part submittal requirement which is contained earlier in Section 14-72; and WHEREAS, this requirement can be corrected by changing the cross-reference from subparagraph (2)b.2. to instead refer to subparagraph (b)(2)b.; and WHEREAS, the cross-reference to subparagraph (2)b.2. should be a cross-reference to subparagraph (b)(2)b. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that Section 14-72(b)(6) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 14-72. Procedures for review of applications for demolition or relocation. . . . (6) In the event that the Commission has not made a final decision within sixty (60) days of the date of the submittal of information required pursuant to Subparagraph (b)(2)b hereof, in detail acceptable to the Director of Community Development and Neighborhood Services, then the Commission shall be deemed to have approved, without condition, the proposed demolition or relocation. Introduced, considered favorably on first reading, and ordered published this 3rd day of January, A.D. 2012, and to be presented for final passage on the 17th day of January, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 17th day of January, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk DATE: January 17, 2012 STAFF: Tim Buchanan AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 11 SUBJECT First Reading of Ordinance No. 005, 2012, Amending Chapter 27 of the City Code to Modify the Requirements for Arborist Licenses, Designate Additional Violations of Chapter 27 as Civil Infractions, and Make Updates. EXECUTIVE SUMMARY Section 27-34 of the City Code requires businesses that wish to apply pesticides to trees for commercial gain or profit to have a City arborist license. The Colorado Department of Agriculture has conducted a review of the City Code provisions and Forestry policies related to the regulation of pesticides and pesticide application and notified the City Forester of its conclusion that this requirement conflicts with state statutes regarding the regulation of pesticide applicators. The proposed change to Chapter 27 would remove this conflict. The other proposed changes to Chapter 27 are: (1) decriminalizing most violations of Chapter 27 by making every violation of Chapter 27 a civil infraction instead of a misdemeanor with the exception of those pertaining to arborist licenses; and (2) updating a position title and cross references, and removing unnecessary detail regarding department structure. BACKGROUND / DISCUSSION The Colorado Department of Agriculture has the authority to regulate commercial pesticide application in Colorado. The Pesticide Program Manager with Colorado Department of Agriculture has conducted an evaluation of the City’s requirement to license businesses that apply pesticides to trees. A letter was sent by the Colorado Department of Agriculture to the City Manager on September 29, 2011 and included the following. “Sections 35-10-112(3) and 35-10-112.5, C.R.S., prohibit local governments from adopting or continuing in effect any ordinance regarding the use of any pesticide by commercial pesticide applicators regulated by the Pesticide Applicators’ Act. The Department’s purpose in reviewing such ordinances is to identify any inconsistencies with these state laws and suggest changes, if necessary, to avoid conflict or confusion. Any person acting as a commercial applicator must possess a valid commercial applicator business license issued by the commissioner in accordance with this article and any rule and regulations adopted pursuant thereto. The additional city licensure requirement in section 27-34, therefore, conflicts with and is thus preempted by section 35-10-112.5(2), C.R. S.” The Colorado Commercial Applicators Act requires a commercial pesticide applicator license for businesses that apply pesticides in Colorado. To obtain the state license, one must pass the general exam and at least one category exams. There is also an insurance requirement. The state has a northern area inspector to provide review and enforcement. The City has required an arborist license for businesses that apply pesticides to trees since 1971. Currently, an arborist license is also required for businesses that prune or remove trees when cuts for pruning or removal work are made 10 feet or greater above the ground. Revisions to Chapter 27 made in 2005 included the requirement for an arborist license for businesses that make applications of pesticides to trees and for those that perform pruning and removal work over 10 feet in height. The recommended change to Chapter 27 would remove the Arborist License requirement for pesticide application to trees, but retain the license requirement for tree pruning and removal work. This change will remove the conflict with the state Pesticide Applicators Act. January 17, 2012 -2- ITEM 11 Section 27-62 of the City Code specifies that violation of several sections of Chapter 27 will be handled as a civil infraction. Violations of the remaining provisions are misdemeanor offenses. After reviewing Chapter 27, Forestry staff has concluded that most violations of Chapter 27 could be properly handled as civil infractions, with the exception of violations of the provisions related to arborist licenses. Staff also wished to update position titles and department and division names, and it was determined that two such references in Section 27-17 were unnecessary and could simply be eliminated. In addition, two incorrect cross-references to other sections of the City Code are being updated. ENVIRONMENTAL IMPACTS Commercial pesticide applicators will still be regulated even without a local licensing requirement. The Colorado Department of Agriculture requires a license for all commercial pesticide applicators in Colorado. The State has a northern area inspector, based out of Fort Collins, to provide review and enforcement. The Forestry Department has depended on the State office to investigate complaints and issues about commercial pesticide application to trees in Fort Collins. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. ORDINANCE NO. 005, 2012 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 27 OF THE CODE OF THE CITY OF FORT COLLINS TO MODIFY THE REQUIREMENTS FOR ARBORIST LICENSES, DESIGNATE ADDITIONAL VIOLATIONS OF CHAPTER 27 AS CIVIL INFRACTIONS, AND MAKE UPDATES WHEREAS, Section 27-34 of the City Code requires businesses to have a City arborist license if they wish to do work within the City that involves applying pesticides to trees, or pruning or removing trees, for commercial gain or profit; and WHEREAS, the Colorado Department of Agriculture (CDA) regulates commercial pesticide application in Colorado; and WHEREAS, the CDA recently reviewed the City’s Forestry Code provisions and regulations and concluded that the City’s arborist license requirement for pesticide applicators was in conflict with and preempted by Section 35-10-112.5 of the Colorado Revised Statutes, which declares pesticide regulation to be a matter of statewide concern, and prohibits local governments from adopting or continuing in effect any ordinance, rule, resolution, charter provision or statutes regarding the use of any pesticide by pesticide applicators regulated under state law; and WHEREAS, the City’s licensing requirements predate the state statutes cited by the CDA, and City staff was not previously aware of the apparent conflict; and WHEREAS, in order to resolve any conflict between the City Code provisions on arborist licensing and the state laws on pesticide regulation, City Forestry staff is recommending that Section 27-34 of the City Code be amended to remove the licensing requirement for commercial pesticide application; and WHEREAS, on December 19, 2006, the City Council adopted Ordinance No. 198, 2006, which decriminalized certain Code provisions, including several provisions of Chapter 27 related to vegetation, and designated them as civil infractions in order to encourage compliance with Code requirements pertaining to property nuisances; and WHEREAS, on further review of Chapter 27, Forestry staff has determined that, in the interests of fairness and consistency, all violations of Chapter 27 could properly be handled as civil infractions with the exception of violations related to arborist licenses, and staff is recommending that provisions of the City Code related to enforcement of and penalties for violations of Chapter 27 be amended accordingly; and WHEREAS, staff is also recommending that outdated department names and titles in Chapter 27 be updated or removed and incorrect cross-references be corrected at the same time as the other proposed amendments to Chapter 27. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 27-1 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 27-1. Definitions. As used herein, the term Director refers to the Director of Cultural, Library and Recreation Services Community Services. Section 2. That Section 27-17 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 27-17. Powers and Duties of City Forester. The City Forester shall be the supervisor of the Forestry and Horticulture Division of the Parks and Recreation Department. The City Forester shall be responsible to the Director in carrying out his or her duties. The City Forester shall have the power to establish and enforce rules, regulations, standards and specifications concerning the cutting, trimming, spraying, removing, planting, pruning and other treatment of trees and shrubs upon the right-of-way of any street, alley, sidewalk or other City-owned property in the City, and concerning the performance of such work on public or private property within the City by licensees under this Article. Such rules, regulations, standards and specifications shall be in writing and shall not be effective until approved by the City Manager. Copies of such rules, regulations, standards and specifications shall be available to the public through the office of the City Forester. Section 3. That Section 27-34 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 27-34. Arborist license required for tree services. (a) It shall be unlawful for any business to engage in the following activities within the City for commercial gain or profit without first procuring an arborist license from the City Forester in accordance with the provisions of this Division: (1) Ccutting, trimming, pruning or removing of trees when the cuts necessary for such cutting, trimming, pruning or removal are made at a height of ten (10) feet or greater above the ground;. (2) The application of pesticides to trees of any size. (b) Any licensee under this Article must perform all cutting, trimming, spraying, removing, pruning, removing or other treating of trees on public or private property within the City in accordance with the rules, regulations, standards and -2- specifications established by the City Forester and approved by the City Manager, as provided for in § 27-17 of this Article. Any licensee not complying with this requirement may have its license suspended or revoked pursuant to the provisions of this Article. (c) The provisions of this Section shall not apply to the production and maintenance of trees in a nursery setting. Section 4. That Section 27-56 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 27-56. Right of entry. In order to accomplish the purposes of this Division, the City Forester, officers as defined in § 19-663 or a contractor hired by the City Forester is are hereby authorized to go upon any public or private property within the City for the purpose of inspecting trees or shrubs. Subject to the notice and hearing requirements of this Division, the City Forester or a contractor hired by the City Forester is also authorized to go upon any public or private property in the City for the purpose of cutting, trimming, pruning and/or removing trees or shrubs that the City Forester has determined present a danger to persons using, or property located upon, the public rights-of-way or other City-owned property within the City, or in order to treat or eliminate a destructive or communicable disease or insect infestation. Section 5. That Section 27-59 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 27-59. Notice of violation; removal authority and procedure lien on property. (a) The City Forester or officers as defined in § 19-63 may is authorized and directed to give notice to any property owner or occupant who is in violation of any provision of this Article. In addition, officers as defined in § 19-66 are authorized and directed to give notice to any owner or occupant who is in violation of §§ 27-18, 27-57(a)(1—4) or 27-58. Such notice shall be personally served upon such person or, if not personally served, conspicuously posted upon the property and also deposited in the United States mail, addressed to the owner of record at the address on the assessment roll of the County Assessor or at such other, more recent address as may be available to the City. With respect to occupants, notice may be mailed to the address of the property so occupied. . . . Section 6. That Section 27-62 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 27-62. Violations and Penalties. -3- Any person who violates § 27-18, Paragraphs 27-18(a)(1—4) or § 27-58 any provision of this Article except §§ 27-34 to 27-40 regarding arborist licensing commits a civil infraction and is subject to the penalty provisions of Subsection 1- 15(f). Introduced, considered favorably on first reading, and ordered published this 17th day of January, A.D. 2012, and to be presented for final passage on the 7th day of February, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 7th day of February, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk -4- DATE: January 17, 2012 STAFF: Bruce Hendee, Ken Mannon Helen Matson AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 16 SUBJECT Second Reading of Ordinance No. 183, 2011, Authorizing the Lease of City-owned Property at 430 North College Avenue and 100 Willow Street to the Colorado State University Research Foundation. EXECUTIVE SUMMARY Colorado State University (CSU) has leased the City-owned property known as the Old Power Plant at 430 North College Avenue for the last 17 years. CSU has used this site as the Engines and Energy Conversion Lab (EECL). This program has grown over the years and it is Colorado State University Research Foundation’s (CSURF) desire to construct a new building that will be used to house additional labs, office and incubator companies sharing the vision of the EECL. A new lease agreement is necessary to accommodate these changes. This Ordinance, authorizing a new lease, was unanimously adopted on First Reading on December 20, 2011 (6-0, Troxell withdrew due to a conflict of interest). Second Reading of Ordinance No. 183, 2011, was postponed from January 3 to January 17, 2012, since Council expressed concern with portions of the Lease on First Reading. Staff has met with CSURF to discuss the reduction of items in the River Buffer Zone and the proposed improvements for the access drive to the east door of the existing building. New language for the Lease Agreement is being drafted and CSURF is working on new exhibits showing suggested changes to the access drive. This information will be provided to Council by January 17. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - December 20, 2011 (w/o attachments) COPY COPY COPY COPY ATTACHMENT 1 DATE: December 20, 2011 STAFF: Bruce Hendee, Ken Mannon Helen Matson AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 29 SUBJECT First Reading of Ordinance No. 183, 2011, Authorizing the Lease of City-owned Property at 430 North College Avenue and 100 Willow Street to the Colorado State University Research Foundation. EXECUTIVE SUMMARY Colorado State University (CSU) has leased the City-owned property known as the Old Power Plant at 430 North College Avenue for the last 17 years. CSU has used this site as the Engines and Energy Conversion Lab (EECL). This program has grown over the years and it is CSURF’s desire to construct a new building that will be used to house additional labs, office and incubator companies sharing the vision of the EECL. A new lease agreement was necessary to accommodate these changes. The new lease agreement will be with Colorado State University Research Foundation (CSURF) and CSU will relinquish all rights, title and interest in the original Lease Agreement dated February 15, 1994 and the First Amendment to Lease Agreement dated January 13, 2005. BACKGROUND / DISCUSSION History of Site and Current use The City acquired the property located at 430 North College Avenue in 1912. A municipal landfill operated on a portion of the site in the mid-1900s. The City constructed the existing facility as a power plant. This plant was in operation from 1935 until 1972. From 1972 until 1988, it was used as a switching station. The next use was as an art gallery in 1988 and 1989. On February 15, 1994, the City entered into a Lease Agreement with CSU to use the site and the old power plant building for laboratory and research purposes focusing on internal combustion engine. This Lease Agreement had an original term of ten years with automatic renewals for three successive five year periods, or a total 25 years. The rental rate during these years was $1/year. That Lease Agreement was modified in the summer of 2004. This modification was to add another five year extension period to the lease, making the lease a total of 30 years. Also included in this modification, the City agreed to increase the termination notice period to five years. The City agreed to these changes to assist CSU with fundraising activities for EECL’s programs and the potential of a new building. New Lease Terms and Definitions Due to CSU’s plan to add the new building on the City-owned property, staffs from CSU, CSURF and the City started negotiations for a new lease agreement. An agreement has been reached on the terms of the lease (Attachment 2). A summary of the lease definitions and lease terms is provided below: Lease Definitions City Property – the Power Plant property currently leased to CSU. Main Building – the existing Power Plant building. Main Parcel – the Power Plant property that would be leased to CSURF in the new lease. New Building – the building CSURF plans to build on the Main Parcel. Parking Parcel – a parcel of City property south of the Main Parcel that CSURF would lease to build a parking lot on. Leased Premises – the Main Parcel and Parking Parcel. CSURF Affiliates – CSU or any person, persons or entity working for CSURF or CSU or their subsidiary departments, programs or organizations. Lease Terms Draft Lease – 1-17-12 1 LEASE AGREEMENT THIS LEASE AGREEMENT (the “Lease”), made and entered into this ____ day of ______________, 2011 (the “Effective Date”), by and between THE CITY OF FORT COLLINS, COLORADO, a Colorado Municipal Corporation (the “City”), THE BOARD OF GOVERNORS OF THE COLORADO STATE UNIVERSITY SYSTEM, formerly known as THE COLORADO STATE BOARD OF AGRICULTURE, acting by and through COLORADO STATE UNIVERSITY (“CSU”), and THE COLORADO STATE UNIVERSITY RESEARCH FOUNDATION, a Colorado Non-Profit Corporation (“CSURF”). WITNESSETH: WHEREAS, the City is the owner of that certain parcel of real estate, together with the improvements located thereon, situated in the County of Larimer, State of Colorado, which is legally described on attached Exhibit “A”, incorporated herein by this reference, with a street address of 430 N. College Avenue, Fort Collins, Colorado (“City Property”); and, WHEREAS, on February 15, 1994, the City and CSU entered into a Lease Agreement for a portion of the City Property, which was modified by the First Amendment to Lease Agreement dated January 13, 2005 (together, the “1994 Lease”); and WHEREAS, CSU has been in continuous possession of the City Property since 1994 and has been using said Property for its Engines and Energy Conversion Laboratory; and WHEREAS, CSU’s desired use of the City Property has changed since the 1994 Lease was executed, and the parties wish to enter into this new Lease in order to permit this change in use and clarify the parties’ rights and responsibilities; and WHEREAS, by this Lease and signature hereon, CSU agrees to relinquish all right, title and interest in and to the Lease Agreement dated February 15, 1994, and the First Amendment to Lease Agreement dated January 13, 2005, referenced above, and the real estate described therein and herein above as Exhibit “A,” in order to allow the City and CSURF to come to a written agreement for the lease of said City Property; and WHEREAS, CSURF intends to construct a new building (the “New Building”) on said City Property and/or other improvements thereto, which improvements are contemplated by the terms and provisions of this Lease and incorporated herein; and WHEREAS, the City desires to lease to CSURF, and CSURF desires to lease from the City, that portion of the City Property consisting of 4.091 acres with a main building (the “Main Building”) 38,509 square feet in size, and a metal outbuilding (the “Metal Outbuilding”) 2,455 square feet in size, and the real estate as generally described on attached Exhibit “B”, which is incorporated herein by this reference (the “Main Parcel”); and WHEREAS, in addition, the City desires to lease to CSURF and CSURF desires to lease Draft Lease – 1-17-12 2 from the City, that certain parcel of real estate, together with the improvements located thereon, situated in the County of Larimer, State of Colorado, which is legally described on attached Exhibit “C”, incorporated herein by this reference (the “Parking Parcel”); and WHEREAS, the Main Parcel and the Parking Parcel are collectively referred to herein as the “Leased Premises”; and WHEREAS, the previous and current use of the City Property has enabled the development of the Engines and Energy Conversion Laboratory, thus benefiting CSU as well as the common good of the citizens of the City. CSU and CSURF agree that the uses contemplated by this Lease are in the best interests of the Engines and Energy Conversion Laboratory, and the parties agree this Lease is mutually beneficial; and WHEREAS, on , City Council approved Ordinance No. , 2011 which authorized the leasing of the Leased Premises. NOW, THEREFORE, in consideration of the mutual covenants, promises and agreements herein contained and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereby agree as follows: ARTICLE I Lease of the Leased Premises 1.1 The City hereby leases, demises and lets unto CSURF, and CSURF hereby hires, rents, and takes from the City the Leased Premises. 1.2 This Lease supersedes and vacates the 1994 Lease between the City and CSU. The 1994 Lease terminates on the first day of the term of this Lease and will be of no further force and effect, except for those terms intended to survive its termination. 1.3 CSU retains all rights to the fixtures, improvements and personal property owned by CSU and currently in the Leased Premises. To the extent CSU wishes to leave such fixtures, improvements and personal property in the Leased Premises, CSU may arrange with CSURF to do so, and the City assumes no responsibility for the same. CSU hereby agrees to relinquish all of its right, title and interest in and to the City Property and the 1994 Lease, and the real estate described herein on Exhibit “A,” by signature hereon. ARTICLE II Term 2.1 The initial term of this Lease is for a period of forty (40) years beginning on the Effective Date (the “Initial Term”). However, should CSURF not have a fully executed contract for construction of the New Building within five (5) years from the Effective Date, or fail to complete construction obtain a certificate of occupancy or temporary certificate of occupancy forof the New Building within eight (8) years from the Effective Date, then the Initial Term shall be ten (10) years, unless otherwise agreed by the parties. This Lease may be extended under Draft Lease – 1-17-12 3 Article III below. 2.2 This Lease will not be recorded; but, at the request of either party, the City and CSURF will execute a Memorandum of Lease for recording, containing the names of the parties, the legal description of the Leased Premises, the term of the Lease and such other information as the parties mutually agree. ARTICLE III Lease Extension Option 3.1 Provided CSURF has constructed the New Building and is not in default in the keeping and performing of any of the conditions and covenants of this Lease, then the following lease extension provisions shall apply: 3.1.1 CSURF shall have the option and privilege of extending the term hereof for (i) an additional twenty (20) year extended term (the "First Extended Term"), commencing at midnight on the day on which the Initial Term of this Lease terminates and (ii) an additional twenty (20) year extended term (the "Second Extended Term, and together with the First Extended Term, the "Extended Term"), commencing at midnight on the day on which the First Extended Term of this Lease terminates. 3.1.2 CSURF shall provide the City with notice of CSURF's intent to extend or terminate the term of this Lease no less than two (2) years prior to the end of the Initial Term or the First Extended Term, as applicable. 3.2 If CSURF is not in default in the keeping and performing of any of the conditions and covenants of this Lease, but the Initial Term has been shortened to ten (10) years in accordance with section 2.1 above, then the following lease extension provisions shall apply: 3.2.1 CSURF shall have the option and privilege, in its sole discretion, of extending the term hereof for an additional five (5) year extended term (the "First Extended Term"), commencing at midnight on the day on which the Initial Term of this Lease terminates. At the end of the First Extended Term CSURF shall have the option and privilege, with the City’s consent in the City’s sole discretion, of extending the term hereof for (i) an additional ten (10) year extended term (the "Second Extended Term"), commencing at midnight on the day on which the First Extended Term of this Lease terminates and (ii) an additional ten (10) year extended term (the "Third Extended Term, and together with the First and Second Extended Terms, the "Extended Term"), commencing at midnight on the day on which the Second Extended Term of this Lease terminates. 3.2.2 CSURF shall provide the City with notice of CSURF's intent to extend or terminate the term of this Lease no less than two (2) years prior to the end of the Initial Term or each Extended Term, as applicable. 3.2.3 The City will provide CSURF with notice of the City’s intent not to renew the Lease no less than five (5) years prior to the end of the First Extended Term or Second Extended Term as applicable. Draft Lease – 1-17-12 4 3.3 As used herein "Term" shall mean individually, the Initial Term and any Extended Term, and collectively, all of such terms. ARTICLE IV Rent 4.1 The Base Rent for the Initial Term of this Lease is One Thousand Dollars ($1000.00), based on a rent of Twenty-Five Dollars ($25.00) per year. The full amount of the rent is due on the Effective Date. If this Lease is extended pursuant to Section 3.1, the rent for the First Extended Term will be One Thousand Dollars ($1,000.00), and for the Second Extended Term will be One Thousand Dollars ($1,000.00). If the Lease is extended pursuant to Section 3.2, there will be no additional rent due for the First Extended Term, the rent for the Second Extended Term will be Five Hundred Dollars ($500.00) and the rent for the Third Extended Term will be Five Hundred Dollars ($500.00). No portion of the rent is refundable in the event of early termination of this Lease for whatever reason. 4.2 Additional Rent shall be paid by CSURF to the City according to the terms, provisions, conditions and definitions contained in Section 16.8. 4.3 CSURF will make all rent payments to the City at such place as the City may, from time to time, designate in writing. For the present, the City designates Real Estate Services, 300 LaPorte Ave., P.O. Box 580, Fort Collins, CO 80522, as the place for making rental payments. 4.4 The rental amounts set forth in Sections 4.1 and 4.2 above are in addition to CSURF's obligations with respect to the payment of real and personal property taxes (if any), insurance premiums, utilities and maintenance of the Leased Premises and other amounts as shown herein. ARTICLE V Option to Purchase 5.1 Provided CSURF is not in default in the keeping and performing of any of the conditions and covenants of this Lease, CSURF shall have the option to purchase the Leased Premises at a time and on terms to be negotiated by the Parties in good faith, such option being subject to the mutual agreement and satisfaction of the Parties and subject also to such legal limitations or requirements as may exist now or in the future upon the exercise of such option, including but not limited to the consent of the Fort Collins City Council, in its sole discretion. The purchase price of the Leased Premises shall not reflect any increased value that is the result of improvements made during the Term of the Lease by CSURF or its assignee. Draft Lease – 1-17-12 5 ARTICLE VI Use of Leased Premises 6.1. CSURF may use the Leased Premises for construction of the New Building and related improvements on the Main Parcel and parking improvements on the Parking Parcel as generally shown and described on Exhibit “D”, attached and incorporated herein by reference. CSURF must obtain the approval of the City, as owner of the Leased Premises, of the final plans for the New Building and all related improvements prior to commencement of construction. This approval is in addition to any required regulatory approvals including the City’s development review process. 6.2 CSURF, or its authorized tenants, sub-tenants, assignees, or occupants, as herein provided (“CSURF’s Tenants”) may use the Main Parcel for: (1) instructional, teaching, and laboratory and research purposes focused upon developing innovative and alternate energy solutions, including but not limited to equipment, fuels, software, operational techniques and processes, developing and testing entrepreneurial models, and similar purposes; (2) related office and administrative purposes; and (3) ancillary uses related thereto, such as outreach and extension activities, experimentation or demonstration areas or activities, seminars and instructional uses, provided that such uses fit within the limitations of this Article. CSURF or CSURF’s Tenants may use the Parking Parcel for the construction, maintenance and use of above-ground parking facilities and related improvements. CSURF or CSURF’s Tenants shall make use of the Leased Premises only in such manner as shall be for the common benefit and good of the citizens of the City. It is understood and agreed that CSURF and CSURF’s Tenants shall use the Leased Premises for the purposes that benefit the human condition and achieve global impact, which may include commercial and non-commercial endeavors, thereby benefiting the citizens of the City, as well as the State of Colorado, which benefit has been determined by the City Council to serve a valuable public purpose which transcends the purely educational and academic purposes normally associated with an institution of higher education. The parties acknowledge and agree that the permitted uses described herein are for the common benefit and good of the citizens of the City. 6.3 The parties understand and agree that the Charter of the City prohibits the City from making any appropriation for any “educational” purpose to any organization not under the absolute control of the City, but the parties further understand that the purpose to be served by this Lease is the valuable public purpose of developing and utilizing energy solutions and that at any time that CSURF and CSURF’s Tenants should cease to serve those purposes then this Lease shall summarily terminate and be at an end; provided however, that CSURF shall be given a reasonable opportunity to submit a different or additional public purpose to the City for approval by the Fort Collins City Council in its sole discretion. 6.4 CSURF or CSURF’s Tenants must not: (a) put the Leased Premises to any use other than the uses described in this Article without the prior written approval of the City; (b) use the Leased Premises in any manner that violates any applicable law, rule, ordinance or regulation; (c) permit any nuisance or disorderly conduct upon the Leased Premises, or (d) permit any environmental condition in violation of applicable legal standards or any environmental condition requiring removal or remediation to develop or remain on the Leased Draft Lease – 1-17-12 6 Premises. CSURF and the City agree to mutually and cooperatively resolve any issues or problems that may arise out of the use of the Leased Premises by CSURF or CSURF’s Tenants. 6.5 The Leased Premises includes the “Fountain”, the “Grotto” and the “Monument”, as depicted on Exhibit “B”. The parties’ obligations with respect to these features are described in Section 7.4 below. CSURF may discharge water into the Grotto in compliance with any applicable regulatory requirements until such time as the improvements on the Leased Premises are connected to the public sanitary sewer system. 6.6 The City reserves the right to access and use the “Utility Tunnel” connected to the basement of the Main Building, as depicted on Exhibit “E”, attached and incorporated herein by reference, including the right to install, operate, maintain, repair and replace existing or additional facilities within the Utility Tunnel. Entry to the Utility Tunnel is prohibited except as specifically authorized by the City in writing. The City shall give notice to CSURF of its intent to enter the Utility Tunnel in accordance with the provision of Article XXXI, below. The above notwithstanding, CSURF may use a portion of the Utility Tunnel for cooling of the New Building, subject to the following: (a) CSURF must obtain advance written approval from the City Utility of the proposed design and construction of any facilities CSURF proposes to place in the Utility Tunnel, and any concerns the City Utility has about the proposed design must be resolved to the City’s satisfaction prior to any work in the Utility Tunnel; (b) CSURF may only use the north 400 feet of the Utility Tunnel; (c) CSURF must construct a wall and a door at the south end of this 400 foot section, the design for which must be approved in advance by the City Utility; (d) the installed door must remain locked at all times, with the City’s Utility having the only key; (e) any modifications other than the wall shall not restrict walking access throughout the length of the Utility Tunnel or restrict access via the existing entry door; (f) any changes CSURF makes to the Utility Tunnel must preserve the existing lighting system or provide an equivalent or better system with wall switches at both ends; (g) anyone entering the Utility Tunnel must comply with all OSHA requirements, including but not limited to confined space requirements; and (h) until the above wall has been constructed, CSURF must contact the City Utility to obtain access to the Utility Tunnel and must be accompanied by City Utility staff. 6.7 The City has constructed a hiking/bike trail approximately fifty (50) feet in width along the south bank of the Cache La Poudre River (the “Trail”). The Trail right-of-way and related improvements are not part of the Leased Premises, and the City will maintain control over and responsibility for them. The City reserves the right to remove, replace, relocate or improve the Trail at any time, provided such actions do not unreasonably interfere with CSURF’s rights under this Lease. CSURF shall have no responsibility for the maintenance of the Trail or of the Trail right-of-way. CSURF and CSURF’s Tenants are entitled to use the Trail and related improvements in the same manner as the general public. 6.8 The City reserves a right of access to and exclusive use of the room in the basement of the Main Building that houses a fiber optic node. The City will lock and mark the door to this room to indicate its location. The City shall give notice to CSURF of its intent to Draft Lease – 1-17-12 7 access this room in accordance with the provisions of Article XXXI, below. ARTICLE VII Maintenance and Repair 7.1. With the exception of the areas reserved in 6.6, 6.7 and 6.8 above, CSURF will, during the term of this Lease and at its sole expense, keep and maintain the Leased Premises, including the grounds, Fountain, Monument, Grotto and parking lots, in a clean, orderly and safe condition, free of litter, debris, and any unsightly or dangerous condition as required by ordinances, resolutions, statutes and health, sanitary and police regulations. CSURF is responsible for snow removal from sidewalks and parking areas within the Leased Premises. CSURF will also, at its sole expense, maintain the Leased Premises including without limitation, the exterior walls, foundation and roof of any building, plumbing, electrical, and the heating and air conditioning system located on the Leased Premises and replace any and all plate, window and other glass (structural or otherwise) in, on or about the Leased Premises, which may be broken or destroyed, with glass of the same or similar quality. CSURF acknowledges that any maintenance to these Leased Premises must be done in a manner that protects and retains the historic significance of the City Property. 7.2 All repairs or replacements to the Leased Premises required of CSURF must be made promptly and when necessary. 7.2.1 All replacements must be of a quality and class at least equal to the original work. 7.2.2 Any and all repairs, replacements, modifications, improvements, additions or other construction on or within the Leased Premises shall be performed by licensed contractors or equivalently licensed technicians on the staff of CSU, under contract or agreement with CSURF. 7.2.3 None of CSURF’s Tenants, as described herein, shall be authorized to perform any of the maintenance and repair actions or activities described in this Article without the prior written approval of CSURF. 7.3 The City will, during the term of this Lease and at its sole expense, keep and maintain the areas reserved in 6.6, 6.7 and 6.8 above, in the same condition and under the same restrictions as provided for CSURF in 7.1 and 7.2 above. 7.4 CSURF is responsible for all maintenance and repair of the Fountain and the Grotto. As part of the construction of the New Building, CSURF agrees to restore the Fountain in accordance with the Landmark Preservation requirements of the City Code. The City is responsible for any restoration or repair of the Monument and Grotto beyond routine maintenance as described in 7.1 above. 7.5 CSURF must neither permit nor suffer any disorderly nuisance or noise whatsoever about the Leased Premises in violation of any applicable City ordinance or regulation. CSURF may neither hold nor attempt to hold the City liable for any injury or Draft Lease – 1-17-12 8 damage, either proximate or remote, occasioned through or caused by defective electrical wiring or the breaking or stoppage of plumbing or sewage upon the Leased Premises, whether said breakage or stoppage results from freezing or otherwise. CSURF must not permit or suffer the Leased Premises or the walls of the Main Building to be endangered by overloading, nor permit the Leased Premises to be used for any purpose which would render the insurance thereon void or insurance risks that would cause the need for insurance coverage higher than that specifically provided for in Section 13.1 herein, without the prior written consent of the City, which consent may be conditioned upon, without limitation, CSURF obtaining additional specific insurance coverage for such more hazardous risks. 7.6 On default of CSURF to make any repairs or replacements required to be made by it under this Lease, the City may, but is not required to, make such repairs or replacements for the City’s account and the expense thereof shall constitute and be collectible by the City as additional rent owed by CSURF due at the beginning of the next calendar year. ARTICLE VIII Alterations and Improvements 8.1 All alterations, additions, improvements or changes to the Leased Premises by CSURF subsequent to the commencement of the Lease term are subject to the written approval of the City, as owner of the City Property, and must be done in a good and workmanlike manner without impairing the structural soundness of the Main Building, the Trail, or the Utility Tunnel. The parties acknowledge and agree that temporary changes within the Leased Premises for the purpose of designing and implementing research projects and experiments are not deemed alterations or improvements, and any such experiments and projects should be removed upon their completion or termination or the Lease, and any resulting damage to the Leased Premises repaired. 8.1.1 Any and all repairs, replacements, modifications, improvements, additions or other construction on or within the Leased Premises shall be performed by licensed contractors or equivalently licensed technicians on the staff of CSU, under contract or agreement with CSURF. 8.1.2 None of CSURF’s Tenants, as described herein, shall be authorized to perform any of the actions or activities described in this Article, or to change the Leased Premises in any way, without the prior written approval of CSURF and, except for the temporary changes described in 8.1, the prior written approval of the City, as owner of the City Property. 8.1.3 All alterations, additions, improvements or changes, and any and all new improvements, including any New Building or buildings, whether made by CSURF or CSURF’s Tenants on the Leased Premises, are subject to the prior written approval of the City as owner of the City Property. In addition, such new improvements must be in compliance with the building and zoning laws of the City of Fort Collins applicable to a non-government-owned development, must comply fully with any such City codes, rules, regulations, and governing processes and with all other applicable laws, ordinances, orders, rules, regulations and requirements of all federal, state or municipal governments and with appropriate approvals of the various departments, commissions, boards and officers thereof as would be applicable to a non- Draft Lease – 1-17-12 9 government-owned development, and must comply with the “Reasonable Steps” outlined in Exhibit “F”, attached hereto and incorporated herein by this reference. CSURF shall procure certificates of occupancy, if required by law. 8.1.4 Such alterations, additions and improvements must not be commenced until any contractor or subcontractor engaged for such purpose delivers to CSURF (with a copy to the City) a certificate evidencing that proper workmen's compensation insurance is in full force and effect, covering any persons performing such work, and that the same may not be canceled without at least ten (10) days prior written notice to the City and CSURF. 8.1.5 Furthermore, such alterations, additions or improvements must not be commenced until CSURF has procured and paid for all required City and other governmental permits and authorizations of the various municipal departments and governmental subdivisions having jurisdiction over the matter. 8.2 Any alterations or modifications proposed by CSURF involving the façade of the Main Building, the “Fountain”, the “Grotto” or the “Monument”, must first be approved by the City’s Landmark Preservation Commission in accordance with the ordinances, rules and regulations of the City. 8.3 CSURF reserves the right hereby to hypothecate, pledge or use as security the leasehold interest created by this Lease including, CSURF’s leasehold interest in any improvement located on the Leased Premises, or CSURF’s interest in any improvement owned by CSURF located or to be constructed on the Leased Premises, for any loan to CSURF for the use on or benefit to the Leased Premises. 8.4 The City reserves the right, from time to time (without invalidating or modifying this Lease), to make alterations, changes and/or additions to the “Fountain,” the “Grotto,” or the “Monument,” located upon the Leased Premises, provided said modifications do not interfere with CSURF’s or CSURF’s Tenants’ use of the Leased Premises. The City shall give CSURF appropriate notice in advance, in writing, of its intentions, estimate of work state date and estimated time of completion for such work. 8.5 CSURF acknowledges that the Main Parcel is subject to the 200 foot Poudre River Buffer, and any development on the Main Parcel must be done in compliance with the City Land Use Code, including but not limited to the requirements of Section 3.4.1(E) regarding buffer zones, as now in effect or hereafter amended. 8.5.1 The parties acknowledges that certain improvements existing on the Leased Premises as of the date of this Lease may not be in compliance with all current City Land Use Code requirements. 8.5.2 CSURF agrees to relocate or remove the improvements comprising at least fifty percent (50 %) of the existing Utility Court area, as generally depicted in Exhibit “G”, attached and incorporated herein by reference, upon or prior to final completion of the New Building. Should CSURF decide not to construct the New Building, then CSURF agrees to relocate or remove the improvements comprising at least twenty percent (20%) of the existing Utility Court area within five (5) years from the Effective Date. Should CSURF wish to move Draft Lease – 1-17-12 10 any portion of such improvements to another location within the 200 foot Poudre River Buffer, CSURF must obtain in advance the written approval of the City as Landlord upon review of CSURF’s plans for such relocation, as well as any necessary approvals through the City’s development review processes. 8.5.3 On or before June 30, 2012, CSURF will remove entirely from the Leased Premises the improvements identified on Exhibit G as the “Solix Facilities”, including any underlying asphalt or concrete, and restore the ground cover using a native grass seed mix approved by the City’s Parks Department. CSURF is solely responsible for all costs of removing the Solix Facilities and restoring the site. 8.5.4 On or before December 31, 2012, the City will remove the improvements identified on Exhibit G as the "City-owned Outbuilding" (the “Outbuilding”), at the City's sole cost; however, should CSURF proceed with construction of the New Building, CSURF will compensate the City for the costs of removing the Outbuilding upon commencement of such construction and upon receipt of an invoice from the City documenting the City's costs to remove the Outbuilding. The City owned outbuilding and other improvements installed by CSU as indicated on Exhibit G will be removed by CSURF prior to completion of the New Building; provided however, in the event that CSURF does not go forward with construction of the New Building, it will not be obligated to remove the outbuildings and other improvements as described above. 8.6 No changes or alterations may be undertaken by CSURF unless there is conspicuously placed on the Leased Premises the following notice: NOTICE Notice is hereby given pursuant to section 38-22-105(2), C.R.S., that the owners of the within premises have not ordered any construction or reconstruction of the improvements on these premises; and the owners' interest in the premises shall not be subject to any lien on account of any construction, alteration, removal, addition, repair or other improvements of the premises. 8.7 Where the City’s approval, as owner of City Property, is required under this Article VIII, a response shall be provided to CSURF within a reasonable period of time following receipt from CSURF of all necessary information related to the request for approval. This time period shall not exceed thirty (30) days unless the City determines that approval by the City Council is necessary or appropriate, in which case the City shall have sixty (60) days to provide its approval. ARTICLE IX Expiration or Termination of Lease 9.1 At the expiration of this Lease, whether at the end of the Initial Term or at the end of one or both Extended Terms as applicable, or upon termination of the Lease because of a default by CSURF pursuant to Article XXI below, all improvements made on or to the Leased Draft Lease – 1-17-12 11 Premises by or on behalf of CSURF shall become the property of the City, free and clear of all mortgages, deeds of trust, and similar security interests encumbering the leasehold interest of CSURF or such improvements. At such time, CSURF agrees to execute any reasonable documentation evidencing such transfer as may be reasonably required by the City and deliver said documents to the City. The cost of any recordation of such documents shall be at the sole cost and expense of the City. 9.1.1 The Main Building is and shall remain the sole property of the City and no document of transfer from CSURF to the City shall be required hereunder. 9.1.2 All trade fixtures and equipment installed by CSURF or CSURF’s Tenants shall be removed from the Leased Premises prior to the transfer of title to the City as herein provided, or any or all of such items remaining at the expiration herein defined shall become the property of the City and CSURF or CSURF’s Tenants shall execute such documents of transfer as required by law. 9.2 In the event of a termination of this Lease by CSURF because of a default by the City under any provision hereof prior to the end of eighty (80) years from and after the Effective Date of this Lease, then and in that event, the City shall compensate CSURF for the value of the New Building and additions thereto as follows: During the first twenty (20) years of the Initial Term, the purchase price shall be the fair market value of the New Building and additions thereto as of the date of termination, as established by an MAI appraisal. For the remainder of the Initial Term and the Extended Term, the City shall compensate CSURF for the New Building and any additions thereto at the appraised fair market value of the same, reduced by the annual fair market rent of a comparable ground lease for premises similar to the area upon which the improvements were constructed (as determined by the appraiser), less the actual rent paid by CSURF to the City hereunder, for each complete year of the Lease that has elapsed from the Effective Date until the date of default by the City. 9.2.1 All trade fixtures and equipment installed by CSURF or CSURF’s Tenants shall be removed from the Leased Premises prior to the transfer of title to the City as herein provided, or any or all of such items remaining at the expiration herein defined shall become the property of the City and CSURF or CSURF’s Tenants shall execute such documents of transfer as required by law. ARTICLE X Covenant of Title and Quiet Enjoyment 10.1 The City covenants that it is well seized of and has good title to lease the Leased Premises and does warrant and will defend the title thereto. ARTICLE XI Taxes, Real and Personal 11.1 During the term of this Lease, CSURF is responsible for payment of the real property taxes and assessments, if any, that may be lawfully imposed upon the Leased Premises. Draft Lease – 1-17-12 12 11.2 CSURF will pay or ensure the payment of all sales and use taxes, if any, that may be imposed as the result of the business conducted on the Leased Premises and all personal property taxes assessed against personal property situated thereon during the term hereof. 11.3 In default of the payment of any such taxes by CSURF, the City may pay the same (but shall be under no obligation to do so), and CSURF will reimburse the City for the amount so paid no later than the fifth business day of the next calendar year. However, it is understood that by paying any such amount, the City does not waive any of its rights hereunder related to such default. 11.4 CSURF is not required to pay any tax, assessment, tax lien or other imposition or charge upon or against the Leased Premises or any part thereof or the improvements at any time situated thereon so long as CSURF, in good faith and with due diligence, contests the same or the validity thereof by appropriate legal proceedings, which have the effect of preventing the collection of the tax, assessment, tax lien or other imposition or charge so contested, provided that, pending any such legal proceedings, CSURF gives the City such reasonable security as may be demanded by the City to insure payment of the amount of the tax, assessment, tax lien or other imposition or charge and all interest and penalties thereon. ARTICLE XII Right of First Refusal 12.1 If at any time during the Initial Term or any Extended Term of this Lease, the City shall decide to accept an offer (the “Offer”) from any potential purchaser to purchase the City’s fee interest in the Leased Premises (the “Transferred Rights”), the City shall provide CSURF with written notice of and a copy of such Offer. CSURF shall have the right to purchase the Transferred Rights on the same terms and conditions contained in the Offer by providing notice of such election to the City within thirty (30) days from the date that the City received said Offer (the “Election Period”). Upon such election by the CSURF, the City and the CSURF agree to act in good faith to consummate an agreement for the Transferred Rights incorporating the express terms of such Offer and other customary terms and provisions for similar transactions of similar commercial property located in the same geographic area as the Leased Premises (the “Transfer Agreement”); provided, that in the event (a) CSURF shall fail and/or refuse to deliver to the City written notice of the CSURF’s election to accept the Transferred Rights within the Election Period, or (b) CSURF and the City do not execute and deliver a Transfer Agreement in form and content acceptable to both parties within thirty (30) days from the date of receipt by the City of the CSURF’s election to accept the Transferred Rights, the City shall be free to transfer the Transferred Rights to the Offeror pursuant to the terms of the Offer (but not on materially different financial terms), subject to this Lease. 12.1.1 CSURF’s decision not to accept a transfer of the Transferred Rights on the same terms and conditions of any Offer shall not waive the City’s right to accept a transfer of the Transferred Rights on the same terms and conditions of any other Offers. ARTICLE XIII Draft Lease – 1-17-12 13 Insurance 13.1 CSURF and CSURF’s Tenants will, during the term of this Lease, procure, pay for and keep in full force and effect a policy of commercial general liability insurance and casualty insurance covering the improvements and the Leased Premises insuring CSURF in an amount not less than One Million Dollars ($1,000,000) covering bodily injury, including death to persons, personal injury and property damage liability arising out of a single occurrence. Such coverage shall include, without limitation, legal liability of the insureds for property damage, bodily injuries and deaths of persons in connection with the operation, maintenance or use of the Leased Premises (including acts or omissions of CSURF). The amount of casualty insurance must be sufficient to cover all improvements made to the Leased Premises by CSURF and CSURF’s Tenants, including the New Building. Upon renewal of the Lease, the types and amounts of required insurance may be reviewed by the parties and adjusted, if necessary, to meet current industry standards. 13.2 All policies of insurance carried by CSURF or CSURF’s Tenants with regards to the Leased Premises, including any policies of environmental insurance, must name as insured CSURF or CSURF’s Tenant, as appropriate, and name the City as an additional insured. The policy or policies must contain a provision that the policy or policies cannot be canceled or materially altered either by the insureds or the insurance company until thirty (30) days prior written notice thereof is given to the insureds and the City. Upon issuance or renewal of any such insurance policy, the insureds must furnish a certificate of insurance showing evidence of coverage that names the City of Fort Collins as additional insured. 13.3 Any insurance policy purchased by CSURF or CSURF’s Tenants must be written by an insurance carrier with a current rating by Best's Insurance Reports of "A" (excellent) or better and a financial rating of "X" or better or such equivalent classification as may hereinafter be required customarily for properties similarly situated, and must be authorized by law to do business in the State of Colorado. 13.4 Notwithstanding anything to the contrary contained herein, CSURF's obligation to carry insurance as provided herein may be brought within the coverage of a “blanket” policy or policies of insurance carried and maintained by CSURF, so long as such policy or policies segregate the amount of coverage applicable to the Leased Premises. In the event that CSURF fails to procure, maintain and/or pay for at the times and for the duration specified herein any insurance required by this Lease, or fail to carry insurance required by law or governmental regulation, the City may (but without obligation to do so) at any time or from time to time and without notice, procure such insurance and pay the premiums therefore. In such event, CSURF must repay the City all sums so paid by the City, together with interest thereon and any costs or expenses incurred by the City in connection therewith, within ten (10) days following the City’s written demand to CSURF for such payment. 13.5 Should CSU become a CSURF Tenant, CSU may comply with any provision of this Lease regarding Insurance under this Article in any lawful manner applicable to such institutions of the State of Colorado, meeting the intents and purposes stated within this Article. Draft Lease – 1-17-12 14 ARTICLE XIV Utilities 14.1 CSURF agrees to pay all charges for electricity, sewer, gas, light, power, trash removal, janitorial services, telephone and other communication services used, rendered or supplied upon, to, or in the Leased Premises. To the extent permitted by law, CSURF agrees to indemnify the City against any and all liability or damages on such account. CSURF will pay all such utility charges before the date the same become delinquent. ARTICLE XV Signs 15.1 CSURF may not affix, erect or maintain on the Leased Premises any permanent sign or advertisement, not already on the Leased Premises on the date of the signing of this Agreement, without first obtaining the City’s approval as to the sign or advertisement to be erected on the Leased Premises. Any such sign must comply with all applicable laws and City of Fort Collins regulations. The cost of erection and maintenance of such sign or advertisement is the responsibility of CSURF. ARTICLE XVI Subletting and Assignment 16.1 Except as provided in Section 16.2 below, CSURF may not sublease or otherwise allow occupation of all or any part of the Leased Premises, or assign this Lease, any interest or any part thereof, or any right or privilege appurtenant to the Lease or the Leased Premises without the prior written consent of the City, such consent not to be unreasonably withheld. If the City does not approve or disapprove the proposed sublease, assignment or occupation in writing within fifteen (15) business days of receipt, the City’s approval is deemed given. A consent to one assignment, sublease or occupation shall not be construed as a consent to any subsequent assignment, sublease or occupation. Unless such written consent thereto has been obtained, any assignment or transfer or attempted assignment or transfer of this Lease or any interest therein, or sublease or occupancy of all or any part of the Leased Premises, either by the voluntary or involuntary act of CSURF, may, at the option of the City, terminate this Lease; and any such purported assignment, transfer, sublease or occupancy without such consent shall be null and void. Such consent does not relieve CSURF from any obligation under this Lease unless the City expressly agrees in writing to relieve CSURF from such obligation. 16.2 CSURF may assign the Lease to CSU, or sublease or otherwise allow occupation of all or any part of the Leased Premises to CSU or any person, persons or entity working for CSURF or CSU or their subsidiary departments, programs or organizations (“CSURF Affiliates”) for any use consistent with Article VI, which has been approved by CSURF in writing, without the consent of, but with prior notice to, the City. Assignment of the Lease to a CSURF Affiliate other than CSU requires prior written notice to and the consent of the City, which consent will not be unreasonably withheld. Draft Lease – 1-17-12 15 16.2.1 Written notice to the City of CSURF’s intention to sublease, or allow occupancy of all or any part of the Leased Premises by CSURF Affiliates for the use and purposes herein required, shall be clearly stated on the form shown in Exhibit “H” attached hereto and incorporated herein by this reference, and sent to the City. CSURF’s approved signature on any form sent to the City under this provision indicates CSURF’s approval of the stated tenant, subtenant, assignee or occupier. 16.2.2 The City shall acknowledge CSURF’s intention stated on the form referenced above, by signature thereon by an authorized representative of the City, within fifteen (15) business days from and after the date said written notice is mailed to the City by U.S. Mail, postage pre-paid, certified mail, with return receipt requested. If such notice is not signed by the City’s representative or not received by CSURF within such fifteen (15) business day period, then and in that event the City’s acknowledgment is deemed given and CSURF shall thereafter be authorized hereunder to carry out the intention to lease, sublease, assign or occupy the Leased Premises as stated in said written notice. 16.3 Notwithstanding any other provision of this Lease, CSURF agrees hereby to restrict the total number of square feet of the Leased Premises, which includes the Main Building and any New Building or buildings, to be used, subleased, assigned or occupied by any tenant, subtenant, assignee or occupier that is not a CSURF Affiliate to not more than eighty per cent (80%) of the aggregate useable square feet of the Leased Premises. 16.4 Each subtenant, assignee or occupant that is not a CSURF Affiliate must enter into a written agreement with CSURF, in a form acceptable to the City, which incorporates the applicable terms of this Lease, and in which such subtenant, sub-lessee, or occupant agrees to comply with and be bound by the applicable terms of this Lease. CSURF must provide a copy of all such subleases to the City. CSURF must require any such assignee or subtenant that is not a governmental entity to agree in writing to indemnify and hold the City harmless from and against all claims by or on behalf of any person, firm, corporation or other entity arising from such assignee’s or subtenant’s use or occupation of the Leased Premises, any condition caused by such assignee or subtenant on the Leased Premises, or from any action performed by such assignee or subtenant or its agents, employees, invitees or contractors under this Lease. CSURF must further require any assignee or subtenant that is not a governmental entity to procure, pay for and keep in full force and effect the insurance coverage required in Article XIII, above, naming the City as an additional insured. 16.5 The provisions of Section 16.4 notwithstanding, in the event that CSURF subleases or assigns this Lease to a governmental entity other than CSU, the defense and indemnification requirements of Sections 23.1, 23.2, 24.1, 24.2 and 25.2 shall apply only to the extent permitted by law. In the event that CSURF subleases or assigns this Lease to CSU, CSU’s obligations under the indemnification provisions listed above will be limited to claims arising from the negligent acts or omissions of CSU and its employees, which occurred during the performance of their duties and in the scope of their employment, except where such acts are willful and wanton. Such claims shall be further subject to the limitations of the Colorado Governmental Immunity Act. 16.6 Any monies or other consideration received by CSURF from such subleases, assignments or occupancies will be used by CSURF to financially support CSURF’s approved Draft Lease – 1-17-12 16 activities on the Leased Premises as defined in Section 6.2 above. “Financial Support,” as used herein, shall mean the payment by CSURF of all costs and expenses directly associated with the operation or improvements of the Leased Premises, including, but not limited to the following: maintenance and repair costs (Article VII herein); interest payments or amortization of principal and interest in payments for any loans by CSURF for alterations or improvements to the Leased Premises (Article VIII herein); real estate and personal property taxes (Article X herein); insurance (Article XIII herein); utilities (Article XIV herein); or similar costs or expenses associated with the use or improvement of the Leased Premises. “Financial Support” shall also include an annual amount not to exceed the annual budgeted and utilized portion of the CSU budget set aside for the operation and support of the Engine and Energy Conversion Laboratory, which amount, if any, will further provide CSU with the funds and means to expand, improve, or increase the activities of that department and related tenants, subtenants assignees or occupants on the Leased Premises approved by CSURF Lease Agreement. 16.7 All revenue generated under the definitions of this Article and all costs and expenses specifically defined as Financial Support above, shall be shown in an annual report (the “Annual Report”) prepared by CSURF on a fiscal or calendar year basis, as determined by CSURF, and provided to the City’s Operation Services Director and Finance Director for review, within ninety (90) days after the end of CSURF’s fiscal or calendar year. The City shall have thirty (30) days to examine the same after receipt and to submit comments, questions, suggestions and/or requests for further information to CSURF. 16.8 Any monies remaining from subleasing, assignment or occupancies of the Leased Premises after the payment of those costs and expenses defined in Section 16.6. above shall be divided be divided between CSURF and the City, fifty per cent (50%) to CSURF and fifty per cent (50%) to the City, which amount to the City shall be “Additional Rent” to the City under Section 3.2 above provided that the total “Additional Rent” shall not exceed the fair market rental value of the Leased Premises for any applicable year. ARTICLE XVII Mechanic's Liens 17.1 CSURF will pay or cause to be paid promptly all bills and charges for material, labor or otherwise in connection with or arising out of any alterations, additions or changes made to the Leased Premises by CSURF or its agents or subtenants; and CSURF agrees to hold the City free and harmless against all liens and claims of liens for such labor and materials, or either of them, filed against the Leased Premises or any part thereof and from and against any expense and liability in connection therewith. CSURF further agrees to discharge (either by payment or by filing the necessary bond or otherwise) any mechanic's, materialman's or other liens against the Leased Premises arising out of any payment due or alleged to be due for any work, labor, services, materials or supplies claimed to have been furnished at CSURF's request in, on or about the Leased Premises and to indemnify the City against any lien or claim of lien attached to or upon the Leased Premises or any part thereof by reason of any act or omission on CSURF's part. CSURF shall, however, have the right to contest any mechanic's liens or claims filed against the Leased Premises, provided CSURF shall diligently prosecute any such contest and at all times effectively stay or prevent any sale of the Leased Premises under execution or otherwise and pay or otherwise satisfy any final judgment adjudging or enforcing such contested lien and thereafter Draft Lease – 1-17-12 17 procure record satisfaction or release thereof. CSURF also agrees in any such contest, at CSURF's cost and expense, to defend the same on behalf of the City. ARTICLE XVIII Condemnation 18.1 If, during the term of this Lease: (a) the title to the whole or substantially all of the Leased Premises is taken; or (b) if the Leased Premises are deprived of adequate ingress or egress to or from all public streets and highways abutting the Leased Premises, and as the result of the exercise of the power of eminent domain (hereinafter referred to as “proceedings”) CSURF cannot reasonably operate in the remainder of the Leased Premises the businesses being conducted on the Leased Premises at the time of such taking, then this Lease shall terminate as of the date of such taking pursuant to such proceedings. For the purpose of construing the provisions of this Article, “proceedings” include any negotiated settlement of any matter involving a condemnation; and a “taking” is deemed to occur when the governmental authority acquires title to the Leased Premises or possession thereof, or any portion of the Leased Premises, whichever first occurs. 18.2 If, during the term of this Lease, title to less than the whole or title to less than substantially all of the Leased Premises is taken in any such proceedings and CSURF can reasonably operate in the remainder of the Leased Premises the business being conducted on the Leased Premises at the time of such taking, this Lease will not terminate; and the rental thereafter due and payable by CSURF shall not be reduced. 18.3 All damages awarded for any taking described in this Article that affects the Main Building are the property of the City, except to the extent that any amount thereof is specifically attributable to CSURF’s or CSU’s equipment or trade fixtures to the extent that the City is permitted by law to recover any damages it may sustain as the result of such taking, and all damages awarded for any taking described in this Article that affects any other improvement, alteration, addition, or equipment or trade fixture owned by CSURF, CSU or CSURF’s Tenants, shall belong to CSURF, to the extent that CSURF is permitted by law to recover any damages it may sustain as the result of such taking. ARTICLE XIX Total or Partial Destruction 19.1 If, during the term of this Lease, the Main Building or any part thereof is destroyed or so damaged by fire or other casualty so as to become untenantable, then, at the option of CSURF, that portion of this Lease pertaining to the Main Building shall become null and void from the date of such damage or destruction, and CSURF shall immediately remove its personal property from the Main Building and surrender the Main Building and its interest therein to the City, provided, however, that CSURF shall exercise such option to so terminate a portion of this Lease by notice in writing delivered to the City within thirty (30) days after such damage or destruction. In the event CSURF does not elect to terminate this Lease pertaining to the Main Building, this Lease shall continue in full force and effect, subject to subparagraph 19.1.1 below. Draft Lease – 1-17-12 18 19.1.1 If CSURF does not elect to terminate this Lease as stated above, the City shall have the option to terminate that portion of this Lease pertaining to the Main Building or repair the Main Building with all reasonable speed, placing the same in as good a condition as it was at the time just prior to the damage or destruction, and for that purpose may enter upon the Leased Premises. The City shall exercise such option to so terminate a portion of this Lease by notice in writing delivered to CSURF within thirty (30) days after such damage or destruction. 19.1.2 If the Main Building is only slightly damaged by fire or the elements so as to not render the same untenantable and unfit for occupancy, then the City will repair the same with all reasonable speed. No compensation or claim shall be made by or allowed to CSURF by reason of any inconvenience or annoyance arising from the necessity of repairing any portion of the Leased Premises, however the necessity may occur. 19.1.3 Whether the City chooses to terminate the Lease or to repair the Main Building, CSURF shall remove all merchandise, furniture, furnishings, fixtures, equipment and other items of its personal property located within the affected areas within twenty-five (25) days after the request is made by the City, in writing. 19.1.4 If the damage to the Main Building is the result of the possession, use or occupation of the Leased Premises by CSURF, its employees, agents, sub-tenants or assigns, the cost of any repairs contemplated by this section 19.1 will be the responsibility of CSURF. 19.2 If, during the term of this Lease, the Leased Premises, any New Building, or any part of the Leased Premises, except the Main Building, is destroyed or so damaged by fire or other casualty so as to become untenantable, then, at the option of CSURF, the term hereby created shall cease, this Lease shall become null and void from the date of such damage or destruction, and CSURF shall immediately surrender the Leased Premises and its interest therein to the City, provided, however, that CSURF shall exercise such option to so terminate this Lease by notice in writing delivered to the City within thirty (30) days after such damage or destruction, and provided that CSURF shall remove its property, including any damaged improvements not owned by the City, from the Leased Premises, unless otherwise agreed in writing by the City. In the event CSURF does not elect to terminate this Lease, this Lease shall continue in full force and effect; and CSURF will repair the Leased Premises with all reasonable speed, placing the same in as good a condition as it was at the time just prior to the damage or destruction, except that in these circumstances CSURF has no obligation to replace the Metal Outbuilding. Any repairs to or replacement of any portion of the Leased Premises except the Main Building will be at CSURF’s sole expense. If the Leased Premises is only slightly injured by fire or the elements so as to not render the same untenantable and unfit for occupancy, then CSURF will repair the same with all reasonable speed. ARTICLE XX Holding Over 20.1 Any holding over after the expiration of the term of this Lease is prohibited without prior approval by the Fort Collins City Council. Draft Lease – 1-17-12 19 ARTICLE XXI Default of Lessee 21.1 If any one or more of the following events (herein referred to as “an event of default”) happens: (a) CSURF defaults in the due and punctual payment for the rent or any other amounts required to be paid hereunder and such default continues for thirty (30) days after the receipt of written notice from the City; or (b) Either party neglects or fails to perform or observe any of such party’s other covenants or obligations under this Lease, and fails to remedy the same within thirty (30)days after receiving from the non-defaulting party written notice specifying such neglect or failure; or within such period, if any, as may be reasonably required to cure such default if it is of such nature that it cannot be cured within said thirty (30) day period, provided that the defaulting party commences to effect such cure within said thirty (30) days and proceeds with due diligence to complete said cure. Then, and in any one or more such events, the non-defaulting party has the right, at its election and while such event of default continues, to give the defaulting party written notice of the non- defaulting party’s intention to terminate this Lease on the date of such given notice or any later date specified therein; and on such specified date, CSURF's right to possession of the Leased Premises will cease; and this Lease will thereupon be terminated. 21.2 The City reserves the right to make any payments or perform any action required hereunder by CSURF (but is not required to do so); and all amounts expended by the City, together with interest at the rate of six percent (6%) per annum, will be due and payable by CSURF thirty (30) days after receiving notice from the City of the amount due. ARTICLE XXII Interest and Late Charges (Intentionally Omitted) ARTICLE XXIII Attorneys' Fees 23.1 CSURF agrees to pay and indemnify the City against all legal costs and charges, including attorneys’ fees, lawfully and reasonably incurred in obtaining possession of the Leased Premises after default of CSURF, or incurred after CSURF surrenders possession upon the expiration or sooner termination of this Lease, or incurred in enforcing any covenant of CSURF herein contained or any right granted to the City. 23.2 In the event of any arbitration or litigation relating to this Lease, the arbitrator or court shall award to the prevailing party all reasonable costs and expenses, including attorney Draft Lease – 1-17-12 20 and legal fees. ARTICLE XXIV Lessee to Save City Harmless 24.1 CSURF will indemnify, release, and hold the City harmless from all claims, demands, judgments, costs, and expenses, including attorneys' fees, arising out of any accident or occurrence causing injury to any person or property whomsoever or whatsoever due directly or indirectly to the condition of the Leased Premises or the use or neglect of the Leased Premises by CSURF, its agents, employees, sub-lessees and business invitees or any person or persons (and their agents, employees, and business invitees) holding under the Lessee, unless such accident or occurrence results from any tortious misconduct or negligent act or omission on the part of the City, its agents and employees. 24.2 CSURF will further indemnify, release and hold the City harmless from any damages and all penalties arising out of any failure of CSURF to comply with all of the requirements and provisions of this Lease Agreement. CSURF covenants that it will keep and save the City and the City’s interest in and to the Leased Premises forever harmless from any penalty, damage or charge imposed by any violation of any laws, whether occasioned by an act of neglect of CSURF or by another or others in the Leased Premises holding under or through CSURF. ARTICLE XXV Hazardous Material 25.1 As used herein, the term “Hazardous Material” means any hazardous or toxic substance, material or waste which is or becomes regulated by any local governmental authority, the state of Colorado or the United states Government in amounts that are subject to regulation. The term “hazardous material” includes, without limitation, any material or substance that is: (i) defined as a “hazardous substance” under appropriate state law provisions; (ii) petroleum and petroleum products; (iii) asbestos; (iv) polychlorinated biphenyls (PCBs); (v) designated as “hazardous substance” pursuant to section 311 of the Federal Water Pollution Control Act (33 U.S.C. section 1321); (vi) defined as “hazardous waste” pursuant to section 1004 of the Federal Resource Conservation and Recovery Act (42 U.S.C. Section 6903); (vii) defined as a “hazardous substance” pursuant to Section 101 of the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. Section 9601); or (viii) defined as a “regulated substance” pursuant to Subchapter IX, Solid Waste Disposal Act (Regulation of Underground Storage Tanks) (42 U.S.C. Section 6991). 25.2 CSURF shall not cause or permit any Hazardous Material to be brought upon, kept or used in or about the Leased Premises by CSURF, its agents, employees, contractors or invitees, without the prior written consent of the City, which the City shall not unreasonably withhold as long as CSURF demonstrates to the City’s reasonable satisfaction that such hazardous material is necessary or useful to CSURF’s activities on the Leased Premises as described in Article VI, and will be used, kept and stored in a manner which complies with all laws regulating any such Hazardous Material. If CSURF breaches the obligation stated in the Draft Lease – 1-17-12 21 preceding sentence, or, if the presence of Hazardous Material on the Leased Premises caused or permitted by CSURF results in contamination of the Leased Premises or if contamination of the Leased Premises by Hazardous Material otherwise occurs for which CSURF is legally liable to the City for damage resulting therefrom, then CSURF shall indemnify, defend and hold the City harmless from any and all claims, judgments, damages, penalties, fines, costs, liabilities or losses (including, without limitation, diminution value of the Leased Premises, damages for the loss or restriction on use of rentable or usable space or of any amenity of the Leased Premises, damages, arising from adverse impact or marketing of space, and sums paid in settlement of claims, attorneys' fees, consultant fees and expert fees) which arise during or after the Lease term as a result of such contamination. Without limiting the foregoing, if the presence of any Hazardous Material on the Leased Premises caused or permitted by CSURF results in any contamination of the Leased Premises, CSURF shall promptly take all actions at its sole expense as are necessary to return the Leased Premises to the condition existing prior to the introduction of any such Hazardous Material to the Leased Premises; provided that the City’s approval of such action shall first be obtained, which approval shall not be unreasonably withheld so long as such action would not potentially have any material adverse affect on the Leased Premises. ARTICLE XXVI Environmental Concerns 26.1 By executing this Lease, CSURF is deemed to have accepted the Leased Premises in their present condition “as is”. CSURF acknowledges that the Leased Premises, in their present condition, comply fully with the City’s covenants and obligations hereunder. 26.2 The parties agree to the following times regarding responsibility for any environmental contamination found or caused: 26.2.1 The City shall be responsible for the remediation and clean up of any such contamination resulting from the City’s occupancy and use of the City Property prior to February 15, 1994; 26.2.2 CSU shall be responsible for the remediation and cleanup of any such contamination resulting from CSU’s occupancy and use of the Leased Premises after February 15, 1994 and up to the Effective Date of this Lease Agreement. 26.2.3 CSURF shall be responsible for the remediation and cleanup of any such contamination resulting from CSURF’s occupancy and use of the Leased Premises from and after the Effective Date of this Lease Agreement, excepting therefrom any contamination caused or resulting from CSU’s use and occupancy either prior to the Effective Date of this Lease or during any occupancy or use of the Leased Premises as a tenant of CSURF, which shall be the responsibility of CSU, as herein contemplated. CSURF acknowledges and agrees that it is responsible for meeting all applicable legal and regulatory requirements for the proper removal, remediation or cleanup, or special management, handling or disposal of any materials handled or disturbed by CSURF or CSURF’s Tenants on the Leased Premises, during construction of improvements or otherwise. CSURF shall not, however, be responsible for removal or remediation of soil or groundwater contamination not resulting from CSURF’s occupancy and use of the Leased Premises, except as required for CSURF’s construction of improvements or Draft Lease – 1-17-12 22 other use of the Leased Premises. 26.2.4 Except as described in Section 26.3 below, should any party find or become aware of any such environmental contamination during the term of this Lease, such party shall inform the other parties hereto of such discovery or determination, by letter mailed to the addresses of the parties shown herein, regarding: the nature and extent of the contamination found or caused; the party responsible for such contamination based on the above, if that information can be readily determined; the scope of remediation needed to clean such contamination from the Leased Premises, if known; the time needed to conduct and complete an investigation of such contamination, remediation, or clean up, if known; and any other provisions suitable for the continued undisturbed and peaceable use and occupancy of the Leased Premises by CSURF or CSURF’s Tenants, or for the removal or remediation of any Hazardous Material or environmental condition exceeding applicable regulatory standards, posing a risk to human health or the environment, occurring on the Leased Premises. 26.2.5 No later than sixty (60) days from and after the date of the letter informing the parties hereto of the contamination found or caused, as shown above, the parties hereto, or their designated representatives, shall meet and determine the nature and extent of the contamination, the responsibilities for the remediation or cleanup of that contamination, the time to accomplish the remediation or cleanup and other provisions necessary to the restoration of the Leased Premises, and reduce the same to writing to be signed by all parties hereto. In the event that the parties are unable to agree upon the allocation of responsibility for such remediation or cleanup, the parties agree to participate in mediation with a mutually agreeable mediator in an attempt to reach a voluntary resolution of the disputed issues. Unless otherwise required by the contamination found or caused, the responsible party or parties shall complete remediation and/or cleanup of the contamination within one hundred eighty (180) days from and after the date of the agreement of the parties, as herein provided. 26.3 In connection with the construction of the New Building and the improvements to the Parking Parcel contemplated in paragraph 6.1 above, CSURF will: 26.3.1 Provide any necessary worker training related to construction activities on the Leased Premises; 26.3.2 Arrange for the proper treatment and/or disposal of waste from the Leased Premises; 26.3.3 As authorized by the City, submit a Voluntary Clean Up Program Application (“VCUP”) satisfactory to the City to the Colorado Department of Public Health and Environment (“CDPHE”) for the area of construction; 26.3.4 Comply with the resulting CDPHE approved Soil Characterization and Management Plan (“SCMP”); and 26.3.5 Cooperate with the City in coordinating with and confirming the acceptability of the general design and manner of construction of the New Building and other related improvements to the interested parties under the Administrative Order on Consent (as set forth in Exhibit F hereto), and provide periodic updates on the construction to said interested Draft Lease – 1-17-12 23 parties. Notwithstanding the foregoing, any clean-up and/or remediation of the Leased Premises which may be required by any state or federal law, regulation, order or otherwise, that is not located in the area of construction will not be the responsibility of CSURF other than as set forth in Section 26.2.3 above. 26.3.6 Should CSURF decide not to build the New Building as a result of issues with environmental contamination on the Leased Premises, CSURF shall have the option to terminate this Lease upon ninety (90) days notice to the City. 26.4 In connection with the preparation of plans required by or intended to comply with applicable federal or state environmental regulations, CSURF shall coordinate with the City so as to ensure that any such plans address any shared use of the Leased Premises in a manner satisfactory to the City. For example, in connection with the development and implementation of Spill Prevention, Control and Countermeasures plans as may be required by federal or state law, CSURF shall coordinate with the City to ensure that any City facilities on the Leased Premises are properly reflected within said plans, 26.5 In order to provide continuing communication and coordination regarding the environmental obligations related to the Leased Premises, the parties shall annually convene a meeting of representatives, to include representatives of the City, CSURF and CSU. At the meeting, CSURF will provide the City with information about all CSURF Tenants directly using or responsible for any processes, materials handling, or site maintenance involving regulated materials or procedures or described in any approved plan described herein or environmental compliance requirement applicable to the Leased Premises pursuant to this Lease. CSURF will ensure that all CSURF Tenants are kept informed of and comply with all environmental requirements and obligations related to the Leased Premises. ARTICLE XXVII Notices 27.1 Any notice or other communication relating to this Lease must be given by one party to the other at its respective address as set forth below by hand delivery; commercial carrier; or U.S. mail. The notice or other communication will be effective on the date it is delivered or on the third business day after being sent, whichever comes first. If to the City, to: Real Estate Services Manager City of Fort Collins P.O. Box 580 Fort Collins, CO 80522-0580 With a copy to: City Attorney’s Office Draft Lease – 1-17-12 24 City of Fort Collins PO Box 580 Fort Collins, CO 80522-0580 If to CSU, to: CSU Real Estate Office Mail Code 6009 Colorado State University Fort Collins, CO 80523 With a copy to: CSU System General Counsel Office Colorado State University 01 Administration Building Fort Collins, CO 80523 If to CSURF: CSURF Real Estate Office PO Box 483 Fort Collins, CO 80522 ARTICLE XXVIII Parking 28.1 CSURF is solely responsible for the costs of developing parking areas on the Leased Premises and for obtaining any necessary regulatory approvals or permits for such parking. As additional consideration for the lease of the Parking Parcel, CSURF agrees that if it makes parking improvements on the Parking Parcel the City can use such parking for public purposes at any time other than 8:00 a.m. to 5:00 p.m. Monday through Friday. The City will provide signage for the Parking Parcel regarding the restrictions on public parking. In addition, CSURF agrees to work cooperatively with the City to identify possible parking spots on the Main Parcel that could be made available for public parking at times and under conditions mutually acceptable to the parties. ARTICLE XXIX Americans with-Disabilities Act (ADA) 29.1 CSURF will comply with all Federal, State and local laws, including the requirements of the Americans with Disabilities Act (ADA). The City does not represent that the Leased Premises meet the requirements of the ADA for the purposes of Lessee's intended use of the Leased Premises. Draft Lease – 1-17-12 25 ARTICLE XXX Time of the Essence 30.1 Time is of the essence of this Agreement and each and every provision hereof. ARTICLE XXXI Landlord’s Right of Entry 31.1 During this term of this Lease, the City reserves the right at all reasonable times and with reasonable notice of not less than twenty four (24) hours, and at all times during emergencies, for the City or the City’s agents to enter the Leased Premises for the purpose of inspecting and examining the same, or to show the same to prospective purchasers or tenants, or to make such repairs, alterations, improvements or additions as the City may deem necessary or desirable. During the ninety days prior to the expiration of the term of this Lease or any renewal term, the City may exhibit the Leased Premises, with prior notice and so as not to interfere with regular use of the space, to prospective tenants or purchasers, and place upon the Leased Premises, the usual notice advertising the Leased Premises for sale or lease, as the case may be, which notices CSURF shall permit to remain thereon without molestation. The City reserves the right at all times to enter the Leased Premises for purposes of accessing those portions of the Leased Premises reserved to the City in Article VI. In the event of an emergency to protect or minimize the risk of harm to life or property, if CSURF’s designated representative shall not be personally present to open and permit an entry into said premises, at any time, when for any reason an entry therein shall be necessary or permissible, the City or City’s agents may enter the same by a master key or may forcibly enter the same, without rendering the City or such agents liable therefore, and without in any manner affecting the obligations and covenants of this Lease. Nothing herein contained, however, shall be deemed or construed to impose upon the City any obligation, responsibility, or liability whatsoever for the care, maintenance or repair of the building or any part thereof, except as otherwise herein specifically provided. ARTICLE XXXII Miscellaneous 32.1 Words of the masculine gender include the feminine and neuter genders; and when the sentence so indicates, words of the neuter gender refer to any gender. Words in the singular include the plural and vice versa. 32.2 This Lease shall be construed according to its fair meaning and in such a manner as to comply with all applicable charters, constitutions and laws, and as if prepared by both parties hereto, and is deemed to be and contain the entire understanding and agreement between the parties hereto. There should be deemed to be no other terms, conditions, promises, understandings, statements or representations, express or implied, concerning this Lease unless set forth in writing and signed by all parties hereto. 32.3 The section headings used herein are for convenience of reference only and in no Draft Lease – 1-17-12 26 way define, limit or prescribe the scope or intent of any provision under this Lease. 32.4 Subject to the provisions hereof, the benefits of this Lease and the burdens hereunder shall inure to and be binding upon the parties hereto and their respective agents, successors and permitted assigns. 32.5 No waivers by any party hereto of any one or more of the terms, covenants, conditions and agreements of this Lease shall be deemed to imply or constitute a waiver of any succeeding or other breach hereunder; and the failure of any party to insist upon strict performance of the terms, conditions, covenants and agreements herein contained or any of them does not constitute a waiver or relinquishment of any party’s rights thereafter to enforce any such default or term, condition, covenant or agreement; and the same will continue in full force and effect. 32.6 The remedies of the parties under this Lease are cumulative, and no one of them shall be construed as exclusive of any other or of any other remedy provided by law. This Lease will be governed by and its terms construed under the laws of the state of Colorado. 32.7 The City reserves the right to grant such utility easements and other easements as it desires over, across and under portions of the City Property so long as such easements do not unreasonably interfere with CSURF’s continuing use of the Leased Premises. 32.8 At any time, and from time to time, CSURF agrees, upon request in writing from the City, to execute, acknowledge and deliver to the City a statement in writing certifying that this Lease is unmodified and in full force and effect (or if there have been modifications, that the same is in full force and effect as modified and stating the modifications) and the date to which the rent and other charges have been paid. 32.9 No payment by CSURF or receipt by the City of a lesser amount than the rental herein stipulated shall be deemed to be other than on account of the earliest stipulated rent; nor shall any endorsement or statement on any check or any letter accompanying a check or payment as rent be deemed an accord and satisfaction; and the City may accept such check or payment without prejudice to the City’s right to recover the balance of such rent or to pursue any other remedy available to the City. 32.10 “CSURF” as used in this Lease includes CSURF’s successors in interest to or assigns under the Lease, except as otherwise specified in this Lease. 32.11 CSURF, upon the expiration of this Lease, either by lapse of term or otherwise, and after the conveyance of all improvements, additions and alterations to the Leased Premises to the City, as provided in Article IX above, agrees to peaceably surrender to the City the Leased Premises, including the alterations, additions, improvements, changes and fixtures other than CSURF’s movable trade fixtures, equipment and furniture, in broom-clean condition and in good repair, as herein above provided, and except for acts of God and ordinary wear, and damage by fire or other casualty not caused by the negligence of CSURF or anyone under CSURF’s control. 32.12 CSURF acknowledges and agrees that CSURF has not relied upon any statements, representations, agreements or warranties except such as are expressed herein. Draft Lease – 1-17-12 27 32.13 Nothing contained herein shall be deemed or construed by the parties hereto nor by any third party as creating the relationship of principal and agent or a partnership or a joint venture between the parties hereto, it being agreed that none of the provisions set forth herein nor any acts of the parties herein shall be deemed to create a relationship between the parties hereto other than the relationship of lessor and lessee. 32.14 The parties hereto acknowledge that certain items of personal property may be located within the buildings located on the Leased Premises. The City makes no representations or warranties regarding their ownership of any such items of personal property or the condition thereof. The parties hereto acknowledge that the said items of personal property located within said building may belong to third parties. CSURF agrees to release, indemnify and hold the City harmless against any liability for any improper use or disposition by CSURF of any items of personal property belonging to third parties. 32.15 The parties acknowledge that both the City and CSU are government institutions governed by the Colorado Governmental Immunity Act, Colo. Rev. Stat. § 24-10-101, et seq. (the “Act”). Notwithstanding any other provision of this Lease to the contrary, no term or condition of this Lease shall be construed or interpreted as a waiver, express or implied, of any of the immunities, rights, benefits, protection, or other provisions of the Act , as now or hereafter amended. The parties understand and agree that liability for claims for injuries to persons or property arising out of negligence of the City or the State of Colorado, their respective departments, institutions, agencies, boards, officials and employees, is controlled and limited by the provisions of the Act, as now or hereafter amended, which provisions are hereby incorporated and made a part of this Lease. 32.16 The obligations of the City under this Lease are subject to annual appropriation of funds in an amount sufficient therefore by the City Council of the City of Fort Collins, in its discretion. IN WITNESS WHEREOF, the parties hereto have caused this Lease to be executed the day and year first above written. Draft Lease – 1-17-12 28 THE CITY: THE CITY OF FORT COLLINS, COLORADO, a Municipal Corporation By: __________________________ Darin Atteberry, City Manager ATTEST: _______________________ City Clerk APPROVED AS TO FORM: _______________________ Assistant City Attorney Draft Lease – 1-17-12 29 CSU: FOR THE BOARD OF GOVERNORS OF THE COLORADO STATE UNIVERSITY SYSTEM, by and through Colorado State University By: _________________________________ Anthony A. Frank, President APPROVED AS TO FORM: ___________________________ Associate Legal Counsel CSURF: THE COLORADO STATE UNIVERSITY RESEARCH FOUNDATION A Colorado non-profit corporation By: ______________________________ Kathleen Henry, President/CEO ATTEST: ___________________________ Julie Birdsall, CFO Draft Lease – 1-17-12 EXHIBIT “D” NEW BUILDING AND RELATED IMPROVEMENTS Formatted: Font color: Black Draft Lease – 1-17-12 Formatted: Font: 14 pt, Bold, Font color: Black Draft Lease – 1-17-12 EXHIBIT “E” UTILITY TUNNEL Formatted: Font: 14 pt, Bold, Font color: Black Draft Lease – 1-17-12 EXHIBIT “F” REASONABLE STEPS IN VICINITY OF POUDRE RIVER SITE June 2009 An area consisting of the Poudre River adjacent to the Northside Aztlan Community Center, the Northside Aztlan Community Center property and certain additional property in that vicinity (“the Poudre River Site”) is the subject of a CERCLA Section 104(b) Removal Action, formally referred to as the Poudre River Site - Fort Collins, Larimer County, Colorado. The Site ID # for that action is 08HE (The Category of Removal was Removal Action, Non-NPL, PRP- Lead). Public Service Company of Colorado “(PSCo”) agreed to take responsibility for the Removal Action, which included removal of coal tar contamination on the Poudre River Site, pursuant to EPA’s Administrative Order on Consent with the City of Fort Collins, PSCo and Schrader Oil Company, dated October 28, 2004 (the “AOC”). PSCo has completed the Removal Action, but continues to monitor conditions in the area pursuant to the AOC. The bona fide prospective purchaser and contiguous property owner provisions state that a person meeting the criteria of Section 107(r) and Section 107(q) of CERCLA (Comprehensive Environmental Response, Compensation and Liability Act), 42 U.S.C. §§ 9607(r) and 9607(q), respectively, is protected from CERCLA liability. However, to the extent that EPA's response action increases the fair market value of the bona fide prospective purchaser's property, EPA may have a windfall lien on the property. The windfall lien is limited to the increase in fair market value attributable to EPA's response action, capped by EPA's unrecovered response costs. To qualify as a bona fide prospective purchaser or a contiguous property owner, a person must, among other requirements, take “reasonable steps” with respect to continuing releases, preventing threatened future releases, and preventing or limiting human, environmental, or natural resources exposure to earlier releases. As noted above, EPA has conducted investigations and is in the process of working with other parties to take steps to abate the release of coal tar at the Poudre River Site. In the process, EPA has identified a number of environmental concerns. Based on the information EPA has evaluated as of early 2005, EPA has indicated that, for an owner of property affected by the releases of concern, the following would be appropriate reasonable steps with respect to the coal tar contamination found at the property. As a condition and requirement of the Lease Agreement, the following requirements must be taken into account and complied with in connection with actions on the Leased Premises. Additional reasonable steps may become necessary if site conditions change or new information is discovered which necessitates further reasonable steps. 1. Minimize subsurface excavations to the extent possible. $ Provide above-ground, rather than underground, parking facilities. $ Use caissons, piers, pilings, and/or at-grade slab building foundations. $ Where practicable and consistent with good engineering practices, minimize burial depths of tanks, piping, foundations, and other improvements. $ During the design of underground utility installations, the design or Draft Lease – 1-17-12 construction of new structures or demolition of an existing structure, take into account the potential presence of the contamination that has been delineated and, to the extent practicable and consistent with good engineering practices, minimize excavation volumes. $ Where practicable and consistent with good engineering practices, adopt as a preference for sewer line maintenance and repair the application of an in situ liner as opposed to removing and replacing the sewer line. $ Where practicable and consistent with good engineering practices, incorporate into new or replacement utility improvements design measures, such as protective sleeving, choice of materials and other features intended to minimize the need for future replacement or repair due to effects of subsurface contaminants. 2. Monitor for NAPL in areas in which you are performing work during any excavation. $ Use the information incorporated as part of the AOC and related investigations, and any subsequently obtained information, to identify areas in which NAPL may be present. $ Sample soil and water encountered during excavations, as well as air within work area during excavation and restoration. You are not required to characterize the extent of any contamination, but should be characterizing the soil and water accessed or moved during excavation, as well as the air within and above the excavation. $ Properly characterize any materials that are to be removed from the excavation prior to appropriate disposal. 3. Protect workers, bystanders and building occupants. $ Where NAPL is encountered or monitoring results indicate the presence of NAPL at levels exceeding health based standards, require workers to wear appropriate personal protective equipment and/or undertake engineering controls to accomplish the same level of worker and bystander protection. $ Provide training for workers on visual identification of NAPL as well as on the appropriate use of personal protective equipment. 4. Prevent preferential pathways that may be created by underground work. $ Use the information incorporated as part of the AOC and related investigations, and any subsequently obtained information, to identify areas in which NAPL may be present. $ Seek professional assistance to design excavations in the identified areas that will not change pathway and/or rate of flow of the NAPL plume. 5. Properly dispose of contaminated materials that must be removed from the excavation in order to implement the work being performed. $ Properly characterize any materials that are to be removed from the excavation. 6. Identify and use properly licensed facilities for the disposal of the contaminated materials that must be removed from the excavation. Draft Lease – 1-17-12 EXHIBIT “G” UTILITY COURT AREA Formatted: Font: 14 pt, Bold, Font color: Black Draft Lease – 1-17-12 EXHIBIT “H” NOTICE OF INTENT TO LEASE/USE SPACE and ACKNOWLEDGMENT Restrictive Use of Leased Premises: These premises must be used for instructional, teaching, and laboratory and research purposes focused upon developing innovative and alternate energy solutions, including equipment, fuels, software, operational techniques and processes, developing and testing entrepreneurial models, and similar purposes; related office and administrative purposes; and ancillary uses related thereto, such as outreach and extension activities, experimentation or demonstration areas or activities, seminars and instructional uses; for the common benefit and good of the citizens of the City; and which benefit the human condition and achieve global impact thereby benefiting the citizens of the City, as well as the State of Colorado. Name: ________________________________________________ Address: __________________________ __________________________ __________________________ Contact Information: Telephone: ________________ Cell: ________________ Fax: ________________ Email: ________________ Other: ______________________ Type of Entity: (individual, department, corporation, foundation, etc.): ____________________ Supervision by: (CSU, CSURF, or subsidiary department or organization):_________________ _____________________________________________________________________________ Purpose of building use: _________________________________________________________ Type of Occupancy: (sublease, assignment, other): ____________________________________ Amount of space needed: (in square feet): _________________ Use of space: (office, lab, lecture, other): ____________________________________________ Rental charged: _____________________ Purpose of any rental abatement/reduction: ___________________________________________ Compliance of use of space to City requirements (explain): ______________________________ ______________________________________________________________________________ ______________________________________________________________________________ [Signatures on following page] Draft Lease – 1-17-12 CSURF Approval Date: __________________ By: _____________________________ Attest: ______________________ City Acknowledgment Date: __________________ By: _____________________________ COPY COPY COPY COPY December 20, 2011 -2- ITEM 29 Tenant: CSURF would be the tenant. The current lease to CSU dated February 15, 1994, with an amendment dated January 13, 2005, would terminate. Lease Term: CSURF intends to construct a new building and related improvements on the property. The “Initial Term” of the Lease would be 40 years, with two 20 year extensions at CSURF’s sole option, if CSURF builds the New Building. However, if CSURF does not build the New Building within eight years, the Initial Term would be 10 years with one five year extended term at CSURF’s sole option, and up to two additional 10 year terms with the City’s consent in its discretion. (Articles II and III) Rent: “Base Rent” for the Initial Term of the Lease would be $1,000 and $1,000 for each extended term if CSURF builds the New Building. If CSURF does not build the new building, there would be no additional rent paid for the five- year extended term, and rent for each succeeding 10 year term would be $500. (Article IV) Option to Purchase: CSURF has the option to purchase the Leased Premises in the future if the City and CSURF can agree on terms, and subject to City Council approval. (Article V) Uses of the Leased Premises: CSURF can build the New Building on the Main Parcel and parking improvements on the Parking Parcel. The City has the right to approve the final plans for all improvements. The Main Parcel can be used for instructional, teaching and laboratory and research purposes focused on developing innovative and alternate energy solutions, developing and testing entrepreneurial models, and similar purposes. (Article VI) Maintenance: CSURF is responsible for maintaining the Leased Premises including the Fountain, Monument and Grotto located on the property. CSURF also agrees to restore the Fountain. The City is responsible for any restoration of the Monument and Grotto. (Article VII) Alterations and Improvements: All alterations, additions and improvements to the Leased Premises must be approved by the City as owner of the property, and must comply with the “Reasonable Steps in Vicinity of Poudre River Site” developed in accordance with the EPA’s Administrative Order on Consent for the Northside Aztlan Community Center property cleanup. (Article VIII.) CSURF agrees to relocate or remove improvements comprising at least 50% of the existing utility court area adjacent to the Main Building, which lies within the Poudre River Buffer. (Article VIII) Lease Expiration or Termination: On expiration of the Lease all improvements made by CSURF on the Leased Premises would become the property of the City. If CSURF terminates the lease because of a default by the City, the City would compensate CSURF for the fair market value of the New Building. (Article IX) Right of First Refusal: If the City wants to sell its interest in the Leased Premises it must first give CSURF the opportunity to purchase it on the same terms and conditions. (Article XII) Utilities: CSURF will pay for all utilities used on the Leased Premises. (Article XIV) Subletting and Assignment: CSURF can sublease portions of the Leased Premises with the City’s consent, except that City consent is not needed for CSURF to assign the Lease to CSU or to sublease to CSURF Affiliates. Any money CSURF receives for subleases must be used to financially support CSURF’s approved activities on the Leased Premises. Any money left over after paying CSURF’s costs and expenses for such activities will be divided equally between the City and CSURF, but the amount paid to the City will not exceed the fair market rental value of the Leased Premises for any applicable year. (Article XVI) Environmental Concerns: The City, CSU and CSURF are each responsible for remediation of any environmental contamination on the property that results from their respective occupancies of the property. In addition, CSURF would be responsible for proper removal, remediation or special management or handling of any materials it handles or disturbs on the Leased Premises, during construction or otherwise. In constructing the New Building and other improvements CSURF is responsible for proper worker training, arranging for proper treatment and disposal of waste from the Leased Premises, and for submitting a Voluntary Clean Up Program (VCUP) application to the Colorado Department of Public Health and Environment (CDPHE) for the area of construction and complying with the resulting CDPHE Soil Characterization and Management Plan (SCMP). If CSURF decides not to build the New Building COPY COPY COPY COPY December 20, 2011 -3- ITEM 29 because of environmental contamination issues on the Leased Premises, CSURF may terminate the Lease on 90 days notice to the City. (Article XXVI) Parking: If CSURF makes parking improvements on the Parking Parcel the City will be able to use it for public purposes at times other than 8:00 a.m. to 5:00 p.m. Monday through Friday. The City and CSURF will work on identifying possible parking spots on the Main Parcel that could also be available for public parking. (Article XXVIII) A copy of the Lease Agreement is attached (Attachment 2). Follow-up Items from the September 27 Work Session presentation: Fountain: CSURF is planning to move the fountain to a new location on attached Exhibit D. Staff from Historic Preservation did not have any information that the fountain had ever been moved since it was placed at 430 North College Avenue. Along with day to day maintenance of the fountain, CSURF must also restore the fountain to the specifications of the Landmark Preservation Commission. Maintenance of grotto and monument: The grotto could be used for water filtration, with the proper permits. If CSURF does not utilize the grotto, then it will only be responsible for day-to-day maintenance of the grotto and surrounding landscaping and the monument. Renovation of these two landmarks would be the responsibility of the City, at its sole option and cost. If CSURF does want to utilize the grotto, it would not only be responsible for regular maintenance, but would also be responsible to renovate the grotto and landscaping. Removal of items in the River Buffer: Exhibit G of the Lease Agreement (Attachment 2) shows the utility court area and the Lease Agreement specifies that this area will be reduced by at least 50%. This will be accomplished by, upon, or prior to final completion of the New Building. The design for the new building has not been completed, so specifics of equipment to be removed cannot be provided. Exhibit G also shows the proposed Utility Court to be moved farther from the Poudre River, but still within the River Buffer. This is subject to the City’s development review process, and approval by the City as property owner. FINANCIAL / ECONOMIC IMPACTS Regional Economic Development • As a research institution the EECL has been awarded over $20M in research awards: these funds are used locally to fund infrastructure at the EECL, students at CSU, research staff, etc. The EECL currently employs a dozen professional research and support staff, as well as approximately 50 graduate and undergraduate students • The EECL has actively engaged in the development of “spin-off” enterprises, which have been awarded over $55M in funding commitments. In addition these spin-off companies currently employ over 70 professional engineers, managers, and scientists. • Additional companies have been attracted to Fort Collins as the EECL has become an “anchor” for the clean- tech industry • Additional companies have been (or are in the process of being) accelerated through partnerships with the EECL (CZero, Van Dyne Superturbo, Spirae). These companies represent additional 20-30 primary jobs in the Fort Collins downtown area. Typical universities will see one start-up company generated for every $100M of R&D, the best universities will see one start-up per $25-$35M of R&D (CalTech, MIT, etc). At the EECL the ratio is 1 start-up per $7M of R&D investment. COPY COPY COPY COPY December 20, 2011 -4- ITEM 29 ENVIRONMENTAL IMPACTS A portion of the Main Parcel had been used in the past as part of a historical municipal landfill and the Parking Parcel is a portion of the Poudre River/Aztlan site (the Brownfields site to the south of the Main Parcel). With this knowledge, the City updated its Phase I of the Main Parcel and followed that with a Phase II Environmental Site Assessment. Since the Parking Parcel is a part of the Poudre River/Aztlan site, CDPHE required the City to update its Soil Characterization and Management Plan of the Poudre River/Aztlan Site. CSURF and the City have agreed to share the costs of these reports since these reports are beneficial to both the City and CSURF. The Phase II Assessment did identify the following: soil contamination, including arsenic, lead and asbestos; groundwater contamination, including benzene, and poly-aromatic hydrocarbons; and, soil vapors including methane. Although soil and groundwater contamination was identified at the site, the contamination may be managed appropriately as to not prohibit construction of a new building and improvements. CSURF has agreed to apply to CDPHE for a Voluntary Clean-up Plan (“VCUP”). The requirements established by CDPHE in the VCUP process will detail to CSURF how potential contamination will be managed during the project. CDPHE will be the primary source for information regarding management of contamination encountered during the construction project. Such measures may include an indoor system to mitigate soil vapors from methane contamination. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. ATTACHMENTS 1. Location map 2. Lease agreement, with all exhibits attached 3. Summary of September 27, 2011 Work Session 4. Powerpoint presentation ORDINANCE NO. 183, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE LEASE OF CITY-OWNED PROPERTY AT 430 NORTH COLLEGE AVENUE AND 100 WILLOW STREET TO THE COLORADO STATE UNIVERSITY RESEARCH FOUNDATION WHEREAS, the City is the owner of the property located at 430 North College Avenue, Fort Collins, Colorado, known as the Old Power Plant (the “City Property”); and WHEREAS, the City Property was previously used by the City’s electric utility but is no longer needed, except incidentally, for utility purposes; and WHEREAS, on February 15, 1994, pursuant to Ordinance No. 11, 1994, the City and Colorado State University (CSU) entered into a lease agreement for a portion of the City Property for up to 25 years (the “1994 Lease”); and WHEREAS, on January 13, 2005, pursuant to Ordinance No. 123, 2004, the 1994 Lease was modified by a First Amendment to Lease Agreement, which added a five-year renewal term and increased the termination notice period to five years (the “2005 Amendment”); and WHEREAS, the 1994 Lease authorized CSU to use the City Property only for laboratory and research purposes focused upon increasing the efficiency of the internal combustion engine, and related office, administrative, outreach, extension and instructional uses; and WHEREAS, since 1994 CSU has been using the City Property for its Engines and Energy Conversion Laboratory, but this program has grown in size and expanded in purpose over the years and the Colorado State University Research Foundation (CSURF) wishes to build an additional building on the City Property to house labs, offices and subtenant incubator companies (the “New Building”); and WHEREAS, through several years of discussion and negotiation, City staff and representatives from CSU and CSURF have drafted a new lease agreement, a copy of which, dated December 6, 2011, is on file in the office of the City Clerk and available for review (the “Lease Agreement”); and WHEREAS, under the Lease Agreement the City would lease to CSURF a portion of the City Property as described on Exhibit “A”, attached and incorporated herein by reference (the “Main Parcel”), as well as a portion of the adjacent City-owned property known as Lot 1, Northside Aztlan Community Center, located in the 100 block of Willow Street, Fort Collins, Colorado, as described on Exhibit “B”, attached and incorporated herein by reference (the “Parking Parcel”); the Main Parcel and Parking Parcel are collectively referred to as the “Leased Premises”; and WHEREAS, upon execution of the Lease Agreement CSU would relinquish all right, title and interest in and to the City Property under the 1994 Lease and the 2005 Amendment; and WHEREAS, key terms of the proposed Lease Agreement include the following: • The initial term of the Lease would be 40 years with two 20-year extensions at CSURF’s sole option if CSURF builds the New Building. If CSURF does not build the New Building within eight years, the initial term of the Lease would be ten years with one five-year extension in CSURF’s sole option and two additional ten-year extensions with the City’s consent. • CSURF would pay rent in the amount of $1,000 for the initial term of the Lease and $1,000 for each extension unless it does not build the New Building, in which case rent would be $1,000 for the first ten or fifteen years of the Lease and $500 for each ten-year extension. • CSURF would be permitted to build the New Building and related improvements on the Main Parcel and parking improvements on the Parking Parcel, subject to the City’s approval of the plans for the improvements. • Upon termination of the Lease the improvements constructed by CSURF would become the property of the City unless CSURF terminates the Lease because of a default by the City, in which case the City would compensate CSURF for the value of its improvements. • CSURF would be permitted to assign the Lease, or sublease the Leased Premises, to CSU and to sublease portions of the Leased Premises to third parties whose activities on the Leased Premises must be consistent with the purposes of the Lease; and WHEREAS, leasing the Leased Premises to CSURF for the uses described in the Lease Agreement serves the valuable public purpose of developing and utilizing energy solutions; and WHEREAS, leasing the Leased Premises to CSURF further benefits the City by reducing the City’s costs for maintenance and utilities on the City Property; and WHEREAS, under Section 23-111 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 and, with respect to real property that is a part of the City’s water or utility systems, that such disposition will not materially impair the viability of the system as a whole and will be for the benefit of the citizens 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 Leased Premises to CSURF as provided herein serves a valuable public purpose, is in the best interests of the City, will not impair the viability of the City’s electric utility system as a whole, and will be for the benefit of the citizens of the City. -2- Section 2. That the City Manager is hereby authorized to enter into a lease agreement with CSURF in substantially the form of the Lease Agreement that is on file in the office of the City Clerk, 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 or effectuate the purposes of this Ordinance, including but not limited to any necessary changes to the legal description of the Leased Premises, as long as such changes do not materially increase the size or change the character of the Leased Premises. Section 3. That as part of the Lease Agreement, CSURF is hereby authorized to enter into subleases for portions of the Leased Premises in accordance with the terms and conditions of the Lease Agreement. Introduced, considered favorably on first reading, and ordered published this 20th day of December, A.D. 2011, and to be presented for final passage on the 17th day of January, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 17th day of January, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk -3- ADDRESS: PHONE:970.221.4158 200 S.College Ave. Suite 100 Fort Collins, CO 80524 FAX:970.221.4159 WEBSITE: www.northemengineering.com NORTHERN ENG I NEERING ExhibitA DESCRIPTION: A portion of Lot 3 in Reservation on the Northwest Quarter of Section 12, Township 7 North, Range 69 West of the 6th P.M., lying North and West of Right of Way of the Fort Collins Development Railway Company, less deed recorded May 3, 1994 at Reception No. 94038222 being more particularly described as follows; Considering the West line of Section 12 as bearing South 00°23'57" West and with all bearings contained herein relative thereto: Commencing at the Northwest corner of said Section 12; thence along the West line of said Section 12, South 00°23'57" West, 482.47 feet; thence departing said West line, South 89°36'03" East, 73.47 feet to a point on the East line of said Reception No. 94038222, said point also being the POINT OF BEGli NING; thence along the approximate Top of Bank of Cache La Poudre River the following ten (10) courses: (1) South 68°26'25" East, 27.26 feet; (2) North 86°52'14" East, 40.22 feet; (3) South 68°17'47" East, 44.32 feet; (4) North 82°34'37" East, 118.30 feet; (5) South 84°24'53" East, 151.12 feet; (6) South 75°36'07" East, 63.13 feet; (7) South 68°36'28" East, 42.92 feet; (8) South 79°23'46" East, 50.91 feet; (9) South 71°20'59" East, 61.83 feet; (10) South 76°36'43" East, 63.27 feet to a point on the Northwesterly line of Burlington Northern Railroad Right of Way; thence along said Northwesterly line, South 57°00'09" West, 776.12 feet to a point on the East line of said Reception No. 94038222; thence departing said Northwesterly line and along said East line, North 00°34'27" East, 521.48 feet to the POINT OF BEGINNING. The above described easement contains 4.091 acres (178,190 square feet) more or less and is subject to all easements and rights-of-way now on record or existing. December 1, 2011 CNS Sheet 1 of2 POINT OF COMMENCEMENT NORTHWEST CORNER S12, T7N, R69W EXHIBIT A MAIN PARCEL 178,184 sq.ft. 4.091 ac. / / / / / / //' / I I I I I I I LOT2 (NORTHSIDE AZTLAN COMMUNITY CENTER) I 50' BNRR EASEMENT I I I LOT 1 393,184 sq.ft 9.026 ac. 410 NORTH COLLEGE, LLC RECEPTION No. 2003006605 WEST CORNER S12, T7N, R89W I (NORTHSIDE AZTLAN I COMMUNITY CENTER) I 361,142 sq.ft. I 8.297 ac. I I SHEET 2 OF2 100 0 100 Feet eF3=c eas= :=:=:=31 NORTH ( IN FEET) 1 Inch - tOO ft. NORTH ERN ENGINEERING l'fO« tPOUI 41st fA.l. -tJOUI 415ot ADDRESS: PHONE:970.221.4158 200 S.College Ave. Suite 100 Fort Collins,CO 80524 FAX:970.221.4159 WEBSITE: www.northernengineering.com NORTHERN ENGINEERING Exhibit B DESCRIPTION: All that portion of Lot 1, Northside Aztlan Community Center lying west of the Burlington Northern Railroad as described at Reception No. 2000032174 being more practically described as follows; Considering the North line of Lots 1 and 2, Northside Aztlan Community Center as bearing North 57°00'09" East and with all bearing contained herein relative thereto: POINT OF BEGINNING being the Northwest comer of said Lot 1; thence along the North line of said Lot 1, North 57°00'09" East, 261.57 feet to a point on the Westerly line of Burlington Northern Railroad Easement; thence along said Westerly line along a non-tangent curve concave to the Southeast having a central angle of32°28'24" with a radius of794.49 feet and an arc length of 450.29 feet and the chord of which bears South 16°02'11" West, 444.29 feet; thence continuing along said Westerly line, South 00°12'01" East, 148.00 feet to a point on the Southern line of said Lot 1; thence along the South line of Lot 1 along a non-tangent curve concave to the South having a central angle of 12°27'11" with a radius of 400.00 feet and an arc length of 86.94 feet and the chord of which bears North 61°02'07" West, 86.77 feet to the Southwest comer of said Lot 1; thence along the Western border of said Lot 1 the following three (3) courses: (1) North 00°45'15" West, 190.24 feet; (2) North 89°36'03" West, 20.14 feet; (3) North 00°23 '57" East, 200.17 feet to the POINT OF BEGINNING. The above described easement contains 1.159 acres (50,474 square feet) more or less and is subject to all easements and rights-of-way now on record or existing. November 28, 2011 CNS Sheet 1of2 > z 0 ... "" ''""*"'-"""• EXHIBIT B - w ::> z w <( w <.9 .w .-l 0 ..-l () I I n - :: NORTH UNE OF LOTS 1 & 2 (NORTHSIDE AZTI.AN COMMUNITY CENTER) . !,U ,._10 -: M ON O o NO 0z 410 NORTH COLLEGE. LLC RECEPTION PARKING PARCEL 50474 sq.ft. 1.159 ac. 1- $,. I t.u I (/) 8 I _liS H I f5 i. I 0:: Jf I LOT 2 (NORTHSIDE AZTLAN COtvlMUNITY CENTER) 393,184 sq.ft. 9 026 ac No. 2003006605 N89 36'03"W 20.14' !: 0:: Q: I I I STERLy UNE OF I BNRR EASEMENT I LOT 1 300 NORTH COLLEGE, LLC RECEPTION No. 2005000'-03 . to N. o• .I _t .) "' 00 0z I I w I c; a I (NORTHSIDE AZTLAN COMMUNITY CENTER) 361,142 sq.ft. 8.297 ac. R=400.00' L=86.94' 6=12 27'11" Chord Bearing=N61•o2·orw Chord Length=86.77' SOUTH UNE OF LOT 1 (NORTHSIDE AZTLAN COMMUNITY CENTER) g {j) I I I I I I <o'i & >- SHEET OF 2 100 F3 E3 0 1:=:=:==100 31 Feet NORTH ( IN FEET ) 1 Inch - 100ft. l<DIGcii · ·..- lOIJ ti)gt NORTHERN ENGINEERING ..,tJO-.U-l n .y.f.A..l 'J-JO ..U-1 uu